Stocks head for a quite start

Headlines for the day:
Reserve Bank of India favours freeing savings rates
Reliance Industries likely to go slow on pharma, healthcare
Tata Motors roll out new Winger variant in Punjab

Events for the day:
Major corporate action
Ex-date for final dividend of Garware Offshore Services
Ex-date for dividend of CMC, Grindwell Norton
For more events, log on to Sharekhan.com
Pre-market report
Global signals
The European shares extended a rally to a seventh day on Thursday, as robust demand in a Spanish bond auction boosted investor confidence in the euro zone economic outlook, and British Petroleum rose sharply.
Britain's top share index rose for the seventh straight day on Thursday, led by British Petroleum after its compensation deal with the White House, but gains were held in check by weak US jobs data hitting commodity-linked stocks.
The major Asian indices were trading mixed. SGX Nifty was trading 16 points lower.
Indian Indices
The domestic markets have gained for consecutive seven trading sessions. The markets have remained range bound and may continue to be the same until there is some good news and definite signs of what is going on in Europe.
There has been good and bad news both coming in from US, which reflects on domestic markets.
With the subdued Asian cues, the Indian markets are expected to open quite.
Asia’s richest man Mukesh Ambani will address shareholders of Reliance Industries Ltd (RIL) today and is expected to announce mega investment plans, possibly in power and telecom sectors. The investors will closely eye RIL.
Commodity cues
In the commodity space, the crude oil prices slipped, with the Nymex light crude oil for the July series down by $0.88 per barrel. In the metals space, the Comex Gold for the June series rose by $18.20 to a troy ounce and the Comex Silver for the June series was up by $0.34 to a troy ounce.
Daily trend of FII/MF investment in equities
On June 17, 2010, the foreign institutional investors (FIIs) were the net buyers of the Indian stocks to the tune of Rs858.30 crore, whereas the domestic mutual, on June 15, 2010, were the net sellers of the stocks to the tune of Rs148 crore.

RIL to hog the headlines!

Pursue your goals even in the face of difficulties, and convert adversities into opportunities. – Dhirubhai Ambani.

The Ambani brothers have taken their father’s advice and have hopefully left behind their adversities. How well they turn them into opportunities, will be visible somewhat today as RIL holds its much-anticipated AGM in Mumbai. We expect a rather subdued start to the day but Reliance group companies could hog more limelight as we wrap up another good week. Emotions may run high in the wake of the rapprochements between the two estranged Ambani siblings. Reports point to a few big-bang announcements by Mukesh Ambani. A word of caution here. Reliance and ADAG group shares have rallied in recent past. It won’t be a bad idea to adopt the ‘sell on news’ strategy and lock in some gains in these counters.

Asian markets are listless this morning despite the overnight recovery in the US and Europe. Things could turn better later on as investors will focus on improving fiscal situation in the euro-zone. The market can advance little further in the coming weeks, provided the global news flow -particularly from Europe remains positive. If bulls get dizzy at heights, be prepared to see sudden tumble.

The NSE Nifty could flirt with highs hit early in the year. It could soon cross 5300 and even rise beyond 5400 if there is no untoward incident, either locally or globally. High inflation and a possible off-cycle rate hike by the RBI cannot be ruled out. Also, fresh pressure points could come from any part of the world. Given the fact that the market has risen for seven or eight consecutive sessions it won’t be a bad idea to be a little cautious.

Meanwhile, the euro rallied following a well-received auction of Spanish debt and amid reports that European bank stress tests will be published in July, curbing fears about eurozone fiscal problems. Gold closed at all-time high of $1,248.70 an ounce. Crude oil futures settled below $77 a barrel. US treasuries gained after latest economic reports revived concerns about the health of the world’s largest economy.

The Swiss franc rose sharply after the Swiss National Bank moved towards an exit from its ultra loose monetary policy, dropping a pledge to fight excessive appreciation of its currency. The US dollar fell versus major rivals after a number of disappointing economic reports.

ITC will be in action as its board considers a bonus issue. Orbit Corp. Board will also meet today to consider raising additional long term funds through further issuance of securities for an amount not exceeding Rs10bn through preferential allotment or QIP.

FIIs were net buyers of Rs4.63bn in the cash segment on Thursday on a provisional basis, according to the NSE data. The local institutions were net sellers at Rs3.64bn on the same day. In the F&O segment, the foreign funds were net buyers of Rs5.88bn. On Wednesday, FIIs were net buyers of Rs8.58bn in the cash segment, as per SEBI data.

Yet another late session bounce helped US stocks close higher on Thursday after a successful Spanish bond auction coupled with talk of a European bank stress tests offset disappointing set of economic reports.

US stocks retreated initially after a raft of economic reports dampened optimism about a sustained recovery in the world's largest economy. But, a rally in technology, commodity and consumer shares helped investors overlook dour reports on jobless claims, manufacturing and leading economic indicators (LEI). With the euro continuing to stabilise this week, US stocks are also on track for solid gains for the week.

After trading lower for most of the session, the Dow Jones Industrial Average ended up 24.71 points, or 0.2%, at 10,434.17, with 17 of its 30 components rising.

The S&P 500 index rose 1.43 points, or 0.1%, to end at 1,116.04. The S&P 500, used as a benchmark of the broad market by money managers, is up 2.2% so far this week. The Dow industrials are also up 2.2% week to date.

The Nasdaq Composite Index finished off 1.23 points, or 0.1%, to 2,307.16. The tech-heavy index is up 2.8% for the week so far.

For every 14 shares rising, 14 fell on the New York Stock Exchange, where 1.15 billion shares traded. Composite volume topped 4.7 billion.

Markets have been choppy in the last two sessions after the Dow jumped nearly 600 points, or 6%, in just over a week. That advance came following a six-week selloff that saw the major gauges each lose more than 13%.

The euro rose 0.6% versus the dollar, continuing to recover after touching a four-year low of $1.188 last week. The dollar fell 0.7% against the yen.

COMEX gold for August delivery rose $18.20 to settle at $1,248.70 an ounce, an all-time high.

Crude-oil futures fell 88 cents to end at $76.79 a barrel.

