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Gold prices surge to Rs 18,400 in opening trade

Gold prices ontoday touched a new peak at Rs 18,400 per ten gram in the national capital gaining Rs 430 in the opening trade

Gold gained Rs 430 to trade at Rs 18,400 per ten gram in the first few minutes of trading as jewellery fabricators indulged in creating fresh positions following a constant raise in its prices at overseas front.

The precious metal, which normally move in tandem with international trend, remained on an uptrend and set record high levels in each session


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Nifty closes near 4950; IT, capital goods down
                                          
                                             World stock markets tumbled on Thursday as investors fretted over the debt problems at Dubai World, a government investment company


Markets are usually relatively quiet when Wall Street is closed for a holiday, as it is Thursday for Thanksgiving Day. Not so today, as the rest of the world digested the stunning news from Dubai that the government's flagship investment company was in financial trouble.

National Stock Exchange’s Nifty ended at 4942.40, down 63.15 points or 1.26 per cent. The index touched an intraday low of 4806.70 and high of 5005.05.



Bombay Stock Exchange’s Sensex closed at 16,647, down 207.93 points or 1.23 per cent. The 30-share index hit a low of 16210.44 and high of 16718.80.

BSE Midcap Index was down 1.31 per cent and BSE Smallcap Index declined 2.12 per cent.

Amongst the sectoral indices, BSE IT Index was down 2.38 per cent, BSE Capital Goods Index fell 1.71 per cent and BSE Metals Index slipped 1.44 per cent.


Nifty gainers comprised Suzlon (7.32%), Ranbaxy Laboratories (2.87%), Unitech (2.59%), BPCL (2.22%) and GAIL (1.17%).

Among Nifty losers, Siemens (-5.65%), IDFC (-4.06%), Axis Bank (-3.42%), Ambuja Cements (-2.99%) and JP Associates (-2.87%) were the worst hit.

Market breadth on BSE was extremely negative with 2003 declines against 740 advances.

Sensex moves higher; Oil & gas, FMCG up

Indian markets held on firmly to early morning gains Monday led by gains in oil&gas and index major Reliance Industries. Most sectoral indices were in the green with an exception to IT space which remained subdued. “If Nifty maintains above 5080 for some days then it’s quite clear that Nifty is headed towards the 5200-5350 in coming days. Support for the Nifty is placed at 4940-4870 and unless Nifty breaks this support area then we don’t see any threat to this current uptrend,” said Nirmal Bang report. At 12:22 pm, Bombay Stock Exchange’s Sensex was at 17,162.06, up 140.21 points or 0.82 per cent. The index touched an intraday high of 17180.68 and low of 17045.02. National Stock Exchange’s Nifty was at 5099.20, up 46.75 points or 0.93 per cent. The broader index retreated after touching intraday high of 5104.55. It touched a low of 5052.10 in trade so far. BSE Midcap Index was up 0.49 per cent and BSE Smallcap Index moved up 1.06 per cent. Amongst the sectoral indices, BSE Oil&gas Index jumped 2.46 per cent, BSE FMCG Index moved 1.44 per cent higher and BSE Healthcare Index gained 0.83 per cent. BSE IT Index was down 0.26 per cent. Shares of Reliance Industries were reacting to the company’s offer for ല്യോന്ടെല്ല്‍ബസേല്‍

(EconomicTimes )

India will be the third largest economy in the world
Top 10 challenges for IndiaWorld's most admired countriesWorld's top 20 countries to liveforeign-policy think tank has said. An article "The G20 in 2050", carried in November bulletin of the Carnegie Endowment for International Peace said, "China, India, and the United States will emerge as the world's three largest economies in 2050. Their total GDP, in real US dollar terms, will be over 70% more than that of the other G20 countries combined." Other main findings include, China will become the world's largest economy in 2032, and grow to be 20% larger than the United States by 2050. Over the next forty years, nearly 60% of G20 economic growth will come from Brazil, China, India, Russia, and Mexico alone. The article was written by Uri Dadush and Bennett Stancil. A Frenchman and former director of World Bank, Dadush is the director of the International Economics Programme .

The market saw an extremely volatile session today and closed at the high point of the day. After a disastrous start, post the home minister's disinvestment comments and government's rejig on the direct tax code saw the market recover. The short covering rally today was led by realty, metal and IT stocks. Sensex shut shop at 16063, up 151 points and Nifty at 4765, up 54 points from the previous close. CNX Midcap index was up 2.10% and BSE Smallcap index was up 1.91%. The market breadth was positive with advances at 948 against declines of 310 on the NSE. Top Nifty gainers included Suzlon, Reliance Capital and GAIL while losers were Ambuja Cement, ACC and ITC.

Sensex ends over 200 points lower; realty, metals drag
Equities ended volatile session in deep red on the settlement day of October F&O series.
Realty, metals and power led the fall while
and pharma stocks showed some strength.
Bombay Stock Exchange’s Sensex closed at 16052, down 230.90 points or 1.42 per cent. The index touched a high of 16264.09 and low of 15993.83 during the day. National Stock Exchange’s Nifty ended at 4749.70, down 76.45 points or 1.58 per cent. The broader index hit a low of 4738.40 and high of 4826.10.
BSE Midcap Index was down 2.09 per cent and BSE Smallcap Index was 1.35 per cent lower. Amongst the sectoral indices, BSE Realty Index was down 6.33 per cent, BSE Metal Index fell 2.61 per cent and BSE Power Index slipped 2.27 per cent.
BSE FMCG Index was up 0.50 per cent and BSE Healthcare Index gained 0.26 per cent. Sensex gainers were Mahindra & Mahindra (3.62%), ONGC (1.61%), Sun Pharmaceuticals (1.47%), Hindustan Unilever (0.83%) and HDFC (0.82%). DLF (-7.33%), Reliance Communications (-7.09%), Jaiprakash Associates (-4.52%), ICICI Bank (-4.07%) and BHEL (-3.64%) ended with losses.
Market breadth was negative on the BSE with 1860 declines and 818 advances.

