BSE Bulk Deals to Watch - Feb 6 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
6/2/2009 507852 ADDI INDUSTR CHAMAN LAL JAIN B 394220 4.50
6/2/2009 507852 ADDI INDUSTR EDGETECH SOLUTIONS PVT. LTD. S 394470 4.50
6/2/2009 532351 AKSH OPTIFIB DEVENDER KUMAR JAIN B 425000 8.75
6/2/2009 532351 AKSH OPTIFIB RELIANCE CAPITAL ASSET MGT LT. S 425000 8.75
6/2/2009 512253 BIO GREEN I ANIL J BHAYANI B 75000 30.25
6/2/2009 512253 BIO GREEN I MAYA DOSHI S 50000 30.25
6/2/2009 508860 DIAMANT INV ICICI BANK LTD S 10000 44.07
6/2/2009 531939 GENUS COMM T RAMLALI TIWARI B 64875 0.45
6/2/2009 531913 GOPAL IRON BALDEVSINGH VIJAYSINGH GALA B 50000 5.00
6/2/2009 531913 GOPAL IRON DIMPLE A PARIKH S 30800 5.00
6/2/2009 532821 INDUSFILA ARISTRO FINANCIAL SERVICES LTD S 100000 20.90
6/2/2009 532081 K SERA SERA S V ENTERPRISES B 432230 19.89
6/2/2009 532081 K SERA SERA S V ENTERPRISES S 475751 19.99
6/2/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. B 57110 6.05
6/2/2009 511714 NCJ INTERNAT GOPAL GARG S 3000 10.00
6/2/2009 532837 ORBITCO MARWADI SHARES AND FINANCE LIMITED B 206992 58.50
6/2/2009 532837 ORBITCO OPG SECURITIES P LTD B 925572 58.02
6/2/2009 532837 ORBITCO H.J. SECURITIES PVT. LTD. B 283184 58.57
6/2/2009 532837 ORBITCO MARWADI SHARES AND FINANCE LIMITED S 206992 58.48
6/2/2009 532837 ORBITCO OPG SECURITIES P LTD S 925572 58.23
6/2/2009 532837 ORBITCO H.J. SECURITIES PVT. LTD. S 283184 59.48
6/2/2009 531952 RIBA TEXTILE SHAILESH SOMABHAI PATEL S 86000 36.04
6/2/2009 531215 RTS POWER CO JITENDRA MANNALAL JAIN B 41380 297.94
6/2/2009 531215 RTS POWER CO JITENDRA MANNALAL JAIN S 41380 297.94
6/2/2009 514304 S. KUMARS NAT COPTHALL MAURITIUS INVESTMENT LIMITED S 1730095 18.23
6/2/2009 531898 SANGUINE MD PRASHANT MAHADEV KAMBLE S 134206 6.26
6/2/2009 508954 SANJAY LEAS SEEMA M.VARDHAN B 4500 30.33
6/2/2009 526885 SARLA PER F ABHIJIT S. DATAR B 35000 27.50
6/2/2009 532638 SHOPPER STOP DERIVE TRADING PRIVATE LIMITED B 289678 83.00
6/2/2009 512048 SPLASH MEDIA TAPAN GANGWAL B 22000 43.65
6/2/2009 500439 VARD HOLDING PRINCIPAL TAX SAVING FUND S 25951 118.00
6/2/2009 531249 WELL PACK PA GANDHI MANISHA NAVNEETLAL B 27950 61.77
6/2/2009 531249 WELL PACK PA USHADEVI SHAHRA S 66990 62.08
6/2/2009 531249 WELL PACK PA SANTOSH SHAHRA S 33000 62.90
6/2/2009 514470 WINSOME TEXT SHAILESH SOMABHAI PATEL S 44500 36.00
6/2/2009 532795 WIRE& WIRLES OPG SECURITIES P LTD B 1256654 16.06
6/2/2009 532795 WIRE& WIRLES OPG SECURITIES P LTD S 1256654 16.08

NSE Bulk Deals to Watch - Feb 6 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
06-FEB-2009,EVINIX,Evinix Accessories Limite,PANKHURI INVESTEMENTS & SECURI,BUY,700000,2.75,-
06-FEB-2009,NOIDATOLL,Noida Toll Bridge Company,HDFC MUTUAL FUND,BUY,1055938,23.20,-
06-FEB-2009,ORBITCORP,Orbit Corporation Limited,BP FINTRADE PRIVATE LIMITED,BUY,275801,57.09,-
06-FEB-2009,ORBITCORP,Orbit Corporation Limited,C D INTEGRATED SERVICES LTD,BUY,285684,56.86,-
06-FEB-2009,ORBITCORP,Orbit Corporation Limited,CPR CAPITAL SERVICES LTD.,BUY,385190,57.09,-
06-FEB-2009,ORBITCORP,Orbit Corporation Limited,CREDENTIAL STOCK BROKERS LIMITED,BUY,234138,56.93,-
06-FEB-2009,ORBITCORP,Orbit Corporation Limited,GENUINE STOCK BROKERS PVT LTD,BUY,576629,57.17,-
06-FEB-2009,ORBITCORP,Orbit Corporation Limited,LATIN MANHARLAL SECURITIES PVT. LTD.,BUY,278496,57.12,-
06-FEB-2009,ORBITCORP,Orbit Corporation Limited,MARWADI SHARES AND FINANCE LIMITED,BUY,301937,57.55,-
06-FEB-2009,ORBITCORP,Orbit Corporation Limited,OM INVESTMENTS,BUY,478601,56.81,-
06-FEB-2009,ORBITCORP,Orbit Corporation Limited,P R B SECURITIES PRIVATE LTD,BUY,314848,59.20,-
06-FEB-2009,ORBITCORP,Orbit Corporation Limited,R APPALA RAJU,BUY,230000,56.81,-
06-FEB-2009,ORBITCORP,Orbit Corporation Limited,R.M. SHARE TRADING PVT LTD,BUY,223133,56.66,-
06-FEB-2009,ORBITCORP,Orbit Corporation Limited,TRANSGLOBAL SECURITIES LTD.,BUY,185149,57.41,-
06-FEB-2009,PNC,Pritish Nandy Comm. Ltd.,ARTINVEST INDIA PRIVATE LIMITED,BUY,80000,16.00,-
06-FEB-2009,PVP,PVP Ventures Limited,HARISH CHANDRA PRASAD,BUY,1300000,10.00,-
06-FEB-2009,SHOPERSTOP,Shopper?s Stop Limited,DERIVE TRADING PRIVATE LIMITED,BUY,304734,83.00,-
06-FEB-2009,VENKEYS,Venky's (India) Limited,VENKA HATCHERIES PRIVATE LIMITED,BUY,104632,68.00,-
06-FEB-2009,WWIL,Wire and Wireless (India),AMBIT SECURITIES BROKING PVT. LTD.,BUY,1339417,16.10,-
06-FEB-2009,WWIL,Wire and Wireless (India),PRABHUDAS LILLADHER PVT LTD.,BUY,1258924,16.03,-
06-FEB-2009,EVINIX,Evinix Accessories Limite,PADAM PRECISION DIES & COMPONENTS PVT LTD,SELL,700000,2.75,-
06-FEB-2009,ORBITCORP,Orbit Corporation Limited,BP FINTRADE PRIVATE LIMITED,SELL,275801,59.42,-
06-FEB-2009,ORBITCORP,Orbit Corporation Limited,C D INTEGRATED SERVICES LTD,SELL,285684,56.94,-
06-FEB-2009,ORBITCORP,Orbit Corporation Limited,CPR CAPITAL SERVICES LTD.,SELL,380504,57.22,-
06-FEB-2009,ORBITCORP,Orbit Corporation Limited,CREDENTIAL STOCK BROKERS LIMITED,SELL,234138,57.06,-
06-FEB-2009,ORBITCORP,Orbit Corporation Limited,GENUINE STOCK BROKERS PVT LTD,SELL,576629,57.20,-
06-FEB-2009,ORBITCORP,Orbit Corporation Limited,LATIN MANHARLAL SECURITIES PVT. LTD.,SELL,278496,57.46,-
06-FEB-2009,ORBITCORP,Orbit Corporation Limited,MARWADI SHARES AND FINANCE LIMITED,SELL,280187,58.00,-
06-FEB-2009,ORBITCORP,Orbit Corporation Limited,OM INVESTMENTS,SELL,478601,56.86,-
06-FEB-2009,ORBITCORP,Orbit Corporation Limited,P R B SECURITIES PRIVATE LTD,SELL,314848,59.28,-
06-FEB-2009,ORBITCORP,Orbit Corporation Limited,R APPALA RAJU,SELL,230000,57.56,-
06-FEB-2009,ORBITCORP,Orbit Corporation Limited,R.M. SHARE TRADING PVT LTD,SELL,223133,56.60,-
06-FEB-2009,ORBITCORP,Orbit Corporation Limited,SHREE DHOOT TREDING AND AGENCIES LTD,SELL,317212,57.27,-
06-FEB-2009,ORBITCORP,Orbit Corporation Limited,TRANSGLOBAL SECURITIES LTD.,SELL,180936,57.30,-
06-FEB-2009,PNC,Pritish Nandy Comm. Ltd.,CHARUSHEELA HANMANTRAO SABALE,SELL,80000,16.00,-
06-FEB-2009,PVP,PVP Ventures Limited,INDIABULLS FINANCIALS SERVICES LTD,SELL,1386055,10.00,-
06-FEB-2009,SKUMARSYNF,S. Kumars Nationwide Ltd,Copthall Mauritius Investment Ltd,SELL,2774912,18.26,-
06-FEB-2009,VHL,Vardhman Holdings Limited,PRINCIPAL TAX SAVINGS FUND,SELL,30000,118.00,-
06-FEB-2009,WWIL,Wire and Wireless (India),AMBIT SECURITIES BROKING PVT. LTD.,SELL,1339411,16.09,-
06-FEB-2009,WWIL,Wire and Wireless (India),PRABHUDAS LILLADHER PVT LTD.,SELL,1258924,16.05,-

