BSE NSE Indian Share Market Reports 28 July 2009

BSE NSE Share Market Reports 28 July 2009

Key benchmark indices ended with modest losses after swinging wildly either ways during the course of the day. Volatility rose after the Reserve Bank of India raised inflation and GDP growth forecast while keeping key policy rates unchanged at their historical low level at a quarterly monetary policy review today, 28 July 2009. The BSE 30-share Sensex lost 43.10 points or 0.28%, off 131.52 points from the day's high but up 91.41 points from the day's low. European markets were slightly lower and most Asian stocks rose.

Poor Q1 results continued to weigh on the index heavyweight Reliance Industries for the second day in a row. Banking shares slipped. However power stocks advanced on strong response to Adani Power's initial public offer (IPO).

In stock specific activity, Tata Motors surged over 10% on better-than-expected Q1 results it announced during trading hours on Monday, 27 July 2009. Maruti Suzuki India struck a record high of Rs 1416.70. However Hindustan Unilever retraced sharply from 52-week high of Rs 306 after reporting fall in net profit in Q1 June 2009.

The Securities and Exchange Board of India (Sebi) on Monday, 27 July 2009 introduced some new norms for the comprehensive risk management system for the equity markets in the cash segment, in a move which would now reduce the margin burden on brokers. Sebi said that in case of a buy transaction in cash market, value at risk (VaR) margins, extreme loss margins and mark to market losses together will not exceed the purchase value of the transaction.

The market was volatile. After a firm start triggered by government sops to stimulate the economy announced after trading hours on Monday, 27 July 2009, the market soon slipped into the red. It cut losses after the RBI's policy announcement at about 11:15 IST. However the intraday recovery proved short lived. The market weakened again. The market bounced back one again in afternoon trade as the RBI kept policy rates at record low levels. The Sensex hit its highest level in more than a month. However, the market failed to sustain higher level and once again slipped into the red later.

The RBI has kept the key rates unchanged and increased the inflation forecast to 5% by end March 2010 from earlier 4%. The central bank raised its inflation forecast, saying an uncertain outlook for monsoon rains could "accentuate" inflation for already-high food prices. The repo rate, at which the central bank lends cash to banks, stays at 4.75%, and the reverse repo rate, at which it absorbs surplus cash from the banking system, stays at 3.25%. Both these rates are at record low level. The statutory liquidity ratio (SLR) was also kept unchanged at 24%.

The RBI also kept the cash reserve ratio (CRR), the amount of funds banks have to keep on deposit with it, unchanged at 5%. The RBI said the deposit growth is seen at 19% adding that there is scope for the banks to cut interest rates. The GDP is expected to grow at 6% in FY 2010, with an upward bias, the central bank said. At the time of the annual monetary policy announcement in April 2009, the central bank had forecast a 6% growth. So, the words 'upward bias' were the addition to that forecast.

RBI said it will maintain an accommodative monetary stance until robust signs of recovery in the economy are visible. The central bank will be ready with a roadmap to reverse the expansionary stance quickly and effectively thereafter. The Reserve Bank of India will have to reverse the expansionary measures to anchor inflation expectations and subdue inflationary pressures while preserving the growth momentum The exit strategy will be modulated in accordance with the evolving macroeconomic developments, the RBI said.

The conduct of monetary policy will continue to condition and contain perception of inflation in the range of 4% to 4.5%. This will be in line with the medium-term objective of 3% inflation consistent with India's broader integration with the global economy, the RBI said.

The central bank said it will actively manage liquidity to avoid government borrowing crowding out private credit demand. RBI also said that government will need to return to a path of fiscal consolidation

Finance Minister Pranab Mukherjee after trading hours on Monday, 28 July 2009 announced tax breaks for industrial park schemes and developers of real estate and road projects to stimulate the economy and lift growth to 8-9 percent by the end of 2010. He announced a 1% subsidy on home loans up to Rs 10 lakh, when the overall cost of the house does not exceed Rs 20 lakh.

In another measure that that could provide a boost to the realty sector the government has allowed developers of housing projects a tax holiday under section 80 IB(10) of the Income Tax Act on profits from projects approved between 1 April 2007 and 31 March 2008. The benefit is subject to a condition that the projects are completed on or before 31 March 2012.

The government has also extended tax holiday to developers of industrial parks by two years until March 2011. A tax holiday for firms engaged in food processing has also been extended. Producers of natural gas from coal-bed methane blocks would also be extended tax breaks.

Annual monsoon rains, running between June to September, are seeing a revival after a sluggish start. India's monsoon rains were 15% above normal in the week to 22 July 2009, the second consecutive week of above-average rainfall after an exceptionally dry patch at the start of the season. Total cumulative monsoon, which runs from June to September, was 19% below average, improving from a 27% deficit in the previous week, the India Meteorological Department said on Thursday, 23 July 2009.

More than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.

Meanwhile, investor focus may shift from secondary market to the primary market as Adani Power's initial public offer of 30.16 crore shares in the price band Rs 90-100 opened for subscription from today, 28 July 2009. The issue received strong investors response and was subscribed 3.96 times by 16:00 IST. Adani said institutions including T. Rowe Price International Inc. demanded twice as many shares as offered in the so-called anchor investor portion of its initial sale.

The company will raise up to Rs 3,016 crore at the upper end of the price band, making it the second-biggest issue after Reliance Power.

Close on the heels of Adani Power, state-run NHPC is ready to hit the primary market in August to raise Rs 6000 crore. Besides, Oil India and Pipavav Shipyard collectively plan to raise over Rs 2000 crore. Earlier, on 17 July 2009 the government said it is considering a part sale of its shareholding in the telecom monolith Bharat Sanchar Nigam (BSNL) to the public. Currently, the government fully owns BSNL.

The Q1 June 2009 results announced so far have encouraging, with lower costs helping bottomline growth. The combined net profit of 891 companies rose 21.9% to Rs 48207 crore on 1.4% fall in sales to Rs 393192 crore in Q1 June 2009 over Q1 June 2008.

But equities may remain volatile ahead of expiry of July 2009 futures and options (F&O) contract on Thursday, 30 July 2009. As per reports, rollover of Nifty positions from July 2009 contacts to August 2009 contracts stood at 30%, as of Monday, 27 July 2009.

European markets reversed early gains and were trading marginally lower today, 28 July 2009. Key benchmark indices in UK, Germany and France were down by between 0.04% and 0.45%

Most Asian markets were in green today, 28 July 2009. Key benchmark indices in Hong Kong, Taiwan, Singapore, South Korea, China rose by between 0.13% and 1.62%. Japan's Nikkei 225 index was down marginally by 0.01%

US markets ended modestly higher on Monday, 27 July 2009 led by gains in banking shares after a bout of profit taking in early trade. The Dow Jones industrial average rose 15.27 points, or 0.17%, to 9,108.51. The S&P 500 index rose 2.92 points, or 030%, to 982.18, while the Nasdaq Composite Index rose 1.93 points, or 0.10%, to 1,967.89.

On the economic front, new home sales in June 2009 rose the most in more than eight years. Sales spiked 11% to hit a better-than-expected annualised rate of 3.84 lakh units.

Trading in US index futures showed the Dow could slide 29 points at the opening bell on Tuesday, 28 July 2009.

The BSE 30-share Sensex was down 43.10 points or 0.28% to 15,331.94. The Sensex opened 47.53 points higher at 15,422.57. The Sensex rose 88.42 points at the day's high of 15,463.46 in mid-afternoon trade, its highest level since 12 June 2009. The Sensex lost 134.51 points at the day's low of 15,240.53 in mid-morning trade.

The S&P CNX Nifty was down 8.20 points or 0.18% to 4,564.10. Nifty July 2009 futures were at 4562, at a discount of 2.10 points as compared to the spot closing. Turnover in NSE's futures & options (F&O) segment spurted to Rs 76,854.19 crore from Rs 50,488.19 crore on Monday, 27 July 2009.

The BSE clocked a turnover of Rs 7028 crore, compared to Rs 6063 crore on Monday, 27 July 2009.

The Sensex is up 5684.63 points or 58.92% in calendar year 2009 as on 28 July 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 7171.54 points or 87.88% as on 28 July 2009.

Coming back to today's trade, the market breadth, indicating the overall health of the market, was strong. On BSE, 1718 shares advanced as compared with 957 that declined. 94 shares remained unchanged.

The BSE Mid-Cap index was up 1.13% to 5,531.37 and the BSE Small-Cap index rose 1.68% to 6,245.81. Both these indices outperformed the Sensex

The BSE Realty index (up 4.64%), BSE Capital Goods index (down 0.03%), the BSE Power index (up 0.83%), the BSE TECk index (up 0.03%), the BSE Metal index (up 1.25%), BSE PSU index (up 0.52%), BSE Auto index (up 1.92%), outperformed the Sensex.

The BSE Healthcare index (down 0.60%), BSE FMCG index (up down 1.33%), BSE Consumer Durables index (down 0.82%), the BSE IT index (down 0.74%), the BSE Oil & Gas index (down 0.81%), the BSE Bankex (down 1.22%), underperformed the Sensex.