Treasury prices rallied, lowering the yield on the 10-year note to 3.19% from 3.28% late on Wednesday.

In the day's key economic news, the number of Americans filing new claims for unemployment rose last week to 472,000 from 460,000 the previous week. Economists thought claims would drop to 450,000.

Continuing claims, a measure of Americans who have been receiving benefits for a week or more, rose to 4,571,000 from 4,483,000 the week before, versus forecasts for a drop to 4,475,000.

In other economic news, the Philadelphia Fed index, a regional reading on manufacturing, fell to 8 in June from 21.4 in May, missing forecasts for a drop to 20, as activity slowed far more than expected.

Another report, LEI, rose 0.4% in May versus forecasts for a rise of 0.5%. LEI was flat in April.

The Consumer Price index, a measure of consumer inflation, fell 0.2% in May versus forecasts for a drop of 0.1%. CPI fell 0.1% in April. So-called core CPI, which strips out volatile food and energy prices, rose 0.1% as expected after showing no change in the previous month.

BP remained in focus as its chief executive Tony Hayward testified before a House committee. Hayward told the committee he was "deeply sorry" for the catastrophe.

In other company news, grocery chain Kroger gained 3.3% after reporting higher-than-expected quarterly earnings and saying current-quarter sales are tracking roughly in line with the previous quarter.

Food and consumer products maker JM Smucker reported higher quarterly net income, sending shares up 6.6%.

Markets across Europe were buoyed by a reasonably successful Spanish bond auction and a resurgent euro which pushed up banks across the region. With this, European shares managed to extend their winning streak to a seventh session. A recovery in BP also helped.

Finishing at the highest level since May 13, the Stoxx Europe 600 index edged up 0.1% to 254.66, as a winning run has added 6% to the stock market benchmark.

The French CAC-40 index rose 0.2% to 3,683.08, the UK's FTSE 100 index advanced 0.3% to 5,253.89 and the German DAX index gained 0.5% to 6,223.54.

Retreating worries about euro-zone sovereign debt have contributed to the recent advance, and on Thursday, Spain's 3.5 billion euro bond auction proceeded smoothly. The news helped the Stoxx 600 recover from a subdued start and also boosted the euro.

Also, the publication of bank "stress tests" by the Bank of Spain, announced by the central bank on Wednesday, will help remove some of the uncertainty about Spain and help clear up some pessimism over Spain, Portugal and other euro zone economies.

Separately, European Council President Herman Van Rompuy said that stress tests on European banks will be published in July.

BP shares jumped 6.7% in London, paring year-to-date losses to 40%, after the oil giant announced a $20 billion escrow fund to compensate those affected by the two-month-old Gulf of Mexico spill and a suspension of dividend payments.

UBS shares gained 1.4%. Swiss lawmakers reached a last-minute deal that will allow the names of nearly 4,500 UBS clients and suspected tax-evaders to be handed to US authorities and should help the bank avoid further sanctions.

Switzerland's central bank said in its annual financial stability report that both banks continue to face high credit and market risks and have elevated leverage. At the same time, the Swiss National Bank toned down language regarding intervention in the foreign-exchange market.

The Indian markets extended its winning streak to sixth straight trading session, marking its longest one in 10-months. The NSE Nifty and the BSE Sensex has surged over 5% each in the past six days.

Markets started off with positive note and stayed flat to negative for the first half of the day. In fact, the benchmark indices went on to hit intra-day lows after ICICI Bank plunged from day’s high on rumours of being sued by a US Broking company. However, as the day progressed, the NSE Nifty surged past the 5250 levels and also managed to end above it taking cues from the European markets. Stocks like L&T, Tata Motors and JP Associates were among the major gainers.

"Today’s rally was seen despite flat cues from the US and mixed cues from the Asian markets in addition it was also accompanied with positive advance decline ratio", says Amar Ambani Vice President Research IIFL. Out of total 2951 stocks on the BSE, 1502 stocks ended in the green while 1310 stocks ended in the red and only 139 remained unchanged.

Later in the day, ICICI Bank clarified saying that, "There are baseless rumours circulating in the market through SMS and emails about a law suit filed against ICICI Bank in the US. We categorically deny any such law suit and state that these are malicious and unfounded rumours".

The BSE 30-share Sensex gained 154 points to close at 17,616 and NSE Nifty gained by 42 points and ended at 5,275.

Among the BSE sectoral indices, BSE Capital Goods index was the top gainer, up 1.8% followed by BSE Oil & Gas index, it was up 1.3% and BSE Auto index up 1%. Even the BSE Mid-Cap index and the BSE Small-Cap index gained 0.4% and 0.6% respectively.

Outside the frontline indices, the big gainers in the broader market were Gujarat NRE Coke, IOB, MTNL, Cummins India and Aban. On the other hand, losers included Hindustan Copper, Container Corp, Andhra Bank and BOB.

Sensex ends firm; L&T surges

The Sensex ended sensitive session on a strong note for the seventh consecutive day. On sectoral front, capital goods, oil & gas and auto stocks moved up except consumer durable. Both Sensex and Nifty traded above 1-month high.

