Reliance Communications, Earnings Guide, Banks

Reliance Communications, Earnings Guide, Banks

AIA Engineering

AIA Engineering

BSE Bulk Deals to Watch - Sep 8 2008

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
8/9/2008 511706 ACTION FIN MANISHDILIPBHAI SHAH B 50000 26.00
8/9/2008 511706 ACTION FIN JIGNA VIRENDRA GALA S 50000 25.83
8/9/2008 519532 ASIAN TEA EX GLOBAL FILM AND BORD CASTING L S 58000 56.25
8/9/2008 519532 ASIAN TEA EX ENCA FINLEASE LTD. S 92109 56.25
8/9/2008 590059 BIHAR TUBES SPJSTOCK B 47602 195.92
8/9/2008 590059 BIHAR TUBES SPJSTOCK S 47602 196.40
8/9/2008 590059 BIHAR TUBES MANOJ GUPTA S 37634 195.30
8/9/2008 531682 CAT TECHNOL S V ENTERPRISES B 316777 6.91
8/9/2008 531682 CAT TECHNOL S V ENTERPRISES S 315882 6.96
8/9/2008 513059 G.S. AUTO HARDIK M MITHANI S 17900 82.30
8/9/2008 531137 GEMSTONE INV MALA HEMANT SHETH S 60535 55.50
8/9/2008 531439 GOLDSTON TEC HEMANT MADHUSUDAN SHETH B 150000 115.05
8/9/2008 531439 GOLDSTON TEC GOPAL MARATHE S 425572 115.25
8/9/2008 532951 GSS AMERICA H.J.SECURITIES PVT.LTD. B 68050 301.26
8/9/2008 532951 GSS AMERICA H.J.SECURITIES PVT.LTD. S 68050 301.62
8/9/2008 505840 JAIPAN INDUS ENCA FINLEASE LTD. S 51834 119.60
8/9/2008 505523 MAH IND LEAS SANJAY JETHALAL SONI S 22016 17.29
8/9/2008 505523 MAH IND LEAS GLOBAL FILM AND BORD CASTING L S 30000 17.58
8/9/2008 506605 POLYCHEM LTD BRIJ MOHAN BANSAL HUF B 5500 154.40
8/9/2008 506605 POLYCHEM LTD AMIT TATAL AND SONS HUF B 5000 147.45
8/9/2008 506605 POLYCHEM LTD BRIJ MOHAN BANSAL HUF S 5500 147.59
8/9/2008 506605 POLYCHEM LTD AMIT TAYAL AND SONS HUF S 5000 154.45
8/9/2008 533017 RESURGERE B K SHAH CO B 204330 345.07
8/9/2008 533017 RESURGERE B K SHAH CO S 204336 346.90
8/9/2008 531646 RFL INTERNAT ARUNKUMAR CHAMPALAL HUF S 50000 0.77
8/9/2008 532886 SEL MANUF HARDIK M MITHANI B 85000 264.73
8/9/2008 532886 SEL MANUF SPJSTOCK B 96199 254.63
8/9/2008 532886 SEL MANUF HARDIK M MITHANI S 92500 254.17
8/9/2008 532886 SEL MANUF SPJSTOCK S 96199 253.17
8/9/2008 530883 SUPER CROP S SUMIT M SHARMA B 80000 14.84
8/9/2008 530883 SUPER CROP S SUMIT M SHARMA S 36169 14.53
8/9/2008 530883 SUPER CROP S AKSHAYKUMAR RAJINIKANT PATEL S 100000 14.84
8/9/2008 532338 VALUEMART IN BASMATI SECURITIES PVT LTD S 193373 3.53
8/9/2008 532360 VINTAGE CARD SANJAY GUPTA B 3000 118.00
8/9/2008 532360 VINTAGE CARD YUVAK SHARE TRADING PVT LTD B 4367 110.10
8/9/2008 532360 VINTAGE CARD YUVAK SHARE TRADING PVT LTD S 4351 110.30