Among the 30-member Sensex pack, 20 advanced while the rest declined

Most auto stocks gained after the Reserve Bank of India (RBI) kept key policy rates unchanged at their historical low at its quarterly monetary policy review today, 28 July 2009.

India's largest truck market by sales Tata Motors galloped 10.01% to Rs 412.50 after a 3.76% jump in its ADR on Monday, 27 July 2009. It was the top gainer from the Sensex pack. The company reported 57.54% rise in net profit to Rs 513.76 crore on a 7.17% decline in total income to Rs 6723.99 crore in Q1 June 2009 over Q1 June 2008. Analysts had expected a steep fall in net profit due to lower sales volume. The result was announced at the fag end of the trading sessions today, 27 July 2009.

Tata Motors attributed the strong results to continued focus on cost efficiencies, decline in raw material prices and improvement in sales realization

India's largest tractor maker by sales Mahindra & Mahindra advanced 1.23% to Rs 826.15, rebounding from day's low of Rs 812.50. The company will unveil its Q1 June 2009 earnings on 30 July 2009.

India's top small car maker by sales Maruti Suzuki India gained 2.70% to Rs 1407 after striking a record high of Rs 1416.70 in intra-day trade today, 28 July 2009. The stock rebounded sharply from day's low of Rs 1346.60. The company had announced strong Q1 June 2009 results during market hours on 23 July 2009.

India's largest bike manufacturer by sales Hero Honda Motors lost 0.97% ahead of its Q1 June 2009 results on 29 July 2009.

Escorts surged 2.15% after net profit jumped 138.7% to Rs 22.22 crore in on 10.4% rise in net sales to Rs 582 crore in Q3 June 2009 over Q3 June 2008. The company announced the results after market hours on Monday, 27 July 2009.

India's largest power generation company by sales NTPC rose 1.12% after net profit jumped 27.1% to Rs 2193.62 crore on a 25.8% increase in sales to Rs 12002.68 crore in Q1 June 2009 over Q1 June 2008. The result was announced after market hours yesterday, 27 July 2009.

Other power generation firms gained as strong response to the Adani Power initial public offer which opened for subscription from today, 28 July 2009 lifted sentiment for the sector. Reliance Infrastructure (up 3.56%), Tata Power (up 2.45%), Reliance Power (up 0.16%), CESC (up 5.69%), advanced.

Realty stocks gained after the Reserve Bank of India (RBI) kept key policy rates unchanged at their historical low at its quarterly monetary policy review today, 28 July 2009.

DLF (up 3.49%), Unitech (up 8.75%), Housing Development & Infrastructure (up 4.50%), Parsvnath Developers (up 1.68%), and Indiabulls Real Estate (up 1.47%), advanced.

In another measure that that could provide a boost to the realty sector the government has allowed developers of housing projects a tax holiday under section 80 IB(10) of the Income Tax Act on profits from projects approved between 1 April 2007 and 31 March 2008. The benefit is subject to a condition that the projects are completed on or before 31 March 2012.

Housing finance companies rose after the government announced a 1% subsidy on home loans up to Rs 10 lakh, when the overall cost of the house does not exceed Rs 20 lakh.

HDFC (up 0.61%), LIC Housing Finance (up 3.03%), Deewan Housing Finance (up 12.28%), and GIC Housing (up 1.06%), gained

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) fell 1.58% to Rs 1908, extending yesterday's over 3.78% fall. The fall in the stock materialised after the company posted disappointing Q1 June 2009 results after trading hours on Friday, 24 July 2009. Nevertheless, the stock recovered from day's low of Rs 1891

RIL's net profit fell 11.5% to Rs 3636 crore on a 22.9% decline in sales to Rs 32055 crore in Q1 June 2009 over Q1 June 2008. Reliance Industries (RIL) saw its net profit dip for the third straight quarter, as margins from its refining business halved and the global recession reduced fuel demand. RIL's gross refining margins (GRMs) - the difference between cost of crude oil and the price of refined petroleum products - came down 52.22% to $7.5 per barrel in Q1 June 2009 compared with $15.7 per barrel in Q1 June 2008.

Reliance Natural Resources (RNRL) chairman Anil Ambani on Tuesday accused the Petroleum Ministry of being biased in the legal dispute with brother Mukesh Ambani-led Reliance Industries (RIL) over the price of natural gas from the Krishna-Godavari basin. Addressing shareholders of the company, he also said the government would not lose a single rupee even if the gas from RIL's fields off the Andhra Pradesh coast were to be supplied to his company at the originally contracted price of $2.34 per unit.

Addressing shareholders at the RNRL's Annual General Meeting, Anil Ambani asked the Oil Ministry to cancel the Production Sharing Contract with RIL if it was really aggrieved and not challenge third party agreements. Giving details of the global gas scenario, he said the price of the industrial fuel had crashed 80% and the gas price of $4.2 per mmBtu (fixed by the Government) was "exorbitant" and against public interest.

Last month, the Bombay High Court had asked Reliance Industries to supply 28 million units of gas to Reliance Natural Resources for 17 years at $2.34 per unit, after assigning 12 million units to the state-run power utility NTPC. Reliance Industries challenged the verdict in the Supreme Court, which heard the case on 20 July 2009 and fixed 1 September 2009 as the next date of hearing. It also asked all the parties to file their replies on the government position on the matter by then.

BPCL rose 2.75% to Rs 462.80 after the company posted net profit of Rs 614.12 crore on 33.34% fall in total income to Rs 26,195.60 crore in Q1 June 2009 over Q1 June 2008. The company announced the results during trading hours today, 28 July 2009.

India's largest FMCG company by sales Hindustan Unilever slumped 6.72% to Rs 278.55, retracing sharply after striking a 52-week high of Rs 306 in intra-day trade on the BSE. The stock tanked after net profit declined 2.68% to Rs 543.19 crore on a 5.06% increase in total income to Rs 4536.17 crore in Q1 June 2009 over Q1 June 2008. The results were declared in late trade today, 28 July 2009. It was the top loser from the Sensex pack

Bank stocks were mixed after the Reserve Bank of India's (RBI) in its quarterly monetary policy review today, 28 July 2009, raised inflation forecast. India's largest private sector bank by net profit ICICI Bank was down 2.49%. The bank's net profit rose 20.63% to Rs 878.22 crore on a 9.61% decline in total income to Rs 7133.44 crore in Q1 June 2009 over Q1 June 2008. The bank reported its earnings on Saturday, 25 July 2009.

India's biggest bank in terms of branch network State Bank of India (SBI) fell 1.90%. The bank's chairman today, 28 July 2009 said that credit growth is expected to pick up in second half of the year. The state-run bank reduced interest rates on deposits by 25-50 basis points (a basis point equals one-hundredth of a percentage point) with effect from Monday, 27 July 2009.

However, India's second largest private sector bank in terms of operating income HDFC Bank rose 0.52% to Rs 1442. The stock slipped to day's low of Rs 1400 mirroring a 1.9% fall in its American depository receipt (ADR) on Monday, 27 July 2009.

Karnataka Bank fell 1.55% after the bank's gross non-performing assets rose 7.30% to Rs 447.12 crore in Q1 June 2009 over Q1 June 2008. Karnataka Bank's net profit surged 93.5% to Rs 40.06 crore on 20.1% rise in total income to Rs 609.67 crore in Q1 June 2009 over Q1 June 2008. The bank announced the results after market hours on Monday, 27 July 2009.

Kotak Mahindra Bank declined 1.63% after the bank's consolidated gross non-performing assets surged 65.83% to Rs 1084.48 crore in Q1 June 2009 over Q1 June 2008. The bank's consolidated net profit surged 71.70% to Rs 257.29 crore on 57.69% rise in total income to Rs 2,345.26 crore in Q1 June 2009 over Q1 June 2008.

Karur Vysya Bank jumped 6.19% after net profit galloped 131.02% to Rs 70.53 crore on 29.49% rise in total income to Rs 487.37 crore in Q1 June 2009 over Q1 June 2008. The bank declared its results during trading hours today, 28 July 2009.

Diversified major Grasim Industries slipped 2.18% despite 61% rise in net profit to Rs 1080 crore on 15% rise in net revenue to Rs 5123 crore in Q1 June 2009 over Q1 June 2008. The results were announced during trading hours today.

IT stocks were mixed, recovering from early lows. India's second largest IT firm by sales Infosys lost 1.50% to Rs 1995, off day's low of Rs 1968.25. India's largest IT exporter by sales TCS rose 0.06% to Rs 480.50, after slipping to day's low of Rs 472. On 17 July 2009, TCS announced Q1 results that beat market expectations. India's third largest IT exporter by sales Wipro gained 0.82% to Rs 463.50, after touching day's low of Rs 452. On 22 July 2009, Wipro announced better-than-expected Q1 results.

Telecom pivotals advanced ahead of meeting of a Group of Ministers (GoM) to decide on the base price for 3G spectrum on 31 July 2009.

