Pre Session Commentary - Sep 24 2008

The Market is expected to have negative opening due to weak cues from the global markets as US markets closed in red and Asian markets are trading mixed. On Tuesday, the Indian markets closed deep into red on US bailout concerns as is an uncertainty on the details regarding the U.S. government's $700 billion plan to fix the financial market turmoil and the two major Wall Street investment banks Goldman Sachs and Morgan Stanley, converted to a traditional banking structure. Crude oil also weighs on the sentiments. Domestic markets opened sharply lower and continued to trade on negative terrain on weak global cues. Though markets struggled to recover during early trade but were not able to maintain the strength and skid further. Finally markets ended with huge losses on profit booking over the counters. BSE Sensex ended below 13,600 level and NSE Nifty below 4,150 mark. From the sectoral front, all of the indices ended in red and among those, Bank, Capital Goods, Metal, Reality, IT and Oil & Gas stocks contributed to most of the selling pressure. Mid cap and Small cap stocks also crushed during the trading session as ended with loss of more than 2% and 1% respectively. We expect that the market remain volatile during the trading session.

The BSE Sensex closed lower by 424.65 points at 13,570.31 and NSE Nifty ended down by 96.15 points at 4,126.90. The BSE Mid Caps and Small Caps closed with losses of 107.65 points at 5,113.31 and by 101.14 points at 6,092.97. The BSE Sensex touched intraday high of 13,978.26 and intraday low of 13,543.67.

The BSE and NSE will extend their trading hours from today (24 September 2008) on account of disruption of satellite services due to sun outage. Trading will start as usual at 9.55 IST, but will be suspended between 11.25 IST and 12.10 IST. The day's session will end at 16.15 IST. The new trading timing will be effective till 8 October 2008.

On Tuesday US Senate Foreign Relations Committee passed the Indo-US civilian nuclear deal with a majority of 19-2. With this first step is cleared and two steps are still pending as it is to be approved by House of Representatives.

On Tuesday, the US market closed lower due to nervousness about the proposed $700 billion bailout plan. There are concerns that congressional vote on proposed bailout may be delayed. However, crude oil for November delivery dropped $2.76 to settle at $106.61 on the New York Mercantile Exchange, after earlier touching the low of $104.05.

The Dow Jones Industrial Average (DJIA) closed down by 161.52 points at 10,854.17 followed by the NASDAQ index closed lower by 25.65 points at 2,153.33 and the S&P 500 (SPX) dropped by 18.87 points to close at 1,188.22.

Indian ADRs ended mixed. In technology sector, Satyam closed down by (6.38%) followed by Infosys by (4.76%), Patni Computers by (2.83%) and Wipro by (2.76%). In banking sector HDFC Bank and ICICI Bank gained (5.72%) and (0.78%). In telecommunication sector, MTNL and Tata Communication advanced by (5.37%) and (1.21%). Sterlite Industries plunged (0.80%).

Today the major stock markets in Asia are trading mixed. Hang Seng index is trading up by 295.73 points at 19,168.58 along with Singapore''s Straits rose 2.17 points at 2,478.68, while Japan''s Nikkei slipped 140.19 points at 11,950.40 and Taiwan Weighted trading at 6,146.11 plunged 36.10 points.

The FIIs on Tuesday stood as net buyer in equity and in debt. Gross equity purchased stood at Rs3,245.30 Crore and gross debt purchased stood at Rs232.50 Crore while the gross equity sold stood at Rs3,134.00 Crore and gross debt sold stood at Rs139.80 Crore. Therefore, the net investment of equity reported was Rs111.40 Crore and net debt was Rs92.60 Crore.

On Tuesday, the Indian rupee closed lower due to fall in local stocks and dollar demand from oil importers and arbitrageurs, to 45.73 per dollar against Monday''s close of 45.44/45. Earlier it opened at 45.36/37 and moved in a range of 45.36 and 45.70 in morning trade.

Today, Nifty has support at 4,043 and resistance at 4,215 and BSE Sensex has support at 13,276 and resistance at 13,882.

Market may slide further (alt view)

The market is likely to remain under pressure following an drop in the US market in yesterday's trades and weakness among major Asian indices in the ongoing trades. Persisting offloading of equities from FIIs in the domestic market may also add pressure. Among the key local indices, the Nifty has a key support at 4100 and a slip below this level could see it test lower levels around 4050, while on the upside the index could test 4150. The Sensex has a likely support at 13400 and may face resistance at 13700.

US Market slumped on Tuesday as the heated debate in Congress on the proposed $700 billion bank bailout dampened hopes that the government would take faster action to mitigate the credit market crisis. While the Dow index plunged 162 points at 10854 the Nasdaq dropped 26 points to close at 2153.

Indian floats largely had a mixed outing on the US bourses. Satyam was the major loser and declined by above 6% followed by Infosys and Wipro, which lost 4.76% and 2.76% respectively. While Tata Motors ended with steady losses. Among the gainers, HDFC Bank & MTNL jumped over 5% each while Dr Reddy, Patni Computer, VSNL and ICICI Banks ended with steady gains.

Crude oil prices inched lower, with the Nymex light crude oil for November delivery slipping by $2.76 at $96.37 a barrel. In the commodity segment, the Comex gold for December series lost $17.80 to settle at $891.20 an ounce.

Market may edge higher

The market may edge higher after Warren Buffett's Berkshire Hathaway announced an infusion of $5 billion in Goldman Sachs Group. US stocks futures rose after the news which was announced after the US markets had closed on Tuesday, 23 September 2008. Goldman will sell $5 billion of preferred stock to Berkshire Hathaway, which will also receive warrants to purchase $5 billion of common stock with a strike price of $115 per share. Berkshire has five years to exercise the warrants.

Asian markets were mostly in the green today, 24 September 2008. Key benchmark indices in Hong Kong, Singapore, Taiwan and South Korea were up by between 0.26% to 1.3%. Key benchmark indices in Japan and China were down by between 0.9% to 2.2%.

US stocks fell on Tuesday, 23 September 2008, on fear that congressional wrangling could delay a proposed $700 billion plan to rescue the financial sector, increasing worries about the struggling US economy. The Dow Jones industrial average fell 161.52 points, or 1.47%, to end at 10,854.17. The Standard & Poor's 500 Index slid 18.87 points, or 1.56%, to 1,188.22. The Nasdaq Composite Index dropped 25.64 points, or 1.18%, to 2,153.34.

Meanwhile, a US-India civilian nuclear cooperation agreement moved closer to approval by Congress on Tuesday, 23 September 2008, when a key Senate Committee passed the deal with a landslide majority. However, the historic agreement is yet to clear a few hurdles in its final lap. The bill now goes to the floor of the Senate for the final ratification.

As per the provisional data released by the stock exchanges, foreign funds on Tuesday, 23 September 2008, sold shares worth a net Rs 924.40 crore. Domestic fund bought shares worth a net Rs 68.77 crore.

The September 2008 contracts expire on Thursday, 25 September 2008. Roll over in Nifty futures till Tuesday, 23 September 2008, was about 40%.

Meanwhile, trading on the bourses will be extended to 16:15 IST starting today due to Sun Outage. Trading will start as usual at 9:55 IST and close at 16:15 IST. On BSE, there will be no trading from 11:25 IST to 12:10 IST as there will be signal problems during this time

Sun outage.aim for the stars!

Even a fool knows you can't touch the stars, but it doesn't stop a wise man from trying

Even as the US government is persuading its lawmakers to push through the $700bn bailout plan, comes news that investment guru Warren Buffett is pouring $5bn into the troubled Wall Street titan Goldman Sachs. The investment by Buffett's company Berkshire Hathway in Goldman is likely to act as further cushion to the battered US and global markets. Already, the effects of this news are visible, with US stock futures surging. Shares of Goldman and others of its ilk too have climbed in extended trading. Meanwhile, Japanese giant Nomura has picked up failed US investment bank Lehman Brothers' operations in Europe and the Middle East. Not all news is good though. Reports in the US say that the FBI has opened preliminary investigations into possible fraud involving Fannie Mae and Freddie Mac, Lehman Brothers and the American International Group (AIG).

In India, the bulls may yet again get caught in the whirlwind of the constant news flow emerging from the global markets, especially the US. We expect a cautious start amid anxiety and uncertainty over the US situation. However, given the intensity of the fall on Tuesday, a bounce-back is always on the cards. To add to the volatility, the sun outage (and the protracted session) will commence from today. We also have to contend with the F&O expiry tomorrow.

Inflation numbers will be announced on Thursday and in the next couple of weeks the latest earnings announcements. Overall, the market is likely to remain choppy and will trade in a range of a few hundred points (NSE Nifty). We would advise investors to stick to basics and catch the falling stars for brighter times ahead.

European markets didn't do well overnight and Asian markets are trading mixed this morning. While the Nikkei is down over 1% (it was shut on Tuesday), the Hang Seng is up over 1%. Meanwhile, crude oil is hovering around $107 per barrel.

US stocks slipped further on Tuesday with the Dow Jones Industrial Average back down below 11,000 amid concerns that White House' massive rescue package may get delayed in Congress. Some members of the Senate Banking Committee have expressed skepticism about Treasury Secretary Henry Paulson's plan.

In their testimony on Capitol Hill on Tuesday, both Paulson and Federal Reserve chief warned that the bailout plan must be cleared soon to avoid adverse effects on the US economy and the jobs market.

The US Congress is expected to announce a deal by the end of the week. But, one has to see how things progress on this front even as analysts warn that the credit crunch is going to become far more severe than anybody thought two weeks ago.

After triple-digit rises and declines during the session, the Dow Jones Industrial Average fell 161.51 points, or 1.5%, to end at 10,854.17, with all but three of its 30 components ending in the red.

The S&P 500 index dropped 18.87 points, or 1.6%, to end at 1,188.22, with energy and materials leading the losses that extended to all of the index's 10 industry groups. The Nasdaq was down 25.64 points, or 1.2%, at 2,153.34.

Oil futures slipped after soaring more than $16 in the previous session. Crude oil for November delivery closed at $106.61 a barrel on the New York Mercantile Exchange, down $2.76, or 2.5%, for the session.

Gold futures fell sharply, with the contract for December delivery off $17.80 to end at $891.20 an ounce on Nymex.

Treasury prices gained, sending yields lower, with the two-year note yields off 6 basis points to 2.076%.

The dollar pulled higher. The dollar index , which tracks the greenback against a trade-weighted basket of six major currencies, recently stood at 76.55 from 76.003 in North American trading late on Monday.

Paulson and Bernanke urged senators to quickly approve the plan to prop up the shell-shocked US financial system, saying that the failure to do so would risk the stability of financial markets and the economy.

Some critics on Capitol Hill likened the White House's hurried approach to the financial market crisis to its headlong plunge into the Iraq War

Economic officials and lawmakers are meeting this week in an attempt to hammer out an historic $700bn bank rescue plan that would get bad mortgage bets off bank balance sheets and ultimately loosen up the credit markets.

The move is seen as critical for the stability of the financial sector as the 15-month-old credit crisis stretches on.

US stocks rose in the morning, slipped in the afternoon, rallied again, and then sold off near the close. A selloff in oil, gold and other safe-haven commodities caused investors to bail out of the underlying stocks.

General Motors (GM) continued to slump on worries about its cash position. The stock fell 7.4% as investors continued to fear for its ability to raise capital amid the sluggish auto market.

