Union Budget Highlights - 2008.

1. Dividend Distribution Tax unchanged at 15%.
2. Central Sales Tax cut to 2% from 3% - Positive for Food Processing companies.
3. India to start GST from April 1, 2010.
4. No Change in STT Rates.
5. To withdraw banking cash transaction tax from April 1, 2009.
6. To give 5 Year Tax Holiday for Hotels in some areas.
7. Increase in short term capital gain tax from 10% to 15%.
8. On an income of Rs5 lakhs - savings amount to Rs45,000.
9. To grant 5 year tax holiday for new hospitals to be setup in specified areas - +ve for Apollo Hospital, Fortis etc.
10. Weighted deduction of 125% for R&D – Buy on Ranbaxy Labs and Dr Reddy Labs.
11. Major Income tax Changes - to boost consumer spending Buy Marico and GSK Consumer.
12. No change in corporate tax rate and no change even in surcharge.
13. In case of Women, Exemption limit increased to Rs1,80,000.
14. Senior citizen exemption raised from 1,95,000 to 2,25,000.
15. Proposes to increase personal income tax exemption limit to Rs1,50,000.
16. Minimum relief Rs4000 for every assesse.
17. Excise duty on bulk cement imposed at Rs400/tonne or 14% Ad valorem whichever is higher - Neutral for Cement companies .
18. Customised software under service tax net.
19. Higher excise on packaged software (8% to 12%) - Negative for Software sector.
20. To tax Filter and Non Filter Cigarettes on Par - Marginally negative for ITC.
21. Fall in duty on wireless data cords from 16% to Nil - Positive for Telecom Sector.
22. No change in excise duty structure on Retail Cement.
23. To cut excise duty on all goods in Pharma from 16% to 8% - Positive for Pharma Sector.
24. To cut excise on some papers, paper products.
25. To reduce excise duty on two wheelers from 16% to 12% Buy Bajaj Auto.
26. To reduce excise duty on small cars from 16% to 12% Buy Maruti and Tata Motors.
27. To reduce General CENVAT rate from 16% to 14%.
28. To cut customs duty on crude, unrefined sulphur.
29. To cut project import duty to 5% from 7.5%.
30. Custom Duty reduced to Nil on Steel melting scrap from 5% - Positive for Non Integrated Steel Players .
31. India to cut duty on certan bulk drugs to 5% - Positive for Pharma Sector.
32. Proposes No Change in Peak Customs Duty.
33. Current Tax-GDP ratio at 12.5.
34. Fiscal Deficit to be 2.5% by FY09 - Need only 1 year to eliminate Revenue Deficit.
35. Revenue Deficit to be 1.4% and Fiscal Deficit to be 3.1% of GDP.
36. Planned Expenditure about 34.2% of total expenditure.
37. India to spend Rs 1.05Trn on Defense sector, up 10% - Positive for Defense Companies.
38. Allocation for TUF loan hiked about 20% - +ve for Textile Sector.
39. Thrust on Smart Cards Buy on Bartronics India.
40. Accelerating bidding process for 5 UMPPs - +ve for PFC.
41. Likelky Subvention of agri loans waivers to neutralise impact on banks.
42. Government allocates RS16.8bn for IT Sector Buy on 3i Infotech and TCS.
43. India to spend more on Textile Sector - Buy on Bombay Dyeing and Alok Ind.
44. India to get as much as $8bn from latest Gas, Oil.
45. India to allocate Rs129 bn for highways Buy on HCC,IVRCL.
46. National Fund for Power Transmission and Distribution.
47. To award 4th UMPP shortly - +ve for Power.
48. India to achive power expansion target in 11th plan - +ve for Companies like BHEL.
49. Waiver of previous loans and fresh loans - Positive for Agriculture/ Fertiliser companies .
50. India to spend more on Rural Development and Roads - Positive for Infrastructure sector.
51. Manufacturing slowdown due to rising rates and rupee.
52. Growth in capital goods still high at 20.2%.
53. Savings Rate at 35.6% and Investment Rate at 36.3% by end of 2008.
54. Total value of overdue loans including OTS at Rs60,000cr.
55. Debt Waiver to be completed by June 30 2008 - Farmers to be eligible for fresh loans post waiver.
56. Clarity awaited on details of scheme regarding reimbursement to banks of waiver amounts
    Waiver Amounts to 4% of Total Bank.
57. Scheme of debt waiver of all agri loans upto March 2007 - Negative for Banking Sector.
58. FM eyeing Elections - Slew of populist measures announced.
59. Complete waiver of loans for marginal and small farmers.
60. Government introduces scheme for debt waivers for.
61. FM says fertiliser subsidy to continue.
62. 5 lac hectare increased irrigation potential.
63. India to spend Rs200bn on irrigation-Positive for Finolex Ind and Jain Irrigation.
64. Government to spend additional Rs120bn on 5-Yr plan programs.
65. Government increases thrust on santitation - s Buy Electrosteel Castings.
66. Increase in sanitation allocation positive for DI pipe makers such as Electrosteel castings.
67. Increased allocation to Rajiv Gandhi Drinking water scheme to Rs7300cr from Rs6500cr, beneficial to companies like IVRCL.
68. Increased spending on polio to benefit Panacea Biotech.
69. India to spend Rs120bn on National Rural Health Plan.
70. Education and Health Sector to be twin pillars of growth.
71. 16,534cr allocated for Health Sector an increase of about 15%.
72. Additional allocation for education beneficial for Everonn, Educomp, Core Projects, NIIT etc.
73. India to increase spending on Bharat Nirman plan.
74. Allocation for education to be raised to Rs34,400cr from Rs28,674cr.
75. Allocation for education to be increased by 20%.
76. India to increase Gross Budgetary support in FY09.
77. Agriculture estimates to grow at 2.6% for FY08.
78. FM confident of maintaining 8.8% GDP growth average.
79. FM says agri growth disappointing.

BSE Bulk Deals to Watch - Feb 28, 29 2008

 This data was last updated on Friday, February 29, 2008&nbsp6:24:05 PM
Deal Date Scrip Code Scrip Name Client Name Deal Type * Quantity Price **
29/2/2008 532047 ASIAN FILMS SARFARAZKHAN SARVARKHAN PATHAN S 1352496 0.60
29/2/2008 532903 DHANUSTECH ASHOK COMMERCIAL ENTERPRISES B 100000 233.04
29/2/2008 531314 INTEGRA CAPI SUSHIL KUMAR VOHARA S 72700 4.62
29/2/2008 523062 J J FINANCE SINKI COMMODITIES PVT LTD B 45500 12.26
29/2/2008 523062 J J FINANCE SHYAM SUNDER SADANI S 45500 12.26
29/2/2008 522259 KALIN RAIL N HDFC MUTUAL FUND AC HDFC MIDCAP OPPORTUNITIES FUND B 100000 450.00
29/2/2008 532950 MANJUSHREE N D NISSAR B 276627 48.88
29/2/2008 532950 MANJUSHREE DEEPAK S CHHEDA B 140269 49.00
29/2/2008 532950 MANJUSHREE N D NISSAR S 276627 48.93
29/2/2008 532950 MANJUSHREE DEEPAK S CHHEDA S 140269 49.55
29/2/2008 501477 MULLER & PHI VARUN FINSTOCK PVT. LTD. B 5000 113.50
29/2/2008 501477 MULLER & PHI BHANSALI ASSOCIATES B 5000 113.50
29/2/2008 501477 MULLER & PHI VARUN FINSTOCK PVT. LTD. S 5000 113.50
29/2/2008 501477 MULLER & PHI BHANSALI ASSOCIATES S 5000 113.50
29/2/2008 514328 NACHMO KNITE AMRASHAGUN INVESTMENTS P LTD B 448286 2.15
29/2/2008 514328 NACHMO KNITE VAIKUNTH FINVEST PVT LTD S 228686 2.15
29/2/2008 514328 NACHMO KNITE ARGUS CLOTHING CO. PVT LTD S 221100 2.15
29/2/2008 507813 NAT.OXYGEN RAJIV ARORA B 25146 60.26
29/2/2008 511551 NETWO ST BRO VATICAN COMMERCIAL LTD B 43764 134.27
29/2/2008 530367 NRB BEARING HDFC MIDCAP OPPORTUNITY FUND B 972638 72.24
29/2/2008 530367 NRB BEARING MORGAN STANLEY MAURITIUS CO LTD S 972748 72.20
29/2/2008 526981 SHRI BAJRANG MAHESH MEETAL S 50000 48.30
29/2/2008 522229 TANEJ AERO A CITIGROUP GLOBAL MARKETS MAURITIUS PVT LTD B 150000 180.78
29/2/2008 532948 TULSI EXTRU MANSUKH STOCK BROKERS LTD B 96177 110.00
29/2/2008 532948 TULSI EXTRU MANSUKH STOCK BROKERS LTD S 96177 110.00
28/2/2008 531223 ANJANI SYNTH CHIMANLAL MANEKLAL SEC.PVT.LTD B 67075 63.06
28/2/2008 531223 ANJANI SYNTH CHIMANLAL MANEKLAL SEC.PVT.LTD S 62075 63.43
28/2/2008 531137 GEMSTONE INV BHAVESH PRAKASH PABARI B 299161 27.55
28/2/2008 531137 GEMSTONE INV PREM MOHANLAL PARIKH S 201750 27.64
28/2/2008 531137 GEMSTONE INV KISHOR BALUBHAI CHAUHAN S 85912 27.44
28/2/2008 530263 GLOBAL CAP M KUSHAL SOFTWARE LTD B 200000 15.41
28/2/2008 522259 KALIN RAIL N INDEX EQUITIES P.LTD S 100000 468.00
28/2/2008 526015 KEMROC IND E XITIJ INVESTMENTS B 99990 650.10
28/2/2008 526015 KEMROC IND E AMAX NETWORK PVT LTD S 100000 650.10
28/2/2008 532067 KILPEST INDI PREM MOHANLAL PARIKH S 86793 65.15
28/2/2008 511760 KOSIAN INDUS INDERJEET ARYA B 19000 21.76
28/2/2008 532950 MANJUSHREE SHAILESH M. NISSAR B 429835 55.59
28/2/2008 532950 MANJUSHREE PRABHUDAS LILLADHER PVT. LTD. B 660056 54.39
28/2/2008 532950 MANJUSHREE DEEPAK S CHHEDA B 709136 54.10
28/2/2008 532950 MANJUSHREE AMIT M GALA B 427109 54.69
28/2/2008 532950 MANJUSHREE HIMANSHU R NISSAR B 142041 52.95
28/2/2008 532950 MANJUSHREE CHIMANLAL MANEKLAL SEC.PVT.LTD B 744906 52.92
28/2/2008 532950 MANJUSHREE SHAILESH M. NISSAR S 429832 55.82
28/2/2008 532950 MANJUSHREE PRABHUDAS LILLADHER PVT. LTD. S 660056 54.62
28/2/2008 532950 MANJUSHREE DEEPAK S CHHEDA S 709136 54.67
28/2/2008 532950 MANJUSHREE AMIT M GALA S 427109 54.89
28/2/2008 532950 MANJUSHREE HIMANSHU R NISSAR S 142041 53.32
28/2/2008 532950 MANJUSHREE CHIMANLAL MANEKLAL SEC.PVT.LTD S 744906 52.90
28/2/2008 532127 MOBILE TELEC ELECTRA FINANCIAL SERVICES LTD S 100000 9.60
28/2/2008 501477 MULLER & PHI VARUN FINSTOCK PVT LTD B 4000 113.50
28/2/2008 501477 MULLER & PHI BHANSALI ASSOCIATES B 4000 113.50
28/2/2008 501477 MULLER & PHI VARUN FINSTOCK PVT. LTD. S 4000 113.50
28/2/2008 501477 MULLER & PHI BHANSALI ASSOCIATES S 4000 113.50
28/2/2008 532055 RASHEL AGROT ENCA FINLEASE LTD. B 104000 2.61
28/2/2008 532948 TULSI EXTRU HIMANSHU R NISSAR B 102387 114.91
28/2/2008 532948 TULSI EXTRU CHIMANLAL MANEKLAL SEC.PVT.LTD B 137075 115.78
28/2/2008 532948 TULSI EXTRU HIMANSHU R NISSAR S 102387 115.23
28/2/2008 532948 TULSI EXTRU CHIMANLAL MANEKLAL SEC.PVT.LTD S 137075 115.71

Income Tax payers get more exemptions

Income tax payers will feel happier after this Budget. Presenting the Union Budget for 2008-09 in the Lok Sabha, Finance Minister P Chidambaram today raised the basic exemption limit from Rs 1.1 lakh to 1.5 lakh for all male assesses. Also, the limit for women assessees has been hiked from Rs 1.45 lakh to 1.80 lakh and for senior citizens from 1.95 lakh to 2.25 lakh.

