Third quarter results, key economic data to dictate trend

The market may see stock-specific action next week as third quarter result season kicks off. Besides corporate results, market participants will be keenly watching India's industrial production data and monthly inflation data

Government data on industrial performance for November 2009, as measured by the index of industrial production (IIP), will be unveiled on 12 January 2010. Inflation data for December 2009 is due on 14 January 2010.

Major companies announcing Q3 results include, Infosys Technologies (on 12 January), Bajaj Auto (12 January), TCS (15 January), HDFC Bank (15 January), and Axis Bank (15 January).

Other companies announcing result are, Dhampur Sugar Mills, Exide Industries, Geojit BNP Paribas Financial, Maharashtra Scooters, Jaiprakash Hydro-Power, Bajaj Finserv, Mastek, Nectar Lifesciences, Piramal Life Sciences, Indowind Energy, TCI Finance, TTK Prestige, Rural Electrification Corporation, Bajaj Holdings, Texmaco, Infomedia 18, Sintex Industries, Tata Metaliks, Jindal Saw, Rallis India, CMC, Finolex Industries, Usha Martin, Orient Paper, South Indian Bank, GRUH Finance, IDBI Bank, Shree Renuka Sugars, Indusind Bank, Development Credit Bank, State Bank of Travancore, State Bank of Bikaner and Jaipur, NIIT Technologies, UCO Bank, Escorts, Camlin, Finolex Cables, and ETC Networks.

The Reserve Bank of India (RBI) will hold the third quarter review of the monetary policy on 29 January 2010, when it is widely expected to hike the cash reserve ratio or the percentage of amount banks park with the RBI to absorb excess money from the system.

RBI Deputy Governor Subir Gokarn will hold a pre-credit policy meet with bankers. Gokarn's team is scheduled to meet bank chiefs on 14 January 2010. A meeting with primary bond market dealers is scheduled on 11 January 2010.

Chairman of Prime Minister's Economic Advisory Council C Rangarajan had recently said that raising CRR might be one of the tools to be used by the Reserve Bank of India to suck out excess liquidity in the banking system.

India's food price inflation eased slightly in late December, but experts believe a rise in fuel prices may elevate headline inflation, maintaining pressure on the central bank to tighten monetary policy.

The food price index rose 18.22% in the 12 months to 26 December 2009, lower than an annual rise of 19.83% in the previous week. Food prices are rising on supply constraints after the driest spell in nearly four decades, followed by floods in some regions that hit crops. Higher government prices paid to farmers are another factor.

The fuel index rose an annual 4.85% in late December. The index has risen about 8% since the end of March 2009, following an upswing in world crude prices amid signs of a global recovery.

Small-cap, mid-cap stocks hog limelight at the onset of the New Year

The market closed the first week of 2010 on a positive note. The key benchmark indices touched 22-month highs as investors bet on strong Q3 December 2009 results. The gains were, however, unable to sustain at higher level and weak global markets encouraged investors to lock in profits in the last two trading sessions of the week.

The selling was confined to some frontline counters, while undertone in the market was still bullish following positive comments from the Finance Minister and the Prime Minister.

Finance Minister Pranab Mukherjee said on Friday, 8 January 2010 that the economy could grow 7.75% in the current fiscal year to end-March. Earlier in the day Prime Minister Manmohan Singh said at a conference of non-resident Indians that the economy is expected to grow at 7% this year and may soon return to sustained high growth path of 9-10%. Singh pledged that his administration would work to address key constraints in the infrastructure and the agriculture sectors as these were key priorities of the Congress-led government which swept to power last year.

The BSE 30-share Sensex rose 75.48 points or 0.43% to 17,540.29 in the week ended Friday, 8 January 2010. The S&P CNX Nifty rose 43.7 points or 0.84% to 5244.75 in the week

The BSE Mid-Cap index outperformed the Sensex, rising 3.40% to 6,946. The BSE Small-cap index, too, outperformed the Sensex, rising 4.07% to 8,697.64 in the week.

Trading began at 9:00 IST from Monday, 4 January 2010 as the stock exchanges decided to extend trading hours by 55 minutes.

Indian stocks kicked off 2010 on an upbeat note on Monday, 4 January 2010, with key benchmark indices hitting multi-months high as strong auto sales, a jump in manufacturing activity in December 2009, and the latest data showing a surge in exports in November 2009, underpinned sentiment. The BSE 30-share Sensex rose 93.92 points or 0.54% to 17,558.73. The S&P CNX Nifty rose 31.15 points or 0.6% at 5232.20.

The key benchmark indices rose for the second straight day on Tuesday, 5 January 2010, tracking firm Asian stocks. Fears of an immediate hike in interest rates by the central bank receded following comments from government officials. The BSE 30-share Sensex rose 127.51 points or 0.73% to 17,686.24. The S&P CNX Nifty rose 45.70 points or 0.87% at 5277.90.

The key benchmark ended slightly higher to hit 22-month closing highs on Wednesday, 6 January 2010, as firm Asian stocks and expectations of strong Q3 December 2009 results, underpinned sentiment. The BSE 30-share Sensex rose 14.89 points or 0.08% at 17,701.13. The S&P CNX Nifty rose 3.90 points or 0.07% at 5281.80.

The key indices snapped four-day winning streak on Thursday, 7 January 2010, on profit booking in frontline stocks. Weak global markets also dampened sentiment. Auto, IT and realty stocks led the fall. The BSE 30-share Sensex fell 85.41 points or 0.48% to settle 17,615.72. The S&P CNX Nifty declined 18.70 points or 0.35% at 5263.10.

Key benchmark indices edged lower on Friday, 8 January 2010, defying gains in the global indices. The BSE 30-share Sensex fell 75.43 points or 0.43% to settle 17,540.29. The S&P CNX Nifty declined 18.35 points or 0.35% at 5244.75.

Index heavyweight Reliance Industries (RIL) rose 1.15% in the week. As per reports, the company has sweetened its offer to buy a controlling stake in bankrupt LyondellBasell Industries. Reliance's new offer has pushed its valuation of Lyondell to about $13.5 billion, up from $12 billion in an initial bid made in November 2009.

The RIL stock rose 1.51% on Thursday in a weak market on talks of more fund raising by the company through sale of treasury shares. RIL, which raised Rs 2,675 crore through the sale of treasury shares on Monday, 4 January 2010, is reportedly looking to generate a similar amount over the next few weeks by selling more stock to institutional investors.

The stake is likely to be offered at a discount of 2% to 4% as part of a strategy to beef up its cash reserve. The funds would be used for its immediate requirement in exploration and production (E&P), debt repayments and acquisition of bankrupt chemical giant LyondellBasell.

Software pivotals fell on expectations the Indian rupee may rise further this year. The Indian unit is seen picking up where it left off in 2009, rising another 4% on top of its 4.7% increase last year, its appreciation driven mainly by inbound portfolio investment. India's second largest software services exporter Infosys fell 5.40%. India's third largest software services exporter Wipro fell 1.52%. India's largest software services exporter TCS fell 6.57%.

The partially convertible rupee rose to a high of 45.55 per dollar on Thursday, 7 January 2010, its strongest level since 23 September 2008. A firm rupee adversely affects operating profit margin of IT firms as the sector derives a lion's share of revenue from exports.

Metal stocks rose on higher metal prices on the London Metal Exchange. Among non-ferrous stocks, National Aluminium Company (up 12.71%), Sterlite Industries (up 5.29%), Hindalco Industries (up 7.78%), Hindustan Zinc (up 4.14%), rose.

Tata Steel, the world's eighth-largest steelmaker rose 5.29%. The company said on 5 January 2010 sales from its Indian operations rose 73% in December 2009 to 636,000 tonnes from a year earlier. India sales for the December 2009 quarter rose 49% to 16 lakh tonnes, the company said in a statement. The Indian operations account for about a quarter of the group's total annual global capacity of 30 million tonnes, which includes unit Corus, Europe's second-largest steelmaker.

Sales of flat products, used in automobiles and consumer durables, surged 90% in December, while sales of long products, primarily used in construction, rose 56%, Tata Steel said. The company's crude steel production in India rose 21%.

Steel companies are reportedly eyeing higher prices in 2010 as stronger economic growth worldwide drives up demand for the critical building material.

Recently, Tata Steel raised prices by Rs 2,000 a tonne, while state-owned Steel Authority of India (SAIL) withdrew the Rs 750-1,500 per tonne rebate it had started offering in November 2009, following the increase in raw material cost. Other secondary steel makers such as Bhushan Steel and Uttam Galva also raised the prices of their products on 5 January 2010.

Banking stocks mostly gained. India's largest bank by net profit and branch network State Bank of India rose 0.77%. The state-run bank paid advance tax of Rs 1795 crore versus Rs 1700 crore. India's second largest private sector bank by net profit HDFC Bank rose 0.77%. But, India's largest private sector bank by net profit ICICI Bank fell 0.22%.

As per recent reports credit offtake has picked up. According to the latest Reserve Bank of India (RBI) figures, total loans, including food credit loans to Food Corporation of India for foodgrain procurement and non-food credit (all other loans) amounted to Rs 29,41,293.07 crore as on 19 December 2009. This represents a sequential growth of Rs 34,028 crore since 27 November 2009 compared to a growth of Rs 7,698 crore in the whole of November 2009.

Rate sensitive realty stocks rose after a foreign brokerage house raised its outlook on the realty sector citing a potential for a recovery in the office property market and a steady growth in key residential markets. India's largest realty player by market capitalization DLF jumped 8.04%. On 16 December 2009, the company's board approved merger of its commercial realty arm DLF Assets (DAL) with itself, a move aimed at repaying some of DAL's debt.

Among other realty stocks, Omaxe (up 11.05%), Unitech (up 5.22%), Indiabulls Real Estate (up 0.22%), rose.

Euro-zone unemployment hits 11-year high of 10%

Unemployment in the 16-nation euro zone reached 10% in November, the highest level in eleven years. According to data from Eurostat, unemployment rose to 10% to from 9.9% in October. Economists had forecast November unemployment of 9.9%. Over 15.7 million people were unemployed, and in the broader 27-nation European Union, there were 22.9 million people unemployed. Unemployment was a staggering 19.4% in Spain, which has been reeling from the burst of a house price bubble. Irish unemployment was 12.9%, French unemployment was 10%, Italian unemployment was 8.3% while German unemployment was 7.6%. Other economic data have pointed to a mixed economic picture. Manufacturing and services-sector purchasing-managers' surveys have been showing robust expansion. But retail sales dropped 1.2% in November, as spending is frequently held back in periods of high unemployment.

Maruti launches concept MPV at auto expo

Maruti Suzuki plans to create a new segment with the launch of its new 7 seater family car, MD & CEO, Shinzo Nakanishi was quoted as saying. The company showcased its new MPV Multi Purpose Vehicle at the auto show in Delhi. Nakanishi said that Maruti Suzuki hopes to maintain sales growth in calendar 2010 despite rising raw material costs, inflation and the rise of the yen against the rupee. "This is not an easy job this year with so many new cars being launched," he said, when asked if Maruti will be able to maintain its 50% market share. "We have to make preparations for this," he added. Separately, the company’s finance head Ajay Seth was quoted as saying that Maruti Suzuki will decide later this month on a proposal to expand capacity. The company has cash reserves of Rs50bn and will utilize that for the expansion, he said. Maruti has no plans to take loans, Seth said. Maruti Suzuki expects sales this fiscal year (FY10) to reach a record 1 million units, Nakanishi said in New Delhi.

