BSE NSE Weekly Review 18 Dec 09

Sensex lost 2.3% to end at 17,720 while the Nifty fell 2.5% to shut shop at 4,988. Bears seem to tighten their grip over the Indian bourses, which was otherwise quite lackluster. The Nifty lost nearly 4% from its 52-week high, which it rose to during the previous week. Murky economic outlook, worry of soaring food prices and possible interest rates hike continued to weigh upon the sentiment. For the week, the BSE Sensex lost 2.3% to end at 17,720 while the NSE Nifty fell 2.5% to shut shop at 4,988. The BSE Sensex hit an intra-week high of 17,275 and low of 16,899 while the NSE Nifty hit an intra-week high of 5,156 and low of 4,979 The top gainers: The top gainers in the Sensex were Ranbaxy Labs (up 6.5%), ACC (up 5.5%), Cipla (up 4.7%), Wipro (up 4.7%) and Tata Motors (up 3.1%). The Top Losers: The top losers in the Sensex were HDFC Bank (down 6.8%), DLF (down 6.7%), ICICI Bank (down 6.4%), Reliance Industries (down 5.9%) and SBI (down 5.3%). The BSE IT Index (up 3%): The top gainer in the IT sector was HCL Tech. The stock rose over 5% during the week. A report released by IIFL during the week stated that, “HCL Tech’s US$ organic revenue growth in 2QFY10 was ~10ppt higher than that of its peers Infosys, TCS and Wipro, thanks to its aggressiveness in bidding for new deals in a tight demand environment. Margins, on the other hand, have been under pressure because of acquisitions, a struggling BPO business and deal ramp ups. However, we see relatively better margin tailwinds as large deal rampups stabilise and integration synergies come to the fore. Also, after a year of volatile hedging, the company’s new forex policy indicates stability. Valuations are at ~30% to 45% discount to peers against the historical average of ~17% to 25%. We upgrade our recommendation to ADD”. Wipro surged over 4.5% during the week after reports stated that the company entered into a partnership for an out-tasking of testing services with Telefonica, Germany. TCS gained 3% during the week. According to reports, the company has emerged as the sole bidder for the modernisation and outsourcing contract of UK government’s pension body. Sasken Communication (up 4.7%) and Mphasis (up 4%) were among the other notable gainers. The top losers were Mahindra Satyam (down 9.1%) and Financial Tech (down 3.3%). The BSE Consumer Index: The top losers in the Consumer Durables space were Samtel Color (down 7%), Su-Raj Diamonds (down 3.5%), Whirlpool (down 2.4%), Blue Star (down 2.2%) and Videocon Industries (down 0.6%). The BSE Healthcare Index (up 3.8%): The top gainer in the Pharma space was Dr Reddy's Labs. The stock rose over 9%. The company launched omeprazole, a generic version of AstraZeneca's Prilosec, in the United States. Ranbaxy Labs advanced 6.5% during the week. The company reportedly sold as many as 5 lakh shares of Orchid Chemicals through a bulk deal on Tuesday, well before the latter announced the sale of its generic injectables business to US firm Hospira. Lupin (up 5%), Cipla (up 4.7%) and Sun Pharma (up 4.3%) were among the other major gainers. The top losers were Marksans Pharma (down 4.6%), Astrazeneca Pharma (down 3.3%), Torrent Pharma (down 2.8%) and Pfizer (down 2.3%). Wockhardt shares fell 3.3% during the week. According to reports the tie-up between Kamineni Hospital and the company to run two hospitals seems to be heading for a split. Piramal Healthcare ended lower by 0.6% during the week. A report released by IIFL during the week stated that, “Piramal Healthcare, being one of the largest players open to inorganic growth, would be one of the prime beneficiaries from potential consolidation in the fragmented domestic pharma market. With problems in the CRAMS business easing off, we expect stable growth ahead. The global critical-care business, expanded through recent acquisitions, is strategically well-positioned to take off over the next 3-6 quarters, with increasing market share in existing markets and launches in new markets. The pathology laboratories business is a less well-known growth driver for the medium to long term. We initiate coverage on Piramal Healthcare with BUY rating and price target of Rs492”. The BSE Banking Index (down 5.6%): Disappointing advance tax numbers by banking heavyweights like ICICI Bank and SBI dampened the sentiment; both the stocks fell 2% and 1.6% respectively. The top losers in the banking space were Andhra Bank (down 10%), Allahabad Bank (down 8.2%), Bank of India (down 7.1%), Axis Bank (down 6.9%) and HDFC Bank (down 6.8%). The BSE Auto Index (up 0.2%): The top losers in the auto space were Ashok Leyland (down 4.8%), Maruti Suzuki (down 2.7%), Swaraj Mazda (down 2.4%), Hindustan Motors (down 2%) and Bajaj Auto (down 1.2%). The top gainers in the auto space were Tata Motors (up 3.1%), M&M (up 2.4%) and Hero Honda (up 0.2%). A report released by IIFL during the week stated that, “Most automakers’ margins peaked in 2QFY09. Going forward, increase in commodity prices will put pressure on margins. Furthermore, these cost increases will be difficult to pass on to customers, given: 1) the imminent increase in excise duty rates; and 2) the inevitable increase in costs due to adoption of new emission standards (two-wheelers are already compliant with the most stringent emission norms). On the other hand, a preliminary analysis of the GST code suggests that its adoption could offer auto companies some margin respite. As changes in excise duty and emission norms do not affect prices of tractors, Mahindra & Mahindra (M&M) is the best-placed in this respect. CV companies have already increased prices by ~6% in the past 12 months and hence could find it difficult to raise prices further. We continue to prefer consumption-led stories on the rural side—Hero Honda and Bajaj Auto”. The BSE Oil & Gas Index (down 4.1%): The top losers in the oil & gas space were IOC (down 7.2%), Reliance Industries (down 5.9%), HPCL (down 4.7%), BPCL (down 4.3%) and Jindal Drilling (down 2.1%). The top gainers in the oil & gas space were Gujarat NRE Coke (up 9.1%) and Essar Oil (up 0.4%). The BSE Capital Goods Index (down 1.4%): The top losers in the Capital Goods were Esab India (down 6.5%), Aban Offshore (down 5.4%), Astra Microwave (down 4.8%), Alfa Laval India (down 4.5%) and Alstom Projects (down 3.7%). The top gainers in the Capital Goods space were HEG (up 18.8%), Greaves Cotton (up 12.8%), Ingersoll Rand (up 10.6%), Jyoti Structures (up 5.5%) and Lakshmi Machine (up 2.7%). The Cement Sector: The top gainers in the cement sector were Mangalam Cement (up 15.5%), ACC (up 5.5%), Ultratech Cement (up 4.5%), Dalmia Cement (up 4.2%) and Gujarat Sidhee (up 1.5%). According to a report released by IIFL during the week, “All-India despatches increased 8.8% YoY in November 2009 (YTD growth at 10.7%). • Central region recorded 17% YoY despatch growth, with a rebound in infrastructure spends. South continues to lag. • All-India capacity utilisation declined 230bps YoY to 81%, primarily on account of sharp increase in capacities in the south. • We continue to be negative on south-based companies and positive on north-based companies.” The Telecom Sector: The top losers in the telecom space were Shyam Telecom (down 8.2%), RCom (down 6.3%), Gemini Comm (down 5.9%), Himachal Futuristic (down 5.4%) and MTNL (down 4.9%). Bharti Airtel lost 4.1% during the week. The company is reportedly looking to acquire a controlling stake in phone operator Warid Telecom, Bangladesh. The Realty Sector (down 5.5%): The top losers in the Realty index were Unitech (down 7.4%), DLF (down 6.7%), Mahindra Lifespace (down 6.4%), Ansal Props (down 5.4%) and Omaxe (down 4.2%). The Metals sector (down 1.2%): The top losers were Jindal Steel (down 5%), Lloyds Metals (down 4.1%), Bhuwalka Steel (down 3.5%), Ispat Industries (down 3%) and Tata Metaliks (down 1.4%). The top gainers were Tata Sponge (up 5.4%), Tata Steel (up 3.1%), SAIL (up 1%) and Sunflag Iron (up 1%). Bhushan Steel added 1% during the week. The company is reportedly planning to increase prices of its products by up to Rs1,500 a ton next month. Source IIFL Bought to you by Ingenious Investor Equity Research Division Ravina Consulting No.429 Mahavir Tuscan Near Hoodi Circle, Whitefield Mahadevapura Post BANGALORE 560048 Read - www.ingeniousinvestor.blogspot.com Follow us - www.twitter.com/smartinvestor

BSE, NSE and sectoral review 23-27 Nov 09

Once considered the magnet for international investment, Dubai is now repelling bulls world over. The debt problems in Dubai are having a cascading effect as panic sets in amongst most markets. The markets were waiting for an excuse to move up or down; and the Dubai default fear gave the bears reason to step in. Weak rollover in the December series also restricted markets from breaching its previous high. Finally, the BSE benchmark Sensex lost 2.3% to close at 16,632 while NSE Nifty ended the week down 2.2% to shut shop at 4,942. Sensex intra-week high of 17,290 and low of 16,210 Nifty intra-week high of 5,138 and low of 4,807 The Foreign Institutional Investors (FIIs) sold shares worth Rs1.6bn during the week. The Domestic Institutions were net sellers to the tune of Rs2.98bn during the week. The top gainers: The largest gainers in Sensex were Ranbaxy Labs Ltd (up 3.4%), Bharti Airtel (up 1.1%), Cipla Ltd (up 0.8%), Reliance Infrast (up 0.7%), Reliance Capital (up 0.5%), The Top Losers: The largest losers in Sensex were Ambuja Cements L (down 2.8%), Infosys Tech Ltd (down 2.7%), Larsen & Toubro (down 2.6%), Tata Consultancy (down 2.5%), ITC Ltd (down 1.9%), The BSE IT Index (down 3.8): The largest gainers in IT were HCL Tech Ltd (up 1.5%), Patni Computer (up 0.3%). The largest losers in IT were Satyam Computer (down 13.5%), Financial Techno (down 8.7%), Sasken Communica (down 5.8%), Mphasis Bfl Ltd (down 5.2%), Wipro Ltd (down 4.1%), The BSE Consumer Index: The largest losers in Consumer Durables were Mirc Electronics (down 10%), Su-Raj Diamonds (down 6%), Titan Inds Ltd (down 5.8%), Whirlpool (down 0.7%). The BSE Healthcare Index (up 0.9 %): The largest gainers in Pharma were Aurobindo Pharma (up 9.4%), Strides Arcolab (up 9.3%), Panacea Biotec (up 8.2%), Orchid Chem (up 5.4%), Ranbaxy Labs Ltd (up 5.1%). The largest losers in Pharma were Natco Pharma Ltd (down 5.8%), Suven Life Science (down 5.7%), Glenmark Pharma (down 4.9%), Astrazeneca Pharma (down 4.6%), The BSE Banking Index (down 3.2%): The gainer in Banking was Canara Bank (up 3.6%). The largest losers in were Andhra Bank (down 5.4%), ICICI Bank Ltd (down 5.1%), Karnataka Bank Ltd (down 5.1%), Oriental Bank Of Commerce (down 4.5%), Yes Bank Ltd (down 4.1%), HDFC Bank Ltd (0.2%), Punjab National Bank Ltd (0.5%), Union Bank Of India (up 0.8%), Indian Overseas Bank (1.4%), Private banking stocks declined sharply despite of reports stating government’s plan to move a bill early next year to amend a banking law for allowing foreign investors in private banks to have voting rights in proportion to their shareholdings. The BSE Auto Index (up 0.3%): The largest gainers in Auto were Hero Honda Motor (up 5.8%), Swaraj Mazda Ltd (up 5.5%), Bajaj Auto Ltd (up 5.1%), Maruti Suzuki In (up 1.6%). The largest losers in were Hindustan Motors (down 9.4%), Eicher Motors (down 7.1%), Ashok Leyland (down 5.1%), M&M (down 2%), Tata Motors Ltd (down 2%), The BSE Oil & Gas Index (down 0.5%): The largest gainers in oil & gas space were Bharat Petrol (up 11.7%), Gujarat Nre Coke (up 5.1%), Hindustan Petro (up 3.5%), GSPL (up 2.5%), Shiv-Vani Oil & (up 2.1%), The largest losers in oil & gas space were Hindustan Oil Exp (down 8.8%), Jindal Drilling (down 7.6%), Essar Oil Ltd (down 6.5%), Cairn India (down 5.1%), Mangalore Refine (down 3.8%), The BSE Capital Goods Index (down 2.3%): The largest gainers in Capital Goods were Bharat Electron (up 12.5%), Heg Ltd (up 7.4%), Lakshmi Machine (up 7.3%), Areva T&D India (up 3.7%), Carborundum Univ (up 3.2%), The largest losers in Capital Goods were Aban Offshore (down 9.9%), Astra Microwave (down 9.7%), Siemens India (down 7.4%), Gammon India Ltd (down 6.1%), Ingersoll Rand (down 4.9%), The Cement Sector: The largest gainers in Cement were Binani Indus Ltd (up 16.3%), India Cements (up 7.9%), Madras Cements (up 6.4%), Birla Corp Ltd (up 5.1%), Shree Cement (up 4.5%), The largest losers in Cement were Gujarat Sidhee (down 3%), Dalmia Cement (down 0.1%), Kakatiya Cement (down -0.5%), Mangalam Cement (down -0.5%), Jk Cements Ltd (down -1.1%), The Telecom Sector: The largest gainers in Telecom was Tata Communicati (up 5.9%). The largest losers in Telecom were Wire And Wireles (down 7.8%), Gemini Comm Ltd (down 7.5%), Himachal Futuris (down 6.2%), Reliance Com Ltd (down 4.2%), Idea Cellular (down 4.1%). The Sugar Sector: The largest gainers in the sector were Km Sugar Mills (up 11%), Simbhaoli Sugar (up -3.5%). The largest losers in the sector were Ravalgaon Sugar (down 13.7%), Simbhaoli Sugar (down 5.3%), Mawana Sugar (down 3.3%). The Realty Sector (down 6.3%): The largest losers in Real Estate were Anant Raj Indus (down 11.1%), Mahindra Lifespa (down 9.8%), Housing Developm (down 8.8%), Parsvnath Devel (down 7%), Dlf Limited (down 6.5%), The Metals sector (up 7.1%): The largest gainers in Metal were Tata Sponge Iron (up 4.2%), Monnet Ispat (up 1.7%). The largest losers in Metal were Ispat Industries (down 7.7%), Adhunik Metaliks (down 6.7%), Jindal Steel & P (down 6.6%), Bhuwalka Steel (down 6.5%), Lloyds Metals (down 5.1%), Source : IIFL Bought to you by Ingenious Investor Equity Research Division Ravina Consulting No.429 Mahavir Tuscan Near Hoodi Circle, Whitefield Mahadevapura Post BANGALORE 560048 Read - www.ingeniousinvestor.blogspot.com Follow us - www.twitter.com/smartinvestor

