WINNING STROKES: THINK DIFFERENT:

My today's morning call Chambal Fertilizer & Chemicals Ltd rose more than 16% to touch Rs.89.6 before cooling down a bit: Ambuja Cements Ltd rose by more than 6% after the Paid Members were asked to buy Gujarat Based Cement Companies: Southern Online Bio Technologies Ltd (SBTL) hit the buyer freeze. The company will gain from the rise in the diesel prices by the government: Kohinoor Broadcasting Corporation Ltd hit the buyer freeze today on certain news, before cooling down a bit: Ennore Coke Ltd hit the buyer freeze before starting of the heating of the plant for commercial production. It later fished up more than 3%: My today's daily trading (intra-day) call also did well: Premier Explosives Ltd almost touched the Upper Freeze in the early trade before cooling down a bit. The Company came out with wonderful set of numbers for the March, 2008 quarters: My recommended Apar Industries Ltd moved up by more than 10%: My Recommended Envair Electronics Ltd hit the buyer freeze: My Quickie Call Sandur Manganese Ltd hit the second consecutive buyer freeze today: Also my earlier recommended Paramount Communications Ltd, BF Utilities Ltd, SAAG RRInfra, Indsil Electrosmelts Ltd etc. did well today.

The market, which moved between positive and negative zone in early trade, surged in the second half of the trading session led by rally in information technology and cement stocks. A sharp fall in crude oil prices and firm European markets also added to positive sentiments. However, capital goods stocks witnessed selling pressure. The rally on the bourses gathered steam after the Finance Ministry said in afternoon trade, some media reports about new tax proposals to help ease mounting losses at state oil firms due to soaring crude prices were totally baseless. Media reports on Tuesday, 27 May 2008, had suggested that the government may levy a cess or surcharge on income tax and corporate tax to compensate it for losses due to any duty reduction on crude oil and motor fuels. The reports had weighed on the stock market that day. The 30-share BSE Sensex rose 249.78 points or 1.53% at 16,525.37. The index climbed 287.71 points at day’s high of 16,563.30, hit at the fag end of trading session. The Sensex lost 57.81 points at the day’s low of 16,217.78, hit in early trade The broader based S&P CNX Nifty was up 58.55 points or 1.20% at 4918.35. Nifty May 2008 futures were at 4934, a premium of 15.65 points against the spot closing. The NSE's futures & options (F&O) segment turnover was at Rs 56333.67 crore, higher than Rs 49968.5 crore on Monday, 26 May 2008. BSE clocked a turnover of Rs 5390 crore in the cash segment as against Rs 5,108.54 crore on Tuesday, 27 May 2008. Oil prices dropped below $127 a barrel today, 28 May 2008, in Asia, extending a decline of more than $3 in the previous session on a growing sense that soaring prices have cut demand for gasoline and other fuel. Oil has been falling steadily every since it hit a record high $135.09 last week. Expiry of May 2008 futures & options series on Thursday, 29 May 2008 kept the market volatile. As per reports, rollover of Nifty positions from May 2008 series to June 2008 series stood at 45.63% as on 27 May 2008. Rollover of individual stock futures has been lacklustre so far. Asian markets were mixed today, 28 May 2008. Key indices in Hong Kong, Japan, South Korea and Taiwan were down by 0.13% to 1.32%. However, China’s Shanghai Composite (up 2.48%), and Singapore’s Straits Times (up 0.56%), rose. European markets, which opened after Indian market, were trading higher. Key indices in France, Germany and UK were up by 0.43% to 1.51%. US markets advanced yesterday, 28 May 2008, led by technology companies and further drop in crude oil prices. The Dow Jones industrial average advanced 68.72 points, or 0.55%, to 12,548.35. The S&P 500 index gained 9.42 points, or 0.68%, to 1,385.35, and the Nasdaq Composite index surged 36.57 points, or 1.50%, to 2,481.24. Back home, the market breadth was even on BSE with 1312 shares advancing as compared to 1358 stocks that declined. 