BSE NSE Market Voices 24 July 2009

BSE NSE Market Voices 24 July 2009

Thanks to frenzied buying in realty, auto, metal and information technology stocks, the market ended on a high note today. Firm global trend, fairly buoyant quarterly results and optimism about global economic recovery lifted the market up today. After some listless movements, the Sensex ended the session at 15,374.59 (provisional) with a gain of 143.55 points or 0.94%. Earlier, after vaulting to 15,418.61 in opening trades, the Sensex had tumbled to 15,168.52. The Nifty closed at 4569.05, up 45.30 points or 1% over its previous close. In intra-day trades, the Nifty hit a high of 4578.75 and a low of 4504.85.

Tata Motors shot up by over 8% today. Maruti, Hero Honda and M&M also closed on a high note, gaining between 3.5% and 6.5%. DLF ended stronger by around 6.5%.

Tata Steel, JP Associates, HUL, Hindalco, ONGC, Tata Power and Sterlite gained 2.5% - 6.5%. Infosys, Grasim, NTPC, TCS and BHEL also rose sharply. Suzlon, Idea Cellular, HCL Tech, ABB and Unitech moved up by 3% - 8%. Cairn, Jindal Steel, RPower, Ranbaxy, GAIL, Reliance Capital and Nalco also closed with strong gains. Midcap and smallcap stocks too had a good outing today.

RIL ended a per cent down on cautious trades ahead of results. Bharti, Sun Pharma, SBI, HDFC, ICICI Bank and ACC were subdued. The market breadth was strong right through the session.

Essar Oil touched an intraday high of Rs 142 and an intraday low of Rs 139. At 2:12 pm, the share was quoting at Rs 140.65, up Rs 3.30, or 2.40%.

Ranbaxy Laboratories touched an intraday high of Rs 284.35 and an intraday low of Rs 275.55. At 1:55 pm, the share was quoting at Rs 280.25, up Rs 5.85, or 2.13%

Dr Reddys Laboratories touched an intraday high of Rs 820.85 and an intraday low of Rs 789. At 1:52 pm, the share was quoting at Rs 816, up Rs 29.60, or 3.76%.

DLF touched an intraday high of Rs 385.70 and an intraday low of Rs 372. At 1:54 pm, the share was quoting at Rs 385.30, up Rs 15.35, or 4.15%.

HDIL (Rs 263) has come a long way from a dismal low of Rs 63 it had touched early March this year.

The stock can move up further. A rise to Rs 320, and in the event of a strong breakout there, a surge to Rs 360 -375 is possible.

Eveready Industries has near term target of Rs 50, says SP Tulsian, Investment Advisor, on CNBC-TV18

Investors with some appetite for risk can pick up realty stocks at slight declines. Though a sustained upmove may remain elusive, a few sharp rallies are likely in select stocks in the realty space.

One has to be selective and choose stocks of firms with a fairly good track record.

Shriram Transport Finance Company Limited has reported a decent surge in net profit. The Company has posted a profit after tax of Rs 164.41 crore for the quarter ended June 30, 2009 on a total income of Rs 1034.96 crore. For the corresponding quarter last fiscal, the company had posted a net profit of Rs 143.61 crore.

The stock, which tumbled to Rs 291 following the announcement of results, is trading nearly 2% down at Rs 301 now.

Havells India touched an intraday high of Rs 315.65 and an intraday low of Rs 287.05. At 12:52 pm, the share was quoting at Rs 310.50, up Rs 25.15, or 8.81%

Mangalore Refinery and Petrochemicals, MRPL touched an intraday high of Rs 84.50 and an intraday low of Rs 82.80. At 12:47 pm, the share was quoting at Rs 83.55, up Rs 1.25, or 1.52%.

Sterlite Industries was among the major gainers on the Sensex. It touched an intraday high of Rs 658.85 and an intraday low of Rs 637. The share was quoting at Rs 655.50, up Rs 22.80, or 3.60%.

With crude oil prices surging higher on hopes of a rise in demand, there is a likelihood of Cairn India rising sharply from current levels. One holding the stock can stay invested in the counter and look at buying more at dips.

Firstsource Solutions touched an intraday high of Rs 25.55 and an intraday low of Rs 23.10. At 1:18 pm, the share was quoting at Rs 25.45, up Rs 2.40, or 10.41%.

Bharti Airtel has touched an intraday high of Rs 440 and an intraday low of Rs 410. At 12:39 pm, the share was quoting at Rs 420.20, up Rs 13.25, or 3.26%.

RComm (cmp Rs 276) can move on to Rs 282 - 285 this afternoon if the market's recovery gathers a bit of momentum. One holding the stock with a short or medium term view can continue to stay invested.

Bosch Limited's net profit slipped to Rs 1882.70 million for the quarter ended June 30, 2009 from Rs 2197.20 million for the quarter ended June 30, 2008. Total income decreased from Rs 13356.70 million for the quarter ended June 30, 2008 to Rs 13113.30 million for the quarter ended June 30, 2009. The thinly traded stock is up 2.85% at Rs 3536 now.

Tulip Telecom touched an intraday high of Rs 982.15 and an intraday low of Rs 920. At 12:36 pm, the share was quoting at Rs 968, up Rs 57.80, or 6.35%...

Mahindra Lifespace Developers touched an intraday high of Rs 294.95 and an intraday low of Rs 287. At 12:27 pm, the share was quoting at Rs 290.80, up Rs 5.40, or 1.89%.

S Kumars Nationwide touched an intraday high of Rs 42.10 and an intraday low of Rs 39.25. At 12:19 pm, the share was quoting at Rs 40.80, up Rs 1.85, or 4.75%.

Most of the markets in the Asian region are trading sharply higher today on strong earnings and some better than expected economic reports. However, the mood on the Indian bourses remains a bit cautious ahead of some key results, including that of Reliance Industries. Though a rebound from lower levels is not ruled out, the undertone is likely to remain somewhat cautious right through the session today.

CESC Limited has posted a net profit of Rs 105 crore for the quarter ended June 30, 2009 as compared to Rs 94 crore for the quarter ended June 30, 2008. The stock is up with a modest gain at Rs 292. Long term investors can hold the stock with a stop loss near Rs 165, its 52-week low.

Avoid DLF, says Sudarshan Sukhani, Technical Analyst, on CNBC-TV18

Expect higher level in Punj Lloyd, says Sudarshan Sukhani, Technical Analyst, on CNBC-TV18

One holding capital goods heavyweights L&T and BHEL can stay invested in them for long term.

There may be a few weak spells for these stocks in the near term and one can use sharp dips to increase exposure to the counters.

Avoid India Cements, Ambuja Cements, says Sanju Verma, CEO-Institutional Business, Proactive Universal Group, on CNBC-TV18

SBI (cmp Rs 1703) can be bought for intra-day if it recovers to Rs 1722 and stays firm for a while. One holding the stock with a long term view can stay invested and buy more of it at sharp declines. The stock is likely to face resistance around Rs 1810. A breach there could lift the stock past Rs 1900.

GMR Infrastructure (cmp Rs 141) can move up to Rs 155 and a strong breakout there could result in a surge to Rs 170 or even higher. The stock can be retained with a stop loss at Rs 115 - 120 levels.

Buy Idea Cellular on dip, says Sukhani, Technical Analyst, on CNBC-TV18

Tata Steel looks cheap, says Sanju Verma, CEO-Institutional Business, Proactive Universal Group, on CNBC-TV18

Gujarat State Petronet, GSPL touched a 52-week high of Rs 67.60. At 10:26 am, the share was quoting at Rs 67.20, up Rs 4.10, or 6.50% It was trading with volumes of 2,078,818 shares. Yesterday the share closed up 3.10% or Rs 1.90 at Rs 63.10.

Ambuja Cements has posted a net profit for the period of Rs 324.65 crore for the quarter ended June 30, 2009 as compared to Rs 577.02 crore for the quarter ended June 30, 2008. Total Income has increased from Rs 1610.57 crore for the quarter ended June 30, 2008 to Rs 1916.58 crore for the quarter ended June 30, 2009. The stock, currently trading at Rs 95, can be picked up at slightly lower levels for long term.

Indian Oil Corporation - Sell below 527 with a stop loss of 531

Bharat Forge has posted a net profit of Rs 9.60 million for the quarter ended June 30, 2009 as compared to Rs 265.60 million for the quarter ended June 30, 2008. Total Income has decreased from Rs 6494.50 million for the quarter ended June 30, 2008 to Rs 3638.20 million for the quarter ended June 30, 2009. Despite the fall in earnings, the Bharat Forge stock is up by 3.6% at Rs 165. One holding the stock with a long term view can stay invested for now. Fresh buying can be considered at sharp dips.

Axis Bank - Buy above 898 for the targets of 912 / 918 / Higher with a stop loss of 890

Hindalco - Buy above 89 for the target of 91 / 93 / Higher with a stop loss of 88

The market opened on a positive note this morning on strong global cues. The Sensex opened 41 points up at 15,272 and vaulted to 15,418.61 in a flash and is up by 117 points or 0.77% at 15,348 at present.

The Nifty has gained 33 points or 0.75% at 4556.75.

Idea Cellular, Suzlon, Infosys, Unitech, RPower, Cairn, DLF, Nalco, Sterlite and Tata Steel are the top gainers.

Suzlon Energy: Buy above 97.30 for the target of 99 / 101 / higher with a stop loss of 96.30

Brokerage Recommendations 24 July 2009

Brokerage Recommendations 24 July 2009

If one wants to invest Rs 1 lakh in the market now, spread out the portfolio and accumulate GAIL, HUL, PNB, BoB, NTPC and Alstom Projects, says Salil Kapoor of Kapoor & Sharma Company on Zee Business.

Buy Unitech with a target of Rs 100-120, says Alok Nanavati, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 87, up 3% on the BSE.

Buy Shree Cements with a target of Rs 1550, says Ashwani Gujral, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 1446, up 2.5% on the BSE.

Buy Kotak Mahindra Bank with a target of Rs 685 where one can exit, says Salil Kapoor of Kapoor & Sharma Company on Zee Business. The stock is currently trading at Rs 635, down 0.79% on the BSE.

Buy Sesa Goa with a target of Rs 275, says Alok Nanavati, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 233, down 0.41% on the BSE.

Buy Kesoram with a target of Rs 450, says Ashwani Gujral, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 369, down 0.91% on the BSE.

Buy GAIL with a target of Rs 500 in 24 months, says Vijay Bhambwani, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 352, up 1.92% on the BSE.

