Morning Report By Mansukh - Tuesday 28 June 2011

FIRST LIGHT HEADINGS

Rise in fuel price to reduces Oil PSUs debt-burden by Rs 21,000 crore FIIs stood as net buyers in equities on June 27, 2011: SEBI Shoppers Stop opens MAC door at New Delhi
Shyam Star Gems gets approval to sell its unit situated at Mumbai and Surat Punj Lloyd surges on bagging order worth Rs 826 crore Nuchem declares lock out at its chemical division
RPP Infra Projects in demand on launching new Sri Lankan venture

MARKET INSIGHT

On Monday 27 June 2011, The Indian markets got a good follow-on rally in the start of the F&O expiry week, bucking somber global cues. The start of the indices was in red and it seemed that markets will consolidate after a huge rally on Friday and some counters might witness profit booking too. But as the trade progressed the sentiments got boosted, mainly tracking the surge in the PSUt oil companies that surged after government decided go with their long pending demand of price hike. The government on Friday, after the markets hours hiked the price of diesel by Rs 3 per litre, kerosene by Rs 2 per litre and domestic liquid petroleum gas (LPG) by Rs 50 per cylinder. Simultaneously, the government removed the 5 per cent Customs duty on crude oil, brought down the import duty on petrol and diesel from 7.5 per cent to 2.5 per cent and reduced the excise duty on diesel by Rs 2.6 to Rs 2 per litre. The oil companies were in jubilant mood as from the global front too the news was supportive, after the sharp plunge the NYMEX crude continued to trade near a $90 a barrel mark and Brent crude remained below $104 mark. After the early morning recovery markets never looked back, rather with positive start of the European markets, the domestic markets sentiments got boosted and they surged to touch the high points of the day, however some profit booking took the indices off the highs but still they managed to snap the session with considerable gains. Meanwhile the rally in the domestic markets was not limited to the oil sector only but it was a broad based rally with broader indices too fully participating in it.

The BSE Sensex gained 180.60 points or 0.99% and settled at 18,421.28. The index touched a high and a low of 18,494.11 and 18,132.70 respectively. 23 stocks advanced against 7 declining ones on the index . The BSE Mid-cap index gained 0.81% while Small-cap index gained 0.78%. On the BSE Sectoral front, PSU up 1.95%, Capital Goods up 1.77%, Bankex up 1.67%, Auto up 1.51% and Oil & Gas up 1.33% were the top gainers. On the flip side, Realty down 0.68%, Consumer Durables down by 0.54% and FMCG down 0.45% were the only losers.

All the Asian equity indices barring Shanghai Composite finished the day’s at 19.99 from its previous close of 19.32 on Friday. The S&P CNX Nifty gained 59.00 points or 1.08% to settle at 5,530.25. The index touched high and low of 5,552.65 and 5,434.25 respectively. 39 stocks advanced against 11 declining ones on the index. (Provisional)

All the Asian equity indices barring Shanghai Composite finished the day’s trade in the positive terrain on Monday amid fears of a spreading European debt crisis after a ratings agency placed Italian banks on a review for a possible downgrade. Investors in the region remained spooked by the pessimism in Europe where Moody’s said it had put the ratings of 16 Italian banks on review for possible downgrade and had changed the outlook to negative from stable for a further 13 banks.

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Morning Report By Mansukh - Monday 27 June 2011

FIRST LIGHT HEADINGS

Larsen & Toubro proposes Rs 85,000 crore investments in Orrisa
Forex reserves increased $59 million to $310.562 billion Coromandel buys 9% stake in Sabero Organics SAIL reports 27% fall in its FY11 net profit CARE assigns ‘CARE AAA’ rating to Lower Tier II bonds of Axis Bank CRISIL assigns 3/5 fundamenal grade to Confidence Petroleum FIIs net buyers of Rs 4869.66 crore in futures and options segments on June 24

MARKET INSIGHT

On Friday 24 June 2011, The domestic equity markets witnessed a remarkable day of trade on Friday to snap the week with gain of around 2% and on a very optimistic note. It was a one way rally for the markets triggered by a sharp plunge in the international crude prices and supported by expectation of some policy decision in the scheduled EGoM meet on fuel later in the day. Earlier in the beginning Indian equity indices extended their rally mood with a positive start taking cues from the good going in the regional peers, though the US markets despite some late hour recovery could not manage an all green close overnight. But the domestic markets looked firm from the beginning and the blue-chips that have come forward in pullback, once again showed their might today and out of the 30 constituent Sensex barring RIL and Rel Infra all other 28 closed with gains of 2-6%. The slow pace of gains gathered momentum from noon trade after which there was no looking back and the benchmark indices surged past their crucial levels of 18200 (Sensex) and 5450 (Nifty) ahead of the F&O June series expiry next week. At no point of time profit booking was seen in the trade today and more of short covering long positions were built in many counters, giving a sense that the markets are bullish for the coming days. The entire rate sensitive’s block made a fabulous pullback and surged by around 3 percent, with many of the beaten down realty and banking counters showing smart recovery.

The BSE Sensex gained 502.08 points or 2.83% and settled at 18,229.57. The index touched a high and a low of 18,268.95 and 17,804.94 respectively. 28 stocks advanced against 2 declining ones on the index . The BSE Mid-cap index gained 2.23% while Small-cap index gained 1.73%. (On the BSE Sectoral front, IT up 3.59%, Realty up 3.54%, Capital Goods up 3.36%, Metal up 3.31% and Bankex up 3.30% were the top gainers. On the flip side, Consumer Durables down by 2.39% was the only loser.

India VIX, a gauge for market’s short term expectation of volatility lost 0.92% at 19.32 from its previous close of 19.50 on Thursday. The S&P CNX Nifty gained 150.00 points or 2.82% to settle at 5,470.00. The index touched high and low of 5,477.85 and 5,343.40 respectively. 48 stocks advanced against 2 declining ones on the index. (Provisional)

All the Asian equity indices barring Taiwan Weighted finished the day’s trade in the positive terrain on the last trading day of the week led by Chinese Shanghai which soared more than two percent, its biggest daily rise in more than four months on hopes that inflation will ease soon while, a slew of bullish forecasts of the market’s outlook for the second half of this year too strengthened the investors sentiments. Moreover, Hang Seng and Seoul Composite remained the other top gainer followed Shanghai and gained over one and a half percent.

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Morning Report By Mansukh - Friday 24 June 2011

FIRST LIGHT HEADINGS

Ortin Laboratories gets nod to acquire 100% stake in Ortin Biotech
Jubilant Life Sciences’ arm Jubilant Biosys gets milestone payment from AstraZeneca Persistent Systems launches processional services for Cisco Quad CARE assigns ‘CARE AA’ rating to perpetual bond issue of Tata Steel UBI likely to increase ATM outlets to 5000 L&T secures orders worth Rs 4100 crore L&T bags order worth Rs 1,366 crore from GCC countries

MARKET INSIGHT

On Thursday 23 June 2011, Indian markets were finally able to end the slew of weak closing and surged on Thursday, bucking global trends and overlooking the rise in the weekly food inflation. Earlier the flat start of the markets indicated that the pause of the indices may get extended and in the very early morning benchmarks losing ground on weak global cues firmed the speculation, as the US markets closed lower overnight while most of the Asian markets were trading weak. But afterwards the market mood recovered with bluechips taking the lead. Marketmen took the opportunity for value picking and the beaten down sectors started moving up, soon the recovery turned broad based and all the fundamentally strong share witnessed buying with Reliance Industries, that declined in previous session surged after announcing a gas discovery in KG-D9 basin. The company has made discovery in the very first well drilled on its D9 block. Reliance holds the majority 90% interest and is the operator of the deep-sea block KG-DWN-2001/1 (D9) while London-listed Hardy holds 10% interest in the block. The markets momentum gained pace in the afternoon session despite the rise in inflation. The food inflation once again surged after showing sign of moderation in last week, food inflation, as measured by the Wholesale Price Index (WPI), for week ended June 11 surged to 9.13% from 8.96% for the previous week, the impact of rise in inflation was marginally visible on the rate sensitive realty sector that was one of the laggard of the day.