India's largest cellular services provider by sales Bharti Airtel rose 0.31%. As per reports, Bharti Airtel and South Africa's MTN may extend by about four weeks their 31 July 2009 deadline for talks to agree on a merger.

Bharti and MTN have been in exclusive talks that could lead to a merger creating the world's No. 3 wireless group with more than 200 million subscribers and combined revenue of $20 billion.

India's second largest cellular services provider by sales Reliance Communications rose 2.73%.

The GoM is set up to look into matters relating to pricing of spectrum and number of operators to be allowed in each telecom circle. The finance ministry had proposed a base price of Rs 4,040 crore for 3G spectrum, whereas the Department of Telecom (DoT) suggested a price of Rs 3,540 crore. While presenting the Union Budget, the finance minister, Mr Pranab Mukherjee, said Rs 35,000 crore was expected to be raised from the auction.

Metal stocks were mixed with some stocks correcting after recent strong gains. LMEX, a gauge of six metals traded on the London Metal Exchange, advanced 1.25% on Monday, 27 July 2009.

Tata Steel (up 2.22%), Sterlite Industries India (up 0.67%), Steel Authority of India (up 1.42%), and Hindalco (up 0.43%), gained. National Aluminium Company (down 0.87%), Jindal Steel & Power (down 2.66%), Hindustan Zinc (down 0.36%), declined.

Unitech was the top traded counter on BSE with turnover of Rs 380.29 crore followed by DLF (Rs 239.78 crore), Reliance Industries (Rs 231.56 crore), Tata Steel (Rs 217.23 crore), and HDIL (Rs 199.04 crore).

Unitech was also the volume topper on BSE clocking volume of 4.06 crore shares followed by Ispat Industries (1.68 crore shares), Reliance Natural Resources (1.47 crore shares), Suzlon Energy (1.23 crore shares) and IFCI (1.09 crore shares)

Tyre shares extended gains for the second running day on fresh buying following robust earnings reported by MRF, Apollo Tyres and JK Tyres.

MRF (up 3.93%), Goodyear India (up 1.89%), Balkrishna Industries (up 3.11%), and TVS Shrichakra (up 5%), gained.

On 27 July 2009, MRF reported a 294% jump in net profit to Rs 125.70 crore on 12.4% rise in net sales to Rs 1433.55 crore in Q3 June 2009 over Q3 June 2008. JK Tyre reported a two fold spurt in net profit, while Apollo Tyres posted a 95% jump in net profit in Q1 June 2009 over Q1 June 2008.

Rashtriya Chemicals & Fertilizers surged 7.01% after net profit soared 65.5% to Rs 31.55 crore on 46% fall in net sales to Rs 843 crore in Q1 June 2009 over Q1 June 2008. The company announced the results after trading hours on Monday, 27 July 2009.

Cadila Healthcare soared 10.59% to Rs 444.40. The company, during market hours on Monday, 27 July 2009, reported a 120.3% spurt in net profit to Rs 122.56 crore on 8.4% rise in sales to Rs 465.27 crore in Q1 June 2009 over Q1 June 2008. The stock had risen 3.26% to Rs 401.85 on Monday boosted by the Q1 numbers.

Shree Renuka Sugars climbed 8.83% to Rs 167.05. The company, during market hours on 21 July 2009, reported a 165.7% surge in net profit to Rs 61.10 crore on a 17.3% increase in sales to Rs 715.50 crore in Q3 June 2009 over Q3 June 2008.

Punj Lloyd lost 2.10% despite 13.69% rise in consolidated net profit to Rs 127.16 crore on 12.07% rise in consolidated total income rose to Rs 2,979.04 crore Q1 June 2009 over Q1 June 2008. The company declared its results after market hours on Monday, 27 July 2009.

Closing Bell 28 July 2009

Closing Bell 28 July 2009

Today’s trading session was marked by considerable volatility. While the Indian markets began the day’s proceedings on a positive note, in the subsequent trading sessions alternate bouts of buying and selling led the indices to oscillate on either side of yesterday’s close. Profit booking in the final hour of trade led the indices to wipe out their gains and end the day into the negative territory. The BSE-Sensex closed lower by around 50 points, while the NSE-Nifty ended the day with marginal losses. However, midcap and smallcap stocks closed on a firm note. The BSE-Midcap and BSE-Smallcap indices ended higher by about 1% and 1.7% respectively. While stocks from the realty and auto sectors emerged as the top gainers, stocks from the banking and FMCG space led the pack of losers. At the time of writing, the overall advance to decline ratio stood at 1.9 to 1 on the NSE.

Most of the other Asian markets ended the day on a positive note today. The European indices are witnessing a mixed trend currently. Rupee was trading at 48.18 against the US dollar at the time of writing.

Grasim Industries announced its 1QFY10 results few hours back. On a standalone basis, the topline grew by 17.6% YoY led by growth in two of its core business segments viz. cement and VSF. During the quarter, the cement segment reported 31.8% YoY growth in revenues, while the VSF business reported 11.1% YoY growth in the topline. The EBITDA margins witnessed marginal expansion of 0.1% as costs grew a tad lower than the topline. While profit before tax grew by 9.1% YoY, the bottomline reported a whopping 68.5% YoY growth. The robust growth in net profits came in on account of extraordinary income that includes profit on sale of the sponge iron business. The stock of Grasim Industries closed lower.

As per a leading business daily, HT Media plans to invest around Rs 800 m during the current fiscal. Of this, Rs 400 m will be spent towards the company’s general capital expenditure plans, while the other half will be invested in its Burda joint venture. It may be noted that the company has recently expanded the reach of its English daily, ‘Mint’ in Chennai. It plans to further expand the daily’s reach in other states as well. Further, it also plans to invest in its radio and the internet businesses, which have yet to break-even. The company had witnessed sales growth of 2% YoY in its recent 1QFY10 results. The stock of HT Media ended in the red during the day’s trading session, while Deccan Chronicle ended firm.

The Reserve Bank of India in its 2009-10 monetary policy review today has indicated a wait and watch stance given that the Indian economy has still not shown clear signs of stability. It plans to maintain a soft interest rate regime until there are definite and robust signs of recovery and hence has left all key rates - repo, reverse repo, CRR - unchanged. The central bank has pegged India's GDP for FY10 at 6.5%, higher than the 5.7% expected in its earlier survey in March. It has also revised inflation target for the end of March 2010 to about 5%, higher than the 4% projection it made during its annual policy in April. This is keeping in view the global trend in commodity prices and domestic supply constraints, especially on the foodgrains front.

The Indian markets moved into the positive territory and recouped their earlier losses during the previous two hours of trade on account of sustained buying activity. Currently, stocks from the auto, construction and power sectors are trading higher, while select stocks from the energy, steel and banking are trading lower. The overall advance to decline ratio is poised at 2 to 1 on the BSE.

The BSE-Sensex and NSE-Nifty are trading firm, up by around 80 points and 15 points respectively. The BSE-Midcap and the BSE-Smallcap indices are trading higher, up by around 1.4% and 2.1% respectively. The Rupee is trading at 48.17 to the Dollar.

Steel stocks are trading mixed. While Tata Steel and SAIL are trading higher, JSW Steel is trading lower. As per a leading business daily, India’s largest steel producer SAIL plans to raise long term debt of up to Rs 65 bn in FY10 in order to fund its capex plans. In fact, it has already raised around Rs 30 bn at an average interest rate of below 9%. It may be noted that SAIL is enhancing its production capacity from the current 14 m tonnes to 26 m tonnes annually by 2014 at an estimated investment of Rs 780 bn. It plans to spend a capex of around Rs 103 bn in FY10 for the same. The remaining amount of the capex during the fiscal is most likely to be funded through internal accruals. SAIL’s debt to equity ratio stood at 0.3 in FY09.

Auto stocks are trading mixed. Tata Motors and Ashok Leyland are trading higher, while Maruti is trading lower. Ashok Leyland announced its 1QFY10 results last evening. The company’s topline declined by 52% YoY in 1QFY10 led by a significant fall in volumes during the quarter. The volumes declined by 58%YoY during the quarter. Operating profits declined by 90% YoY mainly on account of higher staff and other expenses (as % of sales) during the quarter. Operating margins declined by 5.2% to 1.3% in 1QFY10. The company’s net profits declined by 84.6% YoY, lower as compared to operating profits mainly due to an eight fold jump in other income during the period.

The Indian markets moved further into the negative territory during the previous two hours of trade on account of continuous selling activity among the index heavyweights. However, the overall market breadth is positive, with total gainers outnumbering the losers in the ratio of 1.6 to 1 on the BSE. Selling activity is led by stocks from the banking and software sectors, while select realty and auto stocks are trading firm.

The BSE-Sensex and NSE-Nifty are trading weak, down by around 90 points and 30 points respectively. However, the BSE-Midcap and the BSE-Smallcap indices are trading higher, up by around 0.5% and 1.2% respectively. The Rupee is trading at 48.19 to the Dollar.

