Dow Sinks 777 pts as Stunning Defeat for Bailout Plan Torpedoes Stocks

Stunning Defeat for Bailout Plan Torpedoes Stocks; Dow Sinks Over 750

Dow 10,365.45 -777.68 (-6.98%) - 3 yr low.......
Nasdaq 1,983.73 -199.61 (-9.14%)
S&P 500 1,106.42 -106.59 (-8.79%)

Wall Street's worst fears came to pass Monday, when the government's financial bailout plan failed in Congress and stocks plunged precipitously -- hurtling the Dow Jones industrials down nearly 780 points in their largest one-day point drop ever. Credit markets, whose turmoil helped feed the stock market's angst, froze up further amid the growing belief that the country is headed into a spreading credit and economic crisis.

Stunned traders on the floor of the New York Stock Exchange, their faces tense and mouths agape, watched on TV screens as the House voted down the plan in mid-afternoon, and as they saw stock prices tumbling on their monitors. Activity on the floor became frenetic as the "sell" orders blew in.

The Dow told the story of the market's despair. The blue chip index, dropped by hundreds of points in a matter of moments, and by the end of the day had passed by far its previous record for a one-day drop, 684.81, set in the first trading day after the Sept. 11, 2001, terror attacks.
The selling was so intense that just 162 stocks rose on the NYSE -- and 3,073 dropped.

It takes an incredible amount of fear to set off such an intense reaction on Wall Street, and the worry now is that with the $700 billion plan fate uncertain, no one knows how the financial sector hobbled by hundreds of billions of dollars in bad mortgage bets will recover. While investors didn't believe that the plan was a panacea, and understood that it would take months for its effects to be felt, most market watchers believed it was a start toward setting the economy right after a credit crisis that began more than a year ago and that has spread overseas.

"Clearly something needs to be done, and the market dropping 400 points in 10 minutes is telling you that," said Chris Johnson president of Johnson Research Group. "This isn't a market for the timid."

The plan's defeat came amid more reminders of how troubled the nation's financial system is -- before trading began came word that Wachovia Corp., one of the biggest banks to struggle due to rising mortgage losses, was being rescued in a buyout by Citigroup Inc. It followed the recent forced sale of Merrill Lynch & Co. and the failure of three other huge banking companies -- Bear Stearns Cos., Washington Mutual Inc. and Lehman Brothers Holdings Inc.; all of them were felled by bad mortgage investments.

And it raised the question: Which banks are next, and how many? The Federal Deposit Insurance Corp. has a list of over 110 banks that were in trouble in the second quarter, and that number surely has grown in the third.

Wall Street is contending with all these issues against the backdrop of a credit market -- where bonds and loans are bought and sold -- that is barely functioning because of fears that anyone lending money will never be paid back. The evidence of the credit markets' ills could again be found Monday in the Treasury's 3-month bill -- investors were stashing money there, willing to take the tiniest of returns simply to be sure that their principal would survive in what's considered the safest investment. The yield on the 3-month bill was 0.15, down from 0.87, and approaching zero, a level reached last week when fear was also running high.

On Wall Street, according to preliminary calculations, the Dow fell 777.68, or 6.98 percent, to 10,365.45. The decline also surpasses the 721.56-point intraday decline record also set during the first trading day after the terror attacks. Still, in percentage terms, the decline remained well below the more than 20 percent drops seen on Black Monday of October 1987 and the Depression.

Broader stock indicators also tumbled. The Standard & Poor's 500 index declined 106.85, or 8.81 percent, to 1,106.42.

The technology-heavy Nasdaq composite index fell 199.61, or 9.14 percent, to 1,983.73.
New York Stock Exchange: http://www.nyse.com/
Nasdaq Stock Market: http://www.nasdaq.com/
--------------------------------------------------
AT A GLANCE: US House Defeats Bailout Plan; Stock Mkts Dive
US stocks slide, Dow plunges 777 points, as bailout bill fails
Bailout Delay Stuns The Street
House ignores Bush, rejects $700B bailout bill -
U.S. bailout rejected; fear seizes markets
Bush to meet economic team after bailout rejected

Oil drops nearly 10 percent as House rejects bailout
Dow in record drop 5:40pm ET
The Dow index plunged, marking its biggest one-day point drop ever, after lawmakers rejected a $700 billion financial bailout. Full Article Video
Analysts: "Market left to own devices"
Factbox: Key points of bailout plan
Blog: Disaster or vote for the people?
House Rejects Bailout Package, 228-205; Stocks Plunge
$US700b bailout deal voted down

Why the Bailout Bill Failed
US House rejects massive Wall Street bailout
US Treasury vows to protect financial mkts30 Sep, 2008, 0200 hrs IST, AGENCIES
Treasury vowed to protect financial markets after the House rejected a proposed $700 bn rescue bill for the financial system. In pics: US House rejects bailout bill
US House ignores Bush, rejects $700 bn bailout bill
Dow sinks 770 points after US lawmakers reject bailout

Oil drops nearly 10 pc as US House rejects bailout30 Sep, 2008, 0200 hrs IST, REUTERS
Oil prices dropped nearly 10% after the US House of Representatives rejected the $700 bn rescue package for the financial sector. Chronology of US financial crisis
Gold surges on safe-haven buying, failed bailout

A Dangerous Moment
Why the Bailout Failed
Most Texans in House vote against rescue bill
Bailout failure shows Bush's weakness


SOurce:all related sources.

Market slumps on global financial instability; Sensex hits 18-month low

Market slumps on global financial instability; Sensex hits 18-month low

Stocks fell across the globe on persistent questions on the effectiveness of the US bailout package and on continued instability in the global banking sector. The domestic market fell for the third consecutive trading session with Sensex declining 1,096.77 points in last three sessions. The barometer index today ended 506.43 points down.

