Post Session Commentary - Oct 14 2008

The benchmark indices opened with strong gains following previous day''s rally and touched a high of 11870.22 points before closing at 11483.4 points. The domestic market pared more than half of its initial gains on account of profit booking at higher level but still managed to end above dotted line. Sentiments were high during earlier trading as governments across the world tried to keep financial system ease by infusing fresh liquidity. However, this was not sufficient to brush up the investor''s confidence as most of the investors were willing to book the profit before any damage happens to their funds. BSE Sensex ended above 11,400 level along with NSE Nifty above 3,300 mark. Further market was not able to maintain the same momentum and started losing ground since mid session. Finally, market managed to close in positive territory but with minimal gains. On the sectoral front, most of the buying was seen in Pharma, IT, Capital Goods, Oil & Gas and Bank stocks. However, Metal and Consumer Durable stocks remained out of favour as witnessed most of the selling from these baskets. Midcap and Smallcap stocks were in buyer''s radar and ended with gains of more than 1% and 2% respectively. Among the Sensex pack 19 stocks ended in positive terrain while 11 in red. The market breadth was positive as 1656 stocks closed in green while 972 stocks closed in red and 55 stocks remained unchanged on BSE.

The BSE Sensex closed higher by 174.31 points at 11,483.4 and NSE Nifty ended up by 37.95 points at 3,518.65. The BSE Mid Caps and Small Caps closed with gains of 61.45 points at 3892.03 and by 101.74 points at 4,615.89. The BSE Sensex touched intraday high of 11,870.22 and intraday low of 10,410.49.

Gainers from the BSE Sensex pack are Satyam Computer (7.38%), Infosys Tech (5.87%), JP Associates (5.20%), ICICI Bank (5.18%), Reliance Infra (5.09%), Tata Power (5.06%), Bharti Airtel (3.30%), Reliance (3.14%), DLF Ltd (3.07%) and Wipro Ltd (3%).

Losers from BSE Sensex pack are Reliance Communication Ltd (4.83%), Hindalco (4.11%), ONGC Ltd (3.81%), HDFC Bank (3.47%), NTPC Ltd (2.7%), M&M Ltd (2.55%) and OITC Ltd (0.97%).

The BSE Pharma index surged 151.46 points to close at 3,404.63. Major gainers are Glenmark Pharma (17.38%), Sun Pharma (9.19 %), Lupin Ltd (5.60%), Dr Reddy’s Lab (5.11%), Pirama Health (5.03%) and Matrix Lab (4.76%).

The IT index gained 149.45 points to close at 2,939.87 as Rolta India (20.12%), PAtni computer (12.5%), NIIT Ltd (7.97%), Financ Tech (7.71%), Satyam Computer (7.38%) and Infosys Tech (5.87%) in positive territory.

The BSE Capital Goods index closed higher by 100.08 points at 8,776.2. Gainers are Usha Martin (16.71%), Aiaengineer (10.79%), Reliance Industrial Infra (9.30%), Bharat Bijli (8.75%), Havells India (6.61%) and Crompton Greaves (5.53%).

The BSE Oil & Gas index advanced by 73.64 points to close at 7,623.4 as Reliance (3.14%), Cairn India (2.53%), HPCL (2.43%), Essar Oil Ltd (1.43%) and Reliance Natural Resources (1.31%) ended in positive territory.

The BSE Metal index plunged 135.32 points to close at 6,851.71. Major losers are Sesa Goa Ltd (7.26%), JSW Steel (6.6%), Steel Authority (6.29%), Hindalco (4.11%), Jindal Steel (3.77%) and Hindustan Zinc (2.70%).

The BSE Consumer Durables index ended marginally down by 9.72 points at 2,330.76. Losers are Blue Star L (3.23%) and Titan Ind (2.49%.

Markets lose steam midway

The Sensex opened 472 points above its previous close, tracking firm leads from Asian markets. It was a good opening supported with good volumes and a positive market breadth. Buoyancy in heavyweights, information technology, health care and teck stocks in the afternoon helped the Sensex touch the day's high of 11,870 (561 points higher than yesterday’s close). However as trading progressed the Sensex lost its momentum and gave up its early gains on across-the-board selling. The market appeared to be heading towards a negative close, but selective buying at lower levels helped the Sensex wrap-up the session with a gain of 174 points at 11,483. Nifty closed the session by adding 28 points at 3,519.

