Indian indices buck the trend

Today's major news

3G auction ends; pan-India bid touches Rs16,828 crore

3G mop-up to help govt cut fiscal deficit

Food inflation inches up to 16.49%

Click here for more stories

Global signals

European stocks fell late on Thursday on persistent concerns that other European countries may follow Germany's footsteps to ban short selling in some financial instruments. FTSE 100 was trading lower by 0.21%.

All the major Asian indices closed in the negative territory. SGX Nifty closed 14.5 points higher.

US stock futures signal to a mixed opening on the Wall Street on Thursday. Investors will keep an eye on data for weekly claims for jobless benefits and earnings of Staples and Compuware Corp, which will be announced later on the day.

Indian indices

After sliding by close to 700 points in the last few trading sessions, the Sensex rose by 0.68% taking a breather as the developments in the domestic markets took the front seat. Today, the Sensex ignored all the negative cues coming from across the globe, putting a pause on to the losses, as oil & gas stocks led the way for the index. The mayhem in Europe that had spoiled the global sentiments seemed to have no effect on the Indian markets today.

The two positive announcements that came in after the market hours yesterday (May 19, 2010) includes, 3G kitty swelling to almost Rs68,000 crore (almost double of estimated Rs35,000 crore) will boost the Indian economy by bringing down the fiscal deficit to around 4.9% from 5.5% of gross domestic product (GDP) projected in the Budget for 2010-11. This might help to improve the India's sovereign rating. Second, the government doubling the price of natural gas under the administered pricing mechanism (APM) to $4.2 per million British thermal units (mbtu), as against current $1.79 per mbtu, boosted the oil & gas stocks. These news back home helped the Indian indices to outperform its global peers. The Indian indices were in green while other global markets were in red.

Bulls were running their way with no worries. The strength was seen through out the session. It seemed like the markets have calmed down after the storm.

The 30-stocks Sensex started the session 11 points higher at 16419 making its day's low. The gains expanded amid volatility. Despite food inflation inching to 16.49% for week ended May 08, 2010 as compared to 16.44% in the previous week, the market remained strong. Post lunch, the markets hit the day's high of 16618 as European indices opened in green after yesterday's heavy sell-off. However, in the last hour of trading, the Sensex pared some of its gains. At closing bell, the Sensex quoted at 16520, 111 points higher. The Nifty also advanced 28 points to closed at 4948.

Market sentiment

Despite of positive closing, market breadth was negative as declining stocks outnumbered advancing stocks. Of the 2,926 stocks traded on the BSE, 1,670 stocks declined, whereas 1,143 stocks advanced. Hundred and thirteen stocks remained unchanged.

Sectoral & stock screening

PSU stocks did well for the day, with BSE PSU up by 1.87%. BSE Oil & Gas was second gainer in the sectoral list, advanced by 1.79%. On the other hand, BSE Realty down by 2.04%, the most for any sector, followed by BSE Auto and BSE CD that fell marginally by 0.53% and 0.17% respectively.

Among 'A' group stocks: the top three gainers were Oil and Natural Gas Corporation (up 8.7%), Piramal Healthcare (up 8.52%) and LIC Housing Finance (up 4.08%). The top three losers were Educomp Solutions (down 9.07%), Everest Kanto Cylinder (down 6.21%) and Housing Development and Infrastructure (down 4.79%).

Viewing volumes

India's second largest developer Unitech saw highest trading with over 0.82 crore shares changing hands on the BSE, followed by Anil Dhirubhai Ambani Group company Reliance Natural Resources (0.49 crore shares), wind turbine major Suzlon Energy (0.42 crore shares), cement manufacturer Jaiprakash Associates (0.34 crore shares) and industrial finance company IFCI (0.31 crore shares).