It opened on a flat note with positive bias following mixed Asian cues and was continued to trade in a sluggish manner amid volatility. Later in the second half, the index gained ground on positive European market.Finally, it closed on a firm note after touching a high of 17,647.42. All ADAG stocks were shining today. All eyes on RIL AGM tomorrow.
Meanwhile, Food Inflation for the week ended June 5, 2010 stood at 16.12% as against 16.74% in the previous week (May, 29, 2010). Index for primary articles stood at 16.86% as against 17.21% in the previous week.
European stocks closed little changed at the highest level in a month as gains by insurers offset a decline by auto-industry companies and a slump in technology shares after Nokia Oyj cuts its forecasts. Asian stocks end mixed on concern a global economic recovery will stall after US housing starts dropped and FedEx Corp`s profit forecast trailed estimates.
At the close, the benchmark 30-share index, BSE Sensex gained 153.82 or 0.88% at 17,616.69 with 23 components registering rise. Meanwhile, the broad based NSE Nifty went up by 41.50 or 0.79% at 5,274.85 with 37 components registering rise.
Sensex Movers
Larsen & Toubro contributed rise of 39.79 points in the Sensex. It was followed by Reliance Industries (32.86 points), Oil & Natural Gas Corporation (12.11 points), H D F C Bank (12.02 points) and I T C (10.61 points).
However, State Bank Of India contributed fall of 5.82 points in the Sensex. It was followed by Hindustan Unilever (3.9 points), Hero Honda Motors (3.29 points), Tata Steel (2.66 points) and Grasim Industries (1.92 points).
Biggest gainers in the 30-share index were Larsen & Toubro (3.30%), Tata Motors (2.80%), Jaiprakash Associates (2.60%), Reliance Communications (2.30%), Jindal Steel & Power (2.20%), and D L F (1.98%).
On the other hand, Hero Honda Motors (1.26%), Hindustan Unilever (1.08%), Tata Steel (0.68%), State Bank Of India (0.67%), Bharat Heavy Electricals (0.29%), and NTPC (0.17%) were the biggest losers in the Sensex.
Mid & Small-cap Space
The Midcap and Smallcap index rose 0.41% and 0.58% respectively.
Sectors in Limelight
The Capital Goods index was at 14,462.22, up by 252.85 points or by 1.78%. The major gainers were Gammon India (1.46%), Crompton Greaves (1.11%), BEML (0.74%), A I A Engineering (0.56%) and A B B (0.48%).
The Oil & Gas index was at 10,408.18, up by 136.28 points or by 1.33%. The major gainers were Aban Offshore (3.21%), G A I L (India) (2.45%), Essar Oil (0.43%), Hindustan Petroleum Corporation (0.38%) and Bharat Petroleum Corporation (0.37%).
The Auto index was at 8,186.20, up by 75.37 points or by 0.93%. The major gainers were Exide Industries (3.92%), Cummins India (3.28%), Bharat Forge (1.92%), Bajaj Auto (0.4%) and Mahindra & Mahindra (0.22%).
On the other hand, the Consumer Durables index was at 4,467.89, down by 4.62 points or by 0.1%. The major losers were Bajaj Electricals (2.15%), Titan Industries (0.95%), Gitanjali Gems (0.52%), Blue Star (0.33%) and Videocon Industries (0.12%).
Market Breadth
Market breadth was positive with 1,521 advances against 1,335 declines.
Value and Volume Toppers
I C I C I Bank topped the value chart on the BSE with a turnover of Rs. 2,207.79 million. It was followed by Reliance Industries (Rs. 1,403.67 million), Sesa Goa (Rs. 1,203.31 million) and Reliance Communications (Rs. 1,165.97 million).
The volume chart was led by Reliance Natural Resources with trades of over 15.91 million shares. It was followed by Reliance Communications (6.09 million), Unitech (4.27 million) and Mahanagar Telephone Nigam (4.18 million).

Market settles at 1-1/2 month high; extends gains for seventh day

The key benchmark indices extended gains for the seventh day in a row to settle at one and a half month highs after a largely successful Spanish bond auction eased worries about the euro-zone crisis. Expectations of strong earnings growth underpinned sentiment, with most front line firms paying higher advance tax in Q1 June 2010. The BSE 30-share Sensex jumped 153.82 points or 0.88%, up 221.79 points from the day's low and off 30.73 points from the day's high. The market breadth was positive, though not as strong as it was earlier in the day. European stocks and US index futures rebounded after the Spanish bond auction.