The reason: tax collections have been going up in the last few years. And the numbers speak for themselves. The tax to gross domestic product (GDP) has risen from 9.2% in 2003-04 to 12.5% in 2007-08.

The rise in the exemption limit basically implies that a person who was paying a tax of Rs 4,120 annually on his income of Rs 1.5 lakh will not be paying anything at all. Similarly, women assessees would save Rs 6,695 and senior citizens would save Rs 6,180 on income of Rs 1.8 lakh and 2.25 lakh, respectively.

Though this may sound like a small relief, when one goes through the numbers, income earners up to Rs 5 lakh are likely to save between Rs 40,000-45,000. However, the incremental saving over Rs 5 lakh income is just another Rs 5,000. For instance, an individual earning Rs 25 lakh, the savings is Rs 49, 852, Rs 49, 286 and Rs 43,621 for male, female and senior citizen, respectively.

Interestingly, Indian taxpayers will now be better off than those in the US. Says Kaushik Mukerjee, executive director, PricewaterhouseCoopers, "The finance minister has increased the threshold for personal tax exemption by about 35%, which is about $4,000. This is more than the basic threshold in the US where the ceiling is $3,400. However, we are yet to reach the levels of Australia ($5,500), UK ($11,000) or Singapore ($15,000). We were ahead of China already where the annual threshold in China is about $ 1400." Though this hike is substantial in relative terms, Mukherjee feels that it may take some time to catch up with countries like Australia, UK and Singapore.

Many also expected that the education cess of 3% should have also gone, but the FM did not announce any such moves. Also, the surcharge of 10% on the individual income of over Rs 10 lakh stays.

Also, the much-awaited relief on banking transaction tax will now be removed from April, 2009. This tax, 0.1% on transactions of Rs 25,000 on a single day, was introduced in the 2005-06 Budget. This created quite a stir among the consumers who felt that they were being tax again on the same income.

On the whole, the idea of FM seems to be to put more money in the hands of the consumer, which would give them more spending power. Given that there are worries of a slowdown in the two-wheelers and car segment, a little more cash at hand would definitely help consumers.

The new IT slabs, effective from the next fiscal year, would be as follows:

10% on income of Rs. 1.50 lakh to Rs 3 lakh;

20% on income of Rs 3 to Rs 5 lakh; and

30% on income of Rs 5 lakh onwards.

Weekly Close : Good budget?but unhappy traders

All eyes were on budget for the week. Everyone had some expectation with budget and hopes that FM will fulfil their wish. Stock specific action was seen ahead of the years most important event. Markets were choppy and volatile for the whole week..which were also backed by F&O settlement week. Overall volumes were lower as investor remained cautious.

Sensex gained 1.3% for the week. Gains were registered by Bhel +10.26%, Cipla +3.60%, HDFC +9.16%, Hind Liver +5.45%, Hindalco +5.73%, Mah & Mah +10.53%, Ranbaxy +7.79%, Maruti +13.62%. Losses were led by DLC -5.91%, Infosys +3.04%, ICICI Bank +2.12%, TCS +3.39%.

People who expected much more from the budget were dissatisfied by it but overall it was a good budget. Mr. Chidambaram delivered some good aspect as well as some negative aspect from its last Budget in his small stint as an FM. Everybody expected a popular budget as the FM could gain some confidence as the Election nears.

The FM took a big step towards populism as he announced the waiver off farm loans worth Rs. 60000 cr for the small and medium farmers while it also announced 25% rebate through one time settlement scheme for other farmers. Its good news for the farmers specially those who are suffereing. However the ones who have been repaying the loans will feel the pinch and this will set a wrong precedence and bring in indiscipline.

Government estimates that about three crore small and marginal farmers and about one crore other farmers will benefit from the scheme. The total value of overdue loans being waived is estimated at Rs.50,000 crore and the OTS relief on the overdue loans is estimated at Rs.10,000 crore.

The waiver off such large amounts would hit the commercial banks. Quite a bit of this has been written off and may not impact much. Also its not clear on who will take the hit yet. Will the Government pay for this is not clear Largely given that its the Governments plan then they should. What probably would happen is that the Government may compensate them to the extent which has not been written off yet.

On the excise side, the general Central Value Added Tax (Cenvat) rate on all goods has been reduced from 16% to 14% and thats a poitive in terms of lower prices for the economy. Sports goods , exports of gems and jewellery, helicopter simulators, domestic fertiliser production will get customs duty sops so that is positive.

Cut in Excise Duty of Buses & Chassis, Small cars, Two-wheelers and the Three-wheelers from 16% to 12% is a big benefit. Thats a big relief against the high input costs. This is positive for Maruti, Hero Honda, Bajaj Auto and somewhat for Ashok Leyland and Tata Motors. The problem remains for the two wheeler industry is the demand and credit availability. The impetus in the form of lower income tax, higher disposable income could stimulate demand. .

The government will invest around 3300 cr over a period of 3 years to connect rural areas. Positive for Tulip IT, BSNL, Net4India, HCL connect, etc.

Textile companies will see the benefits continuing for TUFs

Cement companies had some negatives in store with higher excise duties. Also they have to face the pressure of new capacities which are expected to come on later this year.

The focus on creating a debt market tradable we believe is a significant step and that will set the ball rolling for lower interest rates.

The big gift awaited tax payers and that was a big cut in income tax rates. Surely we believe that we have not seen the small print yet but certainly it adds significant positives into the hands of investors.

There were a couple of disappointments.

No changes have been made in the corporate income tax rates and also the surcharge and that was a disappointment as everyone was hoping that with collections what they are the Government could have been a bit generous here..

Short-term capital gains tax has been increased from 10% to 15%. Some negative for the capital markets as and also the security Transaction Tax offet for Busines income is disallowed.

The deficits seem quite under control but the 6th pay commission recommendations are not included and nor the 60000 cr bonanza write off for the banks.

All in all a decent budget which cant be called a non event. The FM has "Gambled" that growth will get a kicker with higher disposable income with tax payers and also the Farmers. Its also brownie points ahead of the elections. Does that mean that we can have elections soon. .. ! Well thats something to ponder over the week end !

Markets reacted negatively but the fine print will be known over the weekend. We believe that the budget has delivered more against the expectations which were almost none. There were implict hopes and that was what the markets reacted to as that was not met. Technically: Sensex have turned into a very narrow range for sometime now. 18300 is the major resistance on the upside and 17200 is the major support on the downside.

The global factors will continue to dominate but this budget we believe is one of stimulation and there is good reason for the markets to react positively on their own. Unless there are some big negatives in the fine print expect a positive market starting next week.

Post Market Commentary - Feb 29 2008

The Indian market made a smart recovery towards the final trading hours of the session to pare most of its losses. Tracking the weak global cues, the domestic market opened on a sad note and kept on hovering in the negative territory throughout the trading session. The market tumbled in the mid session as the finance minister announced a hike in short term capital gains tax to 15% from 10% earlier. This led to the negative sentiments in the market. The finance minister kept the corporate tax and the tax on securities transaction tax unchanged. The software stocks fell, as the government did not announce any relief for this sector in terms of export. Auto stocks gained as the government reduced excise duty on small cars to 12% from 16%. Government cut excise duty on hybrid cars to 14%, from 24%. India''s wholesale price index (WPI) rose 4.89 % in the 12 months to 16 February 2008 over the same period last year from the previous week''s rise of 4.35%. From the sectoral front, the metal stocks remained the centre of attraction as most buying was seen from these baskets. The BSE Sensex closed lower by 245.76 at 17,17,578.72 and NSE Nifty fell by 61.6 points to close at 5,223.50. The BSE Mid Cap and Small Cap closed lower by 31.37 points and 40 points at 7,680.39 and 9,628.13 respectively.

The Capital Goods index declined 479.36 points at 16,119.52. Major losers are Suzlon energy (5.67%), Punj Lloyd (4.69%), Crompton Greaves (3.59%), L&T (3.24%) and ABB (2.95%).

The BSE Metal index fell by 232.49 points to close at 16,739.52. Losers are Bhushan Steel (5.45%), Jindal Stainless (3.20%), Tata Steel (2.69%), Nalco (3.04%), Jindal Steel (2.21%).

The BSE Oil & Gas index dropped by 132.71 points at 11,032 as Reliance Inds (3.09%), ONGC (2.58%), BPCL (1.18%), RNRL (0.78%), HPCL (0.70%) and GAIL India (0.67%) closed lower.

The Realty index closed lower by 267.43 points at 9,565.67 as Unitech (4.57%), Akruti City (3.51%), DLF (3.08%), Indbul Real (2.24%), Mahindra Life (1.56%) closed in red.

Sensex clobbered, drops 246 points

The market crumbled after profit taking set in during the early trades and lingered in the negative territory all through the trading session. With the major Asian indices not recovering from their yesterday's slump further hurt the market sentiment and aggravated selling pressure in the afternoon trades. Weakness in heavyweight, consumer goods, realty and IT stocks dragged the index to the day's low of 17,258, down 566 points from its last close. The Sensex finally signed off the session with losses of 246 points at 17,579. The Nifty dropped 62 points to close at 5,223.

Dragging down the markets, Infosys dropped 3.29% at Rs1,547, Larsen & Toubro tumbled 3.24% at Rs3,523, RIL faltered 3.09% at Rs2,458, DLF slumped 3.08% at Rs781, Tisco shed 2.69% at Rs802, Wipro lost 2.64% at Rs434.65 and ONGC declined 2.58% at Rs1,012.35. However, select blue chip counters managed to clock decent gains. Maruti rose 3.86% at Rs867.20, SBI moved up by 3.48% at Rs2,109.70, Hind Utilities jumped 3.27% at Rs227.35, Bajaj Auto added 2.73% at Rs2,280.15, M&M advanced 1.86% at Rs692.80 and HDFC jumped 1% at Rs2,808.

Except BSE Auto, BSE Bankex, BSE FMCG and BSE HC index, rest of the sectoral indices ended in the red. BSE CG, BSE Realty, BSE IT, BSE Teck, BSE Power and BSE CD index dropped over 2%, while other indices were down around 1% each. However, Auto stocks attracted strong buying support. Ashok LeyLand soared 4.17% at Rs37.45, Maruti advanced 3.86% at Rs867, Bajaj Auto scaled 2.73% at Rs2,280 and Hero Honda, M&M, Amtek, Escorts and TVS Motor gained over 0.5-2% each.

