Follow-through rally expected

In golf as in life it is the follow through that makes the difference.

Some prankster may have threatened to blow up the BSE and NSE buildings on Monday. But except the cops and a few others nobody seemed to be bothered much as the bulls were firing on all cylinders. Climbing Mount 12K has taken the Sensex six odd months if you please. The market seems to have done a global catch up rally. And it appears that the global funds are more confident than their local counterparts.

Today promises to be another bright start for the bulls. But, the Hang Seng has slipped in the red after a higher start and the Shanghai market is more or less flat.

All eyes are now on the election results. A government formed by either the UPA or the NDA will be welcome. But, anything other than this scenario may temporarily make some dent in the sentiment.

There is bound to be a correction at some point during this rally. So, lock in some gains and put the money back when the anticipated slide takes place. Overall, the mood remains upbeat on the back of improving economic data and return of risk appetite. These are times we know many won't listen but it really helps to avoid stocks with weak fundamentals.

IndusInd Bank and Swaraj Engine will announce their results today.

Larsen and Toubro (L&T) is to announce a new development in its international operations later today in Mumbai.

FIIs were net buyers in the cash segment on Monday at Rs14.17bn while the local institutions were net sellers at Rs926mn. In the F&O segment, the foreign funds were net buyers at Rs10.4bn. On April 29, the foreign funds were net buyers at Rs3.44bn in the cash segment.

US stocks surged anew on Monday, sending the key indices to multi-month highs after reports on pending home sales and construction spending added to optimism that a global economy recovery may already be underway. Data released earlier in the day showed that China's manufacturing sector registered its first growth in nine months, sending stocks in Asia and Europe sharply higher.

The Dow Jones Industrial Average gained 214 points, or 2.6%, to 8,426.74, ending at the highest point since Jan. 13. The S&P 500 index added nearly 30 points or 3.4%, to 907.24, ending above 900 for the first time since Jan. 8 and turning higher for the year. The Nasdaq Composite index rose 44 points, or 2.6% to 1,763.56, ending at the highest point since Nov. 4.

US stocks have been surging since March 9 on bets that the worst for the economy is over. Those expectations were buffeted on Monday by the day's economic news.

The March pending home sales index from the National Association of Realtors jumped 3.2% from February, surprising economists who were looking for the index to hold steady.

Another report, from the government, showed that construction spending rose 0.3% versus forecasts for a decline of 1.6%. Spending fell 1% in February.

Investors were also responding to weekend comments from Berkshire Hathaway chairman Warren Buffett, who said he sees the recession ending soon and predicts that no big bank will fail. He also talked up Wells Fargo, one of Berkshire's largest holdings.

US stocks had a strong April, in which the S&P 500 spiked 9.4%, the Dow gained 7.3% and the Nasdaq jumped 12.3%. The S&P 500 and Dow have gained for seven of the past eight weeks; the Nasdaq has jumped eight weeks in a row.

But, there are still enough headwinds for the market that makes analysts wary to predict that the bear market is over.

Financial shares are likely to be choppy ahead of the release of the government's "stress tests" on Thursday. The government will release details on the 19 individual companies tested as well as the broad group of corporations.

The results are expected to include estimated loan losses in the event that the economy deteriorates further, along with an estimate of how much more capital banks would need to raise in such an environment.

Citigroup is reportedly among the banks that will need to generate more money to stay afloat. The bank may have to raise another $10 billion, according to the Wall Street Journal (WSJ).

Bank of America shot down reports in the Financial Times (FT) that it has been told by the government that it needs to raise $10 billion in fresh capital. Wells Fargo has reportedly been asked to raise additional money as the result of preliminary stress tests.

However, shares of the three big lenders rallied, along with the rest of the bank sector, as investors took the news in stride. The KBW Bank sector index gained 14.7%.

Sprint Nextel reported a quarterly profit, excluding items, surprising analysts who were looking for a quarterly loss. Shares gained 8%.

Treasury prices were little changed, with the yield on the benchmark 10-year note at 3.15%, little changed from on Friday.

In currency trading, the dollar fell versus the euro and gained against the yen.

US light crude oil for June delivery rose $1.27 to settle at $54.77 a barrel on the New York Mercantile Exchange.

COMEX gold for June delivery rose $14 to settle at $902.20 an ounce.

European stocks too advanced further on Thursday, helping a key regional index to record its best-ever monthly performance in April.

Trading over the 200-point mark for the first time since early February, the pan-European Dow Jones Stoxx 600 index jumped 1.5% to 200.23. This move brings gains for the month to 13.5% - the best monthly performance for the index since Stoxx started tracking the data at the end of 1986.

Germany's DAX 30 index rose 1.4% to 4,769.45, while the French CAC-40 index was up 1.4% at 3,159.85.

Indian markets extended gains to second straight trading session on Monday with the BSE Sensex rising over 1,100 points in two days.

The metals, IT and the banking indices were in momentum outperforming the main index. Even the mid-cap and the small-cap stocks attracted buying both the indices added over 3.5% each.

Finally, the BSE Sensex rallied 731 points to close at 12,134. The NSE Nifty surged by 180 points to close at 3,654.

All the 30-components of Sensex ended in the positive terrain with Sterlite, Hindalco, HDFC, ICICI Bank, Tata Steel and M&M leading from the front.

Shares of Siemens rallied by over 9% to Rs336 after the company's Energy Sector has received an order for approximately Rs790mn for the supply of 11kv Air Insulated Switchgear from the Company's technology partner Qatari German Switchgear Co. WLL for supply to Qatar General Electricity and Water Corporation (KAHRAMAA) distribution network. The order is required to be completed over a period of 2 years.

Shares of Reliance Communications surged by over 6.5% to Rs229 after net profit beat market estimates. Net income fell 3.3% to Rs14.5bn in the three months ended March 31, from Rs15bn a year earlier.

Shares of Maruti surged by over 3% to Rs838 after the company announced that it sold a total of 71,748 vehicles in April 2009. This includes 6,891 units for export.

This is the fourth consecutive month of sales crossing 70,000 units mark. The company had sold a total of 62,336 vehicles in April 2008. Maruti Suzuki's volume in the domestic A2 segment grew by 9% while in the A3 segment the sales volume grew by 69% during the month as compared to sales in April 2008.

Shares of Bajaj Auto gained by 3.7% to Rs663. The company’s total vehicle sales in April declined by 23% to 169,119 units from 221,843 units sold in the same period last year.

The company’s exports slipped by 29% in March to 51,887 units from 73,624 units from last year. Motorcycle sales declined by 26% in March. However, three wheeler sales rose by 5% to 18,867 units in March.