Market Analysis 30 Nov 09

Rattled by Dubai’s debt crisis, stock markets slumped on fears that although the major central banks have stabilised the financial system, some of the ‘excesses’ simply refuse to disappear and may disrupt the system again. Erasing most gains of three-week rally, the benchmark indices fell by more than two per cent during the week ended. On the BSE, the Sensex fell by 390 points to end at 16,632 and the Nifty on the NSE shed 110 points to close at 4,942. However, the bounce back from intra-day lows on Friday reflects the bullish undertone and resilience of the markets. Fears over tax on capital inflows and withdrawal of stimulus packages have been allayed by the finance minister, but the impact of rising food inflation is a cause of concern. Dubai’s effort to reschedule its debt is a sign that government spending alone won’t be enough to protect markets. Differentiation between riskier and less risky asset classes in which correlatio-ns have risen, making it difficult to make money simply by riding the liquidity wave from central banks. Stock volatility will jump sharply as countries and companies default on loans. Markets still look bullish with the government giving big push to the reform agenda but the rise in risk aversion is likely and investors have to start focusing even more on the fundamentals. For the week ahead, chartists predict a trading range of 16,250 and 17,100 for the Sensex and 4,800 and 5,120 for the Nifty. Crucial supports for the indices are last week lows at 16,210 and 4,806. Traders fear that below the-se levels, indices might test lows of November series. Immediate resistances for the indices are at 16,880 and 17,100 and 4,980 and 5,060. Be bearish only below 4,850-level on closing basis. Whatever is hard to do in the market is generally the right thing; and whatever is easy is usually the wrong thing to do. Futures & Options Despite hyper volatility and wild swings of November series, the rollover of positions to the December series was in line with last three months average at 84 per cent. However, stock futures witnessed a lower rollover reflecting the lack of confidence among the market players over the near term direction of many individual stocks. Option activity indicates a strong support for Nifty at 4,800-4,850 level and strong resistance at 5,050-5,100 level. Adopt strangle strategy in index options by buying Nifty4,900 strike put and Nifty5,000 strike call options, to take advantage of directional change in the markets. Sectors that witnessed higher rollover are metal, banking, telecom, engineering, sugar and power. Stock futures looking good for further gains are Ranbaxy, BEL, Lupin, PFC, India Cement, BPCL, JP Hydro, Neyveli and GAIL. Among the momentum pack, Educomp, IFCI, Suzlon, Unitech and Hotel Leela may rally further from the current levels. Punters predict some speculative activity in the ADAG group. Buy Reliance Infra and Reliance Capital keeping last week lows as stop loss for sharp returns. Lower crude prices may trigger further buying in PSU refiners. Pharma stocks are attracting buying on every dip. Buy on declines Dr Reddy, Ranbaxy, Cipla, Aurobindo, Biocon and Lupin. Corrections in banking and auto stocks are likely to be short lived ones. Buy state owned banks as rise in interest rates to curb inflation is expected in next couple of quarters. Use sharp declines to accumulate stocks in auto and auto ancillary sectors. Stock scan Jain Irrigation Systems, a company synonymous for drip irrigation equipment, has over the years emerged as a diversified multi-product agri company. It is the largest manufacturer of polyethylene pipes and also the largest manufacturer of Tissue Culture Banana Plants in India. It has world class food processing facilities for dehydration of onions, vegetables and production of fruit purees, concentrates and pulp. IFC, a affiliate of World Bank has picked up stake in the company. Buy at current levels for a target price of Rs 1200 in the next few months. Volumes have improved remarkably in HBL Power after the stock has gone ex-split. The company is a pioneer in the design, development and manufacture of specialised batteries, DC systems and associated electronics. It supplies to aviation, defence, railways, telecom and other engineering industries. Buy HBL Power at current levels for price target of Rs 100 in medium term. Cravatex is one of the largest manufacturers of sports and casual wear for leading companies like FILA and Slazenger. The company represents several reputed international brands of fitness equipment in India and offers a range of advanced international beauty therapies catering the new quest for fitness, exercise, health and beauty. Buy this only ISO-certified and listed company in the sector for unexpected a price target of Rs 275 in the medium term. C. Kutumba Rao is a Hyderabad-based stock market analyst. The views expressed and the recommendations made are those of the author. Readers are strongly recommended to consult their financial advisors before making any financial investments. This newspaper is not liable for investment decisions made on the basis of recommendations in these columns. Source : deccan.com Bought to you by Ingenious Investor Equity Research Division Ravina Consulting No.429 Mahavir Tuscan Near Hoodi Circle, Whitefield Mahadevapura Post BANGALORE 560048 Read - www.ingeniousinvestor.blogspot.com Follow us - www.twitter.com/smartinvestor

Indian Stock Markets - BSE, NSE Review 19 Nov 2009

Volatility ruled the roost as stocks lost ground with the sentiment hit by Brazil's latest move to curb capital inflows. Decline in European shares and lower US index futures also weighed on sentiment. The BSE 30-share Sensex fell 213.13 points or 1.25%, off close to 220 points from the day's high and up close to 70 points from the day's low. Index heavyweight Reliance Industries edged lower.

As per provisional data, foreign funds today, 19 November 2009, sold equities worth a net Rs 459.18 crore. Domestic funds bought stocks worth a net Rs 116.79 crore.

The Sensex fell below 17,000 mark after regaining that level in opening trade. The Sensex had settled below that psychological level on Wednesday, 18 November 2009. The S&P CNX Nifty fell below the key 5,000 mark. Metal, auto, banking, realty and IT stocks declined. The market breadth was weak in contrast to a strong breadth in early trade.

Intraday volatility on the bourses was high. The market recovered from lower level in morning trade after Finance Secretary Ashok Chawla said high capital inflows is not a cause for concern as of now. However, the intraday rebound proved short-lived. The market cut losses after hitting a fresh intraday low in late trade.

Equities may remain volatile over the next few days as traders rollover positions in the derivative segment from November 2009 series to December 2009 series ahead of the expiry of the near month November 2009 contracts on 26 November 2009.

The market sentiment was hurt by Brazil's latest move to curb capital inflows. Brazil took another step on Wednesday to try to contain the appreciation of its currency, unveiling a 1.5% tax on certain trades involving American Depositary Receipts issued by Brazilian companies. The Brazilian government, last month, implemented a 2% financial tax on foreign inflows into stocks and fixed income investments.

Among other overseas markets, South Korea announced measures on Thursday aimed to tightening controls over currency liquidity to make the banking system less vulnerable to the capital flight. The Financial Services Commission said it will limit the size of forward foreign exchange transactions that South Korean companies can enter into, to a total value of not more than 125% of the underlying transactions they are hedging against, which could mean less-than-expected selling of dollar-forwards by exporters in the future. Taiwan has already banned foreigners from investing in time deposits

Closer home, Chawla said today there is no proposal to put quota on external commercial borrowings even as he said that the government is closely monitoring capital inflows. Earlier, a newspaper report suggested that the government is taking its first significant step to ward off a surge in foreign capital inflows that may threaten the stability of the financial system by drawing up new rules that will make overseas loans costlier for companies. Indian stocks have risen sharply this year on robust inflow from foreign funds. Reports had suggested that the government was considering auctioning of corporate entitlements to borrow abroad, a move that could make such borrowing costlier.

A global glut of liquidity has pushed stock markets across the globe sharply higher since March this year. Governments and central banks around the world have injected trillions of dollars in the past one year or so to pull the world out of a most severe recession since the 1930s Great Depression.

On Wednesday, Finance Minister Pranab Mukherjee said India would have the tools to deal with an influx of foreign capital inflows if they become disruptive, but they are not a concern yet.

The industry body Assocham on Tuesday, 17 November 2009, suggested that foreign institutional investors (FIIs) should be charged a tax of 2% of their money pumped into the stock market to prevent further rise of the rupee and also an asset-bubble. At a quarterly policy review late last month, the Reserve Bank of India (RBI) said there were signs excess liquidity is seeping into asset prices.

Imposing the tax would help the RBI to manage rupee at reasonable levels to safeguard and support Indian exporters, hit hard by rising input cost and appreciating rupee, Assocham said. The rupee has appreciated over 5% against the US dollar in the last six months. Foreign funds have bought stocks worth Rs 73786.80 crore so far in calender 2009.

Meanwhile, the latest data showed that the food price index jumped 14.55% in the 12 months to 7 November 2009. The primary article index was up 9.94% whereas the fuel index was down 1.51%. The finance minister on Wednesday said the government might import rice, if the summer-sown crop output was inadequate. The annual wholesale inflation rose 1.34 % in October 2009 from a year earlier, compared with 0.5 % in September 2009 and 11.06 % a year ago.

The Organisation of Economic Co-operation and Development (OECD) today, 19 November 2009, raised India's 2010 GDP growth forecast to 7.3% from 7.2% earlier. OECD sees 7.6% growth in India's GDP in 2011.

The government has set reform of the insurance sector as a priority for the winter parliament session that begins today, 19 November 2009. The bill, which was stalled in the last parliament, proposes raising the foreign investment limit in insurance companies from 26 % to 49%. The government also wants to open up the pension sector to private and foreign firms and give equal voting rights to foreigners in private-sector banks, which are currently limited to 10% irrespective of their actual holding.

Prime Minister Manmohan Singh said recently India is ready to increase the pace of reform, and the government has flagged stake sales in state run firms and tax changes to help to plug a large budget deficit.

The government kicked off the discussion process towards consolidation in the banking sector at a meeting with senior bankers on Wednesday. The finance ministry has been urging banks since the last few years to start the process of mergers and acquisition on a voluntary basis, but none of the state-run banks have shown any initiative on this.

Meanwhile, the initial public offer of Cox and Kings, a global tour operator, was fully subscribed on the second day of the bidding for the issue today, 19 November 2009.

In a bid to speed up the process of fund mobilisation and listing, the Securities and Exchange Board of India (Sebi) is reportedly working towards bringing down the time frame for listing of an IPO on the stock exchange to seven days from the current 20 days.

In overseas news, the Paris-based Organization for Economic Cooperation and Development on Thursday said a recovery across its 30-member area is picking up steam thanks to stimulus measures and other interventions. In its semi-annual Economic Outlook, the OECD said it now expects US gross domestic product to shrink 2.5% in 2009, followed by growth of 2.5% in 2010. In June, the OECD forecast a 2.8% fall this year and growth of 0.9% in 2010.

