BSE Bulk Deals to Watch - March 5 2008

Deal Date Scrip Code Scrip Name Client Name Deal Type * Quantity Price **
5/3/2008 531223 ANJANI SYNTH NATRAJ FINANCIAL AND SERVICES LTD B 174023 56.43
5/3/2008 531223 ANJANI SYNTH NATRAJ FINANCIAL AND SERVICES LTD S 174023 58.29
5/3/2008 531223 ANJANI SYNTH ANKIT NARENDRA BAHUVA S 84000 57.60
5/3/2008 500029 AUTOLITE INE ARENA TEXTILES AND IND LTD S 50328 87.46
5/3/2008 532946 BANG SUMIT JINDAL B 200000 115.99
5/3/2008 532767 GAYATRI PROJ AIG TRUSTEE CO AC INFRASTRUCT B 141109 465.00
5/3/2008 532825 JAGJANANI LUCAS MAYES INDUSTRIED PRIVATE LIMITED B 176091 8.00
5/3/2008 532825 JAGJANANI SUNITHA KHANDELWAL S 176091 8.00
5/3/2008 531784 KADAMB CONST BASAL VINIMOY PVT.LTD. B 14500 32.90
5/3/2008 531241 LINC PEN PLA B.S. AGENCY PVT. LTD. B 60000 40.36
5/3/2008 531241 LINC PEN PLA SHREE BALAJI SAREES PVT LTD S 50000 40.50
5/3/2008 532728 MALU PAPER DIAMANT INVESTMENT AND FINANCE S 107764 30.46
5/3/2008 532950 MANJUSHREE N D NISSAR B 289955 31.28
5/3/2008 532950 MANJUSHREE BHANDARI RAKHI KALPESH B 85000 31.20
5/3/2008 532950 MANJUSHREE N D NISSAR S 289955 31.34
5/3/2008 532950 MANJUSHREE BHANDARI RAKHI KALPESH S 85000 30.40
5/3/2008 512267 MEDIA MATRIX COMMITTED TRADING PVT LTD B 188354 4.53
5/3/2008 512267 MEDIA MATRIX R K DHAWAN B 214432 4.47
5/3/2008 512267 MEDIA MATRIX ANIL VED MEHTA S 151609 4.46
5/3/2008 513446 MONNE ISPAT BSMA LIMITED B 306500 464.95
5/3/2008 526169 MULTIBASE 1 MADHAV EDU AND RESERCH INSTITUTE INDIA PVT LTD B 214582 31.01
5/3/2008 500331 PIDILITE IND F IDE FIMHK FIDELITY FUNDS MAURITIUS LIMITED S 2500000 145.00
5/3/2008 524570 PODDAR PIGME BHUMIKA ENTERPRISES PRIVATE LIMITED S 1800000 56.00
5/3/2008 531219 POONAM PHARM SWARN GANGA TRADING PVT. LTD. B 56800 3.27
5/3/2008 523606 SIKA INTERP RAJIV ARORA B 37327 68.87
5/3/2008 523606 SIKA INTERP RAJIV ARORA S 32030 71.05
5/3/2008 504375 SOFTBPO GLOB ANJU ADVISORY SERVICES PVT LTD S 4500 233.76
5/3/2008 532863 SPICE TELE FIDELITY MUTUAL FUND S 3527046 32.50
5/3/2008 530155 TONIRA PHARM IPCA LABORATORIES LIMITED B 74782 27.70
5/3/2008 532948 TULSI EXTRU N D NISSAR B 104111 97.21
5/3/2008 532948 TULSI EXTRU N D NISSAR S 104111 97.05
5/3/2008 532311 TUTIS TECH SUMIT J JAIN B 100000 13.96
5/3/2008 519602 VMF SOFT TEC PENUMATCHA INDUSTRIES LTD B 97390 3.29
5/3/2008 532144 WELSP GUJ SR KRISHIRAJ TRADING LIMITED B 3724116 400.00
5/3/2008 532144 WELSP GUJ SR NEXTGEN FAR EAST LIMITED S 3724116 400.00

