WHAT TO DO.............IN INDIAN MARKET ?

WORLD MARKET

USA
Down plunging continue with Lehman dead and Merrill sold off with AIG on the brink and Washington Mutual not far behind for collapsed. We are expecting in coming days.
1. The dow is still far from its all time high, with a lot further pain in USA economy expected and likely target 7500 + in coming days. More financial failures you have been so far are just the tip of the iceberg.....
2. Lehman Brothers is merely the first to fail. Expect more in the weeks ahead, possibly starting with that have the smallest capital cushion.
3. Bank of America is making horrendous mistake. Its already bogged down with its earlier purchase of Countrywide Financial, classic pig in the poke. Now, on tope of that bad move, its taking on all the debts and risks of Merril Lynch.
4. AIG, the biggest insurance firm of the USA is desperately trying to shore up its balance sheet after suffering losses of millions over the past three quarters. It is planning to dump assets, raise capital and asking the Federal Reserve for a 40 $ billion bridge loan. Don't be surprised if AIG is taken over by insurance regulators in the days ahead. And do not be shocked if more insurance copy any failures follow.
5. Look out for bigger financial troubles in the banking industry including not only the names that are in the news, like Washington Mutual and Wachovia, but also at Citocorp, HSBC and yes Bank of America.
6. We expect that the USA market and economy will recover eventually, but only after the nation's bad debts are liquidated, a process that will be extremely painful and traumatic.
So what to do.........in Indian Market.
?

