Grey Market Premium Reliance Power IPO

Reliance Power 400 to 450 340 to 350 (Shooting up!)


BGR Energy 480 350 to 370

Burnpur Cement Ltd. 12 5 to 7

SVPCL 42 DISCOUNT

Aries Agro 130 20 to 22

Manaksia Ltd. 160 12 to 15


Porwal Autocomponents 75 DISCOUNT


Precision Pipes & Profiles 150 20 to 22

Macmillan India

We recommend a buy in the stock of Macmillan India at current market price. From the weekly chart of Macmillan, we note that it has been on a long-term downtrend from its April 2006 high of Rs 550. After declining almost 63 per cent from the April 2006 high, however, the stock found support at Rs 200 in early December 2007 and began to move up. During this short-term up move, the stock has the crossed the 21-day and 50-day moving average lines. The positive divergence in the daily momentum indicator supports this trend reversal. The weekly momentum indicator has also recovered from the oversold region. The daily moving average convergence divergence is progressively rising and is on the verge of entering the positive region. We see that the volume has been increasing for the past four trading sessions. All these are positive signals. On the downside, the immediate support for the stock is at Rs 200 and the next support is at Rs 180 levels. We expect the stock to penetrate the down trendline and move up to Rs 270 level in the short-term. The short-term investors can buy the stock with stop at Rs 216.

Via BL

Daily Technical Futures - Jan 1 2008

Daily Technical Futures - Jan 1 2008

Market Outlook - Jan 1 2008

Market Outlook - Jan 1 2008

US Market ends 2007 with a whimper

Nasdaq remains the clear winner in volatile FY 2007

US Market ended lower today, Monday, 31 December, 2007, the last trading day of FY 2007. Concerns about the overall health of the economy, which had taken a toll on the market for the whole year, continued even today. A relatively “stable” housing report also failed to cheer investors.

Indices lingered in the red right out of the gate. In the afternoon hours, they shed off most of their losses but going into close, sell-off accelerated. The Dow Jones industrial Average ended the day with a loss of 101 points at 13,265. The Nasdaq Composite Index, finished lower by 22 points at 2,652. S&P 500 finished lower by 10 points at 1,468.

Nine out of ten economic sectors posted losses today. IBM, AT&T and Exxon Mobil were the main Dow losers for the day.

For 2007, the Dow Jones Industrials average gained 6.4%, while the broader S&P 500 and the tech-heavy Nasdaq Composite gained 3.5% and 9.8%, respectively. Nasdaq was a clear winner, aided by Apple, Google and RIMM stocks.

Sector wise – Energy, Technologies and Utilities were the winners during FY 2007 while Financials remained the top loser. Housing market woes arising from mortgage related problems took a big toll on the sector. Citigroup weighed heavily on the sector with the stock drubbing almost 47% on a yearly basis.

November existing home sales data does not disappoint market

Among economic news that hit the wires today, the National Association of Realtors reports November existing home sales came in at a seasonally adjusted annualized rate of 5 million. This was in-line with economists' expectations. The reading marks a 0.4% increase month over month, but sales are still down 20% compared to last year.

IBM shares today lost almost 2% following a report that it's in talks to buy Israeli storage-technology company XIV for $300 million to $350 million.

Indian ADRs ended mixed today. MTNL and Tata Motors were the only two ADRs to register gains, gaining 3.8% and 1.8% respectively. Wipro Technologies remained the topmost loser shedding 2.3%.

Oil prices fell for the second consecutive day today. Monday, 31 December, 2007. But today’s fall was limited. Prices fell as dollar strengthened against its rival currencies for the first time in six sessions. Nevertheless, crude ended FY 2007 substantially higher by $35 or 57%. It was crude’s biggest yearly gain in five years.

The markets will be closed tomorrow in recognition of the New Year holiday. Investors will look for economic data to help set the tone of trading on Wednesday and for the New Year. The Commerce Dept.'s report on Construction Spending and the Institute for Supply Management's national survey of manufacturing conditions are the expected main reports.

Daily Trading Calls

Buy HDFC
CMP 2872, SL 2850, Target 2928

Buy Dhanush Tech (532903)
CMP347, SL 341, Target 365

Buy Deccan Aviation
CMP 276, SL 271, Target 286

Sell Cipla
CMP 213, SL 215, Target 208

Buy HCL Tech
CMP 331, SL 327, Target 336, 339

Low volumes, enjoy the music

Year's end is neither an end nor a beginning but a going on, with all the wisdom that experience can instill in us.

