Market may extend gains on firm global equities

The market may extend last two days' gains on firm global equities and data showing resumption of buying by foreign funds. However, investors may refrain from building large positions as the stock market remains closed on Friday, 3 April 2009, for a public holiday.

Shares of small-car major Maruti Suzuki will be in focus ahead of the release of figures of March 2009 sales. Cement firms will also be in the spotlight in the next day or two as they release monthly dispatches figures. A likely fall in inflation to a near zero level will reinforce expectations of a further fall in the monetary policy by the Reserve Bank of India (RBI).

Traders and operators who had closed positions at the year-end will start building fresh positions from the beginning of the new financial year. Some traders who don't want to show positions on their balance sheet typically unwind positions before the year-end. The BSE Sensex rose nearly 2% on the first day of the new financial year FY 2010 on Wednesday 1 April 2009.

As per the provisional data foreign funds bought shares worth a net Rs 173.75 crore on Wednesday. The inflow followed heavy sales in the preceding three trading sessions. Foreign funds dumped stocks worth a net Rs 1266.70 crore in three trading sessions from 27 March 2009 to 31 March 2009. Before the selling, foreign institutional investors had mopped up stocks worth Rs 3635 crore in a short span from 17 March 2009 to 26 March 2009.

Inflation based on the wholesale price index (WPI) is expected to stay near zero level in the year through 21 March 2009. WPI inflation had hit a record low of 0.27% in the year through 14 March 2009. The government will release the inflation data around midday on Thursday, 2 April 2009.

Asian stocks surged on Thursday, led by automakers and banks, after US car sales beat estimates and US Treasury Secretary Timothy Geithner said global economies are showing traction amid widening stimulus efforts.

Trading in US futures showed the Dow could rise 99 points at the opening bell on Thursday, 2 April 2009.

Daily News Roundup - Apr 2 2009

Maruti is planning to phase out Maruti 800 and Omni models in 11 major cities. (BS)

Government has ordered special audit of books for Bharti Airtel, Vodafone, Idea Cellular and Tata Teleservices. (BS)

TCS, Wipro and Infosys along with multinational rivals are currently chasing an outsourcing contract worth US$100mn from Australia's Woolworths. (ET)

Reliance Industries has started gas production from its KG-D6 field. (BS)

A minor fire broke out in a section of Reliance Petro's Jamnagar refinery. (ET)

NTPC's capacity crosses 30,000MW after commissioning of a 250MW unit. (BS)

West Bengal has claimed that Tata Motors' Nano will be made in Singur. (BS)

ICICI Bank has repurchased bonds worth US$90mn. (BS)

Central Bureau of Investigation will probe the diversion of funds from Satyam Computers. (ET)

Cements makers such as ACC, Gujarat Ambuja Cements, Grasim and Ultratech Cement have hiked prices. (ET)

L&T has bagged Rs11bn worth of orders in Q4 FY09 from electrical construction sector. (BL)

Bajaj Hindusthan chairman is scaling up his group's equity holding in the company by nearly 5% through subscription of preferential warrants. (ET)

HCC bags order worth Rs6.9bn from Bhutan. (BS)

Suzlon's US subsidiary has bagged a repeat order from Duke Energy, US. (BS)

The Khorakiwala family, the promoters of Wockhardt has put its headquarters Wockhardt Towers up for sale. (ET)

HDIL is selling development rights for about 400,000sqft. (BS)

GMR may refinance its US$1.1bn loan taken to acquire InterGen in 2011. (BS)

GMR Infra plans to set up aircraft parts assembly plant in the country. (ET)

Hotel Leelaventure plans to invest US$500mn to set up five hotels across the country by 2012. (BS)

Over the next four-five years Bharti Shipyard and ABG Shipyard can claim subsidies to the tune of Rs17bn and Rs10bn respectively. (BL)

Shipping Corporation of India will place orders for 10 vessels in FY10. (FE)

Corporation Bank has reduced its PLR by 50bps to 12%. (BS)

RGPPL has proposed a per unit tariff of Rs4.44 for FY10. (FE)

For the month of February 2009, exports dipped by 21.7% yoy, while imports declined by 23.3% yoy. (BS)

Ministry of Corporate Affairs has accepted the recommendation to defer the implementation of AS-11. (BS)

First phase of bidding for blocks under NELP VIII will take place on April 9, 2009. (BS)

Wheat prices have crashed below the MSP following record output. (BL)

Government has imposed an anti-dumping duty on imports of polyester yarn from China, Vietnam and Thailand. (FE)

Finance ministry is in consultation with RBI to relax the provisioning norms for restructured loans. (ET)

The new regulations make it mandatory for insurance company to renew a health insurance policy irrespective of how much it has already paid out its claims. (ET)

Bulls look for quality gains!

Those who speak most of progress measure it by quantity and not by quality.

After staging a strong comeback in March, the bulls seem to be eyeing quantitative gains this month too. Fueling the pull-back rally are tentative signs of improvement in economic conditions, not just here but globally. However, the data is still pretty mixed. While ABN AMRO's PMI and auto sales are showing recovery in manufacturing, trade and BoP data are anything but inspiring. While wholesale inflation will soon turn sub-zero, consumer prices are still ruling high.

To make matters worse, policy-making has been hit by the model code of conduct. The election in itself could throw up some surprises. We will also have to grapple with earnings and possible negative surprises there too. Before that markets are looking at the G-20 summit for some encouraging words. Whether we get a unanimous plan to combat the global turmoil remains to be seen. In the meantime, RIL has kicked off gas supply from the KG basin. We expect the market to open firm and remain so given the strong global cues.

FIIs were net buyers in the cash segment on Wednesday at Rs1.74bn while the local institutions were net buyers at Rs116mn. In the F&O segment, the foreign funds were net buyers at Rs6.93bn. On Tuesday, the foreign funds were net sellers at Rs5.31bn in the cash segment.

US stocks jumped on Wednesday, as traders focused on positive economic reports on pending home sales and manufacturing while ignoring the weak auto sales and another grim labor-market survey for the private sector.

The Dow Jones Industrial Average rose 152.68 points, or 2.01%, to 7761.6. The Dow's second straight gain pared its losses for 2009 to 12% and brought it 19% above its closing nadir on March 9.

The broad Standard & Poor's 500 index gained 13.21 points, or 1.66%, to 811.08, and is now 20% above its March 9 close. The Nasdaq Composite index was up 23.01 points, or 1.51%, at 1551.6, paring its loss for the year to date to 1.6%.

Stocks had tumbled at the open on a worse-than-expected private sector jobs survey and reports that GM and Chrysler will have to go into bankruptcy to restructure. But the selling pressure eased as the day wore on.

Stocks gained in March at the end of the Dow's worst first quarter in 70 years. The blue-chip indicator gained 7.7% during the month, but fell 13.3% in the first quarter, its worst January-March showing since 1939.

The Dow and S&P 500 briefly touched more than 12-year lows in early March, before bouncing back on optimism that the world's largest economy is closer to stabilizing. But, the real test will come over the next few weeks as investors sort through the first-quarter results.

March auto sales fell 35%, but a rise from February levels could suggest the industry has bottomed. Ford Motor said sales fell 41% from a year ago, although they were up from January and February levels. Ford, considered to be in the best financial shape of the three Detroit automakers, had been expected to post a decline of 50%.

Toyota Motor said sales fell 39% and Honda Motor said sales fell 36%. General Motors (GM) said sales fell 45% in the month, while privately held Chrysler said sales fell 39%.

GM and Chrysler have managed to stay afloat due to billions in aid from the government, but are in danger of being forced into bankruptcy if they can't come up with a plan to stay viable.

The Obama administration rejected both companies' restructuring plans on Monday. GM has 60 days to figure out how to cut costs and debt. Chrysler has 30 days to complete a deal with Fiat. Barring that, the government could force both companies into bankruptcy court to restructure.

The pending home sales index rose 2.1% in February, surprising economists who were expecting a flat reading. Pending home sales fell 7.7% in January.

Private sector employers cut 742,000 jobs from their payrolls in March after cutting a revised 706,000 in February, according to a report from payroll services firm ADP. Economists had predicted a reduction of 663,000 jobs. The report is closely watched ahead of the monthly jobs report.

The Institute for Supply Management's manufacturing index rose to 36.3 in March from 35.8 in February, versus forecasts for a rise to 36.

February construction spending fell 0.9%, after dropping a revised 3.5% in January. Economists had forecast a fall of 1.9% in the month.

Diversified manufacturer 3M said that it was cutting 1,200 jobs worldwide in the first quarter, or 1.5% of its workforce. Shares of the Dow component rose nearly 2%.

Treasury prices rose, lowering the yield on the benchmark 10-year note to 2.65% from 2.66% on Tuesday.

Lending rates were mostly higher. The 3-month Libor rate dipped to 1.18% from 1.19% on Tuesday. The overnight Libor rate fell to 0.3% from 0.51% Tuesday. Libor is a bank-to-bank lending rate.

In currency trading, the dollar gained versus the euro and fell against the yen.

US light crude oil for May delivery settled down $1.27 to $48.39 a barrel on the New York Mercantile Exchange.

COMEX gold for June delivery rose $2.70 to settle at $927.70 an ounce.

Investors were gearing up for the start of the G-20 meeting in London, which brings together leaders from the world's largest economies. President Obama is expected to make the push for a bigger global economic stimulus effort.

He is also expected to detail the new financial regulations pitched to Congress last week as a means of preventing another financial meltdown like the current one.

The weekly jobless claims report and February factory orders index are also due on Thursday.

Europe stocks closed higher on Wednesday after a volatile day of trade. Down as much as 1.7% early in the day, the pan-European Dow Jones Stoxx 600 index finished with a rise of 1.6% to 179.26 as the highly-geared banking sector advanced.

The French CAC-40 index ended up 1.1% at 2,839.61. The German DAX 30 index rose 1.1% to 4,131.07 and the UK's FTSE 100 index added 0.8% to 3,955.61.

