Markets at new peak

After the worst performance in the last week, markets bounceback with a bang closing the week on a new high. The X-mas celebrations started on the Dalal street early on 23rd wherein the bulls bounces back in last two trading session after starting the week on a weak note. The Sensex ended the week 641 points higher. On the other hand, Nifty touched 18-month high level to closes at 5170 level.

The rally was majorly lead by the heavyweights that helped the BSE Sensex index to outpace the BSE small and mid-cap indices in terms of the performance. Such a performance by the 30-stock benchmark indices was owing to the Finance Minister signalling that the government wont be withdrawing fiscal stimulus yet and the optimism on the GDP growth that excited the markets.

In the next week, markets are expected to surge higher owing to the strong closing for this week. The global developments also needs to be seen for any further direction.

Wireless subscription reaches 506.04mn

The number of telephone subscribers in India increased to 543.2mn at the end of November-09 from 525.65mn in October-09, thereby registering a growth rate of 3.34%. With this, the overall tele-density in India reaches 46.32. Wireless subscriber base increased from 488.4mn in October-09 to 506.04mn at the end of November-09 at a monthly growth rate of 3.61%. Wireless Tele-density stands at 43.15. Wireline subscriber base declined from 37.25 Million in October-09 to 37.16 Million at the end of November-09. BSNL/MTNL, two PSU operators hold 85.35% of the Wireline market share. However, they lost 0.13 Million subscribers in the month of November-09. Overall Wireline teledensity is 3.17. Total Broadband subscriber base has increased from 7.40 million in October-09 to 7.57 million in November, thereby showing a growth of 2.26%.

3G auction to be held as per schedule: Govt

Telecom Minister A. Raja said that the Government plans to start auctioning third-generation (3G) wireless spectrum as scheduled from January 14. Spectrum will be given to four successful bidders, excluding BSNL and MTNL. However, all the successful bidders will get 3G spectrum simultaneously only in August 2010. "Auction will be according to the schedule. Allotment of spectrum to maintain the level playing field will be by August 2010," the minister stated. "Allotment to the four service providers will be simultaneous," he added.

Following the empowered Group of Ministers' (eGoM) decision, the Department of Telecommunications (DoT) will soon issue a notice inviting applications for the sale of spectrum. The notice is a legally binding document on the auction and will specify all details regarding the sale of spectrum, including its exact availability in each circle and the specific bands for the winners.

Ratan Tata, Chairman of the Tata Group, has written to a top government functionary saying that all successful bidders should be given air waves simultaneously to keep the playing field level. Tata's observation follows a proposal by the DoT to allocate spectrum to three successful bidders in tranches. According to the DoT's plan, 3G spectrum would be given in phases with the highest bidder in a circle getting it immediately, while the second and third players will get air waves only by July and September 2010, respectively.

Mobile number portability, the facility that allows customers to retain their mobile numbers while changing operators, will be implemented from early 2010. This may affect operators who do not win 3G spectrum as they may see their high-end customers migrating to rivals. The UPA government is keen to hold 3G auctions this financial year as it is targeting to raise Rs300-350bn from the process to help bridge the fiscal deficit. But, if the auction revenue does not come this financial year, the Government's math will go wrong.

Weekly Newsletter - Dec 24 2009

After being in doldrums for most of the month, the Indian market suddenly sprung back to life thanks largely to the short covering ahead of the F&O expiry. The key indices made a new high for 2009 on the eve of Christmas, rekindling the festive spirit. Two extended weekends and the derivative settlement could mean that the market will be volatile. The Nifty could surpass 5200 but further advance could hit speed breakers as valuations are not cheap and a few concerns are still in place. At the same time, a big slump is not on the cards. The Nifty is likely to find support at 5100 and 5000.

Global markets could see choppy, inconclusive trade as many are expected to have opted for a long year-end weekend. Also, a few markets could even be shut till the start of the new year. After having made a spectacular comeback, the bulls are unlikely to take any undue risks. The best thing to do next week would be to keep away from the markets and take a long hard look next year. Enjoy the holidays and begin afresh in 2010.

Food price inflation softens a little

Inflation in the Food Articles group declined slightly to 18.65% in the week ended December 12, but continued to remain near 11-year high. It was 14.98% in the previous week. Inflation for the Primary Articles group increased to 14.66% from 14.98% in the first week of December. Meanwhile, inflation in the Non-Food Articles group rose to 7.97% as against 5.70% in the week ended Dec. 5 and inflation for the Minerals group stood unchanged at (-)3.28%. Inflation for Fuel & Power group also remained unchanged at 3.95%.

Finance Minister Pranab Mukherjee said that inflation was now a challenge for the Government. Planning Commission deputy chairman Montek Singh Ahluwalia said that an annual inflation of 5-6% was quite reasonable. The annual wholesale price inflation (WPI), which stood at 1.34% in October, rose to 4.78% in November. Monthly inflation could reach 8% by the end of the fiscal year in March, above the central bank's forecast of 6.5%.

BSE Bulk Deals to Watch - Dec 24 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
24/12/2009 530715 Alps Inds ABHISHEK VIJAYKUMAR SHAH B 652213 12.96
24/12/2009 530715 Alps Inds ABHISHEK VIJAYKUMAR SHAH S 652213 13.28
24/12/2009 530715 Alps Inds SHILPA STOCK BROKER PRIVATE LIMITED S 174982 13.16
24/12/2009 590059 Bihar Tubes SUNITA PUROHIT B 150000 85.79
24/12/2009 590059 Bihar Tubes HIMANSHU ASHAR B 200000 82.50
24/12/2009 590059 Bihar Tubes AAP INVESTMENTS B 105500 85.35
24/12/2009 590059 Bihar Tubes DHOOT INDUSTRIAL FINANCE LTD B 150000 82.50
24/12/2009 590059 Bihar Tubes MADHUKAR CHIMANLAL SHETH B 300000 82.50
24/12/2009 590059 Bihar Tubes SAKET AGRAWAL S 333231 82.43
24/12/2009 590059 Bihar Tubes TAPARIA HOLDINGS PVT LTD S 410000 82.50
24/12/2009 590059 Bihar Tubes AAP INVESTMENTS S 105500 86.17
24/12/2009 590059 Bihar Tubes PRIKAR FINANCIAL CONSULTANTS PVT LTD S 117000 85.23
24/12/2009 530249 Bridge Sec PRAGNESH R SHAH HUF B 20000 14.35
24/12/2009 517973 DMC Intl BHARAT GUPTA B 46636 21.25
24/12/2009 517973 DMC Intl CENTENARY SOFTWARE PVT LTD B 49071 21.23
24/12/2009 517973 DMC Intl CENTENARY SOFTWARE PVT LTD S 46006 21.25
24/12/2009 517973 DMC Intl KAPIL GUPTA S 37000 21.25
24/12/2009 522027 EMA India AFJALBHAI KASAMBHAI LAKHANI B 8001 54.87
24/12/2009 522027 EMA India ASARAFBHAI MAJIDBHAI PANCHA B 7999 52.33
24/12/2009 522027 EMA India AFJALBHAI KASAMBHAI LAKHANI S 8001 52.33
24/12/2009 522027 EMA India ASARAFBHAI MAJIDBHAI PANCHA S 7999 54.87
24/12/2009 530337 Exelon Infra KAMALA KANTA GUPTA B 21690 57.21
24/12/2009 530337 Exelon Infra KAMALA KANTA GUPTA S 41990 56.92
24/12/2009 532894 Indowind Ener AJIT SINGH B 500000 59.17
24/12/2009 523844 Invicta Meditek RAMACHANDRAN V B 192267 5.66
24/12/2009 523844 Invicta Meditek UDBHAV HOLDINGS PVT LTD B 155000 5.66
24/12/2009 523844 Invicta Meditek D VENKATESAN B 150000 5.66
24/12/2009 523844 Invicta Meditek P. P. Lakshmanan S 505985 5.66
24/12/2009 524378 JMDE Pack VASUDEVAN PILLAIP S 41300 4.28
24/12/2009 516078 Jumbo Bag SHANTILAL MAGANLAL CHEDA B 78473 43.77
24/12/2009 532283 Kaashyap Tech VIJAY Y NANVARE B 2875000 0.69
24/12/2009 532283 Kaashyap Tech VIJAY Y NANVARE S 2875000 0.69
24/12/2009 532268 Kale Consl HITESH SHASHIKANT JHAVERI B 67034 91.89
24/12/2009 523810 Kaleidoscope Films BABURAO HARI RAMISTE B 300000 3.56
24/12/2009 530255 KAY Power KAUSHALYA GARG B 59000 11.07
24/12/2009 530255 KAY Power KAILASHCHAND GUPTA B 61110 11.15
24/12/2009 530255 KAY Power KAUSHALYA GARG S 100000 11.34
24/12/2009 530255 KAY Power AMRISH BABULAL SANGHVI S 66750 11.15
24/12/2009 500255 LML TRANSGLOBAL SECURITIES LTD. B 550273 12.27
24/12/2009 500255 LML TRANSGLOBAL SECURITIES LTD. S 548700 12.25
24/12/2009 504112 NELCO HITESH SHASHIKANT JHAVERI B 143272 103.86
24/12/2009 504112 NELCO HITESH SHASHIKANT JHAVERI S 146448 103.48
24/12/2009 532045 Nexxoft Info VAISHALI M PATEL B 28519 17.99
24/12/2009 532045 Nexxoft Info VAISHALI M PATEL S 28519 18.66
24/12/2009 523385 Nilkamal OPG SECURITIES P LTD B 213302 229.19
24/12/2009 523385 Nilkamal JMP SECURITIES PVT LTD B 78450 237.81
24/12/2009 523385 Nilkamal OPG SECURITIES P LTD S 213302 229.34
24/12/2009 523385 Nilkamal JMP SECURITIES PVT LTD S 73700 237.91
24/12/2009 531496 Omkar Overseas PRAKASHKUMAR DEVSHILAL SHETH B 50000 42.23
24/12/2009 531496 Omkar Overseas AMBIKA SHYAM SHUKLA B 40000 41.63
24/12/2009 531496 Omkar Overseas SHASHIKANT TIWARI S 50000 41.63
24/12/2009 511702 Parsharti Inv PREMILA MAHENDRA SHAH B 25000 34.70
24/12/2009 511702 Parsharti Inv SANTOSH JAYANTI JAIN S 25000 34.70
24/12/2009 511652 Ram Kaashyap RUBY ALTMASKHAN PATHAN B 36000 10.30
24/12/2009 511652 Ram Kaashyap PRIYESH ARVIND BHATT S 36000 10.30
24/12/2009 502587 Rama Pulp MAHIPAT IWDARMAL MEHTA B 59275 34.34
24/12/2009 502587 Rama Pulp MAHIPAT IWDARMAL MEHTA S 107491 34.35
24/12/2009 590077 Ranklin Sol NITIN CHADHA B 37488 50.10
24/12/2009 511585 Regency Trust ABHINAV BHARGAVA HUF B 19200 20.11
24/12/2009 511585 Regency Trust MUKESH JINDAL B 49700 20.11
24/12/2009 511585 Regency Trust SUNIL KAJARIA & ORS S 55000 20.11
24/12/2009 531646 RFL Intl NILESH KRUSHNA PALANDE S 31146 1.93
24/12/2009 531099 Rubra Med LATHIYA SALES PRIVATE LIMITED B 33200 22.20
24/12/2009 531099 Rubra Med NARENDER KUMAR GUPTA S 35000 22.20
24/12/2009 531693 Shri Ganesh Spi RAJINDER PAUL & SONS S 296700 6.05
24/12/2009 531841 Subuthi Finance WIND ENERGY DEVELOPMENT COMPANY PRIVATE LIMITED S 100000 21.40
24/12/2009 512257 Swasti Vinay Gem ASHIRWAD SHELTERS PVT. LTD. S 175000 5.11
24/12/2009 570001 TATAMOTORS-DVR-A-ORDY ICICI BANK LIMITED B 397719 490.25
24/12/2009 500231 Umang Dairies BDS SHARE BROKERS PVT LTD B 66271 29.32
24/12/2009 500231 Umang Dairies BDS SHARE BROKERS PVT LTD S 63111 29.48
24/12/2009 511431 Vakrangee Soft HITESH SHASHIKANT JHAVERI B 161934 69.80
24/12/2009 511431 Vakrangee Soft HITESH SHASHIKANT JHAVERI S 161828 69.72
24/12/2009 507880 VIP Inds HITESH SHASHIKANT JHAVERI B 176752 166.04
24/12/2009 531249 Well Pack Papers SHOBHNABEN R PARMAR B 29950 352.97
24/12/2009 531249 Well Pack Papers PANDYA YAMINIBEN M B 29861 352.73
24/12/2009 531249 Well Pack Papers LAXMAN DHIRUBHAI PARMAR B 50003 352.67
24/12/2009 531249 Well Pack Papers LAXMAN DHIRUBHAI PARMAR S 36550 351.38
24/12/2009 531396 Women Networks SOBHA CHAND BHANSALI B 100000 16.18
24/12/2009 531396 Women Networks DEEPAK KUMAR BHANSALI B 25000 16.18
24/12/2009 531396 Women Networks M D JAIN CONSULTANCY PRIVATE LIMITED S 38000 16.18
24/12/2009 531396 Women Networks PRAMUKHSOFT TECHNOLOGIES PVT LTD S 28500 16.18
24/12/2009 531396 Women Networks M D JAIN CONSULTANCY P LTD S 37000 16.18
24/12/2009 506720 Zandu Pharma GENUINE STOCK BROKERS PVT. LTD. B 8300 6251.46
24/12/2009 506720 Zandu Pharma MARWADI SHARES AND FINANCE LTD. B 6883 6202.41
24/12/2009 506720 Zandu Pharma OPG SECURITIES P LTD B 8291 6295.32
24/12/2009 506720 Zandu Pharma GENUINE STOCK BROKERS PVT. LTD. S 8300 6261.72
24/12/2009 506720 Zandu Pharma MARWADI SHARES AND FINANCE LTD. S 6883 6223.15
24/12/2009 506720 Zandu Pharma OPG SECURITIES P LTD S 8291 6302.55