The market recovered after witnessing a sharp intra-day fall. The BSE Sensex recovered close to 200 points from the day's low. The barometer index hit 1-½ year low and the S&P CNX Nifty hit its lowest level in 17 months in mid-afternoon trade.

The market breadth was extremely weak as selling was witnessed across the board. ICICI Bank fell more than 12%.The US lawmakers agreeing on a $700 billion bank-rescue package and the House of Representatives approving the nuclear deal with India over the weekend failed to boost the investor sentiments.

European markets which opened after Indian markets were down. France’s CAC 40, Germany’s DAX and UK’s FTSE 100 were down between 2.77% to 3.04%. European markets fell as the Belgian, Dutch and Luxembourg governments were forced to rescue financial firm Fortis over the weekend. Stricken UK lender Bradford & Bingley was also nationalised after its branch network and deposit business was sold to Spain's Banco Santander.Most Asian markets were trading lower today, 29 September 2008. Hong Kong's Hang Seng, Japan's Nikkei, Singapore's Straits Times, South Korea's Seoul Composite fell between 1.26% 4.07%.In US, congressional leaders from both parties said they had a tentative agreement on Sunday, 28 September 2008 and lawmakers prepared to vote on Monday, 29 September 2008, on a $700 billion US government fund to buy bad debt. The bailout plan will be introduced in the House of Representatives today, 29 September 2008 and then head to the Senate.Meanwhile, the Indo-US nuclear deal moved into the last lap clearing a major hurdle when the House of Representatives approved a legislation on it that will now go to the Senate before the two countries can implement the civil nuclear agreement.The BSE 30-share Sensex plunged 506.43 points or 3.87% to 12,595.75. The index shed 699.34 points at the day's low of 12,402.82 hit in mid-afternoon trade. The Sensex edged up 11.35 points at day’s high of 13,113.53, hit at the onset of the trading session.The S&P CNX Nifty was down 135.20 points or 3.39% to 3,850.05.The BSE Sensex is down 7,691.24 points or 37.91% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 8,611.02 points or 40.6% below its all-time high of 21,206.77 struck on 10 January 2008. The index is down 1,096.77 points from a recent high of 13,692.52 hit on 24 September 2008.BSE clocked a turnover of Rs 4,579 crore today 29 September 2008 as compared to a turnover of Rs 4,850.22 crore on Friday 26 September 2008.Nifty October 2008 futures were at 3880.40, at a premium of 30.35 points as compared to spot closing of 3850.05. NSE's futures & options (F&O) segment turnover was Rs 59,905.71 crore, which was higher than Rs 44,297.14 crore on Friday, 26 September 2008.As per the provisional figures on BSE, the foreign institutional investors (FII)s sold shares worth Rs 476.94 crore while domestic funds bought shares worth Rs 554.82 crore today,29 September 2008.The BSE Mid-Cap index was down 4.13% at 4,736.55 and the BSE Small-Cap index was down 5.12% at 5,561.42.BSE Bankex (down 6.02% to 6,175.10), BSE Consumer Durables index (down 5.68% to 2,872.39), BSE IT index (down 5.47% to 3,057.92), BSE Realty index (down 5.26% to 3407.87), BSE Power index (down 5.22% to 2225.08), BSE TEck index (down 5.13% to 2,490.01), BSE Capital Goods index (down 4.86% to 10,270.60) underperformed Sensex.BSE Metal index (down 3.77% to 9,144.23), BSE HealthCare index (down 3.06% to 3,651.18), BSE Auto index (down 2.95% to 3,624.24), BSE PSU index (down 2.88% to 6,146.61), BSE Oil & Gas index (down 1.72% to 8,925.01) and BSE FMCG index (down 0.44% to 2,179.50) outperformed Sensex.The market breadth was weak on BSE with 357 shares advancing as compared to 2,287 that declined. 41 shares remained unchanged.India’s largest private firm by market capitalization and oil refiner Reliance Industries fell 1.53% to Rs 1,930.95. The stock recovered from the session’s low of Rs 1,881.India’s largest FMCG firm by sales Hindustan Unilever rose 0.79% to Rs 254.50.India’s largest oil exploration firm by revenue ONGC was down 1.14% at Rs 1,023.30. It recovered from the session’s low of Rs 994.India’s fourth largest IT exporter by sales Wipro fell 0.19% to Rs 343.10. It recovered from the session’s low of Rs 330.10.India’s largest private sector bank in terms of net profit ICICI Bank slumped 12.11% to Rs 493.30. The bank clarified today during the market hours that 98% of ICICI Bank UK PLC's non-India investment book is rated investment grade and above. ICICI Bank UK PLC has zero exposure to US subprime-credit, it said.India’s largest real estate player by market capitalization DLF fell 5.12% to Rs 350.60. It recovered from the session’s low of Rs 329.India’s largest electric equipment maker by sales Bharat Heavy Electricals declined 2.65% to Rs 1,509.50. It recovered from the session’s low of Rs 1,441.India’s largest home loan lender HDFC fell 2.68% to Rs 2,032.75. It recovered from the session’s low of Rs 2000.Jaiprakash Associates (down 11.85% to Rs 106.70), Satyam Computer Services (down 9.13% to Rs 292.55), Tata Consultancy Services (down 8.4% to Rs 619.65), edged lower from the Sensex pack.Reliance Natural Resources clocked the highest volume of 1.42 crore shares on BSE. IFCI (89.91 lakh shares), Chambal Fertilisers and Chemicals (71.69 lakh shares), Jaiprakash Associates (63.84 lakh shares) and ICICI Bank (58.37 lakh shares) were the other volume toppers in that order.Reliance Capital clocked the highest turnover of Rs 309.01 crore on BSE. Reliance Industries (Rs 299.81 crore), ICICI Bank (Rs 295.37 crore), Axis Bank (Rs 157.21 crore) and Larsen & Toubro (Rs 134.79 crore) were the other turnover toppers in that order.US light crude for November delivery fell $1.09 to $105.85 a barrel today, 29 September 2008 pressured by gains in the US dollar.US stocks rose on Friday, 26 September 2008. The Dow Jones gained 121.07 points, or 1.10%, to 11,143.13. The S&P 500 index was up 3.83 points, or 0.32%, to 1,213.01, and the Nasdaq composite index was down 3.23 points, or 0.15%, to 2,183.34.Back home, indices tumbled on Friday, 26 September 2008 on uncertainty about the future of the US financial system. The BSE 30-share Sensex fell 445 points or 3.28% to 13,102.18 and the S&P CNX Nifty lost 137.10 points or 3.34% to 3985.25, on that day.Key benchmark indices suffered a severe setback in the week ended Friday, 26 September 2008, mirroring weak global market and amid impasse over the proposed $700 billion bailout deal for the US financial sector. The barometer index BSE Sensex lost 940.14 points or 6.69% to 13,102.18 in and the S&P CNX Nifty shed 260 points or 6.12% at 3985.25, in the week.
-----------------------------------------------
Post Session Commentary - Sep 29 2008

