Indiabulls Vice President arrested for illegal trading with hacked accounts

The vice president of leading share trading firm Indiabulls Securities was arrested Tuesday for allegedly trading illegally by accessing the online trading account of a chartered accountant here.

Deputy Commissioner (Detective Department-1) of city police Jawed Shamim said Siddhartha Daga, 26, had hacked into Arunava Chakraborty's online trading account with the firm Aug 6 and shortsold a particular scrip through the day at various price levels.

At the end of the day, the net loss to Chakraborty's account was Rs 46 lakh.

"He had traded illegally. Due to him, Chakraborty suffered a net loss of Rs 46 lakh. Daga personally gained a part of the money," Shamim said.

The young executive gained with 20,000 shares of the scrip in his own trading account with another firm, he said.

Police are now trying to ascertain whether any of his colleagues were involved in the illegal trading.

Chakraborty grew suspicious when he could not log on to his account and learnt of the illegal transaction after contacting other top officials of Indiabulls, according to police.

He then filed a complaint at the Bhowanipore police station and the case was later transferred to the detective department.

Daga was Tuesday produced in court, which remanded him to police custody till Aug 18.

Source : INBlive

How to Protect yourself from Swine Flu

Swine flu in India & all over world is spreading like wildfire, taking the toll to six. Officials say  there are currently more than 800 cases of the H1N1 flu strain in India. Governments from all around the world are finding ways to combat this deadly disease. So what can you do to protect yourself? Stay calm and practice these 10 effective prevention tips.

Swine Flu Symptoms

The swine flu symptoms reported  when  infected  with the swine flu are similar to the symptoms of the  influenza virus  most are familiar with.   The good news is that most people who become  infected will do fine and will not have any long term complications.    Those who are immune compromised, older  or pregnant may be at higher risk of complications or serious respiratory illness.  The most common swine flu symptoms include:

• -Cough
• -Congestion
• -Nasal Congestion
• -Nausea/Vomiting
• -Diarrhea
• -Body aches
• -Joint Pains
• -Fevers
• -Sore throat
• -Headaches
• -Fatigue
• -Decreased energy
• -Rarely death in more severe cases, especially from pneumonia.

Transmission

The viral  infection is transmitted  to humans  who are in contact with swine, although there are several cases of swine flu in people who had no known exposure to either infected people or pigs.   Once the species barrier is crossed,  human to human  transmission can occur  with casual contact or airborne transmission, like  when one sneezes or coughs.   Eating pork products will not cause one to develop the swine flu.  Basically, this flu is passed from one person to another like any cold of flu infection.

How serious is swine flu infection?
Like seasonal flu, swine flu in humans can vary in severity from mild to severe. Between 2005 until January 2009, 12 human cases of swine flu were detected in the U.S. with no deaths occurring. However, swine flu infection can be serious. In September 1988, a previously healthy 32-year-old pregnant woman in Wisconsin was hospitalized for pneumonia after being infected with swine flu and died 8 days later. A swine flu outbreak in Fort Dix, New Jersey occurred in 1976 that caused more than 200 cases with serious illness in several people and one death.

Can I get swine influenza from eating or preparing pork?
No. Swine influenza viruses are not spread by food. You cannot get swine influenza from eating pork or pork products. Eating properly handled and cooked pork products is safe.

What should I do if I get sick?
If you live in areas where swine influenza cases have been identified and become ill with influenza-like symptoms, including fever, body aches, runny nose, sore throat, nausea, or vomiting or diarrhea, you may want to contact their health care provider, particularly if you are worried about your symptoms. Your health care provider will determine whether influenza testing or treatment is needed.
If you are sick, you should stay home and avoid contact with other people as much as possible to keep from spreading your illness to others.
If you become ill and experience any of the following warning signs, seek emergency medical care.
In children emergency warning signs that need urgent medical attention include:

•   -Fast breathing or trouble breathing
•   -Bluish skin color
•   -Not drinking enough fluids
•   -Not waking up or not interacting
•   -Being so irritable that the child does not want to be held
•   -Flu-like symptoms improve but then return with fever and worse cough
•   -Fever with a rash

In adults, emergency warning signs that need urgent medical attention include:

• -Difficulty breathing or shortness of breath
• -Pain or pressure in the chest or abdomen
• -Sudden dizziness
• -Confusion
• -Severe or persistent vomiting

What is the best way to keep from spreading the virus through coughing or sneezing?
If you are sick, limit your contact with other people as much as possible. Do not go to work or school if ill. Cover your mouth and nose with a tissue when coughing or sneezing. It may prevent those around you from getting sick. Put your used tissue in the waste basket. Cover your cough or sneeze if you do not have a tissue. Then, clean your hands, and do so every time you cough or sneeze.

What is the best technique for washing my hands to avoid getting the flu?
Washing your hands often will help protect you from germs. Wash with soap and water. or clean with alcohol-based hand cleaner. we recommend that when you wash your hands -- with soap and warm water -- that you wash for 15 to 20 seconds. When soap and water are not available, alcohol-based disposable hand wipes or gel sanitizers may be used. You can find them in most supermarkets and drugstores. If using gel, rub your hands until the gel is dry. The gel doesn't need water to work; the alcohol in it kills the germs on your hands.

How to Protect Yourself From Swine Flu ?

What Precautions to take to keep Swine Flu away ?

1. Wash your hands frequently

Use the antibacterial soaps to cleanse your hands. Wash them often, at least 15 seconds and rinse with running water.

2. Get enough sleep

Try to get 8 hours of good sleep every night to keep your immune system in top flu-fighting shape.

3. Keep hydrated

Drink 8 to10 glasses of water each day to flush toxins from your system and maintain good moisture and mucous production in your sinuses.

4. Boost your immune system

Keeping your body strong, nourished, and ready to fight infection is important in flu prevention. So stick with whole grains, colorful vegetables, and vitamin-rich fruits.

5. Keep informed

The government is taking necessary steps to prevent the pandemic and periodically release guidelines to keep the pandemic away. Please make sure to keep up to date on the information and act in a calm manner.

6. Avoid alcohol

Apart from being a mood depressant, alcohol is an immune suppressant that can actually decrease your resistance to viral infections like swine flu. So stay away from alcoholic drinks so that your immune system may be strong.

7. Be physically active

Moderate exercise can support the immune system by increasing circulation and oxygenating the body. For example brisk walking for 30-40 minutes 3-4 times a week will significantly perk up your immunity.

8. Keep away from sick people

Flu virus spreads when particles dispersed into the air through a cough or sneeze reach someone else’s nose. So if you have to be around someone who is sick, try to stay a few feet away from them and especially, avoid physical contact.

9. Know when to get help

Consult your doctor if you have a cough and fever and follow their instructions, including taking medicine as prescribed.

10. Avoid crowded areas

Try to avoid unnecessary trips outside. Moreover, avoid touching your eyes, nose or mouth. Germs spread this way.

And finally here is the video shows you how to protect yourself from swine flu.