Across the Atlantic, European shares declined, with banks under pressure yet again. The pan-European Dow Jones Stoxx 600 fell 1.9% to 267.31. The UK's FTSE 100 was down 1.9% at 5,136.12, while Germany's DAX 30 dropped 0.6% to 6,068.53 and the French CAC-40 slid 2% to 4,139.82.

In the emerging markets, the Bovespa in Brazil was down 3.8% to 49,593 while the IPC index in Mexico fell 0.45% to 24,969. Russia's dollar-denominated RTS stock index slipped 2.85% to 1,272 while the ISE National-30 index in Turkey was down nearly 2% at 44,069.

Global gloom to cloud sentiment

Markets extended losing streak to second straight trading session led by weak global cues and selling witnessed in the IT, realty and Capital Goods stocks. Index heavyweights like Infosys, ICICI Bank, HDFC and HDFC Bank. The BSE benchmark Sensex declined 424 points to close at 13,570 and the NSE Nifty index slipped 95 points to close at 4,126.

Among the 30 components of the Sensex 28 stocks ended in the red and only 2 stocks ended with positive bias. Infosys, ICICI Bank, HDFC and HDFC Bank were among the major laggards. Bucking the negative trend were, Tata Power and ACC.

Among the BSE Sectoral indices, BSE IT index (down 5.07%), BSE Realty index (down 4.6%), BSE Consumer Durable index (down 2.4%) and BSE Capital Goods index (down 2.2%). Even the Mid-Cap and the Small-Cap indices lost over 1.5% each.

NIIT Technologies gained by 1% to Rs95 after the company announced that it would offer Cargo handling solutions for Cathay Pacific.

The company would deliver cargo handling solution for Cathay Pacific at their new Cargo Terminal at Hong Kong International Airport. The scrip touched an intra-day high of Rs97 and a low of Rs93 and recorded volumes of over 79,000 shares on BSE.

Lanco Infratech announced that it won Rs3.1bn contract from the Andhra Pradesh Government. LITL slipped by over 7% to Rs208. The scrip touched an intra-day high of Rs223 and a low of Rs207 and recorded volumes of over 6,00,000 shares on BSE.

Shares of Panacea Biotec gained by 1.5% to Rs229 after 13.75 lakh equity shares of the company changed h ands at an average price of Rs228.5 on the BSE. The scrip touched an intra-day high of Rs234 and a low of Rs221 and recorded volumes of over 21,00,000 shares on BSE.

Moser Baer announced that its wholly owned photovoltaic (PV) subsidiary received in full the agreed capital injection of Rs4.15bn from a consortium of global investors to fund the capacity expansion of its high efficiency crystalline silicon and thin film solar verticals.

The Company had announced on September 4, 2008 had announced that it had signed definitive contracts with global investors, including Nomura, CDC Group, Credit Suisse, Morgan Stanley, IDFC PE, and IDFC.

This straight equity transaction values Moser Baer's PV business at over Rs63.50bn and the investors will be entitled to a 6.5% stake in the business.

Shares of Moser Baer had rallied by over 19% on Monday to close at Rs133.5. The stock ended at Rs122 down by 8.5% on the back of profit booking. The scrip touched an intra-day high of Rs137 and a low of Rs120 and recorded volumes of over 40,00,000 shares on BSE.

Punj Lloyd slipped towards the end losing 2% at Rs287. The stock had hit an intra-day high of Rs308 after the company announced that it secured an engineering, procurement, installation and commissioning contract worth Rs36.36bn from Qatar Petroleum. The scope of work includes laying of 211 km of pipeline with associated stations and infrastructure.

Tata Motors announces US$383mn H1 loss at JLR. (FE)
RIL may acquire discovered oil and gas assets abroad. (DNA)
US Committee on Energy and Commerce have asked US Secretary of State to provide details of AIDS drug supplied by Ranbaxy. (ET)
Punj Lloyd bags order worth US$800mn from Qatar Petroleum. (FE)
Cipla unveils Roche's generic version of anti-infection drug, valganciclovir in India. (BS)
Sun Pharma gets US FDA nod to market generic Paraplatin Carboplatin injection. (DNA)
RNRL plans to invest Rs120bn in cement and shipping business in next three years. (DNA)
Reliance Power plans to enter alternate energy segment, to set-up a 100mw solar power plant. (DNA)
CESC plans to invest Rs240bn over the next four years to boost power generation capacity. (DNA)
Akruti, DLF and Reliance ADAG among others are eyeing commercial development of 45,371 sq. meters of railway land in Mumbai. (BL)
Power ministry approves allocation of gas to the power sector from RIL KG D6 block. (FE)
HPCL appeals to finance ministry for 10% interest rate ceiling on borrowings from public sector banks by the company. (FE)
BPCL in talks with Shell and LNG Petronet to source gas up to 2.5 mmscmd as an alternative to KG basin. (DNA)
Etisalat buys 45% stake in Swan Telecom for US$900mn. (ET)
Maruti Suzuki in talks with Haryana government to acquire land for expanding its R&D operations in India. (DNA)
GSPC arm plans to rope in IFC as an equity partner in the company. (DNA)
Videocon starts major restructuring by cutting down manufacturing location across the country, trimming work force and pruning its brand portfolio. (ET)
Tech Mahindra and TCS eyes Flextronics units. (ET)
Akruti has formalized JV with Gujarat government and NCDEX to re-develop bus terminal and warehousing facilities, respectively. (ET)
BPCL venture to invest Rs22bn in bio-diesel project. (BL)
Nagarjuna Construction secures four new orders worth Rs4.13bn. (BL)
Tata Elxsi signs a MoU with subsidiary of Samtech Group, a Belgium-based company. (BL)
Satyam Computer opens development center in Pune SEZ. (BL)
Alok Industries spin-off its retail operations into a new subsidiary under the name of Alok India Retail Ltd. (BL)
Sanwaria Agro to form a SPV in Latin America to invest in corporate farming of soybean and other oil seeds. (DNA)
Ion exchange in talks with three South African companies for an acquisition. (DNA)
Maruti Suzuki in talks with taxi union in Mumbai to sell Omni as a replacement to ageing Premier Padminis. (DNA)
Balaji Telefilms plans to start Hindi entertainment channel. (ET)
Future Group to launch slew of consumer goods ranging from chocolates to toothpaste. (BL)

Economy Front page

India GSM operators are likely to be charged Rs2.66bn per MHz of spectrum for all the 2G radio frequency they hold over 6.2MHz. (ET)
Employee Provident Fund Organization may withdraw Rs530bn invested in special deposit scheme if the finance ministry doesn't agree to raise interest rate for the scheme. (ET)
Chairman of India Tea Association says 2009 tea season to see short-fall in output. (ET)
Private companies were able to produce only around 15% of their annual target set in the current Five-Year Plan period. (BS)
Government revives plan to take FIIs out of FDI sector limits. (BS)
SEBI chairman says no move to ban short selling in India. (BS)

Gold Falls Below $ 900

US Still Not Decided On Bailout Plan

Gold for December expiry finished down $17.80 at $891.20 while Congress heard testimony from White House officials and may soon decide whether or not to give its support to the proposed $700 billion bailout plan. The U.S. dollar saw moderate strength against other major currencies on Tuesday in New York. The dollar edged higher against the euro and moved away from a recently-seen four-week low. In trading with the British pound, the dollar inched away from a monthly low with a mild afternoon rally. MCX Gold contract for October expiry was also quiet shaky in the intra day trades and closed the session at Rs 13013 per 10 grams up Rs 104.

Oil prices also fell on Tuesday as November took over as the front-month contract, further reducing gold's hedge value. Light sweet crude fell to $106.09, down $3.28 on the session. October crude oil finished above $120 a barrel on Monday as traders scrambled to collect oil on the final day of the contract.

Jet Airways - SELL

We recommend a sell in Jet Airways India from a short-term horizon. It is clearly visible from the charts of Jet Airways that after recording its life low at Rs 308 in early July the stock was on a medium-term uptrend till the September 8 high at Rs 567. On September 17, the stock conclusively penetrated the key support level Rs 500 and the medium-term up trendline by tumbling 9 per cent. Subsequently, the stock continued to decline breaching the 50-day moving average. The daily relative strength index (RSI) is featuring in the bearish zone and the weekly RSI has entered into this zone. Moreover, the daily moving average convergence and divergence has entered the negative territory.

Our short-term forecast for the stock is bearish. We expect the stock's current downtrend to prolong until it hits our price target of Rs 375 in the upcoming trading sessions. Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 440.

FDIC data hints at more financial trouble in US

If the indications from Federal Deposit Insurance Corporation (FDIC), the fund established by the US government to insure deposits of banks and institutions, are anything to go by, the worst does not seem to be over for the US financial markets.

FDIC said the banks and savings institutions on the 'problem list' grew to 117 in the second quarter of the calendar year 2008 against 90 in the first quarter. "More banks will come on the list as credit problems worsen. Assets of problem institutions also will continue to rise," said Ms Sheila C. Bair, Chairman, FDIC, in a statement.

FDIC reported that net income of commercial banks and savings institutions under its ambit plunged 87 per cent to $5 billion in the second quarter of the calendar year 2008 against $37 billion logged in the same quarter last year.

With the exception of the fourth quarter of last year, the Q2 earnings were the lowest for the industry since the fourth quarter of 1991, it said.

"By any yardstick, it was another rough quarter for bank earnings, but the results were not unexpected as the industry coped with financial market disruptions, housing slump, worsening economic conditions and the overall downturn in the credit cycle," said Ms Bair.

Total assets of problem institutions increased from $26 billion to $78 billion, with $32 billion coming from California-based IndyMac Bank, which failed in July.

Why the drop

The FDIC cited higher provisions for loan losses as the primary reason for the drop in industry profits. Loss provisions totalled $50.2 billion, more than four times the $11.4 billion the industry set aside in the second quarter of 2007. Almost a third of the industry's net operating revenue went to building up loan-loss reserves.

The size of the earnings decline was mainly attributable to a few large institutions, but more than half of all insured institutions (56.4 per cent) reported lower net income in the second quarter.

The industry reported lower non-interest income than a year earlier, reflecting continuing weakness in market-sensitive revenues, such as income from trading and securitisation activities. Proceeds from sales of securities and other assets yielded a net loss in the second quarter, compared to a net gain a year ago. Ms Bair also announced that in early October, the FDIC will consider a plan to replenish the agency's Deposit Insurance Fund which experienced a large drop due to added loss reserves for IndyMac and other bank failures

Via Thehindubusinessline

PFC to wire up with PE firms to finance power plants

Major financial institutions and private equity firms such as Cornell Capital and Actis are likely to join hands with leading domestic power sector financing company Power Finance Corporation (PFC) to set up an equity consortia for funding power projects in the country.

The state-owned institution would identify power projects needing equity support and provide lucrative investment opportunity to consortia partners. The new initiative would be run by the newly set up arm of PFC, Power Equity Capital Advisors Pvt Ltd (PE-CAP).

Other institutions and PE firms that may become part of the consortia include Sansar Capital Asia, Nexent Ventures, Capital Management Advisors and Highfield Capital Management.

"This equity consortium will have both international and domestic financial institutions. While PFC will develop the standard appraisal criteria, the other members will infuse capital in the domestic power projects. This is a major step towards securing a safe and permanent line of equity for the fund-starved power projects in the country," a senior PFC official told ET.

