Grey Market - Oil India, Pipavav Shipyard

Company Name	Offer Price (Rs.)	Premium (Rs.)
Jindal Cotex	75	4.50 to 5.50
Globus Spirits Ltd.	100	5 to 6
Oil India	950 to 1050	40 to 42
Pipavav Shipyard	55 to 60	6 to 7

Market may extend last five days of gains on positive global cues

The key benchmark indices may extend last five days of gains on positive global stocks. Investors will keenly watch industrial output data for the month of July 2009 due today. The industrial output rose by a faster-than-expected 7.8% in June 2009 as against 5.4% in June 2008 and 2.2% in May 2009.

The weather office said on Thursday rainfall was 21 % above average in the week to 9 September 2009 continuing the upturn since mid-August but total seasonal rainfall was a fifth short of normal since the season began with the driest June in eight decades. More than two-thirds of the people live in villages and 60 % of the farm land depends on the annual rains.Higher rainfall in the past week has helped India's 81 biggest reservoirs fill up much faster than normal for this time of year. Reservoirs are important for hydropower, which accounts for a quarter of India's generation capacity. They also provide water to irrigate winter crops.

The wholesale price index (WPI) fell 0.12% in the year through 29 August 2009, lower than an annual decline of 0.21% in the previous week, data released by the government showed on Thursday. The food article index surged 14.8%.

Analysts are concerned that a sharp surge in food prices in the past few days due to scanty rains may stoke inflationary pressures in the economy. Interest rates could rise on higher inflation which in turn may impact a nascent economic recovery and corporate profits.

Meanwhile, foreign direct investment (FDI) flows into India in July 2009 were up 56 % from the same month in 2008. FDI flows into India were $3.5 billion in July, up from $2.25 billion a year earlier, Trade Minister Anand Sharma said on Thursday.

Asian stocks rose today after China reported strong industrial output data.The key benchmark indices in Hong Kong, South Korea, Singapore and Taiwan rose by between 0.22% to 0.93%.

China's Shanghai Composite rose 1.33%. China's industrial production grew at a faster pace in August, signaling a strengthening recovery in the world's third-biggest economy. Output gained 12.3 % from a year earlier, after climbing 10.8 % in July, the statistics bureau said in Beijing today

But, Japan's Nikkei fell 0.45%. Japan's economy unexpectedly grew less than initially estimated in the second quarter. Gross domestic product expanded at an annual 2.3 % pace in the three months ended 30 June 2009, slower than the 3.7 % reported as per preliminary estimate, the Cabinet Office said today in Tokyo.

The US markets touched fresh 2009 highs on Thursday, 10 September 2009 after jobless claims slid to the lowest level since July. The Dow added 80.26 points, or 0.8%, to 9,627.48. The S&P 500 index rose 10.77 points, or 1%, to 1,044.14. The Nasdaq Composite Index rose 23.63 points, or 1.2%, to 2,084.02.

From the economic data front initial claims for unemployment fell more than expected to 5,50,000 last week while continuing claims also dropped more than estimates to 6.09 million. Meanwhile, trade deficit expanded for the second straight month to a greater-than-expected $ 32 billion in July 2009.

Back home, the key benchmark indices registered small gains in choppy trade, extending a rally for the fifth day on Thursday. The BSE 30-share Sensex rose 33.31 points or 0.21% to 16,216.86, its highest closing since 30 May 2008 on that day.

The Sensex has jumped 818.53 points or 5.31% in five trading days to 16,216.86 on 10 September 2009 from a recent low of 15,398.33 on 3 September 2009 as a revival of monsoon rains, strong response to the initial public offer of Oil India and firm global stocks boosted sentiments.

Meanwhile, liquidity continues to support share prices and oversubscription to the Oil India initial public offering is a testimony to that. The Oil India IPO which opened for bidding on 7 September 2009, was subscribed 30.82 times. The issue was closed on 10 September 2009. The government has fixed Rs 950-1,050 per share price band for the initial public offering of Oil India (OIL), the second state-run firm to hit the market this year after NHPC, and will raise up to Rs 2,777 crore.

