Markets trade flat; Infy, M&M up

The Indian markets open today's session on a flat note due to mixed global cues. The major heavyweights supporting the market are RIL, M&M, ICICI Bank, HDFC, Tata Motors, BHEL and HDFC Bank. Individual stocks like, Bharti Airtel gained on reports that the company may file IPO papers of its subsidiary Bharti Infratel soon. Reliance Industries rose after foreign research firm Goldman Sachs upgraded the stock. Among the 13 sectoral indices, the gainers are - BSE Oil & Gas up by 0.68%, BSE CD up by 0.28% and BSE FMCG up by 0.20%. Losers - BSE Realty fell by 0.76%, BSE Metal fell by 0.71%, BSE Bankex fell by 0.62%. At 9.51 am, the Sensex was trading at 17772.90, down by 9 points and the Nifty was trading at 5384, down by 2 points.

Bhel gains as provisional FY 2012 PAT rises 14.25%

Firmness persisted on the domestic bourses in afternoon trade as European markets opened higher. The market breadth was strong. The barometer index, BSE Sensex, was up 151.79 points or 0.87%, off 22.78 points from the day's high and up 59.67 points from the day's low. Index heavyweight Reliance Industries (RIL) rose more than 2%. Power equipment maker Bharat Heavy Electricals (Bhel) rose close to 3% after the company reported good provisional results for the year ended March 2012 (FY 2012). Interest rate sensitive realty stocks rose for the third straight day on reports some banks have cut home loan rates for new borrowers, sparking hope of increased property sales in the country. Auto and IT stocks were mixed. The market edged higher to hit its highest level in more than 1-1/2 weeks in early trade. The market pared gains in volatile trade later. The Sensex surged to fresh intraday high in mid-morning trade. The market held firm in early afternoon trade. Firmness continued n afternoon trade.

Markets under pressure; Sensex dips over 300 points

The Indian markets began the session on a negative note following the weak global cues. Heavy selling pressure in technology, metal, banking, capital goods and realty stocks dragged the markets lower. The market breadth was negative. The broader indices were also in red.

Among the 30 Sensex shares, 27 shares were trading lower. Jindal Steel down by 3.81%, followed by Tata Motors down by 3.42% and Hindalco Industries down by 3.29%. HUL up by 1.56%, and Cipla up by 0.05%.

At 9.43 am, the Sensex was trading at 16578, 291 points lower and the Nifty was trading at 4966, down by 94 points.

Markets rise at start; Sensex soars 300 points

The Indian indices bounced back and started the session on a strong note following the healthy gains across global markets. The much awaited speech by Ben Bernanke evoked a positive response from investors on Wall Street and lifted the US markets. Buying activity was seen across the board. IT, TECk and Banking shares were in gaining spree, while FMCG shares traded negative. The adanvance to decline ratio, stood very strong.

Among the 30 Sensex stocks – only ITC was trading down by 0.13%. Infosys surged by 3.34%, followed by TCS that gained by 2.99% and Jaiprakash Associates rose by 2.82%.

At 9.28 am, the Sensex was trading at 16160, 311 points higher and the Nifty was trading at 4835, up by 88 points.

Hike in fuel price lifts OMCs

The government hiked the price of diesel by Rs3 a litre, kerosene - Rs2 a litre and cooking gas by a steep Rs50 a cylinder. This followed the hike of over Rs5 per litre on petrol announced by oil marketing companies ( OMCs) in mid-May.

The decision to raise fuel prices was inevitable in view of the rising crude prices in the global market and its impact on the fiscal deficit

The impact on inflation is inevitable as the government did not have any other option but to hike the prices in light of huge under-recoveries.

The price hike would help the oil companies limit their revenue loss by Rs21,000 crore, but they would still end the fiscal with about Rs121,704 crore of revenue loss.

State-run oil marketing companies Indian Oil Corporation ( IOC), Bharat Petroleum Corporation Ltd ( BPCL) and Hindustan Petroleum Corporation Ltd ( HPCL) would benefit from increase in fuel prices. The shares of OMCs witness good buying interest.

At 9.26 am, BSE Oil & Gas was the leading index, up 1.23% at 9154.

HPCL was trading at Rs410.05, up by 4.47%, with a volume of 1.41 lakh shares on the BSE.

BPCL was trading at Rs663.65, up by 4.61%, with a volume of 1.14 lakh shares on the BSE.

IOC was trading at Rs349.55, up by 3.69%, with a volume of 0.92 lakh shares on the BSE.

Hike in fuel price lifts OMCs

The government hiked the price of diesel by Rs3 a litre, kerosene - Rs2 a litre and cooking gas by a steep Rs50 a cylinder. This followed the hike of over Rs5 per litre on petrol announced by oil marketing companies ( OMCs) in mid-May.

The decision to raise fuel prices was inevitable in view of the rising crude prices in the global market and its impact on the fiscal deficit

The impact on inflation is inevitable as the government did not have any other option but to hike the prices in light of huge under-recoveries.

The price hike would help the oil companies limit their revenue loss by Rs21,000 crore, but they would still end the fiscal with about Rs121,704 crore of revenue loss.

State-run oil marketing companies Indian Oil Corporation ( IOC), Bharat Petroleum Corporation Ltd ( BPCL) and Hindustan Petroleum Corporation Ltd ( HPCL) would benefit from increase in fuel prices. The shares of OMCs witness good buying interest.

At 9.26 am, BSE Oil & Gas was the leading index, up 1.23% at 9154.

HPCL was trading at Rs410.05, up by 4.47%, with a volume of 1.41 lakh shares on the BSE.

BPCL was trading at Rs663.65, up by 4.61%, with a volume of 1.14 lakh shares on the BSE.

IOC was trading at Rs349.55, up by 3.69%, with a volume of 0.92 lakh shares on the BSE.

Sensex swings between positive and negative zone

The key benchmark indices swung between gains and losses in early trade after the Reserve Bank of India after trading hours on Friday, 2 July 2010, hiked key interest rates by 25 basis points to tame inflation. Interest rate sensitive banking stocks rose while realty stocks fell after the rate hike. Reliance Natural Resources (RNRL), slumped due to unfavorable swap ratio for its merger with group company Reliance Power (RPower). RPower surged.

Market opens on a firm note

The key benchmark indices surged in early trade as Asian stocks and US index futures gained. The market breadth was strong. Oil & gas stocks extended Friday's (25 June 2010) gains after government freed petrol pricing and raised prices of other fuels. Reliance Communications, India's second biggest cellphone operator by sales, jumped more than 4% after company agreed to merge its telecom towers business with that of GTL Infrastructure. The BSE 30-share Sensex was up 88.80 points or 0.51%. Consumer durables stocks rose.

Sensex at day's high as auto stocks rally

Key benchmark indices advanced to the day's high in morning trade mirroring recovery in Asian markets. US index futures rose. The BSE 30-share Sensex was up 78.93 points or 0.48% to 16,466.77, up 135.67 points of the day's low and off just 2.77 points from day's high.

The market breadth was positive. Index heavyweights Reliance Industries (RIL) and State Bank of India turned positive after suffering initial losses. Auto stocks gained on fresh buying. Metal stocks saw mixed trend.

Volatility may rise during the day as traders roll over positions in the derivatives segment from May 2010 series to June 2010 series ahead of the expiry of the near-month May 2010 contracts today, 27 May 2010.

Meanwhile, stock brokers have advised clients not to sell shares today which they had bought in the cash segment on Wednesday, 26 May 2010, due to clubbing of settlements due to a bank holiday today, 27 May 2010. There will be no settlement of trades today due to bank holiday.

On the macro front, the government will unveil data on some wholesale price indices for the year through 15 May 2010 viz. the food price index, the primary articles index and the fuel price index at about 12:00 IST today.

Meanwhile, the Reserve Bank of India (RBI) on Wednesday eased rules to boost liquidity at banks to avoid a cash crunch because of payments for corporate advance tax and license fees for third-generation mobile-phone spectrum. As per RBI's circular released on 26 May 2010, banks can borrow as much as 0.5% of their deposits from the central bank under the repurchase agreement till 2 July 2010. In addition, RBI said that as an ad hoc measure, banks can seek a waiver for any shortfall in maintenance of the prescribed 25% statutory liquidity ratio (SLR) while availing the temporary facility.

Besides, the central bank has decided to conduct two rounds of liquidity adjustment facility (LAF) operations till 2 July 2010. Through LAFs, that are conducted at least once a day, banks can avail of funds through the repo window or park surplus cash through the reverse repo route.

Asian stocks extended gains after staging an intra-day reversal. The key benchmark indices in Hong Kong, Japan, South Korea, Singapore and Taiwan were up by between 0.36% to 1.21%. However, key benchmark indices in China and Indonesia were down 0.02% and 0.05% respectively.

US markets declined in volatile trading session on Wednesday on selling pressure in financial and technology stocks. The Dow Jones Industrial Average slipped 69.30 points, or 0.69%, at 9,974.45. The S&P 500 was down 6.08 points, or 0.57%, to 1067.95. The Nasdaq was down 15.07 points, or 0.68%, at 2195.88.

Data released on Wednesday showed new home sales rose 14.8% to a seasonally adjusted rate of 504,000 in April 2010, up from an upwardly revised 439,000 in March 2010.

Trading in US index futures indicated that the Dow could gain 81 points at the opening bell on Thursday, 27 May 2010.

China, India, Brazil and Russia are powering ahead, the Organisation for Economic Cooperation and Development (OECD) said on Wednesday, 26 May 2010, revising upwards its growth outlook for all four largest emerging economies. The OECD revised India's GDP growth forecast for 2010 to 8.2% from its earlier estimate of 7.3%. It also raised the growth forecast for 2011 to 8.5% from its earlier estimate of 7.6%. The OECD also said that underlying inflationary pressures are likely to persist given the strong outlook for demand.

In its World Economic Outlook in April 2010, the International Monetary Fund (IMF) pegged India's GDP growth forecast at 8.75% in calendar 2010 and 8.5% in calendar 2011. IMF's optimism was based on expectations of strengthening of domestic demand as the labour market improves. Expectations of increase in investment on the back of strong corporate profitability, rising business confidence and favourable financing conditions, were other factors cited by IMF for its prediction of strong growth in India's economy.

Prime Minister Manmohan Singh early this week said inflation is showing signs of moderating and the government expects to achieve a medium term target of 10% GDP growth annually. The Prime Minister said he expects inflation to moderate to 5-6% by December 2010. Singh expects 8.5% GDP growth in the year ending March 2011 (FY 2011).

The RBI expects India's economy to expand 8% in the year ending March 2011 (FY 2011) with an upward bias, assuming a normal monsoon this year and sustenance of good performance of the industrial and services sectors on the back of rising domestic and external demand. The RBI at its annual policy review on 20 April 2010 said it will continue to monitor macroeconomic conditions, particularly the price situation closely and take further action as warranted.

