Rupee rises

Ends at 47.37/38 per dollar

Rupee rose back towards its 2009 high on Thursday, bolstered by broad weakness in the dollar and expectations of a jump in foreign investment after the ruling coalition won national elections.

Rupee ended at 47.37/38 per dollar, off an early peak of 47.28, but still above Wednesday's close of 47.47/48.

Fed fire up fear in Asian Markets

Sensex, Seoul surrendered more than 2% while Shanghai, Hang Seng gave up 1.6%

Stock market in Asian region closed mostly lower on Thursday, 21 May 2009, as concerns over the pace of economic recovery hurting sentiment and the yen making significant advance against the U.S. dollar.

On Wall Street, the major indices settled in negative territory after a mostly positive day as investors digested a harsher forecast for GDP and unemployment from the Federal Reserve. The Dow Jones Industrial Average lost 52.81 points, or 0.6%, to 8422.04, while the S&P 500 moved 4.66 points, or 0.5%, lower to 903.47. The Nasdaq was off by 6.70 points, or 0.4%, at 1727.84.

The Federal Reserve released the minutes from the latest Federal Open Market Committee meeting, saying the pace of decline in "some components of final demand" appeared to have slowed recently. Consumer spending firmed, and housing activity -- although still depressed --"leveled off" in February and March. But businesses cut production and labor markets deteriorated further in recent months, according to the committee.

The FOMC is now projecting real GDP to shrink by 1.3% to 2% in 2009, vs. prior expectations for a decrease between 0.5% and 1.3%. The committee's projections for the unemployment rate during the fourth quarter were between 9.2% to 9.6%, "noticeably higher" than the latest reading available on unemployment at the time, a rate of 8.5%.

In the commodity market, crude oil fell from a six-month high after the Federal Reserve said that recovery might fail to take root in the U.S., the world’s largest energy consumer. Crude oil declined after minutes of the Federal Open Market Committee meeting on April 28-29 showed that some members want the central bank to boost its purchases of assets to revive growth. Total U.S. daily fuel demand in the four weeks ended May 15 fell 7.6% from a year earlier, an Energy Department report showed yesterday

Crude oil for July delivery dropped as much as 87 cents, or 1.4%, to $61.17 a barrel, and was at $61.21 on the New York Mercantile Exchange at 9:46 a.m. in London. Yesterday, oil rose $1.94, or 3.2%, to settle at $62.04 a barrel, the highest closing price since Nov. 10.

Brent crude for July settlement fell as much as 84 cents, or 1.4%, to $59.75 a barrel on London’s ICE Futures Europe exchange.

Gold rose to the highest in almost two months as a drop in the dollar boosted investors’ interest in the metal as an alternative asset, and a producers’ group said investment demand gained in the first quarter.

Immediate-delivery gold gained for a third day, rising 0.4% to $942.24 an ounce at 11:29 a.m. in Singapore. Earlier, the metal touched $943.10, the highest since March 26, taking gains from year’s low of $802.59 to about 17.5%.

In the currency market, US dollar was sharply off yesterday after FOMC minutes revealed that the committee members had discussed on increasing the size of assets purchase.

The Japanese yen climbed to a 2-month high against the US dollar on Thursday after the U.S. Federal Reserve projected a deeper recession, boosting demand for the Japanese currency as a refuge from the global slump. The Japanese currency quoted at 94.69 per greenback.

The Hong Kong dollar was trading at HK$ 7.7515 against the dollar. Actually The Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.

In Sydney trades, the Australian dollar were eased from nine month highs against the major currencies as gathering optimism the world economy is on the mend improved investors’ appetites for riskier currencies. The Aussie was quoted at 77.37 cents against the greenback on Thursday.

In Wellington trades, the New Zealand dollar ended the day at US60.85c after rallying to trade as high as US61.05c during the session. The New Zealand dollar climbed back to its highest level against the greenback in more than a week today.

The South Koran won ended at 1,248.6 won against the dollar, up 2.4 won from Wednesday's close, as offshore investors dumped the greenback.

The Taiwan dollar continued to rally further. The Taiwan dollar strengthened against the US dollar as it closed higher at NT$ 32.7380, up by NT$ 0.1170 from Wednesday’s close of NT$33.855.

Coming back in equities, most of the Asian equity markets ended lower on the U.S. Federal Reserve's grim view of the economy, with shares in Japan also hurt by concerns a stronger yen would hurt exporters' competitiveness. However, selling pressure was moderate and we can remain hopeful after a recent data from several parts of the world point toward an economic recovery.

In Japan, the stock index finished the session lower, dragged down by a weak lead from Wall Street and slumps in the shares of financials and property developers as optimism over the global economic recovery waned after the US Federal Reserve reduced its economic outlook for 2009, while a stronger yen weighed on exporters. The Nikkei 225 Stock Average index tumbled 80.49 points, or 0.9%, to 9,264.15, while the broader Topix index retracted 4.86 points, or 0.6% to 881.

In Mainland China, stock market finished the session lower on Thursday following weak led from Wall Street overnight and a sell-off in financial, properties, and energy stocks as optimism over the global economic recovery waned after the US Federal Reserve reduced its economic outlook for 2009 and after Credit Suisse Group AG report said a rebound in economic growth are below market expectation

The Shanghai Composite Index, which covers both A shares and B shares on the Shanghai Stock Exchange, retreated 1.5%, or 40.79 points, to close at 2,610.62.

In Hong Kong the stock finished the session lower, extending loosing streak for second consecutive day, dragged down by financials and properties following weak led from Wall Street overnight, Beijing liquidity concern, and raise in Hong Kong’s unemployment rate. The Hang Seng Index retracted 276.35 points, or 1.59%, to 17,199.49, while the Hang Seng China Enterprise Index, which tracks H shares of Chinese companies, melted 115.33 points, or 1.15% to 9,927.28.

In Australia, the stock market pared back early losses to finish the session down, dragged down by a weak lead from Wall Street and slumps in the shares of financials, retailers, and property trusts as optimism over the global economic recovery waned after the US Federal Reserve reduced its economic outlook for 2009. At the closing bell, the benchmark S&P/ASX200 index slipped 10.70 points, or 0.28%, to 3,813.90, while the broader All Ordinaries trimmed 4.20 points, or 0.11%, to 3,804.70.

On the economic front, Westpac Bank and the Melbourne Institute survey data showed that the consumer inflationary expectations found the median rate of inflation was 2.3% in May, down from 2.4% in April as the economy kept sliding.

The Australian Bureau of Statistics reported Thursday that vehicle sales increased a seasonally adjusted 0.9% on month. In trend terms, which further smooth the seasonally adjusted data, sales were down 1.4% on month. For the full year to April, total vehicle sales were down a seasonally adjusted 20.3%, and were lower by 20.6 percent in trend terms.

In New Zealand, the stock market dipped down in line with most of the Asian markets trailing pessimism in the United States overnight. The NZX50 fell 0.88% or 24.77 points to 2776.311. NZX 15 declined 0.94% or 48.15 points to close at 5067.837.

In South Korea, stock markets closed lower as bleak outlooks for a quick economic recovery set off selling in shipping, tech and other large-cap issues. The benchmark Korea Composite Stock Price Index (KOSPI) fell 14.05 points to 1,421.65.

In Singapore, the stocks index finished the session lower, dragged down by a weak lead from Wall Street and broad based slumps in the shares of financials, properties, and manufacturers as optimism over the global economic recovery waned after the US Federal Reserve reduced its economic outlook for 2009 and rekindled worries over the strength of China’s economic growth. The blue chip Straits Times Index tumbled 58.27 points, or 2.57%, to 2,210.97.

On the economic front, the Ministry of Trade and Industry said on Thursday in its revised report that the Singapore economy shrank a seasonally adjusted 14.6% in the first three months of 2009, after shrinking 16.4% between October and December and a second stimulus package may not be needed as the nation emerges from the deepest recession in its 44-year history.

Singapore's Ministry of Trade and Industry also said that the Singapore's consumer price index (CPI) slowed to 2.1 percent in the first quarter of 2009, down from 5.4 percent in the fourth quarter of 2008 due to a downward correction of global commodity prices from the peaks in 2008.