The market breadth was positive. Of the 2,681 stocks traded on the BSE 1,645 stocks advanced whereas 974 stocks declined. Sixty two stocks ended unchanged. Among the sectoral indices, the BSE IT flared up by 5.36%, BSE HC rose 4.66%, BSE Teck moved up by 3.74% and BSE Realty was up 1.84%.

Barring a few, the Sensex stocks ended higher. Satyam Computer Services flared up 7.38% at Rs289, Infosys Technologies shot up by 5.87% at Rs1,397.05, JP Associates zoomed 5.20% at Rs85, ICICI Bank moved up by 5.18% at Rs447.10, Reliance Infrastructure scaled up 5.09% at Rs632.25, Tata Power surged by 5.06% at Rs830.15, Bharti Airtel jumped by 3.30% at Rs764.30 and Reliance Industries gained 3.14% at Rs1,619.70.

Over 2.17 crore Core Projects and Technologies shares changed hands on the BSE followed by IFCI (1.09 crore shares), Reliance Natural Resources (1.04 crore shares), GVK Power and Infrastructure (1.01 crore shares) and Chambal Fertilisers and Chemicals (0.68 crore shares).

Valuewise, ICICI Bank clocked a turnover of Rs257 crore followed by Reliance Capital (Rs217 crore), Reliance Industries (Rs210 crore), State Bank of India (Rs185 crore) and Core Projects and Technologies (Rs143 crore).

Market extends gains

The Key benchmark indices extended yesterday’s (13 October 2008)'s sharp surge. However, the market today lost most of the earlier strong gains in late trade after the chief Election Commissioner (EC) announced dates for assembly elections in five states in afternoon. The BSE Sensex rose 1.54%. Reliance Communications fell close to 5%. Hindalco Industries and ONGC were the other major losers from the Sensex pack.

The fall on the bourses from higher level materialised soon after a sharp surge. The Reserve Bank of India’s announcement before start of trading to infuse more liquidity and strong global markets had boosted the Sensex more than 550 points early afternoon .

Mid-cap and small-cap indices also pared gains after an initial spurt. The market breadth was strong.

India's central bank today said it would allow Indian commercial banks to accept as collateral certificate of deposits (CDs) held by mutual funds for the next 15 days. The move followed an announcement by the central bank of an announcement earlier in the day of a 14-day repo auction to enable banks to meet the liquidity requirements of mutual funds, which had met with redemption pressures.

The BSE 30-share Sensex rose 174.31 points or 1.54% to 11,483.40. The Sensex gained 101.40 points at the day’s low of 11,410.49 hit in late trade. The Sensex surged 561.13 points at day’s high of 11,870.22, in early afternoon trade.

The S&P CNX Nifty rose 27.95 points or 0.8% to 3,518.65.

BSE clocked a turnover of Rs 4,237 crore today as compare to a turnover of Rs 3,966.25 crore on 13 October 2008.

Nifty October 2008 futures were at 3523.90, at a premium of 5.25 points as compared to spot closing of 3518.65. NSE's futures & options (F&O) segment turnover was Rs 47,278.06 crore, which was higher than Rs 40,624.27 crore on Monday, 13 October 2008.

The BSE Mid-Cap index was up 1.6% at 3,892.03 and the BSE Small-Cap index was up 2.25% at 4,615.89. Both the indices outperformed Sensex.

BSE IT index (up 5.36% to 2,939.87), BSE HealthCare index (up 4.66% to 3,404.63), BSE Teck index (up 3.74% to 2,373.78), BSE Realty index (up 1.84% to 2,804.74) outperformed the Sensex.

BSE Metal index (down 1.94% to 6,851.71), BSE PSU index (down 0.97% to 5,758.85), BSE Consumer Durables index (down 0.42% to 2,330.76), BSE Auto index (up 0.38% to 3,428.75), BSE Power index (up 0.56% to 2,027.87), BSE FMCG index (up 0.81% to 1,941), BSE Oil & Gas index (up 0.98% to 7,623.40), BSE Bankex (up 1.08% to 6,038.07), BSE Capital Goods index (up 1.14% to 8,876.20), underperformed the Sensex.

The BSE Sensex has gained 955.55 points or 9.07% in last two sessions. The barometer index is down 8,803.59 points or 43.39% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 9,723.37 points or 45.85% below its all-time high of 21,206.77 struck on 10 January 2008.

The market breadth was strong. On BSE, 1,656 shares advanced as compared to 972 that declined. 55 shares remained unchanged.

As per the provisional figures on BSE, foreign institutional investors (FII)s bought shares worth Rs 898.25 crore today, 14 October 2008 while domestic funds sold shares worth Rs 252.37 crore.