The BSE Sensex gained 188.21 points or 1.07% and settled at 17,738.84. The index touched a high and a low of 17,754.55 and 17,482.21 respectively. 23 stocks advanced against 7 declining ones on the index . The BSE Mid-cap index lost 0.04% while Small-cap index shed 0.25%. On the BSE Sectoral front, Consumer Durables up 4.09%, FMCG up 2.27%, Oil & Gas up 1.94%, IT up 1.17% and Teck up 1.00% were the top gainers. On the flip side, Health Care down 0.55%, Realty down 0.32% and Metal down by 0.08% were the only losers.

The S&P CNX Nifty gained 45.50 points or 0.86% to settle at 5,323.80. The index touched high and low of 5,330.60 and 5,252.25 respectively. 30 stocks advanced against 20 declining ones on the index. The top gainers on the Nifty were ITC up by 3.46%, RCom up 3.36%, RIL up 2.95%, Reliance Capital up 2.64% and HUL up 2.33%. (Provisional)

Most of the Asian equity indices finished the day’s trade in the negative terrain on Thursday as investors booked their profit after a two-day regional rally while sentiment was also dampened by the Federal Reserve’s decision to cut its 2011 US growth forecast. Taiwan Weighted, Hang Seng and Seoul Composite remained the major loser among the Asian peers, however, Chinese Shanghai ended the day’s trade with a gain of about one and a half percent, led by cement and property shares as investors bought into sectors expected to benefit from Beijing’s social housing initiative.

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MARKET OUTLOOK FOR 23 June – CAUTIOUSLY OPTIMISTIC

FIRST LIGHT HEADINGS

Shriram Transport likely to open 40 vehicle selling points
Nucleus Software accredited with the Highest Lending Deals in 2010 by Forrester Research Persistent Systems launches processional services for Cisco Quad CARE assigns ‘CARE AA’ rating to perpetual bond issue of Tata Steel UBI likely to increase ATM outlets to 5000 L&T secures orders worth Rs 4100 crore

MARKET INSIGHT

On Wednesday 22 June 2011, It was not a different day for the Indian markets than the previous one as after a positive start the benchmark indices lost their way to snap the session on a flat not, snapping the session almost to their last close. Lack of active participation of the heavyweights and supportive cues from the domestic front led the markets lower. Earlier the start of the indices was good tracking the overnight gains in the US markets and the surge in Asian peers but the confidence of the local investors waned with the reports expecting lower than normal monsoon for the third consecutive year. Weather office last evening said that monsoon this year is expected to be just below an earlier normal forecast, and that this year’s monsoon rains would be 95 percent of the long-term average overall, down from its April forecast of 98 percent and just short of the 96-104 percent range which counts as normal monsoon. The country heavily relies on the June to September monsoon for agricultural output, even the government is having large hopes of a good monsoon which will result in better produce and help in governments’ effort to bring down the food inflation in the country, currently hovering around 9%. The other factor that weighed on the markets was the decline in the heavyweights that have participated in last session’s pullback. Reliance Industries after a day of gains returned to its declining trend, losing about a quarter percent. The telecom stocks too were pounded today and heavyweights like Bharti and Idea lost in a range of 2-4%. The broader markets were unable to get any respite from the relentless selling and suffered cut of around a percent for the day.

The BSE Sensex lost 8.72 points or 0.05% and settled at 17,551.58. The index touched a high and a low of 17,678.86 and 17,492.19 respectively. 13 stocks advanced against 17 declining ones on the index (Provisional). The BSE Mid-cap index lost 0.77% while Small-cap index shed 0.80%. On the BSE Sectoral front, Oil & Gas up 0.27%, Capital Goods up 0.25%, Bankex up 0.10%, Power up 0.10% and Auto up 0.06% were the top gainers. On the flip side, Consumer Durables down 3.67%, Realty down 2.28%, FMCG down 0.82%, Teck down 0.47% and Metal down by 0.24% were the losers..

India VIX, a gauge for market’s short term expectation of volatility los at 20.89 from its previous close of 21.31 on Tuesday. The S&P CNX Nifty gained 2.35 points or 0.04% to settle at 5,278.20. The index touched high and low of 5,310.50 and 5,262.50 respectively. 27 stocks advanced against 23 declining ones on the index. (Provisional)

Most of the Asian equity indices finished the day’s trade in the positive terrain on Wednesday after Greece’s Prime Minister George Papandreou had survived a crucial confidence vote in Parliament supported regional sentiment. Moreover Japanese Nikkei remained the biggest gainer among all the Asian peers; rose about 1.80 percent in the trade as investors are expecting a solution to Greece’s debt problem.

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Morning Note By Mansukh - Wednesday 22 June 2011

FIRST LIGHT HEADINGS

ING Vysya Bank increases lending rate by 25 basis points Oil Ministry once again under storm over KG-D6 block Govt likely to allow FDI in multi-brand retail; initiate with six metro cities Govt likely to give go-ahead to 25 new textile parks across the country in 2011 Direct tax collection increases by 23% to Rs 101,600 crore in first quarter CARE reaffirms the rating assigned to the bank facilities of Nila Infrastructure L&T bags order worth Rs 1,366 crore from GCC countries

MARKET INSIGHT

On Tuesday 21 June 2011, What started as a smart day of recovery, turned out to be an ordinary day of trade for the Indian markets, with markets losing most of their gains by the end of the session, managing just a positive close. In the beginning it seemed that the domestic markets in sync with the other global markets will be able to present a good show after suffering a sharp selloff in previous session, as US markets closed with modest gains overnight, while the other Asian markets made a good bounce back, and on the domestic front government tried to calm down the storm that brought the markets considerably lower, by clarifying that India ‘cannot impose arbitrarily’ capital gains tax on investment routed through Mauritius. However, the two nations are likely to hold discussions on revision of the double tax avoidance treaty, which has been used for routing third country investment into India for availing of tax exemptions. But despite all these, profit booking appeared in the very first hour, taking the markets momentarily below the neutral line and it seemed that choppiness will persist for some more time. However, it was the strength in the heavyweights like Reliance Industries, Bharti Airtel, TCS and HDFC etc that led the markets back on the recovery path. All the stocks and sectors that were butchered in the last sessions’ massacre showed recovery in the early trading, helping the markets for a pull back.

The BSE Sensex gained 54.75 points or 0.31% and settled at 17,561.38 The index touched a high and a low of 17,714.88 and 17,504.27 respectively. 14 stocks advanced against 16 declining ones on the index. The BSE Mid-cap index lost 0.21% while Small-cap index shed 0.55%. On the BSE Sectoral front, IT up 1.08%, Oil & Gas up 0.87%, Teck up 0.84%, Health Care up 0.75% and Consumer Durables up 0.52% were the top gainers. On the flip side, Realty down 1.96%, Capital Goods down 0.60%, PSU down 0.56%, FMCG down 0.52% and Power down by 0.44% were the losers.

India VIX, a gauge for market’s short term expectation of volatility los 3.92% at 21.31 from its previous close of 22.18 on Monday. The S&P CNX Nifty gained 16.85 points or 0.32% to settle at 5,274.75. The index touched high and low of 5,322.45 and 5,257.00 respectively. 24 stocks advanced against 26 declining ones on the index. (Provisional)

All the Asian equity indices finished the day’s trade in the positive terrain on Tuesday concerns about a potential Greek debt default eased. The sentiment in the region got a fillip after Luxembourg’s Jean-Claude Juncker, who leads the group of euro zone finance ministers, said that a solution to the Greek’s fiscal crisis will be found. Japanese Nikkei rose more than a percent in the trade led by auto stocks climbing on bullish comments from a brokerage but volume was thin and most players were on the sidelines ahead of a Federal Reserve policy meeting. .

