Dead Presidents! - India Equity Research

Saturday, May 17, 2008

Long Term Picks - May 17 2008

Buy Chambal Fertilizers

Buy Suzlon

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Buy Tata Power

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India Weekly Snippets - May 17 2008

India's external fundamentals are strong: Moody's

Moody's Investors Service said that the Indian economy's external fundamentals are strong enough to withstand a wide range of potential shocks, including sudden reversals in short-term capital flows, a sharp slowdown in global growth, and weak government finances, or a slowing in structural reforms on account of a fractious political landscape. The Moody's report said that the strong fundamentals, combined with a private-sector induced upturn in savings and investment and a rising rate of potential growth, support the Government's foreign currency sovereign bond rating of Baa3 and local currency bond rating of Ba2. "The government's local currency bond rating of Ba2 balances a high level of indebtedness with a favorable debt structure," said Aninda Mitra, a Moody's VP/Senior Analyst and author of the report. "At the same time, concerns about the size and servicing burden of the government debt is somewhat mitigated by the latter's high local currency content, long tenor, growing domestic savings and a stable creditor base dominated by domestic institutions," added Mitra.

April indirect tax receipts up 11% yoy

Indirect tax collections grew 11% in the first month of the current fiscal year despite a decline in excise collection, the Government said. Excise duty collection fell by 3.9% to Rs64.1bn in April from Rs66.73bn a year ago. Customs duty collection grew by 24.9% to Rs90.18bn in April against Rs72.21bn in the same month last year, thanks to high growth in imports. Total indirect tax collection (excluding service tax) rose by 11% to Rs154.28bn as against Rs138.94bn during the period. Excise duty collection has been falling short of target for quite some time. Revised estimates for collections under this head had to be cut to Rs1.28 trillion for 2007-08 from Rs1.3 trillion in the budget estimates. Even this truncated target could not be met and the Centre could collect only Rs1.25 trillion from excise duty during the year.

No wheat imports this year: Pawar

The Government won't import wheat this year as procurement from the domestic market reached a record, Agriculture Minister Sharad Pawar said. "There's no question of importing this year," Pawar told reporters in New Delhi. The Government imported 1.8mn tons of wheat in 2007. Procurement of wheat is all set to reach 20mn tons as against the target of 15mn tons in the current marketing season. "Though we have a target of 15mn tons, we will reach at 20mn tons. If we reach 20mn tons, wheat imports will not be required," the Agriculture Minister Pawar said on the sidelines of a function organised by industry chamber CII. Pawar said he had discussed wheat procurement with all state governments and the Food Corporation of India (FCI) and the assessment is based on their feedback. Separately, Pawar said the Government does not plan to ban futures trading in more agricultural commodities. The Government last week banned trading in soybean oil, potatoes, chick peas and natural rubber to cool down inflation. "The decision to ban four commodities was taken by the FMC. I think the situation will not be there to extend it beyond four months. I don't think any new commodities will be included in the list," Pawar said.

SEBI clears alternative payment for public/rights issue

The SEBI Board approved the concept of marking lien on bank account as an alternative mode of payment in public / rights issues. The concept will enable the application money to remain in the bank account of the applicant till such time the allotment is finalized and thus eliminate the refund process. The Board also decided to enhance the minimum net worth requirement for registration as a portfolio manager from the existing Rs5mn to Rs20mn and to give effect to the requirement of maintaining continuous networth separately for portfolio management activities. It was also decided that Portfolio Managers should not float a scheme or pool the resources of the client in a way which is akin to mutual fund activity. They would be required to keep assets of each client separately and not in a pooled manner. A time frame of six-months from the date of notification has been given to convert their operations managed on pooled basis to individual basis.

Reliance Infratel, MCX get SEBI nod for IPOs: reports

Market regulator SEBI reportedly cleared the Initial Public Offering (IPO) of Reliance Infratel and Multi Commodity Exchange (MCX). While Reliance Infratel is likely to raise between Rs50-60bn from the IPO, MCX may mobilise up to Rs7bn. Reliance Infratel, a Anil Dhirubhai Ambani Group (ADAG) company is reportedly looking to offload a 10% stake to the public. The company, which is 95% owned by Reliance Communications (RCOM), is planning to offer about 89.16mn shares. It may be recalled that Reliance Infratel had earlier sold a 5% stake to a clutch of investors, including HSBC and George Soros' Quantum Fund. Meanwhile, the MCX issue is aimed at part funding its proposed infrastructure and technological investments. The commodity exchange will raise money partly through issuing fresh equity and partly through offer for sale by Financial Technologies (FT), one of the chief promoters of MCX, and Corporation Bank. Post IPO, FT's stake in MCX will fall to 26% from the current 32%. In February, FT had sold a 5% stake in MCX to NYSE Euronext.

Haven't made any bid for MTN: Bharti Airtel

Bharti Airtel reiterated that its talks with South Africa's MTN Group are exploratory in nature and that it has not made any bid for acquiring Africa's biggest wireless telecom operator. "The company has not made any bid nor is there any requirement to make a bid, as has been incorrectly speculated and reported," Bharti Airtel said. The company also reiterated that the discussions with MTN may or may not lead to any transactions. "Bharti Airtel and MTN are holding talks to combine the strengths of the two leading emerging markets players and accordingly veering towards possible structures to achieve this objective," the New Delhi-based company said. Bharti Airtel submitted an indicative bid for a controlling share in MTN at about 165 South African rand per share, the Financial Times reported on May 5. On May 9, the Dow Jones Newswires reported that Bharti Airtel was considering a bid of 175 rand a share. But, this week, Dow Jones said Bharti Airtel may not pay more than US $45bn for all of MTN, though the South African operator is seeking US $50bn. Meanwhile, some industry observers and merchant banking experts believe that the deal could happen through a merger. A financial daily reports that Bharti Airtel is exploring the possibility of buying 100% of MTN through a scheme of arrangement. It will offer MTN shareholders cash as well as stock. Reports also said that Bharti Airtel had offered the post of Chairman to Matamela Cyril Ramaphosa, the non-executive chairman of MTN. Sunil Mittal, the chairman of Bharti Group, is likely to be group CEO and deputy chairman of the new entity.

SC seeks explanation on Singur land acquisition

The Supreme Court (SC) asked for replies from Tata Motors, the West Bengal government and others as to why fertile multi-crop agricultural land was acquired for the company's small-car project at Singur. A bench headed by the Chief Justice, K.G. Balakrishnan, while issuing notice to Tata Motors, the state government and the West Bengal State Industrial Development Corporation (WBSIDC) posted the matter for further hearing in July. According to reports, Kedar Nath Yadav, a practicing lawyer, had filed a petition, seeking immediate halt to the Nano car project. Yadav had challenged the Calcutta High Court's decision that upheld as legal the acquisition of land at Singur by the West Bengal government. The acquisition of fertile multi-crop agricultural land by the state government in various parts of the state for a number of industrial projects violated farmers' rights guaranteed by the constitution, Yadav argued in his petition. The land acquisition by state also goes against the provisions of Land Acquisition Act, 1894, he said.