After a strong rally on Monday there is a likelihood of correction as traders and investors would look to book some profits at higher levels. The outcome of the Lok Sabha could also provide a trigger. Another cause for concern is the spread of swine flu and its economic fallout.

SGX Nifty Live Update - 2 - May 5 2009

SGX Nifty trading 3,644.0 and is -8.5 points

Indian Hotels Company

We recommend a buy on the Indian Hotels Company stock from a short-term trading perspective. After recording a 52-week low at Rs 34 on March 12, the stock began to trend up. It has been on a medium-term uptrend since the March low. After crossing its 50-day moving average, the stock witnessed a sharp rally during the first week of April. However, it encountered resistance at Rs 55 and is consolidating sideways. On May 4, the stock resumed its uptrend by gaining almost 9 per cent, accompanied with good volume. The stock is trading well above its 21- and 50-day moving averages. The daily relative strength index (RSI) has re-entered the bullish zone from the neutral region. We are bullish on the stock from a short-term perspective. We anticipate it to break through the resistance at Rs 55 and rally until it hits our price target of Rs 60 in the near future. Traders with short-term trading perspective can buy the stock while maintaining a stop-loss at Rs 50.5 level.

SGX Nifty Live Update - May 5 2009

SGX Nifty Live Update at 3,672.0 trading at +19.5

Bullion metals end higher

Weak dollar imparts good shine on precious metals

Precious metals ended higher on Monday, 04 May, 2009 at Comex. Prices rose today as optimistic economic reports mainly on the housing front weakened the dollar thereby increasing the appeal of precious metals as a safe bet for investment.

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

On Monday, Comex Gold for June delivery gained $14 (1.6%) to close at $902.2 an ounce on the New York Mercantile Exchange. Last week, gold ended lower by 3%. Year to date, gold prices are higher by 1.5%.

For the month of April, gold lost 3.7%, the second consecutive monthly drop. For the month of March, gold fell 2.1%, down for the first month in five. But the metal gained 4.3% in the first quarter. Before March, for the month of February, gold ended higher by 7.4%. For January, 2009, gold had gained 3.9%.

On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (15%) since then.

On Monday, Comex silver futures for July delivery gained 61.3 cents (4.9%) at $13.113 an ounce. Year to date, silver has climbed 11.4% this year. For 2008, silver had lost 24%.

On Monday, in the currency market, the dollar fell after the home-sales data, with the dollar index, which gauges the value of the greenback against a trade-weighted basket of six major rivals, down 0.8% at 83.847.

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

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

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

At the MCX, gold prices for June delivery closed higher by Rs 142 (0.99%) at Rs 14,433 per 10 grams. Prices rose to a high of Rs 14,595 per 10 grams and fell to a low of Rs 14,275 per 10 grams during the day's trading.

At the MCX, silver prices for May delivery closed Rs 671 (3.2%) higher at Rs 21,445/Kg. Prices opened at Rs 20,791/kg and rose to a high of Rs 21,548/Kg during the day's trading.

Crude glides up again

Strong housing report boosts prices

Crude oil ended higher for the fourth straight day on Monday, 04 May, 2009. Couple of optimistic economic reports gave Wall Street another boost today. Better than expected data on construction and pending home sales front gave investors some hope that the worst might be over in terms of the ongoing recession and energy demand might pick up in the coming months.

On Monday, crude-oil futures for light sweet crude for June delivery closed at $54.47/barrel (higher by $1.27 or 2.3%) on the New York Mercantile Exchange. It earlier fell more than 1% to as low as $52.56. Last week, crude ended higher by 3.2%.

Crude ended April higher by 2.9%. Previously, March trading ended up 10.9%. It rallied 11.3% in the first quarter. For the month of February, crude prices had ended higher by 1.5%.

Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 61% since then. Year to date, in 2009, crude prices are higher by 16.3%. On a yearly basis, crude prices are lower by 48%.

Economic reports garnered most of the attention since morning today. The National Association of Realtors reported today that pending home sales in US improved in March due to falling prices, lower mortgage rates and tax subsidies.

As per the report, NAR's pending home sales index rose 3.2% in March after a 2% rise in February. It was also up 1.1% compared with a year earlier. The index is based on signed sales contracts on previously owned homes. Sales are recorded in the existing-home sales report upon closing, usually six to eight weeks after the contract is signed.

In a separate report, The Commerce Department reported today that construction outlays in US rose 0.3% in March, better than the 1.5% decline expected. January and February spending was revised higher as well.

On Monday, in the currency market, the dollar fell after the home-sales data, with the dollar index, which gauges the value of the greenback against a trade-weighted basket of six major rivals, down 0.8% at 83.847.

Also at the Nymex on Monday, June reformulated gasoline rose 6.86 cents, or 4.5%, to $1.586 a gallon and June heating oil added 4.61 cents, or 3.3%, to $1.4345 a gallon.

Natural gas for June delivery advanced 17.9 cents, or 5%, to $3.725 per million British thermal units.

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

At the MCX, crude oil for May delivery closed at Rs 2,678/barrel, higher by Rs 34 (1.3%) against previous day's close. Natural gas for April delivery closed at Rs 184.6/mmbtu, higher by Rs 6.7/mmbtu (3.7%).

May sees new peak

The Sensex closed in the positive territory for the second consecutive session led by gains in metal major Sterlite Industries, and information technology and
banking stocks. The market resumed on a strong note backed by positive global cues and strong investor appetite for heavyweights. The Sensex quickly breached 12000 levels in early trades and held on its gains. Relentless buying in front-line stocks towards the close helped the index to touch to an intra-day high of 12162, up 759 points. The Sensex finally wrapped up the session 732 points higher at 12135. Nifty closed at 3654 by adding 180 points.

The breadth of the market was positive. Of the 2,612 stocks traded on the BSE 1,771 stocks advanced, whereas 770 stocks declined. Seventy one stocks ended unchanged. All the sectoral indices ended positive. The BSE Metal ended firm with gains of 8.77% while the BSE IT rose 8.40% and the BSE Bankex added 7.89%. All other indices gained 1-5% each.

Action in several index heavyweights lifted the market. Sterlite Industries led the pack and shot up by 16.56% at Rs476.80. Hindalco Industries soared by 13.74% at Rs61.25, Mahindra & Mahindra surged 13.07% at Rs549.80, HDFC flared up by 13.06% at Rs1,957.60, ICICI Bank jumped by 10.74% at Rs529.05, Tata Steel added 10.48% at Rs263, Wipro advanced by 10.35% at Rs364.60 and ITC moved up by 8.75% at Rs205.65. While, HDFC Bank, Larsen & Toubro, Infosys Technologies, Reliance Infrastructure and the remaining Sensex stocks posted gains in the range of 1-7%.

