Daily Call - Apr 5 2010

Benchmark indices managed to close in green for the eighth consecutive week on the back of smart recovery on the last trading session of the truncated trading week. On the first session of the week Nifty gained 0.4% but the RSI failed to make a new top, reconfirming the negative divergence. Following two sessions were marked by correction which took the benchmark around 1% lower from Monday’s close. But a smart rally of 0.8% on Thursday made the Nifty close higher by 0.16% on weekly basis.


The cautious view on the market continues as the negative divergence is still in place. Nifty is likely to face a stiff resistance around 5330, the top made on Monday. On the downside, 5235, the low made on Wednesday, is now a crucial support, a breach of which can take the benchmark to around 5170, where a trend line adjoining bottoms of 8th and 25th Feb presents a support. Traders need to be nimble footed and keep a strict stop loss of 5235 in long positions. Only a decisive close above 5330 along with the support of RSI will make the view turn bullish. Meanwhile, concentrate on mid-cap and Small-cap stocks which were underperformers in the earlier rally and might chart their own course.

Grey Market Premiums - Apr 5 2010

Company Name	Offer Price (Rs.)	Premium (Rs.)
Pradip Overseas	110	11 to 14
Persistent Sys.	310	112 to 115
Shree Ganesh Jewellery	260	Discount
Infrasoft Technology	145	15 to 17
Goenka Diamond & Jewellery	135	Discount

Indian markets head to strong opening

Headlines for the day:

RBI order a base blow for some PSUs

BHEL to invest Rs75-cr to up capacity by 25%

NMDC raises base ore prices by 34-56%

Events for the day:

Major corporate action

Pradip Overseas Ltd to be list today
Ex-date for bonus issue of Cadila Health in the ratio of 1:2
For more Events, log on to Sharekhan.com
Results: Allied Computers International

Pre-market report

Global signals

The European stocks closed 18-month high on Thursday, led by financials, as encouraging economic figures from Asia, Europe and the United States boosted optimism for economic recovery. The European markets will be closed today i.e April 5, 2010.

The US stocks closed higher on Thursday on back of the upbeat economic data.

In today's trade, all the Asian indices are trading in the positive territory, except Kospi. At the time of writing this report, SGX Nifty was trading 33 point higher.

Indian markets

On the back of the positive signals from the Asian markets, the Indian markets are expected to open strong. The market sentiments are positive globally with strong positive bias on the back of improving global sentiments. With the earning season in the insight with no triggers for today, the Indian markets will suite the global markets. With the FIIs pumping in money and the improving sentiments in the global markets, it is expected to pump-up more money in the higher emerging market like India.

Commodity cues

In the commodity space, the crude oil prices gained for the third straight session, with the Nymex light crude oil for the May series advanced by $1.11 per barrel, whereas in the metals space, the Comex Gold for the May series up by $11.80 and the Comex Silver for the May series was up by $0.36 to a troy ounce respectively.

Daily trend of FII/MF investment in equities

On March 31, 2010, FIIs were the net buyers of the Indian stocks to the tune of Rs840.50 crore, whereas the domestic mutual funds, on March 30, 2010, were the net sellers of the stocks to the tune of Rs100.20 crore.

Positive global cues may trigger a firm start

The market is likely to open higher after a long weekend supported by positive global cues. US markets settled at 18-month highs on Thursday, 1 April 2010 following upbeat jobs data. Equity market remained closed on Friday, 2 April 2010, on account of Good Friday. The S&P CNX Nifty futures for April 2010 expiry were up 32 points in Singapore. Also the upgrade from International Monetary Fund would lift sentiment.

Stock-specific action may rule the roost in the near term based on expectations of Q4 March 2010 results. IT bellwether Infosys kickstarts the reporting season on 13 April 2010.

Asian markets edged higher on Monday as US jobs data fuelled hopes of a smart recovery. Key benchmark indices in Indonesia, Japan, Singapore and South Korea were up by between 0.16% to 2.29%.

US markets advanced on Thursday, 1 April 2010 on upbeat economic data. However, anxiety about March payrolls report scheduled to be released 2 April 2010 and profit booking before the long Easter weekend, capped gains.

The Dow Jones Industrial Average climbed 70.44 points, or 0.65%, to 10,927.07. The Standard & Poor's 500 Index rose 8.67 points, or 0.74%, to 1,178.10 and the Nasdaq Composite index added 4.62 points, or 0.19%, to 2,402.58.

An index of US manufacturing activity in March 2010 rose to its highest level in over five-and-half years, the Institute for Supply Management said. Earlier, a US Labour Department report showed initial weekly claims for jobless benefits fell more than expected.

US employers created jobs in March 2010 at the fastest rate in three years, the strongest signal yet that the US recovery is on a solid footing. US nonfarm payrolls rose 162,000 in March, the largest since March 2007, and only the third time payrolls have increased since the recession hit in late 2007. The unemployment rate held steady at 9.7% for a third straight month, the Labor Department said on Friday.