India's monsoon rains are on track to hit the country's southern coast on 30 May 2010, and the Laila cyclone in the Bay of Bengal would not derail the vital June-September rainfall, a weather office spokesman told a news agency last week. The India Meteorological Department (IMD) in late April 2010 said rainfall is likely to be 98% of the long-term average. Good monsoon rains would help raise farm output, boost rural incomes and lower food inflation.

The south west monsoon is important for India as about 60% of the country's farmlands are rain-fed and more than half of the workforce is employed in the agriculture sector. The quantum of rainfall in the crucial sowing month of July and distribution of rainfall during the monsoon season also holds key.

The fourth quarter corporate results have been decent. The combined net profit of a total of 2,523 companies rose 17.10% to Rs 68147 crore on 23.90% rise in sales to Rs 670843 crore in the quarter ended March 2010 over the quarter ended March 2009.

The BSE 30-share Sensex was up 78.93 points or 0.48% to 16,466.77 at 10:17 IST. The index fell 56.74 points at the day's low of 16,331.10 in early trade. The Sensex rose 81.70 points at the day's high of 16,469.54 in morning trade.

The S&P CNX Nifty was up 19.20 points or 0.39% to 4936.60

The market breadth, indicating the overall health of the market, was positive. On BSE, 1155 shares advanced as compared with 906 that declined. A total of 80 shares remained unchanged.

The total turnover on BSE amounted to Rs 940 crore by 10:25 IST as compared with Rs 472 crore by 09:25 IST.

From the 30 share Sensex pack, 22 stocks gained while the rest slipped. Bharti Airtel (down 0.95%), TCS (down 0.57%), and Jaiprakash Associates (down 0.46%), edged lower from the Sensex pack.

Oil & Natural Gas Corporation (up 2.16%), ITC (up 1.86%), and Larsen & Toubro (up 1.59%), edged higher from the Sensex pack.

India's largest tractor maker by sales Mahindra & Mahindra surged 2.42%. The company during market hours on Thursday, 26 May 2010, said it has entered into high growth electric car segment by acquiring a majority 55.2% equity stake in Reva Electric Car Company.

Other auto stocks also nudged higher on fresh buying. India's largest small car maker by sales Maruti Suzuki India rose 0.73%. India's largest truck maker by sales Tata Motors advanced 1.66% ahead of its year ended March 2010 (FY 2010) result today, 27 May 2010.

India's largest motorbike maker by sales Hero Honda Motors rose 0.57%. India's second largest motorbike maker by sales Bajaj Auto was up 0.08%.

Index heavyweight Reliance Industries (RIL) rose 0.18% to Rs 1009.20, rebounding from day's low of Rs 1002.15. The company is reportedly evaluating acquiring or forming joint ventures for two shale gas assets in the US.

Banking pivotals saw mixed trend. India's largest private sector bank by net profit ICICI Bank fell 0.95% after its ADR slipped 0.74% on Wednesday. India's second largest private sector bank by net profit HDFC Bank rose 0.38% to Rs 1832.95, recovering from the day's low of Rs 1,811.45

India's largest commercial bank by net profit and branch network State Bank of India rose 0.29% to Rs 2178.50, staging a recovery from day's low of Rs 2,158.25.

India's largest steel maker by sales Tata Steel lost 0.21% after it reported a consolidated net loss of Rs 2,009.22 crore in the year ended March 2010 (FY 2010) compared with a net profit of Rs 4950.09 crore in the year ended March 2009 (FY 2009). Total income decreased 29.82% to Rs 103578.97 crore in FY 2010 over FY 2009.

Other metal stocks saw mixed trend. India's largest private sector aluminium maker by sales Hindalco Industries declined 2.06% to Rs 144.80 and was the top loser from the Sensex pack.

India's largest non-ferrous metal producer by sales Sterlite Industries gained 2.79% to Rs 635.10 and was the top gainer from the Sensex pack.

Sensex slips further; Metal, realty stocks dip

The Sensex slipped further amid weak global cues. Sustained selling was seen in index heavyweights. Metal, realty and IT stocks traded lower.

At 9.53 a.m., the Sensex was trading down 139.25 points or 0.84% at 16,356.80 with 29 components falling. Meanwhile, the Nifty was trading lower by 45.10 points or 0.91% at 4,886.75 with 45 components falling.

The 30-share benchmark index, BSE Sensex opened flat with a rise of 4.24 points or 0.03% at 16,500.29, while the broad based NSE Nifty started with a fall of 100.85 points or 2.04%, at 4,831.00.

Sensex Movers

Housing Development Finance Corporation contributed fall of 15.5 points in the Sensex. It was followed by HDFC Bank (13.08 points), Larsen & Toubro (12.49 points), Reliance Industries (11.96 points) and Infosys Technologies (11.35 points).

However, Hindustan Unilever contributed rise of 3.2 points in the Sensex. It was followed by Sun Pharmaceutical Industries (0.24 points), ICICI Bank (0.29 points), ACC (0.53 points) and Reliance Communications (1.02 points).

Hindustan Unilever (0.93%) was the only gainer in the Sensex pack.

On the other hand, Hindalco Industries (2.43%), Sterlite Industries (India) (1.96%), Tata Steel (1.91%), Housing Development Finance Corporation (1.91%), Jaiprakash Associates (1.86%), and Mahindra & Mahindra (1.62%) were the major losers in the Sensex.

Mid & Small-cap Space

The BSE Midcap index was at 6637.26 down by 9.32 points or by 0.14%. The major losers were Aban Offshore (1.36%), Alstom Projects India (0.96%), AIA Engineering (0.9%), Reliance MediaWorks (0.77%) and Core Projects and Technologies (0.62%).

Sectors in Limelight

The Metal index was at 16,377.18, down by 224.95 points or by 1.35%. The major losers were Hindalco Industries (2.43%), JSW Steel (1.77%), Hindustan Zinc (1.19%), Jindal Steel & Power (0.78%) and Jai Corp (0.5%).

The Realty index was at 3,496.58, down by 39.64 points or by 1.12%. The major losers were Indiabulls Real Estate (1.69%), Ansal Properties and Infrastructure (1.58%), Ackruti City (1.12%), D L F (1.09%) and Anant Raj Industries (0.67%).

The IT index was at 4,980.86, down by 42.47 points or by 0.85%. The major losers were HCL Technologies (1.63%), Mphasis (1.05%), Infosys Technologies (0.72%), Aptech (0.67%) and Oracle Financial Services Software (0.08%).

On the other hand, the FMCG index was at 2,750.27, up by 1.29 points or by 0.05%. The major gainers were Dabur India (1.43%), Hindustan Unilever (0.93%), Marico (0.69%), Britannia Industries (0.4%) and Nestle India (0.19%).

Market Breadth

Market breadth was negative with 918 advances against 1,178 declines.

Value and Volume Toppers

Infinite Computer Solutions (India) topped the value chart on the BSE with a turnover of Rs. 573.26 million. It was followed by Tata Steel (Rs. 300.30 million), State Trading Corporation of India (Rs. 190.06 million) and Rashtriya Chemicals & Fertilizers (Rs. 159.29 million).

The volume chart was led by Shree Ashtavinayak Cine Vision with trades of over 3.73 million shares. It was followed by Dynamic Infotel (3.16 million), Infinite Computer Solutions (India) (2.84 million) and Cals Refineries (2.03 million).

Morning trade weak

The key benchmark indices edged lower tracking weak Asian markets. The BSE 30-share Sensex was down 84.26 points or 0.51%. Despite the broad market fall, the market breadth was positive.

Metal stocks declined as metal prices fell on the London Metal Exchange on Wednesday, 3 February 2010. However, cement pivotals ACC and Ambuja Cement gained ahead of their Q4 December 2009 earnings later in the day

The government will today unveil data on some wholesale price indices for the year through 23 January 2010 viz. the food price index, the primary articles index and the fuel price index.

Meanwhile Pronab Sen, the country's chief statistician, said on Wednesday the government should wait till May to roll back stimulus, as the strength of the demand recovery visible in available data may not be for real, pulling the finance minister, Pranab Mukherjee, away from a policy direction which the Reserve Bank of India (RBI) desires.

The advance estimates on economic growth for the current fiscal ending March 2010 will be released on Monday. It will be based on the provisional data for the first half of the year and partial data for third quarter and no data on the fourth quarter, which contributes the highest to the annual Gross Domestic Product.

Meanwhile, non-banking finance companies (NBFC) and housing finance companies (HFC) can no longer resort to short-term foreign currency borrowings. Citing prevailing macroeconomic conditions and improvements in domestic credit and liquidity conditions, the Reserve Bank of India (RBI) has withdrawn the borrowing facility with immediate effect. The latest move by the RBI is seen as part of its efforts to gradually reverse its soft money policy.

In October-November 2008, the RBI had, as a temporary measure, allowed systemically important non-deposit taking NBFCs and HFCs to raise short-term foreign currency borrowings not exceeding 50% of their net-owned funds or $10 million, whichever was higher, for refinancing their short-term liabilities.

Meanwhile Power Minister Sushilkumar Shinde on Wednesday reportedly said the government may put off divestment in power generation company Satluj Jal Vidyut Nigam (SJVNL) to the next fiscal.

Asian shares declined today after Australian retail sales unexpectedly fell in December and commodity prices declined. The key benchmark indices in China, Hong Kong, Japan, South Korea and Singapore were down by between 0.11% to 1.08%. However, Taiwan's Taiwan Weighted index rose 0.10%.

US markets snapped a two-day winning streak on Wednesday, 3 February 2010, after tepid reports on employment and the services sector. The key indices ended on a mixed note. The Dow Jones Industrial Average fell 26.30 points or 0.26% to 10,270.55, the S&P 500 index slipped 6.04 points or 0.55% to 1,097.28. However the Nasdaq Composite rose marginally by 0.85 points to 2,190.91

In US economic news, the ISM Non-Manufacturing index rose to 50.5 in January from 49.8 in December, but fell short of expectations. On the jobs front, ADP reported that 22,000 jobs were lost from private payrolls in January.

Trading in US index futures indicated a flat opening of US markets on Thursday, 4 February 2010.

Closer home, the National Stock Exchange (NSE) has decided to hold a special trading session on Saturday, 6 February 2010, as the exchange is testing upgraded trading systems. Trading will begin at 11:00 IST and end at 12:30 IST.

At 09:15 IST, the BSE 30-share Sensex was down 84.26 points or 0.51% to 16,411.79. The index fell 84.93 points at the day's low of 16,411.12 in early trade. The Sensex rose 12.17 points at the day's high of 16,508.22 in early trade.

The S&P CNX Nifty was down 27.30 points or 0.55% to 4904.55

The market breadth, indicating the overall health of the market, was positive. On BSE, 722 shares advanced as compared with 573 that declined. A total of 41 shares remained unchanged.

The total turnover on BSE amounted to Rs 498 crore by 09:25 IST

Among the 30-member Sensex pack, 27 declined while only 3 of them managed gains. HDFC (down 1.79%), Jaiprakash Associates (down 1.42%), and Mahindra & Mahindra (down 1.06%), edged lower from the Sensex pack.

Metal stocks declined after LMEX, a gauge of six metals traded on the London Metal Exchange, lost 2.53% on Wednesday, 3 February 2010.