Indian markets extended gains for second straight trading session on Wednesday. After a sloppy start, key indices gained momentum as the day progressed. Even weak trade data was unable to dampen the sentiments on Dalal Street. Finally, the BSE Sensex advanced 193 points to close at 9,901 and the NSE Nifty was up 39 points at 3,060.

Among the 30-components of Sensex, 20 stocks ended in positive terrain and 10 stocks were in the red. Among the top gainers were Reliance Infrastructure, Ranbaxy, HDFC, DLF, ICICI Bank and Infosys.

The top losers in the Sensex were, Sun Pharma, Grasim, BHEL, Sterlite, Bharti Airtel and Hindustan Unilever.

Shares of BGR Energy have surged by over 10% to Rs156 after BGR Boilers Pvt Ltd a special vehicle unit and Foster Wheeler North America Corp., a subsidiary of Foster Wheeler's Global Power Group have entered into a license agreement to design manufacture and sell Sub-critical coal fired Steam Generators (Boilers).

The scrip has touched an intra-day high of Rs157 and a low of Rs141 and has recorded volumes of over 0.34mn shares on NSE.

Shares of Suzlon have surged by over 7% to Rs45.5 after the company's Australian subsidiary entered into contract with AGL Energy Ltd for supplying 132.3MW wind turbine capacity, stated reports.

The scrip has touched an intra-day high of Rs46.1 and a low of Rs42.4 and has recorded volumes of over 20.7mn shares on NSE.

Shares of Kalpataru Power erased gains and ended lower by 1% to Rs323 after the company announced that it won three projects for transmission lines worth Rs4bn. The scrip touched an intra-day high of Rs339 and a low of Rs322 and has recorded volumes of over 15,000 shares on BSE.

Shares of Ranbaxy rallied by over 7% to Rs178 after the company announced that it is all set to launch a drug for high blood pressure discovered by Daiichi. The scrip touched an intra-day high of

Gold ends little higher

Recessionary thoughts increases appeal of yellow metal

Bullion metal prices ended little higher on Wednesday, 01 April, 2009. Recessionary constraints increased the appeal of the precious metal. The weak dollar was also the main reason for precious metals ending higher.

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 $3.5 (0.4%) to close at $926.1 an ounce on the New York Mercantile Exchange. Last week, gold ended lower by 3.5%. Year to date, gold prices are higher by 12.4%.

For the month of March, gold fell 2.1%, down for the first month in five. But the metal gained 4.3% in the first quarter. Before March, for the month of February, gold ended higher by 7.4%. For January, 2009, gold had gained 3.9%.

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 fell marginally by 1 cent to end at $12.975an ounce. In February, 2009, silver had rose 4.3% after climbing 14% in January. Year to date, silver has climbed 19.6% this year. For 2008, silver had lost 24%.

The ADP employment report said on Wednesday, 01 April, 2009 that The U.S. labor market worsened again in March, as private-sector firms cut 742,000 jobs. It was the largest job loss recorded by ADP in its nine-year history.

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 June delivery closed higher by Rs 24 (0.16%) at Rs 15,088 per 10 grams. Prices rose to a high of Rs 15,195 per 10 grams and fell to a low of Rs 14,986 per 10 grams during the day's trading.

At the MCX, silver prices for May delivery closed Rs 120 (0.54%) lower at Rs 21,735/Kg. Prices opened at Rs 21,800/kg and fell to a low of Rs 21,581/Kg during the day's trading.

Crude goes down

Oil prices fall as crude inventories build up

Oil prices fell on Wednesday, 01 April, 2009 after energy department reported build up in crude inventories last week.

On Wednesday, crude-oil futures for light sweet crude for May delivery closed at $48.39/barrel (lower by $1.27 or 2.6%) on the New York Mercantile Exchange. Last week, crude ended higher by 0.6%.

Crude ended March trading up 10.9%. It rallied 11.3% in the first quarter. 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 63% since then. Year to date, in 2009, crude prices are higher by 11.6%. On a yearly basis, crude prices are lower by 52%.

As per the report, crude inventories rose 2.8 million barrels, staying at the highest level since July 1993. Crude inventories, the delivery point for Nymex oil futures, fell 800,000 barrels to 30.9 million barrels.

The report also said that gasoline inventories increased 2.2 million barrels in the week ended 27 March, 2009. The EIA also reported an increase of 300,000 barrels in distillate stockpiles, which include diesel and heating oil.

EIA also reported that total demand for petroleum demand over the last four-week period averaged 18.9 million barrels a day, down by 4.4% compared to the similar period last year. Among them, motor gasoline demand averaged 9 million barrels a day, down by 0.2% from a year ago, while distillate fuel demand slumped by 9.1%. U.S. refineries operated at 81.7% of their operable capacity last week, down from the 82% a week ago,

Also at the Nymex on Wednesday, May reformulated gasoline fell 4.96 cents, or 3.5%, to $1.3717 a gallon and May heating oil dropped 2.21 cents, or 6%, to $1.3458 a gallon.

May natural gas also lost 8.1 cents, or 2.1%, to $3.695 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 2,426/barrel, lower by Rs 55 (2.2%) against previous day's close. Natural gas for April delivery closed at Rs 189/mmbtu, lower by Rs 1.9/mmbtu (0.99%).

Bartronics

We recommend a buy on Bartronics India from a short-term trading horizon. It is apparent from the charts of Bartronics that it was a medium-term downtrend as it declined from Rs 100 to Rs 61 between early January and early March. However, it found support in the long-term support band between Rs 55 and Rs 60. Since early March, the stock has been on a medium-term uptrend. On March 31, the stock conclusively penetrated its medium-term down trendline as well as the 50-day moving average by surging 7 per cent. This bullish momentum prolonged and the stock gained more than 9 per cent on April 1. We observe that there is an increase in volume over the past three trading sessions. The daily relative strength index (RSI) is featuring in the bullish zone and the weekly RSI has entered the neutral region. Moreover, the moving average convergence and divergence has entering the positive territory. We are bullish on the stock from a short-term trading perspective. We anticipate it to rally until it hits our price target of Rs 96. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 81

via BL

Turnover surges

RIL April 2009 futures at premium

Nifty April 2009 futures were at 3067.10, at a premium of 6.75 points as compared to the spot closing of 3060.35. Turnover in NSE's futures & options (F&O) segment surged to Rs 52,145.14 crore from Rs 48,987.44 crore on Tuesday, 31 March 2009.

Reliance Industries (RIL) April 2009 futures were at premium at 1586.75 compared to the spot closing of 1581.25.

ICICI Bank April 2009 futures were near spot price at 349.50 compared to the spot closing of 349.35.

State Bank of India April 2009 futures were at discount at 1071 compared to the spot closing of 1077.45.

In the cash market, the S&P CNX Nifty gained 39.40 points or 1.30% at 3060.35.

Asian markets enters April with advance

Nikkei joins Shanghai, Sensex as gainer of the day while Sydney, New Zealand plummet deeper into the negative zone

Stock market in Asian region closed mostly higher on Wednesday, 1 April 2009, as auto related stocks advanced on speculation that US President Obama believes a quick, negotiated bankruptcy is the most possible way for GM to restructure. Meanwhile, Obama is also prepared to let Chrysler go bankrupt if it fails to form an alliance with Fiat SpA. Expectations from the G20 meeting and worries over deteriorating economic conditions weighed in Australian and Hong Kong markets dragged them into red.

On Wall Street, after two sessions of extensive sell-off, US stocks rallied yesterday, registering the first monthly gain since August 2008. After starting the day 51 points up earlier during the day, The Dow Jones Industrial Average ended higher by 87 points at 7,608. The Nasdaq Composite Index, ended higher by 27 points at 1,528. S&P 500 ended higher by 10 points at 797. For the month just ended, the Dow rose 7.7%, the S&P added 8.5%, and the Nasdaq gained 10.9%. For the year, they are still off by 13.3%, 11.7%, and 3.1%, respectively.

In the commodity market, crude oil fell below $49 a barrel, after capping its biggest monthly gain since May, on speculation that a government report today will show U.S. inventories rose from the highest level in more than 15 years as fuel demand slows.

Crude oil for May delivery fell as much as $1.38, or 2.8%, to $48.28 a barrel in electronic trading on the New York Mercantile Exchange. It was at $48.43 a barrel at 11:09 a.m. London time. Crude oil rose $1.25, or 2.6%, to $49.66 a barrel yesterday as equities gained and a weaker dollar enhanced the appeal of commodities. Crude gained 11% in the first quarter after tumbling 56% in the previous three months.

Brent crude oil for May settlement fell as much as $1.32, or 2.7%, to $47.91 a barrel on London's ICE Futures Europe exchange. It was at $48.22 a barrel at 11:09 a.m. London time.

Gold gained for a second day on investors' expectations that the dollar will weaken further and leaders gathering this week for Group of 20 meetings may not be able to pull the global economy out of recession.

Gold for immediate delivery gave up its yesterday's gains as it was trading lower by NT$ 3.30 or 0.36% at $921.70 an ounce at 11:09 a.m. in London. The metal rose 4.2% in the quarter ended yesterday, the largest gain since the three months ended 31 March 2008.

In the currency market, after brief retreat, the greenback has regained momentum on talk of bankruptcy of GM and Chrysler.

The Japanese yen was quoted at 99.01 against the US dollar, depreciated from Tuesday's quote of 97.96 yen.

The Hong Kong dollar was trading at HK$ 7.7502 against the dollar. Actually The Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.

In Sydney trades, the Australian dollar closed higher despite selling off during the local trading session. At the local close, the dollar was trading at $US0.6877, up from Tuesday's close of $US0.6854. The Australian dollar traded above $US0.6900 during offshore trading on Tuesday, supported by a positive finish on US equity markets and some US dollar selling.

In Wellington trades, the New Zealand dollar wobbled against the United States dollar on car news today, but dropped more than a cent against the Uncle Sam when it couldn't avoid an unexpected Bollard. It was worth US55.74 cent at the closing today, more than a cent down from US56.82 cents at the closing yesterday. The real impact was Reserve Bank governor Alan Bollard's unusual move of commenting on his concern at recent rises in long-term wholesale interest rates.