BSE Bulk Deals to Watch - May 20 2010

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
20/5/2010 531591 Bampsl Sec PRAKASHCHAND GUPTA B 467514 1.37
20/5/2010 517001 Birla Power S V ENTERPRISES B 9402330 2.72
20/5/2010 517001 Birla Power S V ENTERPRISES S 9335330 2.73
20/5/2010 511607 Birla Shloka RAJ FINVEST B 71147 77.32
20/5/2010 511607 Birla Shloka RAJ FINVEST S 71147 77.22
20/5/2010 533026 Chemcel Bio SANJAY KUMAR RAMCHANDRA AGRAWAL (HUF) S 200000 9.34
20/5/2010 532456 Compuage Info AJAYHARKISHANDAS MEHTA S 100000 99.55
20/5/2010 531270 Dazzel Conf SANJAY SINGH THAKUR B 40000 31.76
20/5/2010 531171 Devika Prot MRUNAL AGENCY & FINANCE PVT. LTD. B 103611 27.07
20/5/2010 531171 Devika Prot ANILHASTIMAL PARMAR B 75000 24.00
20/5/2010 517973 DMC Intl KAPIL GUPTA B 151524 16.06
20/5/2010 517973 DMC Intl NAVDEEP GUPTA B 131175 16.06
20/5/2010 517973 DMC Intl OURS TRADING AND HOLDINGS PRIVATE LIMITED B 256718 16.06
20/5/2010 517973 DMC Intl OURS TRADING AND HOLDINGS PRIVATE LIMITED S 259083 16.06
20/5/2010 517973 DMC Intl KAPIL GUPTA S 151524 16.04
20/5/2010 532022 Filatex Fash MOHTA SECURITIES PRIVATE LIMITED B 200000 10.69
20/5/2010 532022 Filatex Fash SANJU KABRA B 149700 10.05
20/5/2010 532022 Filatex Fash RADIANT FINANCIAL SERVICES LIMITED B 50301 10.05
20/5/2010 532022 Filatex Fash OMPARKASH GUPTA B 40001 10.33
20/5/2010 532022 Filatex Fash OMPARKASH GUPTA S 40000 10.69
20/5/2010 532022 Filatex Fash RADIANT FINANCIAL SERVICES LIMITED S 43052 10.69
20/5/2010 532022 Filatex Fash SANJU KABRA S 110801 10.54
20/5/2010 532022 Filatex Fash KAMALKISHORHARNARAYANVYAS S 44000 10.05
20/5/2010 532022 Filatex Fash VANNA TRADING COMPANY PRIVATE LIMITED S 56000 10.05
20/5/2010 532671 Henkel India VINA VIREN AHUJA B 730492 59.59
20/5/2010 532847 Hilton Metal RAHN AND BODMER B 180000 20.55
20/5/2010 532847 Hilton Metal KII LIMITED S 180000 20.55
20/5/2010 531979 Hind Aluminium TIRATHPRADYUMAN PARIKH B 26689 56.20
20/5/2010 531979 Hind Aluminium TIRATHPRADYUMAN PARIKH S 39689 55.28
20/5/2010 530315 Hindustan Tin DEEPAK PATEL B 110000 133.48
20/5/2010 523840 Innovative Tech SAAKSHI SHARES PVT LTD B 54891 31.28
20/5/2010 531777 Intellvisions ROSHANI NEETISH DOSHI B 118000 18.77
20/5/2010 531777 Intellvisions CREDO CAPITAL PIC A/C KII LTD. S 118000 18.77
20/5/2010 523712 JMG Corp BANARAS BEAD LEASING & FINANCE PVT LTD B 499500 4.90
20/5/2010 523712 JMG Corp BIG BANG ENTERPRISES PRIVATE LIMITED S 500000 4.90
20/5/2010 530547 KEN Fin Serv ASHISHKUMARSUSHILTIBREWALA S 15000 80.00
20/5/2010 531602 Koffee Break SUNITAANILCHURIWALA B 1100000 2.29
20/5/2010 531602 Koffee Break MAHENDRA KUMAR KHEDIA B 800000 2.29
20/5/2010 500267 Majestic Auto SHIVALIK SECURITIES LTD. B 87333 104.99
20/5/2010 533204 MANDHANA OPG SECURITIES P LTD B 198315 134.36
20/5/2010 533204 MANDHANA HEMANTRATILAL SHAH B 166113 132.59
20/5/2010 533204 MANDHANA SANTKUMAR AGARWAL B 200200 133.69
20/5/2010 533204 MANDHANA OPG SECURITIES P LTD S 198315 134.71
20/5/2010 590111 MASTER VULASA BABU RAO B 54150 32.85
20/5/2010 590111 MASTER SATYANARAYANA VARAPRASAD GARIKIPATY S 60995 32.90
20/5/2010 590060 MK Exim LALIT JKACHHADIA S 32536 51.00
20/5/2010 590060 MK Exim NAVINCHANDRAMANILALSHETH S 20302 51.50
20/5/2010 523820 Neo Corp TAIB BANK A/C TSML S 77940 53.10
