Domestic bourses to track weak global stocks

A fresh setback in global markets will result in a further fall on the domestic bourses today, 8 October 2008. Investors are unlikely to build large positions as the market remains closed tomorrow, 9 October 2008, on account of Dasara. Some of the equipment makers for the nuclear power plants may rise on reports India and United States are likely to sing the civilian nuclear deal on Friday, 10 October 2008.

US stocks plunged on Tuesday, 7 October 2008, amid escalating worries about credit markets and the financial sector. The Dow lost more than 500 points and all the major indexes slid more than 5 percent. The Standard & Poor's 500 index saw its first close below 1,000 in five years. Steps by the Federal Reserve to reinvigorate the dormant credit markets ultimately weren't enough to calm nervous investors.

Key benchmark indices in Asia were down by between 2.9% to 5.7% today, 8 October 2008, even as central banks across Asia stepped up to offer more support to commercial banks on to try to ease painful pressure on funding costs from a vicious global credit squeeze.. The troubles that started with an overheated housing market in the US have infected financial markets around the world, making banks fearful of lending to other banks, let alone to businesses and consumers.

Back home, after Monday's (6 October 2008) heavy slide, the market witnessed highly choppy trade on Tuesday, 7 October 2008. While the 30-share BSE Sensex slid 106.46 points, the S&P CNX Nifty rose 4.25 points.

Foreign institutional investors (FIIs) have been pulling out their investments from India and other emerging markets to shore up resources to beat the global liquidity crunch. In India, FIIs sold shares worth a net Rs 8278.10 crore last month. The outflow has reached Rs 39159.10 crore in calendar year 2008 (till 6 October 2008).

As per provisional data released by the stock exchanges, foreign funds sold worth a net Rs 680.42 crore on Tuesday, 7 October 2008. Domestic funds bought shares worth a net Rs 548.29 crore.

Meanwhile, with the end of third quarter of the calendar year 2008 on Tuesday, 30 September 2008, hedge fund are bracing for heavy redemption amid US financial sector crisis which has already spread to Europe. Investors in hedge funds are usually allowed to exit funds only on the final day of the financial quarter. Large-scale investor redemption in hedge funds may trigger further selling by foreign funds in India. Hedge funds mainly operate through the participatory notes route in India. However, there is no data available on the quantum of hedge funds' investment in India.

The barometer index is down 8,591.75 points or 42.35% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 9,511.53 points or 44.85% below its all-time high of 21,206.77 struck on 10 January 2008.

Meanwhile, as per reports, United States and India plan to sign a potentially lucrative agreement on Friday, 10 October 2008, to open up nuclear trade between the two countries for the first time in three decades. The pact will provide India with access to US nuclear fuel, reactors and technology, overturning a ban on such trade instituted after India first conducted a nuclear test in 1974.

Daily News Roundup - Oct 8 2008

ONGC-Mittal Energy plans to set up its first refinery in Nigeria with an investment of ~US$4bn. (ET)
Tata Group to set up Mother Plant of Nano car in Sanand in Gujarat. (DNA)
Bharti Airtel to launch its DTH services in 62 cities from October 9, 2008. (FE)
RNRL to produce sections of Reliance MoU in High Court today. (BL)
Infosys is looking to expand its consulting business through acquisitions. (BL)
IOC gets a credit allowance of Rs1.5bn from New Delhi for uninterrupted supply of petroleum products to Kathmandu. (FE)
Kumar Mangalam Birla, promoter has increased his stake in Hindalco to 31.59%. (Mint)
Tata Sons sells 1% stake in TCS for Rs7.01bn. (ET)
IVRCL Infrastructure secures order worth Rs4.99bn from Andhra Pradesh Government. (FE)
United Spirits plans to offer 500 shares for each acre to grape growers. (BL)
NHPC defers IPO till market conditions improve. (ET)
United Phosphorus plans to spin off its fledgling toxic gas detection instrument business. (Mint)
ITC's Wills Lifestyle to open 50 more outlets in next two years. (BL)
ICICI Bank, Dish TV launches interactive banking service. (Mint)
Spanco and Omnia BPO to form 50:50 JV for domestic BPO. (ET)
Opto Circuits drops plans to acquire company in Europe. (Mint)
Monnet Ispat plans to enter service sector and provide total solution for setting up coal washeries. (BL)
Tata Group to set up agri, marine biology research institute. (ET)
M&M to bring its car service business in Pune in next 12-15 months. (FE)
Everonn Systems has bagged Rs68.5mn project from Nagpur Municipal Corporation. (FE)
GVK Power & Infra divests entire stake in GVK Aviation. (FE)
Essar Oil signs a product purchase and infrastructure sharing MoU with IOC. (BL)
Bajaj Electricals plans to set up lighting unit in Saudi Arabia in next 15-18 months. (FE)
Bajaj Electricals secures Rs90mn Bandra Worli Sea-Link order. (BL)
Consolidated Construction Consortium is planning to enter into nuclear power projects sector. (ET)
Consolidated Construction Consortium secures Rs12.12bn order from Airport Authority of India to expand Chennai airport terminal. (BL)
Strides Arcolab gets USFDA approval for its oral dosage manufacturing unit in Bangalore. (DNA)
REcap partners LLC to acquire HOV services for ~Rs9.5bn. (BS)
Marksans Pharma is looking for more acquisition targets in US and Europe. (BL)
Country Club launches new clubbing concept to increase its presence globally. (FE)
Essar Group may drop plan to set up wind-turbine JV. (BS)
Provogue India plans to foray into food and grocery retailing sector. (BS)
Premji Invest picks up 3% stake in NSE for US$100mn. (BS)

Economic Front Page

The Government asks states to exempt local taxes on coal transfers by JV firms from captive coal blocks. (ET)
Exploration, refiners and miners gets permission to raise US$500mn per year from ECBs. (ET)
The Ministry of Shipping to propose on the revival of the ship building subsidy to the cabinet in the next week. (FE)
GSM based mobile operator's approaches government to seek permission to separate their non-voice revenues. (BL)
The Government is considering overseas dollar bond float to ease Indian banks and companies access to liquidities. (BS)

Vijaydashami.pray it gets auspicious!