Metal stocks were the stars of the day. Hindustan Zinc shot up by 9.44% at Rs483.15, Jindal Saw soared 8.14% at Rs210.75, Steel Authority of India flared up by 7.96% at Rs118, JSW Steel added 7.49% at Rs361.75 and Nalco was up 7.33% at Rs227.10. Select IT stocks too logged sharp gains. HCL Technologies scaled up by 18.71% at Rs154.15, NIIT jumped by 12.48% at Rs29.75, Financial Technologies India added 11.93% at Rs792.05, Wipro gained 10.35% at Rs364.60 and Infosys Technologies was up 8% at Rs1629.25.

Over 7.12 crore share of Cals Refineries changed hands on the BSE followed by Unitech (3.14 crore shares), Reliance Natural Resources (1.21 crore shares), Infrastructure Development Finance Company (99.25 lakh shares) and Suzlon Energy (92 lakh shares).

IDFC

IDFC

BSE Bulk Deals to Watch - May 4 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
4/5/2009 532114 AREALTY HS FII INVESTMENTS LIMITED B 3100000 11.98
4/5/2009 532114 AREALTY RAJABABU SAMPATRAO BANDELA S 2080000 11.98
4/5/2009 532114 AREALTY MASTER VISION SURVEYORS P LTD S 940000 11.98
4/5/2009 532668 AURIONPRO SO BAKLIWAL FINCOM PVT. LTD. B 76000 86.81
4/5/2009 590059 BIHAR TUBES APL INFRASTRUCURE PVT LTD B 800000 53.95
4/5/2009 590059 BIHAR TUBES MANJU SINGHAL S 300000 53.95
4/5/2009 590059 BIHAR TUBES VINOD KUMAR SINGHAL S 300000 53.95
4/5/2009 590059 BIHAR TUBES ANUJ SINGHAL S 300000 53.96
4/5/2009 505426 DAGGER FORST CHANDRAKANTJVALLAKATI B 41862 14.24
4/5/2009 505426 DAGGER FORST CHANDRAKANTJVALLAKATI S 82862 13.92
4/5/2009 506480 GULF OIL COR ASHITA BHAVIN PAREKH B 465392 41.60
4/5/2009 506480 GULF OIL COR ESQUIRE PVT. LTD. S 475000 41.60
4/5/2009 532081 K SERA SERA S V ENTERPRISES B 913494 10.15
4/5/2009 532081 K SERA SERA S V ENTERPRISES S 913494 10.11
4/5/2009 532819 MINDTREE LTD OPG SECURITIES P LTD B 288809 341.20
4/5/2009 532819 MINDTREE LTD OPG SECURITIES P LTD S 288809 341.34
4/5/2009 517334 MOTH SUMI SY SAMVARDHANA MOTHERSON FINANCE LIMITED B 8950213 82.13
4/5/2009 517334 MOTH SUMI SY VIVEK CHAAND SEHGAL S 2186826 81.50
4/5/2009 517334 MOTH SUMI SY VAMAN AUTO INDUSTRY S 5664937 82.50
4/5/2009 506618 PUNJAB CHEM EMERGING CAPITAL ADVISORS LIMITED B 26000 199.50
4/5/2009 506618 PUNJAB CHEM SHAISHAV RAKESHBHAI SHSH S 25000 199.50
4/5/2009 523445 RELIANCE INDUSTRIAL INFRASTRUC OPG SECURITIES P LTD B 111071 765.97
4/5/2009 523445 RELIANCE INDUSTRIAL INFRASTRUC OPG SECURITIES P LTD S 111071 765.83
4/5/2009 512048 SPLASH MEDIA ATUL SINGHI B 15000 55.88
4/5/2009 512048 SPLASH MEDIA HITESHBABUBHAIDOBARIYA S 19000 55.97
4/5/2009 531364 ZENU INFOTEC G.K. TRADING PVT. LTD. B 100000 5.93
4/5/2009 531364 ZENU INFOTEC VIDYA M CHALKE S 100000 5.93

NSE Bulk Deals to Watch - May 4 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
04-MAY-2009,BIRLAPOWER,Birla Power Solutions Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,2253502,2.60,-
04-MAY-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD.,BUY,105090,2437.71,-
04-MAY-2009,KSERAPRO,K Sera Sera Productions L,BASMATI SECURITIES PVT LTD,BUY,357725,10.15,-
04-MAY-2009,KSERAPRO,K Sera Sera Productions L,NEWGEN INTERNATIONAL PRIVATE LIMITED,BUY,405318,10.00,-
04-MAY-2009,RIIL,Reliance Indl Infra Ltd,C D INTEGRATED SERVICES LTD.,BUY,138834,764.19,-
04-MAY-2009,RIIL,Reliance Indl Infra Ltd,GENUINE STOCK BROKERS PVT LTD,BUY,76348,763.07,-
04-MAY-2009,RSSOFTWARE,R. S. Software (I) Ltd.,IQROOP SINGH SEKHON,BUY,40000,18.03,-
04-MAY-2009,SARLAPOLY,Sarla Performance Fibers,SATIDHAM INDUSTRIES PVT. LTD,BUY,59530,42.78,-
04-MAY-2009,SELMCL,SEL Manufacturing Company,TOUCHSTONE FINVEST SERVICES PRIVATE LIMITED,BUY,170179,90.57,-
04-MAY-2009,STAR,Strides Arcolab Limited,RELIANCE CAPITAL MUTUAL FUND,BUY,271000,99.00,-
04-MAY-2009,TIDEWATER,Tide Water Oil Co. (India,DECENT FINANCIAL SERVICES PVT LTD,BUY,6983,3500.00,-
04-MAY-2009,AUTOLITIND,Autolite (India) Ltd,LOTUS GLOBAL INVESTMENTS LIMITED,SELL,100088,22.00,-
04-MAY-2009,BIRLAPOWER,Birla Power Solutions Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,2144485,2.60,-
04-MAY-2009,BIRLAPOWER,Birla Power Solutions Ltd,SOMERSET EMERGING OPPORTUNITIES FUND,SELL,13000000,2.60,-
04-MAY-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD.,SELL,105090,2438.77,-
04-MAY-2009,KSERAPRO,K Sera Sera Productions L,BASMATI SECURITIES PVT LTD,SELL,562725,10.03,-
04-MAY-2009,KSERAPRO,K Sera Sera Productions L,NEWGEN INTERNATIONAL PRIVATE LIMITED,SELL,405318,10.14,-
04-MAY-2009,RIIL,Reliance Indl Infra Ltd,C D INTEGRATED SERVICES LTD.,SELL,138834,764.29,-
04-MAY-2009,RIIL,Reliance Indl Infra Ltd,GENUINE STOCK BROKERS PVT LTD,SELL,76348,763.48,-
04-MAY-2009,SARLAPOLY,Sarla Performance Fibers,RAJESH RAJNIKANT VED,SELL,57530,42.81,-
04-MAY-2009,SELMCL,SEL Manufacturing Company,TOUCHSTONE FINVEST SERVICES PRIVATE LIMITED,SELL,96902,88.80,-
04-MAY-2009,TIDEWATER,Tide Water Oil Co. (India,MADANLAL LTD,SELL,7000,3500.00,-