New listings...DB Corp., Godrej Properties shine

DB Corp., the publisher of Dainik Bhaskar newspaper, commenced its stock market journey on a strong note. The stock started trading at Rs250 per share on the BSE as against its issue price of Rs212 per share. The closed the week at Rs253. The company's IPO was a big hit with the issue getting subscribed by nearly 40 times last month.

Godrej Properties Ltd. listed at Rs510, a premium of 16% over the issue price of Rs490 per share on the BSE. Godrej Properties, part of the Godrej group had entered the capital markets with its IPO of 9,429,750 shares at a price band of Rs490 to Rs530, totaling up to Rs5bn. The IPO of Godrej Properties received an overwhelming response as it got subscribed four times. It ended the week at Rs521.

Shares of JSW Energy, a part of the JSW Group, failed to sparkle on its debut and edged higher by 0.75% to end at Rs100.75. The company had fixed the price at Rs100 per share of Rs10 each for it’s IPO of equity shares aggregating up to Rs27bn. A discount of Rs5 to the issue price was offered to retail investors. The stock closed the week at Rs113.

ABG Shipyard gets 15% stake in Great Offshore

ABG Shipyard, which exited the fight for Great Offshore by selling its entire stake and pricing its bid lower than rival Bharati Shipyard, has ended up with a 15% stake in the company. ABG's open offer was priced at Rs 520 per share against Bharati’s Rs590. ABG wanted to buy 32%, while Bharati’s offer was meant for a 20% stake. Both offers closed on December 22. Bharati’s open offer attracted shares amounting to 27% of the company’s equity capital against its target of 20%. Bharati will thus have to reject 7%, while ABG will accept all shares tendered in its offer. ABG will have to pay Rs2.8bn for buying the 5.65 million Great Offshore shares. A senior ABG Shipyard official confirmed the development but declined to talk about what the company plans to do with its unexpected equity stake. ABG sold its 8% stake in Great Offshore a day before its open offer, sending a message that it was not interested in having management control of the company. Bharati Shipyard, which now holds 43% stake in Great Offshore, is considering another open offer to acquire management control of the company, as its recently-concluded offer was under a section of the takeover rules which does not automatically confer the status of a promoter on the acquirer.

Karnataka clears projects worth US$27.5bn

Karnataka government has cleared 38 projects totaling investments of Rs1.38 trillion (US$27.5bn) and expects to finalise the mega proposals from global steel makers ArcelorMittal and South Korea's POSCO. Karnataka Chief Minister B.S. Yeddyurappa said these projects collectively have the potential to generate employment for 92,000 people in the state. "Nearly 60% of these investments would be in north Karnataka," said Yeddyurappa after a meeting with the London-based chairman of Arcelor Mittal, L.N. Mittal. Reports state that ArcelorMittal has proposed to invest Rs300bn (US$6bn) in Karnataka while POSCO plans to pump Rs320bn (US$6.4bn), both entailing a capacity of six million tonnes a year. Yeddyurappa has invited steel tycoon Mittal to become the chief guest at the inaugural global investors' meet June 3-4 in Bangalore. Mittal firm has also proposed a 150 MW captive power plant.

The other investment proposals spelt out by the state government include: Rajashree Cement's Rs30bn cement plant in Gulbarga; Reliance Industries' plan for a gas pipeline between Chennai and Bangalore; GAIL India's gas pipeline from Dabhol to Belgaum and Bangalore; Shell's research centre with an investment of Rs13.76bn; Zuari's Rs45.65bn plant at Belgaum and cement titan Lafarge's Rs15bn investment.

Auto Ancillary, Munjal Showa

Auto Ancillary, Munjal Showa

Exports turn around in Nov...up 18% YoY

India's merchandise exports turned a corner in November after falling for 13 long months, official data released by the Government showed over the weekend. The turnaround can be attributed partly to a low base of last year and partly due to a recovery in global demand. Exports during November 2009 fell by 18.2% to US$13.2bn as against US$11.16bn during November 2008, the Commerce & Industry Ministry said on January 1. In Indian Rupee terms, exports were down 12.4%. The western financial turbulence and the subsequent global economic downturn hit the country’s exports starting October 2008.

Imports of goods and services, however, remained in the negative zone during November 2009. But the contraction was lower at 2.6% (amounting to US$22.8bn) compared to 15% in the previous month. Imports fell by 7.4% in Rupee terms over the level seen in November 2008. The trade deficit for the month under review shrunk to US$9.69bn from US$12.33bn in the same month a year earlier. Oil imports during November 2009 were up 7.3% at US$6.39bn versus US$5.95bn in the corresponding period last year. Non-oil imports during November 2009 were estimated at US$16.5bn, down 5.9% over US$17.53bn in November 2008.

Weekly Newsletter - Jan 8 2010

The end to the first trading week for 2010 was rather subdued as the bulls lost steam amid lack of fresh catalysts after a promising start to the new year. Last year's phenomenal rally also meant that investors were reluctant to take bets at the beginning of the year, especially with the earnings season just round the corner. A few concerns also remain on an impending reversal in the loose monetary policy by the end of the month. One will have to wait for a few months to know where exactly we stand as far as the economic recovery is concerned. The current strong data is partly owing to a low base of last year. Also, it has to be seen whether the dramatic pace of the recovery can be sustained going forward sans all the emergency stimulus measures.

Results too may not have a major bearing on sentiment as most good news on this front has largely been discounted. What will be of importance however is the commentary from company management on the outlook for the next few quarters. IIP data for November will be out on Jan. 12 and could provide more clues on the state of the economy. Inflation remains elevated and will continue to be a cause for concern. Markets would await monthly inflation data on Jan. 14 for indications on the RBI's policy action at its quarterly review on Jan. 29. Bond yields are hovering around 14-month highs. Top IT companies like Infosys will announce their results next week. On the whole, the market will remain choppy and rangebound.

Key Results Next Week: Dhampur Sugar, Exide, Piramal Lifesciences, Indo Wind Energy, Infosys, Mastek, Sintex, Usha Martin, Rallis India, DCB, Escorts, HDFC Bank, Renuka Sugars, Balaji Tele, IDBI Bank, IndusInd Bank, TCS, Axis Bank and UltraTech Cement.

Food inflation softens; fuel prices edge up

India’s food price inflation registered a slight decline in the fourth week of December, but continues to hold near the 11-year high, the Government said. Inflation for the Food Articles group stood at 18.22% in the week ended December 26, 2009 as against 19.83% in the previous week, the Commerce & Industry Ministry said in a statement.

The index for the Primary Articles group declined by 0.7% to 282.2 from 284.1 in the previous week. The annual rate of inflation stood at 14.39% for the week ended Dec. 26, 2009 compared to 15.49% in the previous week. It was at 11.23% during the corresponding week of the previous year.

The index for the Fuel & Power group rose by 0.4% to 346.2 from 344.9 for the previous week due to higher prices of light diesel oil (5%), naphtha (3%) and furnace oil (2%). However, the prices of bitumen (1%) declined.

Inflation for this group stood at 4.85% for the week ended Dec. 26, 2009 as against 4.45% for the week ended Dec. 19, 2009). It was at (-) 0.75% during the corresponding week of the previous year.

India's annual wholesale inflation rose to 4.78% in November compared with 1.34% rise in October and 8.48% a year ago.

Nifty January 2010 futures at premium

Turnover declines

Nifty January 2010 futures were at 5,256.25, at a premium of 11.50 points as compared to the spot closing of 5,244.75. Turnover in NSE's futures & options (F&O) segment was Rs 48,481.59 crore, lower than Rs 53,412.08 crore on Thursday, 7 January 2010.

Tata Steel January 2010 futures were at premium at 649.85 compared to the spot closing of 648.60.

Aban Offshore January 2010 futures were at discount at 1470 compared to the spot closing of 1479.

Housing Development & Infrastructure January 2010 futures were at premium at 379 compared to the spot closing of 377.10.

In the cash market, the S&P CNX Nifty fell 18.35 points or 0.35% at 5,244.75.

MBL Infrastructure to list on 11 January 2010

The IPO was priced at Rs 180 per share

Construction firm MBL Infrastructure will debut on the stock exchanges on Monday, 11 January 2010. The company had fixed the issue price at the top end of the Rs 165 to Rs 180 per share price band.

The issue price of Rs 180, discounts the the company's year ended March 2009, consolidated EPS of Rs 15.70, by a PE multiple of 11.46.

MBL's initial public offer (IPO) closed on 1 December 2009, with total bids for 95.77 lakh shares as against 48.6 lakh shares on offer. The qualified institutional buyers category was subscribed 3.34 times, non-institutional investors category was subscribed 2.64 times, retail individual investors category was subscribed 0.39 times and employee reservation category was subscribed 0.13 times.

Out of the total issue size of 57 lakh shares, 8.4 lakh shares were allotted to anchor investors, which includes 4.2 lakh shares allotted to Reliance Capital Trustee Company's Reliance Infrastructure Fund and 4.2 lakh shares were allotted to The GMO Emerging Illiquid Mauritius Fund at Rs 182 per share.

MBL Infrastructures is engaged in the business of construction and maintenance of roads and highways, industrial infrastructure projects and other civil engineering projects for various government bodies and other clients. It is also engaged in steel trading and waste management at major steel plants.

The company intends to use the issue proceeds to meet capital expenditure on procurement of construction equipments, funding working capital requirements and meeting general corporate requirements.

As per company's consolidated result, net profit rose 76.2% to Rs 27.4 crore on 74.72% rise in sales to Rs 513.64 crore in the year ended March 2009 over the year ended March 2008.

Asian Markets Finish Friday On Favorable Note

Nikkei, NZX 50, Sydney, Seoul, Shanghai edge higher while Sensex bucks the regional trend

Stock markets in Asian region finished firm on Friday 8 January 2010, with a positive close on Wall Street overnight lifting sentiment to some extent ahead of a critical U.S jobs report due later in the day. However, with gold, metals and crude prices extending losses on Friday due to a firmer dollar, a little bit of caution restricted big gains. Investors were cautiously optimistic on the jobs report as currency markets continued to flip-flop around amid speculation about possible rate hikes in the U.S.

Japan's Nikkei average led the gainers in the region and hit a fresh 15-month closing high, as a weaker yen boosted export-related stocks. After falling in early trades on worries about liquidity tightening, the Chinese market also bounced back in late trading.

On Wall Street, stocks edged up by Thursday's close, though the tech-heavy Nasdaq held flat, as investors remained reticent ahead of the government's December jobs report on Friday. The Dow Jones Industrial Average added 33 points, or 0.3%, at 10,607, and the S&P 500 gained 5 points, or 0.4%, at 1142. The Nasdaq declined by 1 point, or 0.1%, at 2300.

On the economic front, initial jobless claims came in at 434,000 for the week ended Jan. 2 -- 1,000 higher than the previous week. The four-week moving average fell for the 18th week in a row, signaling that the improvement trend remains intact and, at 450,240, it marked the lowest level since September 2008.

In the commodity market, crude oil fell for a second day in New York on concern investment in commodities may slow after China took steps to tighten bank lending.

Crude oil for February delivery fell as much as 50 cents, or 0.6%, to $82.16 a barrel in electronic trading on the New York Mercantile Exchange. It was at $82.70 at 4:03 p.m. in Singapore. Yesterday, the contract declined 52 cents to settle at $82.66, the first drop since 21 December 2009.