Automobile stocks are trading mixed. While Tata Motors is trading firm, Ashok Leyland and Maruti Suzuki are in the red. Tata Motors announced its standalone 1QFY10 results yesterday. The company's topline declined by 8% YoY during the quarter, on the back of lower volumes and realisations. Volumes were down by 4% YoY during the period. The total domestic volumes were lower by a mere 1.4% YoY, while the export sales were hit by a 43% YoY decline. The company's domestic market share in the commercial vehicle segment has increased to 67.4% (from 61% in 1QFY09) during the quarter as sales improved by 1.1% YoY. Operating margins improved sharply by 3.2% YoY to 11.2% on account of lower raw material costs as a percentage of sales. Despite higher operating margins, net profit growth was lower at 7% YoY (excluding the extraordinary items for both periods) on account of higher interest (up 126% YoY) and tax expenses (up 81% YoY).

As per a leading business daily, the hotel industry, which was struggling of late on account of lower occupancies, plans to increase room rates in the range of 5% to 10% before the start of peak season-beginning in September. The companies expect demand in corporate travel to increase on the back of encouraging financial performance of most companies. For instance, ITC Hotels and Hotel Leelaventure expect room volumes in the corporate travel sector to show signs of improvement. It may be noted that the economic slowdown has impacted the industry, pressuring them to lower rates in the range of 30% to 40% in the first half of this calendar year. The pickup in demand is a positive sign for the hospitality industry as it will increase their occupancy levels. Hotel stocks are trading weak led by Taj GVK and EIH.

The Indian markets have opened the day's trade on a cautious note. Buying is being witnessed across metal, energy, engineering and select auto stocks. However, banking, FMCG and pharma stocks are trading in the red. The overall advance to decline ratio is poised at 2.2:1 on the NSE. As regards the global markets, the US and the European markets ended in the positive yesterday. The Asian markets are trading firm currently.

The BSE Sensex is trading lower by around 20 points. The NSE Nifty is down 15 points. The BSE Midcap and the BSE Smallcap indices are trading flat. The rupee is trading at 48.23 to the dollar.

FMCG major Dabur announced its 1QFY10 results yesterday. The consolidated net sales grew by 22% YoY during 1QFY10 on the back of strong performance in the consumer product division, where sales grew by 25% YoY. The overseas business division recorded an impressive growth of 52.9%, led by a robust performance in GCC, Egypt, North Africa and South Asia. The Consumer Healthcare division saw a 12.5% YoY growth, while the foods segment witnessed a 22% YoY increase. The operating (EBITDA) margins improved to 16% due to the impact of lower raw material prices (as a percentage of sales). However, the consolidated ad spends as a percent of sales increased by 180 basis points to 15.3%. Net profits grew by 29% YoY while net profit margins expanded by 0.8%. Growth was aided largely by higher sales and improved operating margins. The company has completed the Fem Care acquisition during the quarter. According to the management, despite the overall gloomy scenario in the economy, the consumer spending on FMCG continues to remain strong. Further, the entire growth reported by Dabur is volume driven. The company expects the growth to continue, both from rural and urban areas. FMCG stocks are trading mixed.

GAIL is planning to invest Rs 80 bn to expand its pipeline network. Of this, Rs 76 bn would be invested in constructing a 2,050-km pipeline from Jagdishpur to Haldia. The project will be executed in two phases, with Part-IA of Phase-I of the project scheduled to be completed by December 2011, while Part-IB will be completed by March 2011. The second phase of the project is expected to be completed by December 2013. The company aims to raise Rs 20 bn from the domestic market this fiscal. The company would raise another Rs 150 bn in the next couple of years through external commercial borrowings. The company had a debt-equity ratio of 0.12:1 and it could leverage its balance sheet further. GAIL owns and operates a network of over 7,100 km of natural gas high-pressure trunk pipelines with a capacity to carry 155 metric million standard cubic metres a day (mmscmd) of natural gas across the country. During the 11th Plan period, GAIL plans to build 5,000 km of pipelines at an estimated investment of Rs 280 bn. Following this expansion, GAIL would have a capacity to carry 300 mmscmd of gas. This will help the company to meet the gas demand which is slated to increase by 12% on a compounded basis to reach 283 mmscmd by FY12 from the current demand of about 179 mmscmd. Energy stocks are trading firm.

Today, the RBI will be releasing its first quarter review of the 2009-10 monetary policy and it will be interesting to know what the central bank will focus on and whether interest rates will remain unchanged. With FY09 being one of the worst years for the global economy and also having impacted the Indian economy significantly, the RBI had to resort to various stimulus packages to ward off any slack in demand and consumption and ease up liquidity. One such move was the reduction in the repo rate by 425 basis points to 4.75% in 6 moves since October 2008. This time around it appears more likely that the RBI will keep its rate unchanged. What it means is that the possibility of rates being lowered could be low as the economic situation has not worsened further than what it had in the previous year. At the same time, the RBI may not want to increase the rates either unless a more consistent picture of a recovery emerges.

But inflation will continue to remain on the RBI's radar and as reported in leading business dailies, Goldman Sachs expects the RBI to raise its inflation target for the end of March 2010 from 4%. This is hardly surprising given that with money beginning to slosh around in the financial system, inflation was bound to gradually rear its head. Readers would do well to recall that inflation which had touched a high of 12% in August 2008 cooled off considerably since then to dip into the negative as the economy slowed down. But this has been at the wholesale level. At the consumer level, high prices continue to pinch hard . The errant monsoons have not helped either and the RBI will be kept on its toes when it comes to making a decision. Over to you, Mr. Subbarao!

Problems being faced by the shipping industry

While the economic slowdown in India has had an impact on almost all industries, the shipping industry in particular has been in even more trouble. As reported in a leading business daily, the main problem being faced by this industry is shortage of funds to purchase new vessels despite both new and second-hand ships being available in the global shipping market. Problems have been further compounded by the fact that nearly half the shipping fleet needs to be replaced in the next three years, as it would have exceeded the international age norms. The sorry state of finances in the global markets means that getting access to cheap funds is no longer easy as it was before the crisis erupted.

Also, the softening freight rates have further undermined the revenue potential for this industry. At the end of the day, shipping is a global industry and its prospects are closely tied to the level of economic activity in the world. This means that the fortunes of this industry will start to appear brighter once signs of a sustainable recovery surface in the global economy. Till such time then Indian shipping companies will have to find various ways of riding out the storm. It certainly won't be easy.

BSE NSE Share Market Voices 28 July 2009

BSE NSE Share Market Voices 28 July 2009

After a positive start, the market slipped into the red this mornin RBI's decision to leave key rates unchanged did not make any impact on the market's direction today.

The Sensex, which fell to 15,240.53 rallied to 15,463.46 past mid afternoon but failed to sustain gains and ended in the red. The barometer ended at 15,334.95 (provisional) with a loss of 40.09 points or 0.26%. The Nifty closed at 4559.20, recording a loss of 13.10 points or 0.29%. It touched a high of 4599.90 and a low of 4529.15 today.

Realty stocks had a good outing once again on hopes of increased demand for homes. The finance minister's statement that the government would provide a 1% interest subsidy on home loans up to Rs 10 lakh for one year buoyed up sentiment towards the sector.

Automobile major Tata Motors ended with a hefty gain of 10%. Select metal, power and PSU stocks rallied sharply. FMCG major HUL fell on weak results. Bank, oil and IT stocks were seen struggling for a major part of the session today. Midcap and smallcap stocks had a good session.

PTC India touched an intraday high of Rs 90.90 and an intraday low of Rs 86.20. At 3:20 pm, the share was quoting at Rs 90.60, up Rs 4.15, or 4.80%. It was trading with volumes of 1,655,476 shares, compared to its five-day average of 707,721 shares, an increase of 133.92%. Yesterday the share closed up 2.25% or Rs 1.90 at Rs 86.45.

Bajaj Hindusthan is up by around 5.5% at Rs 192 on strong quarterly results. The company posted a net profit of Rs 60.08 crore for the quarter ended June 2009 as against a net loss of Rs 35.41 crore in the quarter ended June 2008. Investors holding the stock can stay invested and buy more of it at sharp declines.

Bajaj Hindusthan touched an intraday high of Rs 191.50 and an intraday low of Rs 175. At 3:06 pm, the share was quoting at Rs 191.05, up Rs 8.80, or 4.83%. It was trading with volumes of 3,934,930 shares, compared to its five-day average of 1,218,619 shares, an increase of 222.90%. Yesterday the share closed up 1.65% or Rs 2.95 at Rs 182.25.

Glenmark Pharmaceuticals is a good pick from the healthcare space.

The stock, currently traded at Rs 257, can rise to Rs 290 - 300 and a strong breakout there can lift the stock to around Rs 325 or even higher. One can hold the stock with a stop loss near Rs 215.

Grasim Industries has reported strong numbers for the April - June 2009 quarter. The stock, currently trading at Rs 2905, looks poised to test higher levels in the near to medium term. One holding the stock can stay invested. More quantities can be picked up in a staggered way.

FMCG major Hindustan Unilever Limited has posted a net profit of Rs 5431.90 million for the quarter ended June 30, 2009 as compared to Rs 5581.80 million for the quarter ended June 30, 2008. The total income of the company increased from Rs 43175.10 million for the quarter ended June 30, 2008 to Rs 45361.70 million for the quarter ended June 30, 2009. The stock has lost nearly 4% at Rs 287 following the announcement of results.

