ABG to counter Bharati's bid for Great Offshore

The bidding war for Great Offshore ratcheted up a notch with ABG Shipyard saying it would come out with a counter-offer to rival Bharati Shipyard's offer of Rs 560 a share announced on Wednesday after it acquired 3.1 per cent from the open market to take its total holding to 22.4 per cent.

"We are definitely in the race to buy a controlling stake," said Dhananjay Datar, chief financial officer of ABG Shipyard. "The price and date of the counter offer will be decided later," he added.

Great Offshore is the target of a bidding war in which India's two largest private ship builders are trying to take control. On August 5, ABG Shipyard, the largest private sector shipbuilder, raised the open offer price for Great Offshore to Rs 520 from Rs 450 announced earlier.

This was the second increase in the open offer price by ABG in a week, even as it continued to buy shares from the open market to outbid its rival. ABG Shipyard's holding in Great Offshore reached 8.28 per cent.

Bharati Shipyard responded after over a month by increasing its stake for the second time on Wednesday.  Earlier, the company had revised its offer price from Rs 344 to Rs 405 a share.

Bharati acquired 14.89 per cent in Great Offshore in May, at a price of Rs 315 per share, from the latter's vice chairman and managing director, Vijay Sheth, by invoking shares he had pledged against a loan. This left Sheth with less than one per cent in the company and he lost control. According to the analysts, Bharati's primary interest in acquiring the stake was to save its order book.

Bharati is currently at an advantage because it is closer to the 26 per cent stake that  would give it veto power to block any board resolution. Counterbids from the rival companies continue as they await the mandatory approval for their respective open offers.

Bharati Shipyard's open offer was supposed to run from July 25 to August 13. But the company is yet to get approval from the Securities and Exchange Board of India. ABG Shipyard's open offer was to run from August 13 to September 1. It is also waiting for approval from the market regulator.

Great Offshore stock gained 0.3 per cent to Rs 566.7 a share on the Bombay Stock Exchange on Thursday. ABG Shipyard gained 0.3 per cent to Rs 266.1 and Bharati Shipyard gained 2.64 per cent to Rs 214 a share.

Ministry order kills pay rise hopes for IIT, IIM faculty

The Union Ministry of Human Resource Development (MHRD) has killed hopes of an immediate pay rise for the faculty of centrally funded technical institutions like the Indian Institutes of Technology (IITs), Indian Institutes of Management (IIMs) and Indian Institute of Science.

The Centre's modified order dated September 16 has only allowed for a pay increase for assistant professors after they complete three years of service but has ignored most other demands.

For the last few years, the IIT faculty associations have been disgruntled about their pay structures being too inadequate to attract quality faculty and had held protests earlier this month demanding higher compensation. The IITs had hoped that the Govardhan Committee report submitted this February — which recommended higher salaries for all technical education teachers — would help resolve the issue.

However the notified revised pay structure announced by HRD in early August was much lower than expectation. The remuneration for directors was fixed at Rs 80,000 for the IITs, IIMs, the Indian Institutes of Science Education and Research (IISc) in Bangalore and the National Institute of Industrial Engineering, which did not go down well. For, unlike the IIM professors who earn through consulting assignments, salary is an IIT professor's only income.

Faculty associations were also unhappy with an HRD clause that said there would be a 40 per cent cap on professors who are eligible to receive higher pay after six years in the post. Also, at assistant professor level, the ministry had notified qualifications of a minimum three years work experience and a PhD.

This meant that IITs were not be able to take fresh graduates or doctorates as permanent faculty members.

The IITs also found disparities in the pay structure between the University Grants Committee (UGC) system and the IITs. While a BTech-level assistant professor could start on Pay Band 3 in a university, at the IITs only PhDs joined this band on a contract basis and had to work for three years to become an associate professor.

The institutes also protested that the Central Pay Commission had given all employees of the Indian Space Research Organisation (Isro), Defence Research and Development Organisation have been given special additional pay ranging from about Rs 2,000 per month to about 10 per cent of basic pay as a special grant for special achievements. Premier educational institutions, on the other hand, had not been granted any such special treatment for the highly-valued brands they have created, including mentoring new IITs.

Other demands included that the professional development allowance of Rs 300,000 (for international/national conferences, contingencies, membership fees) be increased to Rs 500,000 for a block of three years; that the 'lecturer' position be abolished and lecturers re-designated 'assistant professors' at an appropriate scale; and that the recruitment of faculty with PhD degrees with less than three years of experience start with a minimum pay of Rs 30,000 and academic grade pay of Rs 8,000.

The IITs had also demanded a scholastic pay of Rs 15,000 per month to attract fresh PhD scholars into the teaching profession. This special pay is expected to compensate the IIT faculty for the "notional" financial loss they incur compared to people of comparable qualifications in other sectors.

Discontent over pay packages have been building up for some weeks.  In early September,  faculty at some IITs staged protests -- including going on mass casual leave -- against the new pay regime passed by the Union Cabinet last month based on the recommendations of the Goverdhan Mehta Committee report which was submitted in February.

The All India IIT Faculty Federation (AIITFF) temporarily suspended its agitation on September 5 after a meeting with Union HRD Minister Kapil Sibal suggested that the issue would be resolved, though there were no assurances from ministry.

Faculty members of the institutions view the ministry's failure to consider lifting the 40 per cent cap on tenured faculty members as a major lapse.

"There has been hardly any modification in the current notification as none of our major demands have been met. At least the ministry should not have overlooked the pay rise for senior faculty members as they will eventually be at par with the faculty of other universities which fall under UGC," rued a senior faculty member at IIM-A, which had submitted a memorandum to the ministry earlier this month.

"We reiterate the fact that IIM and IIT professors spend more years working to get to these premier institutes and deserve a better pay based on their performance. This way, we will only lose better faculty to the industry," he added.

Today, the faculty association at IIT Madras held a meeting with its members to decide the next course of action. "We were a little relieved that the demand for the pay of assistant professors has but many other factors were not considered. After discussing with our faculty members we will speak to other IITs and take the necessary steps," said a faculty member at IIT Madras.

The IIMs, meanwhile, are yet to react, but the Indian Institute of Science, Bangalore faculty association has decided to hold a meeting, probably on September 22, to discuss the issue. "We had submitted four or five major issues in our memorandum to the HRD ministry of which one has been tackled. We will take a decision on what to do next in consultation with our members," said J Nagaraju, president of the IISc faculty association.

Copper drops

Prices shed gains as inventories soar
Copper prices slipped on Thursday, 17 September, 2009 at Comex and LME. Prices fell today following two previous sessions of rise. Prices slipped due to rising inventories at LME.
At USA, copper futures for December delivery fell 3 cents (1%) to 2.9 a pound. Copper fell 0.7% last week. Copper ended August, 2009, higher by 7%.
On the London Metal Exchange, copper for delivery in three months ended lower by $35 (0.6%) at $6,385 a metric ton. On 3 July, 2008, prices had touched an all time intra day high of $8,940.
After August, it was the eighth straight monthly gain for copper. Prices gained 23% in the second quarter. On a year to date basis, prices are higher by 95.5%.
The U.S. buys about 13% of the 17 million metric tons of copper sold annually and China buys about 20%.
As per latest report, stockpiles tallied by the London Metal Exchange expanded for a 14th day to 323,225 metric tons yesterday, the highest level since 26 May, 2009. Copper inventories in Shanghai climbed for a seventh week last week to a two-year high of 97,396 tons.
The dollar, which has served as a safe-haven asset over the past year because of its low yield, fell earlier today. But then, it reversed its course. The dollar index, which measures the strength of dollar against a basket of other currencies, rose by 0.4%.
In FY 2008, copper prices dropped by 54%. Prior to 2008, copper prices ended FY 2007 with a gain of mere 5.5% after a whopping 44% gain in FY 2006. The price of copper gained every year since 2002 as global economic growth boosted demand for the metal used in pipes and wires.
At the MCX, copper for November delivery closed at Rs 308.25/Kg. The closing price was Rs 5.05/Kg (1.61%) lower than previous closing price. Prices rose to a high of Rs 313.2/ Kg and fell to a low of Rs 307.35/Kg during the day's trading.
Among other metals traded in the LME on Thursday, lead rose 1.2% to $2,320 a ton and zinc fell 0.3% to end at $1,830 a ton. Nickel rose 1.7% to end at $17,599. Aluminium rose 0.7% to $1,940 a ton.

Daily News Roundup - Sep 18 2009

Reliance Industries-owned Petroleum Trust gained Rs31.9bn through the sale of 15mn treasury shares of RIL at Rs2,125. (BL)
Gas allocation for Ratnagiri Gas & Power Pvt Ltd’s from Reliance Industries KG-D6 block has been more than doubled to 5.67mmscmd. (BL)
NTPC will invest Rs177bn in the current financial year to add 3,300 MW of generation capacity. (BL)
ONGC expects to complete awarding contracts for B-193 cluster of marginal fields by early November. (BL)
Mahindra Satyam is close to getting back multi-million multi-year contracts from Telstra and Merrill. (BS)
Ten days after the West Bengal Government cancelled land allotment to Infosys and Wipro, the Government has now offered alternative plots of 45 acres each to the two IT majors. (BL)
Wipro is eyeing about Rs7bn from Government projects in the current fiscal. (BL)
HCL Technologies has bagged IT infrastructure management contracts worth US$113mn from Energy Future Holdings Corp (EFH), a Texas-based, privately-held energy company and Oncor, a listed subsidiary of EFH. (BL)
Patni targets 6% revenue from domestic market by 2012. (BS)
SBI is looking at acquisitions of up to US$1bn in UK and expected to maintain a 40% growth rate in its UK business. (BS)
Thermax has bagged an order for the turnkey project worth Rs10bn for supply of a 270 MW power plant being set up by a Hyderabad-based infrastructure company. (BL)
Hero Honda has decided to expand its Haridwar manufacturing facility after resolving issues with the State Infrastructure and Industrial Development Corporation of Uttarakhand Ltd (Sidcul) to retain its hold over the 94 acres of vacant land. (BS)
Nalco aims to scale up its annual business turnover from Rs60bn at present to Rs100bn in the next five years. (BS)
Ranbaxy Laboratories has entered into an in-licensing agreement with South Korea’s Medy-Tox Inc for marketing its anti-ageing cosmetic product Neuronox in India. (BL)
Alstom and its consortium partners have signed a contract worth Rs5.6bn with Bangalore Metro Rail Corporation Ltd (BMRCL) to supply signalling system for the first two lines of the new Bangalore metro system. (BS)
SBI plans to increase share of its profit from overseas operation to 10% as against 8% currently. (ET)
Bharti-MTN deal stalled by Indian law, says President of South Africa. (FE)
ACC has planned a capex of Rs14bn to expand its capacity to 30mtpa by 2010 end. (ET)
ACC to raise Rs3bn to retire debt. (ET)
South Africa based Millicom rejects BSNL bid; Bharti Airtel still in fray. (ET)
Axis Bank has opened its QIP and GDR issue to raise up to US$1bn. (ET)
Raymond has announced plans to enter real-estate business to capitalize on surplus land. (ET)
HCL Technologies has bagged two five year contracts worth US$110mn. (ET)
Glaxo may pick up 5% in Dr.Reddy’s for Rs7.3bn. (ET)
ABG Shipyard may revise Great Offshore bid price. (ET)
Century Textile moves Bombay High Court against Bombay Dyeing over a land dispute. (ET)
IDFC and Kribhco buy 5% each in Indian commodity exchange jointly promoted by Indiabulls and MMTC. (ET)
Aban Offshore plans to raise Rs44.2bn via ADR, GDR or QIP issue. (ET)
Dabur plans to launch OTC drugs. (BS)
AIG to sell its 26% stake in Tata AIG life insurance JV to its Indian partner. (FE)
Coal India to get prospecting license for Mozambique coal blocks soon. (BS)
Genpact and Blackstone are the frontrunners to buy majority stake in WNS. (ET)
UBS in talks with Genpact Cognizant to sell captive IT business and KPO operations in India. (ET)
Inflation for week ended September 5 stood at 0.12%; in positive after 13 weeks. (ET)
Divestment PSU to continue says PM. (ET)
CERC announces tariff norms for renewable energy sector. (ET)
CNIE has raised it FY10 GDP forecast to 5.9% from 5.8%. (ET)
RBI issues draft norms for REPO in corporate debt securities. (FE)
Rainfall deficit has increased from 20% in early September to 21% on September 16. (BL)
Steel imports in July surged 94% to 561,000 tons against 289,000 tons. (BL)
The World Bank has agreed to provide a US$3bn loan for developing national highways in India. (BS)
Government extends stock limits on sugar, pulses, rice and oil seeds upto September 2010. (ET)
As per the US Foreign Agricultural Service, rice output in India will decline 7% more than forecast next year because of a drought in the main growing regions. (BS)

And miles to go…

If all difficulties were known at the outset of a long journey, most of us would never start out at all.