In Taiwan, stock market ended marginally higher, stretching its upward run in the fifth session, as market attained a new nine-month high. However, today’s gains were capped after Taiwan confirmed its first new flu H1N1 case in Taiwan also forced many major enterprises on the island to kick off anti-pandemic mechanism deterring investor’s confidence. Investor’s cautious approach ahead of first quarter GDP data also limited the gains. The main Taiex share index gained further as Taiex added 15.19 points or 0.23%, closing the day at 6718.81, highest closing since 1 September 2008 when market closed the day at 6813.09.

On the economic front, the Taiwan legislature recently passed the resolution for Taiwan to become a member of the Government Procurement Agreement (GPA), which is approved by the World Trade Organization (WTO), making Taiwan the 41st signatory member.

Joining the GPA enables Taiwan’s enterprises to bid for government projects overseas and vice versa. Huang Chih-peng, director general of Bureau of Foreign Trade (BOFT) under the Ministry of Economic Affairs (MOEA), noted that the BOFT informed WTO of Taiwan’s entry in the GPA right after legislative approval, with the membership to be effective starting June at the earliest. The annual market value created by GPA members is estimated at US$960.3 billion.

The GPA is one of the multilateral agreements under the WTO framework. The WTO stipulates that GPA members should open up government procurement markets with negotiation based on principles of openness, transparency and non-discrimination. Currently the GPA members include the United States, the European Union, Canada, Japan, South Korea and Singapore, many of which have close trade relations with Taiwan.

In India, the key benchmark indices extended losses in late trade as capital goods and banking stocks fell. The barometer index BSE Sensex fell below the psychological 14,000 mark. Weak global markets triggered profit taking after strong gains on the domestic bourses in the past 2-1/2 months. The BSE 30-share Sensex closed down 324.12 points or 2.31%, to 13.736.54. The S&P CNX Nifty was down 59.40 points or 1.39% to 4,210.95.

Elsewhere, Malaysia's Kula Lumpur Composite index was down 0.68% or 7.07 points to 1035.56 while Indonesia’s Jakarta composite index fell 0.02% or 0.29 points ending the day at 1885.72.

In other regional market, European shares snapped a five-session advance on Thursday, as comments from the U.S. Federal Reserve provided a reason for investors to reassess recent optimism over the economy. Regional European markets were also lower, with the U.K. FTSE 100 index down by 0.32% at 4,367, the German DAX 30 index falling 1.71% to 4,954, and the French CAC-40 index, losing 1.62% to 3,250.

Looking ahead for the day, in US, initial jobless claims may reduce further for the week ended 16 May 2009. Leading indicators may show up their first increase in almost a year and the sharpest gain in 4 years, in April as led improvement in consumer confidence and stabilization in jobless claims. The Philly Fed Survey is also expected to show some improvement in May from a month ago. Canada's wholesale sales is set to contract in month on month in March.

RIL May 2009 futures at premium

Turnover rises

Nifty May 2009 futures were at 4219.50, at a premium of 8.60 points over the spot closing of 4210.90. Turnover in NSE's futures & options (F&O) segment inched up to Rs 71702.09 crore from Rs 70570.87 crore on Wednesday, 20 May 2009.

Reliance Industries (RIL) May 2009 futures were at a premium at Rs 2126.85 compared to the spot closing of Rs 2115.45.

Tata Steel May 2009 futures were at a discount at Rs 364.85 compared to the spot closing of Rs 365.65.

Reliance Communication May 2009 futures were at discount at Rs 319.50 compared to the spot closing of Rs 324.10.

In the cash market, the S&P CNX Nifty lost 59.40 points or 1.39% at 4210.90.

Ashok Leyland

Ashok Leyland

Indotech Transformers

Indotech Transformers

IndusInd Bank

IndusInd Bank

India Economy, Punjab National Bank, Crompton Greaves, Power Finance Corporation

India Economy, Punjab National Bank, Crompton Greaves, Power Finance Corporation

Post Session Commentary - May 21 2009

Indian market slumped sharply lower to close near day’s low on heavy profit booking after a recent rally. Investors were cautious, though witnessed some recovery during early afternoon trade on few bouts of buying. However, the upturn was short-lived and domestic bourses once again slipped into red. Benchmark indices extended losses tracking fragile global cues. Rise in inflation to 0.61% in the 12 months to May 9, 2009 as against previous week''s annual rise of 0.48%, also weighed on sentiments.

The domestic market opened lower backed by the unfavorable cues from the markets all over the world. The Asian markets were lower and the US stock markets on Wednesday closed with losses on the back of grim economic outlook from the US Federal Reserve. Further, lack of positive news restricted benchmark indices to gather momentum. Meanwhile, during afternoon trade stocks slashed losses and gained some ground on some bouts of buying. However, market was unable to carry same impetus and slipped again into red. Market lost more ground during final trading to end the day with losses after huge selling pressure emerged across the board. BSE Sensex ended below 13,800 level and NSE Nifty closed below 4,250 level. From the sectoral front, investors off-loaded position across the sectors. Most of the selling was seen in Capital Goods, Bank, Auto, IT, FMCG and Metal stocks. However, PSU, Oil & Gas and Consumer Durable stocks remained in limelight as witnessed most of the buying from these baskets.

Among the Sensex pack 24 stocks ended in red territory and 6 in green. The market breadth indicating the overall health of the market remained positive as 2097 stocks closed in green while 627 stocks closed in red and 43 stocks remained unchanged in BSE.

The BSE Sensex closed lower by 324.12 points at 13,736.54 and NSE Nifty ended down by 59.40 points at 4,210.90. BSE Mid Caps and Small Caps closed with gains of 0.10 and 134.35 points at 4,673.87 and 5,342.53 respectively. The BSE Sensex touched intraday high of 14,089.51 and intraday low of 13,704.43.

Losers from the BSE Sensex pack are L&T Ltd (8.59%), Maruti Suzuki (6.93%), ICICI Bank (5.15%), HDFC (5.01%), Hindalco (5%), Wipro Ltd (4.86%), TCS Ltd (4.25%), M&M Ltd (3.75%), BHEL (3.73%) and SBI (3.70%).

Gainers from the BSE Sensex pack are ONGC Ltd (8.41%), RCom (4.52%), Ranbaxy Lab (2.66%), NTPC Ltd (1.87%) and Reliance Infra (1.36%).

India''s inflation hovers near the three decade low as its wholesale price index shot up 0.61% in the 12 months to May 9, 2009 as against previous week''s annual rise of 0.48%, government data showed on Thursday. The annual inflation rate was 8.57% during the corresponding week of the previous year.

On the global markets front the Asian markets which opened before the Indian market, ended in red after the U.S. central bank predicted yet deeper recession in America''s economy. Shanghai Composite, Hang Seng, Nikkei 225, Straits Times and Seoul Composite index ended higher by 40.79, 276.35, 80.49, 58.27 and 14.05 points at 2,610.62, 17,199.49, 9,264.15, 2,210.97 and 1,421.65 respectively. However Seoul Composite lost 4.47 points at 1,393.45.

European markets which opened after the Indian market are trading lower. In Frankfurt the DAX index is trading down by 69.23 points at 4,969.71 and in London FTSE 100 is trading lower by 89.66 points at 4,378.75.

The BSE Capital Goods index plunged (5.41%) or 616.94 points to close at 10,794.96. Main losers are Jyoti Struct (8.27%), ABB Ltd (6.71%), Bharat Bijli (6.13%), Areva (5.11%) and Praj Indus (4.84%).

The BSE Bank stocks dropped by (2.91%) or 230.30 points to close at 7,689.23 on fears of rising defaults in a slowing economy. Major losers are Indian Overseas Bank (7.58%), Yes Bank (6.97%), Oriental Bank (6.80%), Kotak Bank (6.64%) and ICICI Bank (5.15%).

The BSE Auto ended down by (2.07%) or 93.49 points at 4,423.14. Losers are Maruti Suzuki (6.93%), Ashok Leyland (3.82%), Herohonda Motors (2.43%), Bharat Forge (1.81%) and Tata Motors (1.77%).

The BSE IT index ended lower by (1.88%) or 53.64 points to close at 2,800.32. Wipro Ltd (4.86%), TCS Ltd (4.25%), Patni Computer (3.05%), Moser Bayer (2.40%) and Oracle Fin (2.16%) ended in negative territory.

The BSE FMCG index closed with decrease of (1.86%) or 39.34 points at 2,072.76. Scrips that lost are United Brew (5.92%), United Spr (4.06%), ITC Ltd (2.54%), Marico Ltd (2.27%) and Dabur India (1.67%).