( Economic Times)

SEBI permits extension of trading by 2-1/2 hours a day

Indian stock market will soon witness longer hours and higher volumes. In a move that will give investors more flexibility but make life in
the dealing room and back-office far more demanding, capital market regulator SEBI has permitted stock exchanges to begin the day as early as 9 AM and keep the market open for trading till 5 PM. Currently, trading in stocks and equity derivatives take place between 9:55 AM and 3:30 PM. While the exchanges are yet to fix the timings, the decision to align the timings of the stock markets with other financial markets like currency, bonds and call money may boost volumes in stocks and equity derivatives. More interestingly, if the local market opens at 9 AM, it may drive a slice of the trading volume from Singapore, where the Nifty futures are traded, to India. Since operators shorting a stock often use the shallower Singapore market to drag down the scrip in India, an early opening will lower the scope of such manipulations. A senior NSE official told ET that the exchange is likely to extend the trading hours 'soon'. "The exchange is conducting a review to ensure that systems are compliant with SEBI requirements. We do not anticipate any issues in starting soon," the official said. A BSE spokesperson said the exchange welcomes the SEBI directive on extension of trading hours, though he declined to comment on when it plans to implement it. ET had first reported about SEBI's intention to allow extended trading hours in its edition dated December 12, 2008. Brokers said institutional investors will benefit from the advancing of trading time in the morning, while day traders will have more time to react to European markets. Also, retail investors are likely to get more time to track their portfolio and even book trades after finishing their regular work. However, analysts tracking corporate developments may have to wait longer, as most companies make market sensitive after trading hours. "Given the fact that volumes have been increasing on SGX (Singapore Exchange) where the Nifty is traded, this was anticipated and is a positive move," said Rashesh Shah, CMD, Edelweiss Capital. The origin of the proposal to extend trading hours has its roots in an increased interest among FIIs and overseas arbitrageurs in Singapore Nifty futures. Nifty futures on the Singapore Exchange are available to global investors at least a couple of hours before trading starts in Indian markets. This has resulted in overseas investors gaining an upper hand over local investors, who do not have access to Singapore Exchange, to react to global events and volumes shifting from NSE's equity derivatives segment to Singapore

( Economic Times )

SUCCESS IS LIKE YOUR OWN SHADOW.
IF YOU TRY TO CATCH IT U WILL NEVER SUCCEED.
IGNORE IT AND WALK IN YOUR OWN WAY.
IT WILL FOLLOW YOU

ndia to cut stake in steelmaker SAIL: Report


India's steel ministry has approved a plan to sell shares in state-run Steel Authority of India Ltd (SAIL) to help fund the firm's
expansion and cut the government deficit.

The two-phased sale would be a mix of a government stake sale and an issue of fresh shares by the company, Dow Jones Newswires reported Tuesday, quoting an unidentified senior steel ministry official. "We plan to seek the cabinet's nod for it in over a month's time," the official said.

The report comes as the government considers minority stake sales in various state-run firms, from NTPC, India's biggest thermal power generating company, to miner Manganese Ore India, to raise funds to cut the hefty fiscal deficit.

The stake sale and issue of fresh shares in SAIL, India's largest steel producer by volume, would cut the government's holding to around 68 percent from 85.82 percent.

In the first phase, the government would sell five percent of its shareholding while SAIL will issue an additional five percent equity, the report said. The government plans to sell a total of 10 percent of its holding, while the company is expected to issue additional shares worth 10 percent of the expanded equity base, the official said.

The amount of money to be raised from the share sale would be fixed after cabinet gave its approval, said the official. The timing of the share sale would be announced later.

SAIL plans to raise its annual hot metal production capacity to 23.5 million metric tonnes by the financial year ending March 2012 from the current 14.6 million tonnes.

The steel ministry official said SAIL will use the share sale money to partly fund its expansion.
( Economic Times dt 20 Oct 09 )

What about this Diwali?

Morgan Stanley forecasts strong earnings growth for Indian Companies.
Companies could post strong earnings growth over the next 12 months, driven by a sharp recovery in industrial growth and rebound in
margins, led by cost-cutting and lower raw material prices, said Morgan Stanley, in a recent note. The investment Bank has raised its Sensex target for December 2010 to 19400 and upgraded the benchmark’s earnings growth estimates. Some of the prominent Market experts believe that
HOTELLEELA, CASTROL, MUNDRAPORT, TATATEA, NTPC, 3IINFO, IGL, GAIL, HINDUNILVR, IFCI
would be bets which look good from 1 year perspective till 2010Diwali.
Accumulate in dips.
Happy Diwali and Happy Investing

PSUs may be given sell orders soon
19 Oct 2009, 1005 hrs IST, Anto Antony, ET Bureauseries of public offers from state-run firms could hit the market in the next few months if the Cabinet Committee on Economic Affairs
(CCEA) on Monday accepts disinvestment department’s proposal to offload a minimum 10% stake in all such firms, a senior finance ministry official told ET. The PSUs that could see their first public floats include big ones such as Coal India, Bharat Sanchar Nigam, National Aviation Co and Manganese Ore India and medium-sized players such as RITES, Ircon, HLL Lifecare and NBCC. A bullish market sentiment has also encouraged the disinvestment department to draft a schedule for follow-on public offers (FPO) by listed PSUs. According to the plan, at least one IPO or an FPO will hit the market every month for the next nine months. As a result, REC, NTPC, NMDC, Hindustan Copper, MMTC, Engineers India, Sutluj Jal Vidyut Nigam and RITES are expected to tap the market in the six months starting December.

