Positive opening for Sensex

After two consecutive days of losses, global indices traded in green wherein US indices recorded strong overnight gains of over 1% each, however the European markets (FTSE 100) on Thursday fell by close to 1%. In today’s trade, the major Asian indices were trading in positive zone with the gains in the range of 0.54%-1.82% each, with China's Shanghai Composite gaining the most. While Singapore Nifty was trading 48 points higher its previous day’s settlement price. Such positive and strong global cues may help Sensex to open higher and trade strongly through the day. With major corporates announcing their Q2 numbers today, markets to following the results closely. Among the local indices, the Nifty could test the 5050- 5100 range on the up side while on the up side it could find support at 4950 and 4900. The Sensex is likely to get support at 16606 and may face resistance at 17000.

On the back of rising optimism on the Q2 corporate earnings front and and better-than-expected results announced by four component of the indices', Dow managed to regain the significant 10000 level and closed with massive gains of 132 points or 1.3% higher at 10081, while S&P 500 and Nasdaq jumped by 1.06% and 0.68% respectively.

Among the Indian ADRs trading on the US bourses Infosys , Dr Reddy's, ICICI Bank and HDFC Bank closed with gains of 0.64%-1.76%. While rest all ADRs that includes Satyam, MTNL, Tata Motors, Wipro, VSNL and Rediff ended the day with the losses in the range of 0.45%-8.24% each, with Satyam falling the most.

In the commodity space, Crude oil prices fell marginally, with the Nymex light crude oil for November series declining by $0.18 to close at $ 81.19 a barrel. In the metals space, the Comex Gold for December series slumped by $5.90 to settle at $1058.60 a troy ounce, while Comex Silver for December series fell by $0.28 to settle at $17.55 a troy ounce.

Daily trend of FII/MF investment in equities

On October 22, 2009, FIIs were the net sellers of the Indian Stocks in the tune of Rs391.70 crore (with the gross purchase of Rs2758.30 crore and gross sales of Rs3149.90 crore). While the Domestic mutual funds mutual funds, on October 21, 2009, were the net seller of the stocks in the tune of Rs558.00 crore (with gross purchase of Rs680.10 crore and gross sales of Rs1238.10 crore).

Headlines for the day

Videocon offers access to DTH via DVD player

Petronet to buy 10% in Dahej project

Jubilant Organosys to sell non-core businesses

Credit growth at a 12-year low of 10.75%

Satyam's virtual pool staff to get no pay after Dec 18

HCC bags Rs167 crore water supply project in Gujarat

Events for the day

Major results: HCC, SKF India, BHEL, Bharat Forge, Birla Corporation, Dr Reddy, Edelwiess Capital, Glaxo, ITC, IDFC, Indian Bank, NTPC, MMTC, Titan, JSW Steel, ING Vysaya Bank, Zee Entertianment, Century Textile

Major corporate action: Arvind Remedies ex-date for dividend, stock spilt of Birla Cotsyn from Rs10 to Re1

Market may gain on positive Asia

The market may gain on positive Asia after US stocks rose overnight on better than expected result. Congress party-led alliance's clean sweep in elections in Maharastra and Arunachal Pradesh may provide support to market.

Ruling Congress party-led alliance won two state polls on Thursday and were set to form the government in a third, a result that gives more room for the alliance to push economic reforms. Elections were held last week in Maharashtra, northern Haryana and Arunachal Pradesh in polls seen as a major test for the Congress coalition after a strong victory in central polls in May.The party retained power in Maharashtra and Arunachal Pradesh, and were expected to hold on to power in Haryana.

Energy major Reliance Industries will be in action as company commenced its initial arguments in the high-profile dispute on Tuesday, saying a private agreement signed between the Ambani brothers is not binding on the company and it can sell gas only at the price set by the government.

Anil Ambani's Reliance Natural Resources claims the contract is valid and wants the court to direct Reliance Industries to supply it with 28 mmscmd of gas for 17 years at almost half the government-set price of $4.2 per mmBtu. The Supreme Court will resume hearing the case next Tuesday, with Reliance Industries expected to conclude its initial arguments by Thursday. The court will then hear arguments by Reliance Natural, following which it will consider a petition by the government to become a party to the dispute.

India's largest power maker by sales Bharat Heavy Electricals unveils its Q2 result today. Strong project execution, fall in input costs and lower employee costs are seen driving growth in Bhel's top line and bottom line in Q2 September 2009. Metal prices were sharply on year on year basis which will help boost margins of the power equipment major. Further, Bhel had provided Rs 116 crore for wage hike provisions in Q2 September 2008 which had pulled down profit in that quarter. The margins will rise with no such provision in Q2 September 2009.