Post Session Commentary - Feb 6 2009

The Indian market closed with decent gains in line with other Asian markets which were higher on hopes of US stimulus to revive the world’s largest economy. Positive opening of European markets also contributed to the northward journey of the domestic market. Besides the firm global cues, the forthcoming interim budget which is on the mid of this month, which may offer tax sops and sector-specific stimulus package also contributed the sentiments of the investors. The Indian government is going to announce the interim budget in February 16, 2009 to give a boost to the economy.

The domestic market opened on pleasant note on the back of firm cues from the US markets and positive Asian markets. The US stock market on Thursday rallied with the financial stocks surged on cheerfulness over the government''s forthcoming bank bailout plan and better-than-expected monthly sales from Wal-Mart Stores. Drop in inflation number for the week ended 24th Jan 2009 to 5.07% from 5.64% of the previous week also added to the sentiments. Further markets extended its gains on strong buying across the board. During final trading hours benchmark indices rallied sharply to close with handsome gains. BSE Sensex ended around 9,300 mark and NSE Nifty closed above 2,800 level. From the sectoral front, investors on-loaded their positions across the sectors. The majority of buying was witnessed among Oil & Gas, Metal, Consumer Durable, Bank, Teck, IT, Power and Reality stocks. Midcap and Smallcap stocks also followed the same trendets.

Among the Sensex pack 28 stocks ended in green territory and 2 in red. The market breadth indicating the overall health of the market remained positive as 1459 stocks closed in green while 1002 stocks closed in red and 104 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 209.98 points at 9,300.86 and NSE Nifty ended up by 63.05 points at 2,843.10. Broader market indices were in green as BSE Mid Caps and Small Caps ended with gains of 40.70 points and 33.94 points at 2,882.90 and 3,279.24 respectively. The BSE Sensex touched intraday high of 9,321.38 and intraday low of 9,158.59.

Gainers from the BSE Sensex pack are Ranbaxy Lab (7.08%), Grasim Indus (6.57%), Tata Motors (4.64%), Reliance (4.41%), ICICI Bank (4.09%), TCS Ltd (4.04%), Reliance Infra (4.02%), Bharti Airtel (3.00%) and M&M Ltd (2.77%).

Only two losers from the BSE Sensex pack HUL (1.02%) and DLF Ltd (0.86%).

On the global markets front, The Asian markets ended higher led by gains in the IT and the banking stocks. Further the weaker yen lifted earnings prospects for Japanese electronics companies. Hopes of $920 stimulus package in the US also boosted sentiments. The Shanghai Composite, Hang Seng, Nikkei 225, Straits Times and Seoul Composite index ended up by 83.22, 476.14, 126.97, 10.75 and 32.38 points at 2,181.24, 13,655.04, 8,074.62, 1,715.35 and 1,210.26.

European markets are trading in green tracking Wall Street gains overnight. FTSE 100 is trading higher by 27.40 points at 4,256.33 and the DAX index is trading up by 32.83 points at 4,543.32.

The BSE Oil & Gas index ended higher by (3.27%) or 200.3 points at 6,333.86. Gainers are Reliance (4.41%), Cairn Ind (2.70%), ONGC (2.40%), Reliance Natural Resources (1.87%) and Essar Oil (1.69%).


The BSE Metal index closed with increase of (3.04%) or 150.74 points at 5,102.64 as improved manufacturing data in China on 4 February 2009 indicated its downturn may be bottoming out. Scrips that gained are Sesa Goa Ltd (8.69%), JSW Steel (7.29%), Steel Authority (6.82%), Jindal Steel (5.53%), Jai Corp Ltd (4.99%) and Tata Steel (2.28%).

The BSE Consumer Durables index ended higher by (2.52%) or 35.79 points to close at 1,619.79. Titan Ind (3.83%), Videocon Ind (3.57%), Gitanjali GE (0.88%) and Rajesh Export (0.21%) ended in positive territory.

The BSE Bank index ended up by (2.49%) or 115.57 points at 4,763.70 after RBI on 5th February 2009 extended forex swap facility for banks until the end of 2009-10 and raised interest rate ceiling on foreign currency export creditsac. Major gainers are ICICI Bank (4.09%), ICICI Bank (4.09%), Indus Ind Bank (3.59%), Cananra Bank (2.72%), Axis Bank (2.70%) and SBI (2.24%).

The BSE Teck index rose on defensive buying and ended higher by (2.35%) or 41.34 points at 1,802.24. Main gainers are Tel Eighteen (7.80%), IBN18 (4.98%), Zee Ent (4.76%), TCS Ltd (4.04%) and Tech Mah (3.02%).

The BSE IT index gained (2.28%) or 49.11 points to close at 2,204.16 on hopes for US stimulus measures as Rajesh Export (0.21%), HCL Tech (3.37%), Tech Mah (3.02%), Infosys Tech (2.16%) and Wipro Ltd (1.93%) ended in green.

Tata Motors ended higher by 4.64%. India’s largest automobile company said that three-quarters of its purchases from vendors have been paid immediately through an arrangement with banks. The company earlier owes an amount overdue of more than Rs. 1200 crore in-unpaid dues to its suppliers over the past few months.