Over 3.58 crore Nagarjuna Fertilisers shares changed hands on the BSE followed by RPL (1.92 crore shares), IFCI (1.72 crore shares), Chambal Fertilisers (1.49 crore shares) and RNRL (1.33 crore shares).

Market may stabilise

The market might stabilise in the coming weeks with the key event viz the Union Budget 2008-2009 over. Rollover of derivative contracts from February 2008 series to March 2008 series was decent. Nifty saw rollover of about 75% and market wide rollover was 72% to 73%, when derivative contracts expired on 28 February 2008.

The Finance Minister P Chidambaram proposed hike the short-term capital gains tax on sale of shares to 15% from 10% in Union Budget 2008-09 which he presented to the parliament on Friday, 29 February 2008. However there was no change in corporate tax and the rate of Securities Transaction Tax (STT), too, was kept unchanged. The finance minister said STT paid by the taxpayer will be treated like any other deductible expenditure against business income.

The general Centvat on all goods has been reduced to 14% from 16%. The peak customs duty was kept unchanged at 10%.

The 30-share BSE Sensex gained 229.65 points or 1.32% to 17,578.72, in the week ended 29 February 2008. The S&P CNX Nifty advanced 112.75 points or 2.20% to 5223.50, in the week.

Sensex is down 3,628.05 points or 17.10% from a record high of 21,206.77 hit on 10 January 2008. The barometer index is down 2708.27 points or 13.34% in calendar 2008 so far.

The wholesale price index rose 4.89% in the 12 months to 16 February 2008, higher than the previous week's rise of 4.35%, government data showed on Friday, 29 February 2008.

Domestic market will also be influenced by global markets. Federal Reserve Chairman Ben Bernanke signaled a readiness to cut interest rates again to prevent further damage to the weak US economy, even as he took note of rising inflation risks last week. Delivering the Fed's semiannual report on the economy to Congress, Bernanke made clear the central bank was worried a deepening housing slump, softening jobs market and tighter credit could dim an already bleak economic outlook.

Higher crude oil prices are also a matter of concern. Crude oil prices touched a record high above $103 a barrel on Friday, 29 February 2008, after Ecuador shut a key export pipeline and a fire hit a major European natural gas plant, while the US dollar's fall to a series of lows kept fresh funds flowing in

Market settles higher in event dominated week

The market posted gains last week amid volatile trade ahead of expiry of February 2008 derivatives contracts. The BSE Sensex posted gains for 3 out of 5 days, whereas the S&P CNX Nifty advanced for 4 out of 5 trading sessions. Small-Cap and Mid-Cap indices underperformed the Sensex.

The Finance Minister P Chidambaram proposed to hike the short term capital gains tax from 10% to 15% in Union Budget 2008-09 which he presented to the parliament on Friday, 29 February 2008. However there was no change in corporate tax and the rate of Securities Transaction Tax (STT), too, was kept unchanged. The finance minister said STT paid by the taxpayer will be treated like any other deductible expenditure against business income.

The general Centvat on all goods has been reduced to 14% from 16%. The peak customs duty was kept unchanged at 10%.

The Finance Minister (FM) announced changes in personal income tax slabs that will bring down tax liability of individual tax payers substantially. With an eye on parliamentary elections in 2009, FM also announced a package of a massive Rs 60000 crore of waivers of loans of farmers.

The 30-share BSE Sensex gained 229.65 points or 1.32% to 17,578.72, in the week ended Friday, 29 February 2008. The S&P CNX Nifty advanced 112.75 points or 2.20% to 5223.50, in the week.

The BSE Mid-Cap index rose 85.94 points or 1.13% to 7,680.39 in the week. The BSE Small-Cap index rose 32.72 points or 0.34% to 9,628.13 in the week. Both these indices underperfomed the Sensex.

Trading for the week started on an upbeat note with 30-share BSE Sensex gaining 301.50 points or 1.74% at 17,650.57 on Monday, 25 February 2008. The broader based S&P CNX Nifty was up 89.95 points or 1.76% at 5,200.70 on that day. Oil & gas and information technology stocks were in demand.

The 30-share BSE Sensex rose 155.62 points or 0.88% at 17,806.19 on Tuesday, 26 February 2008 after Railway Minister Lalu Prasad Yadav provided thrust on modernising rail infrastructure in Railway Budget 2008-09 which he presented to parliament on that day. The broader based S&P CNX Nifty was up 69.35 points or 1.33% at 5,270.05 on that day.

The key benchmark indices came off higher levels in late trade on Wednesday, 27 February 2008, to settle almost flat due to selling in IT and banking counters. The 30-share BSE Sensex rose 19.80 points or 0.11% at 17,825.99. The broader CNX S&P Nifty ended down 1.65 points or 0.03% at 5,268.40 on that day.

On Thursday, 28 February 2008, the barometer index BSE Sensex ended almost unchanged in volatile trade as derivative contracts for February 2008 series expired. The 30-share BSE Sensex ended down 1.51 points or 0.01% at 17,824.48. However, the broader CNX S&P Nifty was up 16.7 points or 0.32% at 5,285.1 on that day.

Market slipped in volatile trade on 29 February 2008 after finance minister announced a hike in short term capital gains tax to 15% from 10%, in Union Budget 2008-09. The 30-share BSE Sensex slipped 245.76 points or 1.38% at 17,578.72. S&P CNX Nifty declined 61.60 points or 1.17% to 5,223.50 on that day.

India's largest private sector firm by market capitalization and oil refiner Reliance Industries rose 1.17% at Rs 2458.25 in the week. The company said on Tuesday, 26 January 2008 it had discovered more gas in an exploration block off India's east coast. This is the company's eight discovery in the block.

Maruti Suzuki surged 13.12% to Rs 867.20 and Tata Motors rose 0.80% to Rs 700.25 in the week. The government reduced excise duty on small cars to 12% from 16% and cut excise duty on hybrid cars to 14%, from 24%, in the Budget.

Farm equipment maker Mahindra & Mahindra advanced 10.18% to Rs 692.80. The Finance Minister proposed higher farm credit target in the Budget.

Banking shares edged lower during the week. ICICI Bank slipped 0.77% to Rs 1090.95 and State Bank of India lost 0.24% to Rs 2109.70

HDFC Bank declined 1.46% to Rs 1453.45 whereas Centurion Bank of Punjab slumped 12.85% to Rs 49.15 in the week. The swap ratio was fixed as 1 share of HDFC Bank for 29 shares of Centurion Bank of Punjab for the proposed merger of Centurion Bank of Punjab with HDFC Bank.

India's largest cellular services provider in terms of market capitalisation Bharti Airtel fell 2.90% to Rs 825.60 and India's second biggest listed telecommunication services provider by sales Reliance Communications shed 1.25% to Rs 574.55 in the week.

India's second largest power utility firm by revenue Reliance Energy rose 0.76% to Rs 1567.75 in the week. The company said on 25 February 2008 that its board will meet on 5 March 2008 to consider, buy back of equity shares of the company.

NTPC, India's biggest power generation firm by revenue, advanced 1.95% to Rs 201.7 in the week on signing a loan agreement for 68.56 million euros with Nordic Investment Bank to part fund its capital expenditure.

Reliance Power rose 3.30% to Rs 430.60 after its board-approved issue of three bonus shares for every five held, to compensate for the slump in the stock price post listing.

The wholesale price index rose 4.89% in the 12 months to 16 February 2008, higher than the previous week's rise of 4.35%, government data showed on Friday, 29 February 2008.

Nifty saw a rollover of about 75% to March 2008 contracts from February 2008 contracts when February 2008 contracts expired on 28 February 2008. The market wide rollover was 72% to 73%.

Railway Minister Lalu Prasad announced a cut in freight rates by 5% on petrol and diesel in the Railway Budget for 2008/09. Fares for second class sleeper-class passengers were reduced by 5%. Yadav said Railways will invest Rs 75,000 crore to upgrade infrastructure over the next seven years. Indian Railways has a cash surplus of Rs 25000 crore in the 2007/08 financial year, Yadav added.

Crude oil touched a record high above $103 a barrel on Friday, 29 February 2008 after Ecuador shut a key export pipeline and a fire hit a major European natural gas plant, while the US dollar's fall to a series of lows kept fresh funds flowing in.

Sensex sheds 246 points in choppy trade as FM hikes short term capital gains tax

Volatility on the stock market is common on the day of presentation of Union Budget. And it was no exception this time. A strong intra-day rebound was witnessed in mid-afternoon trade today after a steep fall in early afternoon trade. However, the recovery proved short lived as the market failed to sustain higher level in late trade. The market ended with modest losses for the day. 21 out of 30 Sensex stocks declined.

Sensex had tumbled more than 500 points in early afternoon trade soon after the finance minster (FM) P Chidambaram announced a hike in short term capital gains tax on sale of shares to 15% from 10%, in Union Budget 2008-09 which he tabled in parliament today.

Just before the announcement of hike in short term capital gains tax by the finance minster, the market had recovered from lower level after an intial fall triggered by announcement of populist measures in the Budget viz. a major debt waiver package to the farmers. The market had opened in the red and remained subdued in early trade before FM's Budget speech, tracking weak global markets.

The 30-share BSE Sensex declined 245.76 points or 1.38% at 17,578.72. Sensex hit a low of 17,258.20 in afternoon trade. At the day's low, Sensex lost 566.28 points. Sensex hit a high of 17,779.54 in early trade. At the day's high, Sensex lost 44.94 points.

S&P CNX Nifty fell 61.6 points or 1.17% to 5,223.50.

Capital goods and IT stocks fell. Auto stocks rose. The market breadth was weak.

There was no change in corporate tax and the rate of Securities Transaction Tax (STT), too, was kept unchanged, in Union Budget 2008-09. The finance minister said STT paid by the taxpayer will be treated like any other deductible expenditure against business income.

The general Centvat on all goods has been reduced to 14% from 16%. The peak customs duty was kept unchanged at 10%.

The Finance Minister (FM) announced changes in personal income tax slabs that will bring down tax liability of individual tax payers substantially. With an eye on parliamentary elections in 2009, FM also announced a package of a massive Rs 60000 crore of waivers of loans of farmers.

Market breadth was weak: on BSE 1,638 stocks declined as compared to 1,070 stocks that advanced. 42 stocks remained unchanged.

BSE clocked a turnover Rs 6700 crore today 29 February 2008 compared to Rs 5,028.03 crore on Thursday 28 February 2008.

Nifty March 2008 futures were at 5140.10, at a huge discount of 83.40 points as compared to spot closing of 5223.50.

The NSE's futures & options (F&O) segment turnover was Rs 49,083.49 crore, which was lower than Rs 61,065.26 crore on Thursday, 28 February 2008.

India's wholesale price index (WPI) rose 4.89 % in the 12 months to 16 February 2008 over the same period last year, higher than the previous week's rise of 4.35 %, government data showed today.

The BSE Mid-Cap index declined 0.41% to 7,680.39 and BSE Small-Cap index fell 0.41% to 9,628.13. Both these indices outperformed Sensex.

BSE Consumer Durables index (down 2% to 4,699.34 BSE IT index (down 2.65% to 3,862.45), BSE PSU index (down 0.18% to 8,484.16) BSE Power index (down 2.06% to 3,670.94), BSE Capital Goods index (down 2.89% to 16,119.52), BSE Realty index (down 2.72% to 9,565.67) underperformed Sensex.

