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Thursday, December 17, 2009

India Financials

India Financials

Market Review - Dec 17 2009

Market Review - Dec 17 2009

Roads and Highways

Roads and Highways

Wealth Creation Study

Wealth Creation Study

Markets end flat; Sensex down 18.52 pts

Indian markets traded in a lacklustre manner today. The Sensex ended on a flat note with negative bias led by realty, oil & gas and capital goods stocks, while consumer durables, healthcare and IT buck the trend. The index opened with a loss of 0.52 points, at 16,912.25 on Thursday tracking positive Asian shares and witnessed volatility during the day to finally close on a quiet note after touching a high of 16,979.52 and low of 16,826.

BSE Midcap and Smallcap index rose 1.09% and 0.88% respectively.

European stocks fell for the first time in six days as the Federal Reserve signaled it will remove most emergency measures and Standard & Poor`s cut its rating for Greece. Asian shares and U.S. futures dropped. UK`s benchmark index FTSE 100 declined 37.52 points, or 0.71%, to trade at 5,282.68. French benchmark index CAC 40 decreased 27.37 points or 0.71% to trade at 3,848.40. Germany`s benchmark index DAX dropped 33.11 points or 0.57% to trade at 5,870.75. (4.15 pm)

Asian markets ended lower Thursday, with worries about a surge in supply of new shares and their impact on liquidity dragging Shanghai and Hong Kong lower. Japanese benchmark index Nikkei 225 dropped 13.61 points, or 0.13%, to end at 10,163.80. Hong Kong`s Hang Seng fell 264.11 points, or 1.22%, to end at 21,347.63. China`s Shanghai Composite decreased 76.14 points, or 2.34% to end at 3,179.08.

The Sensex ended the day with a loss of 18.52 points, or 0.11% at 16,894.25 after touching a high of 16,979.52 and a low of 16,826.00. The broad-based NSE Nifty fell 0.30 points, or 0.01% at 5,041.75 after hitting a high of 5,064.20 and a low of 5,013.15.

Major gainers in the 30-share index were Hindustan Unilever (1.63%), Hindalco Industries (1.40%), Tata Consultancy Services (1.29%), Tata Steel (1.16%), Mahindra & Mahindra (0.96%), and Sun Pharmaceutical Industries (0.91%).

On the other hand, DLF plunged (3.70%), Larsen & Toubro (1.33%), Reliance Industries (1.23%), Maruti Suzuki India (1.16%), and HDFC Bank (1.16%) were the major losers in the Sensex.

Overall market breadth was positive. Out of the total 2,885 stocks traded at BSE, 1,632 advanced, 1,168 declined while 85 remained unchanged.

Among the sectoral indices, BSE Consumer Durables which gained 1.72%, HC climbed 1.44%, IT gained 0.87%, TECk rose 0.66% and Metal rose 0.35%, while BSE Realty declined 1.11%, Oil & Gas declined 0.59%, Capital Goods fell 0.31% and FMCG fell 0.02%.

Meanwhile, the BSE and NSE postponed the implementation of new trade timings to Jan. 4, 2010 from Dec. 18, 2009.

Reacting to the postponement, Ashok Jainani, VP - Research & Market Strategy, Khandwala Securities said, ``It is difficult to be happy with such insensitive move by the authorities and it can not be pre-judged what benefits the move would bring to the market and the country for the action to be justified.``

``The move would definitely bring stress on manpower situation besides increasing other overhead costs,`` he added.

``Hope the status-quo is restored and enough time is given to people to make adjustments/arrangements for the new timing schedule, `` he concluded.