As per government estimates, an investment of over Rs 10.5 lakh crore is expected in the 11th Plan in the power sector. After exploring all possible avenues of funding, there is still a huge gap of over Rs 4 lakh crore. While PFC would meet debt requirement, the new initiative would strive to meet the equity shortfall. It would also provide avenues to PE firms to get a foothold in the Indian power market.

To get the equity consortia running, PFC is also in talks with a list of heavyweights in the domestic financial sector, which include banks and insurance majors such as State Bank of India, Axis Bank, Bank Of India, LIC, HDFC, ICICI, Bajaj Allianz, Tata AIG and Oriental Insurance.

"We are close to reaching an agreement with a number of these players and other global investment companies," said the official. "The plans of having a private equity fund were shelved because there are tax implications both at the fund level and at the investor end," he added.

The advantage with the consortium is that there will be no cap on the investment amount that can be generated. After the assessment done by PFC, the members of the consortium may even finance the whole project depending on their financial strength," he added.

Apart from others, the new initiative would also provide avenues to PFC to make its own equity investments in power projects. This is an area that is being actively pursued by the company.

According to PFC, the equity consortia would be a big boon for the domestic power sector as it would help to bring down the overall cost of funds and subsequently result in lower tariff for consumers.

The average cost of debt varies between 12% to 15% based on the project feasibility. A mix of equity and debt support is considered ideal for making projects viable on a longer term.

Source: Economic Times

ChrysCap raises equity exposure in Amtek group

The clandestine disinterestedness fund, ChrysCapital, has added its disinterestedness acknowledgment in the Amtek group, which has a above attendance in the auto basic industry. The PE armamentarium has bought 7% in Amtek Auto, 4% added pale in Amtek India and beginning disinterestedness of 7.6% in Ahmednagar Forgings.

Confirming the fund's acquisitions, Amtek accumulation CFO S Singhi said, "ChrysCapital has been affairs pale in our accumulation companies from the abiding point of view, with a time border of about 2-3 years. The armamentarium appears to be bullish on the auto sector."

The PE fund's investments accept appear at a time back the auto and auto accessory sectors are casual through a asperous application afterward the ascent absorption ante and a arrest in demand.

ChrysCapital has spent Rs 32 crore to access its captivation in Amtek India from 5.8% to 9.8% and alloyed Rs 23 crore into Ahmednagar Forgings.

From its aiguille of Rs 207 on December 17, 2007, the shares of Amtek India slipped 66% to abutting at Rs 70.9 on Friday. Ahmednagar Forgings afford 67% to Rs 89 during the aforementioned period.

The Amtek Accumulation is in the action of amalgamation the operations of its accumulation companies, Amtek India, Ahmednagar Forgings, Amtek Arena Gears, Amtek Crankshaft, Amtek Castings India with Amtek Auto.

After the merger, ChrysCapital will authority about 8-9% pale in the alloyed entity, according to Singhi.

Amtek Auto has alone affairs to access the Frankfurt-based KSM Castings due to differences over valuations. Amtek Auto reportedly offered 15% beneath than the allurement amount of 220 mn euros. Two PE funds additionally withdrew from the race.

Consequently, KSM Castings has put its sales affairs on the backburner. The proposed accretion was allotment of Amtek's action to consolidate its European business. Amtek enjoys about 40% of the castings bazaar allotment in Western Europe.

KSM Castings is a arch architect of aegis and complex, ablaze metal castings for the all-around automotive industry. Amtek has been on an accretion spree. The accumulation aboriginal acquired the US-based arena apparatus architect Midwest Manufacturing in 2002, followed by the UK-based GWK and Lloyds Brierly Hill.

It afresh bought Triplex Ketlon, a accessory aggregation in the UK. In the calm market, Amtek acquired the Pune-based Akiel Castings and Amforge's conrod analysis in Delhi.

Source: Economic Times

Indices closed in RED

Key indices suffered aciculate losses apery its all-around aeon on ambiguity about the authority of the US government's $700 billion coffer bailout. Aerial animation was the authentication of the day's trading session. All BSE sectoral indices suffered losses with IT, acreage and cyberbanking arch the fall. However state-run oil business firms brazier anemic bazaar trend. The bazaar beyond was weak. Ranbaxy Labs angled over 11%.

European markets were trading lower. Key indices in UK, France and Germany were bottomward 1.06% to 2.69%. Asian markets, which opened afore Indian markets, were mixed. Key indices in China, Hong Kong and Singapore were bottomward by 1.56% to 3.87%. However, key indices in Taiwan and South Korea were up by 1.17% to 1.44%. Japanese banking markets were bankrupt today for Autumnal Equinox Day, a civic holiday.

The BSE 30-share Sensex was bottomward 424.65 credibility or 3.03% to 13,570.31. The basis afford 451.49 credibility at the day's low of 13,543.47, hit in fag end of the session. The Sensex fell 16.7 credibility at day's aerial of 13,978.26, hit in mid-morning.

The S&P CNX Nifty was bottomward 96.15 credibility or 2.28% to 4,126.90. Nifty September 2008 futures were at 4135, at a exceptional of 8.1 credibility as compared to atom closing.

The BSE Mid-Cap basis was bottomward 2.06% at 5,113.31 and the BSE Small-Cap basis was bottomward 1.63% at 6,092.97.

The bazaar beyond was anemic on BSE with 760 shares advancing as compared to 1823 that declined. 69 shares remained unchanged.

BSE clocked a about-face of Rs 4322 crore compared with Rs 4,886.79 on Monday, 22 September 2008. NSE's futures & options (F&O) articulation about-face was Rs 68368.66 crore, which was college than Rs 58188.03 crore on Friday, 19 September 2008.

India's better biologic maker by sales Ranbaxy Laboratories beneath 11.05% at Rs 308.85 on letters the Canadian biologic regulator, Health Canada, issued a apprehension to Ranbaxy adage it will be decidedly alert about biologic business applications from Ranbaxy afterwards the US biologic regulator blocked the auction of added than 30 all-encompassing medicines fabricated in two factories by the company. The banal had beneath 2.70% in the antecedent session.

India's better clandestine area abutting by bazaar capitalisation and oil refiner Reliance Industries (RIL) beneath 1.35% at Rs 2009.70. The banal came off session's aerial of Rs 2,096. Reliance Industries (RIL) began assembly of awkward oil at KG-D6 block of the Krishna Godavari basin on 17 September 2008, the aggregation said on 22 September 2008. RIL holds 90% accommodating absorption in the block while the antithesis is actuality captivated by Niko Resources.

India's better aluminium ambassador Hindalco Industries fell 1.59% at 108.10 afterwards hitting a 52-week low of Rs 106.20 on BSE. The company's Rs 5,050 crore rights allotment alms for cable Monday, 22 September 2008. The auction in a arrangement of three shares for every seven captivated at Rs 96 a allotment will abutting on 10 October 2008. The aggregation aims to use the funds to accord a arch accommodation it had taken to buy Canada's Novelis in 2007.

Software shares confused on growing worries about outsourcing affairs amidst a all-around banking turmoil. Satyam Computer (down 5.98% at Rs 331.65), TCS (down 5.91% at Rs 720.75), Wipro (down 5.77% at Rs 390.45), and Infosys Technologies (down 5.19% at Rs 1,543.35), slipped. The BSE IT basis underperformed the Sensex, falling 5.07% at 3,455.05. Export-driven Indian software firms acquire added than bisected of their acquirement in dollar terms.

Realty shares continued antecedent session's fall. Indiabulls Absolute Acreage (down 6.93% at Rs 209.50), Housing Development & Infrastructure (down 5.97% at Rs 209.60), and Unitech (down 3.66% at Rs 123.80), slumped. The BSE Acreage basis underperformed the Sensex, falling 4.68% to 3,903.82.

India's better absolute acreage developer by bazaar capitalisation DLF fell 6.25% at Rs 394.60. As per contempo reports, the aggregation is retrenching about 300 advisers beyond all its centres and subsidiaries as it decides to apathetic bottomward its activity execution, abnormally in Tier II cities, in the face of shrinking appeal and big-ticket borrowing.

Banking shares were adamantine hit on fears bounded banks may reportedly ache losses on their acknowledgment to the US banking giants that burst recently. ICICI Coffer (down 5.48% at Rs 599.70), HDFC Coffer (down 4.62% at Rs 1237.70), and and State Coffer of India (down 4.08% at Rs 1502.75), dipped. The BSE Bankex underperformed the Sensex, falling 4.19% to 6,804.42.

As per reports, nine of the country's better bartering banks including State Coffer of India (SBI), ICICI Coffer and HDFC Coffer reportedly accept acknowledgment of $420 actor (Rs 2,000 crore) in the US banking giants. As per the government, banks added than SBI would ache losses of Rs 600 crore due to the crisis. SBI abandoned has acknowledgment of $170 actor in Freddie Mac and Fannie Mae. The accessible area giant's acknowledgment in Lehman Brothers is estimated at $17 million.

The estimated losses are due to their buying of balance awash by Fannie Mae, Freddie Mac, Merrill Lynch & Co., and Lehman Brothers Holding Inc, which accept beneath in amount arch to marked-to-market losses, the address said.

Shares of three state-run oil business firms rose afterwards awkward oil for November 2008 commitment fell $3.30 to $106.07 a butt in cyberbanking trading today, 23 September 2008. BPCL (up 2.51% at Rs 345.55), Indian Oil Corporation (up 1.62% at Rs 388.60), and HPCL (up 1.24% at Rs 233.45), rose.

Reliance Industries clocked a accomplished about-face of Rs 396.30 crore on BSE. Reliance Capital (Rs 277.86 crore), Sesa Goa (Rs 239.39 crore), State coffer of India (Rs 136.38 crore), and Reliance Natural Resources (Rs 135.41 crore), were the added about-face toppers on BSE in that order.

Sesa Goa appear a accomplished aggregate of 1.86 crore shares on BSE. Reliance Natural Resources (1.67 crore shares), Apollo Tyre (74.32 lakh shares), IFCI (67.07 lakh shares), and Cals Refineries (62.66 lakh shares), were the added aggregate toppers on BSE in that order.

The barometer basis is bottomward 6716.68 credibility or 33.10% in the agenda year 2008 so far from its abutting of 20,286.99 on 31 December 2007. It is 7636.46 credibility or 36% beneath its best aerial of 21,206.77 addled on 10 January 2008.

Diversified abutting Karuturi All-around rose 1.98% to Rs 20.65 on letters the aggregation affairs to accession $100 actor by affairs 15% pale in its Dubai based accessory to an bearding clandestine disinterestedness firm.

Steel cycle maker Tayo Rolls fell 3.59% to Rs 135.80 afterwards the aggregation appointed a lath accommodated on 26 September 2008 to amount and fix bandy arrangement for its Rs 60.34 crore rights issue. The banal came off session's aerial of Rs 148.50 hit in aboriginal trade.

Construction abutting Nagarjuna Construction Aggregation absent 3.78% to Rs 112 alike as the aggregation anchored four orders accumulation Rs 413 crore.

The BSE and NSE will extend trading hours from 24 September 2008 on annual of disruption of accessory casework due to sun outage. Trading will alpha as accepted at 9.55 IST, but will be abeyant amid 11.25 IST and 12.10 IST. The day's affair will end at 16.15 IST. The new trading timing will be able till 8 October 2008.

