Market Outlook---March 31, 2010

Dealer’s Diary

The key benchmarks edged lower on profit taking. Nevertheless, the market breadth was strong, with some side counters surging sharply. The market edged higher in early trade, on firm Asian stocks. It remained range-bound later. The market slipped into the red in morning trade. It came off the lower level in midmorning trade, regaining the positive zone, but once again slipped into the red in mid-afternoon trade. The Sensex and Nifty lost 0.6% and 0.8%, respectively, while the BSE Mid-cap and Small-cap indices outperformed the benchmark indices to end the trading session higher by 0.2% and 0.8%, respectively. Among the front-liners, DLF, Tata Motors, Sterlite, BHEL and ICICI Bank were up by 1-3%, while HDFC Bank, Infosys, Sun Pharma, Grasim and Hero Honda were down by 2-3%. In the mid-cap segment, Asian Star, JM Financial, Corporation Bank, Gujarat Industries and Kansai Nerolac were up by 6-18%, while MVL, Engineers India, Deccan Chronicle, Indusind Bank and Polaris Software were down by 3-8%.

Markets Today

The trend deciding level for the day is 17644/5280 levels. NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17730–17869/5308–5353 levels. However, if NIFTY trades below 17644/5280 levels for the first half-an-hour of trade then it may correct up to 17504–17419/5234–5206 levels.

Economic and Political News

·         Govt. expects Rs150cr from direct tax in IPL-3

·         Steel Min. seeks PM support for 20% export duty on ore

·         Service Tax on railway freight only from July: Fin Min

Corporate News

·         L&T bags Rs1,126cr orders for Metallurgical, Material Handling & Water projects

·         Supreme Infra. Bags an order worth Rs44cr

·         SAIL forms a JV with Shipping Corporation of India

Market Outlook---March 22, 2010

Dealer’s Diary
The Indian indices opened marginally positive but maintained a trend of directionless trade, as they gyrated in a narrow band for most of the session. Volatility ruled the roost until mid-session, as the markets traded with minor, updown swings, although they sustained in the green. The markets slipped in the red in the final session, but a sharp recovery, led by benchmark heavyweight Reliance Industries, helped the indices close at their day’s highs. Both the Sensex and the Nifty gained 0.3% each, while the BSE Mid-cap and Small-cap indices registered gains of 0.1% and 0.4%, respectively. Among the front-liners, Bharti Airtel, RCom, Hero Honda, SBI and HUL were up by 1-4%, while HDFC, DLF, M&M, TCS, and ICICI Bank were down by 1-2%. In the mid-cap segment, Kirloskar Oil, United Breweries Holding, HSBC Investdirect, Deccan Chronicle and Apollo Tyres were up by 5-8%, while Motilal Oswal, Novartis, Carborundum, REI Six Ten Retail and IBREL were down by 3-5%.

Markets Today

The trend deciding level for the day is 17560/5257 levels. NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17619–17659/5276–5289 levels. However, if NIFTY trades below 17560/5257 levels for the first half-an-hour of trade then it may correct up to 17520–17462/5243–5224 levels.

Economic and Political News
• ONGC, partners bag 17 blocks under NELP-VIII
• NHAI raises net worth criteria for large projects
• World Bank gives US $1.05bn loan for education sector
• Oil ministry wants market-linked prices
Corporate News
• Bajaj Holdings raises stake in Bajaj Electricals
• Amtek Metal in pact with state for Rs15,820cr auto park project
• Vishal lenders near agreement on restructuring

Market Outlook---March 19, 2010

Dealer’s Diary

The Sensex slipped into the red soon after initial gains, hitting a fresh day's low in mid-morning trade. The market recouped its entire losses later. The Sensex hit a fresh intraday low in afternoon trade as Asian stocks fell. The key benchmark indices surged to the day's highs at the fag end of trade after global rating agency Standard & Poor's (S&P) revised India's rating outlook to stable from negative. S&P affirmed the 'BBB-' long-term and 'A-3' short-term sovereign credit ratings on India. Capital goods, FMCG stocks fell. Auto stocks were mixed. Banking and metal stocks rose. Stocks were volatile as traders rolled over positions in the derivatives segment from the March 2010 series to the April 2010 series, ahead of the expiry of the near-month March 2010 contracts on Thursday, 25 March 2010. Both the Sensex and Nifty gained 0.2% and 0.3%, respectively, while the BSE Mid-cap and Small-cap indices also gained 0.4% and 0.1%, respectively.