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Morning Note By Mansukh - Monday 20 June 2011

FIRST LIGHT HEADINGS

 

SAIL invite bids to raise upto Rs 2,250 crore Omkar Speciality Chemicals to enter into MoU with Shree Sai Bhakti Enterprises Forex reserves decreased $2401 million to $310.503 billion Indian economy to grow by 7.8% in 2012: IMF Cadila Healthcare’s US arm to acquire assets of Nesher Pharmaceuticals Essel Propack inaugurates new facility in Goa AXIS Bank gets approval for raising funds

MARKET INSIGHT

On friday17 June 2011, Local Bourses were in control of the bears for the third straight session as jittery investors continued to book profits on concern that the Reserve Bank of India’s anti-inflationary stand would impact growth. A worsening global economic landscape was another factor that kept the markets on the edge, while continuing to dent investors’ confidence. Also, weaknesses in frontline stocks led to the subdued sentiments on the Dalal Street on Friday. Market bellwether Reliance Industries declined over 2%, followed by Infosys Technologies which lost over 1%, while TCS declined over 3%. Decline in oil prices too was unable to give any comfort to the traders, oil prices in New York tumbling to more than a month were on track for its worst weekly decline amid mounting speculation that Greece won’t be able to secure another bailout and will eventually default on its debt. On the global front, US stocks rose in volatile trade on Thursday, on the back of technical factors and options expirations; however the raging uncertainty about Greece prevented investors from committing money to the market. Moreover, the Asian stock markets ended mostly lower on Friday, as sentiment remained fragile with Europe’s debt troubles and uncertainty on the progress of the US economic recovery. Meanwhile, the European markets slid to a three-month closing low on Thursday, with investors’ risk appetite waning further as political discord and uncertainty over a second Greek bailout package hurt market sentiment.

The BSE Sensex lost 133.32 points or 0.74% and settled at 17,852.56. The index touched a high and a low of 18,064.76 and 17,844.09 respectively. 11 stocks advanced against 18 declining ones while 1 stock remain unchanged on the index. The BSE Mid-cap index lost 1.00% while Small-cap index shed 1.03%. On the BSE Sectoral front, Consumer Durables up 0.77% and Power up 0.09% were the only gainers. On the flip side, IT down 2.02%, Oil & Gas down 1.66%, Teck down 1.39%, Auto down 1.25% and Health Care down by 1.12% were the losers.

India VIX, a gauge for market’s short term expectation of volatility gained 3.10% at 20.27 from its previous close of 19.66 on Thursday. The S&P CNX Nifty lost 34.05 points or 0.63% to settle at 5,362.70. The index touched a high and low of 5,421.15 and 5,355.85 respectively. 16 stocks advanced against 33 declining ones and 1 stock remain unchanged on the index. (Provisional)

The gloom continued in the Asian region; barring KLSE Composite all other markets closed in red with Hang Seng suffering the most. Europe’s debt troubles and worries on the progress of the US economic recovery continued affecting the markets for yet another day. Some recovery was seen in the region in early trade on news that Greece is likely to get funding through the summer as the International Monetary Fund said it would support Greece.

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MARKET OUTLOOK FOR 16 June – CAUTIOUSLY OPTIMISTIC

FIRST LIGHT HEADINGS

Telangana Congress leaders to pressurize govt for last time
Power Grid to bid for Rs 1,300 crore contract Coal Minister invites Czech firms to invest in Indian coal sector Lanco Infratech drops bid plan for assets of Australia’s Premier Coal MTNL receives refund order amounting Rs 177.76 crore Ramco Systems unveils Ondemand- Analytics and Gateway products on the cloud Mundra Port likely to increase coal imports

MARKET INSIGHT

On Wednesday 15 June 2011, The previous day consolidation mood of the Indian markets turned somber on Wednesday and the benchmarks lost considerable ground slipping way below their important psychological levels of 18300 (Sensex) and 5500 (Nifty). Though the start of the local markets was not that bad but the trader sentiments looked cautious from the very beginning after the unexpectedly high inflation numbers for the month of May and skepticism for continuation of the hawkish stand by the Reserve Bank of India. Initially it seemed that street has factored in the possible 25 basis points hike in policy rates by the apex bank and there might not be much jittery, but as the trade proceeded the rate sensitive’s started showing worries with banking stocks wilting much faster than other likely to be affected gauges. Banking majors like SBI and ICICI Bank dragged the index lower by declining around 2 percent each for the day. In the initial hours of trade the markets with slight cut remained range bound, extending the consolidation mood of last session, but slowly confidence started waning and profit booking intensified across the board and traders fearing further decline opted to take profits off the table ahead of the Reserve Bank of India’s policy meet. The global cues also remained feeble and some of the Asian markets closed in red while the weak start of the European markets too weighed down the domestic sentiments.

The BSE Sensex lost 184.30 points or 1.01% and settled at 18,124.36.The index touched a high and a low of 18,308.69 and 18,111.21 respectively. 5 stocks advanced against 25 declining ones on the index The market breadth on the BSE ended negative; advances and declining stocks were in a ratio of 1180:1654 while 107 scrips remained unchanged. The BSE Mid-cap index lost 0.63% while Small-cap index shed 0.64%. On the BSE Sectoral front, FMCG up 0.12% was the only gainer.On the flip side, Bankex down 1.61%, Realty down 1.58%, Consumer Durables down 1.26%, IT down 1.21% and Power down by 1.17% were the top losers.

India VIX, a gauge for market’s short term expectation of volatility gained 3.40% at 19.14 from its previous close of 18.51 on Tuesday. The S&P CNX Nifty lost 53.40 points or 0.97% to settle at 5,447.10. The index touched high and low of 5,499.35 and 5,438.95 respectively. 11 stocks advanced against 38 declining ones while 1 stock remained unchanged on the index. (Provisional)

Most of the Asian equity indices finished the day’s trade in the positive terrain on Wednesday. Japanese Nikkei edged higher in the trade on report showed US retail sales were better than forecast, boosting the outlook for exporters while Seoul shares ended with a gain of about half a percent after volatile trade on Wednesday, supported by modest foreign investor buying and rallies in airlines and shipping firms.

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We might see some sort of consolidation- By Mansukh 10 June 2011

We might see some sort of consolidation

FIRST LIGHT HEADINGS

Gujarat NRE Coke launches $50 million worth convertible bonds issue FIIs stood as net buyers in equities on June 9, 2011: SEBI Shopper’s Stop to up the prices of private labels by 10-12% from July 1, 2011 MMTC likely to invest Rs 240 crore in wind energy sector India’s domestic car sales growth rises at slowest rate in two years in May Tata Metaliks terminates agreement with Global Coke IndusInd Bank allots 6,600 equity shares under ESOS

MARKET INSIGHT

On Thursday 09 June 2011, Local equity markets dropped further on Thursday in sync with other Asian equities, as apprehensions over global economic recovery led to a reduction in risk appetite among investor's for the second straight day. Further, bounce back in weekly food inflation data to a nine week high level too led the investor's trim their position anticipating that the rate hike would be in offing in the RBI's next monetary policy review on June 16,2011. As per the official data, India's food inflation rose to a two month high at 9.01% for week ended May 28 as compared to 8.06% for week ended May 21, 2011. The trade at Dalal Street for the third straight session was range struck as the bourses gyrated around in the range of 30-40 points. Meanwhile, the broader indices too showcased signs of fatigue as the midcap Index succumbing to the selling pressure extended its losing streak for the second straight session, however, the smallcap index managed to ended in green. Sluggish performance of the global equities has mainly impacted the Indian equity markets as on the global front, US markets ended down for the sixth straight session after Federal Reserve chairman Ben Bernanke confirmed a gloomy picture of economic growth. Meanwhile, Asian shares too ended in red with steep losses of Chinese banks weighing on the Hong Kong and Shanghai markets. The European markets too turned negative on Thursday as mining stocks pared early gains, tracking a decline in metals prices, while banks fell ahead of a rate decision from the European Central Bank.

The BSE Sensex lost 8.79 points or 0.05% and settled at 18,385.50. The index touched a high and a low of 18,449.64 and 18,327.01 respectively. 8 stocks advanced against 21 declining ones while 1 stock remain unchanged on the index. The BSE Mid-cap index lost 0.12% while Small-cap index was up by 0.10% respectively. On the BSE Sectoral front, Consumer Durables advanced 1.71%, Capital Goods up 1.03%, Power up 0.23%, Realty up 0.06% and FMCG up 0.03% were the only gainers.On the flip side, Auto down 0.62%, Health Care down 0.35%, IT down 0.18%, Bankex slipped by 0.17% and Teck down 0.16% were the losers.