US stocks finished the final trading day of 2007 in the red, as lingering concerns over the economic slowdown sent shares of energy companies and miners lower.

Exxon Mobil and Freeport-McMoRan Copper & Gold led declines in energy and commodity producers, the year's best- performing industries. Amazon.com and EBay slipped after holiday Internet sales rose at the slowest pace on record.

The S&P 500 dropped 10 points, or 0.7%, to 1,468.36. The Dow Jones Industrial Average lost 101 points, or 0.8%, to 13,264.82. The Nasdaq Composite Index declined 22 points, or 0.8%, to 2,652.28.

Market breadth was negative. Some 1.15bn shares changed hands on the New York Stock Exchange (NYSE), the most ever on the last day of the year, according to Bloomberg. Trading was 19% less than the three-month average.

On the housing front, the number of existing homes sold in November inched moderately higher, according to the National Association of Realtors. The increase was expected by economists but still helped give some companies in the housing sector a lift.

On the corporate side, British newspaper The Observer said that Merrill Lynch could receive another infusion of capital from sovereign wealth funds. Billionaire investor Kirk Kerkorian's Tracinda Corp. is paying $684mn for a 35% stake in Delta Petroleum, an independent energy exploration company.

But, for the year all the three main US indices finished higher despite the housing sector meltdown and the subsequent credit market turmoil. Year-to-date, the Dow is up 6.4%, the S&P 500 is up 3.5% and the Nasdaq is up 9.8%, its biggest rally since 2003.

The S&P 500 has posted gains every year since 2002, advancing 67% over the past five years.

Concern about the credit crunch and a possible recession sent the S&P 500 down 3.8% in the fourth quarter, leaving it 6.2% below its record close on Oct. 9. The declined was the first for any fourth quarter in seven years.

The Dow reached a record high on Oct. 9, then fell more than 10% off its highs by November. Though the Nasdaq was the strongest of the three indexes, it never came close to the record it set in March of 2000.

US light crude oil for January delivery fell 2 cents to $95.89 a barrel on the New York Mercantile Exchange. Crude oil soared $34.93 a barrel in 2007 - a gain of 57% - and came close to the $100 a barrel mark in November.

Treasury prices rose, with the yield on the 10-year note falling to 4.03%, down from 4.07% on Friday. The dollar gained slightly against the euro and lost ground versus the yen. COMEX gold for February delivery fell $4.70 to $838.00 an ounce.

European stocks ended a half-session of trading slightly down, but finished the year with the first losses since 2002 on the back of nagging worries about the credit crunch and rising energy prices.

The FTSE 100 in London dropped 0.3% to 6,456.90 while the French CAC 40 shed 0.2% to 5,614.08 while the Dutch AEX finished flat 515.77. Many markets were closed, including those in Germany, Switzerland and Italy.

For the year, the pan-European Dow Jones Stoxx 600 index closed with a loss of 0.1%. Though Germany's DAX 30 rose 22%, most other major European stock markets finished with tepid growth, or no growth at all.

Markets across Asia are shut today on account of the new year holiday. But, Asian stocks trading in the US fell for a third day, on weak metal and energy prices. BHP Billiton and Posco paced the decline. The Bank of New York's Asia ADR Index lost 0.1% to 166.70.

Hong Kong stocks rallied yesterday in a curtailed session on China-related issues such as Air China. The Hang Seng Index rose 1.6% to 27,812.65, rising 39.3% for the full year.

The Nikkei in Tokyo dropped 11% in 2007 to close at 15,307.78. It was shut yesterday. Pakistani shares plummeted as trading resumed in Karachi following a three-day mourning period for former Prime Minister Benazir Bhutto, who was assassinated on Dec. 27.

Rangebound market expected

It was a day of modest gains as bulls signed off the year 2007 on a firm note. The benchmark Sensex opened with a positive gap touching an intra-day high of 20,484 missing the all time peak by just 14 points. However, after the trading steady for most part of the session 30-share Sensex closed at 20,286 adding 80 points and Nifty gained 58 points to close at 6,138.

The IT index was the only loser among the sectoral indices. The Consumer Durable index was the top gainer (up 5.2%), BSE FMCG index (up 2%) and BSE PSU index (up 2%). Even the Mid-Cap and the Small-Cap indices were in limelight both the indices were up over2% each.