86 stocks remained unchanged. The BSE Mid-Cap index rose 1.12% to 6,753.53 and BSE Small-Cap index rose 0.33% to 8,237.09. Both the indices underperformed the Sensex. India's biggest cigarette maker by sales ITC rose 6.19% at Rs 222.05. Foreign brokerage firm Credit Suisse raised its target price on ITC to Rs 264, saying on Tuesday, 27 May 2008, the firm was well positioned to grow in a general slowdown. Cement stocks were in demand after the Union government partially lifted a ban on cement exports. Ambuja Cements (up 6.66% at Rs 104.10), Ultratech Cements (up 3.04% at Rs 655.20), ACC (up 2% at Rs 668.65), India Cements (up 3.67% at Rs 162.55) and Grasim Industries (up 1.74% at Rs 2237.70), jumped. India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries rose 1.15% to Rs 2521.80. India's biggest commercial vehicles maker by sales Tata Motors advanced 1.30% to Rs 634.75 after the company reported 6.03% rise in net profit to Rs 2028.92 crore on 5.40% rise in total income to Rs 29214 crore in the year ended March 2008 over the year ended March 2007. The BSE IT index outperformed the Sensex, rising 2.61% at 4,566.42. Mphasis (up 10.02% at Rs 250.85), TCS (up 4.46% at Rs 1,009.70), Satyam Computer (up 3.09% at Rs 514.40), Wipro (up 2.96% at Rs 506.15) and Infosys Technologies (up 1.82% at Rs 1,912.65), soared. The BSE Bankex outperformed the Sensex, rising 2.31% at 7,933.50. Axis Bank (up 9.51% at Rs 810.80), Kotak Mahindra Bank (up 5.94% at Rs 705.65), State Bank of India (up 3.12% at Rs 1,519.30), and HDFC Bank (up 1.52% at Rs 1,351.60), spurted. India’s largest private sector bank by assets ICICI Bank rose 0.94% at Rs 820.20. The BSE Capital Goods index underperformed the Sensex, falling 1.66% to 12,571.91. Bharat Heavy Electricals (down 2.78% at Rs 1,612.15), Bharat Electronics (down 2.05% at Rs 1,134.50), Siemens (down 1.13% at Rs 575.75), and Thermax (down 0.84% at Rs 434.60), slipped. India's largest engineering and construction firm by revenue Larsen & Toubro fell 1.25% at Rs 2,709.10. The will declare its March 2008 ended quarter results on Thursday, 29 May 2008. Among the side counters, Crompton Greaves (down 6.07% at Rs 229.65), Sun TV Network (down 4.03% at Rs 312.20), Cairn India (down 3.54% at Rs 287.80), and Nagarjuna Construction Company (down 3.12% at Rs 186.35), declined. Chambal Fertilisers & Chemicals clocked the highest turnover of Rs 291.49 crore on BSE. Bajaj Finserve (Rs 235.93 crore), Reliance Industries (Rs 190.18 crore), Reliance Capital (Rs 165.28 crore) and Reliance Power (Rs 131.39 crore), were the other turnover toppers on BSE in that order. Chambal Fertilisers & Chemicals reported highest volume of 3.48 crore shares on BSE. Nagarjuna Fertilizers and Chemicals (1.86 crore shares), Ispat Industries (1.35 crore shares), IFCI (1.23 crore shares) and Spice Communications (1.14 crore shares), were the other volume toppers on BSE in that order. State-run power utility Neyveli Lignite Corporation jumped 5.07% to Rs 146 after reporting 1357.10% surge in net profit to Rs 384.68 crore on 128.9% jump in net sales to Rs 801.74 crore in Q4 March 2008 over Q4 March 2007. Auto component maker Minda Industries jumped 5% at Rs 309.75 after the firm said it bagged orders worth Rs 50 crore from Volkswagen to supply headlamps and rear combination lamps for its upcoming models. Software developer Compucom Software rose 4.87% to Rs 32.30 on bagging an order worth Rs 142 crore from the secondary education department, Government of Rajasthan for executing ICT project in 2292 government schools in the state. Cargo handler Gati advanced 2.36% to Rs 99.95 after foreign brokerage Goldman Sachs initiated coverage on the stock with a ‘buy' recommendation with price target of Rs 149. Visa Steel gained 1.86% to Rs 60.15 on reporting 3129% surge in net profit to Rs 20.99 crore on 78% increase in total income to Rs 259.66 crore in Q4 March 2008 over Q4 March 2007.

Market Mantra

Tulip Telecom Ltd hits the buyer Freeze in the opening trade. The scrip is flying since the last few days. CMP: Rs.14.40.