Satyam Computer surged 2.49% after the board of directors of the company appointed A S Murty as Chief Executive Officer, of the company. The Board has also appointed Homi Khusrokhan and Partho Datta as Special Advisors, to assist in Management and Finance areas, respectively.

Dr Reddy''s Laboratories rose 2.48% after the company said it launched five generic drugs in the US market in January 2009.

Hopes for more measures for economy, industry may keep market buoyant

Expectations of another stimulus package in the interim budget to boost the slowing economy and likely interest rate cuts from the central bank may keep the market firm. The BSE Sensex jumped 209.98 points, or 2.31% to 9,300.86 on Friday, 6 February 2009 boosted by reports the government's forthcoming interim budget on 16 February 2009 might offer tax sops and sector-specific stimulus package. However, global cues will also be closely watched.

The index of industrial production (IIP) data for December 2008 will be released on 11 February 2009. The IIP for the November 2008 stood at 2.4%, compared to contraction of 0.4% in October 2008.

The Commerce Secretary, G.K. Pillai, said on Thursday, 5 February 2009, that government is most likely to announce a third stimulus-like package by the month end to help the various sectors tide over the impact of the current global slowdown and recession. Meanwhile, the Minister of State for Industry, Ashwani Kumar, added the package will contain sector-specific measures, especially for the infrastructure sector and exporters.

The Government had unveiled the first package on 7 December 2008 that called for additional state spending worth about Rs 20,000 crore to spur growth, while cutting value-added tax across the board by 4%. The second one announced on 2 January 2009 provided access to Rs 30,000 crore worth of tax-free bonds to India Infrastructure Finance Co and called for the setting up of a holding company to provide credit worth Rs 25,000 crore to non-banking finance firms.

With exports declining for the third straight month in December 2008 and industrial output also logging a sluggish expansion, the United Progressive Alliance (UPA) Government has been under pressure to unveil another package.

The government will present an interim budget on 16 February 2009 before the parliament elections, which are due by mid-May 2009. As per reports policymakers are examining all options, including tax cuts, aimed at giving a boost to the slowing economy and relief to industry to prevent job cuts.

Inflation slipped to near one-year low in late January 2009, giving more room to the Reserve Bank of India (RBI) to resort to rate cuts to spur the economy. On 27 January 2009 the RBI in its monetary policy review annual said inflation is expected to be below 3% by the end of March 2009.

Inflation measured by the wholesale price index eased to 5.07% in the week ended 24 January 2009 from 5.64% in the previous week, government data released on 5 February 2009 showed. Inflation has now more than halved from a 13-year high of 12.91% hit in August 2008

The RBI has already reduced its leading lending rate to commercial banks, the repurchase rate, by 350 basis points since October 2008 to a historic low of 5.5%. The central bank has also cut the rate at which the bank absorbs funds from the market, the reverse repo, by 200 basis points since December 2008 to 4%.

World economic growth will be 0.5% this year, the weakest postwar pace, with bank losses reaching as much as $2.2 trillion, the International Monetary Fund predicted on 28 January 2009.

On the global front, investors are keenly awaiting a vote on a new version of US President Barack Obama's economic stimulus plan. The US Senate is debating a $920 billion plan next week but it could shrink before being passed.

Meanwhile, caution prevailed ahead of the US jobs data due later on Friday, 6 February 2009. Market watchers said the slight improvement in sentiment towards the US economy, which had helped underpin stocks, could be dampened again if the numbers point to a worse-than-expected deterioration in the job market.

The Obama administration on Monday, 9 February 2009, will release its comprehensive plan to revitalize the financial markets, which is expected to include a new strategy to deal with banks' bad assets and a controversial new program to help troubled homeowners avoid foreclosure

RIL leads rally

Media reports that the forthcoming interim budget may offer tax sops and sector-specific stimulus package boosted the domestic bourses today, 6 February 2009. Buying was witnessed in metal, banking and IT stocks. Index heavyweight Reliance Industries (RIL) soared. The BSE Sensex provisionally jumped 221.60 points, or 2.44%

The market pared gains for a brief period in mid-afternoon trade as European market which opened after Indian market came off higher level due to caution ahead of the release of what is likely to be a dismal US non-farm payroll data for January 2009. The market bounced back again in late trade. Earlier in the day, the market had pared gains in afternoon trade after a rally in mid-morning trade triggered by firm Asian stocks. A worse-than-expected deterioration in the job market may dampen sentiment. The battered US stocks have found support in the past few days on some positive data, the latest being a solid January sales report from retailer Wal-Mart. The US economy is in recession for more than a year.

Closer home, the government is examining all options including tax cuts aimed at giving a boost to the slowing economy and relief to the industry to prevent job cuts, reports suggest. Given the severity of the current global financial and economic crisis, the government may announce some measures to boost the economy even as the established political practice is not to announce tax changes in interim budget so as to avoid burdening the new government. The Indian industry has sought tax benefits like cut in the corporate tax rate from 30% to 20%, sops for the housing sector and relief from payment of fringe benefit tax for exporters.

The government has already announced two fiscal stimulus packages to boost demand. The government will present an interim budget on 16 February 2009 before the parliament elections which are due by mid-May 2009.

European shares were higher on Friday, tracking overnight gains in the US market that rose on optimism that a Government rescue plan would go ahead and bank lending would increase. The key benchmark indices in France, Germany and UK were up by between 0.08% to 0.33%.

Asia stocks rose for a fourth day on Friday, 6 February 2009, with investors awaiting a vote on a massive US stimulus package. Key benchmark indices in Hong Kong, Japan, South Korea, Singapore, Taiwan and China were up by between 0.63% to 3.97%. The US Senate is debating a $920 billion plan but it could shrink before being passed.

US stocks rallied on Thursday, 5 February 2009, on investor hopes that the government's plan to shore up the financial system will include a change in accounting rules that would stem bank write-downs and spur lending. The Obama administration is due to announce its bank rescue plan next week.

A solid January sales report from Wal-Mart, coupled with better-than-expected reports from a few other retailers added to the positive tone. The Dow Jones industrial average rose 106.41 points, or 1.34%, to 8,063.07. The Standard & Poor's 500 Index gained 13.62 points, or 1.64%, to 845.85. The Nasdaq Composite Index climbed 31.19 points, or 2.06%, to 1,546.24.

US President Barack Obama on Wednesday, 4 February 2009, urged action on a $900 billion stimulus bill before Congress to stave off "catastrophe". The US Senate is due to resume debate on the stimulus plan on Friday. Majority Leader Harry Reid said he was cautiously optimistic of it passing.

As per the provisional figures, the BSE 30-share Sensex was up 221.60 points, or 2.44%, to 9,312.48. The Sensex rose 230.50 points at the day's high of 9,321.38 in mid-afternoon trade. The Sensex rose 67.71 points at the day's low of 9,158.59 in early trade.

The S&P CNX Nifty was up 66.70 points, or 2.4%, to 2,846.75 as per the provisional figures.

The BSE clocked turnover of Rs 2,732 crore higher than Rs 2,589.37 crore on Thursday, 5 February 2009.

The market breadth, indicating the overall health of the market, was strong on BSE with 1,460 shares advancing as compared with 1,038 that declined. A total of 63 shares remained unchanged.

Among the 30-share Sensex pack, 28 rose while the rest fell. Mahindra & Mahindra, Ranbaxy Laboratories, Grasim Industries, Reliance Infrastructure rose by between 3.7% to 8.97%.

India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) rose 4.84% to Rs 1,349. The stock has been boosted by a recent Bombay High Court's interim order lifting the stay on sale of gas from its KG basin till the final order.

Other oil & gas stocks, Cairn India, GAIL (India), Reliance Petroleum and ONGC rose by between 0.89% to 2.86%.