The South Korean currency won finished at 1,379.5 won against the U.S. dollar, up 4 won from Tuesday's close, extending the gains for the second day.

The Taiwan dollar strengthened against the US dollar as it closed trading at NT$ 33.8350, up by NT$ 0.0820 from Tuesday's close of NT$33.917.

Coming back in equities, in Japan, stock market finished the session sharply higher, with broad based gains across the board, bloated by a government plan to support equities overshadowed weak confidence among manufacturers. Automakers and financials led the market as weakening yen against major currencies and speculation of Japanese automakers market share will expand if U.S. automakers go bankrupt.

The Nikkei 225 Stock Average index spurted 242.38 points, or 3%, to 8,351.91, while the broader Topix was 20.16 points, or 2.6%, lower to 794.

On the economic front, the Bank of Japan's closely monitored Tankan survey data showing that the confidence amongst Japan's business leaders continued its precipitous descent in the first quarter of 2009, with most of the major indicators below forecast.

The large manufacturer's index fell to -58 in 2009's first quarter, compared to the prior reading of –24 in quarter four. Meanwhile, the outlook amongst large manufacturers dropped sharply as well at –51, it was far below the previous quarter's -36 reading.

The non-manufacturing index fell to -31 from the previous reading of -9 in quarter four. The outlook amongst non-manufacturing firms fell to -30 from a previous reading of -14.

The Tankan all-industries capex index, which measures capital expenditures by all Japanese industries apart from the financial sector, showed large manufacturers and non-manufacturers plan to decrease business investment by 6.6%.

The Natural Resources and Energy Agency said in a preliminary report that Japan's crude oil imports in February fell 3.3% from a year earlier to 122.97 million barrels. Imports from the Middle East accounted for 89.3% of the total, up 2.6%age points from a year before for the fourth straight monthly expansion.

The results of the Tankan come a day after the Japanese prime minister instructed the government to draw up a third economic stimulus package, as financial data released on Tuesday indicated that the country is plunging into its worst recession in more than 50 years.

The Japan Mini Vehicle Association said Japanese sales of mini vehicles in March fell 13.8% from a year earlier to 223,035 units.

In Mainland China, the stock index finished the session higher, extending gains for second day in row, as investors' enthusiasm for bargains hunting in recently battered shares on optimism the nation's stimulus spending will help boost growth and an plenty supply of funds for short-term speculation in shares. The benchmark Shanghai Composite Index, which covers both A shares and B shares on the Shanghai Stock Exchange, climbed up 34.80 points, or 1.5%, to 2,408.01. The Shenzhen Component Index on the smaller Shenzhen Stock Exchange put on 174.06 points, or 1.94%, to 9,156.01.

On the economic front, the CLSA China Purchasing Managers Index dropped to a seasonally adjusted 44.8 in March 2009 as compared 45.1 in February as collapsing global trade cut exports and growth across Asia.

The manufacturing index increased for a fourth month from a record low of 40.9 in November. An index of export orders rose to 41.4 in March from 39.5 in February. A measure of orders climbed to 43.6 from 44.2. Output gained to 44.3 from 43.9. An employment index rose to 47.1 from 46.6

In Hong Kong, the stock market finished the session somewhat lower, erasing positive opening as investors locked gains after Beijing economic data showed mixed signals in the China's recovery and on a media report that President Barack Obama had determined a prepackaged bankruptcy was the best option for U.S. automakers General Motors and Chrysler.

The Hang Seng Index tumbled 56.48 points, or 0.42%, to 13,519.54, while the Hang Seng China Enterprise Index, which tracks H shares of Chinese companies, recovered 7.55 points, or 0.09% to 8,077.68.

In Australia, the stock market finished the session slightly lower after fluctuating in and out of the red, as losses in telecom, industrials, and retailers overshadowed gains in banks and property trusts on hopes an interest rate cut could boost their lending businesses and firmer energy and resources stocks on the back of gains in the commodity prices. The benchmark S&P/ASX200 index ending down less than 0.1%, or 2.4 points, at 3579.7, while the broader All Ordinaries index was off 0.1%, or 5.1 points, at 3527.2.

On the economic front, the Australian Bureau of Statistics said in a report that Australian retail trade at current prices fell 2% in February to a seasonally adjusted A$18.873 billion, from A$19.257 billion in January.

The ABS also said Australian residential housing approvals were up 7.8% on month in February at 10,050, but down 25.5% on year.

In New Zealand, the stock market commenced the new financial year in the negative territory amid the global slowdown. The share market started the day in the green patch following Reserve Bank Governor Alan Bollard's unusual step of issuing a statement expressing his concern at a recent rise in long-term wholesale interest rates. The benchmark NZX50 fell 0.82% or 21.152 points to close at 2569.24. However, the NZX 15 decreased 0.49% or 23.665 points to 4769.013.

On the economic front, according to the Westpac McDermott Miller employment confidence index, employment confidence has fallen to a historic low as gloom continues to stalk the job market. The index fell to 93.2 in the March 2009 quarter, the first time the confidence index has hit a sub-100 level since the survey began in 2004.

In South Korea, stocks closed higher, as investors scooped up carmakers and banks on hopes of an economic recovery. The benchmark Korea Composite Stock Price Index (KOSPI) rose 27.1 points to 1,233.36.

On the economic front, South Korea's consumer prices grew at a slower pace in March than in the previous month as the cost of oil products declined. According to the report by the National Statistical Office, the consumer price index rose 3.9% last month from a year earlier, slowing from a 4.1% on-year advance in the previous month. From February, consumer prices gained 0.7%.

In other economic news, South Korea's trade surplus reached a record US$4.6 billion in March mainly due to a sharp drop in imports and a surge in exports of ships. According to the Ministry of Knowledge Economy, the country's exports reached $28.3 billion last month, falling 21.2% on-year, with imports plummeting 36% to $23.7 billion.

On the other hand, South Korean automakers reported an 18.7% drop in sales for March as the global economic crisis wilted demand for their vehicles.

In Taiwan, stock market in Taiwan regained its upward momentum, led by financial and technology sector stocks supported by the gains in the DRAM makers stocks. The domestic bourses followed the regional upswing, which followed the overnight gains on Wall Street where market put up their first monthly advance in eight months. The main Taiex share index consolidated itself on the road of recovery by ending the day on a crisply higher side. Taiex added 103.61 points or 1.99%, closing the day at 5314.45.

On the economic front, Taiwan's economic indicator showed the sixth consecutive blue in February, with the composite scores advancing one point to 10. According to the Council for Economic Planning and Development (CEPD), the rise in the composite scores was mainly due to the better performing M1B money supply, gaining one more point during the month to turn its indicator from blue to yellow-blue. The indicator in February actually reflects the economic outlook in March, so the economic climate in March seemed a little better than that in February.

In Philippines, murky economic outlook continued to keep the Philippines equities under check today, with benchmark indices closing nearly 1% lower. Philippines 2009 growth forecast has been scaled down in the latest Asian Development outlook released yesterday, citing a global downturn that brings with it reduced demand for exports, job losses, erosion in domestic consumption, and fewer investments. The benchmark index PSEi plummeted 0.95% or 18.94 points to 1,967.28, while the All Shares index fell 0.69% or 8.92 points to 1,274.98.

Philippine economy is expected to expand by just 2.5% this year, down from an earlier forecast of 3.5% and sharp drop from 2008's actual gain on 4.6%. The outlook was in line with the ADB's expectation of a marked slowdown in Southeast Asian growth, which it projects to dwindle to just 0.7% this year from 4.3% in 2008.

In India, key benchmark indices extended gains in late trade led by rally in realty, banking and IT stocks. The BSE 30-share Sensex closed up 193.49 points, or 1.99%, to 9,901.99. The S&P CNX Nifty was up 39.40 points or 1.30% to 3,060.35.

On the economic front, India's fiscal deficit for the April-February 2009 period was Rs 3,07,000 crore ($61 billion), or 94.1% of an upwardly revised budget target, a government statement said on Tuesday. In February 2009, the government revised upwards its fiscal deficit estimate for the year ending 31 March 2009 to Rs 3, 27, 000 crore, equivalent to 6% of gross domestic product from 2.5% estimated earlier. The deficit has widened after the government announced extra spending of close to Rs 1,50,000 to cover a farm debt scheme, subsidies and steps to stimulate a slowing economy.

Elsewhere, Malaysia's Kula Lumpur Composite index was up 1.33% or 11.63 points to 884.18, while Indonesia's Jakarta composite increased by 27.67 points or 1.93% to 1,461.75. In Thailand, the Thai Stock exchange fell 1.41 points to 430.09.

In other regional market, European shares sagged on Wednesday, with oil majors leading markets lower on the first day of the second quarter. On the regional level, the U.K. FTSE 100 index fell 0.8% to 3,893.60, the German DAX 30 index lost 1.2% to 4,036.06 and the French CAC-40 index slid 1.5% to 2,766.87

Realty and IT push market

Taking lead from overseas stock markets, the 30-stock index of BSE, Sensex, in lack of clear signals gyrated around 150 points in early trades.

However, frenzied selling pressure caused it dip below 9600-mark to touch an intra-day low of 9546. Though the market erased most of its loss by noon trades, the pull-back from lower levels came toward the close, after a fresh bout of buying in several frontline stocks saw Sensex touch an intra-day high of 9922. Sensex ended the session 193 points up at 9902, while Nifty moved up by 39 points to 3060.

Market breadth was positive however. Of the 2,463 stocks traded on the BSE 1,823 stocks advanced, whereas 558 stocks declined. Eighty two stocks ended unchanged. Of the 13 sectoral indices on BSE, only three (BSE FMCG, BSE HC and BSE CG) ended lower. Wiping its losses, BSE Realty moved up 5.41% topping the list, while BSE IT, occupying the second slot, was up by nearly 3.17%.