When most of the infrastructure companies are moving up, we can expect B F Utilities Ltd (CMP: Rs.256.50) also to be moving up in the next few hours. The company is doing lot of projects and at the same time, it has wind power projects, which are going to get benefited from the recent announcement from the government. Also, the infrastructure stocks are moving up today, on the rate cut optimism by the RBI in the next policy meet.
Kingfisher Airlines Ltd is out of the lower circuits and is currently trying to move above Rs.7, on the new found optimism, that the required funding for the airlines would come from the UB Group and also the debt of the company has come down substantially during the last few days, due to the selling of the shares by the Banks (which were kept as collateral against the loans taken by the KFA Ltd). This will also have a positive effect on the interest cost on the company. It has already clocked in huge volume and this rise shows that there is an appetite for the scrip in the market. I think the retail investors are picking up the scrip of this once reputed airline for some positive development in the coming days. It seems the competitors of the Kingfisher Airlines Ltd tried to use the media to their own benefit, for the reasons best known to all. One of its group company UB Holding Ltd has already hit the upper circuits at Rs.40.60. CMP: Rs.6.80.
Yesterday, the markets performed better than expected. A reasonably flat opening was followed by sustained buying which took Nifty to around 5700 mark. The bulls were in full charge of the things and there was total absence of intraday correction---Nifty_Spot closed with a gain of 121 points. Inability of the bears to break 5475 (Nifty_Spot) level and a rise above 5615 has turned the market trend upwards. Nifty has reentered the zone above 200 DMA. Shares from almost all sectors are participating in the up-move setting an immediate target of 5850 for Nifty. It seems that intermediate correction that started in February has come to an end and uptrend is likely to get resumed. The Investor can continue to hold with their Nifty longs, for a target of 5850 (spot), in the coming days. There could be intra-day correction, which should be used to build up long positions. Nifty_Spot is now trading at 5680, which I am sure will improve in the coming hours.
Resistance: 5750 / 5790
Support: 5670/ 5645
US Equities ended up 1% on Tuesday, after hitting five-month lows on Monday, buoyed by robust earnings by index majors and positive economic data.
In Asia most indices rose as robust earnings by select companies in the US and positive economic data triggered bargain buying. However, the Asian markets are now showing mixed trend.
Fundamentally speaking, the stock indices may trade with a positive bias as the Nifty closed above its crucial resistance of 5650 on Tuesday & higher then estimated profit reported by Reliance and HCL Tech. However, profit booking at higher levels may cap the upside.
Today, Reliance Mediaworks Ltd moved to Rs.51.80 and Reliance Broadcast Network Ltd to Rs.27.80. In case of Reliance Broadcast Network Ltd, there is a positive news: BIG CBS Prime has inked deals with distribution platform providers to expand its reach to 30 mln households.

Mid Market Chart Check

[Excerpts of my mid-day inputs to the clients]

Market experienced buying at lower levels. A gap down opening took the Nifty to a low of  5118.85 during first few hours of trade. However, strong buying at lower levels pulled it to a high of 5317.70. Finally it settled almost flat. 
Due to over sold situation in short term and subsequent short cover, the  F&O expiry is expected to be closed in the positive today.  Since the morning, there has been relentless buying in the Indian bourses, after the INR appreciated against the USD. However, what is to be noted is that till now the rallies are proving to be short lived and are getting exhausted quickly. On the other hand lower level is attracting buying interest also. This has resulted into extreme volatility on the either side of the spectrum. However, it seems there are now some hope of Nifty going to 5700 levels by the end of September, which is normally a good month for the BULLS. 

Resistance: 5425 / 5475
Support: 5350 / 5300.

Today' Call: Buy J P Associates Ltd (BSE Code: 5325322) at Rs.33-33.40, T--Rs.39, Sl-Rs.29. The news is that Aditya Birla Group is close to concluding a deal to buy out the company's cement plant in Gujarat for close to 35 bln rupees (Rs.3500 Cr), which could be announced anytime from now. Please remember, last time on such a news, the scrip rallied from Rs.51 to around Rs.90 plus. Those who wants to take  a small risk then they can try Rs.40 Call of J P Associates Ltd at Rs.1.40, for a target of Rs.3-4 in the next 30 days. But do keep a SL of Rs.0.80 paise for any down move.  CLICK HERE & CLICK HERE. 
MCX Ltd which was recommended around Rs.255 and Rs.272, last week is today locked at the Upper Circuits at Rs.256.15. The is near the first target. 
Those who have earlier taken B F Utilities Ltd at Rs.128-128, or later, bought it around Rs.118-120, when it fell can continue to add on to their positions and wait for the scrip to cross Rs.200. Today, I am told that an advisory service has recommended the scrip, as a buy for a target of Rs.163.Today the scrip already touched Rs.134.40.
Those who have entered VIP Industries Ltd yesterday, are suggested to exit the counter at around Rs.47.80-48 or either with small profits, or with cost price, because the stock is not performing as expected, even as the INR appreciated against the USD. It was recommended yesterday, on the two premises: 
(i) Ace investor, Rakesh Jhunjhunwala has increased his holdings, mostly probably banking on the revival of sales from the CSD business of the company. 
(i) Any appreciation of the INR against the USD would be positive for the company as it imports around 80-85 % of its products. 
However, the stock did not react too much on the positive side, may be because the price of crude has risen, on the fear of another war in the middle-east. 