NSE Bulk Deals to Watch - Dec 24 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
24-DEC-2009,ATNINTER,ATN International Limited,HI-GROWTH CORPORATE SERVICES PVT. LTD.,BUY,283005,2.75,-
24-DEC-2009,AUSTRAL,Austral Coke & Projects L,DYNAMIC STOCK BROKING (I) PRIVATE LIMITED,BUY,3155614,9.23,-
24-DEC-2009,FIRSTWIN,First Winner Industries L,KARISHMA R HARAN,BUY,146395,20.95,-
24-DEC-2009,GAMMNINFRA,Gammon Infrastructure Pro,EMERGING INDIA FOCUS FUNDS,BUY,6000000,18.52,-
24-DEC-2009,GOACARBON,Goa Carbon Ltd,ANUJ KATTA,BUY,48317,122.44,-
24-DEC-2009,ITI,ITI Ltd.,AMBIT SECURITIES BROKING PVT. LTD.,BUY,101346,50.05,-
24-DEC-2009,ITI,ITI Ltd.,BABULAL SERMAL JAIN HUF,BUY,211871,50.68,-
24-DEC-2009,ITI,ITI Ltd.,BLUE PEACOCK SECURITIES PVT LT,BUY,206287,51.19,-
24-DEC-2009,ITI,ITI Ltd.,BP FINTRADE PRIVATE LIMITED,BUY,144872,50.60,-
24-DEC-2009,ITI,ITI Ltd.,CPR CAPITAL SERVICES LTD.,BUY,162832,51.26,-
24-DEC-2009,ITI,ITI Ltd.,GENUINE STOCK BROKERS PVT LTD,BUY,167201,51.53,-
24-DEC-2009,ITI,ITI Ltd.,OM INVESTMENTS,BUY,220091,51.25,-
24-DEC-2009,ITI,ITI Ltd.,PRAGYA EQUITIES PVT. LTD.,BUY,316175,48.44,-
24-DEC-2009,ITI,ITI Ltd.,SHRI VIDYASAGAR INVESTMENT ARPIT PATODI,BUY,211252,49.85,-
24-DEC-2009,ITI,ITI Ltd.,TRANSGLOBAL SECURITIES LTD.,BUY,337144,50.99,-
24-DEC-2009,KALECONSUL,Kale Consultants Limited,SETU SECURITIES LTD,BUY,77747,91.94,-
24-DEC-2009,LML,LML Ltd.,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,405116,11.78,-
24-DEC-2009,LML,LML Ltd.,TRANSGLOBAL SECURITIES LTD.,BUY,751175,12.31,-
24-DEC-2009,MSKPROJ,MSK Projects (India) Limi,ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD.,BUY,140755,106.20,-
24-DEC-2009,NILKAMAL,Nilkamal Limited,DINESH MUNJAL,BUY,85304,231.49,-
24-DEC-2009,NILKAMAL,Nilkamal Limited,OM INVESTMENTS,BUY,94354,230.74,-
24-DEC-2009,RPGLIFE,RPG Life Sciences Limited,RPG CELLULAR INVESTMENTS & HOL.P.LTD,BUY,100000,70.25,-
24-DEC-2009,SHRIRAMEPC,Shriram EPC Limited,C S HOLDINGS PRIVATE LIMITED,BUY,275000,226.00,-
24-DEC-2009,SHRIRAMEPC,Shriram EPC Limited,SMA PROFESSIONAL SERVICES PVT LTD.,BUY,225000,226.35,-
24-DEC-2009,ZANDUPHARM,Zandu Pharma works Ltd,GENUINE STOCK BROKERS PVT LTD,BUY,11454,6249.22,-
24-DEC-2009,ZANDUPHARM,Zandu Pharma works Ltd,M/S RUKHMANI TRADERS,BUY,4634,6287.25,-
24-DEC-2009,ZANDUPHARM,Zandu Pharma works Ltd,MARWADI SHARES AND FINANCE LIMITED,BUY,6880,6215.29,-
24-DEC-2009,ZANDUPHARM,Zandu Pharma works Ltd,TRANSGLOBAL SECURITIES LTD.,BUY,4433,6294.48,-
24-DEC-2009,ATNINTER,ATN International Limited,HI-GROWTH CORPORATE SERVICES PVT. LTD.,SELL,192660,2.70,-
24-DEC-2009,AUSTRAL,Austral Coke & Projects L,DYNAMIC STOCK BROKING (I) PRIVATE LIMITED,SELL,3257274,9.14,-
24-DEC-2009,AUSTRAL,Austral Coke & Projects L,RATANLALBRIJLALTAMAKHUWALA,SELL,1550000,9.08,-
24-DEC-2009,FIRSTWIN,First Winner Industries L,HARISHBHAI K PATEL,SELL,141239,20.95,-
24-DEC-2009,FIRSTWIN,First Winner Industries L,KARISHMA R HARAN,SELL,4000,21.25,-
24-DEC-2009,FSL,Firstsource Solutions Lim,ICICI LTD TRADING A/C,SELL,3298206,34.67,-
24-DEC-2009,GAMMNINFRA,Gammon Infrastructure Pro,AMIF I LTD,SELL,10550000,18.88,-
24-DEC-2009,GOACARBON,Goa Carbon Ltd,ANUJ KATTA,SELL,2317,122.43,-
24-DEC-2009,ITI,ITI Ltd.,AMBIT SECURITIES BROKING PVT. LTD.,SELL,101346,50.10,-
24-DEC-2009,ITI,ITI Ltd.,BABULAL SERMAL JAIN HUF,SELL,211871,50.57,-
24-DEC-2009,ITI,ITI Ltd.,BLUE PEACOCK SECURITIES PVT LT,SELL,206287,50.86,-
24-DEC-2009,ITI,ITI Ltd.,BP FINTRADE PRIVATE LIMITED,SELL,144872,50.31,-
24-DEC-2009,ITI,ITI Ltd.,CPR CAPITAL SERVICES LTD.,SELL,162832,51.25,-
24-DEC-2009,ITI,ITI Ltd.,GENUINE STOCK BROKERS PVT LTD,SELL,167201,51.61,-
24-DEC-2009,ITI,ITI Ltd.,OM INVESTMENTS,SELL,220091,51.32,-
24-DEC-2009,ITI,ITI Ltd.,PRAGYA EQUITIES PVT. LTD.,SELL,316175,49.03,-
24-DEC-2009,ITI,ITI Ltd.,SHRI VIDYASAGAR INVESTMENT ARPIT PATODI,SELL,211252,49.92,-
24-DEC-2009,ITI,ITI Ltd.,TRANSGLOBAL SECURITIES LTD.,SELL,337144,50.97,-
24-DEC-2009,KALECONSUL,Kale Consultants Limited,SETU SECURITIES LTD,SELL,77922,91.65,-
24-DEC-2009,LML,LML Ltd.,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,412459,11.79,-
24-DEC-2009,LML,LML Ltd.,TRANSGLOBAL SECURITIES LTD.,SELL,753541,12.34,-
24-DEC-2009,MSKPROJ,MSK Projects (India) Limi,ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD.,SELL,140755,105.10,-
24-DEC-2009,NILKAMAL,Nilkamal Limited,DINESH MUNJAL,SELL,85304,231.66,-
24-DEC-2009,NILKAMAL,Nilkamal Limited,OM INVESTMENTS,SELL,94354,230.86,-
24-DEC-2009,RPGLIFE,RPG Life Sciences Limited,OFFSHORE INDIA LTD.,SELL,100000,70.25,-
24-DEC-2009,SHRIRAMEPC,Shriram EPC Limited,NEW VERNON INDIA LTD,SELL,500000,226.01,-
24-DEC-2009,TUBEINVEST,Tube Investments Ltd,ELARA CAPITAL PLC (DR),SELL,1000000,63.86,-
24-DEC-2009,ZANDUPHARM,Zandu Pharma works Ltd,EMAMI INFRASTRUCTURE LIMITED,SELL,6678,6234.89,-
24-DEC-2009,ZANDUPHARM,Zandu Pharma works Ltd,GENUINE STOCK BROKERS PVT LTD,SELL,11454,6252.38,-
24-DEC-2009,ZANDUPHARM,Zandu Pharma works Ltd,M/S RUKHMANI TRADERS,SELL,4633,6302.85,-
24-DEC-2009,ZANDUPHARM,Zandu Pharma works Ltd,MARWADI SHARES AND FINANCE LIMITED,SELL,6880,6210.15,-
24-DEC-2009,ZANDUPHARM,Zandu Pharma works Ltd,TRANSGLOBAL SECURITIES LTD.,SELL,4433,6287.73,-