It is better to conquer yourself than to win a thousand battles. Then the victory is yours.

The war between the bulls and the bears seems to be one-sided for long. Nine nights of Navratri is set to culminate but there are no signs of survival, forget victory for the bulls. Indian financial markets are closed tomorrow on account of Vijaydashami, also known as Dussehra. It is considered an auspicious day to begin new ventures in life. Given the suffering most market players have undergone, one can only pray that things get better on a personal level. Conquer your fear and avoid the temptation of overcoming your losses in a hurry. Today, we expect another weak opening in the face of the sharp cuts across global markets. Lower level buying may set it in. Given Infosys' results on Friday and other global developments which one has to contend with, it is prudent to avoid carrying any positions.

Sentiment-boosting measures announced by SEBI and the RBI failed to assuage concerns of a deepening financial malaise. Even the Finance Minister's bold and brave proclamation that the Indian economy has nothing to fear, but fear itself, failed to work its magic on the market. He believes that the GDP in the current fiscal will be around 8% and bounce back to 9% next year. However, it remains to be seen if those numbers will be attained in the face of a severe global credit crisis and sharp slowdown in the domestic economy. The IMF and many other economists warn that India will be hit by the current financial tsunami causing unprecedented destruction in the western world. There is no where to run, and nowhere to hide. The worst global financial crisis is underway and it's anybody's guess how deep and long it will be. There could be considerable pain going ahead as the market desperately looks for some succour and of course a bottom.

As far as India is concerned, there is some encouraging news which says that the tight liquidity situation is likely to ease over the next few weeks. But, the RBI's constant intervention in the currency market and a busy bond auction calendar on the part of the Centre may undo some of that relief. Another positive news is that a few companies that had deferred their IPO plans are now confident enough to re-start the process all over again. Having said that, there is no guarantee that these public issues will get fully subscribed. Some of them may fare badly. Coming to the financial markets, though the liquidity condition is strained, credit offtake remains pretty strong as does the money supply, both of which are running way above the RBI's comfort levels. On top of that, inflation continues to be quite high despite dipping below 12%. The rupee too is under considerable pressure amid relentless selling of Indian stocks by the FIIs. Hence, it will be really tough for the RBI to take a call on cutting interest rates.

US stocks slumped further on Tuesday, declining for a fifth session in a row, as investors found little respite in the Federal Reserve's latest steps to ease frozen credit markets.

Stock benchmarks remained under pressure as minutes from the FOMC's last meeting revealed that rate cuts were discussed at the mid-September gathering, and after Fed chairman Ben Bernanke opened the door for a possible monetary easing soon.

The Fed step to buy commercial paper initially propelled the Dow Jones Industrial Average back above the 10,000 level, breached on Monday for the first time since October 2004.

The S &P 500 Index ended below 1,000 for the first time since 2003, on speculation that banks and real-estate companies are running short of money as the credit crisis worsens.

Bank of America tumbled 26% after cutting its dividend in half and saying it plans to sell $10bn in common stock to brace for a recession. Morgan Stanley, KeyCorp and JPMorgan Chase slid more than 10% as investors shrugged off signs the Fed will reduce interest rates.

General Growth Properties Inc., a mall owner, plunged 42% on concern it won't be able to repay debt.

The S&P 500 slid 60.66 points, or 5.7%, to 996.23, extending its 2008 tumble to 32% in the market's worst yearly slump since 1937. The Dow dropped 508.39 points, or 5.1%, to 9,447.11, giving it a 29% fall in 2008 that would also be the worst in 71 years. The Nasdaq lost 5.8% to 1,754.88.

Fed chief Bernanke's dour economic outlook in an afternoon speech added to the day's weakness. And a report showed consumer borrowing in August fell for the first time since January 1998.

The Fed said it will buy commercial paper, short-term debt that companies use to finance daily operations, from individual companies. Panicky investors have been less willing to buy this kind of debt lately, making it hard for companies to get the money they need to operate.

Credit markets remained tight, but showed some improvement from the previous day. Treasury prices inched lower, with the yields modestly higher. The dollar slumped versus other major currencies. Oil and gold prices gained.

After the close, aluminum maker Alcoa reported weaker quarterly sales and earnings that missed estimates due to a weakening in aluminum prices and demand. The Dow component also suspended its dividend. Alcoa stock fell 6% in extended-hours trading.

Treasury prices dipped, propelling the yields. The benchmark 10-year note fell, lifting the corresponding yield to 3.47% from 3.45% on Monday.

US light crude oil for November delivery settled up $2.25 to $90.06 a barrel on the New York Mercantile Exchange, after ending the previous session at an eight-month low. The price of gasoline decreased for the 20th consecutive day, according to a survey of credit card activity.

COMEX gold for December delivery rallied $15.80 to settle at $882 an ounce. In currency trading, the dollar slipped against the euro after hitting a 14-month high against the European currency on Monday. The dollar also slipped against the yen, giving up earlier gains.

In a hugely volatile session, Europe stocks ended on Tuesday with moderate losses. One day after closing with the worst percentage loss on record, the pan-European Dow Jones Stoxx 600 index closed down 0.4% to 240.55. The index rose as much as 2.5% during the day - and fell up to 1.7%.

The UK's FTSE 100 index rose 0.2% to 4,596.42 and the French CAC-40 index advanced 0.5% to 3,732.22. Germany's DAX 30 index , however, fell 1.1% to 5,326.63.

Among the emerging markets, the Russian RTS index was down 0.95% to 858. Elsewhere, the Bovespa in Brazil was down 4.7% to end at 40,139 while the IPC index in Mexico tumbled 4% to 20,884 and Turkey's ISE National 30 index rose 0.2% to 39,498.

Indian market started the day with a positive gap after a huge cut in the previous trading session. The early spurt could be attributed to the central bank's decision to cut cash reserve ratio by 50 bps.

Further, market regulator, SEBI's decision to lift curbs on the issuance of the P-Notes by the FIIs lifted the sentiments on Dalal Street.

However, markets witnessed high volatility throughout the trading session. The benchmark index gyrated 680 points and the Nifty index swung 195 points between their respective high's and low's. Finally, the BSE benchmark Sensex ended 106 points lower to close 11,695 and the NSE Nifty index ended flat at 3,606.

Among the 30 components of the Sensex, 16 stocks ended in the red and 14 stocks ended with positive bias. L&T, HDFC Bank, ITC and TCS were among the major laggards. However, among the top gainers were, Reliance Industries, Bharti Airtel and NTPC.

Market breath was very weak, 1,802 stocks declined against 809 advances, while, 70 stocks remained unchanged.

Among the BSE Sectoral indices, BSE Capital Goods index (down 4%), BSE IT index (down 3%), BSE Bankex index (down 2.1%) and BSE Realty index (down 2%). Even the Mid-Cap and the Small-Cap stocks ended with losses. Both the indices lost over 2% each.

However, among the gainers were BSE Oil & Gas index (up 1.3%) and BSE PSU index (up 1%).

Shares of IVRCL Infra came off its day's low and gained Rs21 after the company announced that it secured a lift irrigation order worth Rs4.99bn. The scrip touched an intra-day high of Rs207 and a low of Rs174 and recorded volumes of over 11,00,000 shares on BSE.

HOV Services surged by over 8% upper circuit at Rs65.4 after the board of directors of the company announced that it would meet on October 08, 2008, to review an offer received from Recap, LLC to purchase; all assets owned by HOV Services, LLC. The scrip touched an intra-day high of Rs66.5 and a low of Rs62.

Shares of Bharti Airtel advanced up by over 2.6% to Rs749 after the company announced that it would launch DTH services on October 9, 2008. The company also said that the TV service would be available in 62 Indian cities. The scrip touched an intra-day high of Rs766 and a low of Rs730 and has recorded volumes of over 11,00,000 shares on BSE.

Hindalco announced that one of the promoter M/s. IGH Holding Pvt. Ltd on October 06, 2008 have acquired 1,968,213 (Nineteen Lacs sixty eight thousands two hundred thirteen) Equity shares of Hindalco Industries Ltd from the Stock Exchanges.

Shares of Hindalco slipped by 1.6% at Rs94 touching an intra-day high of Rs98 and a low of Rs94 and recorded volumes of over 22,00,000 shares on BSE.

Shares of Cambridge Solutions hit 5% upper circuit at Rs65.5 after Xchanging Plc, a U.K. based back-office services provider agreed to acquire 75% of the company for ~US$147mn in stock and cash. The scrip touched an intra-day high of Rs65.5 and a low of Rs65.5 and recorded volumes of over 93,000 shares on BSE.

NTPC sparked up by over 4% to Rs175 after reports stated that Reliance Industries offered an out-of-court settlement to the company to resolve the dispute over gas supply from its Krishna-Godavari gas fields, off the southern India state of Andhra Pradesh. The scrip touched an intra-day high of Rs177 and a low of Rs169 and recorded volumes of over 22,00,000 shares on BSE.

Shares of TTML slipped 1.2% to Rs19.2. According to reports, Quippo Telecom Infrastructure was all set to strike a partnership with the hived-off tower arm of the company. The scrip touched an intra-day high of Rs20.5 and a low of Rs19 and recorded volumes of over 1,200,000 shares on the BSE.

Investor wealth eroded

Amid the financial crisis in the US, Indian investors have witnessed an erosion of about Rs 2.3 lakh crore in their wealth in September, says a report.

Domestic equity market continued to be battered following negative global cues with the benchmark Nifty registering a fall of about 10 % in the last month.

"It is estimated that Rs 2.3 lakh crore of shareholders' wealth eroded in the background of the situation in the US financial markets," Crisil Research said in a report.

On the contrary, the fall in the US markets was lower with the S&P 500 and Dow Jones both declining by around nine % and six %, respectively, while emerging markets lost around 18 % during the month.

Pessimism in the financial markets following the filing for bankruptcy by Lehman Brothers, Merrill Lynch's sell-off, the bail out of AIG and perceived uncertainty around the US bail-out package added to investor fears.

Investor sentiment was also affected on news of the possibility of Fortis filing for bankruptcy, indicating problems in the European financial markets as well, the report added.

"The BSE Realty Index and the BSE Metal Index were the most severely affected during the month, dropping by 32 per cent and 25 %, respectively. Concerns over slowing demand in the real estate market due to a liquidity crunch and increased cost of funding weighed in on investor sentiment in the realty sector," Crisil Research Head-Equities Chetan Majithia said.

Bullion metals continue to rise

Gold gains more than $50 in the past two days

Despite a relatively stronger dollar, bullion metals continued to rise and once again ended higher on Tuesday, 07 October, 2008. The yellow metal gained after the stocks at Wall Street continued to plunge on global economic worries thereby strengthening the yellow metal's demand as a safe haven for investment. Chances of another interest rate cut by Federal Reserve by at least 50 bps to 1.5% also imparted further shine on the yellow metal. Silver prices also gained today. Investors tend to seek safety in gold when the economy falls into turmoil.

On Tuesday, Comex Gold for December delivery gained $15.8 (1.8%) to close at $882 an ounce on the New York Mercantile Exchange. In the past two days, gold has gained more than $50. On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped significantly since then.

For the third quarter ended September, 2008, gold prices ended lower by 5.1%. It was the first quarterly loss for the yellow metal since the second quarter in FY 2007. Prior to that, the yellow metal ended second quarter with a marginal gain of 0.7%. For first quarter prices gained 10.7%. This year, gold prices have gained 5.3% till date.

On Tuesday, Comex silver futures for December delivery slightly rose 9.5 cents (0.8%) to $11.38 an ounce. Silver had ended month and quarter of September 2008 with a loss of 10%. It ended August with a loss of 2.4% and July 2008 with a gain of 3%. For the second quarter, it had gained a paltry 1.4%. Silver had gained 16% in Q1. Till date, silver has lost 24% this year. The metal also had gained for seven straight years.

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 gained against the yen but remained under pressure after the Federal Reserve said it would buy commercial paper in an attempt to revive frozen credit markets and ease overall borrowing costs. The yen rallied against both the dollar and the euro as investors fled to safe-haven currencies on ongoing worries about credit markets and the impact of the financial crisis on institutions in the U.S. and Europe. The dollar index, which measures the U.S. unit against a basket of major currencies, remained under pressure, trading at 81.093, down from 81.300 in morning trade and 81.593 on late Monday.

At the crude market on Tuesday, crude-oil futures closed higher to score their first gain in five sessions as prices bounced back after touching an eight-month low. Prices found support as traders looked for fresh indications on global energy demand and digested reports of renewed tension in the Middle East, but crude finished off the day's high as U.S. stocks weakened. Crude for November delivery rose $2.25, or 2.6%, to close at $90.06 a barrel on the New York Mercantile Exchange.

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 December delivery closed higher by Rs 177 (1.3%) at Rs 13,513 per 10 grams. Prices rose to a high of Rs 13,599 per 10 grams and fell to a low of Rs 13,192 per 10 grams during the day's trading.

At the MCX, silver prices for December delivery closed Rs 157 (0.82%) higher at Rs 19,585/Kg. Prices opened at Rs 19,007/kg and rose to a high of Rs 19,585/Kg during the day's trading.

Crude gains after four sessions of drop

Crude prices gain on fresh Middle East tensions

After four sessions of drop, crude oil prices rose for the first time today, Tuesday, 07 October, 2008. Prices rose after fresh Middle East tensions resurfaced and investor worries fell a bit as they thought that global energy demand will not drop drastically in the coming months. Crude finished off the day's high as U.S. stocks weakened.

Crude-oil futures for light sweet crude for December delivery closed at $90.06/barrel (higher by $2.25 or 2.6%) on the New York Mercantile Exchange. Prices rose to a high of $90.6 during intra day trading. Prices reached a high of $147 on 11 July but have dropped almost 50% since then. Till date this year, prices have dropped by 6.2% till date.

As per reports today, Iran claimed that it forced down a Western aircraft on Sunday that accidentally entered its airspace, then allowed it to continue the next day to Afghanistan after questioning the passengers. This perked up crude prices partly today.

At the currency markets on Tuesday, the dollar gained against the yen but remained under pressure after the Federal Reserve said it would buy commercial paper in an attempt to revive frozen credit markets and ease overall borrowing costs. The yen rallied against both the dollar and the euro as investors fled to safe-haven currencies on ongoing worries about credit markets and the impact of the financial crisis on institutions in the U.S. and Europe. The dollar index, which measures the U.S. unit against a basket of major currencies, remained under pressure, trading at 81.093, down from 81.300 in morning trade and 81.593 on late Monday.

For the third quarter of the year crude prices ended lower by 28%. This was the biggest quarterly drop since 1991. Before that, crude prices had gained 38% in the second quarter of this year. It was the biggest quarterly increase in nine years. For the month of September, prices registered drop of 13%.

Investors are concerned that a prolonged credit crisis would further undermine an already waning demand for energy as global growth slows down.

Against this background, November reformulated gasoline closed at $2.0628 a gallon, up 0.4 cent, while November heating oil gained 3.2 cents to end at $2.5057 a gallon.

Natural gas for November delivery declined by 6.7 cents to finish at $6.768 per million British thermal units.

At the MCX, crude oil for October delivery closed at Rs 4,205/barrel, lower by Rs 47 (1.09) against previous day's close. Natural gas for October delivery closed at Rs 328.2/mmbtu, lower by Rs 5.8/mmbtu (1.7%).

The U.S. Energy Department's Energy Information Administration will issue a weekly update on petroleum supplies tomorrow. Expectations for the data were mixed.

BSE Bulk Deals to Watch - Oct 7 2008

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
7/10/2008 533022 20 MICRONS EUREKA STOCK AND SHARE BROKING SERVICES LIMITED B 101285 30.25
7/10/2008 533022 20 MICRONS EUREKASTOCK AND SHARE BROKING SERVICES LIMITED S 101285 30.35
7/10/2008 526955 ABL BIOTECHN T P ANANDH B 50000 58.93
7/10/2008 513335 AHMEDNAGAR F MERILL LYNCH CAPITAL MARKETS ESPANA S A SV S 200000 75.00
7/10/2008 500009 AMBAL SARA E SARABHAI HOLDING PVT LTD B 3300000 10.00
7/10/2008 500009 AMBAL SARA E SPARK SECURITIES P LTD S 492811 10.01
7/10/2008 500009 AMBAL SARA E M PRASAD AND CO LTD S 740095 10.00
7/10/2008 500009 AMBAL SARA E KARNANI FINANCE ENTERPRISE LTD S 1604557 10.00
7/10/2008 530355 ASIAN OILFIE KINSFOLK INDUSTRIES P LTD B 55097 71.30
7/10/2008 530355 ASIAN OILFIE KINSFOLK INDUSTRIES P LTD S 71097 72.00
7/10/2008 530355 ASIAN OILFIE CONSOLIDATED SECURITIES LTD S 368517 72.00
7/10/2008 513059 G.S. AUTO SPJSTOCK B 144680 70.90
7/10/2008 513059 G.S. AUTO SPJSTOCK S 110301 70.30
7/10/2008 531439 GOLDSTON TEC HEMANT MADHUSUDAN SHETH B 277000 107.81
7/10/2008 531439 GOLDSTON TEC ANKIT RAJENDRA SANCHANIYA S 100000 109.19
7/10/2008 532859 HTMT GLOBAL MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. S 218135 155.00
7/10/2008 532081 K SERA SERA S V ENTERPRISES B 433695 24.39
7/10/2008 532081 K SERA SERA S V ENTERPRISES S 489284 24.14
7/10/2008 531366 KOHINOOR BRO S V ENTERPRISES B 1721454 6.11
7/10/2008 531366 KOHINOOR BRO S V ENTERPRISES S 1742350 6.05
7/10/2008 532985 KOTAK SENSEX KOTAK SECURITIES LTD B 13449 117.79
7/10/2008 532728 MALU PAPER KOTAK MAHINDRA INVESTMENTS LTD S 98965 13.78
7/10/2008 531996 ODYSSEY CORP MADINA GULAMALI GHEEWALA B 33000 29.81
7/10/2008 531996 ODYSSEY CORP COMFORT SECURITIES PVT.LTD. S 33355 30.28
7/10/2008 526490 PRATIK PANEL PRATIK GUNVANTRAJ SINGHVI B 19515 2.00
7/10/2008 526407 RIT PRO IND JUHI DINESHCHANDRA RASTOGI B 49102 60.10
7/10/2008 631703 TRIBHVAN HSG SOPHIA GROWTH S 386000 30.50
7/10/2008 532765 USHER AGRO NIKHIL SECURITIES LTD B 100000 132.99

NSE Bulk Deals to Watch - Oct 7 2008

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
07-OCT-2008,20MICRONS,20 Microns Limited,ADROIT FINANCIAL SERVICES PVT LTD,BUY,140233,31.17,-
07-OCT-2008,20MICRONS,20 Microns Limited,AMBIT SECURITIES BROKING PVT. LTD.,BUY,198304,31.49,-
07-OCT-2008,20MICRONS,20 Microns Limited,ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD,BUY,189961,31.20,-
07-OCT-2008,20MICRONS,20 Microns Limited,BHARAT SECURITIES PVT LTD,BUY,145501,30.63,-
07-OCT-2008,20MICRONS,20 Microns Limited,CPR CAPITAL SERVICES LTD.,BUY,146998,31.09,-
07-OCT-2008,20MICRONS,20 Microns Limited,NISSAR BROTHERS,BUY,96508,32.95,-
07-OCT-2008,20MICRONS,20 Microns Limited,PASHUPATI CAPITAL SERVICES PVT. LTD.,BUY,143738,31.26,-
07-OCT-2008,20MICRONS,20 Microns Limited,TRANSGLOBAL SECURITIES LTD.,BUY,144830,30.91,-
07-OCT-2008,20MICRONS,20 Microns Limited,YUVAK SHARE TRADING PVT LTD,BUY,164670,31.49,-
07-OCT-2008,DCB,Development Credit Bank L,INDEA ABSOLUTE RETURN FUND,BUY,1000000,31.70,-
07-OCT-2008,GOLDTECH,Goldstone Tech Ltd.,GOPAL MARATHE,BUY,126000,110.23,-
07-OCT-2008,GOLDTECH,Goldstone Tech Ltd.,GOPAL PRAKASH KANE,BUY,100000,109.76,-
07-OCT-2008,GOLDTECH,Goldstone Tech Ltd.,MASUMI OVERSEAS PVT LTD,BUY,11000,103.77,-
07-OCT-2008,MONNETISPA,Monnet Ispat Ltd,MAVI INVESTMENT FUND,BUY,310000,289.00,-
07-OCT-2008,NAHARINDUS,Nahar Industrial Enterpri,ASHISH DHAWAN,BUY,512310,37.50,-
07-OCT-2008,PAGEIND,Page Industries Limited,NALANDA INDIA FUND LIMITED,BUY,889000,454.97,-
07-OCT-2008,SUBHASPROJ,Subhash Proj & Mkt Ltd.,INDEA ABSOLUTE RETURN FUND,BUY,500000,99.50,-
07-OCT-2008,VINCARDS,Vintage Cards & Creations,SMK SHARES AND STOCK BROKING PVT. LTD.,BUY,4900,35.30,-
07-OCT-2008,VINCARDS,Vintage Cards & Creations,YUVAK SHARE TRADING PVT LTD,BUY,3586,35.30,-
07-OCT-2008,20MICRONS,20 Microns Limited,ADROIT FINANCIAL SERVICES PVT LTD,SELL,140233,31.06,-
07-OCT-2008,20MICRONS,20 Microns Limited,AMBIT SECURITIES BROKING PVT. LTD.,SELL,198304,31.65,-
07-OCT-2008,20MICRONS,20 Microns Limited,ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD,SELL,189961,31.09,-
07-OCT-2008,20MICRONS,20 Microns Limited,BHARAT SECURITIES PVT LTD,SELL,145501,31.47,-
07-OCT-2008,20MICRONS,20 Microns Limited,CPR CAPITAL SERVICES LTD.,SELL,146998,31.14,-
07-OCT-2008,20MICRONS,20 Microns Limited,NISSAR BROTHERS,SELL,96508,32.91,-
07-OCT-2008,20MICRONS,20 Microns Limited,PASHUPATI CAPITAL SERVICES PVT. LTD.,SELL,143737,32.04,-
07-OCT-2008,20MICRONS,20 Microns Limited,PRIME INDIA INVESTMENT FUND LTD,SELL,162690,30.82,-
07-OCT-2008,20MICRONS,20 Microns Limited,TRANSGLOBAL SECURITIES LTD.,SELL,144830,31.06,-
07-OCT-2008,20MICRONS,20 Microns Limited,YUVAK SHARE TRADING PVT LTD,SELL,164669,31.67,-
07-OCT-2008,DCB,Development Credit Bank L,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,SELL,1000000,31.70,-
07-OCT-2008,EDUCOMP,Educomp Solutions Limited,CITIGROUP GLOBAL MKTS MAURITIUS PVT LTD- SELL CODE,SELL,110000,2685.72,-
07-OCT-2008,GOLDTECH,Goldstone Tech Ltd.,MASUMI OVERSEAS PVT LTD,SELL,257751,109.90,-
07-OCT-2008,MONNETISPA,Monnet Ispat Ltd,ANUBHAV HOLDING PVT LTD,SELL,310000,289.00,-
07-OCT-2008,NAHARINDUS,Nahar Industrial Enterpri,MORGAN STANLEY MAURITIUS COMPANY LTD,SELL,511310,37.50,-
07-OCT-2008,PAGEIND,Page Industries Limited,MAHTANEY GULU - HUF,SELL,280000,455.00,-
07-OCT-2008,PAGEIND,Page Industries Limited,NARI GENOMAL,SELL,200000,455.00,-
07-OCT-2008,PAGEIND,Page Industries Limited,RAMESH GENOMAL,SELL,200000,455.00,-
07-OCT-2008,PAGEIND,Page Industries Limited,SUNDER GENOMAL,SELL,200000,455.00,-
07-OCT-2008,SUBHASPROJ,Subhash Proj & Mkt Ltd.,ABN AMRO BANK N.V. LONDON BRANCH,SELL,500000,99.50,-
07-OCT-2008,VINCARDS,Vintage Cards & Creations,SMK SHARES AND STOCK BROKING PVT. LTD.,SELL,1,35.30,-
07-OCT-2008,VINCARDS,Vintage Cards & Creations,YUVAK SHARE TRADING PVT LTD,SELL,3586,35.30,-

Post Session Commentary - Oct 7 2008

Domestic markets ended the day mixed after extreme volatile session due to the continuous buying and selling over the ground. BSE Sensex ended below 11,700 level with loss of 0.9% and NSE Nifty above 3,600 mark with marginal gain of 0.12%. The markets today made a sharp turnaround from the yesterday's lows and opened significantly higher backed by RBI's strategic move of CRR cut by 50 basis points to 8.50%, which will be implemented from October 11, 2008. Also, the move by market regulator SEBI gave a boost at the initial stage. SEBI relaxed norms for foreign institutional investors for managing the assets under participatory notes (P-Notes) by waiving 40% cap on assets in cash segment in the form of P-Notes as well as removing of bar on offshore derivatives. However the market failed to retain the initial gains and turned volatile to trade with negative bias as weak sentiments were not over yet and investors were looking puzzled. However, most of the Asian markets showed a sign of relief after a big interest rate cut by Australian Central Bank in order to ease the unfolding global credit crises, which has tattered the global market. European markets were also trading higher with volatility. Domestic markets managed to recover during last trading hours but still ended mixed. From the sectoral front, Capital Goods, Bank, Metal, IT and Pharma stocks pulled the market lower. However, Oil & Gas stocks were in limelight as witnessed most of the buying from these baskets. Midcap and Smallcap stocks were sufferers of negative sentiment as ended with cut of more than 2%. Among the Sensex pack all 16 stocks ended in red, while 14 in green. The market breadth was negative as 1822 stocks closed in red while 787 stocks closed in green and 74 stocks remained unchanged.

The BSE Sensex closed lower by 106.46 points at 11,695.24 while NSE Nifty ended marginally up by 4.25 points at 3,606.60. The BSE Mid Caps and Small Caps closed with losses of 87.07 points at 4,257.16 and by 110.54 points at 4,976.39. The BSE Sensex touched intraday high of 12,181.43 and intraday low of 11,501.85.

Losers from the BSE Sensex pack are TCS Ltd (7.02%), L&T Ltd (6.94%), Sterlite Indus (6.35%), HDFC Bank Ltd (6.17%), M&M Ltd (5.84%), Satyam Computer (5.18%), Wipro Ltd (4.07%), Tata Power (3.82%), ITC Ltd (3.08%) and State Bank of India (1.81%).

Gainers from the BSE Sensex pack are NTPC Ltd (4.27%), Ranbaxy Lab (3.88%), BHEL (3.26%), Bharti Airtel (2.66%), Reliance (2.04%), Tata Steel (2.03%), Reliance Infra (1.94%), Grasim Indus (1.73%) and Maruti Suzuki (1.68%).

The BSE Capital Goods index closed lower by 376.41 points at 9,118.52. Losers are Praj Indus (7.98%), Bharat Bijli (7.13%), Siemens Ltd (7.05%), L&T Ltd (6.94%), Havells India (5.53%) and Lakshmi MA W (5.08%).

The BSE Bank index dropped by 132.75 points to close at 6,039.25. Major losers are Kotak Bank (9.02%), HDFC Bank Ltd (6.17%), Indus Ind Bank (4.56%), Karnataka Bank (3.53%), State Bank of India (1.81%) and ICICI Bank (1.07%).

The BSE Metal index plunged 102.62 points to close at 7,534.03. Major losers are Welspan Guajrat Sr (12.17%), JSW Steel (10.91%), Hindustan Zinc (9.30%), Gujarat NRE C (7.46%), Sterlite Indus (6.35%) and NMDC Ltd (4.98%).

The BSE IT index ended down by 88.95 points at 2,840.30. Losers are NIIT Ltd (14.64%), Orbit Co (11.25%), Tech Mahindra (10.90%), Financ Tech (8.74%), TCS Ltd (7.02%) and Aptech Ltd (6.86%).

The Pharma index lost 60.55 points to close at 3,427.52. As Opto Circuit (7.72%), BIL Care (7.17%), Dr Reddys Lab (5.70%), Glenmark Pharma (5.45%), Sun Pharma (5.27%) and Biocon Ltd (4.92%) closed in negative territory.

The BSE Oil & Gas index gained 102.68 points to close at 8,012.68 as Gail India (2.87%), Reliance Pet (2.09%), Reliance (2.04%), ONGC Ltd (1.25%) and Reliance Natural Resources (0.88%) ended in positive territory.

Sensex in red, Nifty in green

The key benchmark indices ended mixed on a highly volatile day of trade today. The BSE Sensex lost 106.46 points while Nifty rose 4.25 points. The market swung between positive and negative zone throughout the day. European stocks were green amid choppy trade amid reports the UK government may be forced to provide funding for Royal Bank of Scotland.

The BSE Sensex and the S&P CNX Nifty both hit two-year lows in mid-afternoon trade today, 7 October 2008. This was in contrast to an initial surge on the bourses that was triggered by liquidity boosting measures by Indian financial regulators announced after trading hours on Monday, 6 October 2008. Reliance Industries recovered sharply from 52 week low hit today. Bharat Heavy Electricals came off from the session's lows. The market breadth was negative

US futures were up. Nasdaq futures were up 19.25 points and Dow Jones futures were up 33 points.

The BSE 30-share Sensex lost 106.46 points or 0.9% to 11,695.24. The index fell 299.85 points at the day's low of 11,501.85, hit in mid-afternoon trade, its lowest level in more than two years.

The Sensex surged 379.73 points at day's high of 12,181.43, in early trade. The market regulator Securities & Exchange Board of India (Sebi)'s decision to lift restriction on issue of participatory notes and the Reserve Bank of India's surprise steep 50 basis cut in the cash reserve ratio had triggered a rebound on the bourses in early trade after steep losses of the past two trading sessions. Both the Sebi and RBI announcements were made after trading hours on Monday, 6 October 2008.

The barometer index is down 8,591.75 points or 42.35% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 9,511.53 points or 44.85% below its all-time high of 21,206.77 struck on 10 January 2008.

The S&P CNX Nifty was up 4.25 points or 0.12% to 3,606.60. Nifty hit a low of 3,537 in mid-afternoon trade, its lowest level since 5 October 2006.

BSE clocked a turnover of Rs 4,728 crore today as compared to a turnover of Rs 3,992.08 crore on 6 October 2008.

Nifty October 2008 futures were at 3640.10, at a premium of 33.50 points as compared to spot closing of 3606.60. NSE's futures & options (F&O) segment turnover was Rs 59,767.70 crore, which was higher than Rs 46,853.23 crore on Monday, 6 October 2008.

The BSE Mid-Cap index was down 2% at 4,257.16 and the BSE Small-Cap index was down 2.17% at 4,976.39.

BSE Capital Goods index (down 3.96% to 9,118.52), BSE IT index (down 3.04% to 2,840.30), BSE Bankex (down 2.15% to 6,039.25), BSE Realty index (down 1.94% to 2,941.72), BSE FMCG index (down 1.77% to 2,053.68), BSE HealthCare index (down 1.74% to 3,427.52), BSE Metal index (down 1.34% to 7,534.03), BSE Teck index (down 1.22% to 2,352.76), underperformed the Sensex.

BSE Oil & Gas index (up 1.3% to 8,012.18), BSE PSU index (up 0.84% to 5,980.92), BSE Power index (up 0.38% to 2,074.26), BSE Auto index (down 0.41% to 3,511.96), BSE Consumer Durables index (down 0.67% to 2,552.32), outperformed the Sensex.

The market breadth was weak on BSE with 787 shares advancing as compared to 1,822 that declined. 74 shares remained unchanged.

India's largest private sector company by market capitalization and oil refiner Reliance Industries rose 2.04% to Rs 1,675.40. The stock recovered from a 52 week low of 1615.25 hit today.

Capital goods stocks declined. Larsen & Toubro (down 6.94% to Rs 1,008.10), and Suzlon Energy (down 1.97% to Rs 124.60) edged lower. However India's largest electric equipment maker by sales Bharat Heavy Electricals surged 3.26% to Rs 1,496.70. The stock recovered from session's low of Rs 1,440.10.

Bank shares pared gains after firm opening. India's largest private sector bank by net profit ICICI Bank fell 1.07% to Rs 485.20. The stock came off from the session's high of Rs 521.70. India's second largest private sector bank by net profit HDFC Bank declined 6.17% to Rs 1,127.70. The stock came off from the session's high of Rs 1,245. India's largest commercial bank State Bank of India fell 1.81% to Rs 1,408. The stock came off from the session's high of Rs 1,503.

The Reserve Bank of India (RBI), after trading hours on Monday, 6 October 2008, announced a 50 basis points cut in the cash reserve ratio (CRR) to 8.5%, with effective from 11 October 2008. RBI said the CRR cut is an ad hoc, temporary measure and it will be reviewed on a continuous basis in the light of the evolving liquidity conditions. RBI said it will give priority to liquidity management over the period ahead given the turbulence in international financial markets. RBI also said the overriding priority for monetary policy is to eschew any further intensification of inflationary pressures and to firmly anchor inflation expectations.

Tata Consultancy Services (down 7.02% to Rs 575.08), Sterlite Industries (down 6.35% to Rs 314.05), Satyam Computer Services (down 5.18% to Rs 279.09), edged lower from the Sensex pack.

NTPC (up 4.83% to Rs 176.85), Ranbaxy Laboratories (up 5.54% to Rs 260.10), and Bharti Airtel (up 3.6% to Rs 755), edged higher from the Sensex pack.

India's largest oil exploration firm by revenue Oil and Natural Gas Corporation rose 1.25% to Rs 992.35. The stock came off from the session's high of Rs 1,040. The company will shortly tie up with Uranium Corporation of India for exploring and mining the fissile material, suggest reports.

Reliance Natural Resources clocked the highest volume of 1.41 crore shares on BSE. Idea Cellular (1.18 crore shares), Chambal Fertilisers and Chemicals (1.02 crore shares), Reliance Petroleum (82.07 lakh shares) and IFCI (77.66 lakh shares) were the other volume toppers in that order.

Reliance Capital clocked the highest turnover of Rs 389.90 crore on BSE. Reliance Industries (Rs 344.76 crore), Larsen & Toubro (Rs 204.33 crore), State Bank of India (Rs 178.05 crore) and ICICI Bank (Rs 176.86 crore) were the other turnover toppers in that order.

In Europe, UK's FTSE 100, France's CAC 40 and Germany's DAX were up between 0.75% to 1.95%. As per reports the UK government may be forced to provide funding for Royal Bank of Scotland. On Monday, credit ratings agency S&P cut its rating on RBS, citing earnings and further writedown risks.

European Union finance ministers gathered in Luxembourg on Tuesday, 7 October 2008, to discuss ways of protecting savers' deposits and counter the market turmoil that saw the region's stock markets suffer record losses on Monday, 6 October 2008. Australia's central bank cut its benchmark cash rate by 100 basis points to 6%, stunning investors with its biggest interest rate cut in 16 years.

Asian stocks outside Japan rose for the first time in four days on Tuesday, 7 October 2008, after a surprisingly large interest rate cut by Australia's central bank raised hopes that other policymakers would follow suit. Taiwan stocks ended up 0.34%, recouping sharp losses earlier in the day and rebounding from a more than four-year closing low the previous session as government funds helped bolster market heavyweights such as TSMC.

South Korea's KOSPI rebounded from a 21-month low and rose 0.54%. The country's regulator said it was considering steps to reduce volatility in the equity market, helping to stem some of the day's losses.

China's stock market fell but ended well off its lows as hopes for government support helped banks and property shares rebound from a sharp early slide. The Shanghai Composite Index, which had dropped as much as 4.64% in the morning, closed down 0.73% at 2,157.839 points. Singapore shares reversed early losses go gain about 2%.

Japan's Nikkei was down 3.03% after The Bank of Japan kept interest rates unchanged at 0.5% on Tuesday, 7 October 2008, and maintained its assessment on the economy, which it said was sluggish.

Back home, the Sebi decision on lifting of restriction on P-notes comes at a time when foreign institutional investors (FIIs) have been pulling out their investments from India and other emerging markets to shore up resources to beat the global liquidity crunch. In India, FIIs sold shares worth a net Rs 8278.10 crore last month. The outflow has reached Rs 38037.30 crore in calendar year 2008 (till 3 October 2008).

Exactly a year ago, Securities & Exchange Board of India (Sebi) had announced stringent restrictions on P-notes, totally banning fresh issue of P-notes with Indian derivatives as underlying. It had also mandated unwinding of such positions within 18 months. Sebi had also restricted issuance of P-notes in the spot segment to 40% of assets under custody. P-notes are issued by foreign institutional investors registered in India to unregistered overseas investors.

Meanwhile, with the end of third quarter of the calendar year 2008 on Tuesday, 30 September 2008, hedge fund are bracing for heavy redemption amid US financial sector crisis which has already spread to Europe. Investors in hedge funds are usually allowed to exit funds only on the final day of the financial quarter. Large-scale investor redemption in hedge funds may trigger further selling by foreign funds in India. Hedge funds mainly operate through the participatory notes route in India. However, there is no data available on the quantum of hedge funds' investment in India.

The troubles that started with an overheated housing market in the US have infected financial markets around the world, making banks fearful of lending to other banks, let alone to businesses and consumers. That has led to worries that economies around the world might not only sputter but slide into reverse. Recently, governments across Europe rushed to prop up failing banks, while the governments of Germany, Ireland and Greece also said they would guarantee bank deposits.

Oil prices, down nearly 40% from their peak because of recession worries, climbed back to over $90 a barrel.

According to Finance Minister P Chidambaram Indian business and industry have placed India in a situation where the country can weather the global financial crisis. He counts robust revenues, exports and investment planned by Indian corporates as major positive factors which would help India through the global crisis.

The Finance Minister expects 8% GDP growth in the current financial year and 9% in financial year 2009-10.