20/5/2010 524372 Orchid Chem POONAWALLA CYRUS SOLI B 392694 141.76
20/5/2010 512097 Oregon Comm PATEL VIPUL B 7000 287.05
20/5/2010 512097 Oregon Comm BHAVESH SHANTILAL TRIVEDI B 4850 288.30
20/5/2010 512097 Oregon Comm KRUNAL GOPALDAS RANA B 40164 286.43
20/5/2010 512097 Oregon Comm J M SONI CONSULTANCY B 9711 288.19
20/5/2010 512097 Oregon Comm DHIRENKUMARDHARAMDAS AGARWAL S 43667 288.24
20/5/2010 530923 Passari Cellu APURVA COMMODITIES PRIVATE LIMITED B 107000 58.50
20/5/2010 530923 Passari Cellu AKSHAY KOTHARI S 53500 58.49
20/5/2010 530923 Passari Cellu ANAND JYOTI KOTHARI S 53500 58.50
20/5/2010 517417 Patels Airtmp VIKASH JAIN B 30000 126.72
20/5/2010 524808 Phyto Chem SRINIVASRAO PABBATHI B 100000 6.80
20/5/2010 524808 Phyto Chem NARENDRA GUPTA S 35000 6.80
20/5/2010 524808 Phyto Chem DIPIKAN GUPTA S 50756 6.80
20/5/2010 511016 Premier Cap INNOVA ESERVICES PRIVATE LTD B 5000 56.30
20/5/2010 511016 Premier Cap YUKTI INVESTMENT PRIVATE LIMITED S 5500 56.30
20/5/2010 530047 Rai Saheb Rekh NILU SANJAY PODDAR S 21499 125.00
20/5/2010 590077 Ranklin Sol JAYA KIRAN KUMAR B 40687 70.90
20/5/2010 590077 Ranklin Sol SUNGLOW FINVEST LTD S 36000 70.81
20/5/2010 512359 Rotam Comm KAPILABENRASIKLAL PANDYA B 15000 78.23
20/5/2010 512359 Rotam Comm DARSHANPRAFULCHANDRATREVEDI S 7600 79.03
20/5/2010 512359 Rotam Comm KRUPA SANJAY SONI S 5800 77.50
20/5/2010 512359 Rotam Comm J M SONI CONSULTANCY S 12030 80.85
20/5/2010 532972 Sankhya Info RAJEEV KHANNA B 270000 37.00
20/5/2010 532972 Sankhya Info VELLAYAN NARAYANAN S 104325 37.00
20/5/2010 532972 Sankhya Info VENKATA CHALAM S 61325 37.00
20/5/2010 532972 Sankhya Info ARUNACHALAM VELLAYAN S 104325 37.00
20/5/2010 531645 Southern Ispat VIPULBHAIPUNAMCH AND SHAH S 72478 19.58
20/5/2010 526133 Supertex Inds JAYESH HIMATLAL MEHTA B 1850000 4.00
20/5/2010 526133 Supertex Inds SUPER INFINCON PVT LTD B 500000 3.59
20/5/2010 526133 Supertex Inds SUPER INFINCON PVT LTD S 1242016 3.56
20/5/2010 530477 Vikram Thermo VIPUL GMOTA S 14000 22.42
20/5/2010 531249 Well Pack Papers BHARATKUMARBALDEVBHAI PARMAR B 415810 36.36
20/5/2010 531249 Well Pack Papers BHARATKUMARBALDEVBHAI PARMAR S 415810 36.60
20/5/2010 531249 Well Pack Papers AMAR PREMCHAND WALMIKI S 676477 36.57
20/5/2010 506720 Zandu Rlty A K G STOCK BROKERS PRIVATE LIMITED B 5820 3553.93
20/5/2010 506720 Zandu Rlty GENUINE STOCK BROKERS PVT. LTD. B 5432 3558.17
20/5/2010 506720 Zandu Rlty TRANSGLOBAL SECURITIES LTD. B 4594 3548.53
20/5/2010 506720 Zandu Rlty SMART EQUITY BROKERS PRIVATE LIMITED B 4927 3605.98
20/5/2010 506720 Zandu Rlty OPG SECURITIES P LTD B 11428 3587.40
20/5/2010 506720 Zandu Rlty CHIMANLALPOPATLALMATALIYA B 4193 3553.26
20/5/2010 506720 Zandu Rlty RKSV SECURITIES INDIA PRIVATE LIMITED B 4506 3538.01
20/5/2010 506720 Zandu Rlty CHIMANLALPOPATLALMATALIYA S 4193 3557.63
20/5/2010 506720 Zandu Rlty OPG SECURITIES P LTD S 11428 3588.80
20/5/2010 506720 Zandu Rlty RKSV SECURITIES INDIA PRIVATE LIMITED S 4505 3544.65
20/5/2010 506720 Zandu Rlty TRANSGLOBAL SECURITIES LTD. S 4594 3553.76
20/5/2010 506720 Zandu Rlty SMART EQUITY BROKERS PRIVATE LIMITED S 4927 3614.78
20/5/2010 506720 Zandu Rlty GENUINE STOCK BROKERS PVT. LTD. S 5432 3567.25
20/5/2010 506720 Zandu Rlty A K G STOCK BROKERS PRIVATE LIMITED S 5820 3554.30
* B - Buy, S - Sell