India VIX, a gauge for market's short term expectation of volatility remained unchanged at 18.58 from its previous close of 18.58 on Wednesday. The S&P CNX Nifty lost 5.85 points or 0.11% to settle at 5,521.00. The index touched high and low of 5,540.10 and 5,502.05, respectively.16 stocks advanced against 34 declining ones on the index. (Provisional)

All the Asian equity indices barring Nikkei ended the day's trade in the negative terrain on Thursday amid persistent worries about the US and global economic outlook. Chinese index Shanghai Composite remained the major loser among the Asian peers losing over 0.70 percent, with financials and property shares weak, as sentiment was hurt on worries over further monetary policy tightening while, the shortage of liquidity also weighed on the sentiments in the region. Moreover, Jakarta Composite and Seoul Composite too ended the day's trade with a cut of over half a percent in the trade.

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Next level of support could be around 5350-5330 - By Mansukh 1 June 2011

 

Next level of support could be around 5350-5330.

FIRST LIGHT HEADINGS

LIC plans to open a subsidiary in Singapore
FIIs stood as net buyers in equities on May 30, 2011: SEBI
Action Construction Equipment board recommends dividend
Indian Oil Corporation board recommends dividend
Indian apparel exports touch $1 billion mark in April; surge by 13% yoy Sharon Bio-Medicine gets Certification of Substances from European Health Authorities

MARKET INSIGHT

On Monday 30 May 2011,Indian equity markets bid adieu the month of May on a highly enthusiastic note as the investors tailing positive global cues, mainly concentrated on value buying. The benchmarks stroke a two week high though slower-than-expected GDP growth in Q4 March 2011 as the lower GDP growth in March eased the fears of a hawkish policy stance by the Reserve Bank at its policy meet scheduled next month. India's economy grew 8.5 per cent in fiscal year 2010/11, slightly below the government's estimates of 8.6 per cent. For the quarter ended March 20011, the GDP grew at lower-than-expected 7.8 per cent against 9.4 per cent in the same period a year ago and as compared to 8.3 percent in the previous month. Meanwhile, Asian Indices ended mostly higher Tuesday, with the Nikkei lifted by an upbeat outlook from Japan's manufacturers and a weaker yen, while regional solar plays gained after Germany said it would phase out nuclear power by 2022.

The BSE Sensex surged 276.17 points or 1.51% and settled at 18,508.23. The index touched a high and a low of 18,380.17 and 18,199.52 respectively. 13 stocks advanced against 17 declining ones on the index. The BSE Mid-cap gained 0.85% while Small-cap index was up by 0.55% respectively. On the BSE Sectoral front, Health Care advanced 2.27%, Consumer Durables up 2.06%, Realty up 1.62%, PSU up 0.46% and Bankex up 0.42% were the major gainers. On the flip side Auto down 1.48%, Oil & Gas down 0.70%, Capital Goods down 0.35%, Metal down 0.25% and FMCG down 0.24% were the top losers.

India VIX, a gauge for market's short term expectation of volatility lost 5.87% at 16.82 from its previous close of 17.87 on Monday. The S&P CNX Nifty gained 88.05 points or 1.61% to settle at 5,561.15. The index touched high and low of 5,571.60 and 5,489.70, respectively. 47 stocks advanced against 2 declining ones and 1 remained unchanged on the index. (Provisional)

All the Asian equity indices ended the day's trade in the positive terrain on Tuesday led by Japanese shares which surged about two percent today on report that country's factory output rebounded from a record drop following the devastating earthquake and tsunami. Seoul Composite remained the major gainer among the Asian peers ended with a gain of over 2.3 percent on Tuesday as foreign investors turned net buyers, with rallies in automakers and shipyards such as Kia Motors and Hyundai Heavy Industries lending support. Moreover, Taiwan stocks too rose about two percent tracking gains in regional bourses, with tech firms like HTC higher amid optimism over new models launched at the Computex computer show in Taipei this week.

According to the data released by Central Statistics Office (CSO), India's GDP at factor cost at constant (2004-05) prices for the full fiscal year ended March 31 showed a growth rate of 8.5% over the 8% GDP growth for the year 2009-10. While the quarterly estimates of GDP for the fourth quarter showed a growth rate of 7.8% against 9.4% year-on-year and 8.3% quarter on quarter.

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Next level of support could be around 5430 Report By Mansukh 16th May 2011

FIRST LIGHT HEADINGS

Supreme Infrastructure to invest Rs 18 crore in equity capital of Rudranee Infra

Sutlej Textiles and Industries board recommends dividends (RS 5/SH)

Bell Ceramics gets approval for scheme of arrangement of amalgamation

Pantaloon Retail reports 43% rise in its Q3 net profit

Forex reserves decreases $3976 million to $309.535 billion

Vedant Hotels gets approval to acquire controlling stake in Dhanada Securities Trading

MARKET INSIGHT

On Friday 13 May 2011,Overcoming negative global cues and lull witnessed in the previous session, the local equity markets snapped the week victorious in line with the success of the ruling Congress-led coalition in West Bengal, Kerala and Assam. A good showing for Congress may restore some lost political authority for Prime Minister Manmohan Singh after the country's worst ever corruption scandal paralyzed the government for months and hit foreign investment into Asia's third-largest economy. Back to the Dalal Street, the Indian markets gained momentum as traders bought stock available at lower levels after a profit booking session. Buying was witnessed across the sector as all the 13 sectoral indices were trading buoyant. However, notable gains were posted from the stock belonging to the Fast Moving Consumer Goods, healthcare and Metal sector, while the rebound of the financials also further cushioned the sentiment. Besides, the rally of the large caps, participation of the Smallcap in the session upmove also led to the positive ending for the week. On the Sectoral front, besides, the surge of the stocks belonging to the defensive sector--Fast Moving Consumer Goods, Metal Stocks rallied as base metal prices edged up in international trade. SAIL, Hindalco and Tata Steel firmed between 1.3 percent and 2.8 percent. Meanwhile, bargain buying of the banking stocks led to the rebound of the Bankex on the BSE sectoral space. However, Axis Bank, IDBI Bank, ICICI Bank were up between 1.5-3.5% each

The BSE Sensex surged 247.81 points or 1.35% and settled at 18,583.60. The index touched a high and a low of 18,724.54 and 18,280.70 respectively. 29 stocks advanced against lone declining one on the index (Provisional) The BSE Mid-cap was up 0.94% and Small-cap indices were up by 0.42% respectively. (Provisional) All the setoral indices on BSE ended in green, but the top gainers among them were FMCG up 2.53%, Health Care up 2.15%, Metal up 1.74%, Capital Goods up 1.74% and Auto up 1.61%

India VIX, a gauge for market's short term expectation of volatility lost 2.82% at 20.63 from its previous close of 21.23 on Thursday. The S&P CNX Nifty gained 77.65 points or 1.42% to settle at 5,563.80. The index touched high and low of 5,605.00 and 5,472.15, respectively. 47 stocks advanced against 3 declining ones on the index. (Provisional)

Most of the Asian equity indices finished higher in the trade on last trading day of the week led by Chinese and Hong Kong's shares which rose about one percent in the trade amid optimism that China will limit interest-rate rises after yesterday ordering banks to set aside more reserves for a fifth time this year. Strength in financial and property shares in China after analysts' view that the latest rise in bank reserve requirements had been priced into the market too aided the sentiments. However, Japanese Nikkei declined more than half a percent amid disappointing earnings following the nation's worst earthquake.