Refinery stocks were in the limelight and closed with smart gains on expectations of petrol price hike in the near future. Oil marketing companies like HPCL, IOC and BPCL ended recording healthy gains.

Shares of Brigade Enterprise posted a flat listing at Rs395 versus an issue price of Rs390. However, the scrip lost momentum and finally ended 3% lower to Rs378. The company offered 16,624,720 equity shares of Rs10 each. The price band was fixed at Rs351 to Rs390 per equity share.

Brigade Enterprise is one of the leading real estate development companies based in Bangalore, primarily focused on the development of residential, commercial and hospitality properties in South India. Residential properties include integrated lifestyle enclaves and apartment buildings targeted towards middle income and high income customers. According to the company the funds raised are to be used for land acquisition and construction at ongoing projects, JP Morgan India, Enam Securities and ICICI Securities are the book running lead managers to the issue.

The scrip touched an intra-day high of Rs409 and a low of Rs365 and recorded volumes of over 47,00,000 shares on NSE.

eClerx started trading at Rs320 on BSE versus an issue price of Rs315. However, unlike Brigade Enterprises the scrip gained momentum as the day progressed and finally ended the day with gains of 42% to Rs448.

The company is a provider of data analytics and customized process solutions to global enterprise clients from offshore delivery centers in India. Portfolio of services comprises data analytics, operations management, data audits, metrics management and reporting services.

The issue was subscribed 26.30 times. JM Financial Consultants and Edelweiss Capital provided assistance to the company to raise Rs1,010mn via this public issue. The scrip has touched an intra-day high of Rs390 and a low of Rs320 and has recorded volumes of over 6,00,000 shares on NSE.

NTPC gained 4% to Rs250 after reports stated that t he company is in negotiations with Bharat Forge to set up a joint venture to produce components for power plants. The scrip touched an intra-day high of Rs252 and a low of Rs241 and recorded volumes of over 66,00,000 shares on NSE.

ONGC advanced 1% to Rs1235 according to reports the company would put a slew of conditions, including land free of cost from AP Government and fiscal incentives, for setting up the Rs256bn export-oriented refinery-cum-petrochemical project at Kakinada. The scrip touched an intra-day high of Rs1245 and a low of Rs1229 and recorded volumes of over 11,00,000 shares on NSE.

Bharti Airtel surged by over 5.5% to Rs996 as reports stated Bharti Infratel, a wholly owned subsidiary of Bharti Airtel agreed to divest ~7.5-9% to a clutch of international investors for Rs40bn. The company also signed US$150mn deal with China Huawei Technologies to set up mobile phone network in Sri Lanka according to reports. The scrip touched an intra-day high of Rs1023 and a low of Rs960 and recorded volumes of over 44,00,000 shares on NSE.

Bilcare rallied by over 12% to Rs1700 after reports stated that the company’s Singapore, subsidiary of Bilcare raised US$90mn through issue of 4% convertible bonds, due for maturity in 2012. The scrip touched an intra-day high of Rs1797 and a low of Rs1525 and recorded volumes of over 49,000 shares on NSE.

What the FIIs are doing

FIIs were net buyers of Rs5.16bn (provisional) in the cash segment on Monday while the local institutions sold shares worth Rs4.43bn. In the F&O segment, foreign funds were net sellers of Rs11.2bn.

On Friday, FIIs were net buyers of Rs11.41bn in the cash segment. Mutual Funds were net buyers of Rs7.16bn on the same day.

Stocks in News:

HDFC has agreed to sell 7.15 per cent stake in its life insurance joint venture - HDFC Standard Life Insurance Company - to its foreign partner, Standard Life (Mauritius Holdings), at a pre-agreed price.

Videocon Industries, Jindal Photo Ltd., Indo Rama Synthetics and National Buildings Construction Company (NBCC), are in the fray for entering the thermal power generation business.

Pfizer has got the approval of its board to transfer four of its consumer health brands - mouth-wash Listerine, cough-syrup Benadryl, skin-cream Caladryl and cough-suppressant Benylin - to Johnson & Johnson for a consideration of Rs214.85 crore.

There are reports state IOC has maintained $2-3 higher refining margin during the first nine months.

Shreyas Intermediates has received an order worth Rs30 crore. The company manufactures CPC crude and other pigments used in dye and dye intermediates and has tied up with German Luvomax to add value to the latter’s rubber master batches by injecting blue colour into them.