The market has staged a strong rebound since late May 2010, with heavy buying by foreign funds aiding the recent surge. The Sensex has jumped 1,594.21 points or 9.94% from a low of 16,022.48 on 25 May 2010. The Sensex has gained 0.86% in calendar year 2010 so far, after jumping 81% in 2009. The barometer index is off 353.33 points or 1.96% from a peak of 17,970.02 on 7 April 2010.
Coming back to today's trade, intraday volatility was high. The market moved in a narrow range in early trade. The BSE Sensex surged to a fresh intraday high in early afternoon trade. A bout of volatility was witnessed as the Sensex soon slipped into the red, led by fall in index heavyweight ICICI Bank counter. The Sensex hit a fresh intraday low. The market regained positive zone later, as ICICI Bank came off lows. The market surged sharply to scale one and a half month high in mid-afternoon trade as European shares shrugged off initial weakness and moved into positive zone. The market rallied to fresh intraday high in late trade on buying in heavyweight stocks.
NSE's volatility index, India VIX, which is a gauge of traders' perception of near-term risks in the market based on options prices, declined 8.03% to 20.85. The index had risen 3.14% to 22.67 on Wednesday, 16 June 2010. India VIX is calculated based on the S&P CNX Nifty options prices. India VIX is a measure of the market's expectation of volatility over the next 30 calendar days.
Infrastructure stocks gained on fresh buying. Auto stocks extended recent gains as Q1 June 2010 advance tax payments from frontline auto companies surged. Metal stocks gained in volatile trade. Realty shares saw mixed trend. Shares from the Mukesh and Anil Ambani stable sizzled on the bourses on speculation the scrapping of non-compete agreement would improve business prospects of group companies. Mahindra & Mahindra, ITC, and GAIL India hit record highs whereas L&T and HDFC struck 52-week highs.
Foreign funds today, 17 June 2010, bought stocks worth a net Rs 462.60 crore, as per provisional data from the stock exchanges. Domestic funds offloaded shares worth a net Rs 363.63 crore.
Foreign funds have bought equities worth a net Rs 3250.05 crore in six trading sessions from 10 June 2010 to 17 June 2010, as per data from the stock exchanges. The net inflow totaled Rs 2161.35 crore in June 2010 so far (till 17 June 2010) compared to a massive outflow of Rs 12071.13 crore in May 2010.
Domestic funds, which had absorbed some of the heavy selling from foreign funds last month, offloaded stocks worth a net Rs 951.90 crore this month so far. Domestic funds had mopped up equities worth a net Rs 6361.17 crore in May 2010.
On the macro front, the annual food inflation eased to 16.12% in the week ended 5 June 2010, compared to previous week's annual rise of 16.74%, data released by the government today showed. The fuel price index climbed 13.18%, lower than an annual rise of 14.23% in the previous week.
European shares rose on Thursday, extending gains into a seventh session, on reports a bond auction in Spain proceeded smoothly on Thursday, with the country selling 3 billion euros of 10-year bonds with a maximum yield of 4.911%. The key benchmark indices in France, UK and Germany were up by between 0.65% to 0.82%.
Asian stocks were mixed on Thursday on concern a global economic recovery may take longer than expected after US housing starts dropped. The key benchmark indices in Indonesia, South Korea, Hong Kong and Taiwan were up by 0.15% to 1.13%. However, key benchmark indices in China, Japan, and Singapore were down 0.11% to 0.68%.
US markets saw a flat closing on Wednesday after FedEx's cautious comments and mixed economic data. The Dow Jones industrial average added 4.69 points, or 0.05%, to 10,409.46. The Standard & Poor's 500 Index fell 0.62 points, or 0.06%, to 1,114.61 and the Nasdaq Composite Index rose 0.05 points to 2,305.93.
A Commerce Department report showed housing starts fell 10% in May 2010, the biggest drop since March 2009. The weak housing market data released by the Commerce Department on Wednesday contrasted with a separate report that showed a surge in industrial output, highlighting the uneven nature of the economic recovery.
Trading in US index futures indicated that the Dow could gain 28 points at the opening bell on Thursday, 17 June 2010. US index futures were in the red earlier.
Back home, the collection of indirect taxes, which include customs, central excise and service tax, jumped 49% to around Rs 35,000 crore during April-May 2010 from a year ago period on the back of industrial buoyancy. The government proposes to raise the collection of indirect taxes by 29% this fiscal ending March 2011.
The government after market hours on Tuesday, 15 June 2010 proposed to impose capital gains tax on all stock market transactions by Indians and overseas funds as a part of changes in tax laws. As per the second draft of the direct tax code (DTC) released on Tuesday, the securities transaction tax (STT) will stay and rates will be calibrated. In its first draft DTC unveiled last year, the government had proposed to scrap the securities transaction tax.
The DTC has proposed taxing gains from investments in the stock market and also equity-linked mutual fund units at the applicable rate of taxation. The DTC has also proposed some taxes on income of foreign funds, treating all incomes from their investments in the stock market in India as capital gains.
The revised discussion paper on DTC has proposed computation of minimum alternate tax (MAT) on book profits basis. The earlier code had proposed MAT on gross assets. The revised discussion paper also makes it clear that profit-linked deductions of units already operating in special economic zones would be protected for the unexpired period. The tax proposals, which will replace the existing direct tax laws introduced decades ago, are expected to come into force in the next financial year starting 1 April 2011.
Meanwhile, many Indian firms have reportedly paid higher advance tax in Q1 June 2010. Higher advance tax payment normally indicates higher profits for the period under review. Reliance Industries (RIL) has paid Rs 653 crore, an increase of 108%, while HPCL paid Rs 61 crore, a 307% increase. Bajaj Auto paid Rs 110 crore against Rs 50 crore last year.
Infosys Technologies, the country's second-largest software company, reported an advance tax payment of Rs 275 crore, compared to Rs 230 crore in the previous year. TCS paid Rs 128 crore in advance taxes in Q1 June 2010, up 142% from Rs 53 crore it paid in the April-June period last fiscal.
The country's top consumer goods company Hindustan Unilever paid Rs 75 crore, the same as last the last fiscal year. Advance tax payments by companies during the April-June quarter account for 15% of the total advance tax payable in the fiscal year
The country's top pharmaceutical companies have also paid higher taxes, with GlaxoSmithkline Pharma paying Rs 42 crore against Rs 39 crore in the year-earlier period and Ranbaxy's payments rising to Rs 17.5 crore from Rs 15 crore.
The banking sector was a mixed bag during the quarter. The country's largest bank State Bank of India (SBI) paid Rs 860 crore against the Rs 1170 crore it paid a year before. Union Bank of India's advance tax payments rose to Rs 168 crore from Rs 104 crore, while ICICI Bank paid Rs 350 crore, the same as it paid in the last fiscal.
Housing finance major HDFC has paid advance tax of Rs 215 crore in Q1 June 2010 verses Rs 175 crore in Q1 June 2009. Private sector lender HDFC Bank has paid advance tax of Rs 315 crore in Q1 June 2010 versus Rs 250 crore in Q1 June 2009.
Bharat Heavy Electricals (Bhel) has paid Rs 400 crore verses Rs 320 crore, ITC has paid Rs 230 crore versus Rs 200 crore. ONGC has paid Rs 1093 crore, up 24.20% from Rs 880 crore paid during the corresponding period a year ago. L&T's advance tax has risen 18.2% to Rs 130 crore.
Mahindra and Mahindra paid Rs 63 crore, up 270.5%, and Tata Motors paid Rs 65 crore, more than double last year's outgo. Steel Authority of India (SAIL) paid Rs 362 crore against Rs 344 crore a year before, while Gas Authority of India paid Rs 280 crore against Rs 250 crore. Ambuja Cement's advance tax payment dipped marginally to Rs 65 crore from Rs 70 crore
Global rating agency Fitch, early this week, raised India's local currency rating outlook to stable from negative as the rating agency forecast a decline in government debt to GDP ratio to 80% by March 2011 from 83% at the end of March 2010. It also upgraded India's growth forecast to 8.5% in the year to March 2011 from earlier forecast of 7% growth.
The Reserve Bank of India (RBI) is likely to raise interest rates further after government data released on 14 June 2010 showed a surge in headline inflation. Inflation based on the wholesale price index (WPI) rose an annual 10.16% in May 2010, faster than 9.59% rise in April 2010, government data showed on Monday. Meanwhile, inflation for March 2010 was revised upwards to 11.04% from a provisional rise of 9.9%.
Industrial output rose much faster than expected at 17.6% in April 2010 from a year earlier on strong consumer demand and government spending. March's annual growth rate was revised upwards to 13.9% from 13.5%. Manufacturing output rose 19.4% in April 2010. The industrial output rose 10.4% in the 2009/10 fiscal year (April-March), faster than the 2.6% clocked in the previous fiscal year.