Metal stocks gained as improved manufacturing data in China on Wednesday 4 February 2009 suggested its downturn may be bottoming out. Tata Steel, Steel Authority of India, Sterlite Industries and Hindalco Industries rose by between 0.61% to 7.36%. China is the world's largest consumer of industrial metals.

Bank stocks rose after the Reserve Bank of India (RBI) on Thursday, 5 February 2009, unveiled steps to ease credit situation. India's largest bank in terms of assets and branch network State Bank of India rose 2.02%. State Bank of India will lower its home loan rates to 8% for new customers over the coming year, the second time it has reduced mortgage rates in as many months as the economy slows. The new rate will be offered between 2 February and 30 April 2009. SBI had previously charged 9.75% on a floating basis for home loans, and 11.25-12.25% on a fixed basis.

India's second largest private sector bank by net profit HDFC Bank rose 1.34% as its American depository receipt (ADR) rose 2.79% on Thursday, 5 February 2009.

India's largest private sector bank by net profit ICICI Bank gained 3.75% as its ADR gained 0.99% overnight.

PSU banks, Punjab National Bank, Union Bank of India, Bank of Baroda, Bank of India rose by between 0.38% to 1.93%.

India's largest dedicated housing finance company by total income HDFC rode 1.97%.

The RBI on Thursday extended forex swap facility for banks until the end of 2009-10 and raised interest rate ceiling on foreign currency export credit. Another trigger for the rally in banking stocks was on buzz that the interim budget will provide Rs 2,000 crore for bank recapitalization and also on hopes the Reserve Bank of India may cut rates after the interim budget.

IT pivotals gained on hopes for US stimulus measures to take shape sooner rather than later. India's third largest software services exporter, Wipro rose 1.93%. India's second largest software services exporter Infosys Technologies rose 2.16% even as its ADR fell 1.03% overnight. India's fifth largest IT exporter by sales HCL Technologies rose 3.37%. TCS, India's largest software services exporter by sales rose 4.04%.

Satyam Computer Services rose 2.49% after the new board of fraud-scarred Satyam Computer Services on Thursday, 5 February 2009, appointed A S Murty as chief executive officer (CEO), and said it had bank approval for funding of Rs 600 to meet capital requirements. Murty, a Satyam executive for 15 years, will be the chief executive with immediate effect, the company said in a statement.

IT firms derive a lion's share of revenue from export to the US. IT stocks rose despite a firm rupee. The Indian rupee edged higher early on Friday, supported by the dollar's weakness against some Asian currencies and hopes for a firm opening in stocks. The partially convertible rupee was at 48.69 per dollar, stronger than Thursday's close of 48.77/78. A stronger rupee affects operating margin of IT firms negatively.

India's largest realty player by market capitalization DLF fell 0.86% on recent report it has cut property prices by 20% to beat slowdown in demand for new homes.

Sunteck Realty soared 9.24% on reports domestic real estate fund Kotak Realty picked up 10% stake in the company through conversion of warrants.

Sundaram Brake Linings rose nearly 5% to Rs 111.30 after the company said its board approved raising upto Rs 15 crore by way of issuing equity shares on rights basis.

Market drifts lower on lingering concerns about the economy

Key benchmark indices drifted lower weighed by renewed concerns about the deteriorating state of the US economy and on selling pressure from foreign institutional investors. However the market cut losses in later part of the week on reports that the forthcoming interim budget may offer tax sops and sector-specific stimulus package. Market edged higher in three out of five trading sessions.

On 5 February 2009, Home Minister P Chidambaram said the interim budget may include some changes in the tax structure. The government will present an interim budget on 16 February 2009 before the parliament elections which are due by mid-May 2009. As per reports policymakers are examining all options, including tax cuts, aimed at giving a boost to the slowing economy and relief to industry to prevent job cuts.

Inflation based on the wholesale price index rose 5.07% in 12 months to 24 January 2009, below the previous week's annual rise of 5.64%, data released by the government on 5 February 2009, showed. It was the slowest annual rise since 9 February 2008 when inflation was at 4.98%. The Reserve Bank of India (RBI) said in its monetary policy review on 27 January 2009 it expected annual inflation to be below 3% by the end of the 2008/09 fiscal year in March 2009.

Foreign institutional investors (FIIs) are in selling mode after an inflow of Rs 1319.10 crore in December 2008. FII outflow in calendar year 2009 totaled Rs 4,396.70 crore (till 5 February 2009).

The BSE 30-share Sensex fell 123.38 points or 1.31% to 9,300.86 in the week ended 6 February 2009. The S&P CNX Nifty shed 31.70 points or 1.10% to 2843.10 in the week.

The BSE Mid-Cap index slipped 58.67 points or 1.99% to 2,882.80 and the BSE Small-Cap index fell 59.81 points or 1.79% to 3,279.24 in the week.

Trading for the week started on a downbeat note with the key benchmark indices sliding on Monday, 2 February 2009 on renewed concerns about the deteriorating state of the US economy. The BSE 30-share Sensex lost 357.54 points, or 3.79%, to 9,066.70 and the S&P CNX Nifty fell 108.15 points, or 3.76%, to 2,766.65.

Selling pressure at the higher level cut early gains in what was a highly volatile trading session on Tuesday, 3 February 2009. The BSE 30-share Sensex rose 82.60 points, or 0.91%, to 9,149.30 and the S&P CNX Nifty gained 17.25 points, or 0.62%, to 2,783.90.

Firm Asian stocks and hopes that the US stimulus package will be approved aided gains in the key benchmark indices on Wednesday, 4 February 2009. The BSE 30-share Sensex rose 52.55 points, or 0.57%, to 9,201.85 and the S&P CNX Nifty advanced 19.15 points, or 0.69%, to 2,803.05.

Lingering worries about the economic slowdown, weak global markets and sustained selling by foreign funds pulled the market lower on Thursday, 5 February 2009. The BSE 30-share Sensex lost 110.97 points, or 1.21%, to 9,090.88 and the S&P CNX Nifty fell 23 points, or 0.82%, to 2,780.05.

The BSE 30-share Sensex advanced 209.98 points, or 2.31%, to 9,300.86 and the S&P CNX Nifty surged 63.05 points, or 2.27%, to 2,843.10, on Friday 6 February 2009 boosted by reports the government's forthcoming interim budget on 16 February 2009 might offer tax sops and sector-specific stimulus package.

India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) rose 1.38% to Rs 1343.50 after the Bombay High Court in its interim order lifted stay on sale of RIL gas till the final order.

Metal stocks rose as improved manufacturing data in China suggested its downturn may be bottoming out. Data on Wednesday, 4 February 2009 showed China's official purchasing managers' index rose, even though it remained below a reading of 50 that divides expansion from contraction. The index rose to 45.3 for January 2009, up from 41.2 in December 2008 and a record low of 38.8 plumbed in November 2008.

Bank stocks fell on concerns of rising defaults by their clients in a slowing economy. India's largest private sector bank by net profit ICICI Bank lost 2.3% to Rs 406.95. India's largest bank in terms of assets and branch network State Bank of India shed 2.9% to Rs 1118.35.

The RBI on Thursday extended forex swap facility for banks until the end of 2009-10 and raised interest rate ceiling on foreign currency export credit. Another trigger for the rally in banking stocks was buzz that the interim budget will provide Rs 2,000 crore for bank recapitalization and also on hopes the Reserve Bank of India may cut rates after the interim budget.

India's top small car maker by sales Maruti Suzuki India rose 1.46% to Rs 579.35 after it reversed three months of falling sales with a record sales in January 2009 on higher demand for its SX4 and D'zire sedans. Maruti posted a 5.4% rise in vehicle sales to 71,779 units in January 2009 over January 2008.