Markets Today

The trend deciding level for the day is 17495/5239 levels. NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17572–17626/5263–5280 levels. However, if NIFTY trades below 17495/5239 levels for the first half-an-hour of trade then it may correct up to 17442–17364/5222–5197 levels.

Economic and Political News

·         Govt. likely to infuse Rs9,500cr in banks in 1QFY2011

·         3G airwave race gathers pace, bids in April’10

·         Food inflation eases, headline index expected to rise

·         India to sign trademark protection treaty

Corporate News

·         Glenmark unit gets USFDA nod for hypertension drug

·         ArcelorMittal in stake buy talks with Bhushan Power

·         NTPC, IOC plan JV for biodiesel, lubricants

Market Outlook---March 18, 2010

Dealer’s Diary
The benchmark indices surged in early trade, tracking firm global stocks. Global stocks rose after the US Fed held benchmark rates near zero and maintained its pledge to keep them low for an extended period. However, after hitting its highest level in nearly two months in morning trade, the market trimmed gains in early afternoon trade. The Sensex and the Nifty gained 0.6% and 0.7%, respectively, while the BSE Mid-cap and Small-cap indices gained 0.2% and lost 0.1%, respectively. Among the front-liners, Hindalco, ICICI Bank, TCS, L&T and Sun Pharma were up by 2-3%, while Maruti, HUL, Tata Power and Mahindra & Mahindra were down by 1-2%. In the mid-cap segment, STC, Andrew Yule, HMT, Amtek Auto and Engineers India were up by 5-18%, while Shriram City, MVL, Bannari Amman Sugar, Coromandel Intl, and Shree Renuka were down by 4-6%.

Markets Today

The trend deciding level for the day is 17485 / 5223 levels. NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17581 – 17673 / 5269 – 5307 levels. However, if NIFTY trades below 17485 / 5223 levels for the first half-an-hour of trade then it may correct up to 17394 – 17298 / 5186 – 5140 levels.
Economic and Political News
• Ports capacity to reach 1.5 billion tonnes by 2012: Shipping Ministry
• Govt. to invite bids for mega road projects
• India's arms import doubles in five years
Corporate News
• L&T bags Rs1,000cr project from ONGC
• Sanofi faces heat as WHO halts use of Shantha vaccine
• Dr Reddy's opens mPEG alcohol manufacturing plant in Mexico

Market Outlook---March 15, 2010

Dealer’s Diary

The market witnessed bouts of intraday volatility. Stocks pared gains soon after hitting 1-1/2 month highs at the onset of the trading session. The market regained strength in morning trade but trimmed gains in mid-morning trade. The key benchmark indices recovered from the day's lows and provisionally closed flat after moving between the positive and negative terrain throughout the day. Higher European stocks helped late recovery on the domestic bourses. But the market ended off the day's high as strong industrial production data for January 2010 reinforced expectations of a rate hike by the Reserve Bank of India. Industrial output was up by a robust 16.7% yoy in Jan 2010. IT, Realty and Banking stocks fell. The Sensex closed down by 0.01%, while the Nifty gained by 0.1%. The BSE Mid-cap and Small-cap indices also closed down by 0.2% and 0.4% respectively. Among the front-liners, Hindalco, Bharti Airtel, Tata Power, ITC and Mahindra and Mahindra were up by 1-3%, while HUL, Sun Pharma, RCom, BHEL and HDFC Bank were down by 1-4%. In the Mid-cap segment, Monnet Ispat, Novartis India, IBN18 Broadcast, Infotech Enterprises and Indusind Bank were up by 4-8%, while REI Six Ten Retail, Shree Renuka Sugars, M&M Financials, Bannariamman Sugars and Sobha Developer were down by 4-7%.