Buy Unitech with a target of Rs 93 and stop loss of Rs 85, says Prakash Gaba, technical analyst, on CNBC Awaaz, as closing market strategy.

Buy Mahindra & Mahindra with a target of Rs 920 and stop loss of Rs 790, says Ashwani Gujral, technical analyst, on CNBC Awaaz, as closing market strategy.

Buy Suzlon with a target of Rs 109 on Monday and stop loss of Rs 99, says Nitin Murarka of SMC Global Securities on Zee Business as closing market strategy.

Buy Axis Bank with a target of Rs 975 and then Rs 1000, says Alok Nanavati, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 892, up 0.2% on the BSE.

Buy Bank of Rajasthan with a target of Rs 68 and support at Rs 35, says Ashwani Gujral, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 59, up 19.9% on the BSE.

Buy Mahindra Satyam with a target of Rs 120-122 where one can exit, says Mitesh Thakkar, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 104, up 0.8% on the BSE.

In an F&O call, buy Nifty July futures with a target of 4770 and stop loss of 4450, says Prasad Kushe, technical analyst, on CNBC Awaaz. This target is likely to be met by next week, he says. A cash closing of Nifty above 4557 and futures closing for Nifty above 4578 will mean it is headed higher, he says.

In an F&O call, buy Nifty July futures with a target of 5000 and stop loss of 4387, says Rakesh Bansal, technical analyst, on CNBC Awaaz.

In an F&O call, buy Nifty July futures with a target of 4700 and stop loss of 4350, says Hardik Jain, technical analyst, on CNBC Awaaz. Go long on every correction, he adds.

Buy Alston Projects with a target of Rs 525-565 and stop loss of Rs 505, says Salil Kapoor of Kapoor & Sharma Company on Zee Business. The stock is currently trading at Rs 523, up 0.66% on the BSE.

Buy Unitech with a target of Rs 90-108, says Mitesh Thakkar, technical analyst, on CNBC TV18. The stock is currently trading at Rs 87, up 3.7% on the BSE.

Hold DLF with a target of Rs 410-415 after which it can go to Rs 480 where one can exit, says Salil Kapoor of Kapoor & Sharma Company on Zee Business. The stock is currently trading at Rs 384, up 4.1% on the BSE.

Buy DLF with a target of Rs 390, says Mitesh Thakkar, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 384, up 4.1% on the BSE.

Traders can buy Ranbaxy on dips with target of Rs 296, says Akshita Deshmukh, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 279, up 2% on the BSE.

Buy Ranbaxy with a target of Rs 290 and stop loss of Rs 267, says Salil Kapoor of Kapoor & Sharma Company on Zee Business. The stock is currently trading at Rs 279, up 2% on the BSE.

Our market is in sync with global markets and will continue to move with them, says Anu Jain of India Infoline, on CNBC TV18. Nifty has support at 4510 and resistance at 4613 after which it will go higher, she adds. Nifty resistance zone is 4650-4710 where one will see profit booking but buying will emerge at dips too, she says.

Buy Sterlite Industries with a target of Rs 725, says Mitesh Thakkar, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 656, up 3.7% on the BSE.

Sell RIL on rally at Rs 2120-2376, says Ashu Baggri, technical analyst, on NDTV Profit. It is in a downtrend now, he adds. The stock is currently trading at Rs 2013, down 1.27% on the BSE.

Buy GAIL with a target of Rs 365 where one can book profits and stop loss of Rs 336, says Salil Kapoor of Kapoor & Sharma Company, on Zee Business. The stock is currently trading at Rs 351, up 1.87% on the BSE.

Buy Birla Corporation with a target of Rs 360, says Mitesh Thakkar, technical analyst, on CNBC TV18. The stock is currently trading at Rs 298, down 0.17% on the BSE.

Hold Binani Cement with a target of Rs 63 where one can exit and stop loss of Rs 55, says Hormuz Maloo, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 59, up 1.19% on the BSE.

Buy Welspun Gujarat with a target of Rs 245-269 and it has support at Rs 185, says Ashwani Gujral, technical analyst, on CNBC TV18. The stock is currently trading at Rs 211, up 1.34% on the BSE.

Hold Satyam with target of Rs 150 in 12-18 months, says DD Sharma of Anand Rathi Securities on NDTV Profit. The stock is currently trading at Rs 106.45, up 2.3% on the BSE.

Book profits in Satyam at Rs 114 and buy again when it goes down to Rs 80, says Ashu Baggri, technical analyst, on NDTV Profit. The stock is currently trading at Rs 106.25, up 2.1% on the BSE. » Send to friends

12:50 PM - Hold HDIL with long-term targets of Rs 325 and then 350 plus, says Gaurang Shah of Geojit BNP Paribas on CNBC Awaaz. Buy more at Rs 220, he adds. The stock is currently trading at Rs 255.85, up 1.8% on the BSE. » Send to friends

12:44 PM - Hold Gitanjali Gems with stop loss of Rs 90, says Ramesh Arora, technical analyst, on Zee Business. It has resistance at Rs 110 crossing which it can go to Rs 125, he adds. The stock is currently trading at Rs 100, up 1.1% on the BSE.

Hold Hindalco with target of Rs 108, says Ashu Baggri, technical analyst, on NDTV Profit. Keep stop loss of Rs 78, he adds. The stock is currently trading at Rs 92.80, up 2.3% on the BSE.

Hold RIL for 30-40% returns in 12-18 months, says P Phani Sekhar of Angel Broking on CNBC Awaaz. The stock is currently trading at Rs 1992.55, down 2.2% on the BSE.

The most reachable target for the markets would be about 4760 to 4700, says Sudarshan Sukhani, technical analyst, on CNBC TV18. According to him, markets were becoming fairly over-bought in the short term and so rallies should be used to take profits rather than enter.

Hold Shree Cements and exit at Rs 1550, says Akshita Deshmukh, technical analyst, on CNBC Awaaz. It is in overbought territory and on correction it can show very low levels, she adds. The stock is currently trading at Rs 1452.15, up 2.9% on the BSE.

Hold IDFC with short-term stop loss of Rs 125 and long-term stop loss of Rs 115, says Ramesh Arora, technical analyst, on Zee Business. It has resistance at Rs 133 crossing which it can go to Rs 150, he adds. The stock is currently trading at Rs 131.55, up 0.6% on the BSE.

Hold Aban Offshore with short-to-medium target of Rs 1065, says Gaurang Shah of Geojit BNP Paribas on CNBC Awaaz. The stock is currently trading at Rs 975, up 0.9% on the BSE. » Send to friends

11:52 AM - Hold HCC with target of Rs 129 in 2-3 months, says Akshita Deshmukh, technical analyst, on CNBC Awaaz. It has support at Rs 105, she adds. The stock is currently trading at Rs 111.80, up 0.3% on the BSE.

China and India look like the strongest economies in the region both this year and the next, says Daniel McCormack of Macquarie Securities on CNBC TV18. There have been broad-based upward revisions to earnings in June, but at over 16x forward price to earnings, India is too expensive for us to be overweight currently, he adds.

Hold BHEL with long-term targets of Rs 2400-2500, says Gaurang Shah of Geojit BNP Paribas on CNBC Awaaz. The stock is currently trading at Rs 2203, up 1.6% on the BSE.

Hold Jaiprakash Associates with stop loss of Rs 222, says Ramesh Arora, technical analyst, on Zee Business. It has resistance at Rs 235 crossing which it can go to Rs 255-260, he adds. The stock is currently trading at Rs 233.45, up 1.7% on the BSE.

Buy RIL only if it closes above Rs 2100, says Hardik Jain, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 2033.70, down 0.2% on the BSE.

Hold ITC with targets of Rs 246 and then 265, says Gaurang Shah of Geojit BNP Paribas on CNBC Awaaz. Keep trailing stop loss of Rs 216-218, he adds. The stock is currently trading at Rs 225, down 2.2% on the BSE.

Hold GMR Infra with short-term stop loss of Rs 136 and long-term stop loss of Rs 115, says Ramesh Arora, technical analyst, on Zee Business. It has resistance at Rs 148 crossing which it can go to Rs 170, he adds. The stock is currently trading at Rs 142.75, up 1.6% on the BSE.

Buy Mahindra & Mahindra with target of Rs 880, says Ashwani Gujral, technical analyst, on CNBC TV18. Keep stop loss of Rs 750, he adds. The stock is currently trading at Rs 822, up 2.5% on the BSE.

Buy DLF with long-term view, says Deepak Mohoni, technical analyst, on CNBC Awaaz. The downside volatility is less in this stock, he adds. The stock is currently trading at Rs 377, up 2% on the BSE.

Hold JSW Steel with stop loss of Rs 570, says Ramesh Arora, technical analyst, on Zee Business. It has resistance at Rs 640 crossing which it can go to Rs 710, he adds. The stock is currently trading at Rs 630.40, up 1.7% on the BSE.

Buy ONGC on dips, says Gaurang Shah of Geojit BNP Paribas on CNBC Awaaz. The stock is currently trading at Rs 1080.90, down 1.1% on the BSE.

Nifty can go up to 4700 and so one should buy at lower levels, says Hardik Jain, technical analyst, on CNBC Awaaz. He sees support at 4350-4300.

Hold DLF with stop loss of Rs 355, says Ramesh Arora, technical analyst, on Zee Business. It has resistance at Rs 378 crossing which it can go to Rs 420, he adds. The stock is currently trading at Rs 376.70, up 1.9% on the BSE.

Buy Ispat with intra-day target of Rs 24.50, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 21, he adds. The stock is currently trading at Rs 22.25, up 0.7% on the BSE.

Buy JK Lakshmi Cement with intra-day target of Rs 138, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 122, he adds. The stock is currently trading at Rs 131.70, up 3.2% on the BSE.

Buy Essar Oil with intra-day target of Rs 146, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 135, he adds. The stock is currently trading at Rs 140.10, up 2% on the BSE.

The market opens on a good but quiet note, in the steps of positive global cues. Earlier, the US markets rallied to their best levels in months and the Dow and S&P 500 closed at their 2009 high. Asia is trading firm. Sensex is trading at 15338, up 113 points from its previous close, and Nifty is at 4558, up 34 points. CNX Midcap index is up 1.2% and BSE Smallcap index is up 1.1%. The market breadth is positive with advances at 575 against declines of 66 on the NSE.

Buy Aban Offshore at Rs 966 with intra-day target of Rs 1020, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 946, she adds. The stock last traded at Rs 966.15, up 8.2% on the BSE.