But India's largest commercial vehicle maker by sales Tata Motors plunged 8% to Rs 137.60. The company's vehicle sales fell 33% in January 2009 over January 2008. Commercial and passenger vehicle sales in India and overseas dropped to 36,931 units last month from 54,796 units a year earlier, Mumbai-based Tata Motors said.

India's largest realty player by market capitalization DLF slumped slumped to an all time low of Rs 124.15 on 4 February 2009. DLF reported 69% fall in consolidated net profit to Rs 670.79 crore on a 58.8% decline in total income to Rs 1502.79 crore in Q3 December 2008 over Q3 December 2008, before market hours on 2 February 2009.

IT pivotals dropped after the industry body viz. the National Association of Software and Service Companies (Nasscom) cut export growth target for the current year. The BSE IT index lost 32.35 points or 1.45% to 2,204.16

Market regulator Sebi late evening on Monday, 2 February 2009 said it will look at easing takeover rules in special cases, ahead of a possible acquisition of the mega fraud hit Satyam Computer Services. The regulator also tightened rules for warrant subscriptions, raising the upfront payment for buying warrants to 25% from 10%. It also eased rules for pricing equity offerings by allowing companies to set the price two days before the opening date of a public offer.

Rules for bonus share offerings were also modified, with the regulator stipulating all offers where shareholder approval is not required should be completed in 15 days.

India's exports fell an annual 1.1% in December 2008 to $12.69 billion, government data showed on Monday, 2 February 2009 as the global slowdown cuts demand for Indian goods. The trade deficit narrowed to $7.57 billion in December 2008 compared with $10.07 billion in November 2008, due to a sharp drop in the cost of oil imports. Imports were up an annual 8.8 % at $20.26 billion in December 2008, while oil imports fell 30.9% during the month from a year earlier to $4.71 billion.

Meanwhile, the direct tax collections were up by a slower-than-expected 12.5% on-year to Rs 247,000 crore for the period from 1 April 2008 to 31 January 2009, data released on 4 February 2009 showed. Despite the slower-than-expected collections, the government is hopeful of its annual target of Rs 365000 crore for the fiscal year.

Pre Session Commentary - Feb 6 2009

Today domestic markets are likely to open positive. The US markets had closed in green and all the Asian markets have opened with phenomenal gains. The sentiments across Asian would propel the domestic markets as well, however one cannot deny the low volume trade in the previous four sessions, which may creep in today’s trade also. Volatility is likely to creep in as there is no specific news to guide the market towards north or south. In Europe the Bank of England has reduced its lending rate to 1% from 1.50% and therefore many European markets were brutally shattered as the baking and financial stocks plummeted. The opening of the European markets may have certain implications on the domestic sentiments after the post mid session.

On Thursday, the markets opened with a positive gap but soon dived into deep red. Due to lack of any specific macro economic news the markets today marched southwards. The sentiments were not good in the other Asian markets as well as European markets which traded in deep red. The diminution in inflation numbers by 57bps to 5.07% for the week ended January 24 2008 had very little significance for the investors’ sentiments. Sectors like Auto, CD, IT and CG witnessed intense selling pressures as they lost 1.98%, 1.88%, 1.86 and 1.47% respectively. Mid caps and Small caps also lost 0.65% and 0.85% respectively. During the session we expect the markets to be trading positive. The Indian government is going to announce the interim budget in the mid of this month in which it will consider all options the tax cuts to give a boost to the economy.





The BSE Sensex closed low by 110.97 points at 9,090.88 and NSE Nifty ended with losses of 23 points at 2,780.05. The BSE Mid Caps and Small Caps ended with losses of 18.46 points and 27.79 points at 2,842.10 and 3,245.30 respectively. The BSE Sensex touched intraday high of 9,247.09 and intraday low of 9,017.08.

The US markets on Friday closed in green. The markets rallied after the bounce back on financial stocks was witnessed as investors conceived the idea that the government’s forthcoming plan to shore up banks may bring some charm for the banking and financial stocks. CISCO, Visa and Mastercard announced better than expected results. On the negative side, weekly initial jobless claims were up for the fourth straight week, this time climbing 35,000 to 626,000 for the week ending Jan. 31. The number exceeded the 580,000 claims that were expected, and was the highest level since 1982.

The Dow Jones Industrial Average (DJIA) closed up by 106.41 points at 8,063.07 NASDAQ index gained 31.19 points at 1,546.24 and the S&P 500 (SPX) gained 13.62 points at 832.23.

Indian ADRs ended mixed. In technology sector, Infosys ended down by 1.03% along with Satyam by 5.73%. Further, Wipro remained unchanged while Patni Computers closed up by 0.71%. In banking sector ICICI Bank and HDFC Bank gained 0.99% and 2.79% respectively. In telecommunication sector, Tata Communication advanced by 1.81% while MTNL dropped by 1.39%. Sterlite Industries decreased by 10.37%.

Today major stock markets in Asia have opened positive. Shanghai composite is up by 40.92 points to 2,139.94, Japan''s Nikkei is also up by 153.31 points at 8,102.96. Hang Seng surged 251.74 points at 13,430.64. South Korea''s Seoul Composite is up by 23.48 points at 1,201.36 and Singapore''s Strait Times is also up by 4.27 points to 1,708.87.

The FIIs on Thursday stood as net sellers in equity and net buyers in debt. Gross equity purchased stood at Rs 1,267.00 Crore and gross debt purchased stood at Rs 92.60 Crore, while the gross equity sold stood at Rs 1,291.40 Crore and gross debt sold stood at Rs 10.30 Crore. Therefore, the net investment of equity and debt reported were Rs (24.40) Crore and Rs 82.40 Crore respectively.

On Thursday, the Indian rupee ended at 48.77/78 per dollar, 0.1% stronger Wednesday’s close of 48.82/83. The rupee was supported by dollar sales by exporters, but greenback demand from oil companies and losses in the domestic share market prevented stronger gains.

On BSE, total number of shares traded were 33.90 Crore and total turnover stood at Rs 2,589.37 Crore. On NSE, total number of shares traded were 69.58 Crore and total turnover was Rs 69.25 Crore.

Top traded volumes on NSE Nifty – Unitech with 33714593 shares, Suzlon Energy with 16801352 shares, DLF with 15572676 shares, SAIL with total volume traded 13707382 shares followed by Tata Steel with 8187008 shares.

On NSE Future and Options, total number of contracts traded in index futures was 741214 with a total turnover of Rs 9482.50 Crore. Along with this total number of contracts traded in stock futures were 750126 with a total turnover of Rs 7,154.03 Crore. Total numbers of contracts for index options were 939598 with a total turnover of Rs 13,499.69 Crore and total numbers of contracts for stock options were 67196 and notional turnover was Rs 672.11 Crore.

Today, Nifty would have a support at 2,768 and resistance at 2,846 and BSE Sensex has support at 9,050 and resistance at 9,268.

US markets recover

Financial and technology stocks help indices end in the green

Stocks at Wall Street ended higher on Thursday, 05 January, 2009. Couple of better than earning reports helped stocks gain momentum which had otherwise had a slow start due to a weaker than expected guidance from Cisco Systems after yesterday's close. Economic reports dominated the first half today and all were almost in line with expectations pointing out towards an economy in recession. Financial and technology sectors contributed to the turnaround.

After opening 103 points lower earlier in the day, The Dow Jones Industrial Average ended higher by 106 points at 8,063, the Nasdaq closed higher by 31 points at 1,546 and the S&P 500 closed higher by 13 points at 845.

Indices managed a turnaround after reports hit the wires that Treasury Secretary Geithner is expected to unveil a comprehensive financial framework plan on next Monday. The traders anticipated that the idea that the government's forthcoming plan to shore-up banks could provide a good reason for stocks to rally in the coming months.