Brent crude oil for February settlement fell as much as 51 cents, or 0.6%, to $81 a barrel on the London-based ICE Futures Europe exchange. It was at $81.45 a barrel at 4 p.m. Singapore time. Yesterday, the contract fell 38 cents, or 0.5%, to $81.51.

Gold fell for a second day as the dollar’s strength sapped demand for the precious metal as an alternative asset. Gold for immediate delivery weakened 0.7 percent to $1,123.47 an ounce at 2:48 p.m. in Singapore. February-delivery futures fell 0.9% to $1,123.80 an ounce.

In the currency market, the US dollar’s rebound stalls as traders were awaiting today's non-farm payrolls report from US.

The Japanese yen pared early declined against US and European currencies after Hatoyama and Chief Cabinet Secretary Hirofumi Hirano said the government should not comment on foreign exchange. Hatoyama told today in that “as currency stability is desirable, rapid fluctuations are unwelcome.” He also said “the government, at least as far as I am concerned, basically has no need to comment on currencies.”

Japan’s currency was quoted at 93.27 per US dollar on Friday from yesterday’s quote at Y93.37 per dollar in New York. The yen also declined to 148.58 against the pound and 133.53 against the euro.

The Hong Kong dollar was trading at HK$ 7.7562 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 hovered near multi-month highs against a range of currencies on Friday helped by optimism over commodity prices and the local economy. At the local close, the dollar was trading at $US0.9135, down from yesterday's close of $US0.9209.

In Wellington trade, the New Zealand dollar consolidated today ahead of the release of US non-farm payroll data in the United States. The NZ dollar eased on Thursday night and was at US73.11c at 5pm today, little change from US73.23c at 8am and US73.78c at 5pm yesterday.

The South Korean won ended at 1,130.50 won against the greenback, up 4.90 won from Thursday's close, as offshore investors increased their holdings of the local currency.

The Taiwan dollar strengthened further against the greenback. The Taiwan dollar was trading higher against the US dollar at NT$ 31.8690, 0.0060 up from Thursday’s close of NT$31.8770.

In equities, most Asian markets advanced, with Japanese exporters helped by the yen's recent weakness, while Hutchison Telecommunications' shares surged in Hong Kong on an offer to take the company private.

In Japan, the share market benchmark Nikkei index hits its highest in 15-months on the last trading day of week, bolstered by exporters and chipmakers due to weakening yen and growing global demand for high-tech products. At the closing bell, the Nikkei 225 Stock Average index was at 10,798.32, spurted 116.66 points or 1.09% from Thursday’s close, while the broader Topix of all First Section issues on the Tokyo Stock Exchange added 9.44 points, or 1.01%, to 941.29. The Nikkei Average soared up 2.4% or 251.88 points in a week.

On the economy front, the Ministry of Finance said that Japan official reserve totaled $1.05 trillion by the end of December, down $24.32 billion from previous month. As of December 31, foreign currency reserves amounted to $996.55 billion, while reserves with the International Monetary Fund stood at $4.31 billion. Gold reserves totaled $27.16 billion, while SDR’s were worth $20.97 billion.

In Mainland China, late hour short covering following two days of heavy selling helped the mainland market to reverse morning losses to close above the gains line. Bargain hunting in banking and properties in the afternoon helped the market snap two days of steep sell off. Although gains were marginal as most of the investors stuck to the sidelines ahead of crucial US jobs data out later today.

At the closing bell, the Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, added 0.1%, to 3,196, while the Shenzhen Component Index on the smaller Shenzhen Stock Exchange put on 0.24% to 13,267.44. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, jumped 0.25%, to 3,480.13.

The benchmark Shanghai index tanked 2.5% or 81.14 points this week on persistent worries about tighter monetary policy measure by government to combat inflation and curb asset price speculation. Market confidences were also hurtled after the government warned state-run companies about risks of investing in stock, property, and futures markets.

In Hong Kong, share market finished the session higher after moving between the positive and negative terrain. Although gains were limited on persistent worries that Beijing will tighten further its monetary policy measure to combat inflation and curb asset price speculation. The benchmark Hang Seng Index surged 424.25 points or 1.9% this week.

At the closing bell, the Hang Seng Index bounced 27.30 points, or 0.12%, to 22,296.75, while the Hang Seng China Enterprise, which tracks the overall performance of 43 mainland Chinese state-owned enterprises on the Hong Kong Stock Exchange, tumbled 38.11 points, or 0.29%, to 13,035.09.

In Australia, the shares market pared back most of morning gains to finish the session higher on the last trading day of the week; with benchmark All Ordinaries registered first weekly gains of 1.2% in 2010. At the closing bell, the benchmark S&P/ASX200 index rose 12.70 points, or 0.26%, to 4,912.10, meanwhile the broader All Ordinaries gained 11.70 points, or 0.24%, to 4,942.20.

On the economic front, a survey by the Australian Industry Group and Housing Industry Association revealed the construction industry contracted in December at a slower rate than the previous month after another lift in house building activity. The index rose 1.7 points to 49.3 in December, below the 50-point level that separates growth from contraction. Reserve Bank of Australia said today that country’s December reserve asset rise to A$46.5 billion from A$45.9 billion in November. During December 2009, the value of official reserve assets increased by A$588 million, mainly due to transactions.

In New Zealand, benchmark index ends the first week of January 2010 in the positive terrain on Friday. The domestic share market remained the entire week in the green although it failed to keep up the impetus gained on the first day of 2010 gaining more than 1%. However, the weekend session saw a moderate gain of 0.77% with the benchmark index crossing 3300 mark level for the first time in more than 15 months.

The gains continued throughout the day with the NZX50 ending up more than 25 points or 0.77% to 3310.23 at the closing bell. The NZX 15 gained 1.10% or 66.12 points to close at 6036.63.

In South Korea, stocks closed higher as investors went bargain hunting after a day of massive sell-offs. The benchmark Korea Composite Stock Price Index (KOSPI) gained 11.81 points to 1,695.26.

In Singapore, the share market finished the session higher, in line with gains in other Asian markets. The firmness on the domestic bourses was inspired by gains in Asian and European stocks and positive US index futures ahead of the release of US non-farm payrolls data for December 2009 later in the global day. At the closing bell, the blue chip Straits Times Index was at 2,922.76, surged 9.51 points or 0.33%.

In Taiwan, stock markets in Taiwan retrieved some of its last session losses, led by exporters on the hopes that they could foreshadow better fourth quarter earning as Taiwan exports in December rose by 46.9%. The benchmark Taiex share index recouped some of its last session losses, by finishing the last trading day of the week higher by 43.48 points or 0.53% at 8280.90.

On the economic front, Taiwan's exports amounted to US$20.03 billion in December 2009, the highest level in 14 months. According to statistics released by the Ministry of Finance (MOF), the export amount marked a 46.9% increase year-on-year, which was also the steepest year-on-year rise since 1991. Taiwan's exports began to post negative growth in September 2008 amid a global economic recession and did not end the contraction streak until November 2009.

On the import front, Taiwan posted an impressive 56.2% annual growth in December, with the amount hitting a 15-month high of US$18.38 billion. The growth rate was the highest since 1991 and December also marked the second straight month in which imports registered a positive growth year-on-year. As a result, Taiwan enjoyed a trade surplus of US$1.65 billion last December, according to MOF statistics.

In Philippines, stock market closed the week on a negative note following the off-putting news on the economic façade. The benchmark index PSEi declined 0.01% or 0.60 pointes to 3,077.18, while the All Shares index declined 0.06% or 1.18 points to 1,937.06.

On the economic front, the Leading Economic Indicator (LEI), which monitors the economic performance slid further to negative 0.640 in the fourth quarter of 2009 from a revised negative 0.570 in the third quarter. However, the descent of the index continued to decelerate confirming earlier signs of the gradual recovery of the economy from the global crisis.

In India, key benchmark indices in India edged lower defying gains in Asian and European stocks and US index futures ahead of the release of US non-farm payrolls data for December 2009 later in the global day.

The BSE 30-share Sensex was down 75.43 points or 0.43% at 17,540.29. The Sensex fell 106.76 points at the day's low of 17,508.96 in late trade. It gained 42.40 points at the day's high of 17,658.12 in early trade. The S&P CNX Nifty was down 18.35 points or 0.35% at 5244.75.

Elsewhere, Malaysia’s Kula Lumpur Composite index finished slightly higher at 1292.98 while stock markets in Indonesia’s Jakarta Composite index added 27.48 points ending the day higher at 2614.37.

In other regional market, Europe stocks advanced Friday ahead of the release of key employment data on both sides of the Atlantic as investors bet that the economic recovery will continue. The U.K. FTSE 100 rose 0.3% to 5,541.28, the German DAX added 0.4% to 6,043.65 and the French CAC 40 added 0.5% to 4,045.52.

Infinite Computer Solutions (India) IPO Analysis

Focused on telecom vertical

Has seen stupendous growth over the last 18 months even when the general industry as well as the telecom vertical were not doing well

Infinite Computer Solutions (India), promoted by Sanjay Govil, is a global service provider of infrastructure management, intellectual property (IP) leveraged solutions and IT services, is significantly focused on the telecom vertical. The telecom vertical contributed 59.4% of the revenue for fiscal ended March 2009 (FY 2009) and 54.4% of the revenue in the first half of FY 2010. The other focus industry verticals include media, technology, manufacturing and healthcare.

Its services span from application management outsourcing, packaged application services, independent validation & verification, product development & support, to higher value-added offerings including, managed platform and product engineering services. In the telecom vertical, its services to original equipment manufacturers (OEMs) and service providers include product engineering and lifecycle management, operational support systems (OSS) and business support systems (BSS).

Geographically, for FY 2009, USA contributed about 91.2% (88.6% for H1 FY2010) of the revenues of the company, whereas Europe contributed about 2.1% (6.4% for H1 FY2010) of revenues, India about 5% (3.3% for H1 FY2010) and Asia Pacific contributed 1.7% (1.7% for H1 FY2010) of revenues. The company has five development centers in India at Bangalore, Hyderabad, Gurgaon and Chennai. It has a global sales network comprising 14 offices across six countries, i.e., North America, Europe, China and Asia Pacific.

As of September 2009, the company had an headcount strength of 2,648 employees including 2,385 technical and 263 support. The utilization was steady at 75%. The onsite headcount has remained stable at around 600 employees. The company had 70 clients as of September 2009, with contribution from Top 10 clients at 88.2% for FY 2009. The number of clients with US$ 20 + million revenue increased from one in FY 2006 to three in FY 2009 and the number of US$ 1 million clients increased from nine to 13 over the same period.

The public offer includes fresh issue and offer for sale by selling shareholders, which include promoter Sanjay Govil, key managerial personnel Vaibhav Bhatnagar and investor WhiteRock Investment (Mauritius).

The net proceeds of the issue would be utilized for upgrading the existing facility in Bangalore and set up a new facility in Gurgaon, acquisition, and repayment of debt. The facility is to be completed by August 2010 and the acquisition by July 2010.

Strengths

* The company has seen good growth over the last 18 months on the back of change in revenue mix. For FY 2009, the operating revenue grew 44% over FY 2008 and for H1 FY 2010, the company reported 65% of FY 2009 revenue. The company has moved away from low margin business to core higher margin business. In FY 2006, Application Development & Maintenance (ADM) contributed 80% of revenue. This has come down to 61% in FY 2009, whereas the share of remote infrastructure management services increased from 6% to 8%, testing services from 4% to 11%, and IP leverage services from 8% to 17%.