Several Sensex stocks registered decent gains. Ranbaxy Laboratories flared up 7.73% at Rs178.40, HDFC jumped by 6.70% at Rs1505.80 and Reliance Infrastructure gained 6.64% at Rs549.55. DLF, ICICI Bank, Infosys Technologies, Tata Power and Reliance Industries were up by more than 3% each. Among laggards, Sun Pharmaceutical Industries moved down by 4.23% at Rs1065.30, Bharat Heavy Electricals Ltd lost 2.15% at Rs1,472.05 and Grasim Industries declined 2.15% at Rs141.30. Bharti Airtel, Sterlite Industries, National Thermal Power Corporation, Hindustan Unilever and ITC were down by 1% each.

Unitech attracted volumes of over 1.75 crore shares on BSE followed by Suzlon Energy (1.66 crore shares), Reliance Natural Resources (1.26 crore shares) and Cals Refineries (1.03 crore shares).

Market may edge higher; upside capped

The market may edge higher on the first trading session of the new financial year FY 2010, tracking gains in Asian stocks
. But heavy selling by foreign funds after huge purchases in the past few days, lower US index futures and political uncertainty ahead of parliamentary elections may cap the upside. Traders and operators who had closed positions at the year-end may start building fresh positions from the beginning of the new financial year. Some traders who don't want to show positions on their balance sheet typically unwind positions before the year-end.

Auto and cement shares will in the spotlight in the next 2-3 days as firms release sales/dispatches figures for March 2009.

There will be absence of support from mutual funds. Mutual funds had supported the market last month to prop-up their net assets value for the year ended 31 March 2009 (FY 2009) which ended on Tuesday. Domestic institutional investors which includes mutual funds and insurance firms had mopped up stocks worth a massive Rs 1039.07 crore on Tuesday, 31 March 2009, as per the provisional data released by the stock exchanges. Mutual funds bought shares worth a net Rs 849.90 crore in the month of March 2009, till 30 March 2009.

As per the provisional data released by the stock exchanges, foreign funds sold shares worth a net Rs 583.65 crore on Tuesday, 31 March 2009. Foreign funds dumped stocks worth a net Rs 735.30 crore in two trading sessions from 27 March 2009 to 30 March 2009. Before the selling, foreign institutional investors had mopped up stocks worth Rs 3635 crore in a short span from 17 March 2009 to 26 March 2009.

Asian stocks were in green on Wednesday, 1 April 2009. Key benchmark indices in Hong Kong, Japan, China, South Korea, Singapore, Indonesia and Taiwan were up by between 0.14% to 2.1%. Markets were also looking ahead to the G20 leaders' summit in London on Thursday, 2 April 2009, even though expectations were low for any concrete new steps to support global growth.

But trading in US index futures showed, the Dow could fall 75 points at the opening bell on Wednesday, 1 April 2009, on continued concerns about the fate of large US automakers General Motors and Chrysler.

Indian bonds and currency markets are shut on Wednesday as banks
close their accounts for the financial year that ended on Tuesday.

Daily News Roundup - Apr 1 2009

Wockhardt announced major organizational changes and admitted that it was facing problems in servicing its debts. (ET)

Talks between Sun Pharma and Taro fail over price for the latter's promoter holding. (ET)

Mindtree is eyeing strategic buyouts in package application in mechanical engineering service areas. (BL)

Sahara India takes Jet Airways to high court claiming the airline defaulted in its payment commitments. (BL)

TRAI dismiss COAI petition to allow RCOM to offer services using both GSM and CDMA technologies. (BL)

Kalpataru Power bags three projects for transmission lines worth Rs4bn. (BL)

Aurobindo Pharma gets US FDA approval for anti-AIDS combination drug. (BL)

Ranbaxy is all set to launch a drug for high blood pressure discovered by Daiichi. (BL)

Micro Technologies is close to sign a MoU with Japan Homeland Security Corporation. (BL)

GAIL-HPCL out bids Reliance for the city gas projects. (BL)

Suzlon Energy's Australian subsidiary enters into contract with AGL Energy Ltd for supplying 132.3MW wind turbine capacity. (BL)

Canara Bank cuts BPLR by 50bps to 12%. (FE)

HPCL's Vizag refinery and Mangalore refinery of ONGC have been named as buyers of the initial crude oil from Cairn India's Rajasthan block. (ET)

SAIL likely to produce 12mt steel in FY10. (ET)

PNB reduces interest rate on retail term deposit below three years by 50-100 bps. (BS)

Zydus Cadila receives nod from US FDA for its anti-epileptic drug, Topiramate. (BS)

Godrej looking at acquiring companies in the household and haircare segments in developing economies. (BS)

Suzlon has entered into an agreement with AGL Energy for a 132mw project. (BS)

Vijaya Bank cuts BPLR by 50bps to 12.25%. (FE)

India recorded capital account deficit Q3 FY09, first time in over a decade. (BS)

Fiscal deficit reaches 94%of the annual revised target of 6% for FY09 in the first 11 months. (ET)

ADB predicts 5% growth for Indian economy in FY10 sharply below its earlier estimate of 7%. (BS)

Telecom tribunal TDSAT upheld Government's decision to allow CDMA players to launch GSM services. (ET)

Cement price to rise Rs3-8 per 50kg bag in major consumption markets such as Maharashtra and Gujarat. (BS)

Government mulls anti-dumping duty on steel to protect domestic steel companies. (BS)

TRAI rejects DOT views on imposing entry fee on internet service providers. (BL)

The ministry for commerce and industry has recommended special duty on imported CR stainless steel. (ET)

Oil companies hike ATF prices by 10%. (ET)

Consumer price inflation for industrial workers remained at 9.6% in February 2009 against 10.45% in the previous month. (ET)

Indian companies borrowed US$452mn in February 2009. (ET)

RBI has decided to extend the special refinance facility available to NBFCs by three months till June 2009. (BS)

Economic slowdown to hurt the retail sector for another 12-18 months, as per KPMG. (ET)

RBI wants to regulate NBFC holding companies. (BS)

As is, where is basis

Our lives improve only when we take chances - and the first and most difficult risk we can take is to be honest with ourselves.

But, taking chances now may not be too prudent a move, as the market can always make a fool out of you. So, take the world as it is and not as it ought to be. Take for instance the rising threat of terrorism, what with Taliban threatening to attack the US.

Coming to the market, the key indices have logged slim gains in the January-March quarter. This is the first such instance in over a year. However, the real test for the bulls will come this month, as we approach elections and earnings. There is also considerable anxiety over the health of the US banks and its fallout worldwide. One thing is sure that the re-balancing process will take time.

Today, we expect the market to maintain the current momentum. But, one should not be surprised if there is some cooling from higher levels.

Meanwhile, the circuit filter for the April-June quarter is at 950 points for Sensex. We can always expect it on the downside but can't hope for it on the upside.

FIIs were net sellers in the cash segment on Tuesday at Rs5.84bn while the local institutions poured Rs10.39bn. In the F&O segment, the foreign funds were net sellers at Rs11.1bn.

US stocks climbed on Tuesday, ending March on a very upbeat note with the key stock benchmarks posting their best monthly gains in more than six years and one of the top 20 months since 1950.

Tuesday's rally gave the Dow Jones Industrial Average its first monthly gains after six straight months of declines. But all three major indices declined in the January-March quarter.

The Dow rose 87 points, or 1.2%, to 7,608.92. The S&P 500 index gained 10 points, or 1.3%, at 797.87. The Nasdaq Composite index advanced 27 points, or 1.8%, to 1,528.59.

All the three major indices had posted bigger gains through the late afternoon, but the advance lost some steam near the close.

US stocks had fallen in the previous two sessions on worries about the auto and bank sectors. Prior to that, stocks had gained more than 20%, with the Dow and S&P 500 bouncing off 12-year lows hit early in March. Thoee gains were sparked by optimism that the economy is closer to stabilizing.

Up until the last few minutes of trade, the Dow had been on track to see its best March since 1928. But some late selling left the blue-chip indicator with a monthly gain of just 7.7% - the best since March 2002. The S&P 500 gained 8.5% in March, its best since March 2000. The Nasdaq is up 10.9%, its best March ever, going back to its inception in 1971.

Year-to-date, the Dow is down 13.3%, making the first quarter its worst since 1939. For the quarter and year-to-date, the S&P 500 is down 11.7% and the Nasdaq is off 3%.

Stock gains were broad-based, with 23 of 30 Dow stocks rising. Dow gainers included IBM, Chevron, McDonald's, 3M, Microsoft and Alcoa.

The Dow's financial components spiked too, continuing the recovery off multi-year lows. Bank of America, Citigroup and JPMorgan Chase all gained.

General Motors (GM) slumped 28%. On Monday, the Obama administration rejected turnaround plans from GM and Chrysler, saying that a bigger overhaul is needed if they want more taxpayer money. As part of the revamp, GM chief executive Rick Wagoner was asked to step down. Late on Monday, Obama appointed an auto czar to focus on the industry's woes.

The S&P/Case-Shiller Home Price index fell a record 19% in January from a year earlier, after falling a record 18.6% in December. The index is a measure of 20 major metropolitan areas.

The March consumer confidence index from the Conference Board rose to 26 from 25.3, missing forecasts for a rise to 28.

The Chicago PMI slipped to 31.4 in March from 34.2 in February, missing forecasts for a slight improvement to 34.3.

Treasury prices rose, lowering the yield on the benchmark 10-year note to 2.68% from 2.71% on Monday.

Lending rates were mostly higher. The 3-month Libor rate dipped to 1.19% from 1.21% on Monday. The overnight Libor rate rose to 0.51% from 0.29% Monday. Libor is a bank-to-bank lending rate.

In currency trading, the dollar fell versus the euro and gained against the yen.

US light crude oil for May delivery settled up $1.25 to $49.66 a barrel on the New York Mercantile Exchange.

COMEX gold for June delivery rose $7.30 to settle at $925 an ounce.

Wednesday morning brings reports on employment, manufacturing, housing, construction spending and oil inventories. March sales from the nation's automakers are due throughout the day.

The February pending home sales index is expected to show no change after having fallen 7.7% in the previous month.

Private-sector employers are expected to have cut 663,000 from their payrolls in March after cutting 697,000 jobs in February. The report from payroll services firm ADP is closely watched ahead of Friday's monthly employment report.