The strong response to Oil India IPO was despite a muted debut of another state-run firm NHPC on the secondary markets early this month.

Technical Levels - Sep 11 2009

COMPANY NAME	S3	S2	S1	CLOSING PRICE	R1	R2	R3
Sensex Index	16,040	16,083	16,128	16,217	16,305	16,351	16,394
Nifty Index	4,766	4,779	4,793	4,819	4,846	4,860	4,873
ABB Ltd	728	730	733	738	743	746	748
ACC	771	776	780	790	799	804	808
Ambuja Cements	97	97	98	99	100	100	101
Bajaj Holdings	481	483	485	489	493	495	497
BHEL	2,239	2,246	2,254	2,268	2,282	2,289	2,296
Bharti Airte	409	411	413	417	420	422	424
Cipla	258	260	262	265	268	270	272
Dabur India	128	128	129	130	131	132	132
GAIL India	323	330	337	350	364	371	378
Grasim Ind.	2,616	2,633	2,650	2,685	2,719	2,736	2,753
HCL Tech	304	305	307	309	312	313	315
HDFC Bank	1,469	1,473	1,477	1,486	1,494	1,498	1,502
Hero Honda	1,512	1,527	1,543	1,573	1,604	1,619	1,634
Hindalco	111	113	114	117	120	121	122
Hindustan Unilever	257	258	260	262	265	266	267
ICICI Bank	799	803	808	817	825	830	834
Infosys Tech	2,209	2,217	2,225	2,240	2,256	2,264	2,272
ITC Ltd	226	226	227	229	231	232	233
L&T	1,570	1,577	1,585	1,601	1,616	1,624	1,632
MTNL	91	91	92	93	94	95	95
M&M	796	802	809	822	835	842	848
Maruti Suzuki	1,446	1,457	1,468	1,489	1,511	1,522	1,532
Mahindra Satyam	118	119	119	121	123	123	124
National Alumin	320	324	328	337	345	349	353
ONGC	1,164	1,168	1,172	1,181	1,189	1,193	1,197
Oriental Bank	208	210	212	216	220	222	224
PNB	677	681	687	696	706	711	716
Ranbaxy Labs	320	321	322	325	328	329	330
Reliance Capital	882	888	895	909	922	929	935
Reliance Comm	297	299	300	303	306	308	310
Reliance Energy	1,139	1,148	1,157	1,174	1,191	1,201	1,209
Reliance Inds	2,077	2,094	2,112	2,147	2,183	2,201	2,218
R Power	162	163	164	165	166	167	167
Siemens India	511	515	519	526	534	538	542
SBI	1,843	1,853	1,862	1,882	1,901	1,911	1,920
TCS	545	548	551	557	562	565	568
Tata Motors	549	552	556	563	569	573	576
Tata Power	1,263	1,269	1,274	1,285	1,296	1,302	1,307
Tata Steel	461	463	465	470	474	477	479
Tata comm	469	472	475	480	485	488	490
Wipro	535	537	539	544	548	550	552
Wire And Wireless	19	19	19	20	20	20	20
Zee Entertainment	202	204	206	210	214	216	218

SGX Nifty continues to ride high

4,842.0 +37.5

Copper continues to tarnish

Prices drop as LME inventories stack up

Copper prices continued to fall on Thursday, 10 September, 2009 at Comex and LME. Prices fell as traders anticipated that supply will oust demand thus year.

At USA, copper futures for December delivery fell 5.75 cents (2%) to 2.8665 a pound. Copper fell 2.8% last week. Copper ended August, 2009, higher by 7%.

On the London Metal Exchange, copper for delivery in three months ended lower by $130 (2%) at $6,286 a metric ton. On 3 July, 2008, prices had touched an all time intra day high of $8,940.

After August, it was the eighth straight monthly gain for copper. Prices gained 23% in the second quarter. On a year to date basis, prices are higher by 91%.

The U.S. buys about 13% of the 17 million metric tons of copper sold annually and China buys about 20%.