BSE Bulk Deals to Watch - Dec 17 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
17/12/2009 524412 Aarey Drugs DAXABEN VASANTKUMAR SHAH S 31668 44.43
17/12/2009 531897 Accentia Tech HITESH SHASHIKANT JHAVERI B 71758 174.40
17/12/2009 531897 Accentia Tech SHANTANU YESHWANT NALAVADI S 111693 173.57
17/12/2009 517041 Ador Welding OPG SECURITIES P LTD B 121524 203.49
17/12/2009 517041 Ador Welding OPG SECURITIES P LTD S 121524 203.55
17/12/2009 523537 APM Inds FARIDABAD PAPERS MILLS LTD B 76210 43.60
17/12/2009 523537 APM Inds AJAY RAJ GARHIA S 76210 43.61
17/12/2009 532759 Atlanta OPG SECURITIES P LTD B 272621 170.28
17/12/2009 532759 Atlanta OPG SECURITIES P LTD S 272621 170.43
17/12/2009 512109 Aviva Inds AJAY PRABHULAL SHAH B 17000 15.10
17/12/2009 512109 Aviva Inds KUNAL KANHAIYALAL SALAWAT B 20750 15.05
17/12/2009 512109 Aviva Inds KANHAIYALAL SALAWAT B 20000 15.75
17/12/2009 512109 Aviva Inds RAJESH OMPRAKASH AGARWAL S 20000 15.75
17/12/2009 512109 Aviva Inds GOPAL OMPRAKASH AGARWAL S 17000 15.10
17/12/2009 512109 Aviva Inds PRAVEEN OMPRAKASH AGARWAL S 21000 15.05
17/12/2009 512219 Finaventure Cap VISHWANATH KANNAN B 750000 40.00
17/12/2009 512219 Finaventure Cap FINAVENTURE ADVISORY SERVICES PVT. LTD. S 750000 40.00
17/12/2009 533048 GI ENGINERG KADAM HOLDING LTD S 67946 15.29
17/12/2009 532951 GSS America DHANANJAY MONEY MANAGEMENT SERVICES B 163522 287.54
17/12/2009 532951 GSS America DHANANJAY MONEY MANAGEMENT SERVICES S 151022 289.31
17/12/2009 500255 LML ABHISHEK VIJAYKUMAR SHAH B 489310 10.36
17/12/2009 500255 LML ABHISHEK VIJAYKUMAR SHAH S 489310 10.64
17/12/2009 532796 Lumax Auto Tech METROCHEM INDUSTRIES LTD B 100000 71.50
17/12/2009 532796 Lumax Auto Tech ADROIT TRADELINK PRIVATE LIMITED S 100000 71.50
17/12/2009 532796 Lumax Auto Tech SETHI MERCANTILE PVT LTD S 89860 70.01
17/12/2009 531515 Mahan Inds CHUNILAL K AGRAWAL B 70000 20.21
17/12/2009 531515 Mahan Inds YOGENDRAKUMAR GUPTA S 63000 20.21
17/12/2009 532819 Mindtree NALANDA INDIA FUND LIMITED B 288608 686.00
17/12/2009 532819 Mindtree WALDEN SOFTWARE INVESTMENTS LIMITED S 301500 686.17
17/12/2009 532986 Niraj Cement MIHIR BHARAT SHAH B 70967 52.60
17/12/2009 532986 Niraj Cement MIHIR BHARAT SHAH S 68352 52.64
17/12/2009 530605 Nova Petro REGENT FINANCE CORPORATION PVT. LTD. B 275885 15.19
17/12/2009 530605 Nova Petro DB (INTL) OWN TRADING B 160219 14.39
17/12/2009 530605 Nova Petro REGENT FINANCE CORPORATION PVT. LTD. S 275885 13.86
17/12/2009 530605 Nova Petro DB (INTL) OWN TRADING S 160219 14.28
17/12/2009 531496 Omkar Overseas PARI STOCK TRADING PVT LTD B 35621 43.01
17/12/2009 531496 Omkar Overseas PARI STOCK TRADING PVT LTD S 27000 43.05
17/12/2009 531496 Omkar Overseas VIJAY KUMAR BOHRA S 30000 43.04
17/12/2009 531496 Omkar Overseas KRISHNADEVI OMKARMAL AGARWAL S 92000 43.05
17/12/2009 512449 Pace Textiles VIVEK KISHANPAL SAMANT S 140000 148.18
17/12/2009 517230 PAE BP FINTRADE PRIVATE LIMITED B 106788 46.00
17/12/2009 517230 PAE BP FINTRADE PRIVATE LIMITED S 99305 46.22
17/12/2009 511702 Parsharti Inv SANTOSH JAYANTI JAIN B 25000 34.50
17/12/2009 511702 Parsharti Inv PRADEEP RAMPRASAD SANDHIR HUF B 25000 33.95
17/12/2009 511702 Parsharti Inv GAURAV AERI S 25000 33.95
17/12/2009 511702 Parsharti Inv PREMILA MAHENDRA SHAH S 25000 34.50
17/12/2009 511702 Parsharti Inv PATEL SHAILESH JIVANLAL S 17500 34.00
17/12/2009 524136 Pee Cee Cosma VASUMATIBEN GULABDAS MITHAWALA B 7000 55.00
17/12/2009 524136 Pee Cee Cosma FARNAZ JIMMY SINGANPORIYA B 7000 53.00
17/12/2009 524136 Pee Cee Cosma VASUMATIBEN GULABDAS MITHAWALA S 7000 53.00
17/12/2009 524136 Pee Cee Cosma FARNAZ JIMMY SINGANPORIYA S 7000 55.00
17/12/2009 506618 Punjab Chem METROCHEM INDUSTRIES LTD B 50000 168.02
17/12/2009 506618 Punjab Chem PRIMORE SOLUTIONS PVT.LTD S 28012 168.00
17/12/2009 506618 Punjab Chem RAJYOG SHARE AND STOCK BROKERS S 22000 168.05
17/12/2009 502587 Rama Pulp MAHIPAT IWDARMAL MEHTA B 57380 32.02
17/12/2009 502587 Rama Pulp MAHIPAT IWDARMAL MEHTA S 42510 32.12
17/12/2009 590077 Ranklin Sol SHALU KAPOOR B 55161 49.70
17/12/2009 590077 Ranklin Sol R O BART S 52472 49.70
17/12/2009 512048 Splash Media SUVUDHA SECURITIES PVT LTD S 37161 498.91
17/12/2009 532093 Venkat Pharma JYOTI PORTFOLIO LIMITED B 96206 5.67
17/12/2009 532093 Venkat Pharma NARESH CHAND JAIN B 48711 5.67
17/12/2009 532093 Venkat Pharma JYOTI PORTFOLIO LIMITED S 51270 5.67
17/12/2009 532093 Venkat Pharma NARESH CHAND JAIN S 48711 5.76
17/12/2009 532093 Venkat Pharma KALPANA MADHANI SECURITIES PVT. LTD. S 30711 5.37
17/12/2009 530627 Vipul Dye Chem KARAN SANDEEP KHETAN B 37500 13.00
17/12/2009 530627 Vipul Dye Chem SANDEEP PURSHOTTAM KHETAN S 37500 13.00
17/12/2009 531249 Well Pack Papers SHOBHNABEN R PARMAR B 23946 360.60
17/12/2009 531249 Well Pack Papers PANDYA YAMINIBEN M B 31157 361.60
17/12/2009 531249 Well Pack Papers LAXMAN DHIRUBHAI PARMAR B 28502 359.93
17/12/2009 531249 Well Pack Papers NARENDRA AMRITLAL SHAH B 30000 359.98
17/12/2009 531249 Well Pack Papers PANDYA YAMINIBEN M S 28655 360.30
17/12/2009 531249 Well Pack Papers LAXMAN DHIRUBHAI PARMAR S 22181 360.80
17/12/2009 531396 Women Networks SOBHA CHAND BHANSALI B 25000 12.93
17/12/2009 531396 Women Networks DEEPAK KUMAR BHANSALI B 45000 12.90
17/12/2009 531396 Women Networks RADIANT FINANCIAL SERVICES LIMITED B 20000 12.93
17/12/2009 531396 Women Networks KAMALA DEVI KOTHARIX S 16140 12.93
17/12/2009 531396 Women Networks KREPTON TRADERS PRIVATE LTD S 23383 12.93
17/12/2009 522108 Yuken India SFCL KLASSIC VISION PORTFOLIO S 15575 122.27

