Mkt Outlook,Stk analysis from BusinessLine

Index Outlook

Sensex (10527.8)
Last week’s rout in stock prices was on a scale that none of us have witnessed in our lifetimes. Sample this, the Dow Jones Industrial Average declined 18 percent, its worst weekly decline ever, Nikkei crashed 18 per cent in just three sessions, the unshakeable DAX, the German stock index, recorded a 21 per cent weekly decline and the volatility index of Chicago Board Options Exchange, the investor’s fear gauge, touched 77 on Friday. This index has not risen beyond 48 in the last two decades.
It was capitulation with a capital C as investors abandoned equities and stock prices were sucked in to a black hole. The decline was broad-based, giving investors no place to hide. The selling was spear-headed by the FIIs who have already pulled out close to $1 billion in October so far. The tally of net outflow this year has crossed $10 billion. Static open interest shows that traders are equally bewildered by the market’s moves.
With the breaking of the 12000 bastion and the 2000-point weekly slump, the possibility of resumption of the structural up-trend in the near future appears remote. Sensex closed emphatically below 12000 on Monday and went on to record a trough at 10240 on Friday. Oscillators have moved deep in to over sold zone, but the downward momentum is not showing any sign of abating yet.
The movement of the index last week has resolved the quandary that we were mulling over – whether the second leg of the correction from 21206 peak has ended at 15579 or if it will continue for a few more months resulting in a range between 12000 and 16000. The breadth, swiftness and the wide-spread devastation of the move last week leaves no room for doubt that the third wave from the 21206 is currently unfolding. We had indicated in our column dated September 28, 2008 that the minimum target for this wave was 10207. This target was achieved last week. Since we are reviewing the long-term counts in a separate column, we will stick to medium and short-term view in this week’s index outlook.
Both medium and short term trends are down. However, the index is approaching a band where a cluster of long-term supports are positioned. The levels where medium-term supports can be expected are - 9972 (July 2006 trough), 9700 (61.8 per cent retracement of the up-move from 2001 and 8800 (trough formed in June 2006). Even if the vertical decline halts at either of these levels, there would be a period of intense volatility for a few weeks before a bottom is formed.
The resistances for the week ahead would be at 11433 and then 11753. Failure to move above these resistances would mean that the down trend would continue. The negative medium term outlook will be mitigated only on a weekly close above 12500.

Nifty (3279.9)

Nifty declined below the 3800 level on Monday and recorded a trough at 3198.9 on Friday, way below our outermost medium-term target. Though we were anticipating a decline, the swiftness definitely took us by surprise. The supports on the long-term charts for the Nifty are now at 2940 (61.8 per cent retracement of the up-move from 2001) and then at 2595 (June 2006 trough). The medium term outlook will turn positive only on a weekly close above 3800.
Near term resistances would be at 3530 and 3610. Reversal below these levels will indicate further weakness. Subsequent resistance is at 3879.Global Cues
Most global indices lost between 15 to 25 per cent last week, proclaiming it as the worst week ever for stocks. The DJIA sliced through the support band between 10200 and 9900 to an intra week trough at 7882. The four-year old bull-market in DJIA has been decimated with the index just a whisker short of the 2003 trough at 7416. We are now staring at the possibility of a multi-year bear market in DJIA that corrects the entire up-move from 1932. The situation is similar in FTSE. Italy’s MIBTEL index has already reached its 2003 trough.
Asian and Latin American markets were relatively resilient, having yielded about 60 per cent of the gains made since 2003. Nikkei is the only exception, the index is just 600 points above its 2003 trough. Commodities too reeled as risk aversion spread to all asset classes. CRB index declined 9 per cent. This index has now given up more than 50 per cent of the gains made since 2001.
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STOCKS: Infosys Technologies: BuyInvestors with a one-two year perspective can buy the shares of Infosys Technologies, considering its attractive valuations and reasonable business prospects, despite the current rough ...

TECHNICAL ANALYSIS: Query Corner: What the charts sayI have purchased Themis Medicare and Kalindee Rail Nirman for Rs 250 and Rs 215 respectively. Please give your view on these ...

INTERVIEW: What the CRR cut means for investorsThe RBI’s recent move to cut the cash reserve ratio by 150 basis points was welcomed by many participants in the debt market as it is expected to infuse much wanted liquidity to the extent of Rs 60,000 crore into the banking

STOCK MARKETS: Some lessons from the dotcom crashAll said and done, when it comes to the stock market, it is the dotcom bubble that burst at the beginning of the new millennium that springs to mind. This fall did drive home an important tenet — valuations always matter, no matter how ...

Reliance Infra (October 12, 2008)
Query Corner: What the charts say (October 12, 2008)
Index Outlook (October 12, 2008)
Reliance (October 12, 2008)
SBI (October 12, 2008)
Tata Steel (October 12, 2008)
Infosys (October 12, 2008)
Unitech (October 12, 2008)

STOCKS: Union Bank of India: BuyInvestors can consider buying the Union Bank of India stock with an investment horizon of more than a year. A low price-to-book value, with a high return on equity, indicates the stock to be relatively undervalued. Investors should, however, ...

STOCKS: GlaxoSmithKline Consumer Healthcare: BuyFMCG stocks have withstood the market fall better than others, but with the ongoing ‘flight to safety’ bidding up their prices, frontline stocks in the sector are now quite expensive in relation to the rest of the ...

DERIVATIVES MARKETS: Another volatile swing on the cards for NiftyBears tightened their grip heavily on the markets causing one of the steepest falls in the history of ...

Stocks now valued at 2005 levelViews differ on whether valuations are attractive

ICICI Bank sends SMS to allay fears of depositors

Source:BusinessLine.