Bulls staged a strong come back on Tuesday on the back of firm cues from the Asian markets coupled with all round buying witnessed in scrips across the sectors. The rally was led by the interest rate sensitive stocks followed by the capital goods and the Pharma stocks.

Among the 30-share Sensex 25 stocks ended in the positive terrain and only 5 stocks ended in the red. JP Associates, Tata Steel, Ranbaxy, Tata Motors and Reliance Communication were among the top gainers.

On the other hand, HDFC, NTPC, ICICI Bank, Hindustan Unilever and ONGC were among the major losers.

Finally, the BSE benchmark Sensex surged by 140 points 9,708 and the NSE Nifty surged by over 40 points at 3,017.

Shares of Tata Power gained by a percent to Rs765 after reports stated that it announced the commencement of operations of its 250MW unit 8 of its Trombay Thermal Power Station. The scrip touched an intra-day high of Rs789 and an intra-day low of Rs755 recording volumes of over 0.12mn shares on BSE

Shares of Reliance Industries have edged higher by 0.5% to Rs1523 after reports stated that the company is close to signing KG gas sale agreements with over 6 power companies including Dhabol. Reports also stated that the company stopped production of crude at KG-D6 for 45 days to bring more wells into operation, thus raising output to peak of 40,000 barrels per day.

The scrip touched an intra-day high of Rs1552 and an intra-day low of Rs1514 recording volumes of over 1.6mn shares on BSE.

Shares of L&T have surged by over 3% to Rs672 after the company announced that it bagged a slew of large-value orders aggregating Rs 11bn in the electrical construction sector in the fourth quarter of 2008-09. The orders have come from PowerGrid Corporation of India Limited and the Rail Vikas Nigam Limited an involves setting up high end transmission lines and substations as well as a project for the Indian Railways.

Shares of DLF advanced by 1% to Rs167 after reports stated that the company may announced a relief package for its customers of its Gurgaon project, 'Express Greens', a few days after it announced a similar package for those who booked at its 'New Town Heights' residential project.

Reports also stated that the company has decided to divest its windmill power generation business. The scrip touched an intra-day high of Rs171 and an intra-day low of Rs160 recording volumes of over 4.6mn shares on BSE.

Shares of Reliance Infrastructure have advanced by 2.5% to Rs515 after the company announced that it is empanelled as the Information Technology Implementation Agency with Power Finance Corporation for implementing information technologies in State Electricity Boards.

After staging a strong come back on Tuesday, Indian markets would look to carry the momentum atleast in the opening trades , provided global cues give some way. However, volatility would be the order of the day.

Gold witnesses first monthly drop in five months

Yellow metal ends more than 4% for first quarter

Bullion metal prices ended higher on Tuesday, 31 March, 2009. The weak dollar was the main reason for precious metals ending higher.

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 Tuesday, Comex Gold for April delivery rose $7.1 (0.8%) to close at $922.6 an ounce on the New York Mercantile Exchange. Last week, gold ended lower by 3.5%. Year to date, gold prices are higher by 12%.

For the month of March, gold fell 2.1%, down for the first month in five. But the metal gained 4.3% in the first quarter. Before March, for the month of February, gold ended higher by 7.4%. For January, 2009, gold had gained 3.9%.

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

On Tuesday, Comex silver futures for May delivery fell 4.8 cents (0.4%) to end at $12.985an ounce. In February, 2009, silver had rose 4.3% after climbing 14% in January. Year to date, silver has climbed 19.6% this year. For 2008, silver had lost 24%.

In the currency market on Tuesday, the dollar moved lower against most major rivals. The U.S. Dollar Index, a six-currency gauge that includes the euro and yen, fell as much as 0.9%. The index has dropped 2.8% in March, 2009.

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 June delivery closed lower by Rs 57 (0.4%) at Rs 15,064 per 10 grams. Prices rose to a high of Rs 15,150 per 10 grams and fell to a low of Rs 14,935 per 10 grams during the day's trading.

At the MCX, silver prices for May delivery closed Rs 170 (0.8%) lower at Rs 21,855/Kg. Prices opened at Rs 22,110/kg and fell to a low of Rs 21,244/Kg during the day's trading.

Crude climbs up

Oil still stays below $50

Buoyed by a weak dollar, crude prices ended higher on Tuesday, 31 March, 2009. Prices also rose as US stocks rallied today fuelling some hopes that oil demand might not wane out in the coming months. But still after ending higher, prices closed below $50 for second straight day.

On Tuesday, crude-oil futures for light sweet crude for May delivery closed at $49.66/barrel (higher by $1.05 or 2.2%) on the New York Mercantile Exchange. Last week, crude ended higher by 0.6%.

Crude ended March trading up 10.9%. It rallied 11.3% in the first quarter. 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 63% since then. Year to date, in 2009, crude prices are higher by 12.2%. On a yearly basis, crude prices are lower by 52%.

In the currency market on Tuesday, the dollar moved lower against most major rivals. The U.S. Dollar Index, a six-currency gauge that includes the euro and yen, fell as much as 0.9%. The index has dropped 2.8% in March, 2009.

Also at the Nymex on Tuesday, May reformulated gasoline rose 1.5% to $1.40 a gallon and May heating oil gained slightly to $1.3438 a gallon.

May natural gas futures fell 17.1 cents, or 4.3%, to $3.776 per million British thermal units. Natural gas lost 10% in March and 33% in the first quarter.

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 2,481/barrel, lower by Rs 17 (0.7%) against previous day's close. Natural gas for April delivery closed at Rs 190.9/mmbtu, l

Sensex ends firm; J P Asso. soars 7.26%

The sensitive 30-share index, Sensex ended on a firm note as sustained buying interest was seen across board. Capital goods, healthcare, realty and auto stocks were on the upmove. It opened with a gain of 65.07 points, at 9,633.21 on Tuesday. After few minutes of trading into the positive, the index fell into the negative to bounce back into the positive. The Sensex proceeded to trade further on sustained buying, touching a day`s high of 9,826.22. Meanwhile, opening of European markets also supported the sentiment.

Secondline stocks also performed well. BSE Midcap and Smallcap index rose 2.27% and 1.46% respectively.

Amongst sectoral indices, BSE Capital goods surged over 3%, Healthcare, Realty, auto and Metal rose over 2% each.

European stocks gained as Marks & Spencer Group posted sales that beat analysts` estimates and commodity producers climbed. FTSE 100 gained 199.23 points, or 3.17%, to trade at 3,882.14, CAC 40 advanced 48.89 points, or 1.80%, to trade at 2,768.23 and DAX climbed 58.65 points, or 1.47%, to trade at 4,047.88 (4.28 p.m., IST)

The Sensex ended the day with a gain of 140.36 points, or 1.47% at 9,708.50 after touching a high of 9,826.22 and a low of 9,547.21. The broad-based NSE Nifty climbed 42.80 points, or 1.44% at 3,020.95 after hitting a high of 3,054.30 and a low of 2,966.40

Biggest gainers in the 30-share index were Jaiprakash Associates (7.26%), Tata Steel (5.02%), Tata Motors (4.64%), Reliance Capital (4.63%), Ranbaxy Laboratories (4.58%), and State Bank Of India(4.36%).

On the other hand, Housing Development Finance Corporation (2.71%), NTPC (1.80%), ICICI Bank (1.58%), Hindustan Unilever (0.50%), and Oil & Natural Gas Corporation (0.41%) were the biggest losers in the Sensex.

Overall market breadth was sharply positive. Out of the total 2,542 stocks traded at BSE, 1,551 advanced, 903 declined while 88 remained unchanged.