A total of seven brokerages expect a between 10.8% to 32.4% growth in Bhel's net profit at between Rs 681.50 crore to Rs 815.40 crore in Q2 September 2009 over Q2 September 2008. Their expectations peg a between 24.8% to 28% growth in revenue at between Rs 6667.70 crore to Rs 6838.60 crore in Q2 September 2009 over Q2 September 2008. Bhel unveils Q2 September 2009 results on Friday, 23 October 2009.

India's largest cigarette maker by sales ITC unveils its Q2 result today. Higher volumes and price hike in the mainstay cigarette business is seen driving bottom line and top line growth of ITC in Q2 September 2009. However, the hotels business was hit by swine flue and margins of the FMCG business were under pressure due to higher sugar and wheat prices.

A total of five brokerages expect a between 8.3% to 19.2% growth in ITC's net profit at between Rs 869.50 crore to Rs 956.50 crore in Q2 September 2009 over Q2 September 2008. Their expectations peg a between 6% to 10.8% growth in sales at between Rs 3989.10 crore to Rs 4170.10 crore in Q2 September 2009 over Q2 September 2008.

Dr Reddys Laboratories, NTPC, Punj Lloyd, IDFC, JSW Steel, Zee Enterprises, Zee News, Edelweiss, 3i Infotech, GSK Consumer, Pantaloon Retail, Titan Industiries, TVS Motor Company Ajmera Realty, Alphageo, Bata India, Bharat Forge, Birla Corp, Century Textiles, Compact Disc, Core Projects, Cyber Media, Electrosteel Castings, Four Soft, Gateway Distriparks, Gemini Communication, Graphite India, Greaves Cotton, Gujarat State Petronet, Indian Bank, ING Vysya Bank, Mirc Electronics, Tata Sponge, Technocraft, Tips Industries, Titagarh Wagons, Welspun India among other will announce their Q2 September 2009 result today.

Inflation based on the wholesale price index (WPI) rose 1.21% in the year through 10 October 2009, higher than previous week's annual rise of 0.92%, date released by the government on Thursday showed. Within the WPI, the food articles index rose 13.34%. The government revised upwards inflation for the year through 27 August 2009 to a much smaller fall of 0.21% from an estimated 0.95% decline.

The Prime Minister's economic advisory council said on Wednesday that it sees inflation at around 6% by the end of the current fiscal year to March 2010. Faster industrial output growth and rising inflationary pressures have strengthened case for an end to the RBI's accommodative monetary stance next year. Industrial output grew at its fastest pace in 22 months in August 2009 at 10.4%.

The RBI pumped in massive liquidity in the banking system in the past one year or so to help revive the domestic economy in the aftermath of the global financial crisis. While as exit from the loose monetary policy is imminent, speculation on the bourses is the timing of the exit policy. The RBI is expected to keep its benchmark lending and borrowing rates on hold at a quarterly monetary policy review on 27 October 2009.

Stock and sector-specific activity may dominate trade on the bourses in the coming days based on expectations on Q2 September 2009 results. Auto firms are seen reporting strong Q2 results on strong volume growth and on lower input costs. Lower interest rates and pay hike for government employees has boosted auto sales this year after last year's slowdown in demand. Government employees have started receiving the balance 60% of their wage arrears as per the recommendations of the VIth Pay Commission.

Cement firms, too, are seen reporting good Q2 numbers on the back of volume growth, higher realisation and decline in costs like imported coal. Metal firms are seen reporting fall in net profit due to a sharp fall in metal prices on year-on-year basis.

Fall in volumes in the commercial property segment and lower realisations in both commercial and residential property segments, will pull earnings of realty firms lower.

Banks are seen reporting a sedate growth in core lending amid sluggish credit offtake. On the flip side, PSU banks will benefit from treasury gains amid volatility in prices of government securities during the quarter.

Strong growth in new subscriber additions will aid topline growth of telecom firms. But falling average revenue per user (ARPU) and revenue per minute due to intense competition will cap bottom line growth.

Asian shares nudged higher on Friday on the back of upbeat earnings reports from the United States and Asia while the dollar resumed a broad slide after a Fed official indicated U.S. interest rates would remain low. The key benchmark indices in China, Hong Kong, Japan, South Korea, Singapore and Taiwan rose by between 0.6% to 1.81%.

