Fast food industry booms in India

Constantly experimenting with the tastes of consumers by mixing western and 'desi' menus, fast food industry has seen a rapid growth in last few years, thanks to high disposable incomes and greater exposure to multiple cuisines.
A lot of Indians are travelling abroad experiencing changes in lifestyle and are keen on experimenting with food, say experts.
"Our comparable sales in metros have been nearly 20 per cent in 2010 and as the fast food market continues to expand across the country and across various consumer segments, there is tremendous scope for expansion," says Vikram Bakshi, MD, McDonalds India (North & East), adding that they are targeting to open around 40 plus stores in the country soon.
McDonald's made its India debut in 1996 with one outlet at Basant LoK in Delhi and at present, it has 211 restaurants of which 105 are in North & East India and 106 in West & South India.
Apart from metros, McDonald's is fast reaching rural areas as well, as there are 14 outlets in Haryana, 11 in Punjab and 28 in Uttar Pradesh. "With ever increasing pool of working population, nuclear families and a progressive middle class, the demand for fast food already on the rise will see a tremendous growth in future also," says Ritu Chaudhri, VP Marketing, Nirulas.
Nirulas has 80 outlets (company owned and franchised) in 7 cities across Delhi, Uttar Pradesh, Uttaranchal, Haryana, Rajasthan and Punjab and are planning to open 70 more till 2012.
The move to 'localise' the fast food tastes has paid rich dividends and increased brand loyal customer base for the companies. Pizza Hut is known to introduce Indianised version of pizzas to attract the local customer base.
"We launched products like Karahi Paneer, Teekha Paneer and Karahi Chicken long time ago and it was a complete success. Soon, you will see more of such products," says Umesh Kumar, Manager, Pizza Hut, CP. Bakshi says the age old saying of 'when in Rome, do as the Romans do' holds the USP.
"Keeping in view the strong liking of north Indians towards spicy stuff, we had to introduce in our menu dishes like McAloo Tikki Burger, Pizza McPuff, McVeggie," he says. To reposition itself as the preferred choice for young adults, Nirula's also launched its Desimania campaign.
"For our Desimania campaign last year, we had launched a new range of western fast food with a Unique 'Desi' Twist. The menu included a tempting new variety of teekha pizzas, chatpata burgers, refreshing beverages and some uniquely desi sundaes which became very popular with our customers," says Chaudhri.
The consumer spending on processed food has increased at an average rate of 7.6 per cent annually from 2008 to 2010 and this is expected to rise at an average of around 8.6 per cent until 2012, according to a report by Assocham.
The report indicates a major shift in food habits in metropolitan cities with about 86 per cent of respondent households preferring to have instant food due to steep rise in dual-income levels, standard of living, convenience and influence of Western countries.
Mona Sharma, a 24-year-old BPO employee, says, due to odd working hours and work pressure it is very difficult to get out and eat. "We normally place group orders from our office to outlets which serve 'ready to eat' food like burger and pizzas. It saves our working time," she says.
Trying to reach to customers even when they are travelling, fast food chains have opened their outlets on a variety of locations including highways, malls, airports and metro stations.
"We have breakfast menu, extended hours, drive thrus, highway way stores, and dessert kiosk...which are addressing customer needs during different parts of the day," says Bakshi of McDonald's. On the same lines, Nirula's has launched new retail formats like Express outlets, Ice cream parlours, Metro station kiosks and fuel station outlets.
"This expansion has widened our reach and allowed us to expand out customer base significantly," says Chaudhri.

US moves to implement the export control initiatives to facilitate high tech trade with India

On the eve of US Commerce Secretary Gary Locke's trip to India next week as the head of a high-tech trade mission of 23 American companies, including Fortune 500 heavyweights and also several small and medium enterprises, the Department of Commerce has moved expeditiously to implement the export control initiatives to facilitate high tech trade with India.

On Monday, the DOC took the first steps to implement the export control policy initiatives announced by President Barack Obama and Indian Prime Minister Dr Manmohan Singh during Obama's visit to India in November, which included removing entities like the Indian Space Research Organization and the Defense Research and Development Organization and its subordinates from the DOC's Entities List.

Last week, senior Obama administration officials had told rediff.com  that  Locke had made clear that he wants all of the Indian entities on the Department of Commerce's Entities List, formally removed before he leads the trade delegation to India February 6-11 so that he has the leverage to cut some tangible deals.

Accordingly, Eric Hirschhorn, Under Secretary for Industry and Security, whose office is responsible  for the Entities List, had said that "these regulatory changes will begin the transformation of the bilateral export control policies to realize the full potential of the strategic partnership between our two countries."

On Monday, Locke said, "Today's action marks a significant milestone in reinforcing the US-India strategic partnership and moving forward with export control reforms that will facilitate high technology trade and cooperation."

The DOC's Bureau of Industry and Security, which Hirschhorn heads, published a Federal Register Notice which updated the Export Administration Regulations in several ways, vis-a-vis India.

They included:

Removing several Indian space- and defence-related companies from the Entity List. Removal from the Entity List eliminates a license requirement specific to the companies, and results in the removed companies being treated the same way as any other destination in India for export licensing purposes.

Removing India from several country groups in the Export Administration Regulations resulting in the removal of export license requirements that were tied to India's placement in those country groups.

Adding India to a country group in the EAR that consists of members of the Missile Technology Control Regime, to recognize and communicate India's adherence to the regime, the US-India strategic partnership, and India's global non-proliferation standing.

Hirschhorn said, "These changes reaffirm the US commitment to work with India on our mutual goal of strengthening the global non-proliferation framework."

The White House, with reference to this issue that had peeved India over the years, said during Obama's visit that "Commensurate with India's non-proliferation record and commitment to abide by multilateral export control standards, the US will remove all civil space and defense-related entities from the Department of Commerce 'Entity List.'

Locke, in an exclusive interview with India Abroad, the newspaper in the United States owned by rediff.com  earlier this month, had said that the promise by President Obama to lift the curbs on ISRO, DRDO and other Indian companies on the DOC's Entity List was one of the tangibles of the visit.

He said, "In terms of  benefits on India's side, obviously the agreement on export controls, which recognizes that India will soon hopefully join the various multilateral regimes that control exports and also will enable the sale of very high technology goods to India, as requested and desired by India," was where New Delhi was able to achieve many of their top priorities from this visit."

Locke said in the interview that this was "enormously significant because with these agreements reached on exports controls and the removal of some (Indian) organizations from the Entities List, it would make a tremendous impact and difference."

He explained, "The Entities List had made it much more difficult for these organizations to receive high-tech American goods and so the entire agreement will advance greater research and development within many of these organizations using very high, sophisticated technological goods from the United States, and of course, it will hasten the innovation industry within India."

In its posting in the Federal Register yesterday, the BIS said, "In this final rule, the Bureau of Industry and Security amends the Export Administration Regulations to implement several components of the bilateral understanding between the United States and India announced by President Obama and India's Prime Minister Singh on November 8, 2010."

"This is the first in a series of rules implementing the President's and the prime minister's commitment to work together to strengthen the global non-proliferation and export control framework and further transform our bilateral export control cooperation to realize the full potential of the strategic partnership between our two countries," it said.

The BIS said, "These reforms reflect India's non-proliferation record and commitment to abide by multilateral export control standards."

The entities to be removed are ISRO and its subordinates, Liquid Propulsion Systems Center, Solid Propellant Space Booster Plant, Sriharikota Space Centre, and Vikram Sarabhai Space Centre.

Also DRDO and its subordinates, Armament Research and Development Establishment, Defense Research and Development Lab, Missile Research Development Complex, and Solid State Physics Laboratory.

Also, on this initial list of entities removed is Bharat Dynamics Limited.

Earlier, one senior official in explaining the proposed license exception the Commerce Department published in December said that these "had two primary groups of countries and India was included in the group of countries to which Wassennar Basic List items could be exported without a license under certain conditions."

"The second group of countries was limited to countries that are members of the four multi-lateral export control regimes or NATO members that are members of at least three of the regimes," the official said, and pointed out that "India is not a member of all four regimes or a NATO member."

But the official reiterated that the Commerce Department "is, however, working quickly to publish a regulation that will remove Indian space and defense-related entities from the Entity List and enact other India-specific export control changes."

