Take your time!

Anywhere is walking distance, if you've got the time.

Although the market continued its recent slide into a fifth successive day, the late spurt could spell some hope for the bulls. Take your time in getting in. At the same time, be quick to make your exits when profits are on your side. Markets in Asia have bounced back despite another triple-digit fall in the Dow overnight and steep losses in European markets. That's encouraging. A bounce back does look to be a remote possibility today after five straight days of decline. As always, it remains to be seen whether the same will be sustained for long.

On the whole, the market is likely to remain sideways and rangebound, as it tries to break free. Persistent concerns over the western financial sector, coupled with fears of recession in key economies and local economic worries will continue to check gains. What may also be disconcerting is that the FIIs remain net sellers. Adopt a cautious approach and remain stock specific.

FIIs were net sellers to the tune of Rs7.16bn (provisional) in the cash segment on Tuesday. Local institutions were net buyers of Rs145.6mn. In the F&O segment, the foreign funds were net sellers of Rs9.75bn.

HEG could gain as the company's Board has approved a share buy back at up to Rs350 per share. ABG Shipyard might attract attention as it is planning a new shipyard in Gujarat to meet growing demand. Kirloskar Electric could rise amid reports of an acquisition.

Dishman Pharma is another stock to watch out for as it is reportedly close to signing contracts with US- based Merck and AstraZeneca for supplying bulk drugs. Jindal Steel may also be in focus as it is reportedly close to acquiring a state-owned coal mine in Mozambique.

Idea Cellular could hog the limelight as it is set to announce its much-delayed entry into the lucrative Mumbai circle.

Asian markets have rebounded after a weak opening. Hong Kong's Hang Seng Index rose 1.4% to 20,765.83 while the Shanghai Composite extended its gains, and was last up 4% at 2,437.30. The Nikkei in Tokyo was last down only 0.3% at 12,828.

US stocks continued their southward journey. Oil prices rose, retailers' earnings fell short of expectations and government reports showed that homebuilding activity remains under pressure while inflation is on the rise. A weaker dollar and more worries surrounding the financial sector dampened the mood.

The S&P 500 lost 11.91 points, or 0.9%, to 1,266.69. The Dow Jones Industrial Average declined 130.84 points, or 1.1%, to 11,348.55. The Nasdaq Composite Index slipped 32.62 points, or 1.4%, to 2,384.36.

Market breadth was negative though trading volume remained light. More than three stocks dropped for each that rose on the New York Stock Exchange.

Financial shares led the way down among the Dow's blue chips. But declines were broad based, with 25 out of 30 Dow components ending lower.

Concerns about the health of the housing sector and the ongoing credit crisis escalated amid reports that the US government may have to bail out mortgage giants Fannie Mae and Freddie Mac.

The Wall Street Journal reported that Lehman Brothers has approached a number of potential bidders about selling part of its investment management business. Its shares slid over 13%. Another report said the Wall Street firm will report bigger writedowns than originally thought. JP Morgan forecasts it at about $4bn.

A variety of retail chain stores issued downbeat results, as consumers continued to cut back spending amid a slowing economy. Home Depot shares fell 3.7% after the home improvement retailer reported a profit drop for the second quarter.

Both housing starts and building permits - a measure of builder confidence - fell in July to levels not seen since the 1991 recession as the housing market fallout continued.

The Producer Price Index (PPI), a measure of inflation at the wholesale level, rose 1.2% in July, double what economists were expecting.

Crude oil futures also reversed course to finish higher, adding to existing pressure on consumer-related stocks. Crude for September delivery gained $1.66, or 1.5%, to end at $114.53 a barrel in New York. Oil prices had ended the previous session at a 3-1/2 month low.

Meanwhile, the dollar continued to edge slightly lower. The dollar fell against the euro and the yen. In the bond market, Treasury prices fell, lifting the yield on the benchmark 10-year note to 3.84% from 3.81%. COMEX gold for October delivery rose $11.20 to $813 an ounce.