BSE Oil & Gas index (down 1.19% to 11,032.16), BSE Metal index (down 1.37% to 16,739.52), BSE HealthCare index (up 0.08% to 3,928.78), BSE Auto index (up 1.19% to 4,887.17), BSE Bankex (up 0.4% to 10,113.73), and BSE FMCG index (up 0.91% to 2,274.39) outperformed Sensex.

Capital Goods stocks declined. Larsen & Toubro (down 3.24% to Rs 3,523.05), Bharat Heavy Electricals (down 1.79% to Rs 2,282) and Suzlon Energy (down 5.67% to Rs 281.30) edged lower.

Software stocks fell after after the Finance Minister did not announce any relief for the export-driven sector. Infosys (down 3.29% to Rs 1,546.85), Satyam Computer Services (down 2.83% to Rs 434.15), Wipro (down 2.64% to Rs 434.65) and Tata Consultancy Services (down 0.62% to Rs 874.30) edged lower.

Maruti Suzuki rose 3.86% to Rs 867.20 after government reduced excise duty on small cars to 12% from 16%. Government cut excise duty on hybrid cars to 14%, from 24%. Farm equipment maker Mahindra & Mahindra rose 1.86% to Rs 692.80 after the Finance Minister proposed higher farm credit target.

Bajaj Auto rose 2.73% to Rs 2,280.15 after the Government cut excise duty on two-wheelers to 12%, from 16%.

DLF (down 3.08% to Rs 780.55) and Reliance Industries (down 3.09% to Rs 2,458.25) edged lower from the Sensex pack

All major PSU Banks recovered on television reports the Indian government would reimburse the PSU banks for its Rs 60,000 crore loan waiver for farmers over a period of three years. State Bank of India rose 3.43% to Rs 2,109.70 and Punjab National Bank rose 3.48% to Rs 604.15.

Earlier in the morning the Finance Minister's announcement of a complete waiver of loans for small and marginal farmers with agricultural holding of 1-2 hectors of area, had spooked PSU banking shares with exposure to the rural sector. Meanwhile, Finance Minister has withdrawn Banking Cash Transaction Tax (BCTT) effective from 1 April 2009.

Stocks of the paper manufacturing firms were mixed. The Finance Minister proposed a reduction in excise duty on paper products. J K Paper (down 1.25% to Rs 39.90) and Tamil Nadu Newsprint & papers (down 0.33% to Rs 104.65) edged lower. However, Ballarpur Industries was flat at Rs 136.90 and West Coast Paper rose 0.06% to Rs 80.05. Finance Minister proposed that excise duty will be reduced on paper, paper board and articles made therefrom manufactured out of non-conventional raw materials by units not having an attached bamboo/wood pulp making plant from 12% to 8%.

Ashok Leyland moved up 4.17% to Rs 37.45 after the Finance Minister proposed a reduction in excise duty on buses and their chassis to 12% from 16%, in Union Budget 2008-09.

Sesa Goa spurted 6.69% to Rs 3,464.20 after the finance minister in Union Budget 2008-09 did not increase export duty on iron ore.

Some healthcare stocks gained after government proposed a reduction in excise duty on all pharmaceutical goods to 8%, from 16%. Dishman Pharmaceuticals (up 5.96% to Rs 291.40), Apollo Hospitals (up 1.27% to Rs 495.65), Cadila Healthcare (up 3.02% to Rs 260.80), Fortis Healthcare (up 7.44% to Rs 85.25), Aurobindo Pharma (up 6.37% to Rs 329.75), Cipla (up 0.58% to Rs 207.25), moved up. Ranbaxy Laboratories rose 0.27% to Rs 445.75.

The Finance Minister also proposed a five year tax holiday for setting up hospitals in tier II and tier III regions for providing healthcare in rural areas from 1 April 2008.

Shares of four companies related to power transmission & distribution sector were mixed after the Budget announced plans for a national fund for the segment. Power Grid Corporation of India (down 1.57% to Rs 109.70), Kalpataru Power (down 0.86% to Rs 1244.05) edged lower. However, KEC International (up 0.42% to Rs 728.40) and Jyoti Structures (up 0.86% to Rs 205.75) edged higher. The Finance Minister has proposed Rs 800 crore for accelerated power reforms in FY 2009

Shares of five fertiliser firms slipped between 0.24% to 8.7% after Union Budget 2008-09 did not increase subsidy to producers, as expected. Tata Chemicals (down 0.24% to Rs 329.40), Rashtriya Chemicals and Fertilisers (down 4.73% to Rs 84.60), National Fertilizers (down 4.8% to Rs 66.40), Deepak Fertilisers (down 8.7% to Rs 131.25), and Coromandel Fertilisers and Chemicals (down 4.91% to Rs 127.75), edged lower. The government has announced a loan waiver scheme for small farmers, instead of increasing subsidy to producers.

Stocks of the companies that cater to education sector ended mixed after the Finance Minister said the government aims to provide more thrust to the education sector. Navneet Publications India rose 1.97% to Rs 121.35. However Educomp Solutions (down 2.56% to Rs 4250.85), Camlin (down 4.47% to Rs 234) edged lower. Finance Minister P Chidambaram proposed to set up 16 central universities in 2008-09. He also plans to allot more for education, especially at the primary school level. FM proposed 20% hike in education budget this year from Rs 28,674 crore to Rs 34,400 crore.

Nagarjuna Chemicals & Fertilisers clocked a highest volume of 3.58 crore shares on BSE. Reliance Petroleum (1.92 crore shares), IFCI (1.72 crore shares), Chambal Fertilisers and Chemicals (1.49 crore shares) and Reliance Natural Resources (1.33 crore shares) were other volume toppers in that order.

Reliance Petroleum clocked highest turnover of Rs 328.39 crore on BSE. Relaince Industries (Rs 251.55 crore), OnMobile Global (Rs 247.28 crore), State Bank of India (Rs 246.36 crore) and Essar Oil (Rs 245.63 crore) were other turnover toppers in that order.

FM announced a complete waiver of loans for marginal farmers owning land up to one hectare and small farmers owning land up to 1 and 2 hectares. Agricultural loans given by scheduled commercial banks, regional rural banks and co-operative credit institutions up to March 31, 2007 and due for 31 December 2007 that year will be covered under the waiver scheme to address the problem of indebtedness of farmers.

FM said keeping inflation under check is a cornerstone of government policy. He further said pressure on domestic prices is from food articles and the Government is determined to be self-sufficient in food grains. There is a need to manage capital inflows more actively he added.

The Finance Minister (FM) said India has recorded 8% GDP in 12 consecutive quarters.

Agriculture credit doubled in first 2 years of the UPA government, FM said. Agriculture is expected to grow at 2.6% in FY 2008, he said.

He said capital inflows are excess of economic deficit. Government and Reserve Bank of India will jointly take temporary steps to manage capital inflows, the Finance Minister added.

Indian economy, like all developing economies, is being hurt by these global upheavals in prices. We need to be vigilant and be proactive to change our policies, to counter this global problem, FM said. The rise in global oil prices too has hurt us, say the FM.

The FM plans to allot more for education, especially at the primary school level. FM wants India to be a knowledge society. FM said allocation for Bharat Nirman will be raised to Rs 31,280 crore.

Nifty March 2008 futures at discount

 Turnover in F&O segment declines


Nifty March 2008 futures were at 5271, at a discount of 14.10 points as compared to spot closing of 5285.10. Derivatives contracts for February 2008 series expired today, 28 February 2008.

NSE's futures & options (F&O) segment turnover was Rs 61,065.26 crore, which was lower than Rs 63,256.76 crore on Wednesday, 27 February 2008.

Reliance Industries March 2008 futures were at premium, at 2550, compared to the spot closing of 2533.25.

Tata Steel March 2008 futures were at premium, at 827, compared to the spot closing of 824.30.

NTPC March 2008 futures were near spot price, at 203.30, compared to the spot closing of 203.55.

In the cash market, the S&P CNX Nifty gained 16.70 points or 0.32% at 5285.10.

Crude jumps, dollar sulks

Price settles above $102 as dollar slips to new low against the euro


Crude prices rose by almost $3 today after the dollar fell to new lows against most of its counterparts, mainly the euro. The dollar fell on interest rate outlook in the US as Chairman Ben Bernanke continued to answer questions for the second day at Capitol Hill. He had hinted yesterday that Fed will go for further softer landing in the coming days and might reduce interest rate by another fifty bps in its next meeting.

Crude-oil futures for light sweet crude for April delivery today closed at $102.59/barrel (higher by $2.95/barrel or 3%) on the New York Mercantile Exchange. Prices are 66% higher than a year ago. Reports of production disruption at Nigeria also pushed up crude prices today.

In the currency market today, the U.S. dollar tumbled to record lows against the euro after lackluster economic data and Federal Reserve Chairman Ben Bernanke's comments raised fears about the U.S. economy. The trade-weighted dollar index, which measures the greenback against a basket of six major currencies, fell 1.2% to 73.68.

The Commerce Department reported today that the U.S. economy grew at an unrevised 0.6% annual rate for the fourth quarter. And for all of 2007, the economy grew at the weakest pace in five years.

Today, oil prices were also supported by reports of a partial shutdown of production in Nigeria, Africa's largest oil producer and the U.S.'s fifth-largest crude supplier.

Yesterday crude prices had infact dropped after EIA had reported in the weekly inventory report that crude inventories grew more than expected, rising 3.2 million barrels to stand at 308.5 million barrels in the week ended 22 February. Market was expecting an increase of 2.6 million barrels.

Brent crude oil for April settlement today rose $2.63 (2.7%) to $100.9 on the London-based ICE Futures Europe exchange. The London benchmark rose 54% in FY 2007, the most since 1999 when prices more than doubled.

Natural gas supplies drop more than average

Natural gas advanced after a government report showed supplies fell more than average, signaling inventories may end the cold-weather demand season at the lowest since March 2005. Gas for April delivery rose 38.3 cents (4.2%) to settle at $9.433 per million British thermal units. EIA reported that stockpiles declined 151 billion cubic feet to 1.619 trillion cubic feet for the week ended 22 February.

Against this backdrop, March reformulated gasoline gained 2 cents to $2.50 a gallon and March heating oil rose 8 cents to end at $2.85 a gallon. Both contracts are due to expire tomorrow.

In a monthly report released earlier this month, EIA said the world oil market is poised to ease over the next two years with production increases offsetting moderate growth in oil demand.

Crude had ended FY 2007 substantially higher by $35 or 57%. It was crude's biggest yearly gain in five years.

At the MCX, crude oil for March delivery closed at Rs 4,034/barrel, higher by Rs 27 (0.7%) against previous day's close. Natural gas for March delivery closed at Rs 374.5/mmtbu, higher by Rs 13.6/mmtbu (3.8%).

Record close for bullions

 Gold and silver prices take a leap on interest rate outlook


Bullion metal prices rose sharply higher for the third straight day today, 28 February, 2008 after the dollar slumped sharply against its rival currencies, mainly the euro. The dollar have been dampened mainly since yesterday after the Federal Reserve Chairman, Ben Bernanke hinted that Fed in all possibility will go for another soft landing in its next meeting thereby reducing interest rates by another 50 bps.

This has been weakening dollar further. Gold, as a dollar-denominated commodity, suffers from dollar strength. On the contrary, gold prices rise with falling dollar as inflationary concerns boosts the metal's appeal as an inflation hedge. Silver prices also gained substantially today, reaching the highest level in twenty eight years.

