SBI Q2 net up 40%, but sees margins shrinking;ICICI Bank Q2 net up 1.1% at Rs 1014 cr

SBI Q2 net up 40%, but sees margins shrinking
SBI Q2 net up 40% at Rs 2260 cr

State Bank of India (SBI) on Monday reported a higher-than-expected net profit of Rs 2,259.7 crore for the quarter ended September 30, up 40.2%, from Rs 1,611.4 crore during the same quarter of the previous year. The results for the second quarter include the business of State Bank of Saurashtra which was merged with SBI in August 2008.

Shares of the bank were hit hard after the bank warned that net interest income had peaked and said that it raised provisions to Rs 911 crore from Rs 247 crore in the previous quarter because of the government's farm-loan waiver. The bank's chairman OP Bhatt said SBI's net interest margins would come down marginally, but would continue to be above 3%. The net interest margin for the second quarter was 3.2%. The bank's deposits grew by Rs 57,861 crore (67.9%) for the quarter, with the share of current and savings account growing 0.3% to 39.7%. Advances of the bank grew Rs 51,020 crore or 162.4%. In retail business, the bank's home loans grew 23.5%, auto loans by 30.48% and education loan by 43.81%. SBI Card, however, suffered a loss of Rs 27.9 crore for the quarter. The bank's capital adequacy ratio (CAR) as per Basel I norms is 12.14%, and as per Basel II norms it is 11.5%. "We are well above the prescribed norms for CAR and our capital adequacy would increase by 259 basis points once the borrower ratings of corporates are complete," Mr Bhatt said. Consolidated net profit grew 11.50% to Rs 2,458.04 crore for the second quarter against Rs 2,204.56 crore in the year-ago period, while the total income rose 26.41% to Rs 27,083.47 crore. For the six-month period ended September 30, SBI reported a consolidated net profit of Rs 4,138.06 crore against Rs 4,128 crore in the year-ago period. According to Mr Bhatt, interest rates have peaked and should soften in the coming months. "If you look at moderating inflation and (factor in) the steps taken by the Reserve Bank of India, interest rates should start showing the softening trend," he said. When asked about the SBI's likely steps on interest rates, Mr Bhatt said that the bank would rather follow the wait-and-watch policy. "Interest rates would depend on a cluster of decisions taken by the regulators," he said. Underlining the soundness of the Indian banking system, Mr Bhatt said that there are very few instances of people changing their accounts from private banks to public sector banks. "Total growth in the industry is Rs 2,40,000 crore," he said, adding that flight of capital from private to PSU banks, if at all, would not be more than 1% of the total business.
SBI to open 1,500 or more branches
-------------------------------------------------
ICICI Bank Q2 net up 1.1% at Rs 1014 cr
Mumbai: ICICI Bank reported a 1.1 per cent rise in quarterly net profit, beating forecasts, as higher other income and lending rates offset investment losses and slowing credit growth.

The country's leading private-sector bank, which is also listed in New York, said July-September net profit was Rs 1014 crore ($203 million), up from Rs 1003 crore a year ago.

A Reuters poll of analysts had forecast a 2.3 per cent dip in net profit to Rs 980 crore for the fiscal second quarter.
Deposits are safe: ICICI Bank CEO
ICICI has borne the brunt of investor concerns about the Indian bank sector's exposure to the global financial crisis. Since the bankruptcy of Lehman Brothers last month, it has repeatedly said it was well-capitalised and deposits were safe.

Earlier, shares in State Bank of India tumbled 13 per cent to 1-½ year lows on worries about bad debt provisions even after the country's largest bank beat forecasts with a more than 40 per cent rise in net profit.
State-run SBI, which raised $4.1 billion in a rights issue in March, said July-September net profit rose to Rs 2260 crore from Rs 1610 crore a year earlier. A Reuters poll of analysts had forecast fiscal second-quarter earnings of Rs 1870 crore.

Shares in ICICI fell 15 per cent in July-September, lagging the benchmark index's 4.5 per cent drop and the sector index's 9.5 per cent rise.
At Friday's close of Rs 310, ICICI shares were down 42 per cent in October.

Other income boosts ICICI net
ICICI Bank's insurance arm records loss of Rs 466 cr in H1
Expense cut helps ICICI report flat net, beat estimates
---------------------------------------------
Source:Sify,ET

Sensex dips below 8k in Intraday; Short covering helps cut losses from nearly 1000 to 200 pts

ALErt:SEBI allows creeping acquisition beyond 55 per cent
-----------------------------------------------------------
Short covering helps cut losses; Sensex regains 8K

In a relief to investors amid the ongoing festival of lights, Indian stock market benchmarks staged a strong come-back Monday to end off lows . Auto and FMCG stocks ended with major losses while realty closed higher.

Market began the week on a lower note in line with other global markets. Sustained selling from foreign funds and panicky retail investors saw indices breaching important support levels. But short covering by bears ahead of October F&O expiry Wednesday saw a V-shaped recovery in indices to such an extent that indices jumped over 80 per cent from day’s lows.