Infy Q2 marginally above estimates, RIL gas block has 40 Tcf gas reserves

Infy Q2 marginally above estimates
Infosys Q2 net up 30.2%, will not increase bid for Axon
Infy plays it safe
Infosys Q2 net up at Rs 1432 cr Declares 200% interim Infosys headcount rises above 1 lakh
Infosys FY09 dollar term guidance seen under pressure

The Spetember’08 quarter results of Infosys Technologies are marginally above analyst estimates. A weaker rupee against the dollar aided 11.6 per cent sequential growth in revenue while net profit rose by 10 per cent.

Infosys also reported improved operating profitability during the September quarter. Operating margin expanded by 264 basis points sequentially (QoQ) and 184 bps year-on-year to 33.1 per cent. Net margin showed a marginal drop of over 40 bps to 26.4 per cent sequentially and annually.

As hinted by a report in ET today, Infosys recorded a decline in its new client additions. These reduced to 40 in the September quarter from 49 a quarter ago and 48 a year ago. Though Infosys has given robust number for the latest ended quarter, it has cut its dollar guidance for FY’09 by over 5 per cent citing the global macroeconomic turmoil. For FY’09, it expects EPS to be $2.24, down from $2.32 earlier. Revenue is expected to be $4.72-4.81 billion, down from earlier estimation of $4.97-5.05 billion. Going by its revised guidance, Infosys now expects its revenue to grow by just over 13 per cent annually for FY’09. The stock was down 6 per cent to Rs 1,176 on BSE in the early morning trade.
--------------------------------------------
RIL gas block has 40 Tcf gas reserves

Reliance Industries' prolific D6 block in Krishna Godavari basin off the east coast contains in-place reserves of 40 Trillion cubic feet, said the firm's junior partner Niko Resources.

The company has made 20 gas and one oil discovery in the 7,645 sqkm KG-DWN-98/3 or D6 block in deep-sea of Bay of Bengal, said Edward S Sampson, Chairman of Board, President and CEO of Niko in analyst calls. These discoveries have resulted "in 40 Tcf gas in-place," he said.

Reliance is the operator of the block with 90 per cent stake, while Niko has the remaining 10 per cent. Dhirubhai-1 and 3 gas finds, the two discoveries that are being put into production in the first phase, would start pumping gas by December/January and by 2010 would almost double availability of gas in the country. The two fields would by mid-2009 produce 40 million standard cubic meters per day of gas, which would be doubled by 2010. Development plan has been submitted for nine out of the 15 satellite discoveries in the block, Sampson said. "40 additional exploration prospects are being targeted." Reliance is investing USD 5.2 billion in developing Dhirubhai-1 and 3 discoveries and would pump in an additional USD 3.5 billion to extend the peak output to 7-8 years.

The satellite fields would produce about 25 mmscmd, while another 9 mmscmd gas would be produced from the MA oil field in the same block. Reliance, last month started producing oil from the MA field and the output is expected to reach 20,000 barrels per day in one month from the current 5,500 bpd. Gas flowing along with the oil is currently being re-injected into the wells and this gas would flow together with Dhirubhai-1 and 3 gas. Peak oil output of 40,000 bpd from MA would be achieved in 6-8 quarters, he said.

Other CORP stories::::
Higher NPAs, slow biz growth troubling ICICI stock
Gold set to breach Rs 15,000 mark by Diwali
ICICI Bank facing no liquidity crisis: Chanda Kochhar
Re closes stronger at 48.12/17
Citi, Goldman see RBI easing liquidity

No unusual activity seen: SEBI
Japanese insurer files for bankruptcy
JSW to become India's largest pvt sector steel maker by Dec
Poor data inflow may delay new monthly WPI
ICICI Bank plunges 26 per cent
RIL hits 52-week low of Rs 1,480

Source:SIfy,ET,BS etc

Inflation rate slips to 11.80%, RBI cuts CRR by 150bps, IIP dn to 1.3 percent

Inflation rate slips to 11.80%
Inflation falls to 11.8%
Inflation at 11.80%; down from 11.99 WoW

Inflation inched down to 11.80 per cent for the week ending September 27, compared to 11.99 per cent in the week before.
The rate was below a median forecast of 11.98 per cent in a Reuters poll of analysts.

Inflation for the week ended August 2 was revised up to 12.91 per cent from 12.44 per cent.
The annual inflation rate was 3.36 per cent during the corresponding week of the previous year.

The wholesale price index is more closely watched than the consumer price index, which is published monthly, because it covers more number of products and is released weekly.
-----------------------------------
RBI cuts CRR by 150bps, to inject Rs 60,000cr tomorrow
RBI cuts CRR by another 100 bps
RBI cuts CRR to 7.5%
Factoring in the deterioration in the global financial environment, the Reserve Bank of India (RBI) today announced an additional 100 basis point reduction in the cash reserve ratio (CRR), or the proportion of deposits banks set aside. The move is aimed at injecting more liquidity into the system