US markets rallied on Thursday as investors cheered some better than expected earnings and shrugged off a disappointing jobless report. Financials led the rally after travelers reported its profit more than quadrupled. The Dow gained 131.95 points, or 1.3%, to 10,081.31. The S&P 500 index rose 11.51 points, or 1.1%, to 1,092.91. The Nasdaq rose 14.56 points, or 0.7%, to 2,165.29.

In the day's economic news, jobless claims rose 11,000 to a seasonally adjusted 531,000 last week, more than expected. An index of leading economic indicators rose 1% in September, touching a two-year high and more than the 0.8% expected.

Closer home, the key benchmark indices extended losses for the third straight day on weak global markets and rise in headline inflation above the 1% mark on Thursday. The BSE 30-share Sensex fell 219.43 points or 1.29% to 16789.74 on that day.

As per provisional data on NSE, foreign funds sold shares worth Rs 499.28 crore and domestic funds sold shares worth Rs 18.07 crore on Thursday.

The supply of paper by Indian firms appear limitless, raising concerns that additional share sales will suck liquidity from the secondary equity market. As per reports, Indian firms have garnered about $9 billion (Rs 32,400 crore at the current exchange rates) through sale of shares and convertible bonds to institutional buyers since April 2009. Indian companies are taking advantage of a surge in liquidity to recapitalize and fund capital expenditure after being starved of cash last year.

Most of these companies - from industries ranging from liquor and spirits to infotech - issued equity shares to a select group of investors by way of qualified institutional placement or QIP. If the enabling resolutions passed by the companies are any indication, Indian firms are gearing up to raise $15 billion (Rs 69,427 crore) in the next six months. The list includes Hindalco (Rs 2,900 crore), JSW Steel ($1 billion), India Cements ($100 million), Essar Oil ($2 billion), Tata Steel (Rs 5,000 crore), Jet Airways ($ 400 million) and Bharat Forge ($150 million).

Unlisted Reliance Infratel announced on 22 September 2009 its intention to raise Rs 5,000 crore from the primary market. Divestment of state-run firms by the government may also increase the supply of paper in the market.

The government on Monday approved stake sales in state-run power producer NTPC and another unlisted power firm Satluj Jal Vidyut Nigam which reflects the country's resolve to speed up reforms and raise more resources for social schemes. On Monday, Trade Minister Anand Sharma said the Union Cabinet had approved a 5% stake sale in NTPC, and 10% in, an unlisted power producer. On Friday, 16 October 2009, Prime Minister Manmohan Singh said many state-run firms are eager to list their shares in the stock market as it would help unlock their value.

The government has approved a follow-on public offering of 20% of state run Steel Authority of India, the steel minister said on Wednesday, 21 October 2009. The Government of India owns nearly 86% of Sail.

Daily News Roundup - Oct 23 2009

Infosys co-founder and chairman, Narayana Murthy, sells company’s shares worth ~US$37mn to start a VC fund. (BL)

Tata Steel and MMTC forms a JV for acquisition, development and operation of mines and procession of minerals and metals. (ET)

Pfizer approaches several Indian drug makers for possible alliances. (ET)

BHEL to set-up solar voltaic plant in Hyderabad for Rs5bn. (FE)

JP Associates and JSW Steel urge RBI to relax rules governing repayment of foreign borrowings. (ET)

Wipro bags 10-year outsourcing contract for Delhi airport. (BS)

Aditya Birla Group inks pact for Rs15bn Orissa port. (BS)

Essar Group firm raises Rs42.8bn through private placement of its zero-coupon bonds. (BS)

BSNL and MTNL are planning to set-up a SPV with Delhi-based Vavasi Group to participate in JV for Russian and western European telecom operations. (ET)

Government defers decision on Jet Airways proposal to raise US$400mn. (ET)

MTNL shortlisted for Zambia’s Zamtel. (ET)

Petronet LNG to buy 10% in Dahej project (BS)

Jubilant Organosys to raise Rs5bn through equity and related instruments and hive-off its application polymers and consumer products divisions. (FE)

Rico Auto facing daily production loss of 25%. (BS)

KEC International bags orders worth Rs4.7bn. (FE)


Inflation for the week-ended October 10 touched a 20-week high of 1.21%. (BS)

DoT comes under CBI scanner for alleged ‘criminal conspiracy’ on award of telecom licences in 2008. (ET)

RBI has asked banks to stop relying on bulk deposits. (ET)

Finance Ministry has issued a notification to scrap the 70-80% import duty on all varieties of rice. (ET)

Centre has replaced statutory minimum price (SMP) for sugarcane with a higher fair & remunerative price (F&RP). (ET)

Government has cleared 26 FDI proposals worth Rs13.6bn. (BS)

Pick what you like!