The BSE PSU index gained (2.75%) or 204.45 points to close at 7,631.35. Gainers are MMTC Ltd (15.08%), HPCL (14.64%), IOC (14.52%), Chennai Petr (13.01%) and BPCL (10.22%).

Aurobindo Pharma surged 5.61%. The company announced that it has further expanded its partnership with Pfizer Inc., a global leader in Pharmaceuticals by executing licensing and supply agreements for several Solid Dosage and Sterile products for a number of emerging market countries.

Tata Motor dropped by 10.77%. The company raised Rs. 4200 crores ($ 840 million) through issue of Secured Non-Convertible Rupee Debentures. The issue opened for bids today at 10 am and dosed at 5 pm. The funds raised will be used for part repayment of the $3 billion bridge facility taken for acquiring Jaguar Land Rover. Tata Motors had earlier prepaid $1.11 billion.

Patel Engineering Ltd lost 1.74%. The company has bagged new orders aggregating to Rs 708.04 crore. The company has bagged an Rs 554.67 crore order from Vidarbha Irrigation Development Corporation (VIDC) and Rs 153.37 crore hydropower order from the Hknachal Pradesh Power Corporation.

Reliance Power ended lower by 3.70%. The company has bagged four hydroelectric power projects of 2,520- Mw capacity worth over Rs 18,000 crore from the Arunachal Pradesh government.

HCL Technologies plunged 1.98%. The company has received an outsourcing services contract from MTV Networks (MTVN) in the US, for online media platform development. The contract covers various brands of MTV Networks, including MTV, VH1, Comedy Central and Nickelodeon.

Reliance Industries lost 1.59%. The company has received the government approval to sign agreements with firms supplying gas to households and car owners in major cities. RIL bagged the government''s nod for the allocation of gas from RIL''s Krishna-Godavari basin to gas distribution firms (CGD) in Delhi as well as Mumbai, Ahmedabad, Gandhinagar, Agra, Indore and Ujjain.

BSE Bulk Deals to Watch - May 21 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
21/5/2009 532331 AJANTA PHARM PRAGNESHROHITKUMARPANDYA B 65473 79.54
21/5/2009 532919 ALLIED COMP ALPESHJAYANTILALPANDIT B 972480 0.58
21/5/2009 532995 AVON CORP DHEERAJ KUMAR B 84204 7.82
21/5/2009 531733 BAFNA SPINNI VINODPUKHRAJJAIN S 246128 1.78
21/5/2009 531719 BHAGIR CHE I VVSS ESTATES PRIVATE LIMITED B 30500 46.73
21/5/2009 531719 BHAGIR CHE I SSVV AGRO FARMS PRIVATE LIMITED B 50000 46.36
21/5/2009 531719 BHAGIR CHE I VIJAYALAKSHMI INS AND PEST LTD S 100500 46.45
21/5/2009 512253 BIO GREEN I SHIVRAMJAGANNATHANGNE S 50230 10.54
21/5/2009 533059 BRAND HOUSE JMP SECURITIES PVT LTD B 297137 20.45
21/5/2009 531682 CAT TECHNOL BASMATI SECURITIES PVT LTD B 234425 5.01
21/5/2009 531682 CAT TECHNOL BP FINTRADE PRIVATE LIMITED B 342007 5.01
21/5/2009 531682 CAT TECHNOL BASMATI SECURITIES PVT LTD S 522000 5.01
21/5/2009 532413 CEREBRA INT D. B. SECURITIES. PVT. LTD. B 74700 9.63
21/5/2009 532413 CEREBRA INT VILPABENPRANAVBHAIVORA B 69000 9.63
21/5/2009 532413 CEREBRA INT VJPATELINVESTMENT B 72700 9.63
21/5/2009 532413 CEREBRA INT NARENDRAAMRATLALAMIN B 71870 9.63
21/5/2009 532413 CEREBRA INT ALPESHJAYANTILALPANDIT B 89100 9.63
21/5/2009 532413 CEREBRA INT KOSHTI SECURITIES B 70000 9.63
21/5/2009 532413 CEREBRA INT CHEMBRA ECONOMIC CONSULTANCY SERVICES LIMITED S 280000 9.63
21/5/2009 532413 CEREBRA INT UDBHAV HOLDINGS PVT LTD S 100000 9.63
21/5/2009 532413 CEREBRA INT SRINIVASARVARADARAJAN S 67110 9.63
21/5/2009 532413 CEREBRA INT AARRKAYS ENERGY SYSTEMS PVT LTD. S 67069 9.63
21/5/2009 502820 DCM LIMITED SETU SECURITIES PVT LTD B 88152 27.49
21/5/2009 502820 DCM LIMITED SETU SECURITIES PVT LTD S 87752 26.65
21/5/2009 523890 DS KULKARNI SVS SECURITIES PVT LTD S 132290 51.22
21/5/2009 532876 EVERONN SYS OPG SECURITIES P LTD B 233338 287.32
21/5/2009 532876 EVERONN SYS CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED B 100000 281.56
21/5/2009 532876 EVERONN SYS OPG SECURITIES P LTD S 233338 287.89
21/5/2009 523277 G V FILMS LT JMP SECURITIES PVT LTD B 2023545 1.65
21/5/2009 523277 G V FILMS LT JMP SECURITIES PVT LTD S 1897281 1.63
21/5/2009 532622 GATEWAY DIST DSP MERRILL LYNCH TRUSTEE CO PVT LTD A/C B 835257 89.08
21/5/2009 530655 GOOD LUCK ST UNITED INDIA INSURANCE CO. LTD. B 25000 164.85
21/5/2009 509148 GOVIND RUBBE MUKESHMAKHIJA S 106360 6.33
21/5/2009 509627 HINDUS DOR O MAVI INVESTMENT FUND LTD. B 600000 69.42
21/5/2009 509627 HINDUS DOR O MAPLENET TECHNOLOGIES PRIVATE LIMITED S 600000 69.43
21/5/2009 532662 HT MEDIA KMUK A/C SANDSTONE CAPITAL INDIA MASTER FUND LTD. B 3094100 86.00
21/5/2009 532662 HT MEDIA CITICORP INTL FINANCE CORPORATION S 3193283 86.26
21/5/2009 522059 INDAGE VIN RAJESH TREXIM PVT. LTD. B 121750 73.86
21/5/2009 522059 INDAGE VIN NEW VERNON ASSET MANAGEMENT LIMITED A/C NEW VERNON INDIA LIMITED S 162689 74.15
21/5/2009 532894 IWIND ENERGY ABN AMRO BANK NV S 750000 23.65
21/5/2009 530049 JJ EXPORTER AMIT BUSINESS PVT LTD B 85000 18.85
21/5/2009 530049 JJ EXPORTER IVORY CONSULTANTS PVT LTD S 85000 18.81
21/5/2009 524826 JUPITER BIOS SONALJATINKHANDWAL B 78000 58.25
21/5/2009 524826 JUPITER BIOS NIRJAY SECURITIES PVT LTD B 78000 58.25
21/5/2009 524826 JUPITER BIOS SONALJATINKHANDWAL S 78000 69.23
21/5/2009 524826 JUPITER BIOS NIRJAY SECURITIES PVT LTD S 78000 63.40
21/5/2009 524826 JUPITER BIOS ABN AMRO BANK NV S 300000 58.15
21/5/2009 532081 K SERA SERA S V ENTERPRISES B 1915169 10.75
21/5/2009 532081 K SERA SERA S V ENTERPRISES S 1915169 10.85
21/5/2009 511131 KAMAN HSG MAVI INVESTMENT FUND LTD. B 530000 35.03
21/5/2009 511131 KAMAN HSG VANSHVALUE REALTY PRIVATE LIMITED S 180000 35.16
21/5/2009 511131 KAMAN HSG MAPLENET TECHNOLOGIES PRIVATE LIMITED S 170000 34.84
21/5/2009 511131 KAMAN HSG DIMENSIONAL PROPERTIES PRIVATE LIMITED S 170000 35.09
21/5/2009 532652 KARNATAKA BK RCTCL A/C RELIANCE LONG TERM EQUITY FUND B 2620500 120.00
21/5/2009 532652 KARNATAKA BK RCTCL A/C RELIANCE REGULAR SAVING FUND EQUITY OPTION B 1391500 120.00
21/5/2009 532652 KARNATAKA BK COPTHALL MAURITIUS INVESTMENTS LTD. S 1595837 120.00
21/5/2009 532652 KARNATAKA BK CITIGROUP GLOBAL MARKETS MAURITIUS PVT LTD S 2620387 120.00
21/5/2009 532283 KASHYAP TEC NARENDRAAMRATLALAMIN S 2273780 0.65
21/5/2009 590011 MOVING PICTU-PMS AMITOJSINGH B 48000 5.40
21/5/2009 500304 NIIT LTD SUNDARAM MF AC SELF FD DIVID B 1190000 42.26
21/5/2009 500304 NIIT LTD SHYAMBIYANI B 860709 40.18
21/5/2009 500304 NIIT LTD SHYAMBIYANI S 906894 40.45
21/5/2009 504058 NIPPO BATT DAIWA SECURITIES SMBC CO LIMITED S 27209 314.77
21/5/2009 532837 ORBITCO JMP SECURITIES PVT LTD B 205032 155.54
21/5/2009 532837 ORBITCO JMP SECURITIES PVT LTD S 209032 152.76
21/5/2009 526109 PRICOL LTD FRANKLIN TEMPLETON MUTUAL FUND S 642414 11.65
21/5/2009 532675 PRITHVI INFO PATNI COMMODITIES AND DERIVATIVES P.LTD S 100000 58.14
21/5/2009 532524 PTC INDIA BAJAJ ALLIANCE LIFE INSURANCE S 1483458 82.65
21/5/2009 507300 RAVALG SUG F TIRATHPRADYUMANPARIKH B 389 6172.46
21/5/2009 523445 RELIANCE INDUSTRIAL INFRASTRUC GENUINE STOCK BROKERS PVT. LTD. B 88945 950.30
21/5/2009 523445 RELIANCE INDUSTRIAL INFRASTRUC OPG SECURITIES P LTD B 231388 942.10
21/5/2009 523445 RELIANCE INDUSTRIAL INFRASTRUC GENUINE STOCK BROKERS PVT. LTD. S 88945 951.01
21/5/2009 523445 RELIANCE INDUSTRIAL INFRASTRUC OPG SECURITIES P LTD S 231388 943.18
21/5/2009 500366 ROLTA IND MORGAN STANLEY MAURITIUS COMPANY LIMITED B 1590008 108.91
21/5/2009 526753 ROSELABS LTD ZAMEERPAWANKUMARAGRAWAL S 58000 10.06
21/5/2009 531898 SANGUINE MD DHIRAJLAL V SANGHVI HUF S 104224 2.44
21/5/2009 500285 SPICEJET LTD JMP SECURITIES PVT LTD S 1289848 19.99
21/5/2009 512048 SPLASH MEDIA RAKESH AKAR B 15000 41.73
21/5/2009 512048 SPLASH MEDIA BHANUMATIDHARAMRAJGIRI S 15500 41.73
21/5/2009 532765 USHER AGRO DKG SECURITIES PVT LTD S 114811 40.11
21/5/2009 531874 VENUS VENT KANCHAN VIJAYKUMAR THAKKAR B 30000 33.79
21/5/2009 523724 VIJ.SHANTI B BHARAT PRITHVIRAJ RANAWAT S 65548 21.30
21/5/2009 530477 VIKRAM THERM MAYAVIJAYSHAH B 13000 20.02
21/5/2009 531249 WELL PACK PA INTERNATIONAL TRANSMISSION PRODUCTS PVT LTD B 38000 142.75
21/5/2009 532795 WIRE& WIRLES TRANSGLOBAL SECURITIES LTD. B 1152351 21.39
21/5/2009 532795 WIRE& WIRLES TRANSGLOBAL SECURITIES LTD. S 1152351 21.45