Comex Gold for April delivery rose $6.5 (0.7%) to close at $967.5 an ounce on the New York Mercantile Exchange. Prices touched a record $975/ounce during after hours trading. This year, gold prices have gained 15.7% till date. In January, prices gained 11%, the highest monthly gain since April 2006.

Last week, gold gained $41.5 (4.6%). Prices increased due to the slumping dollar and supply issues at South Africa.

Comex Silver futures for May delivery rose by 43.2 cents (2.2%) to $19.756 an ounce. Silver has gained 28% in 2008. The metal had climbed 16% in FY 2007. The metal also has gained for seven straight years. In January this year itself, prices climbed 14%.

The Fed has cut the federal funds rate to 3% from 5.25% in mid-September. January 2008 itself saw two rate cuts in a gap of ten days.

In the energy market today, crude-oil futures rose substantially and closed at more than $102/barrel on reports of production disruptions in Nigeria and record low dollar against the euro.

In the currency market today, the U.S. dollar tumbled to record lows against the euro after lackluster economic data and Federal Reserve Chairman Ben Bernanke's comments raised fears about the U.S. economy. The trade-weighted dollar index, which measures the greenback against a basket of six major currencies, fell 1.2% to 73.68.

Gold has traditionally been used as a safe-haven asset against rising inflation. Investor sentiments are boosted by the fact that gold and silver are alternate sources of good investment in the face of declining dollar and rising energy prices. On the other hand strong dollar reduces the appeal of the metal as alternate source of investment.

Gold witnessed the greatest annual gain in twenty eight years by gaining $200/ounce (31%) in FY 2007 as lower interest rates had sent the dollar tumbling, and crude-oil prices rose to a record. The Fed reduced federal funds rate three times in FY 2007. In 2006, silver had jumped 46% while gold gained 23%.

At the MCX, gold prices for April delivery closed higher by Rs 59 (0.5%) at Rs 12,293 per 10 grams. Prices rose to a high of Rs 12,330 per 10 grams and fell to a low of Rs 12,175 per 10 grams during the day's trading.

At the MCX, silver prices for March delivery closed Rs 326 (1.3%) higher at Rs 24,683/Kg. Prices opened at Rs 24,255/kg and went to a high of Rs 24,840/Kg during the day's trading.

Post Market Commentary - Feb 28 2008

The Sensex opened marginally (15 points) lower at 17,811 on mixed cues from the Asian markets. The index moved into positive zone and touched a high of 17,922 in early trades.

The index could not hold gains and slipped back into negative territory. The index touched a low of 17,690 - down 232 points from the day's high - but rebounded into positive zone in late trades.

The Sensex finally ended on a flat note (down two points) at 17,824.

The NSE Nifty moved up 17 points to end at 5,285.

The BSE market breadth was marginally negative - out of 2,784 stocks traded, 1,444 declined, 1,276 advanced today.

INDEX MOVERS...

Hindalco gained 4% to Rs 204. Bajaj Auto moved up 3.6% to Rs 2,255.

HDFC and Mahindra & Mahindra added over 3% each to close at Rs 2,775 and Rs 680, respectively.

BHEL gained 2.7% at Rs 2,324. Wipro, Cipla and Satyam advanced over 2% each to Rs 450, Rs 206 and Rs 447, respectively.

Ranbaxy moved up nearly 2% to Rs 445. Tata Steel and HDFC Bank were up around 1.5% each at Rs 824 and Rs 1,471, respectively.

...AND THE SHAKERS

DLF dropped over 2% to Rs 805. SBI and Reliance declined 2% each to Rs 2,039 and Rs 2,537, respectively.

Reliance Energy slipped nearly 2% to Rs 1,601.

Infosys, ACC and ICICI Bank were down around 1% each at Rs 1,599, Rs 808 and Rs 1,103, respectively.

VALUE & VOLUME TOPPERS

OnMobile topped the value chart with a turnover of Rs 271.35 crore followed by Reliance Capital (Rs 186 crore), debutant Manjushree Extrusions (Rs 173.35 crore), Reliance Energy (Rs 149.65 crore) and Reliance Energy (Rs 147.70 crore).

Manjushree Extrusions led the volume chart with trades of around 3.16 crore shares followed by Tulsi Extrusions (1.27 crore), Reliance Natural Resources (1.09 crore), Nagarjuna Fertilisers (1.07 crore) and Ispat Industries (80.85 lakh).

Metal and health care stocks trigger late Sensex bounce back

A late bout of hectic buying action in metal, health care and other heavyweight counters triggered a major rally in the Sensex, which otherwise lingered in negative territory for better part of the trading session. On the back of a weak Asian indices, the Sensex witnessed extreme volatility in early trades. After resuming weak at 17,810, the index advanced sharply and touched the intra-day high of 17,921, thereafter Sensex began to dip sharply on heavy profit taking to touch the day's low of 17,690. While the market remained subdued thereafter, the Sensex on fresh buying support rebounded sharply at close. The Sensex finally ended the session with marginal loss of a single point at 17,825, while the Nifty advanced 17 points to close at 5,285.

Sectoral indices were mixed on the Bombay Stock Exchange (BSE). The BSE Metal index led the pack with a surge of 1.98% followed by BSE HC index , which gained 1.72%, and BSE Auto index which moved up 1.18%. BSE CG, Power and PSU indices gained marginally and closed in positive territory. Among the losers the BSE Reality index dropped 1.47%.

Leading the upsurge Hindalco flared up 4.03% at Rs203.85. Among other major gainers Bajaj Auto shot up by 3.61% at Rs2,255, HDFC rose 3.39% at Rs2,775, M&M jumped by 3.26% at Rs680 and BHEL added 2.68% at Rs2,323. Cipla, Satyam, Ranbaxy, Tata Steel and Wipro gained 1-2% each. Select frontline counters, however, witnessed profit taking. DLF dropped 2.37% at Rs805, while SBI declined 2.11% at Rs2,038. RIL, REL, Ambuja Cement and Infosys ended with steady losses.

Among other major gainers NALCO soared 7.01% at Rs477.95, Tata Communications flared up 6.56% at Rs518, Spice Tele rose 5.78% at Rs36.60 and Sun Pharma added 5.58% at Rs1,259.

Over 3.15 crore Manjuhsree shares changed hands on the BSE followed by Tulsi Extrusion (1.27 crore shares), RNRL (1.09 crore shares), Nagarjuna Fertilisers (1.07 crore shares) and Ispat Industries (0.80 crore shares).

Nifty outscores Sensex

The barometer index BSE Sensex ended flat ahead of presentation of Union Budget 2008-09 by the Finance Minister P Chidambaram in Parliament. However, Nifty recorded gains against a flat closing for Sensex. Normally, the rise or fall in Sensex in a day is about three times that of Nifty.

The market had recovered from lower level in early afternoon trade after the finance ministry tabled Economic Survey - a report card on the economy during this fiscal in partliament at about 12:00 IST, the recovery was short lived. Derivatives contracts for February 2008 series expired today, 28 February 2008.

Auto, metal, healthcare stocks rose. Realty stocks fell. Reliance Industries slipped. The market breadth was weak. European markets which opened after Indian market were subdued in early trade. Asian markets, which opened before Indian market, were mixed.

The 30-share BSE Sensex ended down 1.51 points or 0.01% at 17,824.48. Sensex hit a low of 17,692.13 in mid-morning trade. At the day's low, Sensex lost 133.86 points. Sensex touched a high of 17,921.51 in initial trade. At day's high it rose 95.52 points.

The broader CNX S&P Nifty was up 16.7 points or 0.32% at 5,285.1.

National Alluminium Company (up 7.96% to Rs 482.70), Tata Communications (up 7.84% to Rs 525.25), Dr. Reddy's Labooratories (up 5.66% to Rs 572.35), Sun Pharmaceutical Industries (up 4.46% to Rs 1,254.20) and Hindalco Industries (up 4.26% to Rs 204.30) were top five gainers from Nifty pack. These five scrips have a combined weightage of 3.3% in Nifty. Four of these five stocks are not a part of Sensex. Hindalco which is a Sensex stock has a 1.38% weightage in the barometer index.

BSE clocked a turnover of Rs 4,822 crore today 28 February 2008 compared to a turnover of Rs 5,876.55 crore on Wednesday, 28 February 2008.

Nifty March 2008 futures were at 5271, at a discount of 14.10 points as compared to spot closing of 5285.10.

NSE's futures & options (F&O) segment turnover was Rs 61,065.26 crore, which was lower than Rs 63,256.76 crore on Wednesday, 27 February 2008.

Maintaining economic growth at about 9% a year will be a challenge due to inflation and infrastructure constraints, and raising the rate to double digits will be even harder, the Economic Survey for 2007-08 said. Agricultural sector growth is estimated to slow to 2.6% in the year ending March 2008, from 3.8% the year before, it said. Development of adequate infrastructure is a critical prerequisite for sustaining the economic growth momentum, the survey said.

It said containing inflation was a priority, because rising prices hurt the poor, and putting pressure on interest rates hit both savings and investment. The survey said Inflation should remain moderate in the coming months due to policy measures taken over the last year.

A surge in capital inflows, including foreign direct investment, would continue in the medium term although short-term inflows may moderate due to slightly slower growth, the survey said. Any reduction in excess capital flows from the high levels of 2007 may affect the equity markets in the short term but will make the task of monetary management easier, the survey said.

Finance Minister (FM) P Chidambaram today said that he was confident of achieving 11th Plan target of 9% growth. BSE Consumer Durables index (down 0.81% to 4,795.14), BSE Oil & Gas index (down 0.84% to 11,164.87), BSE Bankex (down 0.81% to 10,073.91), BSE Realty index (down 1.47% to 9,833.10), BSE IT index (down 0.14% to 3,967.40), BSE FMCG index (down 0.05% to 2,253.95) underperformed Sensex.

BSE PSU index (up 0.33% to 8,499.34) , BSE Power index (up 0.38% to 3,748.11), BSE HealthCare index (up 1.7% to 3,925.75), BSE Capital Goods index (up 0.56% to 16,598.88) BSE Auto index (up 1.18% to 4,829.86) and BSE Metal index (up 1.98% to 16,972.01) outperformed Sensex.

The market breadth was weak: on BSE 1452 declined as compared to 1,269 that advanced. 41 stocks remained unchanged.

India's largest engineering & construction firm by revenue Larsen & Toubro rose 0.28% to Rs 3,641.20. It recovered from its lows of Rs 3,600.

India's largest private sector firm by market capitalization and oil refiner Reliance Industries declined 1.97% at Rs 2,536.70. The company said on Tuesday, 26 January 2008 it had discovered more gas in an exploration block off India's east coast.

Realty stocks fell. India's largest real estate player by market cap DLF declined 2.37% to Rs 805.35. DLF will reportedly invest about $5 billion or Rs 20,000 crore to build and operate more than 25,000 hotel rooms in the next 7-8 years. The New Delhi-based real estate major is also in talks to set up nine super luxury hotels across India, the reports added. Indiabulls Real Estate (down 1.02% to Rs 647.30) and Unitech (down 1.56% to Rs 376.45) edged lower.

Auto stocks rose. Hero Honda Motors (up 3.73% to Rs 747.30), Mahindra & Mahindra (up 3.26% to Rs 680.15), Bajaj Auto (up 3.61% to Rs 2,255) and Maruti Suzuki India (up 0.34% to Rs 834.95) edged higher. India's largest truck maker by sales Tata Motors rose 0.4% to Rs 710.25.