Markets Today

The trend deciding level for the day is 17179/5139 levels. NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17232–17297/5156–5175 levels. However, if NIFTY trades below 17179/5139 levels for the first half-an-hour of trade then it may correct up to 17114–17062/5120–5103 levels.

Economic and Political News

·         Forex reserves up at US$278.4bn

·         Manufacturing leads industrial output growth to 16.7%

Corporate News

·         NMDC FPO sails through; FIIs, retail stay away

·         Bharati Shipyard buys another 3% in Great Offshore

·         Triveni Engineering announces demerger of steam turbine biz

·         McNally Bharat bags Rs.245.4cr SAIL order

Market Outlook---March 11, 2010

Dealer’s Diary
The benchmark indices posted small gains as European markets reversed early losses and US index futures rose. The market breadth was weak after a strong start. Auto stocks edged higher on fresh buying. Banking shares were mixed. Telecom pivotals saw a divergent trend, but IT stocks declined on profit taking following recent gains triggered by upbeat US jobs data. The Sensex and the Nifty closed in the green, with gains of 0.3% each. The BSE Mid-cap and Smallcap indices underperformed the benchmark indices and closed with losses of 0.1% and 0.2%, respectively. Among the front-liners, Hero Honda, ACC, RIL, JP Associates and HDFC were up by 1-3%, while NTPC, Maruti Suzuki, Bharti Airtel, Infosys and Sun Pharma were down by 1%. In the Mid-Cap segment, M&M Financial Services, Asian Star, Amtek Auto, BF Utilities and Indusind Bank were up by 5-8%, while Balrampur Chini, Triveni Engineering, Bajaj Hindusthan, Shree Renuka Sugars and Nagarjuna Fertilizers were down by 4-8%.

Markets Today

The trend deciding level for the day is 17103/5115 levels. NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17179–17259/5138–5161 levels. However, if NIFTY trades below 17103/5115 levels for the first half-an-hour of trade then it may correct up to 17023–16948/5093–5070 levels.
Economic and Political News
• FDI inflows dip by 25% to US $2.04bn in Jan
• Govt. to collect Rs1,495cr as toll tax in 2009-10
• Govt. has no plans to sell stake in ONGC, IOC: Oil Secy.
Corporate News
• GVK power’s subsidiary bags 690MW project in J&K
• Bosch declares lock-out at Naganathapura plant
• Supreme Infra. bags two orders worth Rs405.4cr

Market Outlook---March 9, 2010

Dealer’s Diary
Political uncertainty weighed on the market sentiments with Samajwadi Party and Rashtriya Janata Dal deciding to withdraw support to the ruling UPA government. Shares of SBI and its associate banks surged after the Finance Minister introduced a bill in the Lok Sabha to allow the bank to raise more capital from the market. The Sensex and the Nifty closed the trading session in green with gains of 0.6% and 0.7% respectively. The BSE Mid-cap and Smallcap indices outperformed the benchmark indices and closed in green with gains of 0.7% and 1.1% respectively. Among the front-liners, M&M, Hero Honda, ITC, ICICI Bank and ACC were up by 2-4%, while Bharti Airtel, HUL, Reliance Infra, Hindalco and Reliance Communication were down by 1-2%. In the Mid-cap segment, Future Capital, Mahindra Holidays, Emami, Bombay Dyeing and State Bank of Bikaner were up by 7-15%, while Britannia, Pipavav Shipyard, Deccan Chronicle, Indiabulls Finance and Oriental Bank were down by 3-7%.
Markets Today

Market Outlook---March 9, 2010

Dealer’s Diary

Political uncertainty weighed on the market sentiments with Samajwadi Party and Rashtriya Janata Dal deciding to withdraw support to the ruling UPA government. Shares of SBI and its associate banks surged after the Finance Minister introduced a bill in the Lok Sabha to allow the bank to raise more capital from the market. The Sensex and the Nifty closed the trading session in green with gains of 0.6% and 0.7% respectively. The BSE Mid-cap and Smallcap indices outperformed the benchmark indices and closed in green with gains of 0.7% and 1.1% respectively. Among the front-liners, M&M, Hero Honda, ITC, ICICI Bank and ACC were up by 2-4%, while Bharti Airtel, HUL, Reliance Infra, Hindalco and Reliance Communication were down by 1-2%. In the Mid-cap segment, Future Capital, Mahindra Holidays, Emami, Bombay Dyeing and State Bank of Bikaner were up by 7-15%, while Britannia, Pipavav Shipyard, Deccan Chronicle, Indiabulls Finance and Oriental Bank were down by 3-7%.

