Asian markets fall on Friday

Hang Seng led regional slump while Sensex, Sydney follows

Stock markets in Asian region finished Friday, 19 February 2010 with a fall on, as shares tied to the economic cycle declined and gold prices fell amid rising expectations that a hike in the Fed's main policy rate could follow sooner than many had anticipated. The decision was seen as an initial step toward rolling back aid extended to help the economy emerge from the worst crisis in decades. Higher borrowing costs usually put a drag on equity markets by drying out liquidity.

On Wall Street, the Dow finished near the highs of Thursday's session, after data showing strong regional business activity but a still-weak labor market failed to clarify the hazy economic recovery outlook. The Dow Jones Industrial Average went higher by 84 points, or 0.8%, at 10,393. The S&P 500 added 7 points, or 0.7%, at 1,107, and the Nasdaq went ahead by 15 points, or 0.7%, to 2,242.

But in a surprise move after the closing bell, the Federal Reserve announced it will hike its discount rate to 0.75% from 0.5% effective Friday. The move, which the Fed characterized as normalization, will narrow the spread between the fed funds rate and the discount rate to 0.5%.

In the commodity market, crude oil fell for the first day in four after the Federal Reserve raised its discount rate, pushing the dollar higher and damping investor demand for commodities.

Crude oil for March delivery fell as much as $1.29, or 1.5%, to $77.85 a barrel in electronic trading on the New York Mercantile Exchange. It was at $77.90 at 4:16 p.m. Singapore time. Yesterday, the contract rose $1.73 to $79.06, the highest settlement price since 14 January 2010.

Brent crude for April delivery fell as much as $1.25, or 1.6 percent, to $76.53 a barrel on the London-based ICE Futures Europe exchange. It was at $76.66 at 4:20 p.m. Singapore time. Yesterday, the contract rose $1.51, or 2 percent, to $77.78, the highest settlement since 14 January 2010.

Gold, little changed in London today, may fall after the dollar strengthened on an increase in the Federal Reserve’s discount rate, curbing the metal’s appeal as an alternative investment.

Gold for immediate delivery fell as much as $9.29, or 0.8%, to $1,099.41 an ounce and was at $1,107.30 at 10:14 a.m. London time. The metal is up 1.3% this week. Bullion for April delivery was 1% lower at $1,107.50 on the New York Mercantile Exchange’s Comex unit.

In the currency market, the dollar headed higher in Asian trading Friday, after the U.S. Federal Reserve delivered a surprise hike in its discount rate late Thursday after the close of U.S. markets.

The Japanese yen was softened against greenback on Thursday. The Japan’s currency yen was quoted 91.65 against the greenback from 91.27 yen.

The Hong Kong dollar was trading at HK$ 7.7676 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 dropped today as the first step of the US central bank unwinding its stimulus to combat the economic downturn gave a boost to the American currency.

The Australian dollar was recently trading at $US0.8909, down 0.6% from Thursday's close of US$0.8957. The Australian dollar opened higher with traders rushing in to buy the higher yielding currency following a surge in equity and commodity markets. In early trades, the Aussie was quoting at US$0.9025-US$0.9027, up 0.76% from Thursday's close of US$0.8957.

In Wellington trades, the New Zealand dollar fell more than a cent today after the US Federal Reserve decided to lift its discount rate, a rate at which it lends emergency funds at, by 0.25% to 0.75%. The move after US markets closed caught traders in the early Asian time zone by surprise and made for a volatile session in New Zealand. The NZ dollar was at US69.61c at 5pm from US70.43c at 8am and US70.05c at 5pm yesterday.

The South Korean won finished at 1,160.40 won to the greenback, down 9.90 won from Thursday, as the Fed's rate hike shrank investor appetite for riskier currencies

In equities, Asian shares mostly declined Friday as the U.S. Federal Reserve's decision to raise its discount rate pushed the dollar higher but hurt investor sentiment and commodity prices, with Hong Kong stocks falling the most.

In Japan, the stock market snapped two-day gains and ended in negative territory on Friday, as traders reacted negatively to the surprise hike in discount rate by the US Federal Reserve, signaling the beginning of the end of stimulus measures to the economy. Concerns that the Bank of Japan might follow suit and more rate hikes slowing down the recovery prospects haunted investors, despite weaker local currency. Almost all the stocks ended in negative territory, with banks and realty stocks leading the losses.

The benchmark Nikkei 225 Index lost 212.11 points, or 2.05% to 10,124 while the broader Topix index of all First Section issues lost 15.65 points, or 1.73%, to 889.

On the economic front, the Bank of Japan, in its Monthly Report of Recent Economic and Financial Developments, maintained its economic assessment and said that conditions are likely to continue improving, although the pace of improvement is likely to remain moderate for the time being. The central bank noted, Japan's economy is picking up mainly due to various policy measures taken at home and abroad, although there is not yet sufficient momentum to support a self-sustaining recovery in domestic private demand.

In a separate report, the Ministry of Trade, Economy and Industry revealed that all-industry activity in the country unexpectedly dropped 0.3% in December compared to the previous month. Economists expected the all-industry activity to rise 0.1% for the month. On annualized basis, all industrial activity declined 1.6% during December over the same period last year, the report noted.

In Hong Kong, stock market fell further on Friday, after the US Federal Reserve increased the interest it charges banks for emergency loans, prompting fears of faster-than-expected tightening. The bout of profit selling got intensified due to the recent run up in the local equities. The Hang seng had ended at a two week highs yesterday and the US Fed’ discount rate hike seemed to prompted plenty of selling ahead of the weekend for the Hong Kong stocks.

At the closing bell, the Hang Seng Index stumbled 528.13 points, or 2.59%, to 19894.02. Meanwhile the Hang Seng China Enterprise, which tracks the overall performance of 43 mainland Chinese state-owned enterprises on the Hong Kong Stock Exchange, shrank 337.84 points, or 2.91%, to 11263.83.

In Australia, stock markets in Australia extended losses, finishing Friday on lower side, as investors turned cautious after the US Federal Reserve’s decision to raise the discount rate spurring concern the global recovery will slow as stimulus programs are unwound jolting equities and commodities. The benchmark S&P/ASX200 index was down 19.66 points, or 0.421%, at 4635.1. The broader All Ordinaries index was off 17.6 points, or 0.4%, to 4656.3.

The Reserve Bank of Australia governor Glenn Stevensan says the Australian economy is well positioned to prosper due to its proximity to a strong Asian region, as it sets course on a new upswing in growth. Stevensan also said further adjustments to monetary policy will be needed to ensure inflation remains consistent with the RBA’s 2% - 3% target band. He further added that homeowners should brace for further interest rate rises this year, although the degree of official changes will be subject to how retail banks react.

In New Zealand, equities inched up into the positive region on the last trading day of the week after dipping down yesterday. The NZX 50 ascended 0.17% or 5.32 points to 3107.08. Meanwhile, the NZX 15 inched up 0.27% or 14.89 points to close at 5600.55.

In South Korea, stocks closed lower as the overnight U.S. hike of its emergency-loan rate rang alarms over an end to loose credit. The benchmark Korea Composite Stock Price Index (KOSPI) dropped 27.29 points to end at 1,593.9.

In Philippines, the stock market closed lower, despite the advance in advance in US stocks. Cautiousness and risk aversion ruled the market as market players were seen selling the key heavy weight stocks against their continued concerns over the country’s budget deficit and also after the U.S. Federal Reserve raised the discount rate. At the final bell, the benchmark index PSEi declined 0.71% or 21.41 points to 2,978.53, while the All Shares index tumbled 0.67% or 12.83 points to 1,890.57.

In India, the key benchmark indices dropped in choppy trade as the US Federal Reserve's decision to raise its discount rate hurt investor sentiment. Realty, metal, auto, IT and banking stocks fell. Index heavyweight Reliance Industries edged lower. Capital goods stocks cut early losses. The market breadth was weak. A bout of volatility was witnessed in the second half of the trading session. The BSE 30-share Sensex closed down 136.21 points or 0.83% to 16,191.63. The S&P CNX Nifty was down 42.85 points or 0.88% to 4844.90.

Elsewhere, Malaysia’s Kula Lumpur Composite index finished slightly lower at 1257.67 while stock markets in Indonesia’s Jakarta Composite index gave up by 5.66 points ending the day lower at 2554.38. In Singapore, the blue chip Straits Times Index was at 2,757.14, slid 12.05 points or 0.44%.

In other regional market, European stock markets were showing red ink on Friday, as markets got a first chance to react to a surprise rate hike by the U.S. Federal Reserve, with banks and financial services stocks showing the strain and resource stocks sharply lower, not helped by weak results from Anglo American. On a regional level in Europe, the FTSE 100 was down 0.34% or 18.30 points to 5,307 and the German DAX fell 0.56% or 31.73 points to 5,649. The French CAC-40 fell 0.73% or 27.45 points to 3,720.

Man Infraconstruction IPO subscribed 6.87 times

Gets bids for 3.19 crore shares as compared with 56.25 lakh shares on offer

Man Infraconstruction initial public offer (IPO) was subscribed 6.87 times, NSE data showed. The IPO got bids for 3.19 crore shares as compared with 56.25 lakh shares on offer

The company's IPO comprises of 56.25 lakh shares which includes 9.72 lakh shares reserved for anchor investors. The price band is Rs 243 to Rs 252 per equity share. The IPO remains open for bidding between 18 and 22 February 2010.