Metal stocks rose. Sterlite Industries (up 3.93% to Rs 853.70), Steel Authority of India (up 3.88% to Rs 252.80) and Tata Steel (up 1.56% to Rs 823.70) edged higher.

Healthcare stocks edged higher. Cipla rose 2.23% to Rs 206.05 and Ranbaxy Laboratories rose 1.88% at Rs 444.55.

NTPC, India's biggest power generation firm by revenue, rose 0.79% to Rs 203.95. NTPC has signed a loan agreement for 68.56 million euros with Nordic Investment Bank to part fund its capital expenditure. The 12-year loan carries a floating interest rate linked to EURIBOR, and is without a sovereign guarantee, the company said after market hours on Wednesday, 27 February 2008.

HDFC (up 3.39% to Rs 2,775.35) and Bharat Heavy Electricals (up 2.68% to Rs 2,323.60) edged higher from the Sensex pack.

Ambuja Cements (down 1.38% to Rs 121.20) and Reliance Energy (down 1.88% to Rs 1,600.70) edged lower from the Sensex pack.

Tulsi Extrusions clocked highest volume of 1.27 crore shares on BSE. Reliance Natural Resources (1.09 crore shares), Nagarjuna Fertilisers and Chemicals (1.07 crore shares), Ispat Industries (80.83 lakh shares) and Centurion Bank of Punjab (76.62 lakh shares) were other vlume toppers in that order.

OnMobile Global clocked highest turnover of Rs 271.36 crore on BSE. Reliance Capital (Rs 186.13 crore), Reliance Industries (Rs 149.63 crore), Reliance Energy (Rs 147.68 crore) and Reliance Natural Resources (Rs 146.13 crore) were other turnover toppers in that order.

As per provisional data on NSE.Foreign institutional investoes (FIIs) sold shares worth Rs 809.1 crore today, 28 February 2008 . Domestic funds bought shares worth Rs 732.38 crore.

With general elections due in 2009, Union Budget 2008-09 to be presented on 29 February 2008 will be the last full-fledged budget of the Congress-led United Progressive Alliance government and it is therefore likely to be a populist budget. Thus, the Finance Minister (FM) is likely to provide higher allocations to several social initiatives like rural upliftment, employment, education, agricultural growth and public health.

Though populist measures will dominate the budget, FM is also expected to take steps to stimulate investment and consumption demand at a time when the economy is witnessing moderation from a solid growth last year. A reduction in personal income tax, if any, will result in increase in disposable incomes which in turn may boost demand for consumer goods.

Expectations are that the corporate income tax rate may be cut or the 10% surcharge on corporate tax may be abolished. The surcharge is 10% on a tax rate of 30%, making the effective corporate tax rate 33%. Another possibility is that of a cut in dividend distribution tax from 15% to 12.5%.

Meanwhile, FM may raise the Securities Transaction Tax (STT) slightly. STT is currently at 0.125% on delivery trades. STT is 0.025% on non-delivery trades on sell transactions. STT is 0.017 % in futures & options segment on sell trasactions.

It is also expected that the FM would announce some relief packages for troubled export sensitive sectors like textiles, rubber, jewelry, leather and IT services. These sectors have been hit by rupee's surge in the past one year.

European markets were subdued. France's CAC 40, Germany's DAX and UK's FTSE 100 were down by between 0.97% to 1.11%.

Asian markets were mixed today. Key benchmark indices in Hong Kong, and Singapore, were up by between 0.44% to 0.89%. Key benchmark indices in Japan, South Korea ,China were down by between 0.75% to 1.13%. Financial markets in Taiwan are closed for a holiday.

US stocks were little changed on Wednesday after a rally fizzled when doubts emerged that lifting investment caps on the two largest home financing companies was enough to prevent deeper damage to the housing market. The Dow Jones industrial average was up 9.36 points, or 0.07%, at 12,694.28. The Standard & Poor's 500 Index was down 1.27 points, or 0.09%, at 1,380.02. The Nasdaq Composite Index was up 8.79 points, or 0.37%, at 2,353.78.

Federal Reserve Chairman Ben Bernanke on Wednesday signaled a readiness to cut interest rates again to prevent further damage to the weak US economy, even as he took note of rising inflation risks. Delivering the Fed's semiannual report on the economy to Congress, Bernanke made clear the central bank was worried a deepening housing slump, softening jobs market and tighter credit could dim an already bleak economic outlook

Market Close : Bad cues from Europe... eats up gain

Markets opened in green and continued to trade higher 200 points the first half of the day with supportive global cues from US & Asian markets but could not maintain the momentum in late trade and slipped sharply on the back weak cues from the European markets. Value buying was seen in sectors like capital goods, metal, power, banking and Pharma space. While IT and FMCG stocks remained subdued for most part of the day. Airlines counter ended mixed ahead of Crude prices hit a record high of $102.08/bbl. Midcaps and smallcap indices also performed well in line with frontline counters. Market witnessed some sort of cautions approach as FnO expiry tomorrow. In Mid session markets sliped from the day's high on nervousness in European market on account of uncertain economic statements from U.K.'s biggest mortgage lender, HBOS which followed Indian Indices to lose the major gains to end flat with only 20 points in green. Asian indices ended in green but Europe started subdued and trading in red.

Sensex closed up by 20 points at 17825.99. It was helped up by gains in HDFC (2684.3999,+4 percent), Ranbaxy (436.35,+4 percent), BHEL (2262.8999,+4 percent), L & T (3630.95,+3 percent) and Maruti (832.1,+2 percent). Restricting the gains were Grasim (2888.6499,-5 percent), Rel Energy (1631.35,-4 percent), Satyam (437.1,-3 percent), Infosys (1617.4,-3 percent) and TCS (877.7,-2 percent).

Sugar companies based out of UP were under pressure. Supreme courts asked UP sugar mills to pay SAP at Rs 123/quintal for 2006-2007 against an appeal for Rs 110/quintal. This is negative for UP based sugar mills as they have to pay higher price for sugarcane. Against SAP of Rs 125/ qnt , UP mills had requested for cane price of Rs 110/ qnt. Bajaj Hindustan will be affected more, since it has taken less cane prices in accounting. This will reflect in next results. At current prices of sugar and the price to be paid, these mills make only marginal profits. But, global sugar prices are high and this provides some relief for sugar companies . Sugar mills outside UP follow SMP and this gives them an advantage over UP mills. We were negative on Bajaj Hindustan and Balrampur Chini the two major UP based sugar comanies and we also commented to look for a downside trade.

Paramount Communication was on 5% circuit today. the cable industry which is very much in focus has povided paramount to lead the game . Paramount is one of the leading manufacturers of Power Cables, Railway Cables and Telecom Cables. Paramount has two manufacturing units located at Dharuhera, Haryana and Khushkhera, Rajasthan. Paramount drives 85% of revenues from Power and Railway cable, 10% from Jelly Filled Telephone cables and rest 5% from Optical Fibre cable. Paramount is expanding the capacity in three phases with an investment of Rs 120 cr. Paramount acquired, AEI cables in UK one of the oldest cable manufacturing companies with a strong reputation. Paramount enjoys the acquisition synergy in terms of marketing network and good distribution in UK and helps to enter other countries also. At the current market price of Rs 34 valuations are attractive compared to its peers. We are positive on the business with long term view. Do read our note to know more.

Technically Speaking: Markets ended flat with profit booking seen in the later final hour trades. Sensex made an intra day high of 18137 and low of 17771. The breadth was in favor of Advances, as there were 1420 against 1308 Declines. Market turnover was fine at Rs 4848 Cr. Another lower top made today by Sensex. If now it goes below 17000, we can expect a target of 16300 and immediate support seen at 17650 while resistance at 18200-18500.

Post Market Commentary - Feb 27 2008

The Sensex opened with a positive gap of 177 points at 17,983 on positive cues from the Asian markets. The index touched a high of 18,137 - up 331 points from the previous close - in morning deals.

Selling emerged in mid-noon deals, and a heavy bout of selling in late trades saw the index drop to a low of 17,771 - down 366 points from the day's high.

The Sensex finally ended with a marginal gain of 20 points at 17,826.

The Nifty was down two points at 5,268.

The BSE market breadth was marginally positive - out of 2,805 stocks traded, 1,419 advanced, 1,306 declined and 80 were unchanged.

INDEX MOVERS...

Mahindra & Mahindra and HDFC gained around 4.5% each to Rs 659 and Rs 2,684, respectively.

Ranbaxy and BHEL added around 4% each to Rs 436 and Rs 2,263, respectively.

Larsen & Toubro moved up over 3% to Rs 3,631. Maruti gained 2.4% at Rs 832, and ONGC was up 1% at Rs 1,038.

...AND THE SHAKERS

Grasim slumped 5% to Rs 2,889. Reliance Energy tumbled nearly 4% to Rs 1,631.

Satyam and Infosys dropped nearly 3% each to Rs 437 and Rs 1,617, respectively. TCS slipped over 2% to Rs 878.

ACC and SBI declined 1.8% each to Rs 816 and Rs 2,083, respectively.

VALUE & VOLUME TOPPERS

Reliance led the value chart with a turnover of Rs 364.70 crore followed by OnMobile Global (Rs 311 crore), IRB Infrastructure (Rs 306.70 crore), Reliance Capital (Rs 262.50 crore) and Tulsi Extrusions (Rs 231 crore).

Ispat Industries topped the volume chart with trades of around 2.05 crore shares followed by Tulsi Extrusions (1.86 crore), IRB Infrastructure (1.53 crore), Reliance Natural Resources (1.21 crore) and Centurion Bank of Punjab (86.15 lakh).

REL, RCom, RPL February 2008 futures at discount

 Nifty February 2008 futures were at 5241.05, at a discount of 27.35 points as compared to spot closing of 5268.40.

The NSE's futures & options (F&O) segment turnover was Rs 63,256.76 crore, which was higher than Rs 56,515.69 crore on Tuesday, 26 February 2008.

Reliance Energy (REL) February 2008 futures were at discount, at 1628, compared to the spot closing of 1634.50.

Reliance Communications (RCom) February 2008 futures were at discount, at 582.75, compared to the spot closing of 585.35.

Reliance Petroleum (RPL) February 2008 futures were at discount, at 164.65, compared to the spot closing of 165.75.

In the cash market, the S&P CNX Nifty lost 1.65 points or 0.03% at 5268.40.

Market ends positive

The market was poised for another positive finish, but a late bout of selling pressure dragged the Sensex below 17,800 and halted its resurgence. On the back of firm international indices, the Sensex opened with a positive gap of 177 points at 17,983 and moved up sharply to touch the day's high of 18,137. However, the market came under a sharp bout of profit taking and was 33 points down from the yesterday's close, with the index slipping to an intra-day low of 17,772. Finally, the Sensex erased most of its losses and ended 20 points up at 17,825, while the Nifty was down two points at 5,268.

The market breadth was marginally positive. Of the 2,805 stocks traded on the Bombay Stock Exchange (BSE), 1,435 stocks advanced, 1,294 stocks declined and 76 stocks ended unchanged. On sectoral front, BSE CG index flared up by 2.37% at 16,507 and BSE HC index gained 1.22% at 3,860, while BSE Power ended marginally higher at 3,733. Other sectoral indices were down around 1% each.