Bombay Stock Exchange’s Sensex closed at 8,509.56, down 191.51 points or 2.20 per cent. The index bounced back around 80 per cent from its intra-day low of 7,697.39. Earlier in the day, the benchmark breached another psychological support of 8,000. National Stock Exchange’s Nifty bounced back 271.45 points from the day’s low of 2252.75 to close at 2,524.20. The broader index touched ended 59.80 points or 2.31 per cent lower from its previous close.

There was no respite for tier II and III stocks as sustained selling saw them underpeform benchmarks. BSE Midcap Index closed 4.18 per cent lower and BSE Smallcap Index fell 5 per cent. “After Friday’s fall, market was in oversold territory and traders were loaded with short positions. They didn’t want to rollover positions in such a volatile market and hence covered shorts mainly in index pivotals ahead of F&O expiry,” said a technical analyst with a local brokerage firm.

Tata Motors (-13.95%), Mahindra & Mahindra (-13.71%), Jaiprakash Associates (-10.33%), Grasim Industries (-9.57%), Tata Power (-8.75%), State Bank of India (-8.63%) and Larsen & Toubro (-7.13%) were the major Sensex losers. Bharti Airtel (5.99%), Reliance (5.83%), Reliance Infrastructure (3.97%), Reliance Communications (3.62%) and Sterlite Industries (3.40%) were the top gainers. After being beaten down black and blue, shares of Unitech surged to settle 37.58 per cent higher. There are reports that the company has sold stake in its subsidiaries to raise capital. Suzlon Energy too opened higher but soon gave up gains to end flat at Rs 46.95. The global outlook is still bearish as recessionary fears weigh on sentiments.

US stock futures were indicating another day of correction Monday. Dow Jones futures were down 2.17 per cent, Nasdaq Stock futures were 2.12 per cent lower and S&P 500 stocks futures declined 2.66 per cent. Indian markets will remain shut Tuesday on account of Diwali, but the exchanges will conduct “Muhurat” trading between 6:15 pm and 7:15 pm. Results Announced Today Mangalore Refinery & Petrochemicals' net profit fell 92.49 per cent to Rs 24.92 crore for the quarter ended Sep 30, 2008 compared with Rs 331.74 crore for the quarter ended Sep 2007. Total income increased 43.15 per cent to Rs 13,464.88 crore in Jul-Sep quarter of 2008 against Rs 765.52 crore in the same quarter of the earlier year. The company shares ended down 7.23 per cent to Rs 33.35 on BSE.

State Bank
of India, on standalone basis, posted a net profit of Rs 2259.72 crore for the quarter ended Sep 30, 2008 against Rs 1611.42 crore in the same quarter of 2007. Interest earned stood at Rs 15566.50 crore against Rs 11616.28 crore previous year. Interest expended was Rs 10111.15 crore against Rs 7853.36 crore same quarter last year. The company shares ended down 8.63 per cent to Rs 1,056.60 on BSE.
ICICI Bank posted a net profit of Rs 1,014.21 crore for the quarter ended on Sep 30, 2008 against Rs 1,002.60 crore for the quarter ended on Sep 2007. Interest earned increased to Rs 7,834.98 crore in Jul-Sep quarter of 2008 compared with Rs 7,516.47 crore in the same quarter of previous year. Interest expended stood at Rs 5,687.36 crore in the September quarter of 2008 from Rs 5730.47 crore in the earlier year. The company shares ended up 2.03 per cent to Rs 316.30 on BSE. Areva T&D India has posted a net profit after tax of Rs 52.31 crore for the quarter ended Sep 30, 2008, up by 8.89 per cent against Rs 48.05 crore for the quarter ended Sept 2007. Total income increased 34.15 per cent to Rs 586.62 crore in Jul-Sep quarter of 2008 compared with Rs 437.30 crore in the same quarter of previous year. On Monday, the company shares ended up 2.76 per cent to Rs 160.15 on BSE. Bombay Dyeing & Manufacturing Company posted net loss to Rs 103.97 crore for the quarter ended Sep 30, 2008 against the net profit of Rs 18.77 crore for the quarter ended Sep 2007. Total income increased to Rs 255.52 crore in the Jul-Sep quarter of 2008 against Rs 173.75 crore in the same quarter of previous year. On Monday, the company shares ended down 8.94 per cent to Rs 149.20 on BSE.

-----------------------------------------------
Samvat 2064 ends on a volatile note
Sensex recovers after testing 8K

Source:ET,BS,BL,Sify

Happy Diwali 2008

WISH YOU A VERY HAPPY DIWALI

TO HAVE GOOD HEALTH AND WEALTH AND

GOOD RETURNS IN EQUITY MARKET

***************************************************************************

May you all attain full inner illumination! May the supreme light of lights enlighten your understanding! May you all attain the inexhaustible spiritual wealth of the Self! May you all prosper gloriously on the material as well as spiritual planes!

Diwali Wishes

May this light of happiness, light up your life.May this diwali be the most sparkling and lightening.The sights and sounds filling up your heart with joy and happiness.
Wishing you and your family a very Happy Diwali

With Love & Cheers

Srisai & Team

30 stocks at 8700 pts; Stock analysis from ET

30 stocks @8.7K
Jaiprakash Associates
Last traded price: 6052-week high (Rs): 510% loss from 52-week high: 88

All 30 stks with Return details:30 stocks @8.7K
------------------------------------------------
Tips to tide over the financial crisis
If you feel the entire family’s savings have gone, remember the original purpose was for joint increment.
Cut in promoter wealth Millstone Effect Bank's report card
Global Financial Crisis Meltdown Effect: US Markets
-------------------------------------------------
Living in interesting times27 Oct, 2008, 0610 hrs IST, Karan Sehgal
The softening in short-term interest rates should continue for some more time, as it may lead to lower interest rates in future and fuel investment growth once again.