* The operating margins improved from 4.3% in FY 2007 to 11.9% in FY 2009 and further to 18% in H1 FY2010. The company, which was predominantly an onsite company, has since seen the level of offshore increase from 10% in FY 2006 to 25% in FY 2009 and further up to 32% in H1 FY 2010. The share of non-linear revenue has also increased, thereby boosting margins. The billing has changed towards fixed price and revenue sharing from time & material (T&M). T&M has decreased from 81% in FY 2006 to 51%, whereas fixed price has improved from 19% to 43% and revenue sharing to 6%.

Weaknesses

* The company derives significant portion of revenue from limited number of clients. Top client contributed 40% of revenue and the top 5 clients contributed 79.7% of the revenue for fiscal 2009.

* A significant portion of business is derived from the telecom vertical. For FY 2009, telecom contributed to 59.4% of revenue. The telecom vertical has been going through bad times and revival is expected only by mid 2010, subject to stability in the global economy. Many telecom companies, both OEMs and service providers, have cut back on their budgets and expansion plans.

* The day's sales outstanding (DSO) for the company have been increasing from 94 days in FY 2006 to 150 days in FY 2009. The number is slightly lower at 141 days for the first half of fiscal 2010. The actual DSOs for the company are about 100 days. The jump in DSOs is mainly due to an arrangement entered into with a long-standing client, who has cut down on its vendors from 100 to 12. The arrangement is back to back, wherein the company would be billing the client and the vendor who is still transitioning the work would bill the company. The revenue would include a small margin of this billing, whereas the complete impact would be seen in debtors and creditors. The management expects this arrangement to end in the next 2-3 years.

Valuation

At the issue price of Rs 155 – 165 on consolidated EPS of Rs 10.2 for FY 2009, the PE works out to 15.1 – 16.1 times. The company has seen a very robust FY 2009 and first half of FY 2010, when the general industry trend was negative to sluggish. Backed by growth in top 10 clients and change in business model, the Company reported 43% growth in operating revenues and 159% jump in net profit for FY2009, For H1FY2010, it has already done 65% of FY2009 revenues and 82% of FY2009 net profit. On annualized basis, FY 2010 consolidated EPS comes to Rs 19.1 and PE comes down to 8.1 – 8.6 times.

Down for second day

Today's major news

Reliance Industries sweetens offer for LyondellBasell to USD13.5 billion; the stock closes 0.29% lower.

BGR Energy in pact with USA for steam generators; the stock jumps 6.26%.

Kalpataru Power gets orders worth Rs250 crore; the stock ends lower by 1.64%.

Viceroy Hotels to raise Rs70 crore via QIP; the stock surges 2.65%.

Ipca Laboratories to consider stock split; the stock rises 3.42%.

Click here for more details

Post-market summary

Global signals

European indices were trading marginally higher in morning trade with the banking stocks leading the gainers chart. At the time of writing this report FTSE 100 was trading 0.05% higher.

Among major Asian indices, all the indices closed higher, except the BSE 30 that closed lower by 0.43%. SGX Nifty closed 5 points higher.

US stock futures opened marginally higher, as investors eagerly await the US non-farm payrolls data.

Indian indices

Closing lower, the Indian market bucked the trend as all other Asian markets closed with gains. Even European markets were trading higher at the time of writing this report. The Sensex that opened 12 points lower soon touched day’s high of 17658. The day’s low was 17509. At finishing line, the Sensex was at 17616, 75 points lower. Nifty closed 18 points lower at 5245.

Market sentiment

The market breadth, the number of advancing shares to declining shares, was positive. Of the total 2,965 stocks traded on the BSE, 1,724 stocks advanced, whereas 1,174 stocks declined. Sixty-seven stocks closed unchanged.

Sectoral & stock screening

Of the 13 sector indices, six closed higher while seven closed lower. Only BSE Realty (up 3.23%), BSE IT (down 1.98%)and BSE TECk (down 1.68%) were perceptibly up or down while the remaining 10 sector indices were either marginally up or down.

On stocks’ front, Hindustan Copper topped the chart surging by 14.10% followed by Rei Agro (up 8.92%). IRB Infrastructure and Bosch were up by over 7% each. Among losers, Gujarat NRE Coke slid the most by 2.99%, followed by Aditya Birla Nuvo that fell by 2.94% and Jet Airways that shed 2.69%.

Viewing volumes

IFCI, industrial finance company, saw the highest trading with over 1.48 crore shares changing hands on the BSE to be followed by India’s second biggest realty company, Unitech (1.19 crore shares), GVK Power & Infrastructure (1.19 crore shares), Ispat Industries (0.81 crore shares) and wind turbine maker Suzlon Energy (0.73 crore shares).

