Article on The global financial crisis:BT

Cover Story
The global financial crisis
Puja Mehra
The green signal for a $700-billion bailout of US banks wasn’t enough to turn the tide in global financial markets. Even six of the world’s central banks coming together to release hundreds of billions into the system couldn’t stem the panic. It has to get worse before it gets better. Puja Mehra reports.
So, where is the money?
Bear hug / Sense of rumour
----------------------------------------------------
Editor's note
From the editor
Rohit Saran
Our primary task was to understand the magnitude of the crisis and give you the most updated assessment of its impact on India. The cover stories (divided into eight small and easy-to-read features) attempts to do exactly this. The spread of our offering ranges from a country-by-country assessment of the financial crisis to the diagnosis and prognosis of the liquidity shortage (including stock market) and a small pointer to the opportunities the crisis has opened up for Indian companies.

Top Mind
Now, get paid to receive SMSes
What is it? A free SMS service from YouMint, started by Ankush Johar, who claims to have pioneered the concept in 2002. Since then, Johar has moved to England and YouMint is his third entrepreneurial venture in the telecom space.

Current
Savvy investor
Rahul Sachitanand
Wipro chief Azim Premji is quietly picking up stakes in companies with strong business models.
Khattar’s second innings
Modi hosts India Inc.
TCS rides to the Citi
Divided we stand
IBM’s discovery of India
Another airport expansion
Opera’s challenge

Noted
Ranked
SBI, which has assets of over Rs 7 lakh crore, 57th in the list of the world’s Top 1,000 banks this year, by the UKbased banking publication The Banker. SBI was ranked 70th last year.

Special
Giants on the prowl
Rahul Sachitanand & Kushan Mitra
Foreign information technology giants aren't just dominating the domestic market, they're opening up new segments and setting the agenda for some categories.
Re-inventing Indian IT
BPO 2.0
Beyond the obvious

Trends
Just wondering...
What happened to Dilip Chhabria’s plans of launching a made-in-India sports car? Well, the plan is on track.
The gap Is growing
New launches
“We will dominate the Indian market”
The big fall
Tugging at your heart strings
Instan tip
Now, get paid to receive SMSes
Numbers of note
Ranked
Now, shop online for loans
The 6 most over-hyped gadgets
Out in the open
Economy watch
Talebearer
How times have changed
Reprieve for ad industry
India slips on competitiveness
To be precise
Liberal ECB norms on the cards

Money
The slowdown-proof stocks
Rishi Joshi
It's bad out there and it could get worse. With the stock markets in a tailspin, long-term investors can profit by buying into companies that can beat the slowdown in the coming months.
Avoid your own financial crisis
On the right track
Back in business
Fix it right

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Numbers of note
October 13, 2008

175-plus: The number of channels offered by telecom operator Bharti Airtel’s just launched direct to-home (DTH) satellite television service

1,000: The number of jobs eBay, the world’s largest online marketplace, will slash globally. The figure is equivalent to 10 per cent of its global workforce

Rs 6,800 crore The cumulative operational losses that Indian airlines are expected to suffer in 2008. The global aviation industry is expected to lose $4.1 billion (Rs 19,680 crore)

$8.8 billion (Rs 42,240 crore) The amount of money FIIs have pulled out of the Indian stock markets till the end of September 2008

$42 billion (Rs 2,01,600 crore) The value of investments in US subprime mortgages that investment bank UBS had to write off, the highest by any bank in Europe.

Source: http://businesstoday.digitaltoday.in

Corporate News Round-up

Indian Bank Q2 net up at Rs.282.93 cr
Allbank Q2 net dips, y-o-y business up 16%
2,500 employees of RIL to go on strike on Oct 24
Kingfisher slashes salaries of trainee pilots
Forex reserves fall $10 b on FII outflows

Sensex @ 10K: up in 483 days, down in 193
Satyam beats guidance; net profit rises 42%
RIIL net dips 3% to Rs 5.32 crore
Ultra Tech Q2 net down 12% at Rs 164 cr
Federal Bank Q2 net up 20% at Rs 114 cr

RNRL wants Reliance Industries to pay price differential
US economy will bounce back: Bush
Markets: It's a perfect ten for value pickers
Gold plunges further by Rs 210
Analysts fear more losses

Chandrayaan countdown to start on Monday
Chambal Fertilisers Q2 net slips 20% to Rs 47.5cr
HDFC net profit up 32% excluding one-time gains
Small investors take heart, top 10 in rich list lost $139 bn
RBI employees say to strike on Oct 21

Now, IITians get regret letters from top IT firms
Where will the Sensex head to now?
Blue chips fall by the wayside
Emerging mkts see 40-70% drop in PE valuations
Analysts fear more losses after Indian stocks crash

More losses expected
Sonata Software
Hindustan Construction
Investment Ideas - Value Picks
Stocks Below Book Value
Weekly Wrap - Oct 20 2008

Top Equity Mutual Fund Picks
Eveninger - Oct 17 2008
Sasken Communications
Weekly Futures Options - Oct 17 2008
Sensex plunges more than 500 pts for the week

Weekly Newsletter - Oct 18 2008
Turbulence in Indian skies
Wanting too much too fast
Govt panics, steps up effort for liquidity
Global markets recover, but worst may not be over
RBI policy review, global markets to dictate trend...

Source: ET,BS, BL, deadpresident etc

Main contributors of Sensex fall frm 21k to 10K are RIL,ICICI

Sensex ends below 10K; RIL, SBI, Bharti, Infy crash
http://news.moneycontrol.com/india/news/local-markets/sensex-ends-below-10000-ril-sbi-bharti-infy-crash/20/55/361801


The bears latched on to the markets in the second half of the session. They have forced the Sensex to hit 10,000 mark on the back of negative cues from global markets. Realty, power, metal, telecom, capital goods, oil, banking and technology stocks took huge beating on the bourses.

The biggest contributors to this fall were Reliance Industries, Bharti Airtel, Infosys, SBI, ICICI Bank, HDFC Bank, BHEL, NTPC, Reliance Communications, L&T, Reliance Infrastructure, TCS, and ONGC.

The Sensex has closed below the 10,000 mark for the first time since July 2006 and touched an intraday low of 9,911.32, a loss of over 53% from its historic high. It took 384 sessions to go up from 10,000 to 21,207 but took only 192 sessions on its downward journey. Reliance Industries and ICICI Bank were the biggest losers in this journey. They contributed 30% to this fall. The others included L&T, Reliance Communications, Tata Steel, and HDFC.

The bellwether index finally settled at 9,975.35, down 606.14 points, or 5.73%, over its previous close. The Nifty also cracked 3,050 and hit a low of 3,046.60 in today's session. It dropped over 52% from the highest point of 6357.10 on January 8, 2008. It tumbled 194.95 points, or 5.96%, to settle at 3074.35.

Market breadth was extremely weak; about 885 shares have advanced while 2103 shares have declined. Nearly 200 shares remained unchanged.