Just the right mix 27 Oct, 2008, 0603 hrs IST, Santanu Mishra
New business from overseas and an optimal blend of technology & people will drive Allied Digital’s earnings, going ahead.

On a treasure hunt 27 Oct, 2008, 0551 hrs IST, Kiran Kabtta
Alembic offers an attractive investment opportunity as it is restructuring its operations to unlock the hidden value in its business.

The Domino Effect 27 Oct, 2008, 0547 hrs IST, Kiran Kabtta
The prices of many commodities have returned to their ’05 levels. Such a huge decline in commodity prices, and that too, over a short period, raises questions about their future direction.
Bull's Eye: Views on stocks 27 Oct, 2008, 0541 hrs IST

Have Money? Go Buy 27 Oct, 2008, 0534 hrs IST, Krishna Kant
Just as the last leg of the bull run was not justified by India Inc’s inherent earning potential, the recent capitulation appears to be equally irrational. Krishna Kant tells you why...

Small Wonders 27 Oct, 2008, 0529 hrs IST, Krishna Kant
ETIG is back with the 2008 edition of India’s 100 Fastest Growing Small Companies...

Softening interest rates to fuel investment growth 27 Oct, 2008, 0515 hrs IST, Karan Sehgal
The RBI took a U-turn in its policy of containing inflation, as liquidity almost dried up in the money market.

2008: Crisis year Survive crisis I Tide over the financial crisis
Banking not a bad investment 20 Oct, 2008, 0606 hrs IST, Karan Sehgal
Going by FII actions, it seems that banking is not that bad an investment, the IT sector has not peaked out and pharma is the best defensive bet.

Share buybacks in Asia trump bonds 20 Oct, 2008, 0602 hrs IST
Though bonds offer greater discounts than shares, Asian companies are quickly buying back shares hit by the global financial meltdown, instead of repurchasing debt.


Source:ET

Index Outlook and Stk analysis from BL,BS

Index Outlook

Sensex (8701.1)
It was a week when all one could do was, watch awe-struck, as stock prices fell in to a bottomless pit. The Sensex effortlessly sliced though one support level after another despite efforts by the troika of the Finance Ministry, SEBI and the RBI to stem the decline. The 100 basis points cut in repo rate, meltdown in commodity prices and lower WPI numbers were shrugged aside as Sensex tumbled 1274 points lower.
There is still a week to go before October ends and FIIs have already pulled out close to $3 billion. Tally for outflows in 2008 has crossed $12 billion. Turnover was brisk, mainly in the derivative segment. The expiry of the October contracts in the derivative segment is expected to pass quite smoothly since the open interest is quite low around Rs 50,000 crore. Low Nifty put call ratio indicates that short positions are being squared at lower levels.
The bear onslaught on Friday dragged the Sensex below 9700 to an intra-week low at 8566. We have stressed the importance of 9700 often in our previous columns. It occurs at 61.8 per cent retracement of the structural up-move from 2001. The structural trend in the Indian markets stays up as long as this level holds.
However, these are long-term support levels. We will wait for two more weekly closes below 9700 to ascertain that Friday’s move was not a false break-out. Conversely, a weekly close above 9700 will make the medium-term view positive again. The support at 8800 (June 2006 trough), indicated in our long-term outlook review was also penetrated on Friday. Next support on the long-term chart is the October 2005 low at 7700.
As per E-wave counts the first target for the C wave from 21206 peak is at 10207. But the continuation of the decline last week has made it apparent that this wave could unfurl to the next target - that is 6887. Minor counts of the down-move from 15579-peak too indicate that if the Sensex declines below 8000, the next halt would be in the zone between 6200 and 6800.
For the week ahead, it needs to be remembered that Sensex is hovering at a key long-term support and a rebound is possible anytime. Supports for the week would be at 8566, 8152 and then 7582. Resistances would be at 9900 and then 10750. A close above the second resistance is needed to make the short term view positive.

Nifty (2584)
Nifty too has penetrated many important long-term supports on Friday. It declined below 2950 as well as the June 2006 trough at 2595. Since the first target of the third wave from the 6357 peak at 3070 has already been penetrated emphatically, it is time to take a look at the next target that is 2093. However, a recovery from current levels that results in a weekly close above 3070 will mitigate the bearish medium-term view.
For the short-term, Nifty can decline to 2525 or 2276. Resistances for the week are at 2972 and then 3254. Close above the second resistance will make the near-term view positive. Failure to move past the first resistance will be a cue for traders to initiate fresh short positions.
----------------------------------
Nifty future in oversold zone

