Friday, April 4, 2008

Market may remain volatile

The market may witness cautious trend as US indices ended on a flat note yesterday and Asian indices are exhibiting upward trends in morning trades. Although the bias remains positive, investors should maintain caution as profit-taking at higher levels may pull down the market. Among the local indices the Nifty could test 4740 and 4660 on the downside while on the upper side it may move up to 4840. The Sensex has a likely support at 15700 and may face resistance at 16000.

US indices finished on a flate note on Tuesday. While the Dow Jones ended in positive at 12626 advanced by 20 points, the Nasdaq up by 2 points at 2363.

Indian floats trading on the US bourses were traded mixed. Satyam was the lead performer and soared 4.21% while infosys VSNL over 4%. Infosys, Dr Reddy, MTNL and Patni Computer gained nearly 1% each. However, Wipro, Tata Motors, ICICI Bank, HDFC Bank, and Rediff ended with steady losses.

Crude oil prices inched higher in the US market, with the Nymex light crude oil for May 08 delivery moved down $1 to close at $103.83 a barrel. In the commodity space, the Comex gold for June series gained $9.50 to settle at $909.70.

Pre Market Watch - Apr 4 2008

The Indian Market is likely to have a positive opening today as the US market closed in green. On Thursday, the Indian market closed in the positive territory on a volatile trading session. Tracking the favoring cues from the Asian markets, the domestic market opened on a firm note but was unable to sustain at higher levels as the profit booking prevails. However, buying the lower levels towards the final trading hours of the session led the market to close on a positive note. From the sectoral front, the oil & gas and IT remained in the limelight as most buying was seen from these baskets while Capital goods stocks remained out of favor. The BSE Sensex closed higher by 82.15 points at 15,832.55 and NSE Nifty closed up by 17.4 points at 4,771.60. We expect that the market may remain range bound during the trading session and the declaration of inflation figures by the government will give further directions to the market.

On Thursday, the US market closed in green. The Dow Jones Industrial Average (DJIA) closed higher by 20.20 points at 12,626.03 along with S&P 500 (SPX) index grew marginally by 1.78 points to close at 1,369.31 and NASDAQ Composite (RIXF) closed up by 1.90 points at 2,363.30.

The Indian ADRs closed mixed. In technology sector, Satyam grew by (4.21%) along with Patni Computers by 1.07% and Infosys by 0.65% while Wipro fell by (2.02%). In banking sector, HDFC bank and ICICI bank dropped by (1.75%) and (0.13%) respectively. In telecommunication sector, Tata Communications and MTNL grew by (4%) and (1.96%) respectively. Sterlite industries increased by (1.71%).

Today the major stock markets in Asia are trading lower. Japan's Nikkei is trading lower by 90.92 points at 13,298.98 long with Taiwan Weighted trading down by 8.98 points at 5,596.34.

The FIIs on Thursday stood as net seller in equity. The gross equity purchased was Rs2,898.60 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs2,918.70 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was (Rs20.20 Crore) and net debt was Rs0.00 Crore.

Today, Nifty has support at 4,628 and resistance at 4,879 and BSE Sensex has support at 15,346 and resistance at 16,183.

Hard to say!

The only thing that overcomes hard luck is hard work.

After a bad start to the week, when the Sensex fell by over 700 points, the market has been quite dull amid lower volume. No amount of hard work can bring the bulls back unless there is hard cash which flows into the market. Anxiety ahead of corporate results coupled with the seemingly unfriendly STT regime and the imposition of margins on FIIs' cash trades have hurt sentiment. To add to the woes, inflation has shot up to a 13-month high, prompting a desperate government to press the panic button.

Today, we expect the key indices to open on a cautious to flat note given the mixed global cues. Later on, the sentiment will hinge on weekly inflation numbers which will be released at noon. In the US, the event to watch out for is the release of the monthly jobs report today.

The Congress-led coalition government has unleashed a string of steps (not the most prudent ones though) to check inflation. The fight against spiraling prices is starting to hurt India Inc, with the Government calling for steel companies to roll back recent price hikes. According to a latest newspaper report, it is now contemplating price controls if the recently announced measures do not bear fruit. A further tightening of monetary policy is also on the cards.

The Finance Minister has signaled that the Government is prepared to sacrifice a little bit of growth to moderate inflation. These developments do not auger well for the Indian economy and corporates, which are already grappling with economic slowdown, global uncertainties and turmoil in financial markets. FII flows too have been quite unpredictable. Against this backdrop, we see the market remaining rangebound and choppy over the next few weeks.

FIIs were net sellers of Rs3.9bn (provisional) in the cash segment yesterday while local institutions poured in Rs2.65bn. In the F&O segment, foreign funds were net buyers of Rs1.32bn yesterday. On Wednesday, they were net sellers of Rs202mn in the cash segment. Mutual Funds were net buyers of Rs1.28bn in the cash segment on the same day.

Asian markets are trading mostly down this morning, falling for the first time in three days, led by technology companies and automakers. The Nikkei in Tokyo was down 80 points at 13,298 while the Kospi in Seoul was flat at 1760 and the Straits Times in Singapore shed 13 points to 3158.

The MSCI Asia Pacific Index fell 0.6% to 144.45 as of 9:52 a.m. in Tokyo, ending a two-day, 4.8% rally. The benchmark gained 1.9% this week and is on course for its first back-to-back weekly advance since the period ended Dec. 7.

Markets in China, Hong Kong and Taiwan are shut for holidays today.

US stocks closed almost unchanged on Thursday as investors absorbed mixed economic data and congressional testimony on the Bear Stearns bailout. However, gains were tempered by nervousness ahead of Friday's monthly jobs report.

A rally in commodity producers and Merrill Lynch's assurance that it has enough capital to combat the ongoing credit crunch overshadowed growing jobless claims and loan delinquencies.

Merrill Lynch, the third-largest securities firm, helped financial shares rebound from a 1.4% drop after CEO John Thain told Japan's Nikkei newspaper that the company won't need to raise capital.

Monsanto, the biggest seed producer, advanced the most in a week as corn prices climbed to a record. Retail shares posted the biggest decline among 24 industries in the Standard & Poor's 500 Index, led by Amazon.com and Best Buy.

The S&P 500 ended virtually flat at 1,369.31. The Dow Jones Industrial Average gained 20 points, or 0.2%, to 12,626.03. The Nasdaq Composite Index too finished nearly static at 2,363.3.