Post Session Commentary - May 4 2009

Indian market witnessed sharp rally to close with strapping gains tracking firm cues from the markets all over the world. BSE Sensex zoomed over 6% to close above 12,100 mark for the first time since Oct''08, and NSE Nifty surged over 5% to end above 3,600 level. Benchmark indices were on roll on a survey that showed activity in Indian factories expanded for the first time in five months in April as growing orders pipeline pointed to a tentative recovery. The ABN Amro Bank''s purchasing managers'' index (PMI) based on a survey of 500 companies increased to 53.3 in April from 49.5 during March. Any level above 50 indicates expansion in manufacturing activity.

The market opened on pleasant note after a long weekend mirroring strength across Asian markets. Further, domestics stocks continued to touch a new high as US consumer confidence has improved to its best level since September 2008. The consumer sentiment index increased to 65.1 in April 2009 from 57.3 in March 2009. Bulls were on full momentum to cope up with the early gains in the US and other markets across the world during the previous two day’s trading close of the domestic markets. Phenomenal opening of European markets also helped traders to keep there buying morale firm. Finally, markets concluded its buoyant movement with mammoth gains. In sectoral indices, strong buying was witnessed mainly in Metal, IT, Bank, Capital Goods, Teck, FMCG, Reality, Auto and Consumer Durables, stocks. The broader market stocks also followed the same trend as Mid Cap and Small Cap stocks ended with gains of more than 3% each.

Among the Sensex pack all 30 stocks ended in green territory. The market breadth indicating the overall health of the market remained extremely positive as 1771 stocks closed in green while 770 stocks closed in red and 71 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 731.50 points at 12,134.75 and NSE Nifty ended up by 180.05 points at 3,654. BSE Mid Caps and Small Caps closed with gains of 137.43 and 140.80 points at 3,651.29 and 4,081.70 respectively. The BSE Sensex touched intraday high of 12,161.90 and intraday low of 11,635.24.

Gainers from the BSE Sensex pack are Sterlite Industries (16.56%), Hindalco (13.74%), M&M Ltd (13.07%), HDFC (13.06%), HDFC (7.37%), ICICI Bank (10.74%), Tata Steel (10.48%), Wipro Ltd (10.32%), ITC Ltd (8.75%), HDFC Bank (8.54%), L&T Ltd (8.28%), Infosys Tech (8.09%), Reliance Infra (7.75%), TCS Ltd (7.06%), SBI (6.93%), RCom (6.61%), Tata Motors (6.13%) and JP Associates (6.03%).

On the global markets front the Asian markets which opened before the Indian market, ended higher on recovery hopes as U.S. manufacturing activity in April contracted at a slower-than-expected pace last month that was slowest rate since September. Expansion in China for the first time in nine months and pledge of regional leaders to start a $120 billion foreign-currency reserve pool, also contributed to the positive sentiments. Shanghai Composite, Hang Seng, Nikkei 225, Straits Times index and Seoul Composite ended higher by 82.34, 860.06, 149.11, 108.43 and 28.56 points at 2,559.91, 16,381.05, 8,977.37, 2,028.71 and 1,397.92 respectively.

European markets which opened after the Indian market are trading in green. In Frankfurt the DAX index is trading up by 78.58 points at 4,848.03 and in Paris CAC 40 is trading higher by 34.36 points at. 3,194.21. The UK markets are closed today for a public holiday.

The BSE Metal index outperformed the benchmark indices and gained (8.77%) or 603.66 points at 7,489.47 on rise in metal prices on the London Metal Exchange. Scrips that gained are sterlite Industries (16.56%), Hindalco (13.74%), Tata Steel (10.48%), Hindustan Zinc (9.44%) and Jindla Saw (8.14%).

The BSE IT ended up by (8.40%) or 223.69 points at 2,887.04 on hopes that measures by the US government to revive the economy may provide results. Gainers are HCL Tech (18.71%), NIIT Ltd (12.48%), Finance Tech (11.93%), Wipro Ltd (10.32%) and Infosys Tech (8.09%).

The BSE Bank index increased by (7.89%) or 448.31 points to close at 6,133.53 on hopes that drop in interest rates will flourish lending growth. Main gainers are ICICI Bank (10.74%), Kotak Bank (10.27%), Axis Bank (9.57%), Indus Ind Bank (8.63%), Allahabad Bank (8.48%) and Yes Bank (7.90%).

The BSE Capital Goods stocks also advanced by (5.88%) or 465.42 points to close at 8,374.17. Major gainers are Thermax Ltd (10.36%), Walchand In (9.98%), Punj Lloyd (9.97%), Crompton Greaves (9.30%) and Siemens Ltd (9.21%).

The BSE Teck index gained (5.86%) or 126.78 points to close at 2,289.78. Gainers are HCL Tech (18.71%), NIIT Ltd (12.48%), Finance Tech (11.93%), Wipro Ltd (10.32%), Infosys Tech (8.09%) and Idea Cell (7.58%).

The BSE FMCG index also ended up by (5.43%) or 113.74 points at 2,208.74. Ruchi Soya (19.43%), ITC Ltd (8.75%), United Spr (3.22%), Godrej Cons (3.18%) and Nestle Ltd (2.99%) ended in positive territory.

Mahindra and Mahindra zoomed by 13.07%. The company has reported 14.8% increase in total sales in April 2008 as compared to a year ago period. The auto giant’s domestic sales grew 16% on an annual basis while exports declined by 39.3%.

Tata steel surged by 10.48% after a news that it may accept an invitation from the Liberian government to rebid for a $1.6-billion iron ore mine, from which was initially barred.

SBI is closed up by 6.93%. On 2nd May, the bank reduced deposit rates by 0.25% on all tenures effective from May 4. With this, 7.5% rate will be applicable to one-year to less than two-year deposits as against 7.75% earlier.