On Monday, RBI had announced a 50 basis point reduction in CRR. Now, the CRR will fall to 7.5 per cent of the net demand and time liabilities, against 9 per cent at present, from the fortnight starting tomorrow. With today’s move, RBI said, Rs 60,000 crore will be injected into the system, instead of Rs 20,000 crore due to the 50 basis point cut announced earlier.
“This measure was undertaken with a view to injecting liquidity into domestic financial markets so as to alleviate the pressures brought on by the deterioration in the global financial environment. In the ensuing days, the global situation has worsened further. International stock markets and money markets had been adversely affected in a significant manner. Central banks across the world have responded to these extraordinary developments by synchronised policy actions including measures for liquidity infusion,” RBI said in a statement this morning.
In a coordinated move the US Federal Reserve, Bank of England, the European Central Bank and the Chinese central bank had lowered interest rates on Wednesday in the wake of the global financial turmoil.
In India, the call rates have stayed in double-digit zone. Rates had touched a high of 17 per cent following the payment of advance tax by companies. Today, according to data on the Clearing Corporation of India website, at 11.30 AM, the weighted average call rate was 19.77 per cent, with rates in the range of 11-23 per cent.
The cut, however, failed to cheer the stock markets, with the BSE Sensex 805 points down at 10,521 at noon. According to Bloomberg data, the rupee fell to an all-time low of 49.26 against the US dollar as foreign institutional investors have been pulling out money from the Indian stock markets.
The statement said that RBI is ready to respond swiftly to meet any liquidity requirements that may arise in the context of the highly volatile external situation. “The Reserve Bank is monitoring developments closely and continuously and would respond swiftly and even preemptively to any adverse external developments impinging on domestic financial stability, price stability and inflation expectations and the continuation of the growth momentum of the Indian economy. The Reserve Bank is committed to maintaining financial stability and active and flexible liquidity management using all policy instruments is an integral part of this objective,” the press release said.
In addition, it sought to comfort the market by saying that the macroeconomic fundamentals of the Indian economy remained “strong and resilient and that India's financial system is sound, well-capitalised and well-regulated”. It added, “Money and forex markets in India have been operating in a relatively orderly manner. The current domestic market conditions are essentially a reflection of the adverse developments and extreme uncertainty in international financial markets.”
RBI had not cut CRR since June 2003, when it was lowered 25 basis points to 4.50 per cent. The 150 basis point reduction is the steepest since 2001.
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Industrial growth slumped to 1.3% from 10.9% in August
Aug infrastructure output up 2.3 pc
August IIP at 1.3% vs 10.9% a year ago
Industrial growth nosedives to 1.3%

NEW DELHI: India's industrial growth slumped to 1.3 per cent in August this year, compared to a 10.9 per cent growth in August 2007, the government announced here Friday.

The figure was well below a forecast for growth of 6.1 per cent in a Reuters poll of economists. Output growth has fallen from the double-digit levels seen early last year as tight monetary policy and a stronger rupee lowered demand in the economy. Manufacturing production rose 1.1 per cent in August from a year earlier. Industrial output rose 8.1 percent in fiscal 2007/08 (April-March), compared with 11.6 percent in 2006/07.


Other Stories:
Rupee hits record low; RBI helps recovery
Chidambaram comments on markets’ free fall
JSW Steel Q2 output up 14%
Infosys Q2 net up at Rs 1432 cr

Source: ET,Sify,BS etc

Sensex ends 801 pts down on weak global mkts and declining IIP growth

Sensex ends 801 pts down on weak global markets and declining growth
Market retreats on dismal IIP growth at 1.3%
Inflation eases but no respite for markets; Sensex down 7%
Stock futures point to sharply lower Wall Street open

Investors, taking cues from bleeding global markets, pressed the panic button at the opening bell on the major Indian bourses this morning. As stock prices went tumbling down, the Sensex crashed by around 9.5% to 10,239.76 within the first few minutes.

Stockometer
Infosys Technologies reported a near 10% jump (quarter on quarter) in its net profit but the company's sales fell short of market expectations and the stock went down by over 17% to Rs 1040. Other IT majors and a host of old economy blue chips, including index heavyweights, too nosedived on selling pressure. Infosys Technologies, however, bounced back smartly - it even enjoyed a spell in the positive territory this afternoon - and significantly trimmed down its losses.
Top gainers
Just as it appeared that the Sensex would hit the 10% lower circuit and force a stoppage of trade, the Reserve Bank announced a surprise 150 basis point cut in Cash Reserve Ratio. The Sensex then staged a strong recovery and rose to a high of 10,904.13. The Nifty, which had plunged to 3198.95 in early trade, rallied to around 3400.
Worst losers
However, the recovery proved short-lived as dismal industrial production figures triggered another strong round of selling across the board. Thereafter, despite a couple of modest recoveries from lower levels, the benchmark indices Sensex and Nifty ended the session with huge losses today.
Scrip Scan
While the Sensex ended the day at 10,527.85 with a loss of 800.51 points or 7.07%, the Nifty settled at 3279.95 with a loss of 233.70 points or 6.65%.
Experts' Talk
Ranbaxy Laboratories (4.75%) and State Bank of India (2.3%) were the only gainers from the Sensex today. From the Nifty pack, except Ranbaxy and State Bank of India, the others ended in the negative zone.
Reliance Communications lost a little over 21%. ICICI Bank, despite regaining some lost ground, closed lower by as much as 19.7% today. Reliance Infrastructure lost 19.2%. Jaiprakash Associates eased by 16.25%. Tata Steel lost nearly 15%. Hindalco went down by 11.15%.
HDFC, DLF, BHEL and Larsen & Toubro lost 8% - 9%. Reliance Industries posted a loss of 7.4%. Hindustan Unilever, Wipro, Sterlite Industries, Grasim Industries, Bharti Airtel, Satyam Computer Services, NTPC, HDFC Bank, ACC, Mahindra & Mahindra, ONGC, Tata Motors, Tata Power, Tata Consultancy Services, Tata Motors, Maruti Suzuki and ITC also ended with sharp losses.

Suzlon Energy lost 17.65% today. Unitech (down 12.15%), Cairn India (down 11.9%) and Ambuja Cements (down 11.6%) also suffered heavy losses. Reliance Power, Tata Communications, HCL Technologies, Siemens, ABB, Zee Entertainment, SAIL, Cipla, Punjab National Bank, GAIL India, Sun Pharmaceuticals and Reliance Petroleum lost 5% - 9%.

Realty stocks Orbit Corporation, India Bulls Real Estate, HDIL, Mahindra Lifespace, Penland, Anant Raj Industries, Akruti City and Omaxe declined sharply.

Metal stocks Welspun Gujarat, Gujarat NRE Coke, Jindal Saw, Ispat Industries, Sesa Goa, Jindal Steel, Hindustan Zinc, Jai Corp and NMDC suffered sharp losses.

Among capital goods stocks, Elecon Engineering, Jyoti Structure, Punjab Lloyd, Usha Martin, Areva, Walchandnagar Industries, Alstom Projects, Reliance Industrial Infrastructure, Everest Kanto Cylinder, Crompton Greaves, Havells India, Gammon India, BEML, Bharat Bijli, AIA Engineering and Lakshmi Machine Works went down sharply.