NSE Bulk Deal Watch - March 5 2008

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
05-MAR-2008,ARIHANT,Arihant Foundations & Hou,SARAOGI MADHU,BUY,50000,340.00,-
05-MAR-2008,ARIHANT,Arihant Foundations & Hou,SARAOGI SHYAM,BUY,50000,340.00,-
05-MAR-2008,JETAIRWAYS,Jet Airways (India) Ltd.,BAYTREE INVESTMENTS MAURITIUS PRIVATE LIMITED,BUY,849810,726.00,-
05-MAR-2008,QUINTEGRA,Quintegra Solutions Ltd,STUPENDORS TRADERS PVT LTD,BUY,200000,94.10,-
05-MAR-2008,TULSI,Tulsi Extrusions Limited,ADROIT FINANCIAL SERVICES PVT LTD,BUY,273183,98.13,-
05-MAR-2008,TULSI,Tulsi Extrusions Limited,ASHU GUPTA,BUY,68206,103.46,-
05-MAR-2008,TULSI,Tulsi Extrusions Limited,CPR CAPITAL SERVICES LTD.,BUY,117527,96.77,-
05-MAR-2008,TULSI,Tulsi Extrusions Limited,PASHUPATI CAPITAL SERVICES PVT. LTD.,BUY,99443,96.18,-
05-MAR-2008,TULSI,Tulsi Extrusions Limited,R.M. SHARE TRADING PVT LTD,BUY,123319,97.35,-
05-MAR-2008,TULSI,Tulsi Extrusions Limited,RAJEEV GUPTA,BUY,97130,100.84,-
05-MAR-2008,TULSI,Tulsi Extrusions Limited,TRANSGLOBAL SECURITIES LTD.,BUY,221931,97.37,-
05-MAR-2008,ARIHANT,Arihant Foundations & Hou,SURBHI BAJORIA,SELL,35000,340.00,-
05-MAR-2008,JETAIRWAYS,Jet Airways (India) Ltd.,CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED,SELL,498323,726.00,-
05-MAR-2008,QUINTEGRA,Quintegra Solutions Ltd,J V S SECURITIES PRIVATE LIMITED,SELL,200000,94.10,-
05-MAR-2008,SRF,SRF Ltd.,MORGAN STANLEY DEAN WITTER MAURITIUS CO. LTD,SELL,750000,117.00,-
05-MAR-2008,TULSI,Tulsi Extrusions Limited,ADROIT FINANCIAL SERVICES PVT LTD,SELL,273183,98.32,-
05-MAR-2008,TULSI,Tulsi Extrusions Limited,ASHU GUPTA,SELL,68206,103.58,-
05-MAR-2008,TULSI,Tulsi Extrusions Limited,CPR CAPITAL SERVICES LTD.,SELL,117527,96.94,-
05-MAR-2008,TULSI,Tulsi Extrusions Limited,PASHUPATI CAPITAL SERVICES PVT. LTD.,SELL,99443,97.02,-
05-MAR-2008,TULSI,Tulsi Extrusions Limited,R.M. SHARE TRADING PVT LTD,SELL,123319,97.14,-
05-MAR-2008,TULSI,Tulsi Extrusions Limited,RAJEEV GUPTA,SELL,97130,101.32,-
05-MAR-2008,TULSI,Tulsi Extrusions Limited,TRANSGLOBAL SECURITIES LTD.,SELL,221931,97.51,-

Jupiter Biosciences

Jupiter Biosciences

Eveninger - March 5 2008

Eveninger - March 5 2008

Suzlon Energy

Suzlon Energy

Market Close : Relief? On value buying

It was volatile day for Indian markets and managed to end in green after value buying seen in some counters. Markets started on a subdued note following the mix global cues. US worries continued to prevail as Fed Chairman Ben Bernanke words which forecasted more home foreclosures to continue. Markets traded range in the same trend on lack of buying activities. Markets saw very volatile, trading to and fro on either sides. But some value buying at lower level lifted the indices to end in green. Only the large caps gained, small and mid caps were under pressure. IT sector was the pick of the day, gaining around 4% Metals and Oil & gas also gained over 1%. Power, Realty and Banking stocks were under check. The cues from Asia are not very encouraging with most of the Asia ended lower, while European indices are trading firm in green.

Sensex closed up by 202 points at 16542.08. It was helped up by gains in Satyam (433.8,+7 percent), ITC (194.25,+5 percent), HDFC (2755.25,+4 percent), Hindalco (208.1,+4 percent) and Dr Reddys (579.9,+4 percent). Restricting the gains were Bajaj Auto (2128.05,-3 percent), Rel Energy (1459.45,-3 percent), Bharti Tele (750.2,-2 percent), HDFC Bk (1336.4,-2 percent) and HLL (225.55,-2 percent).

Reliance Energy Ltd (REL) has approved a buy-back of its outstanding equity shares for an aggregate amount of up to approximately Rs 2,000 crore in two phases. An amount of Rs 800 crore will be expended in the first phase on the share buyback. A further amount of Rs 1,200 crore will be expended in the second phase. REL will buy-back shares up to a maximum price of Rs 1,600. The buy-back news were around the corner for sometime but it failed to sustain REL?s price on the bourses. REL closed 3% down.

McLeod Russel India Ltd (McLeod) is largest tea plantation company in the world. Mcleod , has around 52 tea estates with total capacity of 70mn kg. Tea production is expected to be stagnant with limited land availability. This has led to good realisation and it is expected to futher go up. For short term Kenya's drought problem and political issues has affected production there. McLeod Russel sees a rise of Rs 5-7 for the rest of the year in tea prices.This has led to a recent run in tea stocks. We are positive on Mcleod. Do read our note to know more.

Technically Speaking: Markets ended on volatile manner with negative breadth and low volume. Sensex made an intra day high of 16596 and low of 16253. The breadth was in favor of Declines, as there were 783 Advances against 1920 Declines. Market turnover was at Rs 5348 cr. Sensex support stands at 16200 and 15800. Resistance lies at 17000 and 17250.