Market may remain volatile ahead of F&O expiry

Equities may remain volatile in a truncated trading week as traders roll positions in the derivative segment from December 2009 series to January 2010 series ahead of the expiry of the near-month December 2009 contracts on Thursday, 31 December 2009. Higher advance tax figures by India Inc which suggests better Q3 December 2009 results, may support the market.

The trading volumes are likely to take a hit as foreign fund managers will be on year-end vacation. Trading resumes on Tuesday, 29 December 2009, after a four-day break. The market remains closed on Monday, 28 December 2009 on account of Moharram. It again remains closed on Friday, 1 January 2010 for New Year holiday.

The latest data showed that corporate advance tax payments for the October-December 2009 quarter shot up sharply, suggesting a higher profit growth in corporate sector in the third quarter (October-December) of the current fiscal. Corporate advance tax payments for the quarter were up 44% to Rs 48,300 crore against a 3.7% decline in April-June quarter and a 14.7% increase in July-September quarter. The company-wise break-up of advance tax collection suggests a broad-based recovery with automobiles, cement, metals and consumer goods, doing well.

Trade minister Anand Sharma said on Thursday 24 December 2009 that infrastructure sector grew 5.3% in November 2009. Infrastructure sector output grew 3.5% in October 2009 from a year earlier. The sector accounts for 26.7% of the country's industrial output.

Investors will watch food price index data for the year to 19 December 2009 on Thursday, 31 December 2009, at a time when food inflation is hovering at 20%. The high food price inflation is a major worry for the policymakers as they contemplate a right approach to tame hike in inflation which seems to be more of a supply side issue. The next quarterly review of monetary policy is scheduled on 29 January 2010.

Sensex jumps nearly 4% on higher advance tax payment by India Inc higher

A 'Santa Claus' rally took the market to more than 19 months' closing high in a truncated trading week. The Santa Claus rally is traditionally a modest rally that occurs in the last five trading days of December and the first two trading days of January.

Trading for the week began on a weak note, pushing the BSE Sensex near six week closing low. Later, higher advance tax figures by India Inc which suggests better Q3 December 2009 results, triggered a rebound. The market gained in three out of four trading sessions in the week.

But volumes were low ahead of an extended weekend. The market remains closed for four days in a row from Friday, 25 December 2009 to Monday, 28 December 2009. The market remains closed on Friday, 25 December 2009 on account of Christmas. It remains closed on Monday, 28 December 2009 on account of Moharram.

The latest data showed that corporate advance tax payments for the October-December 2009 quarter shot up sharply, suggesting a higher profit growth in corporate sector in the third quarter (October-December) of the current fiscal. Corporate advance tax payments for the quarter were up 44% to Rs 48,300 crore against a 3.7% decline in April-June quarter and a 14.7% increase in July-September quarter. The company-wise break-up of advance tax collection suggests a broad-based recovery with automobiles, cement, metals and consumer goods, doing well.

Finance Minister Pranab Mukherjee said on Wednesday that containing inflation and cutting fiscal deficit are the major challenges for the government in the short-to-medium term. Mukherjee added that the government is open to altering the proposed draft direct tax code further informing that sustaining high economic growth remains a priority forthe government. The Indian economy can grow at 7.75% in the fiscal year ending March 2010, the Finance Minister said. He also told an industry conference in New Delhi that agriculture output must grow 4% for the economy to expand 9-10% annually.

The government will wait until the February 2010 budget to consider withdrawing some of the fiscal stimulus measures, the Finance Minister said. Growth outlook for the second half of FY 2010 looks better, he added.

The deputy chairman of country's Planning Commission, Montek Singh Ahluwalia, said the economy was well positioned to expand 8% in the 2010/11 fiscal year. The worst monsoon since 1972 and flooding in some parts of the country have pushed up food prices nearly 19% annually in mid-December, while the headline inflation accelerated to 4.78% in November.

Ahluwalia said annual inflation of 5-6 % would be quite reasonable and it was unlikely to cross beyond this range by fiscal year end. Ahluwalia said food supplies need to be boosted to stem price rise and the current acceleration in inflation rate was not due to loose monetary stance.

On Tuesday, the government cut the open sale price of wheat, while ministers have pledged in parliament that the government would import food items that are in short supply to boost local supplies and stem inflation.

India's food-price inflation cannot be tackled through monetary and other policy steps, while inflationary expectations will not stay long, Finance Secreatary Ashok Chawla said on Monday. Earlier on Monday, the Prime Minister's economic advisor C Rangarajan said India's central bank may have to raise the cash reserve ratio (CRR) to drain money from the banking system if prices do not decline in December.

India's central bank governor D Subbarao had recently said that monetary policy is not the right tool to fix supply problems such as food shortages, but added that if not contained soaring food prices would stoke inflationary pressures in the broader economy.

The Reserve Bank of India cut its main lending rate by 425 basis points between October 2008 and April 2010, slashed the cash reserve ratio and pumped cash in financial markets to shore markets and the economy up against the global financial crisis and slowdown.

The BSE Sensex rose 640.78 points or 3.83% to 17360.61 in the week ended 24 December 2009, its highest closing since 16 May 2008. The S&P CNX Nifty rose 190.70 points or 3.87% to 5,178.40, its highest closing since 5 May 2008.

The BSE Mid-Cap index rose 2.63% and the BSE Small-cap index rose 2.97%. Both these indices underperformed the Sensex.

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 7713.30 points or 79.95% in calendar year 2009, as on 24 December 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 9200.21 points or 112.74% as on 24 December 2009.

The key benchmark indices drifted lower in a volatile session of trade on Monday, 21 December 2009 despite higher European stocks and US index futures. The BSE Sensex fell 118.63 points or 0.71% to 16601.20, its lowest closing since 10 November 2009 on that day.

The key benchmark indices edged higher on bargain hunting on Tuesday, 22 December 2009 as global stocks rose. Higher advance tax payment by India Inc also underpinned sentiment. The BSE Sensex rose 90.80 points or 0.55% to 16692 on that day.

On Wednesday, 23 December 2009, a 'Santa Claus' rally took the BSE Sensex up by 539 points to 17,231, mainly on the back of a Rs 770-crore net buying by foreign funds. Higher advance tax payment by India Inc and firm global stocks, also underpinned sentiment. The BSE Sensex rose 539.11 points or 3.23% to 17231.11, its highest closing since 17 October 2009 on that day.

The key benchmark indices extended gains on Thursday, 24 December 2009 on firm global equities. The BSE Sensex rose 129.50 points or 0.75% to 17360.61.

India's largest realty player by market capitalization DLF gained 3.39% in the week. DLF recently announced a merger of its commercial realty arm DLF Assets (DAL) with itself, a move aimed at repaying some of DAL's debt. The new structure involves the merger of DLF subsidiary DLF Cyber City Developers with Caraf Builders and Constructions, which is the holding company of DAL. The valuation ratio approved by the board for Cyber City and Caraf is in the ratio of 60:40.

This means that DLF shareholders will have access to 60% and promoters to 40% of the merged entity. However, this will be a cashless transaction. DLF sells commercial property to DAL, which is controlled by KP Singh who owns 78% in the latter along with his son and DLF promoter Rajeev Singh. DAL buys commercial property from DLF and collects lease rentals from it. With this merger, the debt on DLF's books would be an additional Rs 2,460 crore.

India's largest thermal power generator by sales NTPC rose 11.03% . As per recent reports, the government plans to mop up around Rs 11000 crore from the disinvestment of 5% stake in the utility giant.