Midcap and smallcap stocks were battered once again. Mirroring the sell-off, the Midcap and smallcap indices lost 8.34% and 7.31% respectively.

Tips to book profits in stock markets! Click here

The market breadth was very weak. Out of a total of 2619 stocks traded on BSE today, only 382 stocks closed on a positive note. 2189 stocks posted losses and 48 stocks ended flat.

Sensex sheds another 800pts, down over 50% from peak

Source:Sify,ET,BS etc

Mkt,Technology headlines frm Deadpresident and others

Results Calendar - Oct 10-11-13 2008

Hedge funds caused market crash ?
Poll Results - My Overall Portfolio is ...
Results Calendar - Oct 10-11-13 2008
Idea Cellular - Annual Report - 2007-2008
HOEC - Annual Director's Report - 2007-2008
Polaris Software - Annual Report - 2007-2008
Geodesic - Annual Director's Report - 2007-2008

SBI, ICICI Bank October 2008 futures at premium
Rupee bounces back
It's national bankruptcy for Iceland
British govt with a rescue act!
Post Session Commentary - Oct 8 2008
Late buying trims losses
Sensex off 13% from recent high
Marc Faber Commentary

For TAMIL lang viewers:
வைரஸ் விரட்டு
மணநாளுக்கென ஒரு தளம்
மனதில் உறுதி வேண்டும்
பாதையை மாற்ற ஹேக்கிங்

www.Labnol.Org
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Ubiquity Tutorial: How to Write a Simple BSE Sensex Tracker
A Good Looking Blogger Template for your Blogs
Google SMS Channels: Send SMS Text Messages to your Group for Free

http://www.techcrunch.com/
Angel Investor Ron Conway Emails His Portfolio Companies Over Financial Meltdown
This Week on CrunchBoard
Yahoo Closes At $13.76. What A Train Wreck.
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Source: Deadpresident, PKP, Labnol,Techcrunch blogs.

Most powerful women of India Inc - Business Today

COVER STORYOctober 19, 2008
Most powerful women in Indian business
In pics: 25 best women of India Inc.


Yet another edition of BT's most powerful women in business, together with the rising stars, the start-up heroines, the microfinance mavens and even the inheritors. The women listed here come from an amazing variety of academic and family backgrounds and have established themselves in an equally diverse range of industries despite the near-crippling drag of home and hearth.

Some were lucky to have been at the right place at the right time; one admits that she is not the sort of mother who packs their child's tiffin in the morning-and another is "quite unashamed" to say that she eased up on her career to be with her children when they needed her most. And look out for the rising star who takes her two-year-old daughter jetsetting as she shuttles between two cities in the US and her Indian headquarters, and for the lady who came back to India to be near her ailing mother-in-law-but succeeded with yet another start-up.

Consider: would this list have been possible 20 years ago? On the other hand, how far is the day when BT will list the 250 most powerful women in Indian business and not just 25? The answer to the first question is a definite no. The answer to the second depends on how India builds its infrastructure. Not the infrastructure of expressways and trans-harbour links, but the infrastructure of child care and crèches, schools that don't burden children with homework, on-call housekeeping services, et al. Today, if the child of a working couple falls ill or is let out from school early, or if the babysitter goes on French leave, who has to miss office? No prizes for guessing the correct answer.

Read the stories of BT's amazing women, and you will discover that there are no intellectual differences between men and women. But how many men with a PhD in theoretical nuclear physics or two post-graduate degrees from Yale and Harvard would choose to work for an MFI? The workplace brings with it another gender inequality: the woman rushing home to help her child with his or her homework cannot go out bonding or networking.

So, here's to a growing list of women achievers. May their tribe grow, may the list get longer and may they never have to tell our readers the best way to deal with a glass ceiling.

The top 25
They span generations and are there in every field, from tractors to television, from biscuits to banking, from HR to hospitals. Denied entry into a male bastion, they create another industry (as Kiran Mazumdar-Shaw of Biocon did). They love their saris and their cooking, but also frame the laws that govern the world of alpha-male stockbrokers. They are the most powerful women in the corporate world.

Amrita Patel64, Chairman, NDDB

Power to me means: Maintaining the highest standards of integrity at all times.My favourite life-after-work activity: I am actively involved in two movements—ecological security and rural healthcare.The best way to deal with a glass ceiling: Fortunately, I have not had to fight the glass ceiling. Hard work, commitment and caring in word and deed helps people overcome obstacles.Mantra for maintaining work-life balance: Meditation.
I am not a businesswoman,” says Amrita Patel, Chairman of National Dairy Development Board, the world’s largest dairy development programme, which involves over 12.4 million farmer families, 117,000 co-operative societies and procures 21.5 million litres of milk every day. “I’m in the business of putting other women into business and enabling them to earn a daily income,” says Patel, chairman since 1998. “We must ensure that we do not become importers,” she adds. Patel is behind a National Dairy Plan that looks at demand and supply up to 2021.

More Lists @ Most powerful women in Indian business


Top start-up women
The six start-up women chosen by BT this year are beacons of hope for thousands of women— and men?—who have similar dreams but lack a role model or simply need a prod to get going.
The top in business In pics: India Inc.’s best
On the power track In pics: The rising stars
For women, by women In pics: Women in MFIs
The thought leaders In pics: Top women thinkers
Papa don't preach In pic: The inheritors
The power list in retrospect

From BT archives
2007: Vinita Bali remains at top
2006: Magic at Britannia
2004: Arnavaj Aga remains at top
2003: India Inc's Ms Conscience
Most powerful women in Indian business
Nothing is impossible
For women, by women
The thought leaders
Papa don't preach
The power list in retrospect
The establishment

On the power track In pics: The rising stars
Doing their own thing In pics: Six start-up women
The thought leaders In pics: Top women thinkers

-------------------------------------
Other BT articles
Special
Saving Wall Street
Rachna Monga
After the turmoil, the US financial services sector waits for a bail-out. Whatever happens from here, it’s the death of blueblooded investment banking as we knew it.
Hello Dalal Street
Here comes the pain!