According to the official, this was a specific India track in order to expedite the removal of Indian entities so that "there can be a clean slate when the Secretary visits India with the high-tech business development mission."

The BIS, controls exports and re-exports of dual-use commodities, technology and software for reasons on national security, missile technology, nuclear non-proliferation, chemical and biological weapons non-proliferation, crime control, regional stability and foreign policy.

Source : Rediff

Air India to offer discount to families of paramilitary personnel and senior citizens

Air India on Tuesday enhanced the ambit of discount on tickets to paramilitary personnel by extending the benefit to their family members.
Besides, the national carrier also made the discount uniform for senior citizens, according to an airline statement.
The discounts will be available to personnel from the Border Security Force, Indo-Tibetan Border Police, Coast Guard, Central Industrial Security Force, Central Reserve Police Force, Assam Rifles, Railway Protection Force, Intelligence Bureau and Sashastra Seema Bal.
A discount of 50 per cent, other than on apex fares, on the basic fare component will be available on all fare levels in the economy class for domestic sectors only, it said.
Also, effective January 22, senior citizens' discount has been made uniform for both men and women under which any person of 63 years of age can avail a discount of 50 per cent on the basic fare component of the normal economy class fare.
Earlier, the discount was available to men above 65 years and women above 63 years. Additionally, the airline has also extended 50 per cent concession on children's tickets to all levels of economy class except on apex fares on domestic sectors from January 24.
Children who have completed two years but have not completed 12 years of age are eligible for the discount.

Source :  Rediff

Reliance allots 1.6 lakh shares to its employees under the Employees Stock Option Scheme (ESOP)

Corporate giant Reliance Industries (RIL) on Tuesday said it has allotted 1.6 lakh shares to its employees under the Employees Stock Option Scheme (ESOP).
"The company has allotted 1,60,832 equity shares of Rs 10 each, on January 22, 2011, pursuant to the Employees Stock Option Scheme," Mukesh Ambani-led energy giant said in a filing to the Bombay Stock Exchange (BSE).
Earlier, RIL had announced the allotment of 2.86 lakh shares under the ESOP scheme on January 5 this year.
Besides, in November 2010, RIL had announced the allotment of 2.25 lakh shares to employees, while in October last year the company had allotted 2.18 lakh shares to its employees.
Last week, the company had reported a 28.14 per cent growth in its net profit at Rs 5,136 crore (Rs 51.36 billion) for the third quarter of the current financial year, against a net profit of Rs 4,008 crore (Rs 40.08 billion) in the year-ago period.
Shares of RIL on Tuesday ended at Rs 958.55, down 1.29 per cent from previous close on the BSE.

'Is India doing anything to get back black money abroad!'

Distinguished lawyer Anil Divan who is arguing the case related to black money stashed overseas discusses the legal details of the case and is optimistic that the illicit wealth can be brought back to India.

Finance Minister Pranab Mukherjee on Tuesday batted for the UPA government in the sensitive issue of black money stashed abroad by Indians. He was asked to do so by Prime Minister Manmohan Singh because it is such an important case.

In the chaotic world of news from New Delhi, people must not lose focus of this public interest litigation being heard by the Supreme Court.

The case was filed by noted lawyer and former Union minister Ram Jethmalani, former secretary general of Lok Sabha Subhash Kahsyap, former top cops K P S Gill and Julio F Ribeiro, and others, to force the Manmohan Singh-led government to bring back the illicit wealth -- estimated at a whopping $1.5 trillion -- stashed abroad.

The amount is nearly one-and-a-half-times India's gross domestic product. A window has been opened by the German government, giving India the opportunity to start what could be an excruciatingly-long legal process required in getting such sensitive information from secretive banks in tax havens.

The case is being argued by distinguished lawyer Anil Divan on behalf of these litigants.

Ram Jethmalani has sought directions to the Union government to act upon a report that Germany was willing to share details of Indians having accounts in banks based in Liechtenstein.

Germany obtained the names of illegal money depositors /account holders by bribing an official of a Liechtenstein bank.

This is an unprecedented case, and Justice B. Sudarshan Reddy and Justice S S Nijjar, the Supreme Court judges who are hearing the matter, have already acknowledged this by saying that it is a mind-boggling case.

"It is not a case of tax. The issue involved is of serious nature. Keep aside all the things. Let us consider the persons named," the judges said.

The case has certainly moved a bit. At the last hearing, the government confessed that there were 12 trusts owned by 26 tax assesses (including Non-Resident Indians), that hold accounts in the Swiss and German banks in Liechtenstein.

Jethmalani firmly believes that the government has adopted the wrong procedure to apply -- for the names of the illegal Indian account holders -- to the German government, knowing very well that the application through the current route would be rejected.

This is a very serious charge and is currently under scrutiny.

Anil Divan, meanwhile, is assiduously trying to force the government to move so as to get back the money that rightfully belongs to the Indian people.

While talking exclusively to rediff.com, before Finance Minister Pranab Mukherjee's press conference on Tuesday, Divan discussed the legal details of the case and also showed optimism in fighting a case that crucial to national interest.

In his press conference, Mukherjee tried to convince the country that the government is not hiding anything, but a close reading of Divan's argument and Mukherjee's defence shows that the finance minister was less than successful in giving satisfying answers to some crucial questions.

Through proper legal means, the Indian people's money must come back to India, Divan argues. He charged that the government is applying for information under the wrong route and the resultant wrong response that will get will only further delay taking any real action against the culprits.

An anguished Divan says that those who are pessimistic about India getting back the huge amounts of black money hoarded abroad have no right to live in India as they do not have faith in democracy.

Excerpts from the interview with Anil Divan:

What's your plea to the Supreme Court in this case of illegal money stashed aboard?

The case is about trailing and bringing back enormous amount of money lying stashed abroad in various tax havens like Liechtenstein banks, Swiss banks, Mauritius, Dubai, Cayman Islands, Jersey Islands, etc. They are all tax havens.

The fact that large amounts of money is abroad has been substantiated by the Global Integrity Report. Professor R Vidyanathan (of IIM Bangalore) has written about it and we have taken that into consideration.

Some say it is billions of dollars and some says it is trillion of dollars (that has been stashed away in tax havens) but there is no doubt that there is a large amount of Indian money there. We should again substantiate it by what Prime Minister Manmohan Singh said: He said that one of our priorities will be to bring back this money back in first hundred days (after the UPA came back to power and formed a government after the general elections in 2009).

Yes, he said it during 2009 election time. . .

Right, that everybody knows. Two things are undisputed. A large amount of money is stashed abroad and we should do everything to bring it back. The purpose of the petition is that government is not taking proper action and the Supreme Court should direct the government to bring the money back.

We have given three broad instances. What the United States government did. . . the American government came down heavily on UBS, which is the premier bank of Switzerland, also operating in America.

The US-based UBS International Inc entered into a deferred agreement with the Department of Justice. They were willing to pay $780 million. We have got the information from the web site.

How did they manage it?

The US Department of Justice alleged that UBS was conspiring to defraud the US by impeding the internal revenue services using various measures. They were trying to get US citizens to part with their money to deposit it in the Swiss bank and defraud the Internal Revenue Service of the US.

Let me quote what John A DiCicco, acting Assistant Attorney General of Justice Department's tax division has to say. He said, "Today's agreement is but one milestone in an ongoing law enforcement effort to reassure hardworking and law-abiding taxpayers who pay their fair share of taxes and that those who don't pay will pay a heavy price. The veil of secrecy has been pulled aside and we will continue to aggressively pursue those who shirk their federal tax obligations or assist others in doing so."

Superb! Does India also have a case on the same lines?

That's what I am saying. India is doing nothing!

Can India also get it like the US did, since our laws differ?

But tax evasion is tax evasion. If some officers of the bank are assisting Indian citizens, then, of course, you can do it.

What are other two instances of the three that you talked about?

In February 2008, the German authorities accessed information from an employee of a Liechtenstein bank. They bought information of various secret accounts lying in the Liechtenstein bank.

We should understand that Liechtenstein is not a part of Germany. It is an independent principality. If it was a part of Germany, it would have straightaway accessed those accounts. So Germany had to get it.

By bribing the officer .