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We might see 5555-5545 in a short pan of time - Indian Equity Research Report By Mansukh 11-May-2011

FIRST LIGHT HEADINGS
FIIs stood as net buyers in equities on May 10, 2011: SEBI
Tata Consultancy Services wins outsourcing company of the year 2011 award
Glenmark Pharmaceuticals reports 65% rise in its FY11 net profit
CARE reaffirms the ratings assigned to the bank facilities of Mangalam Cement
Union Bank of India to come up with branches in Sydney, Belgium
NTPC’s Q4 net profit surges 38%
HDFC’s FY11 consolidated net profit registers growth of 40%

MARKET INSIGHT

On Tuesday 10 May 2011,Local bourses once again failed to hold the momentum gained in early trade as the investors cashed in the profits at the higher levels since they lacked the conviction in the positive momentum of the markets and anticipated it to be a “short term act”. The benchmarks faltered after showcasing superb performance in the early trade and went into consolidation mode approaching close to the bell. Though, the fall in the crude oil prices eased the sentiment as the Brent crude dropped more than $2 a barrel after the CME Group hiked trading margins for US crude futures by 25 percent following a sharp jump in the previous session. But it was the central bank chief's reiteration of anti-inflationary stance that kept the traders wary. The central bank governor Duvvuri Subbarao reiterated on the sidelines of a Bank for International Settlements meeting in Basel that “India will maintain its anti-inflationary stance even if that means sacrificing growth in the short term”, thereby indicating that the investors could expect the Reserve Bank of India to deliver another quarter-point hike at its next review on July 16, after announcing a larger-than-expected 50 basis points rate increase last week which also became the reason of decline for banking stocks. The bouts of weak spell also came from Oil & Gas Stocks, besides Bankex and Consumer Durable Stocks. However, Oil & Gas stocks after witnessing spurt in the morning session edged lower on the reports that the meeting of the Empowered Group of Ministers (EGoM) for decision on the raising diesel has been deferred without the new date being intimated..

The BSE Sensex lost 26.15 points or 0.14% and settled at 18,502.81. The index touched a high and a low of 18,689.37 and 18,429.06 respectively. 12 stocks advanced against 18 declining one's on the index (Provisional). The BSE Mid-cap index was down 0.01% and Small-cap index was up by 0.27% respectively. (Provisional) On the BSE Sectoral front, FMCG up 1.19%, Realty up 1.12%, Power up 0.50% and Metal up 0.01% were the top gainers. On the flip side Bankex down 0.67%, Consumer Durables down 0.62%, Capital Goods down 0.45%, Oil & Gas down 0.42% and IT down 0.31% were top losers.

India VIX, a gauge for market's short term expectation of volatility gained 1.11% at 21.74 from its previous close of 21.50 on Monday. The S&P CNX Nifty lost 11.55 points or 0.21% to settle at 5,539.55. The index touched high and low of 5,592.90 and 5,514.55, respectively. 22 stocks advanced against 28 declining ones on the index. (Provisional)

Most of the Asian equity indices finished the day's trade in the positive terrain on Tuesday on the back of a huge Chinese trade surplus, which surged to $11.4 billion in April and exports hit a record monthly high. Moreover, upbeat corporate earnings in Japan too boosted the sentiment in the region. Chinese benchmark index Shanghai Composite gained more than half a percent on expectations that domestic inflation may be easing in April after hitting a two-year high 5.4 percent in March. However, stock markets in South Korea and Hong Kong remained closed for the trade today on account of a public holiday..


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Buy on Dip’ strategy on any substantial correction...5th-May-2011

FIRST LIGHT HEADINGS

Hero Honda Motors posts a decline of 14% in its net profit of FY11
Ruttonsha International Rectifier awarded 'Export House' status
IRB Infra builds on bagging Ahmedabad Vadodara BOT project from NHAI
RPP Infra reports stellar Q4 numbers
Punjab National Bank reports 6% rise in its Q4 net profit
TTK Prestige reports 30% rise in its Q4 net profit
SPARC gets USFDA approval for DOCEFREZ

MARKET INSIGHT

On Wednesday 04 May 2011,It was a rangebound day of trade for the domestic markets after witnessing a sharp drubbing in the past session. The global cues were not very supportive as the US markets closed flat with a negative bias while the Asian markets made a weak start with some indices witnessing large cuts in early trades. The benchmarks after a soft start early in the day plunged to touch their low points of the day in the very first hour of trade and it seemed that the Reserve Bank's policy rate hike decision will keep haunting the markets for yet another day, but the fall in last session was so sharp that some recovery was expected, at least some sort of consolidation, hence the market recovered from the lows of the trade and remained range bound for most part of the day. The rate sensitive gauges, barring banking remained in somber mood throughout the day and the rate hike worries was clearly visible on them. Government along with RBI has been struggling to keep inflation under control and with the RBI's hawkish stance it is being speculated that central bank will go to a greater extent to tighten the monetary policy in the future. The one sectoral gauge that remained in limelight and helped the markets from slipping further was oil & gas, there were slew of reason for the sector to show upmove, while the Reserve Bank of India called for an immediate hike in petrol and diesel prices, even if it adds to inflationary pressure and moderates economic growth,

The market breadth on the BSE ended weak; advances and declining stocks were in a ratio of 1151:1641 while 135 scrips remained unchanged. The BSE Sensex declined by 74.07 points or 0.40% and settled at 18,460.62. The index touched a high and a low of 18,604.36 and 18,339.53 respectively. 12 stocks advanced against 18 declining ones on the index. The BSE Mid-cap and Small-cap indices were down by 0.43% and 0.56% respectively. (Provisional)

On the BSE Sectoral front, Oil & Gas up 1.35%, PSU up 0.78%, Consumer Durables up 0.57%, FMCG up 0.36% and Bankex up 0.13% were the only gainers. On the flip side IT down 1.28%, Teck down 1.27%, Metal down 1.18%, Auto down 1.02% and Health Care down 1.00% were the top losers.

India VIX, a gauge for market's short term expectation of volatility lost 1.85% at 21.18 from its previous close of 21.58 on Tuesday. The S&P CNX Nifty lost 27.95 points or 0.50% to settle at 5,537.30. The index touched high and low of 5,578.80 and 5,503.00, respectively. 20 stocks advanced against 30 declining ones on the index. (Provisional).

Most of the Asian equity indices finished the day's trade in the negative terrain on Wednesday on the back of fall in global commodities prices which weighed on energy and material sector stocks. Chinese benchmark index lost more than two percent as investors remained cautious on jitters that monetary policy tightening put in place since October will persist. Moreover, Seoul Composite declined about a percent on sharp falls in shipyards and technology issues, including Daewoo Shipbuilding & Marine Engineering and Samsung Electronics.

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Possibility of profit booking around 5945-60 couldn’t be rule out report by Mansukh 2nd-May-2011

FIRST LIGHT HEADINGS

LN Mittal may acquire indirect stake in Petron Engineering

Uflex’s net profit zooms 275% for Q4

State Bank of Mysore’s Q4 net profit jumps 33%

Rohit Ferro-Tech to increase its authorized share capital

Alok Industries postpone merger of Grabal Alok Impex with itself

Titan Industries reports 71.95% jump in its FY11 net profit

SAIL reports 27.71% fall in its Q4 net profit

MARKET INSIGHT

On Friday 29April 2011,Local Bourses prolonged their losses for the fifth straight session lacking support at higher levels, thereby snapping the week with loss of over 2%. Persistent selling pressure in view of sustained capital outflows by foreign institutional investors coupled with selling across the global equities led to the damage at Dalal Street. The 50 scrip index'Nifty --on National Stock Exchange plunged in trade thereby marking sluggish start for the new F&O expiry series on Friday as investors braced for a hawkish statement from the Reserve Bank when it releases its policy on Tuesday. Financials led the decline with the market expecting the Reserve Bank of India (RBI) to raise key short-term rates by at least 25 basis points to rein in high inflation. Weak economic data from US also clouded early deals at Dalal Street, as rising at a slower-than-expected pace, US real GDP grew 1.8 percent in the first quarter. Weather disruptions, higher food and energy prices and a sizeable decline in government outlays weighed on economic growth. Moreover, investigation into various corruption charges and political uncertainty also contributed to the day's decline.