BSE Bulk Deals to Watch - Jan 8 2010

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
8/1/2010 520077 Amtek Auto COPTHALL MAURITIUS INVESTMENT LIMITED B 734000 177.40
8/1/2010 520077 Amtek Auto DEUTSCHE SECURITIES MAURITIUS LIMITED S 734000 177.40
8/1/2010 531519 Ankush Finstock HETAL RAJENDRA TRIVEDI S 51000 3.46
8/1/2010 505506 Axon Infotech SHIV PRAKASH ROONGTA B 10000 21.10
8/1/2010 505506 Axon Infotech ABSOLUTE LEASING & FINANCE PVT LTD S 18000 21.10
8/1/2010 531733 Bafna Spinning RAJESH MANGILAL RANKA S 200000 2.66
8/1/2010 531591 Bampsl Sec KAUSHALYA GARG B 705000 0.74
8/1/2010 531591 Bampsl Sec SUNDER DASS AGARWAL S 400000 0.74
8/1/2010 500051 BHAG GAS INDUSTRIAL FINANCE CORPORATION OF INDIA LTD S 100000 9.24
8/1/2010 500020 Bombay Dyeing SMART EQUITY BROKERS PRIVATE LIMITED B 205105 514.25
8/1/2010 500020 Bombay Dyeing OPG SECURITIES P LTD B 301190 520.62
8/1/2010 500020 Bombay Dyeing SMART EQUITY BROKERS PRIVATE LIMITED S 205105 514.75
8/1/2010 500020 Bombay Dyeing OPG SECURITIES P LTD S 301190 521.04
8/1/2010 530249 Bridge Sec HEM ARCADE LIMITED B 20000 14.20
8/1/2010 530249 Bridge Sec PRAGNESH R SHAH HUF B 19800 14.05
8/1/2010 530249 Bridge Sec LEENABEN NITINKUMAR SHETH S 40001 14.13
8/1/2010 532123 BSEL Infra CONTACT CONSULTANCY PVT LTD S 525000 16.92
8/1/2010 531337 Channel Guide ANGEL INFIN PRIVATE LIMITED B 34101 22.34
8/1/2010 531337 Channel Guide NARESHCHAND JAIN B 32371 21.95
8/1/2010 531337 Channel Guide SUNIL CAPITAL B 200042 22.76
8/1/2010 531337 Channel Guide JMP SECURITIES PVT LTD B 93648 21.48
8/1/2010 531337 Channel Guide PRASHANT PATEL B 84137 21.94
8/1/2010 531337 Channel Guide SHREE MANGALAM SALES & AGENCIES PRIVATE LIMITED S 35000 21.01
8/1/2010 531337 Channel Guide JMP SECURITIES PVT LTD S 74048 21.80
8/1/2010 531337 Channel Guide VICKY RAJESHBHAI JHAVERI S 30000 21.92
8/1/2010 531337 Channel Guide PRASHANT PATEL S 74137 22.03
8/1/2010 531337 Channel Guide JHAVERI TRADING & INVESTMART PVT LTD S 50000 22.06
8/1/2010 531337 Channel Guide ANITA RAKESHKUMAR RANKA S 30000 22.12
8/1/2010 531337 Channel Guide JHAVERI TRADING AND S 105000 22.79
8/1/2010 531337 Channel Guide PRARTHANA TARUNKUMAR BRAHMBHATT S 76000 21.15
8/1/2010 505052 Clutch Auto HITESH SHASHIKANT JHAVERI B 146929 67.40
8/1/2010 505052 Clutch Auto Naman Securities & Finance Pvt. Ltd. B 92913 67.43
8/1/2010 505052 Clutch Auto BP FINTRADE PRIVATE LIMITED B 104347 67.14
8/1/2010 505052 Clutch Auto HITESH SHASHIKANT JHAVERI S 144031 67.42
8/1/2010 505052 Clutch Auto Naman Securities & Finance Pvt. Ltd. S 105918 67.41
8/1/2010 505052 Clutch Auto BP FINTRADE PRIVATE LIMITED S 115341 67.44
8/1/2010 532941 Cords Cable HITESH SHASHIKANT JHAVERI B 182516 51.39
8/1/2010 532941 Cords Cable POOJA PARAG GANDHI B 60000 48.60
8/1/2010 532941 Cords Cable J V STOCK BROKING PRIVATE LIMITED S 57490 49.64
8/1/2010 532941 Cords Cable HITESH SHASHIKANT JHAVERI S 181857 51.39
8/1/2010 524388 Crazy Infotech RADHAKRISHNAN GEETHA S 459828 1.46
8/1/2010 508860 Diamant Invest SABOO CAPITAL AND SECURITIES PVT LTD S 59000 129.05
8/1/2010 517973 DMC Intl CENTENARY SOFTWARE PVT LTD B 54851 27.96
8/1/2010 517973 DMC Intl CENTENARY SOFTWARE PVT LTD S 39979 27.69
8/1/2010 531144 EL Forge RAMASAMY KALA B 45000 28.44
8/1/2010 517477 Elnet Tech DEEPAK BHAILAL DESAI B 20479 73.79
8/1/2010 517477 Elnet Tech MINA VAIBHAV SAWARADEKAR B 42414 74.11
8/1/2010 517477 Elnet Tech DEEPAK BHAILAL DESAI S 20479 73.85
8/1/2010 517477 Elnet Tech MINA VAIBHAV SAWARADEKAR S 42484 74.13
8/1/2010 504351 Empower Inds VINOD BHARAT SHINDE B 64638 30.97
8/1/2010 532818 Evinix Accss SHILPA STOCK BROKER PRIVATE LIMITED B 563223 5.11
8/1/2010 532818 Evinix Accss Naman Securities & Finance Pvt. Ltd. B 800981 5.18
8/1/2010 532818 Evinix Accss SHILPA STOCK BROKER PRIVATE LIMITED S 751305 5.06
8/1/2010 532818 Evinix Accss Naman Securities & Finance Pvt. Ltd. S 640183 5.10
8/1/2010 530337 Exelon Infra GANESH KUMAR DHANUKA B 30000 57.73
8/1/2010 530337 Exelon Infra KAMALA KANTA GUPTA B 80000 56.46
8/1/2010 530337 Exelon Infra I K PROJECTS PRIVATE LIMITED S 50000 55.80
8/1/2010 532768 FIEM Inds PARAM COMMODITIES PVT.LTD. S 61032 118.72
8/1/2010 532022 Filatex Fash SAGAR TEX CREATION PRIVATE LIMITED S 50000 14.88
8/1/2010 532139 G Tech Info YOGENDRA RAJ SINGHVI B 500000 4.12
8/1/2010 532139 G Tech Info MUNIR ABDULLATIF GAZI S 700000 4.12
8/1/2010 511676 GIC Housing CALEDONIA INVESTMENTS PLC S 273820 92.31
8/1/2010 532439 Goldstone Infra TRANSGLOBAL SECURITIES LTD. B 261252 39.63
8/1/2010 532439 Goldstone Infra TRANSGLOBAL SECURITIES LTD. S 261252 39.62
8/1/2010 531439 Goldstone Tech BHARAT SECURITIES PVT LTD B 109229 39.43
8/1/2010 531439 Goldstone Tech DELHI SECURITIES LTD. S 100000 39.50
8/1/2010 532951 GSS America DHANANJAY MONEY MANAGEMENT SERVICES B 78926 316.60
8/1/2010 509597 Hardcastle & Waud SUMITRA P KOTHARI B 4291 494.71
8/1/2010 511682 IFL Promoters CENTENARY SOFTWARE PVT LTD B 30001 10.62
8/1/2010 511682 IFL Promoters DMC INTERNATIONAL LTD B 16000 10.62
8/1/2010 511682 IFL Promoters CENTENARY SOFTWARE PVT LTD S 44121 10.62
8/1/2010 531398 Inwinex Pharma PRAMILA NAVIN CHHEDA B 5160 14.68
8/1/2010 523467 Jai Mata Glass GROWMORE PROPERTIES PVT LTD S 231341 2.64
8/1/2010 514034 JBF Inds WALLSTREET PVT LTD B 355595 103.34
8/1/2010 514034 JBF Inds IL & FS PRIVATE EQUITY TRUST A/C. LEVERAGE INDIA FUND S 337605 103.00
8/1/2010 511131 Kamanwala Hous NISHA SUMANJAIN B 92442 61.31
8/1/2010 511131 Kamanwala Hous HOTELS AND RESORTS LIMITED INDUS PALMS S 101039 60.18
8/1/2010 530255 KAY Power KAUSHALYA GARG B 175150 13.66
8/1/2010 530255 KAY Power BAMPSL SECURITIES LTD. B 60250 13.61
8/1/2010 530255 KAY Power KAUSHALYA GARG S 385519 12.92
8/1/2010 530255 KAY Power SUNDER DASS AGARWAL S 78200 13.61
8/1/2010 524000 Magma Fin NAMOKAR COMMERCIAL PVT LTD B 105821 183.05
8/1/2010 524000 Magma Fin NAMOKAR COMMERCIAL PVT LTD S 130000 165.07
8/1/2010 532907 Maytas Infra CLSA (MAURITIUS) LIMITED S 404988 180.27
8/1/2010 512267 Media Matrix ANIL BABULAL VEDMEHTA B 438558 5.82
8/1/2010 531834 Natura Hue Chem CHETAN DOGRA B 33300 37.90
8/1/2010 531834 Natura Hue Chem CHETAN DOGRA S 50500 37.62
8/1/2010 519560 Neha Intl FINBAY CONSULTANTS B 125000 75.00
8/1/2010 519560 Neha Intl AJMERA SHARES TRADING PVT LTD S 76037 75.10
8/1/2010 519560 Neha Intl RAJESH GOPALKRISHNA RATHI S 124963 75.28
8/1/2010 531083 Nihar Info K M REDDY B 43310 3.47
8/1/2010 531083 Nihar Info DIVYESH NIHAR BODA S 50000 3.50
8/1/2010 590057 Northgate Tech SWISS FINANCE CORPORATION (MAURITIUS) LIMITED S 200000 28.59
8/1/2010 590090 Octant Inter HANDFUL INVESTRADE PVT LTD B 210000 11.85
8/1/2010 590090 Octant Inter ABSOLUTE LEASING & FINANCE PVT LTD B 300000 11.85
8/1/2010 590090 Octant Inter SURFACE FINANCE PVT LTD S 750000 11.85
8/1/2010 511702 Parsharti Inv BHAVESH SHANTILAL TRIVEDI B 38000 37.70
8/1/2010 531467 Polypro Fibrils SEJAL DOSHI B 50000 32.03
8/1/2010 531467 Polypro Fibrils CHETAN SURENDRA CHANDARANA S 41204 32.03
8/1/2010 532735 R Systems NARESH KUMAR HUF B 72316 104.56
8/1/2010 532441 Rainbow Denim HEMENDRA CHUNILAL PAREKH B 315000 4.20
8/1/2010 532441 Rainbow Denim USHA HEMENDRA PAREKH S 319000 4.20
8/1/2010 500356 Rama Newsprint T K DUGAR AND CO (PROP: TULSI KUMAR DUG B 350000 46.42
8/1/2010 502587 Rama Pulp MAHIPAT IWDARMAL MEHTA B 100077 36.78
8/1/2010 502587 Rama Pulp SONALI MANOJ LOHAR B 61700 36.82
8/1/2010 502587 Rama Pulp SOALLI JAINUDDIN SHAIKH B 48620 36.98
8/1/2010 502587 Rama Pulp MAHIPAT IWDARMAL MEHTA S 143852 36.82
8/1/2010 502587 Rama Pulp SONALI MANOJ LOHAR S 61700 36.80
8/1/2010 502587 Rama Pulp SOALLI JAINUDDIN SHAIKH S 48620 37.01
8/1/2010 502587 Rama Pulp SUBHASH PHOOTARMAL RATHOD S 50000 36.95
8/1/2010 590077 Ranklin Sol EMINENCE CAPITAL SERVICES S 26345 52.83
8/1/2010 533083 RISHABHDEV MAHESH MEETAL B 460319 17.30
8/1/2010 533083 RISHABHDEV ARIHANT SEC & INVESTMENT B 205072 17.45
8/1/2010 533083 RISHABHDEV SARSWATI VINCOM LTD B 219671 17.25
8/1/2010 533083 RISHABHDEV MAHESH MEETAL S 448638 17.10
8/1/2010 533083 RISHABHDEV CREDO INDIA THEMATIC FUND LIMITED S 700000 17.35
8/1/2010 533083 RISHABHDEV ARIHANT SEC & INVESTMENT S 205072 17.24
8/1/2010 533083 RISHABHDEV KUVERA FUND LTD S 700000 17.25
8/1/2010 512289 Shirpur Gold C S ORBIT INVESTMENTS LTD S 134500 195.69
8/1/2010 526479 SKY Inds V R M SHARE BROKING PRIVATE LIMITED S 30000 84.93
8/1/2010 590072 Sundaram Brake A.K.G. STOCK BROKERS PVT. LTD. B 24021 255.66
8/1/2010 590072 Sundaram Brake OPG SECURITIES P LTD B 56350 256.79
8/1/2010 590072 Sundaram Brake A.K.G. STOCK BROKERS PVT. LTD. S 24021 256.28
8/1/2010 590072 Sundaram Brake OPG SECURITIES P LTD S 56350 257.26
8/1/2010 530533 Terai Tea ALMONDZ CAPITAL & MANAGEMENT B 40000 52.00
8/1/2010 530533 Terai Tea CENTRAL BANK OF INDIA S 40000 52.00
8/1/2010 533121 THINKSOFT A.K.G. STOCK BROKERS PVT. LTD. B 95581 357.93
8/1/2010 533121 THINKSOFT A.K.G. STOCK BROKERS PVT. LTD. S 95581 357.57
8/1/2010 504973 Tube Invest ELARA CAPITAL PLC (DR) S 1695290 70.00
8/1/2010 509992 UB Engineering Chakan Investment Pvt. Ltd. S 88310 128.70
8/1/2010 500464 UCAL Fuel OPG SECURITIES P LTD B 131781 107.59
8/1/2010 500464 UCAL Fuel OPG SECURITIES P LTD S 131781 107.54
8/1/2010 521188 United Textiles VIJAY PRABHULAL BHORAWAT B 16800 4.48
8/1/2010 521188 United Textiles RAJIV GUPTA S 18000 4.48
8/1/2010 531249 Well Pack Papers SHOBHNABEN R PARMAR B 22508 386.61
8/1/2010 531249 Well Pack Papers PANDYA YAMINIBEN M B 27322 386.31
8/1/2010 531249 Well Pack Papers LAXMAN DHIRUBHAI PARMAR B 50927 388.17
8/1/2010 531249 Well Pack Papers SHOBHNABEN R PARMAR S 25486 387.28
8/1/2010 531249 Well Pack Papers LAXMAN DHIRUBHAI PARMAR S 51086 387.69
8/1/2010 501391 WH Brady ASHOK KUMAR BILGAIYAN B 18875 98.44
8/1/2010 501391 WH Brady RAHUL SHARMA B 13914 97.89
8/1/2010 501391 WH Brady ASHOK KUMAR BILGAIYAN S 18875 99.10
8/1/2010 501391 WH Brady RAHUL SHARMA S 13914 98.15
8/1/2010 530091 Zyden Gentec SAURABHKUMAR RASIKLAL GANDHI B 300000 2.91
8/1/2010 530091 Zyden Gentec DEEPAK REAL ESTATEDEVE. I. P.L S 450000 2.91
* B - Buy, S - Sell