Among major earning reports for the day, Cisco topped earnings expectations, but issued downside revenue guidance. Visa and MasterCard both topped earnings expectations.

Many retailers disclosed their same store sales data which were disappointing as expected. Surprisingly, Wal-Mart witnessed a 2.1% jump in same store sales in January, 2009 and this gave the stock a good boost today.

Among major economic reports of the day, there were quite a few. The Commerce Department reported today that new orders for manufactured goods in US fell 3.9% in December for the fifth consecutive month of declines. It was a little more thane expected. In November, orders fell 6.5%, revised lower from a previously estimated drop of 4.6%.

The Labor Department reported today that the number of new claims for state unemployment benefits surged to their highest level since 1982. Initial jobless claims rose 35,000 to a seasonally adjusted 626,000 in the week ended 31 January, 2009. This put the number at the highest level in 26 years. Meanwhile, the four-week average of new claims rose by 39,000 to 582,250. Continuing jobless claims rose by 20,000 in the week ended 24 January, 2009 to a seasonally adjusted 4.79 million, the most since the government's records began in 1967.

Initial claims represent job destruction, while the level of continuing claims indicates how hard or easy it is for displaced workers to find new employment. The claims data show that businesses are laying off workers at a rapid pace and that finding a replacement job is proving ever harder for those who've lost work.

In a separate report, the Labor Department reported today that U.S. firms cut back on their employees' working hours in the fourth quarter, keeping productivity growth rising faster than expected and suppressing output. Productivity in the non-farm business sector increased at a 3.2% annualized rate as output fell 5.5% and hours worked dropped 8.4%. The decline in output was the largest since 1982 while the decline in hours was the weakest since 1975.

Oil prices gave up earlier losses and ended higher for the day on Thursday, 05 February, 2009 as US stocks rallied today and OPEC hinted at further production cuts. Prices initially had dropped as yesterday's weekly inventory report by the Energy department showed that crude inventories rose more than expected in the last week. Gasoline prices too jumped considerably higher today.

On Thursday, crude-oil futures for light sweet crude for March delivery closed at $41.17/barrel (higher by $0.85 or 2.1%) on the New York Mercantile Exchange. Earlier during the day, it touched a low of $39.46. Last week, crude prices ended lower by 10%. In January, 2009, crude shed 14%.

January job reports will be the main area of focus for tomorrow's market momentum. Market anticipates another half a million of layoffs to be announced in tomorrow's report.

Daily Call - Feb 6 2009

Daily Call - Feb 6 2009

Market may recover on interim budget hopes

Firm global markets and media reports that the forthcoming interim budget may offer tax sops and sector-specific stimulus package may lift the market after yesterday's (5 February 2009)'s slide.

As per reports the government is examining all options including tax cuts aimed at giving a boost to the slowing economy and relief to the industry to prevent job cuts. Given the severity of the current global financial and economic crisis, the government may announce some measures to boost the economy even as the established political practice is not to announce tax changes in interim budget so as to avoid burdening the new government. The Indian industry has sought tax benefits like cut in the corporate tax rate from 30% to 20%, sops for the housing sector and relief from payment of fringe benefit tax for exporters.

The government has already announced two fiscal stimulus packages to boost demand. The government will present an interim budget on 16 February 2009 before the parliament elections which are due by mid-May 2009.

Asia stocks rose for a fourth day on Friday, 6 February 2009, with investors awaiting a vote on a massive US stimulus package. Key benchmark indices in Hong Kong, Japan, South Korea, Singapore, Taiwan and China were up by between 0.55% to 2.9%. The US Senate is debating a $920 billion plan but it could shrink before being passed.

US stocks rallied on Thursday, 5 February 2009, on investor hopes that the government's plan to shore up the financial system will include a change in accounting rules that would stem bank write-downs and spur lending. The Obama administration is due to announce its bank rescue plan next week.

A solid January sales report from Wal-Mart, coupled with better-than-expected reports from a few other retailers added to the positive tone. The Dow Jones industrial average rose 106.41 points, or 1.34%, to 8,063.07. The Standard & Poor's 500 Index gained 13.62 points, or 1.64%, to 845.85. The Nasdaq Composite Index climbed 31.19 points, or 2.06%, to 1,546.24.

Oil prices slipped 25 cents to $40.92 a barrel, after climbing about 70 cents overnight on hopes for US stimulus measures to take shape sooner rather than later. As it has for the last three weeks, the $40 level has been a floor for prices.

The BSE Sensex lost 110.97 points, or 1.21%, to 9,090.88 on Thursday, 5 February 2009. Lingering worries about the economic slowdown, weak global markets and sustained selling by foreign funds pulled the market lower

Market may advance

T
he market may open on a positive note on yesterday's gains in US markets and firm Asian markets in current trades. Major Asian indices like Nikkei, Hang Seng and Kospi are trading with the gains of around 1%each. However, caution should be maintained on account of the prevalence of a intra-day volatility. Among the local indices, The Nifty has a short-term support is at 2750 and could test higher levels around 2820. The Sensex on the upside may touch 9250 level and has a support at 8950.

US indices registered gains on Thursday on a mix of optimism about the government's new version of the bank bailout plan and better-than-expected monthly sales from Wal-Mart Stores. While the Dow Jones gained by 106 points at 8063, the Nasdaq advanced by 31 points at 1546.

Indian ADRs had a mixed outing on US bourses. Satyam Computer fell sharply and tumbled over 5.73% while Infosys, and Rediff declined over 0.50-1% each. However, Tata Motors, HDFC Bank, Dr Reddy's Lab, ICICI Bank and Patni Computer ended with steady gains.

The Nymex light crude oil for March series gained by 85 cents at $41.17 a barrel. In the commodity space, the Comex gold for April delivery rose by $12 to settle at $914.20 an ounce.

IVRCL, Larsen and Tourbo, Tata Motors, BHEL

IVRCL, Larsen and Tourbo, Tata Motors, BHEL

OnMobile Global

We recommend a buy in OnMobile Global from a short-term trading perspective. It is clearly visible from the charts of OnMobile Global that after witnessing a sharp sell-off during October 2008, the stock found support recording its 52-week low of Rs 190 in early November 2008.

However, since then the stock has been on a sideways consolidation in a broad range between Rs 205 and Rs 260. The stock recently tested the lower boundary of this sideways consolidation and bounced up. On February 4, the stock breached the 21 and 50-day moving averages by gaining almost 5 per cent with above average volume.

The daily relative strength index is rising in the neutral region towards the bullish zone. The moving average convergence and divergence is on the brink of entering into the positive territory. We are bullish on the stock from a short-term horizon. We expect it to move up until it hits our price target of Rs 260 in the upcoming trading sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 225.