Jobs
Time to switch sectors?
Saumya Bhattacharya
Shortage of talent and demand for new skills is driving people to switch jobs across sectors.
A prescription for growth

Money
Riding the volatile times
K.R. Balasubramanyam
Market confidence has been hit by worldwide financial uncertainty. A beaten-down market and falling asset prices are hurting investors. How should you ride out the storm?
Fine-tune your portfolio
The bond of gains
Glitter Is back
No more cover
A shot of cash
MF scoreboard

From bankruptcy to laughing all the way to the bank
Changing skyline

More @ http://businesstoday.digitaltoday.in


Source:BT

RIL, ICICI Bk major contributors to the market fall

RIL, ICICI Bk major contributors to the market's fall

Sensex fell nearly 50% from its 52-week high of 21206.77 on January 10. It has fallen below 11,000 for the first time since August 2006. Out of the thirty stocks that contributed to the fall,
Reliance Industries, ICICI Bank, L&T, Reliance Communications, HDFC, Reliance Infrastructure, Tata Steel, SBI, JP Associates are the top ten contributors. Reliance Industries and ICICI Bank, alone, have contributed nearly 30% to the fall.

Reliance Industries, ICICI Bank, L&T and Reliance Communications have contributed 14.71%, 14.41%, 8.73% and 5.31%, respectively.

Biggest contributors to the fall from 21206.77 to 11000.


Name Contribution(pts) Contribution (%)
Reliance Ind -1502 14.71%
ICICI Bank -1443 14.14%
L&T -891 8.73%
Reliance Comm -562 5.51%
HDFC -444 4.35%
Reliance Infra -419 4.11%
Tata Steel -407 3.99%
SBI -390 3.82%
JP Assoc -376 3.68%
HDFC Bank -368 3.61%
DLF -325 3.18%
Infosys -317 3.10%
Sterlite Ind -308 3.02%
BHEL -244 2.39%
Bharti Airtel -230 2.25%
ITC -222 2.17%
ONGC -197 1.93%
Grasim -188 1.84%
NTPC -185 1.81%
Tata Power -182 1.78%
Hindalco -174 1.70%
Tata Motors -172 1.68%
TCS -159 1.55%
Satyam -157 1.54%
M&M -99 0.97%
Wipro -85 0.83%
ACC -63 0.61%
Ranbaxy -60 0.58%
Maruti Suzuki -56 0.55%
HUL -15 0.15%

---------------------------------------------
Moneycontrol Special: US PollsGet the Indian perspective. News & analysis updated daily by our reporters in the US
Infy Q2 net seen up 9.6% to Rs 1427.5cr
CRR cut may pep real estate developers
Re hits 6-yr low; near Rs 49/$ mark
FDA responds to subpoenas against Ranbaxy
Invt should take informed decisions: FM

'Little impact on India of global rate cuts'
US stocks end lower after emergency rate cut
World economy to slow sharply, led by US: IMF
Oil prices tumbled below $88 a barrel
China stocks open higher after rate cut
Heard on the Street


Source:ET,MC

Sensex pares losses to close above 11k, Dips below 11k in Intraday

ALERT: Fed orders emergency rate cut to 1.5 per cent
**************************************
Sensex pares losses to close above 11k (edited)
Sensex, Nifty break crucial supports levels
Sensex ends 367 pts down despite a strong recovery
Markets shows signs of pull-back, Sensex above 11K
Sensex ends down 367pts; Ranbaxy soars 9%
Indian economy is still strong
Rupee falls to nearly six-year low

Buying interest in largecaps helped benchmarks to recover from day’s lows but end in the negative terrain. However, midcaps and smallcap stocks continued to remain under selling pressure.

Bombay Stock Exchange’s Sensex ended at 11,405.73, down 367 points. The index touched an intra-day low of 10.740.76 and a high of 11,405.73. National Stock Exchange’s Nifty closed at 3533.35, down 93 points. The broader index touched a low of 3329.45 and high of 3604.40.

BSE Midcap Index closed 5.51 per cent lower and BSE Smallcap Index declined 5.09 per cent. Shares of Ranbaxy Laboratories reversed losses to surge 9.84 per cent on media reports the US Department of Justice had withdrawn a motion against the drugmaker, which was being probed for allegedly bringing adulterated and misbranded medications into the US. Tata Power (5.68%), DLF (2.48%), Mahindra & Mahindra (2.11%) and Maruti Suzuki (1.49%) were the other gainers in the 30-share index. Jaiprakash Associates (-9.41%), Wipro (-7.05%), State Bank of India (-6.61%), Satyam Computer (-6.07%) and Sterlite Industries (-6.07%) were under pressure. Market breadth remained weak through the day. On BSE, 2151 declines outnumbered 457 advances. (provisional)

European markets recover after shock rate cuts
Nikkei tumbles 9.4 pc in biggest 1-day fall since 1987
Tokyo stocks suffer worst crash in two decades
European stock markets slammed by financial crisis
Rupee at six year low on rate cuts

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Sensex ends 367 pts down despite a strong recovery