Relentless selling in all sectors paticularly in Technology, Realty and Bank stocks

Relentless selling in Technology, Realty and Banks sees the Frontline Indices collapse in the second half of trade. Sensex down 425 points at 13570; Nifty down 96 points at 4127. CNX Midcap Index down 1.5%; BSE Small-Cap Index down 1.6%; Nifty Junior down 2.6%. BSE-IT Index down 5.1%; Wipro down 6.2%; Satyam down 6.1%; TCS down 6%; Infosys down 5.3%; HCL Tech up 0.7%. BSE Realty Index down 4.7%; Indiabulls Real down 7.5%; DLF down 6.3%; Unitech down 3.5%; Parsvanath Dev down 3.5%; Akruti City up 3.5%.

BSE Bank Index down 4.2%; ICICI Bk down 5.8%; HDFC Bk down 5.2%; SBI down 4.1%; PNB down 3.2%. Non-Index Banks: Canara Bk down 5.8%; Kotak Mah Bk down 4.1%; Axis Bk down 3.1%; Bank of India down 2.4%. BSE Cap Goods Index down 2.3%; Crompton Greaves down 5.1%; Praj down 3.9%; BHEL down 3.6%; Punj Lloyd down 2%.

 

Auto Losers: Tata Motors down 5.2%; Maruti down 2.8%; Ashok Leyland down 2.2%; M&M down 0.7%. Metals: Tata Steel down 4.8%; Jindal Steel down 3.9%; Ispat down 3.1%; Sterlite down 2.4%; Hindalco down 1.9%; Nalco up 2.8%; Sesa Goa up 2.7%. Index Losers: Ranbaxy down 11%; HDFC down 5.8%;Suzlon down 2.5%; Zee Ent down 2.5%. Non-Index Losers: Deccan Chronicle down 11%; Rolta down 9.6%; GMDC down 9.1%; Moser Baer down 8.5%; Lanco down 7.5%; HDIL down 6%. Index Gainers: Sun Pharma up 3.4%; BPCL up 2.3%; Cairn India up 1.5%; Hero Honda up 1.3%.

 

NSE Advance Decline Ratio 1:4. FNO turnover at Rs 68,369 crore Vs Rs 58,188 crore. Total Market Turnover at Rs 83,294 crore Vs Rs 74,573 crore.

 

FNO Snapshot: Rollover Stats: (D-2) Nifty Rollover at 36.4% Vs 42%; Market wide Rollover at 35.3% Vs 45% in the previous expiry. Short Rollovers pick up in Nifty; Oct series adds 53 lakh shares (48%) in OI; Nifty Sept ends at a 25 point discount. Cement and Metal stocks see a high rollover. Fresh Short Build-up in Real Estate & Banks.

 

Options Activity: Nifty 4100 put adds 2 lakh shares; Nifty 4200 call adds 1 lakh shares.

 

Long dated options: Nifty 4200 Dec call adds 2.3 lakh shares; Nifty 4200 Dec put adds 2.3 lakh shares.

Rollovers:

 

Index Heavy Weights     Rollovers

 

Reliance Inds                  32%

 

SBI                                32%

 

ICICI Bank                    32%

 

DLF                               29%

 

RPL                               31%

 

Tata Steel                       37%

 

Momemtum Stocks  Rollovers

 

Renuka                       26%

 

Ispat                           34%

 

TTML                        35%

 

RNRL                        30%

 

Fresh Shorts: ICICI Bank, DLF, Reliance, HCC, SBI, Unitech

Asian Markets Follows Wall Street Losses

Hong Kong, Shanghai shows retreat While Kospi Register Some Gains

The stock markets across the Asian region closed mostly lower on worries about the effectiveness of the U.S. government's $700 billion bailout plan for failing financial firms. Investors also turned cautious ahead of the U.S. Treasury Secretary Henry Paulson's testimony to the Senate Banking Committee. The Dow closed down 3.3% at 11,015.69, the Nasdaq closed down 4.2% at 2,178.98 and the S&P 500 closed down 3.8% at 1,207.09.

Crude oil futures for November settlement fell more than $2 in the Asian session Tuesday after the contract surged nearly $7 to settle at $109.37 a barrel. Crude-oil futures leaped more than $16 a barrel yesterday to score their biggest one-day gain in dollar terms since 1984 -- when crude began trading on the New York Mercantile Exchange. Crude futures rallied yesterday to a high of $130 a barrel -- their highest intraday level in two months -- buoyed by a steep drop in the U.S. dollar and speculation that the Bush administration's proposal to stabilize the financial sector might help revive economic growth.

Trading was halted for five minutes after the October crude contract reached the daily price-movement limit of $10 per barrel. Under trading rules, the price-change limit is increased by another $10. Crude for October delivery rose $16.37, or 15.7%, to close at $120.92 a barrel on the New York Mercantile Exchange. The gain surpassed the previous price-gain record of $10.75, registered on June 6 of this year. According to Fact Set this is the highest percentage rise in a single day was seen on Jan. 3, 1994, at 20.9%.

On the currency front, the Australian dollar held firm against a broadly weak U.S. dollar, supported by a rebound in commodities. However, the Aussie trimmed gains as a fresh bout of risk aversion swept financial markets. In late trade, the Aussie eased to US$0.8414 from a session high of US$0.8470. The Aussie closed Monday's local session at US$0.8328-0.8331

The New Zealand dollar steadied slightly below three-week highs on Tuesday. The kiwi finished the session at US$0.6892-0.6902 compared to Monday's local close of US$0.6861-0.6871.

The South Korean won fell against the U.S. dollar. The local unit finished the session at 1,149.0 a dollar, down from Monday's close of 1,140.3 a dollar.

Coming back in Asian equity markets, the financial markets in Japan remained closed on account of Autumn Equinox holiday.

The Chinese stock market closed lower, on profit taking, after the key index surged more than 17% over the previous two sessions. Property developers and liquor producers led the losers. However, index heavyweight PetroChina posted sharp gains on news that its parent company bought 60 million shares, equivalent to a 0.03% stake. The benchmark Shanghai Composite Index closed down 1.56% at 2,201.51.

The Hong Kong market closed sharply lower on profit taking following steep gains in the previous two sessions. The benchmark Hang Seng index closed down 3.87% at 18,872.85.

The Australian stock market closed sharply lower, following two days of gains that saw the index climb almost 10%. The benchmark S&P/ASX 200 index closed down 1.9% at 4,923.5 and the broader All Ordinaries index lost 1.8% at 4,957.7.

The New Zealand stock market closed lower after posting 3% gains over the previous two trading sessions. The benchmark NZX 50 index closed down 0.85% at 3,228.19 and the broader NZX All Capital index lost 0.79% to finish at 3,241.37.

The South Korean market closed higher, recovering from a weak start following Wall Street's plunge overnight. Investors bought machinery, finance and other blue-chip stocks, despite weakness among regional markets and the biggest one-day jump in crude oil prices on Monday. The benchmark Korea Composite Stock Price Index, or KOSPI, rose 1.44% to finish at 1,481.37, extending gains for the third consecutive trading session.

In India, weak global markets and high crude oil prices spooked domestic markets as benchmark index plunged by about 3% as doubts grew about the success of the US government $700 billion bailout package to shore up the economy.

As per provisional closing, the BSE 30-share Sensex was down 424.65 points or 3.03% to 13,570.31. The index shed 451.49 points at the day's low of 13,543.47, hit in fag end of the session. The Sensex fell 16.7 points at day's high of 13,978.26, hit in mid-morning. The S&P CNX Nifty was down 95.80 points or 2.27% to 4127.25.

Elsewhere, Taiwan's Taiex closed up 1.2% at 6,182; Singapore's STI closed down 2.7% at 2,476; Malaysia's KLCI closed down 0.2% at 1,026; Indonesia's Jakarta Composite index closed down 1.3% at 1,873. Japanese markets were closed for a holiday.

In the other part of the world, European shares declined, with consumer discretionary stocks and banks under pressure as oil futures hovered around $107 a barrel and investors continued to fret about the U.S. government's plans to stabilize the financial sector and the health of the European economy.

On a national level in Europe, the U.K. FTSE 100 index fell 2% to 5,13154, the German DAX 30 index declined 0.6% to 6,071.88 and the French CAC-40 index fell 1.4% to 4,165.21. At 10.37 GMT continued to gain further as U.K. FTSE 100 index plunged further by 2.24% to 5,118.78. The German DAX 30 index decreased by 0.73% to 6,062.94, while the French CAC-40 index was down by 1.6% to 4,156.10.

Looking ahead for the day, all eyes will be on Federal Reserve Chairman Ben Bernanke when he testifies before the Senate Banking Committee regarding the U.S. financial markets. It will be accompanied by housing price index for the month of July and Richmond Fed manufacturing index for the month of September. In the evening ABC/ Washington Post will release its weekly consumer confidence report for the week ended on 21 September 2008.

Change in Market Timings due to Sun Outage

24th September, 2008 to 8th October, 2008

NSE MARKET TIMINGS during SUN OUTAGE
MARKET OPEN 09:55 AM to 11:25 AM
BREAK 11:25 AM to 12:10 PM
MARKET RESUME 12:10 PM to 04:15 PM
CLOSING SESSION 04:35 PM to 04:45 PM

BSE MARKET TIMINGS during SUN OUTAGE
MARKET OPEN 09:55 AM to 11:25 AM
BREAK 11:25 AM to 12:10 PM
MARKET RESUME 12:10 PM to 04:15 PM
CLOSING SESSION 04:30 PM to 04:50 PM