Investors will also keep a close eye on the progress of the monsoon rains. Annual monsoon rains in the week to 16 June 2010 were 8% below normal, the India Meteorological Department (IMD) said on 17 June 2010. As per IMD update on 16 June 2010, southwest monsoon was vigorous over Saurashtra & Kutch and Madhya Maharashtra and active over Gujarat Region, Konkan & Goa, Marathwada, Vidarbha and South Interior Karnataka during past 24 hours.
The south west monsoon is important for India as about 60% of the country's farmlands are rain-fed and more than half of the workforce is employed in the agriculture sector. Monsoon rains had hit Kerala on 31 May 2010, a day ahead of schedule. The south-west monsoon usually covers the entire country by mid-July. The weather office late April 2010 said rainfall is likely to be 98% of the long-term average. Good monsoon rains would help raise farm output, boost rural incomes and lower food inflation.
The BSE 30-share Sensex jumped 153.82 points or 0.88% to 17,616.69, its highest closing since 27 April 2010. The index advanced 184.55 points at the day's high of 17,647.42 in late trade. The Sensex fell 67.97 points at the day's low of 17,394.90 in afternoon trade.
The S&P CNX Nifty was up 41.50 points or 0.79% to 5,274.85, its highest closing since 30 April 2010. It struck a day's high of 5,285.55 in late trade.
The market breadth, indicating the overall health of the market, was positive. The breadth had turned negative in afternoon trade in contrast to a strong breadth earlier in the day. On BSE, 1544 shares advanced as compared with 1339 that declined. A total of 104 shares remained unchanged.
The BSE Mid-Cap index gained 0.41% and the BSE Small-Cap index rose 0.58%. Both these indices underperformed the Sensex.
Except the BSE Consumer Durables index, all the other sectoral indices on BSE logged gains. The BSE Consumer Durables index lost 0.10%. The BSE Auto index surged the most, by 1.78%.
The total turnover on BSE amounted to Rs 4556 crore, lower than Rs 4821.86 crore on Wednesday, 16 June 2010.
Among the 30-member Sensex pack, 21 advanced while the rest declined.
Infrastructure stocks gained on fresh buying. India's largest engineering & construction firm by sales Larsen & Toubro (L&T) jumped 3.57% to Rs 1780 after striking a 52-week high of Rs 1782. It was the top gainer from the Sensex pack. Higher advance tax payment aided the rally in the counter.
Gammon Infrastructure Projects rose 2.15% after Punjab Biomass Power, a special purpose vehicle of the company commissioned its first biomass based plant of 12 megawatt at Patiala in the state of Punjab. The company made this announcement during trading hours today, 17 June 2010.
Punj Lloyd rose 0.16% after the company's overseas unit won a large order worth Rs 1394 crore. The company announced the large order win after market hours on Wednesday, 16 June 2010.
Among other infrastructure stocks Nagarjuna Construction Company (up 0.53%), Jaiprakash Associates (up 2.92%), GMR Infrastructure (up 1.25%), and GVK Power Infrastructure (up 3%), gained.
Shares from the Mukesh and Anil Ambani stable sizzled on the bourses on speculation the scrapping of non-compete agreement would improve business prospects of group companies.
India's second largest listed cellular services provider by sales Reliance Communications (RCom) gained 2.33%, extending a three-day 8.37% surge. The stock rose on reports the company is looking to raise cash by selling up to 26% stake in its private undersea cable system unit Reliance Globalcom for $500 million.
Index heavyweight Reliance Industries jumped 1.40% to Rs 1072.20 on reports the firm is looking to enter thermal power projects and may bid for the ultra mega power projects of 4,000 megawatt each in Chhattisgarh and Orissa.
Anil Dhirubhai Ambani Group (ADAG)-led Reliance Capital (up 0.95%), Reliance MediaWorks (up 1.39%), Reliance Power (up 0.66%), Reliance Infrastructure (up 1.69%), and RNRL (up 0.15%), gained.
Shares of the Mukesh Ambani-led Reliance Industrial Infrastructure gained 0.92%.
State-run oil marketing companies gained on reports the government is considering freeing petrol price from government control and possibly giving limited autonomy to state oil firms to price diesel closer to market rates. BPCL (up 0.39%), HPCL (up 0.38%) and Indian Oil Corporation (up 1.02%), rose.
ONGC rose 1.96% on higher advance tax payment and on higher crude oil prices. Rise in crude oil prices would result in higher realizations from crude sales for oil exploration firms.
Telecom stocks were in demand with the highly competitive sector seeing buoyancy in anticipation of likely merger & acquisition activity.
India's largest listed cellular services provider by sales Bharti Airtel rose 0.34% on reports its first quarter advance tax payment jumped 79% to Rs 179 crore.
Mahanagar Telephone Nigam jumped 4.49% after the company's American depository receipt, or ADR soared 10.29% to $2.68 on the New York Stock Exchange on Wednesday, 16 June 2010.
India's largest real estate developer by sales DLF rose 2.20%, extending a three-day 5.79% advance.
Other realty stocks were mixed. Unitech (up 0.21%), Indiabulls Real Estate (up 0.44%), Omaxe (up 1.73%), and HDIL (up 0.47%), gained. But, Orbit Corporation (down 0.92%), Ackruti City (down 1.98%) and Godrej Properties (down 1.19%), declined
India's largest private sector bank by market capitalisation ICICI Bank rose 0.51% to Rs 882.10 in highly volatile trade. It had tumbled as much as 3.49% at the day's low of Rs 846.95 in afternoon trade. It had hit a high of Rs 890.95 earlier in the day, when it rose 1.52% intraday.
Volumes in the ICICI Bank stock were heavy. On BSE, 24.95 lakh shares changed hands in the counter. The average daily volume in the scrip in the past one quarter to 11 June 2010 stood at 6.5 lakh shares.
The private sector bank said there are baseless rumours circulating in the market through SMS and emails about a law suit filed against ICICI Bank in the US. The bank categorically denies any such law suit and state that these are malicious and unfounded rumors. The bank has lodged a complaint with regulatory and law enforcement agencies, it said.
India's second largest private sector bank by sales HDFC Bank rose 1.22% after its ADR gained 0.61% on Wednesday.
But, PSU bank stocks declined. India's largest bank by net profit and branch network State Bank of India declined 0.64%. Bank of Baroda slipped 2.03%, Bank of India declined 1.66% and Punjab National Bank slipped 1.22%
Reserve Bank of India on Wednesday announced a plan to buyback Rs 10000-crore of short-dated government securities to help ease tight liquidity conditions in the money market.
India's largest mortgage lender Housing Development Finance Corporation was up 0.79% to Rs 2935 after hitting a 52-week high of Rs 2943.
India's largest non-ferrous metal producer by sales Sterlite Industries (India) rose 0.73% to Rs 694.50, off day's low of Rs 683.30. The stock today extended a three-day 8.57% surge. The company after market hours on 11 June 2010 fixed 22 June 2010 as the record date for a 2-for-1 stock split and a liberal 1:1 bonus issue.
Other metal stocks edged higher, rebounding after an intra-day dip. Hindalco Industries (up 1.21%), Jindal Saw (up 0.88%), Sesa Goa (up 1.61%), Steel Authority of India (up 0.10%), Nalco (up 0.44%) advanced. However, India's largest private sector steel maker by sales Tata Steel fell 0.93%.
Ramsarup Industries spurted 12.05% on reports the world's largest steelmaker ArcelorMittal is eyeing a stake in the company.
Auto stocks extended recent gains as Q1 June 2010 advance tax payments from frontline auto companies surged. India's largest tractor maker by sales Mahindra & Mahindra (M&M) rose 0.25% to Rs 631.80, after striking an all-time high of Rs 641.80.
India's largest small car maker by sales Maruti Suzuki India rose 1.58%. The stock rose for the second day in a row on reports car makers are preparing to raise prices to offset rising input costs.
India's top truck maker by sales Tata Motors rose 3.13%. The company's global vehicle sales rose 50% to 79,819 units in May 2010 over May 2009. These included 19,053 vehicles sold by Jaguar Land Rover in the month, 72% higher from a year ago.
However, India's top bike maker by sales Hero Honda Motors lost 1.24% to Rs 1984.85 and was the top loser from the Sensex pack.
India's largest FMCG maker by sales Hindustan Unilever declined 1.06%, extending Wednesday's 1.63% fall.
Other FMCG stocks also edged lower on profit booking. Colgate Palmolive India (down 1.41%), Ruchi Soya (down 1.17%), Nestle India (down 0.88%), and United Spirits (down 1.12%), declined.
However, India's largest cigarette maker by sales ITC gained 1.07% to Rs 293.85 after striking a record high of Rs 296.75. The stock was in demand ahead of a board meeting on 18 June 2010 to consider issue of bonus shares.
IT stocks were mixed. India's third largest software services exporter by sales Wipro rose 1.24% and India's largest software services exporter by sales TCS advanced 0.16%. But, India's second largest software services exporter by sales Infosys lost 0.07%.
Cals Refineries clocked the highest volume of 3.76 crore shares on BSE. Karuturi Global (1.67 crore shares), Reliance Natural Resources (1.59 crore shares), Shree Ashtavinayak Cinema Vision (67.98 lakh shares) and Reliance Communications (60.93 lakh shares) were the other volume toppers in that order.
ICICI Bank clocked the highest turnover of Rs 217.85 crore on BSE. Reliance Industries (Rs 140.06 crore), Sesa Goa (Rs 118.94 crore), Reliance Communications (Rs 116.31 crore), and TTK Prestige (Rs 112.67 crore) were the other turnover toppers in that order.

