Weekend shopping or window shopping?

Christmas is the season when you buy this year's gifts with next year's money

It's not December as yet but Christmas shopping in the US commences with Black Friday today when huge discounts are offered. Will the bulls start their shopping spree again today? The swinging bounce back late on Thursday may just be an indication from bulls that they intend to hit back.

Despite some weakness in most counters, there are not many stocks which are available at discount prices. For some time, we may see very select counters moving and thereby providing a distorted image of the main indices. With US markets closed and some Asian Markets doing well, it augurs for a good start. Some fresh buying, some cutting of short positions and select propping up of key index heavyweights may make it appear that the bulls have arrived. How long they reign remains to be seen in the coming days. Buying may come in but confidence is lacking. Stay less leveraged and buy only if you have the cash.

Domestic institutions, sitting on fairly large amount of cash were net buyers for Rs13.41bn as they did some shopping at lower levels. While FIIs are selling on some counters they are probably simultaneously getting into other counters. We never really understand how much to make of the FII figures that we read about.

Japan's markets are closed today for a public holiday. US markets were shut yesterday for Thanksgiving. Tech stocks send the The MSCI Asia Pacific excluding Japan Index up by 0.2% to 506.48 in early hours. Stocks in Europe and Latin America were back in the black.

The dollar dropped below 108 yen for the first time since 2005 and fell to a record low against the euro on speculation deepening U.S. credit-market losses will prompt the Federal Reserve to cut interest rates.

The rupee rose on speculation an advance in Asian stocks will give investors the confidence to put money back into the region. The rupee strengthened 0.1% to 39.495 against the dollar in early hours

Siemens could be in action after it announced a 126% growth in net profits for the quarter ended September 30, 2007. The company declared a 1:1 bonus and 240 per cent dividend after posting the best ever financial performance. This was of course aided by other income of forex gains and sale of units. This is Siemens' first bonus offer in two decades after the 1:4 payout in 1987.

Fortis Healthcare and DLF are close to signing an agreement for setting up 15 hospitals over the next five years in townships of the latter.

US-based Burger King likely to tie-up with DLF in a 51:49 JV to enter the Indian market.

Wipro plans to set up a global IT services centre in Sydney, Australia, which would provide consulting, software development and testing services to local and global clients.

Lyka Labs plans preferential allotment up to 3.65mn shares for cash at Rs55/share to foreign investors.

Aurbindo Pharma has received approvals from the US FDA for its five products since October 2007.

Hindustan Copper has earmarked Rs9bn for setting-up two greenfield copper mines in Jharkhand and Rajasthan.

About 8mn mobile users were added in October 2007 while fixed-line subscribers declined over previous month. Total subscriber base reached 256.6mn breaching the 250mn December 2007 target of the Government.

Reports say India poised to become a net importer of steel in the current fiscal. During April-October 2007, country imported 3.6mn tons of steel an increase of 79% yoy. India steel production is expected to touch 124 mn tons by 2011-12 beating an earlier estimate of 80 mn tons by a wide margin.

India Railways freight earnings for October 2007 grew 18% yoy to Rs40bn.

Volatility to continue!

A see-saw trading session ended slightly lower as markets witnessed alternate bouts of buying and selling. Markets extended their losing streak to the sixth straight trading session. Bulls were unable to capitalize on the positive start as bears took over immediately dominating for the rest of the trading session.

Weak cues from the international markets coupled with selling in the index heavyweights like L&T, ONGC and REL dragged the benchmark Sensex to hit a low of 18,182. However, late buying in the Banking and the Auto stocks lifted the key indices from their low finally aiding the markets to close on a flat note with marginal losses.

Among the sectoral indices; BSE Bankex index and BSE Auto index were the leading gainers, up 1.75% and 0.2% respectively. While, BSE Realty index was the top loser (down 5%), BSE Capital Good index (down 2.5%) and BSE Power index (down 2.2%).

Even the broader indices i.e. BSE Mid-Cap and the BSE Small-Cap index were down over 1.5% each.

Finally, 30-share Sensex lost 76 points to close at 18,526 and Nifty closed 41 points lower at 5,519.

PNB surged by over 3.5% to Rs573 after the company announced that Gilts secures an approval to work out scheme of merger with Punjab National Bank. The scrip touched an intra-day high of Rs600 and a low of Rs540 and recorded volumes of over 7,00,000 shares on NSE.