Sources : Yahoo News, Sify & Youtube

Supreme Industries

Investors with a risk appetite for commodity stocks can buy the stock of plastic products maker Supreme Industries (Rs.295). The company’s diversified product profile — consisting of pipes, packaging and industrial products — makes it a beneficiary of spending in segments such as irrigation, housing and infrastructure.
A relatively stable outlook for raw material costs and demand, after several challenges last year, make this a reasonable time to pick up the stock. The company’s current market price discounts the trailing four quarter earnings by eight times, at a par with players such as Sintex Industries.
Product profile
Supreme Industries operates across four segments — plastic pipes, which contribute to 40 per cent of total turnover, packaging (27 per cent), industrial (21 per cent) and consumer products (12 per cent).
Pipes made by the company find extensive use in irrigation, bore-wells, portable water supply, plumbing, drainage, underground sewerage, rainwater harvesting and water management. A derived demand could come from the increase in rural irrigation as well infrastructure outlays. Replacement of metal pipes with plastic is also a positive factor for the company.
The packaging division caters to a wide spectrum of user industries, such as sports goods, electronics, food items, textiles, healthcare, toys, insulation and construction. Offerings in this segment range from packaging film to protective packaging material. The company also makes cross laminated films or tarpaulin sheets which have agricultural and industrial applications.
In the industrial products segment, Supreme Industries manufactures dashboards and other components for automobile companies (Tata Motors and Mahindra and Mahindra being some of the important customers) and equipments for consumer electronic goods such as LCD TVs and air-conditioners.
That apart, it also manufactures industrial craters for storage of textiles, fisheries, food items and soft-drinks. PepsiCo India and Coca Cola India are major customers. In the consumer products division, the company is a market leader in the moulded furniture segment, which offers scope for better margins.
Recently, the company expanded its production capacity of cross-laminated film and products, at its Halol, Silvassa, Gadegaon and Pondicherry plants, from 9000 TPA to 13000 TPA. It has also increased the capacity of injection moulding machines and ancillary equipments and has started a new factory at Jamshedpur for the ‘World Truck’ project of Tata Motors. Similarly, it has expanded plant capacities in Gadegaon and Jalgaon to launch varieties of plastics piping systems.
Financials
While operating profit margins from segments such as pipes and packaging are vulnerable to raw material cost increases, Supreme Industries has managed to hold its margins at a steady 11-12 per cent in recent years. Volume driven growth in the pipes segment has been complemented by reasonable pricing power in the industrial and consumer segments.
It has managed a compounded annual sales growth of 9 per cent and operating profits growth of 13 per cent in the last three years. However, performance in 2008-09 did take a brief knock from the ups and downs of the commodity cycle. The company ended 2008-09 with a sales growth of 26 per cent and net profits growth of 82 per cent, but slipped briefly into losses in the December 2008 quarter mainly due to unusual fluctuations in raw material prices — polypropylene prices fell steeply from $1800 a tonne in July 2008 to $625 by end of the year. (Major raw materials consumed are PVC resin, polyethylene and polypropylene and they account for nearly 80 per cent of the total raw materials cost.) That prompted order cancellations, as the company’s customers expected a further fall in the prices of plastic products and opted to wait before making fresh purchases.
With commodity prices improving along with the crude oil cycle, polypropylene prices have since moved back to $940 levels. Net sales and margins started improving from the March quarter as material prices began to stabilise and customers resumed their orders. The expansion in the past year, pick-up in demand and a tilt in product mix towards high margin products, point to stability in margins in the coming quarters.
Risk factors
Unlike its peers, such as Time Technoplast and Sintex Industries, Supreme Industries has negligible exposure to foreign currency fluctuations. More than 60 per cent of the raw materials are domestically procured and less than 10 per cent of its total turnover is through exports to countries such as the UK Australia and New Zealand.
However, another bout of volatility in crude oil and thus polymer prices could destabilise margins.
via BL

Exide Industries

Investors with medium-term perspective can consider selling Exide Industries stock. Though it has been on an intermediate-term up trend from March low of Rs 34, it encountered resistance at Rs 90 and began to decline.
The stock’s trend reversal is backed by prolonged negative divergence, added with bearish engulfing candlestick pattern displayed in the weekly chart.
Moreover, we observe that volumes are dropping over the past two weeks.
The daily momentum indicator is losing its strength and weekly indicator has reached over-bought territory signalling weakness.
We believe that the stock has the potential to decline to the support level at Rs 55 in the medium-term.
We don’t rule out minor consolidation around Rs 65 while declining. Medium-term investor can sell with stop at Rs 92.
Short-term traders can sell with a target of Rs 73 and stop at Rs 85
via BL

NHPC IPO - Invest

The NHPC initial public offer (IPO) is ideally suited for long-term investors. Hydroelectric projects, by their nature, have long gestation periods of 5-7 years. On the existing generation capacity and financial profile, the offer appears to be fully priced. Valuations could, however, undergo a change as the company gradually commissions the different projects that are under implementation over the next four years and as the return on equity improves.
Positive features
There are a number of positives to recommend an investment in this IPO not the least of which is the 12 per cent gap between demand and supply of electricity in the country. NHPC’s established record in implementing hydropower projects, its good operating performance and the fact that all of its capacity has been tied up with different customers through power purchase agreements are pluses.
Existing capacity of 5,175 megawatt (MW) will almost double in the next four years as new projects totalling 4,292 MW are commissioned. With a further 4,565 MW of projects awaiting government clearances, NHPC is expanding rapidly in an industry that is set to undergo a lot of changes, mostly favourable to the generators.
For instance, some of NHPC’s future projects, either in whole or in part, will sell power on a ‘merchant basis’. Given the large deficit in availability of power and the active part played by traders such as PTC India, generators such as NHPC can hope for higher realisations.
Given that its fuel cost is next to nil, NHPC sold its power last year at an average price of Rs 2.03 per unit. Though this is an advantage in the merit-order despatch system where the cheapest power is picked up first, it also means that the company is not able to capitalise on the supply shortfall.
NHPC has the advantage of its projects being located on perennial rivers and it has managed a capacity index of 95 per cent on an average. This is a major plus given that the northern grid, where NHPC sells most of its generation, is extremely starved for power.
Not surprisingly, some of its projects such as Chamera II in Himachal Pradesh have managed to earn a handsome sum as fees for meeting excess demand over that projected by the consuming State electricity board.
Equity overhang
That said, NHPC also suffers from some blemishes that could, if not managed well, scar its financial performance and balance-sheet. Thanks to a historical reliance on equity funding through government grants, NHPC carries a huge equity base of Rs 11,182 crore that will increase to Rs 12,300 crore after the public offer now. A large quantum of equity funds is locked up at any given time in ongoing projects and this does not earn any return till the projects are commissioned.
The result is that the company’s return on equity is a poor 7 per cent despite it earning an assured return of 14 per cent on its equity till last year (15.5 per cent from this fiscal for the next five years) as per regulatory norms. Peers such as NTPC boast of a return on equity that is double that of NHPC’s.
The picture could change for the better in the next few years due to two reasons. First, NHPC has been off government grants since the last two years and its projects are now funded on 70:30 debt:equity with the equity coming from internal accruals. Second, as the projects under construction now start generating returns, the return on equity will gradually improve.
Cost and time overruns
NHPC’s projects are implemented in difficult physical terrain that are also often environmentally sensitive and hence require numerous government clearances. Given this, delays in commissioning projects are not uncommon, leading to big cost and time overruns.
For instance, the 2,000 MW Subansiri Lower project in Arunachal Pradesh was originally scheduled to be completed in September 2010 but the company now expects to commission it only by December 2012. The 240 MW Uri II and 160 MW Teesta Low Dam IV projects are also on a delayed schedule. Incidentally, these are among the projects that are proposed to be part-funded from the IPO now.
The increased costs have to be approved by the regulator, failing which the company will have to bear the burden.
Regulatory risk
The central electricity regulator issues a five-year tariff policy that governs NHPC’s tariffs. The 2009-2014 policy, while increasing the return on equity to 15.5 per cent from 14 per cent earlier, has changed the method of computation of annual fixed cost recovery in a manner that is adverse to NHPC. Incentives for generation beyond the design energy level have also been capped at Rs 0.80 per unit. Given the large public interest involved in the sector and also the huge demand-supply gap, it is likely that the regulator will play an active role which may not always work to NHPC’s interests.
Optimally valued
The offer price band of Rs 30-36 does not leave much on the table for investors in the near-term. The price-earning multiple of 30 at the lower end of the price band is almost the same as that of Jai Prakash Hydro and higher than NTPC’s PEM of 21 based on historical earnings.
In price-to-book-value (P/BV) terms though, NHPC’s offer price compares favourably with the rest. At the offer price band, NHPC has a P/BV of 1.8-2.2 times; JP Hydro’s, in comparison, stands at close to four times while NTPC has a P/BV of three.
Given the high institutional interest in the power sector and the company’s fundamentals, it is likely that the stock will attract much attention in the market. Investors with a long-term holding strategy can subscribe to this offer.