The company has already received commitment of Rs 24.50 crore from anchor investors, who subscribed for 9.72 lakh equity shares at Rs 252 per equity share, at higher end of the price band of Rs 243-252. The anchor investors include Nomura Asset Management Singapore, Reliance Mutual Fund, Legg Mason Asian Enterprise Trust, Monsoon India Inflection Fund, Axis Mutual Fund and India Diversified (Mauritius).

Man Infraconstruction would raise Rs 142 crore at the upper-end of the price band and Rs 137 crore at the lower band. The company plans to utilise the IPO proceeds to purchase capital equipment and for general corporate purposes.

Man Infraconstruction provides construction services for port infrastructure as also residential, commercial and road projects.

The company's consolidated revenues surged 151.77% to Rs 594.2 crore and net profit rose 156.25% to Rs 82 crore in the year ended March 2009 over the year ended March 2008.

Market extends losses for the second day in a row; breadth weak

The key benchmark indices dropped in choppy trade, extending losses for the second straight day as the US Federal Reserve's decision to raise its discount rate hurt investor sentiment. The BSE 30-share Sensex fell 136.21 points or 0.83%, up close to 110 points from the day's low and off close to 120 points from the day's high. Global stocks and US index futures fell after the US Federal Reserve raised its discount rate for the first time since the financial crisis. The latest Fed move stoked expectations that a hike in the Fed's main policy rate could follow sooner than many had anticipated.

Realty, metal, auto, IT and banking stocks fell. Index heavyweight Reliance Industries, too, edged lower. The market breadth was weak.

A bout of volatility was witnessed in the second half of the trading session. The market staged a strong intraday rebound in mid-afternoon trade after a sharp slide in afternoon trade. The BSE Sensex recouped nearly all the intraday losses in late trade. However, the intraday rebound proved short-lived. The market once again lost ground towards the close of the trading session.

India VIX, a volatility index based on the S&P CNX Nifty index option prices, jumped 7.19% to 31.90. India VIX is a measure of the market's expectation of volatility over the next 30 calendar days. VIX rises when traders buy options as insurance against sharp market movements, especially a fall.

Investors put their money to work more selectively in the week ended 17 February 2010, choosing mostly developed equity markets and investment grade bonds, while avoiding Chinese stocks and high-yield bonds, EPFR Global data showed on Friday. China-focused equity funds had net redemptions for the sixth time in the last seven weeks as fears of more central bank policy tightening spooked investors, while Latin American equity funds posted outflows for the fourth consecutive week. Russia and Indian equity funds had relatively small inflows for the week ended 17 February 2010, while Brazil had a second straight week of outflows.

C. Rangarajan, the prime minister's economic adviser, today said that India's economy is likely to grow at over 7.2% in the current fiscal year ending March 2010. The prime minister's economic advisory council said on Friday that inflation was a down-side risk to its projected growth rate of at least 8.2% in 2010/11, and any policy action would have to factor in the "significant" danger of high food inflation spreading into broader prices.

Although the large deficits this year and the last year did have a counter-cyclical impact, it is necessary to initiate measures towards fiscal consolidation in the forthcoming budget, the council said in its review of the financial year 2009/10. The fiscal imbalance is a matter of concern and the process of consolidation must begin in the next financial year itself, the prime minister's economic advisory council said on Friday.

The wholesale price inflation is seen at around 8.5% by the end of March, Rangarajan said. He also said that the government's market borrowing in the next fiscal year ending March 2011 is likely to be around or slightly lower than Rs 4,51,000 crore ($97 billion) in the current fiscal year

Coming back to stocks, a foreign brokerage predicts that Indian equity and equity-linked offerings may jump by as much as 33% this year as companies and the government tap a growing pool of domestic capital as the economy recovers. Indian companies may raise $25 billion to $30 billion in share sales in 2010, up from $22 billion last year.

European shares fell on Friday, snapping a four-day winning streak, after the US Federal Reserve raised an emergency lending rate for the first time since the financial crisis, with banks the worst performers. The key benchmark indices in Frnace, Germnay and UK fell by between 0.21% to 0.47%.

Asian stocks fell after the US Federal Reserve raised its discount rate in a fresh sign the Fed thinks financial markets are gradually returning to normal. The key benchmark indices in Hong Kong, Indonesia, Japan, Singapore and South Korea were down by between 0.22% to 2.59%.

The US Federal Reserve raised the discount rate from 0.5% to 0.75% effective 19 February 2010 and said the move will encourage financial institutions to rely more on money markets, rather than the central bank, for short-term loans. The announcement was made after trading hours in the US. It was the first increase in the discount rate in more than three years, and the move widens the discount rate spread over the top range for the federal funds rate to 0.5%. The central bank also cited last month's statement, which said economic conditions are likely to warrant exceptionally low levels of the federal funds rate, or the target rate for overnight loans between banks, for an extended period.

The move marks another step by the Fed in a gradual retreat from its unprecedented actions to halt the deepest financial crisis since the Great Depression. The Fed has provided hundreds of billions of dollars in credit to banks, bond dealers, commercial paper borrowers and troubled financial institutions. St. Louis Federal Reserve President James Bullard said the market's belief in a high probability of rate hikes this year is "overblown."

Meanwhile, Singapore's government said the economy will expand faster than initially expected this year, adding to evidence of a sustained regional recovery that has prompted policy makers to end some stimulus measures. Gross domestic product will increase 4.5% to 6.5% in 2010 after shrinking 2 % last year, the trade ministry said in a statement today

US index futures cut initial losses. Trading in US index futures indicted that the Dow could fall 57 points at the opening bell on Friday, 19 February 2010. Dow futures were down nearly 100 points at one point of time during the day.

US markets ended higher for a third straight day on Thursday, 18 February 2010 as an encouraging manufacturing report helped fuel investor optimism about the recovery. The Philadelphia branch of the Fed said its gauge of regional manufacturing rose to 17.6 in February from 15.2 in January. Meanwhile initial jobless claims unexpectedly rose by 31,000 last week. The January PPI also showed sharper-than-expected rise in prices. The Dow gained 83.66 points, or 0.8%, to 10,392.90. The broader Standard & Poor's 500 index added 7.24 points, or 0.7%, to 1,106.75. The Nasdaq Composite Index rose 15.42 points, or 0.7%, to 2,241.71.

There is no one-size-fits-all solution to deal with the potentially destabilizing rapid flow of money into emerging markets economies, according to a new study published by the International Monetary Fund on Friday. In a staff paper that looks at capital controls as a way to restrict a sudden surge in money flowing into a country, the IMF said they could be a legitimate way to deal with the problem in some cases but preferably should be part of a package of policy measures.

Closer home, food inflation picked up for the fourth straight week in early February, heightening worries it was driving headline inflation past official forecasts and increasing the chance of the Reserve Bank of India (RBI) pushing up rates.

Food prices rose 17.97% in the 12 months to 6 February 2010 after an annual rise of 17.94% in the previous week, data released on Thursday showed. The fuel price index rose an annual 9.89% in the same week, down from a rise of 10.4% on year the previous week. Rising prices are a huge headache for the Congress-led government, particularly high food prices that may overshadow government efforts to cut spending and the fiscal deficit in a 26 February 2010 budget. Inflation in manufacturing picked up to 6.55% from about 5% in December, a sign that inflationary pressures were spreading to other sectors of the economy.

Climbing food and fuel costs along with a pick up in manufacturing prices are expected to push headline wholesale price inflation (WPI) from 8.56% in January to 10% by March, according to some analysts and India's chief statistician Pronab Sen. The RBI is widely expected to raise borrowing rates after it surprised markets last month with a bigger-than-expected rise in banks' cash reserve requirements and given that inflation has already topped its revised end-March forecast of 8.5 %.

On Wednesday, Farm Minister Sharad Pawar said food prices have started to ease and will dip further next month, while Finance Minister Pranab Mukherjee said higher food prices continue to be a worry.

The next major trigger for the stock market is the Union Budget 2010-2011 on 26 February 2010. Among the key issues, analysts and economists expect the Finance Minister to provide a road map for the introduction of the key direct and indirect tax reforms viz. the direct tax code (DTC) and the Goods & Services Tax (GST) in the Budget. The GST will enable the Indian corporate sector to get much-needed relief from a multiplicity of state and Central taxes. However, several critical issues need to be resolved before it can be put in place. The Finance Minister must utilize this opportunity to effect a smooth transition to this new system.

The hope of direct tax reform has risen with the release of the draft Direct Tax Code by the government in calendar 2009. The Direct Taxes Code is supposed to replace the Income Tax Act by consolidating and amending income tax provisions for all categories of people and institutions. The DTC proposes doing away with tax exemptions and bringing under the tax purview a number of entities including trusts that pay no tax at the moment. The thrust of the new code is to promote efficiency and equity by eliminating distortions in the tax structure, introducing moderate levels of taxation and expanding the tax base.

Meanwhile, the government may increase excise duties as a first step towards a gradual winding down of fiscal stimulus measures. It may also raise the service tax rate to 12% from 10%. It may be recalled that the government had slashed the Central Value Added Tax (Cenvat) rate for excise duty from 14% to 8% in two rounds starting in December 2008. It had also cut service tax by 2 percentage points. These reductions were effected in order to provide a stimulus to domestic industry. Since the overall prospects for growth are much brighter today, the finance minister may withdraw a part of the stimulus in order to boost tax revenue.