Domestic markets crashed today to trade deep into red and ended with sharp losses. Markets plunged to its lowest since April 2007 tracking the weak cues from the European markets. The ABN Amro takeover partner Fortis was rescued in a three-way Government bailout. The governments of Belgium, the Netherlands and Luxembourg launched an 11.2 billion euro ($16.4 billion) rescue for Fortis late Sunday. The three governments agreed to inject capital to buy 49% interests in Fortis-owned banking subsidiaries operating in each of their jurisdictions.Along with this, Britain nationalized Bradford & Bingley on Monday, making the buy-to-let mortgage lender the second bank to be taken into public ownership this year as a deepening financial crisis. The Treasury would take over B&B''s mortgage portfolio 50 billion pounds ($92 billion) worth and sell its branches and deposits of 20 billion pound savings to Spanish bank Santander. The BSE Sensex had lost more than 3% and slipped below the 12500 mark. The NSE Nifty below the 3850 mark with loss of more than 3%. Markets opened on flat note and suddenly lost its ground due to the selling pressure across the board as weak Asian markets weighted on sentiment. Further, blood bath continued on the market and markets carried on its south journey after 45-minute stoppage on account of sun outage as the rescue bailout plan has not impressed the investors in the market. Finally markets ended with huge losses. From the sectoral front, all stocks ended in red and Bank index under performed the benchmark index as witnessed deep cut of more than 6%. Along with that, huge sell of was also witnessed in Capital Goods, Metal, IT, Oil & Gas, Consumer Durable and Reality stocks. The market breadth was extremely negative as 2287 stocks closed in red while 357 stocks closed in green and 41 stocks remained unchanged.The BSE Sensex closed lower by 506.43 points at 12,595.75 and NSE Nifty ended down by 135.20 points at 3,850.05. The BSE Mid Caps and Small Caps closed with losses of 211.43 points at 4,729.33 and by 308.75 points at 5,553.03. The BSE Sensex touched intraday high of 13,113.53 and intraday low of 12,402.84.Losers from the BSE are ICICI Bank Ltd (12.11%), JP Associates (11.85%), Satyam Computer (9.13%, TCS Ltd (8.40%), Tata Power (6.95%), Reliance Infra (6.56%), Reliance Com Ltd (6.11%), Ranbaxy Lab (6.08%), M&M Ltd (5.36%), DLF Ltd (5.12%) and L&T Ltd (4.98%).Only gainer from BSE is HUL ended higher by (0.79%).The BSE Capital Goods index lost 524.59 points to close at 10,270.60. Major losers are Usha Martin (12.31%), Suzlon Energy (12.19%), Bharat Bijli (9.90%), Walchand In (8.99%), Jyoti Struct (8.27%) and Reliance Industrial Infra (7.83%).The BSE Bank index dropped by 395.44 points to close at 6,175.10. As ICICI Bank Ltd (12.11%), Karnataka Bank (9.61%), OBC (8.11%), IOC (6.48%), Yes Bank (6.42%) and Kotak Bank (4.97%) closed in negative territory.The BSE Metal index plunged 357.86 points to close at 9,144.23. Major losers are JSW SL (11.67%), Jindal Saw (10.08%), Welspan Gujarat Sr (6.97), Hindustan Zinc (5.94%), NMDC Ltd (4.76%) and Jindal Steel (4.63%).The BSE Reality index closed lower by 189.11 points at 3,407.87. Losers are Housing Development (13.72%), Sobha Dev (9.59%), Orbit Co (9.51%), Anant Raj (8.47%), Akruti City (8.42%) and Indiabull Real (7.73%).The IT index lost 177.02 points to close at 3,057.92. As Aptech Ltd (13.11%), NIIT Ltd (10.62%), Moser Bayer (10.60%), Rolta India (10.04%), Satyam Computer (9.13%) and TCS Ltd (8.40%) closed in negative territory.The BSE Consumer Durable index ended down by 172.96 points at 2,872.39 as Rajesh Export (11.42%), Blue Star L (11.24%), Videocon Ind (9.16%), Gitanjali GE (3.03%) and Titan Ind (1.43%) ended in negative territory.
-------------------------------------------------
Market sinks as rising failures likely to undo bailout
Nifty slips below 3900, realty & banking most hit
Rupee drops to 5-year low as stocks slide
Investors lose Rs 5 trillion since Lehman collapse
Markets tumble; Sensex loses 506 pts to 2-month low level
Citigroup to buy Wachovia's banking biz

Mitsubishi UFJ buys 21% stake in Morgan Stanley
Citibank acquires Wachovia
US stocks open sharply lower ahead of bailout vote

Source:ET,BL,Deadpresident blog

Sensex(-506), Nifty(-135) Hits new Year low as Global Fin crisis tumbles....