Ranbaxy is being accumulated reportedly on the assumption that the company may formalise its plan for hiving off its drug discovery research operation soon.

Applying for Reliance Power IPO ?

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Reliance Power IPO - Crisil gives 4/5

Proposed public issue of 260 million equity shares of face value Rs 10 targeted at an issue size in the range of INR 10.5 to 11.5 billion

CRISIL has assigned a CRISIL IPO Grade '4/5' (pronounced 'four on five') to the proposed initial public offer of Reliance Power Ltd (RPower). This grade indicates that the fundamentals of the issue are above average, in relation to other listed equity securities in India.

The grading assigned reflects CRISIL's view that strong demand for power in India will catalyse regulatory facilitation for private participation in the power sector over the medium to long term. In this scenario, early movers like RPower will benefit from attractive business opportunities that are likely to come about as a result, especially if they achieve high levels of financial capability, as is likely for RPower after its proposed IPO. The grading also reflects the Reliance Anil Dhirubhai Ambani Group's commitment that RPower will be the sole repository of the Group's economic interest in the power generation segment. The grading is tempered by the fact that RPower is planning to put up capacity, on a scale and within a time frame, never achieved in India before and therefore it is likely to face significant implementation challenges. The grading also reflects the fact that power generators in India will have to depend on SEBs for off take over the short-to-medium term and that their return will be subject to the regulatory oversight in case of Two-part tariff based Projects such as Rosa I (600 MW) and Rosa II (300 MW). Also, returns on the projects won through the competitive bidding route may not be substantially higher due to competition.

About the company
Reliance Power Ltd. is a part of the Reliance ADA Group and has been established with the objective to develop, construct and operate power projects both domestically and internationally.

RPower does not have any power plant in operation as of now. The company proposes to install 28,200 Mega watt (MW) generation capacity over the next 8 years. Of the total proposed capacity, six projects totalling 7060-MW (Butibori, Shahapur coal, Sasan, Rosa-I &II and Urthing Sobla) are in various stages of implementation. Commercial operations of the first unit of proposed project, Rosa-I (2*300 MW), is expected by December 2009. All the six identified projects would be executed through wholly-owned subsidiaries of RPower, except Urthing Sobla and Butibori, where RPower would hold 80 percent stake and 74 percent stake, respectively.

Besides, the aforementioned identified projects which are in advanced stages of implementation, RPower also proposes to set up seven more generation projects, which are in developmental stage. These include the gas-fired Dadri (7,480 MW) and Shahapur gas project (2,800 MW); the coal-fired MP Power project (3,960 MW) and Krishnapatnam (4,000 MW); three run-of-the-river hydroelectric projects, Siyom (1,000 MW), Tato II (700 MW) and Kalai II (1,200 MW).

BSE Bulk Deals to Watch

31/12/2007 532929 BRIGADE CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LTD B 670000 388.95 31/12/2007 532929 BRIGADE ABN AMRO BANK NV LONDON BRANCH S 594054 390.00
31/12/2007 500027 ATUL LTD. HSBC FINANCIAL SERVICES MIDDLE EAST LTD S 428110 104.84
31/12/2007 504000 ELPRO INTERN HSBC FINANCIAL SERVICES MIDDLE EAST LTD S 32357 650.00
31/12/2007 504000 ELPRO INTERN JUPITER ASSET MANAGEMENT LIMITED B 38300 650.00
31/12/2007 526717 GOPALA POLYP INDUSTRIAL DEVELOPMENT BANK OF INDIA LTD. S 100000 13.28
31/12/2007 526717 GOPALA POLYP IDBI LTD S 100000 13.28
31/12/2007 532160 GUJ ST FN CO GSFC STAFF CO OP CREDIT SOC S 214300 29.66
31/12/2007 523218 KILBURN OFFI IDBI LTD S 75000 17.18
31/12/2007 530543 MARG CONSTRU MERILL LYNCH CAPITAL ESPANA B 140000 606.79 31/12/2007 532407 MOSCHIP SEMI UTI INDIA TECHNOLOGY VENTURE UNIT SCHEME S 385000 35.09 31/12/2007 532407 MOSCHIP SEMI UTI INDIA TECHNOLOGY VENTURE UNIT SCHEME S 352211 36.44
31/12/2007 513414 SUJANA METAL GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD S 472500 44.67
31/12/2007 532746 UNITY INFRA KOTAK MAHINDRA U K LTD B 75000 1034.93 31/12/2007 532746 UNITY INFRA DEUTSCHE SECURITIES MAURITIUS LIMITED S 113000 1037.92