The Finance Minster may project a lower fiscal deficit for 2010-11 based on higher revenue projections due to economic rebound. It remains to be seen if there are structural reforms to reduce the subsidy burden such as decontrol of petrol and diesel prices as recommended by the Kirit Parikh committee recently.

It also remains to be seen if there is any progress on financial sector reforms. The pending financial sector reforms include raising the foreign direct investment (FDI) cap in private sector insurance companies from 26% to 49% - a Bill for which is pending in Parliament.

As far as government expenditure is concerned, the thrust areas could be agriculture, water resources, power, roads & other infrastructure projects and social sector schemes.

Meanwhile, the follow-on public offer of Rural Electrification Corporation (REC) received lackluster response from investors. The FPO was subscribed 0.2 times by 16:00 IST on the first day of bidding for the issue today, 19 February 2010, NSE data showed. The government has set the floor price of the follow-on public offer of Rural Electrification Corporation (REC) at Rs 203 per share. The issue, which will be open between 19-23 February 2010, will see the sale of 12.87 crore equity shares and an offer for sale of 4.29 crore government owned shares. Like in the case of NTPC, the issue will take the French auction route, but will give flexibility to bidders to scale down their bid quote. REC will reserve 50% the shares on offer for institutional bidders, while retail investors will get 35%.

The BSE 30-share Sensex fell 136.21 points or 0.83% to 16,191.63. The barometer index fell 25.90 points at the day's high of 16,301.94 in late trade. The Sensex declined 253.23 points at the day's low of 16,074.58 in afternoon trade.

The S&P CNX Nifty fell 42.85 points or 0.88% to 4844.90. Nifty February 2010 futures were at 4,848, at a premium of 3.10 points as compared to the spot closing of 4,844.90. Turnover in NSE's futures & options (F&O) segment surged to Rs 92,723.13 crore from Rs 64,858.39 crore on Thursday, 18 February 2010.

The market breadth, indicating the overall health of the market was weak. On BSE, 786 shares advanced as compared with 2010 that declined. A total of 70 shares remained unchanged.

Among the 30-member Sensex pack, 26 shares declined while only 2 of them managed gains.

The BSE Mid-Cap index fell 1.41% and the BSE Small-Cap index fell 1.57%. Both the indices underperformed the Sensex.

The BSE Healthcare index (up 0.07%), BSE FMCG index (down 0.17%), BSE IT index (down 0.35%), BSE Capital Goods index (down 0.57%), BSE Oil & Gas index (down 0.73%), BSE Bankex (down 0.79%), BSE PSU index (down 0.82%), outperformed the Sensex.

The BSE Realty index (down 3.37%), BSE Metal index (down 2.49%), BSE Consumer Durables index (down 1.44%), BSE Power index (down 1.16%), BSE Auto index (down 0.99%), underperformed the Sensex.

BSE clocked turnover of Rs 3833 crore, lower than Rs 3998.03 crore on Thursday, 18 February 2010.

Index heavyweight Reliance Industries (RIL) fell 1.32%, extending Thursday's near 4% slide. The government has reportedly demanded another $2.7 million from RIL towards royalty and profit petroleum payments on gas produced from the Krishna-Godavari (KG) D6 for the six-month period from April-September 2009, arguing that the company did not take into account the marketing margin it levies while calculating the dues.

Meanwhile, RIL may reportedly raise its offer for LyondellBasell that will include cash and stock options for shareholders and creditors. It had offered a deal that would value the bankrupt petrochemicals maker at about $13.5 billion, but earlier this week the target firm settled a dispute with creditors, paving the way for an exit from bankruptcy.

Rate sensitive auto fell as government is widely expected to raise excise duties on automobiles in Union Budget 2010-2011 next week. India's biggest tractor maker by sales Mahindra & Mahindra (M&M) fell 1.32% falling for the second straight day.

India's largest commercial vehicle maker by sales Tata Motors fell 1.68% falling for the second straight day. Tata Motors on Tuesday said it will hike commercial vehicle prices by up to 2% on account of new emission norms. The company also announced plans of bidding for a Rs 350-crore defense contract to supply light bullet-proof vehicles.

The company said on Monday its global vehicle sales for January nearly doubled to 85,714 units from a year earlier. The sales include UK-based luxury brands Jaguar and Land Rover, whose sales nearly trebled in the month to 16,269 units from a year ago, the company said in a statement. It had earlier said domestic sales, including trucks, buses and cars, jumped an annual 77 % in January.

But, India's largest car maker by sales Maruti Suzuki India reversed early losses and rose 0.63% after a senior official of the company told the media that the firm will add 3,000 employees in the next three years. Maruti Suzuki's head of human resources, S.Y.Siddiqui was quoted by the media as saying that the company is also investing Rs 200 crore to add showrooms and stockyards.

A hike in excise duty will raise the cost of owning new vehicles. Coupled with the recent price hikes across segments, and the price increases likely in April 2010 on account of the change in emission norms, these potential price increases on excise duty increase may dampen demand.

On the flip side, bus makers Ashok Leyland and Tata Motors may benefit in case of further allocation of government expenditure towards the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) in the Union Budget 2010-11. Bus demand has been boosted this year by an order for 15,000 buses under JNNURM

Metal stocks declined after London Metal Exchange copper fell more than 1% on Friday, under pressure from a firmer dollar and a surprise hike in the US Federal Reserve discount rate.

Hindalco Industries, Steel Authority of India, Sterlite Industries , Hindustan Zinc , JSW Steel fell by between 1.55% to 3.36%.

Tata Steel, the world's number 8 steelmaker by capacity fell 2.56%, declining for the second straight day. With just a day away from the scheduled mothballing of the Teesside Cast Products plant (owned by Tata Steel-controlled Corus) in north-east England, the area mayor, Ray Mallon, has reportedly confirmed that a consortium may be interested in rescuing the plant. In a note to the media, the mayor said he did not want to raise false hopes but he regarded the consortium as credible and called for them to be given every assistance by Tata and the government.

Tata Steel on Tuesday posted its first consolidated quarterly profit in four quarters and said reviving global demand would further boost earnings in the three months to March 2010. After trading hours on Tuesday, Tata Steel said its consolidated net profit for the December 2009 quarter, which includes its UK unit Corus, fell 42%, although higher prices and increased volumes led to a rise in its operating profit margins.

Tata Steel said its consolidated net profit in the October-December period fell to Rs 473 crore from Rs 814 crore last year. Revenue fell 20% to Rs 26,069 crore. The stock rose 2.23% on Tuesday ahead of the result.

Rate sensitive realty shares fell on expectations of rate hike by the central bank to tame inflation. Indiabulls Real Estate, Sobha Developers, Omaxe, Akruti City, Orbit Corporation, Ansal Properties and Infrastructure and DLF fell by between 0.38% to 6.21%.

Unitech fell 1.41% extending losses for the straight third day. Recently Telenor bought a further 7.15% stake in its telecom joint venture Unitech Wireless by pumping in additional Rs 2022 crore of fresh equity.

Unitech and DLF would be the chief beneficiaries if the government providers thrust to affordable housing projects in the Union Budget 2010-11 next week.

Rate sensitive banking shares fell on talks the central bank will hike policy rates to tame rising inflation. India's largest private sector bank by net profit ICICI Bank fell 1.05%, declining for the second straight day. Its ADR rose 0.99% on Thursday. India's largest bank by net profit and branch network State Bank of India fell 1.79%, declining for the second straight day. India's second largest private sector bank by net profit HDFC Bank rose 0.94% to Rs 1699.55. The sock came off the day's low of Rs 1660. Its ADR rose 2.47% on Thursday.

The central bank said last week it will introduce from 1 April 2010 a new base rate to price credit more transparently, replacing the existing benchmark prime lending rate (BPLR).The Reserve Bank of India said the base rate will be the new reference rate for determining lending rates. According to draft guidelines, the RBI has proposed that the actual lending rate charged to borrowers would be the base rate plus borrower-specific charges including product-specific operating cost, credit-risk premium and tenure premium said.

India's largest engineering and construction firm by sales Larsen & Toubro fell 0.06% to Rs 1475.30. The stock came off the day's low of Rs 1445.90. Larsen & Toubro reportedly plans wind power projects in Gujarat, Maharashtra and Tamil Nadu for captive use. It is also investing about Rs 8000 crore to generate 700-800 megawatts (MW) of hydro power from projects in Himachal Pradesh, Uttarakhand and Arunachal Pradesh. The company said last week it won orders worth Rs 582 crore.

India's largest power equipment maker by sale Bharat Heavy Electricals (Bhel) fell 0.83% to Rs 2366.30. The company will reportedly sign a pact with UK-based Sheffield Forgemasters next week to upgrade manufacturing of castings and forgings.

The government may levy customs duty on import of equipment for power projects in Union Budget 2010-11, which may give a fillip to domestic manufacturers of boilers, turbines and generators. The levy of import duty on equipment for power projects will benefit companies such as Bhel and L&T.

Software majors fell as Federal Reserve's discount rate hike could crimp economic recovery. US is the biggest export market for Indian IT firms. India's third largest IT exporter by sales Wipro fell 0.28%. Its ADR rose 0.52% on Thursday. India's second largest IT exporter by sales TCS fell 0.94%. India's largest IT exporter by sales Infosys Technologies fell 0.2%. Its ADR fell 0.78% on Thursday.