Among the frontliners, Reliance Infrastructure, Jaiprakash Associates, DLF, NTPC, Reliance Communication, BHEL, Sterlite Industries, SBI, TCS, Tata Steel, Hindalco, Unitech, Siemens and Reliance Petroleum crashed 8-12.5%. All stocks on the BSE Sensex Thirty are in red while only BPCL and HCL Tech ended in the green on the NSE Nifty Fifty.
Total turnover was very low as compared to previous day. It stood at Rs 58,370.46 crore as against Rs 72,822.47 crore on Thursday. This includes Rs 10,477.78 crore from NSE Cash segment, Rs 43,767.13 crore from NSE F&O segment and balance Rs 4,125.55 crore from BSE Cash segment.
Vineet Bhatnagar of MF Global feels that the high volatility numbers indicate that markets have not stabilised. The volatility percentile band has gone above 90% three weeks ago, he added. Bhatnagar sees Nifty support at 3050-3100 levels. The volumes may peak there, he added.
Markets took negative cues from US markets; huge volatility is expected in the US markets today as 80 million options will get expired. Dow Jones and Nasdaq Futures were down close to 2.5%, at 4:07 pm.
European markets had opened over 4% in early trade. However, they were also trading off day's high. FTSE, DAX and CAC were up over 1%, at 4:07 pm.
Asian markets also plunged in late trade barring Nikkei and Shanghai. Hang Seng and Jakarta closed down 4.4% each. Straits Times fell 3.73%, Kospi -2.73% and Taiwan -2.28%. However, Shanghai gained 1.08% and Nikkei rose 2.78%.

In the Taiwan market, FIIs sold USD 344.5 million worth of shares in trade today (provisional). They net sold USD 670 million during this week.
Adrian Mowat, JPMorgan sees more pain in Indian markets until we see some stability in the global financial system. He sees further downside in terms of expectations and feels that Indian markets may underperform over a six to twelve-month period. "If we see further substantial falls in the oil price, then India will tend to be more leveraged than other markets because of the benefit that a lower oil price gives the twin deficits of the current account and at the fiscal level." Crude was hovering around USD 70-71 to a barrel on the NYMEX.
Nirmal Jain, founder and CEO feels, “The rough times will last longer and outlook for the remaining part of the year is very volatile.” He feels that the next 3-4 quarters will be very uncertain and bearish for stock markets.
On the weekly basis, the Sensex has lost 5.8% and the Nifty fell 7%. BSE Metal tumbled 12.2% led by Nalco, Hindalco and Tata Steel, which fell 29%, 22% and 15%, respectively. BSE Oil & Gas Index slipped 11.5%; Reliance Industries and ONGC lost 15.5%. BSE Capital Goods Index crashed 9.5%; L&T and BHEL fell 11%.

Sectoral Indices
Realty stocks have collapsed like a pack of card in today's session. Indiabulls Real, Unitech, Peninsula Land, Ansal Properties, Parsvnath, Puravankara Projects and DLF fell 10-14%. Index has underperformed other indices, went down 288.37 points or 10.25%, to close at 2,524.89.
Power Index tumbled 150.74 points or 8.09% to 1,712.27. Reliance Infrastructure lost 12%. NTPC, Suzlon Energy, Power Grid Corp, CESC, Tata Power and GMR Infra lost 6-10%.
Metal stocks have lost shine. Sterlite Industries, Welspun Gujarat, Tata Steel, Hindalco, NALCO and JSW Steel fell 6-9%. Sesa Goa, Hind Zinc, SAIL and JSL were down 4-5%. Index plunged 378.16 points or 6.12%, to settle at 5,801.71.
Telecom stocks Reliance Communication, Tata Communication, Bharti Airtel, Idea Cellular and MTNL lost 5-10%.
BSE Capital Goods Index plummeted 423.44 points or 5.52%, to close at 7,241.36. Jyoti Structure, Punj Lloyd, Siemens, BHEL, Praj Industries, Crompton Greaves and Elecon Engg lost 6-12%. ABB, Bharat Electronics, Areva T&D and L&T fell 3-5.5%.
Banking stocks also crashed heavily. Kotak Mahindra, SBI, IndusInd Bank, HDFC Bank, ICICI Bank, Union Bank and Canara Bank fell 5-9%. Bankex fell 320.07 points or 5.46% to 5,546.69.
Oil & Gas Index tumbled 348.21 points or 5.10% to 6,479.56. Essar Oil, Aban Offshore, Reliance Petroleum, Reliance Industries and RNRL fell 5-10%. GAIL, ONGC and Cairn India lost 1-4%. However, oil marketing companies like IOC and HPCL rose 3-4%. BPCL gained 0.53%.

Technology stocks TCS, Wipro, Tech Mahindra and Infosys slipped 5-8%. IT Index slipped 131.90 points or 4.94% to 2,537.27. Satyam and Mphasis fell over 2.4%; they have reported good numbers for Q2FY09.
Auto Index closed at 3,099.60, down 96.31 points or 3.01%. Escorts, Maruti Suzuki, Hero Honda, Tata Motors, Bharat Forge, MRF and M&M were down 2-6%.
Healthcare Index fell 88.30 points or 2.68% to 3,209.02. Orchid Chemical, Divis Labs, Fortis Health, Biocon, Lupin, Sun Pharma, Glenmark and Aurobindo Pharma lost 4-7%.
FMCG Index was down by 43.52 points or 2.29%, to close at 1,858.99. United Spirits, GlaxoSmith Consumer, Godrej Consumer, Britannia, HUL and ITC fell 2-6%.
BSE Midcap plunged 112.29 points or 3.07% to 3,544.84 and Small Cap Index tumbled 118.50 points or 2.76%, to end at 4,167.86.
Among the midcap stocks, S Kumars Nationwide, ESS DEE, Provogue, India Infoline, Sterlite Technologies, Orbit Corporation and Chambal Fert tumbled 15-20%.
In the small cap space, ABG Infralogistics, Ganesh Housing, Kemrock Indus, Unity Infraprojects, Khaitan Electrical and KLG Systel fell 15-20%.

Markets Today
Carnage on Dalal Street Continues
SENSEX closes below 10000 for the first time since July 2006
Sensex hits a new 2008 low of 9911.3; Nifty hits a new 2008 low of 3046.6
Capitulation in Index stocks, Mid cap and Small Cap stocks outperform
Sensex ends down 606 points to close at 9975; Nifty ends down 195 points to close at 3074
CNX Midcap Index down 2.9%, BSE Small-cap Index down 2.8%
BSE Realty Index down 12%, Unitech down 12.5%, Indiabulls Real Estate down 13.8%, DLF down 10.1%, Orbit Corp down 15%
BSE Metal Index down 6.9%; Sterlite down 8.1%, Tata Steel down 8%, Hindalco down 7.3%, Sesa Goa down 6.6%
BSE Bankex down 6.3%; SBI down 7.8%, Hdfc Bank down 6.1%, Icici Bank down 5.9%, Kotak Bank down.1%
BSE Cap Goods down 5.8%; Punj Lloyd down 9.6%, Siemens down 9.6%, Bhel down 9.2%
BSE Oil & Gas down 5.8%; RPL down 8.5%, Reliance down 6.1%, Essar Oil down 9.9%
Index Losers : Rel Infra down 11.9%, NTPC down 9.4%, Tcs down 8.3%, Suzlon down 7.6%
NSE Adv – Dec Ratio at 1:4
Total market turnover at Rs 58370.46 crore versus Rs 68100.82 crore
NSE F&O Turnover at Rs 43767.13 crore versus Rs 48279 crore