Part of the secret of success in life is to eat what you like and let the food fight it out inside.

The market is poised to open strong after a three-day slide. We just hope there are no post-lunch hiccups as has been the case in recent times. This week’s fall has come on lower volume and turnover. Technical and derivative indicators do suggest some signs of fatigue after a seven-month rally. However, the overall trend remains upbeat. What we are witnessing is, hopefully, just a brief period of consolidation. So have patience. Endure the current choppy phase and gains are bound to come in future.

The Dow finished up more than 130 points and the Nasdaq staged a late turnaround. Asian markets have gained 1-2%.

Inflation has started inching higher though the stimulus steps may not be reversed anytime soon. Interest rates will be left unchanged next week though the RBI could alter its tone from dovish to a little hawkish.

We wouldn’t want to spoil the party for the Congress. Despite its back-to-back landslide wins (LS and Assembly), one wonders if reforms will get the necessary attention. With opposition in dire straits, we hope the Congress doesn’t get complacent. For now though, the Grand Old Party is firmly in driver’s seat.

FII flows will continue to play a key role. Another positive is that the leverage is pretty low. As Nirmal Jain, Chairman, India Infoline expressed in an article in The Economic Times, the EPS, albeit a different one, of the market is up. The E or Economy is gathering pace. The P or the Political backdrop is getting better. The latest triumph of the Congress in the state polls underlines this trend. Finally, the S or the Sentiment has staged an amazing turnaround. Risk-reward is favourable for the bulls.

Results Today: 3i Infotech, Bata India, Bharat Forge, BHEL, Birla Corp., Century Textiles, Dr. Reddy's, Edelweiss, Gateway Distriparks, GSK Consumer, Greaves Cotton, Gujarat State Petronet, HCC, ITC, Indian Bank, IDFC, ING Vysya Bank, JSW Steel, Kirloskar Oil Engines, MMTC, Mirc Electronics, NTPC, Pantaloon Retail, Punj Lloyd, SKF India, Swaraj Engines, Titan, TVS Motor, Welspun India, Zee Entertainment and Zee News.

FIIs were net sellers in the cash segment on Thursday at Rs4.99bn on a provisional basis. The local funds were net sellers at Rs180.7mn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net sellers at Rs14.21bn. On Wednesday, the foreign funds were net sellers of Rs3.92bn in the cash segment. Their net investments in Indian stocks this year has crossed $14bn. Mutual Funds were net sellers at Rs5.58bn on Wednesday.

Blue chip US stocks closed higher on Thursday, as better-than-expected results from four components pushed the Dow Jones Industrial Average above 10,000 again. The Dow gained 132 points, or 1.3%, closing at 10,081.31. The S&P 500 index rose 11 points, or 1%, to 1,092.91. The Nasdaq Composite rose 14 points, or 0.7%, to 2,165.29.

US stocks dipped in early trade, before managing to rebound in late morning. Gains were broad based, with 26 of 30 Dow stocks rising, including 3M, McDonald's, AT&T and Travelers, all of which reported better-than-expected results.

Travelers jumped almost 8% and was one of many financial stocks that gained on the day. The KBW Bank index rose 3.4%.

US stocks have been fluctuating over the last week, with the Dow topping and giving up the 10,000 level and the S&P struggling around 1,100. Both major indexes, as well as the Nasdaq, are at nearly one-year highs.

US stocks tumbled on Wednesday after influential analyst Richard Bove of Rochdale Securities cut his rating on Wells Fargo, sparking a steep selloff in the banking sector. But the selloff proved to be short lived, with investors again using the opportunity to buy on the dips, as has been the trend for months.

US stocks have been on an upswing since bottoming in March at the low point of the financial market crisis. Since hitting a more than 12-year low on March 9, the S&P 500 has risen just short of 60% as of Wednesday's close. Any declines in the period have been moderate, in the 3% to 5% range.

Obama administration "pay czar" Kenneth Feinberg called for the seven biggest federal bailout recipients to cut in half total compensation for their top executives. Additionally, the Federal Reserve proposed a broad overhaul of pay policies at 28 of the largest US banks. The review is part of its effort to temper some of the triggers to the risk taking that exacerbated the credit crisis.

Dow component Travelers said its quarterly profit more than tripled, easily topping analysts' estimates. The insurer also lifted its full-year forecast to a profit of between $5.30 and $5.50 per share. Shares jumped 7.7%.

Fellow Dow component AT&T reported a better-than-expected third quarter profit thanks to the impact of Apple's iPhone, for which it has been the exclusive carrier. Wireless revenue jumped 10% in the quarter. Shares gained 0.6%.