Mkts close sharply lower; Sensex below 13K

29 Sep, 2008, 1651 hrs IST, ECONOMICTIMES.COM
Nifty ended at 3850.65, down 135.6 points. Sensex closed at 12,595, losing 506 points.

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

Equities ended on a bleak note Monday, tracking the fall of European financial giants like UK’s Bradford & Bingley Plc, Belgium’s Fortis Financial, and Germany’s Hypo Real Estate Holding AG swept in the wake of the US credit crisis. National Stock Exchange’s Nifty ended at 3869.65, down 115.6 points or 2.90 per cent from Friday’s close. The 50-share index sank to a low of 3777.30 intraday. Bombay Stock Exchange’s Sensex closed at 12,629.60, below the 13K level, losing 472.58 points or 3.61 per cent. It slumped to the day’s low of 12,402.84. All eyes are on the financial market turmoil sweeping across the world. Bear Stearns, Fannie Mae, Freddie Mac, Lehman Bros, AIG, Washington Mutual, Fortis Financial, Bradford & Bingley... and more are expected to join this list of banks and investment firms seeking bailout. In the latest development, the UK government seized the biggest lender to landlords after its failure to get funds and competitors refused to buy mortgage loans gone bad. It is the second British bank after Northern Rock Plc to be nationalised this year. Spain's Banco Santander has agreed to pay 612 million pounds ($1.1 billion) for Bradford & Bingley's 197 branches and 20 billion pounds of deposits. Meanwhile, regulators in Belgium, the Netherlands and Luxembourg injected 11.2 billion euros ($16.3 billion) to save Fortis. In Washington, the House of Republicans authorised spending $700 billion to buy assets impaired by the collapse of the subprime mortgage market. Banks worldwide have reported writedowns and loan losses $554 billion since the crisis started. Back home, the losers were led by ICICI Bank (-12.11%), JP Associates (-11.85%), Satyam Computer (9.13%), TCS (-8.4%), Tata Power (-6.95%), among others. Hindustan Unilever was the only stock standing among the 30 index components. It was up 0.79 per cent. Advances across BSE were 357 against declines of 2,287. Stocks unchanged were 41. (All figures provisional)

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

Bush confident bailout bill will stabilize economy
Falling share price sees promoters take to buy backs
Wachovia's shares fall 55%
TCS, Satyam Computer hit 52-week lows intraday

Rupee falls past 47.04 to 5-yearr low

US unveils $700 bn bailout deal
"US crisis will have impact in China"
AIG mulls sale of 15 businesses to repay $85 bn govt loan

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

Another bearish day: Sensex sheds 4%, ICICI drags

The Sensex opened almost flat at 13,110 - up eight points, touched a high of 13,114, and soon slipped into the negative zone owing to weak global cues.

Asian markets were weak this morning on uncertanaity over the $700 billion US bailout plan. Later on, the European markets, too, opened on a weak note, and US futures also indicated a negative start from Dow and Nasdaq.
Bank home, banking, realty and technology stocks bore the brunt of the selling, as the index tumbled to a new calender year low of 12,403 - down 699 points from the previous close.

However, some buying towards the end helped the Sensex recoup some of its losses, and finally end at 12,596 - down 506 (3.9%) points. In the process, the index has now shed 8% (1,097 points) in the last three trading sessions.
The market breadth was extremely negative - out of 2,684 stocks traded, 2,282 declined, 361 advanced and 41 were unchanged today.
INDEX SHAKERS...
ICICI Bank and Jaiprakash Associates slumped around 12% each to Rs 493 and Rs 107, respectively.
Satyam plunged over 9% to Rs 293, and TCS tumbled 8.4% to Rs 620.
Tata Power shed 7% at Rs 918. Mahindra & Mahindra and Reliance Infrastructure slipped over 6.5% each to Rs 495 and Rs 794, respectively.
Reliance Communications and Ranbaxy declined over 6% each to Rs 326 and Rs 256, respectively.
DLF and Larsen & Toubro dropped around 5% each to Rs 351 and Rs 2,345, respectively.
Tata Motors and NTPC slipped over 4.5% each to Rs 356 and Rs 166, respectively.
Infosys, Bharti Airtel and HDFC Bank were down nearly 4% each to Rs 1,392, Rs 747 and Rs 1,200, respectively.
VALUE & VOLUME TOPPERS
Reliance Capital topped the value chart with a turnover of Rs 309 crore followed by Reliance (Rs 299.80 crore), ICICI Bank (Rs 295.40 crore), Axis Bank (Rs 157.20 crore) and Larsen & Toubro (Rs 134.70 crore).
Reliance Natural Resources led the volume chart with trades of around 1.42 crore shares followed by IFCI (89.90 lakh), Chambal Fertilisers (71.70 lakh), Jaiprakash Associates (63.80 lakh) and ICICI Bank (58.40 lakh).

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

Sensex ends 506 pts down; Nifty loses 135 pts

Source:Sify,ET,BS

Week Ahead: Market likely to test support at 3,800

Week Ahead: Market likely to test support at 3,800

The market nosedived after a quiet settlement. The Nifty closed at 3,985.25 points for a loss of 6.12 per cent while the Sensex lost 6.69 per cent to close at 13,102. The Defty was down 7 per cent in a week when the rupee slid to 46.4. The FIIs continued to be net sellers while the domestic institutions were marginally negative until the settlement day.

Volumes were low and carryover moderate. Declines far outnumbered advances. Every sector of the market was hard hit. The Junior lost 6.5 per cent while the Midcaps 50 lost 6.9 per cent and the BSE 500 lost 6.09 per cent. The CNXIT lost a disproportionate 12 per cent and the Bank Nifty lost 7.7 per cent.

Outlook: The breach of support at 4,000 means that the support at 3,800 is very likely to be tested again next week. It is quite likely that it will be broken this time. Every indication is that we are in an intermediate downtrend and the combination of low volumes and adverse breadth could be toxic.