Cinemax India

Investors with a two-year horizon can buy the shares of Cinemax India, considering that the worst may be over for the company and the multiplex industry, with a string of releases charted for the next few months, steep increases in footfalls, and occupancies and increases in food and beverage revenues.
At Rs 50.50, the stock trades at about 14 times its expected 2009-10 earnings and 11 times its next year's estimates; on very conservative assumptions. This is at a discount to Fame India, despite the company's larger scale of operation.
The past two-three quarters were exceptionally challenging for multiplexes with the Mumbai terror attacks reducing footfalls and occupancies, the IPL-2 keeping audience glued to the small screen and the standoff with distributors over quantum of revenue sharing, delaying fresh releases.
For the June quarter, the company's revenues fell by over 18 per cent over June 2008 to Rs 25.3 crore, while EBITDA fell by 88 per cent to Rs 0.53 crore.
Many other multiplex operators incurred losses even at the EBITDA-level.
But with these one-off challenges behind it, the prospects of improvements over the next few months are bright. Recent reports suggest that in July, after the multiplex-distributor tussle ended, there has been a doubling of monthly box-office earnings.
Cinemax, which has 74 screens across 24 locations and many in the lucrative Mumbai market, has benefited from recent releases. Multiplex players have benefited from the large draw such movies as New York, Kambakt Ishq and Love Aaj Kal have had. Over 50 movie releases are expected over the next two quarters (that were held back due to the tussle), starring some big names in Bollywood.
Some big-ticket ones such as Kaminey, 3 Idiots, London Dreams, and Kites are expected to set the box-office ringing. Surprisingly, even English movies such as Terminator Salvation and The Hangover are reportedly running at 60-70 per cent occupancy.
Cinemax has seen its average ticket price decline to Rs 114 in the June quarter from the Rs 125 levels earlier. But the average spends on food and beverages have witnessed an increase to Rs 31 from Rs 29. As occupancies increase to 25 per cent plus levels on the back of higher footfalls and hit movies, the ticket price is set to increase.
The company, despite the slump in the June quarter, hopes to achieve an EBITDA margin of 25 per cent for the full year and an occupancy level of 25-27 per cent.
via BL

Weekly Technical Analysis - Aug 9 2009

The stock market witnessed some profit-taking last week as monsoon worries resurfaced. The BSE benchmark index, the Sensex, crossed the 16,000-mark briefly to touch a high of 16,002. However, it slipped to a low of 15,104 towards the end of the week. The Sensex finally ended the week with a loss of 510 points, or 3.26 per cent, at 15,160.
Among index stocks — Jaiprakash Associates and Maruti with losses of around 9 per cent each were the biggest losers. ITC, Hero Honda, Reliance Communications, Hindustan Unilever, HDFC Bank, DLF, Bharti Airtel, HDFC and Tata Power were down 6-8 per cent each. On the other hand, Sun Pharma, Reliance and Wipro declined only around 2 per cent each.
Going forward, the monsoon factor is likely to remain a major dampener. Any negative cues from world markets could also have a spillover effect on our markets.
This week, the Sensex is likely to exhibit a rangebound movement with the upside seemingly capped around 15,700, and the downside support around 14,700. The Nifty came down by 155 points, or 3.34 per cent, to 4,481, after moving in a range of 4,731-4,464.
The index is currently below its short-term (15-days) simple moving average, which is a negative indicator. However, the short-term moving average, currently at 4,565, is above the mid-term (45-days) simple moving average of 4,391, which is a positive indicator. The bollinger bands have also narrowed down to 4,735-4,391, hence, in the coming week one could see movement in a narrow range.
On the downside, the mid-term moving average at 4,391 should act as a good support. In case, the index drops below 4,391, than it may slide up to 3,943 — its long-term (200-days) simple moving average.

DROUGHT IN OUR BACK YARD

Before we discuss about the dreary spell of the monsoons, let us first comment on the excellent grades given by our fellow analysts to the June Quarter results.
We find nothing exciting in these results, as the sales have dipped and the profits too have followed suit. Whatever profits were reported were efforts of vigorous cost cutting, treasury and other income. Some of the sectors did see generous margin expansions on the back of cheaper raw material costs.
Our contention is neither the cost cutting nor lower cost of raw materials are sustainable going forward. Unless the increased margins comes through higher price or volumes, we would not be enthused by these results.
Contrary to what the Agriculture Minister and the ‘Mausam Bhavan’ mandarins have been telling the media, the monsoons have played truant.
While we fully understand the fact that weather prediction is not a refined science as of now, but where is the need to give false and misleading assurances. Why do ruling parties have to err on the side of optimism? Why can’t they be realistic. No one is going to hang any minister simply because the precipitation was low. If the rains don’t come, it is neither the met department’s or the minister’s fault. They are merely messengers. But if the messenger unnecessarily gives a pink hue to the message, then it is unpardonable.
A drought is considered if the precipitation is less than 10% of the long term average and 20% of the total land area has a deficiency of more than 20% of the long term average. These two conditions have to be simultaneously met. We already have a deficiency of 25% nationwide and 25 of the 36 met divisions (70%) have a deficiency of more than 20%.
Also consider the fact that till August 5, we usually receive 58% of the season’s precipitation. So even if we were to assume that rain gods have a change of heart and become benevolent for the remaining season, then also, the end result will be a drought by the Governments own definition.
Then why isn’t the Government announcing one? May be they are waiting for the ‘Sharad’ ritu. Pun intended.
While a weak monsoon has been priced in by the markets, a drought is not. The Government will need to spend more on water harvesting measures, provide for fodder, seed inputs, drinking water, food for work programmes, etc.
All this will mean more spending and a larger deficit.
While the markets this week will open higher on better than expected US non-farm pay rolls data, the gains are unlikely to sustain for long.

India adds 12mn wireless subscribers in June

India's wireless telecom subscriber base increased from 415.25mn in May to 427.28mn at the end of June, representing a monthly growth rate of 2.9%. Wireless tele-density stood at 36.64. The total number of telephone subscribers in India increased to 464.82mn at the end of June from a level of 452.91mn in May, thereby registering a growth rate of 2.63%. With this, the overall tele-density in India has reached 39.86.
Wireline subscriber base declined from 37.66mn in May to 37.54mn in June. BSNL/MTNL own 86.2% of the wireline market share. While major private wireline service providers increased their subscriber base, BSNL/MTNL have lost 0.19mn subscribers in June. Wireline teledensity is 3.22.
The lower growth rate in the Metros and the higher growth rate in the Circle ‘C’ reflects the service penetration levels. Subscription levels are currently witnessing higher growth rates in the so far underserved ‘C’ category circles.
Total broadband subscriber base has increased to 6.62mn in June from 6.4mn in May, thereby showing a growth rate of 3.4%.