Jaiprakash Associates (up 5.2% to Rs 85), Tata Power Company (up 5.06% to Rs 830) and Reliance Infrastructure (up 5.09% to Rs 632.25) were major gainers from the sensex pack.

Hindalco Industries (down 4.11% to Rs 85.10), HDFC Bank (down 3.47% to Rs 1,138.45) and NTPC (down 2.7% to Rs 174.45) were major losers from the Sensex pack.

India’s largest private sector company by market capitalization and oil refiner Reliance Industries was up 3.14% to Rs 1,619.70 off day’s high of Rs 1,668.

IT stocks rose. India’s largest IT exporter by sales Tata Consultancy Services rose 2.84%. The Ministry of External Affairs on 13 October 2008 awarded Passport Seva Project valued over Rs 1000 crore, to the company.

India’s second largest IT exporter by sales Infosys rose 5.87% to Rs 1,397.05. Infosys ADR galloped 23.42% to $29.51 on 13 October 2008. On Friday, 10 October 2008, the company revised downwards its earnings and revenue guidance in dollar terms at the time of announcing Q1 June 2008 results.

Wipro jumped more than 3% after its ADR advanced 39.67% on 13 October 2008 overnight. Satyam Computer Services rose 7.38%. ICSA (India) surged close to 42%.

India’s second largest bank by net profit ICICI Bank rose 5.18% to Rs 458.25 off day’s high of Rs 447.10. ICICI Bank's ADR jumped 29.96% to $18 overnight. The stock had spurted 16.75% on 13 October 2008 after the bank's chief executive K.V. Kamath said deposits with the bank are safe, and that the bank had a cushion to take domestic and overseas shocks. His statements came amid concerns about ICICI Bank's exposure to the global financial crisis, which has send the stock crashing on the bourses. The stock had fallen 19.7% on Friday, 10 October 2008, recording a sharpest single day fall.

India’s largest tractor maker by sales Mahindra & Mahindra fell 2.55% to Rs 507.25. Mahindra Systech, the auto component arm of Mahindra & Mahindra, is reportedly looking to more than double its revenues by diversifying its clientele to power plants, railways, defence, aerospace and oil refineries. This comes as dipping automobile sales in the US, Europe and many of the emerging markets are forcing auto component companies to explore options to de-risk their businesses.

India’s largest engineering and construction firm by sales Larsen & Toubro moved up 1.15% to Rs 1,003.65, ahead of its Q2 September 2008 results on Wednesday, 15 October 2008.

India’s largest oil exploration firm by revenue ONGC lost 3.81% to Rs 880.70 after Goldman Sachs Group reduced its rating on stock citing concerns about lower oil price forecasts and poor production growth. The stock came off from session’s high of Rs 950.

India’s second largest telecom services provider by sales Reliance Communications fell 4.83% to Rs 268.70 off day’s high of Rs 303. The company added 1.76 million mobile subscribers in September 2008, taking its total mobile user base to more than 56 million, the company said in a statement on Monday, 13 October 2008.

India's largest commercial vehicle maker by sales Tata Motors fell 0.12% to Rs 298.90 after commpany said its UK subsidiary, Tata Motors European Technical Centre Plc., has bought 50.3% of Norwegian electric vehicle firm Miljoe Grenland/Innovasjon for Rs 9.40 crore ($2 million).

Kingfisher Airlines rose 0.97% while Jet Airways fell 5.58%. Both the stocks came sharply off from an initial surge after the two carriers on Monday, 13 October 2008, decided to team up to share some facilities to reduce costs as the country's airline industry heads for its worst loss on record. The two airlines will jointly manage fuel expenses, share some pilots and allow cross-selling of tickets in each other's network, the Mumbai-based carriers said in a statement yesterday.

Cadila Healthcare slipped 0.47%, even as the company said on Tuesday, 14 October 2008, it has received approval from World Heath Organization for Lyssavae N, a new drug which is used for the treatment of rabies.

Bank of India rose 5.86% on reports it has raised Rs 500 crore through a private placement of bonds with state-run insurer, Life Insurance Corp of India.

Sonata Software spurted 20% after the company reported a 1.61% rise in net profit to Rs 13.48 crore in Q2 September 2008 over Q1 June 2008.

South Indian Bank rose 2.96% after the bank reported 44.8% rise in net profit to Rs 51.68 crore on a 27.3% jump in operating income to Rs 440.08 crore in Q2 September 2008 over Q2 September 2007.