Inventories of copper monitored by LME rose for a 10th day, gaining 0.2% to 317,575 tons, the highest since May.

In the currency market today, the dollar index, which measures the strength of dollar against a basket of other currencies, fell by 0.4%.

In its latest report, Goldman Sachs reported that it has forecast copper to reach $7,650 a ton at the end of 2010.

In FY 2008, copper prices dropped by 54%. Prior to 2008, copper prices ended FY 2007 with a gain of mere 5.5% after a whopping 44% gain in FY 2006. The price of copper gained every year since 2002 as global economic growth boosted demand for the metal used in pipes and wires.

At the MCX, copper for November delivery closed at Rs 308.5/Kg. The closing price was Rs 3.95/Kg (1.3%) lower than previous closing price. Prices rose to a high of Rs 315.85/ Kg and fell to a low of Rs 304.5/Kg during the day's trading.

Among other metals traded in the LME on Thursday, lead fell 12% to $2,115 a ton and zinc fell 3.1% to end at $1,910 a ton. Nickel fell 3.6% to end at $17,300. Aluminium fell 1.8% at $1,855 a ton.

Crude continues with its upward journey

Prices rise as inventories drop less than expected

Crude prices ended higher once again on Thursday, 10 September, 2009. Prices ended higher as energy department reported more than expected drop in crude inventories for last week. The report came in a day later than scheduled due to the Labor Day holiday on Monday. Meanwhile, a weaker dollar also pushed oil higher.

On Thursday, crude-oil futures for light sweet crude for October delivery closed at $71.94/barrel (higher by $0.63 or 0.9%). Crude has added 6% in past four sessions. Last week, crude ended lower by 6.5%. It was the biggest weekly loss for crude in two months.

For the month of August, 2009, crude ended higher by a marginal 0.7%. For the second quarter, crude ended higher by 40%. Crude prices had rallied 11.3% in the first quarter of 2009.

Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 50.4% since then. Year to date, in 2009, crude prices are higher by 51.3%.

EIA reported today that crude inventories fell 5.9 million barrels in the week ended 4 September, 2009. Traders are anticipating that report will show that crude supplies dropped 1.8 million barrels for the week ended 4 September, 2009.

The report also detailed that Gasoline inventories rose 2.1 million barrels, and distillate stockpiles, which include heating oil and diesel, rose 2 million barrels. Traders predicted a drop of 1.5 million barrels in gasoline inventories and an increase of 1.1 million barrels in distillates, which include heating oil and diesel.

The IEA raised its demand forecasts for both 2009 and 2010 by nearly 500,000 barrels a day. On the other hand, the Organization of Petroleum Exporting Countries kept its production quota unchanged.

In the currency market today, the dollar index, which measures the strength of dollar against a basket of other currencies, fell by 0.4%.

Also at the Nymex on Thursday, October reformulated gasoline fell 2.45 cents, or 1.3%, to $1.8036 a gallon and October heating oil edged slightly lower to $1.7885 a gallon.

October natural gas ended up 42.7 cents at $3.256 per million British thermal units. The 15% percentage gain is the biggest since May 2008. EIA also reported today that U.S. natural gas inventories rose 69 billion cubic feet in the week ended 4 September, 2009. At 3,392 billion cubic feet, stocks were 495 billion cubic feet higher than last year at this time and 503 billion cubic feet above the five-year average.

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

At the MCX, crude oil for September delivery closed higher by Rs 1 (0.02%) at Rs 3,486/barrel. Natural gas for September delivery closed higher by Rs 8.9 (6.3%) at Rs 149.3/mmbtu.