Dow component McDonald's reported higher third-quarter earnings that topped estimates on weaker third-quarter revenue that missed estimates. Shares rose 2%.

3M, also a Dow component, said third-quarter earnings and revenue fell from a year ago, but both were above analysts' estimates. Shares gained 3.2%.

Merck, the fifth Dow component to report Thursday morning, said its earnings and revenue rose from a year ago and topped estimates. Shares of the drugmaker were barely higher.

So far, 167 companies, or 33% of the S&P 500, have reported results. Profits are currently on track to have fallen 19.2% versus a year earlier, according to the latest from Thomson Reuters. Revenue is expected to have dropped over 10% from a year ago.

Microsoft launched the newest version of its operating system, Windows 7. The software titan, a Dow component, is hoping that users who have been running XP for years will switch to the new system - and forgive it for the disappointing performance of Windows Vista in 2007.

Microsoft reports quarterly results on Friday.

Around 531,000 Americans filed new claims for unemployment last week, down from 520,000 the previous week. Economists were expecting a bigger drop, to 515,000. Continuing claims, a measure of those who have been receiving benefits for a week or more, fell to 5.92 million from 6.02 million in the previous week. Economists were expecting claims to fall to 5.97 million.

Separately, the index of leading economic indicators (LEI) rose 1% in September after rising a revised 0.4% in the previous month. Economists thought it would rise 0.8%.

The US Federal Housing Finance Agency's housing price index fell 0.3% in September after rising 0.3% in August. Economists thought it would rise 0.3%.

Treasury prices tumbled, raising the yield on the 10-year note to 3.42% from 3.38% late on Wednesday.

The dollar fell against the euro, weakening again after it fell to a 14-month low. The dollar gained versus the yen. The dollar had risen in the morning, pressuring dollar-traded commodity prices. Prices remained lower in the afternoon, even as the dollar turned mixed.

US light crude oil for December delivery fell 18 cents to settle at $81.19 a barrel on the New York Mercantile Exchange, edging off a one-year high.

COMEX gold for December delivery fell $5.90 to settle at $1,058.60 an ounce. Gold has surpassed records repeatedly this month due to the weak dollar and longer-term worries about inflation.

It was the third straight day of losses for the Indian markets on Thursday. The slide was led by heavy offloading in the Realty, Capital Goods, Banking and the Metals stocks. Even the Mid-Cap and the Small-Cap stocks were beaten down badly

Heavyweights like ICICI Bank, Reliance Industries, L&T and SBI witnessed immense selling which dragged the NSE Nifty to shut below 5,000 and the BSE Sensex fell below 17,000.

Negative cues from the international equity markets further dampened the sentiments on Dalal-Street. Market players further intensified selling on the bourses after the Nifty broke below itsmedium term trend line, which has acted as strong support for the indexsince March 2009. Another notable factor is that the index has closed below its 26-DMA. The immediate support for the Nifty is seen at around 4910-4920 levels.

On Thursday, the BSE Sensex fell 219 points at 16,789 after touching a high of 17,031 and a low of 16,721. The index opened at 17,031 against the previous close of 17,009. The NSE Nifty fell 75 points to shut shop at 4,988.

In Asia, the Nikkei in Japan ended lower by 0.7% at 10,267, while Australia's S&P/ASX ended lower by 0.5% at 4,812. Shanghai SE Composite in China ended lower by 0.6% at 3,051 and Hang Seng index in Hong Kong was down 0.5% to end at 22,210.

In Europe, stocks were in the red. The FTSE in the UK was down 1.4%, The DAX in Germany was down 1% at 5,737 and the CAC 40 index in France slipped 1.5%.

Coming back to India, among the BSE sectoral indices, the Realty index was the top loser, shedding 4.5%, followed by the Capital Goods index that was down 2.7% and the BSE Bankex index was down 2%. Even the BSE Mid-Cap index slipped 2% while the BSE Small-Cap index was down 2%.

On the other hand, BSE FMCG index gained 1% and the BSE IT index added 0.8%.

Among the 30-components of Sensex, 23 stocks ended in the red and 7 ended in the positive terrain. Among the major laggards were JP Associates, DLF, ICICI Bank, L&T, Tata Motors and Reliance Infra.

On the other hand, Infosys, ITC, Bharti Airtel, HUL and M&M were among the major gainers.

Outside the frontline indices, the big losers in the broader market were IRB Infra, Madras Cement, Shriram Transport, Jai Corp and RCF. On the other hand, gainers included Marico, Ashok Leyland, Hind Copper, KSK Energy and Bank of India.