Tata Consultancy Services (TCS) and Wipro are reportedly among the 37 global organisations, including IBM and HP, vying for the UK government's cloud computing project. Out of the total project, the cloud component alone is valued at Rs 2,200 crore.

The IT sector is looking for an extension of the tax holiday for the Software Technology Park of India (STPI) scheme. The government provides tax benefits under Section 10 (A) of Income Tax Act for units set up in the Software Technology Parks of India (STPIs), which is due to expire on 31 March 2011 (FY 2011). If the scheme is extended by one more year till 31 March 2012 (FY 2012), it will boost projected FY 2012 earnings of IT firms

FMCG stocks fell as excise duty on fast moving consumer goods (FMCG) is expected to go up by 200-300 basis points in the 2010-11 Budget. ITC, Hindustan Unilever, Nestle India, Marico fell by between 0.17% to 1.48%.

Higher excise duty may result in margin pressure on some companies. Companies may resort to price hikes with a lag of one or two quarters. Firms such as Dabur India, Godrej Consumer Products and Marico will be relatively less impacted as they do have production units in excise-exempt locations.

India's largest power utility firm by sales NTPC fell 1.61%. The company's follow on public offer managed to scrape through early this month with the issue getting subscribed 1.2 times. The issue, through which the government is divesting 5% of its stake, at a floor price of Rs 201 a share, opened on 3 February 2010 and closed on 5 February 2010. At the floor price, the follow-on-public offer (FPO) is valued at Rs 8,286 crore.

Among other power stocks, Tata Power Company, Reliance Infrastructure, Reliance Power fell by between 0.85% to 2.54%.

India's largest drug maker by sales Ranbaxy Laboratories was flat after gaining for last three trading sessions. Daiichi Sankyo recently said it will launch new innovative products in Mexico through the marketing division of Ranbaxy's Mexican subsidiary Ranbaxy Mexico.

Among other healthcare stocks. Cipla, Sun Pharmaceutical Industires, Lupin, Divi's Laboratories, Pfizer fell by between 0.03% to 1.88%.

India's largest mobile services operator by sales Bharti Airtel fell 1.01% on reports company may sell shares to Singapore Telecommunications to partly fund its purchase of Zain's African assets and avoid taking on too much debt. A share sale to SingTel, which owns about 30% in the Indian mobile services firm, could help Chairman Sunil Mittal avoid an embarrassment if investors shun a rights issue, reports said. Bharti Airtel is in exclusive talks to buy most of the African assets of Kuwaiti telecoms firm Zain for $9 billion. The stock was battered recently on the concerns of an overvalued deal.

Shares of Thangamayil Jewellery was settled at Rs 71.10, a 5.2% discount over the issue price of Rs 75 per share. The stock debuted at Rs 70, a 6.7% discount over the issue price.

Cals Refineries clocked the highest volume of 1.45 crore shares on BSE. Unitech (1.18 crore shares), Thangamayil Jewellery (0.86 crore shares), SpiceJet (0.75 crore shares), Chambal Fertilisers & Chemicals (0.58 crore shares) were the other volume toppers in that order.

HDFC Bank clocked the highest turnover of Rs 150.67 crore on BSE. Reliance Industries (Rs 95.66 crore), State Bank of India (Rs 91.48 crore), Tata Steel (Rs 84.35 crore) and Unitech (Rs 83.22 crore) were the other turnover toppers in that order.

Key indices eke out small gains ahead of Budget

The market logged marginal gains after seeing wild swings throughout the week driven by expectations from the Union budget and global factors. The market edged lower in three out of five trading sessions. Small and mid-cap stocks underperformed their large-cap peers during the week.

The forthcoming week is likely to be highly volatile driven by expectations from the upcoming Union Budget. The highly eventful week begins with the Railway Budget 2010-11 on 24 February 2010 to be followed by tabling of Economic Survey on 25 February 2010 and the Union Budget 2010-11 on 26 February 2010. Also, the expiry of February 2010 derivatives contracts on Thursday, 25 February 2010 will add to the volatility on the bourses.

The US Federal Reserve on Thursday, 18 February 2010, raised the discount rate from 0.5% to 0.75% effective 19 February 2010 and said the move will encourage financial institutions to rely more on money markets, rather than the central bank, for short-term loans. It was the first increase in the discount rate in more than three years, and the move widens the discount rate spread over the top range for the federal funds rate to 0.5%. The central bank also cited last month's statement, which said economic conditions are likely to warrant exceptionally low levels of the federal funds rate, or the target rate for overnight loans between banks, for an extended period.

Earlier, on 12 February 2010, China ordered banks to set aside more deposits as reserves for the second time in a month, as loan growth quickened and property prices surged. The reserve requirement will increase 50 basis points effective 25 February 2010.

Back home, a foreign brokerage predicts that Indian equity and equity-linked offerings may jump by as much as 33% this year as companies and the government tap a growing pool of domestic capital as the economy recovers. Indian companies may raise $25 billion to $30 billion in share sales in 2010, up from $22 billion last year.

C. Rangarajan, the prime minister's economic adviser, on Friday, 19 February 2010 said that India's economy is likely to grow at over 7.2% in the current fiscal year ending March 2010. The prime minister's economic advisory council said on Friday that inflation was a down-side risk to its projected growth rate of at least 8.2% in 2010/11, and any policy action would have to factor in the "significant" danger of high food inflation spreading into broader prices.

Although the large deficits this year and the last year did have a counter-cyclical impact, it is necessary to initiate measures towards fiscal consolidation in the forthcoming budget, the council said in its review of the financial year 2009/10. The fiscal imbalance is a matter of concern and the process of consolidation must begin in the next financial year itself, the prime minister's economic advisory council said on Friday.

The wholesale price inflation is seen at around 8.5% by the end of March, Rangarajan said. He also said that the government's market borrowing in the next fiscal year ending March 2011 is likely to be around or slightly lower than Rs 4,51,000 crore ($97 billion) in the current fiscal year

The government on 15 February 2010 amended rules for foreign currency convertible bonds (FCCB) to allow issuers to revise their conversion price, a move aimed at reducing price uncertainty in a volatile equity market. The change will give issuers a window of 6 months to adjust the conversion price of their bonds to the higher of either the two weeks average or the six months average of the issuing company's stock. The decision unveiled by the finance ministry applies to companies that issued FCCBs before 27 November 2008.

Food inflation rose for the fourth straight week in early February 2010, heightening worries that it was driving up headline inflation past official forecasts and increasing the chance of the Reserve Bank of India (RBI) pushing up rates. The government data showed the food price index rose 17.97% for the year through 6 February 2010. The fuel price index rose 9.89% while primary articles price index rose 16.23 % for the year through 6 February 2010.

The wholesale price index (WPI) rose 8.56% in January 2010 from a year earlier, driven by higher food prices, government data showed on Monday, 15 February 2010. The latest reading on the WPI was the highest since November 2008. It was higher than an annual 7.3% rise in December 2009.

The rise was driven by a 17.4% jump in food prices, which rose on weak monsoon rains and flooding from last year. Inflation in manufacturing picked up to 6.55% from about 5% in December 2009, a sign that inflationary pressures were spreading to other sectors of the economy. In January, the Reserve Bank of India (RBI) had raised the wholesale price inflation forecast for the current year to end-March to 8.5 % from 6.5%.

Industrial output grew at its fastest pace in at least a decade in December 2009, in further evidence of a strong economic recovery that could allow the government to follow the Reserve Bank in withdrawing stimulus. Industrial output grew 16.8% in December from a year earlier, up from revised annual rise of 11.8% in November, data showed on Friday, 12 February 2010.

Since December 2008, the government has announced stimulus packages equivalent to about 12% of GDP to boost infrastructure and support economic recovery, while the Reserve Bank of India cut its key lending rate by 425 basis points between October 2008 and April 2009.

The BSE Sensex rose 39.04 points or 0.24% to 16,152.59 in the week ended Friday, 19 February 2010. The S&P CNX Nifty rose 18.05 points or 0.37% to 4844.90

The BSE Mid-Cap index fell 77.38 points or 1.19% to 6,509.74 and the BSE Small-Cap index declined 98.51 points or 1.19% to 8,303.08. Both these indices underperformed the Sensex.

FII outflow in February 2010 totaled Rs 203.20 crore, as on 17 February 2010. FII had sold equities worth Rs 302.70 crore in January 2010. FII outflow in the calendar year 2010 totaled Rs 703.70 crore.

Trading for the week began on a dull note as the key benchmark indices declined on Monday, 15 February 2010 on worries the central bank may take more monetary action to check inflation after the latest data showed that the headline inflation jumped in January 2010. The BSE 30-share Sensex fell 114.24 points or 0.71% to 16038.35 and the S&P CNX Nifty fell 24.90 points or 0.52% to 4801.95.

However, the key benchmark indices jumped on Tuesday, 16 February 2010, as firm global stocks boosted investor sentiment. The BSE 30-share Sensex rose 188.33 points or 1.17% to 16,226.68 and the S&P CNX Nifty rose 53.80 points or 1.12% to 4,855.75.

The key benchmark indices rose for the second straight day on Wednesday, 17 February 2010, tracking firm global stocks. The BSE 30-share Sensex rose 202.23 points or 1.25% to 16,428.91 and the S&P CNX Nifty rose 58.25 points or 1.2% to 4,914.