RIL, ICICI Bank contributed to 30% of the fall from record 21,207
Name Contribution (pts) Contribution (%)
Reliance Ind -1747.85 15.60
ICICI Bank -1537.83 13.72
L&T -1000.62 8.93
Reliance Comm -602.52 5.38
Tata Steel -461.28 4.12
HDFC -459.75 4.10
Reliance Infra -438.50 3.91
DLF -428.19 3.82
JP Assoc -400.76 3.58
HDFC Bank -350.91 3.13
SBI -337.75 3.01
Infosys -318.53 2.84
ONGC -318.04 2.84
Sterlite Ind -307.11 2.74
BHEL -296.47 2.65
Bharti Airtel -262.75 2.34
ITC -250.92 2.24
NTPC -221.77 1.98
Hindalco -214.43 1.91
Grasim -208.29 1.86
Tata Motors -194.10 1.73
TCS -182.15 1.63
Tata Power -169.64 1.51
Satyam -138.92 1.24
M&M -100.99 0.90
Wipro -94.83 0.85
ACC -74.76 0.67
Maruti Suzuki -55.90 0.50
Ranbaxy -54.39 0.49
HUL 23.19 -0.21
Total -11206.77 100
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Contribution from 21,207 to 10000
2 stocks contributed to 30% fall in the Sensex. Reliance Industries contributed to 15.5% and ICICI Bank 14% to the fall.
6 stocks contribute to 50% fall in the Sensex
Name Contribution(pts) Contribution (%)
Reliance Ind -1748 15.60%
ICICI Bank -1538 13.72%
L&T -1001 8.93%
Reliance Comm -603 5.38%
Tata Steel -461 4.12%
HDFC -460 4.10%
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More @ SENSEX ends below 10000; RIL, SBI, Bharti, Infy crash Moneycontrol.com

Source: Moneycontrol.com.

Biggest psychological setback for Sensex, Closed below 10K, Lowest Since June 06

Distress Street: Bears pull Sensex below 10,000

MUMBAI: It was one of the biggest psychological setbacks for Indian trading community Friday as the Bombay Stock Exchange’s Sensex closed below the 10,000 mark. The oldest benchmark has lost more that 50 per cent from its all-time highs in just nine months.

The downfall was anticipated, but not on a day when bulls dominated the US and European markets. So what led to the fall? According to marketmen, there was some profit booking in the morning but formation of new short positions in futures, anticipating disappointing data from the US housing market, led to fall in the cash segment as well. Traders also didn’t want to take risk ahead of the weekend.

The breach of 10,000 level on the Sensex is being seen as a huge sentimental blow which is likely to trigger further correction and prevent investors from taking long positions. While some say it will take around 6-9 months for the market to stabilize, others are of the opinion that it will take at least three years for the global markets to get out of the rut created by the US financial market.

“There is dearth of fresh buying as investors are waiting for the markets to stabilise. Market can fall 10-15 per cent to 2,750 on the Nifty and around 8,700 on the Sensex, before forming a bottom. Global scenario is not healthy and volumes are also low. There is no fresh buying even as many A group stocks are available at 60-65 per cent from last October’s valuations. Hedge funds are creating short positions, which is dragging the markets,” said Ketan Malkan, vice-president, India Infoline.

Bombay Stock Exchange’s Sensex closed at 9,975.35, down 606.14 points or 5.73 per cent. It touched an intra-day low of 9,911.32 and a high of 10,786.93. National Stock Exchange’s Nifty closed at 3,074.35, down 5.96 per cent or -195 pts. The broader index touched an intra-day low of 3,046.60 and an intra-day high of 3,335.95. BSE Midcap Index closed 3.07 per cent lower at 3,544.84 and BSE Smallcap Index ended 2.76 per cent down at 4,167.86.

“We have formed a soft bottom and are in the process of formation of a hard bottom, which is likely to be formed around 2800 levels,” said a technical analyst from a local brokerage. Experts are of the opinion that it is not the end of the market and advise investors to enter in a systematic manner. “Global sentiments are at the lowest and this is being reflected in the acute risk aversion of investors, who have shunned equities for the time being.

While it would be difficult to catch the bottom, investors should continue investing into equities in a systematic manner. While the current situation would take some time to mend, if history is any guide to investments, equities have outperformed all asset classes over the long-term and we remain confident that history will repeat itself,” said Hitesh Agarwal of Angel Stock Broking. Biggest losers in the Sensex pack were Reliance Infrastructure (11.96%), Jaiprakash Associates (10.70%), DLF (10.34%), NTPC (10.34%), and Sterlite Industries (8.82%). There were no gainers in the 30-share index. Market breadth turned extremely weak with 1,462 declines against 638 advances on BSE European markets which opened strong, too gave away major gains as US stock futures were pointing toward a weak opening.

FTSE 100 was up 2.13 per cent, DAX moved 1.80 per cent higher and CAC 10 advanced 1.30 per cent. US stock index futures extended losses as a report showing that housing starts slid in September heightened recession fears. Dow Jones Industrial Average futures dropped 136 points and Nasdaq futures fell 27 points.

---------------------------------------

Where will the Sensex head to now?

MUMBAI: The bull is on the run! But not in the direction one would want. He’s kicked enough storm and leaving behind him dust which the market is anxiously waiting to settle, so as to ascertain the damage. There are foreign forces behind the madness, as politicians would say--the US sub-prime crisis that has ballooned into a credit crisis across world markets. And there doesn’t seem to any comfort from the measures being taken by the central governments. In one of many such stampedes, the Sensex of Bombay Stock Exchange Friday closed below the 10,000 mark at 9,975.35, a loss of 606.14 points or 5.73 per cent from the previous close. The low of the day was 9,911.32 and high of 10,786.93. The broader Nifty of National Stock Exchange settled at 3074.35, down 194.95 points or 5.96 per cent. The index touched an intraday low of 3046.60 while the high was 3,335.96.

Economictimes.com spoke to the people on the floor to know where it will all end. “I don't think we can forecast a bottom for the benchmark index or how soon we will hit rock bottom. What I am seeing is sustained FII selling and lack of support from domestic institutions such as mutual funds and insurance companies who are sitting on cash to meet redemption pressures.

There is panic fear among overseas investors, who themselves are faced with heavy redemption pressures in their home countries. These (sustained outflows) will have to end for the market to stabilise and SEBI's proactive measures on P-notes to come into effect,” said Geojit Financial Services’ Managing Director, CJ George, of the Sensex breaching the 10K mark.

Being more specific, Sandeep Waghle, chief technical analyst of Angel Stock Broking, said, “The Sensex went close to 10,000 and bounced back as fresh buying came in and some short positions were also covered. But the mood is bad and Sensex may go down to 9000 and Nifty may test 2900.” Manas Jaiswal, senior technical analyst at Emkay Shares and Stock Brokers, painted an even grim picture. “Market mood is extremely bearish and we expect Nifty to touch 3050 next week. It may fall to 2600 in next two months,” he said. Speaking on the forces that be, N K Garg, CEO of Sahara Mutual Fund, said, “There is an imbalance now. FIIs are having hassles in their country. This is a crucial time for markets. I wouldn't like exiting.” Continued...Next >>
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Stocks that braved the storm this week
Sensex closes below 10K; Realty,power plunge
Mkts under distress: Sensex below 10,000 mark
Sensex dips below 10,000 mark
Realty, power stocks under severe pressure

Distress Street: Bears pull Sensex below 10000Economic Times, India - 48 minutes agoMUMBAI: It was one of the biggest psychological setbacks for Indian trading community Friday as the Bombay Stock Exchange’s Sensex closed below the 10000 ...

Sensex closes below 10000 mark DailyIndia.com

SENSEX ends below 10000; RIL, SBI, Bharti, Infy crash Moneycontrol.com

Sensex plunges, below 10000 mark Times Now.tv

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Sensex plunges below 10000

BEARS RULE: Sensex in four-digits, sheds 606pts

SENSEX ENDS BELOW 10K

Sensex loses 606 pts, ends at 9975.35

Sensex melts below 10k level, hits over 2-year lows

Post Session Commentary - Oct 17 2008

RBI policy review, global markets to dictate trend

Sensex down 13% from recent high

Sensex plummets below 10K, lowest since July 2006

Sensex ends below 10k; Realty plunges 10.25%

---------------------------------------------

Source: All Leading web sources.