BSE Bulk Deals to Watch - Sep 23 2008

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
23/9/2008 531223 ANJANI SYNTH PARI STOCK TRADING PVT LTD B 120000 49.93
23/9/2008 531223 ANJANI SYNTH PARI STOCK TRADING PVT LTD S 120000 45.23
23/9/2008 506074 ARSHIYA INTL ARCHANA AJAY MITTAL B 893277 155.00
23/9/2008 506074 ARSHIYA INTL TEMPLETON M F AC FRANKLIN INDIA HIGH GROWTH CO FUND S 895561 155.00
23/9/2008 519532 ASIAN TEA EX VHM IMPEX PRIVATE LTD B 92813 94.73
23/9/2008 533016 AUSTRAL COKE OPG SECURITIES P LTD B 172671 219.12
23/9/2008 533016 AUSTRAL COKE OPG SECURITIES P LTD S 172671 219.07
23/9/2008 590059 BIHAR TUBES MUKESH JAIN B 43000 201.57
23/9/2008 526652 CALS REF LTD NIDHI HARSHVARDHAN BHUWALKA B 5700000 4.42
23/9/2008 532413 CEREBRA INT SURESH VALANI S 60000 22.03
23/9/2008 531367 DOLLEX INDUT EVOLUTION CORPORATE SERVICES PVT LTD B 70000 13.00
23/9/2008 531367 DOLLEX INDUT YUSUF KHAN S 72000 12.98
23/9/2008 513059 G.S. AUTO SPJSTOCK B 291649 89.08
23/9/2008 513059 G.S. AUTO NARESH CHAND JAIN B 20521 89.34
23/9/2008 513059 G.S. AUTO HARDIK M MITHANI S 70620 89.61
23/9/2008 513059 G.S. AUTO SPJSTOCK S 197649 86.28
23/9/2008 513059 G.S. AUTO NARESH CHAND JAIN S 20521 90.04
23/9/2008 531137 GEMSTONE INV PREM M PARIKH B 25000 59.95
23/9/2008 531137 GEMSTONE INV BHAVESH P PABARI B 25114 59.94
23/9/2008 512219 INDUSVISTA KAMLESHCHANDRA B 26000 32.20
23/9/2008 505840 JAIPAN INDUS VHM IMPEX PRIVATE LTD B 50488 201.08
23/9/2008 531602 KOFF BR PICT LAXMI CAP BROKING PVT LTD B 27802 41.71
23/9/2008 531602 KOFF BR PICT LEELABEN AMRUTLAL DARJI S 46036 40.15
23/9/2008 531096 MOUNT EVE MI TATA TEA LTD B 384000 140.00
23/9/2008 590011 MOVING PICTU-PMS VINCENT COMMERCIAL CO. LTD. B 200000 12.50
23/9/2008 590011 MOVING PICTU-PMS MACKERTICH CONSULTANCY SERVICESPVTLTD S 200000 12.50
23/9/2008 531349 PANACEA BIOT BNP PARIBAS ARBITRAGE B 493777 226.00
23/9/2008 531349 PANACEA BIOT CLSA MAURITIUS LIMITED B 1375367 228.50
23/9/2008 531349 PANACEA BIOT MERRIL LYNCH CAPITAL MARKETS ESPANA SA SV FCCB S 1869144 227.84
23/9/2008 506605 POLYCHEM LTD HASMUKH LILADHAR PANCHAL S 3300 151.67
23/9/2008 503873 PRIYA SPIN L RELIGARE FINVEST LTD LIQUIDATI S 53043 8.41
23/9/2008 500368 RUCHI SOYA GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD B 1200000 77.15
23/9/2008 500368 RUCHI SOYA CALYON S 1200000 77.15
23/9/2008 532031 SARANG CHEMI SHAH EKTA RIPPLE B 25000 2.59
23/9/2008 511607 SHLOKA INFO VHM IMPEX PRIVATE LTD B 23100 84.26
23/9/2008 507998 SIMMOND MARS JAYDEVMODY S 12036 54.92
23/9/2008 532372 VIRINCHI TE IRON AGE INDIA LIMITED B 209000 15.10
23/9/2008 532372 VIRINCHI TE NAMASIVAYAMSATHASIVAM S 209000 15.10
23/9/2008 533011 VISHAL INFO OPG SECURITIES P LTD B 184775 336.99
23/9/2008 533011 VISHAL INFO OPG SECURITIES P LTD S 184775 336.86

NSE Bulk Deals to Watch - Sep 23 2008

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
23-SEP-2008,AUSTRAL,Austral Coke & Projects L,AMBIT SECURITIES BROKING PVT. LTD.,BUY,210547,220.35,-
23-SEP-2008,SASKEN,Sasken Commu Techno Ltd,WEXFORD CAPITAL LLC A/C WEXFORD SPECTRUM INVESTORS LLC,BUY,144900,134.93,-
23-SEP-2008,VINCARDS,Vintage Cards & Creations,YUVAK SHARE TRADING PVT LTD,BUY,3212,55.90,-
23-SEP-2008,AUSTRAL,Austral Coke & Projects L,AMBIT SECURITIES BROKING PVT. LTD.,SELL,210547,220.28,-
23-SEP-2008,GOLDTECH,Goldstone Tech Ltd.,SANCHANIYA ANKIT RAJENDRA,SELL,110000,118.78,-
23-SEP-2008,VINCARDS,Vintage Cards & Creations,YUVAK SHARE TRADING PVT LTD,SELL,6691,55.92,-

Indices suffer savage cut on weak global cues; Ranbaxy tanks over 11%

Key benchmark indices suffered sharp losses mirroring its global peers on uncertainty about the potency of the US government's $700 billion bank bailout. High volatility was the hallmark of the day's trading session. All BSE sectoral indices suffered losses with IT, realty and banking leading the fall. However state-run oil marketing firms bucket weak market trend. The market breadth was weak. Ranbaxy Labs slumped over 11%.

European markets were trading lower. Key indices in UK, France and Germany were down 1.06% to 2.69%. Asian markets, which opened before Indian markets, were mixed. Key indices in China, Hong Kong and Singapore were down by 1.56% to 3.87%. However, key indices in Taiwan and South Korea were up by 1.17% to 1.44%. Japanese financial markets were closed today for Autumnal Equinox Day, a national holiday.

The BSE 30-share Sensex was down 424.65 points or 3.03% to 13,570.31. The index shed 451.49 points at the day's low of 13,543.47, hit in fag end of the session. The Sensex fell 16.7 points at day's high of 13,978.26, hit in mid-morning.

The S&P CNX Nifty was down 96.15 points or 2.28% to 4,126.90. Nifty September 2008 futures were at 4135, at a premium of 8.1 points as compared to spot closing.

The BSE Mid-Cap index was down 2.06% at 5,113.31 and the BSE Small-Cap index was down 1.63% at 6,092.97.

The market breadth was weak on BSE with 760 shares advancing as compared to 1823 that declined. 69 shares remained unchanged.

BSE clocked a turnover of Rs 4322 crore compared with Rs 4,886.79 on Monday, 22 September 2008. NSE's futures & options (F&O) segment turnover was Rs 68368.66 crore, which was higher than Rs 58188.03 crore on Friday, 19 September 2008.

India's largest drug maker by sales Ranbaxy Laboratories declined 11.05% at Rs 308.85 on reports the Canadian drug regulator, Health Canada, issued a notice to Ranbaxy saying it will be particularly cautious about drug marketing applications from Ranbaxy after the US drug regulator blocked the sale of more than 30 generic medicines made in two factories by the company. The stock had declined 2.70% in the previous session.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) declined 1.35% at Rs 2009.70. The stock came off session's high of Rs 2,096. Reliance Industries (RIL) began production of crude oil at KG-D6 block of the Krishna Godavari basin on 17 September 2008, the company said on 22 September 2008. RIL holds 90% participating interest in the block while the balance is being held by Niko Resources.

India's largest aluminium producer Hindalco Industries fell 1.59% at 108.10 after hitting a 52-week low of Rs 106.20 on BSE. The company's Rs 5,050 crore rights share offering for subscription Monday, 22 September 2008. The sale in a ratio of three shares for every seven held at Rs 96 a share will close on 10 October 2008. The company aims to use the funds to repay a bridge loan it had taken to buy Canada's Novelis in 2007.

Software shares tumbled on growing worries about outsourcing prospects amid a global financial turmoil. Satyam Computer (down 5.98% at Rs 331.65), TCS (down 5.91% at Rs 720.75), Wipro (down 5.77% at Rs 390.45), and Infosys Technologies (down 5.19% at Rs 1,543.35), slipped. The BSE IT index underperformed the Sensex, falling 5.07% at 3,455.05. Export-driven Indian software firms earn more than half of their revenue in dollar terms.

Realty shares extended previous session's fall. Indiabulls Real Estate (down 6.93% at Rs 209.50), Housing Development & Infrastructure (down 5.97% at Rs 209.60), and Unitech (down 3.66% at Rs 123.80), slumped. The BSE Realty index underperformed the Sensex, falling 4.68% to 3,903.82.

India's largest real estate developer by market capitalisation DLF fell 6.25% at Rs 394.60. As per recent reports, the company is retrenching around 300 employees across all its centres and subsidiaries as it decides to slow down its project execution, especially in Tier II cities, in the face of shrinking demand and expensive borrowing.

Banking shares were hard hit on fears local banks may reportedly suffer losses on their exposure to the US financial giants that collapsed recently. ICICI Bank (down 5.48% at Rs 599.70), HDFC Bank (down 4.62% at Rs 1237.70), and and State Bank of India (down 4.08% at Rs 1502.75), dipped. The BSE Bankex underperformed the Sensex, falling 4.19% to 6,804.42.

As per reports, nine of the country's largest commercial banks including State Bank of India (SBI), ICICI Bank and HDFC Bank reportedly have exposure of $420 million (Rs 2,000 crore) in the US financial giants. As per the government, banks other than SBI would suffer losses of Rs 600 crore due to the crisis. SBI alone has exposure of $170 million in Freddie Mac and Fannie Mae. The public sector giant's exposure in Lehman Brothers is estimated at $17 million.

The estimated losses are due to their ownership of securities sold by Fannie Mae, Freddie Mac, Merrill Lynch & Co., and Lehman Brothers Holding Inc, which have declined in value leading to marked-to-market losses, the report said.

Shares of three state-run oil marketing firms rose after crude oil for November 2008 delivery fell $3.30 to $106.07 a barrel in electronic trading today, 23 September 2008. BPCL (up 2.51% at Rs 345.55), Indian Oil Corporation (up 1.62% at Rs 388.60), and HPCL (up 1.24% at Rs 233.45), rose.

Reliance Industries clocked a highest turnover of Rs 396.30 crore on BSE. Reliance Capital (Rs 277.86 crore), Sesa Goa (Rs 239.39 crore), State bank of India (Rs 136.38 crore), and Reliance Natural Resources (Rs 135.41 crore), were the other turnover toppers on BSE in that order.

Sesa Goa reported a highest volume of 1.86 crore shares on BSE. Reliance Natural Resources (1.67 crore shares), Apollo Tyre (74.32 lakh shares), IFCI (67.07 lakh shares), and Cals Refineries (62.66 lakh shares), were the other volume toppers on BSE in that order.

The barometer index is down 6716.68 points or 33.10% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 7636.46 points or 36% below its all-time high of 21,206.77 struck on 10 January 2008.

Diversified firm Karuturi Global rose 1.98% to Rs 20.65 on reports the company plans to raise $100 million by selling 15% stake in its Dubai based subsidiary to an undisclosed private equity firm.

Steel roll maker Tayo Rolls fell 3.59% to Rs 135.80 after the company scheduled a board meet on 26 September 2008 to price and fix swap ratio for its Rs 60.34 crore rights issue. The stock came off session's high of Rs 148.50 hit in early trade.

Construction firm Nagarjuna Construction Company lost 3.78% to Rs 112 even as the company secured four orders aggregating Rs 413 crore.

The BSE and NSE will extend trading hours from 24 September 2008 on account of disruption of satellite services due to sun outage. Trading will start as usual at 9.55 IST, but will be suspended between 11.25 IST and 12.10 IST. The day's session will end at 16.15 IST. The new trading timing will be effective till 8 October 2008.

Battered market

The correction continued for the second consecutive day on weak global indices and rising crude prices. Dwindling foreign fund inflows into the domestic market in the past few sessions also adversely affected the sentiment. After shedding around 200 points by mid-morning, the market remained in the negative territory, however in afternoon it came close to erasing its losses. But, the mood turned extremely bearish, as widespread selling in IT, realty, banking and teck stocks dragged the index below the 13,600 mark to an intra-day low of 13,543. The Sensex finally managed to pare some of its losses and close at 13,995, down 425 points. The broad-based Nifty closed at 4,127, down 96 points.

The breadth of the market was extremely negative. Of the 2,650 stocks traded on the BSE, 1,808 stocks declined, whereas only 772 stocks advanced. The remaining 70 stocks remained unchanged. All the sectoral indices on the BSE were hammered. The BSE IT was the worst hit and tanked 5.07% at 3,455 followed by the BSE Realty index (down 4.68% at 3,903.82), the BSE Bankex (down 4.19% at 6,804.42) and the BSE Teck index (down 3.54% at 2,763.73).

