Pakistan, Benazir Bhutto

Pakistan, Benazir Bhutto

Tata Power

Tata Power

Mercator Lines, K P R Mill, Tata Metaliks,Apar Industries, REI Agro

Mercator Lines, K P R Mill, Tata Metaliks,Apar Industries, REI Agro

Post Market Commentary

The market ended the session marginally lower after facing the volatility throughout the trading session. The market opened on a weak note backed by negative cues from the global markets. The market got the direction after the declaration of inflation figures by the government that represented that the India''s wholesale price index grew 3.45% in the 12 months ended 15 December 2007 which was lower than the previous week''s rise of 3.65%. Whereas the annual inflation rate was 5.73% during the corresponding week of the previous year. The Realty, Metal and Consumer Durables indices remained in the limelight as most buying is seen from these baskets. As usual, both the Mid Caps and Small Caps indices once again outperformed the benchmark indices as they closed with handsome gains of 145.71 points and 272.55 points at 9,574.57 and 12,901.29 respectively. The BSE Sensex closed marginal lower by 9.77 points at 20,206.95 and NSE Nifty fell by 1.8 points to close at 6,079.70.

BSE Metal index surged 484.26 points to close at 19,951.37. Scrips that pushed up are Gujarat NRE (6.32%), Jindal Steel (5.38%), Hind Zinc (4.96%), Nalco (3.47%), Tata Steel (2.76%).

BSE Realty index closed higher by 471.80 points at 12,551.96. Scris that grew are Parsvnath (7.86%), HDIL (5.99%), DLF (5.31%), Penland (4.98%), Omaxe (4.22%) .

BSE Oil & Gas index grew by 90.06 points to close at 13,213.09 as RNRL (5.46%), Essar Oil (3.74%), IOCL (3.68%), HPCL (2.22%), Cairn India (1.63%) and RPL (1.30%) closed in green.

BSE Bankex index closed up by 26.61 points to close at 11,396.94. Scrips that gained are BOB (5.96%), Federal bank (4.25%), Kotak bank (4.02%), Canara bank (2.89%) and Union bank (2.24%).

BSE IT index fell 26.08 points to close at 4,543.06. Scrips that fell are Wipro (3.52%), TCS (1.83%), Infosys (0.47%) and Satyam (0.40%).

BSE Health Care index increased by 48.42 points to close at 4,336.30. Pushed up are Orchid chemicals (14.54%), Dishman pharma (6.88%), Divi''s lab (5.35%), Matrix labs (3.16%) .

Weekly Close: bounce back with optimism !

This was a positive week for the markets and surprisingly strong in the face of the FNO expiry for the December series. There were no major negative cues from global as well as domestic front and markets took hold strongly above 20000.

Sessions overall were ranged after a sharp run up seen in thebeginning of the week. Most fund managers and investors in holiday mood were less involved. It was a holiday shortened week. Market terms this as santa rally and had indicated that last week that one could have expected that. We had a major event. Gujarat elections came in favour of BJP - on Modis leadership despite the anti-incumbency factor. Global credit woes continued there cry but US showed some resurgence on good corporate earnings. The F&O settlement also kept session ranged and choppy. December was a ranged month with FIIs outflow and that will keep investors worried.

Sensex closed up over 5% this week. Weekly losers for the were Bajaj Auto -6.36%,Tata Motors -7.07% while gainers ruled the with TISCO 13.24%, REL 10.7%, DLF +10.5%, Bhel +8.49%, Hindalco +7.46%, HDFC+7.34%,WIPRO 7.13%, RIL 7.13%,MNM 6.4% ICICI BNAK 6.31%, HDFC 5.54%, SBI 5.38%, NTPC 5.27%,Satyam 5.2%, Infy 5% LNT 4.29%,ITC 4%, Ambuja Ceme +3.71%,Rcom 3.61%, TCS 3.5%, Bharti +2.56%. BSE Midcaps 4.47%, BSE Small Caps 6.9%

Politics: Elections are nearing. Gujarat election was first step toward this . The BJP is seen in a strong position now in Himachal Pradesh as well. A strong BJP certainly will be an obstacle for the Nuclear deal It is likely to keep the Congress defensive and delay elections as much as possible. The Budget is the next important event and that may be a disappointment. The Congress may make this populist.