Daily News Roundup - Sep 11 2009

NTPC to save Rs320bn by procuring gas at US$2.34/mmbtu from Reliance Industries. (ET)

Reliance Industries seeks further allocation of KG-D6 gas. (BL)

Infosys targets US$1bn revenue from India in the next 3-4 years. (ET)

Government may shed 5% stake in NTPC before March. (ET)

Bharati Airtel may pay higher rate of interest for MTN loans. (ET)

L&T bags Rs4bn order from Nuclear Power Corporation. (BL)

L&T aims Rs40-60bn business from Nuclear Power equipments. (BS)

Oil India IPO was over subscribed 31 times. (ET)

Jet Airways and its pilots have reached a pact to break the deadlock. (ET)

M&M has launched two new 125cc power scooters The Rodeo and The Duro. (ET)

Jindal Power to invest Rs134bn for enhancing its power generation capacity to 3,400 MW by 2013. (ET)

JSW Energy plans to pre pay debt worth Rs4.75bn. (BL)

BHEL gets Rs9.9bn order from Indian Railways. (ET)

BPCL to spend around Rs30bn in the current fiscal to fund drilling operations in some exploration blocks, upgrade refineries and build a product pipeline. (FE)

IVRCL Infra has bagged order worth Rs5bn from Maharashtra Government, among others. (BL)

Ranbaxy asks USFDA to re-inspect Dewas facilities. (ET)

IT department raids 12 HDIL premises. (ET)

United Spirits plans to raise US$300mn to prune debt. (BL)

Axis Bank gets nod for GDR issue. (BS)

Ansal Properties may consider converting 3 out of 4 SEZ plots into a residential project. (BS)

IDFC PE to buy out wind power assets of BP for Rs6.5bn in India. (ET)

Murugappah to exit Chola DBS. (ET)


Inflation for the week ended August 29, inched up to -0.12%. (ET)

DGCA has asked airlines to drop fares to September 6 levels. (ET)

Petroleum ministry has recommended a 44% hike in APM gas prices. (FE)

Foreign exchange reserves for the week ended 28 August rose by US$4.4bn to US$276.4bn. (FE)

India’s exports contracted for 11th month in a row. August exports fell 19.7% to US$14.3bn, the lowest contraction since January. (ET)

GSM user base grows by 9.3mn in August. (ET)

SEBI panel has recommended limiting the period for participation by QIBs to 2-3 days in subscription process of an IPO. (ET)

FDI inflows up 55% in July to US$3.5bn. (ET)

Centre to import 5mn tons of raw sugar. (ET)

Power sector faces Rs5tn funding gap says Power Minister. (BL)

SEBI may ask institutional investors to cough up more than 10% of a public issue subscription upfront. (FE)

Tyre manufacturers are likely to raise tyre prices within a month. (BL)

ULIPs to have five year lock in period from October. (BS)

9/11…OIL’s well!

It is better to look ahead and prepare than to look back and regret.

We’ve come a long way forward in every sense. Funds flush with cash are offering psychological support at the moment. The fear of being left out is compelling many to step in even at higher levels, lest they under-perform. Since the advance in early March, the markets haven’t had a meaningful correction. Though the overall mood is upbeat, there is some skepticism about the sustainability of the rally. OIL India’s IPO has got subscribed 31 times.

We expect a flat to slightly positive start. IIP data will be out today. According to the Commerce Minister, it grew by 7%. This is respectable given the circumstances. Exports too are showing signs of bottoming out. FDI inflows in July were pretty good. Rains in the last phase have been better. The big worry is on the inflation front, and its fallout on interest rates.

US stocks have risen for the past four sessions. A key European index has gained for six straight days. Most markets around the world are trading at a year’s high amid persistent optimism about the prospects for the global economy. Some pullback is not ruled out but the same may not be all that debilitating. There is lot of money waiting on sidelines to support the market at lower levels.

The RBI Governor has already warned of rates hardening on account of an impending spike in inflation. The Government is doing whatever it can to boost consumption and pump-prime the economy. It has increased the Dearness Allowance for state employees by 5% and has announced a subsidy of 1% on home loans of up to Rs10 lakh.

Of course, these freebies come with a cost. The Government’s already precarious finances may take further hit. The Centre and the RBI has an uphill task managing the massive borrowings and mitigate an adverse impact on markets and the economy.