NSE Bulk Deals to Watch - May 21 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
21-MAY-2009,ALOKTEXT,Alok Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,2506065,19.09,-
21-MAY-2009,DSKULKARNI,DS Kulkarni Dev. Ltd.,BP FINTRADE PRIVATE LIMITED,BUY,126223,51.70,-
21-MAY-2009,EDUCOMP,Educomp Solutions Limited,WARD FERRY MANAGEMENT LTD A/C WF INDIA RECONNAISSANCE FUND L,BUY,87000,2644.19,-
21-MAY-2009,EVERONN,Everonn Systems India Lim,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,87821,283.54,-
21-MAY-2009,EVERONN,Everonn Systems India Lim,C D INTEGRATED SERVICES LTD.,BUY,96843,285.05,-
21-MAY-2009,EVERONN,Everonn Systems India Lim,INDEA ABSOLUTE RETURN FUND,BUY,100000,281.62,-
21-MAY-2009,EVERONN,Everonn Systems India Lim,INDEA LONG TERM OPPERTUNITIES MASTER FUND,BUY,100000,281.62,-
21-MAY-2009,EVERONN,Everonn Systems India Lim,PRB SECURITIES PRIVATE LTD.,BUY,79903,285.73,-
21-MAY-2009,EVINIX,Evinix Accessories Limite,HI-GROWTH CORPORATE SERVICES PVT. LTD.,BUY,542048,2.99,-
21-MAY-2009,GDL,Gateway Distriparks Limit,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,550333,88.90,-
21-MAY-2009,GOLDTECH,Goldstone Tech Ltd.,BHAVESH P PABARI,BUY,100000,26.75,-
21-MAY-2009,HDIL,Housing Development and I,SMC GLOBAL SECURITIES LTD.,BUY,1474750,304.10,-
21-MAY-2009,HTMEDIA,HT Media Limited,RELIANCE LIFE INSURANCE CO.LTD.,BUY,4000000,100.00,-
21-MAY-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,BUY,4457941,43.07,-
21-MAY-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,11309960,20.26,-
21-MAY-2009,KSERAPRO,K Sera Sera Productions L,BASMATI SECURITIES PVT LTD,BUY,1257819,10.68,-
21-MAY-2009,NIITLTD,NIIT Limited,ASIATIC PORTFOLIO LIMITED,BUY,1150158,40.08,-
21-MAY-2009,NIITLTD,NIIT Limited,NIRSHILP SECURITIES PVT. LTD.,BUY,189502,41.20,-
21-MAY-2009,NIITLTD,NIIT Limited,SUNDARAM BNP PARIBAS,BUY,1218000,42.22,-
21-MAY-2009,NIITLTD,NIIT Limited,TRANSGLOBAL SECURITIES LTD.,BUY,834396,41.16,-
21-MAY-2009,RIIL,Reliance Indl Infra Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,143766,952.58,-
21-MAY-2009,RIIL,Reliance Indl Infra Ltd,C D INTEGRATED SERVICES LTD.,BUY,181780,940.84,-
21-MAY-2009,RIIL,Reliance Indl Infra Ltd,GENUINE STOCK BROKERS PVT LTD,BUY,112936,949.85,-
21-MAY-2009,RIIL,Reliance Indl Infra Ltd,MARWADI SHARES AND FINANCE LIMITED,BUY,86431,957.43,-
21-MAY-2009,RIIL,Reliance Indl Infra Ltd,PRB SECURITIES PRIVATE LTD.,BUY,259771,949.96,-
21-MAY-2009,ROLTA,Rolta India Ltd.,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,1143284,109.91,-
21-MAY-2009,ROLTA,Rolta India Ltd.,MORGAN STANLEY MAURITIUS COMPANY LTD,BUY,3900661,109.00,-
21-MAY-2009,ROLTA,Rolta India Ltd.,OM INVESTMENTS,BUY,1698905,109.41,-
21-MAY-2009,SKUMARSYNF,S. Kumars Nationwide Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,1096082,33.99,-
21-MAY-2009,SUNDARMFIN,Sundaram Finance Ltd.,BRIGHT STAR INVESTMENTS PRIVATE LIMITED,BUY,400000,255.00,-
21-MAY-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,2570449,21.38,-
21-MAY-2009,WWIL,Wire and Wireless (India),TRANSGLOBAL SECURITIES LTD.,BUY,1182337,21.43,-
21-MAY-2009,ALOKTEXT,Alok Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,2506065,19.03,-
21-MAY-2009,ALPSINDUS,Alps Industries Ltd.,CORONATION BUILDERS & ENGG. PVT.LTD.,SELL,206756,9.35,-
21-MAY-2009,AUROPHARMA,Aurobindo Pharma Ltd.,RELIANCE CAPITAL ASSET MGT LTD,SELL,275806,343.11,-
21-MAY-2009,BRANDHOUSE,Brandhouse Retails Limite,DEUTSCHE BANK AG, LONDON,SELL,346396,18.53,-
21-MAY-2009,DSKULKARNI,DS Kulkarni Dev. Ltd.,BP FINTRADE PRIVATE LIMITED,SELL,140881,51.58,-
21-MAY-2009,EVERONN,Everonn Systems India Lim,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,88621,283.53,-
21-MAY-2009,EVERONN,Everonn Systems India Lim,C D INTEGRATED SERVICES LTD.,SELL,96843,285.80,-
21-MAY-2009,EVERONN,Everonn Systems India Lim,PRB SECURITIES PRIVATE LTD.,SELL,79903,285.93,-
21-MAY-2009,EVINIX,Evinix Accessories Limite,HI-GROWTH CORPORATE SERVICES PVT. LTD.,SELL,578373,3.02,-
21-MAY-2009,GDL,Gateway Distriparks Limit,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,552333,89.98,-
21-MAY-2009,GOLDTECH,Goldstone Tech Ltd.,GOPAL MARATHE,SELL,105550,26.75,-
21-MAY-2009,HDIL,Housing Development and I,SMC GLOBAL SECURITIES LTD.,SELL,1508806,303.64,-
21-MAY-2009,HTMEDIA,HT Media Limited,CITICORP INTL FIN CORP,SELL,4100000,100.00,-
21-MAY-2009,IBREALEST,Indiabulls Real Estate Li,J P MORGAN SEC LTD A/C COPTHALL MAURITIUS INVEST LTD,SELL,1340000,210.34,-
21-MAY-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,SELL,4457941,43.01,-
21-MAY-2009,INDOWIND,Indowind Energy Limited,ABN AMRO BANK N.V. LONDON BRANCH,SELL,750000,23.77,-
21-MAY-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,11382800,20.23,-
21-MAY-2009,KSERAPRO,K Sera Sera Productions L,BASMATI SECURITIES PVT LTD,SELL,1317846,10.83,-
21-MAY-2009,NIITLTD,NIIT Limited,ASIATIC PORTFOLIO LIMITED,SELL,1150158,40.28,-
21-MAY-2009,NIITLTD,NIIT Limited,NIRSHILP SECURITIES PVT. LTD.,SELL,990525,41.69,-
21-MAY-2009,NIITLTD,NIIT Limited,TRANSGLOBAL SECURITIES LTD.,SELL,843096,41.01,-
21-MAY-2009,PTC,PTC India Limited,BAJAJ ALLIANCE LIFE INSURANCE,SELL,2149775,82.20,-
21-MAY-2009,RIIL,Reliance Indl Infra Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,143766,958.22,-
21-MAY-2009,RIIL,Reliance Indl Infra Ltd,C D INTEGRATED SERVICES LTD.,SELL,181780,941.78,-
21-MAY-2009,RIIL,Reliance Indl Infra Ltd,GENUINE STOCK BROKERS PVT LTD,SELL,112936,950.35,-
21-MAY-2009,RIIL,Reliance Indl Infra Ltd,MARWADI SHARES AND FINANCE LIMITED,SELL,75231,961.29,-
21-MAY-2009,RIIL,Reliance Indl Infra Ltd,PRB SECURITIES PRIVATE LTD.,SELL,241372,954.35,-
21-MAY-2009,ROLTA,Rolta India Ltd.,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,1145284,109.84,-
21-MAY-2009,ROLTA,Rolta India Ltd.,OM INVESTMENTS,SELL,1698905,109.49,-
21-MAY-2009,SKUMARSYNF,S. Kumars Nationwide Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,1210582,33.81,-
21-MAY-2009,SUNDARMFIN,Sundaram Finance Ltd.,DERIVE TRADING PVT LTD,SELL,400000,255.00,-
21-MAY-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,2575449,21.40,-
21-MAY-2009,WWIL,Wire and Wireless (India),TRANSGLOBAL SECURITIES LTD.,SELL,1182337,21.43,-