Ranbaxy Laboratories ended higher by 2.83%. The company commenced Phase III clinical trial for its new Anti-malaria combination drug, Arterolanc maleate + Piperaquine phosphate in India, Bangladesh and Thailand.

Siemens Ltd gained 9.21%. The engineering major has signed a contract with Gujarat-based Adani Power for transportation of power from its Mundra unit in Gujarat to Haryana. The contract values Rs 1,380 crore. The project is scheduled to be completed within two years and will be western India''s second private-private partnership (PPP) power transmission line.

TVS Motor Company surged 5.14% after two-wheeler sales rose 3% to 1,13,119 units in April 2009 over April 2008.

Bharti Airtel gained 1.15%. The company and Alcatel-Lucent have formed a Joint Venture to manage Bharti Airtel’s pan-India Broadband and Telephone services and help airtel’s transition to Next Generation Networks.

Maruti Suzuki India increased by 2.85% after vehicle sales rose around15% to 71,748 units in April 2009 over April 2008.

Biggest single-day gain in Sensex since 31 October 2008

Key benchmark indices settled near day's high, striking 7-month highs, mirroring strong global cues. The barometer index BSE Sensex gained 731.50 points, or 6.41%, outperforming its global peers. Strong domestic and global economic data and aggressive build-up of fresh derivatives positions in May 2009 series triggered a solid rally on the bourses today, 4 May 2009. The barometer index BSE Sensex surpassed the psychological 12,000 level.

Activity in Indian factories expanded for the first time in five months in April 2009 as a swelling orders pipeline pointed to a tentative recovery, a survey showed on Monday, 4 May 2009. The ABN AMRO Bank purchasing managers' index (PMI) based on a survey of 500 companies, rose to 53.3 in April 2009 from 49.5 in March 2009, climbing above the threshold of 50 that separates expansion from contraction. The latest reading is the highest in seven months and it has steadily risen after hitting a trough of 44.4 in December 20089.

Manufacturing makes up about 16% of India's gross domestic product. The boost in manufacturing index came from a surge in new orders. The new orders index rose to 54.9 in April 2009 from 49.5 in March 2009. Several research notes in the past few days have pointed to improvement in economic activity in the months ahead.

Financial stocks led gains in European markets today, 4 May 2009, on improved economic data in the euro-zone. Germany's DAX gained 1.80% and France's CAC 40 index rose 1.16%. The stock market in UK was shut for a public holiday

The euro-zone manufacturing purchasing managers' index came in at 36.8 in April 2009, above 33.9 in March 2009. Stocks also rose as the US said swine flu has milder symptoms than the world's previous influenza outbreaks.

Asian stocks rose, led by technology and finance companies, as manufacturing in China expanded for the first time in nine months and regional leaders pledged to start a $120 billion foreign-currency reserve pool. Key benchmark indices in China, Hong Kong, Singapore, Taiwan, South Korea gained by between 2.09% and 5.64%. Japan's stock market is closed for a three-day holiday.

A China purchasing manager's index rose to a seasonally adjusted 53.5 in April 2009 from 52.4 in March 2009, according to a statement from the Federation of Logistics and Purchasing on 1 May 2009. A reading over 50 indicates an expansion of activity in the manufacturing sector while one below 50 suggests contraction.

The Association of Southeast Asian Nations, together with Japan, China and South Korea, said they will start a $120 billion foreign-currency reserve pool by the end of the year to help revive investor confidence. The pledge was agreed upon at a weekend meeting in Bali, Indonesia.

Trading in US index futures showed the Dow could rise 50 points at the opening bell on Monday, 4 May 2009. US stocks gained on Friday, 1 May 2009 after better-than-expected reports on consumer confidence and manufacturing. The Dow Jones Industrial Average gained 44.29 points, or 0.54%, to 8,212.41. The Standard & Poor's 500 Index rose 4.71 points, or 0.54%, to 877.52 and the Nasdaq Composite index rose 1.90 points, or 0.11%, to 1,719.20.

US consumer sentiment rose in April 2009, according to a survey released on Friday. The consumer sentiment index rose to 65.1 in April 2009 from 57.3 in March 2009.

Another data showed that the pace of decline in the US manufacturing sector slowed in April 2009. The closely watched ISM purchasing managers' index rose to 40.1% in April 2009 from 36.3% in March 2009. It was the highest reading since September 2008, when the global financial crisis intensified.

Bank of America and Citigroup are working on plan to raise more than $10 billion each in capital after preliminary findings of the US stress test on banks, according to media reports. However, the two banks as well as two other lenders, will attempt to persuade the Treasury and the Federal Reserve that the findings of the stress tests into their financial health were too pessimistic, the Financial Times reported on Monday, citing people close to the situation.

The results of the government's Supervisory Capital Assessment Program, otherwise known as the "stress test," imposed on 19 major banks will be released Thursday,7 May 2009. The Federal Reserve has already said that most US banking organizations had enough capital.

Closer home, India's exports declined by 33% to $11.5 billion while imports dipped 34% to $15.5 billion in March 2009 over March 2008, provisional data released on Friday, 1 May 2009 showed. Exports registered its sixth straight fall in March 2009 on global economic slump.

The BSE 30-share Sensex jumped 731.50 points, or 6.41%, to 12,134.75, registering its biggest single day point gain since 31 October 2008. The Sensex opened 231.99 points higher at 11,635.24, which was also its day's low. At the day's high of 12,160.32, the Sensex gained 757.07 points in late trade, its highest level since 7 October 2008.

The BSE Sensex has advanced 2,487.44 points or 25.78% in the calendar year 2009 from its close of 9647.31 on 31 December 2009.

Coming back to today's trade, the S&P CNX Nifty advanced 180.05 points, or 5.18%, to 3,654. Nifty May 2009 futures were at 3659.90, at a premium of 5.90 points as compared to the spot closing. Turnover in NSE's futures & options (F&O) segment was Rs 46,344.80 crore much lower than Rs 80,063.40 crore on Wednesday, 29 April 2009.

Signs of an improvement in the Indian economy triggered a solid rally on the domestic bourses in the past few days. The rally was also a part of a sharp surge in global equities triggered by hopes the worst of the global economic recession may be over. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has jumped 3974.35 points or 48.70%

Foreign institutional investors (FIIs) played a key role in the recent rally. FII inflow in April 2009 totaled Rs 7,039.90 crore, with their inflow in calendar year 2009 totaling Rs 368.10 crore, till 28 April 2009.

The BSE Mid-Cap index gained 3.91% to 3,651.29 and the BSE Small-Cap indices rose 3.57% to 4,081.70. Both these indices, however, underperformed the Sensex

The market breadth, indicating the overall health of the market, was strong. On BSE, 1774 shares rose as compared with 782 that declined. A total of 66 shares remained unchanged.