NSE Bulk Deals to Watch - Dec 17 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
17-DEC-2009,ATLANTA,Atlanta Limited,NIKON FINLEASE PVT. LTD,BUY,95093,170.11,-
17-DEC-2009,ATLANTA,Atlanta Limited,OM INVESTMENTS,BUY,112801,169.31,-
17-DEC-2009,KERNEX,Kernex Microsystems (Indi,MBL & COMPANY LTD.,BUY,70149,134.80,-
17-DEC-2009,LML,LML Ltd.,DIPA JHUNJHUNWALA,BUY,371165,11.10,-
17-DEC-2009,LUMAXTECH,Lumax Auto Technologies L,ALBULA INVESTMENT FUND LTD,BUY,269000,70.92,-
17-DEC-2009,NOVA,Nova Petrochem Ltd,REGENT FINANCE CORPORATION PVT. LTD.,BUY,151247,15.47,-
17-DEC-2009,NOVA,Nova Petrochem Ltd,VORA VILPABEN PRANAVBHAI,BUY,109005,15.90,-
17-DEC-2009,PAEL,PAE Limited,BHAVIN Y MEHTA,BUY,55687,46.29,-
17-DEC-2009,PAEL,PAE Limited,TCG STOCK BROKING LTD,BUY,50000,45.84,-
17-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,DHARMSHI VASHRAM DESAI,BUY,55262,296.94,-
17-DEC-2009,ATLANTA,Atlanta Limited,NIKON FINLEASE PVT. LTD,SELL,95093,170.37,-
17-DEC-2009,ATLANTA,Atlanta Limited,OM INVESTMENTS,SELL,112801,169.38,-
17-DEC-2009,GISOLUTION,GI Engineering Solutions,KADAM HOLDING LTD,SELL,48331,15.10,-
17-DEC-2009,KERNEX,Kernex Microsystems (Indi,MBL & COMPANY LTD.,SELL,70149,135.03,-
17-DEC-2009,LML,LML Ltd.,DIPA JHUNJHUNWALA,SELL,411165,10.95,-
17-DEC-2009,LUMAXTECH,Lumax Auto Technologies L,DHANESH-KUMAR-JAIN,SELL,329000,70.76,-
17-DEC-2009,NOVA,Nova Petrochem Ltd,REGENT FINANCE CORPORATION PVT. LTD.,SELL,154182,14.47,-
17-DEC-2009,NOVA,Nova Petrochem Ltd,TRIPOLI MANAGEMENT PVT LTD,SELL,500000,15.88,-
17-DEC-2009,NOVA,Nova Petrochem Ltd,VORA VILPABEN PRANAVBHAI,SELL,145778,14.35,-
17-DEC-2009,PAEL,PAE Limited,BHAVIN Y MEHTA,SELL,55689,46.32,-
17-DEC-2009,POLARIS,Polaris Software Lab Ltd,ORBITECH LIMITED,SELL,1030851,182.33,-
17-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,DHARMSHI VASHRAM DESAI,SELL,55262,294.10,-

Lethargy continues

Today's major news

HCC bags Rs317.92-crore road project; the stock rises 2.52%.

Pratibha Industries secures contract worth Rs130 crore; the stock surges 2.09%.

KEC International wins orders worth Rs550 crore; the stock jumps 3.24%.

Patel Engineering bags $1 billion order in Djibouti; the stock ends the day 2.22% higher.

Tanla Solutions arm commences operations from SEZ in Hyderabad; the stock shot up 6.09%.

Click here for more stories

Post-market summary

Global signals

The European stocks opened weak and extended their losses in the early trading hours with the banking stocks leading the pack of losing stocks. At the time of writing this report FTSE 100 was trading 0.60% lower.

All the major Asian indices closed lower today. Shanghai Composite was down 2.34% while the Hang Seng shed 1.22%. SGX Nifty closed 41 points lower.

US stock futures opened weak with marginal losses. Investors are looking for data related to Initial Claims for December 12 and Continuing Claims for December 05, 2009.

Indian indices

The overall lethargy seen over the past two weeks continued this day too. Opening almost flat, at 16912, Sensex slid to touch an intra-day low of 16826. The day’s high was 16979 and select consumer durable stocks did attract investor interest. At closing bell Sensex was almost back of square only 18 points lower at 16894. Nifty closed only 0.30 points lower at 5042.

Sensex sentiment

Market breadth, the number of advancing shares to declining ones, was negative marginally. Of the 2,840 stocks traded on the BSE, 1,628 stocks advanced, whereas 1,173 stocks declined. Eighty four stocks closed unchanged.

Sectoral & stock screening

Consumer durable and healthcare stocks witnessed some investor interest with the BSE CD and BSE HC up by 1.72% and 1.44% respectively. Realty stocks have been under pressure for some days and the sector was down by 1.11% for the day. The rest of the sectors were either marginally up or down.

The star stock for the day was Pantaloon Retail that was up by 8.42% to be followed by Zee Entertainment that surged by 5.67% and Torrent Power that rose by 5.43%. DLF slid the most by 3.70%, followed by United Spirits that fell by 2.84% and Unitech that shed 2.19%.

Viewing volumes

Realty giant Unitech was the most actively traded share with over 1.44 crore shares changing hands on the BSE followed by wind turbine maker Suzlon Energy (1.21 crore shares), IFCI (1.15 crore shares), the largest realtor DLF (0.49 crore shares) and HDIL (0.48 crore shares).

Asian Markets turns timid on Thursday

Shanghai, Nikkei, Hang Seng finish in red while Sydney bucks regional trend

Stock markets in Asian region extended losses on Thursday, 17 December 2009, investors turn cautious after Hong Kong’s central bank said the city is at risk of sharp corrections in asset prices. Though overnight cues from Wall Street were mixed, the mood remains quite cautious in the region with a section of investors still remaining a bit concerned about the pace of economic recovery.