Barring ACC and Tata Power, all other Sensex stocks bore the brunt of heavy selling. Ranbaxy Laboratories led the slump and crashed 11.05% at Rs308.85. Among other major laggards, DLF tumbled 6.25% at Rs394.60, Satyam Computer Services dropped 5.98% at Rs331.65, Tata Consultancy Services slumped 5.91% at Rs720.75, Wipro fell 5.77% at Rs390.45 and HDFC declined 5.53% at Rs2,198.05. ICICI Bank lost 5.48% at Rs599.70, Infosys Technologies was down by 5.19% at Rs1543.35 and Tata Motors shed 5.03% at Rs394.05. The other major front-line stocks shed 1-4% each. However, ACC rose marginally at Rs626.20 up 0.27% and Tata Power rose 0.16% at Rs1,022.30.

IT stocks lost significantly on relentless selling. Rolta India dropped 9.61% at Rs260.40, Moser Baer India shed 8.46% at Rs122.25, NIIT tumbled 5.21% at Rs58.25 and Tech Mahindra declined 3.11% at Rs636.20. Aptech, Oracle, Mphasis and Patni Computer shed 2% each.

Over 1.86 crore Sesa Goa shares changed hands on the BSE followed by Reliance Natural Resources (1.67 crore shares), Apollo Tyre (0.74 crore shares), IFCI (0.67 crore shares) and Cals Refineries (0.62 crore shares).

Value-wise, Reliance Industries registered a turnover of Rs395 crore on the BSE followed by Reliance Capital (Rs277 crore) and Sesa Goa (Rs239 crore).

Post Session Commentary - Sep 23 2008

Indian Markets crushed during final hours of trading as huge selling pressure was witnessed across the board on weak global cues. There is an uncertainty on the details regarding the U.S. government's $700 billion plan to fix the financial market turmoil and the two major Wall Street investment banks Goldman Sachs and Morgan Stanley, converted to a traditional banking structure. Crude oil prices also put fire into the markets as jumped by $16.37 to $120.92 a barrel after touching an intraday high of $130 a barrel, on the New York Mercantile Exchange. Indian markets today opened on downbeat note on the back of weak cues across the globe. Further, markets managed to recover some losses in early trade but were not able to sustain the momentum and slipped further. Huge sell off on the back of profit booking forced markets to land in extremely negative territory. Weak European markets also contributed to the selling pressure. BSE Sensex ended below 13,600 level and NSE Nifty closed below 4,150 mark. From the sectoral front, all of the indices are ended with losses and among those, sharp cut was seen in Bank, Capital Goods, Metal, Reality, IT and Oil & Gas stocks. Mid cap and Small cap stocks also got hammered during the trading session as ended with cut of more than 2% and 1% respectively. The market breadth was negative as 1823 stocks closed in red while 760 stocks closed in green and 69 stocks remained unchanged.

The BSE Sensex closed lower by 424.65 points at 13,570.31 and NSE Nifty ended down by 96.15 points at 4,126.90. The BSE Mid Caps and Small Caps closed with losses of 107.65 points at 5,113.31 and by 101.14 points at 6,092.97. The BSE Sensex touched intraday high of 13,978.26 and intraday low of 13,543.67.

Losers from the BSE are Ranbaxy Lab (11.05%), DLF Ltd (6.25%), Satyam Computer (5.98%), TCS Ltd (5.91%), Wipro Ltd (5.77%), HDFC (5.53%), ICICI Bank Ltd (5.48%), JP Associates (5.38%), Infosys Tech (5.19%), Tata Motors (5.03%) and Tata Steel (4.62%).

The BSE Bank index closed lower by 297.87 points at 6,804.42. Losers are Canara Bank (5.53%), ICICI Bank Ltd (5.48%), HDFC Bank Ltd (4.52%), IDBI Bank Ltd (4.50%), SBI (4.08%) and Kotak Bank (3.79%).

The BSE Capital Goods index lost 258.29 points to close at 11,218.80. Major losers are Everest Kanto (6.78%), Usha Martin (6.08%), Jyoti Struct (4.58%), Crompton Greaves (4.10%), Praj Indus (4.08%) and BHEL (3.43%).

The BSE Metal index plunged 208.40 points to close at 9,924.54. Major losers are Tata Steel (4.62%), Jindal Steel (3.73%), JSW SL (3.63%), Ispat Indus (3.10%), Sterlite In (2.18%) and Welspan Guajrat Sr (2.14%).

The BSE Reality index ended lower 191.68 points to close at 3,903.82. As Indiabull Real (6.93%), DLF Ltd (6.25%), Housing Development (5.97%), Orbit Co (4.17%), Unitech Ltd (3.66%) and Parsvnath (3.24%) closed in negative territory.

The BSE IT index dropped by 184.38 points to close at 3,455.05. As Rolta India (9.61%), Moser Bayer (8.46%), Satyam Computer (5.98%), TCS Ltd (5.91%), Wipro Ltd (5.77%), NIIT Ltd (5.21%) and Infosys Tech (5.19%) closed in negative territory.

The BSE Oil & Gas index ended down by 76.67 points at 8,972.89 as Reliance Nat Res (2.52%), Reliance (1.35%), Aban Offshore (0.91%), Reliance Pet (0.72%), Gail India (0.66%) and Essar Oil Ltd (0.61%) ended in negative territory.

Market to edge lower on weak global cues

Key benchmark indices are geared for a weak start today, 23 September 2008 tracking weak global markets on concerns of the long-term implications of the US Federal Reserve's $700 billion bailout plan worried investors. Volatility is likely to remain high as derivative contracts for September 2008 series expire on Thursday, 25 September 2008.

As per reports, Nifty rollover of positions from September 2008 series to October 2008 series was 29% while market-wide rollover stood at 25%, as on Monday, 22 September 2008.

Crude oil prices soared to an intra-day high of $130 a barrel on Monday, 22 September 2008 before easing in a rally sparked by the expiry of the front-month futures contract and weakness in the US dollar. US light crude for November delivery was down 42 cents at $108.95 a barrel.

Most Asian markets were trading weak today, 23 September 2008. China's Shanghai Composite slipped 0.48% or 10.83 points at 2,225.57, Hong Kong's Hang Seng plunged 2.19% or 429.51 points at 19,202.69, Singapore's Straits Times fell 1.88% or 47.78 points at 2,496.35, Taiwan's Taiwan Weighted dropped 0.21% 12.72 points at 6,097.88. However, South Korea's Seoul Composite was up 0.31% or 4.58 points at 1,464.92.

US markets witnessed a sell off on Monday, 22 September 2008 on worries about the government's ability to bailout the financial system. The Dow plunged 372.75 points, or 3.27%, to 11,015.69. The S&P 500 index slipped 47.99 points, or 3.82%, to 1,207.09, and the Nasdaq Composite index was down 94.92 points, or 4.17%, to 2,178.98.

Back home, profit booking after a solid surge in the previous session and rise in crude oil pulled the market lower on Monday, 22 September 2008. The BSE 30-share Sensex fell 47.36 points or 0.34% to 13,994.96 and the S&P CNX Nifty fell 22.20 points or 0.52% to 4223.05.

Foreign institutional investors (FIIs) were net equity buyers worth Rs 138.21 crore while mutual funds sold shares worth Rs 206.12 crore on Monday, 22 September 2008, according to provisional data on NSE. They were net buyers of Rs 511.52 crore in the futures & options segment on Monday, 22 September 2008.

Indian Banks exposure to failed investment banks

Nine of the country's largest commercial banks including State Bank of India (SBI), ICICI Bank and HDFC Bank reportedly have exposure of $420 million in the US financial giants which collapsed recently. The government feels banks other than SBI would suffer losses of Rs 600 crore due to the crisis.

The Children's Investment Fund (TCI), a UK-based hedge fund, is reportedly planning legal action against Anil Agarwal-owned Vedanta Resources for its recent restructuring proposal, on the ground that it is skewed against minority shareholders. Recently, the UK-based Vedanta Resources Inc., parent of the country's largest zinc and copper producer, Sterlite Industries India had announced that it was splitting its businesses into three commodity-based verticals to simplify the group corporate structure.

Sterlite Technologies is reported to be in advanced discussions to acquire UK-based cabling company Brand-Rex for roughly $55 million.

Cement prices are likely to go up by Rs 3 - Rs 5 per bag in Mumbai, Delhi, National Capital Region, Gujarat and the southern markets from 1 October 2008, suggest reports.

Reliance Petroleum reportedly plans to begin production at its second refinery in Jamnagar by mid-November.

Karuturi Global is reportedly raising $100 million by selling a 15% stake in its Dubai-based subsidiary.

Essar Shipping Ports & Logistics is reportedly in talks with a few global container port operators for a tie-up as part of its plans for a foray into container berth operations in the Indian ports sector.

Unlisted Sahara India Financial Corporation will reportedly sell its equity stake in Sahara One Media and Entertainment and use the proceeds to meet investment norms laid down by the Reserve Bank od India.

Maytas Infrastructure said on Monday, 23 September 2008 it has secured contracts to build electricity sub-stations, transmission lines and related works in two districts in Maharashtra. The two contracts are totally worth Rs 481 crore, it said in a statement.

Lanco Infratech on Monday, 23 September 2008 said it has received a contract worth Rs 308.98 crore from Andhra Pradesh government for construction related works.

The board of Mirc Electronics at the meeting held on 18 September 2008 approved the proposed amalgamation of Guviso Holdings with the company.

Gold Surpasses $ 900 Mark Again

Extreme Volatility In Financial Markets

Gold futures rose more than 5% Monday to end above $900 an ounce for the first time in seven weeks, as a massive government plan to rescue the financial sector pressured the U.S. dollar, increasing the metal's appeal as an alternative investment. Gold for December delivery rose $44.30, or 5.1%, to close at $909 an ounce on the Comex division of the New York Mercantile Exchange, ending above $900 for the fist time since Aug. 4. MCX Gold contract closed the session at Rs 13117 per 10 grams up Rs 408.
The dollar sold off sharply against the majors at the start of the week amid a sharp run-up in crude oil prices and steep declines in the US equity bourses. EUR/USD trades near the 1.48. Oil posted its largest single day advance, rallying by $16.37 to $120.92 per barrel, which was largely attributed to the expiration of October contracts. TThe greenback plunged from 1.4436 to above the 1.48-level against the EURO while losing sterling from 1.8262 to 1.8588.

Uncertainty over the US government's $700 billion rescue plan to purchase bad mortgage debts off banks' balance sheets has triggered heightened volatility in the financial markets and raised fears on whether it will solve the current crisis. The plan is still pending Congressional approval, with additional details possibly not revealed until next week. The dollar will likely continue to bear the brunt of the sharp volatility and concerns of a potentially sharp spike in the deficit. Spot gold continues to trade above $900 per ounce, while crude oil was up by over $25 per barrel in the previous session.

Pre Session Commentary - Sep 23 2008

The Market is expected to have negative opening due to weak cues from the global markets as US markets closed in red and Asian markets are trading weak along with rise in crude. On Monday, the Indian markets pared its initial gains to end the day in red zone as investors booked profits during the session on financial concern for global economy. Domestic markets ignored positive cues from Asian markets. Markets opened with gains on positive cues from US markets as US government had proposed a $700billion plan to handle world's financial crises. The US Federal Reserve on Sunday announced that US investment banks Goldman Sachs and Morgan Stanley will become bank holding companies and will receive new US government credit. Further, market started losing after mid session to close almost flat. From the sectoral front, most of the indices closed with losses and among those Capital Goods, Oil & Gas, Auto and Power stocks were major contributors of selling pressure. However, Metal and FMCG stocks were in limelight as witnessed most of the buying from these baskets. We expect that the market may lose some ground during the trading session.

The BSE Sensex closed lower by 47.36 points at 13,994.96 and NSE Nifty fell by 10.9 points to close at 4,234.35. The BSE Mid Caps and Small Caps closed lower by 7.82 points and 21.88 points at 5,220.96 and 6,194.44. The BSE Sensex touched intraday high of 14,221.04 and intraday low of 13,917.48.

On Monday, the US market dropped after news that the two remaining major Wall Street investment banks Goldman Sachs and Morgan Stanley, converted to a traditional banking structure along with uncertainty on the details regarding the U.S. government's $700 billion plan to fix the financial market turmoil. Crude oil prices also put fire into the markets as reported biggest one-day gain and jumped by $16.37 to $120.92 a barrel after touching an intraday high of $130 a barrel, on the New York Mercantile Exchange.

The Dow Jones Industrial Average (DJIA) closed down by 372.75 points at 11,015.69 followed by the NASDAQ index closed lower by 94.92 points at 2,178.98 and the S&P 500 (SPX) dropped by 47.99 points to close at 1,207.09.

Indian ADRs ended with losses. In technology sector, Wipro closed down by (11.19%) followed by Patni Computers by (8.25%), Infosys by (4.05%) and Satyam by (3.59%). In banking sector ICICI Bank and HDFC Bank lost (7.32%) and (4.37%). In telecommunication sector, Tata Communication and MTNL dropped by (1.01%) and (0.73%). Sterlite Industries plunged (1.79%).

Today the major stock markets in Asia are trading weak. Japanese financial markets shut today on account of Autumnal Equinox Day, a national holiday. Hang Seng index is trading down by 429.51 points at 19,202.69 along with Taiwan Weighted trading at 6,097 plunged 12.72 points and Singapore''s Straits fell 47.78 points at 2,496.35.

The FIIs on Monday stood as net buyer in equity and in debt. Gross equity purchased stood at Rs6,826.80 Crore and gross debt purchased stood at Rs1432.00 Crore while the gross equity sold stood at Rs5,658.30 Crore and gross debt sold stood at Rs466.20 Crore. Therefore, the net investment of equity reported was Rs1,167.90 Crore and net debt was Rs905.80 Crore.

On Monday, the Indian rupee appreciated by 0.8% and ended at 45.44/45 per dollar than Friday's close of 45.83. Earlier it hit a high of 45.22/23 in early trade. The Indian currency climbed to the highest in more than a week after the U.S. Treasury proposed buying as much as $700 billion in financial assets to clean up banks'' balance sheets

Today, Nifty has support at 4,106 and resistance at 4,310 and BSE Sensex has support at 13,489 and resistance at 14,284.

Daily Call - Sep 23 2008

The Dow gave up all of its Friday gains as the enormity of the task at hand and the inability of the rescue package to really bail out the financial markets sank in. While the details of the rescue package are being chiseled in the Congress, the markets swooned on its own assumptions and the news that two large surviving Investment Banks, Goldman and Morgan will become bank holding companies.


Our markets are likely to open lower, striking off around 50 points from the overnight Nifty. Crude has spiked $ 16 a barrel and is now back at its $120 perch. The surge came on an assumption that the rescue package could rekindle demand for Crude. The equity and the commodity markets have different perceptions about the potency of the rescue package and one of them is wrong. But if you ascribe this logic that Crude has risen sharply because you expect the Dollar to plunge as Uncle Sam takes on additional $ 2 trillion of debt after the extended package, the move becomes understandable. Nevertheless, a Crude surge to $ 120 , even if temporary, could seriously alter inflation calculations. Buy the 4200 Sep 25 Put at a premium of Rs 49.25.

Choppy but listless

Despite Asian indices opening firm, the market seemed to have lost steam after opening strong in the morning. The 30-share Sensex of the BSE opened with a positive gap of 173 points at 14,215 and touched the day's high of 14,221 within minutes of trading on the back of brisk buying in heavyweights. However, it shed its early gains on account of heavy selling in capital goods (CG), power, automobile and information technology stocks and entered the negative territory by afternoon. The index tumbled below the 14,000 mark towards the close to touch the intra-day low of 13,917 amid relentless selling pressure. The Sensex finally closed with a loss of 47 points at 14,080. The Nifty closed at 4,223, down 22 points.

The market breadth was weak Of the 2,666 stocks traded on the BSE, 1,354 stocks declined, while 1,234 stocks advanced. 78 stocks ended unchanged. Select sectoral indices slipped sharply. The BSE CG index dropped 2.24% followed by BSE Power index (down 1.62%), the BSE Auto index (down 1.11%) and the BSE IT index (down 0.75%).

Most of the index heavyweights witnessed correction. Among the Sensex majors, Satyam Computer Services tumbled 4.69% at Rs352.75, JP Associates dropped 3.84% at Rs130.05, Maruti Suzuki India lost 3.17% at Rs718.15, and Hindalco slumped by 2.66% at Rs109.85. Larsen & Toubro slipped 2.66% at Rs2576.60, Tata Motors shed 1.88% at Rs414.90, Reliance Infrastructure lost 1.88% at Rs877.30, Sterlite Industries fell by 1.63% at Rs460, BHEL crumbled by 1.57% at Rs1,683.90 and DLF dipped 1.41% at Rs420.90. The other front-line stocks lost around 1% each. However, select counters saw some buying and added to their value. ACC advanced by 3.22% at Rs624.05 while Tata Steel, ITC, Hindustan Unilever, Bharti Airtel, Grasim Industries and ICICI Bank ended with modest gains.

Over 1.49 crore shares of Reliance Natural Resources changed hands on the BSE followed by Sesa Goa (1.38 crore shares), IFCI (0.86 crore shares), JP Associates (73.01 lakh shares) and Idea Cellular (71.33 lakh shares).

India's trade deficit balloons

India's trade deficit, which crossed 10 billion dollars in July alone, is becoming a cause of concern for the government, a senior commerce ministry official said.

"Trade deficit is worrying," Commerce Secretary Gopal Pillai told reporters here.

He said if the confidence in the Indian economy is not maintained, trade deficit would prove to be a bigger problem. "If the confidence fails, then the trade deficit becomes a big issue," he said.

India's exports grew to 16.34 billion dollars in July this year, while imports rose to 27.14 billion dollars, leaving a trade gap of 10.79 billion dollars.

For the April-July 2008 period, the trade gap widened to 41.22 billion dollars as exports grew 24.6 per cent to 59.19 billion dollars, while imports reached 100.41 billion dollars.

Growth in exports has been mainly on account of the sharp depreciation in value of the rupee against the dollar. The Indian currency closed at 45.45 to a dollar today. Last week, it had dipped to a two-year low of 46 against the greenback .

Pillai, however, said the rupee would appreciate by early next year.

"Post-December, the rupee is likely to appreciate as the global financial situation is expected to start improving," he said.

Asked if the global slowdown will impact India's export target of 200 billion dollars for the current fiscal, Pillai said the target would be met.

"Rupee depreciation is helping exports... In spite of all the recession if you have a 25 per cent growth in exports in dollar terms, it should be a big achievement," he said.

Sobha Developers - SELL

We recommend a sell in Sobha Developers from a short-term perspective. It is clearly evident from the charts of Sobha Developers that it has been on a long-term downtrend from its January peak of Rs 1,041, forming lower peaks and lower bottoms. The stock was in a consolidating phase between late August and early September. While consolidating sideways, the stock shaped a symmetrical triangle pattern (continuation pattern). On September 15, the stock tumbled breaking through the triangle pattern. The stock resumed its downtrend and continues to fall. On Monday (September 22), the stock declined 6 per cent, with high volume. The stock is trading well below its 21- and 50-day moving averages. The daily and weekly relative strength indices are featuring in the bearish zone. Moreover, the moving average convergence and divergence is slipping downward in the negative territory. We are bearish on the stock from a short-term perspective. We anticipate the stock's decline to continue further until it hits our price target of Rs 180 in the approaching trading sessions. Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 212.

via BL

Chinese Banks exposure to Lehman

Two more Chinese banks have reported holding Lehman Brothers bonds, raising total Lehman debt disclosed by Chinese lenders to USD 634.8 million.

China Construction Bank Corp, the country's second-largest commercial lender by assets, said in a statement issued through the Hong Kong Stock Exchange that it holds USD 191.4 million in Lehman bonds. That was the biggest exposure reported so far for a Chinese bank to the failed Wall Street house.

A midsize lender, China CITIC Bank Corp said in a separate statement it has USD 76 million in Lehman bonds.

Analysts say the impact of Lehman's failure on Chinese banks should be limited.

Other state-owned banks have reported holding Lehman debt but say it accounts for only a tiny fraction of their assets.

China's biggest lender, Industrial & Commercial Bank of China Ltd., says it owns Lehman bonds worth USD 151.8 million.

Construction Bank's Lehman holdings are 0.29 percent of net assets and should have no effect on its financial position, the bank said. It said the bank would make allowances for possible losses.

Bank of China Ltd., the country's No. 3 lender by assets, says it owns Lehman bonds worth USD 75.6 million. Bank of Communications Ltd, the country's fifth-largest commercial lender, says it has USD 70 million in Lehman bonds.

Another midsize lender, China Merchants Bank Ltd., says its Lehman bonds are valued at USD 70 million.

Last week, China's Hua An Fund Management Co, warned of possible heavy losses due to Lehman's failure. Hua An said its International Balanced Fund is invested in notes provided by Lehman that are linked to stocks, bonds and other assets.

Turnover drops

Nifty September 2008 futures at premium

Nifty September 2008 futures were at 4230.40, at a premium of 7.35 points as compared to spot closing of 4223.05. NSE's futures & options (F&O) segment turnover was Rs 58,188.03 crore, which was lower than Rs 73,792.36 crore on Friday, 19 September 2008.

Tata Steel September 2008 futures were at premium at 495.65 compared to the spot closing of 494.

DLF September 2008 futures were at premium at 421.85 compared to the spot closing of 421.25.

Reliance Petroleum September 2008 futures were near spot price at 151.80 compared to the spot closing of 152.05.

In the cash market, the S&P CNX Nifty lost 22.20 points or 0.52% at 4223.05.

Major indices register handsome gains in Asia

Overall session ends mixed though as SENSEX and Strait Times end in red

The Asian equity markets ended on a strong note today with the major benchmark indices in the region closing with handsome gains though the region failed to witness an across the board rally. The overall sentiment remained positive, tracking gains in Wall Street on Friday after the US government moved toward instituting a $700 billion program to buy up banks' illiquid mortgage-related assets, shoring up confidence in the global financial system. US Federal Reserve also announced today that Goldman Sachs and Morgan Stanley would become bank holding companies, a new status that will allow them to stay in business and protect customer accounts

China's securities regulator announced that listed firms would no longer need to obtain its prior approval for share buybacks. This helped the Shanghai stock index further as the index extended Friday's gains to finish the session with a sharp 7.8% gain. Broad based bottom fishing in banks and financials and properties on the new stimulus measures the securities regulator ushered in over the weekend to stabilize the stock markets proved key. Premier Wen Jiabao's pledge on Saturday to maintain the stability of the stock markets and the financial regime at large also ensured that the early gained were extended well into the session. The Shanghai Composite Index ended up 161.31 points, or 7.8% to 2,236.41.