NSE Bulk Deals to Watch - Sep 8 2008

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
08-SEP-2008,AUSTRAL,Austral Coke & Projects L,AMBIT SECURITIES BROKING PVT. LTD.,BUY,337576,206.51,-
08-SEP-2008,AUSTRAL,Austral Coke & Projects L,AVANI AMITBHAI KORADIA,BUY,200000,206.40,-
08-SEP-2008,AUSTRAL,Austral Coke & Projects L,DINESH MUNJAL,BUY,182800,210.30,-
08-SEP-2008,AUSTRAL,Austral Coke & Projects L,FIN BRAINS SECURITIES (INDIA) LTD.,BUY,200640,207.48,-
08-SEP-2008,AUSTRAL,Austral Coke & Projects L,PRASHANT JAYANTILAL PATEL,BUY,353987,209.72,-
08-SEP-2008,AUSTRAL,Austral Coke & Projects L,R.M. SHARE TRADING PVT LTD,BUY,223449,207.23,-
08-SEP-2008,AUSTRAL,Austral Coke & Projects L,YUVAK SHARE TRADING PVT LTD,BUY,171348,202.44,-
08-SEP-2008,BAJAUTOFIN,Bajaj Auto Finance Ltd,MASTER TRUST BANK OF JAPAN L,BUY,456491,133.00,-
08-SEP-2008,GOLDTECH,Goldstone Tech Ltd.,HEMANT MADHUSUDAN SHETH,BUY,153041,115.22,-
08-SEP-2008,KOHINOOR,Kohinoor Foods Limited,M/S TRANSWORLD FINVEST PVT LTD,BUY,270920,125.62,-
08-SEP-2008,NUTEK,Nu Tek India Limited,HEMENDRABAHI RIGHAVCHAND SHAH,BUY,98773,178.42,-
08-SEP-2008,NUTEK,Nu Tek India Limited,TRANSGLOBAL SECURITIES LTD.,BUY,131579,180.42,-
08-SEP-2008,RESURGERE,Resurgere Mines & Mineral,B K SHAH CO KETAN BHAILAL SHAH,BUY,221963,347.43,-
08-SEP-2008,RESURGERE,Resurgere Mines & Mineral,DKG SECURITIES PVT. LTD.,BUY,161377,320.61,-
08-SEP-2008,SHLAKSHMI,Shri Lakshmi Cotsyn Limit,HADWANI JYOTIKABEN MAHESHBHAI,BUY,112720,111.37,-
08-SEP-2008,VINCARDS,Vintage Cards & Creations,BHASIRAJ R,BUY,6000,113.45,-
08-SEP-2008,VINCARDS,Vintage Cards & Creations,MANSUKH SECURITIES & FINANCE LTD,BUY,3683,113.81,-
08-SEP-2008,VINCARDS,Vintage Cards & Creations,N RAVI KUMAR,BUY,7762,115.22,-
08-SEP-2008,VINCARDS,Vintage Cards & Creations,PASHUPATI CAPITAL SERVICES PVT. LTD.,BUY,3128,113.36,-
08-SEP-2008,VINCARDS,Vintage Cards & Creations,SHREE RIDDHI SIDDHI INVESTMENTS,BUY,4000,109.69,-
08-SEP-2008,VINCARDS,Vintage Cards & Creations,TILESWAR MEGHNATH HATIMURIA,BUY,4000,114.00,-
08-SEP-2008,VINCARDS,Vintage Cards & Creations,VINOD KUMAR AGARWAL,BUY,5000,110.53,-
08-SEP-2008,VITLINFO,Vishal Information Techno,PATEL SREYASHKUMAR MAHESHBHAI,BUY,55471,289.93,-
08-SEP-2008,AUSTRAL,Austral Coke & Projects L,AMBIT SECURITIES BROKING PVT. LTD.,SELL,337576,206.82,-
08-SEP-2008,AUSTRAL,Austral Coke & Projects L,AVANI AMITBHAI KORADIA,SELL,200000,204.47,-
08-SEP-2008,AUSTRAL,Austral Coke & Projects L,DINESH MUNJAL,SELL,182800,210.42,-
08-SEP-2008,AUSTRAL,Austral Coke & Projects L,FIN BRAINS SECURITIES (INDIA) LTD.,SELL,200640,207.49,-
08-SEP-2008,AUSTRAL,Austral Coke & Projects L,PRASHANT JAYANTILAL PATEL,SELL,353987,209.41,-
08-SEP-2008,AUSTRAL,Austral Coke & Projects L,R.M. SHARE TRADING PVT LTD,SELL,223449,207.24,-
08-SEP-2008,AUSTRAL,Austral Coke & Projects L,YUVAK SHARE TRADING PVT LTD,SELL,171348,202.90,-
08-SEP-2008,BAJAUTOFIN,Bajaj Auto Finance Ltd,UBS SECURITIES ASIA LTD.,SELL,557389,134.26,-
08-SEP-2008,BIRLAPOWER,Birla Power Solutions Ltd,LOTUS GLOBAL INVESTMENTS LIMITED,SELL,300000,22.13,-
08-SEP-2008,GOLDTECH,Goldstone Tech Ltd.,GOPAL MARATHE,SELL,249428,115.37,-
08-SEP-2008,JAYSREETEA,Jayashree Tea Ltd.,SANGHAI COMMERCIAL & CREDITS PVT LTD,SELL,57000,165.19,-
08-SEP-2008,KOHINOOR,Kohinoor Foods Limited,SOMERSET FCCB A/C,SELL,144380,125.01,-
08-SEP-2008,NUTEK,Nu Tek India Limited,HEMENDRABAHI RIGHAVCHAND SHAH,SELL,183773,184.89,-
08-SEP-2008,NUTEK,Nu Tek India Limited,TRANSGLOBAL SECURITIES LTD.,SELL,132278,180.84,-
08-SEP-2008,ORGINFO,ORG Informatics Limited,DEUTSCHE BANK AG, LONDON,SELL,100000,35.05,-
08-SEP-2008,RENUKA,Shree Renuka Sugars Limit,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,SELL,1570000,120.42,-
08-SEP-2008,RESURGERE,Resurgere Mines & Mineral,B K SHAH CO KETAN BHAILAL SHAH,SELL,221966,345.69,-
08-SEP-2008,RESURGERE,Resurgere Mines & Mineral,DKG SECURITIES PVT. LTD.,SELL,145514,327.55,-
08-SEP-2008,RESURGERE,Resurgere Mines & Mineral,MAVI INVESTMENT FUND,SELL,145000,319.65,-
08-SEP-2008,SHLAKSHMI,Shri Lakshmi Cotsyn Limit,HADWANI JYOTIKABEN MAHESHBHAI,SELL,28209,110.42,-
08-SEP-2008,SPICETELE,Spice Communications Limi,MACQUARIE BANK LIMITED,SELL,5122906,74.89,-
08-SEP-2008,VINCARDS,Vintage Cards & Creations,BHASIRAJ R,SELL,6000,108.26,-
08-SEP-2008,VINCARDS,Vintage Cards & Creations,MANSUKH SECURITIES & FINANCE LTD,SELL,3683,113.21,-
08-SEP-2008,VINCARDS,Vintage Cards & Creations,N RAVI KUMAR,SELL,7642,109.13,-
08-SEP-2008,VINCARDS,Vintage Cards & Creations,PASHUPATI CAPITAL SERVICES PVT. LTD.,SELL,3128,113.12,-
08-SEP-2008,VINCARDS,Vintage Cards & Creations,SHREE RIDDHI SIDDHI INVESTMENTS,SELL,2000,116.26,-
08-SEP-2008,VINCARDS,Vintage Cards & Creations,VAISHNAV RAJESH CHANDRAKANT,SELL,8000,113.77,-
08-SEP-2008,VINCARDS,Vintage Cards & Creations,VINOD KUMAR AGARWAL,SELL,2500,117.21,-
08-SEP-2008,VITLINFO,Vishal Information Techno,PATEL SREYASHKUMAR MAHESHBHAI,SELL,1000,291.15,-