Weekly Newsletter - Aug 8 2009

We’ve had a disastrous end to a week which started off at a year’s high. But the outlook doesn’t look all that bad for the coming week. To begin with US jobless rate has declined to 9.4% versus expectations of an increase. Non-farm payrolls also dropped less than anticipated. AIG has raked in a $1.8bn profit, cheering the stock. On the flip side, RBS has slumped following a $1.7bn loss. Worst still, RBS doesn't expect a substantial improvement until 2011.
Back to our market, some buying is sure to set in at lower levels as the "left-out" feeling will prompt many to jump in. During the coming week, the IIP numbers will be released. Since the core sector growth has come in strong, the IIP data too should bring some more cheer. However, the monsoon continues to play truant. Any further negative news on this front could rain some more losses.
Some correction at higher level is something which is a given. The global markets too look less keen on a fresh bounce. Even if they do, it may not last too long. Use the lull to evaluate your portfolio as the medium- to long-term outlook remains positive.

India manufacturing PMI up for 4th straight week

India's manufacturing sector continued its recovery process with output growing for a fourth consecutive month in July, spurred by a series of fiscal and monetary stimulus measures announced over the past few months. Markit Economics’ Purchasing Managers’ index (PMI) stood at 55.3 in July, according to a report released today. In June, the Indian manufacturing PMI stood at 55.34. It was the fourth monthly reading above 50, which indicates factory production increased. Before that, it shrank for five months through the end of March, hitting a trough of 44.37 in December.
Growth in India's manufacturing activity held steady in July amid robust local demand and a slight rebound in exports, but intense competition curbed companies' pricing power even as raw material costs jumped, the Markit survey showed. "The domestic market remained the primary impetus to growth, although the export market also played a part as its recovery gained pace," said Gemma Wallace, an economist at Markit Economics. The new orders index rose to 59.75, its highest in nine months, from 58.56 in June. Wallace also said that there was evidence that capacity pressures have started to building up.

Inflation at -1.58% in week ended July 25

India’s inflation, as measured by the wholesale price index (WPI), fell for the eighth straight week and stood at -1.58% in the week ended July 25 as compared to -1.54% in the week ended July 18. It was at 12.53% during the week ended July 26, 2008. The WPI for ‘All Commodities’ for the week ended July 25, rose by 0.04% to 236.9 from 236.8 for the previous week. The index for Primary Articles rose by 0.4% to 262.2 while the index for ‘Food Articles’ group rose by 0.8% to 261. The index for ‘Non-Food Articles’ group declined by 0.4% to 241.5. The index for Fuel, Power & Light group remained unchanged at its previous week’s level of 338.2. The index for Manufactured Products group declined by 0.1% to 205.6.
Week-on-week, the WPI was almost flat, for the second straight week. While prices of primary articles rose WoW, prices of manufactured goods remained unchanged. Inflation in primary food articles is almost in double digits - 9.7% for the week ended July 25. They are rising at their fastest pace since early February and are largely responsible for the recent spike in CPI. With monsoon so far being significantly below average, there is further upside risk to primary food prices. WPI inflation will likely remain in negative territory till September, and is expected to rebound sharply as the base effect wears off. WPI inflation is seen at over 5% by the end of the year.

IMD: monsoon shortfall at 64% for latest week

India’s monsoon was 64% below normal in the week ended August 5, according to the Indian Meteorological Department (IMD). Rains were 25% below the 50-year average of 503.4 millimeters between June 1 and August 5, the agency said. Last week's rainfall was the worst since mid-June. The weather department said that only seven of India's 36 weather zones received normal rains during the past week. Weekly rainfall was scanty in 23 areas, deficient in 4 zones, while only 2 regions received excess rains. The soybean-producing central part of India got a negligible 1% of the normal rainfall, putting the crop at risk if the dry patch continues another week. Rainfall in cane-growing Uttar Pradesh was about 80% below normal, while Maharashtra, a major producer of sugar and cotton, saw about 90% shortfall in the week ended Aug. 5, the weather office said.
"Subdued rainfall activity is likely to continue over western, central and peninsular parts of the country during next 2-3 days," the IMD said on its web site on Friday. Fairly widespread to widespread rainfall activity with isolated heavy to very heavy falls is likely along the foot hills of Himalayas, northeastern states, West Bengal, Sikkim and Bihar during next 2-3 days, it added.

BSE Bulk Deals to Watch - Aug 7 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
7/8/2009 532975 AISHWARYA TE BHASKAR REDDY KATPALLI S 60000 21.73
7/8/2009 532995 AVON CORP S V ENTERPRISES B 680646 11.35
7/8/2009 532995 AVON CORP BASMATI SECURITIES PVT LTD S 514924 11.03
7/8/2009 532995 AVON CORP S V ENTERPRISES S 680646 11.83
7/8/2009 532916 BARAK VALL DB (INTL) OWN TRADING B 216078 36.99
7/8/2009 532916 BARAK VALL DB (INTL) OWN TRADING S 216078 37.23
7/8/2009 532916 BARAK VALL AJAY GUPTA S 111000 34.94
7/8/2009 590061 BRUSHMAN IND PANTHEON INVESTMENT AND HOLDINGS B 102000 13.04
7/8/2009 590061 BRUSHMAN IND PANTHEON INVESTMENT AND HOLDINGS S 64600 13.04
7/8/2009 531270 DAZZEL CONFI NIREN MEHTA HUF B 80000 3.61
7/8/2009 531270 DAZZEL CONFI REKHA BHANDARI S 82000 3.61
7/8/2009 532809 FSL GENUINE STOCK BROKERS PVT. LTD. B 2144216 28.64
7/8/2009 532809 FSL GENUINE STOCK BROKERS PVT. LTD. S 2144216 28.66
7/8/2009 508918 GREYCELLS EN EVERGREEN RESOURCES PVT LTD B 83000 130.00
7/8/2009 508918 GREYCELLS EN INDIA MAX INVESTMENT FUND LTD S 83000 130.00
7/8/2009 530255 KAY POW PAP GIRRAJ PRASAD GUPTA S 100000 6.57
7/8/2009 531731 KUVAM INTL KAMLESH GUPTA S 27600 16.92
7/8/2009 512167 MATRA REALT JOHN VAS B 258000 8.65
7/8/2009 512167 MATRA REALT CRESTA FUND LTD S 125000 8.65
7/8/2009 512167 MATRA REALT CRESTA FUND LTD. S 125000 8.65
7/8/2009 532944 ONMOBILE Deutsche Securities Mauritius Limited S 500000 510.01
7/8/2009 512626 ORBIT EXPORT PANKAJ SHAYAMSUNDER SETH B 180000 13.10
7/8/2009 512626 ORBIT EXPORT ANISHA PANKAJ SETH B 180000 13.10
7/8/2009 512626 ORBIT EXPORT SHUBHKAM VENTURES (I) PVT.LTD S 360000 13.10
7/8/2009 500338 PRISM CEMENT LTD. OPG SECURITIES P LTD B 1919665 53.29
7/8/2009 500338 PRISM CEMENT LTD. OPG SECURITIES P LTD S 1919665 53.31
7/8/2009 526133 SUPERTEX IND KUMKUM STOCK BROKER PVT LTD B 51943 60.11
7/8/2009 526133 SUPERTEX IND KUMKUM STOCK BROKER PVT LTD S 53100 60.10
7/8/2009 519228 TEMPT.FOODS MARYADA BARTER PRIVATE LIMITED S 194365 33.08
7/8/2009 531703 TRIBHVAN HSG SIGRUN Ltd B 290449 12.80
7/8/2009 531703 TRIBHVAN HSG IMTIAZ KHODA B 130000 12.80
7/8/2009 531703 TRIBHVAN HSG CRESTA FUND LTD S 125000 12.80
7/8/2009 531703 TRIBHVAN HSG JOHN VAS S 175000 12.80
7/8/2009 531703 TRIBHVAN HSG CRESTA FUND LTD. S 125000 12.80
7/8/2009 532917 VARUN INDS HITESH SHASHIKANT JHAVERI B 191600 83.20
7/8/2009 532917 VARUN INDS HITESH SHASHIKANT JHAVERI S 245350 83.20
7/8/2009 503657 VEER ENERGY MAHESH CHAND RELA B 8000 182.10
7/8/2009 503657 VEER ENERGY HEMLATA RAMESH HANKARE B 9000 181.68
7/8/2009 503657 VEER ENERGY MAHESH CHAND RELA S 8000 181.88
7/8/2009 503657 VEER ENERGY HEMLATA RAMESH HANKARE S 9000 182.00
7/8/2009 523628 WEAROLOGY LT TIHUNAZ KEKI MEHTA B 50000 45.50
7/8/2009 523628 WEAROLOGY LT DARASHAW KEKI MEHTA B 26440 45.75
7/8/2009 523628 WEAROLOGY LT LAXMI INVESTMENTS S 75967 45.59
7/8/2009 517498 WEBEL SL ENE MACKERTICH CONSULTANCY SERVICES PVT. LTD. S 48800 258.34
7/8/2009 531249 WELL PACK PA KISHORBHAI BALUBHAI CHAUHAN B 22500 158.91
7/8/2009 531249 WELL PACK PA HEMANT MADHUSUDAN SHETH S 32500 158.90