The Wholesale Price Index for 'All Commodities' for the week ended October 10, 2009 rose by 0.1% to 242.2 from 241.9 for the previous week.

The annual rate of inflation stood at 1.21% for the week ended October 10, 2009 as compared to 0.92% for the previous week ended October03, 2009 and 11.3% during the corresponding week ended October 11, 2008 of the previous year.

L&T Q2 net profit was at Rs5.8bn as against Rs4.6bn registering a growth of 26% YoY. The company registered net sales of Rs79.2bn as against Rs77.25 in the same period last year. The company posted other income of Rs2.18bn as compared of Rs1.33bn. EPS was at Rs9.7 versus Rs7.74 per.

The stock was down by 4% to Rs1608. The stock opened at Rs1665 and made an intra-day high of Rs1676 and a low of Rs1595. Total traded volumes stood at 0.84mn shares.

Hindustan Zinc announced its Q2 results with net profit of Rs9.34bn for the quarter ended September 30, 2009 as compared to Rs9.59bn for the quarter ended September 30, 2008.

Total Income has increased from Rs19.71bn for the quarter ended September 30, 2008 to Rs19.72bn for the quarter ended September 30, 2009.

The stock pared partial loss and recovered from day’s low. The stock ended lower by only 1.5% at Rs868. It opened at Rs878 and made an intra-day high of Rs884 and a low of Rs852. Total traded volumes stood at 49,000 shares.

Bhushan Steel announced its Q2 net profit of Rs1.89bn up 33% for the quarter ended September 30, 2009 as compared to Rs1.42bn for the quarter ended September 30, 2008. Total Income has decreased from Rs15.18bn for the quarter ended September 30, 2008 to Rs13.04bn for the quarter ended September 30, 2009.

The stock slipped by 3% to Rs1334. It opened at Rs1375 and made an intra-day high of Rs1400 and a low of Rs1324. Total traded volumes stood at 0.13mn shares.

Biocon announced its Q2 results with net profit after tax of Rs623.6mn up 86% for the quarter ended September 30, 2009 as compared to Rs335.3mn for the quarter ended September 30, 2008. Total Income has increased from Rs2.68bn for the quarter ended September 30, 2008 to Rs3.12bn for the quarter ended September 30, 2009.

The Group has posted a net profit after tax of Rs741.9mn for the quarter ended September 30, 2009 as compared to Rs250.2mn for the quarter ended September 30, 2008. Total Income has increased from Rs4.57bn for the quarter ended September 30, 2008 to Rs5.92bn for the quarter ended September 30, 2009.

Shares of Biocon gained marginally by 0.5% to Rs272. The stock opened at Rs272 and made an intsra-day high of Rs284 and a low of Rs267. Total traded volumes stood at 0.86mn shares.

KEC international won orders from the Middle East (Saudi Arabia) and Africa (Chad) aggregating to Rs4.7bn. In the Middle East (Saudi Arabia), the Company has won two orders totaling to Rs4bn, The scope of the orders includes survey, design, engineering, planning, construction, erection, testing and commissioning.

Shares of KEC International have erased gains and ended lower by 2.5% to Rs574. The stock opened at Rs590 and made an intra-day high of Rs624 and a low of Rs567. Total traded volumes stood at 38,000 shares.

Jubilant Organosys announced that the board of directors approved Hiving off Application Polymers division and Consumer Products division. The board also approved raising capital through issue of equity or equity related instruments upto Rs5bn.

The company also announced its Q2 earnings with revenue for Q2 FY 10 at Rs9.33bn. The EBITDA for the quarter was at Rs1.92bn with EBITDA margins of 20.5%.

The Company posted a net profit of Rs554.9mn for the quarter ended September 30, 2009 as compared to net loss of Rs(243.90)mn for the quarter ended September 30, 2008.

Total Income decreased from Rs6.85bn for the quarter ended September 30, 2008 to Rs6.32bn for the quarter ended September 30, 2009.

The stock plunged over 5% to Rs210. It opened at Rs224 and made an intra-day high of Rs228 and a low of Rs209. Total traded volumes stood at 0.21mn shares.

Copper drops

Prices shed yesterday's gains partly

Copper prices dropped on Thursday, 22 October, 2009 at Comex and LME. The strong dollar and the weak economic data were mainly responsible for this.

At USA, copper futures for December delivery ended lower by 3.8 cents (1.3%) to 2.998 a pound. Yesterday prices crossed the $3 mark for the first time in FY 2009. Copper ended September, 2009, lower by 0.3%.