Asian equities rise impressively

Major indices jump on Fannie Mae and Freddie Mac bailout

Asian equity markets performed largely on the positive side today, with the key indices in Japan, India and Hong Kong logging gains in a range of 3-4% as the global financial markets witnessed one of the biggest government bailout in U.S. history in the form of home mortgage giants Fannie Mae and Freddie Mac. The Chinese equity markets remained a notable exception to the across the board gains though as concerns over the financial health of the central bank along with fears that the economy would lose momentum in near term on slowing demand in key industries played a key role.

Meanwhile, the US Treasury said Sunday that regulators are seizing control of home mortgage giants Fannie Mae and Freddie Mac. Under a sweeping plan, the two companies will be run by the government indefinitely, with the two current chief executives to be replaced and the government investing up to $100 billion in each firm to keep them solvent. In order to improve the availability of mortgages, Treasury will start buying Freddie and Fannie's mortgaged-backed debt in the open market. The companies will also end all lobbying of the government and eliminate dividends.

Together, Fannie Mae and Freddie Mac form the cornerstones of the U.S. mortgage market and own or guarantee almost half the home loans in the country's roughly $12 trillion mortgage market. Over the past year, the companies have recorded combined losses of around $14 billion.

This signaled to the market participants that the housing led turmoil in the US and global credit markets might be nearing its end. With one of the largest entities in the housing markets being seized by the US government, the message that is sent to the market participants is that the worst may be over for the US housing crisis, that has spooked th global investors for last one and half years.

The Nikkei 225 ended at 12624.46 points, adding 3.38% while TOPIX also added about 4%. Hang send ended up 4.32% to close at 20794.27 points while Korea’s KOSPI added more than 5% to close at 1476.65. India’s BSE SENSEX ended up 3.18% at 14944.97. However, China stayed lower, adding to the recent spate of losses with the CSI 300 index ending at 2126.52, down 2.61%.

Meanwhile, US Dollar resumed its uptrend today as traders once again acted in a firm belief that the US currency is headed for further gains in the near term as softening global commodity prices are seen assisting the US economy.

This could be particularly true in an environment, which can turn congenial for the world’s largest economy as the Fed’s policy of ultra low interest rates begins to make its presence felt. The dollar’s ride was a little erratic today though as the early Asian trading saw the greenback trade well above 1.4400 due to an upshot in crude oil prices.