Trading in US index futures indicated that the Dow could rise 47 points at the opening bell on Monday, 5 April 2010.

The world economy could grow 4.1% this year, 0.2 points more than previously forecast, the International Monetary Fund (IMF) said in the latest draft during the weekend of its World Economic Outlook. The U.S. economy is now expected to grow 3% this year, instead of the 2.7% forecast in the IMF's January report. The IMF is due to publish its next World Economic Outlook on 21 April 2010.

According to the draft, euro zone growth this year is now forecast to be 0.8%, down 0.1 points from January's estimate. In 2011, the figure is seen at 1.5%, also down 0.1 points, the reports said.

Equity markets remained closed in the US and Europe on Friday, 2 April 2010, for the Easter holiday with European equity markets also remaining closed on Monday, 5 April 2010.

Back home auto stocks – Bajaj Auto, Tata Motors and Hero Honda Motors may see action following release of March 2010 monthly sales figures. Cement stocks may hog limelight post release of March 2010 monthly sales figures. Steel stocks may be in demand after they reportedly hiked prices on increase in input costs.

Food price index rose 16.35% in the year to 20 March 2010, higher than an annual rise of 16.22% in the previous week, government data showed on Thursday. The fuel price index rose 12.75%, higher than an annual rise of 12.68% in the previous week. Fuel costs have risen following a hike in domestic fuel prices and an upswing in world crude prices. The primary articles index was up 13.86% in the year to 20 March 2010.

India's manufacturing growth slowed down in March 2010, dropping from a 20-month-record in February 2010, as mounting cost pressures took a toll on expansion in output, a survey released on Thursday showed. The HSBC Markit Purchasing Managers' Index , based on a survey of 500 companies, fell to 57.8 in March 2010 from 58.5 in February 2010, which was the strongest since June 2008. A reading above 50 means activity is expanding. The new orders index fell to 62.7 in March from 64 in February

Industrial output in February is expected to have grown 16% year-on-year, Industry Secretary said on Wednesday. The output in January grew an annual 16.7%.

Foreign direct investment rose 15.4% to $1.72 billion in February 2010 over February 2009, government said Wednesday.

Exports in February grew 34.8% on year to $16.09 billion, Trade Minister Anand Sharma said on Wednesday. Exports are expected to grow 15-20% in the year that starts on 1 April 2010, Sharma said. Imports, too, maintained momentum growing by 66% to $25 billion underscoring the strong revival in the domestic economy.

The government announced a fresh package of incentives for exporters of garments, engineering, electronics and agro products to select markets where demand for the products is yet to pick up. The sops, which will be doled out from Thursday, will be available for six months and are expected to cost the government Rs 625 crore.

The prime minister promised on Thursday to launch a guarantee of free elementary education, in a fresh sign the government was focusing on big-ticket programmes to consolidate its rural and poor voters.

The BSE Sensex vaulted 7,819.27 points or 80.5% in the year ended March 2010 (FY 2010) helped by heavy purchases by foreign institutional investors. Indian companied raised over Rs 47,800 crore through public offers during the fiscal 2009-2010, following buoyant secondary market.

Global credit rating agency Standard & Poor's, last month, revised the outlook on India to stable from negative due to improved government finances.

The forecast for the southwest monsoon for 2010 is the next major trigger for the market. Good rains this year after last year's drought will boost farm output and rural incomes. But another monsoon failure will add to inflationary pressure which in turn may hamper the current strong economic rebound.

Tokyo-based Research Institute for Global Change has predicted normal monsoon rains in India for the current year. Agriculture secretary Prabeer Kumar Basu had also told media in Delhi last week that the monsoon rains for the year will be normal. The Indian Meteorological Department (IMD) issues a monsoon forecast, usually in the second half of April after considering weather observations in different parts of the world and extrapolating statistical data.

A weakening El Nino is a positive sign for the monsoon, Ajit Tyagi, director general at the India Meteorological Department, said on 18 March 2010. The cyclical heating of the Pacific Ocean known as El Nino will continue to fade, US forecasters said this month. The weather event, which occurs every four to seven years, brings more rain to South America and less precipitation to Asia.

Build-up of fresh positions on the first day of the new financial year helped the key benchmark indices snap a two-day slide. Markets across the globe logged on decent gains. The BSE 30-share Sensex advanced 164.85 points or 0.94% to 17,692.62 and the S&P CNX Nifty rose 41.40 points or 0.79% to 5290.50

Foreign funds bought shares worth Rs 106.40 crore and domestic funds bought shares worth Rs 452.33 crore on Thursday, 1 April 2010, as per provisional data.

As per data from the stock exchanges, foreign institutional investors (FIIs) bought stocks worth a net Rs 14,792.31 crore in March 2010.

Monthly Report - March 2010

Monthly Report - March 2010

Job report to dictate momentum at Wall Street

Nonfarm payrolls in US rise for third time in twenty-seven months

US stocks registered gains for fifth straight week that ended on Thursday, 01 April, 2010. The week was a holiday shortened one due to market being closed on the last day of the week on Friday, 02 April because of Good Friday. Economic reports and a few earning reports in the technology sector dominated the week. The week marked quite low volume of trading and all the weekly gains were incurred in the last trading day.