Market breadth was mixed. On the New York Stock Exchange, 998 stocks advanced and 859 retreated.

US stocks slipped in early afternoon after a jump in weekly jobless claims sparked worries about rising unemployment. However, stocks recovered later after the release of a stronger-than-expected reading on the services sector and the senate testimony on Bear Stearns.

Although gains on the day were limited, the fact that stocks have managed to hold on to most of Tuesday's advance - when the Dow jumped 391 points - is a positive sign, according to some Wall Street watchers.

US light crude oil for May delivery fell US$1 to settle at US$103.83 a barrel on the New York Mercantile Exchange. Gas prices rose to a new record high of US$3.289 a gallon, the AAA reported. COMEX gold for April delivery rose US$9.80 to settle at US$905 an ounce.

The dollar rose versus the euro and the yen. Treasury prices rose, lowering the yield on the benchmark 10-year note to 3.58% from 3.6% late on Wednesday.

CEOs of both JP Morgan and Bear Stearns, Fed chief Ben Bernanke and other regulators told Senate lawmakers that the Bear Stearns rescue prevented what could have been a disaster for the US financial system and the US economy.

US indices had slumped on Wednesday after Bernanke told Congress that the US economy might be in recession for the first half of the year. Investors remained nervous as Bernanke and regulators answered questions on why the Fed intervened to prevent the collapse of Bear Stearns.

In the day's economic news, the number of Americans filing new claims for unemployment surged last week to the highest level since September 2005. The Institute for Supply Management (ISM) services sector index rose to 49.6 in March from 49.3 in February, beating forecasts for a decline to 48.5. Earlier this week, the ISM manufacturing index also beat estimates.

UBS downgraded Cisco Systems to "neutral" from "buy," saying the company's orders are set to slow in its fiscal fourth-quarter that ends in July. Cisco shares fell nearly 3%.

Research in Motion (RIM) reported earnings that more than doubled from a year ago and topped estimates. The BlackBerry maker also said current-quarter profit will top previous estimates. Its shares climbed almost 6%.

Micron Technology jumped 6.3% after Goldman Sachs upgraded it to "buy" from "neutral," saying its a good value relative to earnings. The company reported a wider quarterly loss late on Wednesday.

Schering-Plough said it will cut 10% of its workforce as part of its plan to reduce overall costs by about $1.5bn a year. The stock has been hit hard in recent days after US regulators questioned the effectiveness of the company's top cholesterol drugs. Schering-Plough shares jumped 11%.

Financial-services firms and automakers pulled European shares down. The pan-European Dow Jones Stoxx 600 index lost 0.5% to trade at 317.97, as banks broke their two-session winning streak and autos declined for the second straight session.

The UK's FTSE 100 was down 0.4% at 5,891.30, while Germany's DAX 30 dropped 0.5% to 6,741.72 and the French CAC-40 fell 0.5% to 4,887.87.

In the emerging markets, the Bovespa in Brazil rose 1.3% to 64,175 while the IPC index in Mexico was up 0.7% at 31,689. The RTS index in Russia shed 0.8% to 2052 and the ISE National 30 index in Turkey slumped 2.4% to 49,945.

Market may remain lackluster

It was third straight day of gains on the Indian bourses however gains were a bit modest. After almost a flat start to the session markets gained momentum as benchmark Sensex hit an intra-day high of 16,002 after government announced that India's production at 6 key Industries grew 8.7% in February from a year earlier.

However, weak cues from the European markets coupled with profit booking in the index Power & Capital Good stocks dragged the benchmark Sensex to close almost flat at 15,805 modestly adding 82 points and Nifty index added 14 points to close at 4,771. Among the 50-Nifty 26 stocks ended in positive territory and 24 stocks ended in red.

Overall about 1,215 stocks advanced; 1,409 stocks declined while 63 stocks remained unchanged. Among the BSE Sectoral indices, the BSE IT index (up 3.3%), BSE Oil & Gas index (up 2%) and BSE FMCG index (up 1.1%). Among the losers, BSE Power index (down 2.6%) and BSE Capital Good index (down 2.1%).

TCS surged by over a 4 percent to Rs885. According to media reports, TCS is going to invest Rs9bn in Pune, thus, creating a capacity for 20,000 seats over the next three years. The scrip touched an intra-day high of Rs866 and a low of Rs831 and recorded volumes of over 1,00,000 shares on BSE.

Moser Baer surged by over 2% to Rs161 after the company's subsidiary Moser Baer Photo Voltaic Ltd (MBPV) signed an agreement with China based LDK Solar for sale and delivery of high quality multicrystalline silicon wafers to MBPV over a ten-year period commencing in mid-2008 through 2017. The scrip touched an intra-day high of Rs167 and a low of Rs158 and recorded volumes of over 2,00,000 shares on BSE.

Zensar Technologies reached Rs117 with an increase of over a percent following reports stating that the company is targeting over 10% of revenues from West Asia and South Africa. The scrip touched an intra-day high of Rs117 and a low of Rs115 and recorded volumes of over 5,000 shares on BSE.

Reliance Industries gained by 2.1% to Rs2393 as according to media reports the company would spend Rs300bn on semiconductor facilities. The company said that it would make the investment over 10 years. The scrip touched an intra-day high of Rs2415 and a low of Rs2344 and recorded volumes of over 8,00,000 shares on BSE.

NTPC was directionless at Rs194. According to reports, the company plans to enter into captive power generation and retail distribution in the upcoming SEZs. It has signed a JV with a state entity in Uttar Pradesh to set-up a 1,320 MW power plant. The scrip touched an intra-day high of Rs197 and a low of Rs192 and recorded volumes of over 10, 00, 000 shares on BSE.

Suzlon Energy fallen by a huge 5 percent to Rs271 as reports stated on Thursday morning that the company's January-March results may see a hit due to company's forex exposure. The scrip touched an intra-day high of Rs286 and a low of Rs267 and recorded volumes of over 41, 00, 000 shares on BSE.

GMR Infra dropped by over 3% to Rs143. The company plans to raise US$3bn over the next 4-5 years to fund expansion of power projects, reports stated. The scrip touched an intra-day high of Rs148 and a low of Rs142 and recorded volumes of over 10,00,000 shares on BSE.