Common man is likely to be the nucleus for the budget and that means focus would be on giving more to him. Inflation is another area of action. This has been under control but more because of a base effect. inflation remains a concern and it is a supply side issue. Food articles have seen a major upsurge and this is on the back of poor agriculture growth. Agriculture thus would be an area of focus. Crude is at an all time high and it would be really difficult for Govt. to cope up with this. If the Govt. doesnt hike petrol and diesel pricesit would only postpone the problem. If it does hike then the Govt would face the ire of the Left and certainly it cant afford this when elections stare it in the face. This would be a big issue going ahead and certainly there are no easy answers. The easy way out is not the best one Economically for the country.

Some Geo political issues surfaced with Pakistan's Former Prime Minister Benazir Bhutto was assassinated. This means some risk from this angle as well and increased probable Militancy. However, such issues are unlikely to impact markets in any big way. At least not yet !

Cement counters regained strength post the MTPC probe for forming cartelisation. The Long term view still remains positive but valuations remain highly demanding.

Telecom stocks managed to hold on. The license and spectrum issue continues and things would be though ahead.

IT stocks saw some revival. Results are just ahead and they have risen on hope. On the face of results may appear positive but we believe that headwinds are still high in the form of an appreciating rupee, rising salary costs and poor business conditions nearing for clients. Banking sector remains a big sector exposure for the IT sector and the situation is not good.

Karuturi continued to circuit. The company is the largest manufacturer of flowers post the Kenyan acquisition. The numbers would flow in top line and bottom line from this quarter. Flowers is really localised and fragmented business. But Karuturi has really done great job and is now a global company. Our research note would give you better idea on this.

Adhunik is another success story. The company is into speciality steel back by iron ore mines. The story here is that it seems to be the only other mining play such as Sesa Goa and valuations remain undemanding.

We had our research on WWIL this week. WWIL is a Multi Service Operator (MSO) and one of largest player in Cable and Satellite industry (C&S). However this industry is dominated by Local Cable Operators (LCO?s). The Goon squad background and the political backing of the of cable operators has made it difficult for MSOs to breakdown the LCOs chain. The industry is also highly fragmented and there are no signs of consolidation yet. Digitalisation is the only way of transition. Do read our note so as to know what action needs to be taken here.

Fedder Lloyd is another interesting story. It is a niche player in India and caters to Defense and Railways. It has also forayed into Real Estate which seems to be a worry... but it can be also an opportunity. Our note would tell you more about this.

Realty firm in lacklustre market

The market witnessed a sharp pull-back after witnessing a slump by afternoon. The Sensex had a weak start and lost over 59 points following reports of assassination of former Pakistan Prime Minister Benazir Bhutto. Most of the Asian markets were subdued fearing terrorists attacks in Pakistan might see withdrawal of foreign money from the region. However, the benchmark Sensex index moved up by 42 points to touch the day's high of 20,259 quickly, only to lose further ground in the absence of buying interest in frontline shares on rising geo-political concerns. The Sensex shed all its gains thereafter and touched the day's low of 20,023. But, recovered on some buying interest towards the close. After recovering around 190 points from the day's low the Sensex ended the session by shedding 10 points at 20,207. The Nifty closed the session by slipping two points at 6,080.

Although the market ended on a negative note, the breadth of the market was positive. Of the 2,953 stocks traded on the BSE, 2,270 stocks advanced, 651 stocks declined and 32 stocks ended unchanged. Among the sectoral indices, BSE CD Index surged by 4.15% and BSE Realty index added 3.90%, while other sectoral indices gained around 1% each. However, BSE Teck Index, BSE IT Index and BSE Auto index slipped marginally.