For the week, that ended on Thursday, 01 April, 2010, Dow ended higher by 76.71 points (0.7%) at 10,927.07. Nasdaq ended higher by 7.45 points (0.3%) at 2402.58. S&P 500 gained 11.51 points (1%) at 1178.1. Eight of ten economic sectors ended higher led by substantial gains in energy, materials, and utilities sectors. The consumer discretionary sector lagged while technology sector remained unchanged.

In the technology sector, during the week, Research In Motion was a main laggard, shedding 8.8%, after posting earnings that missed Wall Street's expectations. But Apple posted good gains amid reports it is working on a new iPhone that may be available on carriers other than AT&T (T).

The economic reports during the week had limited impact on trading. Consumption expenditures in February increased 0.3%, as expected, while core personal consumption expenditures were flat, which was not too much of a surprise since the consensus had called for a tepid 0.1% increase. Total and disposable income posted no growth in February, a 0.1% increase had been expected.

March Consumer Confidence rebounded to 52.5 from 46.4, topping the 51 consensus. The ISM Manufacturing Index for March came in at 59.6, which exceeded expectations (57) and marked the best reading in more than five years.

On Thursday, 01 April, 2010, news of a pleasing eurozone Purchasing Managers Index (PMI) and a restated commitment by China to loose monetary policy led the positive mood among market participants in the early going. The best ISM Manufacturing Index reading in five years also gave reason to push stocks even higher.

On that day, the Dow Jones Industrial Average ended higher by 70.44 points at 10,927.07. Nasdaq ended higher by 4.62 points at 2402.58. S&P 500 ended higher by 8.67 points at 1178.1. All ten economic sectors ended higher for the day led by energy, utilities and material sectors.

On Thursday, the labor market was in focus. Weekly initial jobless claims met expectations at 440,000. The ADP private payroll report on Wednesday showed an unexpected decline, shedding 23,000 versus the consensus that called for a gain of 40,000.

The U.S. reports helped commodities extend gains after data from Europe and Asia showed a similarly rosy outlook. Data from Chinese manufacturing climbed and confidence among industrial companies in Japan improved.

The stock market was closed on Friday in recognition of Good Friday. The March employment report, however, was still released at 8:30ET. The effect of the report is expected to dictate market momentum in the current week.

The Labor Department in US reported on Friday, 02 April 2010 that the U.S. economy created 162,000 jobs in March 2010. It was the largest seasonally adjusted increase in nonfarm payrolls in three years. The unemployment rate was steady at 9.7%.

The report detailed that nonfarm payrolls rose for just the third time in the past 27 months. It was aided by the hiring of 48,000 temporary workers to conduct the Census. Excluding the Census workers, payrolls rose by 114,000.

The report was largely in line with expectations. Market was forecasting a 200,000 increase in nonfarm payrolls, with about half of those coming from temporary hires at the Census Bureau.

The report showed that payroll gains were broad based, with 60% of all industries adding workers in March. Goods-producing industries' payrolls rose by 41,000, the first increase since March 2007. Manufacturing payrolls increased by 17,000, with 58.5% of manufacturing industries hiring. Manufacturing hours increased by half an hour to 41 hours per week, with 3.7 hours of overtime on average. Construction employment rose by 15,000, likely a rebound from unseasonably bad weather in February.

Crude oil prices ended substantially higher on Thursday, 01 April 2010 and crossed the $85 mark after a long time. Prices rose as the dollar weakened and due to positive global economic data which boosted overall sentiments.

On Thursday, crude-oil futures for light sweet crude for May delivery closed at $84.87/barrel (higher by $1.11 or 1.3%). During intra day trading, it surpassed the $85 mark. For the month of March, crude rose 5.1%. For the first quarter of this year, crude rose by 5.5%. Year to date, crude is higher by 6.8%.

Natural gas prices ended up 22 cents, or 5.6%, to $4.086 per million British thermal units after a government report showed a smaller-than-expected rise in storage. Natural gas futures started on the red but quickly posted gains after the Energy Information Administration reported a net increase of 12 billion cubic feet for the week ended 26 March. Market had expected a rise of 14 to 18 billion cubic feet. Natural gas had lost 31% in the first quarter of the year.

In the currency market on Thursday, the dollar index, which measures the strength of the dollar against basket of six other currencies slipped by 0.3%. The dollar index gained about 0.7% in March and rallied 4% during the first quarter.

On Thursday, gold for June delivery ended at $1,126.1 an ounce, higher by $11.6 (1%) an ounce on the New York Mercantile Exchange. For the month of March, gold slid 0.4%. For the first quarter of this year, gold rose by 1.7%, its sixth quarterly rise. On a year to date basis, gold is higher by 2.7%. On Thursday, May Comex silver futures ended higher by 36 cents (2.1%) at $17.89 an ounce. For the month of March, silver ended higher by 5%. For the first quarter of this year, silver rose by 3%. On a year to date basis, silver is higher by 5.1%.