Despite a positive opening for the markets, bears had the last laugh as markets swooned under selling pressure to touch its three-year lows. Predictably, even the Nifty future breached its all-important technical support levels during the week. Both the Nifty October and November futures closed with a huge discount to the spot, which suggests that despite the steep fall, a chunk of the short positions may have been rolled over to November month. So far, about 40 per cent of Nifty positions have been rolled over to November series.
Follow-up
We had presented two strategies on Nifty last week. i) Going long on Nifty future with adjustable stop-losses and ii) Buying December 3500 call. While the first strategy may have provided some profit opportunities, the second strategy would have resulted in sharp value erosion. We suggest traders switch from the December 3500 call to the 3000 strike, which may earn decent profits when the market witnesses a relief rally.
Outlook
We had indicated a support level of 2600 for Nifty futures last week in this column. Now that it has breached the 2600 level, its next support level appears at 1890, which is significantly lower from the current levels. While any steep fall from the current level can take the Nifty lower to its support, there is a minor support at 2300 level.
Alternately, if Nifty reverses from its current levels, it will face resistance around 3050 level.
Any breach of this level, can take Nifty Future to 3350, 3650 and even to 3850 levels. However, we feel the real pivot point for Nifty future is 4350 levels. Only on a move above that level can one turn bullish. The market, however, has been in the oversold zone for quite some time. Recommendation
Retail traders are better off staying away from markets given the sharp intra-day swings that can wipe away gains in no time. However, traders with a high risk appetite can consider a straddle strategy. This can be set by buying Nifty November 2750-call and put.
Traders can hold the position till the expiry of November derivative contracts. Nifty Nov 2750 call closed on Friday at 179.10 and the put ended at Rs 367.25. Straddles are a good strategy to use when a trader believes that the underlying’s price will move significantly, but is unsure about its direction. But for the option spread to move in the money, the underlying asset price has to make a decisive move in either direction. This means, if the price remains stuck in a narrow range, it may not be profitable.
The maximum loss would be limited to the premium paid, whereas the profit can be unlimited if the underlying makes the desired movement.
FIIs trend
The cumulative FII positions as a percentage of total gross market position on the derivative segment as on October 23 increased to 38.72 from October 18 level of 37.83 per cent. This indicates that retail and domestic players have reduced their activity in the market.
Foreign institutional investors have hiked their positions in index futures, but have considerably reduced their exposure to stock futures.
They now hold index futures worth Rs 11,847.25 crore (Rs 11,725.08 crore) and stock futures worth Rs 11,909.55 crore (Rs 14,095.31 crore). Their holding on index options declined marginally to Rs 17,018.53 crore (Rs 17,988.85 crore), according to latest NSE data.

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Wkly Tech Analysis: Let markets find their own bottom

INSIGHT: Time to ‘think global, invest local’The ongoing carnage in the stock market has certainly taught us all that managing an equity portfolio is not just about keeping abreast of what’s happening in India. It is much more than that; after all, who could have imagined that ...

STOCK MARKETS: When panic rules investorsConcerns about a cash crunch and stalled loans batter the stock of realty major Unitech by 49 per cent in a single day. Reports about an accidental breakage in a single turbine blade in the US send the Suzlon Energy stock crashing by 39 per cent ...

STOCKS: Hero Honda: HoldShareholders of Hero Honda can continue to hold the stock. At the current market price of Rs 752, the stock trades at a price-earnings multiple of about 13 times its annualised April-September ‘08 ...

STOCKS: Indo Tech Transformers: BuyIndo Tech Transformers has so far overcome the hurdles of slowing order flows and higher borrowing costs better than similar small sized ...

INVESTMENTS: Nifty BeES: BuyInvestors with a two-three year perspective can consider accumulating Nifty Benchmark Exchange Traded Scheme (Nifty BeES), an exchange-traded fund that mimics the S&P CNX Nifty Index in returns, at its current market price of Rs 269. ...

TECHNICAL ANALYSIS: Reliance IndustriesWhen titans such as Reliance Industries shed 22 per cent in a week, what chance do the lesser stocks stand? RIL penetrated the key long-term support at Rs 1,250. The next support on the long-term chart would be at the long-term trend line at ...
TECHNICAL ANALYSIS: Tata SteelThere was no let-up in the selling pressure on the Tata Steel counter and the stock declined another 28 per cent last week. Immediate supports on the chart are the 2004 troughs at Rs 156 and then Rs 136. But the ferocity of the fall implies ...
TECHNICAL ANALYSIS: SBISBI could not withstand the bear onslaught any longer and melted in the second part of the week below our near-term support at Rs 1,250. The medium-term view has been revised from positive to neutral with last week’s movement. The ...
TECHNICAL ANALYSIS: Maruti SuzukiThe medium-term up-trend that we had pointed out last week was nullified by the 16 per cent plunge in Maruti Suzuki last week. The stock is once more hovering around its long-term support at Rs 570. Since the low formed in July has not ...
TECHNICAL ANALYSIS: InfosysInfosys was among the rare few that recorded a positive weekly close last ...
TECHNICAL ANALYSIS: ONGCONGC had been holding up well against the selling pressure until last week. But the 15 per cent decline last week has pulled the stock below the key support band between Rs 750 and Rs ...

STOCK MARKETS: Relentless selling causes blood bath on D-streetThe Sensex ended the week 20-24 October on a dismal note at 8701 by plummeting 1274 points or 12.7 per cent for the ...

Source:BL,BS......