India's largest private sector steel maker by sales Tata Steel fell 1.90% to Rs 589 and was the top loser from the Sensex pack.

Sterlite Industries (down 1.81%), Hindalco Industries (down 1.73%), National Aluminium Company (down 0.72%), Sesa Goa (down 1.17%), and Hindustan Zinc (down 0.82%), edged lower

Index heavyweight Reliance Industries (RIL) was down 0.10% to Rs 1033.50. The company's net profit rose 15.77% to Rs 4008 crore on 89.77% surge in total income to Rs 57364 crore in Q3 December 2009 over Q3 December 2008. RIL said the results had been reworked and restated to include figures from Reliance Petroleum, which it absorbed last year. The company announced the Q3 result during market hours on 22 January 2010.

India's largest power utility firm by sales NTPC fell 0.31%. The company's large follow-on public offer (FPO) saw good response on Wednesday, 3 February 2010. The issue was subscribed 0.77 times on day one. The institutional segment was oversubscribed on day one following heavy bidding from domestic institutional investors (DIIs). DIIs excluding mutual funds, put in bids for 31.15 crore shares compared to 20.4 crore shares reserved for the qualified institutional buyers (QIB) segment as a whole. Foreign funds put in bids for 45.01 lakh shares.

Most bids were at Rs 209 per share. The government has fixed the benchmark price for the proposed divestment of government stake at Rs 201 per share.

Cement pivotals ACC (up 0.58%), and Ambuja Cement (up 0.29%), gained ahead of their Q4 December 2009 earnings today, 4 February 2010.

India's largest oil exploration firm by sales Oil & Natural Gas Corporation gained 1.78% to Rs 1153.35 and was the top gainer from the Sensex pack. The stock rose on hopes on lower subsidy burden after a report from an expert group headed by Kirit Parikh on Tuesday suggested freeing petrol and diesel prices as well as raising LPG rates by Rs 100 a cylinder and kerosene prices by Rs 6 per litre. The Parikh committee's suggestions, submitted to petroleum minister Murli Deora, would see a hike of Rs 3 per litre in petrol and Rs 3-4 per litre in diesel if implemented.

via BL

Sensex, Nifty scale new highs

The key benchmark indices extended early gains to hit their highest level in nearly 20 months tracking firm Asian stocks and higher US index futures. Index heavyweight Reliance Industries extended early gains. Power, auto and realty stocks, also edged higher. The BSE 30-share Sensex was up 158.34 points or 0.93%. The Sensex and S&P CNX Nifty scaled their highest level in nearly 20 months. The market breadth was strong. All the sectoral indices on BSE rose.

Volatility may remain high today, 31 December 2009, ahead of the expiry of the near month December 2009 futures & options (F&O) contracts. Rollover in Nifty futures from December 2009 series to January 2010 stood at 58% at the end of Wednesday's (30 December 2009) trade. Rollover in Mini Nifty futures stood at about 50% and the market wide rollover was about 67%

From 4 January 2010, trading will start at 9:00 IST and end at 15:30 IST compared to the current timing of 9:55 IST to 15:30 IST. The market remains closed on Friday, 1 January 2010, for the New Year holiday.

The government will today unveil data on some wholesale price indices for the year through 19 December 2009 viz. the food price index, the primary articles index and the fuel price index.

The government is reportedly expected to sell shares in 17 to 18 state firms in each of the next two fiscal years, with an issue happening every two to three weeks. The ministry of disinvestment was consulting with administrative ministries of more than 50 state-owned firms to assess the preparedness for public offer, report said.

Meanwhile, the Thirteenth Finance Commission has suggested the path of fiscal consolidation and sharing of tax revenues between the Centre and the states, in its report submitted to President Pratibha Patil on Wednesday. The report has assessed the impact of the proposed goods and services tax (GST) on trade. It has also suggested steps to deal with the growing off-Budget expenditure, especially, oil bonds, the implications of environment and climate change, and ways to improve outcomes and outputs of public expenditure.

The report of the Thirteenth Finance Commission, headed by former finance secretary Vijay Kelkar, will be given by the President to the finance ministry, which will take it up with the Cabinet.

Finance Minister Pranab Mukherjee said on Wednesday that the government needs to strike a balance between economic growth and cutting fiscal deficit. India's fiscal deficit is estimated at 6.8% of gross domestic product for 2009/10 (April-March), higher than 6.2% in the previous year as the government cut tax rates and boosted spending.

Recently C. Rangarajan, Chairman of the Economic Advisory Council to the Prime Minister, raised concern over the rising food inflation, which is at an 11-month high now, stating that the task ahead was to check food inflation. He indicated that the Reserve Bank of India could look at raising the cash reserve ratio (CRR) to suck out excess liquidity from the system, even though the central bank may watch the price movements for some more time before taking any decision on rate hike.

The focus of India's monetary policy is shifting to managing recovery and containing inflation from one concentrated on fostering growth after the global downturn, Reserve Bank of India deputy governor Shyamala Gopinath said early this week. She said rising food prices were fuelling concerns of broader price pressures in India and the policy challenge was to address the supply-side constraints.

She said effective assessment of the inflation process and using monetary policy actions at the right time would be critical. Gopinath's comments follow those from fellow Deputy Governor Subir Gokarn on Thursday, 24 December 2009, who said the January 2010 policy review would focus both on growth and inflation, instead of the previous policy focus on growth.

Food price index rose 18.65% in the 12 months to 12 December 2009, data released by the government on 24 December 2009, showed. The primary article index jumped 14.66% and the fuel price index rose 3.95%. The worst monsoon in nearly four decades and flooding in some parts of the country have pushed up food prices.

Finance Minister Pranab Mukherjee said last week that containing inflation and cutting fiscal deficit are the major challenges for the government in the short-to-medium term. The Indian economy can grow at 7.75% in the fiscal year ending March 2010, the Finance Minister said.

Data earlier this month showed that corporate advance tax payments for the October-December 2009 quarter shot up sharply, suggesting a higher profit growth in corporate sector in the third quarter (October-December) of the current fiscal. Corporate advance tax payments for the quarter were up 44% to Rs 48,300 crore against a 3.7% decline in April-June quarter and a 14.7% increase in July-September quarter. The company-wise break-up of advance tax collection suggests a broad-based recovery with automobiles, cement, metals and consumer goods, doing well.

In global news, encouraging US economic data helped lift Asian stocks on Thursday. The key benchmark indices in China, Hong Kong, Singapore and Taiwan rose by between 0.44% to 1.75%.

Markets in Japan, South Korea, Thailand, Indonesia and the Philippines were closed. Most markets in the world will be closed on Friday for the New Year day holiday.

Beijing will stick to its loose monetary stance, but will try to be more flexible in implementing its policies, People's Bank of China Governor Zhou Xiaochuan said on Thursday.

Trading in US index futures indicated the Dow could gain 12 points at the opening bell on Thursday, 31 December 2009.

US stocks spent almost the entire session trading with moderate losses until some late support helped the major indices improve their position on Wednesday. Better-than-expected report on Midwest manufacturing helped sentiment. The Dow Jones industrial average added 3.10 points, or 0.03%, at 10,548.51. The Standard & Poor's 500 Index was up 0.22 point, or 0.02%, to finish at 1,126.42. The Nasdaq Composite Index gained 2.88 points, or 0.13%, to close at 2,291.28.

The Chicago purchasing-manager's index jumped to 60 in December 2009 from 56.1 in November 2009, the highest since January 2006 and well above expectations. The employment gauge also rose, hitting its highest since November 2007.

With many of the major market players done for the year, prices were moderately higher Wednesday for US interest rate futures even as data revealed a significant pick-up in the economy. The July 2010 fed-funds contract priced in a 76% chance for the Federal Open Market Committee to raise the Fed funds rate to 0.5% at its meeting in late June 2010. On Tuesday, the July 2010 contract had priced in a 78% chance for a 0.5% rate. The funds rate has stayed inside a record low range of 0% to 0.25% for the past year, one of many Fed actions designed to stimulate the economy.

Closer home, at 11:20 IST, the BSE 30-share Sensex was up 158.34 points or 0.93% to 17,502.16. The Sensex gained 170.08 points at the day's high of 17,513.90 in mid-morning trade, its highest level since 5 May 2008. The Sensex opened with an upward gap of 21.55 points at 17,365.37, also the day's low so far.

The S&P CNX Nifty was up 44.75 points or 0.87% at 5214.20. It hit a high of 5218 its highest since 5 May 2008.

The BSE Mid-Cap index rose 0.9% and the BSE Small-Cap index rose 1.36%.

The market breadth, indicating the overall health of the market was strong. On BSE, 1791 shares advanced as compared with 600 that declined. A total of 64 shares remained unchanged.

Among the 30-member Sensex pack, 29 rose while only one declined.

India's largest engineering & construction firm by sales Larsen & Toubro rose 1.27% after it won an order worth Rs 580 crore.

India's largest private sector firm by market capitalisation Reliance Industries (RIL) rose 1.58%. RIL has successfully tested the design capacity of its massive eastern offshore Krishna-Godavari basin D6 field production facilities. A flow rate of 80 million standard cubic meters was achieved through the KG-D6 facilities and delivered to the pipeline, the company said in a statement recently.

India's largest thermal power generator by sales NTPC jumped 2.77% on reports the government plans to allow the firm to sell around 10% of its power capacity at market-determined prices.

Among other power stocks, Reliance Power, Tata Power Company, Reliance Infrastructure rose by between 0.62% to 0.94%.

Auto stocks extended recent gains on the back of strong sales in the month of November 2009 and higher advance tax payment in the third quarter.

India's top truck maker by sales Tata Motors advanced 0.25%. The company has reportedly commenced trial production of the first batch of the Nano at the new mother plant at the Sanand facility last week. The company will start commercial production of the 'People's Car' from March 2010 onwards.

Tata Motors had shifted its mother plant to Gujarat last year after facing local protests in West Bengal spearheaded by Trinamool Congress leader Mamata Banerjee.

India's largest tractor marker by sales Mahindra & Mahindra (M&M) advanced 1.67%. After announcing its entry into the medium and heavy commercial space, the company is reportedly making new inroads in the mini truck segment. It is set to launch one tonner Maxximo at the upcoming Auto Expo from its light commercial vehicle (LCV) space.

From two wheeler space, Hero Honda Motors and Bajaj Auto rose by between 0.25% to 1.74%. But, India's top small car marker by sales Maruti Suzuki India fell 0.17%.

Rate sensitive realty shares gained on fresh buying boosted by a recent Cushman & Wakefield report that the real estate sector, particularly the retail space, will perform better in the year 2010 as a number of mall projects are getting back on track.

India's largest realty player by market capitalization DLF rose 0.6%. On 16 December 2009, the company's board approved merger of its commercial realty arm DLF Assets (DAL) with itself, a move aimed at repaying some of DAL's debt.

Among other realty stocks, Ackruti City, Indiabulls Rela Estate and Unitech rose by between 0.8% to 2.93%.