The US dollar added about 200 pips in less than four hours, hitting a high of 1.4170 per Euro.

Chemcel Biotech IPO Analysis

Chemcel Biotech (CBL) is a Hyderabad-based regional agrochemicals and pesticide formulator with 34 product registrations to manufacture pesticides for crops such as paddy, cotton and sugarcane. The company, incorporated on 29 September 1995, is promoted by K. Bala Krishna Rao, K. T. Vijay Kumar and KCS Prasad.

Production unit is in Kanuru, Vijayawada in Andhra Pradesh. This facility has semi-automated granule sections, semi-automatic liquid lines, chemical resistant reactors for insecticides. Distributors and dealers network is spread over five districts of Andhra Pradesh. The 18 distributors in these regions have access to a chain of 350 direct dealers and 550 retailers. The reach is to be expanded to the entire state over the next 12 months.

A biodiesel manufacturing unit is proposed at Kondapalli near Vijayawada, Andhra Pradesh, to diversify into biodiesel. The 6,000-tonne per annum biodiesel plant would process 20,000 tonnes of jatropha oil seeds every year. A 60% subsidiary, Jetro Petro Biotech, has entered into long-term contracts with 179 farmers for growing jatropha plants spread over 2,000 acres.

Commercial production from this biodiesel plant is expected to commence by September 2009. Around 40% of the IPO proceeds of Rs 24.64 crore are to be utilized to fund the above project. Another 40% of the IPO proceeds will be used to meet the working capital needs and the remaining 20% to repay part of its outstanding loans.

The bio-diesel manufacturing unit would cost Rs 10.95 crore. Of this, over Rs 1 crore has already been invested. The additional working capital requirement amounts to Rs 9.45 crore and the short-term loan to be paid back is Rs 3.86 crore.

Strengths

• Higher oil prices and favourable government policies towards biodiesel blending.

Weaknesses

• The agro-chemicals industry depends to a large extent on monsoons as well as the growth in the agricultural sector. Lack of product differentiation and absence of pan-India presence give rise to risks arising from agro-climatic conditions.
• The industry is characterised by high working capital requirement due to its seasonal nature and long credit period given to farmers. The limited scale will exert extreme pressure due to high inventories during off-season period.
• The small size of operation acts as a potential bottleneck in the foray into biodiesel due to the uncertainty associated with the availability and prices of jatropha oilseeds.
• Promoter K. T. Vijay Kumar and the company are fighting court cases against various allegations by Rallies India. The promoter is a former employee of Rallies.
• Post-IPO promoter stake will be low at 29.4%.

Valuation

The issue comprises a fresh issue of 1.54-crore equity shares of face value of Rs 10 each at a fixed price of Rs 16 per share. At the price of Rs 16 per equity share of Rs 10 each, the PE multiple is 33.8 times based on the earning per share of Rs 0.5 for the year ended March 2008 on post-IPO equity. Considering the limited scale of the operations as well as regional presence, the asking price is very high. Diversification into bio-diesel will start contributing to the top line only after September 2009. Insecticides India, with a much larger product portfolio, a pan-India presence and good exports, is trading at a trailing twelve-month (TTM) PE multiple of just 4 times. The sector trades at a TTM PE multiple of 6.1 times.

Post Session Commentary - Sep 8 2008

Domestic markets closed the day on strong note on NSG approval for India on nuclear deal. However, market pared some of its earlier gains due to the profit booking during final hours of trading. Indian market opened on pleasant note tracking positive cues from global markets along with strong domestic trigger as India joins nuclear club and gets NSG waiver. Further market continues to trade firm on account of sustained buying activity across the board. Supportive Asian and European markets also lifted the sentiment. Shares in Europe and Asia rallied after the US government announced to takeover troubled mortgage giant Freddie Mac and Fannie Mae. Domestic markets continued its northward journey but some bouts of profit booking led market to shed small portion of its gains. NSE Nifty ended around 4,500 mark and BSE Sensex around 15,000 level. From the sectoral front, Bank stocks outperformed the benchmark index as ended with gap up of more than 4%. Along with that, Capital Goods Metal, Oil & Gas, Power and Reality stocks led the rally. However, Consumer Durables stocks remained out of favor as witnesses most of the selling from this basket. The market breadth was positive as 1199 stocks closed in green while 1389 stocks closed in red and 104 stocks remained unchanged.

India has received a clearance from the Nuclear Suppliers Group (NSG). The NSG clearance will encourage the setting up of around 18 to 20 nuclear reactors in India and would help to fulfill India''s target of adding 63,000 MW by 2030. It will also enable the country to get nuclear fuel for all its nuclear reactors that are running at almost half of their capacities.

The BSE Sensex closed higher by 461.14 points at 14,944.97 and NSE Nifty ended up by 130 points at 4,482.30. The BSE Mid Caps and Small Caps closed with gains of 66.17 points at 5,819.89 and by 77.55 points at 6,982.77. The BSE Sensex touched intraday high of 15,107.01 and intraday low of 14,917.06.