Upaid wins case against Satyam Computer

Online and mobile payments service leader, Upaid Systems, announced that the Court of Appeal in London affirmed a January High Court Judgment in Upaid's favour against Satyam Computer Services, soundly rejecting the Indian software leader's effort to block Upaid's fraud and forgery claims in a Texas court. The decision confirms an earlier High Court judgment in favour of Upaid on all points. This ruling allows Upaid's lawsuit against Satyam alleging forgery, fraud, misrepresentation, and breach of contract, and what Satyam admits are "extremely large sums of money", to proceed to a US trial by jury in a Texas federal court. Satyam said it is confident that it has merits in the case involving Upaid Systems, and would contest the case. It is premature to make any judgment on the quantification of any potential damages, Satyam said, adding that the matter is sub-judice. The Hyderabad-based IT major said it is considering all its legal options as regards the dismissed appeal in a London court.

Bajaj, Renault and Nissan form JV company

Rajiv Bajaj, MD of Bajaj and Carlos Ghosn, President & CEO of Renault and Nissan, announced they will form a joint-venture company to develop, produce and market the car code-named "ULC" with wholesale price range starting from US$2500. The new JV will be 50% owned by Bajaj Auto, 25% by Renault and 25% by Nissan. Targeting the growing Indian new vehicle market, ULC will be made at an all-new plant to be constructed in Chakan in Maharashtra. Initial planned capacity will be 400,000 units per year. Sales will start in early 2011 in India, as a primary market, with growth potential in other emerging markets around the world. The feasibility has already extended into Joint Product Development and the project is on line to meet targeted performance and cost, the companies said.

Ranbaxy forms research alliance with Merck

Ranbaxy Laboratories said it had signed a Product Development Agreement with Merck & Co., providing for a drug discovery and clinical development collaboration for new products in the anti-infective field. Ranbaxy and Merck will work together to develop clinically validated anti-bacterial and anti-fungal drug candidates. Ranbaxy will carry out drug discovery and clinical development through Phase IIa clinical trials, with Merck conducting development and commercialization of drug candidates thereafter. The collaboration will begin this year with an initial term of five years and can be extended mutually thereafter by the parties. Under the terms of the agreement, Ranbaxy will be paid an undisclosed upfront sum with the potential to receive payments totaling more than US$100mn associated with achievement of various R&D and regulatory approval milestone for each target included in the collaboration.

RCOM forms JV with Alcatel - Lucent

Reliance Communications (RCOM) and Alcatel - Lucent announced forming a global joint venture. Combining the unique strengths of Alcatel - Lucent and RCOM, the JV would foray in the fast growing US$16bn (Rs640bn) Managed Network Services industry and will cater to telecom operators, both CDMA and GSM, across the globe. The first assignment of this JV will be to provide Managed Services for RCOM's nationwide CDMA and GSM networks in India. The JV will support the expansion and growth of RCOM, within and outside India. A new legal entity is being farmed as part of the JV. Alcatel-Lucent will have the operational control of the new entity. RCOM is represented in the JV through its wholly own subsidiary. The JV would thereafter expand its operations in the global arena.

NTPC eyes coal mines in Indonesia

NTPC plans to buy majority stakes in one or two coal mines in Indonesia, Chairman R.S. Sharma said. The public-sector company may decide on buying the stakes by March, Sharma told reporters in New Delhi. NTPC has selected three banks to advise it on the acquisition, Sharma said, without giving names. The company seeks to buy assets with reserves of 200mn tons to 300mn tons, he added. "We have already appointed three merchant bankers for this and our endeavour is to finalise the stake purchase by the end of this financial year," Sharma said. Separately, NTPC decided to allocate 0.5% of distributable profit annually for its "Research and Development Fund for Sustainable Energy". This fund will be used for sponsoring / undertaking research leading to development of green and clean technologies. The research may include development of

China rocked by major quake

A strong earthquake measuring 7.9 on Richter scale rattled southwest China, causing buildings to shake in Beijing. The quake hit Wenchuan County of China's Sichuan province, less than 100 km from the provincial capital of Chengdu, the US Geological Survey said. It struck 90 kms west-northwest of Chengdu at 2:28 p.m. local time on May 12 at a depth of 10 kilometers, the USGS said. The effect of the quake was felt as far away as Thailand. The cost of the devastating earthquake in China, which killed nearly 15,000 people, is likely to exceed US$20bn, according to leading disaster modelling firm AIR Worldwide. The earthquake was the worst to hit China in 32 years. AIR warned that the full extent of the damage could take weeks to discover. Rescue workers struggled to reach some of the worst affected areas and tens of thousands of people were still buried under collapsed buildings. The number of deaths announced so far rose to 19,500 in Sichuan province, the centre of the earthquake.

Markets still not completely stable: Bernanke

Though financial markets have stabilised in the past few weeks they still remain stressed, Federal Reserve chairman Ben S. Bernanke said. The Fed's liquidity measures appear to have contributed to some improvement in financing markets, Bernanke said. However, he added that conditions in financial markets are still far from normal. Bernanke noted some improvements in the markets for certain mortgage-backed securities, such as those backed by Fannie Mae and Freddie Mac, as well as some fixed-rate mortgages and corporate debt. Moreover, the Fed's extraordinary decision in March to let investment firms go to the Fed for emergency loans seems to have bolstered confidence, Bernanke said. The central bank has taken a number of steps to help ease the credit crunch. Still, there are strains involving a widely used interest rate called the London interbank offered rate, or Libor, Bernanke said. And funding pressures have also been evident in the strong participation of commercial banks in a Fed auction program that has made billions of dollars available in short-term cash loans, he said. The Fed policymakers stand ready to further increase the size of these loans in the future if warranted by financial developments, Bernanke added.

China hikes reserve requirement again

The Chinese central bank raised banks' reserve requirement for the fourth time this year to soften inflation which accelerated further last month due to rising food costs. The reserve requirement rose to a record 16.5% of deposits from 16%, the People's Bank of China said. The increase takes effect on May 20 and is aimed at curbing excess liquidity and soaring inflation. The hike came only a few hours after official data showed that China's consumer price index (CPI) accelerated at a faster-than-expected 8.5% pace in April from the year-ago period. The increase will freeze about 208bn yuan (US$30bn) in the banking system, and may help cool the world's fastest-growing economy. Having said that, a 7.5% increase in the reserve requirement since the start of last year has failed to stop lending growth. The central bank has kept the benchmark one-year lending rate unchanged at a nine-year high of 7.47% this year after six increases in 2007. The government has also slowed the pace of yuan gains since April.