Parabolic Drugs IPO fully bid

Receives bids for 2.68 crore shares
The initial public offer of Parabolic Drugs was subscribed 1.01 times on the last day of the issue on Thursday, 17 June 2010. By 16:00 IST, the IPO received bids for 2.68 crore shares as compared to 2.66 crore shares on offer. The price band of the IPO was set at Rs 75-85 per share.

The bidding for the IPO for qualified institutional buyers (QIBs) had ended on Wednesday, 16 June 2010. For other investors, the issue closes today, 17 June 2010
The issue comprises sale 20.25 lakh equity shares by existing private equity investors BTS India and Alden Global (Mauritius). BTS India and Alden Global (Mauritius) have 19% and 4% stake respectively in Parabolic Drugs.
The funds raised from the issue will be used for capacity expansion at various manufacturing units. The company will also repay outstanding loans worth Rs 38.84 crore from the proceeds of the IPO.
The firm, which makes active pharmaceutical ingredients, plans to make an investment in its unit Parabolic Research Labs. The firm is also planning to set up a new custom synthesis and manufacturing site under the research unit. The site will have in all 12 laboratories.

Turnover surges

RIL, Tata Steel June 2010 futures at premium
Nifty June 2010 futures were at 5,284.05, at a premium of 9.20 points compared to spot closing of 5,274.85. Turnover in NSE's futures & options (F&O) segment surged to Rs 1,06,228.66 crore from Rs 93,203.13 crore on Wednesday, 16 June 2010.
Reliance Industries (RIL) June 2010 futures were at premium at 1076.90 compared to the spot closing of 1072.15.
Tata Steel June 2010 futures were at premium at 482.75 compared to the spot closing of 480.90.
ICICI Bank June 2010 futures were at discount at 878.10 compared to the spot closing of 879.25.
In the cash market, the S&P CNX Nifty rose 41.50 points or 0.79% at 5,274.85.