We’ve bounced back from the bear market lows to reclaim a milestone. But, we are still a long way away from the all-time highs. The question now is how would the journey ahead be? There are no easy answers, though on the whole, the mood seems to be upbeat. The real test for all will be when the steroid (stimulus) is gradually withdrawn. For now, everything looks bright and beautiful so may as well enjoy it.

All the bad news seems to have been discounted and the concerns are being overlooked temporarily. The fact is we went down hard and have rebounded. The worry is whether the ascent can continue at the same pace without major reversals. Stocks could gain further ground if the pace of liquidity gush persists. Among the potential headwinds are: inflation, interest rates, uncertainty over the external environment and lofty valuations.

Today, we see another day of stock taking and consolidation. Global cues too are indecisive. Our advice is don’t get too euphoric. Avoid undue risks and enjoy the long weekend. The upcoming earnings season should provide an opportunity to assess and evaluate. The advance tax numbers do point to a healthy states of affairs for India Inc over the year-ago period. But, in most cases this could be a result of cost cutting and not due to any meaningful gains on the demand side. That will take some more time to materialise. As always there will be surprises, both negative and positive. So, brace yourself for some volatility in the near term at least.

US stocks ended slightly down on Thursday as sales from FedEx and Oracle missed analysts’ estimates. Investors struggled to balance hopes for an economic recovery with fears that equities have surged too far, too fast.

The Dow Jones Industrial Average lost 8 points, or 0.1%, at 9,783.92 after ending the previous session at its highest point since last Oct. 6. The S&P 500 index fell about 3 points, or 0.3%, at 1,065.49 after ending the previous session at its highest point since Oct. 3 of last year.

The Nasdaq Composite lost 6 points, or 0.3%, at 2,126.75 after closing at its highest point since last Sept. 26.

The three major US indexes have ended higher in 8 of the last 10 sessions.

US stocks surged to almost one-year highs on Wednesday on continued optimism about the economy. Thursday brought new reports supporting hopes that a recovery is holding firm, but investors turned cautious after the recent spurt.

US stocks have surged over the last six months as investors have welcomed a string of improving economic news and better than expected corporate earnings. Since bottoming at a 12-year low in March, the Dow has gained about 50% and the S&P 500 is up 58%, as of Wednesday's close. Since bottoming at a six-year low, the Nasdaq has advanced 68%.

Trading could be volatile and volume could be higher through the quarterly options expiration on Friday when stock index futures and options, and individual stock futures and options all expire at the same time.

The number of Americans filing new claims for unemployment fell last week to 545,000 from a revised 557,000 in the previous week, the Labor Department reported Thursday morning. Economists forecast that claims would rise modestly. Continuing claims, a measure of Americans who have been filing claims for unemployment for a week or more, rose to 6.23 million versus forecasts for a rise to 6.1 million.

A rise in apartment construction helped push August housing starts to the highest point in roughly nine months, the Commerce Department reported. Starts rose 1.5% to an annual unit rate of 598,000 from a revised 589,000 in July, the government said. That was in line with economists' forecasts.

Building permits, a measure of builder confidence, rose 2.7% to 579,000 from a revised 564,000 in July.

The Philadelphia Fed index rose to a 27-month high in September, adding to other evidence that the manufacturing sector is recovering. The index, a regional read on manufacturing, rose to 14.1 in September from 4.2 previously. Economists thought it would rise to 8, on average.

FedEx said fiscal first-quarter earnings fell 53% from a year ago, meeting the forecast it issued last week. The package delivery firm reported weaker earnings that met forecasts on lower revenue that was shy of expectations. Shares fell 2.2%.

Oracle reported weaker quarterly revenue that missed forecasts late on Wednesday. The software maker also reported higher quarterly earnings of 30 cents per share that were in line with forecasts. Shares fell 2.8%.

American Airlines parent AMR said it raised $2.9 billion, including cash and financing. The airline also said it will shift some flights to more profitable hubs such as Chicago and New York and away from St. Louis and other places. Shares rose almost 20%.

The dollar hit a fresh 9-month low against the euro and bounced after hitting a 7-month low against the yen. The falling greenback has been lifting dollar-traded commodities including oil and gold lately, but prices were muted on Thursday.

US light crude oil for October delivery fell 4 cents to settle at $72.47 a barrel on the New York Mercantile Exchange.

COMEX gold for December delivery fell $6.70 to $1,013.50 an ounce after settling Wednesday at a record high of $1,020.20.

Treasury prices gained, lowering the yield on the benchmark 10-year note to 3.40% from 3.46% on Wednesday.

European shares rose for third straight session and the tenth time in eleven days. After gaining 1.4% in the previous session, the pan-European Dow Jones Stoxx 600 rose 0.5% to 246.15, another fresh 2009 high.

Advancers far outnumbered decliners in London, Frankfurt and Paris, with gainers in particular in the aviation sector.

The UK's FTSE 100 index rose 0.8% to 5,163.95, the German DAX index climbed 0.5% to 5,731.14 and the French CAC-40 index was up 0.6% to 3,835.27.

It was a momentous day for the Indian markets as NSE Nifty hit the 5,000 levels for the first time since May 23, 2008. Bulls were indeed in high spirits in the morning trades led by firm global cues and buying witnessed all over. However, the joy was very short lived as index heavyweight Reliance Industries fell over 5% dragging the index by 103 points single handedly. Sentiments further got a hit after inflation broke in to positive territory fir the first time in 13-weeks.

The BSE Sensex fell nearly 110 points while, the NSE Nifty gave away nearly 40 points from their respective intra-day high’s.

Aviation stocks were in the linelight led by Jet Airways on speculation taxes on jet fuel may be cut. Shares of Jet Airways shot up by over 18% to end at Rs315, Kingfisher Airlines rallied by over 12% to end at Rs53 and Spice Jet surged over 7% to end at Rs33.6.

The BSE Sensex advanced 34 points or 0.2% at 16,711 after touching a high of 16,820 and a low of 16,636. The index opened at 16,686 against the previous close of 16,677. The NSE Nifty was up 7 points to shut shop at 4,965.

In Asia, the Nikkei in Japan gained by 1.7% at 10,443 while Australia's S&P/ASX ended higher by 1.4% at 4,714. The Hang Seng index in Hong Kong gained 1.7% at 21,768. Shanghai SE Composite in China gained by 2% at 3,060.

In Europe, stocks were in the green. The FTSE in the UK was up 0.9%, The DAX in Germany was up 0.6% and the CAC 40 index in France gained 0.6%.

Coming back to India, among the BSE sectoral indices, the Teck index was the top gainer, gaining 2%, followed by the IT index that was up 2%. The BSE Auto index up 1.5% and the BSE Bankex index was up 0.8%.

The BSE Mid-Cap index gained 0.3% and the BSE Small-Cap index gained 0.2%.

Among the 30-components of Sensex, 22 stocks ended in the green and 8 ended in the negative terrain. Among the major gainers were Hindalco, ACC, JP Associates, Bharti, Maruti and Grasim.

On the other hand, Reliance Industries, Tata steel, ITC, NTPC and Hero Honda were among the major laggards.

Outside the frontline indices, the big gainers in the broader market were Jet Airways, Proctor & Gamble, Essar Oil, HCL Tech and Indian Hotels. On the other hand, losers included EIH Ltd, EKC, Godrej Ind, IFCI and LIC Housing Fin.

India’s Inflation broke in to the positive terrain for the first time in over 12 months. The annual rate of inflation stood at 0.12% for the week ended August 5, 2009 over as compared to -0.12% for the previous week July 29, 2009 and 12.42% during the corresponding week August 06, 2008 of the previous year. The government announced that it revised inflation for week ended July 11 to -0.63% from -1.17%.

Reliance Industries announced that Petroleum Trust sold 10.5mn equity shares of the Company. Reliance Industrial Investments and Holdings Ltd, a wholly owned subsidiary of Reliance, is the sole beneficiary of the Trust.

The Trust will realize approximately Rs31.88bn, at an average price of about Rs2,125 per share. The shares are carried in the books at a cost of Rs158 per share by the Trust.

Petroleum Trust is a special purpose vehicle created for Reliance Industries holding in the earlier Reliance Petroleum when the company merged the latter with itself some seven years ago. The stake of the Trust rose again when IPCL merged with RIL.

DSP Merrill Lynch Limited and Citigroup Global Markets India Private Limited acted as joint arrangers for the seller.

Shares of Reliance Industries lost over 4.5% to Rs2086. The stock opened at Rs2169 and made an intra-day high of Rs2204 and a low of Rs2070. Total traded volumes stood at 10.2mn shares.

BHEL plans to spend Rs15.9bn to expand capacity to produce equipment capable of generating 20,000MW by March 2012.

Shares of BHEL ended flat at Rs2275. The stock opened at Rs2294 and made an intra-day high of Rs2314 and a low of Rs2265. Total traded volumes stood at 0.13mn shares.

Shares of Bharati Shipyard surged by over 2.6% to Rs214 after the company picked up an additional 3.01% stake, raising its holding to 22.48% for an amount of ~Rs3.05bn on acquiring its 22.48% stake in Great Offshore.

Bharati acquired 1.11mn shares at an average Rs558.81 per share through Dhanshree Properties Pvt. Ltd, a Bharati Shipyard unit, for a total of Rs624mn.

ABG Shipyard had proposed an open offer of Rs520 per share on August 5, 2009 for Great Offshore to lift its 7.87% stake.

Shares of Petronet LNG gained by 2.5% to Rs76.2 after the company announced its plans to raise Rs50bn in debt to build power plants. The company plans to borrow money from overseas and local banks by the end of 2010, Managing Director P. Dasgupta said. The company may raise an additional Rs20bn in 2011, selling shares to existing investors.

Petronet’s planned power plants will be built adjacent to its import terminals at Dahej in Gujarat state in western India and Kochi in the southern state of Kerala.

The plants will have the capacity to generate 1,200MW of electricity and may be completed in 2012.

Shares of Thermax advanced by 3.5% to end at Rs525 after the company announced its entry into the independent power producer segment by bagging an order worth Rs10.01bn for the turnkey supply of a 270 MW power plant being set up by a Hyderabad based Infrastructure Company.

The boilers for this project will be manufactured by Thermax using the circulating fluidized bed combustion (CFBC) technology Licensed from Babcock & Wilcox, USA.