Results: BOB,UBI,SunPharma,CorpBk,Jet,Adlabs,Adani,MundraPort etc

Sun Pharma Q2 net up 135%
Sun Pharmaceuticals has reported a 135% jump in its net profit for the quarter ended September '08 at Rs 512.8 crore.
Net sales rose 76% to touch Rs 1,177.8 crore from Rs 667.9 crore last year. The company's US generics business grew 195% to register sales of $122 million while international sales grew 141% to Rs 726.99 crore.
-------------------------------------------
BoB net up 21% at Rs 395 cr
MUMBAI: Bank of Baroda's net profit rose 21% to Rs 395 crore for the second quarter, despite making a provision of Rs 150 crore for its overseas oper
ations. A 23% jump in net interest income to Rs 3,551 crore and a 4% reduction in operating expenses to Rs 764 crore helped Bank of Baroda boost net profit in second quarter
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Union Bank Q2 net rises 31% to Rs 362 crA 49% rise in net interest income helped Union Bank of India show a 31% rise in net profit to Rs 362 crore in the second quarter ending Septe
mber 2008. Operating profits in the same period rose 32% to Rs 700 crore. Net income stood at Rs 975 crore, up from Rs 656 crore a year ago. However, its non interest income was down, although marginal by 1.7%, to Rs 283 crore in second quarter.
------------------------------------------------
Adlabs second quarter net loss at Rs 20.76 cr
Bata India Q2 net up 30% at Rs 12 cr
Karnataka Bank Q2 net up 22% at Rs 74 cr
Sun Pharma Q2 net up 2-fold at Rs 513 cr
Jet Airways posts loss of Rs 384.5-cr in Q2 FY 09
India Motor Q2 net up 73% at Rs 4 crICRA net up 20% at Rs 10 crore
Bharat Forge Q2 net at Rs 11 crore
Moser Baer India Q2 net at Rs 41.84 crore
Fem Care Pharma Q2 net up 84%
United Breweries Holdings Q2 net at Rs 15.36 cr
Hexaware Tech PAT up 21% in Q2

PNB Gilts Q2 net loss at Rs 8 cr
Union Bank Q2 net up 31% at Rs 361 cr
Corporation Bank Q2 net up 19% at Rs 191 cr
Bank of Baroda Q2 net up 21%


Phillips Carbon Black net profit declines 36.11% in the September 2008 quarter
Godawari Power & Ispat net profit rises 48.34% in the September 2008 quarter
Allcargo Global Logistics net profit rises 129.28% in the September 2008 quarter
Jai Corp net profit rises 13.83% in the September 2008 quarter
Adani Enterprises net profit rises 76.11% in the September 2008 quarter

Thermax net profit declines 17.69% in the September 2008 quarter
Moser Baer (India) reports net loss of Rs 41.84 crore in the September 2008 quarter
Torrent Power net profit rises 64.11% in the September 2008 quarter
Shipping Corporation of India net profit rises 50.78% in the September 2008 quarter
Mundra Port & Special Economic Zone net profit rises 162.89% in the September 2008 quarter

Central Bank of India net profit declines 22.21% in the September 2008 quarter
REI Agro net profit declines 37.94% in the September 2008 quarter
Corporation Bank net profit rises 18.68% in the September 2008 quarter
Sun Pharmaceuticals Industries net profit rises 55.59% in the September 2008 quarter
Dish TV India reports net loss of Rs 154.11 crore in the September 2008 quarter
Redington India net profit rises 14.04% in the September 2008 quarter

Karnataka Bank Q2 net profit at Rs 73.6 cr
Bank of Maharashtra Q2 PAT down at Rs 70.55 cr

Source: ET,BL,capitalmarket etc

Sensex Explosion: Millstone Effect

Sensex journey from 7,000 to 20,000!
We bring to you the ET coverage on the milestones that the Sensex crossed, right from the day it touched the 7000 mark in 2005, till date.
January 8, 2008 Sexsex scales 21000 mark Markets on Tuesday opened at a strong note with Sensex touching 21000 mark in the opening trade for the first time.
October 29, 2007 Sensex crosses another milestone Age ain’t anything but a number’ went the title of a popular number in the nineties. Years later, the song echoed on Dalal Street as the Sensex tore past the psychological 20,000 mark towards the fag end of Monday’s session. It took the index a little over 20 years to reach the first 10,000 mark, but just a little over 20 months to double that score. The market may have turned riskier, messy politics could resurface, and oil prices are at a new high; but nothing seems to worry local investors, who feel the index can go up further.