Rationale: The market held its ground until settlement because that was a trigger for short-covering. No such trigger exists in a brand-new settlement.
All the other signals are negative and even if the market is over-sold, it could drop further. This seems to be the early stages of an intermediate downtrend and the market trends are in “phase” with both the short-term and long-term trends running negative as well. That means strong downwards pressure.

Counter-view: The weakness is basically due to global cues. If there is a confidence boost in the US, that would contribute to a turnaround in sentiment. There’s support at 3,950 and 3,900 and 3,850. There could be rallies from any of these points. However, even if there are small rallies at those points, a full reversal doesn’t seem likely. There will be powerful upside resistance at 4,050 and beyond that, between 4,150 and 4,180.

Bulls & bears: The advances-declines ratios have been overwhelmingly negative. There are no obviously bullish stocks in the F&O space and stocks outside that universe are mainly negative and also lack liquidity at the moment. The IT, banking and real estate sectors have been amongst the worst hit but every sector has lost ground.

FMCG is a traditional haven in times of trouble and it has been among the better performers with ITC, Dabur, Colgate, HUL all holding their ground. Apart from these, there were a few isolated winners such as Sun Pharma, Sesa Goa, Tata Communications and HCL Infosystems. Keep tight stops if you go long.

The bulk of the market, that is, almost 90 per cent of NSE listings lost ground. In such circumstances, it’s better to stick to extremely liquid stocks while trading and obviously, it makes more sense to stay on the short side. Look for stocks that seem to be still some distance off reliable supports when going for short positions.


MICRO TECHNICALS
Infosys Current Price: Rs 1,446.90Target Price: Rs 1,400
The stock has made a downside breakout and hit a support that probably will not hold. It is likely to slide till Rs 1,400 where it will hit a much stronger support. Keep a stop at Rs 1,460 and go short. Be prepared for wild swings caused by the Axon takeover battle. It has the potential for an upswing till Rs 1,510, so be prepared to trade long if the Rs 1,460 stop is broken.

Reliance Industries Current Price: Rs 1,963Target Price: Rs 1,885
The stock has slid from the Rs 2,100 level. It has some support at Rs 1,940 but it’s likely to break that and slide till it hits a band of support between Rs 1,880-Rs 1,900. Keep a stop at Rs 1,975 and go short. Start covering at Rs 1,900

Sun Pharma Current Price: Rs 1,472.5Target Price: Rs 1,490
Under less bearish market conditions, one would have hoped that the stock had an upside target of Rs 1,520 on its next upmove. That is unlikely but it should have the potential to climb till Rs 1,490. There is good support at Rs 1,460. Keep a stop at Rs 1,460 and go long.

Tata CommunicationsCurrent Price: Rs 470.85 Target Price: Rs 490
The stock has made an upwards breakout on strong volume expansion. It has a likely target of Rs 490 and it may have the strength to go further, till it hits stiff resistance at Rs 500. Keep a stop at Rs 460 and go long..
--------------------------------------------------------
Indiabulls Securities puts 'buy' on Power Grid Corporation29 Sep, 2008, 0443 hrs IST
Indiabulls Securities initiates coverage on Power Grid Corporation with a ‘buy’ rating.

Deutsche Bank has a ‘sell’ rating on Karnataka Bank 29 Sep, 2008, 0442 hrs IST
Deutsche Bank has a ‘sell’ rating on Karnataka Bank with a target price of Rs 115. The ‘sell’ call is based on the following parameters:

HSBC retains ‘overweight’ rating on Bharti Airtel 29 Sep, 2008, 0442 hrs IST
HSBC retains ‘overweight’ rating on Bharti Airtel with a target price of Rs 1,002.

Motilal Oswal downgrades Reliance Capital to ‘neutral’ 29 Sep, 2008, 0441 hrs IST
Motilal Oswal downgrades Reliance Capital to ‘neutral’ with a revised target price of Rs 1,340.

Macquarie initiates coverage on OnMobile Global with an ‘outperform’ rating 29 Sep, 2008, 0440 hrs IST
Macquarie initiates coverage on OnMobile Global with an ‘outperform’ rating and a target price of Rs 650.

Kotak Securities reiterates a ‘buy’ rating on Sesa Goa 29 Sep, 2008, 0440 hrs IST
Kotak Securities reiterates a ‘buy’ rating on Sesa Goa with a target price of Rs 300 per share for an investment horizon of eight months.

HDFC Securities puts 'buy' on Bartronics India 27 Sep, 2008, 0000 hrs IST
HDFC Securities has initiated coverage on the stock with a ‘buy’ rating saying the fast growing AIDC (Automatic Identification and Data Capture) technology in India will further boost the company’s order book and topline.

CLSA Research maintains 'buy' on HDFC 27 Sep, 2008, 0000 hrs IST
CLSA Research has maintained a ‘buy’ rating on the stock saying HDFC has not seen deterioration in asset quality due to rise in rates and its plans to list a couple of subsidiaries in CY09 may act as a catalyst.
------------------------------------------------
Top stories
General Atlantic: The Wealth Effect29 Sep, 2008, 0427 hrs IST, Supriya Verma Mishra
ET caught up with General Atlantic’s managing director, Sunish Sharma , to learn about his future strategies for the Indian market.

Glodyne Technoserve: System Upgrade 29 Sep, 2008, 0424 hrs IST, Santanu Mishra
Glodyne Technoserve’s thrust on inorganic growth and higher offshoring of infrastructure management services make it an attractive bet.

NTPC: A Show Of Strength 29 Sep, 2008, 0421 hrs IST, Ashish Agrawal
NTPC’s existing operations, ongoing expansion plans and high profitability make it an ideal pick for long-term investors.

Aban Offshore: Tapping The Riches 29 Sep, 2008, 0415 hrs IST, Ramkrishna Kashelkar
Aban Offshore looks promising, given its future growth prospects. But its highly leveraged status makes it a better fit for investors with a high risk appetite.