Buy Eveready Industries with intra-day target of Rs 46, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 41, he adds. The stock last traded at Rs 42.15, up 17.9% on the BSE.

Buy Sterlite Industries at Rs 633 with intra-day target of Rs 649, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 620, she adds. The stock last traded at Rs 632.70, up 5.2% on the BSE.

Reliance is likely to surprise the street as I expect the company to report profits between Rs 4350-4375 crore in Q1, says Deven Choksey of KR Choksey Securities on CNBC TV18. He believes that the undertone in the market is positive on the back of strong global cues. I expect the Nifty range to shift above 4750 in the short-term, he adds.

Buy ACC at Rs 854 with intra-day target of Rs 876, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 840, she adds. The stock last traded at Rs 854.65, up 5.8% on the BSE.

BSE / NSE Market Report 23 July 2009

Market Report 23 July 2009

Key benchmark indices rallied, snapping losses in the preceding two trading sessions, on stellar Q1 June 2009 earnings from some Sensex stocks and positive economic data. Maruti Suzuki, ITC and ACC unveiled forecast beating earnings today, 23 July 2009. The BSE 30-share Sensex jumped 387.92 points or 2.61% to 15,231.04. The barometer index today regained the psychological 15,000 mark and the 50 unit S&P CNX Nifty surged past 4,500 level.

Shares of Sun Pharma gained 1.62% in highly volatile trade after plunging as much as 7.70% in early trade. Maruti Suzuki, ITC and ACC logged smart gains on strong Q1 June 2009. However Bharti Airtel faltered as average revenue per user dipped.

Today's market rally was accompanied by higher volume. BSE's cash market turnover amounted to Rs 8030 crore as compared with Rs 6672 crore on Wednesday, 22 July 2009. Apart from upbeat Q1 results, positive infrastructure data and strong Asian stocks also bolstered bulls. All the sectoral indices on BSE logged gains.

After a firm opening triggered by higher Asian stocks, the market soon came off the higher level. A bout of volatility was witnessed later. The Sensex climbed to a fresh intraday high in mid-afternoon trade.

The market recovered today after last two days' slide. The BSE Sensex had lost 347.89 points or 2.29% in the previous two trading sessions.

In a move that my boost sentiment, foreign institutional investors (FIIs) and the non-resident Indians (NRIs) have been allowed to invest in Indian Depository Receipts (IDR), according to the operational guidelines issued by the Reserve Bank of India on Wednesday, 22 July 2009. FIIs, including the Securities & Exchange Board of India (Sebi) approved sub-accounts of the FIIs registered with Sebi and NRIs may invest, purchase, hold and transfer IDRs of eligible companies resident outside India and issued in the Indian capital market, subject to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000.

The six infrastructure industries -- crude oil, refining, coal, electricity, cement and steel -- together grew at an annual rate of 6.5% in June 2009, faster than the previous month's rise of 2.8%, data showed on Thursday, 23 July 2009. The data indicated improving economic activity. The infrastructure sector accounts for 26.7% of India's industrial output.

Inflation measured by the wholesale price index (WPI) declined 1.17% in the 12 months to 11 July 2009, as compared with previous week's annual decline of 1.21%, government data showed today, 23 July 2009.

Meanwhile, annual monsoon rains, running between June to September, are seeing a revival after a sluggish start. The cumulative seasonal rainfall for the country as a whole during this year's monsoon has so far been 24% below the Long Period Average (LPA), the India Meteorological Department said on its website in a press release dated 17 July 2009. Out of 36 meteorological sub-divisions, rainfall was excess/normal in 13 and deficient/scanty in 23 meteorological sub-divisions

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

The Q1 June 2009 results announced so far have been encouraging, with lower costs helping bottomline growth. The combined net profit of 354 companies rose 35.10% Rs 22352 crore on 9.2% growth in sales to Rs 159099 crore in Q1 June 2009 over Q1 June 2008.

European markets were trading subdued today, 23 July 2009. Key benchmark indices in UK, France and DAX were down by between 0.09% and 0.45%

Asian stocks climbed to a 10-month high today, 23 July 2009 led by energy shares. Key benchmark indices in Hong Kong, Singapore, South Korea and Japan were up by between 0.16% and 2.96%. However Taiwan's Taiwan Weighted index slipped 0.06%

China's Shanghai Composite rose 0.97% after the Chinese Foreign Minister Yang Jiechi today, 23 July 2009 expressed confidence that his country's economy could reach an 8% growth target this year buoyed by stimulus package.

Yang Jiechi added that giving developing nations more weight in global financial bodies would be a key element of the G20 summit in Pittsburgh in September 2009.

US markets ended mixed on Wednesday, 22 July 2009 as both the Dow Jones and the S&P 500 ended the session in the red after poor quarterly results by financial giants Morgan Stanley and Wells Fargo. However, the tech heavy Nasdaq Composite index successfully logged its eleventh straight advance on robust earnings from Apple Inc and Starbucks Corp.

The Dow slipped 34.68 points, or 0.39%, to 8,881.26 and the S&P 500 slipped 0.51 points, or 0.05%, to 954.07. However the Nasdaq Composite index rose 10.18 points, or 0.53%, to 1,926.38.

US President, Barack Obama said on Wednesday, 22 July 2009 said that the country has seen a stabilisation in the financial system.

Trading in the US index futures indicated the Dow could rise 25 points at the opening bell today, 23 July 2009.

The BSE 30-share Sensex jumped 387.92 points or 2.61% to 15,231.04, its highest closing since 12 June 2009. The Sensex opened 165.66 points higher at 15,008.78. At the day's high of 15,264.84, the Sensex advanced 421.72 points in mid-afternoon trade. The Sensex rose 154.63 points at the day's low of 14,997.75 in early trade.

The S&P CNX Nifty was up 124.85 points or 2.84% to 4,523.75, its highest closing since 12 June 2009. Nifty July 2009 futures were at 4539.95, at a premium of 16.20 points as compared to the spot closing.

The Sensex is up 5583.73 points or 57.87% in calendar year 2009 as on 22 July 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 7070.64 points or 86.64% as on 23 July 2009.

Coming back to today's trade, the market breadth, indicating the overall health of the market, was strong. On BSE, 1797 shares advanced as compared with 856 that declined. 87 shares remained unchanged.

The BSE Mid-cap index gained 2.29% to 5,293.37 and BSE Small-cap index rose 2.16% to 5,942.85. However, both these indices underperformed the Sensex

All the sectoral indices on BSE logged gains. The BSE Realty index (up 5.08%), the BSE Consumer Durables index (up 4.47%), the BSE Auto index (up 3.87%), the BSE FMCG index (up 3.95%), the BSE Healthcare index (up 2.85%), the BSE Metal index (up 4.32%), outperformed the Sensex.

The BSE PSU index (up 1.37%), the BSE Oil & Gas index (up 2.39%), the BSE Bankex (up 1.73%), BSE Capital Goods index (up 2.08%), the BSE Power index (up 2.59%), the BSE IT index (up 1.99%), the BSE TECk index (up 1.55%), underperformed the Sensex.

Among the 30-member Sensex pack, 28 advanced while only 2 of them declined.

Realty stocks rose on the government's thrust on the housing sector in the Union Budget 2009-10 tabled in the Parliament on 6 July 2009. India's largest real estate developer by sales DLF jumped 7.60% to Rs 372.50 and was the top gainer from the Sensex pack.

Unitech (up 5.72%), Housing Development & Infrastructure (up 5.73%), Indiabulls Real Estate (up 3.49%), and Ackruti City (up 1.80%), advanced.

Infrastructure stocks rose on the government's thrust on the infrastructure sector in the Union Budget 2009-2010. Larsen & Toubro (up 2.95%), Reliance Infrastructure (up 7.21%), Lanco Infratech (up 3.54%), GMR Infrastructure (up 2.66%), and GVK Power Infrastructure (up 1.42%), rose

India's biggest power equipment maker by sales Bharat Heavy Electricals gained 0.66% after net profit rose 22.41% to Rs 470.59 crore on 27.64% rise in total income to Rs 5,898.51 crore in Q1 June 2009 over Q1 June 2008. Bhel outstanding order book stood at Rs 1,24,000 crore. The company announced the result during market hours on Wednesday, 22 July 2009.

Power stocks rose after strong response to India's second largest private sector power generation company by sales Tata Power Company's global depository receipt (GDR) on Wednesday. Tata Power Company rose 2.64% to Rs 1150. Among other power stocks, Reliance Power (up 5.66%), NTPC (up 1.97%), CESC (up 2.67%), gained.

Tata Power Company during trading hours on Wednesday 22 July 2009, said strong response for its GDR issue helped it raise $335 million as compared with an earlier announced plan to raise $250 million. The company will use the funds for its ongoing capital expenditure plans. Tata Power issued 14.8-million GDRs priced at $22.58 a piece, with each GDR representing one equity share, Tata Power said.

KEC International soared 9.56% after the company bagged four orders totaling Rs 471 crore. The company announced the fresh orders during the trading hours today, 23 July 2009.

Metal stocks gained after LMEX, a gauge of six metals traded on the London Metal Exchange, rose 1.72% on Wednesday, 22 July 2009. Hindalco Industries (up 6.20%), Hindustan Zinc (up 5.67%), Nalco (up 2.66%), JSW Steel (up 4.63%), Tata Steel (up 4.10%), edged higher.

India's largest private sector copper marker by sales Sterlite Industries surged 5.27%. The company said on 18 July 2009 it has raised $1.5 billion though an American Depositary Shares (ADS) issue. Parent Vedanta Resources participated in the offering with an allocation of $500 million either directly or through a subsidiary. On allotment, Vedanta's shareholding in Sterlite will drop to 57.5% from 61.7%, assuming no exercise of over-allotment option

Maharashtra Seamless rose 1.87% after net profit rose 8.2% to Rs 65.22 crore on 20.1% rise in net sales to Rs 422.51 crore in Q1 June 2009 over Q1 June 2008. The company declared its results after market hours on Wednesday, 22 July 2009.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) advanced 3.19% to Rs 2040.40, a day ahead of its Q1 June 2009 results on Friday, 24 July 2009. The stock shrugged off reports that the petroleum ministry is considering issuing a notice to Reliance Industries (RIL) for allegedly violating the production sharing contract (PSC) governing supply and production of gas from the Krishna Godawari (KG) basin.

The government may even cancel the contract as it claims that the secret family agreement to divide the gas was signed without informing the government. The family agreement in question refers to a memorandum of understanding (MoU) drawn up in 2005, which forms the basis for the division of RIL and parts of which refer to gas supply by RIL to Reliance Natural Resources (RNRL).