NSE Bulk Deals to Watch - May 20 2010

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
20-MAY-2010,NETWORK18,Network18 Media & Inv Ltd,NETWORK18 GROUP SENIOR PROFESSIONAL WELFARE TRUST,BUY,850667,152.66,-
20-MAY-2010,ZANDUREALT,Zandu Realty Limited,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,6213,3550.02,-
20-MAY-2010,ZANDUREALT,Zandu Realty Limited,CHIMANLAL P. MATALIA,BUY,4046,3551.54,-
20-MAY-2010,ZANDUREALT,Zandu Realty Limited,GENUINE STOCK BROKERS PVT LTD,BUY,4923,3556.29,-
20-MAY-2010,ZANDUREALT,Zandu Realty Limited,LPC SECURITIES LTD,BUY,4379,3564.60,-
20-MAY-2010,ZANDUREALT,Zandu Realty Limited,MARWADI SHARES AND FINANCE LIMITED,BUY,4474,3631.11,-
20-MAY-2010,ZANDUREALT,Zandu Realty Limited,PRISM IMPEX PVT LTD,BUY,8500,3594.77,-
20-MAY-2010,ZANDUREALT,Zandu Realty Limited,TRANSGLOBAL SECURITIES LTD.,BUY,9592,3566.67,-
20-MAY-2010,DCMFINSERV,DCM Financial Ser Ltd,DCM SERVICES LTD,SELL,100000,5.80,-
20-MAY-2010,GLORY,Glory Polyfilms Limited,SPARROW INDIA DIVERSIFIED OPPORTUNITIES FUND I GDR,SELL,130000,16.18,-
20-MAY-2010,NETWORK18,Network18 Media & Inv Ltd,NETWORK18 GROUP SENIOR PROFESSIONAL WELFARE TRUST,SELL,100000,149.07,-
20-MAY-2010,ZANDUREALT,Zandu Realty Limited,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,6213,3552.40,-
20-MAY-2010,ZANDUREALT,Zandu Realty Limited,CHIMANLAL P. MATALIA,SELL,4046,3553.03,-
20-MAY-2010,ZANDUREALT,Zandu Realty Limited,GENUINE STOCK BROKERS PVT LTD,SELL,4923,3555.20,-
20-MAY-2010,ZANDUREALT,Zandu Realty Limited,LPC SECURITIES LTD,SELL,4379,3567.55,-
20-MAY-2010,ZANDUREALT,Zandu Realty Limited,MARWADI SHARES AND FINANCE LIMITED,SELL,4474,3634.67,-
20-MAY-2010,ZANDUREALT,Zandu Realty Limited,TRANSGLOBAL SECURITIES LTD.,SELL,9592,3569.19,-

Selling persists in Asian stocks

Markets extend losses as German short sales ban fail to sooth sentiments

Asian stocks continued to record losses today, reeling under pressure from the Euro zone debt worries and ideas that the recent decision by Germany to ban naked short selling Euro zone sovereign bonds, credit default swaps and shares in 10 of Germany's top companies, mean there are serious threats to the financial stability of the Euro zone. Dollar fell above 1.2400 for a while but then recouped these losses and currently trades at 1.2380 against the Euro. This pressurized risky assets after crude and copper went up earlier in the day.

Japan's Nikkei fell, briefly falling below the 10,000-point level during the session. The stocks fell right from the start amid increasing concerns about the problems in Europe and its likely impact on the global economic growth. The weakening of the Euro against the major currencies, including the Japanese yen, and the strength of yen against the US dollar also impacted market sentiment as investors preferred to shun risk aversion and opted for safety. The benchmark Nikkei 225 Index closed down 1.5%, or 156.53 points, at 10,030, while the broader Topix index of all First Section issues fell 12.49 points, or 1.4%, to 898.

On the economic front, a preliminary report released by the Cabinet Office in Japan revealed that the country's gross domestic product added 1.2% in the first quarter of 2010 compared to the previous three months. On an annualized basis, GDP was up 4.9% for the fourth straight quarter of gain - but again missing forecasts for a 5.5% increase after the revised 4.2% gain in the previous three months.

Australia's S&P/ASX 200 finished at its lowest level since August, while the Australian dollar also tumbled amid lingering worries over the euro zone, the local government's proposed mining tax and a recent fall in commodity prices. The sharp drop in the Australian currency, which shed more than 10 cents since the beginning of the month, has raised fresh concerns that the weakness in the euro. The benchmark S&P/ASX200 Index declined 70.60 points, or 1.61% and closed at 4,316, while the All-Ordinaries Index ended at 4,342, representing a loss of 71.90 points, or 1.63%.