Lower Asian stocks weighed on investor sentiment on Thursday, 18 February 2010. The BSE 30-share Sensex fell 101.07 points or 0.62% to 16,327.84 and the S&P CNX Nifty declined 26.25 points or 0.53% to 4887.75.

The key benchmark indices extended losses for the second straight day on Friday, 19 February 2010, in a highly choppy trading session weighed by the US Federal Reserve's decision to raise its discount rate. The BSE 30-share Sensex was down 136.21 points or 0.83% to 16,191.63 and the S&P CNX Nifty was down 42.85 points or 0.88% to 4844.90.

Index heavyweight Reliance Industries (RIL) fell 2.93% to Rs 984.25. The government has reportedly demanded another $2.7 million from RIL towards royalty and profit petroleum payments on gas produced from the Krishna-Godavari (KG) D6 for the six-month period from April-September 2009, arguing that the company did not take into account the marketing margin it levies while calculating the dues.

Meanwhile, RIL may reportedly raise its offer for LyondellBasell that will include cash and stock options for shareholders and creditors. It had offered a deal that would value the bankrupt petrochemicals maker at about $13.5 billion, but earlier this week the target firm settled a dispute with creditors, paving the way for an exit from bankruptcy.

India's largest mobile services provider by sales Bharti Airtel slumped 11.50% on concerns the leading mobile firm's $10.7 billion offer for Kuwaiti Zain's African assets could strain its finances.

Bharti Airtel said on Monday, 15 February 2010, it is in talks to buy the African assets of Kuwaiti telecom Zain for $10.7 billion, a deal that would give India's leading mobile operator a foothold in a largely untapped region with significant growth potential.

Auto stocks rose on the back of robust monthly sales. The auto industry posted its highest-ever monthly sales in January 2010 with over 11-lakh units, the Society of Indian Automobile Manufacturers (SIAM) said in its latest report.

India's largest commercial vehicle maker by sales Tata Motors rose 1.48% after the company on Tuesday, 16 February 2010 said it will hike commercial vehicle prices by up to 2% on account of new emission norms. The company also announced plans of bidding for a Rs 350-crore defense contract to supply light bullet-proof vehicles.

India's largest car maker by sales Maruti Suzuki India gained 1.11% after a senior official of the company told the media that the firm will add 3,000 employees in the next three years. Maruti Suzuki's head of human resources, S.Y.Siddiqui was quoted by the media as saying that the company is also investing Rs 200 crore to add showrooms and stockyards.

India's biggest tractor maker by sales Mahindra & Mahindra (M&M) rose 1.18%.

Metal stocks were mixed. Tata Steel, the world's number 8 steelmaker by capacity rose 5.35%. The company on Tuesday, 16 February 2010 posted its first consolidated quarterly profit in four quarters and said reviving global demand would further boost earnings in the three months to March 2010. After trading hours on Tuesday, Tata Steel said its consolidated net profit for the December 2009 quarter, which includes its UK unit Corus, fell 42%, although higher prices and increased volumes led to a rise in its operating profit margins.

India's largest private sector aluminium maker by sales Hindalco Industries surged 8.32% on reports the company hopes to complete raising Rs 4900 crore of debt in the next two weeks to achieve financial closure for Utkal Alumina Refinery, a 15 lakh tonne per annum project in Orissa.

Among other metal stocks Steel Authority of India rose 0.75%, Hindustan Zinc gained 0.25%, while Sterlite Industries slipped 2.70%.

Software pivotals gained on expectations from the budget 2010-11. The IT sector is looking for an extension of the tax holiday for the Software Technology Park of India (STPI) scheme.

India's second largest IT exporter by sales Infosys Technologies rose 1.28%. India's third largest IT exporter by sales Wipro advanced 1.59%. India's largest IT exporter by sales TCS moved up 1.12%.

Banking shares were mixed. India's largest private sector bank by net profit ICICI Bank rose 0.51%. India's second largest private sector bank by net profit HDFC Bank jumped 6.50%. But, India's largest bank by net profit and branch network State Bank of India fell 0.71%.

Shares of Syncom Healthcare settled at Rs 87.85 on BSE on its debut on 15 February 2010, a 17.13% premium over the initial public offer price of Rs 75. Syncom is engaged in marketing and manufacturing of drugs and formulations.

Shares of Vascon Engineers settled at Rs 147.20 on BSE on its debut on 15 February 2010, a 10.79% discount over the initial public offer price of Rs 165. Pune-based Vascon Engineers is an engineering, procurement and construction services and real estate development company.

Shares of Thangamayil Jewellery settled at Rs 71.10 on BSE on its debut on 19 February 2010, a 5.20% discount over the issue price of Rs 75. Madurai-based Thangamayil Jewellery manufactures and retails precious jewellery.

Sensex ends in red for second day; Realty plunges

The key benchmark indices settled in red for the second consecutive day on the back of discount rate hike by Fed and heavy sell off seen in realty,metal and consumer durable stocks. The Sensex started off in red amid weak Asian shares and continued to trade in the negative on sustained selling by funds across board. Later in the second half, it pared some of its losses to finally end on a lower note after touching a low of 16,074.58.

Brokers said sentiments on the domestic bourses were dampened by weak trend on the other Asian markets after the US Federal Reserve surprised everyone by hiking the interest rate on emergency loans to banks, triggering selling by funds.

At the close, the benchmark 30-share index, BSE Sensex lost 136.21 or 0.83% at 16,191.63 with 26 components registering drop. Meanwhile, the broad based NSE Nifty went down by 42.85 or 0.88% at 4,844.90 with 44 components posting drop.

European stocks retreated as the Federal Reserve unexpectedly raised its discount rate, the first step in withdrawing stimulus for the world`s biggest economy. US index futures dropped

Sensex Movers

Reliance Industries contributed fall of 29.14 points in the Sensex. It was followed by State Bank Of India (12.97 points), ICICI Bank (12.8 points), Tata Steel (11.5 points) and Sterlite Industries (India) (11.12 points).

However, H D F C Bank contributed rise of 7.74 points in the Sensex. It was followed by Housing Development Finance Corporation (3.99 points), Oil & Natural Gas Corporation (3.7 points), Maruti Suzuki India (1.64 points) and Sun Pharmaceutical Industries (0.04 points).

Major gainers in the 30-share index were HDFC Bank (0.94%), Maruti Suzuki India (0.63%), Oil & Natural Gas Corporation (0.59%), and Housing Development Finance Corporation (0.51%).

On the other hand, Jaiprakash Associates (4.35%), DLF (4.10%), Reliance Communications (3.37%), Sterlite Industries (India) (2.95%), Tata Steel (2.56%), and Reliance Infrastructure (2.54%) were the major losers in the Sensex.

Mid & Small-cap Space

The BSE Midcap index was at 6432.36 down by 91.86 points or by 1.41%. The major losers were Aban Offshore (3.84%), Reliance MediaWorks (2.74%), Core Projects and Technologies (1.86%), A I A Engineering (1.66%) and Alstom Projects India (1.32%).

The BSE Smallcap index was at 8204.57 down by 130.54 points or by 1.57%. The major losers were INEOS ABS (India) (2.94%), Provogue (India) (2.22%), A B G Infralogistics (2.15%), Abhishek Industries (1.68%) and Aarti Industries (1%).

Sectors in Limelight

The Realty index was at 3,189.77, down by 111.19 points or by 3.37%. The major losers were Indiabulls Real Estate (6.21%), D L F (4.1%), Anant Raj Industries (3.74%), Ansal Properties and Infrastructure (2%) and Ackruti City (0.38%).

The Metal index was at 15,806.15, down by 403.66 points or by 2.49%. The major losers were Jai Corp (3.69%), Hindustan Zinc (3.36%), Jindal Steel & Power (2.02%), Hindalco Industries (1.55%) and Gujarat N R E Coke (1.43%).

The Consumer Durables index was at 4,078.69, down by 59.64 points or by 1.44%. The major losers were Videocon Industries (4.38%), Gitanjali Gems (1.98%), Titan Industries (1.11%), Rajesh Exports (0.65%) and Blue Star (0.2%).

On the other hand, the HC index was at 4,862.93, up by 3.49 points or by 0.07%. The major gainers were Glaxo SmithKline Pharmaceuticals (4.3%), Biocon (0.93%), Dr Reddy`S Laboratories (0.85%), Glenmark Pharmaceutical (0.6%) and Ipca Laboratories (0.53%).

Market Breadth

Market breadth was negative with 795 advances against 2,023 declines.

Value and Volume Toppers

HDFC Bank topped the value chart on the BSE with a turnover of Rs. 1,506.71 million. It was followed by Reliance Industries (Rs. 956.63 million), State Bank Of India (Rs. 914.83 million) and Tata Steel (Rs. 843.53 million).

The volume chart was led by Cals Refineries with trades of over 14.55 million shares. It was followed by Unitech (11.87 million), Spicejet (7.52 million) and Suzlon Energy (5.77 million).