Indo Tech Transformers soared 10.63% after the company reported 38.77% rise in net profit to Rs 14.21 crore on 27.31% growth in net sales to Rs 65.40 crore in Q2 September 2008 over Q2 September 2007.

Subhash Projects & Marketing fell 2.65% after the company said its joint venture firm with US-based Insituform Technologies Inc won two orders worth a total Rs 95.80 crore.

IFCI pared gains falling 2.59% after the term lending institution posted 47.91% fall in net profit to Rs 259.06 crore in Q2 September 2008 over Q2 September 2007.

Pyramid Saimira Theatre jumped 5.46% on reports P. S. Saminathan, one of the promoters plans to buy 24.9% stake in the company from the other two promoters N C Ravichandran and Nirmal Kotecha for around Rs 150 crore.

Piramal Life Sciences rose 5.52%, after the company said it has received regulatory approval from Drug Controller General of India for initiation of phase-I study in India for a new cancer compound, P-1446A-05.

Shri Lakshmi Cotsyn rose 0.98% after the company said its board will meet on 20 October 2008 to consider raising funds via any permissible means.

Tata Communications rose 11.73% after its American depository receipts surged 28.13% to $22 in the US market yesterday, 13 October 2008.

Unitech fell 3.33% on reports the real estate developer is in talks with Norwegian telecom group Telenor to sell a stake in its telecom venture Unitech Wireless.

Core Projects & Infrastructure clocked the highest volume of 2.18 crore shares on BSE. IFCI (1.09 crore shares), Reliance Natural Resources (1.04 crore shares), GVK Power Infrastructure (1.01 crore shares) and Housing Development & Infrastructure (71.08 lakh shares) were the other volume toppers in that order.

ICICI Bank clocked the highest turnover of Rs 257.90 crore on BSE. Reliance Capital (Rs 217.98 crore), Reliance Industries (Rs 210.23 crore), State Bank of India (Rs 185.94 crore) and Core Projects & Infrastructure (Rs 143.85 crore) were the other turnover toppers in that order.

India's central bank said it would conduct a special 14-day repo auction, at which it infuses liquidity into the banking system, for Rs 20000 crore ($4.2 billion) on Tuesday, 14 October 2008. The auction was announced to enable banks to meet the liquidity requirements of mutual funds, the central bank said.

EC today said Chattisgarh will go to vote in two phases on 14 November 2008 and 20 November 2008. The other four states - Madhya Pradesh, Mizoram, Delhi and Rajasthan - will have a single-phase election. While Madhya Pradesh will vote on 25 November 2008, Mizoram and Delhi will vote on 29 November 2008. Rajasthan will go to polls on 4 December 2008. The counting of votes in all states on will take place 8 December 2008.

Asian stocks surged after governments around the world readied plans to take stakes in banks to keep the global financial system from collapsing. Japan's Nikkei, Hong Kong's Hang Seng, China’s Shanghai Composite, Singapore's Straits Times, South Korea's Seoul Composite, and Taiwan's Taiwan Weighted jumped 3.49% to 14.15%. China’s Shanghai Composite fell 0.25%.

Trading in US index futures suggested the Dow would rise 225 points.

European markets were firm. France’s CAC 40, Germany’s DAX and UK’s FTSE 100 rose between 5.32% to 6.01%.

Crude oil for November delivery rose as much as $2.26 to $83.45 a barrel on the New York Mercantile Exchange.

The BSE 30-share Sensex had risen 781.24 points or 7.42% to 11,309.09 and the S&P CNX Nifty had gained 210.75 points or 6.43% to 3,490.70, on Monday, 13 October 2008 on reassuring statements from Finance Minister P Chidambaram, coupled with strong global cues

Huge rally at Wall Street

Indices soar in the final half hour helping Dow register its highest intra day gain

In the US stock market on Monday, 13 October, the indices finished sharply higher snapping an eight session losing streak in the process. The rebound was fueled by several governments taking steps to shore up the financial system and Morgan Stanley completing its deal to receive a capital infusion from a Japanese bank. All ten sectors rose today led by the financial and the energy sector. The indices just soared in the final half hour of trading.

The Dow Jones Industrial Average ended the day down higher by 936 points, to 9,387. The Nasdaq Composite Index, finished higher by 195 points at 1,844. S&P 500 finished higher by 104 points at 1,003. The Dow registered its highest one day intra day gain. S&P 500 registered its highest one day gain in sixty nine years.