Yeah. Secondly, having got these accountholders' names, Germany announced that they are ready to give this information, free of charge, to any other states. They were not interested in any other citizens. They were interested in Germans only. We should have got this information.

Why could not we get it?

You should ask the government. That exactly is our petition. Why didn't the government ask for it?

Solicitor General Gopal Subramanium had argued that "  since German authorities had not responded to India's request for sharing LGT Bank data, India was forced to take recourse to Double Taxation Avoidance Agreement."

I don't think this (Subramanium's argument before the court) is correct!

Why?

Because they are not disclosing the letters.

The original letter written to the German government requesting information?

Yes. They are not disclosing the letters. The correspondence with the German government is two-fold. One is where they gave the names. But, before they gave names -- for one-and-a-half years they were corresponding with Germans. What is so secret about it?

Second, they are invoking the DTAA. That DTAA means that German citizens, on the one side, and Indian citizens, on the other, should not be taxed in both countries. If they are taxed in both countries they would get relief.

In this case of illegal Indian account holders there are no German citizens' names we are asking for. The question is only related to Indian citizens having accounts in the Liechtenstein bank. It has nothing to do with German citizens, nor does it have anything to do with double taxation.

So where is the question of applying under DTAA? As a Times of India report says, 'Government is using Germany as a smokescreen'. That's true.

The third instance we have talked about is related to (Pune-based real estate consultant) Hassan Ali Khan. The government itself has issued a showcause notice saying that Khan has billions of dollars in Swiss bank and Singapore bank accounts, et cetera. The government's own allegation is that he has dealings with (Saudi Arabian arms dealer) Adnan Khashoggi.

He (Khan) has got money from him (Khashoggi), this is the government's allegation. Yet no criminal case against him, no money laundering case against him, is moving. No information is available on him.

In fact, it was reported that he had a forged passport. He should have been immediately prosecuted. The forgery is equally an offence in Switzerland so there would be dual criminality.

They could have proceeded on all these accounts, but the government has not done so.

Our complaint is that the Government of India has a lot of options. But it is not exercising these for its own reasons. Of course, Indian citizens should know why they are not exercising all the options.

Let me play the Devil's advocate here. The government is saying that it is doing enough. It has international law to follow. It is going slowly because they want more names to come out. If the names given by Liechtenstein bank are revealed, whatever government has got it so far, India would not look a responsible party. The government is saying it's abiding by the confidentiality clause.

I think this has no relevance at all. What is the relevance of the Liechtenstein bank when German government has offered names to us? The German government has got the names and have prosecuted its citizens. Has the German government lost its credibility?

What's the government's stand in the court?

The government's case is that because of DTAA they are not doing it.

As far as Swiss banks are concerned, the government is saying that the Swiss laws don't permit (disclosure of information on bank account holders).

The government's stand is all opaque; it is confusing. The whole idea is to confuse everybody and just go on talking. That's all.

Will this case reach its logical conclusion? How seriously do you think about it?

We filed such public interest litigations to make the public aware. It is common knowledge how this government is functioning. We have got the 2G spectrum scam, we have seen the CWG-related cases

We are trying to build public opinion. The public should be aware what people in power are not doing. I am not concerned with this or that political party. I am only concerned about law.

The law should be enforced and the lawbreaker should be bought to book. And our money... if it comes back, all our social schemes and social actions will benefit tremendously. If a trillion dollars worth of wealth comes back, you can do lots of thing for the poor and the deprived.

Isn't this Utopia...?

(Angrily) It is not Utopia. It's not at all Utopia. It will come back. Look at what has happened in Bihar. People said it's a dead case. It has revived. What happened there can happen here, too.

If you think like this that means you are losing faith in democracy. In a democracy, you must fight for your rights.

In your case, already, 30 names have come. . .

We don't know the numbers. We don't know if the government is telling the truth.

On the records of the court, no numbers are mentioned.

You know how money gets out of India and how it's deposited abroad. There are too many veils. People can be pessimistic because these names will be some obscure names. How will, then, the trail lead to actual accused?

You think names are going to come and something will happen. I am concerned with the issue that law must be enforced. Strictly.

In the Jain hawala case that I fought not much happened. But we don't lose heart in a democracy. We have to continue fighting.

People in power must do something or create pressure on them to act. If you think this effort is Utopian, then we should go and live in dictatorial country... why live in a democracy? I don't subscribe to defeatism.

Why don't you think that the money may come? Things may improve. Even if you catch two or three big names, we should act.

But the same CBI will be investigating it if and when the names arrive.

We have to fight. I have fought against the CBI (Central Bureau of Investigation) so much. You have to love democracy. No need to be a cynic. If nothing is going to happen, then go to Sai Baba temple. Why are you here?

See you have raised the CBI question. I have been fighting all these years that CBI should be made an autonomous body, like the judiciary, the CEC, the CAG and the CVC.

Of course, the CBI is going to do nothing. It should be independent. We are fighting for it since the last 20 years. Maybe we will get independent and autonomous status for CBI after you and I are dead. We may get it after 50 years, but we will get it!

I am saying

You are saying that nothing is going to happen. But I will keep on fighting.

How do you see this case going?

We are going to fight to see that something is done. We want to establish the principle. Why do you (the government) say this is the tax-related case? That's the issue. Why could it not be corruption money? Why it could not be narcotic-related money or terrorism-funding or any other thing? Why should the government assume that it's a tax issue?

Who told them to do it so (to apply under DTAA)? That shows (their intention). They went under DTAA, which was not applicable in the case at all, with a view to maintaining confidentiality!

If they (the government) have done a wrong thing they should come out openly and say we have done a wrong thing. We are pointing out how it is wrong. They claim our prestige will go. What is your prestige today? Australians say they haven't been paid (in the Commonwealth Games-related issue). What is your prestige? You have no prestige!

If you go outside India we hear about scams and scamsters. The government is doing nothing! My individual reputation as an Indian is affected all over the world.

How can India get this money back? What are your suggestions?

I don't know. You give me the power, I will get the names. But that's not the point.

The point is they don't want to do it. You go and ask them and don't ask me. Go and ask solicitor general (Gopal Subramanium). You are asking the wrong questions to the wrong person on the wrong assumptions.

Via : Rediff

BSE Bulk Deals to Watch - Jan 25 2011

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
25/1/2011 530901 ACIL SONAL INTERNATIONAL LTD B 720099 4.01
25/1/2011 531720 Alpha Graphic KALPESH KIRTIKUMAR SHAH B 87986 9.05
25/1/2011 531720 Alpha Graphic SONAL INTERNATIONAL LTD S 88700 9.04