Post Market Commentary - March 5 2008

The Indian market surged in the final trading hours of the session losing a four day losing trend on the back of selective buying across the counters. The market opened flat but managed to make a turnaround after the mid session as the investors showed some buying interest. Also, the statement by the Finance Minister that the FIIs were not behind the recent sharp fall in the market and it could be attributed to sub prime crises and recession concerns in US gave a boost to the investors sentiments. A lot of volatility was witnessed during the trading session. From the sectoral front, the oil & gas, metal and IT stocks remained the centre of attraction as most buying was seen from these baskets. The BSE Sensex closed higher by 202.19 points at 16,542.08 and NSE Nifty grew by 57.15 points to close at 4,921.40. While, the BSE Mid Cap and Small Cap also closed lower by 68.05 points and 143.49 points at 7,114.18 and 8,809.79 respectively.

The Indian stock market will remain closed tomorrow i.e. on 06-03-2008 (Thursday) for the celebration of Maha Shivratri.

The Capital Goods index declined 133.88 points to close at 14,688.40. Major losers are Punl Lloyd (6.31%), Praj Industries (2.48%), Siemens (2.56%), BHEL (0.80%) and Bharat Electrical (0.48%).

The Realty index closed lower by 131.93 points at 8,335.48 as Omaxe (5.54%), Unitech (4.27%), Sobha Developers (2.27%), HDIL (2.01%), India Bull Real (1.32%) and Purvankara (0.70%) closed lower.

The Bankex index slipped by 140.73 points to close at 8,916.03. Losers are BOI (7.64%), Union Bank (6.63%), BOB (6.50%), IOB (5.96%), Andhra Bank (1.17%), AXIX Bank (1.08%) and SBI (1.06%).

The Oil and Gas index closed up by 164.63 points at 10,330.75 as ONGC (3.05%), BPCL (3.01%), Reliance Inds (2.29%), Gail India (1.21%), RPL (0.90%), Aban Offshore (0.45%) closed lower.

From the IT index, Satyam (6.70%), Finance Tech (5.91%), HCL Tech (4.44%), Infosys (3.87%), Wipro (3.25%), TCS (2.48%), Tech Mahindra (1.40%) closed in green

Market snaps four-day slide; Sensex garners 202 points

Snapping a four-day losing streak, the key benchmark indices surged in late trade today. Volatility was high. Index heavyweight Reliance Industries witnessed an upward momentum at the fag end of the trade. Software stocks were the flavor of the day. Banking, realty and power stocks dropped

19 out of 30 stocks from the Sensex pack were in the green. The market breadth was weak. European markets, which opened after Indian market, were in the green. Asian markets, which open before the Indian markets, were mixed.

The market remains close tomorrow, 6 March 2008 on account of Mahashivratri.

Trading on the bourses will halt between 11:45 IST to 12:30 IST daily till 18 March 2008 due to sun outage. The trading time has been extended till 16:15 IST.

The 30-share BSE Sensex rose 202.19 points or 1.24% at 16,542.08. The Sensex gained 255.75 points at session’s high of 16,595.64, hit at the fag end of the day. The index lost 86.87 points at the day’s low of 16,253.02, hit in early trade.

The broader CNX S&P Nifty was up 57.15 points or 1.17% at 4921.40.

As per provisional data, FIIs sold shares worth a net Rs 285.03 crore today. Domestic funds sold shares worth a net Rs 131.68 crore.

The BSE Sensex had plunged 1484.59 points or 8.32% to 16,339.89 on 4 March 2008 from 17824.48 on 28 February 2008, hit by Budget blues. Traders, domestic funds and some foreign institutional investors (FIIs) are likely to be hit by a hike in short term capital gains tax on sale of shares to 15% from 10%, which amounts to a massive 50% hike in the tax rate, in Union Budget 2008-09 announced on Friday, 29 February 2008.

The change in tax treatment of the Securities Transaction Tax (STT) in the budget, meanwhile, may impact arbitrage volumes on the bourses. STT will now be treated like any other deductible expenditure against business income for the assesse. This is against the current practice whereby an assesse gets 100% rebate for STT paid against the tax liability for the year. A fall in arbitrage will result in decline in liquidity on the bourses.

The Indian economy is currently witnessing a moderation in growth from a solid growth last year mainly due to sluggish consumption growth. Concerns also remain about possible spike in inflation. Analysts reckon that the finance minister (FM) has targeted these two areas in Union Budget 2008-09, which he unveiled on Friday, 29 February 2008.

FM seeks to revive consumption growth through higher disposable income in the hands of the middle class through remit in personal income tax slabs, which will result in substantial tax saving for individual tax payers. Analysts also reckon that the implementation of the Sixth Pay Commission, which will result in hike in salaries of government employees, will aid consumption growth. The Sixth Pay Commission was constituted in October 2006 to recommend comprehensive changes in salary structure of the government employees.

The measures aimed at inflation control include a major fillip to agricultural and irrigation sector to boost farm production, across the board cut in Cenvat to 14% from 16% and specific excise duty cuts.

The BSE Mid-Cap index fell 0.95% at 7,114.18, while the BSE Small-Cap fell 1.60% at 8,809.79. Both these indices underperformed the Sensex.

The market breadth was weak: on BSE 760 advanced as compared to 1942 that declined. 48 stocks remained unchanged.