( Economic Times )

Oil jumps to fresh 1-year high near $76 a barrel
15 Oct 2009
Oil prices reached a fresh one-year high near $76 a barrel on Thursday in Asia on a weaker US dollar and growing investor optimism about
an economic recovery. Benchmark crude for November delivery was up 72 cents to $75.90, the highest since October 2008, by midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract added $1.03 to settle at $75.18 yesterday. Oil investors have fed off rising stock markets and a falling dollar this week to break out of a $65 to $75 trading range that has held since May. The Dow Jones industrial average rose 1.5 per cent yesterday to above 10,000 for the first time in a year on encouraging earnings reports from Intel Corp and JPMorgan Chase & Co. Most Asian stock indexes gained in early trading. Meanwhile, the euro rose to $1.495 in early Asian trading from $1.4933 the previous day while the dollar gained to 89.46 yen from 89.34. Oil is traded in US dollars and its price tends to rise when the dollar falls.Oil prices reached a fresh one-year high near $76 a barrel on Thursday in Asia on a weaker US dollar and growing investor optimism about
an economic recovery. Benchmark crude for November delivery was up 72 cents to $75.90, the highest since October 2008, by midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract added $1.03 to settle at $75.18 yesterday. Oil investors have fed off rising stock markets and a falling dollar this week to break out of a $65 to $75 trading range that has held since May. The Dow Jones industrial average rose 1.5 per cent yesterday to above 10,000 for the first time in a year on encouraging earnings reports from Intel Corp and JPMorgan Chase & Co. Most Asian stock indexes gained in early trading. Meanwhile, the euro rose to $1.495 in early Asian trading from $1.4933 the previous day while the dollar gained to 89.46 yen from 89.34. Oil is traded in US dollars and its price tends to rise when the dollar falls. ( Economic Times)

Morgan Stanley lifts India growth view to 6.4 pc

Morgan Stanley lifts India growth view to 6.4 pc


Morgan Stanley raised India's FY10 growth forecast to 6.4 per cent on a higher-than-expected August industrial output and said if the data
continue to surprise on the upside policy rates could be lifted before end-2009.

Morgan Stanley had previously forecast growth of 5.8 per cent and expected policy rates to be lifted by January 2010.



Morgan Stanley expects the Reserve Bank of India (RBI) to hold rates at its Oct. 27 quarterly monetary policy review, but sees a "more than even" chance of a hike in banks' cash reserve ratio as a tool to sterilise rising capital inflows.

Industrial production rose 10.4 per cent in August from a year earlier, its fastest pace in 22 months, beating the median forecast in a Reuters poll, and July's annual growth was revised up to 7.2 per cent from 6.8 per cent.

Morgan Stanley also lifted its industrial production growth forecast for India to an average 8 per cent year-on-year in fiscal year 2009/10 from 6.4 per cent earlier, and its services sector growth view to 8.4 per cent from 8.1 per cent.

Source : Economic Times dt.15 Oct. 09

CORPORATE NEWS
BHARATI
In a move that could have implications for the
talks between Bharti and South Africa's MTN
for a cash-and-share-swap deal, the Securities
and Exchange Board of India (Sebi) today
decided to amend the Takeover Code to
mandate an open offer if American Depository
Receipts (ADRs) and Global Depository Receipts
(GDRs) with voting rights cross the prescribed
threshold.
Oil and Natural Gas Corporation (ONGC),
wants to hire an ultra deep-sea drill rig, the
daily cost of which is about Rs 5 crore. This is to
improve exploration in the western offshore
blocks.
After a series of flip-flops, NTPC is likely to
finally sign an agreement with Reliance
Industries Ltd (RIL) this week to buy
government alloted natural gas at an officially
approved price of $4.20 per mBtu.
Cipla will sell about four per cent of its equity to
institutional investors to raise close to $175
million (Rs 840 crore) to fund its capital
expansion plans.
Dewan Housing Finance (DHFL)
has raised Rs 250 crore through private placement of debt
and plans to raise another Rs 500 crore through
private placement of non-convertible debentures
(NCDs) in the current financial year.
Kingfisher Airlines
plans to raise up to 175 million dollars (about Rs 840 crore) before
March next year through rights issue and global
depository receipts (GDR).
Pipavav Shipyard
has fixed the issue price of its initial public offer (IPO) at Rs 58, a little less
than the upper end of its price band.
Gati will raise a total of over Rs 78.91 crore by
issue of warrants to different promoters and The
Infrastructure Fund of India LLC.
In a move that could have implications for the
talks between Bharti and South Africa's MTN
for a cash-and-share-swap deal, the Securities
and Exchange Board of India (Sebi) today
decided to amend the Takeover Code to
mandate an open offer if American Depository
Receipts (ADRs) and Global Depository Receipts
(GDRs) with voting rights cross the prescribed
threshold.
Gati will raise a total of over Rs 78.91 crore by
issue of warrants to different promoters and The
Infrastructure Fund of India LLC.and South Africa's MTN
for a cash-and-share-swap deal, the Securities
and Exchange Board of India (Sebi) today

Gati
will raise a total of over Rs 78.91 crore by
issue of warrants to different promoters and The
Infrastructure Fund of India LLC.

Prime Minister Manmohan Singh strongly backed Bharti group's efforts
for acquiring stakes in South African telecom gaint MTN when he took up the issue with President Jacob Zuma and hoped that the deal will go through without any "discrimination".
"As far as MTN issue is concerned, I mentioned it to (President) Zuma. I sincerely hope that this deal would go through and there will be no discrimination against it," he told reporters in reply to a question at a press conference in Pittsburgh.
Singh said officials of the two countries would discuss the issue.
Bharti and MTN are looking at an USD 23 billion deal to create the world's third largest mobile firm with over 200 million subscribers. According to the initial agreement, MTN and its shareholders would acquire 36 per cent stake in Bharti and Bharti would acquire 49 per cent stake in MTN.