On Wall Street, stocks closed mixed, retreating after the Federal Open Market Committee announced that it will keep its key interest rate near zero. The Dow Jones Industrial Average lost 11 points, or 0.1%, to 10,441. The S&P 500 finished ahead by 1 point, or 0.1%, at 1109, while the Nasdaq rose 6 points, or 0.3%, to 2207.

On the economic front, the Fed reiterated that it will keep its fed funds rate at 0% to 0.25% and that conditions are likely to keep the rate exceptionally low for an extended period. In a slight turn of phrase, the central bankers' statement also noted that deterioration in the labor market is abating, though the typically cautious statement also cited a usual host of challenges to recovery.

In the commodity market, crude oil fell as the dollar strengthened against the euro, limiting the appeal of commodities as a currency hedge.

Crude oil for January delivery fell as much as 54 cents, or 0.7%, to $72.12 a barrel in electronic trading on the New York Mercantile Exchange. It was at $72.15 a barrel at 8:56 a.m. London time.

Brent crude oil for February settlement fell as much as 64 cents, or 0.9%, to $73.65 a barrel on the London-based ICE Futures Europe exchange. The contract was at $73.92 a barrel at 8:45 a.m. London time.

Gold declined, reversing early gains, as the dollar’s strength eroded demand for the precious metal as an alternative investment. Gold for immediate delivery dropped as much as 1.1% to $1,125.40 an ounce and traded at $1,128.20 at 3:30 p.m. in Singapore.

Earlier it climbed as much as 0.4% to $1,141.88 an ounce, 6.9% off its record of $1,226.56 reached 3 December 2009. February-delivery bullion on the Comex division of the New York Mercantile Exchange was 0.7% lower at $1,127.90 an ounce after gaining as much as 0.6% earlier.

In the currency market, the US dollar also rides on the weakness in Asia stocks to the news and strengthens across the board. The greenback is also lifted as recovery in gold fades again after breaching 1140 level briefly.

The Japanese yen was quoted at 89.90 against the US dollar. The U.S. dollar rose above the 90 yen line today morning for the first time since 7 December in Tokyo, after the Federal Reserve gave a better economic outlook, although it put off a rate hike as widely expected.

The Hong Kong dollar was trading at HK$ 7.7568 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 skidded to 11-week lows on Thursday as the US dollar cleared major chart levels on a range of currencies, triggering a wave of short covering in an illiquid year-end market. The Aussie crumbled to close locally at $US0.8892 from an early $US0.9012 high and $US0.8987 at Wednesday's close.

In Wellington trade, the New Zealand dollar fell today as the US dollar rose strongly against the euro. The euro is at its lowest level against the US dollar in three months. The NZ dollar was at US71.51c at 5pm, down from US72.01c at 8am and US71.76c at 5pm yesterday.

The South Korean won closed at 1,177.9 won to the U.S. dollar, down 13 won from Wednesday's close, as lingering uncertainties about the economy led investors to bet on safer assets.

The Taiwan dollar weakened further against the greenback. The Taiwan dollar was trading lower against the US dollar at NT$ 32.3480, 0.0200 up from Tuesday’s close of NT$32.3280.

In equities, most of the Asian markets ended lower, with worries about a surge in supply of new shares and their impact on liquidity dragging Shanghai and Hong Kong lower.

In Japan, stock market ended in the negative terrain reversing gains, as banks dropped on investor concerns that yesterday’s gains were excessive. Investors pocketed profits on a rally in big banks. At the closing, Nikkei 225 Stock Average index fell 13.61 points, or 0.13%, to 10,163.80, while the broader Topix decreased 2.01 points or 0.22%, to 896.28.

On the economic front, Japan’s leading index for October was revised down to 89.4 from 89.7. However, the index stood above September's 87.5 and improved for the eighth straight month. At the same time, the coincident index came in at 94.3 in October, in line with the preliminary estimate. In September, the reading was 93.2. Further, the lagging index reading for October was revised to 83.7 from 84.8.

Japan’s value of household financial assets totaled 1,439.48 trillion yen at the end of September, down 0.7% year on year but a smaller decline than the 2.9% fall three months earlier, according to preliminary data. Household financial wealth began shrinking after hitting a record 1,571 trillion yen at the end of June 2007. In the three months through September, such assets contracted 0.2%.

In Mainland China, equities closed at three weeks low level, tumbling more than 2%, as the prospect of heavy new share supplies eroded sentiment. Moreover, many investors either remained on the sidelines or reduced their positions ahead of the year-end holidays. Furthermore, China’s bankers confidence index, which rose for the third straight month failed to support the composite index.

The Shanghai Composite Index ended down 76.14 points at 3,179.08, slipping for a third day in a row. The Shenzhen Component Index lost 2%, or 273.25 points, to close at 13,391.72 points.

On the economic front, Chinese bankers become more confident in the nation's macro-economy and expect a continuous economic up tick in the future, a survey by the central bank said. Bankers' confidence index (BCI) for the macro-economy rose for three straight quarters to 70.1 percent in the fourth quarter, 14.7 percentage points up from the third quarter, the People's Bank of China said. Bankers' macro-economic expectation index for the first quarter next year increased to 49.9 percent, 4 percentage points higher than a quarter ago.

In Hong Kong, stocks continued to extend their losses for a third session, as traders grew convinced of more action from the policymakers to tame overheated asset markets in the days to come. Hang Seng Index declined after the mainland's securities regulator gave its approval for a number of initial public offerings over the last few days. Financials and Property stocks led the losses. Weak cues from the US futures indices aggravated the selling in the closing hours.

At the closing bell, the Hang Seng Index stumbled 264.11 points, or 1.22%, to 21,347.63, meanwhile the Hang Seng China Enterprise, which tracks the overall performance of 43 mainland Chinese state-owned enterprises on the Hong Kong Stock Exchange, shrank 190.23 points, or 1.50%, to 12,501.20.

On the economic front, Hong Kong Monetary Authority (HKMA), the city's de factor central bank, today announced its benchmark interest rate will remain at 0.50%.