BHEL declined by over 5% to Rs1754 after the company reported the smallest quarterly profit growth in six years. Net income fell 7.4% to Rs10.65bn in the fiscal fourth quarter ended March 31, from Rs11.5bn a year earlier. The company later in the day announced that it would raise research spend to Rs9bn by 2011-12. The scrip touched an intra-day high of Rs1888 and a low of Rs1701 and recorded volumes of over 12,00,000 shares on BSE.

Dr Reddy's Lab advanced by 2.6% to Rs618 after the company announced that it acquired Jet Generici Sri, a Company engaged in the sale of generic finished dosages in Italy. The deal has been completed via Dr Reddy's Italian subsidiary, Reddy Pharma Italia SpA, which has been engaged in building a pipeline of registrations since its incorporation.

The scrip touched an intra-day high of Rs630 and a low of Rs595 and recorded volumes of over 48,000 shares on BSE.

Ranbaxy edged higher by 0.3% to Rs446. The company said that it launched world's first Bio-generic recombinant. The scrip touched an intra-day high of Rs451 and a low of Rs441 and recorded volumes of over 81,00,000 shares on BSE.

Orchid Chemical surged by over 10% to Rs175 on back of huge volumes. The scrip touched an intra-day high of Rs179 and a low of Rs156 and recorded volumes of over 73,00,000 shares on BSE.

With constantly drying volumes and credit crisis still hovering around markets may continue to remain dull on Friday. No major breakout is expected till things start to stabilise, both locally as well as globally. Stick to the large caps as you build your portfolio.

Corporate News

The Reserve Bank of India (RBI) has allowed FIIs to undertake fresh buying in equity shares of Vijaya Bank. The central bank says that the overseas investment limit for Vijaya Bank has gone below the trigger limit of 20% of their paid up capital.

Steel producers, including Tata Steel and Rashtriya Ispat Nigam agree to cut prices by Rs2,000/MT on long products. (BS)

Reliance Industries submits Rs300bn proposal to government for setting up two semi conductor units. (FE)

Cummins India to invest Rs2bn in current fiscal to expand capacities for producing automotive and industrial engines. (BS)

Reliance Industries on the look out to buy global oil terminals. (DNA)

Jet Airways to sell 5-10% stake through a private placement. (FE)

Videocon Telecom arm is in talks with Deutsche Telekom, Orascom and AT&T to form a Joint Venture. (ET)

Cairn India may foray into city gas distribution in collaboration with GAIL. (BL)

Apollo Hospitals plans to increase capacity to 10,000 beds in the next two years; to invest Rs3.8bn. (BS)

Aditya Birla group cement sales increase 2.8% in March to 3mn tons. (BL)

GSPC may raise US$1.5bn via IPO to fund its KG gas basin plan. (ET)

Tata Motors gets Thailand government approval to manufacture 'eco cars' at an investment of Rs10bn. (Mint)

BHEL plans to supply 1,000 railway locomotives for Dedicated Freight Corridor project in partnership with global firms. (Mint)

Dr Reddy's buys Italian generics firm Jet Generici. (BL)

AV Birla Retail plans to roll out 10 hypermarts this year. (FE)

Ranbaxy Laboratories announces launch of BONISTA– Teriparadite an injection for treatment of osteoporosis. (FE)

Adani Power plans to expand capacity by 10,000MW. (DNA)

M&M decides to set up its own plant in Chennai. (BS)

Shyam Telelink-Sistema JV get start up spectrum in seven states to rollout CDMA services. (DNA)

Garware Offshore plans to buy five new vessels over the next one year. (BL)

NHPC plans an IPO in the second quarter of current fiscal; plans to add 4,000MW capacity by 2012. (BS)

AV Birla is planning to foray into financial services through a separate holding company. (ET)

Kingfisher-Deccan has been asked by aviation ministry to prune there international flight list. (TOI)

Economy News

The index of six core infrastructure industries grew by 8.7% in February against 7.6% a year ago. (BS)

Insurance regulator IRDA allows insurance companies to lend shares to foreign and domestic institutions. (Mint)

Steel companies are likely to cut prices to spare curbs on current export commitment of the company. (FE)

The Government may ban futures trading on food items like edible oil and potato to lower inflation. (FE)

The Reserve Bank of India hikes cap on abroad investment by mutual fund to US$7bn. (FE)

Direct tax collection crosses Rs3,000bn for 2007-08. (FE)

SEBI allows direct market access to institutional investor. (FE)

Petroleum minister seeks zero custom duty on crude oil. (FE)

The Government weighs price cap on key items to curb inflation. (ET)

The MRTPC has ordered an inquiry to find cartelization by GSM players to distort competition. (ET)

The Government surplus with RBI rises to Rs820bn. (ET)

Tata Motors, BHEL

Bharat Heavy Electricals
Cluster: Apple Green
Recommendation: Buy
Price target: Rs2,845
Current market price: Rs1,753

FY2008 performance below expectations

Key highlights

  • Bharat Heavy Electricals Ltd (BHEL) has announced provisional numbers for FY2008, reporting a growth of 15.3% year on year (yoy) in its turnover to Rs21,608 crore. The net profit has been up 16.6% yoy to Rs2,815 crore as against Rs2,415 crore in FY2007. The growth has been below our and street expectations.
  • Deriving Q4FY2008 from the provisional numbers, the revenue (gross) has reported a growth of 6.5% yoy to Rs8,070.2 crore, while the net profit has declined by 7.3% to Rs1,066.4 crore.
  • In our view, slower than expected execution rate and project specific delays could be the possible reasons for the lower-than-expected growth in the top line.
  • Order inflows continue to be strong during FY2008 with a 41% increase to Rs50,265 crore. The order backlog at Rs85,500 crore is at a record high and the company has the largest order book among the Indian companies.
  • During the quarter the company has made provision for a 40% increase in employee wage to take into account the Sixth Pay Commission's proposals. The company has also made provisions for contractual obligation, consequently impacting the margins in Q4FY2008.
  • On the super critical power plant front, the company has won order for the National Thermal Power Corporation's Barh-II project (2x660MW), while the equipment for the Tamil Nadu Electricity Board (TNEB) project (2x800MW) would also be supplied by BHEL as it would be holding a 26% stake in the joint venture company between TNEB and BHEL. The company has also bid for the Andhra Pradesh Power Generation Corporation project.
  • The company has brought on stream additional 4,000MW of capacity during January 2008 taking the total production capacity to 10,000MW. Further, 5,000MW of additional capacity would be bought on stream by the end of CY2009. Additional capacity coupled with strong order book of Rs85,500 crore (3.9x FY2008 revenues) should aid strong revenue and profit growth for BHEL going forward. Currently, we are maintaining our estimates for FY2009 and FY2010 awaiting further clarity. We reiterate our Buy recommendation and at the current market price the stock is discounting it FY2009E and FY2010E earnings by 20.9x and 15.4x respectively.