NSE Bulk Deals to Watch - Jan 8 2010

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
08-Jan-10,BOMDYEING,Bombay Dyeing & Mfg Co.,HARBUX SINGH SIDHU,BUY,244969,518.58,-
08-Jan-10,BOMDYEING,Bombay Dyeing & Mfg Co.,KALASH SHARES & SECURITIES PRIVATE LIMITED,BUY,197709,514.67,-
08-Jan-10,BOMDYEING,Bombay Dyeing & Mfg Co.,MANIPUT INVESTMENTS PVT. LTD.,BUY,227204,516.79,-
08-Jan-10,CLUTCHAUTO,Clutch Auto Limited,BHAVIN Y MEHTA,BUY,129330,67.22,-
08-Jan-10,CLUTCHAUTO,Clutch Auto Limited,BP FINTRADE PRIVATE LIMITED,BUY,116842,67.39,-
08-Jan-10,CLUTCHAUTO,Clutch Auto Limited,SETU SECURITIES LTD,BUY,94703,67.29,-
08-Jan-10,CLUTCHAUTO,Clutch Auto Limited,VIJIT ASSET MANAGEMENT PRIVATE LIMITED,BUY,100840,67.46,-
08-Jan-10,CORDSCABLE,Cords Cable Industries Li,AJAY ASSET MANAGEMENT PRIVATE LIMITED,BUY,59066,51.59,-
08-Jan-10,CORDSCABLE,Cords Cable Industries Li,ANGEL INFIN PRIVATE LIMITED,BUY,93815,51.23,-
08-Jan-10,CORDSCABLE,Cords Cable Industries Li,BP FINTRADE PRIVATE LIMITED,BUY,136385,51.34,-
08-Jan-10,CORDSCABLE,Cords Cable Industries Li,POOJA P GANDHI,BUY,65000,48.79,-
08-Jan-10,CORDSCABLE,Cords Cable Industries Li,RAHUL DOSHI,BUY,131065,51.24,-
08-Jan-10,EVINIX,Evinix Accessories Limite,HI-GROWTH CORPORATE SERVICES PVT. LTD.,BUY,649643,4.9,-
08-Jan-10,EVINIX,Evinix Accessories Limite,SHILPA STOCK BROKER PRIVATE LIMITED,BUY,664988,5.04,-
08-Jan-10,GOLDINFRA,Goldstone Infratech Ltd.,TRANSGLOBAL SECURITIES LTD.,BUY,249892,39.81,-
08-Jan-10,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,9468783,22.93,-
08-Jan-10,KINETICMOT,Kinetic Motor Company Ltd,VIJIT SHARES AND COMMODITIES PVT.LTD.,BUY,113061,29.6,-
08-Jan-10,MAGMA,Magma Fincorp Limited,NAMOKAR COMMERCIAL PVT LTD.,BUY,200000,184,-
08-Jan-10,RAMANEWS,Rama Newsprint and Papers,T K DUGAR AND CO (PROP: TULSI KUMAR DUG,BUY,394169,46.72,-
08-Jan-10,RKFORGE,Ramkrishna Forgings Ltd,AKG FINVEST LTD,BUY,102300,114.41,-
08-Jan-10,SELAN,Selan Exploration Technol,WASATCH ADVISORS INC,BUY,155000,384.18,-
08-Jan-10,SELMCL,SEL Manufacturing Company,NIKON FINLEASE PVT. LTD,BUY,101800,88.54,-
08-Jan-10,SOLEMS,Solectron EMS India Limit,Bharat P. Shah,BUY,128455,52.98,-
08-Jan-10,SUNDRMBRAK,Sundaram Brake Lin Ltd.,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,26690,255.88,-
08-Jan-10,THINKSOFT,Thinksoft Global Ser Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,104858,357.73,-
08-Jan-10,THINKSOFT,Thinksoft Global Ser Ltd,REGENT FINANCE CORPORATION PVT. LTD.,BUY,77618,355.51,-
08-Jan-10,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,1414973,20.38,-
08-Jan-10,ZENSARTECH,Zensar Technologies -Depo,RPG CELLULAR INVESTMENTS & HOL.P.LTD,BUY,430000,331.41,-
08-Jan-10,ALPHAGEO,Alphageo (India) Limited,WEXFORD SPECTRUM INVESTORS MAURITIUS LTD,SELL,26515,243.46,-
08-Jan-10,BOMDYEING,Bombay Dyeing & Mfg Co.,HARBUX SINGH SIDHU,SELL,244969,518.42,-
08-Jan-10,BOMDYEING,Bombay Dyeing & Mfg Co.,KALASH SHARES & SECURITIES PRIVATE LIMITED,SELL,197709,514.61,-
08-Jan-10,BOMDYEING,Bombay Dyeing & Mfg Co.,MANIPUT INVESTMENTS PVT. LTD.,SELL,227554,517.14,-
08-Jan-10,BSELINFRA,BSEL Infrastructure Realt,CONTACT CONSULTANCY SERVICES PVT LTD,SELL,689018,16.93,-
08-Jan-10,CLUTCHAUTO,Clutch Auto Limited,BHAVIN Y MEHTA,SELL,129330,67.5,-
08-Jan-10,CLUTCHAUTO,Clutch Auto Limited,BP FINTRADE PRIVATE LIMITED,SELL,119255,67.37,-
08-Jan-10,CLUTCHAUTO,Clutch Auto Limited,SETU SECURITIES LTD,SELL,94707,67.44,-
08-Jan-10,CLUTCHAUTO,Clutch Auto Limited,VIJIT ASSET MANAGEMENT PRIVATE LIMITED,SELL,109830,67.5,-
08-Jan-10,CORDSCABLE,Cords Cable Industries Li,AJAY ASSET MANAGEMENT PRIVATE LIMITED,SELL,54066,51.75,-
08-Jan-10,CORDSCABLE,Cords Cable Industries Li,ANGEL INFIN PRIVATE LIMITED,SELL,80317,50.98,-
08-Jan-10,CORDSCABLE,Cords Cable Industries Li,BP FINTRADE PRIVATE LIMITED,SELL,117818,51.09,-
08-Jan-10,CORDSCABLE,Cords Cable Industries Li,RAHUL DOSHI,SELL,131075,51.72,-
08-Jan-10,DHANUS,Dhanus Technologies Limit,UCO BANK,SELL,520215,32.22,-
08-Jan-10,EVINIX,Evinix Accessories Limite,HI-GROWTH CORPORATE SERVICES PVT. LTD.,SELL,649643,4.93,-
08-Jan-10,EVINIX,Evinix Accessories Limite,SHILPA STOCK BROKER PRIVATE LIMITED,SELL,561137,5.11,-
08-Jan-10,GICHSGFIN,Gic Housing Finance Ltd,CALEDONIA INVESTMENTS PLC,SELL,347393,92.42,-
08-Jan-10,GOLDINFRA,Goldstone Infratech Ltd.,TRANSGLOBAL SECURITIES LTD.,SELL,247892,39.8,-
08-Jan-10,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,9405504,22.92,-
08-Jan-10,KINETICMOT,Kinetic Motor Company Ltd,VIJIT SHARES AND COMMODITIES PVT.LTD.,SELL,68061,29.35,-
08-Jan-10,MAGMA,Magma Fincorp Limited,NAMOKAR COMMERCIAL PVT LTD.,SELL,200000,165.04,-
08-Jan-10,MAYTASINFR,Maytas Infra Limited,CLSA (MAURITIUS) LIMITED,SELL,743636,180.39,-
08-Jan-10,NORTHGATE,Northgate Technologies Li,SWISS FINANCE CORPORATION (MAURITIUS) LIMITED,SELL,250000,28.72,-
08-Jan-10,RKFORGE,Ramkrishna Forgings Ltd,UNO METALS LTD,SELL,102300,114.41,-
08-Jan-10,RSYSTEMS,R Systems International L,VCUSTOMER SERVICES INDIA PVT LTD,SELL,68477,99.63,-
08-Jan-10,SAKHTISUG,Sakthi Sugars Ltd.,DEUTSCHE BANK AG LONDON,SELL,283000,104.28,-
08-Jan-10,SELMCL,SEL Manufacturing Company,NIKON FINLEASE PVT. LTD,SELL,101800,88.69,-
08-Jan-10,SOLEMS,Solectron EMS India Limit,FIDELITY INVESTMETS,SELL,48000,53,-
08-Jan-10,SOLEMS,Solectron EMS India Limit,NIKUNJ AMRUTLAL DARJI,SELL,43000,53,-
08-Jan-10,SUNDRMBRAK,Sundaram Brake Lin Ltd.,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,26690,255.85,-
08-Jan-10,THINKSOFT,Thinksoft Global Ser Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,104858,358.4,-
08-Jan-10,THINKSOFT,Thinksoft Global Ser Ltd,REGENT FINANCE CORPORATION PVT. LTD.,SELL,77618,359.94,-
08-Jan-10,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,1433866,20.39,-
08-Jan-10,ZENSARTECH,Zensar Technologies -Depo,PEDRIANO INVESTMENTS LTD,SELL,430000,331.41,-

Market slips for the second straight day

The key benchmark indices in India edged lower extending losses for the second straight day, defying gains in global stocks and US index futures ahead of the release of the US non-farm payrolls data for December 2009 later in the global day. IT pivotals extended recent losses on concerns arising form the rupee's recent strength against the dollar. Metal and banking stocks also fell. But, realty stocks rose.

The BSE 30-share Sensex fell 75.43 points or 0.43%, up close to 30 points from the day's low and off 115 points from the day's high. Index heavyweight Reliance Industries edged lower in volatile trade. There was plenty of action in the side market indicated by strong market breadth. The Sensex had lost 85.41 points or 0.48% to settle 17,615.72 on Thursday, 7 January 2010.

The market moved into positive zone in early trade after opening lower, tracking gains in Asian stocks. The market lost ground later with the Sensex hitting a fresh intraday low in morning trade. The market staged a rebound shortly. It later moved between positive and negative zone. The market cut losses soon after hitting a fresh intraday low in early afternoon trade. The market moved in a narrow range in afternoon trade. The market weakened later with the Sensex hitting a fresh intraday low in late trade.

A gauge of economic activity in emerging markets showed the pace of recovery there is beginning to lose steam, although growth remains on an upward trajectory. HSBC's Emerging Markets Index climbed to 56.1 in the December-ended quarter from 55.3 in the third quarter, with measures for manufacturing and services output in the period expanding at their fastest pace in eight quarters. HSBC chief economist Stephen King said the data shows that emerging markets economies are leading a broad-based global upturn

Still, HSBC said the pace of the recovery appeared to be easing, as the gain in the index was "considerably weaker" than the 4.6-point advance registered by third quarter. The index is calculated on 19 manufacturing- and service-sector purchasing manager's indexes across 14 countries.

The Bank of England's monetary policy committee kept its bond-purchasing plan and interest rates unchanged on Thursday, as business surveys and official data indicated the UK economy returned to growth at the end of 2009. But the signs of recovery are fragile, and the prospects for expansion are weighed down by the large debts of the public sector and households. Huge amounts of spare capacity in the economy suggest inflationary pressures also will remain muted. That means BOE policy makers are likely to consider in February whether to extend their £200 billion (about $320 billion) quantitative easing bond-buying program, in light of their new quarterly forecasts for inflation and output.

Closer home, Finance Minister Pranab Mukherjee said on Friday that the economy could grow 7.75 % in the current fiscal year to end-March. Earlier in the day Prime Minister Manmohan Singh said at a conference of non-resident Indians that the economy is expected to grow at 7% this year and may soon return to sustained high growth path of 9-10%. Singh pledged that his administration would work to address key constraints in the infrastructure and the agriculture sectors as these were key priorities of the Congress-led government which swept to power last year.

The food price inflation eased slightly in late December 2009, data released by the government during trading hours on Thursday, 7 January 2010, showed. The food price index rose 18.22% in the 12 months to 26 December 2009, lower than an annual rise of 19.83% in the previous week.

The Reserve Bank of India (RBI) has said interest rate policy cannot address inflation caused by supply problems, but has also said it is worried about a spillover to other prices. Senior government officials have said it is too early to raise interest rates. C. Rangarajan, the prime minister's economic adviser, said on Tuesday some liquidity tightening might be needed to moderate price expectations

Last week, RBI Deputy Governor Shyamala Gopinath said the focus of monetary policy was shifting to managing recovery and containing inflation from fostering growth after the global downturn. Some policymakers have said that food prices may drop in coming months and ease the pressure on the central bank to hike rates.

The December exports data should be "encouraging", Trade Minister Anand Sharma said on Thursday. India's exports rose an annual 18.2% in November 2009 to $13.2 billion, the first rise after 13 straight months of decline.

The Government may reportedly introduce a legislation in the budget session of Parliament to make necessary constitutional amendments and facilitate the launch of the Goods and Services Tax (GST) although the rollout of this comprehensive indirect tax reform from the scheduled date of 1 April 2010, seems unlikely.

Meanwhile, the government will reportedly allow companies to adjust the fringe benefit tax (FBT) paid by them against the advance tax due in the March 2010 quarter, reducing the hazard of claiming a refund and slightly improving profits at a time of rising costs.

European shares were higher on Friday, with banks the major gainers while investors awaited the release of the US non-farm payrolls data in a hope it will give signs the job market is improving. The key benchmark indices in France, Germany and UK were up by between 0.03% to 0.57%.

Unemployment in the 16-nation euro zone rose to 10% in November, up from 9.9% in October. That's the highest rate since August 1998, and in Spain, unemployment was 19.4%, Eurostat said.

Asian stocks rose on Friday after gains in US retail sales boosted confidence in the global economic recovery. Key benchmark indices in Hong Kong, Singapore, Indonesia and Taiwan rose by between 0.12% to 1.06%.

Japan's Nikkei stock average rose 1.09%, a 15-month high, with chip-related shares climbing on growing global demand for high-tech shares, but gains were capped by profit-taking ahead of key US jobs data.

South Korea's Kospi index rose 0.70% after South Korea's central bank on Friday kept its interest rate unchanged at a record-low 2% for an 11th month amid a growing conflict with a government opposed to early monetary tightening.