Strides Arcolab rose 0.83% , after the company said it has bought back foreign currency convertible bonds aggregating $1.5 million.

HCL Infosystems gained 3.26%, after the company secured a radio network contract worth Rs 100 crore.

Market recovers after a weak start; RIL declines

The key benchmark indices recovered and were trading flat after a negative start. The gains in some Asian stocks helped recovery. The BSE 30-share Sensex was flat at 17051.90 up close to 60 points from the day's low. The Sensex regained 17000 mark after falling that level in early trade. Banking stocks fell but IT stocks rose. Oil exploration stocks rose but PSU OMCs fell on gains in crude oil prices. Index heavyweight Reliance Industries fell despite setting record date for the bonus issue. Another index heavyweight Larsen & Toubro also fell.

Federal Reserve Chairman Ben Bernanke surprised investors on Monday 16 November 2009 when he said the central bank was attentive to implications of changes in the value of the dollar, although he reiterated that interest rates would remain exceptionally low for an extended period.

Closer home, inflation based on the wholesale price index accelerated in October 2009 from a month earlier on costlier minerals and fuels. On Saturday 14 November 2009, the government switched to using monthly inflation data for all commodities with 1993/94 as the base year, from the earlier practice of announcing weekly price movement. The wholesale price index was up 1.34% in October 2009 from a year earlier, compared with 0.5% rise in September 2009 and 11.06% jump a year ago. Food prices, however, declined by 1% from the previous month's level, while minerals and industrial fuels were each costlier by 3%.

Industrial output grew 9.1% in September 2009 from a year earlier, helped by stimulus and festival demand, and adding to the debate on the timing of exit policy. However, Finance minister Pranab Mukherjee said on Monday stimulus packages to perk up the economy during the slowdown are unlikely to be withdrawn in the current financial year and the exit when it happens will be a gradual one.

Economists and analysts surveyed by the Reserve Bank of India (RBI) revised downwards India's gross domestic product projection to 6% for 2009/10 from 6.5% in the previous round of survey, the RBI released the results of the ninth round of survey on Monday 16 November 2009.

The RBI in its mid-term monetary policy review last month kept its GDP projection for the current fiscal unchanged at 6% but had increased inflation target to 6.5% by end-March 2010 from 5%. The government is scheduled to announce the July-September GDP growth number on 30 November 2009.

Asian stocks were trading mixed on Wednesday as the generally bearish dollar kept riskier assets in demand. The key benchmark indices in China, South Korea and Taiwan rose by between 0.265% to 0.72%. The key benchmark indices in Hong Kong, Japan and Singapore fell by between 0.49% to 0.88%.

Trading in US index futures indicated Dow could fall 12 points at the opening bell on Wednesday, 18 November 2009.

US stocks rose to fresh 13-month highs on Tuesday as upbeat broker views on improving prospects for two Dow components offset disappointing holiday spending outlooks from Target and Home Depot. The Dow Jones industrial average was up 30.46 points, or 0.29%, to end at 10,437.42. The Standard & Poor's 500 Index gained 1.02 points, or 0.09% to finish at 1,110.32. The Nasdaq Composite Index rose 5.93 points, or 0.27% to close at 2,203.78.

In economic data from the US, producer prices rose 0.3% in October, with the core rate dropping 0.6%. And industrial production climbed 0.1% in October 2009. This was less than the 0.4% gain expected.

At 10:20 IST, the BSE 30-share Sensex was flat at 17051.90. At the day's high of 17,055.99, the Sensex rose 5.30 points in early trade. The Sensex fell 59.85 points at the day's low of 16990.80 in early trade.

The S&P CNX Nifty was flat at 5062.95.

The market breadth, indicating the overall health of the market was strong. On BSE, 703 shares advanced as compared with 439 that declined. A total of 40 shares remained unchanged.

From the 30 share Sensex pack, 22 fell and rest rose.

The BSE Mid-Cap index rose 0.4% and the BSE Small-cap index rose 0.46%.

Energy major Reliance Industries (RIL) fell 0.68%. The company plans an aggressive exploration campaign, investments in petrochemicals and overseas acquisitions as India's top company by market capitalisation prepares itself for the next phase of growth. The company will work towards attaining global scale for its conventional energy platform petrochemicals, refining and oil and gas exploration and invest in its new businesses such as retailing and alternative energy, chairman Mukesh Ambani said at the company's annual meeting of shareholders on Tuesday. RIL has set 27 November 2009 as the record date for a liberal 1:1 bonus share issue.

The government on Monday 16 November 2009 announced additional allocation of 51.6 million metric standard cubic metres per day (mmscmd) of natural gas from RIL's Krishna Godavari D6 field. Nearly 70% of this has been to the power sector. The move, finalised at the meeting of the ministry of petroleum and natural gas on 27 October 2009, takes the total allocation to 91.6 mmscmd from the current 40 mmscmd.

RIL on Tuesday 10 November 2009 announced its first oil discovery in its exploration block in the Cambay Basin off Gujarat. Reliance holds 100% participating interest in the block. This block was awarded to Reliance under the fifth round of the New Exploration Licensing Policy.

Oil exploration stocks rose as crude oil gained for a third day on Wednesday after an industry report showed U.S. stockpiles declined after a hurricane in the Gulf of Mexico. Oil rose as much as 0.9 % to $79.85 a barrel on Asian electronic trading. Rise in crude oil prices would result in higher realizations from crude sales for oil exploration firms.

Cairn India rose 0.41%. The company on 5 November 2009 signed a pact with Reliance Industries for supply of crude oil.

India's second biggest state-run oil exploration firm by revenue Oil India rose 0.25%. But, India's biggest state-run oil exploration firm by revenue Oil & Natural Gas Corporation (ONGC) fell 0.35%. Steel magnate Lakshmi Mittal has reportedly pulled out of a project to develop an oil block in Kazakhstan with Indian joint venture partner Oil and Natural Gas Corp. ONGC Mittal Energy was to have acquired a 25 % stake in Satpaev block from state-owned KazMunaiGaz and invested a total of $400 million in the project.

The petroleum ministry has reportedly proposed a 33% hike in the price of natural gas produced by ONGC and Oil India and gradually increase it to $4.20 per mmBtu set for gas from Reliance Industries' KG-D6 fields.

PSU OMCs fell as higher crude oil prices will increase under-recoveries on domestic sale of petrol, diesel, kerosene and LPG at controlled prices. HPCL and BPCL fell by between 0.14% to 0.22%. But Indian Oil Corporation (IOC) rose 0.5%.

Banking shares fell on profit taking. India's largest bank by net profit State Bank of India (SBI) fell 0.95%. State Bank of India said on 9 November 2009 said it had entered into an agreement with T. Rowe Price to sell a 6.5% holding each in UTI Asset Management Company and UTI Trustee Company. State Bank currently holds 25% in each of the companies and after the sale its holding would be reduced to 18.5%, it said in a statement.

SBI announced after market hours on Friday 6 November 2009 it has revised downwards interest rates on deposits by 25-50 basis points for a few maturities effective from 9 November 2009. The bank's consolidated net profit rose 28.29% to Rs 3,133.16 crore on 22% rise in consolidated income to Rs 33,101.65 crore in Q2 September 2009 over Q2 September 2008. The results were announced on 31 October 2009.

India's largest private sector bank by net profit ICICI Bank fell 0.73% as its ADR fell 0.23% on Tuesday. The bank's net profit rose 2.6% to Rs 1040.13 crore on a 12.7% decline in total income to Rs 8480.73 crore in Q2 September 2009 over Q2 September 2008. The result was announced during trading hours on 30 October 2009.

But, India's second largest private sector bank by net profit HDFC Bank rose 0.15% even as its ADR ended flat on Tuesday.

India's largest dedicated home loan lender Housing Development Finance Corporation (HDFC) fell 0.93%. The lender announced after market hours on Friday 13 November 2009 it has agreed to acquire approximately 41% in the fully diluted equity share capital of Credila Financial Services from DSP Merrill Lynch Capital.

Prime Minister Manmohan Singh said on 8 November 2009, financial reforms, such as building up a domestic bond market and expanding foreign investment in sectors like insurance, would be pushed forward.

As per reports, the government plans to introduce two key bills in parliament by December 2009. It plans to introduce bills proposing the raising of foreign stake limits in insurers to 49% from the present 26% and opening up the pension sector to private and foreign firms.

Meanwhile, the Reserve Bank of India Deputy Governor Usha Thorat said on Monday 16 November 2009 the central bank will soon issue guidelines on provisioning for bad loans by banks

India's largest engineering and construction firm by sales Larsen & Toubro fell 0.92%. The company after market hours on Tuesday said Gilbarco Inc. has bought its petroleum dispensing pump business.

Meanwhile, the company made a profit of Rs 86.14 crore by paring a third of its stake in software firm Mahindra Satyam last week. Larsen and Toubro (L&T) on Friday, 13 November 2009 sold 2.72 crore shares in Mahindra Satyam in two bulk deals at an average price of Rs 113.65 on BSE in opening trade.

IT stocks rose on gains in American depository receipts overnight in US. India's second largest software company by sales Infosys rose 1.22% as its ADR rose 1.27% on Tuesday. Infosys BPO, the business processing outsourcing subsidiary of Infosys Technologies, last week, announced the signing of a definitive agreement to acquire all of the outstanding interests of McCamish Systems LLC, a premier business process solutions provider, based in Atlanta, Georgia in the United States.

The acquisition is expected to be completed later this year subject to the satisfaction of certain closing conditions. The upfront consideration for the deal is $38 million with up to an additional $20 million payable to the sellers if McCamish Systems achieves certain financial targets in the future. The announcement was made before market hours on Thursday 12 November 2009.

India's largest software company by sales Tata Consultancy Services (TCS) rose 1.09%. The company recently secured a 150 million pounds software implementation contract for 15 years from Cardiff city council, UK.

India's third largest software company by sales Wipro rose 1.31% as its ADR rose 0.99% on Tuesday. Wipro, sees robust deal pipeline on the back of improving IT demand worldwide, Suresh Vaswani, joint chief executive said on Tuesday 10 November 2009. The company said on 5 November 2009 it had agreed to buy some personal care businesses of Yardley for about $45.5 million, adding to its consumer goods business. Wipro said it had signed an agreement with UK-based Lornamead group, which owns the Yardley brand, for the businesses in Asia, the Middle East, Australasia and some African markets.

Mahindra Satyam fell 1.76% on Tuesday rejected claims worth Rs 1,230 crore made by 37 companies linked to the company's former promoter B Ramalinga Raju in a filing to the stock exchange terming them legally untenable. Satyam received letters from these 37 companies reclaiming the money a day after Raju confessed to the Rs 7,000-crore fraud.

Valecha Engineering gained 1.43% after the company bagged two new road projects aggregating Rs 110 crore at Himachal Pradesh.

Sensex extends gains for the fifth day; IT pivotals rally

Key benchmark indices extended gains for the fifth straight sessions after strong economic data from the US suggested that the world's biggest economy is emerging from the longest recession since the 1930s. The BSE 30-share Sensex was up 111.30 points or 0.71%, up 61.58 points from the day's low and off 19.03 points from the day's high. IT stocks were in demand after strong US economic data. The market breadth was strong.