Stocks that have bucked the market trend 29 Sep, 2008, 0354 hrs IST, Karan Sehgal
Even in the current bear market, there are some stocks which have bucked the trend and investors can cash in on this opportunity. Sun Pharma, Lupin, Coromandel Fertilisers and Lakshmi Energy & Foods appear to be the best bets among such stocks.

Gold offers a glimmer of hope 29 Sep, 2008, 0348 hrs IST, Kiran Kabtta & Devangi Joshi
The global credit crisis has left investors feeling drained and devoid of investment options. In such trying times, gold offers a glimmer of hope.

Global equities gains vanish into thin air 29 Sep, 2008, 0343 hrs IST, Shakti Shan Karpatra
The dead cat bounce that global equities had witnessed in the third week of September turned out to be shorter than what even the bears would have liked.

Time to test market bottom again 29 Sep, 2008, 0336 hrs IST, Deepak Mohoni
The market started falling again, with the BSE Sensitive Index finishing the week 6.7% or 940 points lower, and the Nifty ending 6.12% down.


Source:ET,BS.

Want your name to float around in space? Log on to NASA

Want your name to float around in space? Log on to NASA

Washington: For people who want their names to float around in space, NASA has created a website that would enable anyone to place their name on the agency’s Glory satellite. The “Send Your Name Around the Earth” Web site enables everyone to take part in the science mission and place their names in orbit for years to come.

Chennai and India’s first ‘spy glass’

The Web site, where participants can submit their information, is located at: http://polls.nasa.gov/utilities/sendtospace/jsp/sendName.jsp Participants will receive a printable certificate from NASA and have their name recorded on a microchip that will become part of the spacecraft. NASA’s Glory satellite is the first mission dedicated to understanding the effects of particles in the atmosphere and the sun’s variability on our climate.

US scientists unveil world’s thinnest balloon

The Glory satellite will allow scientists to measure airborne particles more accurately from space than ever before. The particles, known as “aerosols,” are tiny bits of material found in Earth’s atmosphere, like dust and smog. “Undoubtedly, greenhouse gases cause the biggest climatic effect,” said Michael Mishchenko, the Glory project scientist at NASA’s Goddard Institute for Space Studies in New York. “But, the uncertainty in the aerosol effect is the biggest uncertainty in climate at the present,” he added. Glory will carry two scientific instruments, the Aerosol Polarimetry Sensor, or APS, and the Total Irradiance Monitor, or TIM, and two cameras for cloud identification.

The APS instrument will help quantify the role of aerosols as natural and human-produced agents of climate change more accurately than existing measurement tools. The TIM instrument will continue 30 years of measuring total solar irradiance, the amount of energy radiating from the sun to Earth, with improved accuracy and stability. Understanding the sun’s energy is an important key to understanding climate change on Earth. Glory is scheduled for launch in June 2009 from Vandenberg Air Force Base in California. Glory will orbit as part of the Afternoon Constellation, or “A-Train,” a series of Earth-observing satellites.
-----------------------------------------------
Chandrayaan-1 may be launched on Oct 19
http://sify.com/news/scitech/fullstory.php?id=14761398

Weather permitting, India's maiden moon mission, Chandrayaan-1, may lift off on October 19 from Sriharikota in Andhra Pradesh, scientists associated with the odyssey indicated on Thursday.
"The tentative date is October 19," they said in Bangalore after completing all the work on the cuboid-shaped 590 kg spacecraft that will carry 11 payloads.
Also read: Centre fails to take a stand on homosexuality
Meanwhile, the government on Thursday approved a sequel to the mission few years down the line.
"The Union cabinet today gave its approval for undertaking lunar mission Chandrayaan-2 and upgrading the associated existing ground segment at a total cost of Rs 425 crores (Rs 4.25 bn)," Information and Broadcasting Minister P R Dasmunsi told reporters in New Delhi after a cabinet meeting chaired by Prime Minister Manmohan Singh.
Chandrayaan-1 will be launched by indigenous Polar Satellite Launch Vehicle (PSLV) and will carry payloads of six foreign countries - the US, Britain, Germany, Sweden and Bulgaria - apart from those of India.
Scientists said that the Chadrayaan-1 spacecraft would be shipped later this month, most likely on September 30, to the Satish Dhawan Space Centre at Sriharikota for the launch.
Foreign news magazines can have Indian editions
"We have completed the integration of the satellite," Chandrayaan-1 director M Annadurai told reporters at ISRO Satellite Centre in Bangalore.
Chandrayaan-1, estimated to cost nearly Rs 4 billion, will beam back digital elevation maps of the moon and its mineral concentration, as also carry out environmental studies and measure radioactivity on the lunar surface.
It will try to find the traces of atomic elements such as Radon, Uranium and Thorium.


Source:Sify

Pvt Equity, MnA Deals

HCL Tech Makes Counter Bid For Axon; Infosys On Defensive

HCL has offered to pay 650 pence a share, 8.3% more than the 600 pence offer by Infosys.