India's largest private sector firm by market capitalisation Reliance Industries (RIL) rose 6.4%. RIL said on Tuesday said it had made a gas discovery in one of its exploration blocks in the Krishna Godavari basin, off the country's east coast. Reliance Industries holds a 90% interest in the block, which covers an area of 3,288 square kilometres, and Hardy Exploration and Production India holds the rest. RIL's advance tax payment rose 82.89% to Rs 834 crore in Q3 December 2009 over Q3 December 2008.

IT stocks rose on some positive economic data in the US. US is the biggest market for Indian IT firms. India's largest IT exporter by sales Tata Consultancy Services rose 2.91%. The company's Q3 advance tax surged 37.21% to Rs 177 crore. India's third largest IT exporter by sales Wipro rose 2.82%.

India's second largest software services exporter Infosys Technologies rose 2.52%. The company's Q3 advance tax surged 166.7% to Rs 400 crore. 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 recently.

Auto stocks rose on strong sales in the month of November 2009 and higher advance tax payment in the third quarter. India's largest small car maker by sales Maruti Suzuki India rose 1.06%. The company's Chief General Manager, Marketing, Shashank Srivastava said Maruti will launch a new multi-purpose vehicle EECO on 7 January 2010. The vehicle, available in 5-seater and 7-seater versions, is expected to initially sell 40,000 units annually, he said. Maruti's Q3 advance tax rose 196.3% to Rs 400 crore.

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 second largest bike maker by sales Bajaj Auto rose 0.24%. 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 motorcycle maker by sales Hero Honda Motors rose 3.53%. The company's Q3 advance tax rose 44.1% to Rs 213 crore. The company's total vehicle sales jumped 32% to 3.81 lakh units in November 2009 over November 2008.

India's top truck maker by sales Tata Motors rose 6.44%. The company on Thursday reported a 62% jump in its total global sales in November 2009 to 75,775 units. The company paid Rs 100 crore as advance tax in third quarter versus Nil same quarter last year.

India's top tractor marker by sales Mahindra & Mahindra (M&M) rose 0.73%. M&M on Monday 21 December 2009 signed a joint venture agreement with Yueda Group, China's second largest tractor producer, to set up a tractor company with a combined investment of Rs 175 crore. The new company, Mahindra Yueda (Yancheng) Tractor Company (MYYTCL) will be a 51:49 joint venture, where M&M will hold the majority. Investments by both companies will be in the ratio of their stakes in the venture. The plant will be operational in the next 12-15 months.

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.

Asian markets supercharges on Santa Clause Rally

Taiex, Sydney, Nikkei, Nifty attains new high while NZX 15 edges lower

Stock markets in Asian region headed into the Christmas break on a festive note by ending Thursday, 24 December 2009 on higher note, led by gains in technology shares, while the US dollar edged further away from recent peaks after an unexpected drop in US home sales cooled optimism about the economic recovery. Resource stocks were also in focus across the region following overnight gains in commodity prices.

On Wall Street, stocks traded in a tight range on Wednesday and eked out gains by the closing bell, as surging commodity prices helped offset a lackluster new-home sales report. The Dow Jones Industrial Average added nearly 2 points to 10,466. The S&P 500 improved 3 points, or 0.2%, to 1121, while the tech-heavy Nasdaq added 17 points, or 0.8%, to 2270.

In the commodity market, crude oil rose for a third day in New York after a government report showed a larger-than-expected decline in U.S. stockpiles, signaling a recovery in fuel demand in the world’s largest energy user.

Crude oil for February delivery climbed as much as 81 cents, or 1.1 percent, to $77.48 a barrel in electronic trading on the New York Mercantile Exchange. It was at $77.33 at 3:34 p.m. Singapore time.

Brent crude oil for February settlement rose as much as 92 cents, or 1.2%, to $76.37 a barrel on the London-based ICE Futures Europe exchange, and was at $76.05 at 3:35 p.m. Singapore time. Yesterday, it rose $1.99, or 2.7%, to end the session at $75.45 a barrel, the highest close since 7 December 2009.

Gold gained the most in a month in London as a drop in the dollar may prompt investors to buy the metal as an alternative asset. Gold for immediate delivery gained $17.35, or 1.6%, to $1,104.90 an ounce at 9:24 a.m. local time, the biggest increase since 25 November 2009. Gold for February delivery in New York was 1% higher at $1,105.30 an ounce.

In the currency market, the US dollar weakens overnight as traders lighten up positions following worse than expected new homes sales report from US as well as strong rebound in crude oil.

The Japanese yen softened against the major currencies today, little changed from its levels overnight in New York. Japan’s currency was quoted at 91.71 yen per dollar.

The Hong Kong dollar was trading at HK$ 7.7564 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 strengthened today against greenback as disappointing US housing data stalled the US dollar’s recent rally. The Australian dollar was quoted at 87.97 US cents from Wednesday’s quote of 87.59 US cents.

In Wellington trade, the New Zealand dollar's dip below US70c on weaker than expected gross domestic product data was short-lived as it gained overnight against a softer US dollar and other major currencies. The kiwi crept up to US69.92c yesterday and by early today it was at US70.55c.

The South Korean won closed at 1,175 won to the U.S. dollar, up 8.6 won from Wednesday's close.

The Taiwan dollar strengthened against the greenback. The Taiwan dollar was trading higher against the US dollar at NT$ 32.2440, 0.1160 up from Wednesday’s close of NT$32.3600.

In equities, Asian markets ended mostly higher, with Japan's Nikkei closing at a fresh three-month high, lifted by gains in techs and export-related shares as the yen remained relatively weak against leading currencies.

In Japan, the shares market shot up with benchmark Nikkei registered gains for third day in row, helped by weaker yen and after better-than-expected earnings from US peers. Exporters and high-tech stocks led the rally as a weaker yen and rising semiconductor prices. Mining stocks buoyed up on surging commodity prices. Meanwhile, buying pressure was evident in insurance, transport and manufacturing sectors.

At the closing bell, the Nikkei 225 Stock Average index was at 10,536.92, increased 158.89 points or 1.53% from its previous close, while the broader Topix of all First Section issues on the Tokyo Stock Exchange grew 10.66 points, or 1.18%, to 913.72.

On the economic front, the Ministry of Finance said in survey outcome of quarterly business outlook that business sentiment among large Japanese firms deteriorated in the October-December quarter from the previous three months, amid worries over a strong yen and deflation. The quarterly business outlook survey's large company business sentiment index was minus 1.9 in the fourth quarter, down from 0.3 in the July-September period. The data also showed that large firms expect economic conditions to deteriorate. The index was at minus 3.5 for the January-March period, followed by an improvement to 0.1 for the April-June quarter.

The government plans to spend over 560 billion yen during the year starting next April to compensate rice farmers for possible losses from falls in the prices of their produce, government officials said Wednesday. The Finance Ministry agreed to include 561.8 billion yen for the program in a draft budget for fiscal 2010 as requested by the Ministry of Agriculture, Forestry and Fisheries, they said.

According to the minutes of the November policy board meeting of the central bank released Thursday, many board members said BOJ should maintain accommodative monetary conditions amid high uncertainty over the nation's economy. At the meeting, the central bank upgraded its assessment of the Japanese economy and voted to keep its policy target rate unchanged at 0.1%.

In Mainland China, the share market shot up with benchmark Shanghai Composite registered gains for second day in row, driven by materials and resource, energy, and banking stocks after oil, metal, and gold prices continues rally and as better-than-expected earnings from US peers buoyed Wall Street. Consumer related shares gained due to demand optimism over China’s economic growth and expectation of tax slash next year to boost spending. Stocks were also riding higher on window dressing efforts by institutions.

At the closing bell, the Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, advanced 79.63 points, or 2.59%, to 3,153.41, meanwhile the Shenzhen Component Index on the smaller Shenzhen Stock Exchange grew 3.84% or 492.01 points, to 13,305.31. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, added 3.07%, to 3,438.82.

In Hong Kong, the share market headed into the Christmas break on a festive note, raised in the shortened session endured gains for third day in rose on the back of firmer commodity prices and strong gains in offshore markets. Hong Kong share market will be closed 25 December 2009 for the Christmas Day holiday.

At midday break, the Hang Seng Index spurted 188.26 points, or 0.88%, to 21,517, meanwhile the Hang Seng China Enterprise, which tracks the overall performance of 43 mainland Chinese state-owned enterprises on the Hong Kong Stock Exchange, climbed 145.08 points, or 1.16%, to 12,673.74.

In Australia, the market spurted in shortened session due to Christmas eve, with broad based gains across the sector on tracking firmer commodity metal and oil prices and positive close of Wall Street and European market. Financials were firmer, led by strong gains in big four banks. Materials, industrials, and energy shot up after oil, metals and gold prices booked solid gains. The Properties were sluggish due to weakness in retail property trusts. At the closing bell, the benchmark S&P/ASX200 index spurted 51.60 points, or 1.09%, to 4,790.90, meanwhile the broader All Ordinaries surged 47.20 points, or 0.99%, to 4,803.30.

In New Zealand, equities ended in the negative terrain preceding a holiday weekend owing to Christmas. At the closing bell, the NZX50 dipped 0.14% or 4.36 points to 3205.20. The NZX 15 fell 0.20% or 11.86 points to close at 5825.57.

In South Korea, shares staged a Christmas Eve rally, closing higher helped by the overnight Wall Street gains. The benchmark Korea Composite Stock Price Index (KOSPI) posted a gain of 20.99 points to 1,682.34, closing above the 1,680-mark for the first time since 29 September 2009.

In Taiwan, stock market extended its winning streak for fifth straight session as investors cheered up after a promise from Finance Minister Lee Sush-der that the government's National Stabilization Fund will not withdraw from the market before the end of the year.

Minister of Finance Lee Sush-Der said today that Taiwan will sell more than NT$700 billion worth of debt in 2010, comprising around NT$520 billion worth of bonds and NT$200 billion worth of short-term Treasury bills. Taiwan sold NT$470 billion worth of bonds in 2009. The government has said the debt level remains satisfactory and recent stimulus measures should help achieve a fiscal balance in the long run.

The benchmark Taiex share index attained a new 1-½ year high after extending gains for the fifth flat session, ending the day higher by 62.04 points or 0.79% at 7963.54, the highest closing since 19 June 2008 when market finished the day at 8047.74.