Japan is forecast to contract 5.3% this year, compared to an earlier forecast for a 6.8% decline. Next year, Japan is expected to grow by 1.8%, compared to an earlier forecast of 0.7%. The euro zone is now forecast to shrink 4% this year, compared to a previous forecast for a 4.8% fall. In 2010, the euro zone is seen expanding by 0.9%, compared to the OECD's previous call for flat economic growth

European shares were lower on Thursday for the third consecutive session, with food producers leading the losers after Danone cut its sales growth target. The key benchmark indices in France, Germany and UK fell by between 0.62% to 0.98%.

British retail sales rose slightly less than expected in October 2009, while the public finances deteriorated more sharply than thought over the month, the Office for National Statistics said on Thursday. The ONS said sales rose 0.4 % last month, slightly below forecasts for a rise of 0.5%. The ONS said public sector net debt as a percentage of GDP came in at 59.2% in October 2009, the highest since records began in 1974/75.

Asian stocks were trading mixed on Thursday with equities witnessing a consolidation phase after strong gains this year . The key benchmark indices on Taiwan, Hong Kong and Japan fell by between 0.09% to 0.86%. The key benchmark indices in South Korea, Singapore and China rose by between 0.5% to 1.03%.

Trading in US index futures indicated Dow could fall 70 points at the opening bell on Thursday, 19 November 2009.

US stocks fell on Wednesday on worrisome outlooks from major software makers and as a surprise drop in new home construction last month prompted concern about the strength of an economic recovery. The Dow was down 11.11 points, or 0.1%, to 10,426.31. The S&P 500 index slipped 0.52 points, or 0.1%, to 1,109.80, while the Nasdaq fell 10.64 points, or 0.5%, to 2,193.14.

Housing starts unexpectedly fell 10.6% in October 2009 to the lowest level in six months, weighed down by a sharp decline in construction activity for both single-family and multi-family dwellings. The consumer price index rose 0.3%, indicating that inflation may not be quite as benign as some economists have indicated.

The BSE 30-share Sensex fell 213.13 points or 1.25% to 16785.65. The Sensex opened with an upward gap of 6.20 points at 17,004.98, which was also the day's high. The Sensex fell 286.45 points at the day's low of 16,712.33 in late trade.

The S&P CNX Nifty fell 65.70 points or 1.3% to 4,989. Nifty November 2009 futures were at 4,984, at a discount of 5 points as compared to spot closing of 4,989. Turnover in NSE's futures & options (F&O) segment jumped to Rs 79,048.32 crore from Rs 67,322.64 crore on Wednesday, 18 November 2009.

The market breadth, indicating the overall health of the market was negative compared to a strong breadth in early trade. On BSE, 1049 shares advanced as compared with 1685 that declined. A total of 86 shares remained unchanged.

From the 30 share Sensex pack, 27 fell and rest rose.

BSE clocked a turnover of Rs 5057 crore, lower than 5264.49 crore on Wednesday, 18 November 2009.

From a recent low of 15,404.94 on 3 November 2009, the Sensex jumped 1,645.71 points or 10.68% in a short period of time, to 17,050.65 on 17 November 2009. From that high, the Sensex has lost 265 points or 1.55% in two trading sessions to the current 16785.65. The Sensex is up 7138.34 points or 73.99% in calendar year 2009, as on 19 November 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 8625.25 points or 105.69% as on 19 November 2009.

Coming back to today's trade, the BSE Mid-Cap index fell 1.67% and underperformed the Sensex. The BSE Small-cap index fell 1.08%. It outperformed the Sensex.

The BSE Realty index (down 4.36%), the BSE Bankex (down 1.95%), the BSE Metal index (down 1.77%), the BSE Teck index (down 1.35%), the BSE Auto index (down 1.35%), underperformed the Sensex. The BSE PSU index fell 1.25%, matching the fall in the Sensex.

The BSE FMCG index (down 0.47%), the BSE Consumer Durables index (down 0.66%), the BSE Healthcare index (down 0.88%), the BSE Capital Goods index (down 1%), the BSE Oil & Gas index (down 1.01%), the BSE Power index (down 1.05%),the BSE IT index (down 1.21%) outperformed the Sensex.

Energy major Reliance Industries (RIL) fell 0.98% to Rs 2077.20. The stock came off the day's high of Rs 2081.95. The company plans an aggressive exploration campaign, investments in petrochemicals and overseas acquisitions as India's top company by market capitalisation prepares itself for the next phase of growth. The company will work towards attaining global scale for its conventional energy platform petrochemicals, refining and oil and gas exploration and invest in its new businesses such as retailing and alternative energy, chairman Mukesh Ambani said at the company's annual meeting of shareholders on Tuesday.

Meanwhile, RIL has set 27 November 2009 as the record date for a liberal 1:1 bonus share issue.

The government on Monday 16 November 2009 announced additional allocation of 51.6 million metric standard cubic metres per day (mmscmd) of natural gas from RIL's Krishna Godavari D6 field. Nearly 70% of this has been to the power sector. The move, finalised at the meeting of the ministry of petroleum and natural gas on 27 October 2009, takes the total allocation to 91.6 mmscmd from the current 40 mmscmd.

RIL on 10 November 2009 announced its first oil discovery in its exploration block in the Cambay Basin off Gujarat. Reliance holds 100% participating interest in the block. This block was awarded to Reliance under the fifth round of the New Exploration Licensing Policy.

Shares of public sector oil marketing companies fell after Oil Secretary R.S. Pandey said the government has no immediate plan to raise fuel prices. BPCL, HPCL and Indian Oil Corporation fell by between 0.87% to 1.27%.

Pandey said there is no proposal yet on raising fuel prices, adding that state-run oil marketing companies were likely to suffer a revenue loss of Rs 44,000 crore in the current financial year by selling fuel at government-set rates. Pandey said inter-ministerial consultations about raising the prices of gas sold under the administrative price mechanism were underway

Rate sensitive realty shares fell after the RBI, late last month, raised the provisioning requirements for loans to commercial real estate from 0.4% to 1% at a regular monetary policy review. Indiabulls Real Estate, Unitech, DLF fell by between 3.68% to 5.48%.

The latest RBI move will result in increase in borrowing costs for realty firms which depend heavily on borrowing. In view of large increase in credit to the commercial real estate sector over the last one year and the extent of restructured advances in this sector, it would be prudent to build cushion against likely non-performing assets (NPAs), the central bank said in its quarterly policy review.

IT stocks fell on profit taking. India's second largest software company by sales Infosys fell 0.99% as its ADR fell 0.99% on Wednesday. Infosys BPO, the business processing outsourcing subsidiary of Infosys Technologies, last week, announced the signing of a definitive agreement to acquire all of the outstanding interests of McCamish Systems LLC, a premier business process solutions provider, based in Atlanta, Georgia in the United States.

The acquisition is expected to be completed later this year subject to the satisfaction of certain closing conditions. The upfront consideration for the deal is $38 million with up to an additional $20 million payable to the sellers if McCamish Systems achieves certain financial targets in the future. The announcement was made on 12 November 2009.

India's largest software company by sales Tata Consultancy Services (TCS) fell 1.08%. The company recently secured a 150 million pounds software implementation contract for 15 years from Cardiff city council, UK.

But India's third largest software company by sales Wipro rose 0.1% as its ADR rose 0.49% on Wednesday. Wipro, sees robust deal pipeline on the back of improving IT demand worldwide, Suresh Vaswani, joint chief executive said on Tuesday 10 November 2009. The company said on 5 November 2009 it had agreed to buy some personal care businesses of Yardley for about $45.5 million, adding to its consumer goods business. Wipro said it had signed an agreement with UK-based Lornamead group, which owns the Yardley brand, for the businesses in Asia, the Middle East, Australasia and some African markets.

Banking shares fell on profit taking. India's largest bank by net profit State Bank of India (SBI) fell 2.15%. State Bank of India said on 9 November 2009 said it had entered into an agreement with T. Rowe Price to sell a 6.5% holding each in UTI Asset Management Company and UTI Trustee Company. State Bank currently holds 25% in each of the companies and after the sale its holding would be reduced to 18.5%, it said in a statement.

SBI announced on Friday 6 November 2009 it has revised downwards interest rates on deposits by 25-50 basis points for a few maturities effective from 9 November 2009. The bank's consolidated net profit rose 28.29% to Rs 3,133.16 crore on 22% rise in consolidated income to Rs 33,101.65 crore in Q2 September 2009 over Q2 September 2008. The results were announced on 31 October 2009.

India's largest private sector bank by net profit ICICI Bank fell 2.18% as its ADR fell 2.22% on Wednesday. The bank's net profit rose 2.6% to Rs 1040.13 crore on a 12.7% decline in total income to Rs 8480.73 crore in Q2 September 2009 over Q2 September 2008. The result was announced during trading hours on 30 October 2009.

India's second largest private sector bank by net profit HDFC Bank fell 1.37% as its ADR fell 1.92% on Wednesday.

But, India's largest dedicated home loan lender Housing Development Finance Corporation (HDFC) rose 0.44%. The lender announced on 13 November 2009 it has agreed to acquire approximately 41% in the fully diluted equity share capital of Credila Financial Services from DSP Merrill Lynch Capital.

Prime Minister Manmohan Singh said on 8 November 2009, financial reforms, such as building up a domestic bond market and expanding foreign investment in sectors like insurance, would be pushed forward.

Meanwhile, the Reserve Bank of India Deputy Governor Usha Thorat said on Monday 16 November 2009 the central bank will soon issue guidelines on provisioning for bad loans by banks

Rate sensitive auto stocks fell on profit taking. Low interest rates and attractive benefits offered by companies pushed up auto sales in October 2009

India's largest tractor maker by sales Mahindra & Mahindra fell 1.27%. The company's overall sales climbed 32% in October this year to 18,410 units against 13,935 units in the same month last year.

India's largest small car marker by sales Maruti Suzuki India fell 0.91%. The company's total sales grew 32.4% to 85415 units in October 2009, compared with 64490 units posted in the same month a year ago.

India's largest bike marker by sales Hero Honda Motors fell 1.53%. The company reported a marginal increase in October sales at 354,156 units as against 352,449 units in the same month last year

India's largest commercial vehicle maker by sales Tata Motors fell 1.56%. Tata Motors has reportedly raised Rs 264 crore so far through the revised fixed deposit scheme which it launched in August this year. The company is authorised to raise Rs 1,300 crore from the revised scheme. Meanwhile, Jaguar Land Rover received as much as 170 million pounds ($286 million) as a five-year working capital facility from General Electric Co.'s GE Capital division, the lender said on 16 November 2009. Tata Motors the owner of Jaguar Land Rover, is hopeful of turning around the unprofitable luxury unit as it cuts costs to battle a slump in sales during the global recession.

But, India's second largest bike marker by sales Bajaj Auto rose 0.18%. Carlos Ghosn, chief executive of French car maker Renault and Japan's Nissan Motor Co, said, last week, that an agreement had been signed with Bajaj Auto for a low-cost car which would come to India in 2012.

Car sales in India rose an annual 34% to 132,615 units in October 2009, boosted by festival demand and easier availability of loans, an industry body said on Wednesday 11 November 2009. Sales of trucks and buses, a gauge of economic activity, rose 52% to 42,562 units in October 2009, the data showed.

Metal stocks reversed early gains on profit taking. Sterlite Industries, and Hindalco Industries fell by between 2.22% to 3.46%.

Steel Authority of India (Sail) fell 1.38%. As per recent reports the company has won a battle with ArcelorMittal for Chiria mines in Jharkhand. The steel minister on 16 November 2009 said the cabinet will soon consider selling part of government's stake in Steel Authority of Steel. Meanwhile, Sail chairman on Monday said the company has cut flat product prices by Rs 500 per tonne.

Tata Steel, the world's eighth largest steelmaker by output, fell 1.76%. Tata conglomerate is looking around the world for a successor to Ratan Tata, the 71-year old chairman of the sprawling salt-to-steel group said on Wednesday. Local and foreign candidates were being looked at to head the group, which includes Tata Motors, Tata Steel, Tata Consultancy Services and Tata Power among its 27 listed companies Tata Steel is reportedly raising its annual iron ore production by 55% to 17 million tonnes in India over the next two years. The expansion is expected to cost about Rs 1100 crore.

Tata Steel, recently approved a new convertible bonds offer in exchange for an existing $875 million securities to reduce costs and ease repayment obligations. The company said on 6 November 2009 steel sales at its Indian operations rose 38% to 462,000 tonnes in October 2009 over October 2008.