Volatility may rise in the near term as traders roll over positions in the derivatives segment from August 2009 series to September 2009 series, ahead of the expiry the August 2009 series on Thursday, 27 August 2009. Rollover was a little over 54% in Nifty futures at the end of Tuesday's (25 August 2009) trading. The rollover in Mini Nifty futures was about 44%.

Encouraging statement from the Finance Minister Mukherjee indicating that reforms would continue in right earnest to get the economy back to its 9% growth also boosted sentiment. At an event on Tuesday, 25 August 2009 on 'Mission 2010: The Reform Road Map', the finance minister said that the green shoots were visible in industry with basic goods, intermediates and consumer durables doing better in the first quarter.

Mr Mukherjee made it clear that public spending won't push interest rates higher. Nor would the government's huge debt appetite leave private industry high and dry.

Both Mukherjee and C Rangarajan, chief of the Prime Minister's Economic Advisory Council, pegged the GDP growth for this fiscal at 6-6.5% after factoring in the drought damage. Mr Rangarajan, a former Reserve Bank of India governor, said growth should pick up speed to hit 7-8% next fiscal. To accelerate to 9%, though, it was vital to boost domestic consumption, he added.

Planning Commission Deputy Chairperson Montek Singh Ahluwalia said on Monday, 24 August 2009 that India's fiscal deficit this year will not exceed 6.8% despite rising concerns that high government spending. In the budgetary estimates for 2009-10, the fiscal deficit was projected at 6.8%. The first full meeting of the Planning Commission will be held on 1 September 2009 and the main topic of discussion will be the state the economy.

Most Asian markets were trading higher today, 26 August 2009, helped by solid US data on Tuesday and a stronger Wall Street. Key benchmark indices in China, South Korea, Japan, Hong Kong, Singapore were up by between 0.16% and 1.52%. However, Taiwan's Taiwan Weighted slipped 1.19%

Japan's Nikkei 225 index rose 1.37% were supported by news that the country's merchandise trade surplus in July 2009 widened, from the year ago period, for the second straight month.

On Wall Street, stocks finished modestly higher on Tuesday, 25 August 2009 as better-than-expected economic reports on housing prices and consumer confidence and news of Ben Bernanke's reappointment as the Fed Chief for a second term generated some upbeat sentiment.

The three major indices closed at 2009 highs, although they were off the intraday highs reached after the stronger-than-expected economic data. The Dow Jones Industrial Average advanced 30.01 points, or 0.32%, to 9,539.29. The Standard & Poor's 500 Index gained 2.43 points, or 0.24%, to 1,028.00. The Nasdaq Composite Index rose 6.25 points, or 0.31%, to 2,024.23.

The Consumer Confidence Index for August 2009 jumped to 54.1, rising for the first time in three months. This marked an improvement from an upwardly revised 47.4 in July 2009. Meanwhile, the S&P/Case-Shiller home-price index declined 15.4% in June 2009 from a year earlier, less than estimated by economists.

Trading in US index futures showed the Dow could fall 15 points at the opening bell on Wednesday, 26 August 2009.

Closer home, the Central Board of Direct Taxes (CBDT) has advised its field formations to scrutinise all cases in which companies have amortised foreign exchange losses under the one-time discretion allowed by the government through an amendment to Accounting Standard 11 (AS-11).

The temporary relief on AS-11 was permitted on 31 March 2009 against the background of the sharp depreciation of the rupee against the dollar, euro, pound and Swiss franc in 2008. As a result of this, several companies with significant foreign currency loans had to suffer mark-to-market losses.

Under AS-11, gains or losses from foreign exchange fluctuations have to be recognised in the profit and loss account. The amendment to AS-11 provided an option to capitalise or amortise exchange differences on long-term foreign currency positions (typically overseas borrowings) with retrospective effect from December 2006. This was done by adding or deducting such losses from the cost of fixed assets if, and only if, the money was borrowed for acquiring an asset. This treatment enabled companies to make adjustments directly on the balance-sheet by bypassing provisioning in the profit and loss account.

At 10:25 IST, the BSE 30-share Sensex was up 111.30 points or 0.71% to 15,798.81. The Sensex opened 74.62 points higher at 15763.09. The barometer index gained 129.37 points at the day's high of 15,817.84 in early trade. The Sensex rose 48.76 points at the day's low of 15,737.23 in early trade.

The S&P CNX Nifty rose 30.70 points or 0.66% to 4,690.05

The market surged in the past four days supported by positive global cues. The BSE Sensex jumped 878.83 points or 5.93% in the past four trading days from 14,809.64 on 19 August 2009 to 15688.47 on Tuesday, 25 August 2009.

The BSE clocked a turnover of Rs 1296 crore at 10:25 IST

The market breadth, indicating the overall health of the market, was strong. On BSE, 1276 shares advanced as compared with 286 that declined. A total of 35 shares remained unchanged.

Among the 30-member Sensex pack, 22 advanced while the rest slipped.

IT stocks dominated gainers from the Sensex pack on solid readings for US home prices and US consumer confidence on Tuesday. US is the key market for Indian IT firms.

India's largest software services exporter TCS jumped 4.44% to Rs 551.05 and was the top gainer from the Sensex pack. India's second largest software services exporter Infosys rose 3.68%.

India's third largest software services exporter Wipro gained 3.21%, extending Tuesday's 3.7% advance triggered by reports Australian beer and wine giant Fosters Group will outsource much of its internal IT department to Wipro, with the transition to occur before the end of the year. As per reports, Foster's is planning to move its internal service desk to India by November 2009, with the rest of the support teams spread out in different locations.

HCL Technologies rose 1.79% after the company's net profit rose 26.45% to Rs 192.94 crore on 9% rise in total income to Rs 1191.71 crore in Q4 June 2009 over Q3 March 2009. The company announced its result before market hours on Tuesday, 25 August 2009.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) rose 0.67% to Rs 2037.40. A panel of ministers has reportedly decided to protecting NTPC's interests with regard to a gas dispute. As per reports, the government has decided to spell out its position in the two disputes involving the Krishna-Godavar Basin D6 block gas supplies — NTPC-Reliance Industries Ltd (RIL) and RIL-Reliance Natural Resources Ltd (RNRL).

On Friday, 21 August 2009 the government had clarified that it was not correct that it would earn Rs 500 crore from the KG basin gas, as claimed by Anil Ambani in the media. It said it would get Rs 84,000 crore.

The dispute between Reliance Industries and Reliance Natural Resources (RNRL) is centered around the price and supply of gas from KG basin operating by RIL to RNRL for the power plants of Anil Dhirubhai Ambani group. NTPC-RIL case also deals with price and supply of gas to NTPC's power plants from RIL. NTPC was up 0.93% while RNRL rose 1.04%

India's largest truck marker by sales Tata Motors was up 0.36%. At its annual general meeting in Mumbai on Tuesday, 25 August 2009, Ratan Tata, Chairman of Tata Motors, said that Tata Motors and Jaguar Land Rover will come through this tough period as leaner and more cost-efficient companies.

Bank stocks rose on bargain hunting after recent slide. India's biggest bank in terms of branch network State Bank of India (SBI) rose 0.74%.

India's largest private sector bank by net profit ICICI Bank gained 0.49% mirroring a 1.16% rise in its ADR on Tuesday, 25 August 2009.

But India's second largest private sector bank by net profit HDFC Bank fell 0.83% despite a 0.61% rise in its ADR on Tuesday, 25 August 2009.

India's top car maker by sales Maruti Suzuki India lost 1.22% on profit booking after four straight days of rise.

Markets lose further ground; Sensex down 48.81 pts

Markets traded on a negative note. The 30-share BSE Sensex lost its 10,000 mark sheen after touching a high of 10.127.09. Selective buying and selling was witnessed in frontline stocks.

Major gainers in the sectoral indices were BSE Health Care (1.57%), Metal (1.41%) and Bankex (1.10%). Meanwhile, BSE IT (1.64%), Realty (0.68%) and FMCG (0.63%) were major losers in the 30-share index.

BSE Midcap and Smallcap are up by 0.97% and 0.58% respectively.

Meanwhile, Asian stocks witnessed a mixed trend. Japanese benchmark index Nikkei advanced 58.83 points, or 0.68%, to trade at 8,695.16 on the other hand, Hong Kong`s Hang Seng index shed 63.96 points, or 0.45%, to trade at 14,045.02

Asian stocks, meanwhile witnessed a mixed trend. Japanese benchmark index Nikkei advanced 58.83 points, or 0.68%, to trade at 8,695.16 on the other hand, Hong Kong`s Hang Seng index shed 63.96 points, or 0.45%, to trade at 14,045.02. (11:15 a.m)

Currently, the 30-share index Sensex is trading down 48.81 points, or 0.49%, at 9,954.29, after touching a high of 10,127.09 and a low of 9,914.29. Meanwhile the broad based Nifty is trading lower by 6.45 points, or 0.21%, at 3,075.80, after hitting a high of 3,123.35 and a low of 3,055.90. (10.56 a.m.)

The 30-share index, BSE Sensex opened with a gain of 33.70 points, at 10,036.80. In the previous day session, the Sensex closed with a gain of 335.20 points, or 3.47%, while the NSE Nifty climbed by 97.90 points, or 3.28%.

Overall market breadth was however positive. Out of the total 1,953 shares traded at BSE, 1,101 advanced, 780 declined while 72 remained unchanged.

Major gainers in the 30-share index were Tata Steel (3.91%), Larsen & Toubro (1.71%), Hindalco Industries (1.63%) and Sun Pharmaceuticals (1.56%).

On the other hand, Wipro (2.61%), Infosys Technologies (2.44%), HDFC (2.07%) and TCS (2.06%) were the major losers in the Sensex.

Sensex hovers above 10,000; breadth strong

Key benchmark indices surged in early volatile trade on overnight rally in US stocks, on data showing stepping up of buying by foreign funds and on expectations of a further easing of the monetary policy. The barometer index BSE Sensex which fell below the psychological 10,000 level in early trade soon regained that level.

Banking and metal stocks gained even as IT stocks declined. The BSE 30-share Sensex was up 79.13 points, or 0.79%, off close to 170 points from the day's low. Profit booking might emerge in the near term after a recent solid surge in share prices. The BSE Sensex had risen 1,842.70 points or 22.58% in eleven trading sessions to 10,003.10 on 26 March 2009 from a three-year closing low of 8,160.40 on 9 March 2009.

Derivatives contracts for March 2009 series which expired on Thursday, 26 March 2009 painted a mixed picture in terms of rollovers. As per reports, marketwide rollover positions from March 2009 series to April 2009 stood at 77% compared with 75% in the previous series. Nifty rollover was 70% from 76%.