NSE Bulk Deals to Watch - June 17 2010

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
17-JUN-2010,AEGISCHEM,Aegis Logistics Ltd,SUNDEEP CREDITS PVT LTD,BUY,90884,348.31,-
17-JUN-2010,HYDROS&S,Hydro S & S Ind. Ltd,DYNAMIC STOCK BROKING (I) PRIVATE LIMITED,BUY,61091,42.28,-

17-JUN-2010,MTNL,Maha Tel Nigam Ltd.,BLUE STAR INVESTMENTS AND FINANCIAL SERVICE PRIVATE LIMITED,BUY,1408703,64.67,-
17-JUN-2010,RELIGARE,Religare Enterprises Limi,LIFE INSURANCE CORPORATION OF INDIA,BUY,1674223,390.00,-
17-JUN-2010,RESURGERE,Resurgere Mines & Mineral,MANISH RATILAL SHAH,BUY,146186,95.16,-
17-JUN-2010,RESURGERE,Resurgere Mines & Mineral,TRANSGLOBAL SECURITIES LTD.,BUY,226204,96.45,-
17-JUN-2010,SELMCL,SEL Manufacturing Company,SAFFRON FINANCE LIMITED,BUY,926913,70.36,-
17-JUN-2010,TNPETRO,Tamilnadu Petro Prod Ltd,SAMDHYAN COMMODITIES BROKERS PVT LTD,BUY,650000,21.46,-
17-JUN-2010,TTKPRESTIG,TTK Prestige Ltd.,CROSSEAS CAPITAL SERVICES PVT. LTD.,BUY,143987,920.20,-
17-JUN-2010,TTKPRESTIG,TTK Prestige Ltd.,MANIPUT INVESTMENTS PVT. LTD.,BUY,56850,926.07,-
17-JUN-2010,TTKPRESTIG,TTK Prestige Ltd.,MARWADI SHARES AND FINANCE LIMITED,BUY,62750,922.04,-
17-JUN-2010,AEGISCHEM,Aegis Logistics Ltd,SUNDEEP CREDITS PVT LTD,SELL,124907,353.66,-
17-JUN-2010,HYDROS&S,Hydro S & S Ind. Ltd,DYNAMIC STOCK BROKING (I) PRIVATE LIMITED,SELL,38711,41.95,-
17-JUN-2010,HYDROS&S,Hydro S & S Ind. Ltd,MACHINO FINANCE PRIVATE LIMITED,SELL,32700,42.16,-
17-JUN-2010,MTNL,Maha Tel Nigam Ltd.,BLUE STAR INVESTMENTS AND FINANCIAL SERVICE PRIVATE LIMITED,SELL,736068,64.55,-
17-JUN-2010,NEULANDLAB,Neuland Laboratories Ltd,ANMOL FINPRO PVT LTD,SELL,27548,99.43,-
17-JUN-2010,RELIGARE,Religare Enterprises Limi,FELEX ENTERPRISES PRIVATE LIMITED,SELL,679195,390.00,-
17-JUN-2010,RESURGERE,Resurgere Mines & Mineral,MANISH RATILAL SHAH,SELL,146186,98.15,-
17-JUN-2010,RESURGERE,Resurgere Mines & Mineral,TRANSGLOBAL SECURITIES LTD.,SELL,226194,96.72,-
17-JUN-2010,RESURGERE,Resurgere Mines & Mineral,ZIGZAG MERCANTILE PVT LTD.,,SELL,185000,96.00,-
17-JUN-2010,SELMCL,SEL Manufacturing Company,SAFFRON FINANCE LIMITED,SELL,922197,68.88,-
17-JUN-2010,TNPETRO,Tamilnadu Petro Prod Ltd,VALLABH REALTORS PVT LTD,SELL,650000,21.46,-
17-JUN-2010,TTKPRESTIG,TTK Prestige Ltd.,CROSSEAS CAPITAL SERVICES PVT. LTD.,SELL,143987,919.40,-
17-JUN-2010,TTKPRESTIG,TTK Prestige Ltd.,MANIPUT INVESTMENTS PVT. LTD.,SELL,56850,927.13,-
17-JUN-2010,TTKPRESTIG,TTK Prestige Ltd.,MARWADI SHARES AND FINANCE LIMITED,SELL,62750,922.65,-

BSE Bulk Deals to Watch - June 17 2010

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
17-JUN-2010,AEGISCHEM,Aegis Logistics Ltd,SUNDEEP CREDITS PVT LTD,BUY,90884,348.31,-
17-JUN-2010,HYDROS&S,Hydro S & S Ind. Ltd,DYNAMIC STOCK BROKING (I) PRIVATE LIMITED,BUY,61091,42.28,-

17-JUN-2010,MTNL,Maha Tel Nigam Ltd.,BLUE STAR INVESTMENTS AND FINANCIAL SERVICE PRIVATE LIMITED,BUY,1408703,64.67,-
17-JUN-2010,RELIGARE,Religare Enterprises Limi,LIFE INSURANCE CORPORATION OF INDIA,BUY,1674223,390.00,-
17-JUN-2010,RESURGERE,Resurgere Mines & Mineral,MANISH RATILAL SHAH,BUY,146186,95.16,-
17-JUN-2010,RESURGERE,Resurgere Mines & Mineral,TRANSGLOBAL SECURITIES LTD.,BUY,226204,96.45,-
17-JUN-2010,SELMCL,SEL Manufacturing Company,SAFFRON FINANCE LIMITED,BUY,926913,70.36,-
17-JUN-2010,TNPETRO,Tamilnadu Petro Prod Ltd,SAMDHYAN COMMODITIES BROKERS PVT LTD,BUY,650000,21.46,-
17-JUN-2010,TTKPRESTIG,TTK Prestige Ltd.,CROSSEAS CAPITAL SERVICES PVT. LTD.,BUY,143987,920.20,-
17-JUN-2010,TTKPRESTIG,TTK Prestige Ltd.,MANIPUT INVESTMENTS PVT. LTD.,BUY,56850,926.07,-
17-JUN-2010,TTKPRESTIG,TTK Prestige Ltd.,MARWADI SHARES AND FINANCE LIMITED,BUY,62750,922.04,-
17-JUN-2010,AEGISCHEM,Aegis Logistics Ltd,SUNDEEP CREDITS PVT LTD,SELL,124907,353.66,-
17-JUN-2010,HYDROS&S,Hydro S & S Ind. Ltd,DYNAMIC STOCK BROKING (I) PRIVATE LIMITED,SELL,38711,41.95,-
17-JUN-2010,HYDROS&S,Hydro S & S Ind. Ltd,MACHINO FINANCE PRIVATE LIMITED,SELL,32700,42.16,-
17-JUN-2010,MTNL,Maha Tel Nigam Ltd.,BLUE STAR INVESTMENTS AND FINANCIAL SERVICE PRIVATE LIMITED,SELL,736068,64.55,-
17-JUN-2010,NEULANDLAB,Neuland Laboratories Ltd,ANMOL FINPRO PVT LTD,SELL,27548,99.43,-
17-JUN-2010,RELIGARE,Religare Enterprises Limi,FELEX ENTERPRISES PRIVATE LIMITED,SELL,679195,390.00,-
17-JUN-2010,RESURGERE,Resurgere Mines & Mineral,MANISH RATILAL SHAH,SELL,146186,98.15,-
17-JUN-2010,RESURGERE,Resurgere Mines & Mineral,TRANSGLOBAL SECURITIES LTD.,SELL,226194,96.72,-
17-JUN-2010,RESURGERE,Resurgere Mines & Mineral,ZIGZAG MERCANTILE PVT LTD.,,SELL,185000,96.00,-
17-JUN-2010,SELMCL,SEL Manufacturing Company,SAFFRON FINANCE LIMITED,SELL,922197,68.88,-
17-JUN-2010,TNPETRO,Tamilnadu Petro Prod Ltd,VALLABH REALTORS PVT LTD,SELL,650000,21.46,-
17-JUN-2010,TTKPRESTIG,TTK Prestige Ltd.,CROSSEAS CAPITAL SERVICES PVT. LTD.,SELL,143987,919.40,-
17-JUN-2010,TTKPRESTIG,TTK Prestige Ltd.,MANIPUT INVESTMENTS PVT. LTD.,SELL,56850,927.13,-
17-JUN-2010,TTKPRESTIG,TTK Prestige Ltd.,MARWADI SHARES AND FINANCE LIMITED,SELL,62750,922.65,-