All Indian ADRs registered hefty gains on Thursday. HDFC Bank and Tata Motors were main gainers soaring 3.5% and 3.4% respectively followed by Infosys and ICICI Bank which soared by 2.3% and 2% respectively.

For the year, Dow, Nasdaq and S&P 500 are higher by 4.8%, 5.9% and 5.6% respectively.

Network 18

Investors with a medium-term perspective can consider buying the stock of Network 18 Media and Investments (Rs 123.6). The stock's downtrend that commenced from an all-time high of Rs 629 in May 2007 was arrested in March 2009 around Rs 60. It was on a sideways consolidation phase between July 2009 and March 2010, forming an inverse head and shoulders pattern with neck line at Rs 110. This pattern is a bottom reversal pattern, signifying change in major trend. Since November 2009, the stock has been on an intermediate-term uptrend. The stock conclusively broke out of the neckline of the inverse head and shoulders pattern at Rs 110 by gaining 26 per cent last week. We observe an expansion of volume which validates the break-out.

Furthermore, the stock is trading well above its 21-, 50-and 200-day moving averages.

Both the daily and weekly relative strength indices have entered in to the bullish zone, reinforcing the bullish momentum. Signalling a buy, the daily moving average convergence and divergence indicator is featuring in the positive territory. The weekly MACD is steadily rising in the positive territory.

Our medium-term forecast on the stock is bullish. We believe that it has the potential to trend higher to the pattern price target of Rs 150 in the upcoming weeks. Investors can consider buying the stock with stop-loss at Rs 110. Short-term investors can also buy while maintaining stop-loss at Rs 135 and target of Rs 118.

Follow up- Amtek Auto (Rs 194.6)

The stock climbed 2.5 per cent from our recommended level and is in the process of heading higher towards our short-term price target. We reiterate our medium as well as short-term bullish outlook on the stock. Investors can consider buying the stock with the targets and stop-loss mentioned last week.

via BL

Daily News Roundup - Apr 5 2010

Maruti Suzuki raised prices from Rs1,000 on the A-Star to Rs9,000 on the SX4 with immediate effect. (BS)

SBI has extended its teaser home loan plan till April 30. (BL)

JSW Steel plans to expand the manufacturing capacity at its Vijayanagar plant in Karnataka from current 10mn tons to 16mn tons with an investment outlay of US$5-6bn over a period of three years. (FE)

Bajaj Auto reported a 85.12% jump in its motorcycle sales at 244,828 units in March. (BS)

JSW Steel plans to invest around Rs250bn in expanding the capacity of its Bellary plant in Karnataka by 6mn tons to 16mn tons in next 3 years. (BS)

Max New York Life gives 4% stake worth Rs4bn to Axis Bank for just under Rs800mn as part of a 10-year exclusive distribution agreement. (ET)

ONGC plans to sell gas from its C-Series field at US$5.5 per mBtu, a 30% premium over the rate at which RIL sells gas produced from its KG-D6 gas block. (BS)

NTPC has been drawing water from a canal in Chhattisgarh for the last 11 years without any agreement, reported the Comptroller and Auditor General. (BS)

CanvasM, a JV between Tech Mahindra and Motorola plans to launch 6,000 new indigenously developed applications for mobile phones. (BS)

BHEL will invest Rs6.9bn to set up a new piping plant at Thirumayam and expand its boiler division. (ET)

BHEL plans to invest Rs750mn in its Bangalore-based divisions to augment its manufacturing capacity from 15,000MW to 20,000MW by 2011-12. (BS)

Media report suggest that Reliance Industries may not renew a contract to import Iranian crude oil from this financial year. (FE)

M&M is in negotiations to buy a majority stake in Reva, or enter into a strategic alliance with the electric car maker for an investment of ~Rs1bn. (ET)

Reliance Capital is in talks with Swiss Re for a proposed foray into health insurance. (ET)

Promoters of Patni Computer are in discussions with international and local firms in a fresh attempt to sell their stakes. (ET)

Drug major AstraZeneca has been ordered to pay attorney’s fees by a US court to Dr Reddy’s Laboratories for bringing a "frivolous" and "baseless" patent infringement suit against the latter. (BS)

Foreign lenders to Wockhardt have succeeded in stalling the debt-ridden pharmaceutical company’s attempts to sell its nutrition business to Abbott Laboratories. (BS)

Ambuja Cements has produced 1.9mn tonnes in March 2010 as against 1.7mn tonnes in the same month last year. (FE)

Tata Power plans to offload its holdings worth nearly Rs17bn in the group’s telecom ventures at cost price as on March 31, 2009. (TOI)

Union Bank of India plans to raise retail term deposit rates by 25 to 50 basis points with effect from Monday. (BS)

Promoters of Bank of Rajasthan have sought more time to file objections to the capital markets regulator’s order charging them with violations of a number of rules. (BS)