JSW Steel fell 0.65% after Japan's JFE Steel, the world's sixth-largest steelmaker, said on Thursday it will team up with JSW Steel on automotive steel production in India.

Demand for steel remains strong from auto, rural construction and infrastructure sectors. Also demand for construction grade steel has improved post monsoon season, and has resulted into higher sales

FMCG stocks fell on profit taking. ITC, Hindustan Unilever, Tata Tea, Marico fell by between 0.29% to 2.41%.

India's largest thermal power producer by sales NTPC fell 0.35%. A 5% stake sale in state-run power producer could fetch the government Rs 8100 crore ($1.7 billion), Sunil Mitra, a senior finance ministry official, said on Friday 13 November 2009.

Last month, the cabinet approved share sales for NTPC, Satluj Jal Vidyut Nigam and Rural Electrification Corp.

Among other power stocks, Reliance Power, Tata Power Company, Reliance Infrastructure, CESC fell by between 0.76% to 3.9%.

India's largest drug maker by sales Ranbaxy Laboratories fell 1.18% even after the company got final approval from US Food & Drug Administration for its abbreviated new drug application for Famotidine tablets in multiple strengths.

UltraTech Cement, a unit of conglomerate Aditya Birla Group rose 0.56% extending gains for the fourth day. The company absorbed sister unit Samruddhi Cement, to form the country's biggest cement firm. The move, flagged in October 2009, was approved by the boards of both companies on Sunday. In October, the group said it will hive off the cement business of flagship firm Grasim Industries into unit Samruddhi in a cashless transaction and later merge it with group firm UltraTech. Samruddhi shareholders will receive four shares of UltraTech for every seven held in Samruddhi. UltraTech will also issue 14.95 crore new shares, boosting its capital to Rs 274 crore.

Among the other cement stocks, Ambuja Cements and Birla Corporation fell by between 0.02% to 1.32%.

India's largest mobile telecom services provider by sales Bharti Airtel fell 1.96%. The company's chief Executive Manoj Kohli recently said that the company is confident that the country will proceed on schedule with 3G spectrum auctions in January 2010 with high hopes for the technology in the competitive market. The government held a pre-bidding conference on Monday in the run-up to third-generation (3G) spectrum auctions that have been twice delayed but are now scheduled to take place on 14 January 2009.

Bharti expects the current state of stiff competition to continue into 2010, as the government worked on new rules that may allow faster consolidation, Kohli said.

Among other telecom stocks, Reliance Communications and Idea Cellular fell by between 1.66% to 2.41%.

India's largest engineering and construction firm by sales Larsen & Toubro fell 0.82%. The company after market hours on Tuesday 17 November 2009 said Gilbarco Inc. has bought its petroleum dispensing pump business.

India's largest power equipment maker by sales Bharat Heavy Electricals fell 0.55%. The company said on Wednesday it has signed a joint-venture to build a 1,600 megawatt (MW) thermal power plant in the central state of Madhya Pradesh. The power plant at Khandwa will be equipped with supercritical technology, which helps lower coal consumption and leads to lower emissions.

Among other capital goods stocks, BEML, ABB, Siemens, Punj Lloyd fell by between 0.55% to 2.92%.

Sugar stocks fell as thousands of farmers protested low state-controlled sugarcane prices forcing the postponement of the first day of the parliamentary winter session on Thursday, highlighting rural discontent over government policy. Bajaj Hindustan, Shree Renuka Sugars and Balrampur Chini fell by between 3.69% to 7.28%.

Suzlon Energy clocked the highest volume of 3.99 crore shares on BSE. Cals Refineries (2.49 crore shares), Ispat Industries (0.88 crore shares), Unitech (0.85 crore shares), Mahindra Satyam (0.61 crore shares) were the other volume toppers in that order.

JSW Steel clocked the highest turnover of Rs 362.45 crore on BSE. Suzlon Energy (Rs 300.28 crore), Housing Development & Infrastructure (Rs 145.83 crore), Tata Steel (Rs 134.02 crroe) and Reliance Industries (Rs 129.61 crore) were the other turnover toppers in that order.

Source : Capitalmarket.com

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Indian Share / Stock Markets BSE NSE Report 10 July 2009

Domestic markets yet again failed to get the equations right with investors, sending the Nifty below the psychological 5,000 mark. The spark set off by gloomy world markets caught flame as the day progressed and investors indulged in profit booking on worries over the pace of economic recovery and ambiguity in markets’ direction.

Pessimism dominated the session such that benchmarks did not make the grade to even have a sight of the green lane. Second-line shares that managed to dodge sellers at a point in morning trades, finally found it difficult to carry on the feat due to intensive selling activity taken up by all sections of investors.

Realty, banking, metal and technology stocks were worst hit in the day’s trade; in fact, none of the sectoral counters showed nerve to fight the brutal force of sellers. Finally, the 30-share BSE Sensex dropped 213.13 points or 1.25% to end at 16,785.65, while the S&P CNX Nifty plunged 65.70 points or 1.3% to settle at 4989.

The market breadth on the BSE was weak. 1052 shares ended in the green, 1682 shares ended in the green and 87 shares remained unchanged.

The Sensex touched a high and a low of 17,004.98 and 16,712.33, respectively. HDFC up 0.44%, ACC up 0.41% and Wipro up 0.08% were the only gainers on the benchmark.

Major losers on the Sensex were Jaiprakash Associates down 4.53%, Reliance Infra down 3.9%, DLF down 3.68%, Hindalco Inds down 3.46% and RCom down 2.41%.

The BSE Mid-cap and Small-cap indices dropped 1.67% and 1.08%, respectively.

The government released the Wholesale Price Index (WPI) for the week ending November 7 in respect of ‘Primary Articles’ and commodities in the broad group ‘Fuel, Power, Light & Lubricants'. The Primary Articles Index which has a weight of 22.02% in the overall WPI rose by 0.8% to 276.4 from 274.2 in the previous week.

According to the release, the annual rate of inflation, calculated on point to point basis, stood at 9.94% as compared to 9.16% for the previous week and 12.28% during the corresponding week of the previous year.

Among sectoral indices on the BSE, Realty down 4.36%, Bankex down 1.95%, Metal down 1.77%, TECk down 1.35% and Auto down 1.35% were the main losers.

Indiabulls Real Estate (down 5.48%) from Realty, IOB (down 4.23%) from Bankex, Hindalco Inds (down 3.46%) from Metal, Aptech (down 6.11%) from TECk and Exide Inds (down 5.5%) from Auto were the main losers on the respective indices.

There were no gainers in the sectoral space.

Government is set to give a big boost to the roads and highways infrastructure in the country with the National Highways Authority of India (NHAI) identifying 10 lucrative mega highway projects to be awarded to private developers. The projects, which will bring an estimated investment of Rs 45,000 crore, will be awarded in the next couple of years.

The government will auction the projects on a revenue-share basis. In such an arrangement the developers share a pre-defined percentage of the toll earnings with the government. Since these are lucrative projects expected to generate a lot of toll money, the government will also earn revenue through these. Total length of the identified projects would be 5,000 km.

The S&P CNX Nifty plunged 65.70 points or 1.3% to settle at 4989. The index touched a high and a low of 5053.45 and 4963.70, respectively.

Suzlon up 2.11%, ACC up 0.64%, PowerGrid up 0.38%, HDFC up 0.27% and Hindustan Unilever up 0.09% were the main gainers on the Nifty.

Unitech down 5.22%, JP Associates down 4.57%, Rel Infra down 3.7%, Siemens down 3.64% and DLF down 3.54% were the main losers on the Nifty.

Despite the Indian government reiterating its commitment once again to carry forward the reform agenda to its logical conclusions, the development in this regard seems to be rather slow in New Delhi. Major reform bills such as the Insurance Law Amendment Bill which aims at allowing the foreigners to own a greater stake in Indian insurance companies are unlikely in the forthcoming winter session of the Parliament.

Similar is the fate of the Banking Regulation Amendment Bill which also aims at raising the cap on FDI in banking industry and providing voting rights to foreign entities in private sector banks. The main reason being projected is shortage of time and host of other issues being on the agenda. Most of the government’s reform oriented energy is presently focused on the coveted Goods and Services Tax (GST) which aims at literally rewriting the indirect taxation regime in the country and promises to go far in improving efficiency and raising government’s revenue. There is also the Direct Taxes Code Bill which government may table in the winter session that ends on December 21.

Meanwhile, the winter session of Lok Sabha made a stormy start on Thursday as the members of Samajwadi Party (SP) and RLD created chaos over the demand for hike in sugarcane prices leading to adjournment of the House. Soon after the beginning of the session SP Chief Mulayam Singh Yadav and RLD President Ajit Singh led their party members into the well of the House demanding hike in sugarcane prices.

BJP leaders who have already announced plans to move an Adjournment Motion in the House over the sugarcane issue were raising the same issue from their seats.

European markets were trading lower. Britain’s FTSE 100 declined 0.2%, France’s CAC 40 slipped 0.48% and Germany’s DAX plunged 0.34%.

Asian markets ended mixed on Thursday as investor sentiment remained cautious following a weak close on the Wall Street overnight. Investors locked in profits on concerns over pricey valuations and pace of economic recovery. This apart, share-sale plans of Japanese companies gave rise to concerns that the value of existing holdings will be reduced.

Hang Seng declined 0.86% to 22,643.16, Nikkei 225 slipped 1.32% to 9,549.47 and Taiwan Weighted plunged 0.09% to 7,759.98.

On the other hand, Shanghai Composite gained 0.53% to 3,320.612, Straits Times rose 0.50% to 2,758.79 and Seoul Composite added 1.03% to 1,620.54.

Source : Livemint.com

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Indian Share / Stock Markets Report 18 Nov 2009

Volatility ruled the roost as the key benchmark indices edged lower with investors cashing in on gains after a sharp rally in the past few days. The BSE 30-share Sensex fell 51.87 points or 0.3% off close to 100 points from the day's high. The Sensex settled below 17,000 mark after alternatively moving above and below that level during the day.

Metal stocks rose. But capital goods and banking stocks fell. Index heavyweight Reliance Industries dropped after setting record date for a liberal 1:1 bonus issue. Another index heavyweight L&T also fell.

Intraday volatility was high. The market recovered soon after an initial slide. The Sensex and the 50-unit S&P CNX Nifty pared gains after hitting one-month highs in mid-morning trade. The market once again slipped into the red later. The market cut losses in early afternoon trade after Finance Minster Pranab Mukherjee said the current higher capital inflows are not a matter of concern. The market moved between positive and negative zone later. The market hit a fresh intraday low in late trade. Volatility was high at the fag end of the trading session

Profit taking weighed on the domestic bourses today. From a recent low of 15,404.94 on 3 November 2009, the Sensex had jumped 1,645.71 points or 10.68% in a short period of time to 17,050.65 on 17 November 2009.

Mukherjee said on Wednesday the country is monitoring foreign capital inflows and the current higher inflows are not a matter of concern. Indian stocks have risen sharply this year on robust inflow from foreign funds. Indian officials had said on recent occasions that they welcomed fund inflows, but Mukherjee on Wednesday also noted that India is ready to deal with the flows if they become a problem. We have a system of monitoring inflows, he said.

The industry body Assocham on Tuesday, 17 November 2009, suggested that foreign institutional investors (FIIs) should be charged a tax of 2% of their money pumped into the stock market to prevent further rise of the rupee and also an asset-bubble. At a quarterly policy review late last month, the RBI said there were signs excess liquidity is seeping into asset prices.

Imposing the tax would help the RBI to manage rupee at reasonable levels to safeguard and support Indian exporters, hit hard by rising input cost and appreciating rupee, Assocham said. The rupee has appreciated over 5% against the US dollar in the last six months.

The parliament will debate closely watched reform bills in the banking and insurance sectors in the winter session which starts on Thursday, 19 November 2009, the minister of state for Parliamentary Affairs Prithviraj Chavan said on Wednesday. The insurance bill, which is pending before the parliamentary standing committee, proposes to raise foreign investment limit in insurance companies from 26% to 49%, Chavan said

Meanwhile, Federal Reserve Chairman Ben Bernanke surprised investors on Monday 16 November 2009 when he said the central bank was attentive to implications of changes in the value of the dollar, although he reiterated that interest rates would remain exceptionally low for an extended period.