After the close, Hewlett-Packard reported higher quarterly sales and earnings that topped forecasts, sending the stock 1% higher in extended-hours trading. The company also forecast that fiscal fourth-quarter earnings would top current forecasts.

Wednesday brings little in the way of quarterly earnings or economic reports. The weekly oil inventories report will also be in focus.

Financials led a sharp drop in European stocks. The pan-European Dow Jones Stoxx 600 index dropped 2.5% to 279.71, finishing at its worst levels in two weeks. UK's FTSE 100 dropped 2.4% to 5,320.40, while Germany's DAX 30 lost 2.3% to 6,282.43 and the French CAC-40 fell 2.6% to 4,332.79.

An ex-chief economist of the International Monetary Fund (IMF) predicted that a major bank may go bankrupt in the next few months.

In the emerging markets, Brazil's Bovespa rose 0.6% to 53,638 while Mexico's IPC shed 0. 2% to 26,732. The RTS index in Russia plunged 5.2% to 1685 and the ISE National-30 index in Turkey was down 3.6% at 50,064.

Market may extend losses

Indian markets extended losses to fifth straight trading session on Tuesday. Markets traded in the red throughout the day on the back of sustained selling and weak global cues.

However, key indices staged a strong comeback in the last hour of the trading session led by gains in the Banking, Power and Pharma stocks. Finally, the benchmark Sensex slipped 101 points to close at 14,543 and Nifty ended 24 points lower to close at 4,368.

Air Deccan surged by over 3.5% to Rs87 after media reports stated that the company would launch international operations and are launching 7 flights from Bangalore to London. The scrip touched an intra-day high of Rs88 and a low of Rs82 and recorded volumes of over 2,00,000 shares on BSE.

Asian Oilfield slipped 3.2% to Rs124. The company announced AOSL Petroleum PTE Ltd, its 100% subsidiary in Singapore has made an investment into Ensearch Petroleum Ltd. The scrip touched an intra-day high of Rs133 and a low of Rs122 and recorded volumes of over 14,000 shares on BSE.

Unichem Laboratories declined 1.5% to Rs191. The company announced that it received approval from US Food & Drug Administration (FDA) for Hydrochlorothiazide tablets in the strengths of 25 mg and 50 mg. The scrip touched an intra-day high of Rs197 and a low of Rs190 and recorded volumes of over 12,000 shares on BSE.

Balaji Telefilms ended 2% lower at Rs169. The company announced that the board of directors of the company approved execution of an agreement by the company with Star Group, Asian Broadcasting FZ-LLC., and the promoters of the Company, Mr. Jeetendra Kapoor, Ms. Shobha Kapoor, Ms. Ekta Kapoor and Mr. Tusshar Kapoor whereby the parties have agreed to terminate in the manner specified in the agreement, the various agreements entered into between the parties inter-se in August 2004 in relation to the acquisition by ABF of a total of 25.99% of the share capital in the company.

The Promoters are entitled to purchase, on their own account and / or through third, party(ies) nominated by them, the entire shareholding held by ABF in the company for an average price of Rs190/- per share, within, a period not exceeding 240 days. The scrip touched an intra-day high of Rs184 and a low of Rs167 and recorded volumes of over 13,00,000 shares on BSE.

IVRCL Infrastructures declined by 3% to Rs318. The company announced that it secured Pranahitha-Chevella Lift Irrigation Project worth Rs7.15bn - Package No.9 work in Karimnagar District, Andhra Pradesh involving "Investigation, Designs and execution of Lift Irrigation Scheme for drawal and lifting of 6.00 TMC of water in 120 days from Mid Manair Reservoir to Upper Manair Reservoir in Karimnagar District by water conveyor system on EPC Turnkey Basis".

The scrip touched an intra-day high of Rs331 and a low of Rs316 and recorded volumes of over 2,00,000 shares on BSE.

Shares of Adhunik Metaliks ended marginally higher by 0.5% to Rs119 after media reports stated that the company would raise Rs2.5-Rs3.5bn via IPO of its mineral arm. The scrip touched an intra-day high of Rs123 and a low of Rs118 and recorded volumes of over 2,00,000 shares on BSE.