25/1/2011 531678 Anand Credit MUKESH B WAGHELA (HUF) B 90000 8.00
25/1/2011 521131 Anjani Fabrics PATEL KAPILABEN SOMABHAI B 56651 54.03
25/1/2011 521131 Anjani Fabrics BHIMSAIN S GOYAL HUF S 50000 54.00
25/1/2011 524760 Arvind Intl JITENDRAKUMAR S MALAVIYA B 52001 20.90
25/1/2011 524760 Arvind Intl RAKESH LAHOTI S 50000 20.90
25/1/2011 505029 Atlas Cycle VIJAY AGGARWAL B 24000 241.40
25/1/2011 505029 Atlas Cycle CROSSEAS CAPITAL SERVICES PRIVATE LIMITED B 93277 239.01
25/1/2011 505029 Atlas Cycle A K G SECURITIES AND CONSULTANCY LTD B 86732 242.28
25/1/2011 505029 Atlas Cycle A K G SECURITIES AND CONSULTANCY LTD S 86732 242.53
25/1/2011 505029 Atlas Cycle CROSSEAS CAPITAL SERVICES PRIVATE LIMITED S 93277 238.72
25/1/2011 533304 C. Mahendra Exports A K G SECURITIES AND CONSULTANCY LTD B 799595 129.52
25/1/2011 533304 C. Mahendra Exports CROSSEAS CAPITAL SERVICES PRIVATE LIMITED B 788069 126.00
25/1/2011 533304 C. Mahendra Exports GENUINE STOCK BROKERS PVT. LTD. B 338194 129.37
25/1/2011 533304 C. Mahendra Exports H P SHARE SHOPPE B 574080 130.35
25/1/2011 533304 C. Mahendra Exports GENUINE STOCK BROKERS PVT. LTD. S 338194 129.43
25/1/2011 533304 C. Mahendra Exports H P SHARE SHOPPE S 574080 130.36
25/1/2011 533304 C. Mahendra Exports A K G SECURITIES AND CONSULTANCY LTD S 799595 129.52
25/1/2011 533304 C. Mahendra Exports CROSSEAS CAPITAL SERVICES PRIVATE LIMITED S 788269 126.13
25/1/2011 523207 Camlin KENT RESORTS PRIVATE LIMITED B 387249 58.44
25/1/2011 531216 Comfort Intech JMP SECURITIES PVT LTD B 2309039 3.95
25/1/2011 531216 Comfort Intech JMP SECURITIES PVT LTD S 2800981 3.96
25/1/2011 524590 Dinesh Allorga SHAYM AGARWAL HUF B 28500 34.79
25/1/2011 524590 Dinesh Allorga VINITA SANJAY JOSHI S 31000 34.80
25/1/2011 524590 Dinesh Allorga SANJAY AMBADAS JOSHI S 35200 34.80
25/1/2011 508918 Greycells Edu PUSHPA K SHARMA B 46842 44.32
25/1/2011 508918 Greycells Edu PADMAKSHI FINANCIAL SERVICES LIMITED S 44432 44.45
25/1/2011 509675 Hyderabad Inds A K G SECURITIES AND CONSULTANCY LTD B 54032 478.38
25/1/2011 509675 Hyderabad Inds H P SHARE SHOPPE B 90561 470.46
25/1/2011 509675 Hyderabad Inds CROSSEAS CAPITAL SERVICES PRIVATE LIMITED B 147217 473.55
25/1/2011 509675 Hyderabad Inds CROSSEAS CAPITAL SERVICES PRIVATE LIMITED S 147149 475.31
25/1/2011 509675 Hyderabad Inds H P SHARE SHOPPE S 90561 470.80
25/1/2011 509675 Hyderabad Inds A K G SECURITIES AND CONSULTANCY LTD S 54032 478.58
25/1/2011 530887 Incap Financial RAJENDRA TULJASHANKAR PANDYA B 25000 12.10
25/1/2011 530887 Incap Financial JAGDISHCHANDRA SHANKERLAL JOSHI B 60000 12.10
25/1/2011 530887 Incap Financial ABHAY DATTATRAY JAVLEKAR S 141565 12.10
25/1/2011 524400 Ishita Drugs AJAY RAVINDRA SHAH B 22123 47.95
25/1/2011 524400 Ishita Drugs GEETA AJAY SHAH S 22122 47.95
25/1/2011 532067 Kilpest India KEEMTEE FINANCIAL SERVICES LIMITED B 39771 23.37
25/1/2011 532067 Kilpest India BP FINTRADE PRIVATE LIMITED B 34038 23.70
25/1/2011 532067 Kilpest India KEEMTEE FINANCIAL SERVICES LIMITED S 39771 23.45
25/1/2011 532067 Kilpest India ARCADIA SHARE & STOCK BROKERS PVT. LTD S 35135 23.24
25/1/2011 511593 Libord Info LIBORD EXPORTS PRIVATE LIMITED B 55918 8.49
25/1/2011 511593 Libord Info CLIO FINANCE LTD. S 55918 8.49
25/1/2011 530497 Marvel Capital SLP TRADERS (SATISH VASANT GHONE ) B 52960 28.49
25/1/2011 530497 Marvel Capital SULOCHANA GANWANI S 40000 28.50
25/1/2011 530497 Marvel Capital PREETESH N JAIN S 35000 28.50
25/1/2011 505525 Parichay Invest PRADEEP NARENDRA BHATT S 6700 214.65
25/1/2011 531467 Polypro Fibrils RAVINDRA KALIDAS SHAH B 48033 25.40
25/1/2011 531467 Polypro Fibrils JAYESH RAVINDRA SHAH S 48032 25.40
25/1/2011 509839 Punjab Wool HITEN CHANDRAKANTBHAI PARMAR B 110455 14.01
25/1/2011 509839 Punjab Wool HITEN CHANDRAKANTBHAI PARMAR S 110454 14.06
25/1/2011 530111 Raj Packaging BP FINTRADE PRIVATE LIMITED B 29246 40.05
25/1/2011 530111 Raj Packaging JYOTI PORTFOLIO LIMITED B 20120 39.57
25/1/2011 530111 Raj Packaging JYOTI PORTFOLIO LIMITED S 22225 40.05
25/1/2011 530111 Raj Packaging BP FINTRADE PRIVATE LIMITED S 27121 39.80
25/1/2011 590077 Ranklin Sol NARAYANA RAO KODALI S 35936 19.36
25/1/2011 504378 Ravinay Trad ASHOK KUMAR B 17500 224.60
25/1/2011 504378 Ravinay Trad P R & COMPANY B 15000 224.60
25/1/2011 504378 Ravinay Trad ABHISHEK CAPLEASE PRIVATE LTD B 25000 224.60
25/1/2011 504378 Ravinay Trad HARSHA RAMESH VALA B 20000 224.60
25/1/2011 504378 Ravinay Trad SAURABH GUPTA S 24000 224.60
25/1/2011 531312 Sanraa Media JMP SECURITIES PVT LTD B 6519551 0.16
25/1/2011 512048 Splash Media SANDEEP STOCK PRIVATELIMITED B 500000 122.72
25/1/2011 507747 TTK Healthcare CROSSEAS CAPITAL SERVICES PRIVATE LIMITED B 114807 447.86
25/1/2011 507747 TTK Healthcare CROSSEAS CAPITAL SERVICES PRIVATE LIMITED S 114807 448.06
25/1/2011 517506 TTK Prestige CROSSEAS CAPITAL SERVICES PRIVATE LIMITED B 139395 1908.50
25/1/2011 517506 TTK Prestige CROSSEAS CAPITAL SERVICES PRIVATE LIMITED S 139395 1909.93
25/1/2011 532311 Tutis Tech DASH PHARMACEUTICALS PVT LTD B 101020 18.10
25/1/2011 532311 Tutis Tech DASH PHARMACEUTICALS PVT LTD S 121020 17.80
25/1/2011 590111 Vaishnavi Gold ABHI CAPITAL SERVICES LIMITED B 63000 20.18
25/1/2011 590111 Vaishnavi Gold VINAY JAIN S 55000 20.20
25/1/2011 532338 Valuemart Info JMP SECURITIES PVT LTD B 708562 6.82
25/1/2011 532338 Valuemart Info JMP SECURITIES PVT LTD S 689590 6.82
25/1/2011 531650 VAX Housing SARDA MADHUSUDAN NARAYANLAL B 30000 54.00
25/1/2011 531650 VAX Housing DEWANG BRAHMBHATT B 87311 54.47
25/1/2011 531650 VAX Housing MEHUL PRANLAL MEHTA B 47705 55.25
25/1/2011 531650 VAX Housing JITENDRAKUMAR S MALAVIYA B 25000 53.19
25/1/2011 531650 VAX Housing J V STOCK BROKING PRIVATE LIMITED B 33984 54.70
25/1/2011 531650 VAX Housing J V STOCK BROKING PRIVATE LIMITED S 33984 53.99
25/1/2011 531650 VAX Housing HARSHA MAYURBHAI SHETH S 36000 52.25
25/1/2011 531650 VAX Housing DEWANG BRAHMBHATT S 105645 54.60
25/1/2011 531650 VAX Housing MEHUL PRANLAL MEHTA S 36241 53.86
25/1/2011 530769 Venus Universal ABHAY KUMAR SUDHAKAR KALE B 265856 0.31
25/1/2011 531865 Volant Textile PRAVEEN KUMAR ARORA B 50000 50.20
25/1/2011 531249 Well Pack Papers REGENT FINANCE CORPORATION PRIVATE LIMITED B 1715000 14.40
* B - Buy, S - Sell