Globally, the markets appear to be on a firm ground. A slew of data has been unleashed by the Chinese government today. China’s industrial production grew at a faster pace in August and new bank lending unexpectedly increased. Money supply rose by a record. Steel production in China jumped 22% to a record in August.

In Japan, last quarter's economic growth got unexpectedly revised downward, as capital expenditure was less than earlier thought. In the US, the trade deficit widened in July and imports gained by a record 4.7%.

Meanwhile, the bidding war for Asarco has intensified further with Sterlite raising its bid to $2.56bn versus rival Grupo Mexico’s offer of $2.47bn. It must be noted that a US bankruptcy court has backed Grupo Mexico’s bid.

US stocks climbed on Thursday, with the major indices ending at the highest point in nearly a year, spurred by a strong response to a debt auction and Procter & Gamble's improved forecast.

The Dow Jones Industrial Average gained 80 points, or 0.8%, at 9,627.48, closing at the highest point since last Oct. 6. The S&P 500 index rose 11 points, or 1%, at 1,044.14, closing at the highest point since Oct. 6. The Nasdaq Composite added 24 points, or 1.2%, at 2,084.02, closing at the highest point since Sept. 26.

All three major indexes have now risen for five consecutive sessions, extending the six-month old stock market advance. Since bottoming March 9 at a 12-year low, the S&P 500 has risen 54%.

While the gains so far in September have pushed the S&P 500, Nasdaq and Dow to fresh highs, the advance has been pretty tepid. More than a reaction to any specific news of the day, the rallying of late has been momentum driven.

Stocks got an extra jolt after Treasury's auction of $12 billion in reopened 30-year bonds generated better-than-expected demand. The US is relying on debt auctions to help offset the deficit.

The number of Americans filing new claims for unemployment fell by 26,000 last week to 550,000, according to a Labor Department report released Thursday. That surprised economists who expected 560,000 new claims.

Continuing claims, which measure the number of Americans who have been receiving benefits for a week or more, showed a surprise drop to 6,080,000 from 6,234,000 in the previous week.

The US trade gap widened to $32 billion in July from $27.5 in June, according to the Commerce Department. Economists thought it would narrow to $27.3 billion.

Foreclosure filings in August dropped 0.5% from July, according to RealtyTrac, an online marketer of foreclosed properties. The number of homes repossessed from borrowers fell by 12.7% in August.

Treasury Secretary Timothy Geithner, speaking before the Congressional Oversight Panel, said that the focus is shifting from rescuing the economy to preparing for growth. He also said it isn't likely that more bank bailout money will be needed.

President Obama outlined his health care plan before a joint session of Congress on Wednesday night. The plan, which could cost as much as $1 trillion over a ten-year period, includes requiring all Americans to have health care.

Dow component Procter & Gamble said that it expects sales to improve in the next quarter, sending shares 4.2% higher. The maker of Tide, Crest and other consumer products said sales in the fiscal second quarter should rise 1% to 4%. Current-quarter sales are expected to be flat to down 3%. Also, in the current quarter, P&G said it still expects earnings per share of 95 cents to $1. Analysts are expecting a profit of 97 cents per share.

Chip maker Texas Instruments said it expects to report a bigger profit in the third quarter than it previously forecast. TI said it will earn between 37 cents and 41 cents per share versus its earlier forecast of 29 cents to 39 cents per share. The company expects sales in a range of $2.73 billion to $2.87 billion, versus its earlier forecast of $2.5 billion to $2.8 billion. Shares were barely changed.

Monsanto said it expects 2010 earnings in a range that is well below analysts' estimates, due in part to an excess of herbicide supply. The world's leading seed maker said it expects fiscal 2010 earnings per share of $3.10 to $3.30. Analysts currently expect earnings of $4.10. Shares fell 5%.

General Motors is selling a major stake in its European Opel division to a consortium led by Canadian auto supplied Magna.

The dollar resumed its slide against other major currencies, falling to a fresh seven-month low against the yen and a nearly 12-month low versus the euro.