On the economic front, a report released by the Australian Bureau of Statistics revealed that the average weekly wages in the country rose 5.8% on a yearly basis in February 2010, coming in at A$1,242.20. In the three months to February, the average weekly ordinary time earnings increased a seasonally adjusted 1.1%, compared to the 2.2% increase recorded in the previous three months period up to November, the report added. The average weekly earnings of all employees stood at A$968.10 in February, up 5.7% from a year ago.

China's stocks also dropped, sending the benchmark index to a three-week low, on concern Europe's debt crisis and Chinese property curbs will hurt earnings growth. The Shanghai Composite Index declined 31.87, or 1.2 percent, to 2,555.94 at the close, the lowest since April 30. The measure has lost 22 percent in 2010, Asia's worst performer, after surging 80 percent last year. It entered a bear market on May 11 after falling 21 percent from its Nov. 23 high. The CSI 300 Index dropped 1.3 percent to 2,726.02

In other markets, Hong Kong's Hang Seng Index fell 0.2% while Straits Times – in Singapore shed 0.76% and the TSEC in Taiwan shed1.78%

In the U.S., stocks saw considerable weakness on Wednesday, as lingering worries regarding the future of the European Union and its currency continued to eclipse improvement on the U.S. economic front. The Dow fell by 66.58 points or 0.6% to 10,444, the Nasdaq declined by 18.89 points or 0.8% to 2,298 and the S&P 500 slid by 5.75 points or 0.5% to 1,115.

US dollar appreciated well under 1.2400 and currently trades at 1.2339. Light sweet crude oil futures for June delivery came off a high of $73 and currently trades at $70.99, down around $1.50 per barrel.

Oil & gas stocks hog limelight

The key benchmark indices rebounded on Thursday after heavy losses in the past two trading sessions as oil major ONGC jumped. Shares of state-run natural gas producers ONGC and Oil India spurted after the government on Wednesday more than doubled the price of natural gas produced from nomination blocks. PSU OMCs also edged higher.

Telecom stocks were mixed after the 3G spectrum auctions ended on Wednesday, 19 May 2010. The market breadth was weak in contrast to a strong breadth in early trade. The BSE 30-share Sensex rose 111.19 points or 0.68%, up close to 100 points from the day's low and off about equal points from the day's high. Banking, FMCG and metal stocks rose. European stocks and US index futures declined in volatile trade.

Intraday volatility was high as traders rolled over positions in the derivatives segment from May 2010 series to June 2010 series ahead of the expiry of the near-month May 2010 contracts next Thursday (27 May 2010). The market came off the higher level after a firm opening. The market recovered from lower level later. The market once again came off the higher level in mid-morning trade. The key benchmark indices regained strength in early afternoon trade.

The Sensex hit a fresh intraday high in afternoon trade as European stocks rose at the onset of the trading session. The market came sharply off the higher level later. The market once again came off the lower level in late trade.

NSE's volatility index India VIX, a gauge of traders' perception of near-term risks in the market based on options prices, declined 3.12% to 31.04, a day after surging 20.72% on Wednesday, 19 May 2010. India VIX is calculated based on the S&P CNX Nifty options prices. India VIX is a measure of the market's expectation of volatility over the next 30 calendar days.

Foreign funds are offloading Indian stocks. As per provisional data, foreign institutional investors (FIIs) today, 20 May 2010, sold shares worth a net Rs 657.23 crore. Domestic funds bought stocks worth a net Rs 721.15 crore.

FIIs have sold shares worth a net Rs 8367.76 crore this month, till 20 May 2010, according to data from the stock exchanges. They had bought stocks worth a net Rs 2667.35 crore last month. Domestic funds have bought stocks worth a net Rs 3286.54 crore this month, till 20 May 2010.

Worries over fiscal problems in southern Europe triggered outflow from China and India dedicated funds during the week ended 12 May 2010. As a result, Asia funds, excluding Japan, saw only $27 million inflows, their worst week in well over a year, as per data from global fund tracker EPFR Global.

On the macro front, India's monsoon rains are on track to hit the country's southern coast on 30 May 2010, and the Laila cyclone in the Bay of Bengal would not derail the vital June-September rainfall, a weather office spokesman told a news agency on Thursday. The India Meteorological Department (IMD) in late April 2010 said rainfall is likely to be 98% of the long-term average. Good monsoon rains would help raise farm output, boost rural incomes and lower food inflation.

The south west monsoon is important for India as about 60% of the country's farmlands are rain-fed and more than half of the workforce is employed in the agriculture sector. The quantum of rainfall in the crucial sowing month of July and distribution of rainfall during the monsoon season also holds key.