BSE clocked a turnover of Rs 5348 crore as against Rs 5,819.09 on Tuesday, 4 March 2007.

Nifty March 2008 futures were at 4915.10, a discount of 6.3 points as compared to spot closing of 4921.40.

The NSE's futures & options (F&O) segment turnover was Rs 33581.65 crore, which was lower than Rs 40644.5 crore on Tuesday, 4 March 2008.

India's largest private sector bank by assets ICICI Bank fell 1.15% to Rs 960.40, off session’s low of Rs 925. The stock declined after some reports on Wednesday, 4 March 2008 suggested the bank lost $264 million on account of the subprime crisis. However, ICICI Bank's Joint Managing Director Chanda Kochhar clarified that ICICI Bank may have to provide for another $50 million of investment losses in this quarter on top of $70 million already provided for in Q3 December 2007. The write off will be due to its investments being marked to market rather than provisioning for a subprime loss as many large international banks have done.

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) rose 2.29% to Rs 2292.75 on reports its unit Reliance Retail has signed a joint venture with Pearle Europe for the launch of a chain of optical stores in India

India’s biggest state-run oil refiner by market capitalisation ONGC rose 3.05% to Rs 987.90 after the Macquarie Research raised the rating on the stock to ‘outperform’ from ‘neutral’ and raised 12-month price target to Rs 1,100 from Rs 1,050 earlier. The increase in the stock rating was based on Macquarie Research’s expectation that crude oil prices will remain high.

Top Sensex gainers were, Satyam Computer (up 6.70% at Rs 433.80), ITC (up 5.09% at Rs 194.25), Housing Development Finance Corporation (up 4.50% at Rs 2755.25), Hindalco Industries (up 4.10% at Rs 208.10), and Maruti Suzuki (up 3.80% at Rs 940.15).

Top Sensex losers were, Bajaj Auto (down 3.26% at Rs 2128.05), Reliance Energy (down 3.01% at Rs 1459.45), Bharti Airtel (down 2.44% at Rs 750.20), HDFC Bank (down 1.54% at Rs 1336.40) and Hindustan Unilever (down 1.51% at Rs 225.55).

The BSE IT index rose 3.82% to 3,752.47. It outperformed the Sensex. Satyam Computer (up 6.70% at Rs 433.80), Financial Technologies (rose 5.91% at Rs 1,926.15), Infosys Technologies (up 3.87% at Rs 1,474.85), Wipro (up 3.25% at Rs 430.75) and TCS (up 2.48% at Rs 874.70), moved up.

The BSE Bankex fell 1.55% to 8,916.03. It underperformed the Sensex. Bank of India (down 7.64% at Rs 286.05), Bank of Baroda (down 6.50% at Rs 311.55), Oriental Bank of Commerce (down 6.38% at Rs 212.05), and Federal Bank (down 2.69% at Rs 280), slipped.

Indian Overseas Bank (down 5.96% at Rs 146.05) and Union Bank of India (down 6.63% at Rs 152.90) and Punjab National Bank (up 1.30% to Rs 523.30) got their rating cut to ‘neutral’ from ‘outperform’ by Credit Suisse after the government proposed waiving Rs 60,000 crore of loans to farmers. Credit Suisse cut Punjab National's share price target by 29% to Rs 535, Indian Overseas Bank by 31% to Rs 155 and Union Bank of India by 29% to Rs 169.

According to Credit Sues, the risk perception associated with agricultural lending for government banks has risen significantly. Uncertainty is likely to continue for at least two quarters until the loan waiver is finalized.

The BSE Power index fell 1.20% to 3,341.10. It underperformed the Sensex. GVK Power & Infrastructure (down 7.45% at Rs 40.40), Reliance Power (down 4.10% at Rs 376.25), Areva T&D (down 3.26% at Rs 1860), Tata Power (down 3.18% at Rs 1,197.30) and Torrent Power (down 2.62% at Rs 129.95), declined.

The BSE Realty index fell 1.56% to 8,335.48. It underperformed the Sensex. Omaxe (down 5.54% at Rs 221.60), Sobha Developers (down 2.27% at Rs 795.55), Housing Development & Infrastructure (down 2.01% at Rs 710.30), Indiabulls Real Estate (down 1.32% at Rs 543.65), went down. However, DLF rose 0.47% to Rs 681.35.

India’s second biggest real estate developer Unitech fell 4.27% to Rs 312.55 on reports it has put on hold a $1.5 billion qualified institutional placement planned for the first quarter of 2008, on account of the instability in domestic stock markets and the global liquidity crunch.

Reliance Capital clocked the highest turnover of Rs 289.50 crore on BSE. Reliance Energy (Rs 198.47 crore), ICICI Bank (Rs 184.91 crore), Reliance Natural Resources (Rs 181.71 crore) and Reliance Industries (Rs 176.17 crore), were the other turnover toppers in BSE in that order.

Reliance Natural Resources registered highest volume of 1.52 crore shares on BSE. Ispat Industries (1.02 crore shares), Reliance Petroleum (87.14 lakh shares), Tulsi Extrusion (68.36 lakh shares) and Essar Oil (64.78 lakh shares), were the other volume toppers on BSE in that order.