Tata Motors
Cluster: Apple Green
Recommendation: Hold
Price target: Rs792
Current market price: Rs629

Conference call highlights
In a post Jagaur-Land Rover acquisition conference call, the management of Tata Motors discussed some of the details of the deal along with the future product pipeline of both the brands. The key highlights of the conference call are presented.

Crude softens partly

 Prices drop by a dollar as recession fears lingers

Crude prices fell today, Thursday, 03 April, 2008 as dollar lost steam after certain data related to the job sector pointed out that US might have already hit a recession thereby questioning the crude demand in the coming months.

Crude-oil futures for light sweet crude for May delivery closed at $103.83/barrel (lower by $1/barrel or 1%) on the New York Mercantile Exchange. Prices earlier fell by to $100.44 and rose to a high of $106.5 during intraday trading. Crude prices are 61% higher on a yearly basis. For the year, crude is up by 10% till date. It touched a high of $111.8 on 17 March, 2008 but has slipped thereafter.

In the currency market today, the dollar slipped after data showed first-time applications for state unemployment benefits rose last week to their highest level since mid-September 2005, boding poorly for monthly data scheduled to be released tomorrow. The dollar index, which measures the greenback against a basket of currencies, was at down at 72.164 as against previous day's 72.240. The dollar has slipped by 6.5% vs the euro till date this year.

As per the job report today, first-time applications for state unemployment benefits rose last week to reach 407,000, their highest level since mid-September 2005.

Yesterday, EIA reported that U.S. crude inventories rose more than expected, up 7.4 million barrels to 319.2 million barrels in the week ended 28 March against an anticipation of increase by more than 2 million barrels. Refineries operated at 82.4% of their operable capacity last week, up slightly from the previous week's 82.2%.

EIA also reported that gasoline supplies fell by 4.5 million barrels in the latest week, while distillate stocks fell by 1.6 million barrels. U.S. crude-oil imports averaged about 10.3 million barrels per day last week, up nearly 1.4 million barrels per day from the previous week.

Brent crude oil for May settlement today fell $1.2 (1.2%) to $102.52 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 inventories fall for nineteen straight weeks

Natural gas fell after separate government reports showed the economy is slowing and inventories declined less than forecast. Natural gas for May delivery fell 41.5 cents, (4.2%) to settle at $9.417 per million British thermal units. Natural gas has gained 26% so far this year.

EIA reported today that U.S. inventories of gas in storage fell for a 19th straight week. Gas in storage dropped 29 billion cubic feet in the week ended 28 March. At 1.248 trillion cubic feet, stocks were 304 billion cubic feet less than this time last year, but 6 billion cubic feet above the five-year average.

Against this backdrop, May reformulated gasoline dropped 4.93 cents to $2.7243 a gallon, and May heating oil fell 2.82 cents to $2.9228 a gallon.

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 May delivery closed at Rs 4,164/barrel, higher by Rs 50 (1.2%) against previous day's close. Natural gas for April delivery closed at Rs 381.6/mmbtu, lower by Rs 13.4/mmbtu (3.4%).

Thursday, April 3, 2008

Post Market Watch - Apr 3 2008

The 30-share index Sensex slipped after opening positive in the initial trading hours. The index again bounced back to the positive and proceeded to trade strong backed by intense buying seen in frontliners. It touched a high of 16,002.73. Gains in the Sensex were led by Reliance Industries, Infosys Technologies and Oil & Natural Gas Corp.

However, the Sensex after trading for a short period in the positive zone, could not sustained its strength and slipped into the negative to trade on a flat note. It pared most of its gains to finally close on a positive note, after touching an intraday low of 15,699.21.

The BSE Sensex ended with a gain of 82.15 points at 15,832.55, or 0.52%; while abroad-based NSE Nifty closed at 4,771.60, up 17.4 points, or 0.37%.

Global Cues

Asian shares gained on Thursday, paced by commodities stocks on rise in metal, oil, and rice & wheat prices. BHP Billiton, the world`s largest mining company and Posco, Asia`s third-largest steelmaker led gains among commodities producers.

Market statistics

Out of the total 2,687 stocks traded at the BSE, 1,215 advanced, 1,409 declined while 63 remained unchanged.

Among the sectoral indices at BSE IT surged 3.31%, BSE Oil & Gas rose 1.97%, BSE Metal rose 0.53%, while BSE Bankex declined 0.02%, BSE Auto was down 1.07% and BSE Power dipped 2.60%.



Movers and Shakers



IT companies like Satyam and Wipro, which surged over 5% each to Rs 428.05 and Rs 435.30 respectively and TCS rose 4.13% to Rs 885.95. HUL, Infosys, Hindalco, RIL, Tata Steel, Ambuja Cement, ACC, ONGC and ICICI Bank also moved up.



Losers at the BSE Sensex include BHEL, which plunged 5.27% to finish at Rs 1754.95 followed by M&M and REL, which fell over 3% each to Rs 643.75 and Rs 1189.45 respectively. Maruti, Grasim, Tata Motors, HDFC, RComm, SBI and L&T also slipped.



Top Volumes



RNRL topped the volume chart with 14.04 million shares, Ispat Industries witnessed volumes of 13.39 million shares, RPL with 11.78 million shares and Essar Oil with 8.55 million shares.


New Listing

Shares of Mumbai-based Gammon Infrastructure Projects (GIPL), an infrastructure development company, after listing at a marginal premium of 1.79%, settled at a discount of 5.30% at the NSE on concern over the valuation of the company.

Shares touched a high of Rs 185 and a low of Rs 147 during the day. It closed with a discount of Rs 8.85, or 5.30%, at Rs 158.15 as against issue price of Rs 167. Total volume of shares traded was 12,726,928 and the total turnover was Rs 2,021.8 million at the NSE.