Eurozone economy grows faster than expected

Germany and France, two of eurozone's biggest economies, paced economic growth in the EU during the first quarter, despite a global credit crisis and a slowdown in the United States. GDP in the euro area increased 0.7% from the previous three months, when it rose 0.4%, the European Union's Luxembourg-based statistics office said. The reading exceeded average forecast of a 0.5% gain. Germany's economy surged to the fastest pace in 12 years and growth in France surpassed expectations, even as Spain suffered its weakest expansion in almost eight years. While Italy doesn't report GDP data until May 23, economists said it may already have slipped into a recession. The ECB has resisted pressures to cut interest rates to boost growth in the wake of the US slowdown and turbulence in financial markets. It has indicated it is in no rush to cut rates and wants to contain inflation. Figures published showed euro-area inflation eased to 3.3% in April from a 16-year high of 3.6% in March, still well above the ECB's 2% ceiling. ECB President Jean-Claude Trichet said last week inflation will remain high for some time and moderate only gradually

Japanese GDP growth beats forecast

Japan's economy grew at a faster than expected pace in the first quarter of the year, marking its third consecutive expansion amid strong exports to Asia and other emerging markets. A rebound in private residential investment also helped the world's second-biggest economy to weather a slowdown in the US. Gross Domestic Product (GDP) in the January-March period rose 0.8% from the last quarter, or 3.3% annualised, the Cabinet Office said today. Economists had expected the Japanese economy to grow 0.7% for the quarter. Fourth-quarter growth was revised to 2.6% from 3.5%, the Cabinet Office said. Finance Minister Fukushiro Nukaga and Economy Minister Hiroko Ota said they're concerned about the outlook for business investment, which fell 0.9% last quarter. The risk of weaker growth prompted the Bank of Japan last month to shelve its policy of gradually raising interest rates. Governor Masaaki Shirakawa and his board are expected to hold the key rate at 0.5% at the end of their next meeting on May 20 and most economists say borrowing costs will stay unchanged this year.

Icahn mounts proxy war against Yahoo

Yahoo shares surged after activist shareholder Carl Icahn launched a campaign to overthrow the Internet giant's board as part of an effort to restart deal talk with Microsoft. Icahn said he owns the equivalent of 59mn Yahoo shares, and has permission to acquire up to US$2.5bn worth. He created a slate of 10 nominees for board seats, including Mark Cuban and Frank Biondi Jr. All 10 of Yahoo's directors are up for re-election at the annual meeting on July 3. In a letter to Yahoo's board, Icahn said that a combination with Microsoft is by far the most sensible path if the Internet company wants to take on Google. "The board of directors of Yahoo has acted irrationally and lost the faith of shareholders and Microsoft,'' said Icahn, 72. "I sincerely hope you heed the wishes of your shareholders and move expeditiously to negotiate a merger with Microsoft, thereby making a proxy fight unnecessary.'' Yahoo said it was right to reject Microsoft's US $47.5bn offer and that its directors are the most qualified to boost the company's value. Icahn has a significant misunderstanding of Microsoft's offer and the response of Yahoo's board, Yahoo chairman Roy Bostock said. He said Yahoo is willing to consider any proposals, including from Microsoft, that offer shareholders full value. Yahoo's board met more than 20 times to review Microsoft's offer and other options, keeping an open mind and an open ear," Bostock said.

Rupee hits 13 month low

The Indian rupee fell to a 13-month low as public sector oil companies continued to buy dollars to pay for crude oil, which surged to a new all-time high above US$127 per barrel. Also, data showing inflation touching a new three and a half year high heightened worries about slowing economic growth amid record oil prices and slowing foreign capital inflows.

The rupee lost 2.2% during the week to close at 42.5075 a dollar, adding to last week's 2.3% fall. It earlier dropped to 42.92, the lowest intraday level since April 12, 2007. But, it recovered some ground on speculation that the Government will ease curbs on overseas borrowings, allowing more capital inflows. At its low of the day, the rupee was down 8.2% in 2008. It had risen more than 12% against the dollar in 2007. The currency's near 8% decline this year is the third-worst performance among the 10 most-traded Asian currencies after the South Korean won and the Thai baht.

Government data showed annual inflation at 7.83% for the week ended May 3, while provisional inflation rate for the week ended March 8 was revised up to 7.78% from 5.92%. Earlier this week, data showed that the annual pace of growth in industrial production more than halved to 3% in March from 8.6% in the previous month. The gain was the smallest since February 2002.

Crude oil, India's biggest import, hit record highs near US$127 a barrel this week, raising the risk of the trade deficit widening. Moreover, FIIs have sold Indian equities worth US$2.9bn this year, a sharp turnaround from record net purchases of US$17.4bn last year.

On a trailing 12-month basis, the current account deficit - excluding remittances and trade deficit - remain high at around 4.5% and 7.2% of GDP, respectively, says Morgan Stanley. Higher oil prices will likely add further to the trade deficit, the US brokerage adds. The rupee may fall by 5-7% against the US dollar by the end of 2008, dragged down by a slew of factors such as a widening trade deficit, and soaring oil and commodity prices, Morgan Stanley said in a note.

Industrial output growth hits 6-year low

If inflation hitting a three-year high was not enough, the Indian economy received another jolt with the industrial output falling to a six-year low in March. High interest rates, coupled with spiraling costs and a US-led global slowdown hit industrial activity during the last month of FY08. However, some economists pointed out that the figures weren't quite as bad as the Index of Industrial Production (IIP) actually witnessing an increase of a few basis points over the previous month. The major culprit was the manufacturing sector, which has three-quarters weightage in the IIP while consumer durables segment too remained in the doldrums.

Industrial production grew by just 3% in March as against 8.6% in February. The figure was much lower than average expectations of 5.5-6%. In the corresponding month last year, industrial output grew by a whopping 14.8%. Growth in the manufacturing sector sank to 2.9% from an impressive 16% in the same month last year. The mining sector expanded by 3.8% in March as against 8% in the same month last year. Electricity grew at a 3.7% pace in the month versus 7.9% in March 2007.

As many as 12 out of the 17 industry groups, showed positive growth during March. ‘Jute & Other Vegetable Fibre Textile)’ showed the highest growth of 62.7%, followed by 24.9% in ‘Other Manufacturing Industries’ and 12.7% in ‘Leather and Leather & Fur Products’. On the other hand, ‘Metal Products & Parts’ showed a negative growth of 25.8% followed by 5.8% in ‘Wood & Wood Products; Furniture & Fixtures’ and 5.5% in ‘Textile Products’.

Basic Goods, Capital Goods and Intermediate Goods recorded a growth of 3.1%, 8.6% and 3.5%, respectively compared to 11.9%, 18.1% and 15.3% in the same month last year. Consumer Durables witnessed a negative growth of 2.1% versus 3.8% in March 2007. Consumer Non-durables registered a modest growth of 0.6% as against a strong expansion of 20.2% in the year-ago month. The overall growth in Consumer Goods was (-) 0.1% as against 15.8% in March 2007.

During the fiscal year ended March 2008, the industrial output growth stood at 8.1% versus 11.6% in the previous fiscal year. This is its slowest pace in four years. Industrial production growth would average 6-6.5% in Q1 FY09 as the high base effect of last year gradually wears off. Industrial output will then pick up to around 8% from Q2 FY09 onwards. However, with rising inflation and the risk of further monetary tightening, industrial production growth is most likely to fall. FY09 growth will decelerate to 7.5-8% from 8.1% in FY08.