NSE Bulk Deals to Watch - Jan 25 2011

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
25-JAN-2011,ATLASCYCLE,Atlas Cycles (Haryana) Lt,A K G SECURITIES AND CONSULTANCY LTD.,BUY,26345,244.32,-
25-JAN-2011,ATLASCYCLE,Atlas Cycles (Haryana) Lt,B M TRADERS,BUY,21697,240.02,-
25-JAN-2011,ATLASCYCLE,Atlas Cycles (Haryana) Lt,BLUE PEACOCK SECURITIES PVT LT,BUY,22000,242.58,-

25-JAN-2011,ATLASCYCLE,Atlas Cycles (Haryana) Lt,BP FINTRADE PRIVATE LIMITED,BUY,19162,245.45,-
25-JAN-2011,ATLASCYCLE,Atlas Cycles (Haryana) Lt,CNB FINWIZ PRIVATE LIMITED,BUY,18042,237.70,-
25-JAN-2011,ATLASCYCLE,Atlas Cycles (Haryana) Lt,CROSSEAS CAPITAL SERVICES PVT. LTD.,BUY,92903,238.61,-
25-JAN-2011,ATLASCYCLE,Atlas Cycles (Haryana) Lt,EXCEL MERCANTILE PRIVATE LIMITED,BUY,23562,241.47,-
25-JAN-2011,ATLASCYCLE,Atlas Cycles (Haryana) Lt,GENUINE STOCK BROKERS PVT LTD,BUY,18515,240.06,-
25-JAN-2011,ATLASCYCLE,Atlas Cycles (Haryana) Lt,GIAN GUPTA,BUY,22454,241.77,-
25-JAN-2011,ATLASCYCLE,Atlas Cycles (Haryana) Lt,MANMOHAN DUA,BUY,18207,241.30,-
25-JAN-2011,ATLASCYCLE,Atlas Cycles (Haryana) Lt,MARWADI SHARES AND FINANCE LIMITED,BUY,18463,241.88,-
25-JAN-2011,ATLASCYCLE,Atlas Cycles (Haryana) Lt,SHREE AERAN MARKETING PVT. LTD.,BUY,22114,243.45,-
25-JAN-2011,CAMLIN,Camlin Ltd.,BP FINTRADE PRIVATE LIMITED,BUY,312761,60.25,-
25-JAN-2011,CAMLIN,Camlin Ltd.,KENT RESORTS PRIVATE LIMITED,BUY,909813,59.04,-
25-JAN-2011,CMAHENDRA,C.Mahendra Exports Ltd,ALBERS DIAMONDS PRIVATE LIMITED,BUY,455000,132.96,-
25-JAN-2011,CMAHENDRA,C.Mahendra Exports Ltd,CROSSEAS CAPITAL SERVICES PVT. LTD.,BUY,800660,126.08,-
25-JAN-2011,CMAHENDRA,C.Mahendra Exports Ltd,GENUINE STOCK BROKERS PVT LTD,BUY,496019,129.94,-
25-JAN-2011,FARMAXIND,Farmax India Ltd,REGENT FINANCE CORPORATION PVT. LTD.,BUY,1781873,8.55,-
25-JAN-2011,HYDRBADIND,Hyderabad Industries Ltd,CROSSEAS CAPITAL SERVICES PVT. LTD.,BUY,146984,474.94,-
25-JAN-2011,INDIAINFO,India Infoline Limited,INDIA INFOLINE LIMITED,BUY,2479945,81.39,-
25-JAN-2011,INSECTICID,Insecticides (India) Limi,NIKON FINLEASE PVT. LTD,BUY,104515,261.26,-
25-JAN-2011,JUPITER,Jupiter Bioscience Ltd,BP FINTRADE PRIVATE LIMITED,BUY,346937,32.56,-
25-JAN-2011,JUPITER,Jupiter Bioscience Ltd,JMP SECURITIES PVT LTD,BUY,341662,32.04,-
25-JAN-2011,JUPITER,Jupiter Bioscience Ltd,RAJ FINVEST,BUY,455928,31.65,-
25-JAN-2011,JUPITER,Jupiter Bioscience Ltd,TRANS FINANCIAL RESOURCES LTD,BUY,1410583,32.05,-
25-JAN-2011,KALINDEE,Kalindee Rail Nirman (Eng,SHASHANK CHAUDHARY,BUY,74959,184.54,-
25-JAN-2011,OUDHSUG,The Oudh Sugar Mills Ltd,G M B INVESTMENT PVT LTD,BUY,392670,36.43,-
25-JAN-2011,TTKHEALTH,TTK Healthcare Limited,CNB FINWIZ PRIVATE LIMITED,BUY,55418,444.76,-
25-JAN-2011,TTKHEALTH,TTK Healthcare Limited,CROSSEAS CAPITAL SERVICES PVT. LTD.,BUY,114761,447.77,-
25-JAN-2011,TTKHEALTH,TTK Healthcare Limited,NAMAN SECURITIES & FINANCE PVT. LTD,BUY,53128,443.70,-
25-JAN-2011,TTKPRESTIG,TTK Prestige Ltd.,CROSSEAS CAPITAL SERVICES PVT. LTD.,BUY,139405,1908.49,-
25-JAN-2011,ATLASCYCLE,Atlas Cycles (Haryana) Lt,A K G SECURITIES AND CONSULTANCY LTD.,SELL,26345,244.23,-
25-JAN-2011,ATLASCYCLE,Atlas Cycles (Haryana) Lt,B M TRADERS,SELL,21697,240.13,-
25-JAN-2011,ATLASCYCLE,Atlas Cycles (Haryana) Lt,BLUE PEACOCK SECURITIES PVT LT,SELL,11500,247.13,-
25-JAN-2011,ATLASCYCLE,Atlas Cycles (Haryana) Lt,BP FINTRADE PRIVATE LIMITED,SELL,19169,245.35,-
25-JAN-2011,ATLASCYCLE,Atlas Cycles (Haryana) Lt,CNB FINWIZ PRIVATE LIMITED,SELL,18042,237.83,-
25-JAN-2011,ATLASCYCLE,Atlas Cycles (Haryana) Lt,CROSSEAS CAPITAL SERVICES PVT. LTD.,SELL,92903,239.09,-
25-JAN-2011,ATLASCYCLE,Atlas Cycles (Haryana) Lt,EXCEL MERCANTILE PRIVATE LIMITED,SELL,23562,241.47,-
25-JAN-2011,ATLASCYCLE,Atlas Cycles (Haryana) Lt,GENUINE STOCK BROKERS PVT LTD,SELL,18515,240.21,-
25-JAN-2011,ATLASCYCLE,Atlas Cycles (Haryana) Lt,GIAN GUPTA,SELL,22454,242.67,-
25-JAN-2011,ATLASCYCLE,Atlas Cycles (Haryana) Lt,MANMOHAN DUA,SELL,18207,240.20,-
25-JAN-2011,ATLASCYCLE,Atlas Cycles (Haryana) Lt,MARWADI SHARES AND FINANCE LIMITED,SELL,18463,242.42,-
25-JAN-2011,ATLASCYCLE,Atlas Cycles (Haryana) Lt,SHREE AERAN MARKETING PVT. LTD.,SELL,22114,243.71,-
25-JAN-2011,CAMLIN,Camlin Ltd.,BP FINTRADE PRIVATE LIMITED,SELL,309289,60.30,-
25-JAN-2011,CMAHENDRA,C.Mahendra Exports Ltd,CROSSEAS CAPITAL SERVICES PVT. LTD.,SELL,800660,126.08,-
25-JAN-2011,CMAHENDRA,C.Mahendra Exports Ltd,GENUINE STOCK BROKERS PVT LTD,SELL,496019,130.02,-
25-JAN-2011,FARMAXIND,Farmax India Ltd,REGENT FINANCE CORPORATION PVT. LTD.,SELL,177026,8.55,-
25-JAN-2011,HYDRBADIND,Hyderabad Industries Ltd,CROSSEAS CAPITAL SERVICES PVT. LTD.,SELL,146952,473.63,-
25-JAN-2011,HYDRBADIND,Hyderabad Industries Ltd,EMKAY INVESTMENT MANAGERS,SELL,50000,465.14,-
25-JAN-2011,INSECTICID,Insecticides (India) Limi,NIKON FINLEASE PVT. LTD,SELL,83005,261.41,-
25-JAN-2011,JUPITER,Jupiter Bioscience Ltd,BP FINTRADE PRIVATE LIMITED,SELL,346937,32.63,-
25-JAN-2011,JUPITER,Jupiter Bioscience Ltd,JMP SECURITIES PVT LTD,SELL,175470,31.92,-
25-JAN-2011,JUPITER,Jupiter Bioscience Ltd,RAJ FINVEST,SELL,455498,31.57,-
25-JAN-2011,JUPITER,Jupiter Bioscience Ltd,TRANS FINANCIAL RESOURCES LTD,SELL,1410583,32.03,-
25-JAN-2011,KALINDEE,Kalindee Rail Nirman (Eng,SHASHANK CHAUDHARY,SELL,74959,184.68,-
25-JAN-2011,OUDHSUG,The Oudh Sugar Mills Ltd,NEW INDIA RETAILING & INVESTMENT LIMITED,SELL,392670,36.42,-
25-JAN-2011,TTKHEALTH,TTK Healthcare Limited,CNB FINWIZ PRIVATE LIMITED,SELL,55418,445.28,-
25-JAN-2011,TTKHEALTH,TTK Healthcare Limited,CROSSEAS CAPITAL SERVICES PVT. LTD.,SELL,114761,448.09,-
25-JAN-2011,TTKHEALTH,TTK Healthcare Limited,NAMAN SECURITIES & FINANCE PVT. LTD,SELL,53436,444.33,-
25-JAN-2011,TTKPRESTIG,TTK Prestige Ltd.,CROSSEAS CAPITAL SERVICES PVT. LTD.,SELL,139405,1908.14,-