Sensex on seventh heaven

Today’s major news
Reliance Capital buys 18% in Bloomberg-UTV, the stock closes 0.64% higher
Food inflation softens to 16.12%
Reliance Power starts power generation from Rosa plant, the stock ends 0.69% up

Global Indices
European shares extended their gains on Thursday following results of the Spanish bond auction. Banks led the gainers list. As of writing this report, FTSE 100 was trading at 0.76% higher.
Major Asian indices ended on a mixed note. The indices like Shanghai Composite, Nikkei and Straits Times closed in the negative territory. While Hang Seng, Jakarta Composite and Kospi indices closed in the positive territory. SGX Nifty closed 75.50 points higher.
The US stock index futures point to a mixed opening on the Wall Street on Thursday. Investor will focus on data related to consumer price index (CPI) for May along with the US Q1 current account figures and weekly jobless claims numbers.
Indian indices
Domestic bourses maintained its positive trend for the seventh consecutive session as euro zone worries recede after successful bond auction by Spain. Food inflation softening to 16.12% for the week ended June 05, 2010 from 16.74% in the previous week and buying in heavyweights like Larsen & Toubro (L&T), Oil & Natural Gas Corporation (ONGC) and Tata Motors also supported the market to extend its recent rally.
The key benchmark index - Sensex opened at 17491, 28 points higher. The index was quite in the morning session and traded in a very narrow range. In early afternoon session, the Sensex slipped in to the red and hit the day’s low of 17395, led by fall in index heavyweight ICICI Bank. However, post lunch, the Sensex rebounded and got strengthened to hit the day’s high of 17647 as ICICI bank recovered and European markets gained.
The Sensex gained 1000 points in last seven sessions.
At finishing line, the Sensex shut shop at 17617, 154 points higher and the Nifty closed at 5275, 41 points up.
Market sentiment
The market breadth was positive. Of the 2,951 stocks traded on the BSE, 1,502 stocks advanced, whereas 1,310 stocks trailed. Hundred and thirty nine stocks closed unchanged.
Sectoral & stock screening
All the 13 sector indices on the BSE ended positive except BSE information technology (IT) that closed with marginal loss of 0.10%. BSE consumer goods (CG) surged the most by 1.78%, followed by BSE Oil & Gas that rose by 1.33%.
Among ‘A’ group stocks, Gujarat NRE Coke was the topper, up by 5.64%, followed by Indiabulls Financial Services that rose by 5.08% and Indian Overseas Bank (IOB) that jumped by 4.89%. Among losers, Religare Enterprises slid the most by 6.96%, followed by Hindustan Copper that fell by 3.34% and Container Corporation of India declined by 2.52%.
Viewing volumes
Anil Dhirubhai Ambani Group (ADAG) firm - Reliance Natural Resources Ltd (RNRL) saw highest trading with over 1.59 crore shares changing hands on the BSE, India's second largest listed cellular services provider by sales - Reliance Communications (0.60 crore shares), India’s second largest developer - Unitech (0.42 crore shares), largest independent producer of met coke in India - Gujarat NRE Coke (0.42 crore shares) and government owned telephone service provider - Mahanagar Telephone Nigam Ltd (MTNL) (0.41 crore share).

SRF

Investors with short-term perspective can consider buying the stock of SRF. It is seen from the charts of the stock that it has been on a steady intermediate-term uptrend. The stock has been forming higher peaks and higher trough from its February 2009 low of Rs 62. Within this uptrend the stock was on a medium-term sideways consolidation in the range between Rs 180 and Rs 220 from last October till early May this year. Subsequently, the stock breached the key resistance level of Rs 220 and is hovering well above it. Moreover, the stock is currently positioned way above its 21- and 50-day moving averages. Reinforcing the bullish momentum, the stock climbed 3 per cent with good volume on Thursday. The daily relative strength index has entered the bullish zone while the weekly RSI is already featuring in this zone. The daily moving average convergence divergence indicator has signalled a buy and is hovering in the positive territory. We like the stock from a short-term perspective and its short-term outlook is also bullish. We anticipate the stock to rally until it hits our price targets of Rs 242 or Rs 250 in the approaching sessions. Short-term traders can buy the stock with stop-loss at Rs 226.
via BL