Reliance Infrastructure was among major gainers on the Sensex at 2:09 pm. It touched an intraday high of Rs 1,223.65 and an intraday low of Rs 1,157. The share was quoting at Rs 1,214, up Rs 49.55, or 4.26%.

It was trading with volumes of 808,621 shares. Yesterday the share closed down 0.56% or Rs 6.55 at Rs 1,164.45.

Indiabulls Financial Services touched an intraday high of Rs 215.50 and an intraday low of Rs 199. At 1:56 pm, the share was quoting at Rs 214.75, up Rs 13.05, or 6.47%. It was trading with volumes of 515,220 shares. Yesterday the share closed up 6.69% or Rs 12.65 at Rs 201.70.

KEC International has posted a net profit of Rs 38.40 crores, a rise of over 50% on a net profit of Rs 25.52 crores the company had recorded in the corresponding quarter last year. The company's order book stands at Rs 5155 crore. Around 58% of it is from the South Asia market and the balance 42% is from the international market.

Buy Maruti Suzuki with a target of Rs 1,550-1,600, says Ashwani Gujral, Technical Analyst on CNBC-TV18 2:10 PM: NHPC IPO price band set at Rs 30-36/sh. The IPO issue to open on August 7 and closes on August 11.

Tata Steel (Rs 463) can be bought for short to medium term. The stock can rise to Rs 530 if it manages a strong breakout at Rs 490 levels.

A stop loss can be placed near Rs 410.

CESC touched an intraday high of Rs 334.80 and an intraday low of Rs 310.90. At 12:54 pm, the share was quoting at Rs 333.45, up Rs 25.00, or 8.11%. It was trading with volumes of 264,725 shares. Yesterday the share closed up 5.67% or Rs 16.55 at Rs 308.45.

Investors looking at medium term can go in for IVRCL Infrastructure, IRB Infrastructure, Punj Lloyd and KEC International. These stocks can be accumulated in small quantities in a staggered way.

Bombay Dyeing and Manufacturing Company touched an intraday high of Rs 365.40 and an intraday low of Rs 303.90. At 12:56 pm, the share was quoting at Rs 358.20, up Rs 22.25, or 6.62%. It was trading with volumes of 354,951 shares. Yesterday the share closed up 9% or Rs 27.75 at Rs 335.95.

Kalyani Steels touched an intraday high of Rs 101.50 and an intraday low of Rs 97. At 12:58 pm, the share was quoting at Rs 97.05, down Rs 4.35, or 4.29%. It was trading with volumes of 9,679 shares. Yesterday the share closed up 0.05% or Rs 0.05 at Rs 101.40.

Cement stocks are likely to see some upside in the near term. One can keep picking up Ambuja Cements, Ultratech, ACC, Birla Corporation and Shree Cements at declines.

Automobile stocks Tata Motors, Mahindra & Mahindra and Maruti Suzuki can be picked up in small quantities at declines. Though some profit taking is likely in these stocks after recent sharp rallies, their medium to long term prospects continue to remain quite bright.

RIL is an underperformer, says Sudarshan Sukhani, Technical Analyst, on CNBC-TV18

Gammon India touched an intraday high of Rs 146.45 and an intraday low of Rs 121.25. At 12:18 pm, the share was quoting at Rs 122.25, down Rs 20, or 14.06%. It was trading with volumes of 149,320 shares. Yesterday the share closed down 2% or Rs 2.90 at Rs 142.25.

FMCG companies will do well, says Anand Tandon, Director Equities, Brics Securities, on CNBC-TV18

Tata Motors looks expensive, says Anand Tandon, Director Equities, Brics Securities, on CNBC-TV18

Do not invest in real estate stocks, says Sudarshan Sukhani on CNBC-TV18

Phoenix Mills has recommended a final dividend of 50% (Re 1 per share for every one fully paid share of Rs 2- each) for the financial year 2008-2009

Kotak Bank has posted a net profit of Rs 903.111 million for the quarter ended June 30, 2009 as compared to Rs 545.316 million for the quarter ended June 30, 2008. The stock, which was trading higher earlier in the day, declined on announcement of results and is down by 1.5% at Rs 659 now. One can consider fresh buying at sharp dips.

Global markets have run up sharply over the past few weeks on hopes of an economic revival.

A few encouraging reports on the economic front and some better than expected quarterly numbers from big companies are driving the market up these days. FIIs have been picking up stocks almost consistently. Still, one cannot rule out a few rounds of profit taking in the very short run. It is better to stay cautious and remain stock specific in the near term.

Buy JSW Steel on dips, says Sudarshan Sukhani, Technical Analyst, on CNBC-TV18

Banking space can outperform, says Sudarshan Sukhani on CNBC-TV18

Buy sugar stocks on dips, says Sudarshan Sukhani on CNBC-TV18

The Reserve Bank of India has left CRR, Repo and Reverse Repo rates unchanged at 5%, 4.7% and 3.25% respectively.

The Apex bank has revised GDP growth at 6% with an upward bias and targets inflation at 5% for fiscal 2010.

Bank stocks, which had declined sharply earlier this morning, have edged up from their lows following RBI's monetary policy statement.

Bharti Airtel (cmp Rs 426) can be retained with a long term plan. One can have a stop loss near Rs 400 for now. The stock can give a return of 30 - 40% over a medium term.

Escorts touched an intraday high of Rs 71.90 and an intraday low of Rs 69. At 10:26 am, the share was quoting at Rs 70.90, up Rs 3.40, or 5.04%.

It was trading with volumes of 581,480 shares. Yesterday the share closed up 3.37% or Rs 2.20 at Rs 67.50.

SBI (Rs 1687) can be picked up at dips for long term. Intra-day traders with a good appetite for risk can consider going long in SBI at current levels. The stock can rise to Rs 1725 - 1730 or even higher later on in the day.

Punj Lloyd: Sell below 246 with a stop loss of 248

HDFC: Sell below 2365 with a stop loss of 2380

NTPC's net profit rose over 27% to Rs 2193.62 crore in the quarter ended June 2009 as against Rs 1726.53 crore during the previous quarter ended June 2008. The company has reported a near 26% jump in sales during the quarter. The stock, currently trading at Rs 215, can be retained for long term. sharp declines can be used to increase exposure to the counter.

NTPC: Buy above 214.50 for the target of 218 / 220 / higher with a stop loss of 212.50

GMR Infra: Buy above 148.80 for the target of 150.50 / 152 / higher with a stop loss of 147.50

Rashtriya Chemicals & Fertilizers Limited has posted a net profit of Rs 315.50 million for the quarter ended June 30, 2009 as compared to Rs 190.60 million for the quarter ended June 30, 2008. Total income has decreased from Rs 15735.80 million for the quarter ended June 30, 2008 to Rs 8545.60 million for the quarter ended June 30, 2009. The stock is up by 4.2% at Rs 68.35. Investors long at the counter can stay invested and look at buying more at declines. Fairly strong returns are likely over a medium term.

Trading got off to a cautious start on the major Indian bourses this morning amid somewhat mixed global cues.

The Sensex opened more than 50 points up at 15,428.50 and edged up to 14,455 before drifting down to 15,416 netting a gain of 40.55 points or 0.26%.

The Nifty is up by 12.80 points or 0.28% at 4585.10.

Tata Motors has rallied 4.7% on strong results.

DLF, Unitech, Tata Comm, Tata Power, RPower, BPCL, NTPC, HDFC and ABB have also posted notable gains. stocks to watch: Petronet LNG, after Papua New Guinea Trade Minister Samuel Abal said the Indian firm was in talks to buy liquefied natural gas (LNG) from InterOil's project in the island nation.

Glenmark Pharmaceuticals Ltd after its board approved raising up to '250 million.

Ashok Leyland, after the truck and bus maker posted an 85 per cent decline in net profit in April-June.

Quarterly Results: Hindustan Unilever Ltd, Kotak Mahindra Bank Ltd, Tata Tea Ltd, Grasim Industries Ltd.8

Brokerage Recommendations 28 July 2009

Brokerage Recommendations 28 July 2009

Buy Sesa Goa with a target of Rs 255 and stop loss of Rs 234, says an expert of Trade Swift Broking, on CNBC Awaaz. The stock is currently trading at Rs 245, up 7.6% on the BSE.

Sell PFC with a target of Rs 235 and stop loss of Rs 220, says an expert of Bonanza Portfolio, on Zee Business. The stock is currently trading at Rs 225, up 3.4% on the BSE.

Sell Nifty with target of 4400 and stop loss of 4620, says Ashwani Gujral, technical analyst, on CNBC Awaaz, as closing market strategy.

Buy Nagarjuna Constructions with a target of Rs 180 and stop loss of Rs 140, says Nitin Murarka, technical analyst, on Zee Business, as closing market strategy.

Sell Lanco Infratech with a target of Rs 410 and stop loss of Rs 440, says Trade Swift Broking, on CNBC Awaaz, as closing market strategy.