The BSE Sensex declined by 142.75 points or 0.74% and settled at 19,149.27.The index touched a high and a low of 19,356.50 and 19,015.05 respectively. 10 stocks advanced against 20 declining one's on the index. The BSE Mid-cap and Small-cap indices were down by 0.97% and 1.61% respectively. On the BSE Sectoral front, FMCG up 1.19%, Health Care up 0.60% and Oil & Gas up 0.20% were the only gainers. On the flip side Capital Goods down 2.72%, Realty down 2.56%, Bankex down 1.76%, Metal down 1.17% and Consumer Durables down 1.15% were the top losers.

India VIX, a gauge for market's short term expectation of volatility lost 6.40% at 19.58 from its previous close of 20.92 on Thursday. The S&P CNX Nifty lost 34.50 points or 0.60% to settle at 5,750.95. The index touched high and low of 5,804.30 and 5,706.05, respectively. 24 stocks advanced against 26 declining ones on the index. (Provisional)

Most of the Asian equity indices finished the trade in the negative terrain on the last trading day of the week as weak economic data from the United States for the first quarter weighed down investors' sentiments. South Korean benchmark - Seoul Composite - finished the day's trade with a cut of more than 0.70 percent on Friday, triggered by profit-booking after hitting record highs earlier in the week and sharp falls in technology issues such as Samsung Electronics too dampened the sentiments in the region. While, Japanese markets remain shut on Friday and will reopen on Monday before closing again from Tuesday to Thursday.

On the global front, overnight, the Wall Street closed higher despite a dip in the first quarter GDP on the back of few good earnings reports.. Meanwhile, European shares drifted lower on Friday, snapping a six-session winning streak, with investors taking profits from eight-week highs on a day when volumes were low as the UK market was closed for a royal wedding holiday.

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Equity Research Morning Report By Mansukh 28th-April-2011

FIRST LIGHT HEADINGS

Seamec enters into contract with Swiber Offshore Construction, Singapore

Opto Circuits’ US arm secures a contract to deploy 650 Powerheart AEDs in Girona, Spain

Panama Petrochem gets Gujarat HC approval for scheme of amalgamation

Ingersoll-Rand (India) to set up additional manufacturing facility

Areva T&D India bags eBOP contract for Visa Power

Nomura pegs headline inflation in FY12 at 8.6%

MARKET INSIGHT

On Wednesday 27April 2011,local bourses started on positive note tracking higher closing of Wall street and gains in regional counterparts, however, Wipro reported its bleak outlook and as knee jerk reaction markets shaved off their gains to trade in red, however, after that mild setback the bourses did recover as selective buying by funds and retail investors in stocks having strong fundamentals and a firming trend on other Asian bourses supported the trading sentiment. But going further, in the after- noon session of trade, the benchmarks despite substantial resilience drifted lower as investors were reluctant to go for broad based buying and indulged only in stock specific activities amid dearth of positive triggers. Besides, IT and Bankex sector, metal and CG too witnessed profit booking, however, broader indices held their heads above the water. But as the selling pressure intensified equity markets started trading around their day's low, and despite some recovery failed to end in green..

The BSE Sensex lost 103.36 points or 0.53% and settled at 19,441.99. The index touched a high and a low of 19,633.63 and 19,412.79 respectively. 7 stocks advanced against 23 declining one's on the index. The BSE Mid-cap and Small-cap indices were down by 0.07% and 0.05% respectively. (Provisional) On the Bombay Stock Exchange  Sectoral front, Fast Moving Consumer Goods (FMCG) up 0.52%, Public Sector Undertaking (PSU) up 0.45%, Health Care (HC) up 0.13% and Consumer Durables(CD) up 0.04% were the top gainers. On the flip side Realty down 1.65%, Capital Goods down 1.21%, Metal down 0.97%, Power down 0.80% and Bankex down 0.68% were the top losers.

India VIX, a gauge for market's short term expectation of volatility lost 1.65% at 21.35 from its previous close of 21.71 on Tuesday. The S&P CNX Nifty lost 36.75 points or 0.63% to settle at 5,831.65. The index touched high and low of 5,892.35 and 5,819.95, respectively. 11 stocks advanced against 39 declining ones on the index. (Provisional)

Most of the Asian equity indices finished the day's trade in the positive terrain on Wednesday tracking the US markets which moved higher on good corporate earnings, boosting the outlook for Asian exporters. Japanese Nikkei surged about one and a half percent, shrugging off Standard & Poor's to revision of the outlook on its long-term rating on to negative from stable. Moreover, Taiwanese stocks closed with a gain of over a percent, lifted by surge in financial and semiconductor heavyweights as investors raised long positions in an increasingly optimistic environment.

Bankers feel that with current stance of monetary policy, credit growth in 2011-12 could work out to be anywhere between 18-22%, against 21.4% seen in fiscal 2010-11. However, if the central bank continues monetary tightening in 2011, resulting in say another 100 bps of cumulative hike in repo rate, credit growth could be around 75-150 bps lower than what it would otherwise be. This would peg loan growth estimates for FY12 in 17-21% range which is not bad for expected growth of around 8% in GDP over the FY12.

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Equity Research Morning Report By Mansukh April 15th-April-2011

FIRST LIGHT HEADINGS

ONGC to acquire 25% stake in the Satpayev exploration block in

Dr Reddy’s Lab launches over the counter Fexofenadine HCI tablets

HUL to venture into sub-segments with re-launches and brand extensions

Reliance Ind commences implementation of world-scale polyester projects in India

Titan Industries plans to open 100 premium watch store in next three-year

ACC aims market share to cross 11% this year

Corporation Bank expects 25% credit growth in 2011-12

MARKET INSIGHT

On Wednesday 13 April 2011,the market opened lower for the fourth consecutive session tracking weak global trend followed by lower closing in the US market. The markets across the globe emerged weak after Japan said that the crisis at its crippled nuclear plant was as serious as the 1986 Chernobyl accident. However, the domestic markets showcased smart rebound in the mid morning session as decline in the crude oil prices which eased macro economics concerns coupled with the surge of the Asian peers boosted the markets sentiment thereby letting the benchmark indices trade above its physiological level of 19300 (Sensex) and 5800 (Nifty) level respectively. The local equity markets after this never looked back and progressed for the day left over with the sustained momentum of the key heavyweights such as those of Reliance Industries and Infosys and HDFC. It was the stocks from Auto, Capital Goods and Bankex which drove the market higher. However, the markets approaching the last hour of trade drove to its intra day's high and ended close to it as buying in blue chip stocks gathered greater momentum after the international crude oil prices pared all the intraday gains and extended their weak run after trading at elevated levels in the recent past.

 The BSE Sensex zoomed 434.32 points or 2.25% and settled at 19,696.86. The index touched a high and a low of 19,737.33 and 19,101.63 respectively. 28 stocks advanced against 2 declining one's on the index. The BSE Mid-cap and Small-cap indices garnered a gain of 1.40% and 1.30%, respectively. On the Bombay Stock Exchange sectoral front Capital Goods index was up 2.73%, Auto was up 2.54%, Bankex was up 2.32%, FMCG up 2.24% and IT was up 2.15%, while there were no laggards in the BSE sectoral space. (Provisional)

India VIX, a gauge for market's short term expectation of volatility declined 3.90% at 20.41 from its previous close of 21.24 on Monday.The S&P CNX Nifty accelerated 125.80 points or 2.17% and settled at 5,911.50. The index touched high and low of 5,923.60 and 5,735.55, respectively.46 stocks advanced against 4 declining one's on the index. (Provisional)

 All the Asian equity indices finished the day's trade in the positive terrain on Wednesday led by Japanese Nikkei which rose about one percent as country's carmakers climbed after Nomura Holdings Inc. said they were 'oversold' and oil prices witnessed some ease. Moreover Chinese Shanghai closed with a gain of about on percent as gains in financials and real estate plays outweighed losses in resources firms. Other indices like Seoul Composite, Straits Times and KLSE Composite too witnessed good gain on Wednesday.

 Meanwhile, India and European Union (EU) have made considerable progress in narrowing down the remaining differences in some of the crucial areas of ongoing negotiations for the ambitious trade treaty. The two sides have been engaged in negotiations for a free trade area (FTA) treaty since last four years and are likely to reach an agreement soon.