The turnaround came today after the Fed and other central banks announced plans to provide as much dollar liquidity as needed in short-term funding markets trying to put some check on the current credit crisis that has sent a turmoil across the world.

Barring GE, all the thirty Dow stocks ended in the green today led by GM and Alcoa gaining 33% and 23% respectively.

Among major events on Wall Street today, Morgan Stanley and Mitsubishi Financial confirmed the closing of a $9 billion, or 21%, investment in MS, relieving some market concerns that the deal would fall apart due to a recent plunge in shares of MS. Under the terms of the renegotiated deal, MUFG acquired $7.8 billion perpetual noncumulative convertible preferred stock at a 10% dividend and a conversion price of $25.25. Morgan Stanley shares soared 87% today.

Treasury Secretary Henry Paulson today laid out more details of his radical plans to buy equity in banks last Friday, while Group of Seven finance ministers and central bank governors urged whatever steps are necessary to restore market confidence.

The U.S. is expected to outline a comprehensive plan of its own as soon as Tuesday, 14 October, 2008 and is likely to include interbank lending and bank debt guarantees, and direct capital injections in financial institutions.

A day earlier, stocks across the Asian region had rebounded after days of losses. The gain in Asian equities was powered by the statement issued by the Group of Seven (G7) issued in its meeting in Washington DC addressing the ongoing financial crisis. According to the statement released, the G-7 agreed that the current situation calls for urgent and exceptional action. It has also decided to take all necessary steps to unfreeze credit and money markets and ensure that banks and other financial institutions have broad access to liquidity and funding.

Also, the 15 eurozone countries said they will guarantee new bank debt until the end of 2009. In addition, several European countries announced plans to guarantee interbank landing and directly inject capital in financial firms. The U.K. government plans to inject up to $63 billion in three U.K. banks.

Volume on the New York Stock Exchange topped 1.8 billion shares, with advancing stocks outgunning those on the decline by a margin of roughly 19 to 1. On the Nasdaq, nearly 1.2 billion shares traded, and advancers outclassed decliners 6 to 1.

For tomorrow, Pepsico and Johnson & Johnson are the main two companies to come out with their earning reports.

Indices seen extending rally

Key local benchmark indices are set to extend yesterday’s, 13 October 2008 rally as governments all over the world came to rescue credit crisis, pouring cash into the financial system. Markets across the globe welcomed this move with US markets staging the biggest single-day stock rally since the Great Depression, 1929. Japan's Nikkei surged over 13%.

On Monday, 13 October 2008, the US government agreed to take $25 billion stakes in several big banks in a bid to shore up the banking system and arrest the financial crisis. The move follows pledges by the governments of Britain, Germany, France and other European countries of more than 1 trillion euros to bolster their own banks.

Further, the Bush administration is reportedly expected to notify Congress that it intends to use the next $100 billion available to it under the $700 billion market rescue plan passed by Congress earlier this month.

US markets surged on Monday, 13 October 2008 cheered by the government’s plan to buy stakes in banks and a Federal Reserve-led push to flood the global financial system with dollars. The Dow Jones industrial average snapped an eight-day losing streak, surging 936.42 points, or 11.08%, to 9,387.61. The Nasdaq Composite jumped 194.74 points, or 11.81% to 1,844.25 and the broader S&P 500 index was up 104.06 points, or 11.57% to 1,003.31.

Asian markets surged in opening trade today, 14 October 2008 after world policymakers led by Europe readied plans to inject cash into banks in the biggest effort yet to ease the global financial crisis.

Japan's Nikkei surged 13.04% or 1079.13 points at 9,355.56, China's Shanghai Composite rose 1% or 20.82 points at 2,094.39, Hong Kong's Hang Seng gained 3.78% or 617.33 points at 16,929.49, Singapore's Straits Times advanced 5.37% or 111.46 points at 2,187.81, South Korea's Seoul Composite added 4.41% or 56.76 points at 1,345.29, and Taiwan's Taiwan Weighted was up 5.40% or 271.28 points at 5,291.72.

Back home, the BSE 30-share Sensex jumped 781.24 points or 7.42% to 11,309.09 and the S&P CNX Nifty rose 210.75 points or 6.43% to 3,490.70, on Monday, 13 October 2008 on assuring statements from Finance Minister P Chidambaram, coupled with strong global cues.

Foreign institutional investors (FIIs) were net equity sellers worth Rs 1060.60 crore while mutual funds bought shares worth Rs 582.31 crore on Monday, 13 October 2008, according to provisional data on NSE. FIIs were net buyers of Rs 2,382.25 crore in the futures & options segment on Monday, 13 October 2008.