Buy Sesa Goa with a target of Rs 280 and stop loss of Rs 230, says Ashwani Gujral, technical analyst, on CNBC Awaaz, as closing market strategy.

Hold Suzlon with a target of Rs 116, says Salil Kapoor, technical analyst, on Zee Business. The stock is currently trading at Rs 107, up 0.56% on the BSE.

Buy Punj Lloyd with a target of Rs 270, says Rajat Bose, technical analyst, on CNBC TV18. The stock is currently trading at Rs 240, down 1.38% on the BSE.

RIL has dishonoured the gas supply contract and shown dishonourable conduct, says Anil Ambani chairman, ADAG Group, at the RNRL AGM, reports NDTV Profit. The oil ministry's performance is biased towards RIL, he says. RIL's stand hurting both NTPC and RNRL, he adds. RNRL is currently trading at Rs 83, up 2.5% on the BSE.

Buy Suzlon with a target of Rs 120-125 with a stop loss of Rs 99, says Rahul Mohindar, technical analyst, on CNBC TV18. The stock is currently trading at Rs 108, up 2.21% on the BSE.

Hold Praj Industries with a target of Rs 103 and stop loss of Rs 71, says Hemen Kapadia, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 92, up 4.8% on the BSE.

Hold IRB Infrastructure with a target of Rs 197-222 and stop loss of Rs 176, says Hemen Kapadia, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 193, down 0.39% on the BSE.

Buy Welspun Gujarat with a target of Rs 225 after which it can go to Rs 350, says MB Singh, technical analyst, on Zee Business. The stock is currently trading at Rs 220, up 5.36% on the BSE.

Hold MTNL with a target of Rs 109-121 and stop loss of Rs 95, says Hemen Kapadia, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 106, up 0.33% on the BSE.

Buy Tata Steel with a target of Rs 469-472 and then it can go to Rs 500 with a stop loss of Rs 445, says Rahul Mohindar, technical analyst, on CNBC TV18. The stock is currently trading at Rs 463, up 1.24% on the BSE.

Credit Suisse maintains outperform on Glenmark Pharma, raises target price by 11.5% to Rs 290, reports NDTV Profit. The stock is currently trading at Rs 258, down 2.27% on the BSE.

The market has recovered and in now trading firmly. Sensex is trading at 15456, up 81 points and Nifty is at 4597, up 25 points from the previous close. CNX Midcap index is up 1.30% and BSE Smallcap index is up 2.19%. The market breadth is positive with advances at 912 against declines of 313 on the BSE.

Hold RIL with a target of Rs 2020 and then it can go to Rs 2120-2140, says Mitesh Thakkar, technical analyst, on CNBC TV18. The stock is currently trading at Rs 1910, down 1.45% on the BSE.

Hold Fortis Healthcare with a target of Rs 111-120 and stop loss of Rs 84, says Hemen Kapadia, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 102, down 0.68% on the BSE.

Buy Tata Steel with a target of Rs 465 and then it can go to Rs 530, says Mitesh Thakkar, technical analyst, on CNBC TV18. The stock is currently trading at Rs 461, up 0.92% on the BSE.

Hold Purvankara Projects with a target of Rs 106-123 and stop loss of Rs 80, says Hemen Kapadia, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 101, up 2.2% on the BSE.

Buy Great Offshore with a target of Rs 455 and stop loss of Rs 420, says Neera Jain of crnindia.com on CNBC Awaaz. The stock is currently trading at Rs 441, up 1.37% on the BSE.

Hold Voltas with target of Rs 160-165, says Rajesh Jain of SMC Global Securities on Zee Business. Keep stop loss of Rs 125, he adds. The stock is currently trading at Rs 140.65, down 0.04% on the BSE.

Hold Unitech with target of Rs 100, says Simi Bhaumik, technical analyst, on Zee Business. Keep trailing stop loss below Rs 85, she adds. The stock is currently trading at Rs 93, up 5.7% on the BSE.

Buy JSW Steel on dips, says Sudarshan Sukhani, technical analyst, on CNBC TV18. It is a stock you can add to your portfolio because it is excellent on the charts, he adds. The stock is currently trading at Rs 688, up 0.6% on the BSE.

Buy Nagarjuna Constructions at current levels with target of Rs 160, says Rajesh Jain of SMC Global Securities on Zee Business. Keep stop loss of Rs 128, he adds. The stock is currently trading at Rs 143.30, up 1.9% on the BSE.

Hold Gujarat NRE Coke with target of Rs 72, says Simi Bhaumik, technical analyst, on Zee Business. Keep trailing stop loss Rs 55, she adds. The stock is currently trading at Rs 59.55, up 0.4% on the BSE.

Buy Maruti at Rs 1200-1250 with target of Rs 1550-1600, says Ashwani Gujral, technical analyst, on CNBC TV18. The stock is currently trading at Rs 1359, down 0.8% on the BSE.

Hold Gitanjali Gems with target of Rs 140-145, says Rajesh Jain of SMC Global Securities on Zee Business. Keep stop loss of Rs 90, he adds. The stock is currently trading at Rs 106.10, up 2.5% on the BSE.

Buy an August Call on ITC and hold on to it, says Sudarshan Sukhani, technical analyst, on CNBC TV18. It could become a Nifty heavyweight again, he adds. The stock is currently trading at Rs 236.25, down 1% on the BSE.

Buy YES Bank with target of Rs 180, says Ashwani Gujral, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 150, he adds. The stock is currently trading at Rs 164, up 1.5% on the BSE.

Buy sugar stocks on dips, says Sudarshan Sukhani, technical analyst, on CNBC TV18. Shree Renuka Sugar is touching all-time highs so that is certainly the leader in this pack, he adds. The stock is currently trading at Rs 154.10, up 0.4% on the BSE.

Buy PFC at current levels with target of Rs 240, says Rajesh Jain of SMC Global Securities on Zee Business. Keep stop loss of Rs 205, he adds. The stock is currently trading at Rs 219.60, up 0.7% on the BSE.

Credit Policy: RBI says it will respond to inflation changes via policy adjustments and adds that banks have cut rates and there is scope to cut further, reports CNBC TV18.

Hold Sterlite Industries with target of Rs 720, says Simi Bhaumik, technical analyst, on Zee Business. Keep trailing stop loss of Rs 640, she adds. The stock is currently trading at Rs 650.50, down 0.3% on the BSE.

Credit Policy: RBI ups inflation projection to 5% from 4%, reports CNBC TV18. M3 target has been raised to 18% versus the earlier figure of 17%, it adds.

Credit Policy: The RBI leaves CRR, Repo Rate and Reverse Repo Rate unchanged, reports CNBC TV18.

Book partial profits in HUL and hold the rest with target of Rs 325, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss below Rs 280, he adds. The stock is currently trading at Rs 300, up 0.4% on the BSE.

Buy Rolta India at current levels with target of Rs 170, says Rajesh Jain of SMC Global Securities on Zee Business. Keep stop loss of Rs 120, he adds. The stock is currently trading at Rs 137.80, up 0.9% on the BSE.

Hold NTPC with target of Rs 230, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss below Rs 208, she adds. The stock is currently trading at Rs 216.20, up 0.8% on the BSE.

Sell EIH with intra-day target of Rs 110, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 119, he adds. The stock is currently trading at Rs 114.30, down 2.4% on the BSE.

Buy Bharti Airtel with stop loss of Rs 400, says Rajesh Jain of SMC Global Securities on CNBC Awaaz. It will give good gains, he adds. The stock is currently trading at Rs 423.90, up 0.1% on the BSE.

Hold GVK Power with targets of Rs 48-50 and then 56, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss below Rs 40, she adds. The stock is currently trading at Rs 44.80, up 0.8% on the BSE.

Buy PSL with intra-day target of Rs 130, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 118, he adds. The stock is currently trading at Rs 124.45, up 3.8% on the BSE.

Buy Shree Cements with target of Rs 1695, says Ashwani Gujral, technical analyst, on CNBC TV18. Keep stop loss of Rs 1365, he adds. The stock is currently trading at Rs 1560, up 1.3% on the BSE.

Buy Godrej Industries with intra-day target of Rs 160, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 150, he adds. The stock is currently trading at Rs 155, up 1.3% on the BSE.

Sell Ashok Leyland with intra-day target of Rs 33, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 36, he adds. The stock last traded at Rs 34.95, down 2.4% on the BSE.

Sell Ranbaxy Futures at Rs 275 with intra-day target of Rs 267, says Hemen Kapadia, technical analyst, on CNBC TV18. Keep stop loss of Rs 279, he adds. The stock last traded at Rs 273.95, down 2% on the BSE.

Buy JK Paper with intra-day target of Rs 34.50, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 29.75, he adds. The stock last traded at Rs 31.55, up 7.9% on the BSE.

Nifty has strong resistance at 4600-4620, says Ashwani Gujral, technical analyst, on CNBC TV18. He advises going short on the Nifty till about 4450 levels.