END SESSION

Market pares losses
News that China's central bank has cut interest rates helped the domestic bourses cut steep intra-day losses. Despite the recovery, the market ended the day with heavy losses. The BSE 30-share Sensex was down 517.46 points as per provisional closing. Fears of more foreign fund withdrawals weighed heavily on the Indian bourses today, 15 September 2008, after US investment bank Lehman Brothers filed for bankruptcy protection.
The financial upheaval also involved other US institutions. Bank of America has agreed to acquire Merrill Lynch & Co for $50 billion in an all-stock deal that will give the US bank the world's largest brokerage.
Index heavyweight Reliance Industries (RIL) rebounded after touching 52-week low. Maruti Suzuki India staged a sharp recovery from day’s low. Banking pivotals also rebounded from early lows after China's central bank today, 15 September 2008, cut benchmark lending rates by 0.27%. All the BSE sectoral indices declined with stocks from IT and real estate worst hit.
US stock index futures were down sharply, pointing to a steep fall at the opening on Wall Street. European markets which opened after Indian markets were weak. Key benchmark indices in UK, Germany and France were down by between 3.67% and 4.29%. Asian markets were trading lower today, 15 September 2008. Key benchmark indices in Taiwan and Singapore fell 4.09% and 3.27% respectively. Most major Asian equity markets were closed for public holidays.
The BSE 30-share Sensex was down 517.46 points or 3.70% to 13,483.35, as per provisional closing. The Sensex opened with a huge downward gap of 408.76 at 13,592.05. At the day’s low of 13,150.81 hit in mid-morning trade, the Sensex lost 850 points.
The S&P CNX Nifty was down 167.45 points or 3.96% to 4,061 as per provisional. It had touched an intra-day low of 3,955.40
The market breadth was extremely weak on BSE with 2258 shares declining as compared to just 375 that rose. 38 remained unchanged.
27 from the 30-member Sensex pack suffered losses.
India’s largest private sector power generation company in terms of sales, Reliance Infrastructure tumbled 9.93% to Rs 837 on 17.35 lakh shares. It was the top loser from Sensex pack.
IT pivotals tumbled due to heavy selling on reports that hedging positions taken by the companies are improper with rupee falling to two-year low against the dollar. India’s fourth largest software services exporter Satyam Computer Services slumped 9.61% to Rs 367.50 and was the worst hit among the IT pivotals.
Other IT stocks Wipro (down 4.47% to Rs 401), Infosys (down 4.08% to Rs 1577), TCS (down 5.94% to Rs 760.15), edged lower.
Banking pivotals rebounded from early lows. India's largest private sector bank in terms of net profit ICICI Bank slipped 4.11% to Rs 626, off day’s low of Rs 595.15. India’s largest state run bank in terms of net assets State Bank of India fell 1.68% to Rs 1486.95 , off day’s low of Rs 1405.25
China's central bank, acting against a background of extreme stress in global financial markets, cut benchmark lending rates by 27 basis points to 7.20% today, 15 September 2008. The People's Bank of China (PBOC) also cut the reserve requirement for all except the country's five biggest banks and the Postal Savings Bank by 1%. The PBOC said the aim of the easing was to maintain fast and stable economic growth.