In Europe, key indices in UK, Germany and France were up between 0.32% to 1.16%.

Asian markets were trading mixed today, 5 March 2008. Key indices in China, Singapore, and Japan were down between 0.16% to 0.99%. However, key indices in South Korea, Hong Kong and Taiwan were up between 0.05% to 0.16%.

US markets closed mixed on Tuesday, 4 March 2008, after taking a beating in early trade. Fed Chairman Ben Bernanke said that defaults and foreclosures in the housing market were likely to increase and urged banks to forgive further mortgage delinquencies.

The Dow Jones industrial average slipped 45.10 points, or 0.37%, to 12,213.80. The Standard & Poor's 500 index declined 4.59 points, or 0.34%, to 1,326.75, while the Nasdaq composite index gained 1.68 points, or 0.07 %, to 2,260.28.

Global indices may weigh

The market is likely witness volatility during intra-day trades and may succumb to selling pressure amid overnight weakness in the US indices and the bearish looking Asian indices in the ongoing trades. Among the key domestic indices, the Nifty could get support at 4800 and a slip below this level may see it dip further, while on the upside, the index has a key resistance at 4900. The Sensex has a likely support at 16160 and could test higher levels of 16470.

US indices ended mixed on Tuesday with the Dow Jones dropped by 45 points to close at 12214, the Nasdaq ended 2 points high at 2260.

Indian floats, too, witnessed selling pressure and largely ended at lower levels. VSNL tumbled over 7.20% at $23.20, ICICI Bank declined 6.70% at $46.91, Rediff down by 2.65% at $8.08, Dr Reddy moved down 2.48% at $2.48, Tata Motors lost 2.33% at $17.19 and Infosys slipped 2.04% at $37.43 while HDFC Bank, Wipro, Satyam, Patni Computers and MTNL lost around 1% each.

Crude oil prices moved up, with the Nymex light crude oil for April 08 delivery declined by $2.93 to close at $99.52 a barrel. In the commodity space, the Comex gold for April 08 series lost $17.90 to settle at $966.30 respectively.

Grey Market Premiums - Rural Electrification

Rural Electrification 105 16 to 18


GSS America InfoTech 400 Discount


V. Guard Ind. 82 5 to 8


Gammon Infra 167 to 200 18 to 20


Sita Shree Food Pro. 27 to 30 3 to 5

Market may head higher in choppy trade

The market may head higher in choppy trade after Finance Minister P Chidambaram on Tuesday evening, 4 March 2008 ruled out a ban on FIIs and said that they were not behind the recent fall in stock markets. He aadded that the recent fall could be attributed to sub-prime crisis, expected recession in the US and firming up of oil prices.

Most Asian markets were trading firm today, 5 March 2008. Hong Kong's Hang Seng (up 0.41% at 23,215.56), Taiwan's Taiwan Weighted (up 0.48% at 8,510.81), Singapore's Straits Times (up 0.22% at 2,926.20), South Korea's Seoul Composite (up 0.31% at 1,681.44), advanced. However, Japan's Nikkei dropped 0.21% at 12,964.41.

US markets closed mixed on Tuesday, 4 March 2008 after taking a beating in early trade. Fed Chairman Ben Bernanke said that defaults and foreclosures in the housing market were likely to continue to increase & urged banks to forgive more late loans.

The Dow Jones industrial average slipped 45.10 points, or 0.37%, to 12,213.80. The Standard & Poor's 500 index declined 4.59 points, or 0.34%, to 1,326.75, while the Nasdaq composite index gained 1.68 points, or 0.07 %, to 2,260.28.

Back home, the key indices drifted lower for a third consecutive session yesterday, 4 March 2008 hit by Budget blues. The 30-share BSE Sensex lost 337.99 points or 2.03% at 16,339.89. The broader CNX S&P Nifty was down 88.75 points or 1.79% at 4864.25 on that day.

As per provisional data, foreign institutional investors (FIIs) sold shares worth Rs 512.33 crore on Tuesday, 4 March 2008. Domestic institutional investors (DIIs) were net buyers of shares worth Rs 170.23 crore on that day.

FIIs were net buyers of Rs 910.40 crore in the futures & options segment on Tuesday, 4 March 2008. They were net buyers of index futures to the tune of Rs 121.85 crore and bought index options worth Rs 221.14 crore. They were net buyers of stock futures to the tune of Rs 560.66 crore and bought stock options worth Rs 6.75 crore.

Meanwhile, the market will remain closed from 11:45 IST to 12:30 IST due to sun outage. Trading time has been extended till 16:15 IST. The changes in timings will be applicable till 18 March 2008.

Pre Market Watch - March 5 2008

The Indian Market is likely to have a positive opening, as the Asian markets are trading higher. On Tuesday, The Indian market closed on a disappointing note backed by heavy selling across the sectoral indices scrips. The market opened on firm note tracking the favoring cues from the global market but was unable to sustained at higher levels and fell few minutes after the start of the session. The market got a boost after the mid session to level its initial session but again fell in the final trading hours. The BSE Sensex closed lower by 337.99 at 16,339.89 and NSE Nifty fell by 88.75 points to close at 4,864.25. We expect that the market may remain cautious during the trading session due to the negative sentiments as ICICI Bank, which has suffered marked to market losses of $264.3 million (about Rs 1,056 crore) on account of exposure to overseas credit derivatives and investments in fixed income assets.