NSE Bulk Deals to Watch - Aug 7 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
07-AUG-2009,BVCL,Barak Valley Cements Limi,DB (INTERNATIONAL) STOCK BROKERS LTD.,BUY,246856,37.42,-
07-AUG-2009,EDSERV,Edserv Softsystems Limite,RAVI SHANKARAN,BUY,170000,70.99,-
07-AUG-2009,EMCO,Emco Limited,SARALA SHANTILAL MUTTHA,BUY,407060,84.98,-
07-AUG-2009,FAGBEARING,Fag Bearings India Ltd,SUNDARAM MUTUAL FUND A/C. SUNDARAM SMILE FUND,BUY,327905,462.00,-
07-AUG-2009,INDIABULLS,Indiabulls Financial Serv,CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED,BUY,6226501,183.00,-
07-AUG-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,11486763,22.62,-
07-AUG-2009,SHRIRAMCIT,Shriram City Union Financ,NORWEST VENTURE PARTNERS X FII - MAURITIUS,BUY,499700,320.00,-
07-AUG-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,1253015,20.42,-
07-AUG-2009,BVCL,Barak Valley Cements Limi,DB (INTERNATIONAL) STOCK BROKERS LTD.,SELL,246856,37.26,-
07-AUG-2009,EMCO,Emco Limited,RAJENDRA ANIL MAYUR,SELL,403515,85.00,-
07-AUG-2009,EMCO,Emco Limited,SARALA SHANTILAL MUTTHA,SELL,7060,85.90,-
07-AUG-2009,FAGBEARING,Fag Bearings India Ltd,TEMPLETON MUTUAL FUND,SELL,327905,462.00,-
07-AUG-2009,INDIABULLS,Indiabulls Financial Serv,ORIENT GLOBAL CINNAMON CAPITAL LIMITED,SELL,6250000,183.01,-
07-AUG-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,11589513,22.56,-
07-AUG-2009,ONMOBILE,OnMobile Global Limited,DEUTSCHE SECURITIES MAURITIUS LIMITED,SELL,500000,510.03,-
07-AUG-2009,SHRIRAMCIT,Shriram City Union Financ,CPIM STRUCTURED CREDIT FUND A 1500 LIMITED FDI,SELL,333333,320.03,-
07-AUG-2009,WEBELSOLAR,Webel-SL Energy Systems L,KAYPEE INFOCOM PRIVATE LIMITED,SELL,80000,263.45,-
07-AUG-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,1266225,20.43,-

Markets in profit booking mode

The south-bound trend in the market is likely to continue on the back of a weak global indices. Intra-day volatility and further slump in FIIs may also weigh on the sentiment. Among the key domestic indices, the Nifty may test 4555-4490 on the downside while on the upside the index could test higher levels of 4620, while the Sensex could test higher levels of 15732 and has a likely support at 15413.
US indices fdipped Thursday -- ahead of the closely watched July jobs report -- with investors bailing out of tech, financial and commodity shares in a step back from the big rally of the past month. While the The Dow Jones industrial average (INDU) lost 25 points, at 9256 and the Nasdaq composite (COMP) shed 20 points, at 1973.
All ADRs ended with losses on the US bourses. Satyam and Rediff dropped over 5-6% each. Patni Computer, MTNL, HDFC Bank, Infosys, Dr Reddy and Tata Motors were down around 2-3% each. While ICICI Bank, VSNL & Wipro ended with marginal loss.
Crude oil prices inched lower, with the Nymex light crude oil for September delivery slipping by 3 cents at $71.94 a barrel and in the commodity segment, the Comex gold for September series slumped $3.40 to settle at $962.90 an ounce.

NHPC IPO subscribed 3.5 times on day one

Receives bids for 594.09 crore shares
The initial public offer (IPO) of state-run hydro power generation firm NHPC received an overwhelming response on the first day. The issue was subscribed by a whopping 3.54 times. The IPO got bids for 594.09 crore shares as against 168 crore shares offered by the company. More than 4.29 crore shares were bid at cut off price.
The qualified institutional buyers (QIBs) category was subscribed six times. Investors in this category put in bids for 589.31 crore shares as against 98.12 crore shares reserved for this category.
The non institutional investor category, made up of high net worth individuals and corporate investors, was undersubscribed. The category mopped up bids for 10.21 lakh shares as against 16.35 crore shares set aside by the company.
Same was the case with the retail investor category, which was undersubscribed as well. Total bids in this category were for 4.67 crore shares as against 49.06 crore shares assigned by the company.
NHPC is selling 168 crore shares comprising of 5% divestment of stake by the government and infusion of 10% fresh equity. The price band for the IPO is Rs 30 to Rs 36 per equity share.
The issue will constitute 13.64% of the post-issue capital of NHPC. The IPO closes on 12 August 2009.
NHPC is the largest hydroelectric power generating company in the country. It has 13 operating hydro electric power (HEP) plants with an installed capacity of 5,175 megawatts (MW) including two power stations of total 1,520-MW capacity set up through its joint venture subsidiary Narmada Hydroelectric Development Corporation (NHDC). Current total generating capacity is 5,134.2 MW, taking into account the downgrade of the capacity ratings of Loktak and Tanakpur power stations by the Central Electricity Authority.
NHPC is constructing 11 additional hydroelectric projects, which are expected to increase the installed capacity by 4,622 MW. These plants, barring Teesta Low Dam IV, are mostly in the north and northeastern states and scheduled to be commissioned between December 2009 and March 2013. The Teesta Low Dam IV project is coming up in the Darjeeling district of West Bengal.
NHPC is also awaiting government sanction to build another five projects with an anticipated capacity of 4,565 MW on its own and another 2,166-MW capacity projects through certain JV projects. In addition, the company is surveying and investigating proposals for nine additional projects totaling 7,255 MW of anticipated capacity.
Apart from development and operation of HEP projects, NHPC also develops, designs, and delivers HEP station to clients. The company has executed two HEP projects, i.e. Kurichhu HEP in Bhutan and Devighat HEP in Nepal, on contract. Further, it also provides technical, management advisory and consultancy services to domestic and international clients.
NHPC's consolidated net profit rose 3% to Rs 1244.15 crore on 19.2% growth in sales to Rs 3493.71 crore in the year ended March 2009 (FY 2009) over the year ended March 2008
On post-IPO equity of Rs 12300.74 crore, the EPS for FY 2009 works out to Rs 1 and the PE is 30-36 times at the offer price band of Rs 30-Rs 36