The index heavyweights witnessed some selling. Wipro slumped 3.52% at Rs530, Bharti Airtel lost 2.65% at Rs941, Bajaj Auto shed 2.30% at Rs2,611, TCS plunged 1.83% at Rs1,080, ICICI Bank crumbled by 1.20% at Rs1,227, ONGC declined 1.13% at Rs1,227, Maruti Suzuki dropped 1.05% at Rs984, while Tata Motors, HDFC and Infosys slipped marginally. Few counters, however, managed to buck the downtrend and ended in the green. DLF rose 5.31% at Rs1,064, Tata Steel moved up by 2.76% at Rs931, Ambuja Cement added 2.75% at Rs149 and Grasim gained 1.13% at Rs3,630 and Hindlaco ended higher by 1.11% at Rs213.

Over 2.18 crore Spice Jet shares changed hands on the BSE followed by IKF Technology (1.83 crore shares), Himachal Futuristic (1.70 crore shares), RNRL (1.48 crore shares) and G V Films (1.43 crore shares).

Valuewise, RNRL registered a turnover of Rs261 crore followed by Reliance Energy (Rs218 crore), Transformers & Rectifiers India (Rs193 crore), Spice Jet (Rs179 crore) and Essar Oil (Rs171 crore).

Sensex soars 1,044 points

The market surged ahead of Q3 December 2007 earnings reporting season. Strong global cues also boosted the sentiments. Stronger-than-expected US consumer spending calmed fears the world's top economy was heading into a recession. The market also cheered a comfortable victory for Bharatiya Janata Party (BJP) in the Gujarat state election. The market further got a boost from reports the government has allowed all trusts to invest in securities, including shares and bonds of listed companies. Sensex gained in 3 out of 4 trading sessions in the week.

The BSE Sensex surged 1,044.38 points or 5.45% to 20,206.95 in the week. The S&P CNX Nifty jumped 313.2 points or 5.43% to 6,079.70.

The BSE Mid-Cap index rose 549.03 points or 6.08% to 9,574.57. The BSE Small-Cap index surged 1,087.97 points or 9.2% to 12,901.29. It hit an all time high of 12,909.82 on Friday, 28 December 2007.

Sensex rose 691.55 points or 3.61% to 19,854.12 on Monday, 24 December 2007. Bharti Airtel spurted. Reliance Industries edged higher. Reliance Energy hit all time high. The market breadth was strong.

The 30-share BSE Sensex jumped 338.40 points or 1.70% to 20,192.52 on Wednesday, 26 December 2007. The market surged led by rally in index heavyweight Reliance Industries.

The 30-share BSE Sensex ended up 24.20 points or 0.12% to 20,216.72 on Thursday, 27 December 2007. The market swayed between gains and losses ahead of expiry of December 2007 derivative contracts. The market breadth was strong. Reliance Industries declined. ICICI Bank moved up. Consumer durables, metal and PSU stocks were in demand. Auto and IT stocks declined.

The 30-share BSE Sensex declined 9.77 points or 0.05% to 20,206.95 on Friday 28 December 2007. The market ended flat on that day largely shrugging off geopolitical concerns arising from Pakistan’s opposition party leader Benazir Bhutto's assassination in nuclear-armed Pakistan. Bhutto was killed on Thursday, 27 December 2007, at a rally in Rawalpindi, raising fears of instability in Pakistan.

Mahindra & Mahindra gained 6.23% to Rs 834.40 in the week, Mahindra and Mahindra (M&M) is reportedly planning to enter the highly-competitive UK market with its flagship model Scorpio next year.

Wipro jumped 7.76% to Rs 529.95 on reports that it may bid for France's Capgemini by the end of January 2008 in a deal valuing the latter at around $7 billion. Capgemini is a global leader in consulting, technology and outsourcing services. However Wipro denied these reports.

Larsen & Toubro rose 4.17% to Rs 4,150.30 on reports it has floated a power generation firm Larsen & Toubro Power Development and is planning to generate 5,000 megawatt in the next five years. According to the current estimates, the cost of the proposed power capacity would be Rs 20,000 crore. Meanwhile, L&T said on Wednesday, 26 December 2007, its subsidiary L&T Oman LLC had secured an order worth $110.37 million from Muscat Golf Course Project LLC.