ITC has entered the cigar manufacturing business marking its entry into the most sophisticated form of tobacco consumption. (BS)

NMDC raises base ore prices by 34-56%. (BS)

Reliance Infrastructure’s arm completes construction of the first 600MW unit of the Haryana government’s Rajiv Gandhi Khedar Thermal Power Plant in Hisar. (BS)

Welspun-Gujarat is close to buying a majority stake in a Saudi Arabia-based company with an annual manufacturing capacity of 0.3mn tonne of pipes, primarily for the oil and gas industry. (TOI)

Nalco achieves metal production of 4.31 lakh tons in 2009-10, against 3.61 lakh tons last year. (BS)

Nalco is mulling to undertake its third phase expansion envisaging an investment of Rs60bn. (BS)

The Maldives government has shortlisted GMR, consortia of Reliance Infrastructure and GVK Airport Developers to take over Male airport. (BS)

Norwegian Statoil and Brazil's Petrobras quit ONGC’s K-G basin gas block over government delays in approving their participation in the deepwater acreage. (BS)

SAIL, JSW and Essar increased prices of the commodity by up to Rs2,500 per ton. (ET)

Emami looking to buy Amrutanjan, says Emami Chairman. (TOI)

Jet Airways and Gulf Air enters into a code-share agreement which will come into effect from April 12. (ET)

International Finance Corporation, the private financing arm of the World Bank, is expected to pick up about 10% stake in Cholamandalam DBS Finance for Rs1bn. (BL)

Sanofi-Aventis allows Sun Pharma to sell cancer drug. (TOI)

Cinemax aims to touch at least 140 screens nationally and is targeting revenue of Rs2bn this year. (ET)

Dishman Pharma’s SEZ project to finally take off after a delay of over 4 years. (ET)

Marico plans to shut its health & wellness brand Kay0061 Life within a month. (FE)

Gitanjali to cut its presence in US jewellery market. (BS)

Torrent Power begins power distribution in Agra. (BS)

Reliance Life Sciences plans to launch its biosimilar drug to stimulate red blood cell production in Europe within a year. (ET)

Indage Vintners files an application with a division bench of the Bombay High Court challenging an order of a single judge that directed the company to wind up operations. (ET)

HeidelbergCement has earmarked Rs8bn for acquisition of mid-size companies in India as it plans to double annual capacity to 6 mt in the next two years. (ET)

Liberty Shoes plans to open 60 outlets, including 10 overseas stores, this fiscal. (BS)

Government may eventually give a financial lifeline to Air India by pumping more funds into the carrier rather than divesting a stake to a strategic investor. (BL)

The DIPP has virtually turned down the proposal of the Department of Pharmaceuticals to cap FDI in the pharma sector at 49% stating that apprehensions about the industry were misplaced. (ET)

The finance ministry proposes to tighten the FDI regime in the country. (BS)

Truck sales rose 99.3% in March to 33,619 units, compared with 16,868 units during the same month last year. (BS)

Bankers are likely to urge the RBI not to hike its key rates and mandatory cash requirement in its April policy. (ET)

Foreign exchange reserves dipped US$1.15bn during the week ended March 26 to touch US$277bn. (ET)

The Government is likely to consider extending export sops selectively after a detailed analysis following evidence that a strong recovery in the external sector was underway. Most of the sops given to exporters to tide over the global slowdown, including the ones announced earlier this week, are valid only till March 31, 2010. (ET)

More than a dozen foreign entities, which invest in shares of Indian companies using the Mauritius route, are planning to move the Authority for Advance Rulings (AAR) for clarity on the issue of tax liability in India. (ET)

Uttarakhand has demanded 1,000MW of free power from the Centre for shelving the 480MW Pala Maneri and 381MW Bhaironghati projects. (BS)

Primary food inflation was up 16.35% yoy for the week ended March 20, after hitting a four-month low of 16.22% in the preceding week. (BS)

Mutual fund industry's average assets under management fell 5% in March as banks and corporates withdrew from funds to feed their year-end liquidity needs. (BL)

Imports during February up 66% yoy to US$25bn. (BL)

PSU oil refiners' fuel loss may touch Rs900bn. (BL)

TRAI set to deliver recommendations that could permanently alter the structure, pricing and methodology for spectrum allocation; it could also pave way for M&As which, according to an April 2008 guideline, are not allowed till early 2011. (TOI)

Positive momentum may prevail

The undertaking of a new action brings new strength. – Evenius.

April promises to be an action-packed month after a rather dull March. Earnings, RBI policy, IIP data, monthly inflation and 3G auction will vie for the market’s attention. On top of that, one will have to keep an eye on global developments. The market has left behind a stellar fiscal year and began the new one on a firm note.

Today we expect the momentum to gain strength on the back of strong global cues. A better-than-anticipated US jobs report is likely to give a fillip to world markets. This means that the NSE Nifty will breach 5300 yet again today. It could manage to stay above 5300 given the firm global markets and positive FII flows. However, the Nifty is likely to meet resistance as it approaches 5400 and attempts to surpass that level.