No economic crisis in India: PM

Prime Minister Manmohan Singh said on Friday that there is no economic crisis in the country. "There is no economic crisis in India. It is certainly true that as a sequel to the global economic crisis our exports have suffered that has affected the rate of growth, but even then our economy is growing at a rate of six and half per cent. Therefore there is no crisis, as such in India," Singh said.
However, the Prime Minister acknowledged that in a highly interdependent world, India has a stake in the stability and growth of the world economy.
"If world economy collapses, there is obviously some effect on our country. Already the rate of our growth of our economy particularly our exports have suffered," he said, adding that this has led to decline in exports of important labour intensive products like gems and jewellery, leather goods textiles.

Stocks to watch: BHEL, Tech Mahindra, TCS,
Wipro, Jet Airways, Reliance Infra, Lanco
25 Sep 2009, 1005 hrs

Crude oil prices bounced back after sharp fall of over 4 per cent on Friday. US crude for November delivery was up at $66.36 per barrel and
London Brent crude gained to $65.43. The Indian rupee fell Friday on fears of capital outflows from the domestic stock market. At 9:05 a.m., the partially convertible rupee was at 48.23 against its previous close of 47.95. Engineering major Bharat Heavy Electricals Limited has bagged Rs 365 crore order from the Nuclear Power Corporation of India for supply of four steam generators for India's second 700 MWe nuclear power station, being set up at Rajasthan Atomic Power Project, Kota. Tech Mahindra, IBM and TCS are vying for a $400-million (Rs 1,800 crore) IT outsourcing contract from Sistema Shyam Teleservices. Negotiations are on with these companies for a 10-year deal, but the contract will contain a clause that will allow Sistema Shyam to exit after five years. Jet Airways shareholders on Thursday approved the fund-starved airline’s plan to raise up to $400 million, or about Rs 1,920 crore, at an extra-ordinary general meeting as it desperately looks to raise money to avoid loan defaults. The company is burdened with a debt of Rs 16,000 crore. Reliance Infrastructure, Vedanta’s Sterlite Energy and Lanco Infratech have submitted financial bids for Power Finance Corporation’s mega transmission project that aims to evacuate power from the North-East and eastern states to the northern region. The bids for the project, which is estimated to cost Rs 1,800 crore, are likely to be opened on September 29. IT services provider Wipro Technologies on Thursday said it has signed a co-development agreement with Oracle to develop multiple industry solutions. Under this agreement, Wipro and Oracle would co-develop process solutions for five different industries, communication, retail, consumer products, hi-tech and industrial manufacturing, Wipro said in a statement. Punjab & Sind Bank has appointed IT giant Wipro to implement core banking solutions after Satyam’s new promoter Tech Mahindra voluntarily opted out of the contract. In September 2006, the bank had awarded Satyam Computer Services a Rs 135 crore contract.

( Economic Times )

Morgan Stanley includes Cairn India in its ‘focus’ list

CAIRN INDIA
CMP: RS 261.25
TARGET PRICE: NA
Morgan Stanley has included Cairn India in its ‘focus’ list, saying the stock was a direct play on crude oil prices, which according to the brokerage, are likely to rise. “Cairn India is a direct play on crude oil prices, which our global commodities team believes are likely to rise. Cairn India is a good hedge in our focus list against a sudden spike in oil prices, which can negatively affect the equity market. Cairn has underperformed the market year to date,” said a Morgan Stanley note to client. “Cairn India’s correlation to crude oil prices is among the highest in the region. The company has strong production growth and high reserve potential, and the stock is attractively valued,” the note added.

Traders work out strategies for budget rally

Wealthy stock traders — those who missed out the post-election result rally as well as the handful who tasted success — are trying to ensure they have a winning formula ready to cash in on the post-Budget swing in stock prices. These players are creating trading combinations in equity options that will help them capture extreme movements on either side. Two of the most commonly used options trading strategies by these traders are strangles and straddles, which have been put to good use by foreign institutions. Tempted by the low risk associated with these strategies, more and more wealthy traders are taking to them. The participation of retail investors in such strategies is minuscule, as they seek trading strategies to bet on the market direction rather than implied volatilities (IVs) — the expected volatility in an index or share price — a key aspect of pricing of options premium (when IVs rise, premiums rise, and the converse also holds true).Derivatives analysts have been divided over the use of these options trading strategies to bet on IVs. Some, including brokerage Sharekhan, are recommending buying straddles, which means a trader would bet on a jump in IV ahead of the Budget. In a straddle, the trader buys a call and put option each of same strike and expiry. Abhinay Jain, a derivatives analyst at Sharekhan, recommends buying one Nifty 4300 call and put option each of July expiry, prior to the Budget.
A section of analysts, including Geojit Financial Services, feels buying straddles would not be wise at this juncture, as option premiums are expensive. Higher premiums offer very little scope for any sharp upsides. Geojit is recommending buying strangles, which is again betting that there will be a jump in IVs ahead of the Budget. But, in this strategy, a trader buys an out-of-the-money call and put option. Geojit’s Alex Mathews said if the index is at 4300, the trader can buy a call option at 4700 and a put option at 4000. If the premium charged for the call and put option is Rs 50 each, then the trader will gain only if the index crosses 3900 on the downside and 4800 on the upside. But, analysts advise squaring up the strategies just before the Budget. “Traders need to buy these strategies around five days before the Budget and square it off one hour before the Budget starts, as IVs will start dipping just after the event,” said Geojit Financial Services’ derivatives head, Alex Mathews.As uncertainty recedes after the event, IVs dip. Analysts said the main risk to these strategies is if IVs do not rise ahead of the Budget, traders lose out on the premiums
(source: Economic Times )