State Bank of India advanced 5.26% to Rs 2,384.45 on reports that its board of directors will meet on 25 January 2008 to consider the merger of its six associate banks with itself. As per reports, the respective boards of State Bank of India (SBI)'s associate banks are expected to give an in-principle nod to the merger. These associates include the listed banks - State Bank of Travancore, State Bank of Mysore, State Bank of Bikaner and Jaipur and unlisted banks State Bank of Hyderabad, State Bank of Indore, and State Bank of Patiala

Oil & Natural Gas Corporation gained 3.01% to Rs 1,226.75, on reports it would raise $20 billion to buy stakes in major oil and gas properties overseas. Oil & Natural Gas Corporation (ONGC) is expected to finalize agreements in Turkmenistan, Iran, Latin America and West Africa, reports suggest.

Tata Steel (up 12.92% to Rs 931.40), Reliance Energy (up 11.11% to Rs 2,155.30), Reliance Industries (up 6.77% to Rs 2,898.35), ICICI Bank (up 6.06% to Rs 1,227.10), Infosys Technologies (up 5.73% to Rs 1,795.75), HDFC Bank (up 5.11% to Rs 1,730.85), Satyam Computer Services (up 5.12% to Rs 449.60), Reliance Communications (up 3.69% to Rs 732.60), Tata Consultancy Services (up 3.33% to Rs 1,080.05) were major gainers from Sensex pack.

India's wholesale price index rose 3.45% in the 12 months to 15 December 2007, lower than the previous week's rise of 3.65%, government data showed on Friday, 28 December 2007. The annual inflation rate was 5.73% during the corresponding week of the previous year. The wholesale price index is more closely watched than the consumer price index, which is published monthly, because it covers a higher number of products and is published weekly.

The market regulator Securities & Exchange Board of India (Sebi) on Thursday, 27 December 2007, gave nod to BSE and NSE for launch of mini derivative (futures & options) contract on BSE Sensex and S&P CNX Nifty respectively. The mini derivative contract on Sensex and Nifty will have a minimum contract size of Rs 1 lakh at the time of its introduction in the market.

The infrastructure sector grew 4.5% in October 2007 over 9.9% in October 2006. The six key infrastructure industries comprising cement, crude, refining, coal, electricity and steel rose grew by 6.2% in the April-October 2007 compared with 8.9% in April-October 2006. Infrastructure growth data for September 2007 was revised downwards to 5.5%.

The third, and probably the final, round of negotiations for India-specific safeguards with the International Atomic Energy Agency (IAEA) is expected to take place in Vienna early January 2008.

The Bharatiya Janata Party (BJP) won the Gujarat elections on 23 December 2007 by bagging 117 of the 182 seats. The Congress party bagged 59 seats which could mean a setback to the party's plans to call an early national election.

The market regulator Securtities & Exchange Board of India (Sebi) on Thursday, 27 December 2007, proposed to clear mutual funds products on a fast-track basis. To begin with, fixed maturity plans (FMP) with closed ended income schemes can be offered on a fast track basis, the Securities and Exchange Board of India (SEBI) said. Under the proposal for fast-track clearance, a fund house can file a final offer document with the regulator along with compliance certificates and fees. After the filing, the regulator will confirm the receipt of the documents and the fund house can offer the scheme to investors.

On 26 December 2007, the government approved spectrum review committee's recommendation of allocating additional frequency to existing GSM operators based on the Telecom Regulatory Authority of India's (TRAI) subscriber linked formula and in multiples of 1 MHz. The GSM operators were getting additional spectrum in the multiples of 2.4-2.8 MHz and lowering it to 1 MHz would hit the operators as this would mean additional capital expenditure for them.

According to a report by the Confederation of Indian Industry (CII) and KPMG ‘India Energy Inc. – Emerging Opportunities & Challenges’, released on 26 December 2007, India's power and upstream energy sectors need investments to the tune of $120–150 billion in the next five years.

Geopolitical situation could weigh on bourses

Geopolitical situation in South Asia could weigh down the sentiments on the market in the coming week after former Pakistani Prime Minister Benazir Bhutto's assassination on Thursday, 27 December 2007. Stock markets around the world weakened and oil prices rose after the assassination in nuclear-armed Pakistan increased geopolitical uncertainties, with investors shifting money into safe-haven assets such as gold and bonds. However, the Indian market ended flat on Friday, 28 December 2007, shrugging off geopolitical concerns.