Shares of Raymond were locked at 10% upper circuit to end at Rs204.85 after the company announced that the board of directors approved the proposal for commencement of Realty Development as new business.

Shares of Alstom Projects surged over 4% to Rs544 after the company and its *consortium partners have signed a signaling equipment and services contract worth Rs1.87bn with the Bangalore Metro Rail Corporation Ltd (Â"BMRCL") for the first two lines of the new Bangalore metro system in India.

(*The consortium is led by ALSTOM Projects India Ltd and composed of ALSTOM Transport SA (ATSA), Thales Security Solutions and Services and Sumitomo Corporation).
The contract also has a provision for BMRCL to exercise a firm option of value Rs1.41bn (out of which Alstom’s share is Rs500mn) within 15 days of the base contract coming into effect.

Precious metals turn pale

Prices drop as dollar strengthens
Precious metal prices gave up earlier gains and ended lower on Thursday, 17 September, 2009. Prices fell today as dollar erased earlier losses and firmed up at the end.
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 Thursday, gold for December delivery ended at $1013.5, lower by $6.7 (0.6%) an ounce on the New York Mercantile Exchange. During intra day trading, it rose to a high of $1,025.8. Last week, gold ended higher by 1%. Year to date, gold prices are higher by 15.8%.
Gold ended August, 2009 higher by 0.2%. Before this, for the second quarter, gold ended higher by 0.5%. The metal had gained 4.3% in the first quarter of this year.
On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (2%) since then.
On Thursday, Comex silver futures for December delivery fell 16 cents (0.9%) to $17.27 an ounce. Last week, silver ended higher by 2.5%.
Silver ended 7.1% higher for August, 2009. For second quarter, silver rose 4.5%. Year to date, silver has climbed 49.6% this year. For 2008, silver had lost 24%.
The dollar, which has served as a safe-haven asset over the past year because of its low yield, fell earlier today. But then, it reversed its course. The dollar index, which measures the strength of dollar against a basket of other currencies, rose by 0.4%.
The Labor Department in US reported on Thursday, 17 September, 2009 that The number of people filing for state unemployment benefits for the first time fell 12,000 to a seasonally adjusted 545,000 last week, the lowest since mid-July, 2009. The number of people claiming benefits of any kind was 9.53 million, not seasonally adjusted.
The Commerce Department reported on Thursday, 17 September, 2009 that construction of new single-family homes and apartments accelerated in August to the strongest pace in nine months. Total housing starts rose 1.5% to a seasonally adjusted annual rate of 598,000, the highest figure since November 2008.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
At the MCX, gold prices for October delivery closed lower by Rs 56 (0.35%) at Rs 15,852 per 10 grams. Prices rose to a high of Rs 15,971 per 10 grams and fell to a low of Rs 15,820 per 10 grams during the day's trading.
At the MCX, silver prices for December delivery closed Rs 167 (0.6%) lower at Rs 27,455/Kg. Prices opened at Rs 27,645/kg and fell to a low of Rs 27,415/Kg during the day's trading.

Crude registers marginal drop

Prices erase earlier gains as dollar firms up
Crude prices ended little lower at Nymex on Thursday, 17 September, 2009. Prices went up earlier today but then dropped following dollar's gains.
On Thursday, crude-oil futures for light sweet crude for October delivery closed at $72.47/barrel (lower by $0.04 or 0.1%). During intra day trading, it rose to a high of $73.16 and also fell to a low of $70.4/barrel. Last week, crude ended higher by 1.9%.
For the month of August, 2009, crude ended higher by a marginal 0.7%. For the second quarter, crude ended higher by 40%. Crude prices had rallied 11.3% in the first quarter of 2009.
Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 53% since then. Year to date, in 2009, crude prices are higher by 52%.
The dollar, which has served as a safe-haven asset over the past year because of its low yield, fell earlier today. But then, it reversed its course. The dollar index, which measures the strength of dollar against a basket of other currencies, rose by 0.4%.
The Labor Department in US reported on Thursday, 17 September, 2009 that The number of people filing for state unemployment benefits for the first time fell 12,000 to a seasonally adjusted 545,000 last week, the lowest since mid-July, 2009. The number of people claiming benefits of any kind was 9.53 million, not seasonally adjusted.
The Commerce Department reported on Thursday, 17 September, 2009 that construction of new single-family homes and apartments accelerated in August to the strongest pace in nine months. Total housing starts rose 1.5% to a seasonally adjusted annual rate of 598,000, the highest figure since November 2008.
In the latest weekly inventory report, EIA reported yesterday a bigger-than-expected drop of 4.7 million barrels in U.S. stockpiles of crude oil in the week ended 11 September, 2009.
Also on Thursday, gasoline for October delivery 0.17 cents to $1.85 a gallon, while October heating oil for October delivery rose 1% to $1.84 a barrel
Natural gas also gave back some of the prior session's gains. The October contract fell 8% to finish at $3.46 per British thermal units. It briefly jumped 2% after the Energy Department reported a smaller-than-expected increase of U.S. gas in storage in the week ended 11 September.
Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
At the MCX, crude oil for September delivery closed higher by Rs 18 (0.51%) at Rs 3,487/barrel. Natural gas for September delivery closed higher by Rs 1.5 (0.9%) at Rs 173.6/mmbtu.

Nifty touches 5000

The key indices today touched new record highs with the Nifty touching the high of 5003 and the Sensex crossing its 16820 level again. However selling of 1.5 crore shares by Reliance Industries kept the mood subdued. The market resumed at 16686 marginally up on firm global cues. While the mood remained upbeat on strong buying in teck, information technology (IT) and auto stocks. The market witnessed a steady decline towards the closing hours to slip and touched an intra-day low of 16636. The Sensex finally closed the session with marginal gains of 34 points at 16711, while the Nifty ended the session by adding 7 points at 4965.
The number of declining shares was more than advancing shares. On the BSE 1,223 stocks advanced, while 1,574 stocks declined. Teck, IT and auto stocks saw buying interest with BSE Tech, BSE IT and BSE Auto rising by 1.92%, 1.91% and 1.46% respectively. Oil & gas and realty scrips were down with BSE Oil & Gas and BSE Realty down by 2.86% and 0.91% respectively.
Among major gainers, ACC flared 3.65% to Rs827.95, Hindalco Industries added 3.62% to Rs136.05, Jaiprakash Associates shot up by 3.28% to Rs247.40, Bharti Airtel rose 3.13% to Rs433.15, Maruti Suzuki India moved up 3.08% to Rs1,559.35, Grasim Industries advanced 2.89% to Rs2769.65 and Wipro scaled 2.02% to Rs566.10. Among the scrips that were hit were Reliance Industries that dropped 4.45% to Rs2086.35, Tata Steel that slipped 1.97% to Rs521.15 and ITC that shed 1.02% to quote at Rs228.60.
Teck stocks saw strong buying interest. Patni Computer Systems flared 7.53% to Rs458.90, HCL Technologies rose 6.12% to Rs341.70, Tata Tele Service scaled up 5.41% to Rs35.05, Tanla Solution added 3.65% to trade at Rs69.50 and Bharti Airtel rose 3.13% to Rs433.15. However Financial Technologies slipped 1.86% to Rs1,384.80, NDTV lost 1.84% to quote at Rs163.05 and Television Eighteen India shed 1.77% to trade at Rs105.35.
Kingfisher Airlines shares was the most actively traded share with over 2.37 crore shares changing hands on the BSE followed by Spicejet (2.18 crore shares), NHPC (1.60 crore shares), Reliance Industries (1.29 crore shares) and Unitech (1.27 crore shares).

Post Session Commentary - Sep 17 2009

The market erased most of its initial gains to end the volatile session on the flat note as profit booking emerged during the trading. Shares of Reliance Industries contributed to drag the market lower as it closed with loss of more than 4%. Investors took calculative steps on fears of rise in interest rates that over looked the RBI’s statement that the central bank will not hike interest rates before economic recovery will come on track. Fears of rise in rates surfaced on account of increasing inflationary pressure. India’s inflation came in at 0.12% in week ended 5th September 2009, as against -0.12% in the previous week. Earlier during initial trading, market exhibited gains on positive global cues as Asian market ended in with good gains and European markets were in green. However rally was brief and selling pressure lugged the domestic bourses. The BSE Sensex ended around 6,700 level and NSE Nifty closed around 4,960 mark.
Market opened on upbeat note tracking firm cues from the global markets. The US markets closed with handsome gains on Wednesday, on strong economic data and firm cues from markets all over the world. Stocks rallied after industrial production increased 0.8% in August for second straight month, which is better than expected. In addition weakness in dollar boosted industrial and commodity stocks. Further, Indian benchmark managed to sustain the momentum till mid session and further pared most of the gains. Stocks continued to move between positive and negative terrain till end, on continuous bouts of buying and selling. From the Teck, IT, Auto, Bank and Consumer Durable stocks contributed to most of the buying. BSE Mid Caps and Small Caps stocks also remained on buyers’ radar. However, most of the selling was seen in Oil & Gas, Realty, PSU and Metal stocks.
Among the Sensex pack 22 stocks ended in green territory and 8 in red territory. The market breadth indicating the overall health of the market remained negative as 1574 stocks closed in red while 1223 stocks closed in green and 91 stocks remained unchanged in BSE.
The BSE Sensex closed marginally higher by 34.07 points at 16,711.11 and NSE Nifty ended slightly up by 7.15 points at 4,965.55. BSE Mid Caps and Small Caps closed with gains of 16.70 and 9.39 points at 6,143.62 and 7,317.50 respectively. The BSE Sensex touched intraday high of 16,820.02 and intraday low of 16,636.55.
Gainers from the BSE Sensex pack are ACC Ltd (3.65%), Hindalco (3.62%), JP Associates (3.28%), Bharti Airtel (3.13%), Maruti Suzuki (3.08%), Grasim Industries (2.89%), Wipro Ltd (2.02%), Infosys Tech (1.87%), TCS Ltd (1.69%), HDFC Bank (1.44%), HUL (1.26%), M&M Ltd (1.25%), RCom (0.99%), ONGC Ltd (0.99%), L&T Ltd (0.89%) and SBI (0.82%),
Losers from the BSE Sensex pack are Reliance (4.45%), Tata Steel (1.97%), ITC Ltd (1.02%), NTPC Ltd (0.71%), Herohonda Motors (0.65%) and Reliance Infra (0.42%).
The inflation finally pulled back into the positive territory for the first time since 30th May 2009. It remained in negative zone for 13 consecutive weeks. India’s inflation came in at 0.12% in week ended 5th September 2009, as against -0.12% in the previous week. Meanwhile, the rate was 12.42% in the corresponding week of previous year. The rate turned negative for the week ended 6th June 2009, for the first time since the new wholesale price index (WPI) series started in 1995. Inflation touched a high of 12.91% for the week ended 2nd August 2008 and touched a low of -1.74% on 1st August 2009.
On the global markets front, the Asian markets that opened before the Indian market, ended higher due to better economic data that raised hopes of strengthening of global economic recovery. Moreover, the Bank of Japan hold the key policy rate steady at 0.1% and moreover raised its assessment of the economy. Shanghai Composite, Hang Seng, Nikkei 225 and Seoul Composite closed up by 60.55, 365.59, 173.03 and 12.12 points at 3,060.26, 21,768.51, 10,443.80 and 1,695.47 respectively. However, Singapore''s Straits Times Index lost 1.82 points at 2,672.6 respectively.
European markets, which opened after the Indian market, are trading in green tracking Wall Street gains overnight.. In Paris the CAC 40 is higher by 18.86 points at 3,832.65, in Frankfurt DAX index is trading up by 33.16 points at 5,733.42 and in London FTSE 100 is trading higher 40.21 points at 5,164.34.
The BSE Teck index ended up by (1.92%) or 61.56 points 3,265.42. Gainers are Patni Computer (7.53%), HCL Teck (6.12%), Tata Teleservices (5.41%), Tanla (3.65%) and Bharti Airtel (3.13%).
The BSE IT index ended higher by (1.91%) or 85.40 points at 4,548.17 on strong US economic data. Gainers are Patni Computer (7.53%), HCL Teck (6.12%), Rolta India (2.89%), Wipro Ltd (2.02%) and Infosys Tech (1.87%).
The BSE Auto index gained (1.46%) or 93.36 points 6,467.21. Amtek Auto (14.58%), Cummins Indi (4.99%), Bharat Forge (4.35%), Maruti Suzuki (3.08%), and Exide Industries (2.97%) ended in green.
The BSE Oil & Gas index lost (2.86%) or 296.39 points at 10,079.36 after crude oil futures prices settled at their highest level this month overnight, as BPCL (4.99%), HPCL (4.98%), Reliance (4.45%), Reliance Pet (3.96%) and Gail India (0.69%) closed in negative terrain.
The BSE Realty index closed lower by (0.91%) or 40.74 points at 4,416.33. Losers are Unitech Ltd (3.04%), Pheonix Mill (2.39%), Pheonix Mill (2.39%), Indiabull Real (2.13%) and Penland Ltd (1.66%).
The BSE PSU index dropped by (0.35%) or 31.13 points at 8,756.75. Main losers are BPCL (4.99%), HPCL (4.98%), Power Finance (1.96%), J&K Bank (1.87%) and Bank Maha (1.70%).
Reliance Industries Ltd fell 4.45% after the company said that Petroleum Trust sold its 1.5 crore equity shares in the company.
Ranbaxy Laboratories Limited lost 1.17%. The company has entered into a strategic in-licensing agreement for the Indian market, with Medy-Tox Inc, (Medy-Tox), South Korea''s largest Botulinum -Toxin specialized Biotech Venture, for its cosmetic product, Neuronox.
ALSTOM ended up by 4.02%. The company and its consortium partners have signed a contract to supply the signalling system with the Bangalore Metro Rail Corporation Ltd for the first two lines of the new Bangalore metro system in India. Both lines will enter into revenue services in September 2012.
Great Offshore Ltd improved 0.30% after Bharati Shipyard hiked its stake in the offshore oil services firm to 22.5% by picking up additional 3.01% shares from the market.
TVS Motor Company Ltd dropped by 2.46% despite the Supreme Court yesterday allowed the company to sell its twin spark Flame motor bikes against a legal battle with larger rival Bajaj Auto.