Post Market Commentary - Apr 3 2008

The Indian market closed in the positive territory on a volatile trading session. Tracking the favoring cues from the Asian markets, the domestic market opened on a firm note but was unable to sustain at higher levels as the profit booking prevails. However, buying the lower levels towards the final trading hours of the session led the market to close on a positive note. From the sectoral front, the oil & gas and IT remained in the limelight as most buying was seen from these baskets while Capital goods stocks remained out of favor.

The BSE Sensex closed higher by 82.15 points at 15,832.55 and NSE Nifty closed up by 17.4 points at 4,771.60. The BSE Mid Caps and Small Caps closed lower by 25.74 points and 71.85 points at 6,387.23 and 7,840.29 respectively.

The market breadth was weak as 1409 stocks closed in red as against 1215 stocks that closed in green.

The Oil and Gas index surged 203.80 points at 10,531.88. Major gainers are Essar oil 5.05%, Aban Offshore 4.35%, Cairn India 3.12%, RPL 2.78%, Reliance industries 2.14%, ONGC 0.84% and Gail India 0.63%.

The Metal index closed up by 71.87 points at 13,588.76 as Hindalco inds 2.52%, Tata Steel 2.11%, Welspun Guj 1.82%, SAIL 1.07% and Sterlite industries 0.67% closed in green.

The IT index closed higher by 120.56 points at 3,764.91. Gainers are Rolta India 6.89%, Satyam 5.11%, Wipro 5.04%, TCS 4.13%, Niit Techno 2.70%, Infosys 2.68%, Patni Comp 2.25% closed in positive.

The Bankex index closed flat at 7,820.62 as Yes bank 6.33%, BOB 3.66%, Canara bank 2.34% closed in red while Oriental bank 2.45%, Federal bank 1.75%, Andhra bank 1.28% closed in green.

From the FMCG space, United SPR 4.02%, HUL 3.20%, United Breweries 3.09%, Tata Tea 2.55%, Rei Agro 1.29% and Marico 1.11% closed higher.

The Capital Goods index fell by 283.42 points to close at 13,214.73. Major losers are Bhel 5.27%, Suzlon energy 4.68%, ABB 4.36%, Thermax 3.80%, Crompton Greaves 2.50%, AIA Engineering 2.11% and Siemens 1.87%.

The BSE Realty index increased by 22.15 points to close at 7,523.32 as Akruti city 4.23%, Penland 4.07%, Phoenix mill 2.91%, Mahindra Life 1.54%, Anant Raj 0.38% and DLF 0.31% closed in positive.

NSE Bulk Deal Watch - Apr 3 2008

 Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
03-APR-2008,GSSAMERICA,GSS America Infotech Limi,AMBIT SECURITIES BROKING PVT. LTD.,BUY,71069,558.08,-
03-APR-2008,GSSAMERICA,GSS America Infotech Limi,ASTUTE COMMODITIES & DERIVATIVES Pvt Ltd,BUY,117815,557.38,-
03-APR-2008,GSSAMERICA,GSS America Infotech Limi,B K SHAH CO KETAN BHAILAL SHAH,BUY,152938,555.66,-
03-APR-2008,GSSAMERICA,GSS America Infotech Limi,CHANDARANA INTERMEDIARIES BROKERS P. LTD,BUY,140192,558.10,-
03-APR-2008,GSSAMERICA,GSS America Infotech Limi,DINESH MUNJAL,BUY,73027,566.05,-
03-APR-2008,GSSAMERICA,GSS America Infotech Limi,FIN BRAINS SECURITIES (INDIA) LTD.,BUY,83137,557.43,-
03-APR-2008,GSSAMERICA,GSS America Infotech Limi,MARWADI SHARES AND FINANCE LIMITED,BUY,112485,557.85,-
03-APR-2008,GSSAMERICA,GSS America Infotech Limi,NISSAR BROTHERS,BUY,90041,553.22,-
03-APR-2008,GSSAMERICA,GSS America Infotech Limi,R.M. SHARE TRADING PVT LTD,BUY,89871,553.28,-
03-APR-2008,IOLN,IOL Netcom Limited,DYNAMIC STCOK BROKING (I) PVT LTD,BUY,103871,92.23,-
03-APR-2008,NAVINFLUOR,Navin Fluorine Internatio,DARASHAW & COMPANY PVT. LTD.,BUY,125000,242.00,-
03-APR-2008,OILCOUNTUB,Oil Country Tubular Ltd,UNITED STEEL ALLIED INDUSTRIES PRIVATE LIMITED,BUY,500000,62.80,-
03-APR-2008,ORCHIDCHEM,Orchid Chemicals Ltd.,PRASHANT JAYANTILAL PATEL,BUY,409089,172.82,-
03-APR-2008,ORCHIDCHEM,Orchid Chemicals Ltd.,SOLREX PHARMACEUTICALS COMPANY,BUY,1202850,172.42,-
03-APR-2008,ORIENTBANK,Oriental Bank of Commerce,THE CHILDRENS INVESTMENT MASTER FUND,BUY,10521768,180.00,-
03-APR-2008,PNB,Punjab National Bank,THE CHILDRENS INVESTMENT MASTER FUND,BUY,5744875,549.00,-
03-APR-2008,SHREEASHTA,Shree Ashtavinayak Cine V,MAVI INVESTMENT FUND LIMITED (MM WARBURG BANK(SCHWEIZ)AG),BUY,102501,365.00,-
03-APR-2008,TULSI,Tulsi Extrusions Limited,ADROIT FINANCIAL SERVICES PVT LTD,BUY,112152,86.49,-
03-APR-2008,TULSI,Tulsi Extrusions Limited,ASTUTE COMMODITIES & DERIVATIVES Pvt Ltd,BUY,110659,90.49,-
03-APR-2008,TULSI,Tulsi Extrusions Limited,DEV SUMAN SINDHU,BUY,82396,84.78,-
03-APR-2008,TULSI,Tulsi Extrusions Limited,DYNAMIC STCOK BROKING (I) PVT LTD,BUY,133901,90.39,-
03-APR-2008,VISAKAIND,Visaka Industries Ltd.,G VIVEKANAND,BUY,80200,51.00,-
03-APR-2008,GSSAMERICA,GSS America Infotech Limi,AMBIT SECURITIES BROKING PVT. LTD.,SELL,71069,558.27,-
03-APR-2008,GSSAMERICA,GSS America Infotech Limi,ASTUTE COMMODITIES & DERIVATIVES Pvt Ltd,SELL,117812,557.39,-
03-APR-2008,GSSAMERICA,GSS America Infotech Limi,B K SHAH CO KETAN BHAILAL SHAH,SELL,152945,556.48,-
03-APR-2008,GSSAMERICA,GSS America Infotech Limi,CHANDARANA INTERMEDIARIES BROKERS P. LTD,SELL,140192,558.27,-
03-APR-2008,GSSAMERICA,GSS America Infotech Limi,DINESH MUNJAL,SELL,73027,565.88,-
03-APR-2008,GSSAMERICA,GSS America Infotech Limi,FIN BRAINS SECURITIES (INDIA) LTD.,SELL,83137,558.65,-
03-APR-2008,GSSAMERICA,GSS America Infotech Limi,MARWADI SHARES AND FINANCE LIMITED,SELL,112430,558.29,-
03-APR-2008,GSSAMERICA,GSS America Infotech Limi,NISSAR BROTHERS,SELL,90041,553.88,-
03-APR-2008,GSSAMERICA,GSS America Infotech Limi,R.M. SHARE TRADING PVT LTD,SELL,89871,553.78,-
03-APR-2008,IBSEC,Indiabulls Securities Lim,GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD,SELL,1926144,92.88,-
03-APR-2008,INFOMEDIA,Infomedia India Limited,L&T FINANCE LIMITED,SELL,100000,225.50,-
03-APR-2008,IOLN,IOL Netcom Limited,DYNAMIC STCOK BROKING (I) PVT LTD,SELL,136216,93.73,-
03-APR-2008,NAVINFLUOR,Navin Fluorine Internatio,LAXMI INVESTMENTS,SELL,125000,242.00,-
03-APR-2008,OILCOUNTUB,Oil Country Tubular Ltd,Rajasthali Finvest Pvt Ltd,SELL,500000,62.80,-
03-APR-2008,ORCHIDCHEM,Orchid Chemicals Ltd.,PRASHANT JAYANTILAL PATEL,SELL,409089,173.00,-
03-APR-2008,ORIENTBANK,Oriental Bank of Commerce,MORGAN STANLEY DEAN WITTER MAURITIUS CO. LTD,SELL,10521768,180.00,-
03-APR-2008,PNB,Punjab National Bank,MORGAN STANLEY DEAN WITTER MAURITIUS CO. LTD,SELL,5744875,549.00,-
03-APR-2008,SHREEASHTA,Shree Ashtavinayak Cine V,ACCURATE MERCANTILE PVT LTD,SELL,99000,365.00,-
03-APR-2008,TULSI,Tulsi Extrusions Limited,ADROIT FINANCIAL SERVICES PVT LTD,SELL,112152,86.76,-
03-APR-2008,TULSI,Tulsi Extrusions Limited,ASTUTE COMMODITIES & DERIVATIVES Pvt Ltd,SELL,92135,90.29,-
03-APR-2008,TULSI,Tulsi Extrusions Limited,DEV SUMAN SINDHU,SELL,82396,85.01,-
03-APR-2008,TULSI,Tulsi Extrusions Limited,DYNAMIC STCOK BROKING (I) PVT LTD,SELL,108991,90.03,-
03-APR-2008,VISAKAIND,Visaka Industries Ltd.,MINIVET LIMITED,SELL,80113,51.00,-