The latest data showed the food price inflation picked up for the second consecutive week in early May 2010. The food price index rose 16.49% in the year to 8 May 2010, a tad higher than the prior week's annual reading of 16.44% as fruit and vegetables prices climbed on the back of a heat wave. The fuel price index was steady at 12.33%, while the primary articles index was up 16.19% versus 16.76%

While the headline inflation declined to 9.59% in April 2010 from 9.9% rise in March 2010, the data for February 2010 was revised upwards to 10.06% from provisional figure of 9.89%, the latest government data showed. The RBI has forecast the headline inflation to ease to 5.5% at end-March 2011 on expectations of a normal monsoon.

European shares fell Thursday afternoon, with sentiment souring through the session and turning particularly negative towards miners and automakers. The key benchmark indices in Germany, UK and France were down by 0.76% to 2.13%.

Asian stocks fell on Thursday as fiscal worries in euro zone continued to mar investors' appetite for risk. Investors remain jittery after Germany's decision late on Tuesday, 18 May 2010, to ban naked short-selling on sovereign debt and some financial stocks. The key benchmark indices in China, Indonesia, Singapore Japan, Hong Kong, South Korea and Taiwan fell by between 0.17% to 1.83%.

Japan's economy grew less than forecast in the first quarter. Gross domestic product rose 4.9% in the three months to March 2010 at an annualized rate, up from 4.2% in October to December 2009 period.

US index futures slumped after moving between positive and negative zone. Trading in US index futures indicated that the Dow could fall 69 points at the opening bell on Thursday, 20 May 2010.

US stocks fell on Wednesday as Germany's unilateral action to ban specific trades on some stocks and bonds sparked a fresh wave of uncertainty and risk aversion among anxious investors. Germany on Tuesday banned investors who don't own or haven't borrowed certain stocks, bonds and derivatives from selling them, in a move that appeared to catch its partners in the European Union off guard. The Dow Jones Industrial Average slid 66.58 points, or 0.63% to 10,444.37. The Standard & Poor's 500 Index fell 5.75 points, or 0.51% to 1,115.05. The Nasdaq Composite Index lost 18.89 points, or 0.82% to 2,298.37.

Meanwhile, the latest data showed that US Consumer Price Index fell for the first time in a year last month and the closely watched core inflation rate eked out its smallest annual gain since 1966, further supporting the Federal Reserve's vow to keep interest rates low for some time.

Back home, the fourth quarter corporate results have been decent. The combined net profit of a total of 2,150 companies rose 23.5% to Rs 55,951 crore on 24.7% rise in sales to Rs 5,65,822 crore in the quarter ended March 2010 over the quarter ended March 2009.

The latest economic data showed industrial output rose lower than expected 13.5% in March 2010. The growth was also slower than February's 15.1% expansion. Manufacturing sector output rose 14.3% in March 2010. Industrial output rose 10.4% in the 2009/10 fiscal year, faster than the 2.6% growth clocked in the previous fiscal year.

India's exports rose an annual 36% to $16.9 billion in April 2010 as demand picked up for gems and textiles while imports rose an annual 43% to $27.3 billion buoyed by industrial recovery, stronger domestic growth and rising oil prices.

The RBI expects India's economy to expand 8% in the year ending March 2011 (FY 2011) with an upward bias, assuming a normal monsoon this year and sustenance of good performance of the industrial and services sectors on the back of rising domestic and external demand. The RBI at its annual policy review on 20 April 2010 said it will continue to monitor macroeconomic conditions, particularly the price situation closely and take further action as warranted.

In its World Economic Outlook in April 2010, the International Monetary Fund (IMF) pegged India's GDP growth forecast at 8.75% in calendar 2010 and 8.5% in calendar 2011. IMF's optimism was based on expectations of strengthening of domestic demand as the labour market improves. Expectations of increase in investment on the back of strong corporate profitability, rising business confidence and favourable financing conditions, were other factors cited by IMF for its prediction of strong growth in India's economy.

The BSE 30-share Sensex rose 111.19 points or 0.68% to 16,519.68. The Sensex rose 209.31 points at the day's high of 16,617.80 in afternoon trade. The index rose 10.61 points at the day's low of 16,419.10 in early trade.

The S&P CNX Nifty rose 27.95 points or 0.57% to 4,947.60. Nifty hit a high of 4,980.25.

The BSE Mid-Cap index fell 0.05%. The BSE Small-Cap index fell 0.55%. Both the indices underperformed the Sensex.

Most sectoral indices on BSE rose. BSE PSU index (up 1.87%), Oil & Gas index (up 1.79%), Healthcare index (up 1.14%), banking sector index Bankex (up 0.93%), and FMCG index (up 0.84%), outperformed the Sensex. BSE Power index (up 0.23%), Capital Goods index (up 0.19%), Metal index (up 0.08%), IT index (up 0.05%), Consumer Durables index (down 0.17%), Auto index (down 0.53%), and Realty index (down 2.04%), underperformed the Sensex.