Winning Strokes

It seems the domestic bourses will ene the year in bullish tone. The BSE Sensex was seen at 58,347.35 up 553.03 points (+0.96%), While the Nifty is seen trading at17,384.30 up 180.35 points (+1.05%). The Bullishness is likely to continue in the indices, however the action will be seen mainly in the small and mid cap counters. Meanwhile, a report by Rahul Goel of Equity Master, spoke of the following:

"With our estimates showing that Indian stock markets could add wealth of almost Rs 200 trillion over the next decade."

"Because  for the first time ever…

Three forces are simultaneously converging to unleash a once in a generation wealth boom."

"And  while this revival  could positively impact every person in the country... YOU have the opportunity to turn this historic event into potentially millions of rupees by owning the companies at the heart of this revival."

His views also underpin, the bullish undertone of the domestic bourses.

💢 Dhanlaxmi Bank (Rs.14.75) - Hold with a SL at Rs.14.70. The next quarter results are expected to be good due to cutting down of provisions for bad loans.

💢 JBF Industries Ltd (Rs.20.70) -- The ARC has taken symbolic possession of the company. Hence, the company has nothing to worry about the debt. 

The ARC will pay around Rs.840 crore and is currently assisting in management (The old management is still in control of the affairs), till it is able to either sell it to a large conglomerate or effect a turnaround. 

The benefits, will however go to the ARC, till the whole loan amount is recovered. But this means the company is getting DEBT FREE, isn't it?

Hence, we can only expect positive from the company on the fundamental front, especially considering the robustness of the September, 2021 quarter results. 

By the way, the polyester fabric market is doing fine post easing of the lockdown restrictions, imposed due to Covid-19 Pandemic. 

Now, the point is when the debt is taken of care by an ARC and the lenders are set to give a 59% hair cut on the loans, then the deal becomes like Suzlon Energy Ltd (Rs.10.20), which has been hitting UCs since some time. The plants are operating at 70% of the Peak Capacity. 

We therefore,  don't need a Mukhesh Ambani, story to paddle the price of the scrip forward. Buy, the share in market dips for targets above Rs.100 (one hundred), as I'm expecting a vertical recovery from here. 

💢The share of BF Utilities Ltd (Rs.390) is consolidating around the current ranges, before the next round of upmove. When many stocks are making new 52 - week highs, we can also expect it to move above Rs.1000 (one thousand) in the coming months. 

It is not only into infrastructure development, through Nandi Infrastructure Corridor Enterprise Ltd (NICE) but is also into wind power. We know 2022, will be an year of renewable energy, due to NDA government's RE targets. The ace investor Radhakishan Damani holds 1.30% in the company.

It is a Dr.Babasaheb ("Baba") Neelkanth Kalyani company from the reputed Bharat Forge Group. Hence, we don't have to bother about its pedigree.

💢The stock of Bombay Rayon and Fashions Ltd (Rs.8.45) has hit another buyer Freeze, before the commencement of the AGM. The future trajectory of the scrip will hinge on the outcome of the AGM.

💢The stock of Generic Engineering Construction & Projects Ltd (Rs.38.50) has made an intraday high Rs.39.60. Generic Engineering Construction and Projects Ltd's total current outstanding order book stood at Rs.1,390.34 crore, as of May, 2021.

It is surprising that the stock is quoting at Rs.35.65. With this kind of order book any Mumbai based real estate company should trade near Rs.70/80. Buy in dips.

💢As expected the share of Shriram EPC Ltd (Rs.11) is doing fine. We can look for targets of Rs.35 in the coming days. The company is still under the management of the Reputed Shriram Group. 