BSE Bulk Deals to Watch - Apr 3 2008

Deal Date Scrip Code Scrip Name Client Name Deal Type * Quantity Price **
3/4/2008 523850 AXTEL INDUSR NAYAN PATHAK B 51180 11.04
3/4/2008 523850 AXTEL INDUSR ANJALI PATHAK B 40000 11.04
3/4/2008 523850 AXTEL INDUSR NEERAJ KIRITKUMAR PATHAK B 40500 11.04
3/4/2008 532946 BANG MARUTI SECURITIES LTD B 100000 134.80
3/4/2008 532946 BANG CHANDRA FIN. SERV.PVT.LTD S 104038 134.72
3/4/2008 512332 BIRLA CAP AYODHYAPATI INVESTMENT PVT LTD S 58200 6.88
3/4/2008 531682 CAT TECHNOL PRABHUDAS LILLADHER PVT. LTD. B 194034 6.12
3/4/2008 531682 CAT TECHNOL SARFARAZKHAN SARVARKHAN PATHAN B 403818 6.08
3/4/2008 531682 CAT TECHNOL NEWGEN INTERNATIONAL PVT. LTD. S 200000 6.05
3/4/2008 531682 CAT TECHNOL PRABHUDAS LILLADHER PVT. LTD. S 194034 6.13
3/4/2008 531682 CAT TECHNOL SARFARAZKHAN SARVARKHAN PATHAN S 403818 6.10
3/4/2008 532413 CEREBRA INT LOKESH INDER KAPOOR B 30000 31.70
3/4/2008 526550 COUNTRY CLUB DEUTSCHE SECURITIES MAURITIUS LIMITED B 102000 610.00
3/4/2008 526550 COUNTRY CLUB DEUTSCHE BANK AG LONDON GDR ACCOUNT S 102000 610.00
3/4/2008 532271 CYBERMAT INF SARFARAZKHAN SARVARKHAN PATHAN B 519221 6.16
3/4/2008 532271 CYBERMAT INF SARFARAZKHAN SARVARKHAN PATHAN S 518704 6.05
3/4/2008 532951 GSS AMERICA CHANDARANA INTERMEDIARIES BROKERS P. LTD B 119182 554.56
3/4/2008 532951 GSS AMERICA MARWADI SHARES AND FINANCE LIMITED B 123265 556.57
3/4/2008 532951 GSS AMERICA N D NISSAR B 66823 551.14
3/4/2008 532951 GSS AMERICA B K SHAH CO B 147492 555.96
3/4/2008 532951 GSS AMERICA CHANDARANA INTERMEDIARIES BROKERS P. LTD S 119182 554.37
3/4/2008 532951 GSS AMERICA MARWADI SHARES AND FINANCE LIMITED S 123265 555.78
3/4/2008 532951 GSS AMERICA N D NISSAR S 66823 552.77
3/4/2008 532951 GSS AMERICA B K SHAH CO S 147492 555.56
3/4/2008 515147 HALDYN GLA G RAJIV ARORA S 30821 82.00
3/4/2008 531115 JYOTI COSM E S H H REHMAN B 458501 1.66
3/4/2008 531115 JYOTI COSM E SAROJINI FIN AND INV P LTD S 456703 1.66
3/4/2008 532283 KASHYAP TEC OM EDUCATION IT PVT LTD B 1836657 1.99
3/4/2008 512267 MEDIA MATRIX COMMITTED TRADING PVT LTD B 200000 6.02
3/4/2008 524372 ORCHID CHEM SOLREX PHARMACEUTICALS COMPANY B 1062040 172.94
3/4/2008 524372 ORCHID CHEM MARUTI SECURITIES LTD B 777458 172.43
3/4/2008 524372 ORCHID CHEM MACQUARIE BANK LIMITED S 539193 174.29
3/4/2008 524372 ORCHID CHEM MARUTI SECURITIES LTD S 777458 175.71
3/4/2008 500540 PREMIER LTD SUSHMA JAIN B 400000 90.00
3/4/2008 500540 PREMIER LTD LAXMI JAIN B 383191 90.00
3/4/2008 500540 PREMIER LTD CITIGROUP GLOBAL MARKET M PVT LTD S 796694 90.01
3/4/2008 532735 RSYSTEMS INT BHAVOOK TRIPATHI B 165277 78.07
3/4/2008 532735 RSYSTEMS INT RALPH HENRY KENNEY S 165050 78.00
3/4/2008 531215 RTS POWER CO JAIGURUDEV CONSULTANCY SERVI B 29000 167.00
3/4/2008 531215 RTS POWER CO MEHTA FINANCIAL SERVICES LTD. S 29000 167.00
3/4/2008 513530 STELCO STRIP SAINATH HERBAL CARE MARKETING P LTD B 61955 33.21