In India, volatility ruled the roost as the key benchmark indices pared gains after a sharp surge in mid-afternoon trade. The 50-unit S&P CNX Nifty struck a 19-month high just below the 5,200 mark. The BSE 30-share Sensex was up 104.93 points or 0.61%, up 137.95 points from the day's low and off 77.65 points from the day's high. The barometer index struck a 2-month high.

The BSE 30-share Sensex was up 129.50 points or 0.75% to 17,360.61. The Sensex opened 34.36 points higher at 17,265.47. It gained 182.58 points at the day's high of 17,413.69, in mid-afternoon trade, its highest level since 20 October 2009. The Sensex declined 33.02 points at the day's low of 17,198.09 in afternoon trade. The S&P CNX Nifty was up 33.80 points or 0.66% to 5,178.40. The Nifty struck an in intra-day high of 5197.90, it’s highest since 6 May 2008.

Elsewhere, Malaysia’s Kula Lumpur Composite index finished slightly higher at 1263.94 while Singapore’s Strait Times finished the day at 2837.70, i.e. 3.86 points lower. Markets in Indonesia, Philippines were closed for holiday.

In other regional market, European shares tentatively gained on Thursday, up for the fourth straight day, with miners getting a lift from an uptick in commodity prices in an abbreviated session ahead of the Christmas break. The French CAC-40 index rose 0.1% to 3,913.45 and the U.K. FTSE 100 index advanced 0.2% to 5,384.91. The German stock market is closed on Thursday.

Sensex, Nifty attain 19-month closing high

Key benchmark indices extended gains for the third straight day on buying in index pivotals. However, volatility ruled the roost with indices seeing choppy swings in intraday trade. The 50-unit S&P CNX Nifty and the barometer index BSE Sensex, both attained their highest closing levels in 19-months. The Sensex jumped 129.50 points or 0.75%, up 162.52 points from the day's low but off 53.08 points from the day's high. Global cues were positive with European and Asian stocks logging gains.

On Wednesday, 23 December 2009, a 'Santa Claus' rally took the BSE Sensex up by 539 points to 17,231, mainly on the back of a Rs 770-crore net buying by foreign funds. The Santa Claus rally is traditionally a modest rally that occurs in the last five trading days of December and the first two trading days of January.

Intraday volatility was high as traders rolled over positions in the derivatives segment from December 2009 series to January 2010 series ahead of the expiry of the near month December 2009 contracts next week. The market edged higher in early trade on firm Asian stocks. The rally soon fizzled out as the Sensex slipped into the red. The market regained positive zone later. The market moved in a narrow range in afternoon trade. The Sensex hit a fresh intraday low in afternoon trade. The market staged a strong rebound in mid-afternoon trade. The market pared gains later

India VIX, a volatility index based on the S&P CNX Nifty index option prices, extended a recent steep slide. It declined 4.82% to 22.69. India VIX is a measure of the market's expectation of volatility over the next 30 calendar days.

India's infrastructure sector grew an annual 5.3% in November 2009, Trade Minister Anand Sharma said on Thursday. Infrastructure sector output grew 3.5% in October 2009 from a year earlier. The sector accounts for 26.7% of the country's industrial output.

Food price index rose 18.65% in the 12 months to 12 December 2009, data released by the government today, 24 December 2009, showed. The primary article index jumped 14.66% and the fuel price index rose 3.95%. The worst monsoon in nearly four decades and flooding in some parts of the country have pushed up food prices.

The market breadth was strong. Auto stocks were at the forefront of today's rally with Tata Motors striking a 52-week high. NTPC reversed early losses to settle with an around 1% gain. Metal and realty stocks also chipped in with gains.

The market remains closed for four days in a row from Friday, 25 December 2009 to Monday, 28 December 2009. The market remains closed on Friday, 25 December 2009 on account of Christmas. It remains closed on Monday, 28 December 2009 on account of Moharram.

Finance Minister Pranab Mukherjee said on Wednesday that containing inflation and cutting fiscal deficit are the major challenges for the government in the short-to-medium term. Mukherjee added that the government is open to altering the proposed draft direct tax code further informing that sustaining high economic growth remains a priority for the government. The Indian economy can grow at 7.75% in the fiscal year ending March 2010, the Finance Minister said. He also told an industry conference in New Delhi that agriculture output must grow 4% for the economy to expand 9-10% annually.

The government will wait until the February 2010 budget to consider withdrawing some of the fiscal stimulus measures, the Finance Minister said. Growth outlook for the second half of FY 2010 looks better, he added.

Meanwhile, the latest data showed that corporate advance tax payments for the October-December 2009 quarter shot up sharply, suggesting a higher profit growth in corporate sector in the third quarter (October-December) of the current fiscal. Corporate advance tax payments for the quarter were up 44% to Rs 48,300 crore against a 3.7% decline in April-June quarter and a 14.7% increase in July-September quarter. The company-wise break-up of advance tax collection suggests a broad-based recovery with automobiles, cement, metals and consumer goods, doing well.

European shares were trading firm today led by miners. France's CAC 40 index rose 0.16% while UK's FTSE 100 index rose 0.26%. The German stock market is closed on Thursday and the UK and French equity markets close early ahead of the Christmas break.

Members of the Bank of England's Monetary Policy Committee on Wednesday unanimously backed the decision earlier this month to maintain the size of the bank's asset-purchase plan at $318.7 billion, according to minutes of the committee's 9-10 December 2009 meeting released Wednesday. The panel also unanimously backed the decision to keep its key lending rate at a historic low of 0.5%.

Asian stocks rose for a third day in a row on Thursday, 24 December 2009, led by chip-related companies and commodity producers, after an index of semiconductor prices climbed to its highest level in almost six weeks and as oil and metals rallied. Key benchmark indices in Hong Kong, China, Japan, South Korea and Taiwan, were up by between 0.79% and 2.59%. However Singapore's Straits Times was down 0.14%.

Japan's Nikkei average hit its highest in three months on Thursday, lifted by high-tech exporters on a weaker yen and after better-than-expected earnings from US peers buoyed Wall Street.

Bank of Japan (BOJ) Governor Masaaki Shirakawa today said the central bank will act promptly and decisively if financial markets destabilise. Shirakawa also repeated that weak final demand was the root cause of deflation, and that the BOJ will maintain easy monetary policy to beat sustained price falls. He made the remarks at meeting of Nippon Keidanren, Japan's top business lobby.

Taiwan's industrial production index for November rose 31.46% year-on-year, growing for the third consecutive month. According to the data released by the Ministry of Economic Affairs (MOEA), the industrial production index stood at 108.78 in November, representing the highest year-on-year growth since August 1978, an increase that the MOEA attributed to the low base last year and the recovery of the global economy.

The People's Bank of China (PBOC) said Wednesday that the economy recovery is still insufficient and that correcting structural problems for the nation's growth is urgent. The nation's economic situation is generally improving, but the internal strength of the economic recovery is still not enough, and structural contradictions still exist, making a change to the path of economic development ever more urgent, it said in a statement on its Web site, citing its fourth-quarter Monetary Policy Committee. The PBOC added it will seek to keep policy flexible and will focus on decreasing economic volatility and manage the pace of loan growth.

The Xinhua news agency on Thursday quoted Commerce Minister Chen Deming as saying China's retail sales will grow more than 15% in 2009, latest sign that the economy is on a brisk recovery path.

Wall Street ended higher on Wednesday after a dull start with weaker dollar helping stocks stage a late comeback. The Dow Jones Industrial Average rose 1.51 points, or 0.01%, to 10,466.44. The Standard & Poor's 500 index rose 2.57 points, or 0.2%, to 1,120.59, while the Nasdaq Composite Index added 16.97 points, or 0.8%, to 2,269.64.

In key economic data, new home sales tumbled 11.3% in November 2009, raising the specter that previous positive signs in the industry were the result of government stimulus and not sustainable.

Trading in US index futures showed the Dow could rise 25 points at the opening bell on Thursday, 24 December 2009

US Treasury Secretary Timothy Geithner said on Wednesday that the economy was recovering, but it may be some months yet before jobs are being created instead of lost. There were dramatically fewer job losses in November than expected, when employers cut payrolls by 11,000. But the unemployment rate still is 10% and Geithner said regaining positive job creation was vital for recovery.

Geithner said the financial crisis that began in late 2007, driving the country into a deep recession, had taken a heavy toll on Americans' optimism. But Geithner insisted that there were signs of a return of confidence and said that will help get the economy on to a sounder footing.

Meanwhile, the US Department of the Treasury on Wednesday said that it has received repayments on its Troubled Asset Relief Program (TARP) investments in Wells Fargo and Citigroup in the sum of US$45 billion, bringing the total amount of repaid TARP funds to US$164 billion. The US Treasury now estimates that total bank repayments should exceed $175 billion by the end of 2010, cutting total taxpayer exposure to the banks by three-quarters.

The BSE 30-share Sensex was up 129.50 points or 0.75% to 17,360.61, its highest closing since 16 May 2008. The Sensex opened 34.36 points higher at 17,265.47. It gained 182.58 points at the day's high of 17,413.69 in mid-afternoon trade. The Sensex declined 33.02 points at the day's low of 17,198.09 in afternoon trade

The S&P CNX Nifty was up 33.80 points or 0.66 % to 5,178.40, its highest closing since 5 May 2008. The Nifty had struck an in intra-day high of 5197.90

Nifty December 2009 futures were at 5,177, at a discount of 1.40 points as compared to the spot closing

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 7713.51 points or 79.95% in calendar year 2009, as on 24 December 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 9200.21 points or 112.74% as on 24 December 2009.

Coming back to today's trade, the market breadth, indicating the overall health of the market was positive. On BSE, 1572 shares advanced as compared with 1303 that declined. A total of 86 shares remained unchanged. The breadth was much more robust earlier in the day

The BSE Mid-Cap index rose 0.72% to 6,641.14 and the BSE Small-cap index rose 0.60% to 8,120.71. Both these indices underperformed the Sensex.

The total turnover on BSE amounted to Rs 4884 crore, lower than Rs 4982 crore on Wednesday, 23 December 2009. Turnover in NSE's futures & options (F&O) segment was Rs 84,665.29 crore, much lower than Rs 117607.57 crore on Wednesday, 23 December 2009.