PSU OMCs defy weak market

The key benchmark indices extended losses for the second straight day as investors booked profit taking cues from weak global markets and after recent sharp surge in prices. Capital goods, auto and banking stocks led the fall. Index heavyweight Reliance Industries extended recent losses. The BSE 30-share Sensex lost 324.12 points or 2.31%, off close to 355 points from the day's high.

The barometer index BSE Sensex fell below the psychological 14,000 mark.

The market was volatile. The market cut losses after a weak start triggered by weak global cues. However, the recovery proved short-lived as the Sensex tumbled to a fresh intraday low in morning trade. It cut losses later. The Sensex moved into the green from red in early afternoon trade. It once again slipped into the red shortly. The market extended losses later.

The headline inflation held near a three- decade low, giving Prime Minister Dr Manmohan Singh's re-elected government room to take steps to support a slowing economy. Inflation based on the wholesale price index (WPI) rose 0.61% in the year through 9 May 2009, higher than previous week's annual rise of 0.48% data announced by the government just a while back showed.

A comfortable victory for the Congress-led coalition government in election has raised expectations of a strong push for economic reforms by the government. As per media reports key government departments have drawn up a slew of proposals to populate an ambitious reform agenda for the first 100 days of Dr Singh's second term as the PM, aimed at giving economic growth a leg-up.

PM has already prepared the broad contours of an economic revival plan to be taken up soon after the new government is formed, reports suggest While recommendations to revive growth and ease the credit squeeze are likely to find a place in the plan, tax proposals are expected to be taken up as budget recommendations. The telecom ministry has prioritised the much delayed auction of 3G airwaves and WiMAX spectrum. It has also prioritised introduction of a new spectrum policy.

The petroleum ministry is aiming for increased domestic output and a targetted-delivery system for the poor

The new government is also likely to pursue disinvestment of state-run undertakings, reports suggest. The disinvestment department under the finance ministry is reportedly working on expanding the list of companies in which the government could reduce its stake. Among these are Power Grid Corporation, Cochin Shipyard, and Rashtriya Ispat Nigam.

Financial sector reforms are likely to get a push in the coming days, which were relegated to the back seat due to persistent opposition from the Left parties.

Meanwhile, a meeting slated this morning between Prime Minister Singh and President Pratibha Patil on government formation was deferred apparently because the list of the Council of Ministers was yet to be finalised, reports suggest.

The Congress party-led coalition has the support of 322 lawmakers, Prime Minister-elect Manmohan Singh said on Wednesday, 20 May 2009, giving it a clear majority in a new government. Singh and Congress party chief Sonia Gandhi met President Pratibha Patil to seek approval to form a new government. President Pratibha Devisingh Patil on Wednesday appointed Manmohan Singh Prime Minister and invited him to name his Council of Ministers.

The invitation to form the government came after Dr. Singh and Congress president Sonia Gandhi staked claim with letters of support from 274 members of the 15th Lok Sabha. In addition, the Bahujan Samaj Party, the Samajwadi Party and the Rashtriya Janata Dal sent letters of support for a Manmohan Singh-led government directly to the President, taking the support base to 322.

Dr Singh, the 76-year-old economist-turned-politician, will be sworn in as Prime Minster of India for the second term on Friday 22 May 2009, a day after the 18th death anniversary of Rajiv Gandhi. Dr Singh was renominated as Congress Parliamentary Party leader on Tuesday (19 May 2009).

The Congress-led UPA defied predictions of a tight election and was only about 11 seats short of an majority from the 543 seats at stake in the recently concluded Lok Sabha election. Congress' alliance took 261 seats, sweeping aside its nearest rival, the bloc led by the Hindu-nationalist Bharatiya Janata Party (BJP), which won only 159 combined. Congress, which alone won 205 seats, needs a handful of partners to reach the 272 seats needed to take power, and is expected to seek the support of more smaller parties or independents.

Meanwhile, the stock market will keep a close eye on the allocation of portfolios in the new government. It remains to be seen who get the key ministries viz. power, transport and education sectors. Analysts say growth in these three sectors are key for India to achieve strong economic growth. If those seen as strong performers are given charge of these three ministries, the market may extend gains.

As per reports, Congress's strong showing in election means reformers will almost certainly be named to key ministerial portfolios viz. finance, trade, defence and foreign affairs. Fresh reformist faces may also join the cabinet for the first time, including Rahul Gandhi, heir to the powerful Gandhi dynasty and seen as pushing a new generation of leaders into the Congress.