Fed tightening bearish

Today's major news

Zuari Industries flares up on urea price hike; the stock jumps 3.31%

Unichem Laboratories receives CEP for two drugs; the stock rises 0.59%

Larsen & Toubro plans big in wind and hydro-power generation; the stock is down 0.06%

Himalya launches ‘Himalya Fresh’; the stock closes 0.69% lower

Jain Irrigation inks memorandum of understanding with IRRI; the stock drops 1.99%

Post-market summary

Global signals

European indices fell on early trades after a four-day winning streak owing to Federal Reserve move on raised discount rate. At the time of writing this report, FTSE 100 was down 0.19%.

All the major Asian indices closed lower. Shanghai Composite was closed today. SGX Nifty closed 40 points lower.

US stock futures opened weak on Friday after the Federal Reserve raised emergency lending rates it charges banks.

Indian indices

Indian markets closed lower on second straight day on the back of continuous selling in realty and metal stocks and weak global cues after the US Federal Reserve hiked lending rates. The Sensex opened 71 points lower at 16256 and droped further. The day’s high was 16302 and the low was 16074. At finishing line, the Sensex closed at 16191, 131 points lower. Nifty closed 43 points down at 4845.

Market sentiment

The market breadth was negative. Of 2,879 stocks traded on the BSE, 796 stocks advanced, whereas 2,018 stocks declined. Sixty-five stocks closed unchanged

Sectoral & stock screening

Out of the 13 sector indices on the BSE, only BSE HC (up 0.07%) closed higher. The remaining indices ended lower. Among loser BSE Realty dips the most by 3.37% followed by BSE Metal that declined by 2.49% for the day.

On stocks front, Glaxosmithkline Pharma surged the most by 4.30% followed by Financial Technologies that rose 2.25% and Educomp Solutions that jumped 1.88%. Among losers, Jaiprakash Associates slid the most by 4.35% followed by DLF that slipped 4.10%.

Viewing volumes

Unitech was the most actively traded share with over 1.18 crore shares changing hands on the BSE followed by Chambal Fertilisers and Chemicals (0.58 crore shares), wind power major Suzlon Energy (0.57 crore shares), public sector fertilizer company Rashtriya Chemicals and Fertilisers (0.43 crore shares) and industrial finance company IFCI (0.33 crore shares).

BSE Bulk Deals to Watch - Feb 19 2010

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
19/2/2010 530093 Ace India ANITA GUPTA B 38000 9.15
19/2/2010 530093 Ace India LKG SECURITIES & FINANCE P.LTD. S 38000 9.15
19/2/2010 513149 Acrow India MATIYANI BALJEET B 5000 152.50
19/2/2010 513149 Acrow India AHMED CHANGAL AZIZ B 5000 148.00
19/2/2010 513149 Acrow India AHMED CHANGAL AZIZ S 5000 152.50
19/2/2010 513149 Acrow India MATIYANI BALJEET S 5000 148.00
19/2/2010 530187 Atharv Enter Naman Securities & Finance Pvt. Ltd. B 33032 41.40
19/2/2010 530187 Atharv Enter IQBAL HATIMBHAI SOGIAWALA B 15762 45.78
19/2/2010 530187 Atharv Enter Naman Securities & Finance Pvt. Ltd. S 27901 42.74
19/2/2010 530187 Atharv Enter NAVYA BIPPIN JAJU S 16800 37.63
19/2/2010 530187 Atharv Enter SANKALP SECURITIES PVT LTD S 20000 44.48
19/2/2010 532995 Avon Corp BASMATI SECURITIES PRIVATE LIMITED B 1498587 7.75
19/2/2010 531591 Bampsl Sec PRAKASHCHAND GUPTA B 377641 1.15
19/2/2010 531591 Bampsl Sec NAVAL KISHORE GUPTA S 626858 1.13
19/2/2010 512253 Bio Green Inds KALPANA ASHOK DELIWALA B 40300 15.13
19/2/2010 500069 BNK Cap Markets PRIMESTAR EXIM PRIVATE LTD. B 325000 47.30
19/2/2010 500069 BNK Cap Markets BRIJNATH KHANDELWAL AND CO. S 319000 47.29
19/2/2010 531682 Cat Tech VINOD AMRATLAL NAAI S 402401 9.74
19/2/2010 532413 Cerebra Integ JAYASEELA PANDIANCHELLIAH S 88342 11.08
19/2/2010 531270 Dazzel Conf REKHA BHANDARI B 30000 7.14
19/2/2010 524608 FEM Care DEUTSCHE TRUSTEE SERVICES (I) PRIVATE LIMITED B 19742 801.00
19/2/2010 524608 FEM Care DEUTSCHE TRUSTEE SERVICES (I) PRIVATE LIMITED S 19742 801.00
19/2/2010 590024 Fert & Chem Trv TRANSGLOBAL SECURITIES LTD. B 68034 63.75
19/2/2010 590024 Fert & Chem Trv TRANSGLOBAL SECURITIES LTD. S 66486 63.84
19/2/2010 590024 Fert & Chem Trv WALLFORT FINANCIAL SERVICES LTD S 50000 64.70
19/2/2010 532379 Firstobject Tech HITESH SHASHIKANT JHAVERI B 137324 34.20
19/2/2010 532379 Firstobject Tech HITESH SHASHIKANT JHAVERI S 110046 34.20
19/2/2010 531360 Golechha Glob DAYA KRISHNA GOYAL B 54900 11.25
19/2/2010 531360 Golechha Glob INDRA DEVI RATHI S 49400 11.25
19/2/2010 513059 GS Auto PRASHANT MAHADEV KAMBLE B 128487 57.91
19/2/2010 513059 GS Auto J V STOCK BROKING PRIVATE LIMITED B 45140 57.74
19/2/2010 513059 GS Auto SONAL BHUPENDRA BHAI KAMODIA B 78000 57.95
19/2/2010 513059 GS Auto SANJAYKUMAR CHAMPAKLAL SHAH B 40000 57.94
19/2/2010 513059 GS Auto RITU MERCANTILES PVT LTD S 200348 58.00
19/2/2010 513059 GS Auto J V STOCK BROKING PRIVATE LIMITED S 45140 57.97
19/2/2010 513059 GS Auto PRASHANT MAHADEV KAMBLE S 105650 57.80
19/2/2010 513059 GS Auto SANJAYKUMAR CHAMPAKLAL SHAH S 40000 57.85
19/2/2010 531979 Hind Aluminium Naman Securities & Finance Pvt. Ltd. B 28010 42.90
19/2/2010 531979 Hind Aluminium Naman Securities & Finance Pvt. Ltd. S 36732 42.58
19/2/2010 523844 Invicta Meditek DURAI VENKATESAN B 38000 6.18
19/2/2010 523844 Invicta Meditek VAIBHAV BALUZORE S 35516 6.18
19/2/2010 531398 Inwinex Pharma SHASHI PRAKASH GANJI B 4400 59.40
19/2/2010 523467 Jai Mata Glass PAVANKUMAR KEDIA B 125000 3.59
19/2/2010 530255 KAY Power KAILASH CHAND GUPTA B 73857 17.65
19/2/2010 530255 KAY Power B.S.KHANDELWAL B 100000 16.40
19/2/2010 530255 KAY Power SUNIL KUMAR GUPTA B 101250 16.40
19/2/2010 530255 KAY Power NAVAL KISHORE GUPTA B 548053 17.32
19/2/2010 530255 KAY Power BAMPSL SECURITIES LTD B 259091 17.16
19/2/2010 530255 KAY Power ANJALI KAUSHIK S 65428 17.53
19/2/2010 530255 KAY Power BAMPSL SECURITIES LTD S 171800 17.23