Markets Today

The trend deciding level for the day is 17108/5121 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17182–17261/5150–5176 levels. However, if NIFTY trades below 17108/5121 levels for the first half-an-hour of trade then it may correct up to 17029–16956/5095–5066 levels.

Economic and Political News

·         Govt. to reduce stake in SBI from 59.4% to 51%

·         RBI drafting new norms for NBFCs

·         Andra Pradesh to get Jute Park, set to attract investments worth Rs500cr

Corporate News

·         ICICI bank sells Prabhadevi property for Rs3.7cr

·         PE firm Sequoia may pick up 9.4% in CARE

·         Daimler looking to exit Tata Motors via market

Market Outlook---March 8, 2010

Dealer’s Diary
The key benchmark indices eked out marginal gains in what was a volatile trading session. The market opened on a firm note, tracking gains in Asian stocks. The market cut gains in early afternoon trade, after the government sought an additional spending plan for the current year. The market regained strength in mid-afternoon trade as world stocks rose. The market pared gains in late trade. The Sensex and the Nifty closed the trading session in the green with gains of 0.1% and 0.2%, respectively. The BSE Mid-cap and Small-cap indices outperformed the benchmark indices and closed in the green with gains of 0.6% and 0.8%, respectively. Among the front-liners, DLF, Hero Honda, Bharti Airtel, Sun Pharma and JP Associates were up by 1-4%, while Tata Motors, Wipro, BHEL, Hindalco and NTPC were down by 1-2%. In the mid-cap segment, Puravankara Projects, Pipava Shipyard, Firstsource Solutions, Petronet LNG and Prakash Industries were up by 6-12%, while Eicher Motors, Sterlite Technologies, Simplex Infrastructures, MRF and National Fertilizer were down by 3%.

Markets Today

The trend deciding level for the day is 17009/5092 levels. NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17083–17171/5116–5142 levels. However, if NIFTY trades below 17009/5092 levels for the first half-an-hour of trade then it may correct up to 16921–16848/5065–5041 levels.
Economic and Political News
• Govt. grants coal linkages to 11 new power units
• LIC aims 20% growth in investment
• Direct Tax Code draft in 3 months
Corporate News
• BSNL scraps US $10bn mega GSM tender
• Essar set to buy US co. Trinity coal for US $600mn
• Adani power shortlisted for Kosovo project

Market Outlook---March 5, 2010

Dealer’s Diary

The benchmark indices ended with small losses after witnessing intraday volatility. Fears of a rise in interest rates following the rise in food inflation weighed on investor sentiment. Weak global cues played the spoilsport, after strong gains on the domestic bourses over the past three trading session. The Sensex and the Nifty closed marginally in the red, down by 0.2% each. The BSE Mid-cap and Small-cap indices outperformed the benchmark indices and closed in the green with gains of 0.8% each. Among the front-liners, RCom, DLF, Reliance Infra, HUL and Tata Steel were up by 1-2%, while Infosys, Maruti Suzuki, ICICI Bank, Hindalco and JP Associates were down by about 1%. In the mid-cap segment, UB Holdings, MRF, Coromandel International, 3M India and Apollo Tyres were up by 6-12%, while Amtek Auto, Indusind Bank, Indiabulls Financial Services, Oriental Bank of Commerce and Indiabulls Power were down by 3-7%.

Markets Today

The trend deciding level for the day is 16962/5075 levels. NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17035–17098/5102–5123 levels. However, if NIFTY trades below 16962/5075 levels for the first half-an-hour of trade then it may correct up to 16898–16825/5054–5027 levels.