The weak dollar has boosted oil, gold and other dollar-traded commodity prices. Those prices have also been on the rise on bets of a global economy recovery. US light crude oil for October delivery rose 63 cents to settle at $71.94 a barrel on the New York Mercantile Exchange, seesawing after the government's weekly oil inventories report.

COMEX gold for December delivery fell 30 cents to $996.80 an ounce, after topping the key $1,000 level during the day for the third session in a row.

Treasury prices rallied, lowering the yield on the benchmark 10-year note to 3.35% from 3.47% late on Wednesday, following the results of the auction. Wednesday's auction of $20 billion of ten-year notes saw solid demand as well.

Friday brings the September consumer sentiment index from the University of Michigan, the July wholesale inventories report from the Commerce Department and August import and export prices. The August Treasury budget is due in the afternoon.

European shares ended mixed. After closing with a 0.9% advance on Wednesday, the Dow Jones Stoxx 600 set a fresh 2009 high in early trading but then weakened to end up 0.15% at 240.44. The pan-European index has risen approximately 54% since hitting a multi-year low in March.

The UK's FTSE 100 index declined 0.3% to end at 4,987.68 following an as-expected decision from the Bank of England to keep interest rates on hold. See full story. The French CAC-40 index lost 0.05% to 3,705.87 while the German DAX index traded up to 5,595.

For the third straight day, the NSE Nifty managed to hold on to the 4800 levels. The current rally seems to be running out of steam as the benchmark indices are witnessing selling at higher levels. Traders and investors preferred to book some profits as the Nifty inched closer to the 4900 mark.

Strong inflows from overseas investors, supported by some local buying have been driving the market up. But, today the market players chose to take a step back amid persistent headwinds like sluggish loan growth, subdued tax receipts, drought, rising inflation and interest rates. Even globally, there are worries such as tepid consumer spending, high unemployment and hardening commodity prices.

India’s inflation for the week ended August 29 stood at -0.12% as against -0.21% in the previous week. Market expected inflation to come in at -0.09%. The government announced that it revised inflation in week to July 4 to -0.75% as against -1.21%.

Among the index heavyweights, Reliance Industries seemed to be under some pressure after a 10% rally in the past two trading sessions. Among the other major laggards were the Automakers like Hero Honda and Maruti. Even the Realty and the Consumer Durables stocks were offloaded.

Finally, the BSE Sensex gained 33 points or 0.2% at 16,216 after touching a high of 16,434 and a low of 16,166. The index opened at 16,295 against the previous close of 16,183. The NSE Nifty ended flat to shut shop at 4,819.

In Asia, the Nikkei in Japan gained by 2% at 10,513 while Australia's S&P/ASX ended higher by 1.1% at 4,570. The Hang Seng index in Hong Kong gained 1% at 21,069. However, Shanghai SE Composite in China fell by 0.8% at 2,924.

In Europe, stocks were in the red. The FTSE in the UK was down 0.5%, The DAX in Germany was flat and the CAC 40 index in France was down 0.5%.

Coming back to India, among the BSE sectoral indices, the Metal index was the top gainer, gaining 1.2%, followed by the Bankex index that was up 1%. The BSE Pharma index up 0.8% and the BSE IT index was up 0.8%.

However, BSE Realty index was down 2.2% and BSE Consumer Durables index was down 1.5%. The BSE Mid-Cap index fell 0.2% and the BSE Small-Cap index fell by 0.8%.

Among the 30-components of Sensex, 14 stocks ended in the green and 16 ended in the negative terrain. Among the major gainers were ICICI Bank, Sterlite, Tata Steel, Infosys and Bharti Airtel.

On the other hand, DLF, Hero Honda, JP Associates, Hindalco and M&M were among the major laggards.

Outside the frontline indices, the big gainers in the broader market were Spice Torrent Power, Central Bank, Jubilant Org, Gujarat NRE and Thermax. On the other hand, losers included BEML, KSK Energy, Spice Tele, P&G and Bhushan Steel.

Shares of UTV Software erased early gains and ended in the red, The stock slipped 0.8% to end at Rs481.7. The stock hit an intra-day high of Rs508 after Bloomberg and the promoters of UTV announced that they will collaborate on a television channel to deliver unsurpassed real-time business, economic and political news to households across India.

