Market may remain volatile

The market may witness cautious trend as US indices ended on a negative note yesterday and Asian indices are exhibiting upward trends in the 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 4320 and 4270 on the downside while on the upper side it may move up to 4420. The Sensex has a likely support at 14400 and may face resistance at 14700.

US indices finished on a negative note on Tuesday. While the Dow Jones ended in a negative at 11349 declined by 131 points, the Nasdaq down by 33 points at 2384.

Indian floats trading on the US bourses had a mixed outing. Among the major losers Satyam, MRNL, Infosys and Rediff fell over 2-3% each. While Tata Motors, Patni Computer, Dr Reddy's and VSNL closed with marginal loss. However, Wipro, ICICI Bank and HDFC Bank ended with steady gains.

Crude oil prices inched higher in the US market, with the Nymex light crude oil for September delivery adding $1.66 to close at $114.53 a barrel. In the commodity space, the Comex gold for December series gained $11.10 to settle at $816.80.

Pre Session Commentary - Aug 20 2008

The Indian Market is expected to have negative opening on weak global cues as US markets closed lower and Asian markets are trading weak along with rise in crude oil prices. On Tuesday, the market closed with marginal losses after recovering from days low. The domestic market opened on weak note tracking unfavorable cues from the global markets. Further market continued to trade in negative territory due to huge selling over the counters. Weak European markets along with fears of more losses from the US mortgage crisis also fueled to the negative sentiments. Due to some bouts of buying during last hour of trading, market pared its losses to close with minimum gap. NSE Nifty ended below 4,400 mark and BSE Sensex below 14,600 level. From the sectoral front, most of the indices closed in red and among that, Metal, Consumer Durable, IT and Auto stocks contributed to the most of the selling in market. However, Power and Bank stocks were in limelight as were able to gain market favor. The BSE Sensex closed lower by 101.93 points at 14,543.73 and NSE Nifty ended down by 24.80 points at 4,368.25. The BSE Mid Caps and Small Cap closed with losses of 15.48 points and 23.87 points at 5,766.32 and 7,012.74 respectively. We expect that market may remain volatile during the trading session.

On Tuesday, the US market was closed lower on continued concerns regarding financials along with rise in wholesale inflation and a rebound in crude oil prices. PPI Inflation rose 1.2% in July (consensus 0.6%) and core PPI, which excludes food and energy, rose 0.7% (consensus 0.2%). That leaves the YoY increase in total PPI at 9.8%, which is the highest since 1981. Crude oil ended above $115 a barrel on the New York Mercantile Exchange.

The Dow Jones Industrial Average (DJIA) closed lower by 130.84 points to close at 11,348.55. The NASDAQ index decreased by 32.62 points to close at 2,384.36 and the S&P 500 (SPX) fell 11.91 points to close at 1,266.69.

Indian ADRs ended down. In technology sector, Wipro ended higher by (0.78%), while Satyam dropped by (2.67%) along with Infosys by (2.06%) and Patni Computers by (1.16%). In banking sector ICICI bank and HDFC Bank reported marginal gain by (0.10%) and (0.01%). In telecommunication sector, MTNL dropped by (3.07%) along with Tata Communication by (0.26%). Sterlite industries decreased by (0.07%).

Today the major stock markets in Asia are trading weak following the fall on Wall Street overnight. Hang Seng index is trading marginally higher by 38.22 points at 20,522.59 while Taiwan Weighted trading down by 56.03 points at 6,922.57, Japan's Nikkei trading 12,826.54 dropped by 36.51 points and Singapore''s Straits Times is down by 5.04 points at 2,733.43.

India''s rupee declined for a sixth day, on speculation stock losses will spur investors to reduce local assets. The rupee closed at 43.61 a dollar, the lowest since March 29, 2007, as against 43.59 of Monday.

Today, Nifty has support at 4,276 and resistance at 4,432 and BSE Sensex has support at 14,204 and resistance at 14,812.

Market seen range-bound on mixed global cues

Local benchmark indices are likely to remain range-bound today, 20 August 2008 amid mixed global cues. However high intra-day volatility cannot be ruled out.

On the New York Mercantile Exchange, September crude rose $1.66 at $114.53 yesterday, 19 August 2008 as the dollar weakened, prompting investors to buy into commodities.

Asian markets were trading mixed today, 20 August 2008. China's Shanghai Composite was down 0.93% or 21.90 points at 2,322.56, Japan's Nikkei slipped 0.28% or 36.51 points at 12,828.54, Taiwan's Taiwan Weighted fell 0.80% or 56.03 points at 6,922.57 and South Korea's Seoul Composite lost 0.53% or 8.12 points at 1,533.29. However, Hong Kong's Hang Seng was up 0.19% or 38.22 points at 20,522.59 and Singapore's Straits Times advanced 0.18% or 5.04 points at 2,733.43.

US markets declined for a second straight day yesterday, 20 August 2008, as an inflation report agitated a market already rattled by worries about the financial sector. The Dow Jones industrial average plunged 130.84 points, or 1.14%, to 11,348.55. The S&P 500 index lost 11.90 points, or 0.93%, to 1,266.70, and the Nasdaq Composite index slipped 32.62 points, or 1.35%, to 2,384.36.

Back home, fears of more losses from the US mortgage crisis globally hit domestic bourses yesterday, 19 August 2008. The BSE 30-share Sensex lost 101.93 points or 0.7% to 14,543.73 and the S&P CNX Nifty was down 24.8 points or 0.56% to 4,368.25, on that day.

The BSE Sensex is down 5,743.26 points or 28.31% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 6,663.04 points or 31.41% away from its all-time high of 21,206.77 struck on 10 January 2008.

Foreign institutional investors (FIIs) were net equity sellers worth Rs 716.35 crore while mutual funds purchased shares worth Rs 14.56 crore on Tuesday, 19 August 2008, according to provisional data on NSE.

FIIs were net sellers of Rs 974.84 crore in the futures & options segment on Tuesday, 19 August 2008. They were net sellers of index futures to the tune of Rs 1188.29 crore and purchased index options worth Rs 504.66 crore. They were net sellers of stock futures to the tune of Rs 328.63 crore and bought stock options worth Rs 37.43 crore.

Daily Call - Aug 20 2008

The US markets have yielded further ground on higher producer price index and the Asian markets are mixed. However, given the support that came in the last hour of trading, I expect the markets to take into stride any selling that may happen during early trade. Tuesday's resurgence from the lows came on the back of Reliance and the market heavy weight may lead the pack today as well.


PSU oil firms could do well if their proposal to sell Diesel at differential rates to industrial and retail consumers is accepted. Reliance could also benefit if the Government allows it sell Diesel in the domestic space even after paying custom duty on crude and excise on Diesel. Fertiliser and Sugar stocks are also expected to do well.

US Market remains subdued

 Inflation data, oil and financials hammer stocks

Stocks at Wall Street ended lower on Tuesday, 19 August, 2008. Stocks continued to be hurt due to the credit crisis situation in the financial sector, drop in quarterly earnings from a couple of retailers and a batch of economic reports that were against investor sentiments. Crude prices rising by more than 2% today also took a toll on stocks at Wall Street. Eight of the ten sectors ended in the red today.

Though market opened modestly lower in the morning, the inflation data followed by the bleak housing report dragged market further lower. The Dow Jones industrial Average ended the day with a loss of 130.84 points at 11,348.55. The Nasdaq Composite Index, finished lower by 32.62 points at 2,384.66. S&P 500 finished lower by 11.91 points at 1,266.69.

Twenty six of thirty Dow components ended in the red led by AIG, Bank of America and American Express. AIG dropped more than 6% on reports that the company might have to raise more capital.

The Labor Department reported today that U.S. producer prices rose by a bigger-than-expected 1.2% in July. It was driven higher by prices for energy, food and other products. Market was looking for an increase of 0.3% in July. Excluding food and energy, producer prices rose 0.7% in the month, which was also higher than expected. In July, energy prices rose 3.1% and food prices climbed by 0.3%.

The report hit the wires just before Wall Street opened in the morning. It fuelled a sell-off among stocks and the Dow Jones Industrial Average slipped by almost 100 points within an hour after market opened.

Also, the Commerce Department reported today that the number of new homes starting construction in July has sharply dropped. The number of new single-family permits dropped to the lowest level in 26 years. Builders are cutting back their production of new homes and trying to work off unsold inventory. Rising foreclosures on existing homes are complicating the builders' efforts to bring supply back down to meet sluggish demand. Housing starts fell 11% to a seasonally adjusted annual rate of 965,000 in July, 2008.It marked the lowest level for housing starts in 17 years. June's starts were revised higher to a 1.084 million annual pace. Housing starts are down 29.6% in the past year.

Among earning news, Home Depot stock slipped almost 4% after the company reported drop in second quarter profit. Target too reported y-o-y drop in quarterly earnings but still met investor expectations.

Barring HDFC Bank and ICICI Bank, all the Indian ADRs ended in the red today. Satyam was the biggest loser shedding 3.2%. HDFC Bank and ICICI Bank marginally gained 0.1% and 0.01% respectively.

At the crude market on Tuesday, crude oil rose more than $1 a barrel as a weakening dollar prompted investors to purchase commodities as an inflation hedge. Crude oil for September delivery rose $1.66 (1.5%) to settle at $114.53 a barrel.

At the currency markets on Tuesday, the dollar index, which tracks the greenback against a trade-weighted basket of six major currencies, was at 76.74, down from 77.070. It climbed as high as 77.41 earlier. The dollar weakened in the face of weak economic data.

Trading volumes remained light, with 1 billion shares exchanging hands on the New York Stock Exchange and 712 million shares trading on the Nasdaq stock market.

For tomorrow, the day is quite light in terms of economic reports and earning reports. The weekly crude inventory report from the Energy Department is the main and only economic report expected for the day.

Bullion metals rise for second straight day

 Weak dollar and rising crude help precious metals rise

Gold and silver prices rose for second straight day on Tuesday, 19 August, 2008. prices rose after crude prices went up after a long time and the dollar weakened against its rivals. Traders were back in buying spree after prices fell to new lows last week. Barring these two days, and one day in between, gold and silver prices had registered losses in all the trading sessions in the current month of August, 2008. Silver prices also rose for the day.

Today, Comex Gold for December delivery rose $11.1 (1.4%) to close at $816.8 ounce on the New York Mercantile Exchange. It fell to an intra day low price of $792 earlier. Last week, the yellow metal gave up 8.4%. With today's gain, it has lost 11.3% in August, 2008 till date. On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped significantly (20.6%) since then.