19/2/2010 530255 KAY Power NAVAL KISHORE GUPTA S 419311 16.41
19/2/2010 530255 KAY Power SUNDERDASS AGARWAL S 100000 17.40
19/2/2010 530255 KAY Power GIRRAJ PRASAD GUPTA S 67800 17.63
19/2/2010 530255 KAY Power ASHOK KUMAR SONI S 65400 17.15
19/2/2010 531602 Koffee Break HITEN MEHTA B B 409000 1.79
19/2/2010 531602 Koffee Break BABULAL BHURMAL JAIN S 400000 1.79
19/2/2010 508982 Linkson Intl CHETAN PRANLAL SHAH S 5850 141.55
19/2/2010 531515 Mahan Inds PRITI NILESHJAIN DAGA B 300000 5.25
19/2/2010 531515 Mahan Inds RAHMATULLAH KASAM PATEL B 300000 5.30
19/2/2010 531515 Mahan Inds ALPA HAREN SHAH S 400000 5.30
19/2/2010 531515 Mahan Inds SHASHI SINGHVI S 455000 5.30
19/2/2010 531515 Mahan Inds YOGENDRA KUMAR GUPTA S 2800000 5.24
19/2/2010 590111 MASTER P T N V AMBICA RAMA SUDARSHAN B 33000 39.59
19/2/2010 590111 MASTER P T N V AMBICA RAMASUDARSAN S 33000 39.59
19/2/2010 519560 Neha Intl SAJJAD A QADIR B 120000 122.50
19/2/2010 531272 Nikki Global SOMPRAKASH GOENKA B 35600 69.84
19/2/2010 531272 Nikki Global NEHARIKA GUPTA B 25278 69.50
19/2/2010 531496 Omkar Overseas SHRENI SHARES PRIVATE LTD B 67000 50.18
19/2/2010 531496 Omkar Overseas BHUTIYA HITESH KANABHAI B 50000 51.14
19/2/2010 531496 Omkar Overseas VISHAL M RAMNANI B 25000 51.15
19/2/2010 531496 Omkar Overseas VIJAY VELJIBHAI PADHARIA S 25000 50.00
19/2/2010 531496 Omkar Overseas SANTOSH ABHAYRAJ SHUKLA S 25000 50.60
19/2/2010 531496 Omkar Overseas RATHOD MANOJ CHHAGANLAL HUF S 25000 51.15
19/2/2010 531496 Omkar Overseas RAM RAJU KAMBLE S 25000 50.46
19/2/2010 531496 Omkar Overseas VICKY RAJESHBHAI JHAVERI S 38704 51.08
19/2/2010 531496 Omkar Overseas VICKY RAJESH JHAVERI S 25000 51.15
19/2/2010 512097 Oregon Comm AXIOM CAPITAL ADVISORS PRIVATE LIMITED B 5174 161.03
19/2/2010 512097 Oregon Comm KRUPA SANJAY SONI B 10985 158.53
19/2/2010 512097 Oregon Comm JAYESH KUMAR VADILAL SONI B 4947 160.76
19/2/2010 512097 Oregon Comm JAYESH KUMAR VADILAL SONI S 4977 159.46
19/2/2010 512097 Oregon Comm KRUPA SANJAY SONI S 6247 157.90
19/2/2010 512097 Oregon Comm AXIOM CAPITAL ADVISORS PRIVATE LIMITED S 5174 158.99
19/2/2010 512097 Oregon Comm PATEL SHAILESH JIVANLAL S 6365 159.09
19/2/2010 506605 Polychem MASUMA INVESTMENTS PVT LTD B 5000 265.00
19/2/2010 506605 Polychem GINNERS & PRESSERS LTD S 5000 265.00
19/2/2010 503873 Priyadarshini Spn PRADEEP KR AGGARWAL B 67840 20.94
19/2/2010 502587 Rama Pulp MAHIPAT IWDARMAL MEHTA B 57715 32.77
19/2/2010 531099 Rubra Med MORTALA KOTIREDDY B 34000 17.99
19/2/2010 531099 Rubra Med NARENDER KUMAR GUPTA S 70000 18.00
19/2/2010 531898 Sanguine Media CHANDAN TOTARAM SIDHWANI S 100000 2.99
19/2/2010 526510 Shakti Metdor SUDHIR CHANDA B 25000 173.49
19/2/2010 590047 Sunderam Multi STANDARD CHARTERED BANK (MAURITIUS) LIMITED A/C EMERGING IND S 400000 42.38
19/2/2010 526133 Supertex Inds RAKESH RASIKLAL KHARSANI B 650000 3.51
19/2/2010 526133 Supertex Inds JIGESH AMRUTLAL HIRANI S 650000 3.51
19/2/2010 533158 THANGAMAYIL MATRIX EQUITRADE PRIVATE LIMITED LIMITED B 103891 73.96
19/2/2010 533158 THANGAMAYIL MARWADI SHARES AND FINANCE LTD. B 212813 72.81
19/2/2010 533158 THANGAMAYIL SANJAY SINGHAL & SONS (HUF) B 69560 72.43
19/2/2010 533158 THANGAMAYIL SANJEEV SINGHAL B 489853 72.38
19/2/2010 533158 THANGAMAYIL OPG SECURITIES P LTD B 435185 73.00
19/2/2010 533158 THANGAMAYIL TRANSGLOBAL SECURITIES LTD. B 224533 73.42
19/2/2010 533158 THANGAMAYIL GENUINE STOCK BROKERS PVT. LTD. B 525666 73.40
19/2/2010 533158 THANGAMAYIL SMART EQUITY BROKERS PRIVATE LIMITED B 199783 74.03
19/2/2010 533158 THANGAMAYIL SEAKING FIN SER PRIVATE LIMITED B 171471 73.32
19/2/2010 533158 THANGAMAYIL TEAM INDIA MANAGERS LIMITED B 165000 71.10
19/2/2010 533158 THANGAMAYIL N JAGANATHAN B 71051 70.36
19/2/2010 533158 THANGAMAYIL RAKHI KALPESH BHANDARI B 190000 72.44
19/2/2010 533158 THANGAMAYIL R M SHARES TRADING PRIVATE LIMITED B 216775 72.92
19/2/2010 533158 THANGAMAYIL GKN SECURITIES B 92513 72.30
19/2/2010 533158 THANGAMAYIL R M SHARES TRADING PRIVATE LIMITED S 216775 72.12
19/2/2010 533158 THANGAMAYIL RAKHI KALPESH BHANDARI S 190000 72.38
19/2/2010 533158 THANGAMAYIL SEAKING FIN SER PRIVATE LIMITED S 171471 73.74
19/2/2010 533158 THANGAMAYIL INDIA MAX INVESTMENT FUND LIMITED S 413174 75.97
19/2/2010 533158 THANGAMAYIL SMART EQUITY BROKERS PRIVATE LIMITED S 199783 74.10
19/2/2010 533158 THANGAMAYIL GENUINE STOCK BROKERS PVT. LTD. S 525666 73.02
19/2/2010 533158 THANGAMAYIL TRANSGLOBAL SECURITIES LTD. S 224533 72.63
19/2/2010 533158 THANGAMAYIL GKN SECURITIES S 92513 71.95
19/2/2010 533158 THANGAMAYIL OPG SECURITIES P LTD S 435185 72.99
19/2/2010 533158 THANGAMAYIL SANJEEV SINGHAL S 489853 72.35
19/2/2010 533158 THANGAMAYIL SANJAY SINGHAL & SONS (HUF) S 69560 72.48
19/2/2010 533158 THANGAMAYIL MARWADI SHARES AND FINANCE LTD. S 212813 72.61
19/2/2010 533158 THANGAMAYIL MATRIX EQUITRADE PRIVATE LIMITED LIMITED S 102766 74.00
19/2/2010 511431 Vakrangee Soft CYBER NETIX AUTOMATION P LTD B 120000 82.89
19/2/2010 531574 VAS Infra HITESH SHASHIKANT JHAVERI B 75203 59.25
19/2/2010 531249 Well Pack Papers MAYANK N GANDHI B 22661 440.77
19/2/2010 531249 Well Pack Papers SHOBHNABEN R PARMAR B 33525 440.82
19/2/2010 531249 Well Pack Papers PANDYA YAMINIBEN M B 26734 440.28
19/2/2010 501391 WH Brady DILIP VASANTLAL VARIYA B 15000 122.57
19/2/2010 501391 WH Brady SNEHA DILIP VARIYA B 15000 113.10
19/2/2010 501391 WH Brady DILIP VASANTLAL VARIYA S 15000 113.10
19/2/2010 501391 WH Brady SNEHA DILIP VARIYA S 15000 122.55
19/2/2010 500780 Zuari Inds BLUE PEACOCK SECURITIES PRIVATE LIMITED B 166456 564.61
19/2/2010 500780 Zuari Inds INVENTURE FINANCE PVT LTD B 150000 542.29
19/2/2010 500780 Zuari Inds BLUE PEACOCK SECURITIES PRIVATE LIMITED S 166456 545.00
19/2/2010 500780 Zuari Inds INVENTURE FINANCE PVT LTD S 150000 566.72
* B - Buy, S - Sell