On Tuesday, the US market was closed mixed. The Dow Jones Industrial Average (DJIA) closed lower by 45.10 points at 12,213.80 along with S&P closed down by 4.59 points at 1,326.75 while NASDAQ grew by 1.68 points at 2,260.28

Today the major stock markets in Asia are trading in green. Hang Seng is trading higher by 95.69 points at 23,215.56 along with Taiwan Weighted trading up by 40.70 points at 8,510.81 and Singapore Strait Times trading at 2,926.20 up by 6.52 points.

Indian ADRs ended in negative. Infosys fell by (2.04%) along with Wipro by (1.30%) and Satyam by (1.06%). ICICI bank and HDFC bank fell by (6.70%) and (1.61%) respectively.

The FIIs on Tuesday stood as net seller in equity. The gross equity purchased was Rs3,420.30 Crore while the gross equity sold stood at Rs4,103.90 Crore. Therefore, the net investment of equity reported was (Rs683.50) Crore.

Today, Nifty has support at 4,719 and resistance at 5,929 and BSE Sensex has support at 15,806 and resistance at 16,529.

Trading Calls - March 5 2008

Nifty (4864) Supp 4750 Ress 5103

Buy Hero Honda (772) SL 766 Target 785, 788

Buy Nalco (458) SL 453
Target 468, 471

Buy Hindustan Unilever (229) SL 225 Target 239, 242

Sell HCL Tech (268) SL 273 Target 258, 255

Sell Indian Hotels (118) SL 122 Target 110, 108

Nothing much to bank on!

If you owe the bank $100 that's your problem. If you owe the bank $100 million, that's the bank's problem

The overriding view that Indian banks are not affected by the subprime mortgage mess in the US proved to be misplaced. The benchmark indices tumbled further yesterday amid news that ICICI Bank has suffered a mark-to-market loss of $264mn on some of its loans and investments. However, ICICI Bank has clarified that it has no material direct or indirect exposure to US subprime credit.

Coming to today's session, we expect another choppy day due to indecisive movement across global markets and owing to the sun outage. Given the holiday for the markets tomorrow, market participants (traders and investors seem missing!) may prefer to remain light because you never know what hits you from which part of the world while you are sleeping.

Bank stocks may continue to be under pressure due to concerns over possible losses on credit market investments. Given the weakness they have witnessed, don’t be surprised if some strong hands lap them up at lower levels. A cautious stock specific approach is the best way to combat the current turmoil.

ICICI Bank says it has a total exposure of US$2.2bn in credit derivatives. According to reports, the combined exposure of public sector banks in overseas credit instruments may total around $1.5bn. Despite the clarification from ICICI Bank, the already fragile market undertone has taken a further hit amid fears that Indian banks are not immune to the subprime crisis in the US, in some way or the other.

The meltdown in the US housing and credit markets continues to be the biggest stumbling block as far as the bulls are concerned. There are reports that Citigroup may announce more losses going ahead and could slash thousands of jobs as well. Fed chairman Ben Bernanke too has reiterated that there is more pain left in the US housing and financial system.

The Friday's US jobs report for the month of February along with many other economic reports will be critical in determining the direction of global equity markets. The Fed policy makers will meet again on March 18 to review its monetary policy. Wall Street is betting on a 75bps rate cut from FOMC to avert a recession in the US. But, the moot point is whether the rate cuts will help the Fed achieve its objective. Only time will tell.

FIIs were net sellers of Rs5.12bn in the cash segment (provisional) on Tuesday. Local institutions were net buyers of Rs1.7bn on the same day. In the F&O segment, FIIs were net buyers of Rs9.1bn yesterday. On Monday, FIIs were net sellers of Rs6.84bn in the cash segment.

Financial Technologies (FT) has clarified that Jignesh Shah is not under any investigation in his personal capacity nor he has received any notice from SEBI in this regard. The company also added that Jignesh Shah has not traded in the shares of FT. There is no other investigation by SEBI, FT said.

Asian markets are trading pretty much mixed this morning following a volatile day on Wall Street overnight.

The Nikkei in Tokyo was down 28 points at 12,964 while the Hang Seng in Hong Kong was nearly flat at 23,127. The Kospi in Seoul added 5 points to 1680 while the Straits Times in Singapore was almost unchanged at 2919.

The Shanghai Composite in China slumped 1.8% to 4258 and the Taiex in Taiwan was up 39 points to 8509.

The MSCI Asia Pacific Index fell 0.3% to 141.82 as of 10:26 a.m. in Tokyo, extending a four-day, 4.9% decline. The benchmark is down 10% this year on concern that the widening credit-market losses and a US slowdown will weigh on global economic growth.

Benchmarks also advanced in Australia and New Zealand.