Gainers from the BSE are Sterlite In (5.88%), ICICI Bank Ltd (4.89%), SBI (4.81%), L&T Ltd (4.63%), NTPC Ltd (4.58%), TCS Ltd (1.77%), HDFC Bank Ltd (4.27%), HDFC (4.20%), Reliance Infra (4.19%) and Tata Motors (3.93%).

The BSE Capital Goods index ended up by 443.42 points at 12,424.02. Major gainers are Wallchand In (13.95%), Alostom Proje (6.39%), L&T Ltd (4.63%), Suzlon Energy (4.59%), Punj Lloyd (4.11%) and Aiaengineer (4.10%).

The BSE Bank index closed higher by 291.39 points at 7,464.24. Gainers are ICICI Bank Ltd (4.89%), SBI (4.81%), HDFC Bank Ltd (4.27%), Yes Bank (3.65%), Indian Overseas Bank (3.56%) and Axis Bank (3.54%).

The BSE Metal index gained 229.27 points to close at 12,015.04. Major gainers are Sterlite In (5.88%), Nalco (3.82%), Steel Authority (2.84%), Jai Corp Ltd (2.02%), Jindal Steel (2.01%) and JSW SL (1.44%).

The BSE Oil & Gas index closed higher by 195.38 points at 9,848.06. As ONGC (2.66%), Reliance (2.54%), Gail India (2.40%), Aban Offshore (2.35%), Reliance Nat Res (1.12%) and Cairn India (1.03%) ended in positive territory.

The BSE Reality index gained 157.74 points to close at 5,137.00. As Anant Raj In (5.12%), Unitech Ltd (3.82%), Unitech Ltd (3.82%), Indiabull Real (3.79%), DLF Ltd (3.56%) and Housing Dev (3.35%) closed in positive territory.

The BSE Consumer Durables index dropped marginally by 9.83 points to close at 3,776.45. Blue Star L (1.23%), Gitanjali GE (0.88%) and Titan Ind (0.77%).

Sunny day for bulls

After crashing by over 550 points in the last two sessions, the market witnessed a strong relief rally led by across-the-board buying since early trades. The bounce back from the recent sell-off was mainly in line with the recovery in the major Asian indices, which were up around 2-4% each.

Three main cues seem to have decided the course today. One--India getting a green signal from NSG. Two-the West Bengal government arriving at some sort of agreement with Trinamul Congress’ head Mamta Banerjee over the land row at Tata plant at Singur and three--the US government taking over Fannie, Freddie (the giant quasi-public mortgage finance companies), as their failure could have left a global impact. The Sensex opened 494 points above its previous close and gained further on sustained buying support. The high of the day was 623 points above its previous close, while the low of the day was 434 points higher than the previous close. The Sensex finally closed 461 points higher at 14,944. The 50-stock Nifty closed 130 points up at 4,482.

The market breadth was positive after several sessions. Of the 2,767 stocks traded on the BSE, where 1,656 stocks advanced, 1,039 stocks declined. 72 stocks ended unchanged. All the sectoral indices closed with significant gains. The BSE Bankex, the leading sectoral index, soared 4.06% followed by the BSE CG index (up 3.70%), the BSE Power index (up 3.36%), the BSE Reality index (up 3.17%) and the BSE IT index (up 2.28%).

All the 30 Sensex stocks ended in the green. Attracting strong buying support Sterlite Industries surged 6.16% at Rs624, State Bank of India shot up by 4.90% at Rs1,593, ICICI Bank jumped by 4.64% at Rs719, NTPC advanced by 4.64% at Rs181.50, Larsen & Toubro scaled up 4.54% at Rs2,735, HDFC Bank zoomed 4.43% at Rs1,302.70, Tata Motors added 4.30% at Rs438, Reliance Infrastructure vaulted 4.25% at Rs1,059 and HDFC firmed up by 4.12% at Rs2,375. Other front-line stocks also moved up 2-3% each.

Over 93.17 lakh shares of Reliance Natural Resources changed hands on the BSE followed by Austral Coke (90.07 lakh shares), IFCI (79.91 lakh shares), Reliance Power (57.62 lakh shares) and Karuturi Ventures (51.05 lakh shares).

Market cheers NSG nod for nuclear trade with India

Key benchmark indices surged today after the 45-nations Nuclear Supplier Group (NSG) on Saturday, 6 September 2008, lifted a 34-year-old embargo on nuclear trade with India. The BSE 30-share Sensex jumped 461.14 points. Strong Asian and European markets supported domestic bourses.

The market, however, gave up some of the strong gains in late trade. Both the key benchmark indices – BSE Sensex and S&P CNX Nifty fell below their respective psychologically important levels of 15,000 and 4,500, after topping those levels earlier in the day.