On Tuesday, 17 November 2009, other top Federal Reserve officials struck differing notes on the likely pace of the US economic recovery. Jeffrey Lacker, the president of the Richmond Federal Reserve Bank said economic recovery in the US is solidly under way. He expects the economy to grow at a reasonable pace in 2010 as the housing sector recovers and consumers and businesses resume spending. Lacker, an outspoken anti-inflation hawk, said that if officials want to keep inflation in check, they cannot be "paralyzed by patches of lingering weakness, which could persist well into the recovery."

Two other senior Fed officials, Cleveland Fed President Sandra Pianalto and San Francisco Fed chief Janet Yellen, stressed that the economic recovery will be sluggish. Yellen, however, told a panel in Hong Kong that the Fed knows it cannot maintain its easy money policy for too long once the economy has healed.

Lacker warned that the risk consumers and businesses lose confidence in inflation stability is greatest in the early years of an economic recovery. The Fed's actions to pump money into the system to spur recovery heightens this danger, he said.

The Fed took another small step on Tuesday to wind down its emergency support as financial markets improve. It shortened the maturity of the emergency loans it makes to banks at its discount window, which it had lengthened during the crisis.

Closer home, inflation based on the wholesale price index accelerated in October 2009 from a month earlier on costlier minerals and fuels. On Saturday 14 November 2009, the government switched to using monthly inflation data for all commodities with 1993/94 as the base year, from the earlier practice of announcing weekly price movement. The wholesale price index was up 1.34% in October 2009 from a year earlier, compared with 0.5% rise in September 2009 and 11.06% jump a year ago. Food prices, however, declined by 1% from the previous month's level, while minerals and industrial fuels were each costlier by 3%.

Mukherjee today said the government may import rice if there is a shortfall in the summer-sown crop output.

Industrial output grew 9.1% in September 2009 from a year earlier, helped by stimulus and festival demand, and adding to the debate on the timing of exit policy. However, Finance minister Pranab Mukherjee said on Monday stimulus packages to perk up the economy during the slowdown are unlikely to be withdrawn in the current financial year and the exit when it happens will be a gradual one.

Economists and analysts surveyed by the Reserve Bank of India (RBI) revised downwards India's gross domestic product projection to 6% for 2009/10 from 6.5% in the previous round of survey, the RBI released the results of the ninth round of survey on Monday 16 November 2009.

The RBI in its mid-term monetary policy review last month kept its GDP projection for the current fiscal unchanged at 6% but had increased inflation target to 6.5% by end-March 2010 from 5%. The government is scheduled to announce the July-September GDP growth number on 30 November 2009.

Meanwhile, the initial public offer of Cox and Kings, a global tour operator, was subscribed 60% at 16:00 IST on the first day of bidding today. The price band has fixed at Rs 316-330 per share and the issue will close for subscription on 20 November 2009. Face value per share is Rs 10.

European shares bounced back on Wednesday to trade near their highest level in more than 13 months, with investors waiting for macro-economic numbers from the United States and minutes from the Bank of England. The key benchmark indices in France, Germany and UK were up by between 0.44% to 0.67%.

Asian stocks were trading mixed on Wednesday. The key benchmark indices in China, South Korea and Taiwan rose by between 0.43% to 1.13%. The key benchmark indices in Hong Kong, Japan and Singapore fell by between 0.32% to 0.72%.

China needs to be alert to the danger of asset bubbles, but headline inflation is unlikely to be a risk for some time, Fan Gang, a member of the People's Bank of China's monetary policy committee, said. Speaking at a forum in Hong Kong on Wednesday, Fan said Chinese gross domestic product could expand between 8% and 9% in 2010. Growth this year would be above the government's target of 8%, he added.

Chinese Premier Wen Jiabao told US President Barack Obama in a meeting on Wednesday that China wants to balance its trade relationship with the United States and does not seek a surplus. The comments published on China's foreign ministry website made no reference to Wen mentioning China's yuan policy to Obama, but did indicate that Obama had brought up currency reform as one step that China should take to mitigate trade imbalances.

Trading in US index futures indicated a steady opening of US stocks on Wednesday, 18 November 2009.

US stocks rose to fresh 13-month highs on Tuesday as upbeat broker views on improving prospects for two Dow components offset disappointing holiday spending outlooks from Target and Home Depot. The Dow Jones industrial average was up 30.46 points, or 0.29%, to end at 10,437.42. The Standard & Poor's 500 Index gained 1.02 points, or 0.09% to finish at 1,110.32. The Nasdaq Composite Index rose 5.93 points, or 0.27% to close at 2,203.78.

In economic data from the US, producer prices rose 0.3% in October, with the core rate dropping 0.6%. And industrial production climbed 0.1% in October 2009. This was less than the 0.4% gain expected.

The BSE 30-share Sensex fell 51.87 points or 0.3% to 16998.78. At the day's high of 17,098.79, the Sensex rose 48.14 points in mid-morning trade, its highest since 21 October 2009. The Sensex fell 92.24 points at the day's low of 16,958.41 in late trade.

The S&P CNX Nifty fell 7.55 points or 0.15% to 5054.70. It hit a high of 5079.30 in intraday trade, its highest since 21 October 2009. Nifty November 2009 futures were at 5,057, at a premium of 2.30 points as compared to spot closing of 5,054.70. Turnover in NSE's futures & options (F&O) segment was Rs 67,322.64 crore, lower than Rs 71,301.23 crore on Tuesday, 17 November 2009.

The market breadth, indicating the overall health of the market was strong. On BSE, 1591 shares advanced as compared with 1163 that declined. A total of 81 shares remained unchanged.

From the 30 share Sensex pack, 18 fell and rest rose.

BSE clocked a turnover of Rs 5234 crore, higher than Rs 4835.65 crore on Tuesday,17 November 2009.

The Sensex is up 7351.47 points or 76.2% in calendar year 2009, as on 18 November 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 8838.38 points or 108.3% as on 18 November 2009.

Coming back to today's trade, the BSE Mid-Cap index rose 0.29% and the BSE Small-cap index rose 0.8%. Both these indices outperformed the Sensex.

The BSE Metal index (up 1.2%), the BSE FMCG index (up 0.73%), the BSE IT index (up 0.7%), the BSE Realty index (up 0.67%), the BSE Consumer Durables index (up 0.61%), the BSE Healthcare index (up 0.47%), the BSE Teck index (up 0.47%), the BSE Auto index (up 0.03%), the BSE Power index (down 0.1%), the BSE PSU index (down 0.2%), outperformed the Sensex.

The BSE Oil & Gas index (down 0.84%), the BSE Bankex (down 0.78%), the BSE Capital Goods index (down 0.66%), underperformed the Sensex.

Energy major Reliance Industries (RIL) fell 1.47%. The company plans an aggressive exploration campaign, investments in petrochemicals and overseas acquisitions as India's top company by market capitalisation prepares itself for the next phase of growth. The company will work towards attaining global scale for its conventional energy platform petrochemicals, refining and oil and gas exploration and invest in its new businesses such as retailing and alternative energy, chairman Mukesh Ambani said at the company's annual meeting of shareholders on Tuesday.

Meanwhile, RIL has set 27 November 2009 as the record date for a liberal 1:1 bonus share issue.

The government on Monday 16 November 2009 announced additional allocation of 51.6 million metric standard cubic metres per day (mmscmd) of natural gas from RIL's Krishna Godavari D6 field. Nearly 70% of this has been to the power sector. The move, finalised at the meeting of the ministry of petroleum and natural gas on 27 October 2009, takes the total allocation to 91.6 mmscmd from the current 40 mmscmd.

RIL on Tuesday 10 November 2009 announced its first oil discovery in its exploration block in the Cambay Basin off Gujarat. Reliance holds 100% participating interest in the block. This block was awarded to Reliance under the fifth round of the New Exploration Licensing Policy.

Oil exploration stocks rose as crude oil gained for a third day on Wednesday after an industry report showed US stockpiles declined after a hurricane in the Gulf of Mexico. Oil rose as much as 0.9% to $79.85 a barrel on Asian electronic trading. Rise in crude oil prices would result in higher realizations from crude sales for oil exploration firms.

Cairn India rose 1.58%. The company on 5 November 2009 signed a pact with Reliance Industries for supply of crude oil.

India's second biggest state-run oil exploration firm by revenue Oil India rose 0.43%. India's biggest state-run oil exploration firm by revenue Oil & Natural Gas Corporation (ONGC) rose 0.37%. Steel magnate Lakshmi Mittal has reportedly pulled out of a project to develop an oil block in Kazakhstan with Indian joint venture partner Oil and Natural Gas Corp. ONGC Mittal Energy was to have acquired a 25% stake in Satpaev block from state-owned KazMunaiGaz and invested a total of $400 million in the project.

Meanwhile, the petroleum ministry has reportedly proposed a 33% hike in the price of natural gas produced by ONGC and Oil India and gradually increase it to $4.20 per mmBtu set for gas from Reliance Industries' KG-D6 fields.

PSU OMCs fell as higher crude oil prices will increase under-recoveries on domestic sale of petrol, diesel, kerosene and LPG at controlled prices. HPCL, Indian Oil Corporation (IOC) and BPCL fell by between 0.45% to 2.35%.

Metal stocks rose on strong domestic demand. National Aluminium Company rose 0.3%. The company recently hiked the prices of aluminium products by Rs 1000 a tonne reflecting the recent uptrend in prices on the London Metal Exchange. Sterlite Industries rose 0.49%.

Steel Authority of India (Sail) rose 0.51% on reports the company has won a battle with ArcelorMittal for Chiria mines in Jharkhand. The steel minister on 16 November 2009 said the cabinet will soon consider selling part of government's stake in Steel Authority of Steel. Meanwhile, Sail chairman on Monday said the company has cut flat product prices by Rs 500 per tonne

JSW Steel rose 4.03%. Japan's Nippon Steel Corp on Wednesday denied a report that it was in talks for a stake in JSW Steel. Earlier, a television report said JSW Steel aims to raise $300 million to $500 million via the stake sale of about 7 to 11% to Nippon.

Tata Steel, the world's eighth largest steelmaker by output, rose 1.68%. Tata conglomerate is looking around the world for a successor to Ratan Tata, the 71-year old chairman of the sprawling salt-to-steel group said on Wednesday. Local and foreign candidates were being looked at to head the group, which includes Tata Motors, Tata Steel, Tata Consultancy Services and Tata Power among its 27 listed companies Tata Steel is reportedly raising its annual iron ore production by 55% to 17 million tonnes in India over the next two years. The expansion is expected to cost about Rs 1100 crore.

Tata Steel, recently approved a new convertible bonds offer in exchange for an existing $875 million securities to reduce costs and ease repayment obligations. The company said on 6 November 2009 steel sales at its Indian operations rose 38% to 462,000 tonnes in October 2009 over October 2008.

Demand for steel remains strong from auto, rural construction and infrastructure sectors. Also demand for construction grade steel has improved post monsoon season, and has resulted into higher sales.

India's largest engineering and construction firm by sales Larsen & Toubro fell 1.72%. The company after market hours on Tuesday said Gilbarco Inc. has bought its petroleum dispensing pump business.

India's largest power equipment maker by sales Bharat Heavy Electricals fell 0.19%. The company said on Wednesday it has signed a joint-venture to build a 1,600 megawatt (MW) thermal power plant in the central state of Madhya Pradesh. The power plant at Khandwa will be equipped with supercritical technology, which helps lower coal consumption and leads to lower emissions.

Banking shares fell on profit taking. India's largest bank by net profit State Bank of India (SBI) fell 0.88%. State Bank of India said on 9 November 2009 said it had entered into an agreement with T. Rowe Price to sell a 6.5% holding each in UTI Asset Management Company and UTI Trustee Company. State Bank currently holds 25% in each of the companies and after the sale its holding would be reduced to 18.5%, it said in a statement.

SBI announced after market hours on Friday 6 November 2009 it has revised downwards interest rates on deposits by 25-50 basis points for a few maturities effective from 9 November 2009. The bank's consolidated net profit rose 28.29% to Rs 3,133.16 crore on 22% rise in consolidated income to Rs 33,101.65 crore in Q2 September 2009 over Q2 September 2008. The results were announced on 31 October 2009.

India's largest private sector bank by net profit ICICI Bank fell 1.47% as its ADR fell 0.23% on Tuesday. The bank's net profit rose 2.6% to Rs 1040.13 crore on a 12.7% decline in total income to Rs 8480.73 crore in Q2 September 2009 over Q2 September 2008. The result was announced during trading hours on 30 October 2009.

India's second largest private sector bank by net profit HDFC Bank fell 0.22%.

India's largest dedicated home loan lender Housing Development Finance Corporation (HDFC) fell 0.66%. The lender announced after market hours on Friday 13 November 2009 it has agreed to acquire approximately 41% in the fully diluted equity share capital of Credila Financial Services from DSP Merrill Lynch Capital.