On the New York Mercantile Exchange, November crude gained $3.49, at $81.19 a barrel, on Monday, 13 October 2008 as governments in the US and Europe acted to stem the financial crisis.

Pre Session Commentary - Oct 14 2008

Today Markets are likely to open positive as the other markets in Asia have also opened with big gap and the US markets closed up with epoch making numbers. The domestic markets had picked up a phenomenal rally yesterday, however today one could expect a moderate trend. Despite the FIIs pulling out huge amount of money from the markets yesterday, the domestic investors managed to keep the sentiments high. Now the bulls seem to be back on the track after the finance minister reiterated the healthy financial strength of the domestic economy. Further the US, European and other Asian markets too have created a congenial environment of positive sentiments by moving up trend.

On Monday, domestic Markets gained a phenomenal 781.24 points on the back huge recovery on the other Asian markets as well as positive cues from the domestic financial industry. The financial minister also reiterated the liquidity strength of domestic banking industry. There are also talks about some positive reforms in the SEBI guidelines for the FIIs with the Participatory notes issues. The green opening of European markets also helped the buoyant buying sentiments, hence over sentiments looked very positive across the broader markets and banking stocks were the fore runners. After brutal bash in the previous trading day, huge fresh buying was seen in Banking, CG, CD, Realty and Power indices that recorded remarkable gains of 12.30%, 9.93%, 9.39%, 9.16% and 8.71% respectively. During the trading session we expect the market to be trading with a moderate trend.

The BSE Sensex closed at 11,309.09 registering a heavy gain of 781.24 points and NSE Nifty fell by 210.75 points to close at 3,490.75. The BSE Mid Caps and Small Caps closed with loss of 154.58 points and 158.70 points at 3,830.58 and 4,514.15. The BSE Sensex touched intraday high of 11,361.32, and intraday low of 10,817.68.

On Monday, the US market surprised the whole world with astounding gains in its history of trading. S&P 500 posted largest one day percent gain since 1938 and Dow Jones posted largest one-day point gain ever, and largest percent gain since 1933. The Fed and other central banks have assured to inject unlimited liquidity into the system through short term lending. In Europe the Eurozone countries said they will guarantee new bank debt. Germany also guaranteed up to 400 billion euro in interbank lending and U.K. would inject up to 37 billion pounds in three U.K. banks. Crude oil for November delivery was up by $2.32 to $83.51 per barrel on the New York Mercantile Exchange. The recent government’ intervention by US government to support the economy came up as a sign of economic growth and hence sustained demand of crude oil.

The Dow Jones Industrial Average (DJIA) closed with a phenomenal gain of 936.42 points at 9387.61. However NASDAQ index gained 194.74 points at 1844.25 and the S&P 500 (SPX) also inclined by 104.13 points to close at 1003.35 points.

Indian ADRs ended with huge gains on the back of phenomenal rebound in the US markets. In technology sector, Wipro gained by (17.18%) followed by Satyam that ended high by (8.54%) and Patni Computers was high by (9.31%). In banking sector ICICI Bank increased by (39.67%), while HDFC Bank gained (29.96%). In telecommunication sector, Tata Communication inclined by (7.17%), while MTNL gained (19.13%). Sterlite Industries was also high by (18.09%).

Today the major stock markets in Asia opened positive with phenomenal gains. The Shanghai Composite is high by 25.168 points, trading at 2,099.75 and the Hang Seng is up by 588.51 points at 16,900.67. Further Japan''s Nikkei is leading the race of Bull Run by gaining a whopping 1,062.41 points at 9,338.84. Straits Times is trading high by 119.38 points at 2,195.73 and South Korea’s Seoul Composite is also high by 60.45 points at 1,348.98.

The FIIs on Monday stood as net sellers in equity and Debt. Gross equity purchased stood at Rs3959.00 Crore and gross debt purchased stood at Rs204.10 Crore, while the gross equity sold stood at Rs6282.20 Crore and gross debt sold stood at Rs956.20 Crore. Therefore, the net investment of equity and debt reported were (Rs2323.20 Crore) and (Rs752.10 Crore) respectively.

On Monday, the partially convertible Indian Rupee ended at 48.25 per dollar, 0.3% stronger than Friday''s close of 48.46. During the day, the rupee reached a high of 48. It reported increase following gains in stock market and finance minister''s statement.