Asian markets were mixed today, 27 March 2009 with Japan's Nikkei average striking a 2-1/2-month high led by exporter shares on a weakening yen and after US data sparked optimism about an economic recovery. Key benchmark indices in China, Taiwan and Japan were up by between 0.54% and 0.69%. However key benchmark indices in Hong Kong, Singapore, South Korea fell by between 0.45% and 0.93%.

Trading in US index futures indicated the Dow could fall 21 points at the opening bell on Friday 27 March 2009. US markets rallied on Thursday, 26 March 2009 as investors were encouraged by decent demand for a $24-billion auction of seven-year treasury notes and better-than-expected quarterly earnings from Best Buy. The Dow gained 174.75 points, or 2.25%, at 7,924.56. The S&P 500 index added 18.98 points, or 2.33%, to 832.86. The Nasdaq advanced 58.05 points, or 3.8%, to 1,587.

US GDP was down 6.3% in the fourth quarter beating economists expectation of a 6.2% fall.

Closer home, Reserve Bank of India Governor D Subbarao on Thursday, 26 March 2009 said the slowdown in India's economic expansion has been steeper than previously estimated and the challenge will be to arrest the moderation in growth. He said a painful adjustment was inevitable until the economy recovered and stimulus measures were the right step in the current extraordinary situation.

The RBI governor said there is a cost to further fiscal stimulus and more borrowings will put pressure on credit markets. The RBI governor said 2009/10 will be a challenging year unless business confidence and investment revived, and said earlier cuts in policy rates needed to flow through to the economy. "We set the policy rates but policy rates have to transmit through the banks," Subbarao said.

Inflation based on the wholesale prices rose 0.27% in the 12 months to 14 March 2009, a record low and below the previous week's annual rise of 0.44%, data released by the government during trading hours on Thursday, 26 March 2009 showed. The fall in headline inflation to a record low has raised expectations of further easing of the monetary policy by the Reserve Bank of India (RBI) to boost demand in the economy.

Retail inflation is, however, ruling firm even as the whole sale price inflation has touched a record low. Retail inflation as measured by the Consumer Price Index for farm labourer (CPI-AL) and rural labourers (CPI-RL) eased to 10.79% in February 2009, a marginal dip from 11.62% and 11.35% respectively in January 2009. CPI-AL and CPI-RL were at 6.38% and 6.11% in corresponding period last year.

Annual inflation for food articles remains high even though it has eased from the 10 year high of 11.64% witnessed in first week of January 2009. Inflation for food articles stood at 7.35% for first week of March 2009 with double-digit price rise for many items including sugar and gur, pulses and cereals. At the time of announcing a reduction in key short-term interest rates, the RBI said early this month that though consumer price inflation has remained at elevated level due to increase in primary articles prices, it is expected to decline with a lag effect due to sharp fall in the wholesale price inflation.

Prime Minister Manmohan Singh on Tuesday, 24 March 2009 said India's economy will revive in a big way in six to seven months as stimulus packages start to take effect. On the same day, Planning Commission Deputy Chairman Montek Singh Ahluwalia scaled down the GDP (gross domestic product) growth projection for the current fiscal to 6.5% from the 7.1% increase estimated by the government earlier during the year, owing to the ongoing global crisis.

Meanwhile, there are sings that the credit flow to businesses is improving. During the fortnight ended 13 March 2009, loans sanctioned by scheduled commercial banks (SCBs), including regional rural banks, went up by Rs 22,423 crore. This was the third fortnight in a row when credit flow went up. Earlier, an extreme risk aversion by banks had chocked credit flow to the industry - the lifeline of business.

Earlier the global financial crisis ends and sooner the risk appetite of global investors and global companies improves, better it will be for India Inc. An increase in risk appetite of global investors/global companies will help Indian firms raise overseas funds required for business expansion. The global financial crisis has chocked the overseas funding route for Indian firms.

Raising funds could become difficult for small and medium enterprises (SMEs) with new lending regulations for banks, popularly known as Basel II norms coming into practice from 1 April 2009. All business units, irrespective of their size, will need to take ratings for their enterprises to secure working capital, loans, and other funds from banks.

Lack of funding has hit a slew of long-gestation infrastructure projects in India. World Bank Chief Economist & Senior Vice-President, Dr Justin Yifu Lin, on 13 March 2009, said if India can improve its infrastructure such as electricity, power, transportation and port facilities, it will be well on its path to achieve a 9-10% growth.

Meanwhile, foreign institutional investors have stepped up buying of Indian stocks which follows easing of FII selling vigour in the past few days. FIIs bought shares worth a net Rs 2,494.70 crore in nine trading sessions from 13 March 2009 to 25 March 2009. According to provisional data on NSE, foreign institutional investors (FIIs) were net buyers worth of shares worth a massive Rs 1290.74 crore on Thursday, 26 March 2009. On the same day, domestic institutional investors (DIIs) sold shares worth Rs 461.87 crore

Foreign funds can take solace in the recent sharp rebound in the rupee against the dollar. However, the currency has been volatile. A recent sharp slide in the rupee to a record low had resulted in a depreciation in the value of FIIs equity portfolio to the extent of the fall in rupee. The rupee hit a record low beyond 52 per dollar early this month.

Indian bond and currency markets are closed on Friday for a local holiday. Trading resumes on Monday, 30 March 2009. The partially convertible rupee ended at 50.59/61 per dollar on Thursday off a high of 50.46 but up 0.3 % from the previous close.

Domestic institutional investors have been absorbing heavy selling by foreign funds witnessed in first two months of calendar year 2009. Mutual funds are likely give support to prices to prop-up year end net asset values (NAVs). The financial year ends on 31 March 2009.

The recent steep volatility in the currency does not augur well for corporate India as it may result in hedging losses for some firms.

Meanwhile, the National Advisory Committee on Accounting Standards (Nacas), has reportedly favoured suspending for two years a key rule that requires firms to mark-to-market (MTM) foreign exchange assets and liabilities, a decision which is favourable for corporate India.

Accounting Standard-11 mandates MTM provisioning in the P&L a/cs for forex-related gains and losses. It requires that forex assets & liabilities be recorded at a fair value on the date of preparation of the balance sheet. The demand to suspend this rule, known in accounting circles as AS-11, was made by the Confederation of Indian Industry (CII) on grounds that it could severely distort the earnings of many companies. It was contended that this accounting standard, designed to address normal conditions, should be suspended for the time being, as the present market conditions were not normal.

The upside on the domestic bourses will be capped in the next two months due to political uncertainty ahead of parliamentary election to be held between mid-April 2009 to mid-May 2009. More so at a time when it is highly unlikely that either Congress or BJP will come to power on its own, i.e., without the support of other small/regional parties. Early estimates point a fractured mandate. An alliance led by the Congress party is ahead in pre-poll surveys carried out by several polls.

But in a move which could undermine the chances of a Congress-led alliance getting more seats in the election, RJD supremo Lalu Prasad has announced candidates for 28 of the 40 constituencies in Bihar including from the three seats where Congress has sitting MPs. RJD is one of the key constituents of the current Congress-led UPA government at the Centre.

The Congress, meanwhile, has reported sealed a seat-sharing pact with the Nationalist Congress Party (NCP) in the populous Maharashtra state. Relations between the two parties have been prickly as the NCP negotiated with opposition parties to undercut Congress and boost its leader's prime ministerial ambitions. Congress will stand for 26 seats in the state and the NCP for 22. The allies are weighing up their options for a similar deal outside the state.

The Congress party on Tuesday 24 March 2009 said it would extend interest relief to farmers and build on the national job guarantee scheme. The focus on populist measures by Congress may weigh on the stock market sentiment especially at a time when the fiscal deficit has risen sharply. Releasing the party manifesto for the election, the Congress party on Tuesday said it would maintain government control over state-run firms in the manufacturing and finance sectors.

As per reports, BJP's manifesto is likely to be even more populist than that of the Congress party. The BJP looks set to sell rice to families below the poverty line at the hugely subsidised price of Rs 2 a kilo. Congress has already promised to sell 25 kilos of wheat or rice per month at Rs 3 a kilo.

A group of smaller political parties, including the communists, have formally launched a Third Front in a bid to provide an alternative to the two main parties viz. the Congress and the BJP.

A latest jolt to the Congress party came from a decision of the regional party in Tamil Nadu viz. the PMK on Thursday, 26 March 2009, to join hands with the All India Anna Dravida Munnetra Kazhagam (AIADMK). PMK is a part of the ruling Congress-led United Progressive Alliance at the centre. The PMK's decision to join AIADMK could give impetus to the Third Front if the PMK and AIADMK join it.

At 10:20 IST, the BSE 30-share Sensex was up 79.13 points, or 0.79%, to 10,081.78. At the day's high of 10,091.18, the Sensex rose 88.08 points in early trade, its highest since 7 January 2009. At the day's low of 9,914.29, the Sensex fell 88.81 points in early trade.

The S&P CNX Nifty was up 9.65 points or 0.31% to 3,091.90.

The market breadth, indicating the overall health of the market, was strong on BSE with 937 shares advancing as compared with 555 that declined. A total of 56 shares remained unchanged.

From the 30 stock Sensex pack 19 stocks gained while the rest fell.Larsen & Toubro, Reliance Communications and Ranbaxy Laboratories rose by between 2.63% to 3.41%. While, Maruti Suzuki India, Tata Power Company and ITC fell by between 0.46% to 0.67%.

India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) fell 0.51% to Rs 1,559 on profit taking after recent solid surge. The company is reportedly expected to start natural gas production from its Krishna Godavari (KG) basin field in early April 2009.

RIL's advance tax payment fell 16.47% to Rs 370 crore in Q4 March 2009 over Q4 March 2008.

Banking stocks extended gains after Reserve Bank of India (RBI) on Wednesday 25 March 2009 issued fresh norms for the treatment of provisions for restructured accounts, standard assets, and non-performing assets (NPAs), a move that will help improve the financial health of banks. India's largest bank in terms of assets and branch network State Bank of India rose 2.3%. Its advance tax payment jumped 27.64% to Rs 1810 crore in Q4 March 2009 over Q4 March 2008.

India's largest private sector bank by net profit ICICI Bank rose 2.03%. Its American depository receipts (ADR) rose 4.97% on Thursday 26 March 2009. ICICI Bank's advance tax payment remained unchanged at Rs 250 crore in Q4 March 2009 when compared to Q4 March 2008.

India's second largest private sector bank by operating income HDFC Bank rose 0.34%. Its ADR rose 1.81% on Thursday. Its advance tax payment rose 10% to Rs 275 crore in Q4 March 2009 over Q4 March 2008.

India's biggest dedicated housing finance firm by operating income HDFC rose 3.51%, extending gain for the third straight day after it announced a 50 basis points reduction in its retail prime lending rate (RPLR) to 14% effective Wednesday 25 March 2009.

The new RBI norms are expected to improve capital adequacy and bring down the level of net NPAs. Under the revised norms, the banks can use the provisions made for decline in the fair value of restructured advances (standard assets and NPAs) for netting from relative assets.