BSE Bulk Deals to Watch - Sep 17 2009

17/9/2009 531486 FILMCIT MEDI BALDEVSINH VIJAYSINH ZALA B 1762300 1.04
17/9/2009 531486 FILMCIT MEDI WELLNESS COMMUNICATION (P) LTD S 1800000 1.04
17/9/2009 532990 GMR FERRO BINDU KUMARI B 111813 39.37
17/9/2009 532990 GMR FERRO ANKIT MITTAL B 77418 38.62
17/9/2009 532990 GMR FERRO SUNITA BANSAL B 69020 37.98
17/9/2009 532990 GMR FERRO SUNITA BANSAL S 69020 37.81
17/9/2009 532990 GMR FERRO BINDU KUMARI S 111813 39.25
17/9/2009 532990 GMR FERRO ARCADIA SHARE & STOCK BROKERS PVT. LTD S 69374 37.62
17/9/2009 532990 GMR FERRO ANKIT MITTAL S 77418 38.83
17/9/2009 506522 J L MORISO I RATNABALI CAPITAL MARKETS LIMITED B 17000 419.39
17/9/2009 506522 J L MORISO I JAIDEEP HALWASIYA S 15000 420.00
17/9/2009 523467 JAI MATA GLA MOTI LAL BHASIN S 24564 7.16
17/9/2009 511131 KAMAN HSG NISHA SUMANJAIN B 110000 40.41
17/9/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. B 87513 6.88
17/9/2009 530255 KAY POW PAP ANKIT KUMAR GUPTA B 59500 6.58
17/9/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. S 87513 6.78
17/9/2009 530255 KAY POW PAP NARENDER GUPTA S 68400 6.55
17/9/2009 530255 KAY POW PAP ANKIT KUMAR GUPTA S 59500 6.91
17/9/2009 530255 KAY POW PAP GIRRAJ PRASAD GUPTA S 70000 6.53
17/9/2009 532747 KFA GENUINE STOCK BROKERS PVT. LTD. B 3159073 52.70
17/9/2009 532747 KFA GENUINE STOCK BROKERS PVT. LTD. S 3159073 52.77
17/9/2009 509048 LANCOR HOLDS SHEKAR VISWANATH RAJAMANI B 110000 84.78
17/9/2009 507912 LKP FIN SUNITA BANSAL B 84553 144.64
17/9/2009 531528 MAARS SOFTWR SPM FINANCIAL ADVISORY SERVICES PVT LTD B 860000 3.70
17/9/2009 531528 MAARS SOFTWR SPM FINANCIAL ADVISORY SERVICES PVT LTD S 960000 3.66
17/9/2009 532896 MAGNUM VENT NIRAJ HARSUKH SANGHVI B 197018 13.41
17/9/2009 532896 MAGNUM VENT NIRAJ HARSUKH SANGHVI S 197018 12.96
17/9/2009 590011 MOVING PICTU-PMS SAMBA SIVARAO CINAGANTI B 50000 5.94
17/9/2009 590011 MOVING PICTU-PMS MUPPA VENKAIAH B 50000 5.91
17/9/2009 590011 MOVING PICTU-PMS ANAND KUMAR DAGA S 50000 5.72
17/9/2009 532045 NEXXOFT INFO PRAVIN DEEPSINH CHAVDA S 58052 17.14
17/9/2009 532045 NEXXOFT INFO RAJENDRASURI FINANCIAL SERVICES GUJARAT PRIVATE LIMITED S 46372 17.30
17/9/2009 524372 ORCHID CHEM GENUINE STOCK BROKERS PVT. LTD. B 619529 166.24
17/9/2009 524372 ORCHID CHEM OPG SECURITIES P LTD B 764741 165.88
17/9/2009 524372 ORCHID CHEM GENUINE STOCK BROKERS PVT. LTD. S 619529 166.25
17/9/2009 524372 ORCHID CHEM OPG SECURITIES P LTD S 764741 166.09
17/9/2009 511702 PARSHART INV KRUNAL GOPALDAS RANA B 19500 15.50
17/9/2009 511702 PARSHART INV JOSHI KIRTIKUMAR M S 19000 15.17
17/9/2009 526247 PREM EXPLOSI WEALTH BRIDGE CAPITAL ADVISORS P LTD B 50000 68.46
17/9/2009 590077 RANKLIN SOLU ARPIT SHARE BROKERS PRIVATE LIMITED B 25300 40.25
17/9/2009 590077 RANKLIN SOLU SRIKANTH MIKKILINENI S 25520 40.28
17/9/2009 531646 RFL INTERNAT RAHUL ANANTRAI MEHTA B 42711 1.51
17/9/2009 506172 SAMPADA CHEM THE PREMIER COMMERCIAL COPVT LTD S 45000 26.11
17/9/2009 530073 SANGHVI MOV RISHI CHANDRAKANT SANGHVI B 800000 181.50
17/9/2009 530073 SANGHVI MOV MINA CHANDRAKANT SANGHAVI S 800000 181.50
17/9/2009 532886 SEL MANUF RITU SALUJA S 161050 70.98
17/9/2009 512413 SPECTACLE BHARAT SHANTILAL THAKKAR B 408073 55.79
17/9/2009 512413 SPECTACLE BHARAT SHANTILAL THAKKAR S 405819 55.94
17/9/2009 500285 SPICEJET LTD CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED B 3680000 34.41
17/9/2009 500285 SPICEJET LTD JMP SECURITIES PVT LTD B 1902532 36.13
17/9/2009 500285 SPICEJET LTD JMP SECURITIES PVT LTD S 1702354 36.21
17/9/2009 526500 STR GRE WOO PAKSH DEVELOPERS PVT. LTD S 39786 41.80
17/9/2009 506003 SUDAL INDUST HEMANT KUMAR GUPTA B 25000 35.85
17/9/2009 522087 SULZER INDIA FINQUEST FINANCIAL SOLUTIONS PVT. LTD. B 33000 1045.32
17/9/2009 503657 VEER ENERGY AANGI SHARES & SERVICES PVT. LTD. B 1518789 22.85
17/9/2009 503657 VEER ENERGY JIGAR SHAH B 265000 22.69
17/9/2009 503657 VEER ENERGY AANGI SHARES & SERVICES PVT. LTD. S 1302217 22.40
17/9/2009 503657 VEER ENERGY YOGESH JAISUKHLAL SANGHVI S 1000000 22.58
17/9/2009 531874 VENUS VENT BUNIYAD CHEMICALS LTD B 27000 60.22
17/9/2009 531249 WELL PACK PA PANDYA YAMINIBEN M B 35921 276.86
17/9/2009 531249 WELL PACK PA LAXMAN DHIRUBHAI PARMAR B 30828 277.10
17/9/2009 531249 WELL PACK PA PANDYA HARDIK M B 25822 278.27
17/9/2009 531249 WELL PACK PA NARENDRAKUMAR SHAH B 30000 277.48
17/9/2009 531249 WELL PACK PA PANDYA YAMINIBEN M S 34221 278.92
17/9/2009 531249 WELL PACK PA LAXMAN DHIRUBHAI PARMAR S 29510 279.41
17/9/2009 531249 WELL PACK PA PANDYA HARDIK M S 23177 278.28
17/9/2009 531249 WELL PACK PA SHOBHANA NARENDRAKUMAR SHAH S 30600 277.68