As per provisional data released by the stock exchanges after trading hours, foreign funds today, 8 September 2008, bought shares worth a net Rs 253.43 crore. Domestic funds sold shares worth a net Rs 132.62 crore.

The market breadth was strong. All the 30 Sensex stocks were in green. Sterlite Industries surged over 6%. Probable nuclear deal beneficiaries were the flavor of the day. Banking and financial shares also surged.

Stocks rose across the globe after the US government on Sunday, 7 September 2008 took over mortgage finance firms Fannie Mae and Freddie Mac to limit extensive damage of the financial crisis. US futures jumped. In Asia, key benchmark indices in Japan, Hong Kong, Taiwan, Singapore, South Korea were up by between 3.88% and 5.57%. However, China's Shanghai Composite was down 2.68%

In Europe, key benchmark indices in UK, Germany and France were up by between 3.57% and 4.67%.

The BSE 30-share Sensex jumped 461.14 points or 3.18% at 14,944.97. It opened 554.23 points higher at 15,034.06 and surged to strike an intra-day high of 15,107.01 in early trade. At the day’s high, the Sensex gained 623.18 points. At the day’s low of 14,917.06 hit in late trade, the Sensex rose 433.23 points.

The S&P CNX Nifty jumped 130 points or 2.99%, to settle at 4482.30. Nifty September 2008 futures were at 4510, at a premium of 27.70 points as compared to spot closing. NSE's futures & options (F&O) segment turnover was Rs 45,977.53 crore, which was lower than Rs 46,868.19 crore on Friday, 5 September 2008.

The BSE Sensex is down 5342.02 points or 26.33% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 6261.80 points or 29.53% away from its all-time high of 21,206.77 struck on 10 January 2008.

The NSG’s acceptance of the US proposal to drop a ban on nuclear trade with India will now put the Indo-US nuclear deal on the fast track. The approval came after almost three days of meeting in Vienna, lifting a 34-year-old embargo on nuclear trade with India. The NSG meet was called to minimise any damage to the Non-Proliferation Treaty, which India has not joined.

However, the nuclear deal still needs to be ratified by the US Congress before it could take force. The Congress must act before adjourning in late September 2008 for US presidential elections. If that does not happen, the deal could be left to an uncertain fate under a new US administration that takes office next year.

The market breadth was strong on BSE with 1656 shares advancing as compared to 1040 that declined. 63 remained unchanged.

The total turnover on BSE amounted to Rs 4485 crore as compared to Rs 4,815.43 crore on Friday, 5 September 2008.

The BSE Mid-Cap index rose 1.15% to 5,819.89 and the BSE Small-Cap index gained 1.12% to 6,982.77. Both these indices underperformed the Sensex.

India’s top copper manufacturer in terms of sales, Sterlite Industries jumped 6.16% to Rs 624 on 5.79 lakh shares. It was the top gainer from Sensex pack

Banking and financial shares vaulted buoyed by the bailout of US mortgage giants Fannie Mae and Freddie Mac. ICICI Bank (up 4.65% to Rs 719), HDFC Bank (up 4.43% to Rs 1302.70), State Bank of India (up 4.84% to Rs 1592.05), and Housing Development Finance Corporation (up 4.12% to Rs 2375) surged.

Potential nuclear deal beneficiaries rallied. India’s largest private sector power generation firm by sales, Reliance Infrastructure jumped 4.17% to Rs 1058.20. The company had earlier announced plans to invest Rs 12,000- crore in nuclear power capacity. It plans to install 2000 megawatt of nuclear power capacity.

India’s largest engineering & construction company by order book position Larsen & Toubro gained 4.54% to Rs 2735.15. Bharat Heavy Electricals, the nation’s largest capital goods maker by sales surged 2.90% to Rs 1782. The company supplies up to 500 megawatt of equipment to Nuclear Power Corporation.

India’s largest power generation company by sales, National Thermal Power Corporation surged 4.50% to Rs 181.25. The company signed a memorandum of understanding with Swiss Agency for Development and Cooperation to formulate a long-term strategy for renewable energy projects. The company made this announcement after trading hours on Friday, 5 September 2008.

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) advanced 2.19% to Rs 2125 on 7.30 lakh shares.

Telecom pivotals were in demand on renewed buying interest. India’s second largest cellular services provider in terms of market capitalisation Reliance Communications (RCom) advanced 1.03% to Rs 398, off day’s high of Rs 415. RCom’s subsidiary Reliance Big Entertainment reportedly acquired a majority stake in the US-based cricket webcasting portal, Willow TV, for an undisclosed amount.