Results(HDFC,Satyam etc), Corp Headlines

Where will the Sensex head to now?
Buffett says he's buying US stocks
Rupee falls to its lowest in 6 years
FIIs sell off stocks worth Rs 1,161 cr
FX reserves dip to $274.004 bn

India Inc margins shrink in Q2
RBI may cut rates next week
PSU stocks rise sharply
'Nifty BeES good for equity exposure'
India Infoline Q2 net up at 40 cr
HDFC Ltd Q2 net dips 17% at Rs 534.23 cr

Satyam Q2 net up 42% at Rs 581 cr Fri, 17
FIIs’ selling touches $11 b
Mphasis Q2 net up 2-fold at Rs 141 cr
Elecon Engineering Q2 net down 7 pc at Rs 16.01 cr

Steel industry still holds promising future
Tata Steel says to cut Corus steel output
Steel cos to invest over Rs 6,00,000cr,take steel prod to 230m
Nifty futures in discount as short build up, Reliance pack in ruins
Google Q3 profits up 26% at $1.35 bn

HDFC net up 32.4% at Rs 534cr
Satyam Q2 net up 42% at Rs 581cr

Sensex off 53% from record high (17/10/2008,16:06 Hours IST)The BSE Sensex slumped to its lowest level in over two years on worries of global recession. More
Heavyweight RIL's rout pulls Sensex below 10,000 (17/10/2008,16:31 Hours IST)Reliance Industries slumped 6.58% to Rs 1305.25, extending its two-day fall, on fears of fall in refining margins. More

Corporate Results
JK Papers Q2 net down 17.5%
Tata Coffee net up 44% at Rs 17 cr
Zensar Technologies Q2 net up 20% at Rs 13.70 cr
Elecon Engineering Q2 net down 7% at Rs 16.01 cr
Mphasis Q2 net up at Rs 141 cr
Satyam Q2 net up 42% at Rs 581 cr

Corporate Results
India Infoline net profit declines 29.23% in the September 2008 quarter
Net profit of India Infoline declined 29.23% to Rs 32.23 crore in the quarter ended September 2008 as against Rs 45.54 crore during the previous quarter ended September 2007. Sales rose 25.14% to Rs 163.91 crore in the quarter ended September 2008 as against Rs 130.98 crore during the previous quarter ended September 2007.

eClerx Services net profit rises 119.49% in the September 2008 quarter

Housing Development Finance Corporation net profit declines 17.35% in the September 2008 quarter
Net profit of Housing Development Finance Corporation declined 17.35% to Rs 534.23 crore in the quarter ended September 2008 as against Rs 646.39 crore during the previous quarter ended September 2007. Sales rose 38.47% to Rs 2615.10 crore in the quarter ended September 2008 as against Rs 1888.60 crore during the previous quarter ended September 2007.

Satyam Computer Services net profit rises 43.22% in the September 2008 quarter
Net profit of Satyam Computer Services rose 43.22% to Rs 597.43 crore in the quarter ended September 2008 as against Rs 417.15 crore during the previous quarter ended September 2007. Sales rose 38.61% to Rs 2700.52 crore in the quarter ended September 2008 as against Rs 1948.24 crore during the previous quarter ended September 2007.


Source:ET,CapitalMkt,BS etc

Results:HDFC Bk,Sasken,Indusind Bk ,Biocon etc

HDFC Bank Q2 net profit rises 43% YoY

MUMBAI: HDFC Bank Ltd has reported an interest earned of Rs 3991.21 crore for the quarter ended on Sep 30, 2008, up 68.92 per cent compared with Rs 2362.76 crore in the same quarter of 2007. Interest expended increased 77.05 per cent to Rs 2,124.76 crore in Jun-Sep quarter of 2008 against Rs 1,200.08 crore in the same quarter of previous year. Net profit grew 43.29 per cent to 43.29 per cent to Rs 527.98 crore in Sep quarter of 2008 from the earlier year. On Thursday, HDFC Bank shares ended down 4.15 per cent to Rs 1087.35 on BSE.
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Sasken Comm Q2 net profit falls 21% QoQ
GTL Q2 net profit rises 41% YoY
HCL Tech Q1 net profit down 4% QoQ
---------------------------------------------
MphasiS net profit rises 128.74% in the September 2008 quarter
Net profit of MphasiS rose 128.74% to Rs 112.70 crore in the quarter ended September 2008 as against Rs 49.27 crore during the previous quarter ended September 2007. Sales rose 54.59% to Rs 639.00 crore in the quarter ended September 2008 as against Rs 413.34 crore during the previous quarter ended September 2007.

State Bank of Indore net profit rises 22.38% in the September 2008 quarter
Rallis India net profit declines 59.18% in the September 2008 quarter
Finolex Cables net profit declines 93.28% in the September 2008 quarter

Peninsula Land net profit rises 62.07% in the September 2008 quarter
Net profit of Peninsula Land rose 62.07% to Rs 54.60 crore in the quarter ended September 2008 as against Rs 33.69 crore during the previous quarter ended September 2007. Sales declined 5.82% to Rs 110.54 crore in the quarter ended September 2008 as against Rs 117.37 crore during the previous quarter ended September 2007.

HDFC Bank net profit rises 43.29% in the September 2008 quarter
Net profit of HDFC Bank rose 43.29% to Rs 527.98 crore in the quarter ended September 2008 as against Rs 368.48 crore during the previous quarter ended September 2007. Total operating income rose 68.92% to Rs 3991.21 crore in the quarter ended September 2008 as against Rs 2362.76 crore during the previous quarter ended September 2007.

Sasken Communication Technology net profit declines 48.68% in the September 2008 quarter
GTL net profit declines 21.56% in the September 2008 quarter
Piramal Life Sciences reports net loss of Rs 26.31 crore in the September 2008 quarter
NIIT Technologies net profit declines 5.72% in the September 2008 quarter

IndusInd Bank net profit rises 50.67% in the September 2008 quarter
Net profit of IndusInd Bank rose 50.67% to Rs 33.66 crore in the quarter ended September 2008 as against Rs 22.34 crore during the previous quarter ended September 2007. Total operating income rose 21.82% to Rs 549.87 crore in the quarter ended September 2008 as against Rs 451.37 crore during the previous quarter ended September 2007.

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HDFC Bank Q2 net profit Rs 528 cr
Sasken Comm Q2 net profit down 24% at Rs 10.4 cr
Piramal Life Sciences Q2 net loss at Rs 26.3 cr
IndusInd Bank Q2 net profit up 51% at Rs 33.6 cr
NIIT Tech Q2 net profit at Rs 36.7 cr
Biocon Q2 net profit at Rs 25.02 cr
Kingfisher Airlines FY08 net loss at Rs 188 cr
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Source:ET,Indiaearnings, Capital Mkt

Sensex recover from 10K levels (- 228 pts) , Inflation Cools to 11.44 percent

Equities sheds losses; Sensex closes 2% down

MUMBAI: Equities
rebounded sharply on Thursday from fresh lows of the year but still ended in the negative terrain weighed by losses in index heavyweights Reliance Industries, TCS and Hindalco Industries. Markets opened with a sharp gap-down following selloff in global markets which plunged on recessionary and economic slowdown fears. Bearish sentiments pulled benchmarks to new lows of 2008.