Earlier, the Supreme Court on 20 July 2009, asked the energy giant and former group firm Reliance Natural Resources (RNRL) why a gas pact between the two should not be cancelled. 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.

India's largest oil exploration firm by revenue ONGC was down 0.44% ahead of its Q1 June 2009 results today, 23 July 2009. The stock gyrated in a band of Rs 1080 and Rs 1118 in the day.

Mangalore Refinery and Petrochemicals declined 2.66% after net profit slumped 50.31% to Rs 420.07 crore on 41.53% fall in total income to Rs 6,298.97 crore in Q1 June 2009 over Q1 June 2008. The company announced the results during trading hours today, 23 July 2009.

India's top small car maker by sales Maruti Suzuki India shot up 6.67% to Rs 1298.30 after the net profit rose 25.26% to Rs 583.54 crore on a 31.01% increase in total income to Rs 6709.53 crore in Q1 June 2009 over Q1 June 2008. The stock hit a record high of Rs 1305.50 in intra-day today, 23 July 2009. The result was announced during trading hours today, 23 July 2009.

Strong Maruti results boosted sentiment for other auto shares. Mahindra & Mahindra (up 4.82%), Tata Motors (up 4.62%), bajaj Auto (up 0.94%), and Ashok Leyland (up 1.85%), advanced.

India's largest cement manufacturer by sales ACC vaulted 5.84% after net profit soared 79% to Rs 485.61 crore on a 15.32% increase in total income to Rs 2138.24 crore in Q2 June 2009 over Q2 June 2008. The results were declared during trading hours today, 23 July 2009

India's top cigarette maker by sales ITC gained 5.88% after net profit rose 17.38% to Rs 878.80 crore on 5.14% rise in total income rose to Rs 4220.49 crore in Q1 June 2009 over Q1 June 2008. The results were unveiled during trading hours today, 23 July 2009

India's largest listed cellular services provider by sales Bharti Airtel reversed early gains and was down 1.20% to Rs 813 after the company average monthly revenue per user dropped to Rs 278 in Q1 June 2009 from Rs 305 in Q1 June 2008. Average monthly minutes of use by user -- another key metric used by analysts to gauge performance -- fell 2% to 478 minutes in Q1 June 2009 over Q4 March 2009. The decline in these parameters hurt investor sentiment. It was the top loser from the Sensex pack

Bharti's net profit net profit jumped 31.3% to Rs 2687.51 crore on a 13.88% rise in total income to Rs 9056.29 crore in Q1 June 2009 over Q1 June 2008. The results were declared before trading hours today, 23 July 2009.

India's second largest listed cellular services provider by sales Reliance Communications (RCom) gained 5.79% after it bagged a Rs 10,000-crore telecom infrastructure outsourcing deal from new entrant Etisalat DB Telecom (formerly Swan Telecom). The deal, which includes both towers and transmission, is spread over a 10-year period. The company made this announcement during market hours on Wednesday, 22 July 2009.

India's largest pharma company by market capitalisation Sun Pharma rose 1.62% to Rs 1275, rebounding sharply from day's low of Rs 1158. The early plunge was triggered on reports investors have initiated a lawsuit seeking class action status against its US subsidiary Caraco Pharmaceutical in the United States District Court.

On June 25, the US FDA had announced seizure of drug products from the company's three facilities in Michigan at Detroit, Farmington Hills and Wixom. Upto 33 different drugs were seized and the US FDA banned Caraco from manufacturing and selling these drugs in the US until there is assurance that the firm complies with manufacturing standards. The action followed Caraco's continued failure to meet the US FDA's current good manufacturing practices (cGMP) requirements.

Biocon spurted 3.13% after net profit jumped 283.55% to Rs 57.55 crore on 96% surge in net sales to Rs 71.40 crore in Q1 June 2009 over Q1 June 2008.

Banking shares eased from the day's high after inflation data. India's largest private sector bank by net profit ICICI Bank was up 1.33% to Rs 771, off the day's high of Rs 787.75. India's second largest private sector bank in terms of operating income HDFC Bank rose 0.33% to Rs 1451, off day's high of Rs 1470

India's biggest bank in terms of branch network State Bank of India (SBI) rose 1.73% to Rs 1722.90, off the day's high of Rs 1241. Finance secretary Ashok Chawla said on 22 July 2009 that the Centre will seek Cabinet approval to dilute government stake in the state-run bank.

Indian Bank rose 7.51% after net profit surged 52.40% to Rs 331.66 crore 27.82% rise in total income to Rs 2,230.39 crore in Q1 June 2009 over Q1 June 2008. The bank declared its results during the trading hours today, 23 July 2009.

Union Bank of India tumbled 4.60% after the Reserve Bank India said foreign institutional investors (FIIs) will have to get its approval to purchase equity shares as FII investment in the public sector bank has reached 18% against its permissible limit of 20%.

Union Bank of India's net profit rose 93.70% to Rs 442.19 crore on 34.45% rise in total income to Rs 3704 crore in Q1 June 2009 over Q1 June 2008. The state-run bank announced the results during trading hours today, 23 July 2009.

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 dedicated housing finance company by sales, HDFC rose 2.23%. The finance firm reported 20.68% rise in net profit to Rs 564.92 crore on 22.86% rise total income to Rs 2,849.07 crore in Q1 June 2009 over Q1 June 2008. The lender announced its result during late trade on Wednesday, 22 July 2009.

IT stocks rose on fresh buying following upbeat Q1 June 2009 results from frontline IT companies in the past few days.

India's third largest IT exporter by sales Wipro advanced 0.99% after consolidated net profit as per Indian accounting rules rose 0.54% to Rs 1015.50 crore on 2.5% fall in sales to Rs 6289.10 crore in Q1 June 2009 over Q4 March 2009. The company announced the results before trading hours on Wednesday, 22 July 2009.

India's largest IT exporter by sales TCS gained 2.19% after 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. The company announced the result after trading hours on 17 July 2009.

India's largest IT firm by sales Infosys shot up 2.75%. The government has launched a Government-to-Business (G2B) services e-biz project with Infosys as the technology partner. The project is among the 27 Central, State and Integrated Mission Mode Projects (MMPs) under the National E-Governance Plan (NEGP).

Tech Mahindra rose 1.95% even as net profit dropped 43% to Rs 131.6 crore on 6% rise in total revenues to Rs 1,113 crore in Q1 June 2009 over Q4 March 2009. The company attributed fall in net profit to surge in interest costs on debt it took to buy Mahindra Satyam, the erstwhile Satyam Computer Services. The results were declared after market hours on Wednesday, 22 July 2009. Shares of Mahindra Satyam surged 15.09% to Rs 104.90

Mahindra Satyam was the top traded counter on BSE with turnover of Rs 556.941 crore followed by Reliance Industries (Rs 438.71 crore), ICICI Bank (Rs 281.22 crore), Aban Offshore (Rs 189.99 crore), and Infosys Technologies (Rs 189.80 crore).

Mahindra Satyam, too, led the volume charts on BSE clocking volume of 5.53 crore shares followed by IFCI (1.89 crore shares), Ispat Industries (1.80 crore shares), Suzlon Energy (1.53 crore shares) and Unitech (1.47 crore shares) were the other volume toppers in that order.

Century Enka was locked at 10% upper limit after net profit galloped 489.40% to Rs 28.35 crore in Q1 June 2009 over Q1 June 2008. The company announced the fresh orders during the trading hours today, 23 July 2009.

Zee News jumped 4.93% after net profit rose 24.85% to Rs 11.91 crore on a 21.35% increase in total income to Rs 132.98 crore in Q1 June 2009 over Q1 June 2008. The result was announced during trading hours today, 23 July 2009

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Closing Bell 23 July 2009

Closing Bell 23 July 2009

Buying activity during the final hour of trade further strengthened gains in the Indian indices as they ended the day well above the dotted line. The BSE-Sensex ended the day higher by around 380 points, while the NSE-Nifty closed higher by about 125 points. Stocks from the mid-cap and small-cap spaces ended the day on a strong note as well, recording gains of 2.3% and 2.2% respectively. While buying was witnessed across sectors, Bharti Airtel and ONGC emerged as the losers on both the indices. The advance to decline ratio was poised at 3.7 to 1 on the NSE.

Other Asian markets also ended the day on a firm note. The European indices are currently trading mixed. Rupee was trading at 48.44 against the US dollar at the time of writing.

India Cements, through its subsidiary, ICL Financial Services, recently acquired a 53% stake in a Rajasthan based Indo Zinc company at a valuation of Rs 53 m. Upon finding difficulties in going ahead with its proposed greenfield expansion of 1.5 million tonnes (MT) in the state of Rajasthan, India Cements proposes expand its capacity in Rajasthan through the acquisition route. Along with the 1.5 MT cement plant, the company had also announced a 20 MW captive power plant within the state. For this project, Indian Cements has outlined capex of Rs 6 bn, which would be funded by a mix of debt to equity in the ratio of 50:50. The plant is expected to commence operations by FY11. It will now be set up by Indo Zinc, which owns limestone mining leases. The move is a positive one from a long term perspective as it would lead to diversification of revenues across geographies (access to Rajasthan, Madhya Pradesh and Gujarat) and provide access to secured source of the key raw material namely limestone. As India Cements raised its capital holding in the company from 13% to 53%, as per SEBI law it has come out with an open offer to acquire another 20% shares (900,000 equity shares) of Indo Zinc Ltd at a price of Rs 22.5 per share. Cement sector stocks closed firm.

Automobile sector stocks ended in the positive with the major gainers being TVS Motors, Maruti Suzuki and M&M. Maruti Suzuki announced its 1QFY10 results today. The company reported a topline growth of 34% YoY during 1QFY10. This was led by a stellar performance on the exports front which saw a volume growth of 135% YoY. The domestic volumes grew by 10% YoY. During the quarter, Maruti saw a 17% YoY growth in the A2 segment and 25% YoY increase in the A3 segment primarily driven by new launches. On the operating margin front, the company saw a marginal improvement of 0.5% YoY. While raw material costs saw an increase, staff and other expenses decreased as a percent of sales. The net profits reported a growth of 25% YoY during 1QFY10. A 39% YoY growth in operating profits coupled with lower interest costs (down 63% YoY) led to the higher profits.