All the sectoral indices on BSE showed logged gains, with the BSE Teck index ending unchanged. The BSE Metal index (up 1.42%), the BSE Oil & Gas index (up 0.90%), the BSE Power index (up 0.78%), the BSE Realty index (up 0.80%), the BSE Auto index (up 1.50%), the BSE Consumer Durables index (up 1.07%), outperformed the Sensex.

The BSE Healthcare index (up 0.03%), the BSE FMCG index (up 0.66%), the BSE PSU index (up 0.37%), the BSE Bankex (up 0.50%), the BSE IT index (up 0.33%), the BSE Capital Goods index (up 0.62%), underperformed the Sensex.

Among the 30-member Sensex pack, 25 advanced while the rest declined.

Jaiprakash Associates (down 2.08%), Wipro (down 0.39%), and ICICI Bank (down 0.11%), edged lower from the Sensex pack.

Auto stocks rose on strong sales in the month of November 2009 and higher advance tax payment in the third quarter. India's top truck maker by sales Tata Motors advanced 4.16% to Rs 778 and was the top gainer from the Sensex pack. The stock struck a 52-week high of Rs 788.85 in intra-day trade today, 24 December 2009.

The company's total global sales jumped 62% to 75,775 units in November 2009 over November 2008. The company paid Rs 100 crore as advance tax in Q3 December 2009 versus nil same quarter last year.

India's top small care maker by sales Maruti Suzuki India rose 0.29% on reports the company is expecting sales to grow by 18-20% for the fiscal year March 2010. Car sales in India have picked up since January 2009 and the sector has seen double-digit growth for the past five months, the report added.

India's top tractor marker by sales Mahindra & Mahindra (M&M) rose 1.87%.

India's largest motorcycle maker by sales Hero Honda Motors gained 1.92%. The company's Q3 advance tax rose 44.1% to Rs 213 crore. The company's total vehicle sales jumped 32% to 3.81 lakh units in November 2009 over November 2008.

Escorts advanced 3.40% after the company said one of the promoter group companies revoked a small portion of shares which it had pledged earlier. The company made this announcement during trading hours today, 24 December 2009.

India's largest realty player by market capitalization DLF gained 0.89%. The stock extended recent gains after the company a merger of its commercial realty arm DLF Assets (DAL) with itself, a move aimed at repaying some of DAL's debt.

Rate sensitive realty shares gained as fears of an immediate hike in interest rates by the central bank receded after Planning Commission deputy chairman Montek Singh Ahluwalia said on Wednesday that the government is taking steps to control the inflation.

Indiabulls Real Estate (up 1.28%), HDIL (up 1.38%), Orbit Corporation (up 1.40%), Ansal Infrastructure (up 1.38%), gained.

Metal stocks saw an across the board rally after LMEX, a gauge of six metals traded on the London Metal Exchange, rose 1.83% on Wednesday.

India's largest non ferrous metal producer by sales Sterlite Industries India rose 0.70% after a 5.63% rally in its American depository receipt (ADR) on the New York Stock Exchange on Wednesday, 23 December 2009.

Hindalco Industries (up 3.10%), Sesa Goa (up 2.25%), Hindustan Zinc (up 3.68%), and Tata Steel (up 1.96%), edged higher

India's largest private sector firm by market capitalisation Reliance Industries (RIL) rose 0.67% to Rs 1073, extending Wednesday's 4.62% surge. The stock moved in a band of Rs 1050- 1083.60 in the day.

RIL said on Tuesday said it had made a gas discovery in one of its exploration blocks in the Krishna Godavari basin, off the country's east coast. Reliance Industries holds a 90% interest in the block, which covers an area of 3,288 square kilometres, and Hardy Exploration and Production India holds the rest.

India's largest thermal power generator by sales NTPC reversed early losses to settle with a gain of 0.96% to Rs 232.10. The stock had slipped to a day's low of Rs 225.40 in intra-day trade today on profit booking after surging 6.96% on Wednesday. As per recent reports, the government plans to mop up around Rs 11,000 crore from the disinvestment of 5% stake in the utility giant.

Oil exploration firms rose after crude oil prices surged on Wednesday, 23 December 2009. India's biggest state-run oil exploration firm by revenue Oil & Natural Gas Corporation (ONGC) rose 1.39%. India's second biggest oil and gas exploration firm by revenue, Oil India, gained 0.82%. Cairn India advanced 0.59%.

Rise in crude oil prices would result in higher realizations from crude sales for oil exploration firms. Light, sweet crude oil gained $2.27, or 3.05%, to $76.67 a barrel on the New York Mercantile Exchange on Wednesday, 23 December 2009 after US government inventory data showed a bigger than expected fall in stockpiles last week.

Telecom stocks declined on fears the ongoing tariff war may impact profitability. India's second largest listed cellular services provider by sales Reliance Communications (RCom) fell 0.23%. RCom today said it would charge 20 paise per minute for local and national long-distance calls within its network under a new bill plan.

Meanwhile, the company is reportedly seeking to bolster its wireless and enterprise business with an investment of more than Rs 6300 crore, under a plan branded as Edge 2010.

India's top listed cellular services provider by sales Bharti Airtel fell 1.29%. Citibank has reportedly sold its stake in Bharti Infratel, the telecom tower arm of Bharti Airtel, to JP Morgan, exiting without any gain from the $50 million investment it made over two years ago.

India's third largest listed cellular services provider by sales Idea Cellular dropped 2.51%

GTL Infrastructure rose 0.14% on reports the firm is buying Aircel's telecom tower business for Rs 4000 crore in an all-cash deal.

Consumer durables stocks gained on hopes higher sales in the ongoing festive season will boost profitability. Titan Industries (up 3.04%), Goldiam International (up 3.76%), Rajesh Exports (up 1.94%), gained.

FMCG shares were mixed and underperformed the Sensex on worries the steady rise in food inflation may crimp demand. Bata India (down 1.43%), Dabur India (down 0.40%), Nestle India (down 1.31%), and GlaxoSmithkline Consumer (down 1.16%), declined.

Hindustan Unilever (up 0.53%), ITC (up 0.57%), and Tata Tea (up 0.31%) though up underperformed the Sensex.

IT shares displayed mixed trend and underperformed the Sensex after weak US economic data on housing. US is the biggest market for Indian IT firms. India's third largest IT exporter by sales Wipro fell 0.39% and India's second largest software services exporter Infosys Technologies rose 0.30%. India's largest IT exporter by sales Tata Consultancy Services rose 0.34%.

Oracle Financial Solutions (down 0.62%), Hexaware Technologies (down 0.36%), and MphasiS (down 0.48%), slipped.

Rolta India gained 0.13% after the company said it has bought back foreign currency convertible bonds aggregating $15 million. The company made this announcement during trading hours today, 24 December 2009.

Polaris Software Lab rose 0.33% after the company secured a contract for one of its software products. The company announced the overseas order win before market hours today, 24 December 2009.

The partially convertible rupee was trading at 46.71/72 per dollar, stronger than its close of 46.87/88 on Wednesday. A firm rupee negatively impacts the operating margin of IT firms as the sector earns a lion's share of revenue from exports.

Construction shares rose on government's thrust on infrastructure. Hindustan Construction Company (up 6.91%), Nagarjuna Construction Company (up 3.41%), Valecha Engineering (up 2.27%), Gayatri Projects (up 1.54%), Unity Infraprojects (up 3.10%), and IVRCL Infrastructure (up 1.27%), advanced.

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

Tantia Constructions rose 0.13% after the company bagged an order worth Rs 19.50 crore from Eastern Railways, Kolkata for construction works.

Radico Khaitan jumped 2.96% on reports a joint venture of the company with Diageo has received Foreign Investment Promotion Board's nod for 100% foreign direct investment.

Jet Airways gained 1.66% after the Cabinet Committee on Economic Affairs (CCEA) today approved the company's proposal to raise $400 million through sale of shares to institutional investors.

Hanung Toys & Textiles jumped 5.48% after the company signed a pact with a US buyer for exporting home furnishings aggregating $60 million. The company announced the overseas order during trading hours today, 24 December 2009.

Cals Refineries clocked the highest volume of 2.26 crore shares on BSE followed by IFCI (1.33 crore shares), Suzlon Energy (1.18 crore shares), Austral Coke & Projects (1.11 crore shares) and NHPC (97.01 lakh shares).

Tata Steel clocked the highest turnover of Rs 210.14 crore on BSE followed by Tata Motors (Rs 123.65 crore), Zandu Pharmaceuticals (Rs 113.75 crore), Suzlon Energy (Rs 104.96 crore), and Reliance Industries (Rs 104.26 crore).

Daily Grey Market Premiums - Dec 24 2009

Company Name	Offer Price (Rs.)	Premium (Rs.)
D.B. Corp.	212 (For Retail Investor Rs. 210)	23 to 24 (High Rs. 28)
JSW Energy Ltd.	100 (For Retail Investor Rs. 95)	4 to 5 (Low Rs. -6/7)
Godrej Properties	490	29 to 30
MBL Infra	165 to 180	6 to 7

Markets may extend its rally

Headlines for the day

BHEL Plans locomotive JV with Siemens, Alstom - DNA Money

Pantaloon Retail to spend Rs400 crore on expansion - DNA Money

Survey shows jobs are back, direct hirings on the rise - Business Line

ICICI Bank may sell 3i Info stake to US PE firm - Business Standard

Usha Martin InfoTech okays capital restructuring - Business Standard

Events for the day

Major corporate action:

Ex-date for dividend of Salzer Electronics Ltd.

Ex-date for interim dividend of Gail India Ltd.

Weekly inflation numbers

Pre-market report

Global signals

The European stocks closed higher on Wednesday as banking stock rose. FTSE 100 closed 0.82% higher at 5372.

On Wednesday, the US markets that opened strong, slips after sales of newly builtUS Single family homes fell to their lowest level in seven months. At the end Nasdaq closed at 2270, 17 points higher.

In today's trade, all the Asian indices are trading higher except for Straits Times that is trading marginally lower by 0.12%. At the time of writing this report, SGX Nifty is trading 10 points higher.