Weekly Market Update - May 17 2008

Tracking its Asian peers, the Sensex opened 96 points down on Monday at 16,641 from the previous close of 16,737. The bears came out with renewed vigour taking cues from the weak IIP data and hammered the Sensex down further, to test its day low of 16,546.55 points.

The sharp rise in the US dollar against the rupee attracted investors fancy to technology stocks and the sensex salvaged some gains to finish the day at 16,737.07 with a modest rise of 123 points.

Gradually the bulls gained the upper-hand from Tuesday onwards, and made attractive gains, shrugging of the news of Jaipur blasts.

To wrap-up the week, the Sensex all through stayed firm and absorbed the negative news such as the relentless rise in oil prices, the 7.83 per cent inflation rate and gained nearly 700 points to finish at 17,434.96.

The BSE Mid-cap and smallcap indices fell Monday on concerns of surging inflation, and ever-increasing crude oil prices.

On Monday, the overall markets perceived the rise in oil prices as negative. Cairn Energy bucked the trend and breached its all time high to finish at Rs 305, with a phenomenal increase in volumes.

Shares of MphasiS Ltd, an EDS company, rose 9.88 per cent on Tuesday on reports that Hewlett-Packard is in talks to buy IT outsourcing company Electronic Data Systems Corp for about $13 billion. MphasiS shares gained Rs 21.80 to close at Rs 242.45.

Cement stocks on Wednesday continued their free fall, with the Government exerting pressure on companies to lower prices, thereby squeezing the profit margins.

Local aluminium stocks reacted to higher aluminium prices on the LME. Nalco, which claims to be the lowest cost producer in the world, moved up by over 6 per cent. Hindalco went up by 3 per cent on Wednesday.

Even as IT stocks were doing well, Satyam Computers came under a heavy selling pressure with large volumes on the negative fall-out of the court room battle. The stock was down nearly 5 per cent to finish at Rs 485 on Thursday.

Sugar stocks surged sharply on Thursday owing to the SC ruling allowing sugar mills in Uttar Pradesh to pay farmers Rs 110 per 100 kg for cane. All the major sugar stocks were on a roll.

As the rupee continues to fall against the dollar, textile stocks seemed to have shed the burden of the appreciating rupee and gained favour among investors. Arvind Mills has gone up by 20.19 per cent from a month ago, and other textile stocks have followed the trend.

Steel Authority of India on Friday reported its highest-ever net profit of Rs 7,536.78 in fiscal 2007-08, as sales and prices increased. The scrip was on fire helped by short-covering to gain 7.33 per cent and finish the day at 185.90.

NSE Bulk Deals to Watch - May 16 2008

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
16-MAY-2008,APTECHT,Aptech Limited,FIDELITY MANAGEMENT AND RESEARCH COMPANY,BUY,269750,246.91,-
16-MAY-2008,HARRMALAYA,Harrisons Malayalam Ltd,PRASHANT JAYANTILAL PATEL,BUY,153646,104.19,-
16-MAY-2008,HYDRBADIND,Hyderabad Industries Ltd,ASTUTE COMMODITIES & DERIVATIVES Pvt Ltd,BUY,52121,200.20,-
16-MAY-2008,OMNITECH,Omnitech Infosolutions Li,MBL & COMPANY LTD.,BUY,75392,199.31,-
16-MAY-2008,HARRMALAYA,Harrisons Malayalam Ltd,PRASHANT JAYANTILAL PATEL,SELL,153646,105.32,-
16-MAY-2008,HYDRBADIND,Hyderabad Industries Ltd,ASTUTE COMMODITIES & DERIVATIVES Pvt Ltd,SELL,38875,199.23,-
16-MAY-2008,OMNITECH,Omnitech Infosolutions Li,MBL & COMPANY LTD.,SELL,75392,200.23,-
16-MAY-2008,SITASHREE,Sita Shree Food Products,SOPHIA GRWOTH - A SHARE CLASS OF SOMERSET INDIA FUND,SELL,393415,45.03,-