Inflation numbers for the week ended 11th of July rose marginally to -1.17% during the period as compared to -1.21% a week earlier. It may be noted that this is the sixth consecutive week when the inflation rate is in the negative. For the corresponding week a year earlier inflation stood at 12.13%. The marginal rise in inflation was attributed to growth in the price of primary food articles mainly marine fish, fruits and vegetables. The rise in the price of aviation turbine fuel also contributed to the increase.

The Indian markets continued to push farther into the positive territory during the previous two hours of trade on account of sustained buying activity. Currently, stocks from metals, power and auto sectors are trading higher, while select stocks from telecom, pharma and engineering sectors are trading lower. The overall advance to decline ratio is poised at on 1.8 to 1 the BSE.

The BSE-Sensex and NSE-Nifty are trading firm, up by around 200 points and 70 points respectively. The BSE-Midcap and the BSE-Smallcap indices are also trading higher, up by around 1.7% and 1.6% respectively. The Rupee is trading at 48.46 to the Dollar.

Software stocks are trading mixed. While TCS and Tech Mahindra are trading higher, Mindtree and Financial Technologies are trading lower. Tech Mahindra announced its 1QFY10 results yesterday. The topline of the company grew by 6% QoQ in 1QFY10 led by improved volumes across business segments. Operating margins declined by 1.8% QoQ to 25.2% in 1QFY10, despite cost containment measures and appreciation of the Rupee. This was mainly on account of high base effect as margins improved significantly in the last quarter due to a policy change pertaining to employee cost. Net profits declined by 43% QoQ mainly due to significant rise in interest cost on account of interest outlay on debt raised for funding the acquisition of Satyam during the quarter. Tech Mahindra added 510 employees during the 1QFY10.

Telecom stocks are trading mixed. While Reliance Communications and Idea Cellular are trading higher, Bharti Airtel is trading lower. As per a leading business daily, Reliance Infratel, a subsidiary company of Reliance Communications (RCom) has received Rs 100 bn tower sharing contract from Etisalat Dynamix Balwas. Reliance Infratel will provide the entire tower and related infrastructure along with transmission connectivity to Etisalat for its 15 circles. It may be noted that revenues from tower sharing are considered lucrative as incremental capex on the part of the provider is minimal. Etisalat plans to roll out GSM services in 15 circles in India in next 2 years and will use around 30,000 towers of Reliance Infratel. It is estimated that this contract will generate Reliance Infratel revenues of over Rs 10 bn per year in the form of rentals, which will add to the stability of RCom's revenues.

The Indian markets pared some of their early gains during the previous two hours of trade as selling activity was witnessed at the higher levels. Currently, stocks from the metal, FMCG and IT sector are leading the pack of gainers, while select stocks from the pharma and telecom sectors are trading weak. The overall market breadth is positive, with total gainers outnumbering the losers in ratio of 1.8 to 1 on the BSE.

The BSE-Sensex and NSE-Nifty are trading firm, up by around 170 points and 60 points respectively. The BSE-Midcap and the BSE-Smallcap indices are also trading higher, up by around 1.2% and 1.1% respectively. The Rupee is trading at 48.45 to the Dollar.

Telecom major, Bharti Airtel, announced its 1QFY10 results this morning. The company reported a topline growth of around 23% YoY during the period. This growth was led by mobile service business, which grew by 19% YoY in 1QFY10. In the mobile service business, the growth was led by a strong addition to the subscriber base, while the average revenues per user (ARPU) remained under pressure. The company added 8.4 m subscribers during the quarter. At the end of the quarter, the company's subscriber base stood at 102 m. ARPU declined by 20% YoY, mainly on account of aggressive competitive pricing by new telecom players along with the existing ones. The operating margins remained stable at 40.6% during this period. Stable margins along with the higher interest income helped bottomline grow by 22% YoY. The stock is trading weak, while its peer, RCOM is in the green.

Automobile stocks are trading firm led by Tata Motors and M&M. As per a leading business daily, utility vehicle major, M&M plans to increase its rural presence in order to garner higher revenues from that market category. The company plans a rural push for its latest launch of a pickup truck - the Mahindra Bolero Maxi Truck. The company is a market leader in the pickup range with a market share of 85%, of which 80% comes from the rural markets. It may be noted that rural markets have shown resilience during the economic slowdown. The company plans to increase its reach to 600 dealers from the current 450 and it also plans to use the vast network of Mahindra Group companies in order to provide service at a range of every 50 km. During the current fiscal, the company expects the segment to grow by 15% YoY as compared to industry growth of 12% YoY.

In line with its Asian peers, the Indian markets have opened the day's proceedings on a positive note. Buying is being witnessed across sectors with metal, power and telecom stocks leading the pack of gainers. The overall advance to decline ratio stood at 6:1 on the NSE. As regards global markets, the US and the European markets ended mixed yesterday. The Asian markets are trading firm currently.

The BSE Sensex is trading higher by around 285 points. The NSE Nifty is up 80 points. The BSE Midcap and the BSE Smallcap indices are trading higher by more than 1% each. The rupee is trading at 48.42 to the dollar.

Piramal Healthcare announced its 1QFY10 results yesterday. The revenues grew by 16% YoY in 1QFY10 driven by the domestic branded formulations, pathlabs and global critical care businesses. While the domestic formulations business grew by a healthy 26% YoY, revenues from custom manufacturing fell by 16% YoY. The operating margins reduced by 1.1% to 19% due to increase in raw material costs and other expenditure (as percentage of sales). While net profits registered a growth of 25% YoY, the same was largely due to the extraordinary expenses and forex loss reported last quarter. Thus, excluding this impact, net profits declined by 15% YoY. While the performance of the custom manufacturing business has been subdued in the last three quarters, the management expects revenues to pick up in the latter half of the year. Pharma stocks are trading mixed currently.

As per a leading business daily, Tata Power has raised US$ 335 m through issue of securities in international markets. The Global Depository Receipts (GDRs) were priced at US$ 22.6 each. The company plans to use the proceeds to fund capital expenditure of its existing power plants, projects under implementation and other future projects. The company had already tied up Rs 181 bn as debt and other loans from various financial institutions. In all, Tata Power has outlined a capex of Rs 500 bn to set up additional generation capacities of around 10,500 MW over the next 5-6 years. This shall take the company's capacity to 12,861 MW by 2013, from the current levels of 2,368 MW. It is also planning to strengthen its power transmission and distribution systems in Maharashtra with an investment of over Rs 10 bn in a few years. With India facing a demand supply gap in the power sector, the expansion plans would aid the company in meeting the growing needs. The government is planning to add 68,000 MW of generation capacity over the next 5 years. However, challenges with respect to shortage of coal, implementation and execution remain. Power stocks are trading firm.

Although Indian equities had reached very attractive valuations earlier this year, no one really expected the recovery to be this strong and this quick. However, there are some who prepared for this rally and have reaped rich dividends. One of them is Sanjiv Duggal, who manages about US$ 6 bn in Indian stocks at HSBC Holdings Plc's Halbis Capital Management in London.

As per Bloomberg, Duggal's US$ 4.6 bn Indian Equity Fund, which targets overseas investors, rose a whopping 78% this year, the best-performing Indian equity fund with assets of more than US$ 500 m.

He continues to believe that the Indian economy's inherent growth potential remains intact. He expects FY10 results for India Inc. to grow by less than 10% but FY11 to witness a growth of 15% to 20%. These earnings are now made more attractive due to stability the new government will provide. As a result, as he says, "One could argue that India's trading multiple could be higher." In fact, valuations are in line with 10 year averages and lower than 5 year ones.

Also, as Mr. Ajit Dayal, Director at Quantum Advisors Pvt. Ltd. also adds - "India is neither a US (a big borrower and consumer) nor is it a China (a big producer of goods for export that created jobs and boosted China`s economic growth). So, while I remain nervous about where the world is, I continue to believe that India has a good chance of being less impacted than most other countries in the world. And while the market has reacted very negatively to the budget (silly, in my opinion) and is nervous about the monsoon (we should be), the trend of India`s GDP remains upward."

But despite all these positive vibes that emanate for India, it is pertinent that you do not lose sight of the fact that the world is still a very uncertain place to invest in. And given that, as Ajit says, "India is still hostage to flows of short term money from hedge funds," it is important that you do not give in to the greed that might lead the markets to high levels in the short term.

In such a scenario, what should you do? Invest in companies with strong business models and visionary managements, but only after you have kept aside enough cash for emergencies and to live comfortably.

Is Indian IT looking at better times?

India's four major IT companies - TCS, Infosys, Wipro, and Tech Mahindra - have already announced their June quarter results. And to say the least, the performance has been good, especially given the continued weakness in worldwide technology spending. These companies' combined sales and profits have grown by 9% YoY and 12% YoY respectively during the quarter.

BSE / NSE Market Voices 23 July 2009

Market Voices 23 July 2009

After staying at the sidelines for a couple of days, the bulls came back with a vengeance and lifted the market to a buoyant close today. Strong quarterly numbers, reasonably steady global markets and impressive infrastructure output data triggered frenzied buying across the board.

The Sensex ended the day with a huge gain of 388 points or 2.61% at 15,231. The Nifty closed at 4528.55 (provisional) with a gain of 129.65 points or 2.95%.

Realty, metal, consumer durables, FMCG and auto stocks moved up sharply. Power, pharma, IT, oil and capital goods stocks too posted strong gains. Bank stocks remained a bit subdued but rallied sharply in afternoon trade. PSU and telecom stocks too had a good outing. It was a bright session for midcap and smallcap stocks as well.

Reliance Infra gained nearly 7%. DLF, Maruti and Hindalco gained 6% - 6.75%. ACC, ITC, Sterlite, JP Associates, RComm, Tata Motors, M&M, Grasim and Tata Steel moved up by 4% - 6%. RIL, Hero Honda, L&T, HUL, Tata Power, TCS, NTPC, Infosys and Sun Pharma also ended sharply higher. Suzlon, Jindal Steel, RPower, Unitech, GAIL, Cipla, Idea Cellular, Power Grid, HCL Tech, SAIL, Axis Bank, Tata Comm, PNB, nalco and Hero Honda surged 3% - 7%. ABB, BPCL, Reliance Capital and Siemens also ended on a firm note. The market breadth was quite strong today.

DLF touched an intraday high of Rs 363 and an intraday low of Rs 349.90. At 2:29 pm, the share was quoting at Rs 363, up Rs 16.80, or 4.85%.

ITC has jumped to Rs 230, gaining over 5.5%, on strong results. The stock has further upside in the near run. Still, there may be a few rounds of profit taking before another rally at the counter. HUL, Marico, Dabur India and United Spirits are the other FMCG stocks to watch out for if one is looking at long run.