The market breadth, indicating the overall health of the market was weak in contrast to a strong breadth in early trade. On BSE, 1,146 shares advanced as compared to 1,683 shares that declined. A total of 100 shares were unchanged.

From the 30 share Sensex pack, 18 stocks rose and the rest fell.

BSE clocked turnover of Rs 3840 crore, lower than Rs 4694.74 on Wednesday, 19 May 2010.

State run natural gas producers surged after the government on Wednesday more than doubled the price of natural gas produced by state firms from nomination blocks. ONGC jumped 8.72% and Oil India gained 9.09%. The base price of gas supplied by state firms will rise to $4.2 per million British Thermal Units, the same as the rate approved for Reliance Industries, bringing about near-uniformity in the cost of the fuel in India.

Shares of three state-run oil marketing companies -- BPCL, HPCL and Indian Oil Corporation rose by 2.37% to 3.22% on expectations that the government may deregulate oil prices after it raised the price of natural gas produced by state firms from nomination blocks.

Index heavyweight Reliance Industries (RIL) rose 0.16% to Rs 999.90. The stock was volatile. It hit a high of Rs 1013.75 and low of Rs 993.40. The company said today in view of the threat from cyclone Laila, the company has exercised caution and suspended all drilling operations in the East coast. All production operations on the FPSO (Floating Production Storage and Offloading) vessel operating in the KG D6 block were also suspended, RIL said.

The RIL stock had surged early this month, boosted by after a favourable ruling in the Supreme Court on gas dispute with Anil Ambani controlled Reliance Natural Resources (RNRL). The Supreme Court ordered the two firms to renegotiate a deal based on government policy on gas utilization.

Earlier, the Bombay High Court, in its order dated 15 June 2009 had directed that RNRL will get assured supply of 28 mmscmd of gas from RIL's Krishna-Godavari basin for 17 years at $2.34 per million British thermal units (mBtu). The gas price was 44.28% lower than the price fixed by the government for gas sale from the RIL block in the KG basin at $4.2 mBtu.

Grasim Industries was down 2.45% to Rs 2513.50, but off the day's low of Rs 2455. Consolidated net profit rose 15% to Rs 654 crore in Q4 March 2010 over Q4 March 2009. The company announced the result during market hours today.

FMCG stocks rose on bargain hunting. Tata Tea, ITC, Hindustan Unilever rose by between 0.18% to 1.56%.

Bank stocks rose on bargain hunting. Private sector lender ICICI Bank rose 1.01%, reversing early fall. The stock had slumped 7.24% on Wednesday amid concerns the bank is paying a high price for its proposed deal to buy small rival bank Bank of Rajasthan.

The board of directors of ICICI Bank and Bank of Rajasthan on Tuesday gave an in-principle nod for the merger of the later with the former. The swap ratio for the merger is set at 25 shares of ICICI Bank for every 118 shares held in Bank of Rajasthan. Bank of Rajasthan shares hit 10% upper circuit today after hitting 20% upper circuit on Wednesday boosted by the favourable swap ratio for the merger.

India's biggest commercial bank in terms of branch network State Bank of India (SBI) rose 2.19%. SBI expects its advances to grow by 22-23% in the current financial year. SBI's net profit declined 31.93% to Rs 1866.60 crore in Q4 March 2010 over Q4 March 2009. The bank announced the result on Friday, 14 May 2010.

But, India's second largest private sector bank by net profit HDFC Bank fell 0.93%, with the stock falling for the fourth straight day.

India's largest mortgage lender by total income Housing Development Finance Corporation rose 1.53%, with the stock rebounding after last four days' losses. The company's board on 3 May 2010 approved a 5-for-1 stock-split.

HDFC has reportedly extended concessional home loan scheme till 30 June 2010. Under the scheme, HDFC would offer a fixed interest rate of 8.25% up to March 2011, 9% for the next one year and a floating rate thereafter. The scheme was scheduled to end on 30 April 2010.

Auto shares extended recent fall. India's top truck maker by sales Tata Motors fell 0.34%, with the stock reversing early gains and extending last four days' losses. The company's global vehicles sales rose 53% to 77,732 units in April 2010 over April 2009. Global sales include that of Jaguar and Land Rover brands, which rose 61% to 17,909 vehicles. The figures were announced on 14 May 2010.

India's largest small car maker by sales Maruti Suzuki India fell 1.6%. Maruti's total sales rose almost 30% to 93,058 units in April 2010 over April 2009. Domestic sales rose 23.4% to 80,034 units. The data was unveiled on 1 May 2010.