BSE Bulk Deals to Watch - May 16 2008

Deal Date Scrip Code Scrip Name Client Name Deal Type * Quantity Price **
16/5/2008 532975 AISHWARYA TE RICHA N SHAH B 80567 121.99
16/5/2008 532975 AISHWARYA TE CHIRAG D MEHTA B 104543 121.79
16/5/2008 532975 AISHWARYA TE BHASKAR SHANKARBHAI PATEL B 100000 121.84
16/5/2008 532975 AISHWARYA TE DIPAL DEVENDRA SHAH B 70000 122.30
16/5/2008 532975 AISHWARYA TE RAHUL DOSHI B 72458 121.89
16/5/2008 532975 AISHWARYA TE KORADIA CONSTRUCTION PVT B 100000 121.57
16/5/2008 532975 AISHWARYA TE PRABHUDAS LILLADHER PVT. LTD. B 447956 122.73
16/5/2008 532975 AISHWARYA TE N D NISSAR B 859049 122.01
16/5/2008 532975 AISHWARYA TE MANSI SAH B 138239 121.70
16/5/2008 532975 AISHWARYA TE SMITA VILAS MARATHE B 236091 153.21
16/5/2008 532975 AISHWARYA TE JAYSHREE R MEHTA B 108000 121.35
16/5/2008 532975 AISHWARYA TE BHUPENDRA SINGH CHOUHAN B 119507 121.96
16/5/2008 532975 AISHWARYA TE AMU SHARES AND SEC LTD B 77002 122.39
16/5/2008 532975 AISHWARYA TE MUKESH SHAH B 349358 122.04
16/5/2008 532975 AISHWARYA TE MANISH V SARVAIYA B 54562 121.25
16/5/2008 532975 AISHWARYA TE RICHA N SHAH S 80567 122.19
16/5/2008 532975 AISHWARYA TE CHIRAG D MEHTA S 104543 121.85
16/5/2008 532975 AISHWARYA TE BHASKAR SHANKARBHAI PATEL S 100000 121.58
16/5/2008 532975 AISHWARYA TE ANIL.SHRIMAL S 93679 124.10
16/5/2008 532975 AISHWARYA TE SANJAY KUMAR YADAV S 54077 121.88
16/5/2008 532975 AISHWARYA TE DIPAL DEVENDRA SHAH S 70000 122.88
16/5/2008 532975 AISHWARYA TE RAHUL DOSHI S 72458 122.52
16/5/2008 532975 AISHWARYA TE KORADIA CONSTRUCTION PVT S 125000 122.29
16/5/2008 532975 AISHWARYA TE PRABHUDAS LILLADHER PVT. LTD. S 447956 122.84
16/5/2008 532975 AISHWARYA TE N D NISSAR S 859049 122.16
16/5/2008 532975 AISHWARYA TE MANSI SAH S 138239 121.28
16/5/2008 532975 AISHWARYA TE SMITA VILAS MARATHE S 236091 153.76
16/5/2008 532975 AISHWARYA TE JAYSHREE R MEHTA S 108000 122.00
16/5/2008 532975 AISHWARYA TE BHUPENDRA SINGH CHOUHAN S 119507 121.80
16/5/2008 532975 AISHWARYA TE AMU SHARES AND SEC LTD S 77002 122.49
16/5/2008 532975 AISHWARYA TE MUKESH SHAH S 349358 122.29
16/5/2008 532975 AISHWARYA TE MANISH V SARVAIYA S 54562 121.30
16/5/2008 531223 ANJANI SYNTH NILESH RASIKLAL PANDYA B 70453 43.45
16/5/2008 531223 ANJANI SYNTH NILESH RASIKLAL PANDYA S 70453 42.58
16/5/2008 519485 ASIA IND NET ATUL NAGINBHAI CHAUHAN B 22524 13.18
16/5/2008 507944 BAJAJ STEEL SHEETAL RAJESH JAIN S 32274 174.88
16/5/2008 532397 CONTECH SOFT DEEPAK GOBINDRAM PUNJABI B 50000 24.51
16/5/2008 532271 CYBERMAT INF EDELWEISS ESTATES PRIVATE LIMITED S 654333 5.63
16/5/2008 517973 DMC INTER HITECH COMPUTECH PRIVATE LTD S 35000 13.22
16/5/2008 532022 FILAT FASH KISHOR B GIRI S 30000 33.26
16/5/2008 532318 GEMINI COMMU MAHESH CHOTALAL SHAH S 104214 264.38
16/5/2008 516078 JUMBO BAG LT SANJAYKUMAR C JAIN B 50000 30.40
16/5/2008 516078 JUMBO BAG LT RINA ASHISHBHAI SHAH S 57069 30.45
16/5/2008 531602 KOFF BR PICT PRAVIN D GALA B 33100 21.99
16/5/2008 531261 KUSHAGRA SO ROMY REALTY PRIVATE LTD. B 157025 7.87
16/5/2008 522298 MICRO FORGE GEOMETRIC SEC AND ADV PVT LTD B 48600 16.52
16/5/2008 522199 MONOZYM INDI VINAY SHARMA B 60000 4.19
16/5/2008 517522 RAJ GLO WIR SUNIL CHORDIA B 100000 60.70
16/5/2008 517522 RAJ GLO WIR RAJRATAN RESOURCES PVT. LIMITED B 150000 60.70
16/5/2008 517522 RAJ GLO WIR CHANDANMAL CHORDIA S 250000 60.70
16/5/2008 530253 RAJAS TUBE M APL INFRASTRUCTURE PRIVATE LIM S 90000 14.30
16/5/2008 532972 SANKHYA INFO SMITA VILAS MARATHE B 50726 121.91
16/5/2008 532972 SANKHYA INFO SMITA VILAS MARATHE S 50726 121.96
16/5/2008 532498 SHRIRAM CITY INDIA ADVANTAGE FUND VI B 1428571 385.00
16/5/2008 532498 SHRIRAM CITY VINAMRA UNIVERSAL TRADERS PVT LTD B 771483 385.00
16/5/2008 532498 SHRIRAM CITY CPIM STRUCTURED CREDIT FUND A 1000 LTD S 733333 385.00
16/5/2008 532498 SHRIRAM CITY CPIM STRUCTURED CREDIT FUND A 1500 LTD S 266667 385.00
16/5/2008 532498 SHRIRAM CITY CPIM STRUCTURED CREDIT FUND A 20 LTD S 1200000 385.00
16/5/2008 523606 SIKA INTERP NEERJA CHAWLA S 9387 68.04
16/5/2008 532961 SITA SHREE SOPHIA GROWTH A CLASS OF SOMERSET INDIA FUND S 393410 45.03
16/5/2008 590046 SMRUTHI ORG RAJIV ARORA B 42859 68.85
16/5/2008 590046 SMRUTHI ORG RAJIV ARORA S 29621 70.12
16/5/2008 531781 SURYADEEP CH UNIVERSAL CREDIT B 83000 2.67
16/5/2008 511431 VAKRAN SOFTW AYODHYAPATI INVESTMENT PVT. LTD. B 185403 251.90
16/5/2008 511431 VAKRAN SOFTW AYODHYAPATI INVESTMENT PVT. LTD. S 185403 253.60
16/5/2008 517498 WEBEL SL ENE BLACKSTONE ASIA ADVISORS LL.. B 100812 350.00
16/5/2008 517498 WEBEL SL ENE MORGAN STANLEY MAURITIUS CO LTD S 124303 350.11

Friday, May 16, 2008

Post Market Commentary - May 16 2008

Indian market closed higher due to the positive cues from global markets that led the investors to take fresh positions during the trading session. The Indian markets opened on a strong note but was unable to sustained at the higher levels as the profit booking prevailed. The volatility gripped the since the initial bell as the declaration of the inflation figures was round the corner. The inflation for the week ended 3rd May 2008 surged to its highest level in nearly 4 years to 7.83% as against 7.61% reported last week. But at last the market managed to regain its momentum to close in the positive territory. From the sectoral front, the metal and bankex stocks were in limelight because most of the buying was seen from these baskets. The market breadth was positive as 1547 stocks closed in green while 1137 stocks closed in red.

The BSE Sensex closed higher by 81.40 points at 17,434.94 and NSE Nifty closed up by 42.45 points at 5,157.70. The BSE Mid Caps and Small Cap closed higher by 49.45 points and 73.85 points at 7,129.70 and 8,620.26 respectively.

Gainers from BSE are Ranbaxy Lab (3.29%), Reliance Communication Ltd (2.18%), HUL (2.14%), HDFC Bank Ltd (1.77%), J P Associates (1.69%), SBI (1.39%) and ICICI Bank Ltd (1.34%).

Losers from the BSE are Ambuja Cement (1.07%), Infosys Tech (1.07%), Housing Development Finance Co (0.95%), TCS Ltd (0.94%), Bharti Airtel (0.57%), and Cipla Ltd (0.56%).

The Metal index advanced by 317.64 points to close at 17,058.01. Gainers are JSW SL (7.48%), Steel Authority (7.33%), Gujarat Nre C (6.05%), Sterlite Induastries (2.59%), Ispat Industries (1.83%) and Nat Aluminum Co (1.28%).

The Banking index closed up by 135.27 points at 8,941.28. Gainers are Punjab National Bank (6.09%), Bank of India (5.69%), Kotak Bank (2.02%), Central bank (1.93%), HDFC bank Ltd (1.77%) and CBOP (1.64%).

The Capital Goods Index closed higher by 95.95 points at 13,696.75. Gainers are Kirloskar Oil Eng (6.10%), Suzlon Energy (5.61%), Elecon Eng (2.25%), Lakshmi Ma W (1.47%), Aiaengineer (1.38%) and L&T (1.14%).

The Oil & Gas index ended higher by 83.82 points at 11,289.58. Gainers are Aban Offshore (7.95%), Bharat Petroleum Corporation Ltd (5.59%), Cairn India (4.14%), Hindustan Petroleum Corporation Ltd (3.76%) and Indian Oil (2.71%).

The Health Care index moved forward by 35.49 points to close at 4,321.48. Gainers are Matris Lab (7.70%), Lupin Ltd (5.05%), Bil Care Ltd (3.52%), Ranbaxy Lab (3.29%), Sun Pharma Ltd (2.52%), and Cadila Healthcare (1.71%).