Chinese shares turned positive, rising 0.10%. China shares had lost nearly 2% on Thursday after a surprise move by China's central bank to raise the interest rate on its three-month bills. The move sparked fears that policymakers were getting ready to use more forceful measures to cool growth and fight inflation

Trading in US index futures indicated the Dow could gain 14 points at opening bell on Friday, 8 January 2010.

US stocks struggled on Thursday as the dollar rose and investors remained skittish ahead of the jobs report. The Dow Jones Industrial Average rose 33.18 points, or 0.3%, to 10,606.86. The S&P 500 index added 4.55 points, or 0.4%, to 1,141.69. The Nasdaq was down 1.04 points, or 0.1%, to 2,300.05.

In economic news, the labor department reported jobless claims last week rose by just 1,000 to 434,000, which is less than expected. Continuing claims came in at 4.80 million, lesser than expectations of 4.98 million.

Senior US Federal Reserve officials placed different emphasis on inflation risks on Thursday, with one warning failure to withdraw support policies soon enough could could trigger inflation while another played down such risks. Kansas City Federal Reserve Bank President Thomas Hoenig said the Fed should act sooner rather than later to contain longer-term inflation pressures and avoid sowing the seeds of a future crisis.

In Shanghai, China, meanwhile, St. Louis Fed chief James Bullard said the US jobless rate will start to fall soon and played down price pressures facing the United States in the near term, saying that the Fed's moves to pump liquidity into the economy were not an inflationary concern. Both officials have votes on the Fed's interest-rate setting panel.

Closer home, the BSE 30-share Sensex fell 75.43 points or 0.43% at 17,540.29. The Sensex fell 106.76 points at the day's low of 17,508.96 in late trade. It gained 42.40 points at the day's high of 17,658.12 in early trade.

The S&P CNX Nifty fell 18.35 points or 0.35% at 5244.75. Nifty January 2010 futures were at 5,256.25, at a premium of 11.50 points as compared to the spot closing of 5,244.75. Turnover in NSE's futures & options (F&O) segment was Rs 48,481.59 crore, lower than Rs 53,412.08 crore on Thursday, 7 January 2010.

The market breadth, indicating the overall health of the market was strong. On BSE, 1711 shares advanced as compared with 1174 that declined. A total of 72 shares remained unchanged.

Among the 30-member Sensex pack, 15 fell while rest rose.

The BSE Mid-Cap index rose 0.02% and the BSE Small-Cap index rose 0.44%. Both the indices outperformed the Sensex.

Sectoral indices on BSE witnessed a mixed trend. The BSE Realty index (up 3.23%), the BSE Capital Goods index (up 0.59%), the BSE Power index (up 0.57%), the BSE Health Care index (up 0.38%), the BSE FMCG Index (up 0.04%), the BSE Auto index (down 0.07%), the BSE Oil & Gas index (down 0.14%), outperformed the Sensex.

Banking sector index Bankex shed 0.43%, matching the decline in Sensex. The BSE Consumer Durables index (down 0.65%), the BSE Metal index (down 0.73%), the BSE IT index (down 1.98%), underperformed the Sensex.

BSE clocked a turnover of Rs 6265 crore, higher than Rs 6189.15 crroe on Thursday, 7 January 2010.

Index heavyweight Reliance Industries (RIL) fell 0.29% to Rs 1102. The stock was volatile. It hit a high of Rs 1115 and a low of Rs 1097.25. As per reports, the company has sweetened its offer to buy a controlling stake in bankrupt LyondellBasell Industries. Reliance's new offer has pushed its valuation of Lyondell to about $13.5 billion, up from $12 billion in an initial bid made in November 2009.

The RIL stock rose 1.51% on Thursday in a weak market on talks of more fund raising by the company through sale of treasury shares. RIL, which raised Rs 2,675 crore through the sale of treasury shares on Monday, 4 January 2010, is reportedly looking to generate a similar amount over the next few weeks by selling more stock to institutional investors.

The stake is likely to be offered at a discount of 2% to 4% as part of a strategy to beef up its cash reserve. The funds would be used for its immediate requirement in exploration and production (E&P), debt repayments and acquisition of bankrupt chemical giant LyondellBasell.

Software pivotals fell for the third day in a row on expectations the Indian rupee may rise further this year driven mainly by inbound portfolio investment. India's second largest software services exporter Infosys fell 2.41% as its ADR fell 3.05% on Thursday.

Analysts expect weak performance from Infosys in Q3 December 2009 due to a firm rupee and hike in employee salaries. A firm rupee adversely affects operating profit margin of IT firms as the sector derives a lion's share of revenue from exports. Nevertheless, a favourable cross-currency movement will to some extent offset the impact of firm rupee and hike in salary bill. A number of analysts expect Infosys to revise upwards its guidance for the year ending March 2010 amid an improved global business environment. However, a section of the market feels that an adverse cross-currency movement will mean a muted guidance from Infosys for Q4 March 2010. Infosys unveils Q3 results on Tuesday, 12 January 2010.

A total of seven brokerages expect a between 0.79% to 8.65% fall in Infosys' Q3 consolidated net profit as per Indian accounting standards at between Rs 1406.80 crore to Rs 1527.70 crore in Q3 December 2009 over Q2 September 2009. They expect a between 1.29% fall to a rise of 0.37% in revenue at between Rs 5512.90 crore to Rs 5606.10 crore in Q3 December 2009 over Q2 September 2009

India's third largest software services exporter Wipro fell 1.25% as its ADR fell 3.74% on Thursday. India's largest software services exporter TCS fell 1.98%.

The partially convertible rupee rose to a high of 45.55 per dollar on Thursday, 7 January 2010, its strongest level since 23 September 2008.

Metal stocks fell after LMEX, a gauge of six metals traded on the London Metal Exchange, fell 2.38% on Thursday, 7 January 2010. Among non-ferrous stocks, National Aluminium Company, Sterlite Industries, Hindalco Industries, Hindustan Zinc, fell by between 0.81% to 1.97%.

But, Tata Steel, the world's eighth-largest steelmaker rose 0.13%. The company said on 5 January 2010 sales from its Indian operations rose 73% in December 2009 to 636,000 tonnes from a year earlier. India sales for the December 2009 quarter rose 49% to 16 lakh tonnes, the company said in a statement. The Indian operations account for about a quarter of the group's total annual global capacity of 30 million tonnes, which includes unit Corus, Europe's second-largest steelmaker.

Sales of flat products, used in automobiles and consumer durables, surged 90% in December, while sales of long products, primarily used in construction, rose 56%, Tata Steel said. The company's crude steel production in India rose 21%.

Steel companies are reportedly eyeing higher prices in 2010 as stronger economic growth worldwide drives up demand for the critical building material.

Recently, Tata Steel raised prices by Rs 2,000 a tonne, while state-owned Steel Authority of India (SAIL) withdrew the Rs 750-1,500 per tonne rebate it had started offering in November 2009, following the increase in raw material cost. Other secondary steel makers such as Bhushan Steel and Uttam Galva also raised the prices of their products on 5 January 2010.

Banking stocks fell on profit taking. India's largest private sector bank by net profit ICICI Bank fell 1.29%. India's largest bank by net profit and branch network State Bank of India fell 0.24%. The state-run bank paid advance tax of Rs 1795 crore versus Rs 1700 crore. But, India's second largest private sector bank by net profit HDFC Bank was flat as its ADR rose 1.6% on Thursday.

As per recent reports credit offtake has picked up. According to the latest Reserve Bank of India (RBI) figures, total loans, including food credit loans to Food Corporation of India for foodgrain procurement and non-food credit (all other loans) amounted to Rs 29,41,293.07 crore as on 19 December 2009. This represents a sequential growth of Rs 34,028 crore since 27 November 2009 compared to a growth of Rs 7,698 crore in the whole of November 2009.

Rate sensitive realty stocks rose after a foreign brokerage house raised its outlook on the realty sector citing a potential recovery in the office property market and a steady growth in key residential markets. India's largest realty player by market capitalization DLF rose 4.26%. On 16 December 2009, the company's board approved merger of its commercial realty arm DLF Assets (DAL) with itself, a move aimed at repaying some of DAL's debt.

Among other realty stocks, Omaxe, Ackruti City, Unitech, Indiabulls Real Estate rose by between 0.38% to 4.79%.

India's largest engineering & construction firm by sales Larsen & Toubro rose 0.58% after falling for the last two days. The company said on Wednesday, it has received contracts worth Rs 2,325 crore for commercial and residential construction in Maharashtra, Gujarat, West Bengal and Chandigarh. The company said on Monday it won orders worth Rs 987 crore. The company said on Thursday 31 December 2009 it won two orders totaling Rs 580 crore.

Among other capital goods stocks, Bharat Heavy Electricals, Punj Lloyd, Siemens, ABB rose by between 0.5% to 2.29%.

India's largest thermal power generator by sales NTPC rose 1.18%. The power ministry has reportedly asked the petroleum ministry to place a proposal before the empowered group of ministers (EGoM) to allot 12 million standard cubic meters per day (mscmd) of gas from the KG-D6 block to state-run NTPC at $2.34 per million British thermal unit (mBtu).

The power ministry's proposal comes despite a pending court battle between NTPC, India's largest power generator, and Mukesh Ambani-led Reliance Industries (RIL) over the pricing of gas from the same field. Meanwhile, the government plans to divest stake in NTPC.

Among other power sector stocks, Reliance Power, Reliance Infrastructure, Torrent Power and Tata Power Company rose by between 0.02% to 1.17%

Infrastructure shares were in demand after Prime Minister Manmohan Singh promised to improve infrastructure, a day after the head of the world's biggest steelmaker Arcelor Mittal blasted the country over delays in getting projects off the ground. Nagarjuna Construction Company, Gayatri Projects, Gammon India, Hindustan Construction Company rose by between 0.63% to 3.65%.

India's largest drug maker by sales Ranbaxy Laboratories rose 1.69% extending Thursday's 0.57% gains on reports the firm has started discussions to buy a privately-held Bangalore-based vaccine company in deal valued around Rs 50 crore.

Among other healthcare stocks, Sun Pharmaceutical Industries, Dr Reddy's Laboratories, Cadila Healthcare rose by between 0.55% to 2.11%.

Auto stocks fell on profit taking. Bajaj Auto fell 1.71%. Bajaj Auto sold 2,20,429 two-wheelers in December 2009, registering an 85% growth in sales over the same month last year, when it sold 1,19,215 units.

India's largest car maker by sales Maruti Suzuki fell 1.44%. The company said on Thursday it had priced newly launched five-seater multipurpose car Eeco at Rs 2,59,000 as competition for low-cost vehicles heats up. Maruti Suzuki's managing director and chief executive officer, Shinzo Nakanishi was quoted by the media as saying on 5 January 2010 that the company will see flat to lower exports next year because of the scrappage of incentives by Europe. He also said there would be lower offtake from Nissan for exports as a result of the removal of incentives.

Nakanishi said the company aims to keep operating margins at 10% in fiscal year 2009/10 but profitability will be impacted by a rise in raw material prices and a rise in the yen.

Maruti Suzuki India reported 50.6% increase in total vehicle sales to 84,804 units in December 2009 over December 2008. Domestic sales rose 36.5% to 71,000 units, while exports surged 223.7% to 13,804 units.

India's largest motorcycle maker by sales Hero Honda Motors fell 0.39%. Hero Honda will comfortably exceed its fiscal 2009/10 sales target of 40 lakh units, its managing director Pawan Munjal said to media on Thursday. Sales jumped 74% to 375,838 units in December 2009 over December 2008.