Economic and Political News

More than Rs25,000cr from disinvestment this year

Direct tax kitty swells 7.5% till Feb

NHAI to raise funds from market to build 14,000 km in 2010-11

Govt. okays FDI plan of India Infra Development Fund

Corporate News

Tata motors, Nano vendors not giving up Singur land

Essar Oil plans Rs4,000cr investment for CBM blocks

Ashok Leyland to invest Rs3,000cr in various projects

Strides acquires Aspen's unit in Brazil for US $75mn

Market Outlook---March 3, 2010

Dealer’s Diary
The key benchmark indices surged for the second straight day post positive announcements in Union Budget 2010-2011 late last week. The market surged in early trade tracking overnight gains in global stocks when the Indian market was closed for the Holi festival. The market pared gains in morning trade. The market surged in mid-morning trade with the Sensex hitting fresh intraday high extending gains in late trade. The BSE Sensex and the NSE Nifty closed with gains of 2.1% and 1.9% respectively. The BSE Mid-cap and Small-cap indices too closed well in green with gains of 2.2% and 2.3% respectively. Among the front-liners, Tata Motors, Tata Steel, Hindalco, Tata Power and M&M were up by 5-12%, while DLF, Reliance Infra, Hindustan Unilever, ONGC and NTPC were down by 0-2%. In the Mid-cap segment, Jet Air India, Jain Irrigation, Core Projects, Fortis Healthcare, Sterlite Technologies were down by 8-15%, while Shree Renuka Sugar, Ruchi Soya, ICI India, Dishman Pharma and Sunteck Realty were down by 2-3%.
Markets Today
The trend deciding level for the day is 16673/4994 levels. NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 16908–17043/5053–5088 levels. However, if NIFTY trades below 16673/4994 levels for the first half-an-hour of trade then it may correct up to 16538–16303/4958–4900 levels.
Economic and Political News
• Imports up 35.5% to $24.7bn in January
• Jan-Feb coffee export volumes surge 43%
• Steel players pass on the 2% Excise Duty hike
• RBI grants infrastructure status to cold storages
• PSUs to raise over Rs56,000cr via bonds, debentures
Corporate News
• Tata's Corus sells stake in European tar plant JV
• Vedanta raises $805mn via convertible bonds, partly to invest in Alumina Project in Orissa
• New Silk Route Partners picked ~30% in Nectar Lifesciences for Rs250cr @ Rs35/share
• Maytas Infra, HDFC Bank fix repayment plan
• BGR Energy Systems bags four projects worth Rs62.20cr

Market Outlook---March 2, 2010

Dealer’s Diary

The benchmark indices opened on a cautious note ahead of the Union Budget for 2010-11. Markets traded with marginal gains in a narrow band for the entire morning session, before key positive announcements from the Finance Minister took markets sharply higher to intra-day highs in the afternoon. However, markets were unable to sustain the Budget euphoria as they slipped lower in final session, albeit to close higher than previous close with gains of more than 1%. The BSE Sensex and the NSE Nifty closed with gains of 1.1% and 1.3% respectively. The BSE Mid-cap and Small-cap indices too closed well in green with gains of 1.5% and 1.1% respectively. Among the front-liners, Tata Motors, Hindalco, M&M, Hero Honda and Reliance Infra were up by 5-6%, while ITC, Tata Power and BHEL were down by 1-6%. In the Mid-cap segment, IFCI, Amtek Auto, Moser Baer, Shriram Transport Finance and Ashok Leyland were down by 6-8%, while UTV Software, Astrazeneca, Indiabulls Real Estate, Shree Renuka Sugar and Kalpataru Power were down by 3-4%.

Markets Today

The trend deciding level for the day is 16449/4924 levels. NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 16649–16869/4990–5058 levels. However, if NIFTY trades below 16449/4924 levels for the first half-an-hour of trade then it may correct up to 16230–16030/4857–4791 levels.

Economic and Political News

Feb factory growth at 20-month high: PMI

Cement Companies raise prices by Rs10-12/bag

Government plans Satluj Jal Vidyut Nigam IPO in April to raise Rs1,200cr

Corporate News

GVK eyes management control of Bangalore Airport

Texas Pacific Group may acquire Vishal Retail

SC rejects Bayer AG’s plea to stay Cipla’s cancer clone of Nexavar

Bhushan Steel to spend Rs26,000cr to build 6lakh tonnes steel plant at Bellary