In short, the bias remains positive but there might be some softening owing to growing discomfort on valuations. Inflation will continue to be a big worry, especially if it crosses double digits and doesn’t come down quickly. Going further ahead, monsoon will have some bearing on sentiment and on the overall economic outlook.

Telecom firms will be in focus ahead of the 3G auction. Cement firms may also attract some attention due to strong dispatch numbers and news of fresh consolidation. Patni Computer will also be in the spotlight amid reports that promoters have resumed talks for an exit. RIL, ONGC and Cairn could rise as crude oil prices have crossed $85 a barrel. But, PSU oil marketing companies will come under pressure.

FIIs were net buyers in the cash segment on Thursday at Rs1.06bn on a provisional basis. Local funds were net buyers of Rs4.5bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net buyers of Rs10.51bn.

US stocks closed higher on Thursday with the Dow Jones Industrial Average and S&P 500 index ending at a fresh 18-month highs as Wall Street kicked off a new quarter on a firm note. Oil and other commodities rallied as economic reports from across the globe lifted hopes of a global recovery.

The Dow added 70 points, or 0.7%, ending at 10,927.07, its highest close since Sept. 26, 2008. The blue-chip indicator rose to within 43 points of 11,000, a key psychological indicator, before pulling back. The Dow touched an intraday high of 10,956.30.

The S&P 500 gained 9 points, or 0.7%, to finish at 1,178.10. Gains in materials and energy shares led the advance in the broad index.

The Nasdaq added 5 points, or 0.2%, to 2,402.58.

For the week, the Dow was up 0.7%, the S&P rose 1% and the Nasdaq advanced 0.3%, the indexes' fifth straight week of gains.

For every stock on the decline, nearly three were rising on the New York Stock Exchange, where trading volume topped 928 million and composite volume topped 4.1 billion.

The dollar gained versus the euro and fell against the yen.

COMEX gold for June delivery rose $11.60 to settle at $1,126.10 per ounce.

US light crude oil for May delivery rose $1.11 to settle at $84.87 a barrel on the New York Mercantile Exchange, the highest close for crude since October 2008.

Treasury prices tumbled, raising the yield on the 10-year note to 3.86% from 3.83% late on Wednesday.

US stocks rose through the early afternoon as investors welcomed reports showing continued fall in the pace of job losses and further pick-up in the manufacturing sector. The advance briefly lost steam in mid-afternoon, before picking up again near the close.

US stock markets were shut on Friday for Good Friday, even as the key jobs report was slated for release. But, the Treasury markets had a shortened session.

The initial jobless claims data, released on Thursday showed that the US is witnessing a slow and steady improvement in the labour market and the manufacturing numbers provided reassurance about the prospects for the global economy.

On Wednesday, US stocks had declined at the end of a good quarter, in which the Dow gained 4.1%, the S&P 500 gained 4.9% and the Nasdaq gained 5.7%. All three major US stock indexes have risen in six of the last seven weeks.

The number of Americans filing new claims for unemployment fell last week to 439,000 from 445,000 in the previous week, matching the lowest level since August 2008. Forecasts were for 440,000 claims, according to a consensus of economists.

The Labor Department report also showed that continuing claims, a measure of Americans who have been receiving benefits for a year or more, fell to 4,662,000 from 4,668,000 the previous week. Economists thought continuing claims would fall to 4,618,000.

A separate report from outplacement firm Challenger, Gray & Christmas showed that planned job cuts rose in March. Employers said they were planning to cut 67,611 jobs in March, a rise of 61% from February's 42,090 cuts.

The Institute for Supply Management's manufacturing index rose to 59.6 in March from 56.5 in the previous month. Economists expected a reading of 57.

February construction spending fell 1.3% after falling 1.4% in January, according to a Census Bureau report released in the morning. Economists thought it would fall 1%.

In company news, BlackBerry maker Research in Motion (RIM) slipped after it posted fiscal fourth-quarter earnings and revenue that rose from a year earlier, but missed forecasts due to weaker-than-expected phone shipments.

The company also issued a fiscal first-quarter earnings and revenue forecast that was better than expected. But shares fell on Thursday as analysts and investors expressed worries that the company is not keeping up with Apple and Google.

Primerica, Citigroup's soon-to-be spun-off life insurance division rallied more than 20% in its first day of trading as a public company.

General Motors (GM) and Ford Motor were among the automakers reporting improved sales in March, although forecasts were short of more bullish analyst estimates released earlier in the month.

Ford said sales rose 40% versus earlier forecasts for a gain of 55%. GM said sales rose 21% versus forecasts for a gain of 27%.

Overall auto industry sales were expected to rise sharply in March in comparison to a weak period a year earlier.

The positive economic data in the US followed reports that manufacturing in China is picking up speed, and confidence is rising among Japan's biggest manufacturers.

European shares ended higher on the first day of the second quarter, helped by improvement in manufacturing data from Europe, China and the UK.