BSE clocked a turnover of Rs 4726 crore as compared to Rs 4,168.12 crore on Wednesday, 29 April 2009

The BSE IT index (up 8.40%), the BSE Bankex (up 7.89%), and the BSE Metal index (up 8.77%), outperformed the Sensex.

The BSE TECk index (up 5.86%), the BSE Healthcare index (up 1.49%), the BSE FMCG index (up 5.43%), the BSE Consumer Durables index (up 4.23%), the BSE PSU index (up 2.99%), the BSE Capital Goods index (up 5.88%), the BSE Realty index (up 4.96%), the BSE Auto index (up 4.62%), the BSE Power index (up 3.31%), the BSE Oil & Gas index (up 3.87%), underperfomed the Sensex.

All the 30 members from the Sensex pack logged gains. ITC (up 8.41%), Reliance Infrastructure (up 7.05%), and Jaiprakash Associates (up 5.55%), edged higher from the Sense pack.

Metal shares were the star gainers of the day's trading session on rise in commodity prices on the London Metal Exchange. India's largest aluminium and copper maker by sales Sterlite Industries galloped 17.05% to Rs 478.80 on 19.36 lakh shares. It was the top gainer from the Sensex pack.

India's largest private sector steel maker by sales Tata Steel jumped 10.63% to Rs 263.35 on reports the company may accept an invitation from the Liberian government to rebid for a $1.6 billion iron ore mine from which is was initially barred.

Sesa Goa (up 8.04%), Steel Authority of India (up 7.55%), Hindustan Zinc (up 9.81%), and Hindalco Industries (up 14.48%), surged

Banking shares gained on hopes lower interest rates may boost lending growth. ICICI Bank (up 10.94%), and HDFC Bank (up 7.82%), gained.

India's largest bank in terms of assets and branch network State Bank of India (SBI) shot up 6.68% to Rs 1363. The bank reduced deposit rates by 25 basis points on all tenures with effect from today, 4 May 2009, which will help reduce cost of funds.

India's largest mortgage finance firm by total income HDFC vaulted 13.49% to Rs 1965 as Q4 March 2009 results beat market expectations. The firm during market hours today, 4 May 2009 reported a 4.52% fall in net profit to Rs 733.37 crore on 36.01% rise in total income to Rs 2317.67 crore in Q4 March 2009 over Q4 March 2008.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) gained 3.90% to Rs 1873 on 13.75 lakh shares. After market hours on Wednesday, 29 April 2009, RIL acquired Chevron Corporation's 5% stake in its unit Reliance Petroleum (RPL), hiking its stake to 75.38% in the refining unit.

RIL paid Rs 60 per share aggregating to Rs 1,350 crore, the same price at which the US firm had bought the stake in RPL in April 2006. According to an agreement signed at the time, Chevron had the right to increase its stake in RPL to 29% within three months of commissioning of the company's only-for-exports refinery at Jamnagar or exit the company completely. RPL commissioned the 5,80,000 barrels per day refinery in Jamnagar in December 2008.

India's largest oil exploration firm by sales ONGC gained 3.06% to Rs 892 and India's largest private sector oil exploration firm by sales Cairn India surged 8.74% to Rs 201.60 after US crude futures jumped $2.08 to at $53.20 a barrel, a four-week high on Friday, 1 May 2009, on support from improved US consumer confidence. Rising crude oil prices will boost the realization from crude sales.

However, shares of oil marketing firms HPCL (down 2.09%), BPCL (down 0.61%), fell. State-run oil marketing firms suffer revenue loss on domestic sale of petrol, diesel, LPG and kerosene at a controlled price. But IOC rose 1.04% to Rs 448.15, off day's low of Rs 430

Auto shares advanced as auto sales rose in April 2009. India's largest tractor maker by sales Mahindra & Mahindra shot up 10.44% to Rs 537 after the company said total sales of vehicles rose 14.85% to 23,004 units in April 2009 over in April 2008.

India's largest small car maker by sales Maruti Suzuki India gained 2.86% to Rs 839 after vehicle sales rose about 15% to 71,748 units in April 2009 over April 2008. The company unveiled the vehicle sales figures on 1 May 2009.

India's country's largest commercial vehicle maker by sales Tata Motors rose 6.17% to Rs 257.30. The company said its total sales declined 2% to 37,518 units in April 2009 over April 2008. Tata Motors however managed a marginal growth in domestic sales by registering a 1% increase in sales at 36,275 units in April 2009 over April 2008.

TVS Motor Company surged 5.44% to Rs 34.90 after two-wheeler sales rose 3% to 1,13,119 units in April 2009 over April 2008.

Hero Honda Motors rose 1.08% to Rs 1197 after its sales rose 29% at 3,70,575 units in April 2009 over April 2008

Outsourcing focussed IT stocks rose on speculation US government efforts to fix the banking system and revive the economy will pull the nation out of a recession. US is the biggest market for Indian IT firms.

India's largest software services exporter by sales TCS gained 6.21% and India's second largest software services exporter by sales Infosys advanced 8.21%

India's fourth largest software services exporter by sales HCL Technologies jumped 18.98% after the company signed a five-year, multi-million dollar outsourcing deal with US-based supply chain services firm UTi Worldwide to provide applications support and maintenance and infrastructure management services.

India's third largest software services exporter by sales Wipro advanced 10.74% to Rs 366 on reports the company is keen on making acquisitions in continental Europe.

IT stocks shrugged off a firm rupee. The rupee rose today, 4 May 2009 on hopes rise in stock markets may attract more capital inflows. The partially convertible rupee was at 49.61/62 per dollar, stronger than Wednesday's close of 50.04/05. The currency market was closed on Thursday and Friday for local holidays.

A stronger rupee affects operating profit of IT firms negatively as they earn most of their revenues from exports.

Rate sensitive real estate shares rose on hopes lower rates will spur housing demand. Most of the realty deals including sale of commercial property and housing sales is driven by finance.

India's largest realty developer by sales DLF rose 1.36% to Rs 234.05. The company on 1 May 2009 reported a 95.32% fall in net profit to Rs 29.86 crore on 96.56% fall in net sales to Rs 55.53 crore in Q4 March 2009 over Q4 March 2008.

Unitech (up 10.77%), HDIL (up 6.47%), and Indiabulls Real Estate (up 2.36%), advanced.