While the mood on Dalal Street is celebratory, even the most diehard bulls are baffled by the ongoing frenzy. “Nothing has changed really,” says Rare Enterprises partner Rakesh Jhunjhunwala, who has been maintaining a bullish view for sometime now. Significantly, it’s the local institutions who are in the driver’s seat. As per BSE data, foreign funds have net sold over Rs 1,100 crore worth of shares over the last three trading sessions while local funds have net bought over Rs 2,300 crore worth of shares. Sceptics point to the fact that it is only a handful of stocks that is driving the market higher. Capital goods shares set the stage for the occasion as the Sensex vaulted to a fresh peak of 20,024.87 before settling at a closing high of 19,977.67, up 734.50 points, or nearly 4%, compared to the previous close. The 50-share Nifty hit a new high of 5,922.50 and went on to end the day at 5,905.90, up 203.60 points. According to Kotak Mahindra Bank CEO Uday Kotak, most foreign entities are reluctant to sell their P-notes , fearing they may not get a chance to buy back. He also felt that some Chinese money may be entering India through FIIs. Sections said the absence of big selling by FIIs has prompted domestic momentum players to buy, which along with some short covering has pushed the Sensex up. But what’s worrying some is that the market breadth on Monday was less than emphatic, with four stocks ending down for every five that rose. And concerns about valuations persist, though some players feel the old valuation parameters may no longer be applicable. “Valuations look a little above the historical fair value,” says ICICI Prudential AMC chief investment officer Nilesh Shah. “However, compared to China, they look fairly reasonable. We are seeing a paradigm shift in valuation benchmarks,” he added. Traded turnover on both segments combined was around Rs 1 lakh crore, a shade lower than Friday’s. Capital goods shares were the star performers of the day, with frontline stocks like Larsen & Toubro and Bhel rising 10% and 7%, respectively. Banking shares surged ahead of the monetary policy announcement on Tuesday. Index heavyweight Reliance Industries ended 5% higher after touching a record high of Rs 2,844 intra-day. IT MAY BE A HEADY COCKTAIL Market-cap touches Rs 62,16,907 crore ($1.58 trillion) 207 stocks touch new life high Trading in 297 stocks frozen for want of sellers Third biggest single-day jump Decent Q2 earnings, 9.4% growth A 2% rise in the RIL stock price will make Mukesh Ambani the richest Indian in the world, overtaking LN Mittal BUT THERE ARE RIDDLES IN THE MARKET PLACE Despite Sebi ban on derivative-linked PNs, F&O outstanding is Rs 1 lakh crore. Why is there no unwinding? Are more investors hedging? FII flow has been erratic in the last few weeks. If this persists, will local MFs, big corporates and insurance firms continue to buy? While FIIs have been booking profits, there is no big selloff. Why? Hedge funds are holding on to PNs, fearing they may not get a chance to get back. How long will the PN charm last? Market is getting narrower, riskier. Fewer stocks driving Sensex. And leveraged positions ballooning.

More @ Sensex journey from 7,000 to 20,000!
------------------------------------
Sensex Explosion: Millstone Effect
Biggest market losses
How to make the most of market mayhem
Tips for investors

Source:ET

Results:BHEL,NTPC,Maruti,ITC,HUL,ABB,Tata Steel etc

Bharat Heavy Electricals net profit declines 10.45% in the September 2008 quarter
Net profit of Bharat Heavy Electricals declined 10.45% to Rs 615.77 crore in the quarter ended September 2008 as against Rs 687.66 crore during the previous quarter ended September 2007. Sales rose 34.73% to Rs 5342.63 crore in the quarter ended September 2008 as against Rs 3965.36 crore during the previous quarter ended September 2007

NTPC net profit rises 9.61% in the September 2008 quarter
Net profit of NTPC rose 9.61% to Rs 2110.51 crore in the quarter ended September 2008 as against Rs 1925.49 crore during the previous quarter ended September 2007. Sales rose 20.51% to Rs 9661.42 crore in the quarter ended September 2008 as against Rs 8016.86 crore during the previous quarter ended September 2007.

Tata Steel net profit rises 50.13% in the September 2008 quarter
Net profit of Tata Steel rose 50.13% to Rs 1787.81 crore in the quarter ended September 2008 as against Rs 1190.83 crore during the previous quarter ended September 2007. Sales rose 43.14% to Rs 6850.67 crore in the quarter ended September 2008 as against Rs 4785.90 crore during the previous quarter ended September 2007.


Hindustan Unilever net profit rises 33.95% in the September 2008 quarter
Net profit of Hindustan Unilever rose 33.95% to Rs 546.61 crore in the quarter ended September 2008 as against Rs 408.06 crore during the previous quarter ended September 2007. Sales rose 22.18% to Rs 4110.91 crore in the quarter ended September 2008 as against Rs 3364.63 crore during the previous quarter ended September 2007.

Maruti Suzuki India net profit declines 36.52% in the September 2008 quarter
Net profit of Maruti Suzuki India declined 36.52% to Rs 296.12 crore in the quarter ended September 2008 as against Rs 466.50 crore during the previous quarter ended September 2007. Sales rose 9.81% to Rs 4993.62 crore in the quarter ended September 2008 as against Rs 4547.37 crore during the previous quarter ended September 2007


Ambuja Cements net profit declines 7.40% in the September 2008 quarter
Hindustan Construction Company net profit rises 71.45% in the September 2008 quarter
Rural Electrification Corporation net profit rises 35.91% in the September 2008 quarter
Great Eastern Shipping Company net profit rises 47.66% in the September 2008 quarter
ABB net profit declines 9.42% in the September 2008 quarter
IDBI Bank net profit rises 4.50% in the September 2008 quarter

ITC net profit rises 4.13% in the September 2008 quarter
Net profit of ITC rose 4.13% to Rs 802.72 crore in the quarter ended September 2008 as against Rs 770.87 crore during the previous quarter ended September 2007. Sales rose 18.00% to Rs 3862.67 crore in the quarter ended September 2008 as against Rs 3273.38 crore during the previous quarter ended September 2007.