This year, gold prices have lost 2.5% till date as the dollar rallied against the euro. It has lost almost $105 in August till now. Gold ended July, 2008 lower by $11 (1.1%).

Prior to that, the yellow metal ended second quarter with a marginal gain of 0.7%. It ended June, 2008 with a gain of 4.1%. In May, it ended with a gain of higher by $22.5 (2.5%). Before May, in April, prices closed lower by 6.3%. For first quarter prices gained 10.7%. In January, prices gained 11%, the highest monthly gain since April 2006. For February, it gained 6%. But in March, prices succumbed and fell by 5.5%.

On Tuesday, Comex silver futures for September delivery rose 0.5 cents (0.05%) to $13.22 an ounce. Earlier, it fell to $12.52/ounce. With today's rise silver has lost almost 11% in 2008 till date. Last week, it gave up 16.4%. It ended July 2008 with a gain of 3%. For the second quarter, it had gained a paltry 1.4%. Silver had gained 16% in Q1. The metal also had gained for seven straight years.

Gold and silver prices have dropped 22% and 38% from their all time highs that they reached earlier this year.

Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies. On the other hand, a lower dollar pushes up precious metal prices as their demand lessens as it becomes cheaper for traders holding other currencies. 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 and vice versa.

At the currency markets on Tuesday, the dollar index, which tracks the greenback against a trade-weighted basket of six major currencies, was at 76.74, down from 77.070. It climbed as high as 77.41 earlier. The dollar weakened in the face of weak economic data.

In economic news on Tuesday, the Labor Department reported that U.S. producer prices rose by a bigger-than-expected 1.2% in July. It was driven higher by prices for energy, food and other products. Market was looking for an increase of 0.3% in July. Excluding food and energy, producer prices rose 0.7% in the month, which was also higher than expected. In July, energy prices rose 3.1% and food prices climbed by 0.3%.

Also, the Commerce Department reported today that the number of new homes starting construction in July has sharply dropped. The number of new single-family permits dropped to the lowest level in 26 years. Builders are cutting back their production of new homes and trying to work off unsold inventory. Rising foreclosures on existing homes are complicating the builders' efforts to bring supply back down to meet sluggish demand. Housing starts fell 11% to a seasonally adjusted annual rate of 965,000 in July, 2008.It marked the lowest level for housing starts in 17 years. June's starts were revised higher to a 1.084 million annual pace. Housing starts are down 29.6% in the past year.

At the crude market on Tuesday, crude oil rose more than $1 a barrel as a weakening dollar prompted investors to purchase commodities as an inflation hedge. Crude oil for September delivery rose $1.66 (1.5%) to settle at $114.53 a barrel.

Earlier this year, the weakening dollar and higher global demand for raw materials had led to records this year for commodities including gold. Gold reached a record in March as a U.S. housing slump and credit crisis spurred the Federal Reserve to slash borrowing costs. The Federal Reserve halted cuts to its target bank lending rate in April, after slicing it in seven steps to 2% from 5.25% in September.

Gold had 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. Silver had climbed 16% in FY 2007. In 2006, silver had jumped 46% while gold gained 23%.

At the MCX, gold prices for October delivery closed higher by Rs 157 (1.4%) at Rs 11,663 per 10 grams. Prices rose to a high of Rs 11,744 per 10 grams and fell to a low of Rs 11,276 per 10 grams during the day's trading.

At the MCX, silver prices for September delivery closed Rs 240 (1.2%) higher at Rs 20,085/Kg. Prices opened at Rs 19,760/kg and rose to a high of Rs 20,339/Kg during the day's trading.

Crude prices rise more than a dollar

 Weak dollar and forecast regarding decline in weekly inventory perk up prices

Crude oil prices rose on Tuesday, 19 August, 2008 at Nymex as the dollar weakened against its rivals. Crude oil rose more than $1 a barrel as a weakening dollar prompted investors to purchase commodities as an inflation hedge. Oil also gained on forecasts a government report tomorrow will show a fourth weekly decline in U.S. gasoline stockpiles. Also providing support to crude price was the ongoing conflict between Russia and Georgia.

Crude-oil futures for light sweet crude for September delivery closed at $114.53/barrel (higher by 1.66 or 1.5%) on the New York Mercantile Exchange. Last week, crude prices ended lower by 1.2%. Before that crude lost $15.92 (11%) in July, 2008, the biggest ever in dollars. Prices are 59% higher than a year ago. Prices reached a high of $147 on 11 July but have dropped 21.5% since then.

At the currency markets on Tuesday, the dollar index, which tracks the greenback against a trade-weighted basket of six major currencies, was at 76.74, down from 77.070. It climbed as high as 77.41 earlier. The dollar weakened in the face of weak economic data.

In a monthly oil report issued last week, the Organization of the Petroleum Exporting Countries (OPEC) said that oil demand has been "badly hurt" this summer by the slowing economy and high oil prices. Transport and industrial fuels declined the most, sending USA's total oil demand down by 3.8%, or 0.8 million barrels per day in the first seven months of the year.

Crude prices had gained 38% in the second quarter of this year. It was the biggest quarterly increase in nine years. It ended June 2008 higher by 9.9%. For the year, crude is up by 16.5% till date.

Brent crude oil for October settlement rose $1.31 (1.2%) o close at $113.25 a barrel.

Against this background, September reformulated gasoline added 4.9 cents to close at $2.8639 a gallon, and September heating oil climbed 3.9 cents to finish at $3.1237 a gallon.

- Natural gas in New York advanced as lower prices for the heating and industrial fuel attracted buyers and on forecasts Tropical Storm Fay could enter the Gulf of Mexico, threatening production. Natural gas for September delivery rose 8.8 cents (1.1%) to settle at $7.976 per million British thermal units.

At the MCX, crude oil for August delivery closed at Rs 4,989/barrel, higher by Rs 37 (0.74%) against previous day's close. Natural gas for August delivery closed at Rs 344.4/mmbtu, lower by Rs 3.9/mmbtu (1.1%).

Take your time!

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Market may extend losses

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

RCom launches DTH service Big TV. (ET)

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

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

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

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

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

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

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

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

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

Oil India plans an IPO in November. (Mint)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Mcnally Bharat gets two orders worth Rs532mn. (DNA)

Economy Front page

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

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

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

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

Today's Pick - Balrampur Chini Mills

We recommend a buy in Balrampur Chini Mills from a short-term horizon. It is evident from the charts that the stock has been on a medium-term up trend from its early July trough at Rs 68, forming higher peaks and higher troughs. While trending up, the stock crossed over the 21 and 50-day moving averages. Also it penetrated the intermediate-term down trendline, which was in place since January high of Rs 127.

Moreover, the stock conclusively closed above its 200-day moving average by jumping up almost 8 per cent on August 19. We notice good volume during the up move. The daily relative strength index (RSI) has re-entered into the bullish zone, reinforcing bullishness and the weekly RSI is likely to enter this zone.

We are positive on the stock in the short-term. We anticipate the stock to rally further until it hits our price target of Rs 107 in the forthcoming trading sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 91.

Reliance Communications launches BIG TV

Reliance Big TV, a wholly owned subsidiary of Reliance Communications announced on Tuesday, August 19 the launch of India`s first fully digital home entertainment service on world`s most advanced MPEG4 Direct-To-Home (DTH) platform.

BIG TV DTH would initially offer over 200 channels with digital quality picture and sound. This service would be available in over 10 million outlets across 6,500 towns thus making it country`s largest retail rollout of a home entertainment product and service.

At the time of launch, BIG TV`s Fully Digital Home Entertainment Service would be available starting at Rs 1,490 which would include 3 month complimentary subscription. BIG TV also offers multiple price points and packages suiting the needs of all customer segments.

On this launch, Anil Dhirubhai Ambani, Chairman, Reliance ADA Group, said, ``The huge potential of a quality and value offering in the Home Entertainment Service market offers us a unique opportunity to tap the strengths and synergies of telecommunications and entertainment sectors embedded within Reliance ADA Group. With the launch of BIG TV DTH, we aim to offer a unique viewing experience in millions of Indian homes, further accelerate the growth momentum and enhance value for many million shareholders of Reliance Communications.``

BIG TV DTH Service, has set up a Call Center capacity capable of handling over 50,000 calls daily, in 11 Indian languages including English, across two locations to enable high-quality and speedy response to all customer queries.

Sanjay Behl, Group Head – Brand & Marketing, Reliance Communications, said, ``BIG TV launch will mark the shift of TV content control from broadcaster to customer hands and define the future of TV viewing in India.``

Shares of RCom declined Rs 12.6, or 3.06%, to settle at Rs 399.8. The total volume of shares traded was 2,234,666 at the BSE (Tuesday).

Stocks: Cheap but best avoided

They seem to be available at a bargain, and hence, are difficult to resist. However, we at ETIG found that it's best to avoid them. Read on to find out more about these hot potatoes.


When it comes to investment philosophy, the world is split down the middle. For, while one school of thought believes in "buying low and selling high" , there's a big fan-following for the alternative "buy high and sell higher" . The former school generally compares the current valuations of a stock with its historical valuations and those of its peers to find out whether a stock is under-, fairly- or overly-valued . Once a stock is found to be undervalued, such investors then go and buy it, assuming that in the long run, the stock will rise to its fair valuation.

Although not as popular as the first one, the other school of thought believes in just the opposite. Being believers in the market's efficiency, this group assumes that if the market values a stock higher than its peers or vice versa, there have to be valid reasons for it. So, the reason for a stock trading at higher valuations is that the market expects it to do better than its peers in the future and hence, is prepared to pay a premium for it.

And if a stock is available cheap, it is probably headed for dismal times. Therefore, we will be better off not questioning the judgment of the market. But why isn't this investing philosophy very popular? The answer is simple. Human psychology is such that in the market, as even in our daily lives, we keep hunting for bargains, forgetting that "only rhetoric comes cheap, evidence is more dear."

Notwithstanding the recent recovery attempts, the broader market in India has been totally battered and bruised out of shape. As a result, valuations of a large number of fairly good companies look very attractive — both as compared to their historical valuations and some of their peers.

But if we go by the second school, there's every reason to believe that if these companies have found themselves to be out of favour with the market, their near-term future will probably not be that bright.
In order to help readers stay away from these, ETIG dug deep into the past five years' data and ferreted out stocks, which although cheap, are best avoided.

In this analysis, we restricted ourselves to the BSE 500. Within that, we looked at stocks that are trading at least at a 50% discount to their five-year average P/E (priceto-earnings ) and P/BV (price-to-book value) multiple

This gave us around 45 stocks, out of which, we chose eight stocks across sectors. All of these look attractive at the first look, but a thorough analysis makes it absolutely clear as to why they are where they are. In fact, a few of these are available at historically high dividend yields as well, which in normal times should have made them that much more attractive.