Indian markets

Following the positive cues from the global market, domestic markets may extend its gaininig streak in todays trade.

Among the local indices, the Nifty could test the 5182-5200 range on the up side, while on the down side it could find support at 5050 and 5100. While the Sensex is likely to get support at 17000 and may face resistance at 17394.

Indian ADR's

Indian ADRs trading on the US bourses, all the ADRs able to closed higher except Satyam & Dr. Reddy. Among gainers HDFC Bank surged the most with gain of 2.96%.

Commodity cues

In the commodity space, wherein the Crude oil prices recorded significant gains, with the Nymex light crude oil for February series surged by $2.27 to settle at $76.67 a barrel.

In the metals space, Comex Gold for February series rose $7.80 to settle at $1094.50 to a troy ounce.

Daily trend of FII/MF investment in equities

On December 2, 2009, FIIs were the net Buyers of the Indian Stocks in the tune of Rs224.90 crore (with the gross purchase of Rs1410.80 crore and gross sales of Rs1185.80 crore).

While the Domestic mutual funds, on December 21, 2009, were the net seller of the stocks in the tune of Rs174.00 crore (with gross purchase of Rs415.10 crore and gross sales of Rs589.10 crore).

SGX Nifty Pre Market - Dec 24 2009

5,169.50 +12.00

Market likely to extend Wednesday's rally

The market is likely to extend Wednesday's (23 December 2009) solid surge on firm Asian stocks. The S&P CNX Nifty futures for December 2009 expiry were trading 2.5 points lower in Singapore. The government will today unveil data on some wholesale price indices for the year through 12 December 2009 viz. the food price index, the primary articles index and the fuel price index

However, trading volumes are likely to take a hit today, 24 December 2009, as the market remains closed for four days in a row from Friday, 25 December 2009 to Monday, 28 December 2009. The market remains closed on Friday on account of Christmas. It remains closed on Monday, 28 December 2009 on account of Moharram.

The government will wait until the February 2010 budget to consider withdrawing some of the fiscal stimulus measures, Finance Minister said on Wednesday. Mukherjee said inflation and fiscal consolidation are major challenges in short to medium term. Growth outlook for the second half of FY 2010 looks better, he added. The finance minister said farm output must grow 4% for the economy to expand 9-10% annually. He said industrial production has started picking up. The finance minister said the economy can grow 7.75% in the fiscal year that ends in March 2010 (FY 2010).

The finance minister said sustaining higher growth remains a priority for the government. The government is open to making changes in the draft direct tax code, Mukherjee said. The draft code has proposed various reform measures, including cutting in corporate tax rate to 25% and streamlining tax laws.

Meanwhile, the latest data showed that corporate advance tax payments for the October-December 2009 quarter shot up sharply, suggesting a higher profit growth in corporate sector in the third quarter (October-December) of the current fiscal. Corporate advance tax payments for the quarter were up 44% to Rs 48,300 crore against a 3.7% decline in April-June quarter and a 14.7% increase in July-September quarter. The company-wise break-up of advance tax collection suggests a broad-based recovery with automobiles, cement, metals and consumer goods, doing well.

Asian stocks were trading slightly higher today, 24 December 2009 on rise in commodity prices. Key benchmark indices in Hong Kong, South Korea, China, and Taiwan, were up by between 0.95% to 1.87%.

Wall street ended higher on Wednesday after a dull start with weaker dollar helping stocks stage a late comeback. The Dow Jones Industrial Average rose 1.51 points, or 0.01%, to 10,466.44. The Standard & Poor's 500 index rose 2.57 points, or 0.2%, to 1,120.59, while the Nasdaq Composite Index added 16.97 points, or 0.8%, to 2,269.64.

In key economic data, new home sales tumbled 11.3% in November 2009, raising the specter that previous positive signs in the industry were the result of government stimulus and not sustainable.

Back home, key benchmark indices spurted on Wednesday after Finance Minister Pranab Mukherjee said that the economy can grow 7.75% in the fiscal year that ends in March 2010 (FY 2010). Higher advance tax payment by India Inc and firm global stocks, also underpinned sentiment. The BSE Sensex jumped 539.11 points or 3.23% to 17231.11, its highest closing since 17 October 2009. The S&P CNX Nifty rose 158.75 points or 3.18% to 5,144.60, its highest closing since 8 December 2009.

As per provisional data on NSE, foreign funds bought shares worth Rs 769.53 crore and domestic funds bought shares worth Rs 13.02 crore on Wednesday, 24 December 2009.

Copper brightens

Prices register considerable rise on demand hopes

Copper prices rose considerably higher at Comex and LME on Wednesday, 23 December 2009. Prices rose due to demand hopes and ailing dollar.

At USA, copper futures for March delivery ended higher by 6.55 cents (2.1%) to 3.2035 a pound. Last week, copper remained almost unchanged. Copper ended November 2009 higher by 6.6%. On a year to date basis, copper has climbed 117%.

On the London Metal Exchange, copper for delivery in three months ended higher by $119 (1.7%) at $7,000 a metric ton. On 3 July, 2008, prices had touched an all time intra day high of $8,940.

The National Association of Realtors in US reported a day ago on 22 December 2009 that resale of U.S. homes increased by 7.4% to 6.54 million in November, 2009 boosting the demand for red metal.

Also, China's copper imports rose 15% last month from October.

In the currency market on Wednesday, the dollar index, which weighs the strength of dollar against the basket of six other currencies fell by almost 0.7%.

Latest reports showed that inventories tallied by the London Metal Exchange rose 0.4% today to 482,775 metric tons. Global supplies, monitored by the LME and exchanges in Shanghai and New York, have surged 75% this year.

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

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

At the MCX, copper for February delivery closed at Rs 324.4/Kg. The closing price was Rs 2.2/Kg (0.67%) lower than previous closing price. Prices rose to a high of Rs 326.25/Kg and fell to a low of Rs 322.55/Kg during the day's trading.

Among other metals traded in the LME on Wednesday, lead gained marginally to end at $2,328 a ton and zinc gained 3.2% to end at $2,510 a ton. Nickel gained 2.9% to end at $18,300. Aluminium rose 0.6% to end at $2,257 a ton.

Daily News Roundup - Dec 24 2009

ONGC issues Rs20bn bonds to refinance debt it took to acquire Imperial Energy. (ET)

ONGC has suggested roping in refineries, including those operated by private players, to share petroleum subsidy burden and make the system more equitable. (FE)

JSW Steel has abandoned its plan to raise funds through QIP after arranging a debt refinance. (ET)

UK asks Tatas to weigh rolling back its plant closure decision. (ET)

Government rejects BSNL’s demand for Rs10bn MNP rollout. (ET)

RCom to raise Rs63bn to scale up its wireless and enterprise business. (BS)

ICICI Bank may sell 3i Infotech stake to US PE firm. (BS)

Nalco to triple its production capacity in next six years. (BS)

Maruti to unveil MPV concept at Delhi Auto show. (BL)

Buoyed by high festival sales, lower interest rates and new models, Maruti has revised its sales target upward for FY10 from 10% earlier to about 20%. (FE)

GTL Infra has agreed to buy Aircel Towers for Rs40bn. (ET)

BoI to launch 8% home loan plan on January 01, 2010. (BS)

Adani Power wins 1,200MW bid in Rajasthan. (BL)

Rural Electrification Corporation's follow-on public offer to raise Rs33bn is likely to open on February 11. (FE)

Pantaloon Retail India will hive-off its value segments Big Bazaar and Food Bazaar into a separate company, Future Value Retail, from January 1. (FE)

Shriram Transport Finance has acquired assets of GE Transportation financial Services for Rs12bn. (ET)

KEC International wins Rs4bn order for transmission and dispatch from Abu Dhabi. (BL)

McLeod Russel buys Uganda’s Rwenzori Tea Investments for Rs1.18bn. (ET)

Citi Bank sells Bharti Tower stake for US$50mn to JP Morgan. (ET)

IDFC to invest Rs2.5bn in Adhunik Power and Natural Resources, a subsidiary of Adhunik Metaliks. (ET)

Madras Cements shelves plan to enter sugar business. (ET)

Coal India disinvestment will not go beyond 15%, says coal minister. (ET)

Hanung Textiles bags an order worth Rs2.8bn for home furnishing goods from US. (BS)

Zee Entertainment to merge ETC Networks with itself. (BS)

Union Bank of India has reduced interest rates on car loans by 100bps up to December 31, 2009. (BL)

Indoco Remedies eyes US, Europe markets, will sign four contract research treaties soon. (FE)

Government eyes to raise Rs325bn in next three months through its revived disinvestment program. (ET)

Government may rejig export sops by withdrawing from sectors doing well and passing on additional benefits to sectors that are still in red. (ET)

Sugar mills get time to meet export obligations as the priority now was to meet domestic demand. (ET)

Government ruled out importing rice this year as they are comfortable with stock positions even after factoring in a strategic reserve requirement. (ET)

GST will cut tax burden by 25-30%, says government. (ET)

PM may deliberate on freeing auto fuel prices. (BS)

IRDA has indicated that it would allow life insurers to hedge 5 to 10% of their exposure in equity portfolios through derivative instruments. (FE)

The steel ministry has sought an amendment in the Mines and Minerals (Development & Regulation) Act, 1957 to bring iron ore, manganese ore and chrome ore under its purview. (FE)

The mobile subscriber base in he country crossed the 500mn mark to touch 506mn in November 2009. (FE)

In November 2009, total approvals received by India Inc to raise capital by way of external commercial borrowings (ECBs) and foreign currency convertible bonds (FCCBs) rose to US$2.35bn from US$1.7bn raised in November 2008. (FE)

Finally, Christmas gets Merry on the Street!

The earth has grown old with its burden of care, But at Christmas it always is young.

While the bulls are eating Christmas cakes, the bears seem to be eating humble pie as the Nifty ended well above 5100 and is now eyeing a new high for 2009. Wednesday’s sudden surge would have taken many by surprise. We reiterate that further short covering is not ruled out ahead of the F&O expiry. Also, some long build-up may take place amid signs that the economy and India Inc. may do better.