NSE Bulk Deals to Watch -Feb 19 2010

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
19-FEB-2010,ORCHIDCHEM,Orchid Chemicals Ltd.,JM FINANCIAL SERVICES PRIVATE LIMITED,BUY,340,171.57,-
19-FEB-2010,ORCHIDCHEM,Orchid Chemicals Ltd.,ORCHID HEALTH CARE PVT LTD,BUY,475000,170.86,-
19-FEB-2010,ORCHIDCHEM,Orchid Chemicals Ltd.,R VIJAYALAKSHMI,BUY,860000,173.51,-
19-FEB-2010,SYNCOM,Syncom Healthcare Ltd,MANISH VRAJLAL SARVAIYA,BUY,106930,82.35,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,86837,72.29,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,ALIVE CONSULTANTS ALIVE,BUY,80950,73.44,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,BP FINTRADE PRIVATE LIMITED,BUY,117991,73.68,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,CPR CAPITAL SERVICES LTD.,BUY,69919,74.23,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,EMERALD JEWEL INDUSTRY INDIA LIMITED,BUY,175434,71.82,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,G RAMAKRISHNA,BUY,73108,72.92,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,GENUINE STOCK BROKERS PVT LTD,BUY,598621,72.80,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,GKN SECURITIES,BUY,87183,71.99,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,INDIA ADVANTAGE SECURITIES LTD.,BUY,126642,72.57,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,KALASH SHARES & SECURITIES PRIVATE LIMITED,BUY,193336,73.32,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,MANIPUT INVESTMENTS PVT. LTD.,BUY,126937,73.47,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,MANSUKH SECURITIES & FINANCE LIMITED,BUY,75993,72.35,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,MARWADI SHARES AND FINANCE LIMITED,BUY,251962,72.71,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,NAMAN SECURITIES & FINANCE PVT. LTD,BUY,197607,73.05,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,NEPTUNE FINCOT PVT LTD,BUY,114473,73.65,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,OM INVESTMENTS,BUY,113007,72.42,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,R APPALA RAJU,BUY,180000,72.30,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,R.M. SHARE TRADING PVT LTD,BUY,237114,72.22,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,SEAKING FINANCIAL SERVICES PVT LTD,BUY,179204,73.46,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,SHOBHA SAKHLECHA,BUY,84792,71.47,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,SMITA M PATEL,BUY,90680,72.05,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,SRINIVASAN GOVINDHARAJAN,BUY,83500,72.89,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,SURAJ SAKHLECH,BUY,85024,72.88,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,TEAM INDIA MANAGERS LIMITED,BUY,57748,70.95,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,TRANS FINANCIAL RESOURCES LTD,BUY,306381,72.72,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,TRANSGLOBAL SECURITIES LTD.,BUY,239338,72.74,-
19-FEB-2010,THINKSOFT,Thinksoft Global Ser Ltd,SARAVANA STOCKS PRIVATE LIMITED,BUY,200000,271.65,-
19-FEB-2010,ASIANELEC,Asian Electronics Ltd,SHAH INVESTMENTS FINANCIAL DEV & CON PRIVATE LIMIT,SELL,167640,30.18,-
19-FEB-2010,ORCHIDCHEM,Orchid Chemicals Ltd.,JM FINANCIAL SERVICES PRIVATE LIMITED,SELL,380440,172.40,-
19-FEB-2010,SYNCOM,Syncom Healthcare Ltd,MANISH VRAJLAL SARVAIYA,SELL,106930,82.19,-
19-FEB-2010,TCI,Transport Corporation of,BLACKSTONE ASIA ADVISORS,LLC A/C INDIA FUND INC.,SELL,824000,94.99,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,86837,72.45,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,ALIVE CONSULTANTS ALIVE,SELL,80950,74.89,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,BP FINTRADE PRIVATE LIMITED,SELL,117990,73.74,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,CPR CAPITAL SERVICES LTD.,SELL,69919,74.34,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,EMERALD JEWEL INDUSTRY INDIA LIMITED,SELL,160000,72.42,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,G RAMAKRISHNA,SELL,73108,72.57,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,GENUINE STOCK BROKERS PVT LTD,SELL,598621,73.19,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,GKN SECURITIES,SELL,87183,72.52,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,INDIA ADVANTAGE SECURITIES LTD.,SELL,126642,72.70,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,INDIA MAX INVESTMENT FUND LTD,SELL,586826,74.41,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,KALASH SHARES & SECURITIES PRIVATE LIMITED,SELL,193336,73.08,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,MANIPUT INVESTMENTS PVT. LTD.,SELL,121937,73.51,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,MANSUKH SECURITIES & FINANCE LIMITED,SELL,75993,73.37,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,MARWADI SHARES AND FINANCE LIMITED,SELL,251962,73.01,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,NAMAN SECURITIES & FINANCE PVT. LTD,SELL,197619,73.07,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,NEPTUNE FINCOT PVT LTD,SELL,114473,73.49,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,OM INVESTMENTS,SELL,113007,72.38,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,R APPALA RAJU,SELL,180000,72.70,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,R.M. SHARE TRADING PVT LTD,SELL,237114,73.03,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,SEAKING FINANCIAL SERVICES PVT LTD,SELL,179204,73.33,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,SHOBHA SAKHLECHA,SELL,84792,72.32,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,SMITA M PATEL,SELL,90680,72.40,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,SRINIVASAN GOVINDHARAJAN,SELL,83500,72.89,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,SURAJ SAKHLECH,SELL,65024,72.31,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,TEAM INDIA MANAGERS LIMITED,SELL,228840,71.87,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,TRANS FINANCIAL RESOURCES LTD,SELL,306381,71.33,-
19-FEB-2010,THANGAMAYL,Thangamayil Jewellery Ltd,TRANSGLOBAL SECURITIES LTD.,SELL,239338,73.54,-
19-FEB-2010,THINKSOFT,Thinksoft Global Ser Ltd,ALIN AJAYKUMAR SHAH,SELL,91212,271.65,-

Thangamayil Jewellery falls below IPO price

Shares of Thangamayil Jewellery settled at Rs 71.10 on BSE, a 5.20% discount over the issue price of Rs 75.

The stock debuted at Rs 70, a 6.7% discount over the issue price. The counter clocked 86.13 lakh shares on BSE. The stock hit a high of Rs 79 and low of Rs 70.

The current price of Rs 71.10 discounts the year ended March 2009 EPS of Rs 5.46 by a PE multiple of 13.02.

The initial public offer (IPO) of Thangamayil Jewellery's ended on 29 January 2010 with an oversubscription of 1.12 times and bids for 45.88 lakh shares.

The issue saw good response from retail individual investors, with the quota reserved for them, getting oversubscribed 2.26 times. The portion reserved for non institutional investors and qualified institutional buyers was subscribed 1.52 and 0.51 times respectively. However the employee quota remained unsubscribed getting bids for 86160 shares as against 1.28 lakh shares reserved for them.

The company offered 41 lakh shares in a price band of Rs 70 to Rs 75 per equity share through the IPO.

The company intends to use issue proceeds for expansion of existing business by establishing retail outlets at Tuticorin, Dindigul, Theni, Nagercoil, Tirunelveli, Kovilpatti and Sivakasi, and for renovation of the existing outlet at Madurai; working capital requirement and issue expenses.

Thangamayil Jewellery reported a net profit of Rs 7.31 crore on sales of Rs 246.84 crore in the year ended March 2009.

Madurai-based Thangamayil Jewellery manufactures and retails precious jewellery.

Union Budget 2010-11 to dictate trend

The market is likely to remain highly volatile with the focus being on the Railway Budget and the Union Budget 2010-11. Derivatives expiry on Thursday, 25 February 2010 will also add to the volatility on the bourses.

The highly eventful week begins with the Railway Budget on 24 February 2010. It will be followed by tabling of Economic Survey on 25 February 2010 and the Union Budget on 26 February 2010.

President Pratibha Patil will address the joint session of the Lok Sabha and the Rajya Sabha on 22 February 2010, marking the beginning of the fourth session of the 15th Lok Sabha.

As far as railway budget is concerned, the Railway minister Mamata Banerjee is likely to present a populist budget leaving passenger fares untouched, but rationalise the freight rates of certain commodities like iron ore, coal and cement. Banerjee is unlikely to tinker with the freight rates of essential commodities including foodgrains.

Expectations are sky-high for Union Budget 2010-11, with this being the second budget session of the current Lok Sabha. However, apprehensions too are abundant. The expectations are fueled by the sharp recovery displayed by the Indian economy from the global economic slowdown. The rising GDP growth, easy liquidity in the banking sector and strengthening of rupee are all aiding the cause. However, the soaring inflation remains a cause of concern and a phased withdrawal of stimulus packages is likely to be announced in the budget. Burgeoning fiscal deficit is another cause of worry. The street will closely watch the measures the government will resort to fill the widening gap amidst demand for tax cuts and tax waivers.

The government may announce increase excise duties as a first step towards a gradual winding down of fiscal stimulus measures. It may also raise the service tax rate to 12% from 10%. It may be recalled that the government had slashed the Central Value Added Tax (Cenvat) rate for excise duty from 14% to 8% in two rounds starting in December 2008. It had also cut service tax by 2 percentage points. These reductions were effected in order to provide a stimulus to domestic industry. Since the overall prospects for growth are much brighter today, the finance minister may withdraw a part of the stimulus in order to boost tax revenue.

The fate of three important fiscal bills, which had been stalled by the Left parties, will be closely watched. These are the Pension Fund Regulatory and Development Authority (PFRDA) Bill, Insurance Bill and Banking Regulation (Amendment) Bill.

Meanwhile, the recommendations of the 13th Finance Commission will be tabled in the parliament on 25 February 2010, just a day ahead of the budget. Analysts and economists expect the Finance Minister to provide a road map for the introduction of the key direct and indirect tax reforms viz. the direct tax code (DTC) and the Goods & Services Tax (GST) in the Budget.

As far as government expenditure is concerned, the thrust areas could be agriculture, water resources, power, roads & other infrastructure projects and social sector schemes.

The global economic situation remains grim as an increase in the Fed's discount rate on Thursday, 18 February 2010 spurred concern the economic rebound will slow as stimulus programs are unwound.

The US Federal Reserve raised the discount rate from 0.5% to 0.75% effective 19 February 2010 and said the move will encourage financial institutions to rely more on money markets, rather than the central bank, for short-term loans.

Sentiment has been edgy ever since the policy tightening move announced by the People's Bank of China (PBOC) on 12 February 2010. In a surprise move, the PBOC had announced of an increase in banks' reserve requirements, the second hike this year, as it clamps down on loans in a bid to keep the economy from overheating.

Latest Grey Market Premiums - Feb 19 2010

Company Name	Offer Price (Rs.)	Premium (Rs.)	Kostak (Rs. 1 Lac Application)
Aqua Logistics	220	2.50 to 3	--
Thangamayil Jewellery	75	2 to 3	--
D. B. Realty	468	Discount	--
Emmbi Polyarns	45	2 to 3	--
NTPC (FPO)	201	4 to 5	--
ARSS Infrastructure Projects	450	130 to 135	--
Hathway Cable & Data Comm.	240.00	+/- 3 to 4	--
Texmo Pipes	85 to 90	8 to 9	1950 to 2000
Man Infraconst.	243 to 252	45 to 48	1800 to 1950
REC (FPO)	203.00	10 to 11	1800 to 1900
United Bank of India	60 to 66	5.50 to 6	1900 to 200