Stock specific activity may rule the roost based on expectations regarding Q3 December 2007 results of the companies. IT bellwether Infosys Technologies will announce results on 11 January 2007.

Rising oil also can play a spoilsport for the markets as it is nearing $100 mark. Oil rose for a fifth day to $97 a barrel on Friday, within sight of its record high after US crude stocks fell more sharply than expected, and geopolitical tensions mounted in Pakistan and northern Iraq. Also US government data showed US crude oil stockpiles fell to their lowest level since January 2005 last week.

FIIs were net buyers of Rs 3,494.20 crore in equities so far in the month of December 2007, till 26 December 2007. FIIs had sold equities worth Rs 5,849.90 crore in the month of November 2007 after heavy purchases in September 2007 and October 2007.

Annual inflation, based on the wholesale price index (WPI), dipped to 3.45% in the week ended 15 December 2007 from 3.65% in the week ended 8 December 2007. The market estimate stood at 3.65%

Small-cap, mid-cap stocks shine

The market ended the choppy session with miniscule losses. The volatility was high on account of weekend profit booking, but value buying supported frontline stocks at lower level. Metal, consumer goods and realty stocks were star performers of the day. Auto and IT stocks edged lower. DLF surged. Wipro slipped. 17 out of 30 stocks from the Sensex pack were in green.

European markets, which opened after Indian markets, were trading in red. Asian markets, which opened before Indian market, were weak after the assassination of Pakistan’s opposition party leader Benazir Bhutto in nuclear-armed Pakistan increased geopolitical uncertainties. Bhutto was killed on Thursday, 27 December 2007, at a rally in Rawalpindi, raising fears of instability in Pakistan.

India's wholesale price index rose 3.45% in the 12 months to 15 December 2007, lower than the previous week's rise of 3.65%, government data showed on Friday, 28 December 2007. The annual inflation rate was 5.73% during the corresponding week of the previous year. The wholesale price index is more closely watched than the consumer price index, which is published monthly, because it covers a higher number of products and is published weekly.

The 30-share BSE Sensex fell 9.77 points or 0.05% to 20,206.95. The market witnessed a bout of volatility. Sensex hit a low of 20,022.88 in the mid-afternoon trade. At day's low, Sensex lost 193.84. Sensex hit a high of 20,259.45 in early trade. At day's high, Sensex rose 42.73.

The broader CNX S&P Nifty fell 1.80 points or 0.03% to 6079.70.

The BSE Small-Cap index rose 2.16% to 12,901.29 and the BSE Mid-Cap index rose 1.55% to Rs 9,574.57. Both these indices outperformed the Sensex.

Market breadth was strong. On BSE, 2270 shares advanced and 651 shares declined. 32 shares remained unchanged.

BSE clocked a turnover of Rs 8497 crore compared to Thursday (27 December 2007)'s Rs 8286.79 crore.

The NSE's futures & options (F&O) segment turnover was Rs 50436.85 crore, which was lower than Rs 94658.80 crore on Thursday, 27 December 2007.

Nifty January 2007 futures were at 6119.75, a premium of 40.05 points compared to the spot closing of 6079.70.

India’s largest private sector firm by market capitalization & oil refiner Reliance Industries rose 0.14% to Rs 2898.35.

India’s largest private sector bank by assets ICICI bank fell 1.20% to Rs 1227.10.

India's biggest drug maker by sales Ranbaxy Laboratories jumped 1% to Rs 415.60 after it received tentative approval from the US Food and Drug Administration for galantamine hydrobromide oral solution.

Debutante Transformers and Rectifiers (India) settled at Rs 728 on BSE, a 56.55% premium over IPO price of Rs 465 per share. The stock debuted at Rs 701.10, a 50.77% premium over the IPO price. The stock hit a high of Rs 813.75 and low of Rs 685.20.