BSE Bulk Deals to Watch -March 31 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
31/3/2009 530499 A K CAPITAL FIRSTRAND PUBLIC LIMITED COMPANY S 40000 142.00
31/3/2009 523204 ABAN OFFSHO OPG SECURITIES P LTD B 321681 400.64
31/3/2009 523204 ABAN OFFSHO OPG SECURITIES P LTD S 321681 400.87
31/3/2009 532981 ANU LABS KAMAL KUMAR DUGAR AND CO B 61000 260.26
31/3/2009 532995 AVON CORP PANKAJ PRATAPSINH SARAIYA B 135000 5.02
31/3/2009 532719 BL KASHYAP RUANE CUNNIFF AND GOLDFARB INC SUB RUANE ACACIA PARTNERS LP B 150000 129.00
31/3/2009 532719 BL KASHYAP ARISAIG INDIA FUND LIMITED S 446650 129.00
31/3/2009 533026 CHEMCEL SANTOSH SHAHRA B 300000 6.41
31/3/2009 533026 CHEMCEL VIKSIT ENGINEERING LIMITED S 250630 6.50
31/3/2009 532608 DECCAN CHR MORGAN STANLEY AND CO INTERNATIONAL LIMITED PLC S 2375990 47.00
31/3/2009 532858 DECOLIGHT CE CLARUS FINANCE AND SECURITIES B 268159 6.50
31/3/2009 532858 DECOLIGHT CE DIAMANT INVESTMENT AND FINANCE S 268159 6.50
31/3/2009 532760 DEEP INDS ARCADIA SHARE AND STOCK BROKERS PVT LTD B 127516 40.24
31/3/2009 532760 DEEP INDS ARCADIA SHARE AND STOCK BROKERS PVT LTD S 110718 41.20
31/3/2009 508860 DIAMANT INV FANCY INVESTRADE PVT LTD S 10150 54.19
31/3/2009 532022 FILAT FASH VANNA TRADING COMPANY PVT LTD B 36950 69.10
31/3/2009 531137 GEMSTONE INV ANKIT RAJENDRA SANCHANIYA S 23007 22.50
31/3/2009 531137 GEMSTONE INV PREM MOHANLAL PARIKH S 23208 22.50
31/3/2009 500168 GOODYEA INDI MINAL B. PATEL B 345337 95.14
31/3/2009 514238 IKAB SECU IN ABHISHEK BAGRI B 153200 8.34
31/3/2009 514238 IKAB SECU IN MADHU JAJOO S 144300 8.34
31/3/2009 532612 INDOCO REM SPA HOLDINGS PRIVATE LIMITED B 240000 137.00
31/3/2009 532612 INDOCO REM NARSINH INVESTMENT AND FIN PVT LTD S 243364 137.06
31/3/2009 532717 INDOTECHTR RAJASHTAN GLOBAL SECURITIES LTD B 125000 299.99
31/3/2009 532717 INDOTECHTR BLACKSTONE ASIA ADVISORS L.L.C. AC THE INDIA FUND INC S 190628 300.01
31/3/2009 532187 INDUS IND BK GIRDHARILAL V. LAKHI B 2000000 32.65
31/3/2009 532187 INDUS IND BK ASHOK LEYLAND LTD. S 2000000 32.65
31/3/2009 505840 JAIPAN INDUS MADHUKAR B SANAS B 44369 35.08
31/3/2009 530955 KAILASH FICO ALPHA GRAPHIC INDIA LTD B 66899 27.60
31/3/2009 530955 KAILASH FICO VISTA FOOD PRODUCTS PVT LTD S 77814 27.60
31/3/2009 522298 MICRO FORGE ROOPKAMAL KAUR POONIAN B 41700 2.57
31/3/2009 522298 MICRO FORGE DEEPINDER SINGH POONIAN S 41700 2.57
31/3/2009 500370 SALORA INT AYUSH JIWARAJKA B 132598 27.70
31/3/2009 500370 SALORA INT TARUN JIWARAJKA B 114950 28.55
31/3/2009 500370 SALORA INT YES INVESTMENTS B 45949 28.26
31/3/2009 500370 SALORA INT ARPIT CHAURASIA S 107548 27.96
31/3/2009 500370 SALORA INT MAYANK CHAURASIA S 150000 27.60
31/3/2009 500370 SALORA INT DSP MERRILL LYNCH S 49950 27.86
31/3/2009 526981 SHRI BAJRANG CLARUS FINANCE AND SECURITIES B 240092 14.10
31/3/2009 526981 SHRI BAJRANG DIAMANT INVESTMENT AND FINANCE S 240092 14.10
31/3/2009 508976 SPANCO AVL INDIA LEASING B 685000 27.61
31/3/2009 508976 SPANCO INTELLINVOFININDIAPVTLTD S 685000 27.60
31/3/2009 523756 SREI INFRA ARISAIG PARTNERS ASIA PTE LTD S 610000 24.95
31/3/2009 590037 STEEL EXCH CLARUS FINANCE AND SECURITIES B 419236 13.43
31/3/2009 590037 STEEL EXCH DIAMANT INVESTMENT AND FINANCE S 419236 13.43
31/3/2009 513414 SUJANA METAL MORGAN STANLEY MAURITIUS COMPANY LIMITED B 461665 6.18
31/3/2009 513414 SUJANA METAL CITIGROUP GLOBAL MARKETS MAURITIUS PVT LTD S 461665 6.18
31/3/2009 532299 TEL EIGHTEEN T ROWE PRICE INT DISC FUN D B 804973 67.50
31/3/2009 532299 TEL EIGHTEEN T ROWE PRICE NEW ASIA FUN D B 1926292 67.50
31/3/2009 532299 TEL EIGHTEEN MORGAN STANELY INST FUND INC EMERGING MKT PORT MSEM S 634100 67.50
31/3/2009 532299 TEL EIGHTEEN MORGAN STANLEY INVESTMENT MGT INC AC MORGAN STANLEY MGMT EMPT S 718476 67.50
31/3/2009 519228 TEMPT.FOODS VENTURE BUSINESS ADVISORS PVT LTD B 435171 29.87
31/3/2009 519228 TEMPT.FOODS BEEJAYINVNFINCONPVTLTD S 131409 29.63
31/3/2009 531249 WELL PACK PA GANDHI MANISHA NAVNEETLAL B 35565 148.48
31/3/2009 531249 WELL PACK PA TUSHAR RAMESHBHAI PATEL B 29500 148.00
31/3/2009 531249 WELL PACK PA SAGARTEX CREATION B 75000 150.20
31/3/2009 531249 WELL PACK PA SHREE GOPAL BAJORIA S 25000 148.90
31/3/2009 531249 WELL PACK PA VISHESHSHAHRA S 149702 149.73

NSE Bulk Deals to Watch - March 31 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
31-MAR-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD,BUY,319648,392.79,-
31-MAR-2009,ABAN,Aban Offshore Ltd.,GENUINE STOCK BROKERS PVT LTD,BUY,206629,396.85,-
31-MAR-2009,ABAN,Aban Offshore Ltd.,P R B SECURITIES PRIVATE LTD,BUY,207227,392.88,-
31-MAR-2009,ANANTRAJ,Anant Raj Industries Limi,SUMMER BUILDERS PVT. LTD.,BUY,2420555,40.00,-
31-MAR-2009,BOMDYEING,Bombay Dyeing & Mfg Co.,SUNEET LAL,BUY,182630,164.87,-
31-MAR-2009,DUNCANSIND,Duncans Industries Ltd,ARYAVART OVERSEAS (P) LTD,BUY,500000,5.75,-
31-MAR-2009,DUNCANSIND,Duncans Industries Ltd,ISHWAR DAYAL KANSAL,BUY,500000,5.75,-
31-MAR-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD,BUY,104385,2084.61,-
31-MAR-2009,GMRINDS,GMR Industries Limited,PRIME INDIA INVESTMENT FUND LTD,BUY,200000,70.56,-
31-MAR-2009,INDUSINDBK,IndusInd Bank Ltd.,KII LTD.,BUY,3503337,31.91,-
31-MAR-2009,INDUSINDBK,IndusInd Bank Ltd.,MODERN GEARS PVT LTD.,BUY,2000000,32.10,-
31-MAR-2009,KOHINOOR,Kohinoor Foods Limited,KAPIL SINGHAL,BUY,150000,52.87,-
31-MAR-2009,PVP,PVP Ventures Limited,VINAY CHILAKAPATI,BUY,1403947,9.93,-
31-MAR-2009,SALORAINTL,Salora International Ltd.,AYUSH JIWARAJKA,BUY,83500,27.87,-
31-MAR-2009,SALORAINTL,Salora International Ltd.,TARUN JIWARAJKA,BUY,105050,27.52,-
31-MAR-2009,SASKEN,Sasken Commu Techno Ltd,ALTIUS SECURITIES TRAD. P.LTD.,BUY,220000,59.67,-
31-MAR-2009,SKUMARSYNF,S. Kumars Nationwide Ltd,ADROIT FINANCIAL SERVICES PVT LTD,BUY,1200049,23.53,-
31-MAR-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD,SELL,319648,393.01,-
31-MAR-2009,ABAN,Aban Offshore Ltd.,GENUINE STOCK BROKERS PVT LTD,SELL,206629,397.04,-
31-MAR-2009,ABAN,Aban Offshore Ltd.,P R B SECURITIES PRIVATE LTD,SELL,207227,393.12,-
31-MAR-2009,ANANTRAJ,Anant Raj Industries Limi,QUANTUM M LIMITED,SELL,4420555,40.00,-
31-MAR-2009,BOMDYEING,Bombay Dyeing & Mfg Co.,SUNEET LAL,SELL,193481,165.20,-
31-MAR-2009,BRANDHOUSE,Brandhouse Retails Limite,CITIGROUP GLOBAL MKTS MAURITIUS PVT LTD- SELL CODE,SELL,382831,15.54,-
31-MAR-2009,DUNCANSIND,Duncans Industries Ltd,INTELL INVOFIN INDIA PVT LTD,SELL,1000000,5.75,-
31-MAR-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD,SELL,104385,2085.88,-
31-MAR-2009,GMRINDS,GMR Industries Limited,SHRINE FINANCE & INVESTMENTS PVT LTD,SELL,195615,70.52,-
31-MAR-2009,ICSA,ICSA (India) Limited,SWISS FINANCE CORPORATION (MAURITIUS) LIMITED,SELL,250000,89.20,-
31-MAR-2009,INDUSINDBK,IndusInd Bank Ltd.,AMAS MAURITIUS LTD,SELL,3066065,32.00,-
31-MAR-2009,INDUSINDBK,IndusInd Bank Ltd.,ASHOK LEYLAND LIMITED,SELL,3025000,32.32,-
31-MAR-2009,IOLN,IOL Netcom Limited,INTELL INVOFIN INDIA PVT LTD,SELL,250000,36.40,-
31-MAR-2009,KOHINOOR,Kohinoor Foods Limited,OPUS PROPERTIES LIMITED,SELL,450000,52.86,-
31-MAR-2009,PVP,PVP Ventures Limited,INDIABULLS FINANCIALS SERVICES LTD,SELL,1403947,9.93,-
31-MAR-2009,SALORAINTL,Salora International Ltd.,AYUSH JIWARAJKA,SELL,10500,27.86,-
31-MAR-2009,SALORAINTL,Salora International Ltd.,DSP MERRILL LYNCH,SELL,73483,27.81,-
31-MAR-2009,SALORAINTL,Salora International Ltd.,MAYANK CHAURASIA,SELL,160000,27.75,-
31-MAR-2009,SASKEN,Sasken Commu Techno Ltd,CHANDRASEKAR CHANDRASEKAR SRIKANTH,SELL,219055,59.67,-
31-MAR-2009,SKUMARSYNF,S. Kumars Nationwide Ltd,ADROIT FINANCIAL SERVICES PVT LTD,SELL,1233846,23.36,-
31-MAR-2009,SREINTFIN,SREI Infrastructure Finan,ARISAIG PARTNERS - INDIA FUND,SELL,1536704,24.91,-

Post Session Commentary - March 31 2009

Domestic market closed on positive note following firm cues from the Asian markets along with positive European markets. Favorable US index futures also added to the sentiments. The market continued it's up move during the trading session on buying interest across the counters though; it had trimmed its gains amid volatility during early trading.