NSE Bulk Deal Watch

31-DEC-2007,ALOKTEXT,Alok Industries Limited,BAJAJ ALLIANZ LIFE INSURANCE CO. LTD,BUY,1500000,104.44,-
31-DEC-2007,HINDOILEXP,Hind. Oil Exploration ,CITIGROUP GLOBAL MARKET MAURITIUS,BUY,502400,164.77,-
31-DEC-2007,MAHSEAMLES,Maha Seamless Ltd,J M FINANCIAL MUTUAL FUND,BUY,400000,626.20,-
31-DEC-2007,MICROTECH,Micro Technologies (India,SERUM INSTITUTE OF INDIA LTD.,BUY,100098,324.98,-
31-DEC-2007,TV-18,TV 18 India Limited,TV18 SENIOR PROFESSIONAL TRUST,BUY,820000,490.00,-
31-DEC-2007,TV-18,TV 18 India Limited,TV18 SENIOR PROFESSIONAL TRUST,SELL,40000,533.94,-
31-DEC-2007,TV-18,TV 18 India Limited,NETWORK 18 FINCAP PVT LTD,SELL,820000,490.00,-
31-DEC-2007,ATUL,Atul Ltd.,HSBC FINANCIAL SERVICES(MIDDLE EAST) LIMITED,SELL,254200,104.78,-
31-DEC-2007,ELECTCAST,Electrosteel Cast Ltd.,BARCLAYS CAPITAL MAURITIUS LIMITED,SELL,1893373,90.70,-
31-DEC-2007,EVERONN,Everonn Systems India Lim,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,SELL,140264,1103.06,-
31-DEC-2007,HINDOILEXP,Hind. Oil Exploration ,HARDY OIL AND GAS LIMITED,SELL,1098000,164.21,-
31-DEC-2007,KPIT,KPIT Cummins Infosystems,DEUTSCHE SECURITIES MAURITIUS LIMITED,SELL,435950,130.61,-
31-DEC-2007,NIITLTD,NIIT Limited,HSBC FINANCIAL SERVICES(MIDDLE EAST) LIMITED,SELL,1200000,151.00,-
31-DEC-2007,SANGHIPOLY,SANGHI POLYESTER LTD,INDUSTRIAL DEVELOPMENT BANK OF INDIA,SELL,760079,11.60,-

Hmm, what are those deals on TV18 ?

Transformers Sector

Transformers Sector

Gold ends year 31% higher

Gold drops for first time in six sessions as dollar strengthens

Precious metals ended mixed on Monday, 31 December, 2007 as gold slipped but silver gained. The precious yellow metal dropped for the first time in six sessions as dollar strengthened against its rival currencies. Nevertheless, gold witnessed the greatest annual gain in twenty eight years by gaining $200/ounce (31%) in FY 2007.

Gold generally moves in the opposite direction of the U.S. currency. Gold, as a dollar-denominated commodity, suffers from dollar strength.

Comex Gold for February delivery slipped $4.7 (0.6%) to close at $838 an ounce on the New York Mercantile Exchange on Monday, 31 December. Last week, gold prices gained 3.3% ($27.3/ounce). On, 7 November, prices had touched $848/ounce. It was the highest price after a record $873 on 21 January, 1980.

Comex Silver futures for March delivery rose 2.5 cents (0.2%) to $14.92 an ounce. Prices touched 26 year high on 7 November, after reaching $16.275. The metal has climbed 15.5% this year. The metal also has gained for seven straight years.

In 2006, silver had jumped 46% while gold gained 23%.

In the currency market today, the dollar index, which tracks the value of the greenback against a basket of other major currencies, rose for the first time in six days, up 0.5% to 76.695. The dollar strengthened against the euro today after an industry report showed sales of previously owned homes unexpectedly increased last month.

Gold has traditionally been used as a safe-haven asset against rising inflation. Investor sentiments are boosted by the fact that gold and silver are alternate sources of good investment in the face of declining dollar and rising energy prices. Rising crude increases inflationary pressures and vice versa. Crude is 57% higher on a yearly basis. On the other hand strong dollar reduces the appeal of the metal as alternate source of investment.