Veteran Congress leader Pranab Mukherjee is the frontrunner for the post of the finance minister. Among the other contenders for the post of the finance minister are C Rangarajan, an economic adviser to the prime minister, Montek Singh Ahluwalia, deputy chairman of the Planning Commission. As per market talks, P Chidambaram could retain his home portfolio.

The two contenders for the post of the external affairs minister are Kapil Sibal and Salman Khursheed. Another senior leader Murli Deora may retain his old portfolio viz. petroleum. And A K Antony is also likely to retain defense portfolio. Jairam Ramesh may become Power minister

Trinamool Congress (TC) leader Mamata Banerjee is likely to be made Railway Minister. DMK is said to be insisting on IT, shipping and surface transport, environment and forest, portfolios.

As per reports, DMK and TC are bargaining hard for more berths in the Council of Ministers. While DMK is seeking nine ministerial berths, TC is insisting on getting one more ministerial portfolio than what the DMK gets, reports suggest.

Foreign funds turned sellers on Wednesday, 20 May 2009, after buying aggressively in the past two months. Foreign institutional investors (FIIs) sold shares worth Rs 234.10 crore on Wednesday. FII inflow in May 2009 totaled Rs 15,134.70 crore (till 20 May 2009) while their inflow in calendar year 2009 totaled Rs 15,491.20 crore.

Weak global markets weighed on the domestic bourses. European shares fell on Thursday to snap a five-day winning run as comments from the US Federal Reserve provided a reason for investors to reassess recent optimism over the economy. Key benchmark indices in France, Germany and UK were down by between 1.6% to 2.06%.

Standard & Poor's cut its credit-rating outlook on the UK to negative from stable though it affirmed the country's AAA sovereign credit rating. "We have revised the outlook on the UK to negative due to our view that, even assuming additional fiscal tightening, the net general government debt burden could approach 100% of GDP and remain near that level in the medium term," Standard & Poor's credit analyst David Beers said.

UK retail sales rose 0.9% month-on-month in April 2009 and 2.6% on year-on-year, according to data compiled by the Office of National Statistics. Economists had been expecting a monthly rise of 0.5% and an annual rise of 2.4%.

Asian stocks retreated today, dragging the MSCI Asia Pacific Index from a seven-month high, as the stronger yen diminished earnings prospects in Japan and the US Federal Reserve projected a deeper recession. Key benchmark indices in China, Hong Kong, Japan, Singapore, South Korea were down by between 0.86% to 2.57%. Taiwan's Taiwan Weighted rose 0.23%.

Singapore's gross domestic product declined 14.6% in quarter ended March 2009 after shrinking 16.4% between October and December 2008. The Ministry of Trade and Industry said it saw "no decisive indicators of economic recovery." For all of 2009, the ministry said it was keeping its forecast for a 6%-9% contraction. If correct, it would be the worst economic decline since Singapore's independence from Malaysia in 1965

US stock futures slipped Thursday, as Standard & Poor's move to lower the credit-rating outlook on Britain raised fears that a downgrade of the US government's debt rating could be coming soon as well. Trading in US index futures indicated the Dow could fall 43 points at the opening bell on Thursday, 21 May 2009.

Like the UK, US public spending has swelled, the country's central bank has embarked on quantitative easing and interest rates are at ultra-low levels in reaction to the credit-led recession

US markets ended lower on Wednesday, 20 May 2009, as American Express Company said legislation to curb credit-card fees may reduce lending to consumers. The Dow Jones Industrial Average shed 52.81 points or 0.62%, to 8,422.04. The S&P 500 lost 4.66 points or 0.51%, to 903.47 and the Nasdaq Composite fell 6.70 points or 0.39%, to 1,727.84.

Fed policy makers projected a fourth-quarter US contraction of 1.3% to 2% from a year earlier, according to minutes of an April 28-29 meeting released yesterday, 20 May 2009. That compares with January projections for a contraction of 0.5% to 1.3%. US unemployment surged to 8.9% in April 2009, a level not seen since 1983.

The BSE 30-share Sensex lost 324.12 points or 2.31% to 13,736.54. The Sensex rose 28.85 points at the day's high of 14,089.51 in afternoon trade. At the day's low of 13,704.43, the Sensex fell 356.23 points in late trade.

The S&P CNX Nifty was down 59.40 points or 1.39% to 4,210.90. Nifty May 2009 futures were at 4219.50, at a premium of 8.60 points over the spot closing of 4210.90. Turnover in NSE's futures & options (F&O) segment inched up to Rs 71702.09 crore from Rs 70570.87 crore on Wednesday, 20 May 2009.

BSE clocked a turnover of Rs 7,951 crore lower than Rs 8415.09 crore on Wednesday, 20 May 2009.

The BSE Mid-Cap index was almost unchanged at 4,673.87. The BSE Small-Cap index rose 2.58%. Both the indices outperformed the Sensex.

From a recent high of 14,302.03 on Tuesday, 19 May 2009, the Sensex has lost 566.49 points or 3.95%. Yet, the Sensex is up 4099.31 points or 42.48% in calendar year 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 5,576.14 points or 68.33%.

Coming back to today's trade, the BSE PSU index (up 2.75%), the BSE Oil & Gas index (up 0.82%), the BSE Consumer Durables index (up 0.81%), the BSE Healthcare index (down 0.36%), the BSE TECk index (down 1%), the BSE Power index (down 1.19%), the BSE Realty index (down 1.31%), the BSE Metal index (down 1.5%), the BSE FMCG index (down 1.86%), the BSE IT index (down 1.88%), the BSE Auto index (down 2.07%), outperformed the Sensex.

The BSE Bankex (down 2.91%), the BSE Capital Goods index (down 5.41%) underperfomed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On BSE, 2,100 shares rose as compared with 636 that fell. A total of 40 shares remained unchanged.

From the 30 share Sensex pack, 24 stocks fell while rest rose.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) fell 1.59% to Rs 2,116.80 on profit taking after a recent sharp surge. The stock was volatile. It hit a high of Rs 2,177.85 and a low of Rs 2,107. Analysts expect strong growth in bottom line in coming quarters from sale of gas which it started pumping last month from its deep-sea field off the east coast.

India's biggest state-run oil exploration firm by revenue Oil & Natural Gas Corporation (ONGC) rose 8.41%, as crude oil rose. Crude oil for July 2009 delivery jumped 3.2% to $62.04 a barrel in New York yesterday, 20 May 2009, the highest settlement since 10 November 2008. The rise in crude oil prices would result in higher realizations from crude sales for oil exploration firms.

PSU OMCs rose on reports the petroleum ministry has prepared a draft Cabinet note on freeing petrol and diesel prices from government control, after which they will be linked to international movements. BPCL, HPCL and IOCL, rose by between 10.22% to 14.64%.

With international crude oil prices hovering between $50 a barrel and $60 a barrel, the oil ministry reportedly feels it is the right time to free petrol and diesel prices from government control. Petrol prices may be raised by about Rs 2 per litre and diesel rates cut by Rs 0.30 a litre if the proposal to free auto fuel prices from state control is approved by the incoming Cabinet.

According to the proposal, state-run IOC, BPCL and HPCL will be given freedom to fix rates of petrol and diesel till the time crude oil stays below $75 a barrel. If it breaches this mark, the government will step in to protect the interests of consumers.

Auto stocks fell on concerns a likely partial decontrol of petrol and diesel prices will result in an immediate rise in retail prices of petrol and diesel. Maruti Suzuki India, Mahindra & Mahindra and Heor Honda Motors fell by between 2.43% to 6.93%.

India's largest commercial vehicle maker by sales Tata Motors fell 1.77% on profit taking after recent solid surge. The company has raised Rs 4,200 crore through the issue of secured non-convertible debentures (NCD) in the local market. In a statement issued on Wednesday, 20 May 2009, the company said the funds raised will be used for part repayment of the $3-billion bridge loan facility taken for acquiring Jaguar Land Rover (JLR) last year. Of this, Tata Motors had earlier pre-paid $1.11 billion.

Capital goods stocks fell on profit taking after a recent solid surge triggered by expectations of increased infrastructure spending by the Congress-led UPA government to boost growth. India's biggest engineering & construction firm by revenue L&T lost 8.59% to Rs 1242.60 and India's biggest power equipment maker by revenue Bhel shed 3.73% to Rs 1964.30.