However, both Sensex and Nifty fell short of breaking important psychological supports. Measures announced by Reserve Bank of India overnight to address liquidity, and earlier than scheduled release of inflation data during the day, checked markets from tripping further. Positive opening of US stocks futures and European markets paring losses lifted sentiments.

Bombay Stock Exchange’s Sensex closed 227.63 points or 2.11 per cent down at 10,581.49. The index recovered over 500 points from the low of 10,017.80. National Stock Exchange’s Nifty ended at 3,269.30, down 2.07 per cent or 69.10 points. It touched a high of 3,333.85 and low of 3,099.90.

“Sensex went close to 10,000 and bounced back as fresh buying came in and some short positions were also covered. But the mood is bad and Sensex may go down to 9000 and Nifty may test 2900,” said chief technical analyst, Sandeep Waghle of Angel Stock Broking. Hindalco Industries (-12.15%), Tata Motors (-11.17%), TCS (-8.64%), Grasim Industries (-8.05%), Reliance Industries (-8.03%) and Larsen & Toubro (-7.55%). Reliance Communications (9.80%), DLF (8.25%), Hindustan Unilever (7.22%), HDFC (5.17%) and State Bank Of India (3.13%) were amongst the gainers. Interest rate sensitive sectors like realty and banking recovered sharply and ended in the green after inflation eased further and RBI cut CRR rate.

India's wholesale price index-based inflation rate rose 11.44 per cent in the week to Oct 4, against the previous week's rise of 11.80 per cent. The rate was below a median forecast of 11.86 per cent. In addition to that, RBI cut cash reserve ratio by another 100 basis points with retrospective effect from October 11 in addition to 150 basis points cut announced earlier. With this move, the federal bank has brought around 1 lakh crore to boost liquidity in the system. BSE Realty Index which was over 7 per cent down in the morning closed 5.15 per cent higher. BSE Bankex closed 0.43 per cent up. Vinod Nair of Religare Hichens Harrisons pointed out that the cooling off in global commodity prices has helped to bring down domestic inflation.

Nair said that towards the middle of November, the high base effect of the previous year should help to possibly bring inflation down to single digits. According to Sujan Hajra of Anand Rathi, the easing in inflation was anticipated and a further cooling down in the months ahead is expected. US stock futures were pointing towards a firm opening ahead of quarterly results by financial institutions and economic data. This gave further support to recovering domestic market. But post market hours, US stock futures pared gains and Dow Jones futures were down from 120 points to 52 points and Nasdaq futures were up 6 points from 16 points. Meanwhile, Citigroup reported a fourth consecutive quarterly loss. The third quarter loss was at $2.8 billion. Merrill Lynch reported $5.15 billion of losses.

Nifty Oct premium widens on short covering; Reliance, L&T tumble
Sensex ends off lows; Realty stocks gains
Realty stocks back in action; BSE Realty up 8%
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Inflation cools a bit to 11.44% amidst market volatility

NEW DELHI: The annual inflation rate took a slight dip to 11.44 per cent for the week ended October 4. It was 11.80 per cent for the week ended September 27. The dip has been attributed to cooling of commodity prices.

The WPI for all commodities has dipped by 0.5 per cent for the week ended October 4.
Meanwhile inflation for the week ended August 9 was revised up to 12.82 percent from 12.63 percent.

The wholesale price index is forecast to have risen 11.86 per cent in the 12 months to October 4, having posted a rise of 11.80 percent in the previous week. In early August, the inflation rate was 12.91 per cent, the highest reading since annual numbers in the current data series became available in April 1995. It jumped into double digits after a hike in government-controlled retail fuel prices in June. Analysts said inflation has probably already peaked, and may now embark on a downtrend, but the base effect was likely to play a key role in the next few weeks. "Shortages of primary articles at the start of the festival season will also be seen and the import of non-oil articles will play some role," said Rupa Rege Nitsure, chief economist at Bank of Baroda.

However, three of the 10 economists saw inflation slowing further from the previous week and continuing to ease. "Everything will see a fair bit of decline. There will be some fall in the manufacturing, a small bit in the primary articles as well. The fuel index is also likely to go down," said Saugata Bhattacharya, economist with Axis Bank.


Source:ET

Corp Headlines, Results:Larsen,HCL,Cont.Corp etc

Results:

Container Corporation Of India net profit rises 28.48% in the September 2008 quarter
Net profit of Container Corporation Of India rose 28.48% to Rs 223.68 crore in the quarter ended September 2008 as against Rs 174.10 crore during the previous quarter ended September 2007. Sales rose 9.78% to Rs 903.36 crore in the quarter ended September 2008 as against Rs 822.88 crore during the previous quarter ended September 2007

HCL Technologies net profit declines 3.93% in the September 2008 quarter
Net profit of HCL Technologies declined 3.93% to Rs 253.79 crore in the quarter ended September 2008 as against Rs 264.17 crore during the previous quarter ended September 2007. Sales rose 6.61% to Rs 1175.80 crore in the quarter ended September 2008 as against Rs 1102.86 crore during the previous quarter ended September 2007.

CMC net profit rises 18.53% in the September 2008 quarterSales decline 28.41% to Rs 177.36 crore
ICSA India net profit rises 66.31% in the September 2008 quarter
Larsen & Toubro net profit rises 32.25% in the September 2008 quarter
HCL Tech Q1 net profit at Rs 356.2 cr

Electrosteel Casting Q2 net profit at Rs 42.1 cr
L&T Q2 PAT up 32.47% at Rs 461 crore
South Indian Bank Q2 net profit up at Rs 51.6 cr
IFCI Q2 net profit at Rs 259 cr
Sonata Software Q2 Cons net profit at Rs 21.6 cr
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Business HEADLINES

JPMorgan profit plummets on loan losses
ICICI regains most valued domestic private bank status
RIL plans power foray with mining, coal-to-oil projects
RIL, NTPC may smoke peace pipe on KG gas
1,900 staff are being given notices of separation: Jet

Reliance Infrastructure plans to spend Rs 30000 crore in next 5-6 years
Nehru was nominated for Nobel peace prize 11 times
RBI cuts CRR by 100 basis points
Govt, RBI agree on more policy steps: P Chidambaram
Frontline stocks likely to lead rally when market rebounds

L&T stock falls 10% as OPM down 20 bps
Hotel Industry
ONGC
Lupin, Axis Bank, Sterlite Industries, India Banki...

Post Session Commentary - Oct 15 2008
Below 11k again
Indian market underperforms global peers as Sensex...
Trading Calls - Oct 15 2008
India Investment Strategy
MRPL
Media Sector

Source:Indiaearnings, ET, Capital Market, Deadpresident etc

Sensex lose 675 pts, RBI cuts CRR 100 bps, Larsen Toubro Results below estimates

Weak global cues, disappointing L&T nos thrashed mkts

It was a dreadful session for the markets, as benchmark indices have given up 70-75% gain, which they had seen in first two days of this week. It seemed that markets fizzled out two days pullback rally due to bad global cues, wherein financial stability is still big concern for global banks. Asian and European markets have witnessed huge selling pressure. The Sensex has closed below 10,900 and the Nifty tanked below 3350.

Redemption pressure has led this sell off. Incremental flows are negative at FII desk; selling in metal pack continues. A leading foreign fund has turned negative on the metal sector. L&T has failed to impress street by its second quarter numbers; entire capital goods space is under pressure post results. Midcap and small cap stocks are still vulnerable to margin call pressure.
Finance Minister P Chidambaram said that the inter-bank lending still remains constrained and that it was important to enhance credit limits. The government and the Reserve Bank of India or RBI have agreed that measures have to be taken immediately, he said.