SGX Nifty Live Update - Feb 6 2009

SGX Nifty at 2,809.5 trading +36.5 points

Trading Calls - Feb 6 2009

Nifty (2780) Sup 2740 Res 2850

Buy Tata Steel (182) SL 178
Target 187, 189

Sell TCS (483) SL 488
Target 475, 471

Sell Corp Bank (175) SL 179
Target 168, 166

Buy ACC (532) SL 526
Target 542, 545

Buy Dr Reddy’s Labs (448) SL 442 Target 460, 462

Daily News Roundup - Feb 6 2009

Satyam Computer Board has appointed AS Murty as the CEO. (ET)

Tata Motors has said that three quarters of its purchases have been paid immediately through an arrangement with banks. (ET)

Reliance and ONGC have agreed to share drilling rigs. (BL)

Infosys said that some of the clients of Satyam Computers have approached them. (ET)

TCS is not bidding for Satyam Computers. (ET)

iGate pulls out of race to acquire Satyam Computers. (ET)

Maytas Infra has issued a legal notice to Vedanta Aluminum alleging fraudulent and illegal encashment of two bank guarantees valued at Rs640mn. (ET)

Tata Motors may roll out Nano on March 3. (BS)

Government has sought dismissal of Tata Power petition seeking re-tendering of Sasan UMPP. (BS)

Vijay Mallaya is ready to sell up to 38% stake in United Spirits from Treasury stock. (BS)

Sterlite Industries is close to signing a contract to buy Asarco LLC. (BS)

Maruti plans to replace Wagon R, Omni and Versa. (BS)

PNB may cut rates further if inflation continues to fall. (BS)

Dr Reddy’s Labs has launched 5 new generics drugs in US. (BL)

Era Infra has bagged Rs2.2bn contract from NTPC. (BL)

JSW Steel’s production of crude steel increased by 41% to 321,000 tons in January. (BL)

Parsvnath Developers is looking to restructure its debt. (BL)

MTNL launches 3G services in Delhi. (BL)

Promoters have raised their holdings to about 60% in Adlabs. (FE)

Jain Irrigation aims at 30% growth in FY10. (FE)

Nagarjuna Constructions has raised Rs1bn through sale of NCDs to LIC. (FE)

Vishal Retail to close down one-third of its outlets. (BL)






Inflation for the week ended January 24 fell to 5.07% from 5.64% in previous week. (ET)

Interim budget may offer tax sops. (ET)

RBI has extended forex swap facility for banks till FY10 and has raised the ceiling rate on foreign currency export credit to Libor plus 350bps. (ET)
Government may impose stock holding limit on sugar to control prices. (ET)

Government has approved road projects worth Rs32.3bn. (BS)

RBI wants Basel II advanced approaches to begin by 2011. (FE)

It’s hammer time!

If the only tool you have is a hammer, you tend to see every problem as a nail.

Market participants could well be forgiven for switching interest to today’s IPL auction as some top names in the game will go under the hammer. As far as the market is concerned, it’s anybody’s guess as to who will go under the hammer – bulls or bears. This week has been extremely lackluster with the key indices being stuck in a sideways, rangebound trend. Volume and turnover are also down. The market could exhibit a dull trend for a while till a big announcement is made, locally or globally.

In this context, today’s monthly jobs data in the US and next week’s announcement of Obama regime’s stimulus plan will be crucial. But, any upside from these events could be short-lived, as things remain precarious. Corporate commentary continues to be grim. There are still concerns on western banks’ financial health. We expect the market to open higher mainly due to firm global trend. As always, there is no clarity as to whether the early gains would sustain.

If you are a long-term investor, stepping in at this point could be a good move. One should buy on the way down, rather than on the way back up. And, it is near-impossible to know exactly when the bottom is going to be hit. If you have the stomach and the money, then investing at these levels and holding out through the period of bounce back will translate into decent gains.

US stocks rallied on Thursday on optimism about the government's new version of the bank bailout plan and better-than-expected monthly sales from Wal-Mart Stores.

The Dow Jones Industrial Average added 106 points, or 1.3%, to end at 8,063.07. The Standard & Poor's 500 index added 13 points, or 1.6%, to 845.85. The Nasdaq Composite index added 31 points or 2%, to 1,546.24.

Year-to-date, the Dow is down 8.1%, the S&P 500 is down 6.4% and the Nasdaq composite is down 2%.

News Corp. shares could be active on Friday. After the close, the media behemoth reported a quarterly loss of $8.4 billion. Excluding charges, the company reported earnings of 12 cents per share, short of analysts' estimates.

Stocks slumped in the morning after a spike in jobless claims exacerbated worries about the duration of the recession. But the market erased losses and turned higher as investors focused on the few retailers that posted better-than-expected January sales.

The number of Americans filing new claims for unemployment last week rose by 35,000 to 626,000, a more than 26-year high. The figure was worse than what economists were expecting.

Another report showed that factory orders fell 3.9% in December, after dropping a revised 6.5% in the previous month. Economists thought orders would drop 3.5%.

The nation's chain stores reported another rough month of year-over-year sales as the recession continued to gouge consumer spending. Overall sales are expected to have fallen 2.3%, according to Thomson Reuters estimates, versus a gain of 0.4% a year ago.

However, retail sales have been weak for months and the latest batch provided few surprises. With a few exceptions, most retail stocks rose, even when the companies reported weak sales.

Clothing and luxury retailers were hit especially hard in the month. However, not all the news was bad. Discounters such as Wal-Mart Stores continued to benefit. Wal-Mart said sales rose 2.1% in January, topping its own forecasts.

Meanwhile, Gap reported a 20% drop in January sales, missing forecasts. But the company also raised its full-year profit forecast, sending shares higher.

The Obama administration is expected to announce on Monday how it will use the remaining $350bn of the Treasury's Troubled Asset Relief Program (TARP).

Among the reports surfacing are that the government could temporarily suspend or alter the "mark-to-market" accounting rule. This would enable the government to buy bad assets from banks at below-market rate, but not at fire sale prices.

Late on Wednesday, Cisco reported weaker sales and earnings that nonetheless beat estimates. However, the company also said that it expects a sales decline of 15% to 20% in the current quarter. Cisco shares jumped 3%.

Treasury prices rose, lowering the yield on the benchmark 10-year note to 2.89% from 2.94% on Wednesday. Treasury prices and yields move in opposite directions.

Lending rates were mixed. The 3-month Libor rate held steady at 1.24%, unchanged from on Wednesday. The overnight Libor rate rose to 0.32% from 0.25% on Wednesday. Libor is a bank lending rate.

In global trading, Asian and European markets both ended mixed. After four months of cuts, the European Central Bank held interest rates steady at 2%, as had been expected. The Bank of England cut its rate to an all-time low of 1% from 1.5% at the previous meeting.

US light crude oil for March delivery rose 85 cents to settle at $41.17 a barrel on the New York Mercantile Exchange. Gasoline prices rose seven-tenths of a cent to a national average of $1.907 a gallon.

The dollar rose versus the euro and yen. COMEX gold for April delivery rose $12 to settle at $914.20 an ounce.

Due before the market open on Friday, employers are expected to have cut 540,000 jobs from their payrolls in January after cutting 524,000 jobs in December. The unemployment rate, generated by a separate survey, is expected to have risen to 7.5% from 7.2% the previous month.

There is a likelihood that both numbers will be worse than expected, and that the previous two months' figures could be revised lower. Still, investors could take slightly worse numbers in stride - provided payroll cuts are under 600,000 and the unemployment rate is under 8%.

Stocks in Europe closed with tepid losses, as bearish results out of Swiss Re, Zurich Financial and Unilever were checked by a rate cut from the Bank of England and a suggestion of one next month by the European Central Bank.

The pan-European Dow Jones Stoxx 600 index closed 0.1% lower to 194.50 in a see-saw session.

Germany's DAX 30 index closed higher, rising 0.4% to 4,510.49, while the French CAC-40 index slipped 0.1% to 3,066.29 and the UK's FTSE 100 index finished broadly flat at 4,228.93.

Markets ended with deep losses on Thursday. After a flat start, key indices constantly slipped led by selling pressure in auto, IT and capital goods stocks. Although bucking the negative trend were the shipping, metal and select Pharma stocks. Finally, the Sensex slipped 110 points to close at 9,090 and the Nifty fell 23 points to close at 2,780.

Among the 30-components of Sensex, 22 stocks ended in the red and 8 stocks ended in the green. Among the major laggards in the Sensex were Reliance Industries, HDFC, Infosys, L&T and Hindustan Unilever. On the other hand, major gainers were Grasim, ICICI Bank and ITC.