With global indices plunging to new multi-year lows on growing concerns over the financial mess, equities opened on a dismal note on the major Indian bourses this morning. Stocks cutting across sectors and size plunged sharply on heavy selling and sent the benchmark indices Sensex and Nifty to new lows in the process. Stockometer The Sensex, which had touched a historic high of 21,206.77 on 10 January this year, crashed to 10,740.76. The barometer's fall, despite some strong spells of buying here and there, has been quite rapid since July. Today's low is the benchmark's lowest since early August 2006. Top gainers Quite a few high profile investment bankers have fallen down in quick succession in recent weeks and investors, fearing more such collapses, are highly reluctant to enter the ring with purchase orders these days. Measures like the $700 billion bailout package, infusion of funds by central banks to improve liquidity, the recent 50 basis points cut in CRR, the market regulator's decision to lift curbs on FII investments through Participatory Notes have all failed to lift investor sentiment. Worst losers The fall this afternoon was so swift that it raised fears of the indices hitting the 10% lower circuit triggers. However, select blue chip stocks managed to garner support at lower levels, regained some lost ground and pulled the market out of its dismal levels.
While the Sensex ended the day at 11,328.36 with a loss of 366.88 points or 3.14%, the Nifty, which tanked to a low of 3329.45 in intra-day trades, closed at 3513.65, down 2.58% or 92.95 points from its previous closing mark.
Among Sensex stocks, Ranbaxy Laboratories (up 9.1% to Rs 279.25) rallied smartly following the US Department of Justice withdrawing a motion against the company. Tata Power ended with a handsome gain of 4.8% at Rs 804.60. Mahindra & Mahindra (2.75%) and Maruti Suzuki (2.65%) closed on a high note. DLF rallied sharply and ended with a gain of nearly 2%. Reliance Communications edged up marginally.
Nifty stocks Nalco (4.65%), SAIL (1.65%), Sun Pharmaceuticals (1.4%) and Cairn India (0.85%) closed on a firm note. Hero Honda ended with a small gain at Rs 872.50.
Jaiprakash Associates ended with a big loss of 9.9%. Wipro lost 7.9%. Sterlite Industries, ICICI Bank, State Bank of India, Tata Steel, Tata Motors, Satyam Computer Services, ITC and Tata Consultancy Services ended lower by 5% - 7%.
Hindustan Unilever, Hindalco, Larsen & Toubro, Infosys Technologies, HDFC, ACC, ONGC, Grasim Industries, Bharti Airtel, Reliance Industries and HDFC Bank also ended with sharp losses.
Suzlon Energy, despite regaining more than 50 per cent of its losses, ended lower by 8.95%. Zee Entertainment, BPCL, Siemens, Reliance Power, HCL Technologies, GAIL India, Cipla, Reliance Petroleum, Tata Communications, Ambuja Cements, ABB and Unitech closed with sharp losses. As several midcap and smallcap stocks tumbled on selling pressure, the market breadth was very weak today. Out of a total of 2,652 stocks traded on BSE, 2,165 stocks ended in the negative territory. 441 stocks posted gains and 46 stocks ended flat.
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SourcE: ET,Rediff,Sify,BS Etc.

SEBI removes curbs on P-Notes ,RBI cuts CRR by 50 bps

Alert:Wall Street tumbles; Dow falls below 10000
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SEBI removes curbs on P-Notes
Sebi lifts curbs on P-Notes
P-note norms revised; no cap in ODIs
SEBI removes restrictions on P-Notes

ET:
The Securities and Exchange Board of India on Monday did a U-turn by doing away with the restrictions on issue of participatory notes by fore
ign institutional investors against securities, including derivatives, as underlying.
The move seems aimed at reversing the foreign fund outflows in recent times due to the credit crisis in the US and spread to Europe. The decision, as SEBI chief CB Bhave put it, was in view of the current market conditions. Bombay Stock Exchange’s today closed below the 12,000 mark. The 30-share index shed 724.62 points or 5.78 per cent to close at 11,801.70, but off the low of 11,732.97. National Stock Exchange’s 50-share Nifty settled at 3602.35, sharply down 215.95 points or 5.66 per cent from the previous day’s close. In October last year, the markets regulator had put a 40 per cent cap on FIIs’ total asset holding via participatory notes or overseas derivatives instruments and stopped them from issuing fresh P-notes or renewal of old ones. SEBI had given FIIs an 18-month deadline ending in March 2009 to do the needful. The moved was aimed to keep track of foreign flows into the country. However, the market regulator’s decision to scrap the restriction on P-notes holding can be debated in times when the world markets are faced with a liquidity crisis and plumbing lows. There could only be a short-term bounce back and a long-term benefit for the market, say marketmen. There could hardly be any major trend reversal in the market as FIIs are pulling out persistently from the emerging market like India, on the worries that most of the major economies heading towards recession following the liquidity crunch, said a senior official with a global investment firm. “However, the move is positive for long-term but in this environment we don't think any major positive change in the domestic market until and unless global crisis settles down.” According to Amitabh Chakraborty, president-equity, Religare Securities, “This should be a positive for the market, although majority of the FIIs are way below the 40% limit today, and hence sufficient headroom already exists for FII investment through the P-note route. FII eligibility criteria remain unchanged.” “We believe that a short term bounce back is likely, as the US is in an oversold zone and a sharp relief rally is possible there, but we remain cautious. While a short term spike of 10 to 15 percent in Sensex can't be ruled out, we are seeing market bottoming out at about 9000-10000, given our Sensex earnings estimates of 10-12% in FY2009 and historically market had bottomed out at about 9-10x forward earnings,” Chakraborty said of the markets. However, Anand Tandon, director of equities, Brics Securities, was sceptical about the SEBI move having any great impact on the markets, “One thing you need to understand that global situation is the dominant factor now. The impact of removing restrictions on overseas derivative instruments would be virtually a muted one considering the unprecedented global financial crisis. It seems to be pertinent move considering the current market situation, but I doubt that it would trigger massive inflows of FIIs. Though it signals of almost an ‘all-norms-relaxed’ move, the situation in the US is still gloomy and impact of which cannot be ruled out the domestic market movement,” Tandon said. The market’s fall from 21206.77 on Jan 10 this year started with trouble brewing in the US following defaults on home loans or the sub-prime crisis and spreading to financial institutions having exposure to this market. G Venkatramani, executive director, Nextgen Capital, said, “This could trigger a short-term recovery in the market but would not hold the downtrend for a long as the global markets are still wobbling with negative vibes though the domestic fundamentals are still sound.” According to Euromax Capital Services, “As the asset value has been falling sharply, this 40 per cent is really very less for the market. Thus, SEBI's move should be taken as a positive one, but a greater impact is less possible due to meagre liquidity in the system.”
SEBI revises P-note norms; lifts 40% cap in ODIs