RBI is going to announce some measures in the evening to ease liquidity in financial system; experts feel that this news would be good for tomorrow's gap up opening. But nervousness in global markets due to financial instabliity could nullify RBIs move.

Liquidity concerns have taken a centrestage, a high-powered panel of bankers met in Mumbai to assess the needs to boost credit flow and the announcement is likely shortly. After speaking to three-four Chairmen from the meeting, Suvashree Ghosh of NewsWire18 said that they have lobbied for a CRR, Repo and an SLR cut in the meeting. “They explained that further liquidity will be injected in the system and measures will be taken to ensure that there is adequate credit flow across the sectors.”

Experts feel that CRR cut may be between 50-100 bps. SLR is also expected to be cut and interest caps on NRI deposits may be removed. There are not much hopes of repo cut, but that would not be ruled out.

Shankar Sharma of First Global feels RBI's last few CRR hikes may have been excessive. On liquidity, Sharma said India had a lot of liquidity but it was sucked out by RBI. "The central bank may be slightly behind the curve in freeing liquidity. Sentiment in market has soured, so fresh liquidity may not work. The Monetary Policy may not change the course of downward trend."

Larsen and Toubro crashed 11% on the back of dissappointing second quarter numbers. The company's Q2 topline is in line while bottomline is below street expectations. Net sales stood at Rs 7682.20 crore and net profit at Rs 460.26 crore while CNBC-TV18 estimated numbers were Rs 7,314 crore and Rs 494 crore, respectively. Margins also declined to 8.8% from 10.7% YoY.
Speaking on L&T numbers, Ajay Parmar, Head-Ideas Research at Emkay Global Financial Services, said, "Results of a company like L&T gives a perspective of the entire industry. If the margin goes from 10% to 8%, an almost 25% cut, then it seems that the slowdown in the industry has now been getting crystallized into numbers.” He sees tough times ahead for engineering companies and that is the reason for the fall in the L&T stock."

BSE Capital Goods index plunged 788.19 points or 8.88% to 8,088.01. Areva T&D, Punj Lloyd, Crompton Greaves and Thermax fell 12-14%. Elecon Engg, Suzlon Energy, BEML, ABB, Alstom Projects and BHEL lost 6-8%.

The BSE Sensex plummeted 674.28 points or 5.87%, to settle at 10,809.12, after hitting an intraday low of 10,760.33. The NSE Nifty Fifty has touched an intraday low of 3324.55, before closing the day down by 180.25 points or 5.12% at 3338.40.

The BSE Midcap Index tumbled 171.55 points or 4.41% to 3,720.48 and the Small Cap Index closed at 4,393.45, down 222.44 points or 4.82%.Short build continued in Nifty futures; it ended at 0.6 premium. Aggressive short build up was seen in Index heavyweights. Aggressive short build up was also seen in infrastructure stocks post L&T results and short build up continued in Metal stocks. Fresh Short build up was seen in IT stocks as well.

Among the frontliners, Jaiprakash Associates, Reliance Communication, Reliance Infrastructure, L&T, Tata Steel and Sterlite Industries fell 10-14.5%. Not a single stock was in green on the Sensex while only three stocks namely Sun Pharma, BPCL and Hero Honda were in green on the Nifty.............MOre Weak global cues, disappointing L&T nos thrashed mkts

Sensex slips below 11K again; L&T tumbles 11%

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RBI cuts CRR by 100 bps to 6.5% / CRR cut again

RBI cuts CRR by 100 bps; announces measures to improve liquidity

The Reserve Bank of India, or RBI, has cut the CRR by 100 bps to 6.5% with effect October 11, reports CNBC-TV18. CRR is the amount that banks park with the central bank. The move will inject Rs 40,000 crore into the system.
The banks may borrow up to 50% of free Tier-I from foreign branches. The 0.5% NDTL Leeway on SLR will be in addition to 1% given since September 16. The additional leeway on SLR is purely a temporary measure to meet mutual funds’ cash needs. The central bank said it has been continuously monitoring the liquidity situation. The banks can borrow 0.5% more of NDTL at the special repo to lend to mutual funds. The rate ceiling on 1-3 year NRE(E)RA deposit will be Libor plus 100 bps. The higher FCNR(B), NR(E)RA deposit rates are effective immediately.

On October 10, RBI had cut the cash reserve ratio, or CRR, by 150 basis points to 7.5% to infuse liquidity into the system. This included a 50 bps CRR cut on October 6.The cut injected liquidity to the tune of Rs 60,000 crore into the system.

Earlier today, Finance Minister P Chidambaram said RBI will provide Rs 25,000 crrore to lending institutions immediately, reports CNBC-TV18. "It will give Rs 7,500 crore to commercial banks and Rs 17,500 crore to Nabard, or National Bank for Agriculture and Rural Development."

RBI’s measures have infused considerable additional liquidity into the market, he said. "The central bank will enable smooth flow of credit for term loans and working capital."

MOre @ RBI cuts CRR by 100 bps to 6.5%

CRR cut may soften lending rates: Bankers

------------------------------------------------

L&T Q2 net up 32% / L&T Q2 net up 32% at Rs 460 cr

Larsen and Toubro Ltd has posted 32 per cent rise in net profit at Rs 460.2 for the second quarter ended September 2008 against Rs 348.02 crore in July-September 2007.

The engineering and construction major posted a 42 per cent increase in its total income for Q2 at Rs 7,842.2 crore as against Rs 5,523.2 crore in same periods last year, according to filing with Bombay Stock Exchange.
The earnings per share after extra-ordinary item was Rs 15.74.
On October 08, the company allotted bonus equity shares of Rs 2 each, fully paid up, and in the ratio of one bonus share for every existing share to all registered shareholders as on the record date (October 3, 2008).
The earnings per share data disclosed above exclude the effect of the allotment of bonus shares.

---------------------------------------------

Source: ET,SIfy,BS etc

Q2 Results: IFCI, NDTV,South Indian Bk etc

IFCI net profit declines 47.91% in the September 2008 quarter

Sales decline 35.24% to Rs 383.11 crore
Net profit of IFCI declined 47.91% to Rs 259.06 crore in the quarter ended September 2008 as against Rs 497.29 crore during the previous quarter ended September 2007. Sales declined 35.24% to Rs 383.11 crore in the quarter ended September 2008 as against Rs 591.60 crore during the previous quarter ended September 2007.

---------------------------------------
South Indian Bank net profit rises 44.80% in the September 2008 quarter
Net profit of South Indian Bank rose 44.80% to Rs 51.68 crore in the quarter ended September 2008 as against Rs 35.69 crore during the previous quarter ended September 2007. Total operating income rose 31.22% to Rs 400.84 crore in the quarter ended September 2008 as against Rs 305.47 crore during the previous quarter ended September 2007.

Modern India net profit rises 63.92% in the September 2008 quarter
Jubilant Organosys reports net loss of Rs 24.39 crore in the September 2008 quarter
New Delhi Television reports net loss of Rs 13.04 crore in the September 2008 quarter
Sonata Software Q2 Cons net profit at Rs 21.6 cr

Indo Tech Q2 net profit at Rs 14.2 cr view table
Indo Tech Transformers has declared its second quarter results. Its net profit was at Rs 14.2 crore versus Rs 10.24 crore.