NSE Bulk Deals to Watch - Sep 17 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
17-SEP-2009,ABAN,Aban Offshore Ltd.,SMC GLOBAL SECURITIES LTD.,BUY,97850,1619.14,-
17-SEP-2009,ARVIND,Arvind Limited,AUM SECURITIES PRIVATE LTD.,BUY,1549751,38.98,-
17-SEP-2009,ASHCO,Ashco Industries Limited,AANGI SHARES & SERVICES PVT. LTD,BUY,160450,12.16,-
17-SEP-2009,CLASSIC,Classic Diamonds (India),HI-GROWTH CORPORATE SERVICES PVT. LTD.,BUY,437400,25.06,-
17-SEP-2009,CLASSIC,Classic Diamonds (India),INVENTURE GROWTH & SECURITIES LIMITED,BUY,213442,24.64,-
17-SEP-2009,CLASSIC,Classic Diamonds (India),J V STOCK BROKING PRIVATE LIMITED,BUY,275013,24.65,-
17-SEP-2009,CLASSIC,Classic Diamonds (India),RAJ KUMAR GUPTA MR (C46),BUY,12254,24.50,-
17-SEP-2009,FSL,Firstsource Solutions Lim,PRAKASH K SHAH SHARES & SECURITIES PVT. LTD,BUY,2147767,35.12,-
17-SEP-2009,GMRFER,GMR Ferro Alloys & Indust,ANKIT MITTAL MR (DMS),BUY,76296,39.01,-
17-SEP-2009,GMRFER,GMR Ferro Alloys & Indust,BINDU,BUY,74664,39.53,-
17-SEP-2009,GMRFER,GMR Ferro Alloys & Indust,SUNITA BANSAL,BUY,281389,40.13,-
17-SEP-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,11113959,23.63,-
17-SEP-2009,JETAIRWAYS,Jet Airways (India) Ltd.,MBL & COMPANY LTD.,BUY,469477,305.30,-
17-SEP-2009,KFA,Kingfisher Airlines Ltd.,GENUINE STOCK BROKERS PVT LTD,BUY,4097632,52.99,-
17-SEP-2009,KFA,Kingfisher Airlines Ltd.,TRANSGLOBAL SECURITIES LTD.,BUY,1423919,51.78,-
17-SEP-2009,MAGNUM,Magnum Ventures Limited,BAWASKAR TUSHAR KIRAN,BUY,267910,12.98,-
17-SEP-2009,ORCHIDCHEM,Orchid Chemicals Ltd.,C D INTEGRATED SERVICES LTD.,BUY,399209,166.42,-
17-SEP-2009,ORCHIDCHEM,Orchid Chemicals Ltd.,GENUINE STOCK BROKERS PVT LTD,BUY,1282185,165.83,-
17-SEP-2009,ORCHIDCHEM,Orchid Chemicals Ltd.,RATNABALI CAPITAL MARKETS LTD.,BUY,203331,164.33,-
17-SEP-2009,ORCHIDCHEM,Orchid Chemicals Ltd.,TODI SECURITIES PVT. LTD.,BUY,438199,166.47,-
17-SEP-2009,RAJESHEXPO,Rajesh Exports Ltd.,LTD JOIS INVESTMENTS P,BUY,873420,76.71,-
17-SEP-2009,SELAN,Selan Exploration Technol,EQUITY INTELLIGENCE INDIA PRIVATE LIMITED [P M S],BUY,82130,306.72,-
17-SEP-2009,SELMCL,SEL Manufacturing Company,RITU SALUJA,BUY,22,71.40,-
17-SEP-2009,ABAN,Aban Offshore Ltd.,SMC GLOBAL SECURITIES LTD.,SELL,195850,1625.59,-
17-SEP-2009,ARVIND,Arvind Limited,AUM SECURITIES PRIVATE LTD.,SELL,1515022,39.02,-
17-SEP-2009,ASHCO,Ashco Industries Limited,AANGI SHARES & SERVICES PVT. LTD,SELL,160450,12.45,-
17-SEP-2009,CAMLIN,Camlin Ltd.,COMGEST GROWTH PLC A/C COMGEST GROWTH INDIA,SELL,300000,30.35,-
17-SEP-2009,CLASSIC,Classic Diamonds (India),HI-GROWTH CORPORATE SERVICES PVT. LTD.,SELL,437400,25.05,-
17-SEP-2009,CLASSIC,Classic Diamonds (India),INVENTURE GROWTH & SECURITIES LIMITED,SELL,214501,24.77,-
17-SEP-2009,CLASSIC,Classic Diamonds (India),J V STOCK BROKING PRIVATE LIMITED,SELL,308678,24.67,-
17-SEP-2009,CLASSIC,Classic Diamonds (India),RAJ KUMAR GUPTA MR (C46),SELL,300000,23.53,-
17-SEP-2009,FSL,Firstsource Solutions Lim,PRAKASH K SHAH SHARES & SECURITIES PVT. LTD,SELL,2085767,35.07,-
17-SEP-2009,GMRFER,GMR Ferro Alloys & Indust,ANKIT MITTAL MR (DMS),SELL,76296,38.99,-
17-SEP-2009,GMRFER,GMR Ferro Alloys & Indust,BINDU,SELL,74664,39.28,-
17-SEP-2009,GMRFER,GMR Ferro Alloys & Indust,SUNITA BANSAL,SELL,281389,39.93,-
17-SEP-2009,GMRFER,GMR Ferro Alloys & Indust,YOGESH R JADHAV,SELL,77523,38.00,-
17-SEP-2009,GOKUL,Gokul Refoils and Solvent,GRANITE H. C. VENTURES LLC,SELL,242000,283.00,-
17-SEP-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,10903777,23.65,-
17-SEP-2009,JETAIRWAYS,Jet Airways (India) Ltd.,MBL & COMPANY LTD.,SELL,469477,304.73,-
17-SEP-2009,KFA,Kingfisher Airlines Ltd.,GENUINE STOCK BROKERS PVT LTD,SELL,4097632,53.00,-
17-SEP-2009,KFA,Kingfisher Airlines Ltd.,TRANSGLOBAL SECURITIES LTD.,SELL,1450537,51.83,-
17-SEP-2009,MAGNUM,Magnum Ventures Limited,BAWASKAR TUSHAR KIRAN,SELL,267910,13.03,-
17-SEP-2009,ORCHIDCHEM,Orchid Chemicals Ltd.,C D INTEGRATED SERVICES LTD.,SELL,399209,166.64,-
17-SEP-2009,ORCHIDCHEM,Orchid Chemicals Ltd.,GENUINE STOCK BROKERS PVT LTD,SELL,1282185,165.95,-
17-SEP-2009,ORCHIDCHEM,Orchid Chemicals Ltd.,RATNABALI CAPITAL MARKETS LTD.,SELL,1214331,165.14,-
17-SEP-2009,ORCHIDCHEM,Orchid Chemicals Ltd.,TODI SECURITIES PVT. LTD.,SELL,438199,166.04,-
17-SEP-2009,RAJESHEXPO,Rajesh Exports Ltd.,LTD JOIS INVESTMENTS P,SELL,1673274,76.93,-
17-SEP-2009,SELMCL,SEL Manufacturing Company,RITU SALUJA,SELL,241026,71.00,-

Asian markets brightens on renewed recovery hopes

bullion advanced as much as $6.98, or 0.7%, to $1,024.28 an ounce, rising for a third day. The metal traded at $1,021.89 by 9:30 a.m. local time. December gold futures were 0.3% higher at $1,023.10 an ounce on the New York Mercantile Exchange’s Comex division.
In the currency market, US dollar’s fall continues today as trends in the overall financial markets extend. Among the major currencies, Aussie, was the strongest against the greenback and the up trend in theses currencies are still in favor to continue in near term.
The Japanese yen softened against major currencies. The Japanese yen was quoted at 910.3 against the US dollar and 133.90 against euro.
The Hong Kong dollar was trading at HK$ 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 trade, the Australian dollar closed at a 13-month high on Thursday after positive US economic data sparked fresh hopes of a global economic recovery. At the local close, the currency was trading at $US0.8764, up from Wednesday's close of $US0.8669. It was the highest close for the Australian currency since August 21, 2008, when it ended the domestic session at $0.8804.
In Wellington trade, the New Zealand dollar powered to a 13-month high against the greenback, briefly topping US71.50c, as global risk appetites improved. By 5pm today the NZ dollar was buying US71.35c from US70.57c at the same time yesterday. The high in the domestic session was US71.55c, near the peak in overnight trading of US71.57, which was the best since August last year.
The South Korean won ended at 1,204.8 won to the U.S. dollar, up 6.5 won from Wednesday's close. The unit rose to the strongest level in more than 11 months as foreigner's demand for the won rose amid bullish stock markets and a weak U.S dollar.
The Taiwan dollar strengthened against the greenback. The Taiwan dollar was trading higher against the US dollar at NT$ 32.3400, 0.1520 up from Wednesday’s close of NT$32.4920.
In the region, equity markets ended broadly higher as investors snapped up shares of commodity producers and airlines on hopes the global economic recovery is gaining steam.
In Japan, shares market spurted with most of sector contributed into rally on optimism that global growth will recover more quickly than expected after upbeat US industrial production data and strong gains in commodity prices. At the closing bell, the Nikkei 225 Stock Average index added 173.03 points, or 1.68%, to 10,443.80, while the broader Topix gained 8.09 points, or 0.87%, to 939.52.
On the economic front, the Ministry of Finance said today in its quarterly business outlook survey that Business conditions in Japan improved markedly in the third quarter of Japan's fiscal year. The Ministry of Economy, Trade and Industry said today that an index measuring the activity of tertiary industrial activity in Japan was up 0.6% in July compared to the previous month, to a score of seasonally adjusted 96.7 points. The Bank of Japan concluded its two-day monetary policy meeting with decision to hold interest rates at a record low of 0.10% and raised its economic assessment.
In Mainland China, share market spurted with broad based gains across the sectors. Materials and energy sector outperformed as metal and oil prices bounced after the latest US data reinforced views that global recovery was taking hold. Gold miners were boosted by strong bullion prices. Financials were uplift by gains from major banks and brokerages firms. The Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, surged 60.55 points, or 2.02% to 3,060.26, while the CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, spurted 1.9%, to 3,320.10.
In Hong Kong, stock market endured gains for second consecutive days, buoyed by sharp gains on Wall Street after upbeat US industrial production data and higher commodity prices, reinforced hopes that the global economic recovery was strengthening. Financials and properties led the rally as strong economic data in the United States reinforced hopes of turnaround in the global economy. Exporters gained ground following the robust US monthly retail sales figures. Esprit Holding jumped on rating upgrade by brokerage firms. The Hang Seng Index spurted 365.59 points, or 1.71%, to 21,768.51, while the Hang Seng China Enterprise surged 142.53 points, or 1.14%, to 12,668.25.
In Australia, shares market has continued its strong momentum, closing up with benchmark indices hit fresh eleven month high on the back of solid gains across the sectors, buoyed by positive global cues and firmer commodities prices. Miners and industrials fronting sharp gains as hopes for a sustained recovery in the global economy appeared to gather pace. At the closing bell, the benchmark S&P/ASX200 index surged 64.5 points, or 1.39%, to 4,714.90, meanwhile the broader All Ordinaries added 61.2 points, or 1.32%, to 4,714.
In New Zealand, stock market ended with decent gains registering a second consecutive day of gains in a row. The New Zealand share market had a robust start to the day amid a global lift in stocks as fresh data in the United States spurred optimism about an economic recovery. The gains in this country come despite a 1c fall to 267 by top stock Telecom. The NZX50 increased 1.12% or 35.465 points to 3153.05. The NZX 15 advanced 1.47% or 84.91 points to close at 5790.57.
On the economic front, New Zealand’s manufacturing industry contraction deepened last month, led by a drop-off in production, suggesting the sector still has a hurdle to clear inventory levels as the economy emerges from recession. The BNZ Capital-Business NZ Performance of Manufacturing Index fell 0.9 points to 48.7 in August, extending the period of contraction to 16 months. Four of the five main seasonally adjusted diffusion indexes in the PMI shrank.
In South Korea, stocks rallied to a 15-month high, lifted by powerful foreign buying. The benchmark Korea Composite Stock Price Index (KOSPI) climbed 12.14 points, or 0.72%, to end at 1,695.47, the highest since 1,717.66 in 26 June 2008. After opening above the 1,700-mark for the first time in 15 months, the KOSPI pared some of its gains in late trading as institutional investors reduced buying.
In Singapore, stock market finished the session edged lower, pared back morning gains in the last trading hour, with steep plunge in properties stocks offset gains from banks and major blue chips stocks. The blue chip Straits Times Index was ended at 2,672.60, eased 1.82 points, or 0.07%.
In Taiwan, stock market continued to hover around its fourteen high status, as Taiwan Mobile announced the acquisition of Kbro Company, Taiwan’s second largest cable-TV operator, at NT$56.8 billion, thereby boosting its share in the local cable-TV market to one third, the largest.
The benchmark Taiex share index consolidated gains as it finished the session higher by 37.06 points or 0.50% in a day, closing the day at 7477.30, achieving a new fourteen and half month high status by showing the closing not seen from 30 June 2008 when market closed at 7523.54.
In Philippines, stock market rallied for the first time in the week, closing higher, following optimistic investor’s sentiment, as fears of a deepening global economic downturn faded away, following positive economic prospects both on domestic and global front. At the final bell the benchmark index PSEi ascended 0.12% or 3.36 points to 2,771.97, while the All Shares index augmented 0.46% or 8.31 points to 1,787.09.
In India, the key benchmark indices cut strong intraday gains and closed with small advance in a volatile trading session. Index heavyweight Reliance Industries (RIL) slumped as the firm sold a part of its own shares held in a trust to raise funds.
The BSE 30-share Sensex closed up 34.07 points or 0.20% to 16,711.11. The Sensex rose 142.98 points the day's high of 16,820.02 in mid-morning trade, its highest since 23 May 2008. The barometer index fell 40.49 points at the day's low of 16,636.55 in afternoon trade.
The 50-unit S&P CNX Nifty hit the psychological 5,000 mark first time since 23 May 2008 in mid-morning trade but fell below that level later. The S&P CNX Nifty was up 7.15 points or 0.14% to 4965.55. It hit a high of 5003.05 in mid-morning trade, its highest since 23 May 2008.
Elsewhere, Malaysia's Kula Lumpur Composite index went up 0.48% or 5.82 points to 1218.80 while stock markets in Indonesia’s Jakarta Composite index ended the day higher at 2445.99.
In other regional market, European shares rose for third straight session and the tenth time in eleven days, with stocks that stand to benefit the most from an improving economic backdrop leading a broad-based advance. On a regional level, the U.K. FTSE 100 index rose 0.8% to 5,165.71, the German DAX index climbed 0.6% to 5,734.23 and the French CAC-40 index rose 0.6% to 3,837.04.