Shares of Tata Metaliks ended lower by 3% to Rs62. The company yesterday announced that it secured prospecting license for iron ore mines in Maharashtra The scrip touched an intra-day high of Rs67 and a low of Rs62 and recorded volumes of over 9,000 shares on BSE.

Shares of ONGC ended flat at Rs665. Reports stated that the company might revive its 15mn ton Rajasthan refinery plan. The scrip touched an intra-day high of Rs680 and a low of Rs655 and recorded volumes of over 3,00,000 shares on BSE.

Shares of PTC India slipped by 2% to Rs61. According to reports, the company announced that it plans to mobilize Rs12bn through QIP. The scrip touched an intra-day high of Rs63 and a low of Rs58 and recorded volumes of over 1,00,000 shares on BSE.

Shares of Ashapura Minechem pared all its gains and ended lower by 3% to close Rs18.7. The stock had earlier surged after reports stated that the company was seeking partner for Maharashtra project . The scrip touched an intra-day high of Rs20 and a low of Rs18 and recorded volumes of over 1,00,000 shares on BSE.

Shares of Maytas Infra continued to slide further; the stock was yet again locked at 5% lower circuit to Rs60.1. There were reports stating that the company plans to set up task force to provide managerial assistance to the company. The scrip touched an intra-day high of Rs60.1 and a low of Rs60.1.

Shipping stocks were the talk of the town on Thursday after the Baltic index of prices for shipping commodities rose the most in over 2 decades.

The Baltic Dry Index rose 15% in London indicating strengthening demand for iron ore. The Baltic Index plunged 92% last year as the global economic recession damped demand for transporting commodities.

Shares of MLL rallied by over 23% to Rs31, ABG Shipyard rose over 3.5% to Rs64 and SCI added 1% to Rs83.

Shares of Tata Motors slipped by 3% to Rs131 after reports stated that the company has built up an amount overdue of more than Rs12bn with parts manufacturers and other suppliers over the past few months.

The company has reportedly stopped making payments and slashed orders for parts on account of decline in sales. The parts manufacturer is owed Rs800mn by Tata Motors.

The scrip touched an intra-day high of Rs133 and a low of Rs128 and recorded volumes of over 6,00,000 shares on BSE.

The declining trend may continue as bears would look to breach the psychological 9,000 mark. Although, with no domestic triggers to look forward, global cues would dictate the trend at least in the opening trades.

Bullion metals continue to glitter

Precious metals gain most in a week

After dropping in the previous two sessions, bullion metal prices went up for second straight day on Thursday, 05 February, 2009. Weak economic data increased the appeal of the precious metal as a safe haven against alternatives.

Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa. But silver prices dropped.

On Thursday, Comex Gold for April delivery rose $12 (1.3%) to close at $913.6 an ounce on the New York Mercantile Exchange. Price had gone up by 1.1% yesterday. Last week, gold prices ended higher by 3.5%. For January, 2009, gold had gained 3.9%. Year to date, gold prices are higher by 3.4%.

On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped significantly (12%) since then.

On Thursday, Comex silver futures for March delivery rose 28 cents (2.2%) to end at $12.75 an ounce. Year to date, silver has climbed 13% this year. For 2008, silver had lost 24%.

Among major economic reports of the day, there were quite a few. The Commerce Department reported today that new orders for manufactured goods in US fell 3.9% in December for the fifth consecutive month of declines. It was a little more thane expected. In November, orders fell 6.5%, revised lower from a previously estimated drop of 4.6%.

The Labor Department reported today that the number of new claims for state unemployment benefits surged to their highest level since 1982. Initial jobless claims rose 35,000 to a seasonally adjusted 626,000 in the week ended 31 January, 2009. This put the number at the highest level in 26 years. Meanwhile, the four-week average of new claims rose by 39,000 to 582,250. Continuing jobless claims rose by 20,000 in the week ended 24 January, 2009 to a seasonally adjusted 4.79 million, the most since the government's records began in 1967.

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

Last year, the weakening dollar and higher global demand for raw materials had led to records for commodities including gold. Gold reached a record in March 2008 as a U.S. housing slump and credit crisis spurred the Federal Reserve to slash borrowing costs. In the last move, the Federal Reserve has cuts its target bank lending rate to 0.25% from 5.25% in September, 2007. The Fed did it in nine steps.

Prior to 2008, gold had witnessed the greatest annual gain in twenty eight years by gaining $200/ounce (31%) in FY 2007 as lower interest rates had sent the dollar tumbling, and crude-oil prices rose to a record. Silver had climbed 16% in FY 2007. In 2006, silver had jumped 46% while gold gained 23%.

At the MCX, gold prices for April delivery closed higher by Rs 148 (1.05%) at Rs 14,202 per 10 grams. Prices rose to a high of Rs 14,388 per 10 grams and fell to a low of Rs 14,082 per 10 grams during the day's trading.

At the MCX, silver prices for March delivery closed Rs 378 (1.9%) higher at Rs 20,118/Kg. Prices opened at Rs 19,739/kg and went to a high of Rs 20,290/Kg during the day's trading.

Crude pares early losses

Rally at Wall Street also pushes crude higher

Oil prices gave up earlier losses and ended higher for the day on Thursday, 05 February, 2009 as US stocks rallied today and OPEC hinted at further production cuts. Prices initially had dropped as yesterday's weekly inventory report by the Energy department showed that crude inventories rose more than expected in the last week. Gasoline prices too jumped considerably higher today.

On Thursday, crude-oil futures for light sweet crude for March delivery closed at $41.17/barrel (higher by $0.85 or 2.1%) on the New York Mercantile Exchange. Earlier during the day, it touched a low of $39.46. Last week, crude prices ended lower by 10%. In January, 2009, crude shed 14%.

Prices reached a high of $147 on 11 July but have dropped almost 70% since then. Year to date, in 2009, crude prices are lower by 7.5%. On a yearly basis, crude prices are lower by 53%.

US stocks pared early losses and were ended in the green today. Couple of better than earning reports helped stocks gain momentum which had otherwise had a slow start due to a weaker than expected guidance from Cisco Systems after yesterday's close. Economic reports dominated the first half today and all were almost in line with expectations pointing out towards an economy in recession. Financial and technology sectors contributed to the turnaround.

The EIA had reported yesterday that crude inventories rose for a sixth straight week to 346.1 million barrels last week, the highest level since July 2007. Meanwhile, U.S. refineries operated at 83.5% of their operable capacity last week, up from the previous week's 82.5%.

The EIA also reported gasoline inventories rose by 300,000 barrels while distillate fuel, which includes diesel and heating oil, fell by 1.4 million barrels. The report had also said that demand for fuels during the past four weeks averaged 19.5 million barrels a day, up 0.6% from the average a week before

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

OPEC has been trying to cut production consistently in order to step up prices from their current low levels.

Against this background, gasoline futures for March delivery climbed 5.64 cents (4.6%) to $1.2748 a gallon in New York. Heating oil increased 4.02 cents (3%) to end the session at $1.3672 a gallon.

Natural-gas futures also rose today after the Energy Information Administration reported U.S. inventories fell by 195 billion cubic feet in the week ended 30 January. March natural gas futures added 4 cents to end at $4.64 per million British thermal units. The EIA reported natural gas inventories fell by 195 billion cubic feet to 2,179 billion cubic feet.

At the MCX, crude oil for February delivery closed at Rs 1,995/barrel, lower by Rs 18 (0.9%) against previous day's close. Natural gas for February delivery closed at Rs 229.8/mmbtu, higher by Rs 2.2/mmbtu (0.96%).