Market may trade in a range

The market is likely to be rangebound in the absence of any major domestic trigger, with Q4 March 2008 results nearing end. The market has reached a stage where liquidity will pull the prices up and valuations will keep them under control. The market will have its bit of volatility due to these two opposing forces. It will test the patience of investors and the nerves of the traders.

Next week is a curtailed trading week as the market remains closed on Monday, 19 May 2008, on account of Buddha Pournima.

Inflation data will be closely watched as it remains as a major worry and hindrance for the domestic growth. High inflation may compel the government to take more fiscal measures to rein in prices in addition to slew of measures taken recently.

The wholesale price index rose 7.83% in 12 months to 3 May 2008, higher than previous week's annual rise of 7.61%, government data released on 16 May 2008, showed. It was the highest since an annual reading of 7.93% n 6 November 2004. The annual inflation rate was 5.74% during the corresponding week of the previous year.

The government has taken a slew of fiscal measures such as ban on export of cement and non-basmati rice, cut in import duty on some items and imposition of export duty on some steel items to rein in rising prices.

Foreign institutional investors (FII) have, so far, sold shares worth Rs 529.10 crore this month, till 14 May 2008. They sold shares worth Rs 10,887.20 crore in calendar year 2008, till 14 May 2008. Domestic funds sold shares worth Rs 639.80 this month, till 14 May 2008.

The BSE Sensex rose 697.87 points or 4.17% to 17,434.94 in the week ended Friday, 16 May 2008. The S&P CNX Nifty rose 175.10 points or 3.51% to 5157.70 in the week.

The BSE Mid-Cap index rose 137.04 points or 1.96% at 7,129.70 in the week. The BSE Small-Cap index rose 114.62 points or 1.35% at 8,620.26.

Brigade Enterprises zooms

Brigade Enterprises rose 12.54% to Rs 215.40. It topped gainers in BSE’s A group shares. The company’s reported net profit of Rs 21.41 crore on sales of Rs 128.11 crore in Q4 March 2008. Figures for the corresponding previous year period were not available. The company announced the results on 24 April 2008.

Chambal Fertilisers and Chemicals rose 8.57% to Rs 79.20. It was the second biggest gainer in A group. The company’s net profit rose 268.4% to Rs 19.38 crore on 22.2% rise in sales to Rs 596.95 crore in Q4 March 2008 over Q4 March 2007. It announced the result on 15 May 2008.

Aban Offshore rose 7.95% to Rs 3,889.65. It was the third biggest gainer in A group. The company’s net profit rose 17% to Rs 34.55 crore on 65.5% rise in sales to Rs 196.39 crore in Q4 March 2008 over Q4 March 2007. It announced the result on 29 April 2008.

JSW Steel rose 7.48% to Rs 1,110.95. It was the fourth biggest gainer in A group. The company said on 14 May 2008 its crude steel production jumped 14% to 2.84 lakh tonnes in April 2008 over April 2007. The company achieved 33% growth in production of rolled long products segments to 34,000 tonnes in April 2008 over April 2007.

Steel Authority of India rose 7.33% to Rs 185.90. It was the fifth biggest gainer in A group. The company reported 24.97% rise in net profit to Rs 2376.76 crore on 30.42% increase in total income to Rs 13855.25 crore in Q4 March 2008 over Q4 March 2007. Steel Authority of India (Sail)’s net profit rose 21.52% to Rs 7536.78 crore on 17.59% increase in total income to Rs 41517.04 crore in the year ended March 2008 over the year ended March 2007. It announced the results during trading hours today, 16 May 2008.

Market shrugs off weak industrial production data

The key benchmark indices soared last week shrugging off weak industrial production data, high inflation and soaring global crude oil prices. Depreciating domestic currency against the dollar boosted export driven IT stocks.

The BSE Sensex rose 697.87 points or 4.17% to 17,434.94 in the week ended Friday, 16 May 2008. The S&P CNX Nifty rose 175.10 points or 3.51% to 5157.70 in the week.

The BSE Mid-Cap index rose 137.04 points or 1.96% at 7,129.70 in the week. The BSE Small-Cap index rose 114.62 points or 1.35% at 8,620.26.

The wholesale price index rose 7.83% in 12 months to 3 May 2008, higher than previous week's annual rise of 7.61%, government data released on 16 May 2008, showed. It was the highest since an annual reading of 7.93% n 6 November 2004. The annual inflation rate was 5.74% during the corresponding week of the previous year.

India's industrial production growth dropped sharply to 3% in March 2008, slowing from the previous month's unrevised 8.6%, government data showed on Monday, 12 May 2008. It was the slowest annual growth since a 2.4% rise in February 2002.

Manufacturing production rose 2.9% in March 2008 from a year earlier, compared with 8.6% growth in February 2008. Industrial output rose 8.1% in 2007/08 compared with 11.6% in 2006/07.

US light crude for June delivery surged to a record high of $126.98 on Tuesday, 13 May 2008. However, that price eased to $123.74 on 15 May 2008 as rising US distillates stocks and Iran's reassurances that it would not cut crude exports added to a strengthening US dollar to limit the upside.

India's rupee fell to the lowest level since April 2007 to 42.445 per dollar on Wednesday, 14 May 2008 on speculation record crude oil prices will widen the nation's trade and current-account deficits, increasing demand for foreign currencies. The currency also weakened after overseas investors further sold local equities.

Foreign institutional investors (FII) have, so far, sold shares worth Rs 529.10 crore this month, till 14 May 2008. They sold shares worth Rs 10,887.20 crore in calendar year 2008, till 14 May 2008. Domestic funds sold shares worth Rs 639.80 this month, till 14 May 2008.

On 12 May 2008, frenzied buying in late trade helped market snap its five-day slide. The 30-share BSE Sensex rose 123.83 points or 0.74% to 16,860.90. The broader based S&P CNX Nifty was up 30.05 points or 0.60% at 5,012.65.

On 13 May 2008, Indian equities reversed early gains in choppy trade to settle lower closely mirroring European markets which opened after Indian market. The 30-share BSE Sensex slipped 108.04 points or 0.64% at 16,752.86. The broader based S&P CNX Nifty shed 54.85 points or 1.09% at 4,957.80.

On 14 May 2008, Relentless buying in software and metal stocks in late trade propelled market higher after a nervous start. The 30-share BSE Sensex surged 225.49 points or 1.36% at 16,978.35. The broader based S&P CNX Nifty gained 53.95 points or 1.09% at 5,011.75.

On 15 May 2008, the market settled near day’s highs helped by late buying frenzy in index pivotals. Shares from real estate, software and capital goods were at the forefront of the rally. The 30-share BSE Sensex surged 375.19 points or 2.21% at 17,353.54. The broader based S&P CNX Nifty gained 103.50 points or 2.07% at 5,115.25.

On 16 May 2008, rally in Asian and European markets, and firm US stock futures indicating higher opening of US stocks helped Indian market shrug off a surge in inflation to highest level in more than three years. Shares from banking and metal advanced on renewed buying. The 30-share BSE Sensex rose 81.40 points or 0.47% at 17,434.94. The broader based S&P CNX Nifty advanced 42.45 points or 0.83% at 5157.70.