Prime Minister Manmohan Singh said on 8 November 2009, financial reforms, such as building up a domestic bond market and expanding foreign investment in sectors like insurance, would be pushed forward.

Meanwhile, the Reserve Bank of India Deputy Governor Usha Thorat said on Monday 16 November 2009 the central bank will soon issue guidelines on provisioning for bad loans by banks

IT stocks rose on gains in American depositor receipt overnight in US. India's third largest software company by sales Wipro rose 0.4% as its ADR rose 0.99% on Tuesday. Wipro, sees robust deal pipeline on the back of improving IT demand worldwide, Suresh Vaswani, joint chief executive said on Tuesday 10 November 2009. The company said on 5 November 2009 it had agreed to buy some personal care businesses of Yardley for about $45.5 million, adding to its consumer goods business. Wipro said it had signed an agreement with UK-based Lornamead group, which owns the Yardley brand, for the businesses in Asia, the Middle East, Australasia and some African markets.

India's second largest software company by sales Infosys rose 1.54% as its ADR rose 1.27% on Tuesday. Infosys BPO, the business processing outsourcing subsidiary of Infosys Technologies, last week, announced the signing of a definitive agreement to acquire all of the outstanding interests of McCamish Systems LLC, a premier business process solutions provider, based in Atlanta, Georgia in the United States.

The acquisition is expected to be completed later this year subject to the satisfaction of certain closing conditions. The upfront consideration for the deal is $38 million with up to an additional $20 million payable to the sellers if McCamish Systems achieves certain financial targets in the future. The announcement was made before market hours on Thursday 12 November 2009.

But, India's largest software company by sales Tata Consultancy Services (TCS) fell 0.54%. The company recently secured a 150 million pounds software implementation contract for 15 years from Cardiff city council, UK.

UltraTech Cement, a unit of conglomerate Aditya Birla Group rose 1.08% extending gains for the third day. The company absorbed sister unit Samruddhi Cement, to form the country's biggest cement firm. The move, flagged in October 2009, was approved by the boards of both companies on Sunday. In October, the group said it will hive off the cement business of flagship firm Grasim Industries into unit Samruddhi in a cashless transaction and later merge it with group firm UltraTech. Samruddhi shareholders will receive four shares of UltraTech for every seven held in Samruddhi. UltraTech will also issue 14.95 crore new shares, boosting its capital to Rs 274 crore.

India's largest mobile telecom services provider by sales Bharti Airtel fell 0.25%. The company's chief Executive Manoj Kohli recently said that the company is confident that the country will proceed on schedule with 3G spectrum auctions in January 2010 with high hopes for the technology in the competitive market. The government held a pre-bidding conference on Monday in the run-up to third-generation (3G) spectrum auctions that have been twice delayed but are now scheduled to take place on 14 January 2009.

Bharti expects the current state of stiff competition to continue into 2010, as the government worked on new rules that may allow faster consolidation, Kohli said.

Among other telecom stocks, Reliance Communications and Idea Cellular rose by between 0.4% to 0.69%.

Shares of state-run firms rose after Prime Minister Manmohan Singh on 5 November 2009, approved divestment in public sector companies to raise funds for social welfare. Hindustan Copper, Central Bank of India, State Trading Corporation, MTNL rose by between 0.07% to 2.54%.

Shares of shipping firms rose after the Baltic dry index, which tracks rates to ship dry commodities, surged to its highest since September 2008. On Tuesday, 17 November 2009 the Baltic Dry Index (BDI) jumped 3.8% to 4,381 in London, extending its rally for the fourteenth straight session, as bids rose for the Capesize vessels that transport iron ore and coal to China. Mercator Lines, Shipping Corporation of India , Essar Shipping Ports & Logistics , Shreyas Shipping & Logistics , Varun Shipping Company and Great Eastern Shipping Company rose by between 2.56% to 11.56%.

FMCG stocks rose on bargain hunting. ITC, Tata Tea, United Spirits, Nestle India, rose by between 0.28% to 1.61%.

India's largest thermal power producer by sales NTPC fell 0.26%. A 5% stake sale in state-run power producer could fetch the government Rs 8100 crore ($1.7 billion), Sunil Mitra, a senior finance ministry official, said on Friday 13 November 2009.

Last month, the cabinet approved share sales for NTPC, Satluj Jal Vidyut Nigam and Rural Electrification Corp.

Among other power stocks, Torrent Power, Reliance Infrastructure, CESC fell by between 0.02% to 3.2%.

Rate sensitive auto stocks fell on profit taking. Low interest rates and attractive benefits offered by companies pushes up sales

India's largest tractor maker by sales Mahindra & Mahindra fell 0.52%. The company's overall sales climbed 32% in October this year to 18,410 units against 13,935 units in the same month last year.

India's second largest bike marker by sales Bajaj Auto fell 1.11%. Carlos Ghosn, chief executive of French car maker Renault and Japan's Nissan Motor Co, said, last week, that an agreement had been signed with Bajaj Auto for a low-cost car which would come to India in 2012.

India's largest bike marker by sales Hero Honda Motors fell 0.75%. The company reported a marginal increase in October sales at 354,156 units as against 352,449 units in the same month last year

But, India's largest small car marker by sales Maruti Suzuki India rose 0.52%. The company's total sales grew 32.4% to 85415 units in October 2009, compared with 64490 units posted in the same month a year ago.

India's largest commercial vehicle maker by sales Tata Motors rose 3.14%. Tata Motors has reportedly raised Rs 264 crore so far through the revised fixed deposit scheme which it launched in August this year. The company is authorised to raise Rs 1,300 crore from the revised scheme. Meanwhile, Jaguar Land Rover received as much as 170 million pounds ($286 million) as a five-year working capital facility from General Electric Co.'s GE Capital division, the lender said on 16 November 2009. Tata Motors the owner of Jaguar Land Rover, is hopeful of turning around the unprofitable luxury unit as it cuts costs to battle a slump in sales during the global recession.

Car sales in India rose an annual 34% to 132,615 units in October 2009, boosted by festival demand and easier availability of loans, an industry body said on Wednesday 11 November 2009. Sales of trucks and buses, a gauge of economic activity, rose 52% to 42,562 units in October 2009, the data showed.

Rate sensitive realty shares rose on bargain hunting. Omaxe, Unitech, DLF, Lok Housing, rose by between 0.2% to 5.66%.

The RBI, late last month, raised the provisioning requirements for loans to commercial real estate from 0.4% to 1% at a regular monetary policy review. The latest RBI move will result in increase in borrowing costs for realty firms which depend heavily on borrowing. In view of large increase in credit to the commercial real estate sector over the last one year and the extent of restructured advances in this sector, it would be prudent to build cushion against likely non-performing assets (NPAs), the central bank said in its quarterly policy review.

Cals Refineries clocked the highest volume of 3.33 crore shares on BSE. Suzlon Energy (1.21 crore shares), Ispat Industries (1.15 crore shares), Karuturi Global (0.98 crore shares) and Mahindra Satyam (0.87 crore shares) were the other volume toppers in that order.

Reliance Capital clocked the highest turnover of Rs 275.67 crore on BSE. JSW Steel (Rs 194.89 crore), Reliance Industries (Rs 178.04 crore), Tata Steel (Rs 141.86 crore) and DLF (Rs 109.29 crore) were the other turnover toppers in that order.

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Indian Stock Markets BSE NSE Review 18 Nov 09

Markets traded under the custody of volatility on Wednesday, resulting in an end of a three-day winning streak for the benchmark indices. Global equities failed to offer any assistance and wide divergence in opinion regarding markets’ direction led to constant swings in the benchmarks. After a shaky start, market went on the front foot by mid-morning trades, but had to soon succumb to the pace of selling activity. Since then every attempt to recover was promptly attacked and finally it was volatility that won the game in the last half hour of trade. Unlike benchmark indices, broader indices handled the pressure quite well and managed to pocket respectable gains. Metal, fast moving consumer goods and software shares played a crucial role in capping major losses on the bourses, while the day’s restlessness can be mainly attributed to stocks from oil & gas, banking and capital goods space. Finally, the 30-share BSE Sensex dropped 51.87 points or 0.30% to end at 16,998.78, while the S&P CNX Nifty slipped 7.55 points or 0.15% to settle at 5054.70.

The market breadth was in favor of advances. 1598 shares ended in the green, 1166 shares ended in the red and 82 shares remained unchanged.

The Sensex touched a high and a low of 17,098.79 and 16,958.41, respectively. Tata Motors up 3.14%, Tata Steel up 1.68%, ITC up 1.61%, Infosys Technologies up 1.54% and Jaiprakash Associates up 1.06% were the main gainers on the Sensex.

Rel Infra down 3.2%, L&T down 1.72%, ICICI Bank down 1.47%, RIL down 1.47% and Grasim Inds down 1.17% were the main losers on the benchmark.

The BSE Midcap and Smallcap indices gained 0.29% and 0.80%, respectively.

Indian economy seems to be recovering gradually but consistently and the result is being witnessed in government’s tax revenue too. Government’s net direct tax collections during the first seven months of the present fiscal (April- October 2009) stood at Rs 1,73,447 crore compared with Rs 1,66,905 crore in the same period last fiscal, thus registering a growth of 3.92%.

Looking at the disaggregate level, growth in corporate taxes was 4.59% at Rs 1,09,996 crore against Rs 1,05,174 crore a year ago while personal income tax collection grew at 2.87% at Rs 63,195 crore as against Rs 61,433 crore a year ago. The government said in a release that lower growth in net collection was mainly on account of higher tax refund outgo of 63.95% at Rs 33,137 crore compared with Rs 20,212 crore last fiscal.

Among sectoral indices on the BSE, Metal up 1.2%, Fast Moving Consumer Goods (FMCG) up 0.73%, Information Technology (IT) up 0.7%, Realty up 0.67% and Consumer Durables (CD) up 0.61% were the main gainers.

Ispat Inds (up 4.21%) from Metal, ITC (up 1.61%) from FMCG, Infosys (up 1.54%) from IT, Sobha Developers (up 5.45%) from Realty and Blue Star (up 0.93%) from CD were the main gainers on the respective indices.

Oil & Gas down 0.84%, Bankex down 0.78%, Capital Goods (CG) down 0.66%, Public Sector Undertaking (PSU) down 0.2% and Power down 0.1% were the main losers in the sectoral space.

Confederation of Indian Industries has said that India’s economic growth was likely to exceed the 6% mark in the current fiscal in wake of pick up in demand across sectors. The industry body concluded after a summit in Mumbai that the economy was getting back on track and was sequentially improving.

Participants at the summit said that the projects which had been placed on the backburner after the financial crisis surfaced were slowly coming back on the table. It was observed that while the bank credit growth remained sluggish, there have been alternative sources of finance from the capital market and foreign borrowings.

The S&P CNX Nifty slipped 7.55 points or 0.15% to settle at 5054.70. The index touched a high and a low of 5079.30 and 5041.65, respectively.

IDFC up 3.98%, Tata Motors up 3.15%, Jindal Steel up 2.98%, Ranbaxy up 2.12% and ABB up 1.72% were the main gainers on the Nifty.

Rel Infra down 3.79%, Sun Pharma down 1.97%, ICICI Bank down 1.91%, L&T down 1.74% and RIL down 1.47% were the main losers on the Nifty.

The government has cleared 17 foreign direct investment (FDI) proposals involving a total investment of Rs1,158.78 crore. Among the major proposals which were approved are the FDI applications of the world's largest steelmaker ArcelorMittal and ductile iron pipe maker Electrosteel Castings, the government said in a statement.

The government has allowed ArcelorMittal to pick additional stakes in Uttam Galva with an FDI of Rs 503.37 crore. The Kolkata-based Electrosteel Castings has been allowed to issue eligible securities including equity shares or non-convertible debt instruments along with warrants on a private placement basis which would amount to an FDI worth Rs 600 crore.

European markets were trading higher. Britain’s FTSE 100 gained 0.30%, France’s CAC 40 rose 0.58% and Germany’s DAX added 0.50%.

Asian markets ended mixed as investors turned cautious following the recent advance in the region’s markets. Marketmen remained worried that recovery process of the global economy is still going to be painful and grinding. Also, there was a lack of conviction among many investors about the market’s direction.

Hang Seng declined 0.32% to 22,840.33, Nikkei 225 dropped 0.55% to 9,676.80 and Straits Times plunged 0.72% to 2,745.04.

On the other hand, Shanghai Composite added 0.62% to 3,303.23, Seoul Composite rose 1.13% to 1,603.97 and Taiwan Weighted surged 0.43% to 7,766.69.