On the London Metal Exchange, copper for delivery in three months ended almost unchanged at $6,590 a metric ton. On 3 July, 2008, prices had touched an all time intra day high of $8,940.

Before September, it was the eight straight monthly gain for copper. On a year to date basis, prices are higher by 98.2%.

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

In the currency market on Thursday, the dollar index, which calculates the strength of the dollar against a basket of six other currencies rose by almost 0.2%. Earlier during the day, it rose by almost 0.6%.

The Labor Department in US reported on Thursday, 22 October, 2009 that initial claims for state unemployment benefits rose for the week that ended on 17 October, 2009, after two straight weekly declines. First-time claims for the week ended 17 October were up 11,000 to 531,000. The prior week's claims level was revised higher by 6,000 to stand at 520,000.

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 November delivery closed at Rs 308.2/Kg. The closing price was Rs 0.9/Kg (0.3%) lower than previous closing price. Prices rose to a high of Rs 311.8/ Kg and fell to a low of Rs 307.1/Kg during the day's trading.

Among other metals traded in the LME on Thursday, lead lost 1% to $2,426 a ton and zinc added 0.4% to end at $2,230 a ton. Nickel slid 1% to end at $19,550. Aluminium gained 0.6% to $1,977 a ton.

IFCI

We recommend a sell in the stock of IFCI from a short-term perspective. It is perceptible from the charts of IFCI that it has been on an intermediate-term uptrend from its March low of Rs 15 till the early September peak of Rs 61. However, after encountering a significant resistance around Rs 60 it changed direction. Since September peak, the stock has been on a medium-term downtrend. On October 22, the stock tumbled almost 4 per cent penetrating the intermediate-term up trendline and 50-day moving average. This decline has reinforced the medium-term downtrend. We notice that there has been a decrease in volume since early September. The daily relative strength index (RSI) is on the brink of entering into the bearish zone from the neutral region and weekly RSI is declining in the neutral region. The daily moving average convergence and divergence (MACD) indicator has entered into the negative territory. Our short-term outlook on the stock is bearish. We anticipate the stock’s fall to prolong until it hits our price target of Rs 47 in the upcoming trading sessions. Traders with a short-term perspective can sell the stock while maintaining a stop-loss at Rs 55.

via BL

The journey of Rakesh Jhunjhunwala

When you first ventured into the stock markets, it must have been a huge gamble 20 years ago. You qualified as a CA, what made you take that step?

My father was also interested in stocks. When I was a young child, he and his friends would drink in the evening and discuss about the stock market. I would listen to them and one day I asked him why do these prices fluctuate. He told me to check if there is a news item on Gwalior Rayon in the newspaper, and if there was Gwalio Rayon's price would fluctuate the next day.

I found it very interesting and I got fascinated by stocks, I self-taught myself. My father told me to do whatever I wanted in life but at least get professionally qualified.


I was always a reasonably good student so I took up chartered accountancy. In January 1985, I completed my CA. I told my father I wanted to go to the stock market. My father reacted by telling me not to ask him or any of his friends for money. He, however, told me that I could live in the house in Mumbai and that if I did not do well in the market I could always earn my livelihood as chartered accountant. This sense of security really drove me in life.

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Asian stocks open in green

Asian stocks advanced as earnings reports from Australia to Japan boosted speculation that rising demand will help the global economy exit from recession.

Daiwa House Industry and Nomura Real Estate Holdings climbed nearly 2% after reporting higher-than-forecast earnings.

Japanese benchmark index Nikkei 225 gained 56.28 points, or 0.55%, to trade at 10,323.45.

Hong Kong`s Hang Seng index rose 228.38 points, or 1.03%, to trade at 22,438.90.

China`s Shanghai Composite increased 42.02 points, or 1.38% to trade at 3,093.43.

Taiwan`s Taiex index advanced 12.03 points, or 0.16%, to trade at 7,619.96.

South Korea`s Kospi index climbed 7 points, or 0.43% to trade at 1,637.33.

Singapore`s Straits Times index gained 28.22 points, or to 1.05% trade at 2,710.19. (7.45 a.m., IST)

HDFC Bank

HDFC Bank

Sesa Goa Ltd

Sesa Goa Ltd

SGX Nifty Live Update - Oct 23 2009

5,048.0 +46.0

Nifty October 2009 futures at premium

Turnover surges

Nifty October 2009 futures were at 5,002.10, at a premium of 13.50 points as compared to the spot closing of 4,988.60. Turnover in NSE's futures & options (F&O) segment surged to Rs 86,383.23 crore from Rs 67,937 crore on Wednesday, 21 October 2009.