India's second largest cellular services provider by sales Reliance Communication jumped 5.77% to Rs 227.35. Consolidated net profit as per Indian GAAP declined 3% to Rs 1454.31 crore on 10% growth in sales to Rs 5797.77 crore in Q4 March 2009 over Q4 March 2008. The company unveiled the results on Thursday, 30 April 2009

India's biggest cellular services provider by sales Bharti Airtel rose 0.63% to Rs 754 after the company set up a venture with Alcatel-Lucent SA to manage its carrier's fixed-line and broadband Internet businesses. Alcatel-Lucent will hold a 74% stake in the venture with the Bhart Airtel owning the remainder. The stock had hit a day's high of Rs 792 in intra-day trade.

Reliance Industries topped turnover charts on BSE notching a turnover of Rs 258.18 crore, followed by ICICI Bank (252.36 crore), Educomp Solutions (153.13 crore), Reliance Capital (151.81 crore) and Unitech (151.49 crore).

Cals Refinery led the volume charts on BSE clocking volume of 7.13 crore shares followed by Unitech (3.14 crore shares), Reliance Natural Resources (1.21 crore shares), IDFC (99.15 lakh shares) and Suzlon Energy (92.69 lakh shares).

Among the side counters, Banswara Syntex (up 20%), Infotech Enterprises (up 19.98%), Mastek (up 19.98%), Surya Pharma (up 19.97%), Ruchi Soya (up 19.96%), Dabur Pharma (up 19.96%), GEE (up 19.92%), Mazda (up 19.88%), and RS Software (up 19.96%), jumped.

GHCL jumped 7.31% to Rs 31.55 after the company reported 115.10% surge in net profit to Rs 25.25 crore in Q4 March 2009 over Q4 March 2008.

ABB lost 2.97% to Rs 473 after the company's net profit slumped 33.4% to Rs 78.37 crore in Q1 March 2009 over Q1 March 2008.

Kesoram Industries soared 14.76% to Rs 176.90 after its net profit rose 51% to Rs 159 crore in Q4 March 2009 over Q4 March 2008.

Siemens jumped 9.31% to Rs 337 after net profit soared 13,485.50% to Rs 225.52 crore on 10.60% rise in net sales to Rs 2,382.96 crore in Q2 March 2009 over Q2 March 2008.

CESC surged 6.73% to Rs 249 after net profit rose 15.50% to Rs 410 crore on 9% rise in net sales to Rs 3,098 crore in the year ended March 2009 over the year ended March 2008.

In the derivatives segment, rollover of stock futures from April 2009 series to May 2009 series stood at 74%, higher than 70% in the previous series. Rollover of Nifty positions from April 2009 series to May 2009 series was 76% as compared with 77% seen in the previous series.

Due to rise in the prices of food and manufactured goods, inflation rate rose for a second straight week, government data showed on Thursday, 28 April 2009. Annual inflation rose to 0.57% in the week ended 18 April 2009 from 0.26% in the previous week.

The new government, which is likely to be in place this month, should take more fiscal measures to boost the economy rather than phasing out tax exemptions to businesses, industry body Federation of Indian Chambers of Commerce and Industry (FICCI) said during the weekend. The new government should not only continue, strengthen fiscal incentives and introduce new ones as and when economically warranted, especially for sunrise industries, and undertakings engaged in infrastructure and other crucial sectors, FICCI said.

Pre Session Commentary - May 4 2009

Today domestic markets are likely to open with positive gap as majority of Asian markets have also opened with phenomenal gains on the back of positive cues from US markets. The domestic markets may once again trade in the northward direction as the scenario across other markets seems to be conducive. The month beginning is likely to bring some charm for the traders. There might be a possibility that the domestic markets may try to cope up with the two day closing in the previous week, when most of markets recorded remarkable gains.

On Wednesday, domestic markets bounced back with staggering gains. The traders closed there short coverings during the expiry of April F&O series. Huge buying prevailed in the broader level which was further bolstered by positive sentiments swung the Asian and European markets towards northward direction. The traders are bullish as May series is at premium and on rollover of long positions. Phenomenal buying was witnessed in sectors like IT, Bankex, Teck and Oil & Gas stocks as they spurred by 4.95%, 4.47%, 3.99% and 3.48% respectively. The abrupt positive gap opening was further pumped with a firm positive sentiment that resulted in more than recovery from yesterday’s losses. We expect the markets to be trading range bound.

The BSE Sensex closed higher by 401.50 points at 11,403.25 and NSE Nifty ended up by 111.60 points at 3,473.95. BSE Mid Caps and Small Caps closed with gains of 63.15 points and 52.58 points at 3,513.86 and 3,940.90 respectively. The BSE Sensex touched intraday high of 11,430.25 and intraday low of 11,091.56.

On Friday, the US stock markets closed in green. Despite some weak economic data the markets managed to close in green. The session was quite choppy however towards the end some late buying supported the markets. The energy stocks were the charm of the day with a remarkable gain of 3%. The energy sector''s rebound was helped along by higher energy prices; natural gas prices spiked 5.1% to close at $3.55 per contract, while crude oil futures finished pit trading with oil priced 3.4% higher at $52.84 per barrel. US light crude oil futures for June inclined by 3.4% at $52.84 per barrel on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) inclined by 44.29 points to close at 8,212.41 The NASDAQ Composite (RIXF) index gained by 1.90 points to close at 1,719.20 and the S&P 500 (SPX) inclined by 4.71 points to close at 877.52.
Today major stock markets in Asia are trading positive. Shanghai composite is up by 56.15 at 2,534.08. Hang Seng is trading up by 576.64 points at 16,097.63 followed by, Strait Times which is up by 60.07 points at 1,980.35. While Taiwan Weighted is also up by 362.98 points at 6,355.55 and Seoul Composite points is also up by 19.08 points at 1,388.44 respectively. Japan’s Nikkei is up with phenomenal gains of 149.11 points at 8,977.37.

Indian ADRs ended mixed. In technology sector, Infosys ended down by 0.36% along with Satyam by 1.67%. Further, Wipro gained 0.96% whereas Patni Computers closed down by 1.02%. In banking sector ICICI Bank lost 0.39 % while HDFC Bank advanced by 1.24%. In telecommunication sector Tata Communication gained 0.04% whereas MTNL declined by 0.34%. Sterlite Industries increased by 0.35%.

The FIIs on Wednesday stood as net sellers in equity and net buyers in debt. Gross equity purchased stood at Rs 1,544.10 Crore and gross debt purchased stood at Rs 1,080.80 Crore, while the gross equity sold stood at Rs 1,718.00 Crore and gross debt sold stood at Rs. 201.80 Crore. Therefore, the net investment of equity and debt reported were Rs (173.90) Crore and Rs 879.00 Crore respectively.