Buy 4500 Nifty Call Option at Rs 95 Premium with target of Rs 115, says Hemen Kapadia, technical analyst, on CNBC TV18. Keep stop loss of Rs 85, he adds.

Nifty is trading in a range of 4400-4600 and has strong resistance at 4600, says Rajesh Jain of SMC Global Securities on CNBC Awaaz. Once we cross 4650 then we could see a good rally, he adds. He feels that the market is waiting for a positive trigger in order to move ahead and today's Credit Policy could be it.

BSE / NSE Indian Stock Markets Weekly Review 27-31 July 09

With the Q1 June 2009 earnings season over, the domestic bourses may track global markets in the coming days. A strong global risk appetite has boosted stocks across the globe in the past few days. The BSE Sensex struck its highest level in more than 13 months.

The Q1 June 2009 results announced so far have been encouraging, with lower costs helping bottomline growth. The combined net profit of 1792 companies rose 23% to Rs 69263 crore on 5.2% fall in sales to Rs 651371 crore in Q1 June 2009 over Q1 June 2008.

Brokerages are likely to revise their earnings estimates upwards for the Sensex after most companies forming the part of the index reported results that beat analysts' expectations.

The BSE Sensex gained 1.89% to 15,670.31 in the week ended 31 July 2009. It was the Sensex's highest closing since 17 June 2008. The S&P CNX Nifty rose 1.48% to 4636.45 in the week.

Foreign institutional investor (FII) bought shares worth a net Rs 9,653.60 crore in July 2009 (till 29 July 2009). FIIs had bought stocks worth a net Rs 3,224.90 crore in June 2009. Their inflow in calendar year 2009 totaled Rs 34,197.80 crore

Investors will closely watch the progress of the annal monsoon as more than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains. The southwest monsoon rains, running between June to September, were 18% below normal in the week to 29 July 2009, having been above normal for the previous two weeks, the India Meteorological Department said on its website on Thursday, 30 July 2009. Total rainfall since the beginning of June was 19% below average, the weather bureau said.

Meanwhile, investor focus is likely to shift from secondary market to the primary market with the Adani Power's initial public offer seeing spectacular response. The public issue of 30.16 crore shares in the price band Rs 90-100 which opened for subscription from 28 July 2009 was oversubscribed 18.24 times by 15:00 IST on Friday, 31 July 2009, the last of the bidding. The company will raise up to Rs 3,016 crore at the upper end of the price band, making it the second-biggest issue after Reliance Power.

Close on the heels of Adani Power, state-run power company NHPC will hit the primary market to raise upto Rs 6048 crore through sale of shares in a price-band of Rs 30-36 in an IPO. The issue will open on 7 August 2009 and close on 11 August 2009. The company would sell 168 crore shares comprising of 5% stake divestment of the government and infusion of 10% fresh equity.

Globally the sentiment has been buoyant with the US equity indices surging to nine-month highs, with the Dow Jones above the psychological 9,000 mark on better-than-estimated results from frontline companies. Asian markets, too, struck 11-month high, as better-than-expected earnings of companies from Japan and US reinforced hopes of stronger global growth.

World equity funds garnered $9.5 billion in the week ending 29 July 2009, according to data the latest data from global fund tracker EPFR Global. The inflow was the highest since June 2008.

Emerging markets continued to be the darling of investors, with dedicated BRIC (Brazil, Russia, India and China) equity funds seeing net inflows for a 19th straight week. India equity funds took in a year-to-date high of $211 million in the most recent week, while China and Greater China stock funds saw $711 million in fresh money.

Meanwhile, investors will closely watch the preliminary second-quarter US GDP data about to be released by the Commerce Department on Friday, 31 July 2009. Economists forecast a 1.5% annualised pace of contraction in the second quarter, following a 5.5% drop in the first three months of 2009.

BSE / NSE Market Report 21 July 2009

Market Report 21 July 2009

Key benchmark indices fell in volatile trade as profit booking emerged after a recent solid surge. However firm European stocks capped the fall. The BSE 30-share Sensex was down 128.52 points or 0.85%, up close to 105 points from the day's low and off close to 175 points from the day's high. IT, realty and power stocks fell. Some metal stocks rose after Tata Steel raised $500 million from an issue of global depository receipts (GDR).

The market breadth, indicating the overall health of the market was negative. Concerns of impact of below average rains on the economy weighed on the sentiment.

The market was volatile. Profit taking pulled the key benchmark indices lower after a higher start triggered by firm global markets. The market cut losses in mid-morning trade. However, the intraday recovery proved short lived and the market lost ground again in early afternoon trade. The barometer index BSE Sensex regained 15,000 level soon after sliding below that level in early afternoon trade. Volatility was high in mid-afternoon trade.

Equities had witnessed a solid run up in the past few days with good initial batch of Q1 June 2009 lifting sentiment. From a recent low of 13,400.32 on 13 July 2009, the Sensex had risen 1,790.69 points or 13.36% in just five trading sessions to 15,191.01 on Monday, 20 July 2009.

Union Agriculture Minister Sharad Pawar on Monday said the overall agriculture situation due to an inadequate South-West monsoon so far was quite serious, and that the government was taking all steps to face the situation. Monsoon was 27% below normal during the period from 1 June 2009 to 15 July 2009. Spatial distribution and actual rain during July and August are vital to determine its consequences on overall economy. More than two-thirds of the people in India live in villages and 60% of the farm land depends on the annual rains.

Finance Secretary Ashok Chawla on Monday said the Centre and state governments are trying to ensure adequate supply of power and diesel for farmers to help them exploit ground water resources to the maximum.

The deputy chairman of the Planning Commission Montek Singh Ahluwalia said on Tuesday that India's economy does not need any more stimulus packages from the government. He said the Union Budget 2009-2010 includes a very significant boost in plan expenditure and investment.

Indian policymakers may reportedly raise foreign investment limit on government debt securities. Foreign investment in government debt is capped at $5 billion and at $15 billion in corporate debt, and the move if done is seen as ensuring demand for the government's record borrowing plan of Rs 4,51,000 crore ($94 billion) in 2009/10. The borrowing target, unveiled in the 6 July budget, is three times more than last year's and is aimed to bridge a fiscal deficit of 6.8 %, the biggest in 16 years.

The Q1 June 2009 results announced so far have encouraging, with lower costs helping bottomline growth. The combined net profit of 246 companies rose 42.8% Rs 12,717 crore on 10.9% growth in sales to Rs 96,767 crore in Q1 June 2009 over Q1 June 2008.

European shares rose on Tuesday, rising for a seventh straight day, following overnight gains US stocks and amid another batch of second-quarter earnings. Key benchmark indices in France, Germany and UK were up by between 0.9% to 1.33%.

Asian stocks were mixed. Key benchmark indices in Singapore, China and Hong Kong were down by between 0.07% to 1.64%. Key benchmark indices in Taiwan, Japan and South Korea were up by between 0.21% to 2.73%.

Trading in the US index futures indicated the Dow could rise 36 points at the opening bell today, 21 July 2009.

US stocks rallied on Monday, pushing the S&P 500 to an eight-month closing high, after CIT Group Inc was thrown a lifeline to avoid bankruptcy, and investors bet corporate America would log another strong set of earnings this week. CIT lends to nearly one million small and mid-sized US businesses.

The S&P 500 index closed at its best levels of the year and at 8-month highs above the psychologically important level of 950. Goldman Sachs has raised its year-end target for the index to 1,060 from 940.

The Dow gained 104.21 points, or 1.2%, to 8,848.15. The S&P 500 index rose 10.75 points, or 1.1%, to 951.13 and the Nasdaq Composite Index added 22.68 points, or 1.2%, to 1,909.29.

On the economic data front, an index which gauges US economic prospects for the next six to nine months, increased in June for the third straight month, suggesting the recession was drawing to a close.

The BSE 30-share Sensex was down 128.52 points or 0.85% at 15,062.49. At the day's high of 15,234.21, the Sensex rose 43.20 points in early trade. At the day's low of 14,955.88, the Sensex fell 235.13 points in early afternoon trade.

The S&P CNX Nifty was down 33.15 points or 0.74% to 4,469.10. Nifty July 2009 futures were at 4471.15, at a premium of 2.05 points as compared to the spot closing of 4469.10. Turnover in NSE's futures & options (F&O) segment was Rs 65,459.06 crore, lower than Rs 70,008.60 crore on Monday, 20 July 2009.

BSE clocked a turnover of Rs 6,190 crore which was almost equal to Monday's Rs 6,193.18 crore.

The barometer index BSE Sensex is up 5,415.18 points or 56.13% in calendar year 2009 as on 21 July 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 6,902.09 points or 84.5% as on 21 July 2009.

Coming back to today's trade, the market breadth, indicating the overall health of the market was negative. On BSE, 1,283 shares rose as compared with 1,343 that fell. A total of 86 shares remained unchanged.

From the 30 shares Sensex pack, 21 fell and rest rose.

The BSE Mid-Cap index was down 0.19%. The BSE Small-Cap index was up 0.24%. Both the indices outperformed the Sensex.