Reliance Industries October 2009 futures were at premium at 2,134 compared to the spot closing of 2,128.40.

Jindal Steel & Power October 2009 futures were at premium at 708 compared to the spot closing of 706.

Unitech October 2009 futures were near spot price at 100.70 compared to the spot closing of 100.30.

In the cash market, the S&P CNX Nifty lost 75 points or 1.48% at 4,988.60.

Precious metals turn little pale

Prices drop due to the strong dollar

Precious metal prices ended lower on Thursday, 22 October, 2009. Prices fell today as the dollar rose today from fourteen month low.

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 December delivery ended at $1,058.6, lower by $5.9 (0.6%) an ounce on the New York Mercantile Exchange. In the last week gold had registered record highs quite a few times. It reached an all time high of $1071 earlier last week. Last week, gold ended higher by 0.3%. Year to date, gold prices are higher by 20%.

Gold ended September, 2009 higher by 5.9%. For the third quarter it ended higher by 8.7%. Before this, for the second quarter, gold ended higher by 0.5%. The metal had gained 4.3% in the first quarter of this year.

On Thursday, December Comex silver futures ended lower by 28 cents (1.6%) at $17.545 an ounce.

Silver ended 11.8% higher for September, 2009. Year to date, silver has climbed 58.9% this year. For 2008, silver had lost 24%.

In the currency market on Thursday, the dollar index, which calculates the strength of the dollar against a basket of six other currencies rose by almost 0.2%. Earlier during the day, it rose by almost 0.6%.

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

At the MCX, gold prices for December delivery closed higher by Rs 63 (0.4%) at Rs 16,012 per 10 grams. Prices rose to a high of Rs 16,050 per 10 grams and fell to a low of Rs 15,951 per 10 grams during the day's trading.

At the MCX, silver prices for December delivery closed Rs 109 (0.4%) lower at Rs 27,231/Kg. Prices opened at Rs 27,250/kg and fell to a low of Rs 27,068/Kg during the day's trading.

Crude ends marginally lower

Prices drop on the back of weak economic data

Crude prices ended little lower at Nymex on Thursday, 22 October, 2009. Prices fell due to the weaker than expected economic report that hit the wires today. The strong dollar was also the reason why crude pared its early gains today.

On Thursday, crude-oil futures for light sweet crude for December delivery closed at $81.84/barrel (lower by $0.12 or 0.1%). Earlier during the day, it fell to a low of $79.84. but also rose past $82. Last week, crude ended higher by 9.4%, the biggest weekly gain in two months. In the past two weeks, crude has climbed up by almost 18%.

For the month of September, 2009, crude ended higher by a marginal 0.9%. For the third quarter, crude ended higher by just 1%. Crude prices had rallied 40% and 11.3% in the second and first quarter of 2009 respectively.

Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 55.7% since then. Year to date, in 2009, crude prices are higher by 60%.

The Labor Department in US reported on Thursday, 22 October, 2009 that initial claims for state unemployment benefits rose for the week that ended on 17 October, 2009, after two straight weekly declines. First-time claims for the week ended 17 October were up 11,000 to 531,000. The prior week's claims level was revised higher by 6,000 to stand at 520,000.

The four-week moving average of new claims, considered a better gauge of the labor market by smoothing out volatility in the weekly data, inched lower by 750 to 532,250, the lowest level since mid-January. This was the seventh consecutive drop in the four-week average.

EIA reported yesterday that crude inventories rose 1.3 million barrels in the week ended 16 October. Market was expecting a buildup figure to the tune of 2.2 million barrels. Imports fell to 8.7 million barrels a day in the latest week. The EIA also reported that petroleum demand remained weak, with demand for gasoline falling to the lowest level in more than five months.

The report also stated that gasoline inventory declined by 2.3 million barrels and the decline was 800,000 barrels for distillates, which include heating oil and diesel.

In the currency market on Thursday, the dollar index, which calculates the strength of the dollar against a basket of six other currencies rose by almost 0.2%. Earlier during the day, it rose by almost 0.6%.

Among other energy related products, November gasoline futures lost 0.5% to $2.0442, and November heating oil slid 0.5% to $2.0946.

Also on Thursday, November natural gas lost 3% to $4.947 per million British thermal units. The EIA reported today that U.S. inventories rose 18 billion cubic feet in the week ended 16 October, 2009.

Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.

At the MCX, crude oil for November delivery closed lower by Rs 22 (0.6%) at Rs 3,759/barrel. Natural gas for October delivery closed lower by Rs 12.6 (5.24%) at Rs 230.5/mmbtu.

Hero Honda

Hero Honda