India’s largest cellular services provider in terms of market capitalisation Bharti Airtel rose 1.54% to Rs 817.25

Ranbaxy, India’s top drug maker by sales gained 3.61% to Rs 466.60, after striking day’s low of Rs 438.05. The Japanese drug maker Daiichi Sankyo’s open offer to acquire an additional 20% stake at Rs 737 a share in the company ended on 4 September 2008.

IT pivotals advanced on fresh buying. Infosys Technologies (up 2.09% to Rs 1748.60), Satyam Computer Services (up 3.29% to Rs 429.50), Wipro (up 1.11% to Rs 431), and TCS (up 1.78% to Rs 853.10), logged gains.

Auto shares gained. India’s top truck maker by sales Tata Motors rose 4.30% to Rs 438 on reports of stalemate over acquisition of land for the company’s project at Singur ended on Sunday, 7 September 2008 following two rounds of discussions between West Bengal Chief Minister Buddhadeb Bhattacharjee and Trinamool Congress chief Mamata Banerjee.

But Tata Motors, which had suspended work at the site, said on Monday, 8 September 2008, it would not start work until it was confident of smooth operations and the continued viability of the project.

Mahindra & Mahindra (up 0.61% to Rs 585.50), and Maruti Suzuki India (up 0.92% to Rs 686), rose from auto pack.

Austral Coke & Projects topped the turnover chart on BSE with a turnover of Rs 186.08 crore followed by Reliance Capital (Rs 173.60 crore), Reliance Industries (Rs 156.79 crore), Larsen & Toubro (Rs 156.01 crore) and Resurgere Mines & Minerals (Rs 149.25 crore), in that order.

Reliance Natural Resources topped volumes on BSE notching volumes of 93.22 lakh shares followed by Austral Coke & Projects (90.18 lakh shares), IFCI (80.24 lakh shares), Reliance Power (57.72 lakh shares) and Karuturi Global (51.05 lakh shares), in that order.

Among the non-Sensex potential nuclear deal benefeciaries, Areva T&D gained 3.08% to Rs 1675. Alstom Projects India surged 6.47% to Rs 422.20. The company makes nuclear reactors and rotors.

Hindustan Construction Company jumped 7.58% to Rs 104.35. The company has constructed four nuclear power projects in India. It is an engineering procurement and construction contractor for nuclear projects.

Walchandnagar Industries galloped 13.70% to Rs 302.45. It makes critical equipment for India’s nuclear power facilities.

Refinery shares declined as crude oil prices rose. Hindustan Petroleum Corporation (down 1.31% to Rs 233.30), Bharat Petroleum Corporation (down 3.90% to Rs 344), and Indian Oil Corporation (down 2.92% to Rs 433.55), slipped.

New York's main contract, light sweet crude for delivery in October 2008 rose $2.37 to $108.60 per barrel today, 8 September 2008 on worries hurricane Ike will threaten production facilities in the oil-rich US Gulf Coast.

Cambridge Technology Enterprises was locked at 10% upper limit at Rs 61.05 after the company said on Monday, 8 September 2008, its board has approved the acquisition of US based Protege Software Services Inc. The company made this announcement before trading hours today, 8 September 2008.

Dolphin Offshore Enterprises India jumped 20% to Rs 281.15 after the company said on Monday, 8 September 2008, it has bagged two orders aggregating Rs 304 crore from Oil & Natural Gas Corporation. The company made this announcement during trading hours today, 8 September 2008.

Hotel Leela Venture rose 3.26% to Rs 34.85 on reports the firm plans adding seven new luxury hotels in the next three to five years. The company will invest Rs 2,000-crore to add 2,000 rooms at these new hotels.

Pratibha Industries surged 5.44% to Rs 284.90 after the company said on Monday, 8 September 2008, it has secured a contract worth Rs 44.75 crore from Delhi Jal Board for water transmission program.

The government is working on 32 reform laws, 21 of them in the area of economy and finance, Trade Minister Kamal Nath said in an interview to a German newspaper published on Monday, 8 September 2008. The government expects its coalition allies to support much of its planned economic reform legislation, Nath told the Handelsblatt daily.

Indo Tech Transformers

We recommend a buy in Indo Tech Transformers from a short-term perspective. It is evident from the charts of Indo Tech Transformers that it has been on a medium-term uptrend from its 52-week low of Rs 264, recorded in early July. Since then, the stock has been trending up forming higher peaks and higher troughs. During early August the stock gained bullish momentum and crossed over its 21- and 50-day moving averages sequentially.

On August 11, the stock surged 14 per cent penetrating the down trendline that was in place from this January. There is an increase in volume over the past three trading sessions. The daily relative strength index (RSI) is featuring in the bullish zone and weekly RSI has entered in to the neutral region from the bearish area.

The moving average convergence and divergence is rising in line with the stock and also featuring in the positive territory. The medium-term up trendline is intact. We are positive on the stock from a short-term perspective. We expect the stock to move up until it hits our price target of Rs 430 in the upcoming trading sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 369.