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Equity Research Morning Report By Mansukh 13-Apr-2011

MARKET INSIGHT
On Monday 11 April 2011 Indian equity indices started the new week on a depressing note after plunging around a percentage point as leads remained weak not only locally but globally as well. Investors resorted to broad based profit booking following the disappointing February IIP numbers which grew at a tepid pace of 3.6%. The lower than expected numbers sparked apprehensions over the capital goods sector which failed to perform for third consecutive month. While the marginal wilt in international crude oil prices which spiraled at uncomfortable levels too failed to enthuse the local mood as prospect of long-term supply cuts in crude oil undermined sentiments. Marketmen feared that rising oil prices would lead to heightened inflationary pressure which in turn will compel the RBI to take stern policy actions in its annual monetary policy review meet next month. Meanwhile reports of another strong 7.1 magnitude earthquake rattling Japan's northeast coast and a fresh tsunami alert in the late hours of the session too weighed on investor mood. Cautious investors also speculated that earnings performances by heavyweight companies in fourth quarter could be in-line with expectations and may not provide any further direction to the markets.

BSE Sensex plunged by 188.91 points or 0.97% to settle at 19,262.54 while the S&P CNX Nifty lost 56.30 points or 0.96% to end at 5,785.70. The broader indices too failed to show any kind of resilience and succumbed to the selling pressure. The BSE's Midcap Index went home with losses of 0.70% while the Smallcap Index shed 0.71%. On the sectoral front, the high beta Realty pocket once again languished at the bottom of the table after deposing 2.52% and Auto counter too witnessed hefty bouts of profit booking as it sank 2.15%. On the other hand, BSE's Healthcare & FMCG sectors ended with marginal gains of 0.05% & 0.02% respectively.

On the global front, majority of Asian equity indices finished the day's trade in the negative terrain with Malaysian benchmark KLSE Composite being the top laggard in the space after declining around a percent. The European markets were trading mixed. France's CAC 40 slipped by 0.43%, Germany's DAX was gained by 0.03% and Britain's FTSE 100 surges by 0.17%. On the other hand, the screen trading for US index futures indicated that the Dow could open on a positive note.

Industrial production in India continues to remain week as the high base effect from last year and rising interest rates weighs on growth. According to the data released by the central statistical office (CSO) growth in the IIP came down to 3.6% in February 2010 compared with 3.9% (revised) in the previous month. There was a slowdown across the board if one looks at year-on-year comparisons. Manufacturing sector which has the highest weight in IIP expanded by just 3.5% compared with 16.1% growth seen in the same month a year ago. Mining was another poor performer expanding at just 0.6% as against 11% growth a year ago. Electricity was the only sector that performed well with growth of 6.7% compared with 7.3% growth in February 2010.

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Equity Research And Analysis On Indian Stock Market Weekly Market Outlook By Mansukh 19th-March-2011

SNAPSHOT

The markets finished the last trading day of the week on a disappointing note after the RBI hiked its key policy rates a day before. Sentiments remained subdued as investors feared that more rate hikes are on cards as RBI battles spiraling inflationary pressures which threatens to derail the robust growth of Indian economy. February inflation quickened to annual 8.31% versus 8.23% in January, thereafter RBI's eighth hike in benchmark interest rates since March 2010 by 25 basis points came to the fore followed by the hike in forecast of inflation for the current fiscal year to around 8% from its previous estimate of 7% as RBI expected that economic growth will be impacted from surging global commodity prices, especially crude oil prices. Meanwhile, marginal decline in weekly food inflation numbers to a three-and-a-halfmonth low of 9.42% for the week ended March 5 failed to enthuse the investor sentiment. The gloomy reports from the political front too did no good to the local sentiments as the opposition demanded resignation of Indian Prime Minister following a wikileaks cable showing bribes had been given by the ruling UPA government members for votes during a no-confidence motion after the Indo-US nuclear treaty. The benchmarks eventually settled with losses of over one and half a percent after infringing crucial support levels.

WEEK GONE BY

The Bombay Stock Exchange (BSE) Sensex tumbled by 295.28 points or 1.62% to 17,878.81 during the week ended March 18, 2011. The BSE Mid-cap index decreased 0.30% to 6,509.68 and the Small-cap index shed 1.29% to 7,797.80. Most of the sectoral indices on the BSE were in the negative terrain; Auto was down 282.33 points or 3.22% to 8,485.30, FMCG down by 95.99 points or 2.75% to 3,395.84, IT own 150.01 points or 2.44 to 5,999.97, Realty down by 50.45 points or 2.40% to 2,053.23 and TECk down by 66.84 points or 1.86% to 3,530.74, were the major losers on the index while CD up by 59.58 points or 1.04 % to 5,774.83 was the only gainer on the BSE. The S&P CNX Nifty tumbled 71.75 points or 1.32% to 5,373.7. On the National Stock Exchange (NSE), CNX IT trimmed 2.52% to 6552.60, CNX Nifty Junior shed 0.72% to 10,616.60, Bank Nifty declined by 0.23% to 10,715.90 and CNX Mid-cap lost 0.18 % to 7,592.25. Food inflation in the country eased marginally over the week-ended March 5. According to the data released by the ministry of commerce and industry, food price index rose 9.42% on annual basis during week-ended March 5, marginally lower compared with 9.52% recorded in the previous week.

WEEK AHEAD
The investor's in the coming week will be eyeing the much awaited reform in indirect taxation system which may be via implementation of GST which has already missed two deadlines. The government after getting the Cabinet clearance is likely to table the Goods and Services Tax (GST) Constitution Amendment Bill before Parliament in the next 4-5 days .The Cabinet on March 15, 2011 approved the Constitution Amendment Bill to pave the way for implementation of GST, a new indirect tax regime that will subsume various levies such as excise and service tax. On the global front, the investor's will be eying lots of major economic data from the US, starting with Existing Home Sales on March 21, 2011,followed by New Home Sales data, Durable Goods Orders data, Jobless Claims data and finally the GDP data on March 25,2011. During the week, S&P CNX Nifty touched the highest level of 5537.30 on March 14, 2011 and the lowest point of 5366.40 on March 18, 2010. On the last trading day, the Nifty closed at 5373.70, with a weekly decline of 93.30 points or 1.68%. Hence for the coming week 5310 followed by 5240 are likely to be good support levels for the Nifty, while the index may face some resistance at 5490 and 5612 levels. HAPPY TRADING…..

Equity Research Weekly Market Outlook Report By Mansukh 12-March-2011

SNAPSHOT

Stock markets in India plummeted by over one and half a percent for the week ended March 11, after showing potential signs of market reversal in the previous week. The frontline indices witnessed a week filled with tumultuous global events as they got dragged in three out of the five trading sessions. Indian markets made a nervous start to the week as the benchmarks plummeted on Monday after investors took profits off the table on seeing the indices surged about four and half a percentage points in the previous week. Reports of differences between ruling UPA allies, Congress and the DMK over seat haring for the April 13 assembly polls in the Tamil Nadu too undermined sentiments during mid of the week. The political uncertainty though cooled by Wednesday after DMK agreed for a seat sharing formula with the Congress. Equity markets in India swayed through the week on the tune of crude oil prices which have been on a roller-coaster ride off late, sentiments got undermined by the prolonged civil upheaval in Libya which stoked supply concerns. But the last trading of day of the week saw the local markets take a blow of around a percent after yet another disquieting global development surfaced in Japan which was hit by a great earthquake of 8.9 magnitude on Richter scale, fifth largest recorded worldwide.