Outsourcing focussed IT firms fell after US based technology outsourcing and consulting firm Accenture reported a drop in quarterly sales and lowered its full-year profit outlook due to a stronger dollar and a slower global economy. India's largest software services exporter by sales TCS fell 1.65%. The company's advance tax payment fell 54.3% to Rs 53 crore in Q4 March 2009 over Q4 March 2008.

India's second largest software services exporter Infosys Technologies fell 1.86%. Its ADR rose 4.25% on Thursday. Recent reports said it may win a large IT project from the government, which will run on a transaction-based pricing model, similar to the passport processing contract its larger rival Tata Consultancy Services (TCS) won last year. The contract is among the many large IT contracts that are up for bidding from government departments or public sector undertakings, reports suggest.

India's third largest software services exporter, Wipro fell 0.82%. Its ADR gained 4.27% on Thursday. Recently its unit Wipro Infotech won an outsourcing contract worth Rs 1,182 crore from the Employees State Insurance Corporation (ESIC).

Metal stocks gained after measure of six primary metals traded on the London Metal Exchange rose 2.6% on Thursday, the first gain in three days. Steel Authority of India, Tata Steel, Hindustan Zinc and Hindalco Industries rose by between 2.19% to 3.25%.

Market jumps

The key benchmark indices spurted in mid-morning trade to hit new intraday high after a bout of volatility in early trade. The BSE Sensex was up 324.37 points or 3.17%. The central bank's rate cut, higher Asian markets and short covering on the stock market regulator Securities & Exchange Board of India (Sebi)’s warning to foreign funds against overseas lending and borrowing of Indian securities, boosted the domestic bourses.

IT stocks jumped on weak rupee. Rate sensitive banking and realty stocks rose. Index heavyweight Reliance Industries spurted. Jaiprakash Associates rose more than 10%. The market breadth was strong.

Sebi has disapproved of the overseas lending and borrowing activity of FIIs and the consequent selling pressure in the cash market in India. The Sebi warning to FIIs against overseas lending and borrowing came after the data showed FIIs had lent equities worth Rs 348 crore to overseas entities for the purpose of short selling, during 10 October-14 October 2008.

Fall in interest rate boosts stocks as it results in lower borrowing costs for corporates. The Reserve Bank of India (RBI), on Monday, 20 October 2008, cut the repo rate, by 100 basis points to 8%, with immediate effect. The repo rate is the rate at which the RBI provides funds to banks against the collateral of government bonds for a day to three days.

At 11:21 IST, the BSE 30-share Sensex was up 324.37 points or 3.17% to 10,547.46. The index surged 340.28 points at the day's high of 10,563.37 in mid-morning trade. The Sensex rose 27.14 points at day’s low of 10,250.23 in early trade.

The S&P CNX Nifty was up 86 points or 2.75% to 3,208.80.

The BSE Mid-Cap index was up 1.8% at 3,569.57 and The BSE Small-Cap index was up 1.74% at 4,184.37. Both the indices underperformed the Sensex.

The market breadth was strong. On BSE, 1,324 shares advanced as compared to 682 that declined. 55 shares remained unchanged.

India’s largest private sector company by market capitalization and oil refiner Reliance Industries rose 4.58% to Rs 1,381.05.

Jaiprakash Associates (up 10.49% to Rs 74.80), Stelite Industries (up 7.44% to Rs 291.60), Reliance Communications (up 7.04% to Rs 248.45), Reliance Infrastrucutre (up 7.03% to Rs 515.50) were the major gainers from the Sensex pack.

Mahindra & Mahindra (down 4.76% to Rs 397.40), Grasim Industries (down 0.48% to Rs 1,184.80) and Bharti Airtel (down 0.84% to Rs 702) ITC (down 0.48% to Rs 164.20) were the major losers from the Sensex pack.

IT stocks gained on fall in rupee and overnight spurt in American depository receipts (ADRs). BSE IT index rose 4.13% and was the third biggest gainer form the sectoal indices on BSE. p> India's third largest IT exporter by sales Satyam Computer Services rose 5.43. Its ADR jumped 6.46%. The company raised its earnings guidance in rupee terms at the time of announcing Q2 September 2008 results on Friday, 17 October 2008.

India's second largest IT exporter by sales Infosys rose 4.95. Infosys ADR gained 7.94%. India's largest IT services provider by sales Tata Consultancy Services jumped 7.21%. India's fourth largest IT exporter by sales Wipro rose 5.11%. Wipro ADR rose 0.84%

Rupee eased to 48.98 against dollar on Monday compared with 48.85 per on Friday. A weak rupee results in higher revenues for IT companies as they earn most of their revenues in dollar terms.

Banking majors extended yesterday’s (20 October 2008) gains on hopes lower rates will boost lending. HDFC Bank, ICICI Bank and State Bank of India rose between 1.955% to 4.38%.

The BSE's banking sector index Bankex rose 2.59%. ICICI Bank, State Bank of India and HDFC Bank have a weightage of 24.21%, 22.44% and 20.55%, respectively, in the Bankex.

India’s largest home loan lender by operating income HDFC rose 2.75%.

Most realty stocks rose today after yesterday’s slide as cut in lending rates will spur demand for residential properties. The BSE Realty index rose 4.8% and was the major gainer from the sectoral indices on BSE. Out of 14 real estate stocks from BSE Realty index, 12 stocks rose rest declined. Realty majors, Indiabulls Real Estate, DLF, Unitech rose by between between to 3.93% to 12.49%.

DLF, India bulls Real Estate, Unitech have a weightage of 42.53% 22.09% and 11.03%, respectively, in the BSE Realty index.

PSU OMC stocks fell after crude oil rose for a third day on signs that the Organization of Petroleum Exporting Countries will reduce production to halt a 50% drop in prices since July 2008. BPCL, HPCL and Indian Oil Corporation were down by between 0.77% to 2.65%.

State-run oil marketing firms suffer revenue loss on domestic sale of petrol, diesel, LPG and kerosene at a controlled price. Crude oil for November 2008 delivery rose $1.44, or 1.9 % to $75.69 a barrel today.

India’s largest commercial vehicle maker by sales Tata Motors rose 2.11% despite reports of rights issue getting a poor response.

EID Parry India rose 5.54% on board meeting on 29 October 2008, to consider a proposal for buy back of equity shares.

Punj Lloyd surged 3.14% on overseas unit bagging an order worth $22.48 million.

Sun TV Network surged 5.79%, on board meeting on 30 October 2008 to consider buy back of equity shares

ECE Industries surged 11.83% on board meeting on 31 October 2008 to consider rights issue.

Most of the Asian stocks were higher today, 21 October 2008, triggered by overnight surge in US stocks. Key benchmark indices in South Korea, China, Japan, Taiwan and Singapore were up by between 0.22% to 2.45%. Key benchmark indices in Hong Kong fell by 0.69%.

US stocks rallied on Monday after the Federal Reserve's chairman backed more government spending to help the economy and credit market conditions showed further signs of improvement.

The BSE Sensex rose 2.48% on Monday boosted by the repo rate cut by the Reserve Bank of India during trading hours.

Market up 450 points

The market continued its upward journey in afternoon trade as European markets which opened after Indian market, nudged higher in early trade. Market had spurted earlier in the day tracking strong Asian markets. IT, banking and FMCG stocks rose. ITC and State Bank of India were major gainers from the Sensex pack. Maruti Suzuki India and Bharat Heavy Electricals were major losers from the Sensex pack. The market breadth was positive. All the sectoral indices on BSE were in green.

At 13:22 IST, the 30-share BSE Sensex was up 461.38 points or 2.99% at 15,801.30. At the day’s high of 15,823.12, the Sensex rose 480 points in afternoon trade. At the day’s low of 15,321.56 Sensex lost 21.56 points in early trade.

The broader based S&P CNX Nifty was up 135.05 points or 2.91% at 4,782.05.

In Europe, key benchmark indices in France, Germany’s DAX and UK were up by between 0.39% to 0.81%.

Asian stocks nudged higher today, 7 April 2008, as a worse-than-expected US payrolls data on Friday, 4 April 2008, which showed a fall of 80,000 jobs in March 2008, raised expectations of further interest rate cut by the US Federal Reserve. Key benchmark indices in Hong Kong, China, Japan, Singapore, South Korea, and Taiwan were up by between 0.4% to 4.45%. US equities held steady on Friday after the poor showing in employment and despite worries about banking sector earnings.

Meanwhile, Securities and Exchange Board of India (Sebi) chairman C.B. Bhave today said the Sebi will hold a meeting with foreign funds and their custodians to discuss issues regarding the proposed margins imposed on institutional investors. Sebi had said last month that institutional investors will be required to pay a margin on trades executed in the cash market by the next day, effective from 21 April 2008.

The market breadth was strong: on BSE 1410 shares advanced as compared to 1036 that declined. 62 shares remained unchanged.

The BSE Mid-Cap index up 1.18% to Rs 6,337.06 and BSE Small-Cap index up 0.64% to 7,764.12.

FMCG stocks spurted. United Spirits (up 4.34% to Rs 1,655.20), ITC (up 5.83% to Rs 212.50) and Hindustan Unilever (up 4.43% to Rs 252.50) edged higher.

Banking stocks galloped. ICICI Bank (up 5.7% to Rs 806.50), State Bank of India (up 5.77% to Rs 1,698) and HDFC Bank (up 1.85% to Rs 1,316) edged higher.

IT stocks rose. India’s largest IT services exporter by sales Tata Consultancy Services rose 4.93% to Rs 913.10. The company has signed a new multi-year contract with Chrysler LLC to provide a comprehensive portfolio of IT services. Wipro (up 5.39% to Rs 438), Satyam Computer Services (up 2.97% to Rs 437.90) and Infosys (up 2.5% to Rs 1,520) edged higher.

India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries rose 2.9% to Rs 2,405. As per reports, Reliance Industries is planning to enter into the rig manufacturing business besides investing $2.5 billion to enter into petrocoke gasification.

India’s second largest telecom services provider by sales Reliance Communications (RCom) rose 2.27% to Rs 511.50. It has reportedly formed a joint venture with a local firm to launch GSM mobile services in Sri Lanka by this year.

India's largest state-run oil exploration firm in terms of revenue ONGC rose 2.99% to Rs 1,036.ONGC Videsh (OVL), the overseas arm of Oil and Natural Gas Corporations (ONGC), will reportedly sign an agreement on 8 April 2008 to take a 40% stake in the San Cristobal oilfield in Venezuela. OVL will make a total investment of $355.7 million comprising signature bonus of $173.1 million for the stake, the reports added.

India’s largest truckmaker by sales Tata Motors rose 2.62% to Rs 629.70 after reports of company raising the price of trucks and buses by an average of 3.5 % from 1 April 2008 to offset higher raw material costs.

Bharti Airtel (up 5.23% to Rs 825), Ranbaxy Laboratories (up 5.51% to Rs 483.50), Jaiprakash Associates (up 4.29% to Rs 230.75) and DLF (up 2.34% to Rs 622) edged higher from the Sensex pack.

Maruti Suzuki India (down 1.52% to Rs 752.60), Ambuja Cements (down 0.25% to Rs 118.80) and Reliance Energy (down 0.29% to Rs 1,163) and Bharat Heavy Electricals (down 1.72% to Rs 1608) edged lower from the Sensex pack.