Satyam sees six block deals at average Rs 86.84
per share

About 9.87 million shares in Satyam Computer Services changed hands in six block deals on both the stock exchanges at a weighted average of Rs 86.84 on Friday, data on the exchange showed. The shares represent more than 1 percent of the company's outstanding share capital. The details of the buyers and sellers were not immediately available. Mahindra and Mahindra's IT arm Tech Mahindra, which last month acquired 31 per cent stake in the scam-ridden Satyam for Rs 1,756 crore, will begin accepting shares from the public shareholders from tomorrow under its over Rs 1,100 crore open offer for additional 20 per cent stake. L&T and WL Ross Funds, which were bidders for Satyam's 31 per cent stake, have also agreed not to deal in the company's shares for a period of six months starting April 22. Accordingly these entities might not tender their share in the open offer.

( Economic Times )

HOUSING SECTOR BACK IN BUSINESS

Spurred by price corrections, new launches, lowering of interest rates, increase in sales inquiries and, more importantly, the newfound mantra of
‘affordable housing’, the real estate industry has started showing signs of recovery. Industry body Assocham has gone to the extent of saying that the real estate recovery is possible in the coming three months. A recent Assocham Business Barometer (ABB) survey has found that anticipating strong policy measures for the real estate in the forthcoming Budget, embattled realty majors see positive signs of recovery taking place within the next three months as affordable housing projects rev up demand and improved cash flows address their liquidity concerns. As per the survey, a whopping 92% of the respondent developers considered affordable housing as the most dominating segment to shore up the demand in real estate sector. And the policy actions supplementing the robust demand in the housing sector are likely to hold the key for a speedy recovery phase in the sector. Although the findings of this survey may seem to be too optimistic, particularly in view of the prolonged slowdown in the industry, but taking the current positive signs in the property market
into account, both industry majors as well as experts feel the real estate recovery is not a distant dream. And they have ample reasons to believe this. Firstly, after a gap of more than a year, some real ‘actions’ are being witnessed in the realty market, including the high-profile launches of some major projects coupled with increased sales inquiries. Along with that, some realty majors are also said to have recorded an overwhelming response for their upcoming projects. For instance, the Jaypee group claims to have booked all the 3300 apartments
of Jaypee Greens Aman, its new residential project in Noida, within 24 hours of their launch, while Capital Greens, DLF’s first residential project in Delhi, is claimed to have showed bookings of 1,400 flats on the first day itself. Such instances only prove that buyers and strategic investors are once again warming up to the sector, though in a restricted manner. Secondly, the Indian economy recorded a better-than-expected growth rate of 6.7% in 2008-09. The GDP growth rate, clocked in tumultuous times of global financial crisis, lends credibility to the presence of real domestic demand and consumption continuing to fuel the economy, though albeit at a reduced growth rate

IIP for April rises to 1.4%, adds to revival signs
India's industrial output rose in April, beating forecasts for a fall, driven by a pick-up in domestic demand that analysts said
confirmed nascent signs of recovery and an end to the central bank's rate-cutting cycle. Factory output in April rose 1.4 percent from a year earlier, recovering from a revised fall of 0.8 percent in March and bettering forecasts for a decline of 0.2 percent, adding to signs from China that activity in emerging economies was picking up. "Output growth almost certainly bottomed on a year-on-year basis in March and we are looking for a healthy upward trend to develop from here," HSBC economist Robert Prior-Wandesforde said. "It also fits in with our theory that the rebound in industrial production is due to domestic demand, the same case as with China," he said. Figures from China showed factory output growth rebounded in May alongside stronger expansion in credit and consumer spending, adding to hopes it can lead a global revival. Manufacturing output, which accounts for 79 percent of India's industrial production, rose an annual 0.7 percent in the first month of the 2009/10 fiscal year. The benchmark 10-year bond yield rose 6 basis points to a two-month high 6.94 percent on the data, which was seen confirming an end to the central bank's aggressive rate cuts since last October

( Economic Times )

Sensex, Nifty hit 10-month highs as bourses progress rapidly

Indian Market progressed rapidly with key indices -- Sensex and Nifty -- hitting nearly ten-month highs as investors were heartened by new
Government's economic agenda, unveiled by President Pratibha Patil in the week under review. The markets achieved new highs in sustained volatility and the Sensex closed past the 15,000-psychological level for the first time since September 2, 2008
European shares rose on Friday, with Rio Tinto leading miners higher after scrapping a planned tie-up with Chinalco, and energy companies rising on higher crude prices. Key benchmark indices indices in France, Germany and UK rose by between 0.54% to 1.58%.
. Asian shares rose on Friday as hopes for a global economic recovery drove up appetite for riskier assets, but traders were cautious ahead of U.S. monthly job data. Key benchmark indices in Hong Kong, Japan, South Korea, Singapore rose by between 0.96% to 1.42%. Key indices in Taiwan and China fell by between 0.28% to 0.48%.
U.S. nonfarm payrolls data due later in the day is expected to show employers cut 520,000 jobs in May 2009, lower than 539,000 in April 2009, and the unemployment rate is forecast to rise to 9.2 % from 8.9 % in April 2009.
Trading in the US index futures indicated Dow could rise 19 points at the opening bell today 5 June 2009.