India's biggest mobile operator by market share Bharti Airtel rose 1.09% to Rs 851.35. The firm is reportedly evaluating a bid for South Africa-based communication services provider MTN Group.

India's largest pharma company in terms of sales Ranbaxy Laboratories gained 8.79% to Rs 510.70. Ranbaxy Laboratories signed a deal to develop new anti-infective drugs for US-based Merck & Co Inc. As per the deal, Ranbaxy will carry out drug discovery and clinical development through Phase II clinical trials, while Merck will be responsible for the development and commercialisation.

India's largest private sector company in terms of market capitalisation and oil refiner Reliance Industries (RIL) rose 4.25% to Rs 2635.20. Recently, RIL had shut all of its 1,432 petrol pumps in the country after sales dropped to almost nil as it could not match the subsidised price offered by public sector competition.

Depreciation in Indian currency against the dollar generated interest in software counters as the Indian software firms earn more than half of their revenue in dollar terms. India's largest software services exporter TCS surged 6.40% to Rs 976.15, Infosys Technologies, the nation's second biggest software exporter by sales, spurted 6.89% to Rs 1871.19 and Wipro, the third largest exporter by sales, flared up 0.99% to Rs 506.15.

India's top tractor maker Mahindra & Mahindra (M&M) fell 1.52% to Rs 662. The company said on Friday, 9 May 2008, it is hiking vehicle prices in the range of 1.5% to 2.5% due to rise in input costs. The price hikes will come into effect from 19 May 2008.

India's largest private sector aluminium company in terms of sales Hindalco Industries jumped 17.37% to Rs 203.70.

India's biggest private sector lender by assets ICICI Bank galloped 7.68% to Rs 941.15

India’s largest cellular services provider in terms of market capitalisation Reliance Communications gained 11.65% to Rs 601.85. Reliance Infratel, a 95% telecom infrastructure subsidiary of the company is reported to have secured the Securities and Exchange Board of India (Sebi)’s nod for a public issue. The Anil Ambani group company may offload a 10.05% stake in Reliance Infratel to raise Rs 5,000-6,000 crore through the IPO.

Infrastructure sector output rose 9.6% in March 2008 from a year earlier, faster than a downwardly revised 7.1% growth in February 2008, data released by the government showed. Output had risen an annual 10.5% in March 2007. It rose 5.6% in the fiscal year 2007/08.

Tourist arrivals in India rose 10.7% to 3,69,677 in April 2008 over April 2007, the government data showed on Monday, 12 May 2008. Foreign exchange earnings from the sector rose 6.8% to $817 million in April 2008 over April 2007.

C. Rangarajan, chairman of Prime Minister’s Economic Advisory Council, on 12 May 2008, said the annual inflation rate is expected to moderate to 6% in the next three to four months from 3-½ year highs of 7.6% in late April 2008. Rangarajan said the economy is expected to grow 8% to 8.5% in the fiscal year ending March 2009 as high global oil prices shave off some momentum.

Third straight day of gains

Rally in Asian and European markets, and firm US stock futures indicating higher opening of US stocks today helped Indian market shrug off a surge in inflation to highest level in more than three years. Shares from banking and metal advanced on renewed buying.

The Dow Jones Industrial Average futures were up 25 points to 13017 while Nasdaq futures were up 4.25 points to 2040.

The 30-share BSE Sensex rose 81.40 points or 0.47% at 17,434.94. The barometer index opened with an upward gap of 122.87 points at 17,476.41. It struck a high of 17,497.36 in early trade. At the day’s high, Sensex gained 143.82 points. Sensex lost 38.02 points at day’s low of 17,315.52 touched in early afternoon trade.

The broader based S&P CNX Nifty advanced 42.45 points or 0.83% at 5,157.70. Nifty May 2008 futures were at 5148 a discount of 9.70 points as compared to spot closing

As per provisional data, foreign funds bought shares worth a net Rs 475.87 crore today, 16 May 2008. Domestic funds bought shares worth Rs 392.10 crore.

The BSE Sensex has gained 682.08 points or 4.07% in three trading sessions from 16752.86 on 13 May 2008, on firm global markets and due to depreciation of the rupee against the dollar which has lifted export driven IT shares.

The wholesale price index rose 7.83% in 12 months to 3 May 2008, higher than previous week's annual rise of 7.61%, government data released today, 16 May 2008, showed. It was the highest since an annual reading of 7.93% n 6 November 2004. Meanwhile, the government also revised inflation for the week ended 8 March 2008 sharply upwards to 7.78% as compared to 5.92% reported earlier.

The market breadth was strong on BSE with 1521 shares advancing as compared to 1160 that declined. 86 remained unchanged.

The BSE Mid-Cap index was up 0.70% to 7,129.70 while the BSE Small-Cap index gained 0.86% to 8,620.26. Both these indices outperformed the Sensex.

The total turnover on BSE amounted to Rs 6085 crore as compared to Rs 6,484.97 crore yesterday, 15 May 2008. Turnover in NSE’s futures & options segment amounted to Rs 37876.68 crore as compared to Rs 38196.16 crore yesterday, 15 May 2008

All sectoral indices on BSE logged gains barring the BSE IT index which shed 0.42% to 4,467.55.

The BSE Oil & Gas index (up 0.75% to 11,289.58), BSE Bankex (up 1.54% at 8,941.28), BSE Capital Goods index (up 0.71% at 13,696.75), BSE FMCG index (up 0.55% to 2,508.25), BSE Auto (up 0.57% at 4,757.30), BSE Health Care index (up 0.83% at 4,321.48), BSE Metal index (up 1.90% to 17,058.01), BSE Power (up 0.89% to 3,332.49), and BSE Consumer Durables index (up 0.75% to 4,582.72s), outperformed the Sensex.

The BSE Realty index (up 0.02% at 8,044.25), BSE TecK index (up 0.06% to 3,555.01), BSE PSU index (up 0.40% to 7,793.86), underperformed the Sensex.

Among the 30-member Sensex pack, 16 gained while the rest slipped

India’s largest bulk drug maker in terms of sales, Ranbaxy Laboratories advanced 3.04% to Rs 509.50 on 7.61 lakh shares. It was the top gainer from Sensex pack.

India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries (RIL) was up 0.72% to Rs 2641.45 on 6.52 lakh shares. The stock moved in a range of Rs 2601 and Rs 2646 so far during the day.

Metal shares rose on fresh buying. Sterlite Industries (up 2.08% to Rs 891.10), Tata Steel (up 0.98% to Rs 890.50), and Sesa Goa (up 0.55% to Rs 4280) gained.

Steel Authority of India jumped 7.97% to Rs 187 on reporting 24.97% rise in net profit to Rs 2376.76 crore on 30.42% increase in total income to Rs 13855.25 crore in Q4 March 2008 over Q4 March 2007. The company announced the results during trading hours today, 16 May 2008.