The Stoxx Europe 600 index rose 1.3% to end at 267.02, extending gains from the first quarter when the index rose around 4%.

Manufacturing activity across the 16-nation euro zone expanded at the fastest clip since June 2006 in the same month. The euro-zone figure masked sharp divergence within the region, with Germany's PMI reading at an almost 10-year high but Greece at an 11-month low.

The euro rose against the dollar to US$1.3568.

The German DAX index rose 1.33% to 6,235.56 and the French CAC-40 index advanced 1.5% to 4,034.23. The UK's FTSE 100 gained 1.15% to 5,744.89 after activity in Britain's manufacturing sector last month accelerated at its fastest pace since October 1994.

After enjoying a spectacular run in FY10, the Indian benchmark indices ended the week on a flat note halting its seven-week winning streak. The Nifty and the Sensex although started off the week by hitting their respective 52-week highs, however, the surge showed some signs of slackening. Headwinds include inflation, an impending hike in interest rates. Monsoon will be crucial. The earnings and guidance from India Inc would be the closely watched in the ensuing weeks.

The Realty, Capital Goods and the Power stocks were in demand during the week; even small-cap stocks attracted buying interest. On the other hand, the IT stocks were among the top laggards as the rupee appreciated to its 52-week high of Rs44.88 as against the US dollar.

The FII continued to be net buyers in the Indian markets. They bought stocks to the tune of Rs40.46bn in the last four days. On the other hand, the DIIs were net seller to the tune of Rs7.55bn.

The BSE Sensex hit an intra-week high of 17,793 and low of 17,488 and the NSE Nifty hit an intra-week high of 5,329.5 and low of 5,235.

On Friday, The BSE Sensex advanced 164 points to end at 17,692 and NSE Nifty added 41 points to close at 5,291.

Market breadth was in favour of the bulls, out of total 2889 stocks, 2,208 advanced against declines of 610 and 71 stocks remained unchanged.

In Asia, the Nikkei in Japan ended higher by 1.4%, Australia's S&P/ASX also gained 0.6%. Shanghai SE Composite rose 1.2% and Hang Seng index in Hong Kong was up 1.4%.

In Europe, stocks were trading with a positive bias. The DAX in Germany was up 0.9%, the CAC 40 index in France was up 1.2% and the FTSE in the UK was up 0.9%.

Coming back to India, among the BSE sectoral indices, the BSE IT index was top gainer, the index rose 2.2%, followed by BSE Consumer Durables index up 1.5% and Metal index up 1.4%.

Among the top losers were, BSE FMCG index was down 0.3% and the BSE Auto index was down 0.1%.

Outside the frontline indices, the big gainers in the broader market were P&G, Godrej Ind, Crompton Greaves, Max India and Biocon. On the other hand, losers included Mundra Port, Balrampur Chini, Renuka Sugar and Tata Chem.

Crude flirts around $85

Crude settles with good gains on demand hopes

Crude oil prices ended substantially higher on Thursday, 01 April 2010 and crossed the $85 mark after a long time. Prices rose as the dollar weakened and due to positive global economic data which boosted overall sentiments.

On Thursday, crude-oil futures for light sweet crude for May delivery closed at $84.87/barrel (higher by $1.11 or 1.3%). During intra day trading, it surpassed the $85 mark. For the month of March, crude rose 5.1%. For the first quarter of this year, crude rose by 5.5%. Year to date, crude is higher by 6.8%.

In the currency market on Thursday, the dollar index, which measures the strength of the dollar against basket of six other currencies slipped by 0.3%. The dollar index gained about 0.7% in March and rallied 4% during the first quarter.

Among economic reports scheduled on Thursday, news of a pleasing eurozone Purchasing Managers Index (PMI) and a restated commitment by China to loose monetary policy led the positive mood among market participants in the early going. The best ISM Manufacturing Index reading in five years also gave reason to push stocks even higher. At 59.6, the index also exceeded expectations.

Among other economic data, construction spending for February was a sharper-than-expected 1.3%. Initial jobless claims count of 439,000 for the week ended 27 March was in-line with the consensus forecast.

In the latest weekly inventory report, the EIA reported a day before that crude-oil inventories increased by 2.9 million barrels in the week ended 26 March, in line with market expectations. Inventories of distillates, which includes diesel and heating oil, decreased by 1.1 million barrels, also in line with expectations. Out of this, gasoline inventories increased by 300,000 barrels.

Market had expected an increase of 2.65 million barrels in crude inventories. They also projected declines of 2 million barrels for gasoline stocks and 1.2 million barrels for distillate supplies.

Elsewhere, natural gas ended up 22 cents, or 5.6%, to $4.086 per million British thermal units after a government report showed a smaller-than-expected rise in storage. Natural gas futures started on the red but quickly posted gains after the Energy Information Administration reported a net increase of 12 billion cubic feet for the week ended 26 March. Market had expected a rise of 14 to 18 billion cubic feet. Natural gas had lost 31% in the first quarter of the year.