India's second largest power utility by revenue Reliance Energy gained 0.97% to Rs 2155.30, off day’s high of Rs 2218. The stock moved up on reports Reliance Power in which it holds 50% stake, has edged closer to its mega initial public issue. As per reports, a two-member panel of the Securities and Exchange Board of India (Sebi) office directed that 20% of the equity held the promoter group be locked in for a period of five years, instead of the mandatory three years as per the guidelines on IPOs.

The BSE Metal index rose 2.47% to 19,948.45. It outperformed the Sensex. Tata Steel rose 2.76% to Rs 931.0, Sterlite Industries 1.35% to Rs 1051.95, National Aluminum Company jumped 3.47% to Rs 497.5 and Steel Authority of India rose 2.31% to Rs 279.50.

The BSE Consumer Durables index rose 4.15% to 6,602. It outperformed the Sensex. Videocon Industries soared 10% to Rs 752.10, Titan Industries spurted 3.66% to Rs 1533, and Blue Star jumped 0.37% to Rs 485.

The BSE Realty index rose 3.90% to 12,551.26. It outperformed the Sensex. India’s largest real estate firm by market capitalization DLF moved up 5.31% to Rs 1063.70 on reports the firm plans to raise $5 billion over the next three years by listing five of its business units, including DLF Homes, DLF Retail, DLF Hotels, DLF Utilities and DLF Infrastructure. There are no plans to further dilute equity in group flagship DLF.

India’s second largest real estate firm by market capitalization Unitech spurted 4.18% to Rs 483.80 on reports the company is making an aggressive entry into the booming realty market in the south. It is on the verge of announcing two joint development deals, involving over 1,400 acres of prime land in Hyderabad and Chennai.

Parsvnath Developers surged 7.86% to Rs 457.45, Peninsula Land jumped 4.98% to Rs 143.40, Omaxe gained 4.22% to Rs 573.30 and Indiabulls Real Estate rose 1.71% to Rs 720.

The BSE Auto index fell 0.20% to 5,595. It underperformed the Sensex. Bajaj Auto slipped 2.30% to Rs 2610.95, Maruti Suzuki fell 1.05% to Rs 984.20, Tata Motors declined 0.81% to Rs 730.75, and Amtek Auto fell 0.76% to Rs 425.25. Mahindra & Mahindra rose 0.79% to Rs 834.40.

The BSE IT index fell 0.37% to 4,552.06. It underperformed the Sensex. India’s third largest software exporter by sales Wipro declined 3.52% to Rs 529.95. The stock fell after some reports suggested that Europe-based computer services firm Capgemini has denied takeover talks with Indian rival Wipro. Earlier some reports had suggested that Wipro was preparing a €7 billion bid for taking over Capgemini.

India’s second largest software exporter by sales Infosys Technologies fell 0.47% to Rs 1795.75. The company said during market hours today, 28 December 2007, it would unveil Q3 December 2007 results on 11 January 2008.

TCS declined 1.83% to Rs 1080.05 and Satyam Computers fell 0.40% to Rs 449.60.

Special steel and strips maker Bhushan Steel jumped 3.26% to Rs 1565.50 on reports Japan's Sumitomo Metal Industries has signed a memorandum of understanding (MoU) with Bhushan Steel, whereby the Japanese company will assist the Indian counterpart in its proposed integrated steel plant in Orissa.

Among the mid-caps, Monsanto India surged 20% to Rs 1942, SpiceJet soared 18.74% to Rs 86.50, Gulf Oil Corporation spurted 15.04% to Rs 335, Orchid Chemicals & Pharmaceuticals moved up 14.54% to Rs 294.70 and Bajaj Auto Finance rose 14.04% to Rs 426.5.

Among the small-caps, Suraj Stainless surged 20% to Rs 235.25, Glodyne Technoserve soared 20% to Rs 394.10, Ramco Systems spurted 20% to Rs 214.10, ORG Informatics climbed 20% to Rs 94.90, and L G Balakrishnan & Bros moved up 20% to Rs 43.55.

Reliance Natural Resources clocked the highest turnover of Rs 261.61 crore on BSE. Reliance Energy (Rs 218.30 crore), Transformers and Rectifiers (India) (Rs 193.97 crore), SpiceJet (Rs 179.46 crore) and Essar Oil (171.23 crore shares), were the other turnover toppers on BSE in that order.