In Australia, stock markets continued to swing between gains and losses finishing marginally higher, as gains in mining stocks were offset by losses in financial sector.

The benchmark S&P/ASX200 index closed up 8.4 points, or 0.2%, to 4670.3 and the All Ordinaries rose 13.5 points, or 0.3%, to 4689.6.

On the economic front, the Reserve Bank of Australia sold a net $313 million in the foreign exchange market in November. This figure includes foreign exchange transactions against the Australian dollar undertaken by the RBA.

The central bank also bought a new $354 million worth of foreign currency from the government during the month. Altogether, the RBA bought a new $41 million worth of foreign exchange in November.

In New Zealand, benchmark index ended the day down in the negative terrain after inching up for two days in a row. The NZX50 decreased 0.32% or 10.14 points to 3122.92. The NZX 15 declined 0.53% or 30.27 points to close at 5671.04.

On the economic front, business confidence in New Zealand softened further in December – the third successive monthly decline. A net 39 percent expect better times ahead, down 4 percentage points on November’s reading. Confidence was down across all the major sub-groups. However, despite the slight fall in confidence, the glass remains half full, as per the report. The overall level of confidence remains robust, and noticeably so across all the major segments. Confidence is still strongest in the construction industry, but is now closely followed by retailing, services and manufacturing.

In South Korea, stocks closed lower as institutional investor’s unloaded large-cap shares on economic uncertainties. The benchmark Korea Composite Stock Price Index (KOSPI) slid 16.4 points to 1,647.84.

In Taiwan, stock market in Taiwan took the losses to third consecutive session, following the mixed closing on the Wall Street. Construction sector lead the losers while semiconductor sector put up some gains. The benchmark Taiex share index extended losses for the third session on Thursday, by finishing the day lower by 9.43 points or 0.12% at 7742.17.

In Philippines, stocks ended marginally higher today amid mixed cues from the Wall Street and ideas that the central bank will keep its interest rates steady later on today. The benchmark index PSEi ascended 0.52% or 15.78 points to 3,048.15, while the All Shares index mounted 0.40% or 7.76 points to 1,901.40.

In India, the key benchmark indices ended a choppy trading session lower as world stocks fell after the Federal Reserve at the end of a two-day policy meeting, detailed its plans to remove excess liquidity from the financial system, as previously planned. The BSE Sensex was down 18.52 points or 0.11% to 16894.25. The S&P CNX Nifty was down 0.30 points or 0.01% to 5041.75.

Elsewhere, Malaysia’s Kula Lumpur Composite index finished slightly lower at 1266.97 while stock markets in Indonesia’s Jakarta Composite index inched down 12.97 points ending the day lower at 2509.58.

In other regional market, European shares and the euro weakened on Thursday, as another downgrade for Greece's credit rating kept investors focused on prospects for the region. The U.K. FTSE 100 index declined 0.6% or 30.42 points to 5,290, the German DAX index lost 0.5% or 27.96 points to 5,875 and the French CAC-40 index slipped 0.5% or 18.80 points to 3,857.

Turnover declines

Nifty December 2009 futures at discount

Nifty December 2009 futures were at 5,030, at a discount of 11.75 points as compared to the spot closing of 5,041.75. Turnover in NSE's futures & options (F&O) segment was Rs 73,698.14 crore, lower than Rs 76,131.29 crore on Wednesday, 16 December 2009.

Tata Motors December 2009 futures were at discount at 708.90 compared to the spot closing of 712.80.

State Bank of India December 2009 futures were at a slight premium at 2,170.30 compared to the spot closing of 2,169.

Housing Development & Infrastructure December 2009 futures were at premium at 352.85 compared to the spot closing of 351.80.

In the cash market, the S&P CNX Nifty slipped 0.30 points or 0.01% at 5,041.75.

Bulls throng small-cap, mid-cap stocks

Investors have thrown caution to the wind. A host of small-cap and mid-cap stocks rose sharply today, 17 December 2009, even as the key benchmark indices viz. the BSE Sensex and the S&P CNX Nifty witnessed wild intraday swings. The key benchmark indices ended a choppy trading session lower as world stocks fell after the Federal Reserve at the end of a two-day policy meeting on Wednesday, 16 December 2009, detailed its plans to remove excess liquidity from the financial system, as previously planned. The BSE Sensex fell 18.52 points or 0.11%, off close to 85 points from the day's high and up close to 70 points from the day's low.

Realty and capital goods stocks fell. But, IT stocks rose on a weak rupee. Index heavyweight Reliance Industries (RIL) slumped in late trade. The market breadth was strong.

The market was volatile. Stocks cut losses after an early slide. The market pared gains after hitting fresh intraday high in mid-morning trade. The market slipped into the red after moving between the positive and negative zones in early afternoon trade. The market cut losses after hitting a fresh intraday low in afternoon trade. The market staged a strong intraday rebound with the Sensex hitting a fresh intraday high in mid-afternoon trade. The market once again slipped into the red later.

India VIX, a volatility index based on the S&P CNX Nifty index option prices, declined 0.4% to 27.25. India VIX is a measure of the market's expectation of volatility over the next 30 calendar days

Moody's Investors Service on Thursday upgraded the long-term foreign currency (FC) deposit ratings of 14 Indian banks to Ba1 from Ba2, following the rating agency's recent upgrade of India's FC deposit ceiling.

The food price index rose 19.95% in the year to 5 December 2009, government data released at 12:00 IST today, showed. The fuel price index rose 3.95% and primary articles index rose 14.98%.

Finance Minister Pranab Mukherjee said on Thursday that rising food prices was an area of concern and the government would consider imports to augment food supply. Mukherjee had said on Tuesday that the government will take steps to tame rising prices and enable the economy to recover faster.

Inflation and high fiscal deficit are major risks to the government's ambitious plan to ratchet up economic growth back to 9% level seen between 2005/06 and 2007/08. Latest government data shows food inflation at 16.7% in November 2009, which have pushed the headline inflation to 4.78%.