US shares closed mixed on Tuesday but the broader market cut losses by the close after a tough session overwhelmed by reports of more troubles for Citigroup and Intel's profit forecasts. Fresh grim comments on the US economy from a slew of Fed officials didn't help matters either.

Financial and commodity shares led the decline initially after Fed chief Bernanke urged banks to forgive more late loans and oil, gold and copper prices dropped from record highs.

Citigroup shares tumbled to a nine-year low after Merrill Lynch cut its full-year earnings forecast. Separately, the CEO of Dubai International said Citigroup may need additional funding because of its growing losses.

ConocoPhillips and Freeport-McMoRan Copper & Gold led a retreat in energy and mining shares, the best-performing industries of the past year.

The S &P 500 Index slid 5 points, or 0.3%, to 1,326.75 after earlier falling 1.8%. The Dow Jones Industrial Average lost 45 points, or 0.4%, to 12,213.8, paring a decline of 226 points. The Nasdaq Composite finished flat at 2,260.28.

Five stocks dropped for every three that rose on the New York Stock Exchange.

The S&P 500 briefly dropped below its lowest closing level in 18 months after Bernanke warned that the housing slump may deepen. The benchmark recovered most of its loss following the Ambac rescue report and after Cisco Systems said it plans to do more takeovers.

All three major US indices had fallen more through the mid afternoon, with the Dow at one point down about 200 points. Shares pared declines in the last hour of trading after a television network said a deal to bail out bond insurer Ambac Financial is progressing.

Wednesday will bring a raft of economic reports, including the monthly report on private sector employment from payroll firm ADP, which will be closely watched ahead of Friday's broader jobs report. Also, reports are due on factory orders and the Institute for Supply Management's reading on the services sector.

The fed's periodic beige book review of the economy is also due.

US light crude oil for April delivery fell $2.93 to settle at $99.52 a barrel in New York. The active-month contract had touched a new trading high of $103.05 Monday in electronic trading.

Gold prices retreated after heading closer to the $1,000 an ounce milestone. COMEX gold for April delivery fell $17.90 to settle at $966.30 an ounce.

Treasury prices tanked, raising the yield on the benchmark 10-year note to 3.61% from 3.53% late on Monday. The dollar stood near an all-time low versus the euro. The greenback also slipped against the yen.

European shares fell as worries about credit-market stress and fears of further asset write-downs by leading global financial firms depressed sentiment across the region. The pan-European Dow Jones Stoxx 600 index dipped 1.3% to 310.26, moving back from early gains.

In Germany, the DAX 30 tumbled 2.2% to 6,545.04, while the French CAC-40 slipped 1.4% to 4,675.91 and the UK's FTSE 100 closed down 0.9% at 5,767.70.

Most emerging markets closed in the red. The Bovespa in Brazil was down 1.3% to 63,655 while the IPC index in Mexico slid 265 points to 29,261. The RTS index in Russia dropped 0.7% to 2018 while the ISE National-30 index in Turkey was down 1.2% at 53,039.

No respite likely for bulls

Markets ended with a deeper cut on Tuesday extending its losses to the third straight trading session. Things got worse for markets post sun-outage, in particular for the banking stocks after a television news channel quoted a top Finance Ministry official saying that the country's biggest commercial bank had losses tied to the subprime mortgage crisis in the US. Also a mixed end to the Asian bourses and a weak start in equity markets across Europe further dampened the sentiments.

Finally, the 30-share Sensex closed at 16,339 losing 337 points after hitting an intra-day high of 16,754 and a low of 16,164. The NSE Nifty closed at 4,864 slipping 88 points touching an intra-day high of 4,967 and a low of 4,812.

Overall about 499 stocks advanced, 2,196 stocks declined while 42 stocks remained unchanged. Among the BSE 30 index 11 stocks advanced while 19 stocks declined.

Among the 30-scrips of Sensex, ICICI Bank, RIL, L&T and Infosys were among the major laggards. However, HDFC, Hindalco, Maruti and M&M were among the major gainers.

ICICI Bank fell over 5% to Rs971 after a television news channel quoted a top Finance Ministry official saying that the country's biggest commercial bank had losses tied to the subprime mortgage crisis in the US. The scrip touched an intra-day high of Rs1035 and a low of Rs930 and recorded volumes of over 92,00,000 shares on NSE.

EKC marginally slipped by 0.5% to Rs303. The company announced that it signed asset purchase pact with Reunion. The scrip touched an intra-day high of Rs314 and a low of Rs285 and recorded volumes of over 61,000 shares on NSE.

NTPC gained by 1% to Rs190. The company said that it is in talks to acquire mines overseas. The scrip touched an intra-day high of Rs194 and a low of Rs186 and recorded volumes of over 75,00,000 shares on NSE.

Tata Communication dropped 3.5% to Rs475. The company said that it rolled out Wimax Network with Telsima The scrip touched an intra-day high of Rs499 and a low of Rs465 and recorded volumes of over 2,00,000 shares on NSE.

Tata Power was down by over 5% to Rs1234. The company announced that they would spend Rs170bn to build plant in Mundra Tata Power says Mundra plant would generate 4,000MW The scrip touched an intra-day high of Rs1329 and a low of Rs1151 and recorded volumes of over 7,00,000 shares on NSE.