India's largest tractor maker by sales Mahindra & Mahindra fell 0.88%, extending nearly 6% losses on Wednesday.

Car sales in India rose an annual 39.5% to 143,976 cars in April 2010 over April 2009, data from the Society of Indian Automobile Manufacturers (SIAM) showed. Sales of trucks and buses, a barometer of economic activity, rose 64.5 % to 49,086 units in April 2010 over April 2009, SIAM said.

But, Bajaj Auto rose 0.31%. The stock had hit a record high of Rs 2219.90 in intraday trade on Friday, 14 May 2010, boosted by strong Q4 results. Net profit surged 306% to Rs 528.65 crore in Q4 March 2010 over Q4 March 2009. The company announced result during market hours on Wednesday, 12 May 2010.

India's largest motorbike maker by sales Hero Honda Motors rose 0.49%, with the stock gaining for the second straight day.

Realty stocks fell on profit taking. DLF, Indiabulls Real Estate, Unitech, HDIL and Parsvnath Developers, Omaxe fell by between 0.11% to 4.79%.

Some metal stocks rose on bargain hunting after a recent sharp fall. Jindal Steel & Power, Sterlite Industries, Jindal Saw, Hindalco Industries, National Aluminum Company rose by between 0.16% to 2.35%.

Telecom stocks were mixed after the 3G spectrum auctions ended on Wednesday, 19 May 2010, raking in Rs 67,719 crore for the government. Bharti Airtel and Idea Cellular rose by between 0. 23% to 0.95 %. But, Reliance Communications fell 0.73%.

Bharti Airtel and Reliance Communications, each won 13 of the 22 telecom zones on offer while other major operators Vodafone Essar, Idea Cellular and Tata won a total of 9, 11 and 9 circles, respectively. The 3G auction will be followed in two days by an auction for wireless broadband spectrum, for which 11 firms are vying for two national licences for private operators, with one slot reserved for state telecoms firms.

IT stocks rose as the rupee dropped to its lowest level in three-and-a-half months against the dollar. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.

India's third largest software services exporter Wipro rose 0.41%. India's largest software services exporter TCS rose 1.24%, with the stock rebounding from last four days' losses triggered by reports the UK government will review outsourcing contracts, including agreements signed with TCS, in a bid to cut government spending. But, India's second largest software services exporter Infosys fell 0.1%.

India's largest thermal power producer by sales NTPC rose 1.76% after Power Minister Sushil Kumar Shinde on Thursday said power tariff is likely to go up by about 1 rupee per kilo watt hour following a hike in gas price. The stock had fallen recently after the company reported lower Q4 net profit. Net profit declined 4.52% to Rs 2017.65 crore in Q4 March 2010 over Q4 March 2009. The company announced the result during market hours on Monday, 17 May 2010.

India's largest drug maker by sales Ranbaxy Laboratories rose 0.47% on bargain hunting after the stock lost 5.87% on Wednesday. The company said on Wednesday its European unit was recalling select batches of three products to add safety warnings under the regulations there. The company said there was no product quality concerns for the drugs, but did not name the products. Ranbaxy said the drugs were being recalled from Britain, Denmark and Ireland.

India's largest engineering and construction firm by sales Larsen & Toubro rose 0.45%, reversing initial losses. At the time of announcing Q4 March 2010 results on Monday, 17 May 2010, L&T's management gave a guidance of 20% growth in revenue and 25% growth in new orders in the current financial year.

L&T's order inflow jumped 90% to Rs 23843 crore in Q4 March 2010 over Q4 March 2009. The company's order book as at 31 March 2010 stood at Rs 1,00,239 crore, which is 2.7 times its sales of Rs 36,996 crore for the year ended March 2010. Net profit rose 44% to Rs 1438.10 crore in Q4 March 2010 over Q4 March 2009. The company announced the result during market hours on Monday, 17 May 2010.

Among other capital goods stocks, Bharat Heavy Electricals, SKF India and Crompton Greaves rose by between 0.28% to 1.72%.

State-run hydro power generation firm SJVN settled at Rs 25.05 on BSE, 3.65% discount to the initial public offer price of Rs 26.

SJVN clocked highest volume of 7.18 crore shares on BSE. Cals Refineries (3.79 crore shares), Birla Power Solutions (2.73 crore shares), Unitech (82.14 lakh shares) and Supertex Industries (58.17 lakh shares) were the other volume toppers in that order.

SJVN clocked highest turnover of Rs 180.03 crore on BSE. Tata Steel (Rs 155.35 crore), Piramal HealthCare (Rs 146.13 crore),State Bank of India (Rs 103.75 crore) and Tata Motors (Rs 100.42 crore) were the other turnover toppers in that order.