Rate sensitives drag Sensex below 19K

The Sensex fell at the close, slipping below 19000 levels, weighed by rate sensitive sectors like banks and realty, which were under pressure after RBI’s move
Major headlines
RBI hikes repo, reverse repo rates by 25 basis points
Poor Q3 results drag Hindustan Unilever
Sterlite Industries Q3 consolidated net profit up 60% yoy

Indian indices
Though Reserve Bank of India’s move was on expected lines with the markets, it failed to pull the key benchmark indices higher at the close. The indices slipped in red in the second half of trade dragged lower by rate sensitive sectors like banks and realty, which were under pressure after RBI’s decision.
The RBI raised repo rate and reverse repo rate by 25 basis points to 6.25% and to 5.5% respectively while the CRR was left unchanged. The GDP growth forecast has been retained at 8.5% with upward bias while WPI inflation forecast has been raised from 5.5% to 7% for FY11. Rising inflation concerns and likely slow down in economic growth spooked Indian indices, with Sensex below 19000 levels and Nifty below 5700 mark. The benchmark indices witnessed extreme volatility today.
Traded turnover was far higher than the average turnover seen in last few sessions, mainly ahead of derivates contracts expiry on Thursday (January 27, 2011). Total traded turnover reported by exchanges at Rs2,22,692.3 crore, including Rs2,06,028.02 crore from F&O segment. It showed that lot of shorts triggered in rate sensitives - particularly in private banks and mainly ahead of expiry.
The Sensex started the trade 76 points higher at 19227 on account of strong global indices. The index was trading with gains before the announcement of the central bank’s policy. In the mid-morning session, the Sensex hit the day’s high of 19341 after the RBI hiked key rates in line with the market expectations. Rate sensitive sectors witnessed selling pressure after the RBI’s move, which dragged the index lower in the afternoon trade. The Sensex hit the day’s low of 18949 in late trade as selling intensified in banks, FMCG, healthcare, realty and auto stocks.
The Sensex fell 182 points to close at 18969 and the Nifty shut at 5687, down by 56 points.
Market sentiment
The market breadth stood negative as trailing shares outnumbered the advancing ones. Out of the 3,007 stocks traded on the BSE, 1,652 fell while 1,207 advanced whereas 148 stocks traded unchanged.
Viewing volumes
Wind turbine major - Suzlon Energy was traded the most, with over 0.26 crore shares changing hands on the BSE, followed by second largest developer - Unitech (0.26 crore shares), realty major - Indiabulls Real Estate (0.21 crore shares), India's leading steel company - Tata Steel (0.20 crore shares) and the country's third largest property developer - Housing Development & Infrastructure (0.19 crore shares).
Sectoral & stock screening
Ten sectors ended lower, while rest three closed higher. BSE Bankex was under pressure after RBI’s move and fell the most by 2.34%, followed by BSE FMCG down by 1.67% and BSE HC lost by 1.25%. On the gainers’ side - BSE Consumer Durables (CD) rose the most by 1.73%, while BSE Capital Goods (CG) and BSE Power surged by 0.28% each.
Among 'A' group stocks, top three gainers - Bharat Petroleum Corporation gained by 4.92%, IL&FS Transportation Networks rose by 3.73% and Motherson Sumi Systems advanced by 3.72%. Top three losers - Hindustan Unilever slid by 5.45%, Jaypee Infratech declined by 4.97% and Rural Electrification Corporation lost by 4.32%.
Global signals
The European markets traded mixed, after Britain's economy unexpectedly shrank in the fourth quarter and Spanish banks retreated after a recent strong run.
The Asian markets closed on a mixed note. Jakarta Composite rose by 2.63%, while Shanghai Composite ended 0.68% lower.
The US stock index futures point to a weaker opening on the Wall Street ahead of consumer confidence data.
Market Outlook: In the US, Consumer Confidence Index will be out.

Mixed outing for Asian stocks

Markets lack a single unifying theme
Asian markets ended mixed today though the markets lacked a single unifying theme and instead looked to price in country specific dynamics. The overnight US cues were very upbeat and buying support emerged for the select Asian markets while inflationary pressures pulled down equities in China and India. US stocks added sizable gains to open the week on Monday, with dollar weakness earnings from McDonald's and Halliburton. The Dow gained 108.68 points or 0.9% to close at 11,980.52. US business's hiring intentions at their highest level since 1998, according to a new survey by the National Association for Business Economists. The survey also predicted higher capital spending and investment for the next six months. The NABE study covered the responses of 84 members of its association on business conditions in their firm or industry. With the latest gains, the Dow has come within close reach of 12,000 for the first time since mid-2008.
This pushed up the Japanese stocks right from the start and sentiments were buoyed further after the Japan's central bank decided to keep its benchmark lending rate unchanged at 0.0-0.1% as it continues its battle against deflation. The size of the asset purchase fund and the cheap credit program was also kept unchanged at 5 trillion yen and 30 trillion yen respectively. The Bank of Japan also cut its growth forecast for the year starting April 2011 to 1.6 percent from 1.8 percent. Meanwhile, the growth outlook for the current fiscal year was upgraded to 3.3 percent from 2.1 percent, citing revision of past GDP statistics. The benchmark Nikkei 225 Index gained 119.31 points, or 1.15%, to 10,464 by the close.

In Australia, markets were lifted by the data released by the Australian Bureau of Statistics showing that the rate of inflation in the country unexpectedly declined in the December quarter. The Statistics Bureau revealed that its Consumer Price Index rose 0.4 percent for the quarter, hitting an annual rate of 2.7%. The figures compared to 0.7% quarterly inflation and 2.8% inflation for the September quarter. This eased the inflationary expectations slightly and the interest rate worries pertaining to hikes were taken aback. The benchmark S&P/ASX200 Index rallied 21.80 points, or 0.46 percent and closed at 4,808 points.
However, the Chinese equities failed to replicate the performance of its regional peers. Worries about further tightening measures pulled the resources and financials lower and weak global commodity prices also kept the momentum pressed. The benchmark Shanghai Composite Index dropped 18.29 points, or 0.68%, to close at 2,677.43.
In Mumbai, the key benchmark indices extended losses to hit fresh intraday lows in late trade as investors fret over the possibility of more interest rate hikes by the Reserve Bank of India to tame inflation. The central bank raised its lending as well as borrowing rates by a quarter-point to cool inflationary pressures at a quarterly policy review today, 25 January 2011. Interest rate sensitive banking, auto and realty stocks declined. As per provisional figures, the BSE 30-share Sensex was down 182.66 points or 0.95% to 18,968.62.
In other markets, the Straits Times in Singapore dropped 0.14%; Seoul Composite in South Korea gained 0.22% while Taiex in Taiwan dropped 0.23%. The euro eased slightly on profit taking after topping $1.3600 against the US dollar for the first time in two months. The US Federal Reserve is likely to leave policy unchanged and note a slight improvement in the economy's outlook at the end of a two-day meeting on interest rates today. Commodities slipped sharply today with Gold shedding another 20 dollars while crude pared one full dollar.