Sensex, Nifty scale highest level in nearly 16 months; Nifty hits 5,000

The key benchmark indices scored small gains in choppy trade, extending recent strong gains, as global stocks rose. The BSE 30-share Sensex rose 34.07 points or 0.2%, off close to 110 points from the day's high and up about 75 points from the day's low. Index heavyweight Reliance Industries (RIL) slumped as the firm sold a part of its own shares held in a trust to raise funds.
The 50-unit S&P CNX Nifty hit the psychological 5,000 mark first time since 23 May 2008 in mid-morning trade but fell below that level later. The Sensex and Nifty achieved their highest closing levels in nearly 16 months today, 17 September 2009.
IT and auto stocks rose. But, realty stocks fell. Oil exploration stocks rose whereas PSU OMCs fell as crude oil prices advanced. The market breadth turned negative in contrast to a strong breadth earlier in the day.
Intraday volatility was high. After an initial surge triggered by higher Asian stocks, the Sensex erased almost the entire gains shortly. The market strengthened again to hit a fresh intraday high in mid-morning trade. A sell-off in RIL pulled the Sensex into the red for a short while in early afternoon trade. The market regained positive zone later. The market alternately moved between positive and negative terrain in afternoon trade. It firmed up in mid-afternoon trade. The market slipped into the red once again in choppy late trade.
After a strong revival since 15 August 2009, rains weakened again last week. The South West monsoon rains were 41 % below average in the week to 16 September 2009, the government-run India Meteorological Department said on Thursday. Total rainfall since 1 June 2009, the start of the season, was 21 % below average because of exceptionally dry spells earlier in the season, it said. More than two-thirds of the people live in villages and 60 % of the farm land depends on the annual rains.
On the flip side, fears of hike interest rates have receded after recent comments by the Reserve Bank of India governor that the central bank will not unwind its accommodative monetary policy until the economy is back on high-growth track. Rising inflationary pressures due to a surge in food prices had stoked worries that the central bank may raise rates as early as next month at a quarterly policy review.
Data released by the government today showed the headline inflation entered the positive territory after a gap of 13 weeks. Inflation based on the wholesale price index rose 0.12% in the year through 5 September 2009 compared to previous week's annual decline of 0.12%. A surge in food price index was responsible for the rise in the headline inflation.
The cabinet on Thursday extended limits on stocks that can be held by traders of sugar, vegetable oils, lentils and rice until September 2010. The move is aimed at keeping a lid on prices of those commodities.
Meanwhile, market expectations of strong Q2 results were tempered after a news agency quoted an unnamed government official as saying that the government expects only a marginal improvement in corporate advance tax in second quarter.
Media reports had on Wednesday, 16 September 2009, indicated a surge in advance payment by top Indian firms that raised expectations of strong Q2 September 2009 results. As per reports, State Bank of India, India's biggest commercial bank by branch network, has paid Rs 1838 crore in advance tax in the second installment as against Rs 1500 crore paid last year. HDFC Bank paid Rs 425 crore advance tax against Rs 315 crore last year. But, ICICI Bank paid lower tax of Rs 501 crore against Rs 575 crore last year.
Larsen & Toubro paid Rs 210 crore as against Rs 150 crore last year. Reliance Industries paid Rs 1157 crore in advance tax against Rs 683 crore paid in last year. But, Tata Steel paid a sharply lower advance tax of Rs 400 crore Rs 1000 crore paid in last year.
Software major TCS has reportedly paid Rs 220 crore as against Rs 81 crore. Tractor major Mahindra & Mahindra paid Rs 112 crore as against Rs 17.5- crore. Tata Motors paid advance tax of Rs 130 crore in the second installment, much higher than Rs 60 crore last year. Tata Power Company paid Rs 75 crore as against Rs 14 crore in last year.
Meanwhile, the initial public offer (IPO) of the private sector ship builder, Pipavav Shipyard, was fully subscribed within an hour of opening of the issue on Wednesday, 16 September 2009. The IPO was subscribed 3.37 times at 16:00 IST on second day of the issue on Thursday. The company has allotted 1.52 crore shares to anchor investors at the top-end of the Rs 55-Rs 60 price band.
World stocks have risen sharply from a trough in early March 2009 on hopes the global economic is recovering from a slump in late calendar 2008 caused by global financial crisis.
European shares rose on Thursday, extending the previous session's sharp gains, as renewed hopes of a global economic recovery buoyed demand for riskier assets like equities. Key benchmark indices in France, Germany and UK were up by between 0.47% to 0.71%.
Asian stocks hit their highest level in 13 months on Thursday after US economic data raised hopes that the global economic recovery is strengthening. Key benchmark indices in China, Hong Kong, Singapore and Taiwan were up by between 0.5% to 2.02%.
Japan's Nikkei rose 1.68% after Bank of Japan (BoJ) held a key policy rate steady at 0.1% as expected. The BoJ also slightly upgraded its economic view for the first time since July 2009.
Trading in US index futures indicated Dow could gain 18 points at the opening bell today, 17 September 2009.
US markets rallied on Wednesday, 16 September 2009, with the benchmark indices up more than a percent, after industrial production rose for the second straight month and weakness in the dollar boosted commodity and industrial stocks. The Dow gained 108.30 points, or 1.1%, to 9,791.71. The S&P 500 index added 16.13 points, or 1.5%, to 1,068.76, while the Nasdaq Composite Index rose 30.51 points, or 1.5%, to 2,133.15. The S&P 500 is up about 60% from 9 March 2009 low.
US industrial production rose 0.8% in August 2009, better than expected, and the data for the prior month was revised to a 1% gain double the 0.5% originally reported.
The BSE 30-share Sensex rose 34.07 points or 0.2% to 16,711.11 its highest closing since 22 May 2008. The Sensex rose 142.98 points the day's high of 16,820.02 in mid-morning trade. The barometer index fell 40.49 points at the day's low of 16,636.55 in afternoon trade.
The S&P CNX Nifty rose 7.15 points or 0.14% to 4965.55 its highest closing since 22 May 2008. Nifty September 2009 futures were at 4961.50 at a discount of 4.05 points as compared to the spot closing of 4965.55. Turnover in NSE's futures & options (F&O) segment surged to Rs 83,762.65 crore from Rs 70,086.74 crore on Wednesday, 16 September 2009. It hit a high of 5003.05 in mid-morning trade, its highest since 23 May 2008.
BSE clocked a turnover of Rs 9380 crore, sharply higher than Rs 6645.31 crore on Wednesday,16 September 2009.
The market breadth, indicating the overall health of the market, turned negative in contrast to a strong breadth in early trade. On BSE, 1,215 shares rose as compared with 1574 that declined. A total of 92 shares remained unchanged.
Among the 30-member Sensex pack, 22 rose and rest declined.
Indian stocks have risen sharply this year on increased global risk appetite triggered by hopes of a recovery in the global economy after a setback from a financial sector crisis. There is a huge amount of liquidity in the global financial system which is a the result of the global policy response to the crisis following the collapse of Lehman Brothers a year ago. Central banks across the world have slashed policy rates in the past one year to revive economic growth.
The Sensex is up 7063.80 points or 73.22% in calendar year 2009 as on 17 September 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 8,550.71 points or 104.78% as on 17 September 2009. FII inflow in the calendar year 2009 totaled Rs 45,022.70 crore (till 16 September 2009).
Coming back to today's trade, the BSE Mid-Cap index rose 0.27% and outperformed Sensex. The BSE Small-Cap index rose 0.13% and underperformed Sensex.
The BSE Teck index (up 1.92%), the BSE IT index (up 1.91%), the BSE Auto index (up 1.46%), the BSE Bankex (up 0.78%), the BSE Consumer Durables index (up 0.66%), the BSE Capital Goods index (up 0.55%), outperformed the Sensex.
The BSE Oil & Gas index (down 2.86%), the BSE Realty index (down 0.91%), the BSE PSU index (down 0.35%), the BSE Metal index (down 0.27%), the BSE Power index (down 0.22%), the BSE FMCG index (down 0.22%), the BSE Healthcare index (down 0.14%), underperformed the Sensex.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) fell 4.45% to Rs 2086.35 after the firm said during market hours today that Petroleum Trust sold 1.5 crore equity shares of RIL through block deals on the boruses today, 17 September 2009.
Reliance Industrial Investments and Holdings a wholly owned subsidiary of RIL, is the sole beneficiary of the Trust. The trust will realize close to Rs 3,188 crore, at an average price of about Rs 2125 per share. The financial impact of the transaction will be reflected in the consolidated statements, RIL said.
Reliance Industries on Tuesday said that it has fixed 29 September 2009 as the record date for shareholders of Reliance Petroleum (RPL) to receive equity shares of Reliance Industries under a merger scheme.
Oil exploration stocks rose after crude oil futures prices settled at their highest level this month on Wednesday after US crude oil inventories dropped more than expected last week. India's biggest state-run oil exploration firm by revenue Oil & Natural Gas Corporation (ONGC) rose 0.99%. As per recent reports, ONGC's Russian unit has substantially cut oil production due to increase in cost. Cairn India was flat at Rs 267.75.
Rise in crude oil prices would result in higher realizations from crude sales for oil exploration firms. Light, sweet crude oil for October delivery on the New York Mercantile Exchange rose $1.58 a barrel, or 2.2%, at $72.51 a barrel, the highest level since 28 August 2009.
PSU OMCs fell as the rally in crude oil prices will result in increase in under-recoveries on domestic sale of petrol, diesel, LPG and kerosene at a controlled price. BPCL and HPCL fell by between 4.98 % to 4.99%.
Indian Oil Corporation (IOC) fell 2.61%. The company's board approved a liberal 1:1 bonus issue on Monday, 14 September 2009.
The government on Tuesday issued bonds worth over Rs 10,306 crore to three oil marketing PSUs to compensate them for the losses incurred on account of selling petroleum products below market price. While bonds worth Rs 6,207.06 were issued to IOC, Rs 2,033.99 crore worth bonds were given to HPCL and Rs 2,065.28 crore worth of bonds were given to BPCL.
IT stocks gained on strong US economic data. US is the biggest market for Indian IT firms. India's largest software services exporter by sales Tata Consultancy Services rose 1.87% on reports the company is eyeing six-seven IT outsourcing deals worth over $100 million each in Latin America. The stock also rallied on jump in advance tax in second installment.
India's third largest software services exporter by sales Wipro rose 2.02% as its ADR rose 1.58% on Wednesday. The company recently won a three-year outsourcing contract from All Nippon Airways, Japan's No.2 carrier.
India's second largest software services exporter by sales Infosys rose 1.87% as its ADR rose 2.99% on Wednesday. Infosys still finds the business situation quite challenging and decision making by clients continues to be slow, Chief Operating officer S.D. Shibulal said on Tuesday. He also said last month' s outsourcing contract from oil and gas major British Petroleum Plc was worth $116 million over five years.
Auto stocks rose on hopes of strong sales in the upcoming festive season. India's top small car maker by sales Maruti Suzuki rose 3.08%.
Bajaj Auto rose 2.13% extending recent strong gains on reports it has paid advance tax of Rs 170 crore in the second installment this year, much higher than Rs 50 crore in the corresponding period last year.
India's largest tractor maker by sales Mahindra & Mahindra rose 1.25% on jump in advance payment in the second installment.
India's largest truck maker by sales Tata Motors was flat at Rs 608.15 despite a surge in advance tax payment in the second installment.. Tata Motors is reportedly planning to sell about 10-15 % in subsidiary Tata Motors Finance to raise funds to reduce debt.
The company has a huge debt largely related to the purchase of Ford Motor's marquee brands Jaguar Land Rover last year, for which it took a loan of $3.2 billion and other debt to keep the loss-making unit running.
As per reports, the government will release pay arrears to government employees under the second and final installment ahead of big festivals in October 2009. The payout would boost demand for cars and motorcycles.
Car sales rose 26% to 120,669 units in August 2009 over August 2008 boosted by new launches and availability of cheaper loans, data released by the industry body Society of Indian Automobile Manufacturers on 8 September 2009, showed. Sales of trucks and buses rose 18.5% to 40,624 units and motorcycle sales rose 26% to 611,173 units.
Realty stocks fell on profit taking after a recent surge. Indiabulls Real Estate, Ackruti City, Omaxe and Unitech fell by between 1.1% to 3.04%.
As per reports, demand for residential projects in major cities is picking up on lower home loan rates, property price cuts by developers and a recovery in the job market. Realty market had slumped last year amid a global credit crunch and buyers fearing job losses.
Higher advance tax payment by banks in the second quarter aided rally in bank stocks for the second day in a row. India's largest bank by net profit and branch network State Bank of India rose 0.82%. The bank expects to maintain 40% growth in its business in the United Kingdom, Chairman O.P. Bhatt said today. Bhatt said the bank was looking at smaller acquisitions in the UK, and it planned to make London the core of its operations in Europe.
India's second largest private sector bank by net profit HDFC Bank rose 1.44% as its ADR rose 2.74% on Wednesday. India's largest private sector bank by net profit ICICI Bank rose 0.58% as its ADR rose 3.63% on Wednesday. The bank's managing director Chanda Kochhar said on 8 September 2009 credit growth in India is likely to pick up in the second half of this year.
Metal stocks rose as LMEX, a gauge of six metals traded on the London Metal Exchange rose 3.69% on Wednesday 16 September 2009. India's largest copper maker by sales Sterlite Industries rose 0.12%. The company on Friday 11 September 2009 said it had raised its open offer price for bankrupt US copper miner Asarco by a fifth to $2.565 billion. Sterlite, a unit of India-focused mining company Vedanta Resources, has been facing off with Mexican miner Grupo Mexico for the assets of Asarco, which has been under bankruptcy protection since 2005.
Among other metal stocks, National Aluminum Company, Hindustan Zinc, Hindalco Industries rose by between 0.05% to 3.62%.
But, India's largest steel maker by sales Tata Steel fell 1.97% on profit taking after Wednesday's 8.21% gains. As per reports its European unit, Corus will soon restart its plant in South Wales on the back of rise in demand. The unit was shut in December 2008 as part of its plan to reduce production by 30%.
Domestic steel makers raised prices of flat steel products such as plates and sheets, mainly used in manufacturing automobiles, refrigerators and washing machines, by about 3-5% from 1 September 2009, in line with international prices.
Tata's steel sales from Indian operations rose 25% to 4,92,000 tonnes in August 2009 over August 2008. The local operations contribute about a quarter of the group's total annual global capacity of 30 million tonnes, which includes Corus, Europe's second-largest steelmaker.
India's largest drugmaker by sales Ranbaxy Laboratories fell 1.17% even after the company entered into a strategic in-licensing agreement with Medy-Tox Inc of South Korea, for selling a cosmetic product in India
Some FMCG pivotals rose on revival in India's annual monsoon in the past few weeks. FMCG firms derive substantial revenue from the rural sector. Marico, Dabur India, REI Agro, United Spirits and Hindustan Unilever rose by between 0.41% to 1.26%.
Finance Minister Pranab Mukherjee said on Monday, 14 September 2009, said late monsoon rains have eased drought conditions in India.
Cement stocks rose on bargain hunting after recent losses triggered by reports cement makers have cut prices by Rs 3 per 50 kilogram bag in Mumbai. ACC, Grasim Industries, Ultratech Cement rose by between 0.25% to 3.65%.
Telecom stocks rose. India's largest telecom player by sales Bharti Airtel rose 3.13%. On Tuesday 15 September 2009, South Africa's communications regulator had said it might not grant approval for the proposed alliance between Bharti and MTN this year. Bharti and South African telecom operator MTN have been in negotiations since 25 May 2009 on a $23 billion cash and share-swap deal aimed at an eventual full merger. The deadline for the talks has been extended twice, most recently the deadline was put back another month to 30 September 2009.
India's second largest telecom player by sales Reliance Communications rose 0.99% on recent reports the company has initiated talks with its overseas lenders to revise the terms of the $1 billion unsecured external commercial borrowings, or ECBs, which the company raised in 2007.
The government plans to hold a much-awaited auction on 7 December 2009 to sell airwave spectrum bands to the country's mobile operators for use in third-generation wireless services, the Department of Telecommunications said on Monday.
The auction for 3G spectrum will allow operators a chance to offer mobile-phone access to high-speed Internet, video downloads and other 3G services in the world's second-largest wireless market by subscribers. The move is also expected to earn the government billions of dollars in revenue in a year when it is expected to borrow a record amount to bridge its fiscal deficit.
The government said it will issue a notice inviting applications from interested bidders on 26 October 2009, with the final date for receiving the applications set for 13 November 2009.
India's largest engineering & construction firm by sales Larsen & Toubro rose 0.89% on higher advance tax payment.
Among other capital goods stocks, BEML, Crompton Greaves, Siemens, Thermax, ABB, rose by between 0.08% to 3.55%.
But, India's largest electric equipment maker by sales Bharat Heavy Electricals fell 0.11%. As per recent reports the company has won an order worth Rs 1300 crore for an upcoming Vallur Thermal Power project at Ennore in Tamil Nadu. The power project is being set up by a joint venture between NTPC and the Tamil Nadu Electricity Board (TNEB).
Aviation stocks rose on hopes a recent cut in fares would boost air traffic. Jet Airways, Kingfisher Airlines and SpiceJet rose by between 7.18% to 18.05%.
As per reports, almost all airlines have dropped ticket prices by 20-50% following Jet Airways' 50% fare cut. Jet Airways had on 14 September 2009 announced the discount on all routes for five days to make up for Rs 200 crore in losses it incurred during the pilots' strike which ran for five days last week
Sugar stocks fell after the cabinet imposed restrictions on stocks to check price rise. Bajaj Hindustan, Dhampur Sugars and Shree Renuka Sugars fell by between 1.02% to 2.44%.
King Fisher Airlines clocked highest volume of 2.37 crore shares on BSE. Cals Refineries (2.24 crore shares), SpiceJet (2.18 crore shares), NHPC (1.6 crore shares) and Reliance Industries (1.29 crore shares) were the other volume toppers in that order.
Reliance Industries clocked highest turnover of Rs 270.16 crore on BSE. Tata Steel (Rs 188.24 crore), Jaiprakash Associates (Rs 171.77 crore), Aban Offshore (Rs 163.78 crore) and Unitech (Rs 139.75 crore) were the other turnover toppers in that order.