Market ends flat amid volatility

The market was highly volatile as stocks gyrated between zones throughout the trading session, with the index witnessing an intra-day swing of 303 points. In initial trades, on the back of a firm global indices, the Sensex began on a positive note at 15,806, 56 points above its previous close and rallied sharply above the 16,000 level to touch an intra-day high of 16,003. Steady to firm selling pressure thereafter saw the index plunge deep in red to slip below the 15,700 mark and touch a low of 15,699. Although the Sensex managed to erase most of its losses on buying in most of the heavyweights, it still ended 82 points up at 15,833. The Nifty nearly ended flat at 4,772.

The breadth of the market was negative. Of the 2,687 stocks traded on the BSE 1,395 stocks declined, 1,235 stocks advanced and 57 stocks ended unchanged.

Among the sectoral indices, the BSE IT index rose 3.31% at 3,765, while the BSE Oil & Gas index, the BSE FMCG index, the BSE HC index, the BSE Metal index and the BSE Realty index ended with modest gains. The BSE CG & Power were the biggest losers and dropped by 2% each.

Selective buying helped the index overcome its losses. Satyam Computer flared up 5.11% at Rs428, Wipro advanced 5.04% at Rs435, TCS rose 4.13% at Rs885.95 and HUL added 3.20% at Rs243.35. Infosys, Reliance Industries, Tata Steel, Ambuja Cement, ACC and ONGC performed with steady gains.

Selling was evident in select heavyweight counters. BHEL dropped 5.27% at Rs1,754.95, Mahindra & Mahindra declined 3.38% at Rs643.75, Reliance Energy tumbled 3.32% at Rs1,189.45, Maruti Suzuki shed 2.95% at Rs788.30, Grasim dipped 2.15% at Rs2,560, Tata Motors moved down by 1.43% at Rs628.70, HDFC moved down by 1.11% at Rs513.40 and Reliance Communications 1.09% at Rs510.

BSE Power stocks dropped sharply. Suzlon Energy dipped 4.68% at Rs272.10, ABB dropped 4.36% at Rs1,138.55, Areva declined by 3.57% at Rs1,463 and GMR infra lost 2.95% at Rs143. Torrent Pharma, Crompton and Tata power scaled down 2% each.

Over 1.80 crore IB Securties shares changed hands on the BSE followed by RNRL (1.40 crore shares), Ispat Industries (1.33 crore shares), RPL (1.17 crore shares) and Gammon Infra (1.05 crore shares)

Sensex up 1023 points from recent low

The key benchmark indices ended higher extending yesterday's gains. Market had surged in early afternoon trade when the BSE Sensex surpassed 16,000 mark. It immediately fell below that level.

IT stocks rose. Capital goods, power stocks declined. Reliance Industries gained. Wipro and Satyam Computer Services were major gainers from the Sensex pack. Bharat Heavy Electricals (Bhel) declined after announcing provisional results for the year ended March 2008. Reliance Energy and Mahindra & Mahindra were other major losers from Sensex pack. The market breadth was negative compared to strong breadth at the onset of the trading session. BSE Mid-Cap and Small-Cap indices declined.

European markets which opened after Indian market, were subdued. France's CAC, Germany's DAX and UK's FTSE 100 were down by between 0.43% to 0.76%. Asian markets which opened before Indian market edged higher after a US jobs indicator raised hopes of a milder recession than previously feared in the world's biggest economy.

The 30-share BSE Sensex gained 82.15 points or 0.52% at 15,832.55. At the day's high of 16002.73, the Sensex rose 252.33 points in early afternoon trade. At the day's low of 15,699.21 Sensex lost 51.19 points in early trade.

The broader based S&P CNX Nifty gained 17.4 points or 0.37% at 4,771.60.

From recent low of 14,809.49 on 17 March 2008 Sensex has recovered 1023.06 points or 6.9% at current 15,832.55. From the recent high of 16,371.29 on 28 March 2008, Sensex is off 538.74 points or 3.29%

BSE clocked a turnover of Rs 4789 crore today 3 April 2008 compared to a turnover of Rs 4,955.40 on 2 April 2008.

As per the provisional figure on NSE, foreign institutional investors were net sellers of Rs 393.21 crore in Indian equities while domestic funds were net buyers of shares worth Rs 265.39 crore.

The market breadth was negative: On BSE 1215 shares advanced as compared to 1409 that declined. 63 shares remained unchanged.

The BSE Mid-Cap index down 0.4% to Rs 6,387.23 and BSE Small-Cap index down 0.91% to 7,840.29.

Nifty April 2008 futures were at 4785, at a premium of 13.40 points as compared to spot closing of 4771.60.