The BSE Metal index (up 1.25%), the BSE Auto index (up 0.11%), the BSE Healthcare index (up 0.02%), the BSE Capital Goods index (down 0.18%), the BSE Consumer Durables index (down 0.21%), the BSE FMCG index (down 0.85%), outperformed the Sensex.

The BSE IT index (down 1.74%), the BSE Power index (down 1.7%), the BSE PSU index (down 1.4%), the BSE TECk index (down 1.4%), the BSE Bankex (down 1.39%), the BSE Realty index (don 1.23%), the BSE Oil & Gas index (down 0.99%), underperformed the Sensex.

India's largest private sector firm by market capitalisation Reliance Industries (RIL) fell 0.65% to Rs 2,017.55. The stock hit a high of Rs 2,044.90 and a low of Rs 2,007.15. The stock had risen 5.03% on Monday, 20 July 2009, after the Supreme Court asked the energy giant and former group firm Reliance Natural Resources (RNRL) why a gas pact between the two should not be cancelled. The news hit the market during trading hours that day. The court has scheduled next hearing on the dispute over the gas supply to Reliance Natural Resources (RNRL) on 1 September 2009.

RNRL has asked the Supreme Court to dismiss the government's affidavit on the dispute, even as the petroleum ministry has suggested that the court treats the pact between the two brothers null and void. The dispute concerns supply of natural gas from RIL's field, off the Andhra Pradesh coast, as also the price at which Reliance Natural Gas will get the fuel for power projects within the group.

In reply to the lawsuit filed by Reliance Industries challenging the Bombay High Court order, RNRL has said the government has no role to play in the private gas sharing dispute, and certainly not as a party to the row. The government, however, has said that the country's interest must be taken into consideration first and that cannot be held to ransom by a dispute between two industrialists or a previous, private pact between them.

Shares of oil exploration firms fell even after crude oil rose for a fifth day today on speculation that fuel demand will increase as gains in equity markets spurred optimism the global recession is ending. India's largest state-run oil exploration firm by revenue ONGC fell 1.49%. Cairn India fell 0.18%. Crude oil for August delivery rose 0.45% to $64.27 a barrel on the New York Mercantile Exchange. Rise in crude oil prices would result in higher realizations from crude sales for oil exploration firms.

Metal stocks rose as LMEX, a gauge of six metals traded on the London Metal Exchange rose 1% on Monday, 20 July 2009. JSW Steel, Jindal Steel, Hindalco Industries, Steel Authority of India, rose by between 0.11% to 5.09%.

India's largest steel maker by sales Tata Steel jumped 5.28% reversing losses in early trade after the company said on Tuesday it has launched an issue of issue global depository receipts (GDR). The stock came off the day's low of Rs 377. The company today, 21 July 2009, said it will raise $500 million and priced each GDR at $7.644. Each GDR issue represents one underlying equity share. The issue will result in equity dilution of nearly 9%. The company will use the funds for expansion projects.

IT stocks fell on profit taking after Monday's sharp rally triggered by better-than-expected Q1 June 2009 result by India's largest IT exporter by sales TCS after trading hours on Friday, 17 July 2009. TCS fell 4.52% after surging 15.34% on Monday. The company's net profit rose 15.27% to Rs 1276.44 crore on 0.12% fall in sales to Rs 5609.60 crore in Q1 June 2009 over Q4 March 2009.

India's largest IT firm by sales Infosys fell 1.5%. The stock had risen 5.66% on Monday. The company had raised the lower end of its annual forecast in dollar terms at the time of announcing Q1 June 2009 results on 10 July 2009. Its ADR rose 5.01% overnight.

India's third largest IT exporter by sales Wipro fell 0.46% ahead of its Q1 June 2009 result on Wednesday, 22 July 2009. Its American depository receipt (ADR) rose 4.44% on Monday, 20 July 2009.

Power stocks fell on disappointment from the Budget early this month. There was lack of any major sops in the Budget for the power sector. Reliance Power, Reliance Infrastructure, Tata Power Company, NTPC, Power Grid Corporation of India, fell by between 0.27% to 2.67%.

India's largest car maker by sales Maruti Suzuki India rose 2.62% ahead of its Q1 June 2009 result on Thursday, 23 July 2009.

Realty stocks fell on profit taking after a recent surge triggered by government's thrust on the housing sector in the Budget. Unitech, Housing Development & Infrastructure, Omaxe, Indiabulls Real Estate, DLF, Ackruti City fell by between 0.91% to 2.48%.

Some cement stocks rose after a robust Q1 result by Ultratech Cement. Ultratech Cement rose 0.67% after net profit rose 61.41% to Rs 427.77 crore on 30.5% rise in total income to Rs 1,987 crore in Q1 June 2009 over Q1 June 2008.

Birla Corporation of India and Grasim Industries rose by between 0.95% to 4.04%.

Construction stocks, rose after thrust on infrastructure sector in the Union budget 2009-2010. Era Infra Engineering, Hindustan Construction Company, Gayatri Projects, JP Associates rose by between 0.35% to 3.5%.

Finance Minister Pranab Mukherjee on 6 July 2009, provided a thrust on various infrastructure projects in the Budget which may result in increase in orders for construction firms and help boost cement demand. The government announced more spending for urban, water and road projects. The allocation to National Highway development program allocation was increased 23% to Rs 15948 crore.

India's largest engineering and construction firm by sales Larsen & Toubro (L&T) rose 0.91%. The company, last week, stood by its stated outlook of 25% growth in order inflows for the current year even as the first quarter ended with a negative note. At the time of announcing Q1 June 2009 results, L&T had during trading hours on Thursday, 16 July 2009 said its order inflow was down 22 % in Q1 June 2009 over Q1 June 2008. The company's order backlog at the end of the June quarter was Rs 71, 650 crore ($14.7 billion).

Other capital goods stocks, Punj Lloyd, Praj Industries, BEML, ABB, Crompton Greaves, rose by between 0.77% to 3.84%.

Some drug makers rose after the Finance Minister Pranab Mukherjee reduced customs duty on life saving drugs in the Budget. Biocon, Ranbaxy Laboratories, Sun Pharmaceutical Industries , Cipla rose by between 0.16% to 1.01%.

Dr Reddy's Laboratories fell 0.18%. The company after market hours today said net profit rose 8.27% to Rs 227.44 crore on 9.13% rise in total income to Rs 1,220.71 crore in Q1 June 2009 over Q1 June 2008.

Finance minister on 6 July 2009, reduced basic customs duty on influenza vaccine and nine other specified life-saving drugs used for treating breast cancer, hepatitis-B, rheumatic arthritis, etc. The government has also reduced basic customs duty for two bulk drugs used in manufacturing these medicines from 10% to 5%. Bulk drugs are processed raw materials used in manufacturing the final doses of medicines.

Bank stocks fell on profit taking after recent gains triggered by the government's commitment to financial sector reforms. Finance Secretary Ashok Chawla on 17 July 2009, said the government will introduce seven bills in parliament, including proposals for pension and banking reforms and efforts to raise the foreign investment limit in insurance companies.

India's largest private sector bank by net profit ICICI Bank fell 1.92% even as its American depository receipt (ADR) rose 9.19% overnight.

India's biggest bank in terms of branch network State Bank of India (SBI) fell 0.74% on recent reports the Reserve Bank of India has asked it to set aside more money for bad loans, noting that provisions made by the bank are far short of the industry average.

India's second largest private sector bank in terms of operating income HDFC Bank fell 0.56%. Its ADR rose 6.61% overnight. The bank on Monday, 20 July 2009, slashed its benchmark lending rate by 25 basis points to 15.75%. The cut in lending rate follows the reduction in the fixed deposits rate effective from 18 May 2009, the private sector bank said.

HDFC Bank's net profit rose 30.52% to Rs 606.11 crore on 21.86% rise in total income to Rs 5136.75 crore in Q1 June 2009 over Q1 June 2008. Other income jumped 75.9% to Rs 1043.70 crore in Q1 June 2009 over Q1 June 2008, due to spurt in fees and commissions. The bank announced the result on 14 July 2009.

Yes Bank was flat at Rs 153.45 even as net profit surged 84.19% to Rs 100.07 crore in Q1 June 2009 over Q1 June 2008. The private sector bank announced the results during trading hours today

Axis Bank fell 0.39% on profit taking after recent sharp gains triggered by robust Q1 June 2009 results announced during market hours on 13 July 2009. Net profit rose 70.24% to Rs 562.04 crore on 33.64% rise in total income to Rs 3864.13 crore in Q1 June 2009 over Q1 June 2008. The bank

Unitech clocked the highest volume of 2.58 crore shares on BSE. Mahindra Satyam (2.45 crore shares), Ispat Industries (2.44 crore shares), IFCI (1.82 crore shares) and Cals Refineries (1.72 crore shares) were the other volume toppers in that order.

Tata Steel clocked the highest turnover of Rs 390.14 crore on BSE. Mahindra Satyam (Rs 231.55 crore), Unitech (Rs 210.31 crore), Reliance Capital (Rs 207.49 crore) and ICICI Bank (Rs 151.89 crore) were the other turnover toppers in that order.