Banking stocks fell on profit taking after they rose recently on hopes the UPA government will pursue financial sector reforms. India's largest private sector bank by net profit ICICI Bank fell 5.15%. Its American depository receipt (ADR) fell 2.77% overnight.

India's biggest bank in terms of branch network State Bank of India (SBI) fell 3.7%. As per reports, the Congress-led UPA government may go ahead on a plan to merge six associate banks with State Bank of India to create a Indian banking behemoth. The government may also re-introduce the State Bank of India (Amendment) Bill that will enable Centre to reduce its stake in SBI to 51% from current 59.41%.

India's second largest private sector bank by operating income HDFC Bank fell 0.51%. Its American depository receipt (ADR) fell 1.63% on Wednesday, 20 May 2009.

India's biggest dedicated housing finance firm by operating income HDFC fell 5.01%. As per recent reports, HDFC is likely to cut deposit rates and follow it with a cut in lending rates.

With a decisive mandate, there are expectations that the UPA government may pursue financial sector reforms. There is likely to be some movement on passage of the Bill to amend the Insurance Act, 1938. Apart from raising the foreign investment ceiling to 49%, from 26% at present, the Bill had proposed to do away with the stipulation on Indian promoters having to mandatorily sell a part of their holdings after 10 years of operation.

There are two other Bills act for providing statutory backing to the pensions regulator and to amend the Banking Regulation Act which have been pending in Parliament for over five years, mainly due to the opposition from the Left parties. But now the Left is no longer an ally of the re-elected UPA, the Bills may finally be enacted.

The Pension Fund Regulatory & Development Authority Bill will allow the regulator to issue regulations, instead of the present system where it has to enter into agreements with service providers such as the fund managers. In addition, it will also help PFRDA regulate the pension products offered by life insurance companies. The new government may also announce tax benefits on investment in the New Pension Scheme, which will help make it attractive for investors, reports suggest

The amendments to the Banking Regulation Act will allow foreign investors to exercise voting rights in line with their shareholding. While the Reserve Bank of India has concerns on greater play for foreign banks, it will have no reservations in getting more powers for regulation of banks and supercession of borads, which are provided for in the Bill.

The government may also re-introduce the Micro-finance Development and Regulation Bill

Outsourcing focussed IT stocks fell after the Federal Reserve disclosed in its minutes from the last rate-setting meeting that it lowered its forecast for growth of the US economy this year given the weakness in the first quarter. US is the biggest market for Indian IT firms. A firm rupee also weighed on IT stocks.

India's largest software services exporter by sales TCS fell 4.25%. TCS last week it has been selected for a five-year IT services contract for auto maker Volkswagen group's operations in the United Kingdom.

India's second largest software services exporter by sales Infosys fell 2.05% as its American depository receipt (ADR) fell 2.45% overnight.

India's third largest software services exporter by sales Wipro fell 4.86%. Its ADR fell 0.72% overnight.

The rupee extended its recent solid surge. The partially convertible rupee was at 47.34 per dollar, stronger from its Wednesday's close of 47.47/48. It is up close to 10% since hitting a record low of 52.2 in early March 2009. A firm rupee affects operating profit of IT firms negatively as they earn most of their revenues from exports.

Some FMCG stocks fell as investors pulled out from the so-called defensive stocks. ITC, Hindustan Unilever, United Breweries, Marico, Nestle India and Dabur India, fell by between, 1.2% to 5.92%.

Healthcare stocks rose on hopes newly elected UPA government will give primary importance to healthcare segment and health of citizens. Dr Reddy's Laboratories, Biocon, Lupin, and Wochardt, Pfizer rose by between 1.06% to 11.83%.

India's largest drug maker by sales Ranbaxy Laboratories rose 2.66% after chairman Malvinder Mohan Singh said that the company will be able to wipe out its forex losses in the quarter ending June 2009 and head back towards profitability if rupee appreciates further. Ranbaxy posted losses of over $150 million last quarter due to the mark-to-market hit on forex derivative contracts due to depreciation in rupee. Rupee is now sub 48 mark after touching 52 mark in March 2009.

Realty stocks fell on profit taking after recent surge on expectations stability at the Centre will attract more money from foreign investors into the sector. Indiabulls Real Estate, Unitech, DLF, Ansal Properties fell by between 0.56% to 3.62%.

But, Sobha Developers jumped 10% and Housing Development and Infrastructure rose 0.99% on reports these two realty firms may raise a total of Rs 3,000 crore by the end of next month through qualified institutional placement.

Airlines stocks rose on hopes the newly elected government may allow foreign direct investment in the sector. Jet Airways, and SpiceJet rose by between 3.94% to 5.62%. While Kingfisher Airlines fell 3.01%.

The Indian aviation industry has been plagued by large losses, rising debt levels and a serious liquidity crunch. According to reports, measures like increasing the present cap on Foreign Direct Investment (FDI) in the aviation sector as well as withdrawing the restrictions on investment by foreign airlines in the domestic carriers are important to save the industry from the current crisis that it finds itself in.

Currently, foreign airlines are not allowed to pick up equity in aviation companies while foreign investors and financial institutions can hold up to a 49% stake.

Cement stocks fell on profit taking after recent surge triggered by hopes UPA government's likely thrust on infrastructure sector would boost cement demand. Grasim Industries, ACC, Ambuja Cements fell by between 1.08% to 3.68%.

India's second largest telecom services provider by sales Reliance Communications rose 4.52% after S P Shukla, president for wireless business, said revenue and profit will improve in the current quarter as the company gradually eliminates free voice services offered to new users. The company logged net additions of 2.2 million in April 2009 down from about 3 million in March 2009, after axing some free users.

India's largest steel maker by sales Tata Steel fell 1.45% even as Managing Director B. Muthuraman said sales volume in India will grow 25% in the fiscal year ending March 2010 (FY 2010). He expects profit margins to remain healthy in the current fiscal year

Cals Refineries clocked the highest volume of 4.32 crore shares on BSE. Kashyap Technologies (3.18 crore shares), Ispat Industries (2.48 crore shares), Reliance Natural Resources (2.44 crore shares) and Unitech (2.04 crore shares) were the other volume toppers in that order.

Housing Development & Infrastructure (Rs 277.96 crore), ICICI Bank (Rs 242.20 crore), DLF (Rs 240.59 crore), Reliance Industries (Rs 210.56 crore) and Tata Steel (Rs 209.59 crore) were the other turnover toppers in that order.

Pre Session Commentary - May 21 2009

Today domestic markets are likely to open negative amidst weak global cues. The US markets closed in red due to FOMC’s outlook of the economy which shows contraction in the real GDP during the current fiscal along with trough path for the housing sector. The bottom-line stocks may once again steel the charm of the day form the heavy weights. Further the UPA government formation to go with the swearing tomorrow would hardly affect the market sentiments today as traders are cautious in taking fresh positions.

On Wednesday, the domestic markets closed in red. The session started with a timid trade amidst lack of any cues from other Asian markets which were trading mixed. As the trading session progressed the markets started plunging in red exuding profit booking and cautiousness. A firm trend in London Metal Exchange (LME) thrust local market indices like CD, Metal and Auto that closed with huge gains of 9.69%, 5.22% and 4.70% respectively. On the other hand Bankex, Oil & Gas and Teck suffered losses of 2.45%, 2.09% and 1.33% respectively. The bottom line stocks for the second consecutive day outshined the benchmark indices by clocking remarkable gains of 6.03% and 8.86% respectively. We expect the markets to be trading negative.

The BSE Sensex closed low by 241.37 points at 14,060.66 and NSE Nifty ended with loss of 48.15 points at 4,270.30. BSE Mid Caps and Small Caps closed with gains of 265.95 points and 424.04 points at 4,673.77 and 5,208.18 respectively. The BSE Sensex touched intraday high of 14,405.51 and intraday low of 13,976.49.

On Wednesday, the US stock markets closed in red. The fragile outlook of the FOMC meeting suggested that the real GDP will face a contraction this year. The housing sector is also facing a trough situation amidst the downturn in economy. Sectors like financial and consumer finance companies were shattered during the day’s trade. Though Bank of America exuded some strength after announcing that it has raised $13.5 billion through share offering, the banking stocks could not resist the selling pressure. Consumer finance companies were under huge pressure after the Senate’s approval and House of Representatives approved a bill to make stringent changes for the credit card industry. Dow Component Hewlett Packard generated in-line earnings for the last quarter and has a upside outlook for the current fiscal. However the stock ended with a loss of 0.7%. The US light crude oil futures for July closed higher by 3.3% at $62.01 per barrel on the New York Mercantile Exchange.