Sebi revises P-note norms, scraps ODI restrictions

The Sebi Board met today in the backdrop of the global financial turbulence. The meeting took stock of the impact of the turbulence on the Indian capital markets and evolve suitable policy responses.
CB Bhave, Chairman, Securities and Exchange Board of India (SEBI), said norms on participatory notes have been revised and the limit on overseas-derivative instruments (ODIs) in both cash and derivates will be removed. “The 40% cap on assets under custody in cash market will be removed,” he said.
Earlier, in October 2007, the Sebi had banned fresh issue of P-Notes by FIIs. This was done to check the significant flow of foreign funds into the Indian stock markets. The excess liquidity was difficult for the financial market regulators to handle.

Here is a verbatim transcript of CB Bhave's address to media persons. Also see the accompanying video.

We had received a lot of feedback from various stakeholders. The Board considered all the views that had been received as well as the proposal that we had put up. It has been decided that the SME exchange can be either in the form of a new exchange, or an exchange trading platform of an existing exchange, and that there will be competition in this area. So, it is not going to be one exchange that would be licensed by us to be set up as an SME exchange.

The board also decided that the eligibility criteria would be made public by us. Then the exchange, which is newly setup for this purpose, or an exchange that is proposing to setup an existing exchange, which is proposing to set up a platform, can apply and Sebi will then consider those applications.

The board also considered the issue of norms that we have laid down for shareholding by individual shareholders in the demutualised stock exchanges. Again a discussion paper on this was put out by Sebi. As you are all aware the proposal in that discussion paper was to enhance this limit from 5% to 15% for some category of shareholders.

So, the board approved this limit from 5% to 15% for six categories i.e. public financial institutions, stock exchanges, depositories, clearing corporations, banks, and insurance companies.

It also discussed the issue of the entire framework that governs the participation in our markets by what we call FIIs, or foreign institutional investors. The board was of the view that the entire structure needs a comprehensive review. For this purpose, it was decided that we will put out a policy paper, which will be in the public domain for receiving comments from people.

The board also reviewed the decisions of October 2007 with regard to the offshore derivative instruments, or Participatory Notes as they are popularly called. It was decided at that time that these decisions would be subsequently reviewed on the basis of the data that we receive.

On the basis of this review, the board decided that the restrictions on ODIs on derivatives will be removed. Also, the restrictions on having only 40% ODI in the cash investments will also be removed. So, both restrictions that were put for offshore derivative instruments have been decided to be removed. They are no longer applicable.

The board in October 2007 had also decided that we will expedite the process of registering FIIs and sub-accounts so that people come and directly register here in the Indian market. It reviewed that position as well and it was reported to the board that during the last 11 months – October 31, 2007 till now – 397 FIIs and 1,160 sub-accounts have been registered. So, we found that that process is going on smoothly.

These were three important decisions that were taken in the meeting today.

===================================
RBI cuts cash reserve ratio by 50 basis points
CRR cut by 50 bps; Bankers don't see cheap loans soon
RBI cuts CRR by 0.5%
Industry hails CRR cut
RBI cuts CRR by 50 bps to 8.5%
RBI cuts CRR by 50 bps to 8.5%, effective October 11

MUMBAI: The Reserve Bank on Monday slashed by 0.50 per cent the rate of mandatory deposits that banks need to keep with it to ease the tight liquidity position, a move that may induce banks to lower commercial lending rates. The new Cash Reserve Ratio (CRR) of 8.5 per cent will be effective from October 11 and would unlock about Rs 20,000 crore into the banking system, RBI said. This is the first time in almost three years that the bank has relaxed its tight monetary policy stance that it had adopted to contain inflation. The move, which comes in the backdrop of inflation easing below 12 per cent and outflow of foreign capital, is aimed at infusing more funds in the financial system.

==================================
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London stocks slump 8.65%
Investor's wealth below Rs 40 trillion
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'Capitulation phase of bear mkt for '08 on'
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SEBI does a U-turn on P-notes as market hits bottom
SEBI does U-turn on P-notes; move could trigger short-term bounce
BNP Paribas' 12-month Sensex target 9476
Nikkei falls to 4-year lows, economy worry hits hard
Brazilian stocks massacred, triggers two trading suspensions

RBI - our banks are ok !
Wall Street tumbles
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Asian Markets Consolidate Losses As Financial Worr...
Post Session Commentary - Oct 6 2008
Bail-out approval fails to raise spirits
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Nervousness may continue

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Daily News Roundup - Oct 6 2008
Mountains of worry! Weekly Technicals - Oct 6 2008
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Source:ET,MC,BS,Sify,Rediff,Deadpresident blogs etc

Sensex plummets 725 pts on global weakness, Sensex at 2 year low

Sensex plummets 725 pts on global weakness

Indian market tanks over 5%

It was a long trip down south for benchmark indices Sensex and Nifty today as the bears thronged the ring at the opening bell and remained busy trampling down stocks cutting across sectors right till the end of the session.
Stockometer
The passage of the $700 billion bailout bill did nothing to lift the sentiment in global markets. The Wall Street had ended on a weak note last Friday after trading firm till the final hour. Asian markets went into a tailspin on doubts about the effectiveness of the bailout package in reviving the financial sector from the current turmoil. European markets crashed as well.
Top gainers
With the reporting season just a few sessions away and fears of heavy fall in revenues for the quarter ended September 2008 haunting the sentiment, investors appeared least inclined to pick up stocks today.
Worst losers
The Sensex crashed to 11,732.97, its lowest level in more than two years. It ended the day 11,801.70 with a massive loss of 724.62 points or 5.78%. The Nifty closed 5.66% or 215.95 points down at 3602.35. It touched a low of 3581.60.