WEEK GONE BY

The Bombay Stock Exchange (BSE) Sensex tumbled 312.60 points or 1.69% to 18,174.09 during the week ended March 11, 2011. The BSE Mid-cap index decreased 0.95% to 6,592.12 and the Small-cap index shed 1.24% to 7,899.81. Most of the sectoral indices on the BSE were in the negative terrain; CG, Bankex, Power , were the major losers on the index, while Realty up by 26.22 points or 1.26% to 2,103.68 nd Oil and Gas up by 69.75 points or 0.72% to 9719.02. The S&P CNX Nifty decreased 93.30 points or 1.68% to 5,445.45. On the National Stock Exchange (NSE), CNX IT trimmed 1.30% to 6722.25, CNX Nifty Junior shed 1.06% to 10,693.10, CNX Mid-cap declined 0.63 % to 7605.60 and Bank Nifty tumbled 0.61% to 10,740.95. Foreign Institutional Investors (FIIs) were net buyers in the equity segment in the week, leading to a net inflow of Rs 999.5 crore. Food inflation in India has declined for the second successive week in late-February, food price index rose by single digits to 9.52% for the week ended February 26, 2011 as compared to 10.39% seen in the previous week. The decline was largely on the back of ease in prices of vegetables, potatoes and rice. The Index for Industrial Production (IIP) has shown smart recovery in the month of January, coming at better than expected 3.7% after hitting a 20-month low of 1.6% in December.

WEEK AHEAD

In the coming week investor's will be watching out for Wholesale inflation data for the month of February that will be released on Monday, followed by the Reserve Bank of India's mid-quarter review on March 17,2011. Meanwhile, the next big trigger for Indian equity markets after budget will be RBI's monetary policy review, wherein, India's central bank which is struggling with its dual objectives of containing inflation and promoting growth is widely expected to raise interest rates again. Besides, this the companies will report their Advance tax payments on March 15, 2011. Advance tax number will show the health of the Indian companies in the fourth quarter. However, bank woes over tight liquidity conditions is expected to mount post advance tax outflows. On the global front, the investor's will be eying lots of major economic data from the US, starting with employment Situation data due to be released after the Indian market hours on March 11, 2011(Friday), followed by FOMC Meeting Announcement on March 15, 2011, Housing Starts data, Producer Price Index data, Consumer Price Index data, Industrial Production data and finally the Philadelphia Fed Survey data on March 17, 2011. Hence possibility of a range bound scenario between 5200 -5670 could be more justified at this stage however we feel sentiments remain under pressure till 5670 wouldn't be break down with substantial volumes. HAPPY TRADING….

Equity Research Weekly Market Outlook Report By Mansukh 5th-March-2011

SNAPSHOT
Exuberance seems to be returning back to the Indian stock markets as Pranab Mukherjee's Union Budget 2011 lifted up the deteriorating market sentiments, although people at large had downplayed the mega event as they expected that it may not be a market moving affair but proving them wrong the progressive and balanced Budget took the markets back to the road to recovery. After being annihilated by around three percent in the last week, the benchmarks gathered strength to strength almost through the week and soared the most since the week ended November 5. For the week, the NSE's 50-share broadly followed index, Nifty spurted by around four and half a percent points to settle below the crucial 5,550 support level while the BSE's 30-share sensitive index, Sensex jumped about eight hundred points to close around the crucial 18,500 level. Other factors that underpinned the rally on the Dalal Street were, better than expected Manufacturing and Services sector PMI data for February, 32.4% yoy growth in exports for the month of January and positive weekly inflation data which calmed down to 10.39% for week-ended Feb 19.

WEEK GONE BY
The Bombay Stock Exchange (BSE) Sensex gained 785.78 points or 4.44% to 18,486.99 during the week ended March 04, 2011. The BSE Mid-cap index surged 3.46% to 6,592.12 and the Small-cap index increased 2.69% to 7,998.99. All the sectoral indices on the BSE were in the positive terrain; Auto was up 668.25 points or 8.10% to 8919.29, FMCG up by 223.06 points or 6.79% to 3285.67, Realty up by 121.18 points or 6.19% to 1956.28, Bankex up by 612.36 points or 5.18 to 12,444.59 and CG up by 625.28 points or 5.07% to 12325.46, were the major gainers on the index. The S&P CNX Nifty increased 235.20 points or 4.43% to 5,538.75. On the National Stock Exchange (NSE), CNX Mid-cap surged 4.07% to 7654.20, CNX Nifty Junior soared 3.84% to 10,407.40, Bank Nifty advanced 3.56% to 10,807.20, and CNX IT added 1.96% to 6,810.55. Food inflation in the country drifted lower over the week-ended Feb 19 after the marginal rise seen in previous week. According to the data released by the ministry of commerce and industry on Thursday, food price index rose 10.39% on annual basis during week-ended Feb 19.

WEEK AHEAD
Indian equity markets garnered a gain over 4% in the departed week on the back of slew of positive reports which kept the market resilient despite perturbed global markets. The Indian investor's will be eyeing the release of the index of Industrial Production (IIP) data for the month of January 2011 on the Friday, 11 March 2011. The output of the six core infrastructure industries which has grown by a ealthy 7.1% in January, has led some economists to predict a positive impact on the January Index of Industrial Production (IIP) numbers. The investors will also be watching out for Auto Industry Growth Data for the month of February 2011 expected to be announced in the coming week. From the global markets, the investor's will be eying lots of major economic data from the US, starting with employment Situation data due to be released after the Indian market hours on March 4, 2011(Friday), followed by International Trade and Jobless Claim Data to be announced on March 10, 2011 and finally the Retail Sales data to be announced on March 11, 2011. Hence we are expecting slightly range bound scenario between 5200-5670 though we expect sentiments remain biased. HAPPY TRADING…..

Investing In Equity And Monitoring - Equity Research Report By Mansukh March 1st, 2011

FIRST LIGHT HEADINGS
Infrastructure Sector gains on announcement of raising corpus of rural infrastructure development fund
Budget Headlines: 1% excise duty on 130 new items
Budget headlines: 10% excise duty on Branded Garments
Budget Headlines: Surcharge reduced from 7.5% to 5% for domestic companies
Budget Headlines: Age for being classified as senior citizen cut to 60 years from 65 years
Budget headlines: MAT raised to 18.5% from18%
Budget Headlines: Income tax exemption limit raised to Rs 1.8 lakh from Rs 1.6 lakh
Budget Headlines: To keep the standard rate for Excise Duty at 10%
Budget headlines: FY 13 fiscal deficit target at 4.1%

MARKET INDISE

On Monday 28 Feb 10, 2011, ,On Dalal Street, the local bourses commenced the significant trading session on an optimistic note on hopes that the finance minister will deliver a market friendly Budget. The global cues at the start of the session were showing mixed trend with the overnight gains of US markets on Friday and mixed trend of Asian shares. While, there was growing unrest in investor's mind as the finance minister crafts the new budget, as this would decide the growth trajectory. Much in line with the expectation, the stock market's biggest worry --Budget 2011-12--proved to be positive event as it boosted the benchmark indices to trade higher since the budget presented few negatives, than a surfeit of positives. The excise duty and service tax got retained at 10 per cent against expectations of a 2 per cent hike. The FM has also proposed to cut the surcharge on domestic companies from 7.5 per cent to 5 per cent further filling confidence in investor's mind which mirrored in trade and gave their thumbs up to the Budget as the 30 share index garnered over 500 points. However, approaching the final leg, with increased in the Minimum Alternate Tax (MAT) to 18.5% from the current 18% acting as the mood dampener and the higher profit taking after the huge rally made the benchmark indices to shed their early massive gains.

The BSE Sensex gained 131.21 points or 0.74% to settle at 17,832.12 (Provisional). The index touched a high and a low of 18,296.53 and 17,718.88 respectively (Provisional). There 16 stocks advancing against 14 declining one's on the index (Provisional). The S&P CNX Nifty rose 30.65 points or 0.58% to settle at 5334.20 (Provisional). The index touched a high and a low of 5477.00 and 5308.60, respectively (Provisional). 27 stocks advanced against 22 declining ones on the index and 1 stock remain unchanged (Provisional).

The BSE Mid-cap and Small-cap indices gained 0.37% and 0.40%, respectively (Provisional). In the BSE sectoral space Fast Moving Consumer Goods (FMCG) up 4.57%, PSU up 1.99%, Realty up 1.29%, Oil & Gas up 0.43%, Capital goods up 0.38% were the major gainers (Provisional). On the other hand, Consumer durables down 0.21%, Auto down by 0.18% and Power down 0.10% were the major losers in the BSE sectoral space (Provisional).

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