India’s largest private sector firm in terms of market capitalization and oil refiner Reliance Industries slumped 2.98% to Rs 1873.80 on 19.05 lakh shares. The stock hit a 52-week low of Rs 1824.10 in intra-day trade. The stock slumped on reports the government may impose a special oil tax on the domestic crude oil production under the New Exploration Licensing Policy.
Other oil & gas stock, Essar Oil (down 9.33% at Rs 168.05), Cairn India (down 7.47% at Rs 205.10), and Oil & Natural Gas Corporation (down 6.74% at Rs 959.90), slumped.
Realty shares cracked on intense selling pressure. DLF (down 7.72% to Rs 431.80), Unitech (down 7.67% to Rs 143.25), Indiabulls Real Estate (down 6.05% to Rs 237.50), Ansal Infrastructure (down 11.81% to Rs 78), Housing Development Infrastructure (down 12.11% to Rs 241), slumped.
Metal shares slipped. Ispat Industries (down 6.99% to Rs 21.30), Jindal Steel & Power (down 5.62% to Rs 1497), Hindalco (down 5% to Rs 115), Sesa Goa (down 4.71% to Rs 129.50), and Tata Steel (down 4.77% to Rs 498.50), slipped.
Ranbaxy Laboratories, India’s top drug maker by sales fell 8.78% to Rs 414.10. The stock has been on sustained downtrend ever since the Japanese drug maker Daiichi Sankyo’s open offer to acquire an additional 20% stake at Rs 737 a share in the company ended on 4 September 2008.
Reliance Communications (down 6.23% to Rs 366.80), Jaiprakash Associates (down 6.51% to Rs 147.30), and Tata Motors (down 5.26% to Rs 390.20), edged lower from Sensex pack.
India’s top small car maker by sales Maruti Suzuki India staged a smart recovery from day’s low of Rs 666. It rose 2.03% to Rs 718 and was the top gainer from Sensex pack.
HDFC (up 1.33% to Rs 2208), and ACC (up 0.41% to Rs 593), were the other gainers from Sensex pack.
US light crude for October 2008 delivery fell $1.52 to $99.66 a barrel today, 15 September 2008 on early signs that Hurricane Ike may have spared key Gulf Coast infrastructure, although traders were cautious on Monday as they awaited status reports on more Texas refineries.
US markets ended mixed on Friday, 12 September 2008, amid uncertainty over the fate of troubled investment bank Lehman Brothers. But shares of natural resource companies and utilities gained as commodity prices rose, offsetting losses among financial and bank shares. The Dow Jones industrial average slipped 11.72 points, or 0.10%, to 11,421.99. The S&P 500 index gained 2.65 points, or 0.21%, to 1,251.70, and the Nasdaq Composite index advanced 3.05 points, or 0.14%, 2,261.27.

Other StoriesLate sell-off grips bourses (12-Sep 15:40 Hrs IST)Market drops for the third day in a row (11-Sep 15:38 Hrs IST)Market slips on weak global cues (10-Sep 15:45 Hrs IST)Market drifts lower (9-Sep 15:41 Hrs IST)Market pares gains in late trade (8-Sep 15:40 Hrs IST)Realty, IT shares trigger over 400-point Sensex slide (5-Sep 15:38 Hrs IST)Market ends volatile session with a loss (4-Sep 15:38 Hrs IST)Market soars on sliding crude oil prices; Sensex settles above 15,000 (2-Sep 15:38 Hrs IST)Bank shares lead sharp intra-day recovery on bourses; Nifty in green (1-Sep 15:37 Hrs IST)Sensex gallops over 500 points; bank, realty shares rally (29-Aug 15:39 Hrs IST)Next
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DAILY NEWS UPDATES