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

ASK Realty and Schroders Investment Hire Real Estate Heads
J.P. Morgan & Chase Announces $10 Billion Capital Raise
SEBI Gives Nod To DSP Merrill's New Name
Autoline Industries Acquires Italian Companies For $13 Million
Piramal Appoints Murari Rajan To Head M&A, Strategy
Govt Starts Rs 10 Crore Fund For Budding Designers

Avigo To Close Third Fund of $300M By Year End; IFC To Invest $30M
J.P. Morgan & Chase Announces $10 Billion Capital Raise
Deal Slowdown: 3i Group Cuts Investments By 40%
BPL Gets Deutsche Banks "Vote of Confidence"

Mayfield Closes Fund XIII At $395 Million
RTVL, Norwest Ventures Invest In E-transaction Firm Suvidhaa
Govt Starts Rs 10 Crore Fund For Budding Designers
Connectiva Systems Lands $17M Funding From NEA IndoUS, Others

HCL Tech Makes Counter Bid For Axon; Infosys On Defensive
SEBI Gives Nod To DSP Merrill's New Name
Autoline Industries Acquires Italian Companies For $13 Million
Hedge Fund Gets Sterlite To Drop Its Restructuring Plans

Job Listings
Associate - TVS Capital
Associate Principal Level - TVS Capital
AVP/ VP – Investment Banking/ Private Equity - Ariston Advisors
Associate/Analyst - Private Equity/M&A
Associate Vice President - Corporate Finance - Intellecap
AVP/VP - A Top Notch Indian Investment Bank
Associate - TresVista
Associate Level - Private Equity Opening - Mumbai

---------------------------------------------------
Tata Motors in talks with PE funds to offload up to 25 percent stake
Indian firm in takeover talks with Arden Partners
IFC to acquire shares of Modern Dairies
Actis Biologics taps PE firms to raise Rs 125 cr
Three major firms eye 51% in NTPC-BHEL JV

HCL Tech makes counter bid for Axon of U.K.
Fidelity PE Fund plans pharma foray with $200-400 m investments
IFC Commits $30M To India Buyout Fund
YES Bank to add buyout fund to PE portfolio
Moser Baer unit gets PE Funding worth Rs 415 crore

Balaji Tele may buy stake in 9X
Autoline acquires 49 pc stake in two Italian firms
Sebi may ease foreign venture capital investment norms
JPMorgan Plans to Double Private Equity in India to $1 Billion
Reliance Technology Ventures and Norwest Venture Partners Invests in ‘S-commerce’ Pioneer, ‘Suvidhaa’

SOurceS:IndiaPE,VCcircle.com

Investment World articles from BL

Investment World

TECHNICAL ANALYSIS: Index OutlookAs analysts across the globe debate over whether the beginning is ending or the end is beginning, there is definitely a consensus on the fact that this is not the end of the credit and financial market muddle. The unending tales of debacles ...

STOCKS: OnMobile Global: BuyInvestors with a one-two year perspective can buy the shares of OnMobile Global, considering its strong focus in the domestic mobile value added services (VAS) market. An expanding product offering, increasing global footprint through ...

STOCKS: Simplex Infrastructures: BuySimplex Infrastructures is among the few pure contracting companies in the infrastructure space that has managed to move up the value chain in terms of higher profitability while at the same time preserving the status of being contractors ...

STOCKS: Tanla Solutions: BuyThe crisis in the global financial markets has taken a toll on several of the key banking, financial services and insurance clients of Indian IT majors. The top-tier companies may yet pull through, thanks to the breadth and depth of their ...

STOCKS: Bank of India: BuyInvestors can consider buying the Bank of India stock with at least a two-year horizon. Valuations are quite attractive, but the stock can be re-rated only when sentiment towards the banking sector improves on a rend reversal in interest ...

TECHNICAL ANALYSIS: Query Corner: What the charts sayI am holding shares of HCL Infosys and Sesa Goa bought at Rs 110 and Rs 145 respectively. Shall I hold these shares or switch. What is the anticipated bottom ...

TECHNICAL ANALYSIS:

DERIVATIVES MARKETS: Range-bound movement seen in Nifty futureThere was no let up from bear hammering last week, as the Nifty October future finished at 3998.15, registering a fall of 6.4 per cent over its last week’s ...

STOCK MARKETS: Hope wilts on bailout uncertaintyThe week beginning September 22 saw the Sensex start on a positive note opening close to 200 points above its previous ...

Source:BL
----------------------------------------------
Other HEadlines:
Inflation data based on monthly WPI series from new year
New WPI index to be less ‘aam aadmi’ centred
Will Chinese banks make Wall Street buys?
US financial crisis shows the perils of inclusive loans

Congress, White House reach financial bailout deal
Outline of US Congress' draft bailout plan
Promising sectors for long term
On billionaire row, it's simple, veggie fare

Source:ET,BL

Nuke deal approved by US House, moves into last lap

Nuke deal approved by US House, moves into last lap

The Indo-US nuclear deal has moved into the last lap clearing a major hurdle when the House of Representatives approved a legislation on it that will now go to the Senate before the two countries can implement the civil nuclear agreement. After a lot of drama and suspense, the House passed the Bill on an unusual extra day of sitting on Saturday with bi-partisan support but a considerable number of Democrats were still opposed to it. The Berman Bill H R 7081, named after Howard Berman, a Democrat strongly opposed to the deal on non-proliferation grounds and who converted only a couple of days ago, was adopted with 298 voting for and 117 against.

One lawmaker merely voted present. The deal just needs the backing of the Senate which may vote next week on the issue. But the Senate vote appears to be a formality given the fact that an identical Bill has already been approved by its Foreign Relations Committee earlier this week.

Though a Congressional consent eluded the deal when Prime Minister Manmohan Singh and President George W Bush when they met on Thursday, the House approval came hours before the Prime Minister left the US shores winding up his five-day visit on his way to France. Once the Senate gives its nod, the nuclear agreement between the two countries will be ready for signing between External Affairs Minister Pranab Mukherjee and Secretary o State Condoleezza Rice, who is slated to visit New Delhi on October 3. The Administration is keen on signing the deal before the end of the term of Bush who had entered into the agreement with Singh more than three years ago that will end three decades of nuclear apartheid against India. National Security Advisor M K Narayanan welcomed the adoption of the deal by the House saying it was a matter of great satisfaction. He expressed the hope that the Bill would get cleared in the Senate sooner than later rather than wait for the next session. Hailing the House action, Indian Ambassador to US Ronen Sen said it would now be the last lap of a historic step for both the countries. The deal enjoyed bi-partisan support and was good for both India and the US. South Carolina Republican Joe Wilson, one of the strongest supporters of the legislation and the agreement, hailed the vote saying it moved the US one step forward in strengthening the partnership with people of India. Despite the US Congress being busy in the midst of clearance of a package for the financial institutions gone bankrupt, the House met unusually on a Saturday for conducting business. The vote on the nuclear Bill was suspended yesterday after another opponent Ed Markey demanded a recorded vote instead of a voice vote after the debate was completed. Berman had originally introduced a Bill that was slightly different from the measure approved by the Senate Committee and adoption of it would have delayed implementation of the nuclear deal. Berman was talked to by Rice after which he withdrew his original Bill and introduced a legislation identical to the Senate Committee that ensured its quick passage.