Shares of McNally Bharat surged by over 4% to Rs130 after the company announced that it received Orders in the Products Division

First order is from Siemens VAI, Kolkata for Structural Fabrication at SAIL Plant at Burnpur valued at Rs377.8mn. Followed by another order from Brahmani River Pallets Ltd, Bhubaneswar for 1 no. Rod Mill and 2 nos. Ball Mills valued at Rs154.7mn. The scrip touched an intra-day high of Rs132 and a low of Rs121 and recorded volumes of over 21,000 shares on BSE.

ICICI Bank enters into a US$250mn agreement with Export Import Bank of United States to finance capital goods import of Indian companies from US.

Government is considering a proposal to declare Reliance Industries' sales of fuel domestically as deemed exports. (BS)

BHEL plans to build forging units for nuclear power plants. (DNA)

Power ministry blames BHEL for delay in commissioning of power projects. (ET)

Jindal Steel and Power is close to acquiring a state-owned coal mine in Mozambique for Rs2-2.5bn. (ET)

RCom launches DTH service Big TV. (ET)

Hero Honda hiked prices of vehicles across models by up to Rs1,500. (FE)

L&T is close to buying equity stake in coal mines in Australia and Indonesia. (BL)

IVRCL Infra gets an irrigation project from Andhra Pradesh worth Rs7.15bn. (BS)

IOC, BPCL and HPCL may report losses worth Rs58bn, Rs70bn and Rs55bn in FY09 respectively. (BS)

Indiabulls Financial Services set to sell 35% stake in Comex to HDFC Bank, Yes Bank and India Potash. (BS)

PNB is exiting its mutual fund and primary dealership business. (BS)

Dr Reddy's Lab is set to hive off its skin care business into a new entity called Promius Pharma. (DNA)

Aban Offshore sees US$1.65bn revenues in three years. (DNA)

Allahabad Bank hikes deposit rates by 25bps. (FE)

Oil India plans an IPO in November. (Mint)

General Atlantic may buy around 20% stake in Wockhardt Hospitals. (ET)

Opto Circuits acquires US based Criticare Systems, a non invasive medical device manufacturer for US$70mn. (ET)

Opto Circuits is looking to 2-3 healthcare diagnostics companies in US and Europe. (FE)

Lupin Labs inks marketing deal with US based Forest Labs for its Aerochamber line of products. (ET)

ITC Infotech acquires US based firm Pyxix Solutions for US$25mn in an all cash deal. (ET)

Spanco Telesystems bags Rs700mn contract from Orissa Government for setting up state wide area network. (ET)

Balaji Telefilms has agreed to terminate its agreement with STAR Group. (ET)

Kirloskar Electric is set to buy Germany's Lloyd Dynamowerke & Co, in a deal estimate to be around US$70mn. (ET)

ABG Shipyard to set up a greenfield shipyard in south Gujarat with an investment of Rs12bn. (ET)

Deccan Aviation gets government nod to fly abroad. (BS)

Adhunik Metalik's subsidiary, Orissa Manganese and Minerals to raise Rs3bn via IPO. (BS)

Unichem Labs gets approval from USFDA for blood pressure tablets Hydrochlorothiazide. (BS)

GMR Energy plans to offload 5-10% in its energy business to raise Rs26bn. (BS)

Bajaj Electricals to hike product prices in September. (BS)

Dishman Pharma is close to signing contracts with US based Merck and Astrazeneca for supplying bulk drugs. (DNA)

Mcnally Bharat gets two orders worth Rs532mn. (DNA)

Economy Front page

Government may charge higher diesel prices for industrial users. (ET)

Government has decided to control export of sugar by reintroducing the release order mechanism from October and is also planning to withdraw subsidy on export. (ET)

Fertilizer industry seeks cash subsidy from the government. (BS)

UP government to challenge high court order on sugarcane price. (BS)