Industrial production in the US rose less than expected in October, once again suggesting that recovery was unlikely to be a smooth upward curve and giving the Federal Reserve more reason to keep the interest rates at near zero level for an extended period to support the economy.

Total output at US factories, mines and utilities increased marginally by 0.1% in the month of October. The flat growth came after three months of strong performance in which the average gain was 0.9%. In August, production rose 1.2% while over the third quarter, the net gain was 5.2% compared with the same period of 2008.

There was not much substance in disaggregate data either which showed that manufacturing output witnessed a decline of 0.1% compared with the previous month while output from mines dropped 0.2%. The support came from utilities where production rose 1.6% on monthly basis.

Source : Livemint.com

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buy BHEL

BHEL is a public sector undertaking (PSU) managed like private companies. “It is highly profitable due to monopoly in various sectors. Research & developments are leading to greater highs in product quality and performances. BHEL also has strong presence in overseas markets and is a good stock for investment,” says Surana.

Our recommendation :

IT has been consolidating at current levels investors should add on dips for a decent 10-15% returns in the next 3 months time frame.

Source : ET.com

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Buy PNB

PNB’s 1HFY10 performance has been by far the best among PSU banks with strong business growth coupled with improved margins.

“While an extensive branch network should continue to aid PNB to deliver robust business growth, the relatively high CASA ratio should ensure better NIMs, compared to its peers. The technology initiatives (100% CBS implementation) along with prudent lending practices would also help towards keeping costs under check and maintain asset quality,” says Kapur.

OUR RECOMMENDATION :

Investors should buy on dips for a target of 1200 in a 12 months time frame.

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Buy L & T

L&T is in diversified business activities with a great future potential. It is also cost effective & profitable. “The management is highly professional and it is not a family business. The company is expected to do very well due to its presence and dominance in most of the infrastructure-related areas,” informs Atul Surana, Certified Financial Planner & MD of Mangalore-based Catalyst Financial Planning.

OUR RECOMMENDATION :

L&T has always been an investors delight. Buy on dips and hold for a target price of 2500 in a years time. The stock is consolidating around 1600 levels and is poised to jump to next level after the Q3 results.

In a weak market it does not all much unlike other stocks which gives a support to move up once the market trend moves up

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Buy REC

REC has consistently delivered healthy core performance with strong loan growth coupled with high NIMs and improved asset quality. A strong sanction pipeline of nearly Rs 80,000 crore built over the last few years provides strong visibility on its disbursement growth outlook for the coming years. REC has also received approval from GoI for its Follow-on Public Offer (FPO).

“GoI will divest 5% of its stake and 15% fresh equity dilution which will further provide fillip to the stock. Huge demand – supply gap in power is bound to result in a continuous demand for rural electrification projects. With decades of experience and expertise, REC is in a strong position to capture this forthcoming boom,” says Kapur.

Source : et

Indian Shares / Stock Markets BSE NSE Review 16 Nov 2009

The key benchmark indices surged as the US dollar weakened against its major rivals. Stocks rose across the globe. The BSE 30-share Sensex jumped 83.68 points or 1.09%. The BSE Sensex today, 16 November 2009, crossed the psychological 17,000 mark and S&P CNX Nifty breached the key 5,000 mark. Both these two key indices scaled their highest closing level in nearly one month

Banking, realty, metal and auto stocks rose. But IT stocks fell. The market breadth was strong.

The dollar slipped against major rivals on Monday, 16 November 2009, pressured by stepped-up rhetoric from China, better-than-expected Japanese growth data and rising gold futures. The dollar index, which measures the greenback against six major currencies, was recently down 0.5% at 74.93.

The dollar was also under pressure after China's chief banking regulator on Sunday, 15 November 2009, criticized loose US monetary policy as leading to increased speculation. The yen, meanwhile, got a lift from better-than-expected Japanese gross domestic product data.

The dollar index has tumbled from a three-year high reached in March 2009, on speculation the US Federal Reserve will be slow in raising borrowing costs. With short-term interest rates very low, global traders have turned to borrowing funds cheaply in the US and then reinvesting the proceeds in equities and commodities, looking to lock in higher returns and benefiting from further erosion in the dollar. These so called US dollar carry trades have kept putting pressure on the dollar as investors short the currency to invest elsewhere.

There has been a solid surge in inflows in emerging markets equity funds this year. But a strong rebound in dollar, if any, may result in unwinding of the so called US dollar carry trade positions by traders/institutions. This may hit emerging markets equities hard.

Cabinet Secretary KM Chandrasekhar today said food prices will moderate as supply constraints ease. He said the government is monitoring sugar prices and it will take more action to contain prices if needed.

There are no fears of government borrowing crowding out private borrowing in India, finance minister Pranab Mukherjee said at an industry conference on Monday.

The economy could expand between 6 and 7% in the year to March 2010 despite a bad monsoon, Mukherjee said on Saturday as data showed accelerating inflation in October. Speaking in the Sri Lankan capital Colombo, Mukherjee said there were risks to an early global economic recovery and signs asset price bubbles were re-emerging.

Inflation based on the wholesale price index accelerated in October 2009 from a month earlier on costlier minerals and fuels. On Saturday, the government switched to using monthly inflation data for all commodities with 1993/94 as the base year, from the earlier practice of announcing weekly price movement. The wholesale price index was up 1.34 % in October 2009 from a year earlier, compared with 0.5 % rise in September 2009 and 11.06 % jump a year ago. Food prices, however, declined by 1 % from the previous month's level, while minerals and industrial fuels were each costlier by 3%.

At its policy review last month, the Reserve Bank of India (RBI) lifted its inflation forecast to 6.5% for the end of 2009/10 fiscal year in March, but left policy rates unchanged. The RBI also laid the groundwork for a rise in interest rates by tightening credit to the commercial property sector and removed some of the emergency liquidity support steps that were extended to protect the economy from the global downturn.

Industrial output grew 9.1% in September 2009 from a year earlier, helped by stimulus and festival demand, and adding to the debate on the timing of exit policy. The RBI forecast the economy would expand 6% in 2009/10, below 6.5 % predicted by the prime minister's economic panel. It grew 6.7% last year, slowing sharply from 9% or more between 2005/06 and 2007/08.

Meanwhile, the government aims to sell shares of about 60 state-run firms in the coming years, with offers for NTPC and Rural Electrification Corp expected by end-March 2010, disinvestment Secretary Sunil Mitra said on Friday 1 November 2009. He also said the finance ministry was in talks with other ministries to launch public offers of Steel Authority of India, miner NMDC, Coal India and telecoms firm BSNL.

The cabinet will soon consider selling part of government's stake in Steel Authority of India and NMDC, Steel Minister Virbhadra Singh told reporters on Monday.

The cabinet recently approved a long-pending divestment policy that mandates at least 10% public holding in state-run firms and use the proceeds for social schemes until March 2012, to cut its fiscal deficit.

European shares advanced for the fourth straight session on Monday, with commodity stocks leading the gainers as raw material prices benefited from a weaker US dollar, but retailer H&M fell after weak October sales. The key benchmark indices in France, Germany and UK were up by between 0.81% to 1.44%.

New passenger car registrations in Europe rose 11.2% to 1.26 million in October 2009 year-on-year, driven by growth in the Western European markets, the European Automobile Manufacturers' Association said Monday.

Asian stocks gained on Monday after upbeat reports from US retailers underpinned confidence the global economy is recovering. The key benchmark indices in Hong Kong, South Korea, Singapore and Taiwan rose by between 1.3% to 2.08%.

China's Shanghai Composite Index jumped 2.74%, aided by economic data showing foreign direct investment (FDI) into China climbed for a third straight month. FDI rose 5.7% to $7.1 billion in October 2009, after rising 18.9% on year in September 2009, the state-run Xinhua news agency reported, citing data from the Ministry of Commerce. In the first ten months of the year foreign domestic investment totaled $70.87 billion, down 12.6% from a year earlier.

Data released last week showed China's industrial production and retail sales accelerated at faster than expected pace, although consumer and producer prices were generally softer than expected

China's economy is expected to grow by about 8.5 % next year while inflation will remain modest at about 2.5 %, indicating that monetary policy should remain appropriately loose to solidify the basis of the recovery, a key government think-tank said on Monday. The State Information Centre added that the risks of rapid credit growth could be contained and that a tightening of monetary policy would have only limited effectiveness in curbing asset price bubbles, in a report carried by the official China Securities Journal.

US President Barack Obama said on Monday that Washington was not trying to contain China's rise but said trade between the two giants needed to be more balanced. Addressing students at a town hall-style meeting in Shanghai on the first full day of his first trip to China, Obama said the notion that Washington and Beijing must be adversaries was not pre-destined.

Japan's Nikkei rose 0.21%. Japan's economy expanded at the fastest pace in more than two years in the third quarter, led by a rebound in domestic demand that may ease concern of a return to recession next year. Gross domestic product rose at an annual 4.8% pace, after a 2.7% gain in the second quarter, Cabinet Office figures showed today in Tokyo.

Meanwhile, Japanese Trade Minister Masayuki Naoshima apologized for speaking about price sensitive third-quarter GDP data to oil industry executives on Monday ahead of its official release in an embarrassment for a government that took power two months ago.

Trading in US index futures indicated Dow could gain 62 points at the opening bell on Monday, 16 November 2009.

US stocks rose on Friday, setting up a second straight week of gains, as upbeat retail news reinforced hopes for strong sales in the key holiday season. The Dow Jones Industrial Average roseor 73 points or 0.71%, to close at 10,270. The Nasdaq gained about 18 points or 0.87% at 2176, and the S&P 500 was up 6.24 points or 0.57% at 1093.

Obama said on Sunday the world economy was on a path to recovery but warned that failure to re-balance the global economic system would lead to further crises. Obama was addressing Asia Pacific leaders in Singapore.

Leaders of the 21-member Asia Pacific Economic Cooperation forum pledged on Sunday to conclude Doha global trade talks in 2010 and to reject protectionism, but dropped earlier draft references to "market-oriented exchange rates" and to emissions cuts.

Kansas City Fed President Thomas Hoenig said on Monday that the US economy still faced significant weaknesses and he urged policymakers to allow large financial institutions to fail if needed. Hoenig was speaking at a central bank event in Abu Dhabi, the capital of the United Arab Emirates.

The BSE 30-share Sensex rose 183.68 points or 1.09% to 17,032.51, its highest closing since 20 October 2009. At the day's high of 17083.20, the Sensex rose 234.37 points in mid-afternoon trade. The Sensex rose 44.28 points at the day's low of 16893.11 in early trade.

The S&P CNX Nifty rose 59.10 points or 1.18% to 5058.05, its highest closing since 21 October 2009. Nifty hit a high of 5073.20. Nifty November 2009 futures were at 5,055.20, at a discount of 2.85 points as compared to spot closing of 5,058.05. Turnover in NSE's futures & options (F&O) segment was Rs 58,411.07 crore, sharply lower than Rs 72,277.97 crore on Friday, 13 November 2009.

The market breadth, indicating the overall health of the market was strong. On BSE, 1752 shares advanced as compared with 1013 that declined. A total of 90 shares remained unchanged.

From the 30 share Sensex pack; 26 rose and rest fell.

BSE clocked a turnover of Rs 4377 crore, lower than Rs 5312.04 crore on Friday, 13 November 2009.

As per provisional data, foreign funds today, 16 November 2009, bought equities worth a net Rs 544.64 crore. Domestic funds offloaded shares worth a net Rs 294.64 crore

The market has risen sharply in the past few days. From a recent low of 15,404.94 on 3 November 2009, the Sensex has jumped 1,627.57 points or 10.56% in a short period of time, at current 17,032.51 on 16 November 2009. The Sensex is up 7385.20 points or 76.55% in calendar year 2009, as on 16 November 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 8872.11 points or 108.72% as on 16 November 2009.

Coming back to today's trade, the BSE Mid-Cap index rose 1.14% and the BSE Small-cap index rose 1.22%. Both the indices outperformed the Sensex.

The BSE Realty index (up 3.15%), the BSE Auto index (up 2.9%), the BSE Metal index (up 2.41%), the BSE Oil & Gas index (up 1.37%), the BSE Consumer Durables index (up 1.16%), outperformed the Sensex.

The BSE IT index (down 0.28%), the BSE Teck index (up 0.21%), the BSE Capital Goods index (up 0.69%), the BSE PSU index (up 0.7%), the BSE FMCG index (up 0.76%), the BSE Healthcare index (up 0.83%),the BSE Power index (up 0.92%), the BSE Bankex (up 0.98%), underperformed the Sensex.