Auto, banking shares lead 3.2% Sensex slide

Concerns over scanty rains and worries that the the initial public offer of NHPC may suck out liquidity from the secondary market triggered a correction on the bourses in the first week of August 2009. Weakness in Chinese stocks on talks that the Chinese central bank may rein in lending also weighed on investor sentiment.
Monsoon rains were 64% below the average in the week ended 5 August 2009. The cumulative deficit between 1 June 2009 and 5 August 2009 period widened to 25% from 19% a week earlier.
The June-September rains are the main source of irrigation for farms and are crucial for Asia's third-largest economy as more than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.
The BSE Sensex fell 510.07 points or 3.26% to 15,160.24 in the week ended 7 August 2009. The S&P CNX Nifty declined 155.05 points or 3.34% to 4481.40 in the week.
The BSE Mid-Cap index fell 137.77 points or 2.47% to 5,433.25 and the BSE Small-Cap index fell 12.07 points or 0.19% to 6,193.76.
Trading for the week began on an upbeat note as key benchmarks surged to a 14-month closing high on Monday, 3 August 2009. Sign of recovery in the Indian economy, better-than-expected Q1 June 2009 results from India Inc which just got over and buying by foreign funds underpinned sentiment. The BSE 30-share Sensex jumped 253.92 points or 1.62% to 15,924.23, its highest closing since 3 June 2008. The S&P CNX Nifty was up 74.95 points or 1.62% to 4,711.40, its highest closing since 3 June 2008.
Key benchmark indices edged lower on Tuesday, 4 August 2009, reversing gains in the preceding three trading sessions, as lower European stocks and US index futures triggered profit taking. The BSE 30-share Sensex fell 93.25 points or 0.59% to 15,830.98. The S&P CNX Nifty fell 30.90 points or 0.66% to 4,680.50.
A recovery in European stocks helped Indian equities score gains in what was a choppy trading session on Wednesday, 5 August 2009. Sustained buying by foreign funds and an expected economic recovery in India underpinned sentiment. The BSE 30-share Sensex rose 72.85 points or 0.46% to 15,903.83. The S&P CNX Nifty gained 13.65 points or 0.29% to 4,694.15.
The Key benchmark indices nosedived in the fag end of the trading session on Thursday, 6 August 2009, led by fall in auto, metal, realty and FMCG stocks. The sharp slide materialised after television reports said that the monsoon rains were 66% below normal the week to 5 August 2009. The BSE 30-share Sensex fell 389.80 points or 2.45% to 15,514.03. The S&P CNX Nifty fell 108.65 points or 2.31% to 4,585.50.
The key benchmark indices tumbled on Friday, 7 August 2009, posting second straight day of losses, as weak global stocks and below normal rains weighed on investor sentiment. Strong response to the initial public offer (IPO) of NHPC raised concerns it will suck out liquidity from the secondary market. The BSE 30-share Sensex fell 353.79 points or 2.28% to 15,160.24. The S&P CNX Nifty fell 104.10 points or 2.27% to 4481.40.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) rose 1.98% in the week. Petroleum minister Murli Deora in Parliament on Thursday, 6 August 2009 said that the price approved by the empowered group of ministers (eGoM) for RIL gas from the KG D6 field was lower than the price it had approved for some of the other operators in the country.
Deora said the price of $4.2 was lower than the price of $5.5 charged for gas from the Panna-Mukta-Tapti (PMT) field by a group consisting RIL, ONGC and British Gas. The Anil Ambani group (ADAG) had called the price of $4.2 exorbitant, pointing out that most of the natural gas in the country is being sold at $1.8 to $2.4 per unit.
The Ambani brothers have been at loggerheads since the death of their father in 2002, and a 2005 settlement saw the Reliance group split into two. The Supreme Court on 30 July 2009 said, it will give a date on 1 September 2009 to expedite the decision.
Shares of three public sector oil marketing companies advanced as a hike in retail fuel prices in early July 2009 may boost Q2 September 2009 results. Hindustan Petroleum Corporation (HPCL) (up 5.74%), Bharat Petroleum Corporation (BPCL) (up 10.52%) and Indian Oil Corporation (IOC) (up 1.76%), rose. On 1 July 2009, the government had hiked petrol price by Rs 4 per litre and diesel by Rs 2 per litre.
The three public sector oil marketing firms reported strong Q1 June 2009 results as they incurred negligible underrecoveries on domestic sale of fuel at controlled prices. The strong performance was despite lack of any oil bonds from the government.
Power stocks fell even as the NHPC IPO received a robust response from investors. Reliance Infrastructure (down 4.85%), Tata Power Company (down 5.89%), CESC (down 2.73%), Torrent Power (down 2.88%) and Reliance Power (down 4.74%), declined.
The IPO of NHPC, which opened for subscription on 7 August 2009, was subscribed 3.22 times by 15:00 IST that day. The IPO received bids for 540.25 crore shares compared to the issue size of 167.7 crore shares. NHPC is planning to raise Rs 6,040 crore at the upper end of the issue price band of Rs 36. The government kickstarts the divestment process by selling shares in NHPC.
NHPC is selling 167.7 crore shares comprising of 5% divestment of stake by the government and infusion of 10% fresh equity. The strong response for the first state-run IPO in 18 months could embolden the government to sell stake in more firms.
Bank stocks fell as state-run banks remained shut for two days in a row on Thursday and Friday following a nationwide strike by their employees demanding higher wages and pensions. India's biggest bank in terms of branch network State Bank of India (SBI) fell 3.98%
Other PSU stocks, Bank of India (down 1.03%), Indian Overseas Bank (down 5.94%), Bank of Baroda (down 2.55%), Union Bank of India (down 2.61%), declined.
State-run banks account for more than half of banking sector assets and have a dominant presence in the fixed income and foreign exchange markets.
Among the private sector lenders, India's largest private sector bank by net profit ICICI Bank fell 2.77%. India's second largest private sector bank by net profit HDFC Bank fell 7.14%.
Auto stocks fell on profit taking after recent surge triggered by healthy monthly sales figures for July 2009 and good Q1 June 2009 results. Weak monsoon also triggered profit taking as auto firms derive substantial revenue from rural India. Mahindra & Mahindra (down 2.64%), Bajaj Auto (down 4.02%), Hero Honda Motors (down 7.74%), and Maruti Suzuki India (down 8.63%), TVS Motor Company (down 9.92%), fell.
India's largest truck market by sales Tata Motors fell 1.67%. Global ratings agency Standard & Poor's downgraded long term corporate credit rating of the auto major to 'B' from 'B+'. The outlook is negative. At the same time, Standard & Poor's lowered the issue rating on the company's senior unsecured notes to 'B' from 'B+'.
Rate sensitive realty shares declined on profit booking after recent strong gains triggered by of the government's thrust on housing sector in the Union Budget 2009-2010. Unitech (down 4.55%), Omaxe (down 4.92%), DLF (down 6.99%), Anant Raj Industries (down 9.93%), Ackruti City (down 6.28%), fell.