The Indian market belled the day on pleasant note after recovering smartly from last session's losses tracking gains in Asian stocks. However the US stock markets plunged due to concerns about the possible bankruptcy of General Motors and Chrysler after the White House rejected their turnaround plans. However, key stocks turned irregular, as investors were a little cautious on negative sentiments across US market. Further, benchmark indices managed to gain momentum and bounced back from day's low as buying emerged over the ground. Market continued to gain ground to end the day on positive note led by firm sentiments. From the sectoral front, all indices ended in green. Besides, Capital Goods, Pharma, Reality, Auto, Metal, Teck, IT, FMCG and Bank stocks witnessed most of the buying. Mid Cap and Small Cap stocks also followed the same trend.

Among the Sensex pack 25 stocks ended in green territory and 5 in red. The market breadth indicating the overall health of the market remained strong as 1551 stocks closed in green while 903 stocks closed in red and 88 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 140.36 points at 9,708.50 and NSE Nifty ended up by 42.80 points at 3,020.95. BSE Mid Caps and Small Caps closed with gains of 65.64 and 46.58 points at 2,956.23 and 3,246.63 respectively. The BSE Sensex touched intraday high of 9,826.22 and intraday low of 9,547.21.

Gainers from the BSE Sensex pack are JP Associates (7.26%), Tata Steel (5.02%), Tata Motors (4.64%), Ranbaxy Lab (4.58%), SBI (4.36%), RCom (4.02%), M&M Ltd (3.51%), Hindalco (3.39%), L&T Ltd (3.33%) and ITC Ltd (3.30%).

Losers from the BSE Sensex pack are HDFC (2.71%), NTPC Ltd (1.80%), ICICI Bank (1.58%), HUL (0.50%) and ONGC Ltd (0.41%).

On the global markets front the Asian markets which opened before the Indian market, ended mostly in green. However, Japan's Nikkei tumbled as investors preferred to offload shares on the last trading day of the fiscal year ahead of the Tankan Survey slated to be released tomorrow. Besides, South Korean data boosts economic recovery hope as industrial output rose 6.8% in February from January and consumer goods sales by 5.0%, each marking the biggest rise in more than a decade. Shanghai Composite, Hang Seng, Straits Times index and Seoul Composite ended higher by 15.17, 119.69, 26.85 and 8.8 points at 2,373.21, 13,576.02, 1,699.99 and 1,206.26 respectively. However, Nikkei 225, lost 126.55 point at 8,109.53.

European markets which opened after the Indian market are trading higher. In Frankfurt the DAX index is trading up by 38.09 points at 4,027.32 and in London FTSE 100 is trading higher by 85.07 points at 3,847.98.

The BSE Capital Goods stocks advanced by (3.29%) or 205.73 points to close at 6,466.03. Major gainers are Siemens Ltd (10.04%), Punj Lloyd (6.80%), Areva (6.14%), ABB Ltd (4.84%) and Crompton Geaves (4.50%).

The BSE Pharma ended up by (2.97%) or 81.56 points at 2,830.11. Gainers are Sunpha Adv (17.04%), Aurobindo Pharma (9.04%), Biocon Ltd (7.96%), Wockhardt Ltd (7.14%) and Piramal Health (7.05%).

The BSE Realty index gained (2.93%) or 44.41 points to close at 1,560.83 on hopes that lower rates will spur housing demand. Gainers are Indiabull real (8.07%), Pheonix Mill (5.62%), Penland Ltd (4.57%), Housing Dev (4.46%) and Mahindra Life (4.26%).

The BSE Auto index also ended higher by (2.44%) or 73.02 points at 3,061.67 on reports the government plans to extend higher depreciation benefit of 50% on commercial vehicles by three months till June 2009. MFR Ltd (6.87%), Apollo Tyre (6.44%), Tata Motors (4.64%), M&M Ltd (3.51%) and Cummins Ind (2.80%) ended in positive territory.

The BSE Metal index closed with increase of (2.43%) or 137.39 points at 5,795.07 after industrial copper increased on the London Metal Exchange. Scrips that gained are JSW Steel (8.54%), Jindal Saw (5.86%), Tata Steel (5.02%), Hindustan Zinc (4.74%) and Hindalco (3.39%).

The BSE Teck index surged (2.32%) or 41.96 points to close at 1,846.83. Main gainers are Financ Tech (6.09%), Aptech Ltd (5.71%), Rolta India (5.40%), Patni Computer (4.42%) and Mphasis Ltd (4.24%).

Ranbaxy Labs closed up by 4.58%. Ranbaxy Laboratories (Ranbaxy) and Daiichi Sankyo Company (Daiichi Sankyo) announced that Ranbaxy will launch Olvance (Olmesartan Medoxomil, antihypertensive), which was originally discovered by Daiichi Sankyo. This follows a licensing agreement between the two companies authorizing Ranbaxy to promote and market the drug in India.

L&T ended higher by 3.33%. The company has received an order worth Rs. 345 crore from the Nuclear Power Corporation of India Ltd (NPCIL) for manufacturing and supplying steam generators.

DLF Ltd gained 1%. The company has determined to deprive its windmill power generation business. According to the company it is a non-core business.

M&M Ltd surged 3.51% as the booking for the company''s newly launched vehicle, Xylo crossed the 12000 level since its launch on 13th January 2009.

Tata Power Company (TPC) went up by 0.17%. The company has commercialised the operation of 250-mega watt (MW) unit 8 of its Trombay Thermal Power Station (TTPS) in Chembur near Mumbai.

Bharat Electronics rose 2.84% after the company said it signed an agreement with Bharat Heavy Electricals to jointly set up a company for solar photo voltaic cell business.

Suzlon Energy advanced 2.54% on report that its overseas unit secured an order for supply of 63 wind turbine generators.

Jet Airways (India) slumped 1.74% after Sahara India moved to court alleging that Jet has partly defaulted in payment relating to the buyout of Sahara Airlines, now JetLite, in April 2007.

First quarterly gain for Sensex since Q4 December 2007

Key benchmark indices managed to clock decent gains in a volatile trade after a nearly 5% fall on the bourses on Monday 30 March 2009. Metal, capital goods and realty stocks rose. Banking, IT stocks and index heavyweights Reliance Industries and Larsen & Toubro came off the day's highs. The BSE 30-share Sensex rose 140.36 points, or 1.47%, up close to 160 points from the day's low but off about 120 points from the day's high.

The S&P CNX Nifty regained the psychological 3,000 level. It had fallen below that level yesterday after a steep slide in equities caused by a setback in global stocks. On Monday, 30 March 2009, stocks around the globe were slammed amid worries about the health of the US auto sector.

Volatility was immense. After opening on a firm note tracking gains in Asian stocks, the market slipped into the red in morning trade. The market recovered in volatile trade later. The market extended gains in afternoon trade tracking firm European markets which opened after Indian market. Volatility was high in mid-afternoon trade. After a sharp surge at about 14:53 IST, the market came sharply off the higher level.

European stocks rebounded on Tuesday from a sharp fall in the previous days as Marks & Spencer Group Plc posted sales that beat analysts' estimates and commodity producers climbed. Key benchmark indices in France, Germany and UK were up by between 1.4% to 2.96%.

Most of the Asian stocks edged up on Tuesday as some investors bet the most painful stretch of corporate earnings damage may be over and bought Asian technology shares. Key benchmark indices in Hong Kong, China, Taiwan, South Korea and Singapore rose by between 0.09% to 1.72%. But Japan's Nikkei stock average was down 1.54% on Tuesday, with trade thin as investors waited for details of a fresh stimulus plan for the economy due out later in the day.

Trading in US index futures showed the Dow could rise 66 points at the opening bell on Tuesday, 31 March 2009. The US markets fell sharply on Monday 30 March 2009 on concerns about potential bankruptcies in the auto sector and worries that some big banks will need a lot more bailout money. The Dow plunged 254.16 points, or 3.3%, to 7,522.02. The S&P 500 index was down 28.41 points, or 3.5%, to 787.53, and the Nasdaq composite index slipped 43.40 points, or 2.8%, to 1,501.80.

Closer home, 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. 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 during trading hours on Thursday, 26 March 2009 showed.

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 signs 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 22,423 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.

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.

Foreign funds have resumed selling after heavy purchases in the past few days. Foreign institutional investors (FIIs) sold shares worth a net Rs 464.60 crore on Monday, 30 March 2009. Foreign institutional investors (FIIs) sold shares worth a net Rs 270.70 crore on Friday, 27 March 2009, as against a huge inflow of Rs 1317.30 crore on Thursday, 26 March 2009.

The latest sharp fall in the rupee will result in a depreciation in the value of FIIs' equity portfolio to the extent of the fall in the rupee to the extent of the fall in the rupee. A sharp volatility in the rupee may also dissuade fresh buying by foreign funds. The Indian rupee declined sharply on Monday, 30 March 2009, weighed down by the dollar's strength against some currencies and weakness in regional stock markets. The rupee hit a record low beyond 52 per dollar early this month. It had bounced back later. It once again faltered later.

The rupee once again recovered today. The partially convertible rupee was at 50.65 per dollar, stronger than its previous close at 51.17/19. The rupee rose as a rise in Asian stock markets calmed concerns of capital outflows, while the dollar's weakness against some Asian units also helped.

Domestic institutional investors have been absorbing heavy selling by foreign funds witnessed in first two months of calendar year 2009. Mutual funds are likely give support to prices to prop-up year end net asset values (NAVs). Today is the last day of the financial year 2008-09 (FY 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 reportedly 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.

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 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.

Meanwhile, BJP president Rajnath Singh said in an interview to a news agency that the party will speed up foreign investment projects in the country if it wins the parliamentary elections in May 2009. The measure is part of the BJP's election manifesto to be unveiled this week.

Singh said the BJP would be more open to foreign investment than Congress, which was unable to pass major economic reforms and open the economy further up globally due to opposition from leftist allies. Singh said his party would also focus on agriculture, putting more money in the pockets of farmers. More than half of India's 1.1 billion population live in villages.

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 rose 140.36 points, or 1.47%, to 9,708.50. At the day's high of 9,826.22, the Sensex rose 258.08 points in late trade. At the day's low of 9,547.21, the Sensex fell 20.93 points in mid-morning trade.