But clearly, any rise will not be sustainable in the absence of incremental good news – local as well as global. Rich valuations and concerns on an impending reversal in stimulus steps are among the major headwinds. One should not get carried away by any sharp swings in the near term as the market remains in a consolidation phase. Today we expect a higher opening. Asian markets are mostly up. US market got a boost from technology space, though the blue chips closed flat. European shares hit 14-month high. With several holidays on the horizon, the market could yet again turn choppy and clueless.

FIIs were net buyers in the cash segment on Wednesday at Rs7.7bn on a provisional basis. The local funds were net sellers of Rs130.2mn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net buyers at Rs17.7bn. FIIs were net buyers of Rs2.25bn in the cash segment on Tuesday. Mutual Funds were net sellers of Rs1.74bn on the same day.

US stocks managed modest gains on Wednesday, closing higher for a fourth day, as strength in technology shares and commodities offset concerns about the housing market.

The Dow Jones Industrial Average closed virtually flat at 10,466.44. The S&P 500 index gained about 2 points, or 0.2%, at 1,120.59. Both indexes are within range of fresh 14-month highs. The Nasdaq Composite index rose 17 points, or 0.7%, at 2,269.64, closing at a fresh 15-month high.

Stocks slid in early trading after the government said that sales of new homes unexpectedly plunged in November. A separate report showed that personal incomes and spending both rose at a slower-than-expected pace last month. But a survey of consumer sentiment rose to a three-month high. The market regained ground in the afternoon as a rally in the oil market helped boost shares of energy producers and industrial companies.

Oil prices surged nearly 3% after government data showed the nation's supplies of crude fell last week. Gold also rose as the dollar softened against rival currencies. Bond prices were mixed.

Technology stocks continued to rally, led by eBay and Yahoo. Bank stocks also took a hit.

Market volume was light with many investors away for the Christmas holiday. The stock exchange will close early on Thursday and will remain shut on Friday.

Stocks have been in a limbo as investors look to protect gains for the year. The market has rallied broadly since March on the back of a series of stimulus measures to combat the worst recession in several decades.

For the year, the major indexes are all on track to post double-digit percentage gains. The Dow has gained over 19% so far this year, while the S&P 500 is up about 24% year to date. The Nasdaq has been the best performer of the year, climbing about 44%.

The CBOE Volatility Index, or VIX, edged higher after sliding below 20 for the first time since August 2008 on Tuesday. The so-called fear index was up 0.4% to 19.63. The gauge hit an all-time high of 77 in October 2008. But it has been declining since March as financial markets around the world have charged higher.

The Commerce Department said that new home sales posted the biggest decline since April. Sales fell 11% last month to an annual rate of 355,000 units from a downwardly revised 400,000 units in October. Economists had expected the rate to rise to 438,000.

Analysts said that the drop in sales was due largely to the expected Nov. 30 expiration of a popular $8,000 tax credit for first time homebuyers. The credit was later extended to April 30, 2010.

Another Commerce Department report showed that personal income climbed by 0.4%, or $49.7 billion, in November, after an upwardly revised 0.3% rise in October. That was the biggest gain since May, when it rose 1.5%. The figure was still below a consensus estimate of a 0.5% rise.

Spending by individuals rose 0.5% last month, or $47.9 billion, below analysts' expectations of a 0.7% hike. Personal spending was up 0.6% in October.

Separately, the Reuters/University of Michigan Surveys of Consumers said that the final December reading on the index of consumer sentiment was 72.5, the highest since September. That was up from 67.4 in November and 60.1 a year ago.

The dollar was mixed against the major international currencies: slipping against the euro and the yen but remaining flat against the pound.

Crude oil for February delivery rose $2.27 to settle at $76.67 a barrel.

Gold for February delivery rose $7.30 to settle at $1,094.00 per ounce, after sliding more than $20 in the prior two sessions.

European shares notched 14-month highs, paced by banks and miners. The pan-European Dow Jones Stoxx 600 index ended the last full trading session before Christmas with a gain of 0.3% to close at 251.90, after setting a session high of 252.95.

Wednesday's advance took the index over its previous 2009 closing high of 251.34 set on Nov. 16 and back to levels not seen since October 2008. Including a 2% gain made in the first two sessions of the week as traders count down to the Christmas break and the end of the year, the index is up by 27% year-to-date.

The UK's FTSE 100 index rose 0.8% to settle at 5,372.38 while Germany's DAX index climbed 0.2% to end at 5,957.44 and the French CAC-40 index closed 0.3% higher at 3,910.75.

With only a couple of days to go for the Christmas, how can the Santa Claus be far behind! So, the festive cheer that was missing from the markets for the past several days finally came to life today. The spurt came on strong volume and turnover, indicating that traders may have chosen to rollover F&O positions ahead of the long weekend. In that context, some part of today’s rally could be attributed to short covering.

Apparently, the short sellers got squeezed as the morning’s advance gathered pace in the afternoon. The Finance Minister reiterated that the Indian economy can grow by well over 7%. He also said that the Government will not withdraw the fiscal stimulus before the Budget. At the same time, he expressed concern on inflation and fiscal deficit. Global markets too remained firm, though India clearly outperformed rest of the world.

The BSE Sensex surged 539 points to end at 17,231 after touching a high of 17,252 and a low of 16,735. The NSE Nifty advanced 156 points to end at 5,144.

In Asia, the Nikkei in Japan was up 2%, while Australia's S&P/ASX ended higher by 0.7%. However, the Shanghai SE Composite gained 0.7% and Hang Seng index in Hong Kong was up 1.1%.

In Europe, stocks were trading in the green. The DAX in Germany was up 0.8% and the CAC 40 index in France was up 0.7%. The FTSE in the UK was up 0.8%.

Coming back to India, among the BSE sectoral indices, the Metal index was the top gainer, adding 4%, followed by the Oil & Gas index that was up 3.5% and the BSE Power index was up 3.5%. Even the BSE Mid-Cap index gained 1.5% while the BSE Small-Cap index was up 1.5%.

All the 30-components of Sensex ended in the positive terrain led by Hindalco, NTPC, Sterlite, Reliance Industries, Tata Steel and ICICI Bank.

Outside the frontline indices, the big gainers in the broader market were Gujarat NRE, Praj Industries, Century Tex, Oracle Fin and BEML. On the other hand, losers included Bajaj Holdings, Corp Bank, Piramal Health and REI Agro.

Shares of Sun Pharma advanced by 2.3% to end at Rs1538 as reports stated that the company is getting greater support, to acquire Israeli drug major Taro Pharmaceutical, from independent advisory firms like Glass, Lewis & Co. who has recommended a vote against the proposals of the Taro board at the AGM.

Shares of Shriram EPC erased gains and edged higher by 0.3% to end at Rs220. The stock had hit intra-day high of Rs229.6 after the company announced that it won order worth Rs1.56bn. The scrip opened at Rs224 recorded volumes of over 17,000 shares on BSE.

Shares of Shree Ashtavinayak surged by over 4.5% to end at Rs75 after the company announced that the board of directors will meet on December 23, 2009, to decide upon the opening date of its proposed GDR Issue upto US$72mn.

The scrip opened at Rs72.5 it touched an intra-day high of Rs75.4 and a low of Rs69.50 and recorded volumes of over 1.9mn shares on BSE.

Shares of Adhunik Metaliks shot up by over 11% to end at Rs107 after the company announced that IDFC Project Equity Fund was planning to invest Rs2.5bn in Adhunik Metaliks Ltd's power subsidiary Adhunik Power and Natural Resources Ltd. The scrip opened at Rs97.7 it touched an intra-day high of Rs113 and a low of Rs97.50 and recorded volumes of over 3mn shares on BSE.

Shares of JK Tyre surged over 9% to end at Rs163 as the company is reportedly exploring possibilities to acquire a company in the South East Asian region.

"We are looking at various opportunities, including acquisitions in the South East Asian region but nothing has been decided yet," JK Tyre & Industries Vice Chairman and MD Raghupati Singhania.

The process is at a very initial stage and the company would proceed slowly, he added.

"Right now we are not interested in any American firm as we have already made inroads into that market. We are looking at other markets," Singhania said.

Precious metals gather shine metals

Prices rise as weak economic data weighs on the dollar

Bullion metal prices went up on Wednesday, 23 December 2009. Prices rose as the dollar fell following a set of disappointing economic data.

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

On Wednesday, gold for February delivery ended at $1,094 an ounce, higher by $7.3 (0.7%) an ounce on the New York Mercantile Exchange. Earlier this week, gold fell below the $1,100 level for first time in more than one and half months. Gold prices have been hammered since December as the dollar had firmed up. Last week, gold shed 1.1%. The metal fell for three straight weeks.

Gold ended November 2009 higher by 13%. Before that, for the third quarter it ended higher by 8.7%. For the second quarter, gold ended higher by 0.5%. The metal had gained 4.3% in the first quarter of this year. On a year to date basis, gold price is higher by 25.1%.

On Wednesday, December Comex silver futures ended higher by 16 cents (0.9%) at $17.19 an ounce. Last week, silver registered marginal fall. The metal has gained 52.2% this year until date.

In the currency market on Wednesday, the dollar index, which weighs the strength of dollar against the basket of six other currencies fell by almost 0.7%.

The Commerce Department in US reported on Wednesday, 23 December, 2009 that sales of new homes fell 11.3% in November to a seasonally adjusted annual rate of 355,000 as the popular tax break for first-time homeowners was set to expire. It was the lowest sales pace since April.

Separately, the University of Michigan survey of consumers in US reported on Wednesday, 23 December, 2009 that U.S. consumer confidence rose in December, as Americans said that the outlook for the economy and employment were somewhat better. The number was weaker than expected, however, and worse than a prior reading.

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

At the MCX, gold prices for February delivery closed lower by Rs 105 (0.62%) at Rs 16,600 per ten grams. Prices rose to a high of Rs 16,714 per 10 grams and fell to a low of Rs 16,447 per 10 grams during the day's trading.

At the MCX, silver prices for March delivery closed Rs 27 (0.1%) higher at Rs 27,004/Kg. Prices opened at Rs 26,926/kg and rose to a high of Rs 27,093/Kg during the day's trading.