India's largest software services exporter by sales TCS rose 1.93%.
Cement stocks rose on posting healthy growth in shipments in the month of May 2009. India Cements, Grasim Industries, ACC, Ambuja Cements rose by between 0.68% to 6.06%.
Some capital goods stocks rose on hopes the UPA government's aim to revive economic growth would spur orders. Larsen & Toubro, Bharat Heavy Electricals, Crompton Greaves, Siemens, Thermax, Praj Industries rose by between 0.78% to 5.3%.
Auto stocks rose on posting good monthly sales figures in the month of May 2009. Tata Motors, Mahindra & Mahindra, Bajaj Auto, Maruti Suzuki India and Hero Honda Motors rose by between 0.73% to 5.64%.
Healthcare stocks rose on hopes newly elected UPA government will give primary importance to healthcare segment and health of citizens. Ranbaxy Laboratories, Dr Reddy's Laboratories, Biocon, Wochardt, Pfizer rose by between 0.41% to 6.22%.
Telecom stocks rose on hopes government may speed up the auction process for the spectrum allocation of third generation WiMax services and stress on rural telephony. Idea Cellular and Bharti Airtel rose by between 1.56% to 1.59%. Reliance Communications fell 0.98%.
Metal stocks as Copper rose in London, heading for a third straight weekly gain, on speculation that the pace of job cuts slowed in the U.S., adding to indications that the worst of the economic slump may be past. Steel Authority of India, National Aluminum Company, Hindalco Industries and Sterlite Industries rose by between 0.77% to 3.39%.
Hindustan Zinc rose 0.05% on raising zinc and lead prices.
Sugar stocks rose on hopes of a firm sugar prices on fall in output. Dhampur Sugar, Shree Renuka Sugars and Bajaj Hindustan rose by between 2.74% to 8.92%.
Shares of multiplex cinema operators rose on reports talks between Bollywood producers and multiplex owners came to an end as the two parties reached a revenue sharing deal. Cinemax India, Adlabs Films, PVR, Inox Leisure, Pyramid Saimira, and Fame India rose by between 0.95% to 5%.
Cals Refineries clocked the highest volume of 8.61 crore shares on BSE. Jaiprakash Associates (3.2 crore shares), Unitech (3.05 crore shares), Satyam computer Services (2.65 crore shares) and Ispat Industries (2.26 crore shares) were the other volume toppers in that order.
Jaiprkash Hydro Power clocked the highest turnover of Rs 308.19 crore on BSE. Unitech (Rs 298.34 crore), Suzlon Energy (Rs 292.50 crore), Reliance Capital (Rs 274.32 crore) and Reliance Industries (Rs 217.99 crore) were the other turnover toppers in that order.
Sensex settles above 15,000 level; at nine-month

( 5 th June 2009 /Economic Times & other leading News channels)

PM hints at PSU disinvestment in Budget 2009-10
Prime Minister Manmohan Singh indicated that the full Budget for 2009-10 may announce a disinvestment of government stake in public
Fiscal prudence and disinvestment of public sector units -- all these issues will be tackled by the Finance Minister in the Budget," Singh told reporters after the second round of swearing in of Union Ministers at Rashtrapati Bhawan. The Prime Minister said economic growth would not come at the cost of fiscal prudence. "We would ensure economic growth momentum but at the same time fiscal prudence will be kept in mind," he said. A host of companies waiting for the government nod for disinvestment include Bharat Sanchar Nigam Ltd (BSNL), railway consultancy firm RITES, National Aviation Company, and Ircon. The government has already cleared the disinvestment of NHPC and Oil India but could not tap the capital market due to the prevalent negative sentiment. Fund mobilisation by the government by way of initial public offers (IPOs) declined in 2008. There was only one PSU IPO, which was that of Rural Electrification Corporation, worth Rs 1,421 crore. In 2007, there were four PSU IPOs, including those of Power Grid Corporation and Power Finance
Corporation, worth Rs 5,580 crore. Finance Minister Pranab Mukherjee had yesterday said he will present the full Budget for 2009-10 in the first week of July. Listing the concerns and constraints being faced by the economy, he had said there is no alternative to boosting growth in tandem with employment generation, for which the government is willing to increase its borrowing. "Let me say unambiguously that we are committed to restoring growth and employment and that would not (be) possible without increased spending funded by incremental borrowing. This would need to be further continued in 2009-10. "However, we are equally committed to the process of fiscal consolidation over a period of, say, 2 to 3 years," he said, exuding confidence that an early return to recent growth performance would help attain fiscal prudence. On the stimulus package, Mukherjee had said the government is assessing the impact of three packages, announced in December, January and in the interim Budget, in boosting growth. The government has cut excise duty by six per cent and service tax by two per cent, in addition to announcing sector-specific measures to arrest the impact of the global financial meltdown on the Indian economy. However, the economy continued to witness a slowdown with industrial production figures in March showing a contraction of 2.3 per cent and exports falling since October
( Economic Times dt. 28 May 2009)

GVK Oil & Gas Ltd, a subsidiary GVK Power & Infrastructure Ltd has signed production sharing contract with the Ministry of Petroleum and Natural Gas, Government of India for offshore deep water blocks as a member of the Consortium of BHP Billiton Petroleum International Pty Ltd and GVK Oil & Gas Ltd

Wall St rallies on bank confidence, jobs data

US stocks rose on Friday as results of bank stress tests fueled hopes that the worst is over for the financial sector, and news of fewer-than-expected April job cuts suggested the economic slump is moderating

United Spirits, Diageo talks fail
Investers dumped shares of United Spirits after reports that Diageo’s talks to buy stake in the alcohol maker have hit a roadblock as the
two sides have not been able to agree on details. Diageo, the world's largest alcoholic drinks group, said in November it was considering a collaboration with United Spirits. In February, United Spirits said it was willing to offer a stake of more than 15 percent and board representation to Diageo. At 11:20 am, shares of the company fell 6.91 per cent to Rs 665 on the BSE following the news