PBA Infrastructure edges lower by 0.3% to Rs83. The company announced that it secured Rs423mn contract. The scrip touched an intra-day high of Rs85 and a low of Rs78 and recorded volumes of over 25,000 shares on NSE.

Nestle India gained by 2% to Rs1430 after the company announced its Q4 results with net profit at Rs936.10mn (up 50%) and revenue at Rs9.05bn (up 21.6%). The scrip touched an intra-day high of Rs1441 and a low of Rs1378 and recorded volumes of over 39,000 shares on NSE.

Reliance Industries slipped 2.7% to Rs2243. Reports stated that the pipeline to evacuate gas from the company’s block in the KG basin is set to be commissioned in the next three months. The scrip touched an intra-day high of Rs2338 and a low of Rs2210 and recorded volumes of over 45,00,000 shares on NSE.

News Snippets:

Exploration deadlines for Reliance Industries and ONGC may be extended on account of delays due to rig shortage. (BL)

Tata Motors may license out manufacturing of its small car Nano. (Mint)

Unitech’s US$1.5bn QIP postponed to first quarter of 2008. (BS)

BSNL plans to spend Rs4bn on CDMA expansion. (Mint)

Oil India to pioneer converting gas into LNG to reduce carbon emission levels. (Mint)

ONGC forecasts US$1.6bn fuel subsidy burden. (Mint)

Decision of allowing Cairn India to recover cost of setting up pipeline from crude oil sales will be taken in two weeks. (Mint)

Union Bank to raise Rs6bn through tier II capital and is set to enter new business. (Mint)

Tata Communications to invest US$500mn in Wimax by 2010. (Mint)

M&M acquires Italian automotive design company G.R. Grafica Ricerca Design for an undisclosed amount. (Mint)

NTPC may need 270MT of coal a year by 2017. (Mint)

Tata Steel still in race for Liberian iron ore deposit project. (BS)

Tata Power plans to spend Rs170bn on Mundra plant. (BS)

Indraprastha Gas cuts CNG prices by 30 paise in Delhi. (BS)

Bajaj Auto cuts prices by up to Rs3,000. (BS)

The DoT permits Tata Tele to operate GSM services in 19 circles. (BS)

Vijay Mallya may dilute 15% in the merged Kingfisher Airlines to raise Rs160bn. (BS)

Bank of Baroda, Andhra Bank and UK’s Legal and General group sign JV for life insurance. (BS)

Reliance Retail ties up with Pearle Europe for launch of optical stores in India. (BL)

Ranbaxy secures USFDA approval to sell generic version of Risperdal. (ET)

PNB to sell 27% stake in subsidiary, PNB Gilts. (ET)

IRB Infrastructure secures a 30 year contract for road development and maintenance in Kolhapur from Maharashtra State Road Development Corporation (MSRDC). (ET)

Gail bids for 5.2% stake in Petronet LNG Ltd for Rs15bn. (FE)
DCB to raise Rs3bn to Rs4bn during next fiscal year for its business growth. (FE)

ONGC plans to set up dual cracker petrochemical complex at Dahej with a capacity to produce 1.1mn ton of ethylene. (FE)

Wipro launches e-business suit solution for service providers and network operators. (FE)

NTPC to enter into a JV with two Indonesian coal firms Persada Investama and Sugico Graha. (FE)

Economic Front Page

Union Chemicals Minister to request the Prime Minister to roll back the budget proposal of imposing 5% customs duty on Naptha. (Mint)

The Finance Minister rules out any rollback of budget proposals. (BL)

Government to consider easing FDI norms. (BS)

Government reduces prices of controlled drugs following the excise duty cut on the pharma sector. (BS)

SEBI board may clear real estate mutual funds. (BS)

Finance bill proposes to allow the revenue department to charge excise duty on any article which could be bought or sold. (ET)

DoT rejects special committee reports that recommended a cut in levies on telecom sector. (ET)

SEBI likely to cut all regulatory charges. (ET)

RBI asks Indian banks to work out a policy on issuing Letters of Comfort (LoCs) to their overseas subsidiaries and branches. (FE)

National Pharmaceutical Pricing Authority (NPAA) asks drug companies to cut prices of formulation packs falling under schedule category of 4.58%. (FE)

Morning Call - MArch 5 2008

Market Grape Wine :

In House :

Nifty at a supp of 4800 and 4748 with resis at 4950 and 5050

Cash: Buy HDFC Ltd above 2630 with a TGT of 2715 and a SL of 2590

Buy Hindalco above 200 with a TGt of 212 and a SL of 195

F&O: Buy Rolta above 301 with a TGT of 315 and a SL of 296

Buy Bajajhind above 249 with a TGT of 263 and a SL of 244

Out House :

Markets at a support of 16061 & 16261 and resistance at 16656 & 16786 levels .

Buy : Tisco and Sail

Buy : RPL

Buy : Hindalco & Sterlite

Buy : RIL & REL at dips

Buy : HLL & ITC

Buy : Titan & Bhel at dips

Buy : HLL & ITC

Dark Horse : ITC , Aban , Sail , Centextile , RPL & HLL