JSW Steel net profit declines 40.57% in the September 2008 quarter
Net profit of JSW Steel declined 40.57% to Rs 317.45 crore in the quarter ended September 2008 as against Rs 534.19 crore during the previous quarter ended September 2007. Sales rose 56.35% to Rs 4309.05 crore in the quarter ended September 2008 as against Rs 2756.02 crore during the previous quarter ended September 2007.


Tata Steel Q2 net up 50% at Rs 1,787.80 cr
Godrej Q-2 PAT down 4.43% at Rs 32.26 cr
Bharat Electronics Q2 net at Rs 124 crore
Dewan Housing second quarter PAT up 36%
Shriram Transport Finance Q2 net up 79%

Aditya Birla Nuvo Q2 net loss at Rs 105 crore
Alstom Projects Q2 net up two-fold at Rs 59.01 crore
Binani Cement Q2 net dips 44% at Rs 27 crore
Crisil Q2 net up 57% at Rs 42.32 crore
Jain Irrigation Q2 net slipsJSW Steel Q2 net falls over 50% at Rs 257.50 cr
Ambuja Cements Q3 net dips 7% at Rs 250 cr
Kirloskar Pneumatic Q2 net up 64% at Rs 7 cr
Shriram Transport Q2 net up 79.40%

ABB Q3 net down 9% at Rs 105 crMirc Electronics Q2 net dips 92%
BHEL net down 10.45% in Q2
Hindustan Unilever Q3 net up 34%
Tata Metaliks second quarter net at Rs 12.78 crore
Maruti net slides 37% at Rs 296 crore in Q2
Mahindra Ugine net loss in Q2 stands at Rs 1 crore
United Breweries Q2 net slips 51% at Rs 5 crore
HCC posts 72% higher 2nd quarter PAT
ITC Q2 net up 4.10% at Rs 802.70 cr
Oracle Financial Q2 PAT up 45.30%
Jaiprakash Hydro Q2 net down 48%
PTC India net profit rises 187.19% in the September 2008 quarter

NTPC Q2 net profit at Rs 2110.5cr
Tata Steel Q2 net profit at Rs 1787.81 cr
BHEL Q2 net profit at Rs 615.77 cr
ITC Q2 net profit at Rs 802.72 cr
JSW Steel Q2 consolidated net profit at Rs 252.4 cr

IDBI Bank Q2 net profit up at Rs 162.49 cr
ABB Q3 net profit up at Rs 104.8 cr
Maruti Q2 standalone net profit at Rs 296.1 cr
HUL Q3 net profit at Rs 547 cr
ITC Q2 net profit at Rs 802.72 cr

Lupin Q2 net profit at Rs 116 cr
SRF Q2 standalone net profit at Rs 58.9 cr
Alfa Laval Q3 net profits at Rs 21.38cr
GAIL Q2 net profit at Rs 1,023.45 cr

Other Results:
Usha Martin net profit rises 16.70% in the September 2008 quarter
Gujarat State Petronet net profit rises 74.32% in the September 2008 quarter
Monsanto India net profit rises 32.80% in the September 2008 quarter
Engineers India net profit rises 33.43% in the September 2008 quarter
Indian Hume Pipe Company net profit rises 32.22% in the September 2008 quarter

Great Offshore net profit declines 65.97% in the September 2008 quarter
Colgate-Palmolive (India) net profit rises 16.00% in the September 2008 quarter
Mahindra Lifespace Developers net profit declines 43.63% in the September 2008 quarter
Gammon India net profit declines 39.87% in the September 2008 quarter
Dishman Pharmaceuticals and Chemicals net profit rises 19.48% in the September 2008 quarter

CRISIL net profit rises 84.86% in the September 2008 quarter
Bank of Maharashtra net profit declines 22.00% in the September 2008 quarter
Meghmani Organics net profit rises 67.86% in the September 2008 quarter
Graphite India net profit rises 25.56% in the September 2008 quarter
Torrent Pharmaceuticals net profit rises 18.68% in the September 2008 quarter

PVR net profit rises 26.88% in the September 2008 quarter
Balaji Telefilms net profit declines 31.01% in the September 2008 quarter
Rain Commodities net profit declines 44.82% in the September 2008 quarter
Sterling Biotech net profit rises 22.92% in the September 2008 quarter
Glaxosmithkline Pharma net profit declines 47.00% in the September 2008 quarter

Gujarat Mineral Development Corporation net profit declines 55.36% in the September 2008 quarter
Jain Irrigation Systems net profit declines 18.33% in the September 2008 quarter
Aditya Birla Nuvo net profit rises 19.07% in the September 2008 quarter
Shriram Transport Finance Company net profit rises 79.41% in the September 2008 quarter
Bharat Electronics net profit rises 0.73% in the September 2008 quarter

Bharat Heavy Electricals net profit declines 10.45% in the September 2008 quarter
Alstom Projects India net profit rises 143.84% in the September 2008 quarter
ABB net profit declines 9.42% in the September 2008 quarter

Great Eastern Shipping Company net profit rises 47.66% in the September 2008 quarter
Maruti Suzuki India net profit declines 36.52% in the September 2008 quarter
Rural Electrification Corporation net profit rises 35.91% in the September 2008 quarter
Asian Paints net profit rises 12.24% in the September 2008 quarter
Zee News net profit rises 99.30% in the September 2008 quarter
Ashapura Minechem reports net loss of Rs 18.88 crore in the September 2008 quarter


Source: ET,BL,Indiaearnigns,capital market etc

Black FRIDAY, Worst fall; Sensex loses 1070 pts; Below 9K

Market suffers worst fall; Sensex loses 1070 points

Investors will remember October 24, 2008 as the blackest Friday the Indian stock market has seen and would want to put it behind them soon as possible.