Trade Minister Anand Sharma said on Wednesday exports growth is sustainable in the coming months. The exports broke their fall in November 2009 after 13 months of decline, adding to the flurry of positive economic data, but the news was greeted with caution by policymakers and exporters. Helped by Christmas buying, exports grew 18.3% to $13.2 billion in November from a small base last year.

Advance tax payments by several automobile, power, cement and banking majors in the third quarter have been stronger compared to the year-ago pay-outs indicating better third quarter results of these companies.

Meanwhile, the two main bourses the Bombay Stock Exchange and the National Stock Exchange have postponed by more than two weeks their move to bring forward the start of trading by 55 minutes, after strong protests from brokers. Extended trading on the two premier stock exchanges in the country will now begin on 4 January 2010, instead of the earlier planned 18 December 2009.

The two exchanges had late on Wednesday, 16 December 2009, announced extension of trade timing in equity and derivative segments by almost an one hour to 9:00 IST effective from Friday, 18 December 2009. The move was to align the timings with that in major Asian markets.

Meanwhile, the Basel Committee on Banking Supervision on Thursday published their proposals on bank capital and liquidity rules. The fully calibrated set of standards will be developed by the end of 2010 to be phased in as financial conditions improve and the economic recovery is assured, with the aim of implementation by end-2012. It stressed that it's still considered different proposals. Requirements for the trading book, resecuritizations and exposures to off-balance sheet conduits are to be implemented by the end of 2010.

European shares fell back from a one-month closing high on Thursday, after the US Federal Reserve reiterated that its special liquidity measures would expire early next year. The key benchmark indices in France, Germany and UK fell by between 0.56% to 0.93%.

UK retail sales slipped 0.3% in November from October, or rose 3.1% compared to November 2008, according to data from the Office for National Statistics. Food store sales rose by 0.4% while non-food store sales fell 0.9%.

Most Asian shares fell on Thursday even as the Federal Reserve said the US economy is improving. The key benchmark indices in China, Japan, Indonesia, Singapore, Hong Kong and South Korea fell by between 0.02% to 2.34%.

The dollar rose broadly on year-end position unwinding, adding to its gains for the month. The dollar rose to a three-month-high against the euro in Asia Thursday due to concerns over European bond markets and the US Federal Open Market Committee's slightly hawkish statement overnight. The Dollar Index, which tracks the dollar's value against a trade-weighted basket of six currencies, was at 77.532 from 76.934 late Wednesday.

The euro fell below $1.4400 for the first time since 8 September 2009. The US currency could post further gains if December's Philadelphia Fed Manufacturing Index due later in the global day beats market forecasts, highlighting the recovery in the American economy. Economists expect the index to come to 16.40, a slight deterioration from the index's previous result of 16.70.

Also adding pressure to the euro was Standard & Poor's announcement on Wednesday that it had cut Greece's credit rating on concerns the country will struggle to bring lower a deficit that is over 12% of GDP. Greece has the widest budget deficit among the European Union nations. Greek Prime Minister George Papandreou pledged two days ago to provide 'radical' measures to fix the budget.

Making the market more bearish about the euro was a Standard & Poor's Ratings Services announcement that it has revised its ratings criteria for covered bond programs, placed euro 1.46 trillion worth of such programs on CreditWatch, and signaled these programs may be downgraded in the next few months. European banks often raise funds using covered bonds because of the low cost. A ratings cut possibility in bonds means European financial institutions may face difficulty raising funds in the near future, which may spur risk aversion.

Trading in US index futures indicated Dow could fall 57 points at the opening bell on Thursday, 17 December 2009.

US markets erased most its intraday gains on Wednesday after the Fed offered no surprises in its latest statement, keeping interest rates steady, as expected. The Fed also backed its pledge to keep rates low for an extended period. The Dow Jones Industrial Average was down 10.88 points, or 0.1%, to 10,441.12. The broader Standard & Poor's 500 index added 1.25 points, or 0.1%, 1,109.18. The Nasdaq Composite Index was up 5.86 points, or 0.3%, to 2,206.91.

The Federal Reserve, the Fed kept its target range for its bank lending rate at zero to 0.25%, where it's stood since last December 2008. And it repeated its pledge to keep rates at exceptionally low levels for an extended period. In a more upbeat assessment, the Fed said the economy has continued to pick up and that deterioration in the labour market is abating. Still, the Fed predicts unemployment will remain high. The Fed statement said the household spending appears to be expanding at a moderate pace.

Economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period, the central bank said.

The Fed took note of improving conditions for banks and said it would shutter most of its emergency lending facilities on 1 February 2010, the clearest sign yet it was ready to pull back from extraordinary efforts to fight the global financial crisis.

The BSE Sensex fell 18.52 points or 0.11% to 16894.25. The Sensex rose 66.75 points at the day's high of 16,979.52 in mid-afternoon trade. The Sensex fell 86.77 points at the day's low of 16,826 in afternoon trade.

The S&P CNX Nifty fell 0.30 points or 0.01% to 5041.75. Nifty December 2009 futures were at 5,030, at a discount of 11.75 points as compared to the spot closing of 5,041.75. Turnover in NSE's futures & options (F&O) segment was Rs 73,698.14 crore, lower than Rs 76,131.29 crore on Wednesday, 16 December 2009.

The market breadth, indicating the overall health of the market was strong. On BSE, 1619 shares advanced as compared with 1181 that declined. A total of 82 shares remained unchanged.

Among the 30-member Sensex pack, 16 rose while rest fell.

BSE clocked a turnover of Rs 4497 crore, higher than Rs 4277.07 crore on Wednesday, 17 December 2009.

A deluge of global liquidity has boosted stocks across the globe this year. Governments and central banks around the world have injected trillions of dollars in the past one year to pull the world out of a most severe recession since the 1930s Great Depression. The Sensex is up 7246.94 points or 75.11% in calendar year 2009, as on 17 December 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 8733.85 points or 107.02% as on 17 December 2009.