Glenmark Pharma touched an intraday high of Rs 270.80 and an intraday low of Rs 251.85. At 2:32 pm, the share was quoting at Rs 268.65, up Rs 17.95, or 7.16%.

Zee News touched an intraday high of Rs 42.60 and an intraday low of Rs 41. At 2:51 pm, the share was quoting at Rs 42.50, up Rs 1.95, or 4.81%. It was trading with volumes of 110,209 shares. Yesterday the share closed down 2.41% or Re 1 at Rs 40.55.

Impressive results from India Inc and hopes that Indian economy will start looking up soon are driving stock prices up quite sharply today. After taking a mild retreat, the bulls are back with a bang and the market is on a long trip up north this afternoon. Stocks across the board are seen firming up smartly and it now looks the market will sign off on a buoyant note today. Though a correction is not ruled out, it looks the market will not see a sustained slide in the near term.

IRB Infrastructure (Rs 182) has a near term target of Rs 215. A strong breakout there could result in a rise to Rs 260 - 275 or even higher. It is a good stock for medium to long term. One can stay invested with a trailing stop loss.

UltraTech Cement a market performer, says Amar Ambani of India Infoline on CNBC-TV18 Investors can pick up cement stocks ACC, Ultratech, India Cements, Birla Corporation and Ambuja Cements at declines. Though these stocks are likely to remain sluggish for a couple of quarters, they are bound to move up sharply over the next 12 - 18 months as demand for cement is expected to see a significant surge.

Buy Sintex India at lower level, says Amar Ambani, Vice President-Research, India Infoline on CNBC-TV18

ACC touched an intraday high of Rs 836.70 and an intraday low of Rs 811.55. At 1:42 pm, the share was quoting at Rs 831, up Rs 23.20, or 2.87%. It has announced its Q2CY09 numbers. Its net profit increased 73.54% at Rs 471 crore versus Rs 271.4 crore, YoY.

The mood remains quite upbeat on the Indian bourses today thanks to impressive results from several blue chip companies. Still, one cannot rule out a correction of sorts from current levels as global economy is still not back on track. Investors with a low appetite for risk can lighten commitments at rallies and take a call on re-entering later at dips.

Opto Circuits touched an intraday high of Rs 165.80 and an intraday low of Rs 157. At 11:32 am, the share was quoting at Rs 164, up Rs 9.30, or 6.01%.

Tech Mahindra, which fell sharply following a sharp decline in earnings, has rebounded into the positive territory now. The stock is currently up nearly a per cent at Rs 777.80. Long term investors can go in for fresh buying at declines.

FMCG major Marico Limited has reported a sharp rise in net profit. The Group has posted a net profit of Rs 559.728 million for the quarter ended June 30, 2009 as compared to Rs 462.936 million for the quarter ended June 30, 2008. Total Income has increased from Rs 5991.916 million for the quarter ended June 30, 2008 to Rs 6998.628 million for the quarter ended June 30, 2009. At Rs 88, the stock looks a good option for medium to long term. A modest exposure can be had at these levels. More can be bought at declines.

United Breweries touched an intraday high of Rs 147 and an intraday low of Rs 137.60. At 11:52 am, the share was quoting at Rs 146.25, up Rs 9.85, or 7.22%

Maruti Suzuki Ltd has posted a net profit after tax of Rs 5835.40 million for the quarter ended June 30, 2009 as compared to Rs 4658.50 million for the quarter ended June 30, 2008. Total Income has increased from Rs 50823.60 million for the quarter ended June 30, 2008 to Rs 67095.30 million for the quarter ended June 30, 2009. the stock is up 3.5% at Rs 1260.

Moser Baer can go up to Rs 100, says Ashwani Gujral, Technical Analyst, on CNBC-TV18

Kale Consultants was locked at 5% upper circuit. It touched an intraday high of Rs 44.55 and an intraday low of Rs 44.55.

KEC International Limited has won four orders totaling to Rs 471 crores in the domestic market. Two of the orders are from North East Transmission Co. Ltd., a joint venture of ONGC, IL&FS and Govt. of Tripura. The orders re for supply of towers, hardware, line materials and construction of transmission lines. The other two orders are from West Bengal State Electricity Transmission Co. Ltd., The stock is up 2.5% at Rs 435 now.

Bharti Airtel can test Rs 870: Ashwani Gujral, Technical Analyst, on CNBC-TV18

Satyam Computer has resistance at Rs 115, says Ashwani Gujral, Technical Analyst, on CNBC-TV18

Union Bank of India has reported a strong surge in revenues. The bank has posted a net profit of Rs 4421.90 million for the quarter ended June 30, 2009 as compared to Rs 2282.90 million for the quarter ended June 30, 2008. Total income has increased from Rs 27548.80 million for the quarter ended June 30, 2008 to Rs 37040.00 million for the quarter ended June 30, 2009. However, the sharp rise in NPA has pushed the stock down by over 6% now. Still, one holding the stock with a long term view can stay invested.

Dena Bank (Rs 52.75) looks good. Even for intra-day, the stock can be tried at current levels. Investors with a medium to long term plan can pick up this stock in a staggered way.

Cement space looks positive, says Nitin Rakesh, CEO, Motilal Oswal AMC, on CNBC-TV18

Biocon Limited has posted a net profit after tax of Rs 475.50 million for the quarter ended June 30, 2009 as compared to Rs 300.10 million for the quarter ended June 30, 2008. The firm's total income increased from Rs 2374.60 million for the quarter ended June 30, 2008 to Rs 2587.10 million for the quarter ended June 30, 2009. The stock is up by around 4.25% at Rs 221.30. Further upside looks likely in the near term.

Bharti Airtel (down 1.35% at Rs 811.50) is a good buy at declines. The stock is likely to remain a bit slippery despite strong results. However, one holding the stock with a long term view can stay invested for now.

The stock, which rose to Rs 990 in mid May this year, is likely to test those levels over a medium term.

Punj Lloyd: Buy above 239 for the target of 243 / 246 / lower with a stop loss of 237 , ICICI Direct

Praj Industries: Sell below 86 with a stop loss of 87 , ICICI Direct

Though the market is up sharply this morning, some profit taking is likely to set in some time during the course of the session. One looking at very short term can book partial profits in realty and capital goods stocks as they are likely to drift down a bit later on in the day. A re-entry can be made at sharp falls.

Gujarat State Petronet: Buy above 60.70 for the target of 62.20 / 63 / higher with a stop loss of 60.20

Punj Lloyd is a good stock to own. Investors holding the stock can stay invested with a stop loss near Rs 175 -180. The stock, currently trading at Rs 245 can move on to Rs 280 -290 in the short to medium run.

Moser-Baer: Buy above 82.50 for the target of 84 / 85 / higher/ with a stop loss of 81.50 , ICICI Direct

Nifty Futures: Sell below 4430 with a stop loss of 4432 , ICICI Direct

HCL Technologies (cmp Rs 224) is likely to move up further over a short run. One can stay invested in the stock with a stop loss near Rs 185 for now. Long term investors can pick up more of this stock at declines.

Sun Pharmaceutical Industries touched an intraday high of Rs 1,229 and an intraday low of Rs 1,158. At 10:14 am, the share was quoting at Rs 1,201.05, down Rs 53.6, or 4.27%. It was trading with volumes of 31,452 shares. Yesterday the share closed down 0.15% or Rs 1.85 at Rs 1,254.65.

Trading got off to a firm start on the major Indian bourses this morning on positive cues from Asian markets. The Sensex shot up to 15,098 after opening around 165 points up at 15,008.78. At present, the Sensex is up 235 points or 1.6% at 15,078 at present. The Nifty has gained 70.35 points or 1.6% at 4469.25.

Sterlite, Reliance Infra, Tata Steel, RComm, DLF, Hindalco, ICICI Bank, Hero Honda, Bharti Airtel and SBI are up by 2% - 4%.

Infosys, Wipro, TCS, Tata Motors, HDFC, L&T, Maruti, ITC, ONGC, ACC, RIL and HDFC Bank have also risen sharply.

Stocks to watch

Aventis Pharma Ltd, after the drug maker posted a market beating 13 percent rise in net profit to 471 million rupees for the quarter ended June 30.

Finolex Cables, after the electrical cable maker said net profit for the June quarter vaulted to 220 million rupees from 74.3 million a year earlier.

Companies reporting results on Thursday include -- Gujarat State Petronet, Siemens, Union Bank, Indian Bank, Mangalore Refinery, Madras Cements, Marico, United Breweries, United Phosphorus, Bata India, Century Enka, Deepak Fertilisers, Alstom Projects, Essel Propack, Nagarjuna Fertilisers, Apollo Tyres and Abhishek Industries.

RComm: Technically this stock can crash towards 254 to 250. Short on rise.

Reliance: Prefer to short considering 2000 as hurdle

SBI: Prefer to trade short at the break of 1680. In profit taking, the stock can go to test even 1600.

Brokerage Recommendations 23 July 2009

Brokerage Recommendations 23 July 2009

Buy Jindal Steel with a target of Rs 2950-3200, says Mitesh Thakkar, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 2925, up 4.9% on the BSE.

Buy IDBI with a target of Rs 140 and stop loss of Rs 90, says Hardik Jain of ISJ Securities, on CNBC Awaaz. The stock is currently trading at Rs 103, up 2.9% on the BSE.

Buy ACC with a target of Rs 975, says Mitesh Thakkar, technical analyst, on CNBC TV18. The stock is currently trading at Rs 854, up 5.8% on the BSE.

Buy Kesoram Industries with a target of Rs 415-455, says Ashwani Gujral, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 372, up 3.5% on the BSE.

It was an excellent day of trade and the market closed above crucial levels - above 15000 for Sensex and 4500 for Nifty. Sensex closed at 15247, up 404 points (provisional) and Nifty at 4528, up 129 points (provisional) from the previous close. CNX Midcap index was up 1.60% and BSE Smallcap index was up 2.20%. The market breadth was positive with advances at 946 against declines of 279 on the NSE.

Buy Maruti Suzuki with a target of Rs 1340 and stop loss of Rs 1260, says an analyst of Bonanza, on Zee Business, as closing market strategy.

Buy Praj Industries with a target of Rs 90 and stop loss of Rs 83, says Sudarshan Sukhani, technical analyst, on CNBC TV18, as closing market strategy.

Buy Sterlite Industries with a target of Rs 720 and stop loss of Rs 580, says Ashwani Gujral, technical analyst, on CNBC TV18, as closing market strategy.