Joe Wilson said he was grateful for the work of President Bush, Prime Minister Singh and Rice for their steadfast support in seeing this agreement implemented. Earlier, the House completed a lively debate that saw Markey putting up a stiff opposition to the deal with India. However in the Senate, an anonymous lawmaker put a "hold" on consideration of the bill which must be lifted before the agreement is brought to the Senate floor or approved by a unanimous consent agreement. The latest hiccup in the Senate is actually a counter to the attempt of the leadership to "hotline" the Senate Bill through unanimous consent without debate and vote. The schedule of the Senate is still fluid but it is meeting tomorrow and re-convening on Wednesday after taking a break on Monday and Tuesday on account of Jewish holidays.

-----------------------------------------
Bush welcomes US-India civilian nuclear deal
US House of Representatives approves nuclear pact with India
Historic N-deal on verge of fruition, says PM
Rice to visit India next week, may sign nuclear deal

Source:ET,BS

US crisis:Washington Mutual files for bankruptcy; Wachovia may be next and more to come.....

Washington Mutual files for bankruptcy

US financial crisis deepened further with 119-year old banking institution Washington Mutual deciding to file for bankruptcy protection after selling its banking operations to JPMorgan Chase. Washington Mutual, which has an asset of over USD 300 billion, will be the second major financial entity after Lehman Brothers to file for bankruptcy protection. The fall of Washington Mutual, popularly known as WaMu, is being viewed as the biggest banking failure in the American history. "Washington Mutual Inc announced on Saturday that it has, together with its wholly-owned subsidiary WMI Investment Corp, commenced voluntary cases under Chapter 11 of the United States Bankruptcy Code," a statement released by Business Wire said. WaMu, according to reports, was expected to lose around USD 19 billion on bad mortgages. Credit agency Standard and Poor's has already slashed its rating to eight level below investment grade. Earlier the US administration has seized WaMu and sold its banking operation to JPMorgan Chase for USD 1.9 billion. The American financial turmoil triggered by subprime mortgage crisis has taken a heavy toll on the global financial system, even as the US government is trying to work out a USD 700 billion bailout package. Apart from forcing Lehman Brothers, WaMu and IndyMac Bancorp into bankruptcy, the crisis has driven US's sixth largest bank, Wachovia, which has an asset base of over USD 800 billion, to look for a buyer. The turmoil had also forced Merrill Lynch to sell its shares to Bank of America, while the crisis-ridden AIG, Freddie Mac and Fannie Mae were bailed out by the US government.
-------------------------------------------------------
More corporate bankruptcies to come to the fore

US corporate bankruptcies have soared this year and more are on the way, highlighting a historic and pivotal year for those in the restructuring industry. Virtually no segment of the US economy has been safe from a rolling tide of job losses, stock market declines and home foreclosures that have knocked a range of industries to their knees. “We are certainly seeing more companies, particularly among insurance and financial institutions, going through unprecedented times fighting for survival,” said Randall Eisenberg, senior managing director for restructuring advisor FTI Consulting. Companies in more industries than ever are finding themselves in distress, ranging from retailers, home builders and restaurants, to financial firms, transportation providers and energy companies. But at the same time, the turmoil has created unprecedented opportunities for distressed or vulture investors , and those attorneys, consultants and other experts who help companies sort out their problems. “There are all of these (private equity investors) getting into the business, by buying and rolling up these industries that are in trouble,” said Sheila Smith, head of reorganization at Deloitte Financial Advisory Services. Government bailouts and increasingly large bankruptcies are starting to rewrite the rules for overseeing corporate collapses. Nothing serves to highlight the shift more than the rapid and unexpected downfall of some of the country's most powerful firms, including Lehman Brothers Holdings $637 billion bankruptcy filing this week. “The Lehman Brothers bankruptcy is taking the restructuring industry into uncharted waters,” said David Pauker, a managing director with restructuring advisor Goldin Associates. “Much of the learning and experience that derives from earlier failures of large financial firms—Drexel (Burnham Lambert), Refco, Enron—will be revisited and revised.” The number of US businesses filing for bankruptcy has soared 42% from a year ago, according to the Administrative Office for US Courts. Already this year, more public companies have filed for Chapter 11 and Chapter 7 bankruptcy than during all of 2007, according to BankruptcyData.com. The credit crisis has also complicated things for struggling companies, by hurting their ability to refinance their debts or even gain financing to exit bankruptcy protection. Auto parts maker Delphi Corp, for example, has been struggling to get financing to exit bankruptcy protection for most of the year. And as market fright intensifies , it becomes more likely other firms will fail or be forced to sell themselves. “Equity markets and other segments of the credit markets continue to crater, raising fears of systemic risk,” Diane Vazza , head of ratings agency Standard & Poor’s global fixed income group, wrote in a note to clients. Vazza will be among the specialists to address Reuters reporters and editors at its Restructuring Summit. While a global credit crunch has slammed financial firms, higher energy prices have sent regional airlines such as Denver-based Frontier Airlines Holdings into bankruptcy court.
-------------------------------------------------
Top 10 US bank failures Top banking crises
US races to reach bailout deal before Monday
Asian banks show signs of crisis

Source:ET