The Dow Jones Industrial Average (DJIA) declined by 52.81 points to close at 8,422.04. The NASDAQ Composite (RIXF) index fell by 6.70 points to close at 1,727.84 and the S&P 500 (SPX) closed low by 4.66 points at 903.47.

Today major stock markets in Asia are trading negative. Hang Seng is trading low by 208.16 points at 17,267.68 followed by Shanghai Composite which is low by 29.97 points at 2,621.44. Japan''s Nikkei is low by 123.06 points at 9,221.58, Strait Times is low by 19.59 points at 2,249.65. Seoul Composite fell by 17.78 points at 1,417.92 respectively.

Indian ADRs ended mostly lower. In technology sector, Infosys ended down by 2.45% along with Wipro by 0.72%. Further, Satyam lost 0.44% while Patni Computers gained 2.27%. In banking sector ICICI Bank and HDFC Bank dropped by 2.77% and 1.63% respectively. In telecommunication sector Tata Communication decreased by 0.57% whereas MTNL advanced by 3.20%. Sterlite Industries increased by 1.52%.

The FIIs on Wednesday stood as net buyers in equity and debt. Gross equity purchased stood at Rs 12,578.90 Crore and gross debt purchased stood at Rs 44.40 Crore, while the gross equity sold stood at Rs 7,534.10 Crore and gross debt sold stood at Rs. 28.80 Crore. Therefore, the net investment of equity and debt reported were Rs 5,044.80 Crore and Rs 15.70 Crore respectively.

On Wednesday, the partially convertible rupee ended at 47.47/48 per dollar, 0.6 percent stronger than previous close at 47.75/77. Rupee continued gaining strength for the fourth consecutive day due to anticipations of more foreign capital inflow as the UPA government is expected to sworn in on May 22, 2009.

On BSE, total number of shares traded were 81.15 Crore and total turnover stood at Rs 8,415.09 Crore. On NSE, total number of shares traded was 159.89 Crore and total turnover was Rs 28,398.75 Crore.

Top traded volumes on NSE Nifty – Unitech with 108221028 shares, Suzlon Energy with 59918605 shares, DLF 27738945 shares, Reliance Comm with 26408897 shares followed by Tata Steel with 24893214 shares.

On NSE Future and Options, total number of contracts traded in index futures was 813193 with a total turnover of Rs 16,919.57 Crore. Along with this total number of contracts traded in stock futures were 529735 with a total turnover of Rs 26,987.93 Crore. Total numbers of contracts for index options were 1189773 with a total turnover of Rs 25,002 Crore and total numbers of contracts for stock options were 32442 and notional turnover was Rs 1,661.38 Crore.

Today, Nifty would have a support at 4,189 and resistance at 4,245 and BSE Sensex has support at 13,650 and resistance at 13,920.

KRBL

We recommend a buy in KRBL from a short-term trading perspective. It is apparent from the charts of KRBL that it was on an intermediate-term downtrend between late July 2008 and early March 2009, from Rs 150 to Rs 42. However, the stock reversed direction, after finding support around Rs 42. Since early March the stock has been on a medium-term uptrend, forming higher peaks and higher troughs. In mid-April, the stock conclusively penetrated the intermediate-term down trendline as well as the 50-day moving average. On May 20, the stock decisively broke out of its significant resistance at Rs 70 by advancing 10 per cent. We notice that there is an increase in volume over the past two trading sessions. The daily relative strength index (RSI) is featuring in the bullish zone and the weekly RSI is heading towards this zone. We are bullish on the stock from a short-term horizon. We expect the stock’s up-move to continue until it hits our price target of Rs 85 in the near future. Traders with short-term trading perspective can buy the stock while maintaining a stop-loss at Rs 72.

via BL

Slide may continue

The south-bound trend in the market is likely to continue on the back of a weak global indices. However raise in FIIs may help the market sentiment. Among the key domestic indices, the Nifty may test 4240 on the downside while on the upside the index could test higher levels of 4310, while the Sensex could test higher levels of 14200 and has a likely support at 13900.

US indices faltered erasing earlier gains, as the Federal Reserve's dour economic outlook curbed optimism about the health of U.S. banks. While the Dow Jones dropped 53 points to close at 8422, the Nasdaq ended 7 points lower at 1728.

Barring few select floats, most of the Indian ADRs posted loss on the US bourses. Infosys, Satyam, Wipro, Tata Motors, ICICI Bank, HDFC Bank and VSNL lost nearly 0.57-3% each, Among the select gainers Rediff gained the most and moved up over 9% while MTNL and Patni Computers ended with decent gains.

Crude oil prices inched lower, with the Nymex light crude oil for July delivery moved up by $1.94 at $62.04 a barrel and in the commodity segment, the Comex gold for June 09 series gained $10.70 to settle at $937.40 an ounce.

Daily trend of FII/MF investment in equities
On May 19 2009, FIIs were net buyers of stocks to the tune of Rs5045 crore (purchases worth Rs12579 crore and sales of Rs7534 crore) while domestic mutual funds were net sellers of stocks to the tune of Rs619 crore (purchases worth Rs7975 crore and sales of Rs8594 crore).

A weak finish to a strong start for US stocks

Minutes of last FOMC meeting take a toll on stocks

US stocks ended modestly lower on Wednesday, 20 May, 2009. US stocks managed a very strong start on Wednesday, 20 May, 2009. But by noon, stocks gave up most of their gains and were trading flat and at the end, they registered losses. It was the financial sector that gave market a solid start in the morning. But with lack of any specific news, the sector failed to continue with its momentum. Earning reports from Target and H-P checked in line with expectations. But losses picked up momentum after last Federal Open Market Committee's meeting minutes hit the wires.

Weakness in the financial sector was the main reason behind today's loss. The sector failed to lend any substantial support to the market in the course of the day. But the same sector had managed to make market make a strong start earlier.

The Dow Jones Industrial Average ended lower by 52.8 points at 8,422. The Nasdaq Composite Index, ended lower by 6.7 points at 1,727. S&P 500 ended lower by 4.6 points at 903.7. Market had opened 101 points higher earlier during the day.

Strength in the financial sector was the main reason behind today's strong open. Bank of America concluded its previously announced common stock offering, which brought in nearly $13.5 billion through the issuance of stock carrying an average price of $10.77 per share. This boosted stocks.

Home improvement retailer, Target announced its latest earnings results ahead of the opening bell today. The company reported better-than-expected earnings this morning.

In other earnings news, Hewlett-Packard posted in-line second quarter earnings and an in-line forecast for its third fiscal quarter. HP also reaffirmed an upside outlook for fiscal 2009. But the stock failed to drive the tech sector higher. Deere announced better-than-expected earnings.

The minutes from the April FOMC meeting indicated today that participants project a contraction for real GDP this year, and that committee members believe the near-term economic outlook has weakened relative to the projections made in January. However, a recovery in sales and production is still expected to begin in the second half of this year.

Crude oil prices ended higher on Wednesday, 20 May, 2009 after energy department's weekly inventory report showed more than expected drop in crude inventories for last week. The subdued dollar also led to rising crude price. On Wednesday, crude-oil futures for light sweet crude for June delivery closed at $62.04/barrel (higher by $1.94 or 3.2%) on the New York Mercantile Exchange. It was the highest level for crude in six months.

EIA reported today that crude inventories decreased by 2.1 million barrels in the week ended 15 May, 2009. Market was expecting a decline of 1.5 million barrels. Despite the decline, crude inventories, at 368.5 million barrels, were still above the upper boundary of the average range for this time of year. Refineries, meanwhile, operated at 81.8% of their operable capacity last week, slightly higher than a week ago.

In the currency market on Wednesday, the U.S. dollar index, fell more than 1%. The dollar dropped against euro for the third straight session.

Earnings and economic reports will be in focus tomorrow. Among economic report, weekly jobless claims data are due at 8:30 AM ET tomorrow morning. Leading economic indicators for April are due at 10:00 AM ET, as is the Philadelphia Fed Index.