Market Pulse

Indian market opened higher on firm Asian cues and is still maintaining that trend. Sensex is now trading in the green, though in between the stocks pared gains and slipped into the red. Overseas, Asian shares joined the global rally as strong world growth and rising corporate profits lured hordes of investors into equities. US stock-market indexes ended at records and near session highs yesterday, 21 November 2017, finding support on another round of strong earnings, with technology shares leading the way. The Chicago Fed national activity index rose to 0.65 in October from 0.36 in September. Sales of previously-owned homes jumped to a seasonally adjusted annual pace of 5.48 million in October. Meanwhile, Steel-dependent metal nickel posted early gains on Tuesday in both Shanghai and London markets in step with a stronger showing in Chinese steel futures.Nickel is chiefly used in making stainless steel.
I am of the belief that Moody's rally would continue for some more days, as the NDA government continues with its reform agenda. The the BSE Sensex is now at 33,523.23 up 44.88 points (+0.13%) and NSE is at 10,330.50 up 3.60 points. (+0.03%).

Today's Calls:

• Intra-day: Sell Chennai Petro at around Rs.411.50, SL: Rs.418, T: Rs.402-399.
• Buy Tata Motor Futures at around Rs.432-433, SL below Rs.428, T: Rs.438.
• Buy Cummins at around Rs.855, SL: Rs.846, T: Rs.872-879, on T+1 basis. Book part profit at Rs.867...
• Buy Tata Elsxi at around Rs.946-947, SL: Rs.920, T: Rs.975-985, on T+4 basis.

The stock of SKM Egg Products Ltd (Rs.100.40), which rose from the recommended price of around Rs.78-79 to more than Rs.115 in just 2 days, is currently consolidating. In the last one month, egg prices in the country recorded a huge jump, soaring as much as 40%. Every year, egg prices moves north due to increase in demand, during the winters; however, the rise has been phenomenal.Those who are still holding the shares should put a strict SL at Rs.96. I had asked for profit booking at around Rs.115.

The investors can buy the shares of Jai Balaji Industies Ltd at around Rs.13.50 (BSE) for targets of Rs.29-31, in the medium term. It is now a takeover candidate by established players. Moreover, with June quarter revenue of Rs.538.65 crore, Market Cap of only Rs.130.60 crore and loss trimming down to Rs.38.04 crore against Rs.55.14 in Q2FY17, I feel the stock is a good investment play on the Indian infrastructure sector.

The stock of B F Utilities Ltd, which I recommended on 23 August, 2013 at around Rs.129-130, today touched Rs.527. Congratulations to the long term investors, who are still holding the scrip.

The stock of HDIL, which was recommended few weeks back at around Rs.52-53, is now consolidating above Rs.62, for the next round of upmove. The share recently touched Rs.66, before  correcting a bit. The next targets for the scrip is Rs.72, if it manages to close above Rs.67.50.

Buy the shares of Shilpi Cable Technologies Ltd at around Rs.14.45, for targets of around Rs.17-19. Since some days, the telecom stocks are doing well. The short term correction in the scrip seems to be over.

The scrip of Gammon Infrastructure Ltd, which was recommended around Rs.2.90 is doing well today and is now trading at around Rs.3.15. Gammon Infrastructure is a subsidiary of the infrastructure major Gammon India Ltd (Rs.6.87). If you are not comfortable with Gammon Infrastructure Ltd, then you can opt for the the shares of parent company, Gammon India Ltd -- Buy on market dips.

Crude Oil prices rose on Wednesday as ongoing cuts of piped Canadian crude to the United States added to falling U.S. crude inventories, while expectations of a prolonged OPEC-led production cut also offered support. Those who have invested in the shares of shares of Aban Offshore Ltd at around Rs.191 (CMP: Rs.202), can keep holding  for short term targets of Rs.207-209. SL: Rs.96.

Gitanjali Gems Ltd (Rs.80.50) recently recommended around Rs.67, today touched Rs.84.55. Those who are still holding the scrip can book 80% profit and hold the rest with a SL of Rs.78, for the next logical target of Rs.87. Gitanjali Gems Ltd was recommended many times earlier too, below Rs.50. You can search my blog, for previous recommended prices of Gitanjali Gems Ltd.

You can buy the shares of J P Associates Ltd at around Rs.19, for short term target of Rs.21. If it manages to close above Rs.22, in the next couple of days, then we can look for target of Rs.25-26.

MY RECOMMENDED ASSOCIATED ALCOHOL AND BREWERIES LTD IS NOW BEING RECOMMENDED BY India Infoline Ltd. The stock hit the buyer freeze today: Media Video recommended some weeks back as Quickie Call hit the buyer freeze: Rasoya Proteins Ltd moved up due to buoyancy in the Price of Soya Oils globally: STL Global Ltd hits another buyer freeze: Besides this my Recommended B F Utilities Ltd, Rajoo Engineers Ltd, