ATM Charges

The Chairman / Chief Executive Officer
(All Scheduled commercial banks including RRBs)

Dear Sir

Customer charges for use of ATMs for cash withdrawal and balance enquiry

1. Automated Teller Machines (ATMs) have gained prominence as a delivery channel for banking transactions in India. Banks have been deploying ATMs to increase their reach. While ATMs facilitate a variety of banking transactions for customers, their main utility has been for cash withdrawal and balance enquiry. As at the end of December 2007, the number of ATMs deployed in India was 32,342. Commensurate with the branch network, larger banks have deployed more ATMs. Most banks prefer to deploy ATMs at locations where they have a large customer base or expect considerable use. To increase the usage of ATMs as a delivery channel, banks have also entered into bilateral or multilateral arrangements with other banks to have inter-bank ATM networks.

2. It is evident that the charges levied on the customers vary from bank to bank and also vary according to the ATM network that is used for the transaction. Consequently, a customer is not aware, before hand, of the charges that will be levied for a particular ATM transaction, while using an ATM of another bank. This generally discourages the customer from using the ATMs of other banks. It is, therefore, essential to ensure greater transparency.

3. International experience indicates that in countries such as UK, Germany and France, bank customers have access to all ATMs in the country, free of charge except when cash is withdrawn from white label ATMs or from ATMs managed by non-bank entities. There is also a move, internationally, to regulate the fee structure by the regulator from the public policy angle. The ideal situation is that a customer should be able to access any ATM installed in the country free of charge through an equitable cooperative initiative by banks.

4. In view of this, RBI had placed on its website an Approach paper and sought public comments. The comments received have been analysed. Based on the feed back a framework of service charges would be implemented by all banks as under:

Sr.No.


Service


Charges

(i) For use of own ATMs for any purpose Free (with immediate effect)

(2) For use of other bank ATMs for balance enquiries Free (with immediate effect)

(3) For use of other bank ATMs for cash withdrawals

* No bank shall increase the charges prevailing as on December 23, 2007 (i.e. the date of release of Approach Paper on RBI website)
* Banks which are charging more than Rs.20 per transaction shall reduce the charges to a maximum of Rs.20 per transaction by March 31, 2008
* Free - with effect from April 1, 2009.

5. For the services at (1) and (2) above, the customer will not be levied any charge under any other head and the service will be totally free.

6. For the service number (3) the charge of Rs.20/- indicated will be all inclusive and no other charges will be levied to the customers under any other head irrespective of the amount of withdrawal.

7. The service charges for the following types of cash withdrawal transactions may be determined by the banks themselves:

(a) cash withdrawal with the use of credit cards
(b) cash withdrawal in an ATM located abroad.

8. Please acknowledge the receipt of the circular. A copy of the circular issued to your branches on this subject may please be submitted to us in due course.

Yours faithfully

(Arun Pasricha)
General Manager

Nifty April 2009 futures above 3000 mark

Turnover rises

Nifty April 2009 futures were at 3075.50, at a discount of 6.75 points as compared to the spot closing of 3082.25. Turnover in NSE's futures & options (F&O) segment increased to Rs 76,957.01 crore from Rs 74,456.63 crore on Wednesday, 25 March 2009.

Reliance Industries April 2009 futures were at premium at 1571.55 compared to the spot closing of 1565.50.

State Bank of India April 2009 futures were at premium at 1097.65 compared to the spot closing of 1095.50.

Bharat Heavy Electricals April 2009 futures were at a huge discount at 1538.25 compared to the spot closing of 1565.90.

In the cash market, the S&P CNX Nifty gained 97.90 points or 3.28% at 3082.25.

BSE Bulk Deals to Watch - March 26 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
26/3/2009 523395 3M INDIA LTD RUANE CUNNIFF AND GOLDFARB INC ACACIA INSTITUTIONAL PARTNERS LP B 58323 860.00
26/3/2009 523395 3M INDIA LTD IDFC MUTUAL FUND S 125912 860.00
26/3/2009 530499 A K CAPITAL FIRSTRAND PUBLIC LTD S 74002 142.00
26/3/2009 532799 AKRUTI CITY OPG SECURITIES P LTD B 532808 1333.21
26/3/2009 532799 AKRUTI CITY OPG SECURITIES P LTD S 532808 1334.52
26/3/2009 532830 ASTRAL POLY RAJASTHAN GLOBAL SECURITIES LTD B 113290 32.54
26/3/2009 532830 ASTRAL POLY MITEN A. MEHTA B 80000 33.99
26/3/2009 532830 ASTRAL POLY RAJASTHAN GLOBAL SECURITIES LTD S 82540 33.90
26/3/2009 590059 BIHAR TUBES RAJASHTAN GLOBAL SECURITIES LTD B 100000 34.00
26/3/2009 590059 BIHAR TUBES APL INFRASTRUCTURE PVT LTD B 471000 34.00
26/3/2009 590059 BIHAR TUBES ELARA INDIA OPPORTUNITIES FUND LIMITED S 1000000 34.00
26/3/2009 532885 CENTRAL BK MORGAN STANLEY MAURITIUS COMPANY LIMITED B 5437452 33.25
26/3/2009 532885 CENTRAL BK TRAFELET COMPANY UK LLP AC DELTA FUND MAURITIUS LIMITED S 5437452 33.25
26/3/2009 526546 CHOKSI LABOR VYANGESH CHOKSI B 120000 6.10
26/3/2009 506390 CLARI CHEM HARDIK B. PATEL B 194628 165.00
26/3/2009 506390 CLARI CHEM PRASHANT PATEL S 320000 165.12
26/3/2009 530393 DB(INTR) STBR ASHWIN GANESHMAL SHAH HUF B 49931 29.15
26/3/2009 530393 DB(INTR) STBR ANIL GANESHMAL SHAH HUF B 50000 29.15
26/3/2009 530393 DB(INTR) STBR PARESH JAYSUKHLAL DESAI B 40000 29.15
26/3/2009 530393 DB(INTR) STBR SADHNA RATHI S 29000 29.15
26/3/2009 530393 DB(INTR) STBR SAROJ RATHI S 28788 29.15
26/3/2009 508860 DIAMANT INV ARTISTIC FINANCE PVT LTD S 6000 51.00
26/3/2009 508860 DIAMANT INV FANCY INVESTRADE PVT LTD S 9500 51.28
26/3/2009 532326 INTENS TECH LAKSHYA IMPEX PVTLTD B 403272 11.67
26/3/2009 532326 INTENS TECH ITF MAURITIUS S 403272 11.67
26/3/2009 522183 ITL INDUSTRI HARDIK B. PATEL B 18080 16.00
26/3/2009 522183 ITL INDUSTRI RUCHIT B. PATEL S 18080 16.00
26/3/2009 532705 JAGRAN PRAK MORGAN STANLEY MAURITIUS COMPANY LIMITED B 1546085 55.50
26/3/2009 532705 JAGRAN PRAK TRAFELET COMPANY UK LLP AC DELTA FUND MAURITIUS LIMITED S 1546085 55.50
26/3/2009 500380 JK LAKSHMI MORGAN STANLEY MAURITIUS COMPANY LIMITED B 802004 40.80
26/3/2009 500380 JK LAKSHMI TRAFELET COMPANY UK LLP AC DELTA FUND MAURITIUS LIMITED S 802004 40.80
26/3/2009 505750 JOSTS ENG CO RAMSWROOP SOMANI B 4000 121.50
26/3/2009 505750 JOSTS ENG CO RAMSWROOP SOMANI S 4000 129.75
26/3/2009 513509 KALYANI FORG EQUITY INTELLIGENCE INDIA PRIVATE LTD S 77291 56.00
26/3/2009 512455 LLOYDS MET E PAWAN ARYA S 1250000 20.00
26/3/2009 512455 LLOYDS MET E RAVI ARYA S 1250000 20.00
26/3/2009 517334 MOTH SUMI SY SAMVARDHANA MOTHERSON FIN LTD B 34171875 60.30
26/3/2009 517334 MOTH SUMI SY SOJITZ CORPORATION S 34171875 60.30
26/3/2009 590028 NICCO CORP PINKY EXHIBITORS PVT LTD B 1200000 4.03
26/3/2009 590028 NICCO CORP IND FINANCE AND SEC TRUST PVT LT S 1200000 4.03
26/3/2009 532606 PAREKH ALUM MANISH MARU B 150000 53.00
26/3/2009 532606 PAREKH ALUM PIONEER NIRMAN INDIA PRIVATE L B 139248 53.00
26/3/2009 503100 PHOENIX MILL KOTAK MAHINDRA UK LTD AC SANDSTONE CAP INDIA MASTER FUND B 1680390 59.00
26/3/2009 526407 RIT PRO IND AMULYA LEASING AND FINANCE LTD B 765000 17.05
26/3/2009 526407 RIT PRO IND CONSOLIDATED SECURITIES LTD S 601000 17.05
26/3/2009 531324 ROSELABS FIN ASHWINI HI RISE ANF FARMS PVT LTD B 50000 5.23
26/3/2009 508961 SHRICON INDU NANDKISHORE AGRAWAL B 49150 55.55
26/3/2009 508961 SHRICON INDU SWASTIKA FIN LEASE LTD S 49150 55.55
26/3/2009 508976 SPANCO JITENDRA B SHAH HUF B 168875 29.25
26/3/2009 508976 SPANCO D THAKKAR CONSTRUCTIONS PRIVATE LIMITED S 168875 29.25
26/3/2009 526133 SUPERTEX IND KUMKUM STOCK BROKER PVT LTD B 55925 18.41
26/3/2009 519228 TEMPT.FOODS ARION COMMERCIAL PRIVATE LIMITED B 195015 25.82
26/3/2009 532311 TUTIS TECH CHIRAG D PAREKH B 86302 14.57
26/3/2009 532343 TVS MOTOR L MORGAN STANLEY MAURITIUS COMPANY LIMITED B 2600000 20.95
26/3/2009 532343 TVS MOTOR L TRAFELET COMPANY UK LLP AC DELTA FUND MAURITIUS LIMITED S 2600000 20.95
26/3/2009 500427 UNIFLEX CABE PINKY EXHIBITORS PVT LTD B 125000 7.43
26/3/2009 500427 UNIFLEX CABE IND FINANCE AND SEC TRUST PVT LT S 125000 7.43
26/3/2009 531390 UPSURGE INVS KIRIT V DAVE B 430000 5.56
26/3/2009 531390 UPSURGE INVS SUPRIYA ENTERPRISES S 415000 5.56
26/3/2009 531668 VISION CORPO BALLY MERCHANDISE LTD B 600000 5.97
26/3/2009 531668 VISION CORPO DEEP PRAKASH SHAH S 600000 5.97
26/3/2009 531249 WELL PACK PA GANDHI MANISHA NAVNEETLAL B 23400 133.35
26/3/2009 531249 WELL PACK PA KAMLESH NAHAR B 37000 134.50
26/3/2009 531249 WELL PACK PA TUSHAR RAMESHBHAI PATEL B 25829 132.65
26/3/2009 531249 WELL PACK PA REKHA BACHHAWAT S 28583 133.91
26/3/2009 532144 WELSP GUJ SR WELSPUN WINTEX LTD. B 1700000 80.99
26/3/2009 532144 WELSP GUJ SR KRISHIRAJ TRADING LIMITED B 1450000 77.85
26/3/2009 532144 WELSP GUJ SR WELSPUN INDIA LIMITED S 3100000 79.51

NSE Bulk Deals to Watch - March 26 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
26-MAR-2009,AKRUTI,Akruti City Limited,C D INTEGRATED SERVICES LTD,BUY,426647,1456.28,-
26-MAR-2009,ALPSINDUS,Alps Industries Ltd.,OLIVE VINIMAY PRIVATE LIMITED,BUY,309000,7.00,-
26-MAR-2009,CEATLTD,CEAT Limited,PETROCHEM INTERNATIONAL LTD.,BUY,288500,35.19,-
26-MAR-2009,CYBERMEDIA,Cyber Media (India) Limit,PRADEEP GUPTA,BUY,60000,24.26,-
26-MAR-2009,DCB,Development Credit Bank L,DECENT FINANCIAL SERVICES PVT LTD,BUY,1207011,19.65,-
26-MAR-2009,DCB,Development Credit Bank L,DEVANSHU INFIN LIMITED,BUY,1078000,19.14,-
26-MAR-2009,DCB,Development Credit Bank L,SHANKAR SALES PROMOTION PVT LTD.,BUY,1180858,19.33,-
26-MAR-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD,BUY,90902,2122.33,-
26-MAR-2009,FIEMIND,Fiem Industries Limited,ANIL BABULAL VEDMEHTA,BUY,204789,54.20,-
26-MAR-2009,GLFL,Gujarat Lease Fin Ltd,R P GUPTA,BUY,180000,2.45,-
26-MAR-2009,GMRFER,GMR Ferro Alloys & Indust,PRIME INDIA INVESTMENT FUND LTD,BUY,150000,26.25,-
26-MAR-2009,ORBITCORP,Orbit Corporation Limited,EDELCAP SECURITIES LTD.,BUY,60000,54.55,-
26-MAR-2009,ORBITCORP,Orbit Corporation Limited,SANTOSH KEDIA,BUY,492000,54.65,-
26-MAR-2009,PHOENIXLTD,The Phoenix Mills Limited,KOTAK MAHINDRA UK LTD A/C SANDSTONE CAP INDIA MASTER FUND LT,BUY,1425269,59.00,-
26-MAR-2009,PSL,PSL Limited,KOTAK MAHINDRA UK A/C SANDSTONE CAPITAL INDIA MASTER FUND L,BUY,652000,65.25,-
26-MAR-2009,SAREGAMA,Saregama India Ltd.,ADORN INVESTMENTS LTD,BUY,158025,47.59,-
26-MAR-2009,SAREGAMA,Saregama India Ltd.,ARTECH MERCHANTS PVT. LTD.,BUY,90000,47.55,-
26-MAR-2009,SAREGAMA,Saregama India Ltd.,ASHOK KUMAR BANKA(HUF),BUY,100000,47.64,-
26-MAR-2009,SAREGAMA,Saregama India Ltd.,ASIAN SECURITIES EXCHANGE PVT.LTD.,BUY,90000,47.55,-
26-MAR-2009,SAREGAMA,Saregama India Ltd.,PATREX VYAPAAR PVT LTD.,BUY,90000,47.55,-
26-MAR-2009,SKUMARSYNF,S. Kumars Nationwide Ltd,ADROIT FINANCIAL SERVICES PVT LTD,BUY,1518552,17.56,-
26-MAR-2009,SREINTFIN,SREI Infrastructure Finan,ADHYATMA COMMERCIAL PRIVATE LIMITED,BUY,1925000,28.31,-
26-MAR-2009,TIDEWATER,Tide Water Oil Co. (India,YASHODHAM MERCHANTS PVT LTD,BUY,12000,3300.00,-
26-MAR-2009,ZICOM,Zicom Electronic Security,SAJEEVE KOPPARA THOMAS,BUY,90000,73.45,-
26-MAR-2009,AKRUTI,Akruti City Limited,C D INTEGRATED SERVICES LTD,SELL,429047,1459.10,-
26-MAR-2009,ALOKTEXT,Alok Industries Limited,SLONE ROBINSON LLP A/C THE VITTORIA FUND LP,SELL,1295000,12.01,-
26-MAR-2009,ALPSINDUS,Alps Industries Ltd.,INTELL INVOFIN INDIA PVT LTD,SELL,350000,7.02,-
26-MAR-2009,CEATLTD,CEAT Limited,BNK CAPITAL MARKETS LTD.,SELL,258500,35.22,-
26-MAR-2009,CYBERMEDIA,Cyber Media (India) Limit,YUKTI SECURITIES (P) LTD.,SELL,60000,24.26,-
26-MAR-2009,DCB,Development Credit Bank L,DECENT FINANCIAL SERVICES PVT LTD,SELL,637777,19.38,-
26-MAR-2009,DCB,Development Credit Bank L,SHANKAR SALES PROMOTION PVT LTD.,SELL,1180858,19.26,-
26-MAR-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD,SELL,90902,2123.42,-
26-MAR-2009,FIEMIND,Fiem Industries Limited,ANIL BABULAL VEDMEHTA,SELL,204789,54.20,-
26-MAR-2009,GLFL,Gujarat Lease Fin Ltd,INTERNATIONAL SECURITIES LIMITED,SELL,185000,2.45,-
26-MAR-2009,GMRFER,GMR Ferro Alloys & Indust,SHRINE FINANCE & INVESTMENTS PVT LTD,SELL,91480,26.50,-
26-MAR-2009,ORBITCORP,Orbit Corporation Limited,EDELCAP SECURITIES LTD.,SELL,211500,54.60,-
26-MAR-2009,PSL,PSL Limited,DEUTSCHE SECURITIES MAURITIUS LIMITED,SELL,651879,65.25,-
26-MAR-2009,SAREGAMA,Saregama India Ltd.,BNK CAPITAL MARKETS LTD.,SELL,558025,47.56,-
26-MAR-2009,SKUMARSYNF,S. Kumars Nationwide Ltd,ADROIT FINANCIAL SERVICES PVT LTD,SELL,1462577,17.60,-
26-MAR-2009,SREINTFIN,SREI Infrastructure Finan,VITHAL HOUSING LIMITED,SELL,1900000,28.31,-
26-MAR-2009,TIDEWATER,Tide Water Oil Co. (India,MADANLAL LTD,SELL,15000,3300.00,-

Post Session Commentary - March 26 2009

All round buying over the ground lifted the market to report strong gain of more than 3% today as compared to previous close. The BSE Sensex extended its gains for the 4th successive day and breached 10,000 level and NSE Nifty crossed the 3,000 mark. Stocks continued to march ahead in northward direction as further ease in inflation to memorable low, raised expectations of relieve in the monetary policy by the RBI. The inflation dropped to 0.27% during the week ended March 14 2009, as against 0.44% reported last week. Besides, further buying by the foreign investors and firm US index futures also boosted the sentiments.

The Indian market extended its' yesterday's rally and opened sharply up tracking positive cues from markets all over the world. The US stock markets closed in green on Wednesday backed by better than expected economic data. The new home sales in US for February increased 4.7% month-over-month to an annualized rate of 337,000 versus a revised 322,000 in the previous month. Further, domestic stocks continued their upward movement as strong buying was emerged across the board. Historic ease in inflation number for the week ended 14th March also added to the positive sentiments. Finally, market touched the uppermost level during final trading but retrenched a little to end slightly below that level. From the sectoral front, mainly Capital Goods, Metal, Power, Bank, Teck, IT, Auto and FMCG stocks helped domestic bourses to gain ground. Mid Cap and Small Cap stocks also remained on buyer's radar. However, reality stocks were not able to gain favor from the market.

Among the Sensex pack 27 stocks ended in green territory and 3 in red. The market breadth indicating the overall health of the market remained strong as 1392 stocks closed in green while 1138 stocks closed in red and 106 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 335.20 points at 10,003.10 and NSE Nifty ended up by 97.90 points at 3,082.25. BSE Mid Caps and Small Caps closed with gains of 33.05 and 21.88 points at 2,874.22 and 3,187.34 respectively. The BSE Sensex touched intraday high of 10,061.36 and intraday low of 9,739.93.

Gainers from the BSE Sensex pack are Tata Motors (7.94%), L&T Ltd (6.10%), Sterlite Industries (5.97%), TCS Ltd (5.94%), BHEL (5.85%), Tata Power (5.57%), ONGC Ltd (5.36%), Maruti Suzuki (5.07%), Wipro Ltd (5.03%), Tata Steel (5.00%), Bharti Airtel (4.95%), Reliance Infra (4.91%), Hindalco (4.70%) and ITC Ltd (4.23%).

Losers from the BSE Sensex pack are Ranbaxy Lab (2.95%), DLF Ltd (0.31%) and ACC Ltd (0.62%).

The inflation eased further to 0.27% during the week ended March 14 2009, as against 0.44% reported last week. Inflation has dropped sharply as commodity prices dropped after the global economic and financial crisis deepened. The memorable fall in headline inflation has raised expectations of further easing of the monetary policy by RBI to pump in additional liquidity into the market.

On the global markets front the Asian markets which opened before the Indian market, ended higher on better than expected US economic reports. Shanghai Composite, Hang Seng, Nikkei 225, Straits Times index and Seoul Composite ended higher by 70.15, 486.87, 156.34, 67.11 and 14.78 points at 2,361.70, 14,108.98, 8,636.33, 1,758.79 and 1,243.80 respectively.

European markets which opened after the Indian market are trading mixed. In Frankfurt the DAX index is trading up by 23.51 points at 4,246.80 whereas in London FTSE 100 is trading lower by 3.93 points at 3,896.32.

The BSE Capital Goods index surged (5.42%) or 330.47 points to close at 6,425.38. Main gainers are Havells India (14.80%), Crompton Greaves (14.10%), Kalpat Power T (8.83%), L&T Ltd (6.10%) and BHEL (5.85%).

The BSE Power index also ended higher by (4.02%) or 72.76 points at 1,883.13. Crompton Greaves (14.10%), Lanco Infra (11.59%), BHEL (5.85%), GVK Power Infra (5.84%) and Tata Power (5.57%) ended in positive territory.

The BSE Metal index closed with increase of (3.97%) or 222.62 points at 5,827.32 on strong rise in metal prices in London Metal Exchange. Scrips that gained are Sesa Goa Ltd (10.46%), Ispat Industries (6.44%), Sterlite Industries (5.97%), Hindustan Zinc (5.46%) and Tata Steel 5.00%).

The BSE Bank stocks advanced by (3.38%) or 153.78 points to close at 4,706.22 as RBI issued fresh norms for the adjustment of provisions for restructured accounts, standard assets, and non-performing assets (NPAs), to support the financial health of banks. Major gainers are Indus Ind Bank (7.73%), Yes Bank (7.62%), Bank of India (7.38%), Indian Overseas Bank (6.01%) and Axis Bank (5.97%).

The BSE IT index gained (3.29%) or 75.17 points to close at 2,361.21 on hopes of a revival in the US economy that will spur domestic market. Gainers are Mphasis Ltd (6.92%), TCS Ltd (5.94%), Wipro Ltd (5.03%), Infosys Tech (3.06%) and Rolta India (2.78%).

The BSE Reality ended down (4.54%) or 75.73 points at 1,614.94. Losers are Akruti City (55.06%), Indiabull Real (3.78%), Orbit Co (3.17%), Penland Ltd (0.94%) and DLF Ltd (0.31%).

Maruti Suzuki gained 5.07%. The auto company is insistently working to launch new cars and improvising the existing ones. The auto company's move is seen as a counter attack to Tata Motors' newly launched Tata Nano. Maruti is expected to launch Maruti Splash or Ritz in the second week of May.

GAIL India increased by 0.45%. The company will spin off its marketing business into a separate firm from April 1. GAIL India will remain a gas transmission company and will construct cross-country pipelines to transport gas, while GAIL Gas (GGL) will carry out marketing business. However, all allied businesses such as petrochemicals and telecom will remain under GAIL India.

Tata Consultancy Services (TCS) went up by 5.94%. The company has adopted several measures to cut down costs like avoiding travel and moving people from onsite to offshore.

Indian Overseas Bank gained 0.85% as the biggest domestic institutional investors Life Insurance Corporation of India hiked its stake in the state-run bank.

Unitech Ltd zoomed 7.82% to Rs. 34.05 n report that Morgan Stanley Mauritius purchased shares in the realty firm on Wednesday, March 25, 2009.

Nucleus Software Exports surged 3.24% on bagging a new order for one of its software products.

Akruti City lost (55.06%) on the last day of F&O expiry as stocks of the company are now out of F&O. On 19th March 2009, SEBI had had excluded Akruti City from futures and options (F&O) segment through its circular.

Sensex vaults 22.5% in 11 trading sessions

Fall in headline inflation to a record low and short covering in the derivatives segment ahead of the expiry of the near-month March 2009 contracts lifted the barometer index BSE Sensex above the psychological 10,000 mark in mid-afternoon trade. The Sensex had last had hit the 10,000 mark on 7 January 2009, the day Satyam Computer unveiled India's biggest corporate fraud and triggered a market slide. The S&P CNX Nifty breached the psychological 3,000 mark.

A slide in inflation to near zero reinforced expectations of a further easing of the monetary policy by the Reserve Bank of India (RBI). Stepping up of buying by foreign funds, overnight gains in US stocks, higher Asian markets and higher US index futures also bolstered sentiment.

However, the market came off the higher level in late trade soon after a steep surge took the Sensex past 10,000 mark in mid-afternoon trade. market slide. The BSE 30-share jumped 335.20 points, or 3.47%, off close to 60 points from the day's high.

Auto, capital goods, banking, IT and metal stocks surged. But index heavyweight Reliance Industries (RIL) came off the day's high in late trade.

Reserve Bank of India Governor D Subbarao today said the slowdown in India's economic expansion has been steeper than previously estimated and the challenge will be to arrest the moderation in growth. He said a painful adjustment was inevitable until the economy recovered and stimulus measures were the right step in the current extraordinary situation.

The RBI governor said there is a cost to further fiscal stimulus and more borrowings will put pressure on credit markets. The RBI governor said 2009/10 will be a challenging year unless business confidence and investment revived, and said earlier cuts in policy rates needed to flow through to the economy. "We set the policy rates but policy rates have to transmit through the banks," Subbarao said.

Inflation based on the wholesale prices rose 0.27% in the 12 months to 14 March 2009, a record low and below the previous week's annual rise of 0.44%, data released by the government in mid-morning trade showed. The fall in headline inflation to a record low has raised expectations of further easing of the monetary policy by the Reserve Bank of India (RBI) to boost demand in the economy.

Retail inflation is, however, ruling firm even as the whole sale price inflation has touched a record low. Retail inflation as measured by the Consumer Price Index for farm labourer (CPI-AL) and rural labourers (CPI-RL) eased to 10.79% in February 2009, a marginal dip from 11.62% and 11.35% respectively in January 2009. CPI-AL and CPI-RL were at 6.38% and 6.11% in corresponding period last year.

Annual inflation for food articles remains high even though it has eased from the 10 year high of 11.64% witnessed in first week of January 2009. Inflation for food articles stood at 7.35% for first week of March 2009 with double-digit price rise for many items including sugar and gur, pulses and cereals. At the time of announcing a reduction in key short-term interest rates, the RBI said early this month that though consumer price inflation has remained at elevated level due to increase in primary articles prices, it is expected to decline with a lag effect due to sharp fall in the wholesale price inflation.

Prime Minister Manmohan Singh on Tuesday, 24 March 2009 said India's economy will revive in a big way in six to seven months as stimulus packages start to take effect. On the same day, Planning Commission Deputy Chairman Montek Singh Ahluwalia scaled down the GDP (gross domestic product) growth projection for the current fiscal to 6.5% from the 7.1% increase estimated by the government earlier during the year, owing to the ongoing global crisis.

Meanwhile, there are sings that the credit flow to businesses is improving. During the fortnight ended 13 March 2009, loans sanctioned by scheduled commercial banks (SCBs), including regional rural banks, went up by Rs 22423 crore. This was the third fortnight in a row when credit flow went up. Earlier, an extreme risk aversion by banks had chocked credit flow to the industry - the lifeline of business.

European shares moved in and out of positive zone after a five-day rally as investors remained worried about the health of the financial sector even as recent US data raised hope for a recovery. Key benchmark indices in UK and Germany were up by between 0.01% to 0.49%. But France's CAC 40 fell 0.08%.

Asian stocks rose today, 26 March 2009 lifting the region's benchmark index to a two-month high, as better-than- expected US economic reports fueled optimism that global growth is responding to government stimulus measures. Key benchmark indices in Hong Kong, Japan, Singapore, South Korea and Taiwan were up by between 0.75% and 3.78%.

Trading in US index futures indicated the Dow could rise 50 points at the opening bell on Thursday, 26 March 2009. US stocks advanced in a volatile session on Wednesday, 25 March 2009 as unexpected growth in durable-goods orders and new-home sales stimulated confidence the economy is improving. The Dow Jones industrial average rose 89.84 points, or 1.17%, to 7,749.81. The Standard & Poor`s 500 index rose 7.63 points, or 0.95%, to 813.88, while the Nasdaq Composite index rose 12.43 points, or 0.82%, to 1,528.95.

The US February 2009 new home sales increased by 4.7% to 337,000 compared with January 2009, as against an expected decline of 2.9%. Commerce Department's report showed durable goods orders rose 3.4% in February 2009 over the previous month to $165.6 billion, as against an estimated 2.5% fall.

Closer home, traders and brokers can now have a higher exposure in the currency futures market after the market regulator Sebi on Tuesday, 24 March 2009, doubled the gross outstanding limit to $10 million for small traders, $50 million for brokers. However, the limits for banks - the biggest participants in the market so far - have been left untouched at $100 million.

Earlier the global financial crisis ends and sooner the risk appetite of global investors and global companies improves, better it will be for India Inc. An increase in risk appetite of global investors/global companies will help Indian firms raise overseas funds required for business expansion. The global financial crisis has chocked the overseas funding route for Indian firms.

Raising funds could become difficult for small and medium enterprises (SMEs) with new lending regulations for banks, popularly known as Basel II norms coming into practice from 1 April 2009. All business units, irrespective of their size, will need to take ratings for their enterprises to secure working capital, loans, and other funds from banks.

Lack of funding has hit a slew of long-gestation infrastructure projects in India. World Bank Chief Economist & Senior Vice-President, Dr Justin Yifu Lin, on 13 March 2009, said if India can improve its infrastructure such as electricity, power, transportation and port facilities, it will be well on its path to achieve a 9-10% growth.

Meanwhile, foreign institutional investors have stepped up buying of Indian stocks which follows easing of FII selling vigour in the past few days. FIIs bought shares worth a net Rs 2,494.70 crore in nine trading sessions from 13 March 2009 to 25 March 2009. According to provisional data on NSE, foreign institutional investors (FIIs) were net buyers worth Rs 348.65 crore while mutual funds bought shares worth Rs 8.92 crore on Wednesday, 25 March 2009.

Foreign funds can take solace in the recent sharp rebound in the rupee against the dollar. However, the currency has been volatile. A recent sharp slide in the rupee to a record low had resulted in a depreciation in the value of FIIs equity portfolio to the extent of the fall in rupee. The rupee hit a record low beyond 52 per dollar early this month.

The Indian currency rose in early trade on Thursday 26 March 2009 helped by gains in other Asian currencies but month-end demand for the US unit from refiners and importers could limit gains. The partially convertible rupee was at 50.72 per dollar, higher than its Wednesday's close of 50.74/75.

Domestic institutional investors have been absorbing heavy selling by foreign funds in calendar year 2009. Mutual funds are likely give support to prices to prop-up year end net asset values (NAVs). The financial year ends on 31 March 2009.

The recent steep volatility in the currency does not augur well for corporate India as it may result in hedging losses for some firms.

Meanwhile, the National Advisory Committee on Accounting Standards (Nacas), has reportedly favoured suspending for two years a key rule that requires firms to mark-to-market (MTM) foreign exchange assets and liabilities, a decision which is favourable for corporate India.

Accounting Standard-11 mandates MTM provisioning in the P&L a/cs for forex-related gains and losses. It requires that forex assets & liabilities be recorded at a fair value on the date of preparation of the balance sheet. The demand to suspend this rule, known in accounting circles as AS-11, was made by the Confederation of Indian Industry (CII) on grounds that it could severely distort the earnings of many companies. It was contended that this accounting standard, designed to address normal conditions, should be suspended for the time being, as the present market conditions were not normal.

The upside on the domestic bourses will be capped in the next two months due to political uncertainty ahead of parliamentary election to be held between mid-April 2009 to mid-May 2009. More so at a time when it is highly unlikely that either Congress or BJP will come to power on its own, i.e., without the support of other small/regional parties. Early estimates point a fractured mandate. An alliance led by the Congress party is ahead in pre-poll surveys carried out by several polls.

But in a move which could undermine the chances of a Congress-led alliance getting more seats in the election, RJD supremo Lalu Prasad has announced candidates for 28 of the 40 constituencies in Bihar including from the three seats where Congress has sitting MPs. RJD is one of the key constituents of the current Congress-led UPA government at the Centre.

The Congress, meanwhile, has reported sealed a seat-sharing pact with the Nationalist Congress Party (NCP) in the populous Maharashtra state. Relations between the two parties have been prickly as the NCP negotiated with opposition parties to undercut Congress and boost its leader's prime ministerial ambitions. Congress will stand for 26 seats in the state and the NCP for 22. The allies are weighing up their options for a similar deal outside the state.

The Congress party on Tuesday 24 March 2009 said it would extend interest relief to farmers and build on the national job guarantee scheme. The focus on populist measures by Congress may weigh on the stock market sentiment especially at a time when the fiscal deficit has risen sharply. Releasing the party manifesto for the election, the Congress party on Tuesday said it would maintain government control over state-run firms in the manufacturing and finance sectors.

As per reports, BJP's manifesto is likely to be even more populist than that of the Congress party. The BJP looks set to sell rice to families below the poverty line at the hugely subsidised price of Rs 2 a kilo. Congress has already promised to sell 25 kilos of wheat or rice per month at Rs 3 a kilo.

A group of smaller political parties, including the communists, have formally launched a Third Front in a bid to provide an alternative to the two main parties viz. the Congress and the BJP.

A latest jolt to the Congress party came from a decision of the regional party in Tamil Nadu viz. the PMK on Thursday, 26 March 2009, to join hands with the All India Anna Dravida Munnetra Kazhagam (AIADMK). PMK is a part of the ruling Congress-led United Progressive Alliance at the centre. The PMK's decision to join AIADMK could give impetus to the Third Front if the PMK and AIADMK join it.

The BSE 30-share Sensex advanced 335.20 points, or 3.47%, to 10,003.10, its highest closing since 6 January 2009. At the day's high of 10,061.36, the Sensex rose 393.46 points in late trade. At the day's low of 9,739.93, the Sensex rose 72.03 points in early trade.

The BSE Sensex has risen 1,842.70 points or 22.58% in eleven trading sessions from a three-year closing low of 8,160.40 on 9 March 2009

The S&P CNX Nifty was up 97.90 points or 3.28% to 3,082.25.

The market breadth, indicating the overall health of the market, was strong on BSE with 1,394 shares advancing as compared with 1,163 that declined. A total of 56 shares remained unchanged.

The BSE clocked a turnover of Rs 4,607 crore, higher than Rs 4,097.44 crore on Wednesday, 25 March 2009.

Nifty April 2009 futures were at 3075.50, at a discount of 6.75 points as compared to the spot closing of 3082.25. Turnover in NSE's futures & options (F&O) segment increased to Rs 76,957.01 crore from Rs 74,456.63 crore on Wednesday, 25 March 2009.

The BSE Mid-Cap index was up 0.75% and BSE Small-Cap index rose 0.32%. Both the indices underperformed the Sensex.

The BSE Capital Goods index (up 5.42%), the BSE Power index (up 4.02%), the BSE Metal index (up 3.97%) outperformed the Sensex.

The BSE Realty index (down 4.54%), the BSE Healthcare index (up 1.21%), the BSE Consumer Durables index (up 2.26%), the BSE Oil & Gas index (up 2.42%), the BSE FMCG index (up 2.67%), the BSE PSU index (up 2.74%), the BSE Auto index (up 3.03%), the BSE TECk index (up 3.25%), the BSE IT index (up 3.29%), the BSE Bankex (up 3.38%) underperfomed the Sensex.

From the 30 share from the Sensex pack 27 stocks gained while rest fell. Reliance Infrastructure, ONGC, Tata Power Company, Bharti Airtel rose by between 4.91% to 5.57%.

India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) rose 2.16% to Rs 1,566.55. The company is reportedly expected to start natural gas production from its Krishna Godavari (KG) basin field in early April 2009.

RIL's advance tax payment fell 16.47% to Rs 370 crore in Q4 March 2009 over Q4 March 2008.

Shares of oil marketing companies rose for the third straight day in a row after the government issued oil bonds worth Rs 10,000 crore to compensate them for under-recoveries on sale of petroleum products at a controlled price during the current financial year. BPCL and HPCL rose by between 2.6% and 2.31% respectively.

But Indian Oil Corporation fell 0.85% after company said on Wednesday, 25 March 2009 the government has approved a proposal to absorb its subsidiary Bongaigaon Refinery & Petrochemicals (BRPL). Indian Oil will issue four shares for every 37 shares in BRPL.

Indian Oil Corporation has been issued oil bonds worth Rs 5,817.27 crore, while Bharat Petroleum Corporation has been issued bonds worth Rs 2,144.32 crore. Hindustan Petroleum Corporation has got bonds worth Rs 2,038.41 crore.

Rate sensitive real estate shares fell on recent reports falling interest rates have failed to revive housing demand. DLF, Indiabulls Real Estate, Akruti City fell by between 0.31% to 55.06%. Most of the realty deals including sale of commercial property and housing sales is driven by finance.

Some healthcare stocks rose on expectations of better Q4 March 2009 results following reports of higher advance tax payment by these firms. Matrix Laboratories, Lupin, Dr Reddy's Laboratories, Lupin Pfizer, Cipla rose by between 0.22% to 4.29%.

Outsourcing focussed IT stocks rose on hopes of a revival in the US economy, the biggest market for IT firms. India's largest software services exporter by sales TCS jumped 5.94%. The company's advance tax payment fell 54.3% to Rs 53 crore in Q4 March 2009 over Q4 March 2008.

India's second largest software services exporter Infosys Technologies rose 3.06%. Its ADR rose 2.25% on Wednesday. Recent reports said it may win a large IT project from the government, which will run on a transaction-based pricing model, similar to the passport processing contract its larger rival Tata Consultancy Services (TCS) won last year. The contract is among the many large IT contracts that are up for bidding from government departments or public sector undertakings, reports suggest.

India's third largest software services exporter, Wipro rose 5.03%. Its ADR gained 0.54% on Wednesday. Recently its unit Wipro Infotech won an outsourcing contract worth Rs 1,182 crore from the Employees State Insurance Corporation (ESIC).

The Indian rupee surged on Thursday helped by gains in other Asian currencies but month-end demand for the US unit from refiners and importers could limit gains. A stronger rupee affects operating profit of IT firms negatively as they earn most of their revenues from exports.

Metal stocks gained on a recent solid surge in metal prices on the London Metal Exchange and on imposition of a safeguard duty by the Indian government recently on import of some aluminium products. Steel Authority of India, National Aluminum Company, Tata Steel, Hindustan Zinc and Hindalco Industries rose by between 1.06% to 5.46%.

Rate sensitive auto shares gained on hopes lower interest rates and fall in fuel prices would spur demand for vehicles which is mainly driven by finance. India's largest commercial vehicle maker by sales Tata Motors rose 7.94%. The world's cheapest car Tata Nano was unveiled in Mumbai by Tata Group Chairman Ratan Tata on Monday 23 March 2009. Bookings for the Nano are expected to soothe the company's funding woes.

India's largest car maker by sales Maruti Suzuki India rose 5.07% on recent report firm is working towards launching new cars and improvising the existing ones to counter attack Tata Motors' recently unveiled world's cheapest car Tata Nano. In a tussle to capture the Indian passenger car market, Maruti is likely to launch Maruti Splash or Ritz in the second week of May 2009. Ritz will mount a 1.2 litre (KB series) petrol or 1.3-litre diesel engine and will be priced at around Rs 4-5.5 lakh.

India's largest motorbike maker by sales Hero Honda Motors rose 1.79%. India's largest tractor maker by sales Mahindra & Mahindra rose 1.58%.

Banking stocks gained after Reserve Bank of India (RBI) on Wednesday 25 March 2009 issued fresh norms for the treatment of provisions for restructured accounts, standard assets, and non-performing assets (NPAs), a move that will help improve the financial health of banks. India's largest bank in terms of assets and branch network State Bank of India rose 4.17%. Its advance tax payment jumped 27.64% to Rs 1810 crore in Q4 March 2009 over Q4 March 2008.

India's largest private sector bank by net profit ICICI Bank rose 2.31% to Rs 374.20. But the stock was off the day's high of Rs 376.70. Its American depository receipts (ADR) remained flat on Wednesday 25 March 2009. ICICI Bank's advance tax payment remained unchanged at Rs 250 crore in Q4 March 2009 when compared to Q4 March 2008.

India's second largest private sector bank by operating income HDFC Bank rose 1.37%. Its ADR rose 4.65% on Wednesday. Its advance tax payment rose 10% to Rs 275 crore in Q4 March 2009 over Q4 March 2008.

India's biggest dedicated housing finance firm by operating income HDFC rose 3.51%, extending gain for the second straight day after it announced a 50 basis points reduction in its retail prime lending rate (RPLR) to 14% effective Wednesday 25 March 2009.

The new RBI norms are expected to improve capital adequacy and bring down the level of net NPAs. Under the revised norms, the banks can use the provisions made for decline in the fair value of restructured advances (standard assets and NPAs) for netting from relative assets.

India's largest engineering and construction firm by sales Larsen & Toubro (L&T) rose 6.1%. As per recent reports L&T and Grasim Industries are on the verge of settling their 7-year old legal dispute over Grasim`s 0.62% stake in L&T and the latter`s 11.49% stake in Ultratech, the Birla group cement firm. Grasim Industries and Ultratech Cement are Aditya Birla group companies.

Other capital goods stocks Bharat Heavy Electricals, Crompton Greaves, Punj Lloyd, Praj Industries, ABB, rose by between 0.49% to 14.1%.

Some FMCG stocks rose on expectations of better Q4 March 2009 results following reports of higher advance tax payment by these firms. Nestle India, Britannia Industries, Marico, Tata Tea, ITC, United Breweries rose by between 0.52% to 4.23%. India's largest FMCG firm by sales Hindustan Unilever rose 1.85%. The company's advance tax payment rose 30% to Rs 130 crore in Q4 March 2009 over Q4 March 2008.

Unitech clocked the highest volume of 3.7 crore shares on BSE. Motherson Sumi (3.42 crore shares), Cals Refineries (1.74 crore shares), GVK Power Infrastructure (1.09 crore shares) and IFCI (95.77 lakh shares) were the other volume toppers I that order.

Akruti City clocked the highest turnover of Rs 545.49 crore on BSE. Reliance Industries (Rs 370.53 crore), Motherson Sumi (Rs 206.66 crore), ICICI Bank (Rs 163.49 crore) and Reliance Infrastructure (Rs 135.79 crore) were the other turnover toppers in that order

Nifty March 2009 futures at premium

Turnover declines

Nifty March 2009 futures were at 2990.55, at a premium of 6.20 points as compared to the spot closing of 2984.35. Turnover in NSE's futures & options (F&O) segment was Rs 74,456.63 crore, lower than Rs 78,270.59 crore on Tuesday, 24 March 2009.

The near-month March 2009 derivatives contract will expire tomorrow, 26 March 2009.

Reliance Industries March 2009 futures were at premium at 1540.85 compared to the spot closing of 1532.20.

State Bank of India March 2009 futures were at premium at 1055.30 compared to the spot closing of 1049.95.

DLF March 2009 futures were at premium at 177.60 compared to the spot closing of 176.65.

In the cash market, the S&P CNX Nifty gained 45.65 points or 1.55% at 2984.35.

Bullion metals go up

Gold and silver shine as the dollar dips

Bullion metal prices ended higher on Wednesday, 25 March, 2009. The weak dollar was responsible for precious metals ending higher today.

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 and also vice versa.

On Wednesday, Comex Gold for April delivery rose $12 (1.3%) to close at $935.8 an ounce on the New York Mercantile Exchange. It fell to an intra day low of $916. Last week, the yellow metal ended higher by 2.8%. For the month of February, gold ended higher by 7.4%. For January, 2009, gold had gained 3.9%. Year to date, gold prices are higher by 13.4%.

On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (7.9%) since then.

On Wednesday, Comex silver futures for May delivery rose 8 cents (0.3%) to end at $13.437 an ounce. In February, 2009, silver had rose 4.3% after climbing 14% in January. Year to date, silver has climbed 22.9% this year. For 2008, silver had lost 24%.

In the currency market today, the dollar weakened against its rivals. The dollar index, which measures the strength of the dollar against a basket of six currencies fell 0.6%. But then, the dollar pared almost all its losses after Treasury Secretary Timothy Geithner clarified his earlier comments, emphasizing that the dollar remains the world's reserve currency.

Earlier this week, the Treasury Department had unveiled their plan about buying back most of the bank's toxic assets thereby cleaning up their balance sheet to the extent possible. Treasure Secretary Tim Geithner detailed that the Treasury plans to create a series of public-private investments funds to buy $500 billion to $1000 billion in legacy loans and securities. To encourage participation from the private sector, the government is taking on much of the risk and offering subsidies.

In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.

Last year, the weakening dollar and higher global demand for raw materials had led to records for commodities including gold. Gold reached a record in March 2008 as a U.S. housing slump and credit crisis spurred the Federal Reserve to slash borrowing costs. In the last move, the Federal Reserve has cuts its target bank lending rate to 0.25% from 5.25% in September, 2007. The Fed did it in nine steps.

Prior to 2008, 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 April delivery closed higher by Rs 153 (1.01%) at Rs 15,226 per 10 grams. Prices rose to a high of Rs 15,382 per 10 grams and fell to a low of Rs 14,961 per 10 grams during the day's trading.

At the MCX, silver prices for May delivery closed Rs 86 (0.4%) higher at Rs 22,351/Kg. Prices opened at Rs 22,305/kg and rose to a high of Rs 22,545/Kg during the day's trading.

Crude slides down

Oil prices drop as crude inventories rise more than expected

Crude prices ended lower on Wednesday, 25 March, 2009 as the weekly inventory report by the energy department showed that crude inventories rose more than expected last week. It was due to the drop in demand for petroleum products. Crude prices fell today despite the weak dollar.

On Wednesday, crude-oil futures for light sweet crude for May delivery closed at $52.77/barrel (lower by $1.21 or 2.2%) on the New York Mercantile Exchange. Last week, crude ended higher by 10.4%. For the month of February, crude prices had ended higher by 1.5%.

Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 64.6% since then. Year to date, in 2009, crude prices are higher by 18.3%. On a yearly basis, crude prices are lower by 50%.

The EIA reported today that crude inventories rose 3.3 million barrels last week (for the week ended 20 March, 2009), more than the 1.4 million barrels expected. At 356.6 million barrels, stocks are at the highest level since July 1993. U.S. refineries operated at 82% of their operable capacity last week, down slightly from a week ago.

EIA also reported that total petroleum products supplied over the past four weeks averaged 19.1 million barrels a day, down 3.2% from a year ago. Gasoline inventories fell by 1.1 million barrels in the week while distillate stockpiles, which include diesel and heating oil, declined by 1.6 million barrels.

In the currency market today, the dollar weakened against its rivals. The dollar index, which measures the strength of the dollar against a basket of six currencies fell 0.6%. But then, the dollar pared almost all its losses after Treasury Secretary Timothy Geithner clarified his earlier comments, emphasizing that the dollar remains the world's reserve currency.

Also at the Nymex on Wednesday, April-reformulated gasoline fell 0.5% to $1.495 a gallon and April heating oil dropped 2.3% to $1.4647 a gallon.

April natural-gas futures fell 0.4% to $4.329 per million British thermal units.

Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.

At the MCX, crude oil for March delivery closed at Rs 2,685/barrel, lower by Rs 6 (0.22%) against previous day's close. Natural gas for April delivery closed at Rs 223.5/mmbtu, lower by Rs 1/mmbtu (0.44%).

Yes Bank

We recommend a buy on Yes Bank from a short-term trading perspective. It is apparent from the charts of Yes Bank that after meeting resistance around Rs 90 in early January, it fell by nearly 55 per cent and found support around Rs 41 in early March. The early March low is also a 52-week low for this stock. However, the stock changed trend and breached the medium-term down trendline recently. On March 24, the stock jumped 5 per cent, penetrating 21-day moving average. We observe that there is an increase in volume over the past three trading sessions. The daily relative strength index is rising in the neutral region and the weekly RSI is recovering from the oversold levels. The daily moving average convergence and divergence indicator is signalling a buy. We are bullish on the stock from a short-term horizon. We anticipate the stock's short-term uptrend to prolong until it hits our price target of Rs 56 in the approaching sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 47

via BL

BSE Bulk Deals to Watch - March 25 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
25/3/2009 530499 A K CAPITAL FIRSTRAND IRELAND PLC S 45600 141.01
25/3/2009 526955 ABL BIOTECHN MAVERICK INVESTMENT SOLUTION PVT LTD S 49776 11.45
25/3/2009 520077 AMTEK AUTO L OLYMPIA BUILDERS PVT LTD B 1899000 70.00
25/3/2009 520077 AMTEK AUTO L HDFC MUTUAL FUND S 1800000 70.00
25/3/2009 530355 ASIAN OILFIE OASIS TRADE CAPFIN P LTD B 325000 30.69
25/3/2009 532995 AVON CORP PANKAJ PRATAPSINH SARAIYA B 97000 5.19
25/3/2009 531682 CAT TECHNOL NEWGEN INTERNATIONAL PVT LTD S 400424 3.05
25/3/2009 523736 DHUNSE TEA I KASHIPUR HOLDINGS LTD B 325000 66.00
25/3/2009 523736 DHUNSE TEA I GREENPLY LEASING AND FINANCE LTD B 212980 66.00
25/3/2009 523736 DHUNSE TEA I MAYFAIR INDIA LTD S 515300 66.00
25/3/2009 532958 ETC NETWORK MUKUL AGRAWAL B 50000 60.50
25/3/2009 530317 GODAVAR DRUG SUSHMA KAKANI B 70000 3.80
25/3/2009 530317 GODAVAR DRUG KAMALA JAJU B 65000 3.80
25/3/2009 530317 GODAVAR DRUG GAUTAMCHAND JAIN S 135000 3.80
25/3/2009 505750 JOSTS ENG CO MAHESH PARSAD B 5000 124.86
25/3/2009 505750 JOSTS ENG CO MAHESH PARSAD S 5000 118.10
25/3/2009 532967 KIRI DYES PRAGYA MERCANTILE PVT LTD B 150000 100.00
25/3/2009 505283 KIRLOSAR PN BETTER VALUE HOLDING PVT LTD B 209962 167.00
25/3/2009 505283 KIRLOSAR PN KIRLOSKAR INTEGRATED TECHNOLOGIES LIMITED S 209962 167.00
25/3/2009 511728 KZLEASING KARAN MAHESHKUMAR HADVANI B 61971 74.54
25/3/2009 511728 KZLEASING YOGESH GIRDHARLAL PANDYA S 40000 74.65
25/3/2009 511728 KZLEASING AMI STOCK SHARE BROKERS PLTD S 33000 74.70
25/3/2009 530543 MARG LTD FRONTPOINT ASIA PACIFIC FUND L.P B 1278696 38.21
25/3/2009 530543 MARG LTD FRONTPOINT FINANCIAL SERVICES FUND L.P S 155000 39.75
25/3/2009 530543 MARG LTD MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. S.V. S 1123696 38.00
25/3/2009 511688 MATHEW EASOW MATHEW EASOW FISCAL SERVICES LIMITED B 20898 5.69
25/3/2009 513131 METALMAN IND ISHA INVESTMENT B 60000 6.12
25/3/2009 531611 PRRANET INDU CHANDRAKANT BHOGILAL SHAH S 715939 2.87
25/3/2009 513558 REAL STRIP L NILAMBEN M RATHOD B 50000 26.05
25/3/2009 513558 REAL STRIP L NILAMBEN M RATHOD S 50000 29.00
25/3/2009 526407 RIT PRO IND AMULYA LEASING AND FINANCE LTD B 600000 17.30
25/3/2009 526407 RIT PRO IND CONSOLIDATED SECURITIES LTD S 600000 17.30
25/3/2009 531898 SANGUINE MD ANKURANILAGRAWAL B 160000 2.86
25/3/2009 531898 SANGUINE MD SUNIL RAMESHBHAI RUPANI B 116000 2.86
25/3/2009 531898 SANGUINE MD BHROSEMAND COMMODITIES PVT. LTD. S 160000 2.86
25/3/2009 505729 SINGER INDI DILIPKUMAR ARORA HUF S 15000 39.41
25/3/2009 512413 SPECTACLE SANJEEV JAI AEREN S 355155 46.90
25/3/2009 512048 SPLASH MEDIA NITIN T KATWA B 7389 90.10
25/3/2009 512048 SPLASH MEDIA KATWA KANCHANMALA T B 15000 90.10
25/3/2009 512048 SPLASH MEDIA MARIGOLD INVESTTRADE PRIVATE LIMITED S 20000 92.00
25/3/2009 512048 SPLASH MEDIA CHIRAG SHAH S 12000 90.10
25/3/2009 526133 SUPERTEX IND KUMKUM STOCK BROKER PVT LTD B 99417 22.03
25/3/2009 526133 SUPERTEX IND PUSHPABEN MUKTILAL SHAH B 50000 19.50
25/3/2009 526133 SUPERTEX IND SHAH EKTA RIPPLE B 52500 22.36
25/3/2009 526133 SUPERTEX IND KUMKUM STOCK BROKER PVT LTD S 107453 21.03
25/3/2009 526133 SUPERTEX IND PUSHPABEN MUKTILAL SHAH S 50000 22.33
25/3/2009 511503 SYNERG LOGIN PIYUSH D MEHTA HUF B 61000 3.75
25/3/2009 531874 VENUS VENT CHANDRA SHEKHAR SUNIL BHATT B 37060 27.33
25/3/2009 531874 VENUS VENT CHANDRA SHEKHAR SUNIL BHATT S 43136 27.85
25/3/2009 531668 VISION CORPO BALLY MERCHANDISE LTD. B 925000 5.69
25/3/2009 531668 VISION CORPO RUPA V SHAH S 925000 5.69
25/3/2009 531249 WELL PACK PA GANDHI MANISHA NAVNEETLAL B 22613 131.29
25/3/2009 531249 WELL PACK PA KAMLESH NAHAR B 39000 132.00
25/3/2009 531249 WELL PACK PA TUSHAR RAMESHBHAI PATEL B 29500 131.15
25/3/2009 531249 WELL PACK PA MADHU CHOWDHARY S 40000 132.00
25/3/2009 531249 WELL PACK PA VISHESH SHAHRA S 25000 131.90

NSE Bulk Deal Watch - March 25 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
25-MAR-2009,ACE,Action Construction Equip,INDUSINO INTERNATIONAL,BUY,2039167,12.00,-
25-MAR-2009,ALPSINDUS,Alps Industries Ltd.,INTELL INVOFIN INDIA PVT LTD,BUY,1,6.50,-
25-MAR-2009,AMTEKAUTO,AmtekAuto-Roll Sett,JPM COPTHAL INV AC COPTHALL MAURITIUS INV LTD,BUY,5397441,70.00,-
25-MAR-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD,BUY,147190,2017.84,-
25-MAR-2009,GMRINDS,GMR Industries Limited,PRIME INDIA INVESTMENT FUND LTD,BUY,150000,85.95,-
25-MAR-2009,HBLPOWER,HBL Power Systems Limited,BLACKSTONE ASIA ADVISORS LLC. DEUTSCHE BANK,BUY,77600,103.00,-
25-MAR-2009,IOLN,IOL Netcom Limited,SAJEEVE KOPPARA THOMAS,BUY,176000,39.96,-
25-MAR-2009,JUBILANT,Jubilant Organsosys Limit,JUBLIANT EMPLOYEESWELFARETRUST,BUY,1048000,90.00,-
25-MAR-2009,KIRIDYES,Kiri Dyes and Chemicals L,PRAGYA MERCANTILE PVT LTD,BUY,150000,100.00,-
25-MAR-2009,KIRIDYES,Kiri Dyes and Chemicals L,SHRIMAL ANIL,BUY,25747,116.03,-
25-MAR-2009,LUMAXIND,Lumax Industries Ltd,CHAINANI SANJIV KANWAL,BUY,96942,63.50,-
25-MAR-2009,PRAKASH,Prakash Industries Ltd.,MORGAN STANLEY MAURITIUS COMPANY LTD,BUY,1272042,42.75,-
25-MAR-2009,UNITECH,Unitech Ltd,AMBIT SECURITIES BROKING PVT. LTD.,BUY,10906283,31.36,-
25-MAR-2009,UNITECH,Unitech Ltd,MORGAN STANLEY MAURITIUS COMPANY LTD,BUY,9600000,30.67,-
25-MAR-2009,ACE,Action Construction Equip,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,SELL,2039167,12.00,-
25-MAR-2009,ALPSINDUS,Alps Industries Ltd.,INTELL INVOFIN INDIA PVT LTD,SELL,250000,6.54,-
25-MAR-2009,AMTEKAUTO,AmtekAuto-Roll Sett,HSBC MUTUAL FUND A/C INDIA PRUDENCE FUND,SELL,800000,70.00,-
25-MAR-2009,AMTEKAUTO,AmtekAuto-Roll Sett,HSBC TRUSTEE CO LTD A/C HDFC EQUITY FUND,SELL,3904000,70.00,-
25-MAR-2009,EDSERV,Edserv Softsystems Limite,EPOCH SYNTHETICS PVT LTD,SELL,70006,23.90,-
25-MAR-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD,SELL,147190,2018.78,-
25-MAR-2009,GMRINDS,GMR Industries Limited,BRP STOCK BROKING SERVICES LIMITED,SELL,120000,85.95,-
25-MAR-2009,HBLPOWER,HBL Power Systems Limited,BLACKSTONE ASIA ADVISORS LLC. DEUTSCHE BANK,SELL,155200,103.00,-
25-MAR-2009,JUBILANT,Jubilant Organsosys Limit,COPTHALL MAURITIUS INVESTMENT LTD FCCB A/C,SELL,915294,90.00,-
25-MAR-2009,KIRIDYES,Kiri Dyes and Chemicals L,SHRIMAL ANIL,SELL,135000,100.00,-
25-MAR-2009,LUMAXIND,Lumax Industries Ltd,KRISMA INVESTMENTS PVT. LTD.,SELL,96942,63.50,-
25-MAR-2009,PRAKASH,Prakash Industries Ltd.,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,SELL,1272042,42.75,-
25-MAR-2009,UNITECH,Unitech Ltd,AMBIT SECURITIES BROKING PVT. LTD.,SELL,10906283,31.37,-

Post Session Commentary - March 25 2009

Markets closed the highly volatile session in green terrain on significant buying across the sectoral indices. The Realty (6.32%), Oil & Gas (3.66%), the Metal (3.31%) and Bankex (3%) indices led the rally on expectations of easing of the monetary policy by the Central bank due to the easing of the inflation to less than 1%. In addition, the markets greeted the US Federal Reserve plan to buy bank's toxic assets. Though, volatility gripped the domestic bourses during the trading ahead of the expiry of March 2009 derivatives contracts on 26th March 2009. During afternoon, market came off the high on some profit booking after smart gain in domestic stocks.

The market opened today on flat note as there was lack of cues from the global markets. The US stock markets closed lower on Tuesday and Asian markets were trading slightly mixed in early trading. However, soon after start domestic market gained some grounds, as buying witnessed among the selective scrips. Further, benchmark indices pared gains after reaching upbeat, tracking US index futures that slipped into red. Though, market bounced back once again as US index futures regained positive movement. Finally, market climbed to the day's high during final trading on healthy buying interest observed over the ground. BSE Sensex ended above 9,650 level and NSE Nifty closed above 2,950 level. From the sectoral front, most of the indices ended in positive. Besides, strong buying was seen in Reality, Oil & Gas, Metal, Bank, Capital Goods, Power and
IT stocks. Mid Cap and Small Cap stocks also gathered some favor during the trading session. However, PSU stocks witnessed selling from its basket.

Among the Sensex pack 22 stocks ended in green territory and 8 in red. The market breadth indicating the overall health of the market remained positive as 1263 stocks closed in green while 1219 stocks closed in red and 104 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 196.86 points at 9,667.90 and NSE Nifty ended up by 45.65 points at 2,984.35. BSE Mid Caps and Small Caps closed with gains of 21.09 and 10.01 points at 2,841.17 and 3,165.46 respectively. The BSE Sensex touched intraday high of 9,706.47 and intraday low of 9,430.45.

Gainers from the BSE Sensex pack are JP Associates (7.51%), Tata Power (7.12%), Sterlite Industries (6.18%), DLF Ltd (6.22%), Reliance Infra (5.84%), Reliance (5.63%), Tata Steel (4.11%), RCom (3.96%) and HDFC Bank (3.60%).

Losers from the BSE Sensex pack are NTPC Ltd (2.77%), Bharti Airtel (2.05%), ONGC Ltd (2.02%), HUL (1.88%), Tata Motors (1.27%), Ranbaxy Lab (0.76%) and Sun Pharma (0.68%).

Prime Minister Manmohan Singh will meet the industry leaders on March 28 to review the economic situation amid India Inc urging the government to seek poll panel waiver for key infrastructure projects. The Prime Minister, who is likely to seek their suggestions for restoring the growth momentum witnessed in the past four years, corporate sources said, has invited the heads of FICCI along with Assocham and CII and other industry leaders.

On the global markets front the Asian markets which opened before the Indian market, ended mostly lower. Shanghai Composite, Hang Seng, Nikkei 225 and Straits Times index ended higher by 46.86, 288.23, 8.31 and 14.66 points at 2,291.55, 13,622.11, 8,479.99 and 1,691.68 respectively. However, and Seoul Composite gained 7.32 points at 1,229.02. Japan''s exports fell to record low in February from a year earlier. Exports dropepd 49.4% from the previous year, the sharpest fall since the Ministry of Finance began compiling comparable data in 1980.

European markets which opened after the Indian market are trading in red. In Frankfurt the DAX index is trading down by 10.66 points at 4,176.70 and in London FTSE 100 is trading higher by 20.67 points at 3,890.79.

The BSE Reality outperformed the benchmark indices as ended up by (6.32%) or 100.6 points at 1,691.67 on hopes lower rates will spur housing demand. Gainers are Unitech Ltd (16.70%), Housing Development (8.73%), Mahindra Life (8.38%), DLF Ltd (6.22%) and Parsvnath (5.21%).

The BSE Oil & Gas index gained (3.66%) or 248.03 points to close at 7,020.86 as the government issued oil bonds worth Rs. 10,000 crore to oil marketing companies for under-recoveries on the sale of petroleum products. Gainers are Reliance (5.63%), Reliance Pet (5.16%), Cairn Ind (3.83%), Gail India (3.57%) and Reliance Natural Resources (3.54%).

The BSE Metal index closed with increase of (3.31%) or 179.43 points at 5,604.70. Scrips that gained are Welspan Gujarat SR (14.56%), Sterlite Industries (6.48%), Tata Steel (4.11%), JSW Saw (4.10%) and Steel Authority (3.96%).

The BSE Bank stocks advanced by (3%) or 132.77 points to close at 4,552.44 on expectations of lowering interest rates that will result in boosting liquidity into the market. Major gainers are Punjab National Bank (8.57%), Axis Bank (6.84%), HDFC Bank (3.60%), Kotak Bank (3.54%) and ICICI Bank (3%).

The BSE Capital Goods index surged (1.85%) or 110.52 points to close at 6,094.91. Main gainers are Aiaengineer (9.78%), Usha Martin (8.23%), Suzlon Energy (5.03%), ABB Ltd (4.37%) and BHEL (2.70%).

The BSE Power index also ended higher by (1.68%) or 29.84 points to close at 1,810.37. GMR Infra (8.67%), Tata Power (7.12%), Reliance Infra (5.84%), Lanco Infra (5.05%) and Suzlon Energy (5.03%) ended in positive territory.

Novartis India surged 19.99% after Swiss parent Novartis AG made an open offer to buy an additional 39% stake in its Indian unit at Rs. 351 per share, a 6.14% premium over the current market price.

HDFC gained 2.10%. The country largest mortgage player has cut its prime-lending rate by 50 bps to 14% for the current and new customers. The new rate would be effective from March 25. HDFC in the past three months has cut its prime-lending rate by 100 bps.

Indian Oil Corporation Ltd surged 0.59%. It has informed that the Ministry of Corporate Affairs has sanctioned the Scheme of Amalgamation for merger of Bongaigaon Refinery & Petrochemicals Ltd (BRPL) (a subsidiary of IndianOil) with Indian Oil Corporation Ltd under Section 391(2) read with Section 394 of the Companies Act, 1956.

ICICI Bank gained 3%. The bank is looking at mobilizing Rs 1,200 crore through the issue of upper tier-II bonds, which carry a coupon rate of 9.95 per cent and have tenure of 15 years with a call option after 10 years. The issue has a green shoe option of Rs 300-crore.

Tata Communications ended with increase of 2.13%. The company said had received amount of Rs4.24 bn through selling some of its stake in-group firm Tata Teleservices.

Capital goods carry the day

Market recovered most of the day's losses towards the close of the session, after shedding 41 points in early trades from the day's high of 9706. Tracking weak global indices, Sensex opened marginally below its previous close. The mood remained bearish and the market slipped on profit booking in index pivotals, public sector units and health care stocks. The market once again witnessed selling pressure and Sensex touched the day's low of 9430 by afternoon amid a choppy session. However, the index recovered, shrugging off weakness on substantial buying in realty and oil stocks towards the close and ended the session at 9668, up 197 points. Nifty gained by 46 points to close at 2984.

The market breadth was positive. Of the 2,586 stocks traded on the BSE, 1,263 stocks advanced, 1,219 stocks declined and 104 stocks ended unchanged. Of the 13 sectoral indices, BSE Realty (index of realty shares) flared up by 6.32% followed by BSE Oil & Gas (up 3.66%), BSE Metal (up 3.31%) and BSE Bankex (up 3%). Other indices were up 0.18-1% each.

Among Sensex stocks, JP Associates was the leading gainer and its stock price soared by 7.51% at Rs84.45. Among other stocks, Tata Power advanced 7.12% at Rs740.20, Sterlite Industries jumped 6.48% at Rs347.35, while DLF, Reliance Infrastructure, Reliance Industries, Tata Steel, Reliance Communications, HDFC Bank and ICICI Bank closed with sharp gains of 3-6%. Among laggards, National Thermal Power Corporation slipped 2.77% at Rs179.95, Bharti Airtel shed 2.05% at Rs591.05, ONGC by 2.02% at Rs763.70, Hindustan Unilever fell by 1.88% at Rs234.70 and Tata Motors lost 1.27% at Rs160.

Over 3.66 crore Unitech shares changed hands on the BSE followed by Cals Refineries (2.62 crore shares), Crompton Greaves (1.27 crore shares), Reliance Natural Resources (1.14 crore shares) and Suzlon Energy (1.12 crore shares).

Sensex at 2-1/2 month closing high

Key benchmark indices extended recent strong gains as buying by foreign funds and higher US index futures bolstered sentiment. Expectations of a further cut in policy rates by the Reserve Bank of India (RBI) also aided the surge in what a highly volatile trading session today.

Metal, realty, banking and capital goods stocks gained. Index heavyweight Reliance Industries galloped. The BSE 30-share Sensex jumped 196.85 points, or 2.08%, up about 235 points from the day's low. The barometer index today settled at its highest level in 2-1/2 months.

From a three-year closing low of 8,160.40 on 9 March 2009, the BSE Sensex has risen 1,507.50 points or 18.47%.

The market was highly volatile today ahead of the expiry of March 2009 derivatives contracts on Thursday, 26 March 2009. After opening weak, the market regained strength to trade in green for a brief period before losing steam once again. Investors resorted to profit booking after a recent solid surge in share prices. The market bounced back in morning trade as US index futures rose after US President Barack Obama said there are signs of progress in US efforts to revive the world's largest economy.

The market pared gains after surging to the day's high in early afternoon trade. It lost further ground in choppy trade later as US index futures slipped into the red. The market surged in mid-afternoon trade as US index futures once again moved into the green from red. The market extended gains in late trade.

Volatility may remain high tomorrow, 26 March 2009, ahead of the expiry of March 2009 derivatives contracts on Thursday, 26 March 2009. As per reports, rollover of Nifty positions from March 2009 series to April 2009 was around 50% as of Tuesday, 24 March 2009.

Prime Minister Manmohan Singh on Tuesday, 24 March 2009 said India's economy will revive in a big way in six to seven months as stimulus packages start to take effect. On the same day, Planning Commission Deputy Chairman Montek Singh Ahluwalia scaled down the GDP (gross domestic product) growth projection for the current fiscal to 6.5% from the 7.1% increase estimated by the government earlier during the year, owing to the ongoing global crisis.

Meanwhile, traders and brokers can now have a higher exposure in the currency futures market after the market regulator Sebi on Tuesday, 24 March 2009, doubled the gross outstanding limit to $10 million for small traders, $50 million for brokers. However, the limits for banks - the biggest participants in the market so far - have been left untouched at $100 million.

Europe stocks fell after a firm start. Key benchmark indices in France, Germany and UK were down by between 0.71% to 1.1%.

Asian shares were mostly lower today, 25 March 2009, as investors paused to assess whether a US plan to deal with banks' toxic debt would revive the financial system and help pull the economy out of recession. Key benchmark indices in Hong Kong, China, Japan and Singapore were down by between 0.1% and 2%. Key benchmark indices in South Korea and Taiwan were up by between 0.6% and 1.99%.

Japan reported a record fall in exports in February 2009, with no signs of a demand recovery in its key US and European markets. There was also a decline in Japanese imports in the month. The data pointed to more pain for an economy already mired in its worst recession since the 1974 oil shocks, showing both domestic consumption and overseas demand were crumbling under the weight of the global slowdown.

Trading in US index futures indicated the Dow could rise 3 points at the opening bell on Wednesday, 25 March 2009. The Dow futures moved between green and red.

US stocks ended lower on Tuesday, 24 March 2009 giving back some of the previous session's big gains, as investors paused to re-assess the likely success of the government's bank rescue plan. The Dow Jones industrial average fell 115.65 points, or 1.5%, to 7,659.97. The Standard & Poor`s 500 index fell 16.67 points, or 2.03%, to 806.35, while the Nasdaq Composite index fell 39.25 points, or 2.52%, to 1,516.52.

Closer home, fall in headline inflation to a record low has raised expectations of further easing of the monetary policy by the Reserve Bank of India (RBI) to boost demand in the economy. Inflation based on the wholesale price index (WPI) rose 0.44% in the year through 7 March 2009, a record low for the current series, data released by the government during trading hours on Thursday, 19 March 2009, showed. The rate of growth in inflation was much lower than previous week's annual rise of 2.43%.

Retail inflation is, however, ruling firm even as the whole sale price inflation has touched a record low. Retail inflation as measured by the Consumer Price Index for farm labourer (CPI-AL) and rural labourers (CPI-RL) eased to 10.79% in February 2009, a marginal dip from 11.62% and 11.35% respectively in January 2009. CPI-AL and CPI-RL were at 6.38% and 6.11% in corresponding period last year.

Annual inflation for food articles remains high even though it has eased from the 10 year high of 11.64% witnessed in first week of January 2009. Inflation for food articles stood at 7.35% for first week of March 2009 with double-digit price rise for many items including sugar and gur, pulses and cereals. At the time of announcing a reduction in key short-term interest rates, the RBI said early this month that though consumer price inflation has remained at elevated level due to increase in primary articles prices, it is expected to decline with a lag effect due to sharp fall in the wholesale price inflation.

Earlier the global financial crisis ends and sooner the risk appetite of global investors and global companies improves, better it will be for India Inc. An increase in risk appetite of global investors/global companies will help Indian firms raise overseas funds required for business expansion. The global financial crisis has chocked the overseas funding route for Indian firms.

Raising funds could become difficult for small and medium enterprises (SMEs) with new lending regulations for banks, popularly known as Basel II norms coming into practice from 1 April 2009. All business units, irrespective of their size, will need to take ratings for their enterprises to secure working capital, loans, and other funds from banks.

Lack of funding has hit a slew of long-gestation infrastructure projects in India. World Bank Chief Economist & Senior Vice-President, Dr Justin Yifu Lin, on 13 March 2009, said if India can improve its infrastructure such as electricity, power, transportation and port facilities, it will be well on its path to achieve a 9-10% growth.

Meanwhile, foreign institutional investors are now in buying mode which follows easing of FII selling vigour in the past few days. FIIs bought shares worth a net Rs 2,197.10 crore in eight trading sessions from 13 March 2009 to 24 March 2009.

Foreign funds can take solace in the recent sharp rebound in the rupee against the dollar. However, the currency has been volatile. The partially convertible rupee has weakened in the past two days after a steep rebound. The rupee was at 50.76 per dollar today, below its previous close of 50.73/74.

A recent sharp slide in the rupee to a record low had resulted in a depreciation in the value of FIIs equity portfolio to the extent of the fall in rupee. The rupee hit a record low beyond 52 per dollar early this month.

Domestic institutional investors have been absorbing heavy selling by foreign funds in calendar year 2009. Mutual funds are likely give support to prices to prop-up year end net asset values (NAVs). The financial year ends on 31 March 2009.

The recent steep volatility in the currency
does not augur well for corporate India as it may result in hedging losses for some firms.

The upside on the domestic bourses will be capped in the next two months due to political uncertainty ahead of parliamentary election to be held between mid-April 2009 to mid-May 2009. More so at a time when it is highly unlikely that either Congress or BJP will come to power on its own, i.e., without the support of other small/regional parties. Early estimates point a fractured mandate.