NIIT Technologies: With the fanfare surrounding its spin-off from NIIT long gone, NIIT Technologies continues to find it difficult to create a niche for itself in the highly competitive IT services business. That it gets over 45% of its revenues from the BFSI (banking, financial services and insurance) space doesn't help either, as a global financial turmoil means that shortterm growth is very challenging. Operating margin for the quarter ended June '08 has taken a hit and is lower on both quarteron-quarter (q-o-q ) and year-on-year (y-o-y ) basis — validating these fears.

Mangalore refinery: The outlook for the entire petroleum refining industry, which enjoyed rising refining margins in the past few years, is slowly but surely turning negative. Moreover, the only product that would have allowed it to command a premium in the near future — Euro Grade V fuels — is still a long way off from flowing out of its refineries. It will take at least two years to complete Mangalore Refinery and Petrochemicals' (MRPL) refinery upgrade and petrochemical projects. And since it's now operating at nearly 130% of its rated capacity, even volume-led growth will be difficult to come by.

PFIZER: Over the past five years, Pfizer's sales have witnessed a dismal compound annual growth rate (CAGR) of just 1.14%. It's evident the company has concentrated more on protecting its margins, rather than improving its sales volumes. At the same time, a large chunk of its earnings has come from 'other income' by selling assets and real estate. This, and not necessarily higher efficiency, has been a big reason for the big jump in profit that the company has posted in recent times. In fact, Pfizer, as most other pharma MNCs, adopts a very conservative policy in India, as it has a limited product pipeline.

Hotel Leelaventure: A humongous over-dependence on its Bangalore property, which contributes almost 50% of its EBITDA, makes Hotel Leelaventure a very tricky bet. With a large number of new premium hotels coming up in the region, there's now almost a glut.

This will almost certainly drive down its average room rate (ARRs). Add to it the fact that its biggest customer — the IT sector — is now going through a very challenging phase and you have all the reasons to question the wisdom of buying this stock. Moreover, with a large amount of debt on its books, Hotel Leelaventure may find it difficult to sail through the upcoming economic slowdown. In fact, a much bigger Achilles heel is the large amounts of land that it has recently acquired at exorbitantly high prices.

Danger Zone

HCL Infosystems : HCL Infosystems operates in an overly competitive, as well as highly price-sensitive segment of computer hardware and office automation products. While in high-end products, it faces tough competition from multinationals like HP, IBM and Lenovo, when it comes to low-end products like desktop computers, local assemblers, with their cheap products, pose a big threat.

As a result, HCL's operating margins have been declining consistently for the past four years and now, even sales are stagnating, as is reflected in its March '08 quarterly results. The business model of its other sources of revenue, networkrelated hardware, is not very competitive and may not be sustainable in the long run.

Shree Cement: Traditionally known for being a financially conservative company, Shree Cement has raised a lot of debt in the past three years in order to fund its aggressive expansion plans. Its debt-to-equity ratio has touched 2 for the first time in the company's history. In an era of rising interest rates, this means bad news, if seen in conjunction with stagnant cement prices.

The company reported an over 900 basis points decline in operating margin during June '08 quarter, while its interest coverage ratio declined to 7 from nearly 30 a year ago. The company reported a marginal decline in net profit during the first quarter, even though its topline grew by 40% on account of higher volumes. This trend is expected to worsen further in the forthcoming quarters, putting further pressure on the stock.

Laxmi machine works : Being India's leading textile machinery manufacturer, Laxmi Machine Works was the biggest beneficiary of an investment boom in the domestic textile industry, following the global phase-out of multi-fibre agreement in January '05. With the boom over, projects are now difficult to come by, which has put a huge pressure on the company .

Its net sales and net profits declined for the first time in June '08, possibly indicating the beginning of a very challenging phase. In the first quarter of FY09, the company's net sales fell by 5%, while net profit was down by 3% over the corresponding period last year. Future outlook seems even gloomier if you consider the fact that if it were not for a generous 45% rise in other income, the company's net profit would have declined by 20% during the quarter.

Maruti suzuki: With interest rates heading northwards and economic growth decelerating faster than expected, Maruti is probably headed for one of its most challenging phases. The company reported a marginal 0.1% growth in domestic sales during July '08, against 22% volume growth in April '08 and 12% growth during the first quarter. At the same time, input costs are rising steadily as prices of steel and power are continuously trending up. This is squeezing the company's profitability from both sides.

In the first quarter, the company's operating margin was down by nearly 500 basis points and profit declined by 7%. This was despite a 21% growth in net sales and 47% growth in other income during the period. Going forward, Maruti's stranglehold over the small- and medium-car segment, which accounts for a bulk of its revenues and profits, is expected to loosen considerably as a result of new products from competitors like Tata's Nano. All this puts India's largest car maker on a sticky wicket.


via ECONOMIC TIMES

BSE Bulk Deals to Watch - Aug 19 2008

 Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
19/8/2008 531223 ANJANI SYNTH NARENDRA VALLABHJI BAHUVA B 99578 50.26
19/8/2008 531223 ANJANI SYNTH TEJASH JAYANTILAL SHAH B 77000 51.18
19/8/2008 531223 ANJANI SYNTH NARENDRA VALLABHJI BAHUVA S 105278 49.71
19/8/2008 531223 ANJANI SYNTH BHAVANA N. MAHIDA S 77000 51.20
19/8/2008 517973 DMC INTER J A FINANCIAL AND MANAGEMENT CONSULTANT PVT LTD B 20900 8.15
19/8/2008 500170 GTN INDUS K S BHUTORIA HUF B 100000 15.32
19/8/2008 500170 GTN INDUS SAROJ BHUTORIA S 100000 15.32
19/8/2008 516078 JUMBO BAG LT M P PURUSHOTHAMAN B 57629 39.69
19/8/2008 502933 KATARE SPG. KARAN HADVANI B 14850 27.17
19/8/2008 531602 KOFF BR PICT LAXMI CAP BROKING PVT LTD B 130854 23.71
19/8/2008 531602 KOFF BR PICT HITESH MALUKCHAND SHAH B 25000 23.00
19/8/2008 531602 KOFF BR PICT PRAVIN DHARAMSHI GALA S 57000 22.86
19/8/2008 531602 KOFF BR PICT LAXMI CAP BROKING PVT LTD S 128241 23.16
19/8/2008 531602 KOFF BR PICT DEEPAL CORPORATION S 103039 22.54
19/8/2008 526407 RIT PRO IND GIRISHBHAI CHANDULAL SANGHVI B 71733 117.82
19/8/2008 526407 RIT PRO IND GIRISHBHAI CHANDULAL SANGHVI S 69956 118.77
19/8/2008 532886 SEL MANUF MARWADI SHARES AND FINANCE LIMITED B 149465 299.78
19/8/2008 532886 SEL MANUF OPG SECURITIES PVT LTD B 480507 299.29
19/8/2008 532886 SEL MANUF B K SHAH CO B 208122 298.02
19/8/2008 532886 SEL MANUF MARWADI SHARES AND FINANCE LIMITED S 149465 299.33
19/8/2008 532886 SEL MANUF OPG SECURITIES PVT LTD S 480507 299.93
19/8/2008 532886 SEL MANUF B K SHAH CO S 208118 298.97
19/8/2008 500295 SESA GOA LTD LA COMP FIN EDMOND DE ROTHSCHILD BANQUE AC SAINT HONORE INDE 1 S 300000 165.42
19/8/2008 530549 SHILPA MEDIC PIVOTAL SECURITES PVT. LTD. B 113065 67.92
19/8/2008 532348 SUBEX LTD MBL AND COMPANY LIMITED B 180538 113.21
19/8/2008 532348 SUBEX LTD MBL AND COMPANY LIMITED S 180538 113.15
19/8/2008 533011 VISHAL INFO MATRIX EQUITRADE PVT LTD B 569718 295.04
19/8/2008 533011 VISHAL INFO MARWADI SHARES AND FINANCE LIMITED B 67113 295.85
19/8/2008 533011 VISHAL INFO EUREKA STOCK AND SHARE BROKING SERVICES LTD. B 74123 292.17
19/8/2008 533011 VISHAL INFO OPG SECURITIES PVT LTD B 1222163 292.82
19/8/2008 533011 VISHAL INFO H.J.SECURITIES PVT LTD. B 322743 288.81
19/8/2008 533011 VISHAL INFO MATRIX EQUITRADE PVT LTD S 569718 295.26
19/8/2008 533011 VISHAL INFO MARWADI SHARES AND FINANCE LIMITED S 67113 296.52
19/8/2008 533011 VISHAL INFO EUREKA STOCK AND SHARE BROKING SERVICES LTD. S 74123 292.40
19/8/2008 533011 VISHAL INFO OPG SECURITIES PVT LTD S 1222163 292.88
19/8/2008 533011 VISHAL INFO H.J.SECURITIES PVT LTD. S 322743 289.04