HUL, bank stocks lead decline as RBI hikes rates

The key benchmark indices dropped nearly 1% as investors fretted over the possibility of more interest rate hikes by the Reserve Bank of India (RBI) to tame inflation. The central bank raised its lending as well as borrowing rates by a quarter-point to cool inflationary pressures at a quarterly policy review today, 25 January 2011. Interest rate sensitive banking, auto and realty stocks declined. The BSE 30-share Sensex was down 181.83 points or 0.95%, off close to 380 points from the day's high and up close to 5 points from the day's low. Current growth and inflation trends warrant persistence with the anti-inflationary monetary stance, the RBI said.

The Sensex fell below the psychological 19,000 mark. The 50-unit S&P CNX Nifty fell below 5,700 level. FMCG major Hindustan Unilever (HUL) tumbled after disappointing Q3 results. Other FMCG stocks, too, declined. Index heavyweight Reliance Industries extended losses in late trade. The market breadth was negative in contrast with strong breadth earlier in the day. European stocks edged higher in volatile trade. Asian markets were mixed.
Intraday volatility was high as traders rolled positions in the derivatives segment from January 2011 series to February 2011 series ahead of the expiry of the near-month January 2011 contracts on Thursday, 27 January 2011. The market edged higher in early trade on firm Asian stocks. The market extended gains to hit fresh intraday high in morning trade. The market extended gains soon after the RBI announced a hike in key policy rates at about 11:30 IST. The market instantly came off highs only to bounce back immediately thereafter.
Volatility continued as the key benchmark indices hit fresh intraday lows in afternoon trade. The market recovered from lower level later. The market weakened in mid-afternoon trade. Volatility remained high as the market extended losses in late trade.
The stock market remains closed tomorrow, 26 January 2011, on account of Republic Day.
There are inflationary pressures in India and the government will have to begin supply-side management to tackle food inflation, Finance Minister Pranab Mukherjee said on Tuesday. He also said Tuesday's Reserve Bank of India rate hike is in line with the government's thinking and policy.
To control surging inflation, the Reserve Bank of India (RBI) at its quarterly policy review today, 25 January 2011, raised repo rate by 25 basis points to 6.5% and the reverse repo rate by 25 basis points to 5.5% with immediate effect. But, the central bank held the cash reserve ratio steady at 6%. Repo rate is the rate at which the RBI lends money to banks. Reverse repo is the rate at which RBI borrows funds from banks.
"As high food inflation persists, the prospect of it spilling over to the general inflation process is rapidly becoming a reality," Reserve Bank of India (RBI) Governor Duvvuri Subbarao said in the policy document. The RBI lifted its headline inflation projection for March 2011 to 7% from 5.5% previously. The central bank said inflation is likely to resume its moderating trend in the first quarter of 2011-12. The RBI stuck with its 8.5% GDP growth forecast for the current fiscal year, but with an upside bias.
The RBI extended the period for offering additional liquidity support to commercial lenders by more than two months in view of the existing cash crunch in the banking system. Banks can now access the additional liquidity support, equal to 1% of banks' net demand and time deposits, until 8 April 2011, as compared to 28 January 2011, when the facility was due to expire. The frictional liquidity shortage is expected to ease as government balances adjust to the expenditure schedule. However, banks need to focus on the underlying structural cause of liquidity tightness arising out of the gap between the credit and deposit growth rates, the RBI said.
The combined risks from inflation, the high current account deficit (CAD) and fiscal situation contribute to an increase in uncertainty about economic stability that consumers and investors will have to deal with, RBI said. To the extent that this deters consumption and investment decisions, growth may be impacted. While slower growth may contribute to some dampening of inflation and a narrowing of the CAD, it can also have significant impact on capital inflows, asset prices and fiscal consolidation, thereby aggravating some of the risks that have already been identified, it said.
It is important to emphasise that the role of monetary policy in the current inflationary situation is confined to containment and prevention of food and energy prices from spilling over into generalised inflation and anchoring inflation expectations, the central bank said. Unless meaningful output enhancing measures are taken, the risks of food inflation becoming entrenched loom large and threaten both the sustainability of the current growth momentum and the realisation of its benefits by a large number of households, the RBI said.
Another challenge to effective management of inflation by monetary policy arises from the persistence of a large fiscal deficit, the central bank said. While the government may succeed in raising receipts, both from high tax buoyancy and one-off sources, the real measure of fiscal consolidation lies in improving the quality of expenditure. If the government is able to commit more resources to capital expenditure, it will help deal with some of the bottlenecks that contribute to supply-side inflationary pressures. With reference to revenue expenditure, while large and diffused subsidies may contribute in the short term to keeping supply-side inflationary pressures in check, they may more than offset this benefit by adding to aggregate demand, the RBI policy statement said.
Capital flows, which so far have been broadly sufficient to finance the CAD, may be adversely affected, the RBI said. Faster than expected global recovery may enhance the attractiveness of investment opportunities in advanced economies, which may impact capital flows to India. This may increase the vulnerability of India's external sector. Hence, the composition of capital inflows needs to shift towards longer-term commitments such as foreign direct investment (FDI), the RBI said.
Foreign institutional investors (FIIs) bought shares worth a net Rs 194.90 crore on Monday, 24 January 2011, higher than an inflow of Rs 37.60 on Friday, 21 January 2011. FII outflow in January 2011 totaled Rs 3251.70 crore (till 24 January 2011). FIIs had bought equities worth Rs 2049.60 crore in December 2010.
The results announced so far showed the combined net profit of 434 companies rose 22.2% to Rs 41052 crore on 20.6% rise in sales to Rs 340036 crore in Q3 December 2010 over Q3 December 2009.
European shares edged higher in volatile trade. The key benchmark indices in Germany and France rose 0.39% and 0.18%, respectively. UK's FTSE 100 fell 0.52% as Britain's economy suffered a shock 0.5% contraction in the last three months of 2010 after December's heavy snow took a far harsher toll, official data showed on Tuesday.
Asian stocks were mixed on Tuesday, 25 January 2011. The key benchmark indices in Indonesia, Japan and South Korea rose by between 0.22% to 2.63%. The key benchmark indices in China, Hong Kong Singapore and Taiwan fell by between 0.05% to 0.68%.
The Bank of Japan held its key overnight call rate range steady at zero to 0.1% by unanimous vote on Tuesday, 25 January 2011, as widely expected, and held its overall economic assessment unchanged. It also tweaked its economic growth forecast for the fiscal year ending in March to 3.3% from 2.1% predicted in October, but cut its gross domestic product forecast for the fiscal year beginning in April 2011 to 1.6% from 1.8%.
The US Federal Reserve is likely to leave policy unchanged and note a slight improvement in the economy's outlook at the end of a two-day meeting on interest rates on Tuesday, 25 January 2011-Wednesday, 26 January 2011.
US index futures reversed initial gains. Trading in US index futures indicated that the Dow could fall 15 points at the opening bell on Tuesday, 25 January 2011.
The US Commerce Department said on Monday it was easing restrictions of exports of high-technology goods to India in recognition of the two countries' stronger economic and national security ties.
A package of US tax cuts should give a lift to a global economic recovery that had already begun to gain speed late last year, the IMF said on Tuesday as it revised its world growth forecast higher. In an updated World Economic Outlook report, the International Monetary Fund said the global economy would likely expand 4.4% this year, a touch higher than the 4.2% it forecast in October. It said it expected growth of 4.5% in 2012.