09-02-2008
Software stocks may see action

Software stocks may see action as the Indian rupee opened weaker today, taking the appointment of a new central bank chief in its stride, as it focused on concerns about a widening trade deficit. At 9:03 IST, the rupee was trading at 44.22/23 per dollar, compared with previous close of 44.17/18.
Cement makers ACC, Ambuja Cements, JK Lakshmi Cement and Ultratech have reportedly raised cement prices in Mumbai by Rs 3 per 50 kilogram bag.
Reliance Industries has reportedly dropped plans to acquire the polyester manufacturing unit of US-based polyester maker Unifi, in which it planned to invest about $250 million.
ICICI Venture-controlled Ranbaxy Fine Chemicals is close to buying US speciality chemicals maker Mallinckrodt Baker, a unit of healthcare group Covidien, for $340 million. ICICI Venture may put in $100 million as equity contribution, while the balance will be provided as debt by ICICI Bank. ICICI Venture is a wholly-owned unit of ICICI Bank.
Kinetic Motor Company said on Monday, 1 September 2008 its board approved an investment of Rs 29.5 crore in Mahindra Two Wheelers, its joint venture with Mahindra & Mahindra. The company will also sub-license the 'Kinetic' brand to Mahindra Two Wheelers for 25 years, it added.
State-run Union Bank of India reportedly plans to raise Rs 1000 crore via debt in a month's time. The bank has headroom to raise up to Rs 3500 crore and it would try to raise the amount by the end of 2008, the reports added.
01-09-2008 Reliance Industries may see action
Reliance Industries (RIL) has reportedly scrapped a plan to transfer an 80% stake in a deepwater block to four fully-owned units. Reliance, which owns 90% in the gas-rich D-6 block in the Krishna Godavari basin off India's east coast, had said last week it sent a proposal for the transfer to the government and was awaiting approval.
Besides this, RIL is reportedly planning to foray into nuclear power generation. As per reports, RIL is in talks with a French nuclear power company. RIL and the French company is looking for eight-ten sites in India.
State-run oil companies have reportedly cut aviation turbine fuel prices by 16%, or Rs 11,784 a kilolitre, with effect from Sunday midnight, due to softening international crude prices. However, major domestic airlines have ruled out cutting fares at the moment.
Credit Suisse is reportedly in talks with real estate firm Puravankara Projects to invest about Rs 550 crore in its low-cost housing unit Provident Housing & Infrastructure.
Tata Steel is reportedly scouting for iron ore deposits in Laos and has started prospecting some mines there. The company is already building an integrated steel plant in neighbouring Vietnam and will also have a 30% stake in an iron ore firm there, the reports added.
Shipping Corporation of India reportedly plans to revive its joint venture with Oil and Natural Gas Corporation (ONGC), to provide solutions in vessel operations for the explorer and other oil and gas firms. It is looking for a third partner for the venture, which was earlier planned in 2006.
Alok Industries is reportedly in talks with several private equity firms to sell 20% - 25% stake in its realty project in central Mumbai, for about Rs 300 crore.
Aban Offshore reportedly plans to raise Rs 1000 crore through a qualified institutional placement. The company has shelved plans to raise $500 million by sale of stake in its Singapore subsidiary, due to falling valuations, the reports added.
The board of TTK Prestige will meet today, 1 September 2008 to consider delisting the shares of the company from the Bombay Stock Exchange and the National Stock Exchange.
The board of Rain Commodities will meet today, 1 September 2008 to consider the proposal for buy back of equity shares of the company.
The board of Punjab Chemicals & Crop Protection approved acquiring 70% stake in Parul Chemicals, having an enterprise value of Rs 9 crore. The company also plans to spend about $25 million to expand its international portfolio.
Tyre major MRF will reportedly foray into the aviation tyre space with the unveiling of Aero Muscle, a product born out of in-house research and perfected over the last three years. Commercial production of aviation tyres will start in a new line at its Medak facility in Andhra Pradesh.
29-08-2008 Jai Corp may see action
Jai Corp reportedly plans to get into distribution and supply of city gas and liquified petroleum gas, an area primarily dominated by government-owned companies.
Bharat PetroResources, an exploration and production subsidiary of Bharat Petroleum Corporation, has reportedly bought 10% stake in an oil block in Mozambique for $75 million.
Tata Steel Global Holding Pte Ltd, the Singapore-based subsidiary that owns the international steel and mining assets of Tata Steel, is reportedly in talks to raise at least $1 billion through a private placement of shares.
Highway regulator National Highways Authority of India has reportedly prevented GMR Group and Madhucon Projects from bidding for a highway stretch in Andhra Pradesh and replaced them with two others, after a re-evaluation of bids.
Kinetic Motor Company will reportedly enter the used two-wheeler business, riding on Mahindra & Mahindra's (M&M) captive finance arm and network in the aftermarket segment. M&M owns 80% in the joint venture with Kinetic.
The board of Nectar Lifesciences has approved splitting each share into ten. It also approved raising $2.5 million through the issue of convertible warrants on preferential basis to two foreign funds.
The board of Mascon Global has approved raising about $150 million in the overseas markets. It is planning to raise $60 million through the issue of Global Depositary Receipts (GDRs), it said in a statement.
The board of IOL Netcom will meet on 4 September 2008 to consider raising funds through a mix of equity, debt, and other instruments.
Gitanjali Gems has reportedly pulled out of the race to buy US-based jewellery retail chain Whitehall due to differences on pricing.
Department of Telecommunications has issued a letter to Unitech's subsidiary company for allotment of 4.4 megahertz (MHz) of spectrum in 1,800 MHz Global System for Mobile (GSM) band in respect of Madhya Pradesh service area. With this, the firm have been allotted initial spectrum in 6 service areas out of total 22 service areas.
Zenith Computers on Thursday, 28 August 2008 unveiled EcoStyle PCs, including a Rs 11,999 desktop personal computers (PC) and a Rs 14,999 laptop. The company launched these products in collaboration with software major Microsoft. BUY BHARTI SHIPARD AND ABGSHIP YARD ON DECLINES WITH STRICT SL N SHORT TERM TRG8 OF ?
(29-08-2008 09:10 am) powered by c market