Coming back to today's trade, the BSE Mid-Cap index rose 1.09% and the BSE Small-cap index rose 0.88% Both the indices outperformed the Sensex.

The sectoral indices on BSE showed a mixed trend. The BSE Consumer Durables index (up 1.72%), the BSE Healthcare index (up 1.44%), the BSE IT index (up 0.87%), the BSE Teck index (up 0.66%), the BSE Metal index (up 0.35%), the BSE PSU index (up 0.32 %), the BSE Auto index (up 0.29%), the BSE Bankex (up 0.19%), the BSE Power index (up 0.14%), outperformed the Sensex.

The BSE Realty index (down 1.11%), the BSE Oil & Gas index (down 0.59%), the BSE Capital Goods index (down 0.31%), the BSE FMCG index (down 0.02%) underperformed the Sensex.

India's largest private sector firm by market capitalisation Reliance Industries (RIL) fell 1.23%. Reliance Industries' efforts to buy a controlling stake in bankrupt petrochemical maker LyondellBasell has reportedly got a bit complicated, as the Netherlands-based company submitted a new reorganisation plan to a court in the US, even as the Indian company evaluates a binding bid.

The new plan of Lyondell to emerge from bankruptcy through a rights issue and payment of its huge debt does not preclude Reliance from proceeding with its plans.

IT stocks rose on a weaker rupee. India's third largest software services exporter Wipro rose 0.19% as its ADR rose 6.45% on Wednesday. India's largest IT exporter by sales Tata Consultancy Services rose 1.29%. The company's Q3 advance tax surged to Rs 177 crore from Rs 129 crore.

India's second largest software services exporter Infosys Technologies rose 0.65% as its ADR rose 2.1% on Wednesday. Infosys Technologies expects revenue growth in the fiscal year starting in April to be better than 2009/10 as a recovery in the global economy spurs investments by its clients, Subhash Dhar, senior vice-president and head of global sales and marketing said.

The Indian rupee weakened on Thursday as the dollar strengthened on the back of the Federal Reserve's confidence about the US economy. The partially convertible rupee was at 46.88/89 per dollar, weaker than Wednesday's close of 46.655/665. 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 1.33% even as the company paid Rs 270 crore as advance tax in third quarter versus Rs 210 crore same quarter last year.

Among other capital goods stocks, Bharat Heavy Electricals, Siemens, Praj Industries fell by between 0.1% to 0.87%.

Realty stocks fell on profit taking. India's largest realty player by market capitalization DLF fell 3.7%. DLF's overall debt will reportedly go up by Rs 2200 crore as a result of integration of its wholly-owned subsidiary DLF Cyber City Developers with Caraf Builders & Constructions (a KP Singh company that owns DLF Assets). DLF board has in-principle approved the integration, that will see DLF holding 60% interest in the entity formed by consolidation of its own commercial property subsidiary and the property trust.

The remaining 40% will be held by promoter Mr K P Singh and family. In effect, DAL will now be brought into DLF's fold through this integration. DLF plans to list the property trust in Singapore in 2010. DLF said that the integration will be a 'net cashless transaction' but did not reveal either the enterprise valuation of the two entities involved or the modalities of the deal.

Among other realty stocks, Phoenix Mills, Unitech and Omaxe fell by between 1.48% to 2.19%.

Metal stocks rose after LMEX, a gauge of six metals traded on the London Metal Exchange, rose 2.25% on Wednesday, 16 December 2009. Steel Authority of India, Hindustan Zinc, National Aluminum Company rose by between 0.76% to 1.82%.

India's largest aluminum maker by sales Hindalco Industries rose 1.4% gaining for the third straight day. The company paid Rs 100 crore as advance tax in third quarter versus Rs 40 crore same quarter last year.

India's largest steel maker by sales Tata Steel rose 1.16%. The company's European unit Corus secured a 350 million euro contract to supply rails tracks to French railway operator SNCF. Meanwhile, Tata Steel paid Rs 650 crore as advance tax in third quarter versus Rs 260 crore same quarter last year.

Print media stocks rose after a strong response to the IPO of DB Corp which was subscribed close to 40 times. Jagran Prakashan, HT Media, Deccan Chronicle Holdings, Sandesh rose by between 0.63% to 5.81%.

India's largest thermal power generator by sales NTPC fell 0.14%. As per reports the government plans to mop up around Rs 11,000 crore from the disinvestment of 5% stake in the utility giant.

Among other power stocks, Reliance Power, Tata Power Company and Reliance Infrastructure fell by between 0.21% to 0.56%.

Shares of state-run oil-marketing companies declined as oil rose above $71 a barrel on Wednesday, extending its gains after snapping a nine-day losing streak a day earlier, as industry data showing a sharp drop in US distillate stockpiles overshadowed signs of weak demand. Bharat Petroleum Corporation (BPCL) (down 1.93%), Hindustan Petroleum Corporation (HPCL) (down 1.17%) and Indian Oil Corporation (IOC) (down 1.42%) edged lower. Rise in crude oil prices will increase under-recoveries of state-run oil firms on domestic sale of petrol, diesel, LPG and kerosene at a controlled price.

India's largest cement maker by sales ACC rose 0.67% even as company's Q3 advance tax was at Rs 110 crore, lower than Rs 125 crore in the same period last year.

Among other cement stocks, UltraTech Cement, Birla Corporation Ambuja Cements rose by between 0.02% to 0.92%.

Cement prices are reportedly seen hardening in the January-March 2010 quarter as demand from state projects picks up and rural housing drives volume growth. Prices went up by Rs 8-10 for a 50 kg bag southern India late November to Rs 155-175, while a similar hike in Mumbai on 2 December 2009 raised prices to Rs 240-245 per bag.

Construction shares rose on government's thrust on infrastructure.. Hindustan Construction Company, Gammon India, Jaiprakash Associates, Gayatri Projects rose by between 1.04% to 10.44%. The government has set a target of spending $20 billion a year on road construction.