Gold had climbed 31% this year as lower interest rates had sent the dollar tumbling, and crude-oil prices rose to a record. Dollar is 8.7% down against the euro this year.

The Fed has reduced overnight lending rates by 1% in FY 2007. On 11 December, Federal Reserve lowered the federal funds rate by a quarter-point to 4.25%. The Fed also lowered its discount rate, the interest it charges on direct loans it makes to banks, by a quarter-point to 4.75%.

Before 11 December, Federal Reserve had cut the fed funds rate by a quarter-point to 4.50% on 31 October, 2007. Prior to that, Federal Reserve had cut interest rates by half percentage point on 19 September, 2007. With these interest rate cuts, dollar has been tumbling down. Market anticipates that there will be more rate cut in the coming year.

At the MCX, gold prices for February delivery closed lower by Rs 46 (0.4%) at Rs 10,598 per 10 grams. Prices rose to a high of Rs 10,720 per 10 grams and fell to a low of Rs 10,566 per 10 grams during the day’s trading.

At the MCX, silver prices for March delivery closed Rs 10 (0.05%) higher at Rs 19,463/Kg. Prices opened at Rs 19,498/kg and went to a high of Rs 19,633/Kg during the day’s trading.

Gold might rally to all-time highs in the first quarter in FY 2008 as higher oil prices and a weaker dollar will continue to boost demand.

RNRL, IFCI & REL January 2008 futures at premium

Turnover in F&O segment declines

Nifty January 2008 futures were at 6156 at premium of 17.40 points as compared to spot closing of 6138.60.

The NSE's futures & options (F&O) segment turnover was Rs 46,186.73 crore, which was lower than Rs 50,436.85 crore on Friday, 28 December 2007.

Reliance Natural Resources (RNRL) January 2008 futures were at premium, at 185.25, compared to the spot closing of 182.55.

IFCI January 2008 futures were at premium, at 93.90, compared to the spot closing of 93.15.

Reliance Energy (REL) January 2008 futures were at premium, at 2179.90, compared to the spot closing of 2135.45.

In the cash market, the S&P CNX Nifty gained 58.90 points or 0.97% at 6138.60.

Crude remains almost unchanged

Crude prices gain 57% in FY 2007 marking the biggest yearly gain in five years

Oil prices fell for the second consecutive day today. Monday, 31 December, 2007. But today’s fall was limited. Prices fell as dollar strengthened against its rival currencies for the first time in six sessions. Nevertheless, crude ended FY 2007 substantially higher by $35 or 57%. It was crude’s biggest yearly gain in five years.

For the day ending Monday, 31 December, 2007, crude-oil futures for light sweet crude for February delivery closed at $95.98/barrel (lower by $0.02/barrel) on the New York Mercantile Exchange. Prices are 57% higher than the year before.

In the currency market today, the dollar index, which tracks the value of the greenback against a basket of other major currencies, rose for the first time in six days, up 0.5% to 76.695. The dollar strengthened against the euro today after an industry report showed sales of previously owned homes unexpectedly increased last month.

Also pressuring prices were forecasts for mild temperatures on the U.S. East Coast through mid-January.

Brent crude oil for February settlement today fell 3 cents to $93.85 on the London-based ICE Futures Europe exchange. The London benchmark has risen 54% this year, the most since 1999 when prices more than doubled.

Natural gas too remains very little changed

Natural gas futures were little changed as milder weather forecast in parts of the U.S. will reduce demand to heat homes and businesses. Gas for February delivery rose 1.6 cents (2.2%) to $7.402 per million British thermal units.

Against this backdrop, January reformulated gasoline gained 1.61 cents to $2.4758 a gallon and January heating oil rose 0.74 cent to $2.6444 a gallon.

At the MCX, crude oil for January delivery closed at Rs 3,763/barrel, lower by Rs 18 (0.5%) against previous day’s close. Natural gas for December delivery closed at Rs 296.3/mmtbu, higher by 7.1/mmtbu (2.4%).

Members of the OPEC left production targets unchanged at the 5 December meeting in Abu Dhabi. The group, which produces 40% of the world's oil, will review output at a 1 February, 2008 meeting in Vienna.

As per EIA, global oil markets will likely remain tight through 2008 and monthly average oil prices are expected to near $85 per barrel over the next year. The IEA, an adviser to 27 nations, said global demand in 2008 will rise 2.5% to 87.8 million barrels a day.

The New York and London markets will be closed tomorrow for New Year's Day.