BSNL IPO NOT YET FINALISED
One of the indian telecom major Bharat Sanchar Nigam Ltd(BSNL) is not yet proposed its Initial Public Offer(IPO),telecom minister A.Raja said on thursday(AUG 7).He said if Bharat Sanchar Nigam Ltd(BSNL)entering into the indian stock market means ,Each BSNL employee is eligible to get 500 shares at Rs.10 per share(Face Value).For others,price band range will be around Rs 300-400(Not fixed) per share depends on the market condition.BSNL got Rs 20 billion from Department Of Telecommunications(DOT). this was happened due to TRAI's false decision so it has compensated from the revenues of private telecom companies went to BSNL.Also BSNL got a 3G spectrum block on Thursday.BSNL officials are telling that this Initial Public offer (IPO) will take another six months to get finalised.

Vintage one rupee coin auctioned for Rs 220,000 Posted: 17 Aug 2008 01:01

Inflation surges to 12.44 per cent

CBI raids LIC, bank officials in Rs.5 mn insurance fraud

Iron ore shortage closes 25 units in Chhattisgarh

Inflation rises to 12.44 percent, finance ministry 'disappointed'

EIH to invest Rs.6.Airport upgrade work at Kolkata, Chennai to begin in September 5 bn on two new hotels

NMCE to launch new futures contracts in 13 commodities

Indian inflation jumps in early Aug, policy seen tight

INSTANT VIEW - Indian annual inflation at 12.44 pct on Aug2

Indian rupee falls past 43/dlr to 1-month low on oil

Oil edges above $116 after rise on U.S. data
Posted: 14 Aug 2008 09:00 AM
Hot Pursuit
Now on Stands !CoverStory Weighed down
Deccan Aviation leads gainers in ‘A’ group (12/8/2008,16:38 Hours IST)Gammon India, Bajaj Holdings & Investment, Biocon and Jet Airways India are among the other gainers.
Landmark Property Development tops volumes on BSE (12/8/2008,15:20 Hours IST)RNRL, Chambal Fertilizers & Chemicals, Nagarjuna Fertilizers & Chemicals and Kaashyap Technologies are among the other volume toppers on BSE
Refinery stocks glitter on falling crude (12/8/2008,15:15 Hours IST)Three public sector refining stocks were trading mixed at 15:21 IST on BSE after crude oil prices continued their downtrend.
Central Bank of India slips after hiking lending rates (12/8/2008,14:41 Hours IST)Central Bank of India fell 1.08% to Rs 64 at 14:47 IST on BSE after the bank increased its benchmark prime lending rate by one percentage point to 14% with immediate effect.
Steel Strips Wheels shifts gears on strong sales in July 2008 (12/8/2008,14:40 Hours IST)Steel Strips Wheels soared 2.98% to Rs 121 at 14:40 IST on BSE after the company posted 20% growth in sales to 5.15 lakh units in July 2008 over July 2007.
SEL Manufacturing gains on expansion buzz (12/8/2008,14:13 Hours IST)
Metal shares fall as metal prices melt on LME (12/8/2008,14:13 Hours IST)
Biocon inches ahead after setting record date for bonus (12/8/2008,12:56 Hours IST)
Astral Poly Technik surges on new JV (12/8/2008,12:42 Hours IST)
Diversification powers KEC International (12/8/2008,12:41 Hours IST)
Trent gallops on Tesco deal (12/8/2008,12:18 Hours IST)
Buyback fails to cheer FDC (12/8/2008,12:11 Hours IST)
Indian Bank banks on hike in lending rates (12/8/2008,11:26 Hours IST)
L&T wins buyers but not investors (12/8/2008,11:26 Hours IST)
Expansion does not benefit Bharat Forge (12/8/2008,11:02 Hours IST)
Texmaco speeds up on demerger plan (12/8/2008,10:58 Hours IST)
UNICEF order boosts Panacea Biotec (12/8/2008,10:29 Hours IST)
Price hike buzz spurs Hindustan Unilever (12/8/2008,10:17 Hours IST)
SBI gains on hike in lending rates (12/8/2008,09:48 Hours IST)

S&P: Inflation measures to stall Asia growth

PM’s council to release economic outlook tomorrow

India ready to scrap duty on crude oil import from Brunei

Oil to resume climb above $150: Expert

IEA says oil price weighing on OECD demand

Inflation likely to touch 13-14 pc by Oct: ABN Amro Chief

Oil falls to 3-month low, IEA, Georgia in focus

IEA nudges up 2009 oil demand, sees higher supply

High interest rates take toll on industrial growth

Lamy: trade deal still possible by end-2008

McDonald’s shares fall 1.4 pc on UBS action

Posted: 12 Aug 2008 09:01 AM CDT

08-12-08

Markets witnessed spectacular rally as rate sensitives, infrastructure and oil stocks have played key role in todays trade. Fall in crude oil price below USD 116 a barrel and positive European cues also helped markets to remain strong. IIP numbers are expected to be around 5.6% (which will be announced on Tuesday) as against 3.8%. Markets have continued to gain on the back of buying in realty, banking, oil gas, capital goods, auto and power stocks. Midcap and small cap stocks are trading strong. European markets also maintained upmove following positive US markets cues

Mkts to consolidate in 13.517K range in few mths: MOST

Dhiraj Agarwal, CEO of PMS of Motilal Oswal Securities, believes market upside has been capped, but it\’s unlikely to head back to lows. Markets are likely to consolidate in 13,500 17,000 range for the next few months. Agarwal said the bulk of bad news have been factored in and price damage may be

Nifty to touch 4,600 today Positive cues from global markets and fall in crude oil prices will help the markets rally. The target for Nifty is 4600. The start should be good and markets will probably go back to the highs, which we saw early part of last week.

Buy Reliance Communications, target of Rs 508: KRChoksey

KRChoksey Research has maintained its buy rating on Reliance Communications with a revised target price of Rs 508. Revenue was Rs 5178 crore lower than research firm\’s expectations. Net sales declined 1% qoq in spite of an 11% increase in the subscriber base.

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