Below-normal rains rattle equities rains

The key benchmark indices fell for the second day in a row as weak global stocks and below normal rains weighed on investor sentiment. Strong response to the initial public offer (IPO) of NHPC raised concerns it will suck out liquidity from the secondary market. Power, auto, realty and banking stocks were the major losers. Index heavyweight Reliance Industries (RIL) slumped. The BSE 30-share Sensex was down 353.79 points or 2.28%. The market breadth, indicating the overall health of the market, was weak.
Foreign funds today, 7 August 2009, dumped stocks worth a net Rs 1,050.81 crore, provisional data released by the stock exchanges after trading hours showed. Domestic funds bought stocks worth a net Rs 414.43 crore.
The Sensex has lost 743.59 points or 4.67% in the past two trading sessions. The barometer index has shed 763.99 points or 4.79% in four trading sessions form a 14-month closing high of 15,924.23 on Monday, 3 August 2009.
The market was volatile today, 7 August 2009. Media reports that the IPO of state-run NHPC was fully bid within minutes of opening triggered a recovery on the bourses after an early slide triggered by weak global stocks. However, the recovery proved short-lived. The market weakened in morning trade. The market cut losses later. The market weakened again later. It cut losses before tumbling in late trade.
Finance Minister Pranab Mukherjee today said the government and Reserve Bank of India will balance a heavy borrowing plan and ensure adequate funds for the private sector.
The Reserve Bank of India (RBI) will maintain an accommodative monetary stance until the economy shows signs of recovery, a junior finance minister Namo Narain Meena told parliament on Friday, citing last month's policy review report.
The IPO of NHPC, which opened for subscription today, 7 August 2009, was subscribed 3.33 times by 16:00 IST, data on NSE website showed. The IPO received bids for 558.37 crore shares compared to the issue size of 167.7 crore shares. NHPC is planning to raise Rs 6,040 crore at the upper end of the issue price band of Rs 36. The government kickstarts the divestment process by selling shares in NHPC.
NHPC is selling 167.7 crore shares comprising of 5% divestment of stake by the government and infusion of 10% fresh equity. The strong response for the first state-run IPO in 18 months could embolden the government to sell stake in more firms. Steel minister Virbhadra Singh said today that the government has identified two state run steel firms for stake sale and may sell 20% stake in these firms.
Investors continue to bet that the government will undertake economic reforms which may boost economic growth and corporate earnings. The Q1 June 2009 results of India Inc were encouraging, with lower costs helping bottomline growth. The combined net profit of 3,091 companies rose 17% to Rs 73712 crore on 5% fall in sales to Rs 722557 crore in Q1 June 2009 over Q1 June 2008.
But, scanty rains remains a cause of concerns for investors. The South West monsoon rains were 64% below normal in the past seven days to 5 August 2009, dipping for the second straight week at a crucial period for oilseeds and sugarcane, and raising concerns of rising food prices. Last week's rainfall was the worst since mid-June, while total rainfall since the start of season on 1 June 2009 was a quarter below average, the India Meteorological Department said on Thursday.
Water level in the main reservoirs was at 36% of capacity in the week to August, crawling up 1 % point in seven days when the country received barely a third of normal rainfall. The June-September rains are the main source of irrigation for farms and are crucial for Asia's third-largest economy as more than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.
Planning commission deputy chairman Montek Singh Ahluwalia on Thursday said rising food prices are a matter of concern, but the country has comfortable food stocks to deal with any difficult situation. The wholesale price index fell 1.58% in the 12 months to 25 July 2009, but food prices are on the rise, government data showed on Thursday.
Heavy purchases by foreign funds has triggered a solid rally on the bourses this year. The Sensex was up 5512.93 points or 57.14% in calendar year 2009 as on 7 August 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex was up 6999.84 points or 85.77% as on 7 August 2009.
Foreign institutional investors' (FIIs) inflow in calendar year 2009 totaled Rs 36,114.20 crore (till 6 August 2009). Foreign funds sold shares worth Rs 246.50 crore on Thursday, 6 August 2009.
European shares were lower in early trade on Friday as investors awaited the influential US non-farm payroll data, with banking shares the biggest losers after RBS posted a first-half loss. The key benchmark indices in France, Germany and UK were down by between 0.57% to 1.14%.
Asian stocks fell for the third time in four days on Friday, 7 August 2009, as lower earnings from Konica Minolta Holdings Inc. and DBS Group Holdings fueled concern an equity rally in the past month had outpaced prospects for corporate profits. Key benchmark indices in China, Hong Kong and Singapore fell by between 2% to 2.85%. But key benchmark indices in Japan and South Korea rose by between 0.23% to 0.7%. The Taiwan stock market was closed for a holiday.
Trading in US index futures indicated Dow could fall 22 points at the opening bell today, 7 August 2009.
US stocks ended lower for a second straight session on Thursday, 6 July 2009 as tech stocks dragged after tepid outlook from Cisco. Investors also remained jittery ahead of Friday's jobs report. The Dow Jones Industrial Average lost 24.71 points, or 0.3%, to 9,256.26. The S&P 500 index fell 5.64 points, or 0.6%, to 997.08. The Nasdaq Composite Index shed 19.89 points, or 1%, to 1,973.16.
In economic news, weekly initial jobless claims fell by 38,000 last week; more than expected. But continuing claims were more-than-expected at over 6 million, up from the previous week.
The BSE 30-share Sensex was down 353.79 points or 2.28% to 15,160.24. The Sensex fell 12.09 points at the day's high of 15,501.94 in early trade. The Sensex tanked 410.03 points at the day's low of 15,104 in late trade.
The S&P CNX Nifty was down 104.10 points or 2.27% to 4,481.40. Nifty August 2009 futures were at 4467, at a discount of 14.40 points as compared to the spot closing of 4481.40. Turnover in NSE's futures & options (F&O) segment was Rs 65,231.26 crore, much lower than Rs 73,819.40 crore on Thursday, 6 August 2009.
BSE clocked a turnover of Rs 5424 crore, lower than Rs 7169.11 crore on Thursday, 6 August 2009.
The market breadth, indicating the overall health of the market, was weak. On BSE, 743 shares advanced as compared with 1921 that declined. A total of 78 shares remained unchanged.
Among the 30-member Sensex pack, 27 fell while the rest gained.
The BSE Mid-Cap index was down 2.27% and the BSE Small-Cap index was down 1.92%. Both the indices outperformed the Sensex.
The BSE Consumer Durables index (down 3.92%), the BSE Auto index (down 3.87%), the BSE Realty index (down 3.29%), the BSE Bankex (down 2.96%), the BSE Power index (down 2.65%), the BSE Capital Goods index (down 2.39%), underperformed the Sensex.
The BSE IT index (down 0.78%), the BSE Healthcare index (down 1.14%), the BSE PSU index (down 1.47%), the BSE Oil & Gas index (down 1.76%), the BSE Teck index (down 1.97%), the BSE Metal index (down 2.12%), the BSE FMCG index (down 2.25%), outperformed the Sensex.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) fell 2.47% to Rs 1,995.90. The stock hit a high of Rs 2,064 and a low of Rs 1,990. Petroleum minister Murli Deora in Parliament on Thursday, 6 August 2009 said that the price approved by the empowered group of ministers (eGoM) for RIL gas from the KG D6 field was lower than the price it had approved for some of the other operators in the country.
Deora said the price of $4.2 was lower than the price of $5.5 charged for gas from the Panna-Mukta-Tapti (PMT) field by a group consisting RIL, ONGC and British Gas. The Anil Ambani group (ADAG) had called the price of $4.2 exorbitant, pointing out that most of the natural gas in the country is being sold at $1.8 to $2.4 per unit.
The Ambani brothers have been at loggerheads since the death of their father in 2002, and a 2005 settlement saw the Reliance group split into two. The Supreme Court on 30 July 2009 said, it will give a date on 1 September 2009 to expedite the decision.
Shares of three public sector oil marketing companies advanced as a hike in retail fuel prices in early July 2009 may boost Q2 September 2009 results. Hindustan Petroleum Corporation (HPCL), Bharat Petroleum Corporation (BPCL) and Indian Oil Corporation (IOC) rose by between 1.15% to 2.87%. On 1 July 2009,the government had hiked petrol price by Rs 4 per litre and diesel by Rs 2 per litre.
The three public sector oil marketing firms reported strong Q1 June 2009 results as they incurred negligible underrecoveries on domestic sale of fuel at controlled prices. The strong performance was despite lack of any oil bonds from the government.
Power stocks fell even as the NHPC IPO received a robust response. Reliance Infrastructure, Tata Power Company, CESC, Torrent Power and Reliance Power fell by between 0.27% to 4.78%.
Bank stocks fell as state-run banks remained shut on Friday as a nationwide strike by their employees demanding higher wages and pensions entered the second day. India's biggest bank in terms of branch network State Bank of India (SBI) fell 3.08%.
Other PSU stocks, Bank of India, Indian Overseas Bank, Bank of Baroda, Union Bank of India fell by between 0.7% to 2.52%.
State-run banks account for more than half of banking sector assets and have a dominant presence in the fixed income and foreign exchange markets.
India's largest private sector bank by net profit ICICI Bank fell 3.62% as its ADR fell 1.7% on Thursday. India's second largest private sector bank by net profit HDFC Bank fell 1.5% as its ADR fell 2.67% overnight.
Auto stocks fell on profit taking after recent surge triggered by healthy monthly sales figures for July 2009 and good Q1 June 2009 results. Weak monsoon also triggered profit taking as auto firms derive substantial revenue from rural India. Mahindra & Mahindra, Bajaj Auto, Hero Honda Motors, and Maruti Suzuki India, TVS Motor Company fell by between 2.51% to 5.72%.
India's largest truck market by sales Tata Motors fell 0.91%. Early this week, the global ratings agency Standard & Poor's downgraded long term corporate credit rating of the auto major to 'B' from 'B+'. The outlook is negative. At the same time, Standard & Poor's lowered the issue rating on the company's senior unsecured notes to 'B' from 'B+'.
Rate sensitive realty shares declined on profit booking after recent strong gains triggered by of the government's thrust on housing sector in the Union Budget 2009-2010. Unitech, Phoenix Mills, Omaxe, DLF, Anant Raj Industries, Ackruti City, fell by between 0.39% to 8.08%.
FMCG stocks fell on concerns over annual monsoon. FMCG firms derive substantial revenue from rural sector. Hindustan Unilever, Tata Tea, ITC, United Spirits, REI Agro, Nestle India fell by between 0.95% to 7.14%.
Capital goods and construction shares fell on profit booking after recent strong gains triggered by of the government's thrust on the infrastructure sector in the Union Budget 2009-2010.
From the capital goods space, Larsen & Toubro, Bharat Heavy Electricals, Crompton Greaves, Praj Indutries, ABB, BEML, Thermax, Siemens, fell by between 0.49% to 5.06%.
Among construction shares, Gayatri Projects, IVRCL Infrastructure & Projects, Era Infra Engineering, Hindustan Construction Company, fell by between 1.94% to 4.99%.
Cement stocks fell on profit taking after a recent surge triggered by healthy July 2009 monthly sales. UltraTech Cement, Ambuja Cements, ACC fell by between 0.24% to 2.97%.
IT stocks fell after a tepid outlook from Cisco. India's largest IT exporter by sales TCS fell 1.82%. The company recently bagged an order from multi-brand discount chain The Loot. TCS will manage the back-end and software support system for the retail chain.
India's second largest IT exporter by sales Infosys fell 0.62% as its American depository receipt (ADR) fell 2.14% on Thursday. The company signed an agreement with BanColombia SA for its Finacle software to be used by the Colombian bank and its overseas units.
But, India's third largest IT exporter by sales Wipro rose 0.13%. The company announced on Wednesday, 5 July 2009, that it has entered a five-year contract with US apparel retailer Charming Shoppes Inc. to provide information technology services.
Metal shares fell as LMEX, a gauge of six metals traded on the London Metal Exchange, fell 3.5% on Thursday, 6 August 2009. Tata Steel, Steel Authority of India, Jindal Steel, Sterlite Industries, National Aluminum Company, Hindalco Industries fell by between 1.16% to 2.96%.
Shipping stocks fell after the Baltic Dry Index, a measure of shipping costs for commodities, tumbled 4.7% in London on Thursday, a sixth-consecutive decline. Essar Shipping, GE Shipping and Company, Mercator Lines and Shipping Corporation of India fell by between 4.35% to 7.38%.
Ispat Industries clocked highest volume of 1.94 crore shares on BSE. Unitech (1.66 crore shares), Firstsource Solutions (1.58 crore shares), Suzlon Energy (1.34 crore shares) and Prism Cement (1.27 crore shares) were the other volume toppers in that order.
Tata Steel clocked highest turnover of Rs 234.09 crore on BSE. Reliance Industries (Rs 221.88 crore), Reliance Capital (Rs 150.22 crore), DLF (Rs 148.15 crore) and Unitech (Rs 142.74 crore) were the other turnover toppers in that order.