Buy HUL with a target of Rs 290 and stop loss of Rs 269, says Tejas Nandu, technical analyst, on Zee Business, as closing market strategy.

Buy Reliance Infrastructure with a target of Rs 1220 and stop loss of Rs 1150, says an analyst of Trade Swift Broking, on CNBC Awaaz, as closing market strategy.

Hold Nifty long positions target of 4650 and stop loss of 4450, says Ashwani Gujral, technical analyst, on CNBC Awaaz, as closing market strategy.

Nifty has resistance at 4500 and strong support at 4200, says Hormuz Maloo of Geojit BNP Paribas, on CNBC Awaaz. Nifty has formed a base at 3900 for the long term and once it takes out 4500 it is headed for 4700, he adds.

In an F&O call, sell Nifty July futures with a target of 4300 and stop loss of 4520, says Prakash Gaba, technical analyst, on CNBC Awaaz. The market is likely to move sideways for some time, before it clearly breaks out above 4560, he says.

In an F&O call, buy Nifty July futures with a target of 4600 (book part profits)-4700 and stop loss of 4380, says Neera Jain, technical analyst, on CNBC Awaaz. The overall market is bullish, buy on every dip around Nifty 4400, she says.

In an F&O call, buy Nifty July futures with a target of 4570-4680 and stop loss of 4380, says Akshata Deshmukh, technical analyst, on CNBC Awaaz. This is a buy on dips market, she says.

In an F&O call, buy Nifty July futures with a target of 4547 and stop loss of 4450, says Amarjit Singh, technical analyst, on CNBC Awaaz. The short-term trend is up and momentum is good, market could rally in next 2-3 sessions to 4700, he says.

Buy Seamec with a target of Rs 220-240 and stop loss of Rs 145, says Hardik Jain of ISJ Securities, on CNBC Awaaz. The stock is currently trading at Rs 171, up 5.9% on the BSE.

Buy Biocon with a target of Rs 220, then it will move higher and stop loss of Rs 207, says Hormuz Maloo, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 219, up 3% on the BSE.

Buy Glenmark Pharma on dips around Rs 230 with a target of Rs 270 and once that is crossed it can go to Rs 300, says Anil Maghnani, technical analyst, on Zee Business. The stock is currently trading at Rs 264, up 5.31% on the BSE.

Buy Sterlite Industries with a target of Rs 700 and stop loss of Rs 580, says Ashwani Gujral, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 637, up 5.9% on the BSE.

Buy BEL with a target of Rs 1530-1600, says Mitesh Thakkar, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 1398, down 1.7% on the BSE.

Buy HDFC with a target of Rs 2500 and stop loss of Rs 2340, says Ashwani Gujral, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 2418, up 0.19% on the BSE.

BHEL has booked orders worth Rs 12,800 crore and revised its order book inflow to a total of Rs 55,000 crore, says K Ravi Kumar, CMD of the company, on NDTV Profit. The company expects profit growth of 30% in FY10, he adds. The stock is currently trading at Rs 2169, up 1.09% on the BSE.

Buy Voltas around Rs 139 with a short-term target of Rs 155, medium-term target of Rs 160 and stop loss of Rs 120, says Simi Bhaumik, technical analyst, on Zee Business. The stock is currently trading at Rs 137, up 1.33% on the BSE.

Siemens bags two orders worth Rs 109 crore from Power Grid, reports NDTV Profit. The stock is currently trading at Rs 469, up 1.45% on the BSE.

Buy Indiabulls Real Estate with a target of Rs 250 and stop loss of Rs 221, says Mitesh Thakkar, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 228, up 2.84% on the BSE.Indiabulls Real Estate

Asian markets end quiet while European markets opened soft. Our market is looking good. Sensex is trading at 15093, up 250 points and Nifty is at 4480, up 81 points from the previous close. CNX Midcap index is up 0.91% and BSE Smallcap index is up 1.61%. The market breadth is positive with advances at 895 against declines of 330 on the NSE.

Sell Suzlon with a target of Rs 81 and stop loss of Rs 93.50, says Amarjeet Singh, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 92, up 1.92% on the BSE.

Hold Bharti Airtel with target of Rs 1000-1100, says Hormuz Maloo, technical analyst with Geojit Financial Services, on NDTV Profit. It has support at Rs 750, he adds. The stock is currently trading at Rs 809.55, down 1.6% on the BSE.

Buy Bharti Airtel at Rs 750 with target of Rs 865, says Ashwani Gujral, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 808.15, down 1.8% on the BSE.

Book profits in Maruti and re-enter on 15% correction in stock price, says Rajesh Agarwal of CD Equisearch on CNBC Awaaz. The stock is currently trading at Rs 1234, up 1.4% on the BSE.

Hold JP Hydro with stop loss below Rs 70, says Simi Bhaumik, technical analyst, on Zee Business. It has resistance at Rs 85 crossing which it can go to Rs 95-100, she adds. The stock is currently trading at Rs 81.20, up 2% on the BSE.

Hold ONGC with target of Rs 1150, says Prakash Gaba, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 1093.90, up 0.1% on the BSE.

Exit MindTree which has broken its support level of Rs 490, says PK Agarwal of Purpleline Investment on Zee Business. The stock is currently trading at Rs 458, down 3% on the BSE.

WPI for all commodities is up 0.1% at 236.7(WoW), reports NDTV Profit. Primary Articles Index is up 0.7%, Manufactured Products Index is down 0.1% and Fuel Group prices are up 0.1%(WoW), it adds. » Send to friends

The inflation figure for week ended July 11 has been announced at -1.17% versus the earlier figure of -1.21% for week ended July 4, reports NDTV Profit.

Hold Videocon Industries with stop loss of Rs 150, says Simi Bhaumik, technical analyst, on Zee Business. It has resistance at Rs 180 crossing which it can go to Rs 195-200, she adds. The stock is currently trading at Rs 171.40, up 1.3% on the BSE.

Buy Sterlite Industries with target of Rs 700, says Ashwani Gujral, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 580, he adds. The stock is currently trading at Rs 629.75, up 4.7% on the BSE.

Book profits in ITC at Rs 234, says Prakash Gaba, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 225, up 3.3% on the BSE.

Buy Siemens only if it crosses Rs 500 level, says Sudarshan Sukhani, technical analyst, on CNBC Awaaz. After crossing this it will make new highs, he adds. The stock is currently trading at Rs 473, up 2.3% on the BSE.

Hold Aban Offshore with stop loss of Rs 836, says Simi Bhaumik, technical analyst, on Zee Business. It has resistance at Rs 950 crossing which it can go to Rs 1150, she adds. The stock is currently trading at Rs 930.20, up 4.2% on the BSE.

Hold Reliance Capital with stop loss of Rs 800, says PK Agarwal of Purpleline Investment on Zee Business. It is trading in a range of Rs 800-1000, he adds. The stock is currently trading at Rs 885, up 2% on the BSE.

Hold Satyam with target of Rs 115, says Ashwani Gujral, technical analyst, on CNBC Awaaz. It is in a long-term uptrend now, he adds. The stock is currently trading at Rs 95.10, up 4.3% on the BSE.

Hold India Cements with stop loss below Rs 125, says Simi Bhaumik, technical analyst, on Zee Business. It has resistance at Rs 155 crossing which it can go to Rs 180, she adds. The stock is currently trading at Rs 139.40, up 0.1% on the BSE.

Buy GSPL both for short and long-term term investment, says VK Sharma of Anagram Stock Broking on CNBC TV18. The stock is currently trading at Rs 63.60, up 3.9% on the BSE.

Hold Deccan Chronicle with target of Rs 120, says Prakash Gaba, technical analyst, on CNBC Awaaz. It has resistance at Rs 95 and support at Rs 80, he adds. The stock is currently trading at Rs 88.40, down 1.6% on the BSE.

Hold Moser Baer with target of Rs 100, says Ashwani Gujral, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 85, up 4.2% on the BSE.

Hold Punj Lloyd with targets of Rs 260 and then 290, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 220, she adds. The stock is currently trading at Rs 247.05, up 3.3% on the BSE.

Buy HCL Technologies with target of Rs 236, says Ashwani Gujral, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 206, he adds. The stock is currently trading at Rs 224.45, up 3.4% on the BSE.

Buy FDC with intra-day target of Rs 46, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 41, he adds. The stock is currently trading at Rs 43.30, up 3.6% on the BSE.

Buy Indiabulls Securities with intra-day target of Rs 46, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 41.50, he adds.

Sell LIC Housing Finance at Rs 592 with target of Rs 578, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 603, she adds.

Sell Cairn India at Rs 237 with target of Rs 230, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 241, she adds.

BSE / NSE Indian Stock Markets Report 22 July 2009

Market Report 22 July 2009

The key benchmark indices dropped, reversing intraday 2% gains, as investors booked profits after recent sharp rally. The BSE 30-share Sensex fell 219.37 points or 1.46%, off close to 495 points from the day's high and up close to 55 points from the day's low. Index heavyweight Reliance Industries (RIL) slipped. Capital goods, power, IT stocks fell.

The barometer index BSE Sensex fell below the psychological 15,000 mark. Weak European markets and lower US index futures soured sentiment. The market breadth was negative compared to a strong breadth earlier in the day. Concerns over the progress of India's annual monsoon triggered profit taking after a recent strong rally in share prices.

India's largest power equipment maker by sales Bharat Heavy Electricals and India's largest dedicated housing finance company by sales, HDFC dropped despite good Q1 results announced during trading hours. India's largest oil exploration firm by revenue ONGC rose ahead of its Q1 June 2009 results tomorrow, 23 July 2009.

The market was volatile. The market surged in early trade tracking firm global stocks. Reports that the government can fetch a large sum from divestment this year also aided the surge in equities. The market extended gains in morning trade with the barometer index BSE Sensex hitting its highest level in more than a month. The market pared gains in early afternoon trade. The Sensex slipped into the red and fell below the psychological 15,000 mark later as lower European stocks and fall in US index futures soured sentiment. The market cut losses in mid-afternoon trade.

The BSE Sensex has lost 347.89 points or 2.29% in the last two trading sessions. Before the two-day slide, the the market had surged on the back of good initial batch of Q1 June 2009 results. From a 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.

The Sensex is up 5,195.81 points or 53.85% in calendar year 2009 as on 22 July 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 6,682.72 points or 81.89% as on 22 July 2009.