Crude ended FY 2009 higher by 78%, the highest yearly gain since 1999. It reached a high of $82 earlier in October 2009 and hit a low of $33.98 on 12 February 2009. Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 45% since then. Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.

SGX Nifty Live Update - Apr 5 2010

5,338.00 +33.00

Intrasoft Tech fixes issue price at Rs145/share

Intrasoft Technologies Ltd., which operates the website www.123greetings.com, has fixed the issue price for its IPO at Rs 145 per share. The issue which opened for subscription on March 23, and closed on March 26, received a good response from investors and was subscribed 18.95 times. The overwhelming response was seen from non-institutional investors, their reserved portion got subscribed 21.60 times followed by retail and qualified institutional investors, which portion overbid 13.51 times and 21.97 times, respectively. The company has raised Rs536.5mn through the issue of 37,00,000 shares. The issue constitutes 25.12% of the fully diluted post issue paid up equity share capital of the company. The proceeds from the IPO will be used fund the company’s requirements for branding & promotion, purchasing a corporate office in Kolkata, investment in technology infrastructure and for general corporate purposes. Collins Stewart Inga Pvt. Ltd. and Anand Rathi Advisors Ltd. were the Book Running Lead Managers to the issue.

Cairn India to drill 14 wells in 3 blocks by Sept-end

Cairn Energy India Pty. Ltd., a subsidiary of Cairn India Ltd., plans to drill up to 14 wells in three offshore blocks on the west and east coasts of India by September. Cairn, the operator in these three blocks, is planning to conduct drilling campaigns in these three blocks during Q3 (July-September) 2010. CB-OS/2 (in Cambay Basin) and Ravva (in Krishna-Godavari Basin) are producing blocks while the Palar block is an exploratory one. Cairn holds 40% operating interest in the Cambay Basin block, while Oil & Natural Gas Corp (ONGC) holds 50% interest and Tata Petrodyne owns the remaining 10%. The UK-based company plans to drill two firm wells in this block and another optional well during July-September. On January 28, Cairn had said that average gross production from the CB/OS-2 block during October-December 2009 stood at 12,744 barrels per day of oil equivalent, including 8,998 barrels of oil and condensate and average gas production of 22.48 million cu ft per day. In Ravva, Cairn plans to drill six wells and two optional wells. Cairn holds 22.5% operating interest in the Ravva block. ONGC owns 40% interest, Videocon Industries 25% and Ravva Oil (Singapore) 12.5% stake. Average gross production from the Ravva field during October-December 2009 stood at 38,668 barrels of oil equivalent daily, comprising 30,957 barrels of oil and 46.26mn cu ft of gas daily.

Maruti Suzuki sells a million units in FY10

Maruti Suzuki India Ltd. sold a total of 10,18,365 vehicles in FY10. This is the first time in Indian automobile history that a car company has sold over a million units in a financial year. This included 8,70,790 units sold in the domestic market, the highest ever by the company in a fiscal. The export sales of 147,575 units in the year were the highest ever annual exports by the company. The total sales numbers in 2009-10 mark a growth of 29% over the previous financial year.

Maruti Suzuki’s total sales in 2008-09 were 792,167 units. The domestic sales in A2 segment grew by 23.8% in the fiscal year 2009-10 while in the A3 segment the sales growth was 30.8%, as compared to 2008-09. The export numbers in FY10 were led by the A-star, Maruti said. This fuel efficient compact car clocked over 1.27 lakh export sales in the fiscal.

During March 2010, Maruti Suzuki sold a total of 95,123 units, up 11% over March 2009 when the company had sold 85,669 units. The March 2010 numbers include domestic sales of 79,530 units and the highest ever monthly exports of 15,593 units. The previous highest monthly exports were in August 2009 at 14,847 units.

Food and fuel inflation inches higher

India's food inflation rose marginally at 16.35% in the week ended March 20 as against 16.22% in the previous week, the Government said. The index for Food Articles group rose by 0.6% to 284.7. At the same time, inflation in the Non-food Articles group fell to 12.57% from 13.06% in the previous week. Inflation for the Primary Articles group stood at 13.86% in the week under review as against 13.88% in the week ended March 13, the data showed. It was at 5.2% during the corresponding week of the previous year. The WPI for this group rose by 0.4% to 283.4. Fuel & Power inflation increased a little bit at 12.75% in the week ended March 20 versus 12.68% in the previous week.

The index for this major group rose marginally to 361.8 from 361.7 in the preceding week. India's annual wholesale inflation rose to 9.89% in February, compared with 8.56% rise in January and 3.50% a year ago. Headline inflation, which was initially driven by high food prices, is now spreading to other segments of the economy. Inflation in manufacturing accelerated to 7.4% in February from 6.5% in January. With inflation spreading to non-food items, the Reserve Bank of India (RBI) is likely to further tighten its monetary stance in its forthcoming annual policy on April 20. The RBI recently raised the repo and the reverse-repo rates by 25 basis points to 5% and 3.5%, respectively, to contain inflation. Bankers say they will wait for RBI's annual monetary policy to decide on hiking interest rates.