An alliance led by the Congress party is ahead in pre-poll surveys carried out by several polls. But in a move which could undermine the chances of a Congress-led alliance getting more seats in the election, RJD supremo Lalu Prasad has announced candidates for 28 of the 40 constituencies in Bihar including from the three seats where Congress has sitting MPs. RJD is one of the key constituents of the current Congress-led UPA government at the Centre.

The Congress, meanwhile, has reported sealed a seat-sharing pact with the Nationalist Congress Party (NCP) in the populous Maharashtra state. Relations between the two parties have been prickly as the NCP negotiated with opposition parties to undercut Congress and boost its leader's prime ministerial ambitions. Congress will stand for 26 seats in the state and the NCP for 22. The allies are weighing up their options for a similar deal outside the state.

The Congress party on Tuesday 24 March 2009 said it would extend interest relief to farmers and build on the national job guarantee scheme. The focus on populist measures by Congress may weigh on the stock market sentiment especially at a time when the fiscal deficit has risen sharply. Releasing the party manifesto for the election, the Congress party on Tuesday said it would maintain government control over state-run firms in the manufacturing and finance sectors.

A group of smaller political parties, including the communists, have formally launched a Third Front in a bid to provide an alternative to the two main parties viz. the Congress and the BJP.

The BSE 30-share Sensex was up 196.85 points, or 2.08%, to 9,667.90, its highest closing since 6 January 2009. At the day's high of 9,706.47, the Sensex rose 235.43 points in late trade. At the day's low of 9,430.45, the Sensex fell 40.59 points in early trade.

The market breadth, indicating the overall health of the market, turned positive on BSE with 1,269 shares advancing as compared with 1,239 that declined. A total of 61 shares remained unchanged. The breadth was weak earlier in the day.

The S&P CNX Nifty jumped 45.65 points or 1.55% to 2,984.35. It touched a high of 2,996.50.

The BSE clocked a turnover of Rs 4,051 crore, lower than Rs 4,258.49 crore on Tuesday, 24 March 2009.

Nifty March 2009 futures were at 2990.55, at a premium of 6.20 points as compared to the spot closing of 2984.35. Turnover in NSE's futures & options (F&O) segment was Rs 74,456.63 crore, lower than Rs 78,270.59 crore on Tuesday, 24 March 2009.

The BSE Mid-Cap index was up 0.75% and BSE Small-Cap index rose 0.32%. Both the indices underperformed the Sensex.

The BSE Realty index (up 6.32%), the BSE Oil & Gas index (up 3.66%), the BSE Metal index (up 3.31%), the BSE Bankex (up 3%) outperformed the Sensex.

The BSE PSU index (down 0.01%), the BSE Healthcare index (up 0.16%), the BSE FMCG index (up 0.29%), the BSE Auto index (up 0.44%), the BSE TECk index (up 0.48%), the BSE Consumer Durables index (up 0.7%), the BSE IT index (up 1.02%), the BSE Power index (up 1.68%), the BSE Capital Goods index (up 1.85%) underperfomed the Sensex.

From the 30 share Sensex pack, 22 stocks rose while rest fell. Tata Power Company, Jaiprakash Associates, Reliance Infrastructure, Reliance Communications rose by between 3.96% to 7.51%. While Bharti Airtel, NTPC, Ranbaxy Laboratories fell by between 0.76% to 2.77%.

India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) jumped 5.63% to Rs 1,533.40 ahead of production of gas from KG basin, off the east coast. But the stock came off the day's high of Rs 1,519.90. The company is reportedly expected to start natural gas production from its Krishna Godavari (KG) basin field in early April 2009.

RIL's advance tax payment fell 16.47% to Rs 370 crore in Q4 March 2009 over Q4 March 2008.

GAIL India surged 3.57% on reports the company plans to invest Rs 1,000 crore in setting up 2,000 compressed natural gas dispensing stations on major national highways in the next three years.

Cairn India rose 3.69% on reports the firm is likely to pump out crude oil from its Barmer field in Rajasthan in a month.

Shares of oil marketing companies rose for the second straight day in a row after the government issued oil bonds worth Rs 10,000 crore to compensate them for under-recoveries on sale of petroleum products at a controlled price during the current financial year. BPCL and HPCL rose by between 0.01% and 0.59% respectively.

Indian Oil Corporation rose 0.59% after company said the government has approved a proposal to absorb its subsidiary Bongaigaon Refinery & Petrochemicals (BRPL). Indian Oil will issue four shares for every 37 shares in BRPL. BRPL rose 1.83%.

Indian Oil Corporation has been issued oil bonds worth Rs 5,817.27 crore, while Bharat Petroleum Corporation has been issued bonds worth Rs 2,144.32 crore. Hindustan Petroleum Corporation has got bonds worth Rs 2,038.41 crore.

India's largest commercial vehicle maker by sales Tata Motors fell 1.27% on profit taking after recent sharp gains. The world's cheapest car Tata Nano was unveiled in Mumbai by Tata Group Chairman Ratan Tata on Monday 23 March 2009. The Tata Nano was launched in three models - Base, CX and LX. The booking for Tata Nano will be held between 9 April 2009 and 25 April 2009. The first set of Tata Nano will be delivered in the first week of July 2009. Within 60 days of the closure of bookings, Tata Motors will process and announce the allotment of 1,00,000 cars in the first phase of deliveries, through a computerised random selection procedure.

India's largest car maker by sales Maruti Suzuki India fell 0.07%. As per reports, firm is working towards launching new cars and improvising the existing ones to counter attack Tata Motors' recently unveiled world's cheapest car Tata Nano. In a tussle to capture the Indian passenger car market, Maruti is likely to launch Maruti Splash or Ritz in the second week of May 2009. Ritz will mount a 1.2 litre (KB series) petrol or 1.3-litre diesel engine and will be priced at around Rs 4-5.5 lakh. India's largest tractor maker by sales Mahindra & Mahindra rose 1.55%. While India's largest motorbike maker by sales Hero Honda Motors rose 0.31%.

Some FMCG stocks rose on expectations of better Q4 March 2009 results following reports of higher advance tax payment by these firms. United Spirits, Tata Tea, ITC, United Breweries rose by between 1.26% to 6.11%. India's largest FMCG firm by sales Hindustan Unilever fell 1.88%. The company's advance tax payment rose 30% to Rs 130 crore in Q4 March 2009 over Q4 March 2008.

Outsourcing focussed IT stocks rose on hopes of a revival in the US economy, the biggest market for IT firms and on a weaker rupee. India's largest software services exporter by sales TCS rose 0.87%. The company's advance tax payment fell 54.3% to Rs 53 crore in Q4 March 2009 over Q4 March 2008.

India's fifth largest IT major by sales HCL Technologies fell 0.48%. India's third largest software services exporter, Wipro rose 0.04% even as its ADR fell 2.99% on Tuesday. Recently its unit Wipro Infotech won an outsourcing contract worth Rs 1,182 crore from the Employees State Insurance Corporation (ESIC).

India's second largest software services exporter Infosys Technologies rose 1.26% even as its ADR fell 4.92% on Tuesday. Recent reports said it may win a large IT project from the government, which will run on a transaction-based pricing model, similar to the passport processing contract its larger rival Tata Consultancy Services (TCS) won last year. The contract is among the many large IT contracts that are up for bidding from government departments or public sector undertakings, reports suggest.

The Indian rupee weakened for the second day on Wednesday, falling to its lowest in a week, weighed by gains in the dollar against the euro and Asian units and demand from importers and oil refiners. A weak rupee boosts revenues of IT firms in rupee terms as IT companies earn a lion's share of revenue from exports.

Rate sensitive real estate shares surged on hopes lower rates will spur housing demand. DLF, Indiabulls Real Estate, Housing Development & Infrastructure and Unitech rose by between 2.65% to 16.7%. Most of the realty deals including sale of commercial property and housing sales is driven by finance.

Metal shares rose on hopes of a recovery in the global economy and on recent imposition of a safeguard duty the Indian government recently on import of some aluminium products. Steel Authority of India, Sterlite Industries, Tata Steel and Hindalco Industries rose by between 0.5% to 6.48%.

Weak rupee also aided the recovery in metal shares. A slide in the rupee makes imports costlier, reducing the threat of cheap import of metals in India.

Banking stocks gained in volatile trade on hopes lower interest rates may boost lending growth. India's largest bank in terms of assets and branch network State Bank of India rose 1.49%. Its advance tax payment jumped 27.64% to Rs 1810 crore in Q4 March 2009 over Q4 March 2008.

India's largest private sector bank by net profit ICICI Bank rose 3% to Rs 365.75, off the day's low of Rs 347. Its American depository receipts (ADR) fell 3.09% on Tuesday 24 March 2009. ICICI Bank's advance tax payment remained unchanged at Rs 250 crore in Q4 March 2009 when compared to Q4 March 2008.

India's second largest private sector bank by operating income HDFC Bank rose 3.6%. Its ADR fell 5.85% on Tuesday. Its advance tax payment rose 10% to Rs 275 crore in Q4 March 2009 over Q4 March 2008.

India's biggest dedicated housing finance firm by operating income HDFC rose 2.1% after it announced a 50 basis points reduction in its retail prime lending rate (RPLR) to 14% effective Wednesday 25 March 2009.

Bond yields inched higher in early trade on Wednesday as investors pared positions ahead of the details of the government's borrowing plan for the first six months of the next fiscal year FY 2010. At 9:20 IST, the most traded 6.05% 2019 bond yield was at 6.76%, five basis points above Tuesday's close. It is up 24 points so far this week.

The government plans to borrow a record Rs 362000 crore in FY 2010 and a calendar for the first half will be finalised on Thursday, 26 March 2009. It may be recalled that a solid surge in bond prices (bond prices rise when yields fall) had boosted treasury profits of banks in Q3 December 2008.

India's largest engineering and construction firm by sales Larsen & Toubro (L&T) rose 2.54%. As per recent reports L&T and Grasim Industries are on the verge of settling their 7-year old legal dispute over Grasim`s 0.62% stake in L&T and the latter`s 11.49% stake in Ultratech, the Birla group cement firm. Grasim Industries and Ultratech Cement are Aditya Birla group companies. Other capital goods stocks Bharat Heavy Electricals, Punj Lloyd, Praj Industries, ABB rose by between 1.55% to 4.37%.

Unitech clocked the highest volume of 3.66 crore shares on BSE. Cals Refineries (2.62 crore shares), Crompton Greaves (1.27 crore shares), Reliance Natural Resources (1.14 crore shares) and Suzlon Energy (1.12 crore shares) were the other volume toppers in that order.

Reliance Industries clocked the highest turnover of Rs 445.36 crore on BSE. Akruti City (Rs 244.86 crore), ICICI Bank (Rs 203.19 crore), Reliance Capital (Rs 168.82 crore) and Reliance Infrastructure (Rs 152 crore) were the other turnover toppers in that order.