Federal Bank Results Good

Federal Bank Ltd has announced the Unaudited results for the quarter ended December 31, 2008:The results for the Quarter ended December 31, 2008The Bank has posted a net profit of Rs 2038.90 million for the quarter ended December 31, 2008 as compared to Rs 1029.20 million for the quarter ended December 31, 2007. Total Income has increased from Rs 7336.10 million for the quarter ended December 31, 2007 to Rs 10412.30 million for the quarter ended December 31, 2008.
The merger Scheme of the Bank with Cathelic Syrian Bank is in final stage. Sources now expect that the merger to be a reality shortly

Market ends strong; Nifty eyes 3500
The Indian stock indices ended Wednesday’s trade on a strong note. Market sentiment got a boost from gains in Europe. Traders also sought
Cashing in on your moneyKnow about stock arbitrageBetter returns: Book capital losses Plan long term portfolioto settle positions in view of April F&O series expiry and the long weekend. The Nifty ended the day at provisional 3480.00, higher by 117.65 points or 3.50 per cent from the previous close. The NSE benchmark recorded a high of 3486.40 recovering from an early low of 3366.70. The Sensex closed the day at provisional 11,414.96, higher by 413.21 points or 3.76 per cent from Tuesday’s close. The 30-share index moved between 11,430.25 and 11,091.56 during the day. The top Nifty gainers included ICICI Bank, Sterlite Industries
, Tata Power, Reliance Capital, Suzlon, Siemens, Hero Honda. The only losers among the Nifty 50 stocks were Reliance Power, Nalco, Idea Cellular and Ambuja Cements. Banking and IT stocks led the rally while healthcare stocks posted marginal gains.

SENSEX AT HIGH
Tracking volatile cues from across the globe and ahead of F&O expiry next week, Indian stocks are likely to fluctuate on Friday.
Nifty trading 7 points lower also indicates bearish sentiments. Also, on the F&O front, players have bought 3300 put indicating uncertain direction in the market. However, there are reasons for optimism which may help Nifty end in green. Firstly, Nifty spot closed above its 200-DMA which is a positive sign. Foreign institutional investors turned buyers in index futures and spot segment which is likely to lend good support to Nifty in case of any fall. Nifty futures once again ended in premium on the back of short covering Thursday. There was significant covering of short calls at 3400-3500, suggesting Nifty may move towards 3500 level.
( Economic Times dt.24.4.09)

Nifty near day’s high
Indian indices picked up momentum following after sentiments turned bullish with a strong opening of European markets. Rate sensitives like
realty and banks lead the rally while IT was space was subdued on account of profit booking.
At 2:10 pm, National Stock Exchange’s Nifty was at 3482.35, up 58.65 points or 1.71 per cent. The broader index touched an intra-day high of 3483.25 and low of 3402.90.

Stocks rise as US data stokes hopes
Global equities rose on Thursday in light trading ahead of the Easter holiday weekend as investors sought further signs of optimism in the
financial crisis that has hit economies from Australia to Ireland. Japan's larger-than-expected $154 billion plan to jump-start its slowing economy underpinned appetite for equities while better-than-expected figures from the US on its trade deficit and new claims from jobless US workers provided a midday boost.

BOOM IN DALAL STREET
SENSEX CAN TARGET 11310 SOON WITH RELIANCE, AXISBANK, M&M, LT, TATASTEEL, ABB, SIEMENS, REL.INFRA IN FORNTLINE.... IRB, EXIDE, IDFC, GTOFFSHORE, MUNDRAPORT CAN BE GOOD PICK

World markets surge as US data boost recovery hope
World stock markets soared on Thursday, with Hong Kong's benchmark vaulting more than 7 percent, as stronger-than-expected US economic
figures boosted confidence that the world's largest economy is on the mend. A mood of optimism also pervaded the markets as leaders of the world's 20 biggest developed and developing countries met to find a way out of the economic crisis. Huge gains in Asia and a strong open in Europe followed an overnight surge on Wall Street and extended last month's rebound amid tentative signs of stabilization in the hard-hit global economy
and banking industry. In European morning trading, Britain's FTSE 100 rose 3 percent to 4,072.46, Germany's DAX surged 4.6 percent to 4,310.82 and France's CAC 40 jumped 4 percent to 2,951.75. ``There's some renewed optimism around the G-20 meeting today and the possibility there might be something structured coming out of it,'' said Richard Hunter, analyst at Hargreaves Lansdown Stockbrokers. President Barack Obama and the summit host, British Prime Minister Gordon Brown, have expressed confidence that world leaders will come up with a strong agreement to address financial regulation, growth, and troubled banks. But French President Nicolas Sarkozy and German Chancellor Angela Merkel have refused calls for more government spending, and said the meeting must take concrete steps on tougher financial regulation. Investors in Europe were also awaiting a key interest rate decision from the European Central Bank
at 1145 GMT. The bank is expected to cut its benchmark interest rate by a quarter or a half percentage point to a record low as more grim economic news emerges from the euro zone, the 16 countries that share the euro. With many economists predicting the bank won't cut further after Thursday, interest will focus on what President Jean-Claude Trichet says about other measures it could take if the economy needs more of a push. In Europe and Asia, financial and auto stocks charged higher after US home sales, manufacturing and auto data suggested the US recession may be moving closer to a bottom. Car makers BMW, DaimlerChrysler and Renault jumped 9.6 percent, 9.1 percent and 8 percent, and tire maker Michelin added 10.9 percent. In Asia, Toyota Motor Corp. and Nissan Motor Co. strengthened 5.5 percent and 14 percent on US auto figures that were less dismal than feared. Investors were encouraged after US car sales jumped by nearly 25 percent last month from February, beating the typical rise and underpinning hopes of a turnaround in the American auto market. A rebound in pending US home sales in February from a record low, as well as improving manufacturing activity, added to a growing belief the most severe global downturn in decades may be moving close to a bottom.
(Economic Times dt. 3 April 2009)