In Japan, the Nikkei 225 Stock Average was higher 169.73 points, or 1.4%, to 12,090.59 while the broader Topix was 19.57 points, or 1.7%, higher to 1,169. The Ministry of Economy, Trade and Industry said that an index measuring industrial activity in Japan increased 0.8% in July 2008 compared to the previous month.

However, the other indices in the region showed a mixed pattern. Hang Seng ended at 19,632.20, up 304.47 points or 1.58% but the rest of the markets lagged behind. The Jakarta Composite Index ended at 1897.34, up 5.61 points or 0.30% while the KLSE composite added 2.92 points or 0.28% to close at 1028.62 points, giving away the intraday gains. Indian markets also gave away the initial gains and ended down 47.36 points or 0.34% at 13994.96 levels. Strait times also ended in red, paring about half a percent.

Soaring commodity prices seem to have come back in the contention as yet another worrying factor for the emerging economies in the region with light, sweet crude oil prices hitting a high of $107.80 - recording a gain of more than three dollars in the session. Copper prices also scaled up and with US dollar sliding sharply to two week low against the Euro, traders began to factor in a real possibility of commodity prices staying higher in near term.

BSE Bulk Deals to Watch - Sep 22 2008

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
22/9/2008 531223 ANJANI SYNTH NARENDRE BAHUVA B 92598 43.35
22/9/2008 531223 ANJANI SYNTH NARENDRA BAHUVA S 92598 46.60
22/9/2008 533016 AUSTRAL COKE OPG SECURITIES P LTD B 469842 232.47
22/9/2008 533016 AUSTRAL COKE AAKARSHAN TRACON PRIVATE LIMIT B 259804 230.62
22/9/2008 533016 AUSTRAL COKE OPG SECURITIES P LTD S 469842 232.41
22/9/2008 533016 AUSTRAL COKE AAP INVESTMENTS S 259804 230.62
22/9/2008 531682 CAT TECHNOL ANGEL INFIN PRIVATE LIMITED B 185002 5.61
22/9/2008 531682 CAT TECHNOL JMP SECURITIES PVT. LTD. B 468445 5.61
22/9/2008 531682 CAT TECHNOL S V ENTERPRISES B 3475954 5.59
22/9/2008 531682 CAT TECHNOL YUVAK SHARE TRADING PVT.LTD. B 700031 5.61
22/9/2008 531682 CAT TECHNOL ANGEL INFIN PRIVATE LIMITED S 770007 5.60
22/9/2008 531682 CAT TECHNOL PRABHUDAS LILLADHER PVT. LTD. S 195019 5.59
22/9/2008 531682 CAT TECHNOL NARESH CHAND JAIN S 180000 5.55
22/9/2008 531682 CAT TECHNOL JMP SECURITIES PVT. LTD. S 635003 5.59
22/9/2008 531682 CAT TECHNOL S V ENTERPRISES S 1850000 5.61
22/9/2008 531682 CAT TECHNOL YUVAK SHARE TRADING PVT.LTD. S 1250031 5.59
22/9/2008 505426 DAGGER FORST GODAVARI CORPORATIONS PVT LTD B 375842 17.75
22/9/2008 505426 DAGGER FORST BIRLA BOMBAY PVT LTD S 375842 17.75
22/9/2008 513059 G.S. AUTO HARDIK M MITHANI B 61216 89.98
22/9/2008 513059 G.S. AUTO YUVAK SHARE TRADING PVT.LTD. B 52216 89.98
22/9/2008 513059 G.S. AUTO RAJESH GUPTA S 18923 92.01
22/9/2008 513059 G.S. AUTO YUVAK SHARE TRADING PVT.LTD. S 52116 90.00
22/9/2008 531439 GOLDSTON TEC HEMANT MADHUSUDAN SHETH B 130000 123.13
22/9/2008 531602 KOFF BR PICT PRAVIN D GALA S 59723 40.13
22/9/2008 531602 KOFF BR PICT LAXMI CAP BROKING PVT LTD S 56999 41.01
22/9/2008 531366 KOHINOOR BRO S V ENTERPRISES B 1490802 6.91
22/9/2008 531366 KOHINOOR BRO S V ENTERPRISES S 1790802 6.77
22/9/2008 531996 ODYSSEY CORP MARIAM EBRAHIM GHEEWALA B 26000 37.60
22/9/2008 532606 PAREKH ALUM PIONEER NIRMAN INDIA PRIVATE L B 99825 119.82
22/9/2008 532606 PAREKH ALUM RAJASTHAN GLOBAL SECURITIES LTD S 86546 119.90
22/9/2008 522257 RAJOO ENGIN. HARDIK M MITHANI B 19396 70.43
22/9/2008 502587 RAMA PUL PAP MUKESH KUMAR SINGHAL S 70000 12.70
22/9/2008 522207 RASAND ENG I VINCENT COMMERCIAL CO. LTD. B 50000 54.75
22/9/2008 522207 RASAND ENG I MACKERTICH CONSULTANCY SERVICESPVTLTD S 50000 54.75
22/9/2008 526365 SHYAM STAR MANUBHAI JIVANI S 35000 137.67
22/9/2008 532691 TULIP TELE DEUTSCHE SECURITIES MAURITIUS LIMITED S 153748 950.00
22/9/2008 532360 VINTAGE CARD SETU SECURITIES PVT LTD B 7998 59.60
22/9/2008 532360 VINTAGE CARD TEJRAJJAIN B 6800 59.60
22/9/2008 532360 VINTAGE CARD YUVAK SHARE TRADING PVT.LTD. B 16128 59.60
22/9/2008 532360 VINTAGE CARD TEJRAJJAIN S 6800 59.60
22/9/2008 532360 VINTAGE CARD YUVAK SHARE TRADING PVT.LTD. S 7402 59.63
22/9/2008 533011 VISHAL INFO OPG SECURITIES P LTD B 98324 333.66
22/9/2008 533011 VISHAL INFO OPG SECURITIES P LTD S 98324 333.89

NSE Bulk Deals to Watch - Sep 22 2008

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
22-SEP-2008,AUSTRAL,Austral Coke & Projects L,AMBIT SECURITIES BROKING PVT. LTD.,BUY,189510,233.84,-
22-SEP-2008,DHAMPURSUG,DHAMPUR SUGAR MILLS LTD,SWISS FINANCE CORPORATION (MAURITIUS) LIMITED,BUY,2138960,55.40,-
22-SEP-2008,VINCARDS,Vintage Cards & Creations,ADITI FINLEASE PVT. LTD.,BUY,7221,58.85,-
22-SEP-2008,VINCARDS,Vintage Cards & Creations,DYNAMIC STCOK BROKING (I) PVT LTD,BUY,18696,58.91,-
22-SEP-2008,VINCARDS,Vintage Cards & Creations,PURTI ATUL,BUY,5733,59.08,-
22-SEP-2008,VINCARDS,Vintage Cards & Creations,YUVAK SHARE TRADING PVT LTD,BUY,20210,58.82,-
22-SEP-2008,AUSTRAL,Austral Coke & Projects L,AMBIT SECURITIES BROKING PVT. LTD.,SELL,189510,233.92,-
22-SEP-2008,DHAMPURSUG,DHAMPUR SUGAR MILLS LTD,GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD,SELL,1781741,55.40,-
22-SEP-2008,DHAMPURSUG,DHAMPUR SUGAR MILLS LTD,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,SELL,356259,55.40,-
22-SEP-2008,VINCARDS,Vintage Cards & Creations,ADITI FINLEASE PVT. LTD.,SELL,6847,58.98,-
22-SEP-2008,VINCARDS,Vintage Cards & Creations,DYNAMIC STCOK BROKING (I) PVT LTD,SELL,18696,58.83,-
22-SEP-2008,VINCARDS,Vintage Cards & Creations,PURTI ATUL,SELL,5733,58.80,-
22-SEP-2008,VINCARDS,Vintage Cards & Creations,YUVAK SHARE TRADING PVT LTD,SELL,20210,59.16,-

Post Session Commentary - Sep 22 2008

The Indian markets closed the choppy session on a negative note after a firm starts to the session. The profit booking took a lead during the session that led the investors to take calculative approach to book their positions. The domestic market opened with a bang tracking the US government's $700bn proposed plan to deal with the World's financial crisis, which would rescue banks from billions of dollars debts. As per this proposal, the federal government would buy up as much as $700bn of mortgage assets. The US Federal Reserve on Sunday announced that US investment banks Goldman Sachs and Morgan Stanley will become bank holding companies and will receive new US government credit. From the sectoral front, Capital Goods index faced heavy selling pressures across the counters to close with losses of more than 2%. On the other hand most buying was witnessed from the Metal and FMCG baskets. The market breadth was negative as 1354 stocks closed in red while 1234 stocks closed in green and 78 stocks remained unchanged.

The BSE Sensex closed lower by 47.36 points at 13,994.96 and NSE Nifty fell by 10.9 points to close at 4,234.35. The BSE Mid Caps and Small Caps closed lower by 7.82 points and 21.88 points at 5,220.96 and 6,194.44. The BSE Sensex touched intraday high of 14,221.04 and intraday low of 13,917.48.

Losers from the BSE are Suzlon Energy 6.78%, Punj Lloyd 5.62%, Bombay Dying 5.55%, BOB 5.20%, Lano Infra 4.94%, India Infoline 4.76%, Satyam Computers 4.69%, Oracle Fin 4.24%.

Gainers from the BSE are GMDC 14.08%, Sesa Goa 13.11%, Sintex Inds 10.62%, Gujarat NRE Coke 7.23%, Phoenix Mill 6.53%, Gujarat Petronet 5.47%, NMDC 5% and Colgate Palmolive 4.67%.

The BSE Oil & Gas index ended lower by 69.77 points at 9,398.65 as Indian Oil (3.65%), BPCL (2.59%), ABN Offshore (2.34%), HPCL (1.83%), ONGC (1.35%) and Gail India (0.18%) ended in negative territory.

The BSE Capital Goods index closed down by 262.98 points at 11,477.09 Losers are Punj Lloyd (5.62%), Gammon India (3.72%), AIA Engineering (3.52%), Siemens (3.37%), L&T (2.60%) and Elecon Engineering (2.08%).

The BSE Metal index advanced 99.35 points to close at 10,132.94. Major gainers are Sesa Goa (13.11%), Gujarat NRE (7.23%), NMDC (5%), Tata Steel (2.95%), Jindal Steel (1.84%),and JSEW Steel (0.19%).

The BSE Bank index closed lower by 7.59 points at 7,102.29. Losers are Bank of Baroda (5.20%), Indus Ind Bank (3.91%), Yes Bank (3.06%), Indian Overseas Bank (2.81%), Canara Bank (2.69%) and Kotak Bank (1.73%).

The BSE Reality index slipped by 7.14 points to close at 4,095.50. As Sobha Developres (6.17%), Ansal Infra (5.73%), Mahindralife 4.94%, Omaxe 3.21%, Orbitco 1.72%, Parsvnath 1.30%.