Sita Shree Food Products was trading at a premium of 50.83% at Rs 45.25 on BSE on its debut today. The company had priced the IPO at the top end of the Rs 27 to Rs 30 price band.

Petron Engineering Construction rose 4.87% to Rs 219 after it secured a contract worth Rs 84.27 crore from Bharat Oman Refineries for mechanical works at one of its refineries.

As per provisional data, foreign funds sold shares worth a net Rs 848.57 crore on Friday, 4 April 2008. Domestic funds bought shares worth a net Rs 579.84 crore.

Foreign funds were net sellers of index futures to the tune of Rs 517.24 crore and they net sold index options worth Rs 117.37 crore on Friday. FIIs were net sellers of stock futures to the tune of Rs 139.72 crore. They were net sellers of stock options to the tune of Rs 3.20 crore.

Sensex plunged 489.43 points or 3.09% at 15,343.12 on Friday, 4 April 2008, on fears of monetary tightening by the Reserve Bank of India after the latest data showed a surge in inflation to a 3-year high of 7% in late March 2008.

The next major trigger for the market is Q4 March 2008 results of India Inc. Analysts will be closely watching what the company managements have to say about the outlook for the year ending March 2009 (FY 2009). Analysts will also scrutinize disclosures that companies may make regarding foreign exchange derivatives products that they have bought on the advice of their bankers. A steep decline in the value of the US dollar against the Japanese Yen and the Swiss Franc hit Indian corporates which have used these two currencies (Yen and Franc) extensively to swap their rupee denominated debt.

As regards Q4 March 2008 results, Morgan Stanley expects 23% growth in net earnings of 104 out of 108 firms in its Indian coverage universe in Q4 March 2008 over Q4 March 2007.

Market plunges on inflation worries

The market plunged in afternoon trade extending earlier losses, hit by the latest data which showed a further rise in inflation. Bharat Heavy Electricals (Bhel) and Larsen & Toubro were major losers whereas Ranbaxy Laboratories was lone gainer from the Sensex pack. Banking stocks fell after concenrs of possible Reserve Bank of India intervention to rein in inflation. IT, capital goods and power stocks declined. The market breadth was weak. European markets which opened after Indian market, nudged higher in early trade.

Prospects of further monetary tightening by the Reserve Bank of India (RBI) following a surge in inflation is a cause for concern at a time when the already high rates are pinching the domestic industry. The surge in inflation has triggered fears that RBI my raise cash reserve ratio (CRR). An increase in CRR would suck out liquidity immediately pushing up the cost of funds and thereby curbing demand.

At 13:21 IST, the 30-share BSE Sensex was down 473.45 points or 2.99% at 15,358.87. At the day’s low of 15,353.31 Sensex lost 479.24 points in afternoon trade. At the day’s high of 15,896.09, the Sensex rose 63.54 points in early trade.

The broader based S&P CNX Nifty was down 126.95 points or 2.66% at 4,644.75.

India's wholesale price index (WPI) rose 7% in the 12 months to 22 March 2008, accelerating from the previous week's rise of 6.68%. The rate is the highest since 4 December 2004.

The market breadth turned weak: on BSE 764 shares advanced as compared to 1788 that declined. 56 shares remained unchanged.

The BSE Mid-Cap index down 1.66% to Rs 6,281.48 and BSE Small-Cap index down 1.37% to 7,733.04.

India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries was down 1.99% to Rs 2,346.

Capital goods stocks extended losses. Bharat Heavy Electricals (down 5.78% to Rs 1,653.60) and Larsen & Toubro (down 5.98% to Rs 2,679.80) edged lower. Suzlon Energy rose 1.1% to Rs 275.

Banking stocks plunged after inflation data. HDFC Bank (down 2.53% to Rs 1,291), ICICI Bank (down 4.56% to Rs 752) and State Bank of India (down 2.11% to Rs 1,603) edged lower.

Power stocks declined. Tata Power Company (down 3.84% to Rs 1,113.10), Reliance Energy (down 3.74% to Rs 1,145), NTPC (down 1.52% to Rs 191.30) and Reliance Power (down 1.55% to Rs 324.50) edged lower.

IT stocks declined after yesterday’s surge. Infosys (down 2.68% to Rs 1,480.10), Satyam Computer Services (down 2.43% to Rs 417.95), Wipro (down 4.32% to Rs 416.50) and Tata Consultancy Services (down 2.65% to Rs 862) edged lower.

HDFC (down 4.09% to Rs 2,343), ), Mahindra & Mahindra (down 4% to Rs 618), Tata Motors (down 3.25% to Rs 608.25), ONGC (down 2.8% to Rs 992), Jaiprakash Associates (down 2.96% to Rs 226.50) and Cipla (down 3% to Rs 213.35) edged lower from Sensex pack.

Ranbaxy Laboratories rose 2.27% to Rs 457 and was the lone gainer from Sensex pack.

ACC shed 0.83% to Rs 827.05 even as the company said its cement shipments rose 4.9% to 1.92 million tonnes in March 2008 over March 2007.

European markets were in green. France’s CAC, Germany’s DAX and UK’s FTSE 100 rose between 0.14% to 0.32%.

Japan’s Nikkei edged 0.72% lower in cautious trade today, 4 April 2008, ahead of US jobs data later in the session that will provide fresh clues on the world's largest economy. Stock markets in China, Taiwan and Hong Kong were closed today for the Tomb Sweeping Day holiday.

US stocks edged up on Thursday, after a report that Merrill Lynch & Co does not need to raise more capital eased fears of a deeper credit crisis and offset concern that monthly jobs data would point to a recession. The Dow Jones Industrial Average gained 20.20 points or 0.16% at 12,626.03. The tech-laden Nasdaq Composite index rose 1.90 points or 0.08% to 2,363.30.

As per provisional data, foreign funds sold shares worth a net Rs 393.41 crore on Thursday, 3 April 2008. Domestic funds bought shares worth a net Rs 265.39 crore.

Foreign institutional investors (FIIs) were net buyers of Rs 132.39 crore in the futures & options segment on Thursday. According to data released by the NSE, FIIs were net buyers of index futures to the tune of Rs 248.96 crore. They sold index options worth Rs 86.22 crore. They were net sellers of stock futures to the tune of Rs 28.70 crore and sold stock options worth Rs 1.66 crore.

Meanwhile, the Bombay Stock Exchange (BSE) today launches the trading of Sensex-based futures on the US Futures Exchange (USFE) in Chicago. The contract will have a notional value of $40,000 and a tick value of $10. The clearing and settlement will take place through The Clearing Corporation, Chicago.

Stock-specific activity may rule the roost on the bourses depending on the guidance given by company managements for FY 2009 at the time of announcing Q4 March 2008 results. IT bellwether Infosys Technologies kickstarts the earnings reporting season on 15 April 2008.

Weak market breadth

The market remained weak in afternoon trade on weak global cues. An unexpected contraction in the service sector in the US once again sparked fears the economy may sink into recession, hitting Asian stocks.

At 13:22 IST, the 30-share BSE Sensex was down 583.25 points or 3.13% at 18,077.91. Sensex hit a high of 18,274.15 in mid-morning trade. At the day's high, Sensex was down 389.01 points for the day. Sensex touched a low of 17,936.01 in initial trade. At day’s low it shed 727.15 points.

The broader CNX S&P Nifty was down 182.35 points or 3.33% at 5,301.55.

The BSE Mid-Cap index was down 1.81% at 7,924.95, while the BSE Small-Cap was down 1.35% at 10,325.15.

The market breadth was weak: on BSE 963 advanced as compared to 1,726 that declined. 39 stocks remained unchanged.

Consumer Durables stocks declined. Rajesh Exports (down 8.99% to Rs 136.75), Titan Industries (down 6.4% to Rs 1,165), Videocon Industries (down 2.88% to Rs 433.50) and Blue Star (down 1.77% to Rs 486) edged lower.

Software services exporters declined for a second day in a row due to a gloomy economic outlook in the United States, which contributes to more than half of their revenue. Satyam Computer Services (down 5.98% to Rs 412), Wipro (down 5.48% to Rs 429.65), Infosys (down 5.91% to Rs 1,516.50) and Tata Consultancy Services (down 5.31% to Rs 899) edged lower.

Metal stocks extended losses in early afternoon trade. Sterlite Industries (down 6.49% to Rs 780.75), National Alluminium Company (down 5.75% to Rs 391.80), Hindalco Industries (down 4.67% to Rs 173.45), Steel Authority of India (down 4.11% to Rs 223) and Tata Steel (down 2.53% to Rs 797.10) edged lower.

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries fell 2.9% at Rs 2,540.20. As per reports, Reliance Industries (RIL) two wells in D6 block in the Krishna Godvari (KG) basin have hit a technical snag. The loss to wells runs into about $175 million. RIL executive, however, said the snags have been rectified and that the problems would not delay production of natural gas from the D6 block.

India’s largest private sector bank by assets ICICI Bank fell 3.01% to Rs 1,153.65.

India’s largest engineering & construction firm by revenue Larsen & Toubro fell 2.21% to Rs 3,772.

India’s largest telecom services provider by market share Bharti Airtel slumped 5.53% to Rs 884.20.

Reliance Communications declined 1.66% to Rs 665.75. Reliance Communications (RCom) is reprotedly set to test-launch its direct to home (DTH) services Big TV this week, before a full commercial launch in March this year. According to reports, the company is investing $250 million in the first phase for the launch and has already placed orders for over 2 million set-top boxes to cater to the launch. The target is to get 50% share of the new customers who join the DTH club.

In Asia, key indices in Hong Kong, Japan and Singapore were down by 3.49% to 5.40%. Stock markets in South Korea, Taiwan, and China were closed for the Lunar New Year holidays.

US stocks suffered their biggest drop in nearly a year on Tuesday, 5 February 2008, after data showed the worst monthly contraction in the services sector since the last US recession and Standard & Poor's warned it could cut bank credit ratings.

The Dow Jones industrial average plunged 370.03 points, or 2.93%, at 12,265.13. The Standard & Poor's 500 Index lost 44.18 points, or 3.2%, at 1,336.64. The Nasdaq Composite Index tumbled 73.28 points, or 3.08% at 2,309.57. The Dow and S&P 500 had their biggest drops since 27 February 2007.

Oil prices extended their decline to hover at $88 a barrel as the weak US economic data reinforced fears that the world's largest economy is on the brink of a recession.

As per provisional data, FIIs bought shares worth a net Rs 311.78 crore on Tuesday, 5 February 2008. Local funds sold shares worth a net Rs 135.16 crore on that day.

FIIs were net buyers to the tune of Rs 62.24 crore in the futures & options segment on Tuesday, 5 February 2008. According to data released by the NSE, FIIs were net buyers of index futures to the tune of Rs 139.06 crore and bought index options worth Rs 276.26 crore. They were net sellers of stock futures to the tune of Rs 344.24 crore and sold stock options worth Rs 8.84 crore.