The S&P CNX Nifty was up 42.80 points or 1.44% to 3,020.95. It hit a high of 3,054.30 and low of 2,966.40.

The BSE clocked a turnover of Rs 3,981 crore, higher than Rs 3,260.81 crore on Monday, 30 March 2009.

Nifty April 2009 futures were at 3016, at a discount of 4.95 points as compared to the spot closing of 3020.95. Turnover in NSE's futures & options (F&O) segment was Rs 48,987.44 crore, lower than Rs 50,238.21 crore on Monday, 30 March 2009.

In the quarter ended 31 March 2009, the Sensex rose 61.19 points or 0.63% from 9,647.31 on 31 December 2008. It was Sensex's first quarterly gain since the December 2007 quarter. In the financial year ended 31 March 2009, the Sensex plunged 5,935.94 points or 37.94% from 15,644.44 on 31 March 2008.

The BSE Mid-Cap index was up 2.27%. It outperformed the Sensex. The BSE Small-Cap index rose 1.46%. It underperformed the Sensex.

The BSE Capital Goods index (up 3.29%), the BSE Healthcare index (up 2.97%), the BSE Realty index (up 2.93%), the BSE Auto index (up 2.44%), the BSE Metal index (up 2.43%), the BSE TECk index (up 2.32%), the BSE IT index (up 2.3%), the BSE FMCG index (up 1.91%), the BSE Bankex (up 1.73%) outperformed the Sensex.

The BSE Consumer Durables index (up 0.52%), the BSE PSU index (up 0.74%), the BSE Oil & Gas index (up 0.87%), the BSE Power index (up 1.44%) underperfomed the Sensex.

The market breadth, indicating the overall health of the market, was strong on BSE with 1,565 shares advancing as compared with 921 that declined. A total of 61 shares remained unchanged.

From the 30 stock Sensex pack 25 stocks gained while the rest fell.

India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) rose 0.28% to Rs 1,520 on bargain hunting after a slide in the past two days. But the stock came off the day's high of Rs 1,552.40.

Meanwhile, report suggests firm will begin gas production from the Krishna Godavari (KG) basin in 24 to 48 hours, with gas production from the Dhirubhai 6 (D6) block estimated to add close to $2 billion to the company's profit at peak production levels.

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

India's largest oil exploration firm by sales ONGC fell 0.41% to Rs 779.70, off the day's high of Rs 799 as crude oil prices tumbled over 7% on Monday, 30 March 2009. Fall in crude oil prices would result in lower realizations from crude sales for the oil exploration firm. Crude oil for May 2009 delivery tumbled $3.97 or 7.58% to $48.41 a barrel on the New York Mercantile Exchange on Monday, 30 March 2009 after the Wall Street plunged on Obama administration's talk of takeover and bankruptcy for two major US automakers and bank rescues in Europe prompted investors to book profits after a recent run-up.

The strengthening of dollar against euro was also one of the reasons for the sharp fall in crude oil prices. The dollar strengthened to its highest level against the euro in more than a week, limiting the appeal of commodities as an investment.

Shares of oil marketing companies rose after the government recently 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 2.31% and 2.34% respectively.

Indian Oil Corporation fell 0.09% 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.

India's largest engineering and construction firm by sales Larsen & Toubro (L&T) rose 3.33% to Rs 672.65. However, the stock came off the day's high of Rs 689.80. It has bagged an order worth Rs 1100 crore in electrical construction sector.

Other capital goods stocks, Crompton Greaves, Bharat Heavy Electricals Punj Lloyd, Praj Industries, Thermax, ABB, rose by between 0.56% to 6.8%.

Rate sensitive real estate shares rose on hopes lower rates will spur housing demand. DLF, Housing Development & Infrastructure, Indiabulls Real Estate and Unitech rose by between 1% to 8.07%. Most of the realty deals including sale of commercial property and housing sales is driven by finance.

Metals stocks gained as industrial copper rose on the London Metal Exchange. Steel Authority of India, Tata Steel, National Aluminum Company, Sterlite Industries, Hindustan Zinc, and Hindalco Industries, rose by between 1.37% to 5.02%.

Banking stocks rose in choppy trade on hopes a further fall in interest rates may boost lending growth and on recovery in bond prices. India's largest bank in terms of assets and branch network State Bank of India rose 4.36% to Rs 1,066.35 off the day's high of Rs 1,083.65. It hit a low of Rs 995.30. 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 fell 1.58% to Rs 332.60. It hit a high of Rs 345.90 and a low of Rs 314.50. Its American depository receipts (ADR) fell 13.27% on Monday, 30 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 2.42% to Rs 967.85. The stock came off a high of Rs 985. It hit a low of Rs 904.10. Its ADR fell 8.49% on Monday. 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 fell 2.71% to Rs 1,411.20. It announced a 50 basis points reduction in its retail prime lending rate (RPLR) to 14% effective Wednesday 25 March 2009.

Bond prices which had tumbled in the past few days recovered today on speculation yields near the highest in four months attracted investors and on speculation the central bank's plan to purchase debt in the coming months will help improve demand for the securities. Bond yields and bond prices are inversely related.

The yield on the 6.05% note due February 2019 declined nine basis points to 6.99% as of 11:34 IST in Mumbai. Ten-year yields have surged 1.74 percentage points since 31 December 2008. The Reserve Bank of India said last week it will buy as much as Rs 80000 crore ($16 billion) of existing government debt via auctions in the next six months. It may be recalled that banks made huge treasury gains in the December 2008 quarter following a surge in bond prices.

Outsourcing focussed IT firms rose on bargain hunting after a sharp slide in the past two trading sessions. India's second largest software services exporter Infosys Technologies rose 2.02% to Rs 1324.10 off the day's high of Rs 1,340. Its ADR fell 0.15% overnight. 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 1.78% even as its ADR fell 3.78% on Monday. Recently its unit Wipro Infotech won an outsourcing contract worth Rs 1,182 crore from the Employees State Insurance Corporation (ESIC).

India's largest software services exporter by sales TCS rose 3.3% to Rs 540 off the day's high of Rs 544. The company's advance tax payment fell 54.3% to Rs 53 crore in Q4 March 2009 over Q4 March 2008.

Financial Technologies (India) spurted 6.09% to Rs 619.90 on reports the company is set to revive an initial public offer of its unit Multi Commodity Exchange.

Commercial vehicle makers rose on reports the government plans to extend higher depreciation benefit of 50% on commercial vehicles by three months till June 2009. Ashok Leyland and Tata Motors rose by between 2.26% to 4.64%. The higher depreciation rate translates into lower tax liabilities and lower insurance premiums for buyers of commercial vehicles.

India's largest tractor maker by sales Mahindra & Mahindra rose 3.51% after booking for the company's new vehicle Xylo crossed the 12000 mark since its launch on 13 January 2009.

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, Nestle India, Britannia Industries and ITC rose by between 0.42% to 4.2%. But India's largest FMCG firm by sales Hindustan Unilever fell 0.5%. The company's advance tax payment rose 30% to Rs 130 crore in Q4 March 2009 over Q4 March 2008.

Some healthcare stocks rose on expectations of better Q4 March 2009 results following reports of higher advance tax payment by these firms. Cipla, Dr Reddy's Laboratories, Ranbaxy Laboratories, Cadila HealthCare, Wockhardt, Biocon rose by between 0.29% to 7.96%.

Sun Pharmaceutical Industries rose 2.79% after the company on Monday 30 March 2009 said it has received approval from the US Food and Drug Administration to sell topiramate tablets, used for the treatment of seizures.

Kalpataru Power Transmission jumped 0.77% on bagging an overseas orders worth Rs 400 crore.

Airline stocks fell on reports aviation turbine fuel (ATF) prices will go up by at least 15% from 1 April 2009. Jet Airways and SpiceJet fell 1.74% and 0.37% respectively while Kingfisher Airlines rose 0.45%. ATF accounts for 50% of an airline's operational expenditure.

Tea shares rose on reports prices of Indian teas are likely to rise in the coming months. Warren Tea, Asian Tea & Exports, Mcleod Russel, Assam Company and Harrisons Malayalam roseby between 5.77% to 20%.

Unitech clocked the highest volume of 1.56 crore shares on BSE. GVK Power & Infrastructure (1.39 crore shares), Cals Refineries (1.2 crore shares), Reliance Natural Resources (1.13 crore shares) and ICICI Bank (1.05 crore shares) were the other volume toppers in that order.

ICICI Bank clocked the highest turnover of Rs 351.08 crore on BSE. Reliance Industries (Rs 254.60 crore), State Bank of India (Rs 169.61 crore), Reliance Infrastructure (Rs 162.78 crore) and Reliance Capital (Rs 146.50 crore) were the other turnover toppers in that order.

SGX Nifty gains ground

SGX Nifty Live Update: 3,035.0 +40.0 points

Bullion metals end further lower

Strong dollar continues to take shine off precious metals

Bullion metal prices ended lower for second straight day on Monday, 30 March, 2009. The strong dollar was the main reason for precious metals ending lower.

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 Monday, Comex Gold for April delivery fell $7.7 (0.8%) to close at $915.5 an ounce on the New York Mercantile Exchange. Last week, gold ended lower by 3.5%. 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 12.8%.

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

On Monday, Comex silver futures for May delivery fell 23 cents (1.7%) to end at $13.033 an ounce. In February, 2009, silver had rose 4.3% after climbing 14% in January. Year to date, silver has climbed 20% this year. For 2008, silver had lost 24%.

In the currency market on Monday, the dollar moved higher against most major rivals as investors panicked amid fears in the US auto industry.

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 21 (0.14%) at Rs 15,121 per 10 grams. Prices rose to a high of Rs 15,321 per 10 grams and fell to a low of Rs 15,030 per 10 grams during the day's trading.

At the MCX, silver prices for May delivery closed Rs 153 (0.7%) lower at Rs 22,025/Kg. Prices opened at Rs 22,215/kg and fell to a low of Rs 21,837/Kg during the day's trading.