Weekly Technicals - Sep 8 2008

Weekly Technicals - Sep 8 2008

Weekly Track - Sep 8 2008

Weekly Track - Sep 8 2008

Trading Call - Tata Steel

Sell Tata Steel SL- Rs 600 Target - Rs 486

Market may stage a comeback

The modest rally in the US markets and a rise in all Asian indices in the ongoing trading session may help the domestic indices pull back from lower levels. However, lack of clarity in the market and volatility may drag down the market. Among the indices, the Nifty could face a resistance at 4400-4450 levels and has a likely supports at 4325-4280 levels. The Sensex has a likely support at 14333 and may face resistance at 14600.

US indices bounced back moderately and finished higher, helped by some takeover activity. While the Dow Jones moved up by 33 points at 11,221, the Nasdaq lost 3 points at 2,256.

Indian ADRs had a mixed outing on the US bourses. Rediff was the major loser and tanked 2.43% while Wipro, MTNL, Patni Computer and VSNL slumped over 1% each. Infosys, Satyam and Dr Reddy ended with steady losses. However, ICICI Bank jumped by 3.49% and Tata Motors gained 1.41% while HDFC Bank ended with marginal gains.

Crude oil prices eased a little, with the Nymex light crude oil for October delivery falling by $1.66 to close at $106.23 a barrel. In the commodity space, the Comex gold for December delivery rose by 30 cents to settle at $803.50 an ounce.

Pre Session Commentary - Sep 8 2008

The Indian Market is expected to have positive opening due to the supportive global cues as US markets ended mixed and Asian markets are trading higher along with strong domestic trigger as India succeed to get waiver from NSG. On Friday, domestic markets extended its losses to close with sharp gap on weak global cues along with concern over outcome of NSG meet in Vienna for Indo-US nuclear deal. Weekly jobless claims for US climbed 15,000 to 444,000. Market opened on downbeat note on adverse global signal. Further, market continued to remain under pressure nevertheless fight to find support. Fresh bouts of huge selling again crushed markets to end with sharp losses. NSE Nifty ended below 4,300 mark and BSE Sensex closed below 14,500 level. From the sectoral front, Reality index was worst performer as ended with gap of more than 4%. Other than that, Metal, Bank, Capital Goods, Oil & Gas and IT stocks also contributed to the day’s slide. However, FMCG stocks ended with marginal gain. The BSE Sensex closed lower by 415.27 points at 14,483.83 and NSE Nifty ended down by 95.45 points at 4,352.30. The BSE Mid Caps and Small Caps ended with losses of 75.45 points and 69.15 points at 5,753.72 and 6,905.22. We expect that market may remain bullish during the trading session.

NSG granted waiver for India on Saturday. It is an important breakthrough for India as opened door for nuclear trade. NSG has lifted hurdles for in India in the way of buying products and technologies for the civil uses of nuclear technology and nuclear power.

On Friday, the US market closed mixed. Light, sweet crude for October delivery fell $1.66 to settle at $106.23 a barrel on the New York Mercantile Exchange, which is its lowest settlement since early April.

The Dow Jones Industrial Average (DJIA) closed higher by 32.73 points to close at 11,220.96 followed by the S&P 500 (SPX) ended up by 5.48 points to close at 1,242.31 while the NASDAQ index lost 3.16 points to close at 2,255.88.

Indian ADRs ended mixed. In technology sector, Wipro ended lower by (1.83%) followed by Patni Computers plunged by (1.15%), Satyam by (0.68%) and Infosys lost (0.33%). In banking sector ICICI Bank and HDFC Bank gained (3.49%) and (0.09%). In telecommunication sector, MTNL ended and Tata Communication dropped by (1.56%) and (1.05%). Sterlite industries increased by (1.25%).

Today the major stock markets in Asia are trading higher. Hang Seng index is trading strong by 795.86 points at 20,729.84 along with Japan’s Nikkei trading up by 438.04 points at 12,650.27, Taiwan Weighted advanced by 333.24 points at 6,640.52 and Singapore''s Straits Times gained 91.87 points at 2,666.08.

The FIIs on Friday stood as net seller in equity and net buyer in debt. Gross equity purchased stood at Rs2,617.20 Crore and gross debt purchased stood at Rs62.60 Crore while the gross equity sold stood at Rs3,016.40 Crore and gross debt sold stood at Rs49.60 Crore. Therefore, the net investment of equity reported was (Rs399.10) Crore and net debt was Rs13.00 Crore.

The partially convertible Indian rupee fell to its weakest since December 2006, to close at 44.64/65 per dollar against previous close of 44.35/36. Weakness in Indian rupee was on account of dollar demand from corporate and share market losses.

Today, Nifty has support at 4,310 and resistance at 4,621 and BSE Sensex has support at 14,303 and resistance at 15,613.