Auto stocks were mixed. India's largest motorcycle maker by sales Hero Honda Motors rose 0.39%. The company's total vehicle sales jumped 32% to 3.81 lakh units in November 2009 over November 2008.

India's second largest bike maker by sales Bajaj Auto fell 0.1%. Bajaj Auto will reportedly stop producing scooters by March 2010 to focus on motorcycles.

Bajaj Auto on 9 December 2009 launched a 135 cc Pulsar, pushing the Pulsar brand into the mass segment. Bajaj expects a sell a minimum 30,000 units per month of the new Pulsar model. The automaker had recently refreshed the entire Pulsar lineup and expects total Pulsar sales to cross 80,000 units per month.

The company's total vehicle sales rose 73% to 2.76 lakh units in November 2009 over November 2008. Motorcycles sales jumped 84% to 2.42 lakh units.

India's largest small car maker by sales Maruti Suzuki India fell 1.16%. Suzuki Motor Corp and Volkswagen AG will start detailed discussions over joint projects after 10 January 2010, Suzuki CEO Osamu Suzuki said on Wednesday. Japan's Suzuki Motor said on 9 December 2009 it will sell a 19.9% stake to Volkswagen (VW) for $2.5 billion and use half the proceeds to buy shares in the German automaker, as the two firms form a formidable force in the auto industry. Japan's Suzuki has a 54.2% stake in Maruti Suzuki India.

Maruti's total vehicle sales spurted 66.60% to 87,807 units in November 2009 over November 2008. Domestic sales spurted 60.10% to 76,359 units, while exports surged 128.60% to 11,448 units in November 2009 over November 2008.

India's top truck maker by sales Tata Motors rose 0.18% as company paid Rs 100 crore as advance tax in third quarter versus Nil same quarter last year. Egypt has reportedly invited Tata Motors to build a factory to make the Nano, the world's cheapest car, in the African country for the local market and sales elsewhere.

India's top tractor marker by sales Mahindra & Mahindra (M&M) rose 0.96% after company paid Rs 195 crore as advance tax in third quarter versus Rs 4.5 crore same quarter last year. M&M has forayed into the aerospace business by acquiring majority stakes in two Australian companies, Aerostaff Australia and Gippsland Aeronautics. Mahindra Aerospace (MAPL), in which Kotak Private Equity has also invested Rs 150 crore, will hold 75% stake in each of the two Aussie companies. The remaining will be held by the existing managements. The payments will be made in installments.

Car sales in India rose an annual 61% to 1,33,687 in November 2009 over November 2008, boosted by improved consumer sentiment, easier availability of loans and a low sales base a year earlier, an industry body said on Tuesday. Sales of trucks and buses, a gauge of economic activity, doubled to 40,847 units in November from 20,631 a year earlier, data from the Society of Indian Automobile Manufacturers showed.

India's largest FMCG maker by sales Hindustan Unilever rose 1.63% The company paid Rs 200 crore as advance tax in third quarter versus Rs 155 crore same quarter last year.

Among other FMCG stocks ITC, Dabur India and United Breweries rose by between 0.08% to 0.59%.

Telecom shares fell after new entrant Sistema Shyam Teleservices extended the tariff war in the telecom segment. Idea Cellular (down 1.28%), Bharti Airtel (down 0.78%), and Reliance Communication (down 0.63%), declined. Sistema Shyam Teleservices (SSTL), which operates under the MTS brand, on Wednesday, 16 December 2009, launched mobile telephony services in Mumbai.

Telecom stocks have taken a severe pounding recently following concerns that the ongoing tariff war will further shrink revenues and margins of telecom companies.

Cals Refineries clocked the highest volume of 2.08 crore shares on BSE. Unitech (1.44 crore shares), Suzlon Energy (1.21 crore shares), IFCI (1.15 crore shares) and Asahi Infrastructure (0.65 crore shares) were the other volume toppers in that order.

State Bank of India clocked the highest turnover of Rs 198.94 crore on BSE. DLF (Rs 182.19 crore), Housing Development & Infrastructure (Rs 171.38 crore), Tata Steel (Rs 131.68 crore), Unitech (Rs 119.14 crore) were the other turnover toppers in that order.

NSE, BSE - Change in Market Timings

After extensive consultations with market participants, based on consensus it has been decided to start the market at 9.00 a.m. from Friday, December 18, 2009 and accordingly the revised market timings are as follows:

Capital Market Segment

Normal Market / Retails Debt Market / Limited Physical Market Open: 9:00 a.m.

Block Trade session shall be available from 9:00 am to 9:35 am.

Normal Market / Retails Debt Market / Limited Physical Market close time shall remain unchanged i.e. 3:30 pm

There is no change in the timings of closing session and Auction market.

Futures & Options Segment

Normal market / Exercise market open time: 9:00 a.m

Normal market close time shall remain unchanged i.e. 3:30 p.m.

There is no change in the cutoff time for set up of Position limit / Collateral value, Trade modification / Exercise market end time.

Strategy - Dec 17 2009

Strategy - Dec 17 2009

Morning Note - Dec 17 2009

Morning Note - Dec 17 2009

SGX Nifty Live Update - Dec 17 2009

5,055.00 -3.00

Sterling Biotech

We recommend a buy in the stock of Sterling Biotech from a short-term perspective. It is evident from the charts that the stock has been trending down, forming lower peaks and troughs since the August 2008 peak of Rs 263. However, the stock's significant long-term support at Rs 90 arrested its downward movement in early November. The stock took support at this level and has been on a short-term uptrend since then. This trend reversal is also backed by positive divergence displayed in the weekly moving average convergence and divergence indicator. On December 16, the stock penetrated its medium-term downtrend-line and 21-day moving average by jumping 6 per cent accompanied with heavy volume. The daily relative strength index (RSI) is on the brink of entering the bullish zone from the neutral region and weekly RSI is likely to enter the neutral region from the bearish zone, showing signs of optimism. From a short-term trading perspective we are bullish on the stock. We anticipate it to move up until it hits our price target of Rs 109. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 93.5.

via BL