BSE CD went down by 11%. The Realty and Metal indices tumbled 9.91% and 9.27% respectively. BSE CG and Power lost around 7.25%. Oil & Gas index ended 6.14% down. The IT and Teck eased by 5.82% and 5.62% respectively. BSE Healthcare, FMCG, Bankex, PSU and Auto lost 3.5% - 4.8%.

Midcap and smallcap stocks were slaughtered. BSE Midcap lost 7.13% and Smallcap ended lower by 6.92%. The market breadth was very weak right through the session. On BSE, only 281 stocks posted gains. 2369 stocks declined and 27 stocks ended flat.

Selling was so widespread that not even a single Sensex stock ended on a positive note today. Among Nifty stocks, Tata Communications (2.35%), BPCL (1.95%) and GAIL India (0.75%) bucked the weak trend and ended with gains.

Sterlite Industries (down 15.25%) was the biggest loser in the Sensex. Reliance Infrastructure (down 13.9%) was sold heavily in the final hour of trade. Jaiprakash Associates (down 13.55%) had another miserable outing. Tata Steel lost over 11%. DLF ended 10.3% down. Tata Power closed with a loss of 10.15%. Reliance Communications and Grasim Industries closed lower by 9.95% and 9.5% respectively. BHEL lost 7.45%.

Reliance Industries slipped by around 6.75%. Ranbaxy Laboratories lost 6.55%. Larsen & Toubro, Wipro, Satyam Computer Services, Tata Consultancy Services, HDFC Bank, HDFC, ITC, Infosys Technologies and Tata Motors lost 5% - 6.5%.

ACC, Bharti Airtel, Hindustan Unilever, ICICI Bank, Mahindra & Mahindra, Maruti Suzuki, ONGC and State Bank of India ended lower by 2% - 4.25%. Hindalco and NTPC also closed with sharp losses.

Suzlon Energy went down by 13.8%. Cairn India slipped by over 11%. Unitech, Reliance Petroleum, Ambuja Cements, Reliance Power, HCL Technologies, Nalco, Zee Entertainment, Idea Cellular, ABB, SAIL and Sun Pharmaceuticals lost 4% - 9%. Hero Honda, Siemens, Cipla and Power Grid Corporation also declined sharply.

Spice Telecom tumbled by over 30% today. Praj Industries, Aban Offshore, Chambal Fertilizers & Chemicals, Shriram Transport, GVK Power, JSW Steel, HDIL, Hindustan Construction Company, Century Textiles, Jindal Steel, India Bulls Financial Services, Phoenix Mills, IB Securities and Bombay Dyeing lost 13% - 20%.

Monnet Ispat, S Kumar's Nationwide, ICSA, Great Offshore, Sterlite Technologies, Gitanjali Gems, Shopper's Stop, Kansai Nero, Shree Precoated Steel, Prakash Industries, Madhucon Projects, Orbit Corporation and Motherson Sumi were some of the big losers in the midcap space.

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Sensex @ 2-yr low

The Sensex opened with a negative gap of 242 points at 12,284 on the back of negative cues from the global markets. The NSE Nifty is down 216 points at 3,602.The US markets on Friday tumbled despite the House of Representatives clearing the $700 bn revised bailout package. As a result of which Asian markets were down 3-4% on an average at the opening bell.
Eventually, most of the asian markets like Hang Seng, Nikkei, Straits Times, Shanghai Composite and Seoul Composite indices ended with losses in the range of 4-6% each.
Bank home, the index too witnessed unabated sellling and tumbled below yet another psychological mark of 12,000, to a low of 11,733 - down 793 points from the previous close. The Sensex finally ended with a significant loss of 725 points (5.8%) at 11,802.
In the process, the index has shed 9.6% (1,254 points) in the last two trading sessions, and is down a whopping 41.8% (8,484 points) so far this year.
The BSE Realty index slumped almost 10% (330 points) to 3,000. The Metal index plunged 9.3% (780 points) to 7,636. The Capital Goods and Power indices tumbled over 7% each to 9,495 and 2,066, respectively.
The market breadth was extremely negative - out of 2,677 stocks traded, 2,369 declined, 281 advanced and 27 were unchanged on Monday.
BIG LOSERS...
Sterlite slumped over 15% to Rs 335. Reliance Infrastructure tumbled 14% to Rs 638, and Jaiprakash Associates [Get Quote] plunged 13.5% to Rs 100.
Tata Steel [Get Quote] crashed 11% to Rs 350. DLF, Tata Power [Get Quote] and Reliance Communications [Get Quote] dropped around 10% each to Rs 302, Rs 798 and Rs 300, respectively.
Grasim [Get Quote] shed 9.5% at Rs 1,591. BHEL crumbled 7.5% to Rs 1,449.
Reliance, Ranbaxy [Get Quote] and Larsen & Toubro slipped around 6.5% each to Rs 1,642, Rs 246 and Rs 1,083, respectively.
Wipro [Get Quote] and Satyam [Get Quote] dropped over 6% each to Rs 320 and Rs 294, respectively.
TCS [Get Quote], HDFC Bank [Get Quote], HDFC and ITC declined around 5.5% each to Rs 619, Rs 1,202, Rs 1,965 and Rs 180, respectively.
Infosys [Get Quote] and Tata Motors [Get Quote] were down over 5% each at Rs 1,318 and Rs 314, respectively.
MOST ACTIVE COUNTERS
Reliance topped the value chart with a turnover of Rs 381 crore followed by Reliance Capital [Get Quote] (Rs 244 crore), Axis Bank (Rs 141 crore), ICICI Bank [Get Quote] (Rs 119 crore) and Tata Steel (Rs 117.70 crore).
Debutant 20 Microns led the volume chart with trades of around 1.30 crore shares followed by IFCI (1.06 crore), Reliance Natural Resources [Get Quote] (1.04 crore), Reliance Petroleum [Get Quote] (71 lakh) and Jaiprakash Associates (59 lakh).

Source:ET,Sify