SpiceJet registered the highest volume of 2.18 crore shares on BSE. IKF Technologies (1.83 crore shares), Himachal Futuristic Communications (1.70 crore shares), Reliance Natural Resources (1.48 crore shares) and GV Films (1.43 crore shares), were the other volume toppers on BSE in that order.

The December 2007 derivative contracts expired yesterday, 26 December 2007. As per reports, Nifty rollover from December 2007 series to January 2008 series stood at 81% while total marketwide rollover stood at 85%, as on Thursday, 27 December 2007. This compared to Nifty rollover 76% from November 2007 series to December 2007 and marketwide rollover of 83% from November 2007 series to December 2007 series.

In Europe, key indices in France, Germany and UK were down by between 0.14% to 0.39%.

Asian stocks were trading lower today, 28 December 2007. Key indices in Japan, China, Singapore, South Korea and Hong Kong were down between 0.60% to 1.70%. However, Taiwan’s Taiwan Weighted index was up 1%.

US markets declined on Thursday, 27 December 2007, on news of Benazir Bhutto's assassination. The Dow Jones Industrial Average fell 192.08 points, or 1.42%, to 13,359.61. Broader stock indicators also fell. The Standard & Poor's 500 index declined 21.39 points, or 1.43%, to 1,476.27, and the Nasdaq Composite index fell 47.62, or 1.75%, to 2,676.79.

Crude oil was unchanged today, 28 December 2007 around $97 a barrel as an Energy Department report showed that US inventories fell more than expected. Crude oil for February delivery was at $96.91 a barrel, up 29 cents, on the New York Mercantile Exchange. Brent crude for February settlement was at $95.11 a barrel, up 33 cents in London.

Grey Market - Reliance Power, eClerx, BGR and more

Reliance Power 450 to 500 260 to 270


eClerx Services 315 30 to 40


BGR Energy 480 380 to 400


Transformers & Rectifiers 465 330 to 340


Brigade Enterprises 390 8 to 10


Burnpur Cement Ltd. 12 5 to 7


SVPCL 42 DISCOUNT


Aries Agro 130 20 to 25


Manaksia Ltd. 160 10 to 15


Porwal Autocomponents 75 DISCOUNT


Precision Pipes & Profiles 150 20 to 25

Short Term Trading Calls

Buy Everonn System with a stop loss of Rs 780-Rs 800 for a target of Rs 1200-Rs 1400.

Buy Educomp Solutions with a stop loss of Rs 4300 for a target of Rs 4850.

Buy CMC with a stop loss of Rs 1320 for a short-term target of Rs 1680

Short Term Trading Calls

Buy Indian Hotel at Rs 162-Rs 150. Stop Loss at Rs 133, target of Rs 249 and Rs 396.

Buy Hotel Leela Ventures at Rs 71.50-Rs 65. Stop Loss at Rs 60, target of Rs 91 and Rs 120. Add further on close abvoe Rs 73.50

Buy RPG Life Sciences at Rs 108-Rs 98. Stop Loss at Rs 88, target of Rs 159 and Rs 204.

Global weakness may weigh

US indices ended weak in yesterday's trades and tracking the same the Asian markets are also trading weak in morning trades, which may weigh on the local indices and thereafter the market could exhibit volatility during intra-day trades. However, the prevailing north-bound journey and strong fund inflows may add to the market advantage and help the sentiment turn positive. Among the domestic indices, the Nifty could test 6,200 and above this level may surge to 6,400, while on the downside it could slip to 5,840-5,540 levels. The Sensex has a likely support at 19,500 and may face resistance at 21,000.

US indices plummeted on Thursday after Bhutto's assassination stoked geopolitical concerns and economic reports showed weakness in US markets. While the Dow Jones dropped 192 points at 13,360, the Nasdaq fell 48 points to close at 2,677.

All the ADRs on the US bourses tanked on Thursday. Tata Motors led the slump and tanked 6.43% and Satyam, ICICI Bank, HDFC Bank and VSNL fell over 5% each. While, Infosys, Wipro, Dr Reddy's Lab, MTNL and Rediff slipped over 1-4% each.