On Wednesday, the Rupee closed at Rs.50.04/05, 0.5% stronger than its previous close of Rs. 50.52/53. The rupee gained strength on the back of phenomenal rise in the local stock markets.

On BSE, total number of shares traded were 41.98 Crore and total turnover stood at Rs 4,168.12 Crore. On NSE, total number of shares traded was 107.40 Crore and total turnover was Rs 15,524.28 Crore.

Top traded volumes on NSE Nifty – Unitech with total volume traded 225846398 shares, followed by Suzlon Energy with 38933772 shares, ICICI Bank with 18656793 shares, Tata Steel 16859539 shares and SAIL with 13031157shares respectively.

On NSE Future and Options, total number of contracts traded in index futures was 1268457 with a total turnover of Rs 21,241.92 Crore. Along with this total number of contracts traded in stock futures were 722945 with a total turnover of Rs 26,841.51 Crore. Total numbers of contracts for index options were 1743673 with a total turnover of Rs 29,847.12 Crore and total numbers of contracts for stock options were 53207 and notional turnover was Rs 2,132.85 Crore.

Today, Nifty would have a support at 3,512 and resistance at 3,578 and BSE Sensex has support at 11,545 and resistance at 11,695.

US stocks end modestly higher

Earnings and economic reports indicate that worst might be over

Swine flu news dominated the US market for the week that ended on Friday, 01 May, 2009 with modest gains. Economic and earning reports continued to check in during the course of the week one after another. The reports, in most cases, pointed out that the worst might be over for the overall US economy in terms of the ongoing recession and things might have bottomed out and will only start to improve from now on.

The Dow Jones Industrial Average gained 136.12 points (1.7%) for the week to end at 8,212.41. Tech - heavy Nasdaq gained 24.91 (1.5%) to end at 1,719.20. S&P 500 gained 11.29 (1.3%) to end at 877.52.

During the middle of the week, advanced reading for first quarter GDP came in at a much weaker-than-expected -6.1% (consensus -4.7%). But stocks shrugged off the GDP figure and rallied ahead of the FOMC's rate decision and policy statement that afternoon. The FOMC kept its key interest rate in a range of 0.00%-0.25%, as expected.

Economic reports dominated the entire week. Consumer confidence came in at a better-than-expected 39.2 for April, well above the 29.7 consensus estimate. Chicago PMI's turn, as it came in at a better-than-expected 40.1 for April vs. the 35.0 consensus.

Finally, on Friday, the ISM Manufacturing Index for April came in at 40.1. That was much better than the 38.4 that was expected, and was also up from 36.3 in March. But economic conditions remained dour as factory orders for March declined 0.9%, which was worse than the 0.6% decline that was widely expected, and February orders were revised lower to reflect an increase of 0.7%. Also, U.S. consumer sentiment rose in April, but remained at relatively low levels, according to a survey released by the University of Michigan.

In the US market on Friday, 01 May, 2009, stocks started the day in a choppy mode. Volumes remained extensively low. But the indices managed to end the day with modest gains. Economic reports dominated the day. The Dow Jones Industrial Average ended higher by 44 points at 8,212. The Nasdaq Composite Index, ended higher by 1.9 points at 1,719.2. S&P 500 ended higher by 4.7 points at 877.5.

In the financial sector, the big headline of the day came late morning when a government source said it would announce information on the bank stress tests late afternoon on Thursday, 7 May, later than the original date of 4 May. This followed a slew of headlines on the tests throughout the week, mainly the one which stated that Bank of America and Citigroup might need to raise additional capital based on early results of the tests.

Among major earning reports of the week, Exxon Mobil's earnings results missed analysts' expectations. Chevron too reported that its first quarter profits have almost halved compared to last year.

Crude oil ended higher for the third straight day on Friday, 01 May, 2009 helping crude register its second consecutive weekly gain. Better than expected earning and economic reports gave some hopes that the worst might be over for the overall economy in terms of recession and things might just get better from here thereby increasing the demand for energy in the coming months. On Friday, crude-oil futures for light sweet crude for June delivery closed at $53.2/barrel (higher by $2.08 or 4.1%) on the New York Mercantile Exchange. For the week, crude ended higher by 3.2%.

For the year 2009, Dow and S&P 500 are down by 6.4nd 2.8% respectively. Nasdaq is up by 9%.

Market seen rallying on strong global cues

Key benchmark indices are seen opening strong, playing a catch up with global bourses after a long weekend, on the back of strong global cues. The SGX Nifty futures for May 2009 expiry surged 136.50 points in Singapore. However profit booking after eight consecutive weeks of rally, with the BSE Sensex surging over 32% since March 2009 lows cannot be ruled out.

Also political uncertainty, with polling for India's 15th Lok Sabha underway, may also prop volatility. The month-long parliamentary elections that began on 16 April 2009 will conclude on 13 May 2009 with results due on 16 May 2009. Poll estimates point to a fractured mandate.

HDFC, Allahabad Bank, Indian Overseas Bank, Century Textiles, among others will declare their March 2009 quarterly results today, 4 May 2009. Aggregate results of 1075 firms showed 4.1% fall in net profit on 5% rise in sales in Q4 March 2009 over Q4 March 2008.

Asian indices were trading higher today, 4 May 2009. Key benchmark indices in China, Hong Kong, Singapore, Taiwan, South Korea, and Japan rose by between 1.34% and 5.97%.

US stocks gained on Friday, 1 May 2009 as increasing oil prices pushed the energy shares higher and fresh economic data suggested that the key parts of the economy could be stabilizing. The Dow Jones industrial average gained 44 points to 8,212 . The Standard & Poor's 500 Index rose five points, to 876. The Nasdaq Composite Index edged up 2 points, to 1,719.

Back home, positive global cues and short covering in April 2009 derivatives contracts on expiry day boosted the bourses on Wednesday, 29 April 2009, in a volatile trading session. The BSE 30-share Sensex rose 401.50 points or 3.65% to 11,403.25, its highest closing since 14 October 2009 and the S&P CNX Nifty jumped 111.60 points or 3.32% to 3,473.95

As per reports, rollover of Nifty positions from April 2009 series to May 2009 series stood at 74% while those of stock futures were 76%.

The stock market remained shut on Thursday, 30 April 2009 as voting took place in Mumbai for the parliamentary elections and also on Friday, 1 May 2009 on account of Maharashtra Day.

As per the provisional figures on the NSE, foreign institutional investors (FIIs) bought shares
worth Rs 365.23 crore on Wednesday, 29 April 2009 while domestic institutional investors sold shares worth Rs 403.99 crore.