On BSE, total number of shares traded were 29.41 crores and total turnover stood at Rs3,966.25 Crore. On NSE, total volumes of shares traded were 56.97 crores and total turnover was Rs11,562.62 Crore.

Top traded volumes on NSE Nifty – ICICI bank with total volume traded 30440007 shares, followed by Suzlon with 12414446 shares, ITC with 10914400 shares, Reliance Petro 9796636 shares and SAIL with 9137980 shares respectively.

On NSE Future and Options, total number of contracts traded in index futures was 837703 with a total turnover of Rs13646.29 Crore. Along with this total number of contracts traded in stock futures were 874749 with a total turnover of Rs10734.51 Crore. Total number of contracts for index options was 837986 and total turnover was Rs15614.64 Crore and total number of contracts for stock options was 44441 and notional turnover was Rs628.83 Crore.

Today, Nifty would have a support at 3,375 and resistance at 3,655 and BSE Sensex has support at 11,200 and resistance at 11,950.

Daily call - Oct 14 2008

The markets are likely to open with a bang this morning, on the back of the largest single day point gains in the Dow and a near 13% surge in the Nikkei, which is making up for the time lost in observing the Sports Day Holiday yesterday. But will it be time to buy or sell? That will be a function of the kind of cash you are sitting on and also whether you can handle volatility.

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We observe that, 8 out of the top 10 stocks in terms of derivative open interest, saw a surge in open interest. While it may seem like a normal behaviour, it was not. In all the past large rallies we have seen this year, that have come after days of bear hammering, have actually seen cutting of open interest. It leads us to assume that while the shorts are sitting tight on their positions, the punters who have taken long positions are separate. The shorts in the system appear to be strong, at the same point they are potential bulls, as and when they scamper to cover. We believe that any rise beyond 3650 could be used to book profits as we had a long call on Monday morning. The Credit Default Swaps at 1300 basis points for Morgan Stanley and just a 7 basis point drop in the three month LIBOR does not prompt us to give up our bearish perch as yet.

Core Projects and Technologies slumps 70% in two trading sessions

Core Projects and Technologies slumped 46% to Rs 74 at 14:03 IST on BSE, tumbling for the third session in a row on market talk that shares pledged by some investors were offloaded after margin calls were unmet.

Meanwhile, the BSE Sensex was up 808.49 points, or 7.68%, to 11329.98.

On BSE, 1.21 crore shares were traded in the counter. The scrip had an average daily volume of 6.33 lakh shares in the past one quarter.

Core Projects had tanked 43.7% to Rs 141 on Friday, 10 October 2008. The stock has corrected 70.38% in two trading sessions from Rs 249.85 on 8 October 2008.

The stock hit a high of Rs 164 and a low of Rs 69.90 so far during the day. The stock had a 52-week high of Rs 464.40 on 28 December 2007 and a 52-week low of Rs 122 on 10 October 2008.

The stock had underperformed the market over the past one month till 10 October 2008, declining 50.17% as compared to the Sensex’s decline of 28.20%. It had also underperformed the market in the past one quarter, falling 25.78% as compared to the Sensex’s decline of 24.40%.

The mid-cap software-solutions provider has an equity capital of Rs 17.25 crore. Face value per share is Rs 2.

The current price of Rs 74 discounts its Q1 June 2008 annualised EPS of Rs 6.42, by a PE multiple of 11.52.

According to a report, some high net worth individuals (HNIs) had borrowed money from a couple of non-banking financial companies (NBFCs) by pledging their shares.

Reports quoted a Core Projects spokesperson as saying that the company was unaware of any margin calls. However, in his opinion, the steep fall in the stock price was perhaps due to liquidation of shares, which rose out of the conversion of foreign currency convertible bond (FCCBs). The company had issued FCCBs worth $80 million in May last year, with a conversion price of Rs 167.

A total of 16.75 lakh shares were converted out of these FCCBs in the past one month, the report added.

Core Projects and Technologies’ net profit fell 4% to Rs 13.32 crore on a 25.70% rise in sales to Rs 64.90 crore in Q1 June 2008 over Q4 March 2008.

Core Projects & Technologies provides information technology products and services. The company provides services including onsite and offsite consulting and knowledge management services, systems integration, global postioning system based vehicle tracking and detection systems, application support for their products, and offshore outsourcing.