The Q1 June 2009 results announced so far have encouraging, with lower costs helping bottomline growth. The combined net profit of 283 companies rose 52.1% Rs 15,199 crore on 11.7% growth in sales to Rs 1,13,379 crore in Q1 June 2009 over Q1 June 2008.

New flow on divestment may keep market firm in the coming months. The steel ministry has reportedly initiated steps to sell small stakes in profit-making state-run firms Manganese Ore India (MOIL) and NMDC (formerly National Mineral Development Corporation), which it estimates could fetch up to Rs 25,000 crore. While the ministry has cleared a proposal to divest 10% in unlisted MOIL through an initial public offering (IPO), a proposal to divest 8-20% stake in listed NMDC is under its active consideration, report said.

The Union Budget, presented by finance minister Pranab Mukherjee on 6 July 2009, refrained from making any major commitment and proposed a modest disinvestment target of Rs 1,120 crore for the current financial year, although the government clarified later that there could be more sell-off proposals later in the year.

But weak rains is a cause for concern. The likely emergence of El Nino, the name given to the warming of the Pacific Ocean and which often influences the Indian monsoon adversely, coupled with the failure of the monsoon to gather momentum in the key north-western agricultural belt, has added to the worry. Under the circumstances, the assertion by the India Meteorological Department (IMD) that much of the rain deficit in June will be made up in July (which is mostly over) and August has fetched little results.

More than two-thirds of the people live in villages and 60 % of the farm land depends on the annual rains. While some sense an imminent drought, resulting in a poor kharif harvest, the agriculture ministry still hopes that agricultural production will be in the normal range. The Finance Ministry is worried, as a drought is the last thing it would like to cope with during an economic downturn.

Meanwhile, Junior trade minister Jyotiraditya Scindia said today that India is unlikely to meet $200 billion export target for FY 2010. He said shrinking global demand is affecting textile, leather, gems and jewellery exports.

India's direct tax receipts in Q1 June 2009 rose 3.65% to Rs 59,465 crore. Corporate tax receipts in the same period rose 3.31% to Rs 35,709 crore an official of the Central Board of Direct Taxes said. Income tax receipts were up 4.38 % to Rs 24,564 crore.

European shares fell in choppy trade on Wednesday, ending a seven-day winning run as profit taking emerged after recent surge. Analysts cautioned about earnings expectations. The key benchmark indices in Germany, UK and France were down by between 0.09% to 0.18%.

Asian stocks rose today led by material producers and electronics makers, amid mounting speculation a global recovery will boost earnings. Key benchmark indices in China, South Korea, Hong Kong, Japan, and Taiwan rose by between 0.34% to 2.6%. The key benchmark indices in Hong Kong and Singapore were down by between 0.14% to 1.3%.

Trading in the US index futures indicated Dow could fall 41 points at the opening bell today, 22 July 2009.

US markets ended with modest gains after a late rally on Tuesday, 21 July 2009. The Dow gained 67.79 points, or 0.8%, to 8,915.94. The S&P 500 index rose 3.45 points, or 0.4%, to 954.58. The Nasdaq rose 6.91 points, or 0.4%, to 1,916.20. In key corporate earnings after the bell, Apple posted a quarterly profit way past Wall Street forecasts on strong sales of MAC computers and improved margins. The popular search engine, Yahoo's second-quarter profit rose 8% boosted by the company's cost-cutting measures.

The BSE 30-share Sensex was down 219.37 points or 1.46% at 14,843.12. At the day's high of 15,369.42, Sensex rose 306.93 points in mid-morning trade, its highest level since 12 June 2009. At the day's low of 14,786.58, the Sensex fell 275.91 points in late trade.

The S&P CNX Nifty was down 70.20 points or 1.57% to 4,398.90. Nifty July 2009 futures were at 4413.15, at a premium of 14.25 points as compared to the spot closing of 4398.90. Turnover in NSE's futures & options (F&O) segment spurted to Rs 91,641.08 crore from Rs 65,459.06 crore on Tuesday, 21 July 2009.

BSE clocked a turnover of Rs 6,643 crore, higher than Rs 6,215.28 crore on Tuesday, 21 July 2009.

The market breadth, indicating the overall health of the market turned negative from strong breadth earlier in the day. On BSE, 1,227 shares rose as compared with 1373 that fell. A total of 98 shares remained unchanged. From the 30 shares Sensex pack, 26 fell and rest rose.

The BSE Mid-Cap index was down 0.97% and the BSE Small-Cap index was down 0.35%. Both the indices outperformed the Sensex.

All the sectoral indices on BSE were in red. The BSE PSU index (down 0.08%), the BSE Realty index (down 0.24%), the BSE Consumer Durables index (down 0.44%), the BSE FMCG index (down 0.65%), the BSE Oil & Gas index (down 0.75%), the BSE Bankex (down 1.23%), the BSE Healthcare index (down 1.3%), outperformed the Sensex.

The BSE Capital Goods index (down 1.87%), the BSE Auto index (down 1.61%), the BSE Power index (down 1.6%), the BSE IT index (down 1.6%), the BSE TECk index (down 1.54%), the BSE Metal index (down 1.45%), underperformed the Sensex.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) fell 1.99% to Rs 1,977.30. The stock came off the day's high of Rs 2,056.30. The Supreme Court on Monday, 20 July 2009, asked the energy giant and former group firm Reliance Natural Resources (RNRL) why a gas pact between the two should not be cancelled. 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.

India's largest oil exploration firm by revenue ONGC rose 4.6% ahead of its Q1 June 2009 results on 23 July 2009. Recent reports suggested ONGC has hired Citigroup to advise it on a bid for Kosmos Energy's stake in an oil field in Ghana in a deal that could be worth between $3 billion and $5 billion.

India's largest dedicated housing finance company by sales, HDFC fell 4.43% even as net profit rose 20.68% to Rs 564.92 crore on 22.86% rise total income to Rs 2,849.07 crore in Q1 June 2009 over Q1 June 2008. The lender announced its result during late trade today.

HDFC has reportedly cut lending rates for new customers by 25-50 basis points. The financial institution has restructured its loan baskets to create a new product where loans up to Rs 15 lakh are available at 8.75% as against 9.25% earlier.

India's largest electric equipment maker by sales Bharat Heavy Electricals (BHEL) fell 2.89% even as net profit rose 22.41% to Rs 470.59 crore on 27.64% rise in total income to Rs 5,898.51 crore in Q1 June 2009 over Q1 June 2008. Bhel outstanding order book stood at Rs 1,24,000 crore. The company announced the result during market hours today.

India's largest engineering and construction firm by sales Larsen & Toubro (L&T) fell 1.63%. 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, Thermax, Siemens, ABB, Crompton Greaves, fell by between 0.23% to 5.41%.

Some cement stocks fell on profit taking after a recent rally triggered by a thrust on infrastructure sector in the Union budget 2009-2010. Ultratech Cement fell 3.28% even as 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. The company announced the results during trading hours on Tuesday

ACC and Grasim Industries fell by between 2.02% to 3.32%.

Construction stocks too fell. Era Infra Engineering, Hindustan Construction Company, IVRCL Infrastructure & Projects, JP Associates fell by between 0.11% to 4.29%.

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.

IT stocks fell on profit taking reversing early gains triggered by better-than-expected Q1 June 2009 result by India's third largest IT exporter by sales Wipro. Wipro fell 1.52%. Wipro's consolidated net profit as per Indian accounting rules rose 0.54% to Rs 1015.50 crore on 2.5% fall in sales to Rs 6289.10 crore in Q1 June 2009 over Q4 March 2009. The company announced the results before trading hours today.

Wipro expects 0.91% to 1.9% growth in consolidated revenue from IT Services at between $1035 million to $1053 million in Q2 September 2009 over Q1 June 2009. The guidance is based on constant currency exchange rates. Its American depository receipt (ADR) fell 1.17% on Tuesday, 21 July 2009.

India's largest IT exporter by sales TCS fell 2.42%. 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. The company announced the result after trading hours on Friday, 17 July 2009.

India's largest IT firm by sales Infosys fell 1.23%. The government has launched a Government-to-Business (G2B) services e-biz project with Infosys as the technology partner. The project is among the 27 Central, State and Integrated Mission Mode Projects (MMPs) under the National E-Governance Plan (NEGP).

Power stocks reversed early gains triggered by strong response to Tata Power Company's global depository receipts. Tata Power Company fell 0.75% to Rs 1,120.40. The stock was volatile. It hit a high of Rs 1,160 and low of Rs 1,115. Tata Power Company during trading hours today, 22 July 2009, said it has raised $335 million from an issue of global depository receipts (GDR). The company said a strong investor responce enbale the company to raise GDR issue size to $335 million from $250 million.

Other power stocks, Reliance Power, Reliance Infrastructure, Power Grid Corporation of India, fell by between 1.18% to 3.36%.

Bank stocks fell on profit taking reversing intraday gains. 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 1.44% to Rs 760.85 as its American depository receipt (ADR) fell 2.16% overnight. The stock came off the day's high of Rs 807.

India's biggest bank in terms of branch network State Bank of India (SBI) fell 0.87%. Finance secretary Ashok Chawla said the Centre will seek Cabinet approval to dilute government stake in the state-run bank.

India's second largest private sector bank in terms of operating income HDFC Bank fell 1.08% as its ADR fell 0.72% 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.

FMCG firms fell on concerns over the India's annual monsoon. FMCG firms derive substantial revenue from rural sector. ITC, Hindustan Unilever, REI Agro and United Spirits fell by between 0.3% to 5.36%.

Some realty stocks rose on government's thrust on the housing sector in the Budget. Housing Development & Infrastructure, Omaxe, DLF, Sobha Developers rose by between 0.27% to 3.58%.

Select auto shares slipped on profit taking. India's largest commercial vehicle maker by sales Tata Motor fell 0.79%. India's largest tractor maker by sales Mahindra & Mahindra fell 1.43%. India's largest small car maker by sales Maruti Suzuki India fell 1.83% ahead of its Q1 June 2009 result tomorrow, 23 Jul y 2009.

Unitech clocked the highest volume of 2.38 crore shares on BSE. Cals Refineries (2.19 crore shares), Mahindra Satyam (2.17 crore shares), Suzlon Energy (1.97 crore shares) and Ispat Industries (1.6 crore shares) were the other volume toppers in that order.

Tata Steel clocked the highest turnover of Rs 237.15 crore on BSE. ICICI Bank (Rs 220.23 crore), Reliance Capital (Rs 219.15 crore), DLF (Rs 214.72 crore) and Housing Development & Infrastructure (Rs 205.08 crore) were the other turnover toppers in that order.