BHEL gained 0.5% to Rs2493 after the company declared that they secured Rs21.08bn contract for installing 2 sets of 525MW. The scrip touched an intra-day high of Rs2566 and a low of Rs2385 and recorded volumes of over 12,00,000 shares on NSE.

Hindustan Zinc slipped 2.5% to Rs715 after the company announced that it lowered lead prices to Rs1,35,200 per ton. The scrip touched an intra-day high of Rs733 and a low of Rs701 and recorded volumes of over 57,000 shares on NSE.

Puravankara slipped 2% to Rs390. The company announced that they won 30-acre Hyderabad land deal for Rs7bn. The scrip touched an intra-day high of Rs450 and a low of Rs381 and recorded volumes of over 1,00,000 shares on NSE.

Wipro gained 0.5% to Rs437 after the company announced that it joined hands with GE Fanuc technologies to work together globally to provide solutions for consumer packaged goods and pharmaceutical industry. The scrip touched an intra-day high of Rs440 and a low of Rs429 and recorded volumes of over 8,00,000 shares on NSE.

Sasken Communication lost 2% to Rs264. Reports stated that the company would set up a wholly-owned subsidiary Sasken Japan KK to focus on Japanese market. The scrip touched an intra-day high of Rs278 and a low of Rs262 and recorded volumes of over 39,000 shares on NSE.

Ranbaxy Laboratories slipped 1.3% to Rs392. Reports stated that the company reached an out-of-court settlement to market innovator drug worth over US$1bn in the US. The scrip touched an intra-day high of Rs405 and a low of Rs391 and recorded volumes of over 5,00,000 shares on NSE.

Banking stocks gained momentum in the later half of the session on back of fresh buying. The index heavyweights SBI was up by over 4% to Rs2249, ICICI Bank gained 3.5% to Rs1145 and HDFC Bank added 0.8% to Rs1591. PNB, Andhra Bank and Bank of Baroda were the major gainer among the Mid-Cap stocks.

The Auto stocks also geared up towards the end as the BSE Auto index ended 0.3% higher. Maruti rose over 1.2% to Rs965, M&M was up by over 1.7% to Rs710 and Bajaj Auto advanced 2% to Rs2472.

Upper Circuit:

PNB Gilts, Kothari Products, GTC Industries, Xl Tele, Vipul Ltd, Temptation Foods

Lower Circuit:

HFCL, Bombay Burmah, MMTC, National Fertilizer, Alphageo India, TCI Industries, Marathon Nextgen

Stocks in News:

BHEL has won Rs21bn order for supplying steam generators and turbines for the upcoming Maithon Right Bank Thermal Power Project in Jharkhand.

Nalco plans a follow-on issue including a rights issue to part fund investments of Rs200bn for setting up two greenfield projects in Andhra Pradesh and Orissa.

Hindustan Copper is scouting for overseas partners for setting up two mining ventures.

Tata gets Jaguar-Land Rover's employees union support for its bid.

Soros' Quantum Fund has picked up 10% stake in Future Capital Holdings (FCH).

US-based PE fund, Wasserstein Fund has picked up 12% equity stake in Euro ceramics for Rs600mn.

DCM Shriram promoters hike warrant price to Rs90/share for allotment to them.

UP Government has signed a MoU with NTPC for setting up a joint venture 1,320 MW thermal power project in Allahabad.

GAIL is in discussions with Russian gas firm Itera for setting-up city gas distribution network in Moscow to retail CNG.

Cadila Healthcare is planning acquisitions of brands in the domestic skin-care segment.

Reliance Fresh plans to re-enter the UP market under the new format for home solutions.

PVR plans to invest Rs3-4bn for opening up 250 new screens by 2010.

Nalco likely to get a bauxite mining lease in Andhra Pradesh.

FII Investment Trend:

FIIs were net sellers of Rs24.8bn (provisional) in the cash segment on Thursday while the local institutions pumped in Rs13.41bn.

In the F&O segment, FIIs were net sellers of Rs2.4bn.

Bulk Deals

Merrill Lynch bought Lakshmi overseas while, The Master Trust bank of Japan sold it. Kotak Mahindra Bank UK purchased Marg Construction, Citigroup Global offloaded Oswal Chemical and Fertilizer andICICI Bank sold Welspun India