The NSE's futures & options (F&O) segment turnover was Rs 32,513.16 crore, which was lower than Rs 34,170.35 crore on Wednesday, 2 April 2008.

BSE IT index (up 3.31% to 3,764.91), BSE Oil & Gas index (up 1.97% to 10,531.88), BSE FMCG index (up 1.12% to 2,344.68), BSE HealthCare index (up 0.64% to 3,887.73), BSE Metal index (up 0.53% to 13,588.76) outperformed Sensex.

BSE Realty index (up 0.3% to 7,523.32) , BSE Bankex (down 0.02% to 7,820.62), BSE PSU index (down 0.54% to 7,347.78), BSE Auto index (down 1.07% to 4,490.94), BSE Consumer Durables index (down 1.53% to 3,857.74), BSE Capital Goods index (down 2.1% to 13,214.73) and BSE Power index (down 2.6% to 3,055.57) underperformed Sensex.

IT stock surged on hopes a US recession might not be deep as feared. Wipro (up 5.04% to Rs 435.30), Infosys (up 2.68% to Rs 1,521.65), Tata Consultancy Services (up 4.13% to Rs 885.95) and Satyam Computer Services (up 5.11% to Rs 428.05) edged higher. The US private sector added 8,000 jobs in March 2008, according to a report on Wednesday by ADP Employer Services, surpassing economist expectations. IT firms derive more than half of their revenue from exports to US.

Capital goods stocks declined. India's biggest power equipment maker by sales Bharat Heavy Electricals declined 5.27% to Rs 1754.95. Based on provisional figures, the company today reported 16.56% growth in net profit to Rs 2815 crore in the year ended March 2008 over the year ended March 2007. India's largest engineering firm by sales Larsen & Toubro declined 0.54% to Rs 2,850.05.

Power stocks were mixed. India's largest power generation firm by sales National Thermal Power Corporation rose 0.1% to Rs 194.25 after the company formed a joint venture company with Uttar Pradesh Rajya Vidyut Utpadan Nigam (UPRVUNL) under the name Meja Urja Nigam for setting up a power plant of 1320 megawatt in Allahabad district in the state of Uttar Pradesh. NTPC and UPRVUNL will each hold 50% stake in the share capital of the joint venture company.

Reliance Energy (down 3.32% to Rs 1,189.45), Power Grid Corporation of India (down 0.8% to Rs 99.20), Tata Power Company (down 2.34% to Rs 1,159.30). However Reliance Power rose 1.06% to Rs 329.60.

India's largest private sector company in terms of market capitalisation and oil refiner Reliance Industries rose 2.14% to Rs 2,393.75.

India's largest commercial bank State Bank of India down 0.81% to Rs 1,639.10. The bank said on Wednesday, 2 April 2008, it had finalised issue of bonds to raise 12 billion yen ($117.7 million). The bonds will mature in five years and carry a coupon of 3.36%, it said in a statement to the Bombay Stock Exchange. The bonds will be issued on 8 April 2008, the bank said.

India's largest tractor maker by sales Mahindra & Mahindra declined 2.29% to Rs 651. A consortium of Mahindra & Mahindra and private equity firm ICICI Venture Funds has signed an agreement to buy Italian gear manufacturer Metalcastello. Financial details of the deal, which is subject to approvals, were not disclosed.

Hindalco Industries (up 2.52% to Rs 170.95), Jaiprakash Associates (up 0.47% to Rs 233.40), Tata Steel (up 2.11% to Rs 659.60), ONGC (up 0.84% to Rs 1,019.55), Hindustan Unilever (up 3.2% to Rs 243.35) and ICICI Bank (up 0.47% to Rs 787.90) edged higher from the Sensex pack.

Maruti Suzuki India (down 2.92% to Rs 788.50), Grasim Industries (down 2.15% to Rs 2,560.95) Tata Motors (down 1.48% to Rs 628.70), HDFC (down 1.11% to Rs 2,442.90) and Bharti Airtel (down 0.36% to Rs 821.05) edged lower from the Sensex pack.

Gammon Infrastructure Projects (GPIL) settled at a discount of 5.45% to Rs 157.90 on BSE on its debut today. The company had priced the initial public offer (IPO) at Rs 167 – at the lower end of the Rs 167 - Rs 200 price band.

Indiabulls securities clocked highest volume of 1.8 crore shares on BSE. Reliance Natural Resources (1.4 crore shares), Ispat Industries (1.33 crore shares), Reliance Petroleum (1.17 crore shares) and Essar Oil (85.52 lakh shares) were the other volume toppers in that order.

Reliance Capital clocked a highest turnover of Rs 250.41 crore on BSE. GSS America Infotech (Rs 246.02 crore), Bharat Heavy Electricals (Rs 219.88 crore), Reliance Petroleum (Rs 198.01 crore) and Reliance Industries (Rs 195.67 crore) were other turnover toppers in that order.

In Asia, the key benchmark indices in Hong Kong, Japan, South Korea, Singapore and China were up by between 1.04% to 2.94%.

US stocks declined on Wednesday after Federal Reserve Chairman Ben Bernanke said a recession was possible, spurring profit-taking a day after the market's biggest rally in two weeks. The Dow Jones industrial average shed 48.53 points, or 0.38%, at 12,605.83. The Standard & Poor's 500 Index lost 2.65 points, or 0.19%, at 1,367.53. The Nasdaq Composite Index was down 1.35 points, or 0.06%, at 2,361.40.

Prospects of further monetary tightening by the Reserve Bank of India (RBI) following a surge in inflation is a cause for concern at a time when the already high rates are pinching the domestic industry. The surge in inflation has triggered fears that RBI my raise cash reserve ratio (CRR). An increase in CRR would suck out liquidity immediately pushing up the cost of funds and thereby curbing demand.

The next major trigger for the market is Q4 March 2008 results of India Inc. As per market talks IT bellwether Infosys may issue muted guidance for the year ending March 2009 in the backdrop of a slowdown in the US economy. Infosys unveils Q4 results on 15 April 2008.

The market sentiment remains edgy as Indian companies are sitting on potential losses on account of the forex derivative transactions they undertook last year. A steep decline in the value of the US dollar against the Japanese Yen and the Swiss Franc has hit Indian corporates which have used these two currencies (Yen and Franc) extensively to swap their rupee denominated debt.

BSE Sensex had risen 123.78 points or 0.79% at 15,750.40 on Wednesday on positive cues from the global markets.