Market may open on a firm note

The Market may log gains due to optimism amongst the investors. The market is also likely to see more action on the back of a firm US markets and over 4-13% gains in majority of the Asian indices in the prevailing trades. Among the key local indices, the Nifty could test 3550 on the upside and has supports at 3450. The Sensex has a likely support at 11150 and may face resistance at 11450. Wall Street roared back from its worst week ever with one of its best single days ever on Monday, as governments pledged to pour cash into struggling banks to restore confidence in a rocky global financial system, with Dowjones gained 936 points to close at 9387 while the Nasdaq ended 195 points higher at 1844. Among the Indian ADRs trading on the US bourses, Wipro was the major gainer by 39.67%, followed by ICICI Bank up by 29.96%, VSNL 28.13%, Infosys advanced 23.42% and HDFC Bank 19.13%, while Satyam, Patni Computer, Dr Reddy, Tata Motors, MTNL & Rediff were up by 7-17% each. Crude oil prices raised, the US light crude oil for November delivery moved up by $3.49 at $81.19 a barrel. In the commodity segment, the Comex gold for December delivery slipped by $16.50 to settle at $842.50 an ounce.

Currency Update - Oct 14 2008

Currency Update - Oct 14 2008

Daily Market Outlook - Oct 14 2008

Daily Market Outlook - Oct 14 2008

Daily Technicals - Oct 14 2008

Daily Technicals - Oct 14 2008

IPO mayhem

The Indian primary market has virtually dried up as the total value of initial public offering of 2007 has witnessed an erosion of about USD 3.43 billion so far this year, with the media space being worst hit, a latest report says.

The bullish trend in the capital market was see in the IPO volume of 2007, as a record volume of USD 8.18 billion was raised.

However, rough market conditions have resulted in a negative return of about 42 per cent or a value erosion of USD 3.43 billion in absolute terms till October 10, according to a report of Nexgen Capitals, the merchant-banking arm of brokerage firm SMC Global Securities.

"In a bear market fund raising activity becomes very difficult. Excess of bull market last year has resulted in the bear market this year. In a bull market takers for every issue at every level can be found but today's market is a buyers market," Nexgen Capitals Equity Head Jagannadham Thunuguntla said.

In the backdrop of bearish capital market conditions this year, the IPOs of 2007 have reported wealth erosion across the industry segments. "More than 60 per cent of the value is eroded in the industry segments of auto, healthcare, manufacturing, media and real estate," the report added.

"Media was the worst hit space as business in this sector is very difficult to continue, besides this sector has a very long gestation period," Thunuguntla said, adding "when a market falls the capex driven firms such as infrastructure and realty are affected, while media related firms which generally have in-operational cashflows also get negative impact."

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There were 103 IPOs in 2007, out of which 88 representing (85 per cent) were in loss and only 15 in profit.

So far in 2008, IPO volumes have seen substantial drop to USD 4.23 billion, comparison with last year when the IPO volume was as much as USD 8.31 billion, indicating a YoY drop of 47 per cent on annualised basis.

An analysis of various sectors show that media suffered the maximum loss (75.05 per cent), followed by auto (73.70 per cent), healthcare (64.71 per cent), manufacturing (60.70 per cent) and real estate (59.98 per cent).

Meanwhile, BFSI (banking, financial services and insurance) reported a loss of 24.05 per cent in its return, infrastructure (15.56 per cent), IT & ITeS (48.06 per cent), retail (44.41 per cent) and telecom (29.54 per cent).

The report added, "the mark-to-market (MTM) losses of IPOs of 2008 is as high as 59 per cent with a loss of about USD 2.5 billion on absolute basis".

The current MTM losses in the IPOs of 2008 have been experienced across the industry segments. Some of the IPOs which have seen heavy over subscription such as Future Capital, Reliance Power have seen serious value erosion.

So far this year, there were 34 IPOs, of which 29 issues representing 85 per cent of the total volume are in loss, while 5 IPOs amounting to 15 per cent are in profit.

Indian Hotels - BUY

We recommend a buy in Indian Hotels Company from a short-term horizon. It is clearly evident from the charts of the company that it has been on long-term downtrend from it January peak of Rs 163, forming lower peaks and lower troughs.

However, the stock’s downtrend appears to have ended as the stock recently found support at around Rs 55, which is also a significant long-term support level. After taking support at this level, the stock bounced up gaining bullish momentum. On October 13, the stock surged 4 per cent reinforcing the bullishness.

The daily relative strength index has recovered from the oversold area and the weekly RSI is recovering from that area. We take a contrarian stance on the stock from a short-term perspective and anticipate its current up-move to prolong until it hits our price target of Rs 67 in the approaching trading sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 56.

via BL

Morning Notes - Oct 14 2008

Morning Notes - Oct 14 2008