Railways PPP projects go off track

The Railways' ambitious plan to raise Rs 1,00,000 crore (Rs 1,000 billion) in the Eleventh Plan (2007-12) to develop rail infrastructure projects through public private partnerships appears to have gone badly off track. Most key projects are still to get started, mainly because of the inability to get a fix on a viable PPP policy.

The ambitious Rs 50,000 crore (Rs 500 billion), 3,289 km Dedicated Freight Corridors are a case in point. Although the project started under former railway minister Lalu Prasad and was renamed Diamond Rail Corridors by incumbent Mamata Banerjee, not a single project has been awarded yet.

These corridors were to be built on an east-west axis, with one leg connecting Ludhiana in Punjab to Dankuni, West Bengal (the eastern corridor) and the other Jawaharlal Nehru Port Trust, near Mumbai to Tuglakabad, Delhi (the western corridor).

Japan Bank for International Cooperation and the World Bank have extended financial assistance of Rs 28,000 crore (Rs 280 billion). The ministry intends to raise the remaining Rs 22,000 crore (Rs 220 billion) from market borrowings through Indian Railways Financing Corporation, cost-sharing by state governments, internal resources and by attracting private investment.

Ministry officials say no tenders have been floated yet because discussions are still on to develop policies that will make PPP contracts attractive. "The PPP concept is new to us, so it is taking time," said a ministry official.

Another plan to set up joint venture factories to make diesel and electric locomotives at Marhowra and Madhepura in Bihar at an investment of over Rs 29,220 crore (Rs 292.2 billion), which Lalu Prasad announced last year, has not materialised, though bids were invited for the Madhepura factory in May 2008.

Private sector players insist the ministry modify some of the guidelines outlined in the contracts. Chief among these is the clause that the private sector must deliver and maintain the locomotives manufactured at these factories, said a source on condition of anonymity.

"That would involve setting up depots across the country which would make the project unviable," the source added. The railway ministry has also called a halt to 20 contracts worth Rs 4,085 crore (Rs 40.85 billion) that the Indian Railway Catering and Tourism Corporation Ltd had given to private players to develop budget hotels.

Ministry officials say building budget hotels is being considered a part of the construction of multi-functional complexes near world-class stations rather than as stand-alone projects.

"Policy changes are underway," said one of them. Adding to the confusion is the lack of clarity on who will have jurisdiction over the project -- the Railway Land Development Authority, which is responsible for developing new stations, or IRCTC, which is overseeing the construction of the hotels.

Presenting the Budget this year the railway minister had said the Railways would upgrade 50 stations under the PPP scheme.

Of these, Delhi station was seen as a test case for PPP projects.

But the Rs 6,000-crore project has been stuck for the last two years for want of approval from local bodies such as the Delhi Development Authority, New Delhi Municipal Council, Delhi Traffic Police and so on.

A Northern Railway official explained, "The local bodies are concerned about the traffic congestion the project would create.

They are objecting to the real-estate development of the land around and airspace above the station. We have not received a positive response from them yet."