In the next month, the business news channel UTVi will be re-branded as Bloomberg-UTV. For the first time UTVi's local newsgathering, production and distribution expertise combine with the deep financial news capabilities and global reach of Bloomberg to broadcast news and information for and about the Indian market. India's TV viewers will have access to the BLOOMBERG TELEVISION(R) network global feed, supported by 145 BLOOMBERG NEWS(R) bureaus around the world.

BHEL secured an order for the manufacture and supply of 150 electric locomotives has been placed on BHEL by Indian Railways. The stock gained by 1.2% to Rs2263. The stock opened at Rs2252 and made an intra-day high of Rs2290 and a low of Rs2250. Total traded volumes stood at 0.16mn shares.

L&T bags repeat order for Nuclear Power Projects Larsen & Toubro, has won a repeat order for design, manufacture and supply of four steam generators for 700 MWe Pressurized Heavy Water Reactors (PHWR) for Rajasthan Atomic Pwer Plant (RAPP)- 7 and 8 from the Nuclear Power Corporation of India Limited (NPCIL). These will be the largest steam generators built in India so far. In a nuclear power plant, the steam generators are most critical equipment that require a long lead time.

Shares of L&T ended flat at Rs1601. The stock opened at Rs1620 and made an intra-day high of Rs1627 and a low of Rs1582. Total traded volumes stood at 0.3mn shares.

Hedge Funds, DE Shaw and Citadel Investment Group in the US have filed a winding up petition against Venus Remedies dragging the stocks down by over 7% to hit a low of Rs258. Total traded quantity on the counter was mere 51,000 shares on the NSE.

Both the hedge funds have filed a petition against the company for a default on a Foreign Currency Convertible bond. Both the hedge funds had subscribed to the US$12mn FCCB issue of Venus in May 2006. The bonds came up for redemption on May 2, 2009, but the company has failed to pay investors.

According to reports, The Bank of New York Mellon, the custodian has filed the case in the Punjab and Harayana High Court in Chandigarh. Investors have also sought the courts intervention to stop the company from paying any dividends. The case is likely to come up for hearing in the month of October, reports added.

Venus Remedies plunged by over 8% to end at Rs258. Total traded quantity on the counter was mere 35,000 shares on the BSE. It hit an intra-day high of Rs273 and a low of Rs254.

Omaxe announced that M/s Rivaj Infratech Pvt Ltd, a subsidiary of the company has entered into MoU with Bulandshahar Development Authority for the development of Hi-Tech Township in Bulandshahar, Uttar Pradesh on a proposed area of 3601.19 Acres.

The proposed Hi-Tech Township is well connected to Delhi, located in NCR Region adjoining Greater Noida adjacent to proposed Eastern Peripheral Expressway and North-East Railway Freight Corridor and will have estimated revenues of over Rs75bn and is to be executed in Phases over a period of 5 to 7 years.

Shares of Omaxe surged by over 3% to Rs120. The stock opened at Rs119 and made an intra-day high of Rs126 and a low of Rs118. Total traded volumes stood at 0.5mn shares.

BHEL, Reliance Industries, GMR Infrastructure, India Telecom

BHEL, Reliance Industries, GMR Infrastructure, India Telecom

Shoppers Stop

Shoppers Stop

Daily Newsletters - Sep 11 2009

Daily Newsletters - Sep 11 2009

Adani Enterprises

We recommend a sell in Adani Enterprises from a short-term perspective. It is evident from the charts of the stock that after taking support at Rs 238 in March it had been on an intermediate-term uptrend till it encountered resistance at Rs 850 in late July. The stock has significant resistance in the range between Rs 850 and Rs 870. Triggered by negative divergence displayed in the weekly relative strength index and daily moving average convergence and divergence indicator, the stock reversed direction. The stock has been on medium-term down trend since late July. Moreover, we notice formation of a complex head and shoulders (double left and right shoulders with one head) spanning over the past three months with neckline around Rs 670. On September 10, the stock conclusively breached this neckline by declining three per cent with above average volume. Our short-term outlook in the stock is bearish. We expect its decline to prolong until it hits our price target of Rs 575 in the forthcoming sessions. Traders with a short-term perspective can sell the stock while maintaining a stop-loss at Rs 671.