Among the major losers Grasim Industries declined 5.06% at Rs2,888.56, Reliance Energy lost 3.88% at Rs1,631.35, Satyam Computer Services slumped 2.81% at Rs437.10 and Infosys was down 2.69% at Rs1,617.40. Select heavyweights attracted buying support. M&M rose 4.52% at Rs658.65, HDFC moved up by 4.27% at Rs2,684.40, Ranbaxy advanced 4.10% at Rs436.35 and BHEL gained 3.78% at Rs2,262.90.

Over 2.05 crore Ispat Industries shares changed hands on the BSE followed by Tulsi Extrusion (1.86 crore shares), IRB Infrastructure (1.53 crore shares), Central Bank of Punjab (0.86 crore shares) and Power Grid (0.85 crore shares).

Market registers marginal gains

The key benchmark indices came off higher levels in late trade and ended almost flat due to selling in IT and banking counters. European markets which opened after Indian market, fell. The market had held firm for a better part of the day on firm Asian markets. Reliance Energy declined. Grasim Industries and Infosys were major losers from Sensex pack.

Capital goods stocks were in demand. The market breadth was positive

Asian markets, which opened before Indian markets, surged after weak US economic data and comments from a Federal Reserve official signalled that US interest rates will continue to head lower. Fed Vice Chairman Donald Kohn said on Tuesday that a weak US economy was a bigger worry than higher inflation risks.

The 30-share BSE Sensex rose 19.80 points or 0.11% at 17,825.99. Sensex touched a high of 18,137.28 in mid-morning trade. At day's high, Sensex rose 331.09 points. Sensex hit a low of 17,770.65 in late trade. At the day's low, Sensex was down 35.54 points.

The broader CNX S&P Nifty ended down 1.65 points or 0.03% at 5,268.40.

BSE clocked a turnover of Rs 5859 crore today 27 February 2008 compared to a turnover of Rs 4,844.22 crore on Tuesday, 26 February 2008.

Nifty February 2008 futures were at 5241.05, at a discount of 27.35 points as compared to spot closing of 5268.40.

The NSE's futures & options (F&O) segment turnover was Rs 63,256.76 crore, which was higher than Rs 56,515.69 crore on Tuesday, 26 February 2008.

The next major trigger for the market is the Union Budget 2008-09. With general elections due in 2009, Union Budget 2008-09 to be presented on 29 February 2008 will be the last full-fledged budget of the Congress-led United Progressive Alliance government and it is therefore likely to be a populist budget. Thus, the Finance Minister (FM) is likely to provide higher allocations to several social initiatives like rural upliftment, employment, education, agricultural growth and public health.

Though populist measures will dominate the budget, FM is also expected to take steps to stimulate investment and consumption demand at a time when the economy is witnessing moderation from a solid growth last year. A reduction in personal income tax, if any, will result in increase in disposable incomes which in turn may boost demand for consumer goods.

Expectations are that the corporate income tax rate may be cut or the 10% surcharge on corporate tax may be abolished. The surcharge is 10% on a tax rate of 30%, making the effective corporate tax rate 33%. Another possibility is that of a cut in dividend distribution tax from 15% to 12.5%.

Meanwhile, FM may raise the Securities Transaction Tax (STT) slightly. STT is currently at 0.125% on delivery trades. STT is 0.025% on non-delivery trades on sell transactions. STT is 0.017 % in futures & options segment on sell trasactions.

It is also expected that the FM would announce some relief packages for troubled export sensitive sectors like textiles, rubber, jewelry, leather and IT services. These sectors have been hit by rupee's surge in the past one year.

The BSE Mid-Cap index was up 0.43% at 7,723.56, while the BSE Small-Cap was up 0.26% at 9,673.86. Both these indices outperformed Sensex.

BSE Consumer Durables index (down 0.64% to 4,834.12), , BSE Metal index (down 0.95% to 16,642.01), BSE IT index (down 2.2% to 3,973.12), BSE Bankex (down 0.32% to 10,156.52), BSE Realty index (down 0.37% to 9,979.72) underperformed Sensex.

BSE PSU index (up 0.39% to 8,471.05), BSE Oil & Gas index (up 0.4% to 11,259.92), BSE Power index (up 0.73% to 3,733.77), BSE HealthCare index (up 1.22% to 3,860.02), BSE Captal Goods index (up 2.37% to 16,506.67) BSE Auto index (up 0.57% to 4,773.34), and BSE FMCG index (up 0.19% to 2,254.98) outperformed Sensex.

The market breadth was positive: on BSE 1,433 advanced as compared to 1,300 that declined. 41 stocks remained unchanged.

IT stocks declined in late trade. Satyam Computer Services (down 2.81% to Rs 437.10), Wipro (down 0.96% to Rs 439.90), Tata Consultancy Services (down 2.24% to Rs 877.70), Infosys (down 2.69% to Rs 1,617.40) edged lower.

Banking stocks fell in late trade. ICICI Bank (down 0.38% to Rs 1,113.75), HDFC Bank (down 0.22% to Rs 1,451.75) and State Bank of India (down 1.76% to Rs 2,082.55) edged lower.

India's largest private sector firm by market capitalization and oil refiner Reliance Industries rose 0.46% at Rs 2,587.55. It came off from session's high of Rs 2,624. The company said on Tuesday, 26 January 2008 it had discovered more gas in an exploration block off India's east coast. This is the company's eight discovery in the block.

Among the top gainers from Sensex pack were Mahindra & Mahindra (up 4.52% to Rs 658.65), Housing Development Finance Corporation (HDFC) (up 4.27% to Rs 2,684.40) and Ranbaxy Laboratories (up 4.1% to Rs 436.35).

Among the Sensex losers from Sensex pack were ACC (down 2.24% to Rs 812.25), and Grasim Industries (down 5.06% to Rs 2,888.65).

India's second largest power utility firm by revenue Reliance Energy declined 3.88% to Rs 1,631.35. It came off from day's high of Rs 1,745. The company said yesterday its board will meet on 5 March 2008 to consider, buy back of equity shares of the company.

Capital goods stocks were in demand. Larsen & Toubro (up 3.2% to Rs 3,630.95), Bharat Heavy Electricals (up 3.78% to Rs 2,262.90) edged higher. However, Suzlon Energy declined 3.54% to Rs 303.70.

India's largest truckmaker by sales Tata Motors rose 0.76% to Rs 707.45. Tata Motors and Ford reportedly plan to sign a memorandum of understanding possibly on 5 March 2008 for Tata Motors' possible acquisition of Ford's luxury British brands, Jaguar and Land Rover. The complete sale of Jaguar-Land Rover to Tatas will take 6-8 weeks.

Ispat Industries clocked highest volume of 2.05 crore shares on BSE. Tulsi Extrusions (1.86 crore shares), IRB Infrastructure Developers (1.53 crore shares), Reliance Natural Resources (1.2 crore shares) and Centurion Bank of Punjab (86.15 lakh shares) were the other volume toppers in that order.

Reliance Industries clocked highest turnover of Rs 364.71 crore on BSE. OnMobile Global (Rs 310.87 crore), IRB Infrastructure Developers (Rs 306.7 crore), Reliance Capital (Rs 262.46 crore) and Tulsi Extrusions (Rs 231.1 crore) were other turnover toppers in that order.

A per provisional data on NSE,foreign institutional invstor (FIIs) purchased shares worth Rs 350.45 crore today, 27 February 2008. Domestic funds bought shares worth Rs 341.35 crore.

European shares eased after results from British mortgage lender HBOS weighed on banks, although the decline was limited by a rally in crude oil that supported energy shares. France's CAC 40, Germany's DAX and UK's FTSE 100 were down by between 0.33%-0.87%.

In Asia, the key benchmark indices in Hong Kong, China, Japan, South Korea, Singapore and Taiwan were up by between 0.69% to 2.7%.

US stocks rose for a third day on Tuesday as technology companies gained on IBM's plans to buy back $15 billion of its shares and the energy sector advanced on a record high close for oil in New York. The Dow Jones industrial average was up 114.70 points, or 0.91%, at 12,684.92. The Standard & Poor's 500 Index was up 9.49 points, or 0.69%, at 1,381.29. The Nasdaq Composite Index was up 17.51 points, or 0.75%, at 2,344.99.

On the New York Mercantile Exchange, April 2008 crude settled at a record $100.88 a barrel, up $1.65, on Tuesday.

On Tuesday, 26 Februray 2008, the market had extended Monday (25 February 2008)'s gains after Railway Minister Lalu Prasad Yadav provided thrust on modernising rail infrastructure in Railway Budget 2008-09 which he presented to parliament on that day. The 30-share BSE Sensex rose 155.62 points or 0.88% at 17,806.19. Keeping the common man in mind, the railway minister also cut passenger fares, with parliamentary elections due in 2009. Firm global markets also helped support domestic bourses.

Key Highlights - Railway Budget

Railway Minister Lalu Prasad Yadav announced his fifth Railway budget 2008-09 today (Feb 26, 2008). Key highlights of the Railway Budget are as follows:

 

> Revenue from passenger fares rose 14% in 2007-08

> In April-December, revenue from frieght services climbed 8-10% to Rs 347 billion

> Additional frieght services of Rs 20 billion

> Cash surplus of Rs 250 billion

> Operating ratio at 76%

> Dividend of Rs 88

> Railway fund balance up at Rs 204.80 billion

> Reduced fares helped to increase volumes and profits

> Productivity of railway assets have been constantly increasing

> Adopted tariff to go up market share and revenues

> To produce only stainless steel coaches from FY10

> To link train via software communications by 2009

> New coaches in all Shatabdi Trains by 2011

> To have online contol of trains in 2 years

> New coaches in all Rajdhani Trains by 2009

> Plan to spend Rs 750 bn on infrastructure over 7 years

> Stainless steel coaches likely to benefit steel companies viz. JSW Steel, Jindal Stainless,
Tata Steel, BEML, Texmaco

> 25 - 20 Tonne Axle Loads trains to be started

> Thrust on IT likely to benefit domestic software companies

> To manufacture 20,000 Wagons by FY09

> 50 new terminals planned in Mumbai, Pune, Ghaziabad

> To have new Wagon Leasing Policy

> 200 MT tariff seen from cement in 2011 - 12

> Container Corporations ( CONCOR ) to set up 8 Depots

> To have new policy for Bulk Handling Terminals

> Annual steel traffic aim at 200 million tonnes (MT) by 2011 from 120 MT now

> ETA Display in the long route trains likely to benefit MIC Electronics

> Rs 40 billions to come from real estate development in 2008-09

> Connectivity to Mundra likely to benefit Mundra SEZ, Tata power, Reliance Energy.

> Focus on increased security at railway stations

> Gangmen could become Gatemen in unmanned process

> Planning smart card based ticket system

> Senior citizen women to get a relief of 50% from 30% now

> More facilties to be provided to old and women passengers

> Plan fire prevention device in train coaches on pilot basis, it could cost Rs 70 billions if implemented fully

> CCTV, metal detectors to be installed in all railway stations

> CFL`s to be used in order to encourage power saving

> Doubling of lines to be given priority

> Coach factory to be set up in Kerala, Kerala Government has given 1000 acres land for its
development

> Railways to provide escalators at 50% of the railway stations

> Mother Child Health Express likely to be started

> Fares cut announced by Railway Minister

> Sleeper fare cut upto 5% across the board, Re 1 discount to all fares upto Rs 150

> AC I fares to cut by 7%, AC II by 4% and AC III by 3%

> Frieght on petrol and diesel cut by 5%

> Frieghtrates on FLY ASH cut by 14%

Market Wrap - Feb 26 2008

On Tuesday, BSE Sensex ended the day with a gain of 155.62 points, or 0.88%, at 17,806.19, while the broad-based NSE Nifty closed at 5,270.05, up 69.35 points, or 1.33%.