India's largest tractor marker by sales Mahindra & Mahindra (M&M) fell 0.11% after declining 2.14% on Thursday. M&M marked its entry on Monday into the heavy commercial vehicle (HCV) segment with its unveiling of 25 and 31 tonne trucks with its US-based joint venture partner Navistar Inc.

Mahindra & Mahindra, reported 122% rise in its domestic sales to 22,754 units in December 2009 over December 2008. The company sold a total of 24,001 vehicles (domestic plus exports) in December 2009 as against 11,172 vehicles sold in December 2008.

But, TVS Motors rose 0.22% on bargain hunting after falling for the last three days. Sales rose 34% to 119,701 units in December 2009 over December 2008.

India's top truck maker by sales Tata Motors rose 0.56%. Tata Motors has raised prices of some truck and bus models in January 2010 by about 1%. The company expects commercial vehicle sales to remain strong in the next 12 months. The company's chairman Ratan Tata said on 5 January 2010 that the company may consider launching its ultra-cheap Nano car in the United States in three years, following possible sales in Europe by the end of 2011.

Tata Motors registered 105% growth in sales to 51,627 units in December 2009 over December 2008.

Cals Refineries clocked the highest volume of 8.21 crore shares on BSE. Mahindra Satyam (1.86 crore shares), Kauturi Global Solutions (1.8 crore shares), IFCI (1.48 crore shares) and Unitech (1.19 crore shares) were the other volume toppers in that order.

Mahindra Satyam clocked the highest turnover of Rs 210.10 crore on BSE. Aban Offshore (Rs 149.17 crore), DLF (Rs 147.55 crore), Bombay Dyeing (Rs 145.96 crore) and Tata Steel (Rs 137.97 crore were the other turnover toppers in that order.

Daily Grey Market Premium - Jan 8 2010

Company Name	Offer Price (Rs.)	Premium (Rs.)
Infinite Computer	155 to 165	14 to 15
MBL Infra	180	5 to 7
Birla Shloka	45 to 50	2 to 3

Sensex to open marginally higher

Headlines for the day

Suryachakra Power to raise funds for expansion - Business Line

Transgene Bio ink pact with Dr Reddys for obesity drug - Business Line

Maruti Suzuki rolls out MPV 'Eeco' - Business Standard

Reliance MediaWorks acquires UK-based iLabs - Business Standard

Megasoft mulls $25 mn buyout in Latam, Europe - Business Standard

Events for the day

Major corporate action:

Ex-date for dividend of Krone Communications Ltd

Today’s Results: Bajaj Hindusthan, IFCI, & Motilal Oswal

Pre-market report

Global signals

On Thursday, the European stocks closed marginally lower, FTSE 100 closed 0.06% lower at 5527.

The US markets that opens weak, recover its losses after initial jobless claim edge up. Dow Jones up by .31% while Nasdaq down marginally by 1 points and closed at 2300.

In today's trade, All the Asian indices trading higher, except Kospi that trading lower by 0.66%. At the time of writing this report SGX Nifty trading higher by 11 points.

Indian markets

The domestic indices are expected to open marginal higher, remain volatile following mixed signals that are coming from the global markets.

Among the local indices, the Nifty could test the 5300-5320 range on the up side, while on the down side it could find support at 5160 and 5200. While the Sensex is likely to get support at 17500 and may face resistance at 17800.

Indian ADR's

Among the Indian ADRs trading on the US bourses, among gainers, Rediff surged the most with gain of 2.50%. On other hand Wipro fell the most with loss of 3.74%..

Commodity cues

In the commodity space, wherein the Crude oil prices recorded marginal decline, with the Nymex light crude oil for February series decline by $0.52 to settle at $82.66 a barrel.

In the metals space, Comex Gold for February series down by $2.90 to settle at $1133.60 to a troy ounce.

In the metals space, Comex Silver for March series rise by $0.18 to settle at $18.35 to a troy ounce.

Daily trend of FII/MF investment in equities

On January 07, 2010, FIIs were the net buyers of the Indian Stocks in the tune of Rs839.10 crore (with the gross purchase of Rs3431.60 crore and gross sales of Rs2592.50 crore).

While the Domestic mutual funds, on January 06, 2010, were the net seller of the stocks in the tune of Rs571.20 crore (with gross purchase of Rs654.40 crore and gross sales of Rs1225.50 crore).

Mixed end for precious metals

Gold drops for first time in five days

Yellow metal prices fell for the first time in five days on Thursday, 07 January 2010. Chances of China raising interest rate pushed dollar higher thereby reducing the appeal of precious metal as an alternate investment. But silver gained for the day.

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 Thursday, gold for February delivery ended at $1,133.7 an ounce, lower by $2.8 (0.2%) an ounce on the New York Mercantile Exchange. It had added 4% in past four sessions.

Gold ended FY 2009 higher by 24%. In 2008, gold prices ended higher by 5.5%.

Last year, after hitting a low at $807.30 per ounce on 15 January 2009, gold futures rallied almost 51% to hit an all-time high at $1217.40 per ounce during early December of 2009 but fell from those levels at the end. Gold shed more than 7% in December.

On Thursday, March Comex silver futures ended higher by 16 cents (0.9%) at $18.34 an ounce.

Silver futures had ended 2009 up 50%. Silver futures had hit a low at $10.42 on 15 January, 2009 and hit a high at $19.30 per ounce on 2 December, 2009. Like gold, silver also ended lower than its all time high level.

In the currency market on Thursday, the dollar index, which weighs the strength of dollar against the basket of six other currencies rose by almost 0.6%. China's central bank said on Wednesday that it aimed to keep inflation in check in 2010 while maintaining its pro-growth monetary policy as the world's third-largest economy recovers from the financial crisis.

Among economic data for the day, The Labor Department in US reported on Thursday, 07 January 2010 that the number of people filing initial claims for state unemployment benefits was essentially unchanged in the week of 2 January 2010 rising by just 1,000 to a seasonally adjusted 434,000.

The four-week average of initial claims – a favorite, because it smoothes out one-time distortions caused by bad weather, holidays and strikes - fell by 10,250 to 450,250. That's the lowest since September 2008, just before the recession began. Compared with a year ago, initial claims are down 15%, while state continuing claims are up 13%. The data showed that over the past several months, fewer people are losing their jobs than were six months ago, but once a job is lost, it's very hard to find another one.

At the MCX, gold prices for February delivery closed lower by Rs 38 (0.22%) at Rs 16,827 per ten grams. Prices rose to a high of Rs 16,915 per 10 grams and fell to a low of Rs 16,785 per 10 grams during the day's trading.

At the MCX, silver prices for March delivery closed Rs 147 (0.52%) higher at Rs 27,960/Kg. Prices opened at Rs 27,864/kg and rose to a high of Rs 28,020/Kg during the day's trading.

Dull day for base metals

Prices drop on demand concerns from China

Base metal prices dropped from their recent high levels on Thursday, 07 January 2010. Prices dropped as traders anticipated that recent monetary policy changes in China will curb the demand for the metals in coming months. The strong dollar also played its role.

At USA, copper futures for March delivery ended lower by 6.75 cents (1.9%) to 3.427 a pound. Prices fell for first time in nine sessions. Copper ended FY 2009 higher by 140%.

At LME, copper for delivery in three months ended lower by $125 (1.6%) at $7,535. On 3 July, 2008, prices had touched an all time intra day high of $8,940.

Copper ended substantially higher last year on expectations of revived global economic growth along with a decline in the dollar. The metal was also pushed higher by record first-half imports to China, the world's largest user.

In the currency market on Thursday, the dollar index, which weighs the strength of dollar against the basket of six other currencies rose by almost 0.6%. China's central bank said on Wednesday that it aimed to keep inflation in check in 2010 while maintaining its pro-growth monetary policy as the world's third-largest economy recovers from the financial crisis.

Among economic data for the day, The Labor Department in US reported on Thursday, 07 January 2010 that the number of people filing initial claims for state unemployment benefits was essentially unchanged in the week of 2 January 2010 rising by just 1,000 to a seasonally adjusted 434,000.

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 lower by Rs 5.75 (1.6%) at Rs 345.85/Kg. Prices rose to a high of Rs 352.75/Kg and fell to a low of Rs 345.5/Kg during the day's trading.

Among other metals traded in the LME on Thursday, lead lost 2.6% to end at $2,603 a ton and zinc lost 1.6% to end at $2,675 a ton. Nickel lost 0.5% to end at $19,050. Aluminium shed 1% to end at $2,355 a ton.

Crude ends winning streak

Crude prices drop for first time in eleven sessions

After gliding up for ten consecutive sessions, crude prices slipped for the first time at Nymex on Thursday, 07 January 2010. Prices fell as dollar turned higher. But the cold weather forecast in US and China limited crude's losses.

On Thursday, crude-oil futures for light sweet crude for February delivery closed at $82.66/barrel (lower by $0.52 or 0.6%). Prices had added almost 13% in the past ten sessions.

Crude ended FY 2009 higher by 78%, the highest yearly gain since 1999. It reached a high of $82 earlier in October 2009 and hit a low of $33.98 on 12 February 2009. Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 44% since then. Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.

The EIA had reported yesterday that U.S. crude inventories rose by 1.3 million barrels in the week ended 1 January, 2010. The report also showed that gasoline inventories increased by 3.7 million barrels. Distillate stockpiles fell 300,000 barrels. Market was anticipating that weekly inventory report by energy department will show crude and gasoline stockpiles to have dropped by 0.2 million and 0.5 million barrels last week respectively.

The EIA data also showed that net crude imports rose 4.1% to 8.323 million barrels a day. Refiners reduced their production last week, operating at 79.9% of their operable capacity, down from the previous week's 80.3%.

In the currency market on Thursday, the dollar index, which weighs the strength of dollar against the basket of six other currencies rose by almost 0.6%. China's central bank said on Wednesday that it aimed to keep inflation in check in 2010 while maintaining its pro-growth monetary policy as the world's third-largest economy recovers from the financial crisis.

Among economic data for the day, The Labor Department in US reported on Thursday, 07 January 2010 that the number of people filing initial claims for state unemployment benefits was essentially unchanged in the week of 2 January 2010 rising by just 1,000 to a seasonally adjusted 434,000.

The four-week average of initial claims – a favorite, because it smoothes out one-time distortions caused by bad weather, holidays and strikes - fell by 10,250 to 450,250. That's the lowest since September 2008, just before the recession began. Compared with a year ago, initial claims are down 15%, while state continuing claims are up 13%. The data showed that over the past several months, fewer people are losing their jobs than were six months ago, but once a job is lost, it's very hard to find another one.

Among other energy products on Thursday, February gasoline ended nearly flat $2.135 a gallon. February heating oil fell 2 cents, or 0.9%, to $2.184 a gallon.

Also on Thursday, February natural-gas futures settled at $5.806 per million British thermal units, off 20 cents, or 3.4%. Yesterday, natural gas had ended at the highest level in one year. The EIA reported on Thursday that U.S. natural gas inventories fell 153 billion cubic feet in the week ended 1 January 2010. At 3,123 billion cubic feet, stocks were 286 billion cubic feet higher than last year at this time and 316 billion cubic feet above the five-year average.

At the MCX, crude oil for January delivery closed unchanged at Rs 3,783/barrel. Natural gas for January delivery closed lower by Rs 8.5 (3.1%) at Rs 266.2/mmbtu.