In one of the worst trading sessions, investors helplessly saw their investments being wiped out. Those who were praying for a pull-back were left in the lurch as determined bears tore the market apart. The gains of the four-year bull-run were lost in just eight months. The biggest damage being suffered in last one month, with the indices losing over 36 per cent For traders, it was a nightmare as red blips flashed on their terminals.

The bear onslaught saw their stop-losses getting triggered. The party on the Dalal Street is over, but few would have expected such a savage end where share prices of blue-eyed large cap companies were reduced to that of smallcaps. Reliance Industries and ONGC were down 16.44 per cent and 15.01 per cent respectively. Indian equities were the worst performers.

Bombay Stock Exchange’s Sensex plunged 11 per cent or 1070.63 points to close at 8,701.07. The index touched a low of 8566.82. National Stock Exchange’s Nifty ended at 2584, down 12.20 per cent or 359.15 points. The broader index touched a low of 2525.05.

DLF (-23.96%), Ranbaxy Laboratories (-17.83%), Hindalco Industries (-17.82%), Tata Motors (-16.54%), Reliance Industries (-16.44%) and Mahindra & Mahindra (-16.04%) were the worst hit. BSE Midcap closed 8.38 per cent lower and BSE Smallcap Index ended 7.66 per cent down. The BSE Realty Index slumped 24.39 per cent and BSE Oil & Gas Index lost 14.97 per cent. Market breadth on BSE collapsed with 1835 declines against 247 advances. “Markets have fallen too much and moving up will take some time.

It can’t be said as of now whether the correction is over. Though we are in an oversold zone, news from the US markets and liquidity flows will govern the market,” said Dipen Shah, vice-president, private client group of Kotak Securities. However, this doesn’t seem to be the end of catastrophic fall on the Indian bourses. US stock futures hit lower circuit Friday an hour and half before the market opens. The Dow Jones Industrial Average futures slipped 550 points, or 6.27 percent and Standard & Poor's 500 futures shed 60 points or 6.56 per cent. Earlier in the day, Japan’s Nikkei 225 ended -9.60 per cent lower, Kospi fell 10.57 per cent and Hang Seng declined 8.30 per cent.

European markets also witnessed sharp correction. FTSE 100 was down 8.96 per cent, CAC 40 was down 8.90 per cent and DAX plunged 9.58 per cent. Shah’s advice to investors is to not panic and sell out everything. “There are still fundamentally sound stocks available at attractive levels. Good quality stocks in largecaps should not be sold and must be accumulated with medium to long term view.” Markets opened with a sharp cut but caved in after the Reserve Bank of India announced its half-yearly economic policy review, wherein it left policy rates and reserve ratios unchanged. The central bank also revised lower GDP growth target to 7.5-8.0 per cent from 8.0 per cent earlier but maintained the inflation target at 7 per cent for FY09. The revision in GDP growth forecasts led to panic among investors, already shaken by the relentless sell-off by foreign funds. There were market reports that long only funds and domestic institutions were too on sell-side.

Deven Choksey, MD, K R Choksey, said, “The arbitrage funds became really active today. They were involved in some reverse arbitrage selling in cash
and buying in the derivatives markets. Secondly, shorting by the FIIs is still rampant and even SEBI's involvement had been in vain. A lot of damage has happened to the markets and it is too late even for the regulators to take some action. Also, RBI lowered the economic growth targets adding fuel to the fire.” In today’s trade, foreign funds provisionally sold equities worth Rs 1,431 crore while domestic institution bought equities worth Rs 514 crore. Finance Minister P Chidambaram tried to intervene and calm frayed nerves but that helped little and markets plunged even further. On the RBI’s policy review meet, Chidambaram said the decision to keep rates steady was on expected lines. He added that the central bank would infuse liquidity and if required, would adopt conventional and unconventional tools.

Hopes shattered; Nifty ends 13% down
Nifty, Sensex each down 10%, Unitech slumps 52%
Bears attack Dalal Street;Sensex down 1000 points
No respite for market despite FM appeal; Sensex below 9000
Market melt downs;Sensex breaches 9000
Bank Nifty slumps 10%, Nifty below 2700
Rupee slips to record low of 50.15 per dollar
-----------------------------------------
Carnage on Dalal Street
Sensex nosedives below 9K
PM blames 'three failures' for global financial crisis
Sensex tanks 1071 pts; Nifty plunges 359 pts
Mayhem on Dalal St... Sensex bleeds nearly 1,100pts
Reliance falls to 52-week low on below expectation results
Markets rout hits investors hard; Sensex down 1,070 points
Post Session Commentary - Oct 24 2008
Market mauled in global rout in equities, disappoi...


Source: Sify,ET,BS,BL, DP blog etc