Economy needs more stimulus in 2009-10: Ahluwalia

The Indian economy needs more stimulus in the next fiscal to counter the impact of global economic slowdown, Planning Commission Deputy
Chairman Montek Singh Ahluwalia said. "We need a little more stimulus in 2009-10. But there are certain issues which have to be taken up," Ahluwalia said on the sidelines of a function here. About the GDP growth projection by the Planning Commission, Ahluwalia said multiple models have been used to derive the figures and have been suggested to the Prime Minister. "We have sent a note to the Prime Minister. Planning Commission dosen't have any projection. What we said to the Prime Minister-- we used multiple models to know what is likely to be growth rate next year," he said. "There is certain base level of growth which we thought was around 9 per cent. Then you knock off from the growth the affects of shock. Then we add to it the affect of the positive stimuli... So there are different numbers depending on the affects of shock and stimulus measures," he added. Earlier, Ahluwalia projected a growth rate slightly less than 7 per cent in the current fiscal and the next fiscal.

FIIs buy Rs 80 crore stocks
Foreign institutional investors (FIIs) on Friday were the net purchaser of Indian
stocks worth Rs 80.43 crore in a flat market, where the
BSE's benchmark index gained a nominal 0.45 per cent to close at 10,048.49 points. FIIs were the gross purchaser of shares worth Rs 1,906.29 crore, while they sold equities valued at Rs 1,825.86 crore resulting in a net investment of equities worth Rs 80.43 crore, as per the provisional data available with the Bombay Stock Exchange. On Thursday, FIIs were the net seller of equities worth Rs 297.60 crore, according to the latest data available with the market regulator Securities and Exchange Board of India (SEBI). As per the BSE data, in today's market, domestic institutional investors (DIIs) were the net inventors of Rs 42.98 crore in shares.
Stocks like Tata Motors, Tata Steel, Reliance Industries, HDIL , Reliance Petro
are in good demand

2009 very dangerous for economy
World Bank president Robert Zoellick said on Friday that 2009 was turning into "a very dangerous year" for the global economy.
Financial crisisCompetitive economiesGhosts of 1929US mortgage crisisFive facts on stock falls"2009 is shaping up to be a very dangerous year," he told reporters ahead of Saturday's G20 finance ministers meeting on how best to tackle the worst economic slowdown in decades. "I believe it will be a positive sign if the G20 supports extended IMF resources, condemns protectionism and supports practical solutions," Zoellick said. The G20 includes the Group of Seven industrialised countries -- Britain, Canada, France, Germany, Italy, Japan and the United States -- the European Union and leading developing nations including Brazil, China and India. Finance ministers and central bank leaders from the United States and Europe go into Saturday's meeting deeply divided on whether stimulus packages or tighter regulation of the finance sector should be the way forward. Saturday's gathering in Horsham, south-west of London, is expected to lay the groundwork for a G20 heads of state summit on April 2" for the global economy.
Financial crisisCompetitive economiesGhosts of 1929US mortgage crisisFive facts on stock falls"2009 is shaping up to be a very dangerous year," he told reporters ahead of Saturday's G20 finance ministers meeting on how best to tackle the worst economic slowdown in decades. "I believe it will be a positive sign if the G20 supports extended IMF resources, condemns protectionism and supports practical solutions," Zoellick said. The G20 includes the Group of Seven industrialised countries -- Britain, Canada, France, Germany, Italy, Japan and the United States -- the European Union and leading developing nations including Brazil, China and India. Finance ministers and central bank leaders from the United States and Europe go into Saturday's meeting deeply divided on whether stimulus packages or tighter regulation of the finance sector should be the way forward. Saturday's gathering in Horsham, south-west of London, is expected to lay the groundwork for a G20 heads of state summit on April 2

SATHYAM BOARD DISBANDED

The Government of India on Friday disbanded the board of Satyam Computer Services, cancelled its meeting scheduled for Saturday and announced that a 10-member board of new directors would be nominated soon.
The erstwhile board of Satyam was to meet in Hyderabad on January 10 to discuss the crisis in the wake of the Rs. 7,100-crore accounting fraud, which its founder-chairman B. Ramalinga Raju owned up to before quitting his post.
Five other directors of Satyam had also put in their papers, leaving the strength of the board at just three.

SATHYAM EFFECT

The Bombay Stock Exchange sensitive index (Sensex) suffered most in the new year on Wednesday by losing 749 points on panic selling by funds after Satyam Computer said its profit had been inflated for years and rising concerns of dim third-quarter earnings of blue-chip companies.
The Sensex, which had gained over 688 points in the last four sessions of 2009, tumbled below the crucial 10000- level, losing 749.05 points to close at 9586.88 against 10335.93 on Tuesday. It touched a low of 9510.15 and a high of 10469.72, showing a wide fluctuation of nearly 960 points.
Satyam Computer shares crashed by Rs. 139.15 or 77.69 per cent to close at Rs. 39.95, after the Chairman announced that the company had falsified accounts and assets for several years.
The Sensex recorded the biggest single-day loss in the past two months, after Satyam Computer Services, the country’s fourth-largest software developer, plunged around 80 per cent, the highest since getting listed in 1992.

Mkts cheer, Sensex adds over 250 pts
Sensex rose 1 per cent early on Thursday as trading got underway for the new year.
The BSE benchmark Sensex provisionally rose 2.74 per cent on the first day of the new year after slumping by more than half in 2008, with lower Inflation raising expectations for interest rate cuts by the central bank.
Reliance Industries and ICICI Bank led the gains.
The 30-share main BSE index provisionally closed 264.03 points higher at 9,911.34 on Thursday, with all but two of its components rising. The benchmark had plummeted 52.4 per cent last year.
The 50-share NSE index provisionally rose 2.46 per cent to 3,032.05.