Energy major Reliance Industries (RIL) rose 1.47% to Rs 2147.75. But the stock came off the day's high of Rs 2158.80. RIL may reportedly join global oil majors in search of shale gas. RIL has been studying the breakthroughs and the new technologies that are being used in producing shale gas that is now a huge rage in the US, reports suggest.

Reliance Industries (RIL) on Friday offered to withdraw affidavits filed by seven of its directors, claiming they were unaware of the contents of the memorandum of understanding (MoU) signed between members of the Ambani family in 2005 for supply of gas from the Krishna-Godavari basin, only if Reliance Natural Resources (RNRL) agreed to withdraw an assertion in its affidavit that the RIL board had seen and approved the MoU. RIL and RNRL are currently fighting the gas price dispute in the supreme court.

RIL on 10 November 2009 said reports of a meeting between the billionaire Ambani brothers to settle a gas-pricing dispute were baseless. RIL said in a statement the matter would be decided by the Supreme Court, which is currently hearing the case.

RIL on Tuesday 10 November 2009 announced its first oil discovery in its exploration block in the Cambay Basin off Gujarat. Reliance holds 100% participating interest in the block. This block was awarded to Reliance under the fifth round of the New Exploration Licensing Policy.

India's largest engineering and construction firm by sales Larsen & Toubro rose 0.43% to Rs 1650.65. But the stock came off the day's high of Rs 1669. The company made a profit of Rs 86.14 crore by paring a third of its stake in software firm Mahindra Satyam. Larsen and Toubro (L&T) on Friday, 13 November 2009 sold 2.72 crore shares in Mahindra Satyam in two bulk deals at an average price of Rs 113.65 on BSE in opening trade.

Among other capital goods stocks, Bharat Heavy Electicals, ABB, BEML, Thermax rose by between 0.12% to 1.5%.

Metal stocks rose as a gauge of six metals traded on the London Metal Exchange, rose 0.27% on Friday, 13 November 2009. Sterlite Industries rose 3.55% even on reports a Texas judge has issued final approval of Grupo Mexico's plan to regain control of copper miner Asarco, ending a lengthy takeover battle with rival suitor Sterlite Industries. The ruling will return control of Asarco to Americas Mining Corporation, a Grupo Mexico subsidiary. The deal is expected to close by mid-December

National Aluminium Company rose 1.11%. The company recently hiked the prices of aluminium products by Rs 1000 a tonne reflecting the recent uptrend in prices on the London Metal Exchange.

Hindustan Zinc and Hindalco Industries rose by between 2.6% to 2.99%.

Bur NMDC fell 0.22% after the steel minister said disinvestment process in the state-run firm will begin in the current financial year.

Steel Authority of India (Sail) rose 0.91% after the steel minister said the cabinet will soon consider selling part of government's stake in Steel Authority of Steel. Meanwhile, Sail chairman today said the company has cut flat product prices by Rs 500 per tonne

Tata Steel, the world's eighth largest steelmaker by output, rose 2.65%. The company said on Thursday 12 November 2009 it approved a new convertible bonds offer in exchange for an existing $875 million securities to reduce costs and ease repayment obligations. The company said on 6 November 2009 steel sales at its Indian operations rose 38% to 462,000 tonnes in October 2009 over October 2008.

Demand for steel remains strong from auto, rural construction and infrastructure sectors. Also demand for construction grade steel has improved post monsoon season, and has resulted into higher sales.

Rate sensitive auto stocks rose as low interest rates and attractive benefits offered by companies pushed up sales in October 2009.

India's largest small car marker by sales Maruti Suzuki India rose 5.45%. The company's total sales grew 32.4% to 85415 units in October 2009, compared with 64490 units posted in the same month a year ago.

India's largest truck marker by sales Tata Motors rose 2.32%. Its UK unit Jaguar Land Rover is reportedly expected to announce on Monday that it has secured a 170-million-pound ($282.5 million) working capital facility from GE Capital.

India's second largest bike marker by sales Bajaj Auto rose 3.57%. Carlos Ghosn, chief executive of French car maker Renault and Japan's Nissan Motor Co, said on Tuesday an agreement had been signed with Bajaj Auto for a low-cost car which would come to India in 2012.

India's largest bike marker by sales Hero Honda Motors rose 3.82%. The company reported a marginal increase in October sales at 354,156 units as against 352,449 units in the same month last year

India's largest tractor maker by sales Mahindra & Mahindra 1.79%. The company's overall sales climbed 32% in October this year to 18,410 units against 13,935 units in the same month last year.

Car sales in India rose an annual 34% to 132,615 units in October 2009, boosted by festival demand and easier availability of loans, an industry body said on Wednesday 11 November 2009. Sales of trucks and buses, a gauge of economic activity, rose 52% to 42,562 units in October 2009, the data showed.

Rate sensitive realty shares rose on bargain hunting after a recent steep fall. Omaxe, Unitech, Indiabulls real Estate, DLF, Parsvnath Developers rose by between 1.19% to 4.54%.

Ansal Properties & Infrastructure surged 9.01% after the company's board approved allotment of 96.27 lakh equity shares to Mauritius-based IPRO Funds, a foreign fund, under preferential allotment.

Realty stocks corrected recently after the RBI, late last month, raised the provisioning requirements for loans to commercial real estate from 0.4% to 1% at a regular monetary policy review. The latest RBI move will result in increase in borrowing costs for realty firms which depend heavily on borrowing. In view of large increase in credit to the commercial real estate sector over the last one year and the extent of restructured advances in this sector, it would be prudent to build cushion against likely non-performing assets (NPAs), the central bank said in its quarterly policy review.

Banking shares rose on hopes of financial sector reforms. India's largest private sector bank by net profit ICICI Bank rose 1.04%. Its ADR rose 0.86% on Friday 13 November 2009. The bank's net profit rose 2.6% to Rs 1040.13 crore on a 12.7% decline in total income to Rs 8480.73 crore in Q2 September 2009 over Q2 September 2008. The result was announced during trading hours on 30 October 2009.

India's largest bank by net profit State Bank of India (SBI) rose 2%. State Bank of India said on 9 November 2009 said it had entered into an agreement with T. Rowe Price to sell a 6.5% holding each in UTI Asset Management Company and UTI Trustee Company. State Bank currently holds 25% in each of the companies and after the sale its holding would be reduced to 18.5%, it said in a statement.

SBI announced after market hours on Friday 6 November 2009 it has revised downwards interest rates on deposits by 25-50 basis points for a few maturities effective from 9 November 2009. The bank's consolidated net profit rose 28.29% to Rs 3,133.16 crore on 22% rise in consolidated income to Rs 33,101.65 crore in Q2 September 2009 over Q2 September 2008. The results were announced on 31 October 2009.

But, India's second largest private sector bank by net profit HDFC Bank was flat even as its ADR rose 2.82% on Friday.

India's largest dedicated home loan lender Housing Development Finance Corporation (HDFC) was flat at Rs 2760. The lender announced after market hours on Friday 13 November 2009 it has agreed to acquire approximately 41% in the fully diluted equity share capital of Credila Financial Services from DSP Merrill Lynch Capital.

Prime Minister Manmohan Singh said on Sunday, 8 November 2009, financial reforms, such as building up a domestic bond market and expanding foreign investment in sectors like insurance, would be pushed forward.

As per reports, the government plans to introduce two key bills in parliament by December 2009. It plans to introduce bills proposing the raising of foreign stake limits in insurers to 49% from the present 26% and opening up the pension sector to private and foreign firms.

Meanwhile, the Reserve Bank of India Deputy Governor Usha Thorat said on Monday the central bank will soon issue guidelines on provisioning for bad loans by banks

IT stocks fell on reports a new tax rule in the European Union (EU) will put a renewed squeeze on profit margins of companies such as Tata Consultancy Services, Infosys and Wipro. Starting 1 January 2010 the 27-nation bloc plans to impose value-added tax (VAT) on services delivered from non-EU nations such as India. A strong rupee also weighed on IT stocks.

India's second largest software company by sales Infosys fell 0.34% even as its ADR rose 2.85% on Friday. Infosys BPO, the business processing outsourcing subsidiary of Infosys Technologies, on Thursday announced the signing of a definitive agreement to acquire all of the outstanding interests of McCamish Systems LLC, a premier business process solutions provider, based in Atlanta, Georgia in the United States.

The acquisition is expected to be completed later this year subject to the satisfaction of certain closing conditions. The upfront consideration for the deal is $38 million with up to an additional $20 million payable to the sellers if McCamish Systems achieves certain financial targets in the future. The announcement was made before market hours on Thursday 12 November 2009.

India's largest software company by sales Tata Consultancy Services (TCS) fell 0.63%. The company recently secured a 150 million pounds software implementation contract for 15 years from Cardiff city council, UK.

Bur, India's third largest software company by sales Wipro rose 0.55% as its ADR rose 2.11% on Friday. Wipro, sees robust deal pipeline on the back of improving IT demand worldwide, Suresh Vaswani, joint chief executive said on Tuesday 10 November 2009. The company said on 5 November 2009 it had agreed to buy some personal care businesses of Yardley for about $45.5 million, adding to its consumer goods business. Wipro said it had signed an agreement with UK-based Lornamead group, which owns the Yardley brand, for the businesses in Asia, the Middle East, Australasia and some African markets.

Indian rupee rose on Monday, boosted by gains in regional stock markets and tracking broad weakness in the dollar. The partially convertible rupee was at 46.21/23, stronger than Friday's close of 46.31/32. A firm rupee adversely affects operating profit margins of IT firms as the sector derives a lion's share of revenue from exports.

UltraTech Cement, a unit of conglomerate Aditya Birla Group, rose 1.49%, paring gains after more than 8% jump in early trade after it absorbed sister unit Samruddhi Cement, to form the country's biggest cement firm. The move, flagged in October 2009, was approved by the boards of both companies on Sunday. In October, the group said it will hive off the cement business of flagship firm Grasim Industries into unit Samruddhi in a cashless transaction and later merge it with group firm UltraTech. Samruddhi shareholders will receive four shares of UltraTech for every seven held in Samruddhi. UltraTech will also issue 14.95 crore new shares, boosting its capital to Rs 274 crore. Shares of Grasim Industries rose 2.07%.

Among other cement stocks, ACC, Ambuja Cements and Birla Corporation rose by between 0.24% to 1.4%.

Some PSU stocks rose as Prime Minister Manmohan Singh on 5 November 2009, approved divestment in public sector companies to raise funds for social welfare. Chennai Petroleum, MTNL, Central Bank of India, Power Finance Corporation rose by between 0.3% to 2.46%.

Some construction shares rose as higher government spending on infrastructure sector in the Union Budget 2009-2010 to provide a stimulus to the economy, may result in increase order flow for construction. A government panel has approved eight road projects worth Rs 10880 crore ($2.34 billion), the finance ministry said in a statement late last week. Era Infra Engineering, Valech Engineering, Jaiprakash Associates, Gayatri Projects rose by between 0.71% to 13.77%.

FMCG stocks rose on bargain hunting. ITC, Hindustan Unilever, Dabur India, Marico rose by between 0.45% to 2.19%.

Telecom stocks rose as the process for auctioning third generation (3G) radio frequencies or spectrum that is vital for telecom companies to offer high-end services such as ultra fast internet and data services on the mobile, kicks off in New Delhi today with the pre-bid conference. India's second largest mobile services provider by sales Reliance Communication rose 3.05%. As per recent reports the company is in talks with Canadian firm Iseemedia Inc to introduce low-cost e-mail services on phones.

Bharti Airtel India's top mobile operator by sales rose 0.53% The company added 27 lakh users in October 2009, taking its total subscriber base to 11.32 crore. Idea Cellular rose 2.18%.

The Cellular Operators' Association of India (COAI) said last week its members added 1.02 crore users to their GSM networks in October, taking their total subscribers to 35.52 crore.

During the meet, officials from the communication ministry will seek to clarify as well as address all queries regarding the 3G and WiMAX auctions which are scheduled to begin in mid-January 2010, reports suggest

India's largest thermal power producer by sales NTPC fell 0.16%. A 5% stake sale in state-run power producer could fetch the government Rs 8100 crore ($1.7 billion), Sunil Mitra, a senior finance ministry official, said on Friday 13 November 2009.

Last month, the cabinet approved share sales for NTPC, Satluj Jal Vidyut Nigam and Rural Electrification Corp. Mitra said. Rural Electrification Corporation rose 5.54%.

But among other power stocks, Torrent Power, Reliance Infrastructure Reliance Power and GVK Power & Infrastructure rose by between 0.34% to 5.33%.

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