via BL

SGX Nifty Live Update - Sep 11 2009

4,843.0 +38.5

Precious metals end mixed

Gold sheds glaze but silver adds

Precious metal prices ended mixed on Thursday, 10 September, 2009. Positive economic data reduced the appeal of yellow metals' appeal as an alternate source of investment. Silver managed to incur gains.

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 Thursday, gold for December delivery ended at $996.8, lower by $0.30 (0.03%) an ounce on the New York Mercantile Exchange. Last week, gold ended higher by 4%. Year to date, gold prices are higher by 14%.

Gold ended August, 2009 higher by 0.2%. Before this, for the second quarter, gold ended higher by 0.5%. The metal had gained 4.3% in the first quarter of this year.

On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (2.5%) since then.

On Thursday, Comex silver futures for December delivery rose by 20 cents (1.2%) to $16.67 an ounce. Last week, silver ended higher by 9.9%.

Silver ended 7.1% higher for August, 2009. For second quarter, silver rose 4.5%. Year to date, silver has climbed 44.2% this year. For 2008, silver had lost 24%.

In the currency market today, the dollar index, which measures the strength of dollar against a basket of other currencies, fell by 0.4%.

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

At the MCX, gold prices for October delivery closed higher by Rs 54 (0.34%) at Rs 15,703 per 10 grams. Prices rose to a high of Rs 15,730 per 10 grams and fell to a low of Rs 15,510 per 10 grams during the day's trading.

At the MCX, silver prices for December delivery closed Rs 339 (1.3%) higher at Rs 26

Sensex ends up 33.31 pts

The Sensex after a good start ended on a flat note led by metal and banking stocks, while realty and consumer durables were reeling under pressure. It opened firm with a gain of 112.37 points, at 16,295.92 on Thursday on strong global cues. It continued to trade in the positive terrain on sustained buying interest seen in frontliners and later witnessed profit booking in select stocks by shedding some of its gains. Further the benchmark regained its strength touching a high of 16,434.77. During fag end of the day, half an hour before the close, the index lost steam and slipped into the negative territory only to bounce back into the green at close.

BSE Midcap and Smallcap index dipped 0.17% and 0.77% respectively.

On sectoral front, BSE Metal and Bankex rose over 1% each, Realty dropped 2.26%, Consumer durables dipped 1.58%.

European stocks climbed after Texas Instruments raised its forecasts and China Yurun Food Group reported higher earnings. UK`s benchmark index FTSE 100 declined 29.44 points, or 0.60%, to trade at 4,974.25. French benchmark index CAC 40 dipped 17.51 points, or 0.47%, to trade at 3,690.88. Germany`s benchmark index DAX down by 5.93 points, or 0.10%, to trade at 5,568.15. (4.20 pm)

The Sensex ended the day with a gain of 33.31 points, or 0.21% at 16,216.86 after touching a high of 16,434.77 and a low of 16,166.42. The broad-based NSE Nifty gained 5.15 points, or 0.11% at 4,819.40 after hitting a high of 4,889.05 and a low of 4,807.90.

Major gainers in the 30-share index were ICICI Bank (3.12%), Sterlite Industries (India) (2.51%), Tata Steel (2.27%), Infosys Technologies (1.92%), Bharti Airtel (1.81%), and Tata Motors (1.21%).

On the other hand, DLF (2.77%), Hero Honda Motors (2.45%), Jaiprakash Associates (2.25%), Hindalco Industries (2.05%), Mahindra & Mahindra (1.77%), and Maruti Suzuki India (1.44%) were the major losers in the Sensex.

Overall market breadth was negative. Out of the total 2,880 stocks traded at BSE, 1,093 advanced, 1,710 declined while 77 remained unchanged.