The railways had invited RFQs (Requests for Qualification) from companies in October 2007 for the Delhi project. They were scheduled to award the contract in July 2008 but the government scrapped the RFQ in October 2008 owing to confusion over certain clauses in the bid documents.

In the Tenth Five Year Plan, PPP projects by the Indian Railways constituted less than one per cent of the total plan outlay. The projections for the Eleventh Plan is 20 per cent. Given the all-round policy confusion, the Indian Railways is unlikely to achieve this target.

I-T dept moves SC against Kiran Karnik

The Income Tax department has moved the Supreme Court alleging that former IT industry body National Association of Software and Services Companies chief Kiran S Karnik had evaded tax to the tune of Rs 3.71 crore (Rs 37.1 million) in 2002-03, when he was heading infotainment company Discovery Networks.

The tax authorities challenged a Gujarat high court judgement that had dismissed their appeal holding that Karnik could not be held guilty of even deemed concealment.

A Bench headed by Justice D K Jain, while posting the matter for final hearing, rejected Karnik's counsel P K Manohar's plea to allow him to file a counter affidavit.

The Bench said there was no need to file the affidavit keeping in view the nature of the matter.

Seeking imposition of penalties which were deleted by the sectoral tribunal under the I-T Act 1961, the department has alleged that Karnik had failed to prove with evidence that he was under bonafide belief that UAP (Unit Appreciation Plan, an incentive scheme) receipts were not taxable.

No hike in fares, says Air India

Air India said it had not hiked its fares or overcharged passengers in the wake of the agitation by Jet Airways pilots. It also said it would continue to maintain its fares at the pre-strike level.

"Air India has ensured travel of general passengers on its flights by keeping its fares at normal levels. The airline would continue to maintain its fares at the pre-strike level so that those not being able to afford travel on other airlines because of higher fares can travel as they would in a normal environment," AI said in a press release.

In addition to accommodating passengers affected by the Jet Airways strike on its flights on both domestic and international sectors, the national carrier also ferried the Indian cricket team to Colombo on a specially operated flight to avoid their being stranded, added the release.

Aviation Secretary M Madhavan Nambiar had met all the airlines Friday night and asked them to retain their fares at last week's level after taking note of media reports of airlines raising fares by 50 to 100 per cent to cash in on the market opportunity following the Jet Airways pilots' strike.

However, a DGCA press release said on Saturday that a search of airline websites and travel portals by the aviation regulator found that flight ticket fares were in compliance with the DGCA directives that were issued recently.

Economic downturn sees an upsurge in labour unrest

Sam Thomas, looking dapper in his red tie and half-sleeve striped shirt, hardly shows the nervousness of a man who has been sacked by his employer. A couple of days before the pilot finally forced a reluctant Jet Airways to reinstate him after a five-day "sick out" - the official term for mass sick leave by 650 of his colleagues that crippled India's largest private airline, Thomas told Business Standard he was "fighting for dignity and not money".

If Thomas represents the new face of India's trade union leaders (he is the joint secretary of the National Aviators' Guild or NAG, the union of Jet pilots), the old guard isn't short of new-found confidence either.

The past year has seen a rising incidence of labour strife in India, with strikes at Hyundai, Mahindra & Mahindra, Nestle, banks and oil companies. The dissatisfaction varied from delayed wage negotiations to appointment of contract workers to summary dismissal.

Though none of these protests were as violent as the killing of the CEO of an Italian auto component maker by fired workers exactly a year ago, and the scale isn't as big as it used to be in the sixties and seventies, employers are worried by the rising employee unrest that has coincided with the downturn, which saw companies curb production and costs.

Sona Group Chairman Surinder Kapur says the strikes have cropped up because there's a contraction in business. "It's a difficult time to make settlements; we can't give people good increases but their expectations have gone up," he says.

Jet offers 50% discount for 3 days

Jet Airways, just out of a pilots' strike, sprung a surprise by announcing a 50 per cent discount this week on its Economy Class fares on all domestic flights.

The announcement, made just a few hours after the airline resumed its services, will be applicable for its all-economy, no-frills service, Jet Airways Konnect, too.

A statement it issued said the "special, promotional" fares will be for bookings between three days starting Monday and the travel needs to be completed by Friday.

These bookings can be made through any travel agent, the airline's call centre or on jetairways.com. Jet Privilege members will earn 1,000 Bonus JPMiles for all bookings made on jetairways.com during the offer period.

Wolfgang Prock-Schauer, CEO, said, "With these new low, limited-time fares, we hope to welcome travellers back aboard Jet Airways' and Jet Airways Konnect's extensive domestic services, which cover the length and breadth of the country between them."

FM assures continued support to banks

While appreciating the role of public sector banks (PSBs) in protecting the economy against the global economic turmoil, Finance Minister Pranab Mukherjee assured them that the government would continue to support them.

At a closed door meeting with bankers, the finance minister said while banks had been rightly responding to the needs of the economy, the government would continue to provide "whatever assistance needed" by them, according to senior bankers present at the meeting.

Also, the government would continue to support the economy through stimulus packages, as it was not the right time to stop them, the minister said.

Meanwhile, the government has already concluded negotiations for $3.2-billion loan from the World Bank for recapitalising state-run banks and funding for the India Infrastructure Finance Company (IIFCL), a state-run lender to infrastructure projects.

Of this, $2 billion loan is for the recapitalisation of the government-run banks and $1.2 billion for IIFCL.

The government had already infused capital into several public sector banks to boost their capital adequacy requirement.

Mukherjee also reiterated that the nationalisation of banks helped them combat the recent economic crisis.

"Nationalisation of banks, about 40 years ago, mandated that institutions for welfare should be entrusted with the government for public accountability. We have followed the policy for the last five years. Even with pressure, we have not opened up the banking sector entirely to the private sector or market forces. The ownership of public sector banks has remained with the government, and will remain so in the future. Even with the disinvestment policy, 51 per cent stake in banks, or even more, will remain with the government," Mukherjee had earlier said.

While delayed rain had impacted the second quarter growth rate, an early rabi crop and short-duration crop would boost the agriculture sector, the minister said according to the bankers.

Housewives' budget deficit widens

Essential items are 65 per cent costlier than last year; traders blame it on higher MSP, confusion in govt, writes Dilip Kumar Jha.

Prerna Pradhan, a housewife, winces each time she looks at the wholesale price index numbers or the inflation rate put out by the government. "Those numbers are nothing but a cruel joke," Pradhan, a mother of two, said.

Pradhan, like her counterparts in countless Indian middle class families, has reasons to feel worried. Her household budget on staples like rice, wheat, tur (arhar) and sugar has gone up by an average 65 per cent in the past one year, though income has remained stagnant at last year's level.

For example, the fair average quality column rice was available at Rs 24 a kg around the same time last year. This has shot up to Rs 38 per kg now, even though India produces about 100 million tonnes of rice every year which can comfortably meet the domestic demand. Since export of non-basmati rice has been banned, the domestic availability remained as it was last year.

Observers have blamed the huge increase in the minimum support price and "inflationary expectations" due to poor monsoons this year for this "abnormal" price increase. What may dampen Pradhan's spirits further is the fact that the rainfall has been 25 per cent deficient this year, which is expected to hit rice production by 10 per cent. Therefore, prices are expected to go up further.

Vijay Setia, president of All India Rice Exporters' Association, held panic statements by ministers responsible for the price hike. Both Finance Minister Pranab Mukherjee and Agriculture Minister Sharad Pawar first said that India had sufficient foodgrain to feed everybody for 13 to 14 months in case there was a drought.
Within a few days, Mukerjee told Parliament that the country will require to import 15 million tonnes of foodgrain including rice and wheat to meet this season's demand as domestic output is set to fall 5 to 10 per cent.

The confusing statements prompted many traders to hold on to their inventories in anticipation of higher price yields in the future.

Sethia said that since the crop is normal globally, prices could cool down soon. He added that the government raised the minimum support price or MSP up to 15 per cent and its final affect on the retail price of commodities was at least 22.5 per cent. The rise in wheat prices has also bothered housewives. The government has claimed that it has handled wheat stocks efficiently and production has been normal at around 78 million tonnes against consumption of 76 million tones. Yet, each kg of wheat has increased Rs 6-8 since last year with the FAQ variety quoting at Rs 20 per kg now.

Sugar prices have more than doubled to Rs 34 a kg from Rs 16 a year ago, forcing many housewives to halve the monthly intake from 1 kg per person to 500 grams. Pradhan said she has also cut down on tea from four or five cups a day to just two. 'That's the only way I can beat the price rise," she said.

According to estimates, the average per capita consumption of rice and wheat in an Indian family is 7 kgs each and that of tur 1 kg. Though Pradhan hasn't yet gone in for a cut in these food categories, she didn't rule out such an option if the prices continue to rise.

Last year, sugar availability in the country was almost at par with consumption at 23.5 million tonnes. Since the ministry of agriculture has permitted free raw sugar import by private companies also, there is no reason why supply could not meet the demand and thereby control prices.

Officials said the reasons behind the sudden rise are lesser area under sugarcane, global rise in prices and hoarding by traders. The area under sugarcane has been reduced to 400,000 hectares from last year's 510,000 hectares. This is due to delayed monsoon and lower sugarcane prices last year. Officials however said the price rise is not in proportion to the decline in production.

On pulses, stagnant production has led to the price rise. Import-dependent India has seen around 2.5 times increase in pulse prices in the past one year.

Airlines divided on impact of Jet deal

Airline managements are divided on the likely impact of the settlement of the Jet Airways imbroglio, with some carriers fearing that "collective bargaining" by employees could "ruin" the industry, especially during the current downturn.

While no one is ready to go on record, a CEO of a private airline said: "It's is not the question of whether they have a union or not, but the issue is that collective bargaining by employees will ruin the industry. In fact, any dream of airlines like Air India restructuring will now be thrown out of the window."

However, CEOs of low-cost carriers are not so worried and say the problem which hit Jet is typical for full-service carriers, which are desperate to cut costs. Says a director in a leading LCC carrier: "The problem actually affects FSCs, as they have offered certain privileges like 5-star hotels, free holidays, etc, to pilots, which they are now being forced to withdraw unilaterally, as they try to reach LCC costs. In the case of LCCs, the pilots already know they don't have these privileges from the very outset."

Some CEOS concede they cannot avoid pilots having collective bargaining power and have to live with this global reality. "LCCs like South West Airlines and others globally have unions who are powerful. You have to live with them and interact with them. What is important is a two-way communication between the two, which was clearly lacking in Jet Airways," points out one CEO.

Airline experts say the Jet agreement is significant for the industry, as private airlines do not have a structured grievance redressal system. "Forming a consultative committee is a recognition of the grievances that exists. This will be good for the aviation industry, as other airlines would also understand the grievances of the employees and do likewise before things go bad," says Kapil Kaul who heads the Centre for Asia Pacific Aviation in India.

However, trade unions are peeved at the possibility of the union being disbanded. Says M K Pandhe, president of the pro-CPM, CITU: "The right to form a union cannot be compromised, as NAG (the Jet pilots' union) has already been registered. Now if the management tries to get it dissolved by influencing the government, then that is an issue that trade unions would fight."

But other aviation unions say the success of the pilots is key for the benefit of customers. Says a senior representative of Indian Commercial Pilots Association, which represents the pilots for Air India's domestic operations: "Private airlines are pushing pilots beyond safety norms, especially in times of slowdown, whether it is more flying hours, flying aircraft which pilots are not comfortable with, etc. Unions or even a redressal committee is essential to see that you have the right to say No to the management, as you are solely responsible for the customer's safety."