Mastek cons Q1 net profit at Rs 41.2 cr

Other Corp News:
RBI to inject Rs 20,000 cr to help MFs
Mark Mobius sees markets close to bottom
‘India will get 35% power from n-plants’
Banks allowed to take positions in interest futures

Larsen and Toubro to foray into Brazil by 2009
Jet, Kingfisher in talks for strategic tie-up
RBI to pump in Rs 20,000 cr to help MFs meet redemption needs
RBI sets rules on derivative contracts
Govt, RBI set to ease liquidity


Source:ET,Sify,BS, CM, IE etc

Sensex slides from intra-day high, but still ends 174 pts up

Sensex slides from intra-day high, but still ends 174 pts up
Nifty ends with modest gains as rally fizzles out

Equities ended off highs on Tuesday as profit booking set in at higher levels half way through the session. While buying was seen in IT and healthcare stocks, meltdown in commodities market weighed on metal stocks.

The Sensex and Nifty opened higher by 500 points and 150 points respectively, as other Asian markets welcomed the move by global economies to infuse liquidity in banks. Reserve Bank of India’s decision to infuse funds to the tune of Rs 20,000 crore through short-term lending route to help mutual funds meet their liquidity needs and overcome redemption pressure, further lifted sentiments. But the euphoria was short-lived as traders took it as opportunity to offload positions pulling indices to lower levels.

The BSE Sensex ended at 11,483.40, up 174.31 points or 1.54 per cent from its previous close. The index fell 400 points from the high of 11,870. NSE’s Nifty fell 130 points from its high of 3648.25 to close at 3,518.65, up 0.80 per cent or 27.95 points. The index touched a low of 3,491.50.

“Market opened with a gap-up but as selling emerged at higher levels the gap closed and the market ended on weak note. We are in a corrective rally and the bottom is not made yet. If 3,100 doesn’t hold, Nifty may fall to 2800-2850,” said, Bharat Dalal, fund manager, Dawnay Day AV Financial Services. BSE Midcap Index ended up 1.60 per cent and BSE Smallcap Index closed 2.25 per cent higher. BSE IT Index was up 5.36 per cent, BSE Healthcare Index moved 4.66 per cent higher and BSE Realty Index gained 1.84 per cent. BSE Metal Index ended 1.94 per cent lower.

Biggest Sensex gainers were Satyam Computer (7.38%), Infosys Technologies (5.87%), Jaiprakash Associates (5.2%), ICICI Bank (5.18%) and Reliance Infrastructure (5.09%). However, losses in Reliance Communications (-4.83%), Hindalco Industries (-4.11%), ONGC (-3.81%), HDFC Bank (-3.47%) and NTPC (2.7%) capped the upside. Market breadth on BSE showed 1,656 declines against 972 advances.

European markets continued with their up-run after several European governments came forward to inject funds in the banking system. FTSE 100 was up 5.69 per cent, CAC 40 advanced 5.09 per cent and DAX was up 5.33 per cent. US stock index futures are also pointing towards a gap-up opening on reports of plans to inject $250 billion into embattled banks. Dow Jones futures were up 0.4 per cent and Nasdaq 100 futures were up 1.2 percent.

Source:ET,Sify

If you had invested Rs 1 lakh on Jan 10, 2008...What would be the Value As on Oct 10 2008

If you had invested Rs 1 lakh on Jan 10, 2008...

A bout of negative news flows over the last few weeks has led to high volatility in the stock markets across the globe, including India. So much so that the Sensex has already fallen by more than 50 per cent from the all-time peak of 21206 on January 10 this year, and experts believe the markets might shed more weight in the near term owing to the current financial crisis, weak international cues and concerns of slowing down of world economy.

Last Friday also, the Sensex shed 800.17 points, after being down by close to 1,100 points at one stage, and ended at 10,527.85. In the current scenario, have you ever tried to find out the worth of your money if you had invested Rs 1 lakh in any of the following scrips on Jan 10, 2008?

Jaiprakash Associates
Closing on Jan 10: Rs 430.95
Closing on Oct 10: Rs 76.15
Change (%): (-) 82.33
Your Rs 1 lakh would now be worth: Rs 17,670

More Stk Comparison with details: If you had invested Rs 1 lakh on Jan 10, 2008...

Source:ET

Top Headlines Today

Top Headlines Today
Mkt recover on FM comments, positive global cues
Jet, Kingfisher join forces to tide over slump
Nano may roll out on Ratan Tatabs 71st bbday
No risk for ICICI UK arm: Moody's, S&P
Axis Bank Q2 net goes up by 77 per cent

BSNL to roll out 3G services in NE states, Chennai by Jan
Figures too can lie: IIP under cloud, govt works on new index
ICICI Bank surges 19 pc after CEO's assurance
Kamath asserts ICICI Bank has no liquidity problem
Billionaire investor Soros backs US' rescue plan

Axis Bank net surges 77% to Rs 403cr
Moody's, S&P also give clean chit
US stocks: Futures jump on bank rescues; Morgan higher
Core Projects and Technologies massive Fall
BSE Bulk Deals to Watch - Oct 13 2008
NSE Bulk Deals to WAtch - Oct 13 2008

Capital Goods
Futures and Options - Oct 13 2008
India Pharma
Markets pull back
Post Session Commentary - Oct 13 2008
Market recovers on firm global stocks

Suzlon Energy
CRR Cut, Infosys Technologies, Results Preview
Chemcel Biotech ends at 68% discount over IPO pric...
Reliance Industries
Market may remain volatile
Bullion metals drop for second straight day
Market may recover in volatile trade

SOurce:Sify,ET,Deadpresident,BS etc

Sensex (+781 pts) recover on FM comments, positive global cues

Mkt recover on FM comments, positive global cues

Bulls staged a strong comeback on Monday as sentiments turned positive on assuring comments from Finance Minister P Chidambaram and also as global markets opened higher after steps by European markets to curb on-going financial crisis.

After the worst fall last week, markets opened with a gap-up in line with other Asian markets on reports that European countries were collectively infusing funds to ease credit in banking system. In another development, UK government said it would inject $63 billion into three banks to keep liquidity crunch at bay.

Back home, Finance Minister Chidambaram’s statement that Indian economy was growing at a robust pace and assurances that the Reserve Bank of India will infuse more funds to fight credit squeeze boosted sentiments. Investors began taking long positions in frontline stocks which were battered heavily. Efforts by management of ICICI Bank to clear air on their financial positions helped as the scrip shot up recovering losses in previous sessions. “In early part of trade there was build-up of long positions and later as the market gained momentum, traders began to cover short positions, taking indices to higher levels,” said technical analyst, Birendra Kumar Singh of Religare Securities.

Bombay Stock Exchange’s Sensex closed at 11,309.09, up 7.42 per cent or 781.24 points. The index touched an intra-day high of 11,361.32 and low of 10,817.68. National Stock Exchange’s Nifty ended at 3490.70, up 210.75 points or 6.43 per cent. It touched a high of 3510.20 and low of 3272.90 during the day.