The 30-share benchmark index, Sensex, opened with a positive gap of 148.99 points at 17,799.56 mirroring buoyant global cues in the early trades. Later, the index proceeded to trade in the positive terrain on account of sustained buying activity in frontline stocks. Finally, the index closed on a firm note after touching an intraday high of 17, 860.10.

Global markets

Asian stocks advanced on Tuesday (Feb. 26, 2008) after the world`s largest bond insurers retained top credit ratings which eased concerns that the global economic growth will slow on new credit losses.

Market statistics

Out of the total 2,785 stocks traded at the BSE, 1,652 advanced, 1,074 declined while 59 remained unchanged.

Among the sectoral indices, BSE Auto rose 0.54%, Metal rose 1.64%, Power gained 2.65%, BSE Realty moved up 2.53%, IT gained 1.76%, while BSE Bankex shed 0.75%.

Movers and Shakers

Gainers at the Sensex were Grasim, which vaulted 5.06% to close at Rs 3042.70, REL and BHEL rose over 4% each to Rs 1697.25 and Rs 2180.55 respectively. Infosys, HDFC Bank, HUL, ACC, ONGC, Wipro and ICICI Bank were among the other gainers.

Laggards at the BSE Sensex include Bharti Airtel, which dropped 1.38% to end at Rs 838.80, HDFC fell 0.48% to Rs 2574.35 and Tata Motors declined 0.46% to close at Rs 702.10.

Top Turnover

Reliance Power topped the turnover chart with Rs 2,993.5 million followed by Reliance Capital with Rs 1,642.1 million.

Sail, Tata Steel, SBI February 2008 futures at discount

 Turnover in F&O segment increases

Nifty February 2008 futures were at 5259.35, at a discount of 10.7 points as compared to spot closing of 5270.05.

The NSE's futures & options (F&O) segment turnover was Rs 56,515.69 crore, which was higher than Rs 51,314.54 crore on Monday, 25 February 2008.

Steel Authority of India (Sail) February 2008 futures were at discount, at 245, compared to the spot closing of 246.60.

Tata Steel February 2008 futures were at discount, at 803.75, compared to the spot closing of 809.60.

State Bank of India (SBI) February 2008 futures were at discount, at 2115, compared to the spot closing of 2124.50.

In the cash market, the S&P CNX Nifty gained 69.35 points or 1.33% at 5270.05.

NSE Bulk Deal Watch - Feb 26 2008

 Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
26-FEB-2008,CANDC,C & C Constructions Limit,HDFC TRUSTEE CO A/C HDFC INFRASTRUCTURE FUND,BUY,676000,210.00,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,ADITI FINLEASE PVT. LTD.,BUY,135478,136.21,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,ADROIT FINANCIAL SERVICES PVT LTD,BUY,72062,135.77,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,AMBIT SECURITIES BROKING PVT. LTD.,BUY,210287,137.26,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,ANIL M PARMAR,BUY,66163,137.40,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,ASHU GUPTA,BUY,175104,139.15,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,ASHWIN STOCKS AND INVESTMENT PRIVATE LIMITED,BUY,180539,134.61,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,ASSET ALLIANCE SECURITIES PVT. LTD.,BUY,135274,136.93,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,ASTRAL FINANCE,BUY,20000,139.55,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,ASTUTE COMMODITIES & DERIVATIVES Pvt Ltd,BUY,62448,136.37,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,BHAVIN SURESH CHHEDA,BUY,141135,137.48,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,CHURIWALA SECURITIES PRIVATE LIMITED,BUY,77937,138.35,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,CPR CAPITAL SERVICES LTD.,BUY,425836,137.17,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,CREDENTIAL STOCK BROKERS LIMITED,BUY,170775,136.75,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,DEPANSU SECURITIES (INDIA) PVT LTD,BUY,197234,138.10,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,DINDAYAL BIYANI STOCK BROKERS LTD.,BUY,67478,137.73,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,DINESH MUNJAL,BUY,586288,138.14,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,FIN BRAINS SECURITIES (INDIA) LTD.,BUY,260934,135.27,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,G RAMAKRISHNA,BUY,83000,140.42,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,HARBUX SINGH SIDHU,BUY,673702,140.05,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,INDU MAHENDRA SHAH,BUY,86368,139.93,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,JAIN LALITKUMAR C,BUY,84996,137.77,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,JIGNESH ENTERPRISES,BUY,85135,135.06,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,KAKANI OMPRAKASH,BUY,395604,137.99,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,KHANDWALA TRADELINK CO,BUY,170835,139.79,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,KIRTIKUMAR KANTILAL SHAH,BUY,100000,138.75,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,LATIN MANHARLAL SECURITIES PVT. LTD.,BUY,234269,138.18,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,MAHENDRA DHANJI CHHEDA,BUY,265433,136.77,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,MANISH VRAJLAL SARVAIYA,BUY,213960,136.85,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,MUKESH BROKERAGE & FINANCIAL (INDIA) LTD.,BUY,73858,136.82,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,NARENDRAKUMAR CHORDIA,BUY,141074,139.69,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,NEERU BANSAL,BUY,238128,139.11,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,NISSAR BROTHERS,BUY,178628,135.62,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,P RAMESH CHANDRA,BUY,65461,136.43,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,PAVAN JAIN (HUF),BUY,106955,137.12,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,PRASHANT JAYANTILAL PATEL,BUY,220807,137.06,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,PRAVIN JUMKHALAL SHAH,BUY,300301,138.17,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,PUJA TAPARIA,BUY,75000,139.96,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,R APPALA RAJU,BUY,220000,137.92,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,R.M. SHARE TRADING PVT LTD,BUY,514960,136.84,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,RADHIKA DIPAN MEHTA,BUY,108244,135.68,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,RUPESH KIRIT DALAL,BUY,369803,139.50,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,S SIVAKUMAR,BUY,174101,139.90,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,SANJAY BHANWARLAL JAIN,BUY,593160,138.70,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,SATYA FINANCIAL SERVICES PROP ADARSH KUMAR AGGARWAL,BUY,72000,134.68,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,SHAH HEMANG DINESH,BUY,437303,139.04,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,SHANTANU GUPTA,BUY,70000,139.44,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,SHETH BROTHERS,BUY,123083,139.32,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,SUNIL PANDURANG MANTRI,BUY,123311,137.57,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,TRANSGLOBAL SECURITIES LTD.,BUY,1030186,137.62,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,VELBAI KHIMJI CHHEDA,BUY,465327,139.09,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,VIJAY KUMAR RAMAVAT,BUY,367803,136.48,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,VIMALA.S.,BUY,64321,141.65,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,VIMESHDOSHI,BUY,96373,138.51,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,VIREN RAMNIKLAL KENIA,BUY,105560,139.79,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,YES INVESTMENTS VISHAL KISHORE BHATIA,BUY,185000,136.95,-
26-FEB-2008,CANDC,C & C Constructions Limit,ADVANTAGE ADVISORS BLACKSTONE ASIA ADVISORS,SELL,676365,210.00,-
26-FEB-2008,SAKHTISUG,Sakthi Sugars Ltd.,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,SELL,225000,78.09,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,ADITI FINLEASE PVT. LTD.,SELL,137478,136.53,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,ADROIT FINANCIAL SERVICES PVT LTD,SELL,72062,135.82,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,AMBIT SECURITIES BROKING PVT. LTD.,SELL,215287,137.00,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,ANAND YOGESH SHARES AND CONSULTANCY PVT LTD,SELL,215596,138.89,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,ANIL M PARMAR,SELL,66163,137.27,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,ASHU GUPTA,SELL,175104,139.22,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,ASHWIN STOCKS AND INVESTMENT PRIVATE LIMITED,SELL,180539,135.93,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,ASSET ALLIANCE SECURITIES PVT. LTD.,SELL,135274,137.42,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,ASTRAL FINANCE,SELL,70000,129.07,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,ASTUTE COMMODITIES & DERIVATIVES Pvt Ltd,SELL,70948,136.15,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,BHAVIN SURESH CHHEDA,SELL,141135,137.63,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,CHURIWALA SECURITIES PRIVATE LIMITED,SELL,77937,138.28,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,CPR CAPITAL SERVICES LTD.,SELL,425836,137.28,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,CREDENTIAL STOCK BROKERS LIMITED,SELL,170775,136.90,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,DEPANSU SECURITIES (INDIA) PVT LTD,SELL,197234,138.16,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,DINDAYAL BIYANI STOCK BROKERS LTD.,SELL,67478,138.78,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,DINESH MUNJAL,SELL,586288,138.34,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,FIN BRAINS SECURITIES (INDIA) LTD.,SELL,260934,135.55,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,G RAMAKRISHNA,SELL,83000,139.74,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,HARBUX SINGH SIDHU,SELL,673702,140.07,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,INDU MAHENDRA SHAH,SELL,86368,140.03,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,JAIN LALITKUMAR C,SELL,84996,137.98,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,JIGNESH ENTERPRISES,SELL,85135,135.24,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,KAKANI OMPRAKASH,SELL,395604,138.24,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,KHANDWALA TRADELINK CO,SELL,170835,139.66,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,LATIN MANHARLAL SECURITIES PVT. LTD.,SELL,237269,138.26,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,MAHENDRA DHANJI CHHEDA,SELL,271007,136.96,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,MANISH VRAJLAL SARVAIYA,SELL,213960,137.16,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,MUKESH BROKERAGE & FINANCIAL (INDIA) LTD.,SELL,73858,137.01,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,NARENDRAKUMAR CHORDIA,SELL,142074,140.06,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,NEERU BANSAL,SELL,238128,139.07,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,NISSAR BROTHERS,SELL,178628,135.77,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,P RAMESH CHANDRA,SELL,65461,136.56,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,PAVAN JAIN (HUF),SELL,106955,137.21,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,PRASHANT JAYANTILAL PATEL,SELL,220807,137.17,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,PRAVIN JUMKHALAL SHAH,SELL,301801,138.29,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,PUJA TAPARIA,SELL,75000,140.76,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,R APPALA RAJU,SELL,220000,137.46,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,R.M. SHARE TRADING PVT LTD,SELL,514960,137.06,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,RADHIKA DIPAN MEHTA,SELL,108244,135.99,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,RUPESH KIRIT DALAL,SELL,369803,139.92,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,S SIVAKUMAR,SELL,174101,140.43,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,SANJAY BHANWARLAL JAIN,SELL,593160,138.81,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,SATYA FINANCIAL SERVICES PROP ADARSH KUMAR AGGARWAL,SELL,72000,135.00,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,SHAH HEMANG DINESH,SELL,437303,139.06,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,SHANTANU GUPTA,SELL,70000,134.79,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,SHETH BROTHERS,SELL,118083,139.72,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,SUNIL PANDURANG MANTRI,SELL,123311,137.50,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,TRANSGLOBAL SECURITIES LTD.,SELL,1030190,137.73,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,VELBAI KHIMJI CHHEDA,SELL,471737,139.12,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,VIJAY KUMAR RAMAVAT,SELL,377118,137.12,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,VIMALA.S.,SELL,64321,140.70,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,VIMESHDOSHI,SELL,96373,138.85,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,VIREN RAMNIKLAL KENIA,SELL,105560,139.44,-
26-FEB-2008,TULSI,Tulsi Extrusions Limited,YES INVESTMENTS VISHAL KISHORE BHATIA,SELL,185000,139.36,-