The BSE 30-share Sensex was down 181.83 points or 0.95% to 18,969.45. The index gained 189.71 points at the day's high of 19,340.99 in mid-morning trade, soon after the RBI's policy announcement. The index declined 201.84 points at the day's low of 18,949.44 in late trade.
The S&P CNX Nifty was down 55.85 points or 0.97% at 5,687.40.
The BSE Mid-Cap index fell 0.41% and the BSE Small-Cap index declined 0.35%. Both these indices outperformed the Sensex.
Most sectoral indices on BSE declined. The banking sector index Bankex (down 2.34%), FMCG index (down 1.67%), Healthcare index (down 1.25%), Realty index (down 1.2%), and Auto index (down 1.05%), underperformed the Sensex. The BSE IT index (down 0.6%), Oil & Gas index (down 0.42%), Metal index (down 0.22%), PSU index (down 0.17%), Power index (up 0.28%), Capital Goods index (up 0.28%), and Consumer Durables index (up 1.73%), outperformed the Sensex.
The market breadth, indicating the health of the market, was negative compared with strong breadth earlier in the day. On BSE, 1687 shares declined while 1,212 shares advanced. A total of 110 shares remained unchanged.
Among the 30-member Sensex pack, 19 declined while the rest rose.
BSE clocked turnover of Rs 3610 crore, higher than Rs 2906.36 crore on Monday, 24 January 2011.
Index heavyweight Reliance Industries' (RIL) fell 1.29% to Rs 958.55, off the day's high of Rs 984.45. The stock had slipped 1.57% on Monday on concerns about slow ramp up in gas production from the KG-D6 field. Gross natural gas production from RIL KG-D6 block, off India's east coast, declined 5.7% to 55.8 million metric standard cubic metres per day (mmscmd) in Q3 December 2010 from Q2 September 2010, as the company continues to struggle to find solution to problems related to the reservoir.
RIL's net profit rose 28.14% to Rs 5136 crore on 5.15% rise in net turnover to Rs 59789 crore in Q3 December 2010 over Q3 December 2009. Higher refining and petrochemicals margins boosted the performance. RIL's gross refining margin (GRM) improved to $9 per barrel in Q3 December 2010 from $5.9 per barrel in Q3 December 2009. The GRM was also higher compared to $7.6 per barrel in Q2 September 2010. The result was announced after trading hours on Friday, 21 January 2011.
PSU OMCs gained on fall in crude oil prices after crude oil prices declined 1.4% on the New York Mercantile Exchange on Monday, 24 January 2011. It was the lowest settlement price since 16 December 2010. BPCL, HPCL and Indian Oil Corporation rose by between 2.09% to 4.92%. Lower crude oil prices will reduce under-recoveries of state-run oil firms on domestic sale of diesel, LPG and kerosene at controlled prices. The government has already freed pricing of petrol.
Oil exploration firms declined as fall in crude oil prices would result in lower realizations from crude sales for oil exploration firms. ONGC and Cairn India fell 0.56% and 1.48% respectively. Oil India rose 0.9%.
Sterlite Industries rose 0.28% in volatile trade after the company announced during market hours today said consolidated net profit rose 60.28% to Rs 1101.60 crore on 24.75% rise in total income to Rs 8810.05 crore in Q3 December 2010 over Q3 December 2009.
India's largest private sector steel maker by sales Tata Steel rose 0.96% after jumping 3.06% on Monday. The company's follow-on public offer (FPO) was subscribed 6.03 times last week.
Dr Reddy's Laboratories declined 3.15%. The company announced during market hours today that consolidated net profit, excluding extra-ordinary items rose 19% to Rs 270 crore on 10% growth in revenue at Rs 1900 crore in Q3 December 2010 over Q3 December 2009, as per International Financial Reporting Standards.
Interest rate sensitive banking stocks edged lower in volatile trade after the Reserve Bank of India raised the key short term rates by 25 basis points. India's largest private sector bank by net profit ICICI Bank fell 4.21% to Rs 1038.30, off the day's high of Rs 1090.70.
India's largest private sector bank by net profit HDFC Bank declined 2.85% to Rs 2087, off the day's high of Rs 2174.70.
India's largest bank by net profit and branch network State Bank of India was declined 0.51% to Rs 2679.25. The stock hit high of Rs 2737.60 and low of Rs 2675.20. Chairman O.P. Bhatt said the bank need not raise its rates after the Reserve Bank of India increased policy rates on Tuesday by 25 basis points.
India's largest FMCG firm by sales Hindustan Unilever tumbled 5.45% after net profit declined 1.8% to Rs 638 crore on 12% rise in net sales to Rs 5027 crore in Q3 December 2010 over Q3 December 2009. The stock was the top loser from the Sensex pack. The result was announced during trading hours today.
Hindustan Unilever (HUL)'s operating margins were lower by 320 basis points (bps) in Q3 December 2010 over Q3 December 2009 due to a steep rise in input cost, and brand investments. Commenting on the results Harish Manwani, chairman of HUL said that in an inflationary environment, the company will manage the business dynamically through judicious pricing actions and increased focus on cost effectiveness while ensuring that the company remains competitive in the market place.
Among other FMCG stocks, Dabur India, ITC, United Spirits, Nestle India and Marico fell by between 0.05% to 2.28%.
Interest rate sensitive realty stocks reversed initial gains after the Reserve Bank of India raised the key policy rates. DLF, Indiabulls Real Estate, Unitech and HDIL fell by between 0.67% to 3.11%.
Interest rate sensitive auto stocks reversed initial gains on worries hike in interest rates and higher vehicle prices could dent vehicle sales. Tata Motors, Mahindra & Mahindra, Maruti Suzuki India and Bajaj Auto fell by between 0.22% to 2.25%.
UltraTech Cement rose 0.22% after net profit rose 62.7% to Rs 318.96 crore on 124.53% rise in total income to Rs 3775.86 crore in Q3 December 2010 over Q3 December 2009. However, the result is not comparable due to amalgamation of Samruddhi Cement with the company with effect from 1 July 2010.
India's third largest IT exporter by sales Wipro rose 0.42% on bargain hunting. The stock had fallen sharply over the last two days following resignations of the joint-CEOs of its information technology business. The resignations were announced at the time of announcing third quarter results before market hours on Friday, 21 January 2011.
Wipro's net profit as per International Financial Reporting Standards rose 10% to Rs 1319 crore on 12% increase in total revenue to Rs 7829 crore in Q3 December 2010 over Q3 December 2009.
India's largest software services exporter TCS fell 1.17%. The stock hit a record high of Rs 1221 on Monday, 24 January 2011. On a consolidated basis, net profit rose 9.25% to Rs 2369.83 crore on 5.35% increase in total income to Rs 9857.56 crore in Q3 December 2010 over Q2 September 2010. The result was announced after trading hours on 17 January 2011.
India's second largest software services exporter Infosys declined 0.74%. Consolidated net profit rose 2.5% to Rs 1,780 crore on 2.3% rise in revenues to Rs 7106 crore in Q3 December 2010 over Q2 September 2010 as per International Financial Reporting Standards. The result was announced before market hours on 13 January 2011.
Larsen & Toubro (L&T) gained 0.42% after company said during market hours today that it signed a joint venture with Kobe Steel for tyre and rubber industry equipment.
Meanwhile, as per reports L&T would reorganise its operations into nine business verticals as the conglomerate seeks to simplify its structure to better manage growth. Each of the nine independent companies, which has been put in place with the help of international consulting outfits Bain and McKinsey, will have an eight-member board, including three representatives from the business and three external directors.
These nine independent companies are in the business of power equipment, hydrocarbon, machinery & industrial products, building & factories, heavy engineering, metals & minerals, electrical & automation products, electrical and transmission, mechanical and materials, and infrastructure.
India's largest power equipment maker by sales Bhel rose 0.74%, extending last two days' gains triggered by good Q3 results. Net profit rose 30.82% to Rs 1403.23 crore on 24.63% rise in net sales to Rs 8849.27 crore in Q3 December 2010 over Q3 December 2009. The result was announced during trading hours on Friday, 21 January 2011.
Sanraa Media clocked highest volume of 1.41 crore shares on BSE. C Mahendra Exports (1.28 crore shares), Comfort Intech (1.17 crore shares), Ispat Industries (57.64 lakh shares) and Resurgence Mines (46.36 lakh shares) were the other volume toppers in that order.
State Bank of India clocked highest turnover of Rs 327.08 crore on BSE. C Mahendra Exports (Rs 171.37 crore), TTK Prestige (Rs 140.07 crore), ICICI Bank (Rs 136.42 crore) and Tata Steel (Rs 131.74 crore) were the other turnover toppers in that order.