BSE Midcap Index was up 4.40 per cent and BSE Smallcap Index gained 3.85 per cent. “In this bear phase, Sensex has seen four pull-back rallies from its channel supports. Friday’s low of 10,239 was the fourth channel support. On earlier occassion, Sensex rallied some 3,000 points and now we may see 1,500-3,000 points rally. Targets for the Sensex will be 11,700, 12,000 and 12,500, provided it manages to close above 11,501. But if it falls below Friday’s low then we may see a continuation of negative trend and next target would be 9,898,” said Birendra Kumar. Reliance Communications (19.92%), Reliance Infrastructure (17.13%), ICICI Bank (16.71%), Sterlite Industries (15.99%) and HDFC Bank (12.58%) were the major Sensex gainers. Ranbaxy Laboratories (-5.88%) and ONGC (-1.02%) were the only losers. Market breadth remained extremely positive through the day. On BSE, there were 1687 advances against 926 declines.
---------------------------------------
Sensex gains 809 pts on strong global cues
Equities pull-back to close higher
Sensex above 11,000, ICICI Bank up 20%
Jet, Kingfisher join forces to tide over slump
-----------------------------------------------
AXIS Bank Q2 net up at Rs 402.91 cr
Bankex surges 12.3%, Axis Bank zooms 20% on strong Q2

AXIS Bank Ltd has announced the following Unaudited results for the quarter ended September 30, 2008:

The Bank has posted a net profit of Rs 402.91 crore for the quarter ended September 30, 2008 as compared to Rs 227.82 crore for the quarter ended September 30, 2007. Total Income has increased from Rs 2059.37 crore for the quarter ended September 30, 2007 to Rs 3239.45 crore for the quarter ended September 30, 2008.


Source: SIfy,ET

Investors Guide from ET and Mkt Outlook

Investor's Guide

Is there any respite on the anvil?13 Oct, 2008, 0455 hrs IST
Technical analysis assumes that all news, including what lies ahead, has been factored in the price of an asset. ETIG presents a snapshot of what the charts of Nifty and everything that affects it tell us...

The bull is dead, long live the bull 13 Oct, 2008, 0446 hrs IST, Shakti Shankar Patra
The very existence of free market capitalism seems to be at stake. JUST STAY OUT.

Markets in a bottomless pit 13 Oct, 2008, 0442 hrs IST, Deepak Mohoni
The market’s longterm (major) trend clearly remains down. It will be best to take the level to be crossed for a major uptrend (i.e. bull market) as the last but one intermediate top of 15,580, made on August 12.

Credit crisis may spur oil mergers in Africa 13 Oct, 2008, 0440 hrs IST
The global credit crunch can usher in a new wave of mergers and acquisitions (M&As ) in the oil sector, especially in Africa where small firms will find it difficult to bankroll exploration.

Oil on slippery terrain 13 Oct, 2008, 0435 hrs IST, Ramkrishna Kashelkar
Recent fall in crude oil prices will ease pressure on the government’s treasury, but refining companies are likely to take a hit.

Health check: Cipla and Dr Reddy's Labs 13 Oct, 2008, 0427 hrs IST, Kiran Kabtta
While Cipla follows a low-risk strategy of branded generics and alliances to grow in overseas markets, DRL believes in taking big bets.

Edelweiss maintains 'buy' recommendation on Opto Circuits 13 Oct, 2008, 0422 hrs IST
Edelweiss cancelled the proposed $100-million acquisition of an European company as the demanded price was not justifiable from an economic value perspective.

BNP Paribas maintains 'buy' rating on Shiv-Vani Oil & Gas 13 Oct, 2008, 0421 hrs IST
BNP Paribas maintains ‘buy’ rating on Shiv-Vani Oil & Gas, while reducing the target price from Rs 800 to Rs 522 on higher borrowing costs and multiple contractions.

Indian debt market: It ain't so grim after all 13 Oct, 2008, 0418 hrs IST, Karan Sehgal
The yield curve in the Indian debt market doesn’t necessarily suggest that doomsday is upon us.

Jain Irrigation Systems is good long-term bet for investors 13 Oct, 2008, 0413 hrs IST, Shikha Sharma....Jain Irrigation Systems’ expansion plans, diversified business model and improving efficiencies make it a good long-term bet for investors.
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Maximum downside of 3,050

Last week saw global carnage with all the major markets down by double-digits. The Nifty lost over 14 per cent at 3,279.95 points and it hit a low of 3,199 on Friday. The Sensex was off 15.95 per cent and the Defty down 16.65 per cent as the rupee tested support at Rs 49 before settling at Rs 48.72.

The FIIs have sold close to Rs 5,000 crore of equity in October and Indian institutions have sold about Rs 900 crore. Smaller stocks were harder hit with the Nifty Junior and the Midcaps 50 down 19.9 per cent and 21 per cent respectively. The BSE 500 was off 17.5 per cent. Volumes were moderate and calculation of advance-decline ratios was absurd, since there were almost no advances.

Outlook
Next week prices are likely to move between 3,050-3,450. By closing below 3,800, the market set a maximum downside target of 3,050-3,100, which could be fulfilled. Momentum indicators are oversold but prices could fall until short-covering is triggered close to settlement. But any bounce will be very sharp and a 200-250 point rise in a single-session is likely sometime next week. Either way, big intra-day swings are probable.

Rationale
There has seldom if ever, been a down move of comparable dimensions. Chart patterns of support/resistance are now based on mid-2006 trading patterns. Volumes have been low. There is no major short-term resistance between the Friday close of 3,279 and 3,450. A single session of buying could therefore drive prices up a lot.

Counter-view
Gut-feel says delivery-backed selling will continue, interspersed with occasional short-covering. But there is a chance the market could recover and consolidate with range-trading between 3,400-3,800. The intermediate downtrend started in mid-July and could mature over the next week or two.

Bulls & bears
Stay away from anything outside the highly liquid F&O population. Instead of seeking bullish stocks, which are not easy to locate, long traders could focus on over-sold counters. This is where bounces could generate 7-10 per cent in a single session. Power Grid and Ranbaxy are among the few stocks that actually seem bullish.
On the short side, most stocks that made downside breakouts have fulfilled initial target projections. But many stocks look as though weakness could intensify. These include GMR Infra, HCL Tech, HDFC, Hero Honda, RCom, Idea, Reliance Capital, Dabur, HUL, RPower and Suzlon.
In terms of critical sectors, metals may be bottoming out. While Tata Steel, Sesa Goa and Jindal Steel look to have further downsides, SAIL, Hindalco and Sterlite appear to have found support. In banking, PSUs such as Canara, Indian Overseas, Oriental and SBI look much stronger than ICICI, Kotak, Yes Bank, etc. The IT sector seems to have some downside as well – HCL Tech and Wipro look quite exposed along with second-rank stocks like Rolta and the entire ITES segment.

MICRO TECHNICALS
HCL TechCurrent Price: Rs 170.25Target Price: Rs 145
The stock made a downside breakout on high volumes. It has a target of Rs 145 and in fact, hit that level briefly on last Friday. Keep a stop at Rs 179 and go long. Wide stops are necessary because there could be a huge intra-day swing. Below Rs 150, start booking profits.

RILCurrent Price: Rs 1,527Target Price: Rs 1,630

The stock made another downside breakout when it closed below Rs 1,630. It appears to have good support at the current level and short-covering could pull the price back till Rs 1,630. Keep a stop at Rs 1,510 and go long. Book profits above Rs 1,615.

Reliance PowerCurrent Price: Rs 124.15Target Price: Rs 112
The stock has made a downside breakout to hit another historic low. It has a possible target of about Rs 110. Keep a stop at Rs 127 and go short. Start booking profits below Rs 114. If the stock does climb above the Rs 128 stop, it could move till Rs 136 on the bounce.

Yes BankCurrent Price: Rs 71.95Target Price: Rs 65
The stock has made a downside breakout on a big volume expansion. It has a likely target of Rs 65 although there could be some support at current levels. If it bounces within the next three sessions, the upside target will be about Rs 90. Take a stop at Rs 75 and go short. Cover at Rs 65. If the stop is triggered, go long with a target of Rs 90 and a stop at Rs 74.

Source: ET,BS