Market may extend losses on scanty rains

The market may extend losses registered in the first week of August 2009 on concerns about below normal rains and worries that the initial public offer of state-run NHPC will suck out liquidity from the secondary market. The market underwent a correction in the first week of August 2009 after a sparkling rally last month. The BSE Sensex lost 510.07 points or 3.26% in the week ended 7 August 2009.
The key economic data due next week is industrial production for June 2009. Industrial output had risen by a faster-than-expected 2.7% in May 2009. Among the global indicators, the US Labor Department is due to release its non-farm payroll report for July 2009 on Friday, 7 August 2009. If the jobs data is worse than expected, it may trigger a sell-off in global equity markets.
All eyes are now on how monsoon fares in August 2009 as a dismal rainfall could be bad news for the country's agriculture, economy and even its stock market. According to reports, the average rainfall in July 2009 was near normal but it had been below normal for northern states like Uttar Pradesh, Bihar, Punjab and Haryana.
The rainfall for the week-ended 5 August 2009 was reported to be 66% below normal at 23.5 millimeter (mm). Monsoon rains between 1 June 2009 to 4 August 2009 were 25% below normal.
The June-September rains are the main source of irrigation for farms and are crucial for Asia's third-largest economy as more than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.
As far as liquidity is concerned, the equity market is likely to be short of cash next week. The big bang IPO of NHPC, that closes on 12 August 2009, has already weakened equities by sucking investors' cash away from the secondary market.
The IPO of NHPC, state-run hydroelectric power generator, was fully subscribed within minutes of opening on Friday, 7 August 2009. This is the first IPO by a public sector company after the Congress-led United Progressive Alliance assumed office for a second term, this time with a decisive mandate. The NHPC IPO is a combination of fresh sale of shares by the company and a 5% divestment of stake by the government.
It is likely that in short term there will be diversion of funds from the secondary market to the new offerings. However, this factors will not diminish the prospects for shares in the secondary market in the long term. The market would rebound after consolidation, supported by an expected upward revision in earnings estimates for companies by brokerages after stronger-than-expected Q1 June 2009 results.
A leading US-based brokerage has raised India's equity market to 'overweight' from 'neutral' amid political stability and stepped-up economic reforms.