India’s largest cellular services provider in terms of market capitalisation Reliance Communications gained 2.73% to Rs 605.10 after its 95% infrastructure subsidiary Reliance Infratel reportedly secured the Securities and Exchange Board of India (Sebi)’s nod for public issue. The Anil Ambani group company may offload a 10.05% stake in Reliance Infratel to raise Rs 5,000-6,000 crore through the IPO.

India’s largest cellular services provider in terms of market capitalisation Bharti Airtel shed 1.13% to Rs 846.50. The company’s plan for taking over South African telecom major MTN has reportedly entered into a crucial negotiation phase. While Bharti Airtel is ready to acquire 51% stake, MTN’s management wants it to buyout the entire company.

Banking shares shrugged off data showing a surge in inflation. HDFC Bank (up 1.61% to Rs 1500), and State Bank of India (up 1.31% to Rs 1701) advanced

ICICI Bank, the country's largest private sector bank in terms of net profit was up 1.22% to Rs 940. As per reports, the bank’s the private equity arm ICICI Venture Fund Management, will raise as much as $3 billion for an infrastructure and a real estate fund.

IT pivotals slipped after firm start on profit taking. Infosys (down 1.28% to Rs 1867.10, off day’s high of Rs 1918.40), Wipro (down 0.66% to Rs 505.50, off day’s high of Rs 515), and TCS (down 1.05% to Rs 975.10, off day’s high of Rs 1000.15), declined.

However India’s fourth largest software services exporter Satyam Computer Services rose 0.64% to Rs 487.

The Indian rupee fell to a 13-month low against the dollar today, 16 May 2008. A depreciating rupee augurs well for IT companies as they derive over 50% of their revenues from exports to US.

India’s largest private sector engineering company in terms of outstanding order book position Larsen & Toubro slipped from day’s high of Rs 3033. It closed with gain of 0.56% to Rs 2997. The company said it had entered into a partnership agreement with GE Energy, a unit of General Electric, for power plant control systems in India.

Hindustan Unilever (up 1.47% to Rs 242.10) and Jaiprakash Associates (up 1.67% to Rs 270.05), edged higher from Sensex pack.

India’s largest dedicated housing finance company in terms of total income Housing Development Finance Corporation fell 1.55% to Rs 2750 on 63,625 shares. It was the top loser from Sensex pack.

NTPC, the country’s largest power generation company in terms of sales, slipped 0.16% to Rs 191.35 on reports the Finance Ministry has turned down its proposal for selling 4.75% stake through follow-on public offer. The Government holds 89.5% in the utility (as at end March 2008).

Ambuja Cements (down 1.07% to Rs 110.90), and Cipla (down 1.12% to Rs 211.30) edged lower from Sensex pack.

Aishwarya Telecom was the top traded counter on BSE with turnover of Rs 357.30 crore followed by Housing Development Infrastructure (Rs 177.66 crore), Steel Authority of India (Rs 171.22 crore), Reliance Industries (Rs 171.20 crore), and Reliance Communications (Rs 169.78 crore), in that order.

Bank of India vaulted 5.66% to Rs 358.20 on reporting 76.87% rise in net profit to Rs 1959.84 crore on 38.26% rise in total income to Rs 14528.41 crore, on a consolidated basis, in the year ended March 2008 over year ended March 2007

Zylog Systems declined 4.62% to Rs 282.85 on reporting 21.67% fall in net profit to Rs 18.36 crore on 1.37% rise in net sales to Rs 162.08 crore in Q4 March 2008 over Q3 December 2007. The company announced the results after trading hours on Thursday, 15 May 2008.

Voltas dropped 2.71% to Rs 163.20 on reporting 53.8% fall in net profit to Rs 55.41 crore on 16.7% rise in net sales to Rs 842.11 crore in Q4 March 2008 over Q4 March 2007.

Chennai Petroleum Corporation rose 0.26% to Rs 351 on reporting 81.9% surge in net profit to Rs 343.92 crore on 48% increase in net sales to Rs 8367.89 crore in Q4 March 2008 over Q4 March 2007. The company announced the results after trading hours on Thursday, 15 May 2008.

Edelweiss Capital declined 2.08% to Rs 793 despite reporting 88.51% rise in net profit to Rs 10.01 crore on 252.64% rise in total income to Rs 71.2 crore in Q4 March 2008 over Q4 March 2007.

Tata Investment Corporation surged 5.35% to Rs 577.50 after the company said its board will raise Rs 448 crore through rights issue of zero-coupon convertible bonds in the ratio of 1:5.

Tech Mahindra gained 2% to Rs 952 on reports the company has bagged a $700-million contract from BT Group to improve its IT infrastructure.

Kinetic Motor Company jumped 5% to Rs 30.75 on reports Sanyang Industry Company, a Taiwan-based two-wheeler maker, has expressed keen interest in acquiring controlling stake in the Pune-based company.

Bongaigaon Refinery & Petrochemicals galloped 9.54% to Rs 62 after the company today, 16 May 2008, announced a divided of Rs 5 per share for the year ended March 2008

In a development that can boost the stock market, the government is reportedly set to review the restrictions imposed on participatory notes (P-notes), as foreign institutional investor (FII) have pressed substantial sales from Indian markets in calendar year 2008. In October 2007, FIIs were barred from issuing P-notes in the derivatives market. The finance ministry has asked the Securities & Exchange Board of India (Sebi) to examine whether those restrictions have hindered investments by FIIs.

Meanwhile, polling began for the second phase from today, 16 May 2008, in 66 Assembly constituencies in ten districts of Karnataka. Third and final phase of election will be held on 22 May 2008 in 69 constituencies spread across eight districts. Counting of votes for all the 224 segments will be held on 25 May 2008.

European markets which opened after Indian markets, extended early gains. Key benchmark indices in United Kingdom (up 1.47% to 6,342.80), Germany (up 1.32% to 7,174.62), and France (up 0.87% to 5,101.36), edged higher.

Asian markets settled mixed today, 16 May 2008. Hang Seng (up 0.41% at 25,618.86), Straits Times (up 0.91% at 3,236.56), Seoul Composite (up 0.14% at 1,888.43) and Taiwan Weighted (up 0.44% at 9,197.41) edged higher.

However China’s Shanghai Composite (down 0.36% at 3,624.33) and Nikkei 225 Average (down 0.23% at 14,219.48), declined.

US markets rallied yesterday, 15 May 2008, after a better-than-expected economic data and pullback in oil prices eased some of the market`s concerns about inflation. The Dow Jones industrial average rose 94.28 points, or 0.73%, to 12,992.66. The Nasdaq Composite index rose 37.03 points, or 1.48%, to 2,533.73 while the S&P 500 index gained 15 points at 1,424.

Back home, the 30-share BSE Sensex surged 375.19 points or 2.21% at 17,353.54 and the broader based S&P CNX Nifty gained 103.50 points or 2.07% at 5,115.25, yesterday 16 May 2008.

US crude for June delivery rose 67 cents to $124.79 a barrel today, led by the bullish heating oil market as China and Europe scramble for barrels, thinning global supply.

The Indian stock market remains closed on Monday, 19 May 2008, on account of Buddha Pournima.