Crude oil prices rose further after the assassination of Pakistani opposition leader Benazir Bhutto raised concerns about stability in the Middle East. The Nymex light crude oil moved up by 65 cents at $95.97 per barrel. In the metals segment, the Comex gold for February series moved up by $2.30 to settle at $831.80 an ounce.

Market may turn nervous

The market may turn nervous tracking weak global markets following the assassination of former Pakistan Primer Minister Benazir Bhutto. This is despite of healthy rollover of derivatives positions from December 2007 series to January 2007 series. Bhutto's assassination sparked fears of global unrest.

The December 2007 derivative contracts expired yesterday, 26 December 2007. As per reports, Nifty rollover from December 2007 series to January 2008 series stood at 81% while total marketwide rollover stood at 85%, as on Thursday, 27 December 2007. This compared to Nifty rollover 76% from November 2007 series to December 2007 and marketwide rollover of 83% from November 2007 series to December 2007 series.

Asian stocks were trading lower today, 28 December 2007. Japan's Nikkei 225 (down 1.65% to 15,307.78), Shanghai Composite (down 0.41% at 5,287.11), Hang Seng (down 1.08% at 27,543.27), Jakarta Composite (down 0.20 points to 2,739.50), Straits Times (down 0.62% at 3,455.77), Seoul Composite (down 0.31% to 1,902.74), Taiwan Weighted (down 0.26% to 8,292.08) declined.

US markets declined on the news of the Benazir Bhutto's assassination. The Dow Jones fell 192.08 points, or 1.42%, to 13,359.61. Broader stock indicators also fell. The Standard & Poor's 500 index declined 21.39 points, or 1.43%, to 1,476.27, and the Nasdaq Composite index fell 47.62, or 1.75%, to 2,676.79.

Back home, the 30-share BSE Sensex rose 24.20 points or 0.12% to 20,216.72 on Thursday 27 December 2007. The broader CNX S&P Nifty rose 10.75 points or 0.18% to 6081.50 on that day.

As per provisional data, foreign institutional investors (FIIs) sold shares worth a net Rs 702.64 crore, while domestic institutional investors (DIIs) were net buyers of shares worth Rs 787.92 crore on Thursday, 27 December 2007.

FIIs were net sellers to the tune of Rs 3.56 crore in the futures & options segment on Thursday, 27 December 2007. FIIs were net buyers of index futures to the tune of Rs 350.02 crore and bought index options worth Rs 966.32 crore. They were net sellers of stock futures to the tune of Rs 1,318.11 crore and sold stock options worth Rs 1.80 crore.

Crude oil was unchanged today, 28 December 2007 around $97 a barrel as an Energy Department report showed that US inventories fell more than expected. Crude oil for February delivery was at $96.91 a barrel, up 29 cents, on the New York Mercantile Exchange. Brent crude for February settlement was at $95.11 a barrel, up 33 cents in London.

Morning Call

Market Grape Wine :

In House :

Nifty at a supp of 6055 and 6010 with resis at 6111 and 6135

Intra Day: Sell ABB below 1474 with a TGT of 1445 and a SL of 1486

Buy Alokind above 100.20 with a TGT of 108 and a SL of 98

F&O: Buy Suzlon above 1945 with a TGT of 2000 and a SL of 1930

Buy ITC above 207 with a TGT of 218 and a SL of 202

Out House :

Markets at a support of 19786 & 20012 levels with resistance at 20341 & 20432 levels .

Buy : RIL & REL

Buy : JSW & sail

Buy : JpAsso at dips

Buy : EssarOil at dips

Buy : GeShipping atdips

Buy : IBUllsreal & IBullsFin at dips

Buy : HLL & ITC

Buy : IciciBank & SBIN at dips

Buy : IndiaGlycol & Balrampur

Dark Horse : REL , Renuka , JpAsso , IBull , Sail , IciciBank , RIL & SBIN

TGIF : Thank God its Friday : Markets at a high book profits at all higher levels .

Bullet for the Day : Alok & Noida with strict stop loss .