Vishal Information Technologies Fun

 Quantity Traded
10248867

Deliverable Quantity (gross across client level)
197735

% of Deliverable Quantity to Traded Quantity
1.93

NSE Bulk Deals to Watch - Aug 19 2008

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
19-AUG-2008,SELMCL,SEL Manufacturing Company,AMBIT SECURITIES BROKING PVT. LTD.,BUY,109805,297.88,-
19-AUG-2008,SELMCL,SEL Manufacturing Company,B K SHAH CO KETAN BHAILAL SHAH,BUY,234200,298.76,-
19-AUG-2008,SELMCL,SEL Manufacturing Company,DINESH MUNJAL,BUY,90803,302.50,-
19-AUG-2008,SELMCL,SEL Manufacturing Company,HARBUX SINGH SIDHU,BUY,80623,295.18,-
19-AUG-2008,SELMCL,SEL Manufacturing Company,MANIPUT INVESTMENTS PVT LTD,BUY,118284,298.16,-
19-AUG-2008,SELMCL,SEL Manufacturing Company,MARWADI SHARES AND FINANCE LIMITED,BUY,184167,298.09,-
19-AUG-2008,SELMCL,SEL Manufacturing Company,MBL & COMPANY LTD.,BUY,119032,301.10,-
19-AUG-2008,SELMCL,SEL Manufacturing Company,TRANSGLOBAL SECURITIES LTD.,BUY,173753,302.69,-
19-AUG-2008,SUBEX,Subex Limited,AMBIT SECURITIES BROKING PVT. LTD.,BUY,255837,112.47,-
19-AUG-2008,SUBEX,Subex Limited,KAUSHIK SHAH SHARES & SECURITIES PVT LTD,BUY,234071,114.98,-
19-AUG-2008,SUBEX,Subex Limited,MBL & COMPANY LTD.,BUY,268839,113.14,-
19-AUG-2008,SUBEX,Subex Limited,NAMAN SECURITIES & FINANCE PVT LTD,BUY,318416,111.18,-
19-AUG-2008,SUBEX,Subex Limited,PACE FINANCIAL SERVICES,BUY,175001,116.03,-
19-AUG-2008,SUBEX,Subex Limited,TRANSGLOBAL SECURITIES LTD.,BUY,182794,114.45,-
19-AUG-2008,VINCARDS,Vintage Cards & Creations,ANKITA VISHAL SHAH,BUY,4002,38.72,-
19-AUG-2008,VINCARDS,Vintage Cards & Creations,B K SHAH CO KETAN BHAILAL SHAH,BUY,6607,34.49,-
19-AUG-2008,VINCARDS,Vintage Cards & Creations,NIKUNJ K SHAH,BUY,8009,33.53,-
19-AUG-2008,VINCARDS,Vintage Cards & Creations,PRAGATI PAPER MILLS LTD,BUY,4035,37.95,-
19-AUG-2008,VINCARDS,Vintage Cards & Creations,YUVAK SHARE TRADING PVT LTD,BUY,10042,40.50,-
19-AUG-2008,VITLINFO,Vishal Information Techno,AMBIT SECURITIES BROKING PVT. LTD.,BUY,92328,291.70,-
19-AUG-2008,VITLINFO,Vishal Information Techno,ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD,BUY,301701,291.67,-
19-AUG-2008,VITLINFO,Vishal Information Techno,CHOKHANI SECURITIES LTD,BUY,185167,290.39,-
19-AUG-2008,VITLINFO,Vishal Information Techno,CPR CAPITAL SERVICES LTD.,BUY,98673,296.53,-
19-AUG-2008,VITLINFO,Vishal Information Techno,DINESH MUNJAL,BUY,272175,296.52,-
19-AUG-2008,VITLINFO,Vishal Information Techno,DIPAN MEHTA SHARE & STOCK BROKERS PVT. LTD.,BUY,58081,286.42,-
19-AUG-2008,VITLINFO,Vishal Information Techno,FIN BRAINS SECURITIES (INDIA) LTD.,BUY,95093,294.81,-
19-AUG-2008,VITLINFO,Vishal Information Techno,G RAMAKRISHNA,BUY,141000,298.21,-
19-AUG-2008,VITLINFO,Vishal Information Techno,G.S.V. COMMODITIES PRAVITE LIMITED,BUY,55591,298.91,-
19-AUG-2008,VITLINFO,Vishal Information Techno,HARBUX SINGH SIDHU,BUY,326323,299.61,-
19-AUG-2008,VITLINFO,Vishal Information Techno,HARSHA RAJESHBHAI JHAVERI,BUY,56036,267.17,-
19-AUG-2008,VITLINFO,Vishal Information Techno,HOTEL LIBRARY CLUB P LTD,BUY,64992,296.48,-
19-AUG-2008,VITLINFO,Vishal Information Techno,KAUSHIK SHAH SHARES & SECURITIES PVT LTD,BUY,259095,297.40,-
19-AUG-2008,VITLINFO,Vishal Information Techno,MANIPUT INVESTMENTS PVT LTD,BUY,156756,296.11,-
19-AUG-2008,VITLINFO,Vishal Information Techno,MARWADI SHARES AND FINANCE LIMITED,BUY,77834,294.96,-
19-AUG-2008,VITLINFO,Vishal Information Techno,NAMAN SECURITIES & FINANCE PVT LTD,BUY,56896,294.66,-
19-AUG-2008,VITLINFO,Vishal Information Techno,OPG SECURITIES PVT. LTD.,BUY,65382,290.77,-
19-AUG-2008,VITLINFO,Vishal Information Techno,PRASHANT JAYANTILAL PATEL,BUY,89512,288.39,-
19-AUG-2008,VITLINFO,Vishal Information Techno,R APPALA RAJU,BUY,60000,297.72,-
19-AUG-2008,VITLINFO,Vishal Information Techno,R.M. SHARE TRADING PVT LTD,BUY,313352,289.12,-
19-AUG-2008,VITLINFO,Vishal Information Techno,RAMPRASAD PURSHOTTAM KABRA HUF,BUY,60188,296.27,-
19-AUG-2008,VITLINFO,Vishal Information Techno,TRANSGLOBAL SECURITIES LTD.,BUY,101476,294.67,-
19-AUG-2008,VITLINFO,Vishal Information Techno,YUVAK SHARE TRADING PVT LTD,BUY,233608,293.32,-
19-AUG-2008,OCTAV,Octav Investments Limited,GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD,SELL,19145,80.86,-
19-AUG-2008,SELMCL,SEL Manufacturing Company,AMBIT SECURITIES BROKING PVT. LTD.,SELL,109305,298.65,-
19-AUG-2008,SELMCL,SEL Manufacturing Company,B K SHAH CO KETAN BHAILAL SHAH,SELL,234426,299.15,-
19-AUG-2008,SELMCL,SEL Manufacturing Company,DINESH MUNJAL,SELL,90803,303.70,-
19-AUG-2008,SELMCL,SEL Manufacturing Company,HARBUX SINGH SIDHU,SELL,80623,295.96,-
19-AUG-2008,SELMCL,SEL Manufacturing Company,MANIPUT INVESTMENTS PVT LTD,SELL,118284,298.64,-
19-AUG-2008,SELMCL,SEL Manufacturing Company,MARWADI SHARES AND FINANCE LIMITED,SELL,184167,298.61,-
19-AUG-2008,SELMCL,SEL Manufacturing Company,MBL & COMPANY LTD.,SELL,119038,300.72,-
19-AUG-2008,SELMCL,SEL Manufacturing Company,TRANSGLOBAL SECURITIES LTD.,SELL,173753,302.97,-
19-AUG-2008,SUBEX,Subex Limited,AMBIT SECURITIES BROKING PVT. LTD.,SELL,255837,112.67,-
19-AUG-2008,SUBEX,Subex Limited,KAUSHIK SHAH SHARES & SECURITIES PVT LTD,SELL,230571,115.19,-
19-AUG-2008,SUBEX,Subex Limited,MBL & COMPANY LTD.,SELL,268839,113.28,-
19-AUG-2008,SUBEX,Subex Limited,NAMAN SECURITIES & FINANCE PVT LTD,SELL,292328,110.81,-
19-AUG-2008,SUBEX,Subex Limited,PACE FINANCIAL SERVICES,SELL,89480,117.47,-
19-AUG-2008,SUBEX,Subex Limited,TRANSGLOBAL SECURITIES LTD.,SELL,182794,114.61,-
19-AUG-2008,VINCARDS,Vintage Cards & Creations,ANKITA VISHAL SHAH,SELL,1001,43.77,-
19-AUG-2008,VINCARDS,Vintage Cards & Creations,B K SHAH CO KETAN BHAILAL SHAH,SELL,4212,32.97,-
19-AUG-2008,VINCARDS,Vintage Cards & Creations,NIKUNJ K SHAH,SELL,6882,37.97,-
19-AUG-2008,VINCARDS,Vintage Cards & Creations,PRAGATI PAPER MILLS LTD,SELL,4036,36.22,-
19-AUG-2008,VINCARDS,Vintage Cards & Creations,THANGAMUTHU. S. C,SELL,4000,44.23,-
19-AUG-2008,VINCARDS,Vintage Cards & Creations,VAISHNAV RAJESH CHANDRAKANT,SELL,20000,35.37,-
19-AUG-2008,VINCARDS,Vintage Cards & Creations,YUVAK SHARE TRADING PVT LTD,SELL,1074,34.49,-
19-AUG-2008,VITLINFO,Vishal Information Techno,AMBIT SECURITIES BROKING PVT. LTD.,SELL,92328,292.02,-
19-AUG-2008,VITLINFO,Vishal Information Techno,ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD,SELL,301701,292.31,-
19-AUG-2008,VITLINFO,Vishal Information Techno,CHOKHANI SECURITIES LTD,SELL,185167,292.31,-
19-AUG-2008,VITLINFO,Vishal Information Techno,CPR CAPITAL SERVICES LTD.,SELL,98673,296.68,-
19-AUG-2008,VITLINFO,Vishal Information Techno,DINESH MUNJAL,SELL,272675,296.56,-
19-AUG-2008,VITLINFO,Vishal Information Techno,DIPAN MEHTA SHARE & STOCK BROKERS PVT. LTD.,SELL,58081,286.53,-
19-AUG-2008,VITLINFO,Vishal Information Techno,FIN BRAINS SECURITIES (INDIA) LTD.,SELL,95093,295.18,-
19-AUG-2008,VITLINFO,Vishal Information Techno,G RAMAKRISHNA,SELL,141000,292.78,-
19-AUG-2008,VITLINFO,Vishal Information Techno,G.S.V. COMMODITIES PRAVITE LIMITED,SELL,55591,298.01,-
19-AUG-2008,VITLINFO,Vishal Information Techno,HARBUX SINGH SIDHU,SELL,327023,299.57,-
19-AUG-2008,VITLINFO,Vishal Information Techno,HARSHA RAJESHBHAI JHAVERI,SELL,55537,309.27,-
19-AUG-2008,VITLINFO,Vishal Information Techno,HOTEL LIBRARY CLUB P LTD,SELL,64992,296.62,-
19-AUG-2008,VITLINFO,Vishal Information Techno,KAUSHIK SHAH SHARES & SECURITIES PVT LTD,SELL,259095,297.31,-
19-AUG-2008,VITLINFO,Vishal Information Techno,MANIPUT INVESTMENTS PVT LTD,SELL,156756,296.34,-
19-AUG-2008,VITLINFO,Vishal Information Techno,MARWADI SHARES AND FINANCE LIMITED,SELL,77834,295.35,-
19-AUG-2008,VITLINFO,Vishal Information Techno,NAMAN SECURITIES & FINANCE PVT LTD,SELL,56366,295.04,-
19-AUG-2008,VITLINFO,Vishal Information Techno,OPG SECURITIES PVT. LTD.,SELL,65382,291.09,-
19-AUG-2008,VITLINFO,Vishal Information Techno,PRASHANT JAYANTILAL PATEL,SELL,89512,288.68,-
19-AUG-2008,VITLINFO,Vishal Information Techno,R APPALA RAJU,SELL,60000,296.82,-
19-AUG-2008,VITLINFO,Vishal Information Techno,R.M. SHARE TRADING PVT LTD,SELL,313353,289.45,-
19-AUG-2008,VITLINFO,Vishal Information Techno,RAMPRASAD PURSHOTTAM KABRA HUF,SELL,60188,296.59,-
19-AUG-2008,VITLINFO,Vishal Information Techno,TRANSGLOBAL SECURITIES LTD.,SELL,101476,295.49,-
19-AUG-2008,VITLINFO,Vishal Information Techno,YUVAK SHARE TRADING PVT LTD,SELL,234250,293.64,-

Post Session Commentary - Aug 19 2008

The domestic market had shown smart recovery during final trading hours to came off from the day's low but closed with marginal losses. Market opened on downbeat note tracking weak cues from the global markets and continued to trade lower due to heavy selling over the ground. Weak European markets also added to the negative sentiments. Along with this, fears of more losses from the US mortgage crisis globally mulled over the sentiment. Due to some buying during last half an hour of trade, market managed to pared some of its losses to close with minimal gap. NSE Nifty ended below 4,400 mark and BSE Sensex below 14,600 level. From the sectoral front, most of the indices closed in red and among that, Metal, Consumer Durable, IT and Auto stocks witnessed heavy selling from these baskets. However, Power and Bank stocks were in limelight as were able to gain market favor. The market breadth was negative as 1107 stocks closed in green while 1514 stocks closed in red and 90 stocks remained unchanged.

The BSE Sensex closed lower by 101.93 points at 14,543.73 and NSE Nifty ended down by 24.80 points at 4,368.25. The BSE Mid Caps and Small Cap closed with losses of 15.48 points and 23.87 points at 5,766.32 and 7,012.74 respectively. The BSE Sensex touched intraday high of 14,604.11 and intraday low of 14,368.72.

Lossers from the BSE are ACC Ltd (5.78%), Maruti Suzuki (3.90%), HDFC (3.24%), M&M Ltd (2.56%), Satyam Comp (3.21%), Reliance Com Ltd (2.06%), Bharti Airtel (2.05%), ITC Ltd (2.05%) and Sterlite Indus (1.61%).

The BSE Metal index closed down by 91.37 points at 12,272.80. Lossers are Jai Corp Ltd (4.99%), Sesa Goa Ltd (4.15%), NMDC Ltd (4.09%), Sterlite Indus (1.61%), Ispat Industries (1.56%), and Hindustan Zinc (1.54%).

The BSE Consumer Durables index dropped by 44.92 points at 3,783.26. Major lossers are Videocon Ind (1.89%), Gitanjali Ge (1.35%), Titan Ind (1.05%), Rajesh Export (1.01%) and Blue Star L (0.14%).

The BSE IT index ended lower by 34.12 points at 3,892.26. As Aptech Ltd (3.71%), Satyam Comp (3.21%), HCL Tech (1.97%), I-Flex (1.35%), NIIT Ltd (0.77%) and Moser Bayer (0.37%) closed in negative territory.

The BSE Auto index lost 33.33 points to close at 3,849.33. Major losers are Maruti Suzuki (3.90%), MRF Ltd (1.63%), Ashok Leyland (1.23%), M&M Ltd (1.21%), Exide Ind (0.84%) and Bosch Ltd (0.64%).

The BSE Bank index ended up by 6.81 points at 6,892.18. As ICICI Bank Ltd (2.01%), Bank of Baroda (1.24%), Oriental Bank of Commerce (1.03%), Canara Bank (0.72%), HDFC Bank Ltd (0.59%) and Allahabad Bank (0.24%) closed in positive territory.

The BSE Power index closed higher by 6.76 points at 2,615.11. Gainers are Lanco Infra (2.34%), Reliance Infra (2.26%), GVK Power (2.06%), Suzlon Energy (1.88%), GMR Infra (1.78%), and Siemens Ltd (1.44%).

Market extends losses

Fears of more losses from the US mortgage crisis globally hit domestic bourses today. The market, however, recovered in late trade to end marginally lower. From a recent high, Sensex has lost 960 points, falling for fifth trading session in a row today.

Consumer durable, IT, Auto stocks fell. ACC fell more than 5%. Maruti Suzuki India fell close to 4%. Reliance Industries rose. Reliance Infrastructure spurted.

In Europe, France's CAC 40, Germany's DAX and UK's FTSE 100 were down by between 1.35% to 1.8%.

The BSE 30-share Sensex lost 101.93 points or 0.7% to 14,543.73. At day's high of 14,604.11, the index lost 41.55 points in late trade. At the day's low of 14,368.72, the Sensex lost 276.94 in mid-afternoon trade.

The S&P CNX Nifty was down 24.8 points or 0.56% to 4,368.25.

Sensex has lost 960.19 points or 6.6% from a recent high of 15503.92 hit on 11 August 2008. The barometer index is down 5,743.26 points or 28.31% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 6,663.04 points or 31.41% away from its all-time high of 21,206.77 struck on 10 January 2008.

The BSE clocked a turnover of Rs 3955 crore today as compared to a turnover of Rs 3,847.50 on Monday, 18 August 2008.

Nifty August 2008 futures were at 4401.10, a sharp 32.85-point premium over the spot closing of 4,368.25. NSE's futures & options (F&O) segment turnover rose to Rs 43426.67 crore from Rs 39680.22 crore on Monday, 18 August 2008.

As per provisional figures on BSE, foreign institutional investors sold shares worth Rs 716.35 crore while domestic funds bought shares worth Rs 14.56 crore today, 19 August 2008.

The BSE Mid-Cap index was down 0.27% to 5,766.32 and the BSE Small-Cap index was down 0.34% at 7,012.74.

BSE Teck index (down 1.38% to 3,010.24), BSE Consumer Durables index (down 1.17% to 3,783.26), BSE IT index (down 0.87% to 3,892.26), BSE Auto index (down 0.86% to 3,849.33), BSE Metal index (down 0.74% to 12,272.80), BSE PSU index (down 0.71% to 6,892.73) underperformed Sensex.

BSE Power index (up 0.26% to 2,615.11), BSE Bankex (up 0.1% to 6,892.18), BSE HealthCare index (down 0.01% to 4,266.79), BSE Oil & Gas index (down 0.09% to 9,987.91), BSE Capital Goods index (down 0.22% to 12,062.41), BSE Realty index (down 0.27% to 5,117.50), BSE FMCG index (down 0.7% to 2,162.85), outperformed Sensex.

The market breadth was weak on BSE with 1,107 shares advancing as compared to 1,514 that declined. 90 shares remained unchanged.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries fell 0.16% at Rs 2,221.35. It recovered from the session's low of Rs 2,199.

Consumer durables stocks declined. Asian Star Company (down 6.04% to Rs 1,230.50), Videocon Industries (down 1.89% to Rs 272.75), Lloyd Electric (down 1.7% to Rs 83.65), Titan Industries (down 1.05% to Rs 1,205) and Rajesh Exports (down 1.01% to Rs 49.20) edged lower.

IT stocks declined. Satyam Computer Services (down 3.21% to Rs 405.65), Infosys (down 0.529% to Rs 1,693.55) and Tata Consultancy Services (down 0.2% to Rs 840.10), Wipro (down 0.15% to Rs 431.25) edged lower.

Auto stocks fell. Maruti Suzuki India (down 3.9% to Rs 616.20), Mahindra & Mahindra (down 1.21% to Rs 561.20), Tata Motors (down 0.46% to Rs 423.35) edged lower.

ACC (down 5.78% to Rs 560.05), HDFC (down 3.24% to Rs 2,283.25), Satyam Computer Services (down 3.21% to Rs 405.65), Reliance Communications (down 3.06% to Rs 399.80), Bharti Airtel (down 2.05% to Rs 791.60), edged lower from the Sensex pack.

Reliance Infrastructure (up 2.26% to Rs 994,.30), Hindalco Industries (up 2.08% to Rs 132.35), Hindustan Unilever (up 0.7% to Rs 243.45), HDFC Bank (up 0.59% to Rs 1207.45), NTPC (up 0.5% to Rs 181.40) edged higher from Sensex pack.

India's second largest cement maker by sales Ambuja Cements fell 0.44% to Rs 79.80. As per reports, Ambuja Cements plans to expand in the south Indian market by transporting the building material by sea route. It is one of the few domestic cement makers having expertise in using sea routes for transporting cement.

India's largest cigarette maker by sales ITC fell 2.05% to Rs 183.75. The company said on Tuesday, 19 August 2008, its information technology arm has acquired US-based technology firm Pyxis Solutions for an undisclosed sum.

India's largest commercial bank State Bank of India fell 0.96% to Rs 1,443.80. The bank's chairman O.P. Bhatt today, 19 August 2008, said a planned strike by bank unions against mergers between state banks was unlikely to hinder its plans to acquire State Bank of Saurashtra. Bhatt also said credit growth this year was much better than last year.

India's largest private sector bank by net profit ICICI Bank rose 2.01% to Rs 678.35. The company has reportedly sold about $275 million from its credit derivative portfolio in its foreign branches. The transaction, closed a few weeks ago, will enable ICICI Bank to cut its mark-to-market losses, reports suggest.

Reliance Natural Resources clocked the highest volume of 1.59 crore shares on BSE. Vishal Information Technologies (95.14 lakh shares), Ispat Industries (77.15 lakh shares), IFCI (70.56 lakh shares) and Reliance Petroleum (68.38 lakh shares) were the other volume toppers in that order.

Vishal Information Technologies clocked the highest turnover of Rs 278.62 crore on BSE. Reliance Capital (Rs 223.90 crore), Reliance Industries (Rs 152.99 crore) and Reliance Natural Resources (Rs 150.8 crore) and SEL Manufacturing Company (Rs 147.01 crore) were the other turnover toppers in that order.

Most of the Asian markets were trading weak today, 19 August 2008., Japan's Nikkei, Hong Kong's Hang Seng, Taiwan's Taiwan Weighted, Singapore's Straits Times and South Korea's Seoul Composite were down between 0.32% to 2.28%. China's Shanghai Composite rose 1.06%.

US markets slumped yesterday, 18 August 2008, on the prospect of more losses from the mortgage crisis, sending financial stocks on a downward spiral. Shares of Fannie Mae and Freddie Mac lost more than 20% each after Barron's reported that the US Treasury may need to bail out the home finance giants, which could wipe out shareholders.

The Dow Jones industrial average plunged 180.51 points, or 1.55%, to 11,479.39. The S&P 500 index lost 19.60 points, or 1.51%, to 1,278.60, and the Nasdaq declined 35.54 points, or 1.45%, to 2,416.98.

BSE Bulk Deals to Watch - Aug 18 2008

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
18/8/2008 531602 KOFF BR PICT LAXMI CAP BROKING PVT LTD S 61261 23.71
18/8/2008 533010 OCTAV INVES MANSUKH STOCK BROKERS LTD B 32469 87.89
18/8/2008 533010 OCTAV INVES MANSUKH SECURITIES AND FINANCE LTD B 20276 87.71
18/8/2008 533010 OCTAV INVES YUVAK SHARE TRADING PVT LTD B 19445 86.26
18/8/2008 533010 OCTAV INVES MANSUKH STOCK BROKERS LTD S 32469 88.22
18/8/2008 533010 OCTAV INVES MANSUKH SECURITIES AND FINANCE LTD S 20276 88.23
18/8/2008 533010 OCTAV INVES YUVAK SHARE TRADING PVT LTD S 19445 88.50
18/8/2008 532606 PAREKH ALUM CONSOLIDATED SECURITIES LTD B 100000 131.00
18/8/2008 500339 RAIN COMMODI MORGAN STANLEY MAURITIUS COMPANY LTD S 406919 220.00
18/8/2008 532884 REFEX REFRIG NITIN DHARAMSHI GORATELA B 90000 276.00
18/8/2008 531033 REGAL ENT CO UPSURGE INVESTMENT AND FINANCE LTD B 18299 5.81
18/8/2008 526407 RIT PRO IND GIRISHBHAI CHANDULAL SANGHVI B 47830 117.75
18/8/2008 505590 SCENARIO MED SMP SECUTITES LIMITED B 5000 124.95
18/8/2008 532886 SEL MANUF HARDIK M MITHANI B 164964 380.41
18/8/2008 532886 SEL MANUF SPJSTOCK B 214767 375.58
18/8/2008 532886 SEL MANUF B K SHAH CO B 107507 370.47
18/8/2008 532886 SEL MANUF HARDIK M MITHANI S 164964 381.74
18/8/2008 532886 SEL MANUF SPJSTOCK S 214767 376.85
18/8/2008 532886 SEL MANUF B K SHAH CO S 110199 362.27
18/8/2008 505075 SETCO AUTO SETCO ENGINEERING PVT LTD B 150000 180.00
18/8/2008 505075 SETCO AUTO SNEHA HARISH SHETH S 150000 180.00
18/8/2008 531431 SHAKTI PUMPS ROULEX INVESTMENT AND FINANCE PVT LTD B 65469 100.00
18/8/2008 531431 SHAKTI PUMPS POOJA MUKUND JALAN S 50000 100.00
18/8/2008 513530 STELCO STRIP INDEX SECURITIES AND RESEARCH PV B 53821 20.20
18/8/2008 533011 VISHAL INFO MARWADI SHARES AND FINANCE LIMITED B 55204 258.30
18/8/2008 533011 VISHAL INFO SAM GLOBAL SECURITIES LTD B 189727 260.46
18/8/2008 533011 VISHAL INFO H.J.SECURITIES P.LTD. B 180147 257.60
18/8/2008 533011 VISHAL INFO MEENAL NITESH THAKUR B 126161 260.54
18/8/2008 533011 VISHAL INFO YUVAK SHARE TRADING PVT LTD B 69884 260.60
18/8/2008 533011 VISHAL INFO MARWADI SHARES AND FINANCE LIMITED S 55204 258.44
18/8/2008 533011 VISHAL INFO SAM GLOBAL SECURITIES LTD S 189727 260.53
18/8/2008 533011 VISHAL INFO H.J.SECURITIES P.LTD. S 180147 257.86
18/8/2008 533011 VISHAL INFO MEENAL NITESH THAKUR S 126161 259.81
18/8/2008 533011 VISHAL INFO YUVAK SHARE TRADING PVT LTD S 70090 260.50

NSE Bulk Deals To Watch - Aug 18 2008

 Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
18-AUG-2008,CERA,Cera Sanitaryware Limited,DEEPLOK BUILDERS PRIVATE LIMITED,BUY,40500,134.51,-
18-AUG-2008,OCTAV,Octav Investments Limited,ANKITA VISHAL SHAH,BUY,19120,88.99,-
18-AUG-2008,OCTAV,Octav Investments Limited,ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD,BUY,83069,89.39,-
18-AUG-2008,OCTAV,Octav Investments Limited,MANSUKH SECURITIES & FINANCE LTD,BUY,51489,87.76,-
18-AUG-2008,OCTAV,Octav Investments Limited,PRAGATI PAPER MILLS LTD,BUY,19437,87.50,-
18-AUG-2008,OCTAV,Octav Investments Limited,SHRI BRIJ SECURITIES PVT.LTD.,BUY,19955,86.50,-
18-AUG-2008,OCTAV,Octav Investments Limited,TRANSGLOBAL SECURITIES LTD.,BUY,38404,87.64,-
18-AUG-2008,OCTAV,Octav Investments Limited,YUVAK SHARE TRADING PVT LTD,BUY,11198,89.81,-
18-AUG-2008,SELMCL,SEL Manufacturing Company,B K SHAH CO KETAN BHAILAL SHAH,BUY,135011,362.36,-
18-AUG-2008,SELMCL,SEL Manufacturing Company,HARDIK M MITHANI,BUY,156407,377.40,-
18-AUG-2008,SUBEX,Subex Limited,MBL & COMPANY LTD.,BUY,255813,109.71,-
18-AUG-2008,SUBEX,Subex Limited,NAMAN SECURITIES & FINANCE PVT LTD,BUY,222780,109.15,-
18-AUG-2008,VITLINFO,Vishal Information Techno,AMBIT SECURITIES BROKING PVT. LTD.,BUY,78230,259.43,-
18-AUG-2008,VITLINFO,Vishal Information Techno,ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD,BUY,208360,262.22,-
18-AUG-2008,VITLINFO,Vishal Information Techno,CHOKHANI SECURITIES LTD,BUY,190779,259.79,-
18-AUG-2008,VITLINFO,Vishal Information Techno,DINESH MUNJAL,BUY,243285,262.60,-
18-AUG-2008,VITLINFO,Vishal Information Techno,G RAMAKRISHNA,BUY,97000,262.99,-
18-AUG-2008,VITLINFO,Vishal Information Techno,G.S.V. COMMODITIES PRAVITE LIMITED,BUY,62635,262.74,-
18-AUG-2008,VITLINFO,Vishal Information Techno,HARBUX SINGH SIDHU,BUY,247198,262.18,-
18-AUG-2008,VITLINFO,Vishal Information Techno,KAUSHIK SHAH SHARES & SECURITIES PVT LTD,BUY,123274,261.04,-
18-AUG-2008,VITLINFO,Vishal Information Techno,MANIPUT INVESTMENTS PVT LTD,BUY,102368,260.25,-
18-AUG-2008,VITLINFO,Vishal Information Techno,MANSUKH SECURITIES & FINANCE LTD,BUY,77036,263.30,-
18-AUG-2008,VITLINFO,Vishal Information Techno,MEHTA VIRENDRA KUMAR,BUY,61705,262.73,-
18-AUG-2008,VITLINFO,Vishal Information Techno,PRAGATI PAPER MILLS LTD,BUY,58971,261.49,-
18-AUG-2008,VITLINFO,Vishal Information Techno,PRASHANT JAYANTILAL PATEL,BUY,143614,263.79,-
18-AUG-2008,VITLINFO,Vishal Information Techno,R.M. SHARE TRADING PVT LTD,BUY,230992,261.27,-
18-AUG-2008,VITLINFO,Vishal Information Techno,SMC GLOBAL SECURITIES LTD.,BUY,101836,259.91,-
18-AUG-2008,VITLINFO,Vishal Information Techno,TRANSGLOBAL SECURITIES LTD.,BUY,161018,261.44,-
18-AUG-2008,VITLINFO,Vishal Information Techno,YUVAK SHARE TRADING PVT LTD,BUY,114265,259.35,-
18-AUG-2008,BARTRONICS,Bartronics India Limited,PRIME INFO INVESTMENT LTD,SELL,312000,180.99,-
18-AUG-2008,BOMDYEING,Bombay Dyeing & Mfg Co.,DSP MERILL LYNCH MUTUAL FUND,SELL,220527,540.57,-
18-AUG-2008,CERA,Cera Sanitaryware Limited,DEUTSCHE INTERNATIONAL TRUST CORP.(MAURITIUS)LTD A/C MINIVET,SELL,40000,134.50,-
18-AUG-2008,OCTAV,Octav Investments Limited,ANKITA VISHAL SHAH,SELL,23120,89.53,-
18-AUG-2008,OCTAV,Octav Investments Limited,ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD,SELL,83069,87.97,-
18-AUG-2008,OCTAV,Octav Investments Limited,MANSUKH SECURITIES & FINANCE LTD,SELL,52024,88.20,-
18-AUG-2008,OCTAV,Octav Investments Limited,PRAGATI PAPER MILLS LTD,SELL,19437,87.95,-
18-AUG-2008,OCTAV,Octav Investments Limited,SHRI BRIJ SECURITIES PVT.LTD.,SELL,19955,86.23,-
18-AUG-2008,OCTAV,Octav Investments Limited,TRANSGLOBAL SECURITIES LTD.,SELL,38404,87.75,-
18-AUG-2008,OCTAV,Octav Investments Limited,YUVAK SHARE TRADING PVT LTD,SELL,24063,87.98,-
18-AUG-2008,SELMCL,SEL Manufacturing Company,B K SHAH CO KETAN BHAILAL SHAH,SELL,135011,367.61,-
18-AUG-2008,SELMCL,SEL Manufacturing Company,HARDIK M MITHANI,SELL,156407,382.66,-
18-AUG-2008,SUBEX,Subex Limited,MBL & COMPANY LTD.,SELL,255813,109.76,-
18-AUG-2008,SUBEX,Subex Limited,NAMAN SECURITIES & FINANCE PVT LTD,SELL,225957,109.18,-
18-AUG-2008,VITLINFO,Vishal Information Techno,AMBIT SECURITIES BROKING PVT. LTD.,SELL,78230,259.33,-
18-AUG-2008,VITLINFO,Vishal Information Techno,ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD,SELL,208360,262.72,-
18-AUG-2008,VITLINFO,Vishal Information Techno,CHOKHANI SECURITIES LTD,SELL,190779,261.08,-
18-AUG-2008,VITLINFO,Vishal Information Techno,DINESH MUNJAL,SELL,243285,262.81,-
18-AUG-2008,VITLINFO,Vishal Information Techno,G RAMAKRISHNA,SELL,97000,261.10,-
18-AUG-2008,VITLINFO,Vishal Information Techno,G.S.V. COMMODITIES PRAVITE LIMITED,SELL,62635,262.21,-
18-AUG-2008,VITLINFO,Vishal Information Techno,HARBUX SINGH SIDHU,SELL,247198,262.29,-
18-AUG-2008,VITLINFO,Vishal Information Techno,KAUSHIK SHAH SHARES & SECURITIES PVT LTD,SELL,123274,261.56,-
18-AUG-2008,VITLINFO,Vishal Information Techno,MANIPUT INVESTMENTS PVT LTD,SELL,102368,260.41,-
18-AUG-2008,VITLINFO,Vishal Information Techno,MANSUKH SECURITIES & FINANCE LTD,SELL,77036,263.87,-
18-AUG-2008,VITLINFO,Vishal Information Techno,MEHTA VIRENDRA KUMAR,SELL,61705,262.63,-
18-AUG-2008,VITLINFO,Vishal Information Techno,PRAGATI PAPER MILLS LTD,SELL,58971,261.62,-
18-AUG-2008,VITLINFO,Vishal Information Techno,PRASHANT JAYANTILAL PATEL,SELL,143614,263.03,-
18-AUG-2008,VITLINFO,Vishal Information Techno,R.M. SHARE TRADING PVT LTD,SELL,230992,261.38,-
18-AUG-2008,VITLINFO,Vishal Information Techno,SMC GLOBAL SECURITIES LTD.,SELL,101836,259.93,-
18-AUG-2008,VITLINFO,Vishal Information Techno,TRANSGLOBAL SECURITIES LTD.,SELL,161018,262.08,-
18-AUG-2008,VITLINFO,Vishal Information Techno,YUVAK SHARE TRADING PVT LTD,SELL,114264,259.42,-

Post Session Commentary - Aug 18 2008

The domestic market ended the day with losses after showing volatility throughout the day. Market opened on downbeat note tracking weak cues from the Asian markets and soon moved into the positive territory due to some buying in key stocks. But the same momentum was not maintained and market turned volatile with negative bias. Tough selling pressure led market remained weak during final trading hours and close in red. Weak Asian and European markets also fueled to negative sentiments. NSE Nifty ended below 4,400 mark and BSE Sensex below 14,600 level. From the sectoral front, most of the indices closed in red and among that, most of the selling was seen from Metal, Oil & Gas, Consumer Durable, Capital goods, Auto and Power stocks However, IT index was in limelight as witnessed most of the buying from this basket. The market breadth was positive as 930 stocks closed in green while 1668 stocks closed in red and 78 stocks remained unchanged.

The BSE Sensex closed lower by 78.52 points at 14,645.66 and NSE Nifty ended down by 37.65 points at 4,393.05. The BSE Mid Caps closed with losses of 41.62 points at 5,781.801 and Small Cap ended lower by 73.83 points 7,036.61. The BSE Sensex touched intraday high of 14,824.92 and intraday low of 14,600.65.

Lossers from the BSE are Hindalco (4.53%), Grasim Indus (4.52%), Reliance Com Ltd (2.71%), M&M Ltd (2.56%), ACC Ltd (2.52%), Reliance (2.21%), Tata Steel (2.14%), JP Associates (1.86%) and ITC Ltd (1.83%).

The Metal index closed down by 229.73 points at 12,364.17. Lossers are Hindalco (4.53%), Jai Corp Ltd (3.92%), Ispat Indus (3.92%), Jindal Saw (2.58%), Steel Authority (2.47%), and Tata Steel (2.14%).

The Oil & Gas index ended down by 200.44 points at 9,996.61. As Gail India (5.56%), HPCL (3.63%), Reliance Pet(3.15%), Essar Oil Ltd (2.97%), Reliance Nat Res (2.67%) and Aban Offshore (2.43%) closed in negative territory.

The BSE Capital Goods index dropped by 50.15 points at 12,132.00. Major lossers are Aiaengineer (3.70%), Reliance Industrial Infra (3.46%), Suzlon Energy (3.17%), ABBLtd (3.12%), Crompton Greaves (2.96%) and Lakshmi Ma W (2.66%).

The BSE Auto index lost 50.39 points to close at 3,882.66. Major losers are Amtek Auto (3.69%), M&M Ltd (2.56%), Bajaj Auto (1.66%), Tata Motors (1.61), Bharat Forge (1.59%) and Maruti Suzuki (1.44%).

The BSE Power index closed lower by 40.28 points at 2,608.35. Lossers are Lanco Infra (5.12%), Suzlon Energy (3.17%), ABB Ltd (3.12%), Crompton Greaves (2.96%), Siemens Ltd (2.25%), and Torrent Power (1.89%).

The BSE IT index ended higher by 29.42 points at 5,199.20. As Rolta India (5.10%), Moser Bayer (3.76%), Rolata India (1.75%), Satyam comp (1.75%), TCS Ltd (1.24%) and Infosys Tech (0.77%), Wipro Ltd (0.64%) closed in positive territory.

Nifty August 2008 futures at premium

 Turnover drops

Nifty August 2008 futures were at 4407, at a premium of 13.95 points as compared to spot closing of 4393.05. NSE's futures & options (F&O) segment turnover was Rs 39,680.22 crore, lower than Rs 47,643.15 crore on Thursday, 14 August 2008.

Reliance Industries August 2008 futures was the most active contract with turnover of Rs 833.37 crore. The contract was at 2240, a premium compared to the spot closing of 2225.

Reliance Capital August 2008 futures were at premium at 1290.50 compared to the spot closing of 1282.70.

However Larsen & Toubro August 2008 futures were at a slight discount at 2696, compared to the spot closing of Rs 2697.

In the cash market, the S&P CNX Nifty lost 37.65 points or 0.85% at 4,393.05

Sensex down 858 points in four trading sessions

The market extended last week's losses today with Sensex declining nearly 860 points in the last four trading sessions. The market moved between positive and negative zone today.

Reliance Industries dropped. Ambuja Cements fell more than 5%, Hindalco Industries and Grasim Industries fell more than 4.5% each. HDFC spurted. European markets edged higher after weak start. Asian markets which opened before Indian market were mostly in the red.

The BSE 30-share Sensex ended down 78.52 points or 0.53% to 14,645.66. The key benchmark indices had recovered after opening weak dampened by latest economic data which showed India's wholesale price index rose to a 16-year high. At day's high of 14,824.92 hit in mid-morning trade, the index gained 100.74 points. At the day's low of 14,600.65, the Sensex lost 123.53 points in late trade.

The S&P CNX Nifty was down 37.65 points or 0.85% to 4,393.05.

Sensex has lost 858.26 points or 5.86% from a recent high of 15503.92 hit on 11 August 2008. The barometer index is down 5641.33 points or 27.8% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 6,561.11 points or 30.93% away from its all-time high of 21,206.77 struck on 10 January 2008.

The BSE clocked a turnover of Rs 3,832 crore today as compared to a turnover of Rs 4,882.32 crore on Thursday 14 August 2008.

Nifty August 2008 futures were at 4,409.25, a premium of 16.2 points as compared to spot closing of 4393.05. NSE's futures & options (F&O) segment turnover was Rs 39,680.22 crore, lower than Rs 47,643.15 crore on Thursday, 14 August 2008.

As per provisional figures on BSE, foreign institutional investors sold shares worth Rs 475.50 crore today, 18 August 2008 and domestic funds bought shares worth Rs 128.91 crore.

The BSE Mid-Cap index was down 0.71% to 5,781.80 and the BSE Small-Cap index was down 1.04% at 7,036.61.

BSE IT index (up 0.75% to 3,926.38), BSE Teck index (down 0.13% to 3,052.49), BSE Bankex (down 0.25% to 6,885.37), BSE HealthCare (down 0.34% to 4,267.34), BSE Capital Goods index (down 0.41% to 12,088.57) outperformed Sensex.

BSE Oil & Gas index (down 1.97% to 9,996.61), BSE Metal index (down 1.82% to 12,364.17), BSE Power index (down 1.52% to 2,608.35), BSE Auto index (down 1.28% to 3,882.66), BSE Consumer Durables index (down 1.13% to 3,828.18), BSE FMCG index (down 0.7% to 2,178.20), BSE PSU index (down 0.63% to 6,942.30) and BSE Realty index (down 0.62% to 5,131.61) underperformed Sensex.

The market breadth was negative on BSE with 930 shares advancing as compared to 1,668 that declined. 78 shares remained unchanged.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries fell 2.21% at Rs 2,224.95.

Public sector oil marketing fell as crude oil price bounced back from a recent low. BPCL (down 2.25% to Rs 309.05), Indian Oil Corporation (down 0.64% to Rs 437.75) and HPCL (down 3.63% to Rs 215) edged lower.

Bank stocks were mixed after subdued start even as high inflation raised concerns of further monetary tightening by the Reserve Bank of India. India's second largest private sector bank in terms of net profit HDFC Bank rose 2.14% to Rs 1,200.40. It recovered from the session's low of Rs 1,163. India's largest private sector bank by net profit ICICI Bank fell 1.23% to Rs 665. India's largest commercial bank State Bank of India fell 0.03% to Rs 1,457.75. It recovered from the session's low of Rs 1,425.

India's largest dedicated home loan lender by operating income HDFC rose 3.12% to Rs 2,359.75.

Inflation as measured by wholesale price index rose 12.44% in the week to 2 August 2008, a 16-year high propelled by rise in the cost of pulses, fruits, spices and aviation turbine fuel. Inflation increased at a rate of 12.01% in the previous week. High inflation will mean that tight monetary policy stance by the central bank may continue.

IT stocks jumped as rupee weakened further against the dollar. BSE IT index rose 0.63% to 3,921.40 and was the major gainer from the sectoral indices on BSE. Satyam Computer Services (up 1.75% to Rs 419.10), Infosys (up 0.77% to Rs 1,702.40), Wipro (up 0.64% to Rs 431.90) and Tata Consultancy Services (up 1.24% to Rs 841.80) edged higher.

India's rupee fell for a fifth day, the longest losing streak in more than eight months, on speculation refiners stepped up purchases of crude oil.

Metal stocks fell. India's largest aluminum producer by sales Hindalco Industries fell 4.53% to Rs 129.65. The company has fixed the price of its rights issue at Rs 96 per share, at a premium of Rs 95 per share. The equity shares are of a face value of Rs 1 per share. The board of directors of the company at its meeting on Thursday fixed the ratio of rights entitlement at three equity shares for every seven equity shares held by the shareholders. The record date for the rights issue has been fixed as 5 September 2008, a company release said.

Steel Authority of India (down 2.47% to Rs 139.95), Tata Steel (down 2.14% to Rs 603), Sterlite Industries (down 1.43% to Rs 611.35), National Aluminum Company (down 0.1% to Rs 392.20) edged lower.

Grasim Industries (down 4.52% to Rs 1,963.50), Ambuja Cements (down 5.37% to Rs 80.15), ACC (down 2.52% to Rs 594.40), edged lower from the Sensex pack.

Larsen & Toubro (up 1.29% to Rs 2,694.95), ONGC (up 0.73% to Rs 1,074.20), Hindustan Unilever (up 1.19% to Rs 241.75), edged higher from the Sensex pack.

India's second largest telecom services provider by sales Reliance Communications was down 2.71% to Rs 412.40. The company added 1.75 million wireless users in July 2008, taking its total user base to 52.5 million, the company said on Thursday, 14 August 2008.

India's largest tractor maker by sales Mahindra & Mahindra down 2.56% to Rs 568.10 . The company said today it would take a 51% stake in a joint venture with a Chinese firm and the ventrue would acquire the latter's tractor operations for $50 million.

Reliance Natural Resources clocked the highest volume of 1.49 crore shares on BSE. Reliance Petroleum (83.55 lakh shares), Vishal Information Technologies (75.34 lakh shares), Kaashyap Technologies (62.19 lakh shares) and IFCI (53.59 lakh shares) were the other volume toppers in that order.

Reliance Capital clocked the highest turnover of Rs 225 crore on BSE. Reliance Industries (Rs 199.36 crore), Vishal Information Technologies (Rs 197.05 crore), Reliance Natural Resources (Rs 144.15 crore) and Reliance Petroleum (Rs 132.52 crore) were the other turnover toppers in that order.

Asian markets were trading lower today, 18 August 2008. China's Shanghai Composite, Hong Kong's Hang Seng, Taiwan's Taiwan Weighted, Singapore's Straits Times, South Korea's Seoul Composite were down by between 0.28% to 5.34%. However, Japan's Nikkei rose 1.12%.

In Europe, France's CAC 40, Germany's DAX and UK's FTSE 100 were up between 0.37% to 0.95%.

US markets ended mixed on Friday, 15 August 2008. The Dow Jones Industrial Average advanced 43.97 points, or 0.38%, to 11,659.90. The S&P 500 index gained 5.26 points, or 0.41%, to 1,298.20. However the Nasdaq Composite index declined 1.15 points, or 0.05%, to 2,452.52.

Indian government on Thursday, 14 August 2008, said private pension funds would be allowed to invest 15% of their assets in stock markets from 1 April 2009, from the current 5%. Non-government pension funds will be allowed to invest up to 55% of the assets in federal, state and debt mutual funds.

Pre Session Commentary - Aug 18 2008

The Indian Market is expected to have negative opening on weak global cues as Asian markets are trading mixed. Domestic markets were closed on Friday for the Independence Day holiday. On Thursday, the market witnessed a sharp fall during the trading and closed with heavy losses. The domestic market opened weak tracking cues from the global markets. Further market continued to lose ground ahead of inflation data for the weak ended 2nd August 2008. India''s inflation, stood at 12.44% for the week ended 2nd August 2008 as against 12.01% of the previous week. Market tried to recover during the mid session but was not able to sustain the momentum and continued to slip further till end. From the sectoral front, most of the indices remained out of favour and among that Reality index closed with deep cut of more around 8%. Along with that Bank stocks lost more than5% followed by Capital Goods, Oil & Gas, Power and Auto stocks who also witnessed heavy selling from these baskets. However, IT index was able to gain the market favor. The BSE Sensex closed lower by 368.94 points at 14,724.18 and NSE Nifty ended down by 98.35 points at 4,430.70. The BSE Mid Caps and Small Caps closed with losses of 105.95 points and 119.33 points at 5,823.42 and 7,110.44 respectively. We expect that market may extend its losses during the trading session.

India''s inflation, based on the wholesale price index jumped to 16 year high at 12.44% for the week ended 2nd August 2008 as against 12.01% of the previous week. This rise is mainly due to rising fuel and food prices. The food articles index and fuel price index went up 0.9%.

On Friday, the US market was closed mixed. Crude oil shed more than 1% to settle below $114 per barrel The Dow Jones Industrial Average (DJIA) advanced by 43.97 points to close at 11,659.90. The S&P 500 (SPX) index increased by 5.27 points to close at 1,298.90 while the NASDAQ Composite (RIXF) fell 1.15 points to close at 2,452.52.

Indian ADRs also ended mixed. In technology sector, Infosys ended higher by (0.35%) while Patni Computers dropped by (3.06%) along with Satyam by (1.25%) and Wipro by (0.51%). In banking sector, HDFC bank gained (0.82%) while ICICI bank lost (0.95%). In telecommunication sector, MTNL dropped by (1.91%) while Tata Communication remained unchanged. However, Sterlite dedustries increased by (2.10%).

Today the major stock markets in Asia are trading Mixed. Japan's Nikkei is trading higher by 231.06 points at 13,250.47 while Taiwan Weighted trading down by 91.65 points at 7,104.85, Hang Seng index trading 21,073.14 dropped by 87.44 points and Singapore''s Straits Times is down by 5.82 points at 2,791.68.

The FIIs on Thursday stood as net seller in equity. The gross equity purchased was Rs1,928.60 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs2,574.90 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was (Rs646.30) Crore and net debt was Rs0.00 Crore.

The Indian rupee fell to its lowest in a month on Thursday due losses in stock market. The partially convertible rupee ended at 43.01/02 per dollar 1% weaker than Wednesday''s close of 42.65/66.

Today, Nifty has support at 4,313 and resistance at 4,501 and BSE Sensex has support at 14,320 and resistance at 15,022.

Daily Call - Aug 18 2008

More Indians would be watching the boxing arena in Beijing than what's happening on the market ring, as the Bhiwani lads box their way to a medal or simply glory. Though the cues from the international markets are positive, our markets may not be able to benefit much as the local inflation numbers that came on Thursday, after the markets closed for the long weekend, are incapable of giving solace to the markets.


Should the markets provide an early bounce, it should be taken with both hands to lighten commitments, specially in the banking and other interest rate sensitive sectors like Real Estate, Construction and others. During the course of the week, we expect that the NSG meeting will fail to produce a nod for India and may need a second meeting in September, which may limit the upside potential of the current series.

Market may exhibit volatility

Mixed Asian markets in opening trades and presence of intra-day volatility may hold the investors from taking any fresh positions. However, the crude priced moved down sharply in last week and also flat in US markets on Friday may help the market to move northwards. Among the indices, the Nifty could test higher levels around the 4,460, while on the downside it has a key support at 4,400. The Sensex has a likely support at 14,650 and may face resistance at 14,800.

US indices closed flat on Friday, with the Dow Jones gaining 44 points at 11660 and the Nasdaq slipping by a points at 2453.

Indian ADRs had a mixed outing on the US bourses. Among the major gainers Rediff gained above 12% followed by Infosys, Dr Reddy, HDFC Bank and Tata Motors that raised over 0.50% each. Patni Computer, ICICI Bank, Satyam, MTNL and Wipro lost 1-3% each.

Crude oil prices slipped marginally, while the Nymex light crude oil for September delivery slipped by $1.24 to close at $113.77 a barrel. In the commodity segment, the Comex gold for December series lost $22.40 to settle at $792.10 an ounce.

Runaway inflation at 16-year high may trigger lower opening

Key benchmark indices are poised for lower opening today dampened by latest economic data which showed India's wholesale price index rose to a 16-year high. Global cues were mixed.

Inflation as measured by wholesale price index rose 12.44% in the week to 2 August 2008, a 16-year high propelled by rise in the cost of pulses, fruits, spices and aviation turbine fuel. Inflation increased at a rate of 12.01% in the previous week. Inflation is expected to accelerate further after the Prime Minister Manmohan Singh's cabinet on 14 August 2008 approved an average 21% salary increase for about 50 lakh government employees. The higher wages will cost the government Rs 3.38 lakh crore this year.

The Prime Minister added that various steps are being taken to bring inflation under reasonable control. He blamed the surge in prices to a 16-year high this month on higher global costs of fuel and food.

Meanwhile the Finance Ministry allowing private sector managed provident fund and superannuation trusts to have greater exposure in the stock markets, may boost the sentiment. They can invest up to 15% of their investible funds in shares on which derivatives are available in the BSE or NSE.

US light crude for September delivery rose 23 cents to $114 a barrel today, 18 August 2008 as investors eyed the potential supply threats Tropical storm Fay poses to oil and gas production from the Gulf of Mexico.

Asian markets were trading lower today, 18 August 2008. China's Shanghai Composite fell 1.65% or 40.42 points at 2,410.19, Hong Kong's Hang Seng slipped 0.41% or 87.44 points at 21,073.14, Taiwan's Taiwan Weighted lost 1.27% or 91.65 points at 7,104.85, Singapore's Straits Times was down 0.21% or 5.82 points at 2,791.68, South Korea's Seoul Composite dropped 0.21% or 5.82 points at 2,791.68. However, Japan's Nikkei rose 1.77% or 231.06 points at 13,250.47

US markets ended mixed on Friday, 15 August 2008. The Dow Jones Industrial Average advanced 43.97 points, or 0.38%, to 11,659.90. The S&P 500 index gained 5.26 points, or 0.41%, to 1,298.20. However the Nasdaq Composite index declined 1.15 points, or 0.05%, to 2,452.52.

Back home, the BSE 30-share Sensex declined 368.94 points or 2.44% to 14,724.18 and the S&P CNX Nifty fell 98.35 points or 2.17% to 4430.70 on Thursday, 14 August 2008. Stock exchanges were closed on Friday, 15 August 2008, on account of Independence Day.

Foreign institutional investors (FIIs) were net equity sellers worth Rs 573.98 crore while mutual funds purchased shares worth Rs 23.32 crore on Thursday, 14 August 2008, according to provisional data on NSE.

FIIs were net sellers of Rs 675.88 crore in the futures & options segment on Thursday, 14 August 2008. They were net sellers of index futures to the tune of Rs 859.46 crore and purchased index options worth Rs 379.44 crore. They were net sellers of stock futures to the tune of Rs 223.28 crore and purchased stock options worth Rs 27.43 crore.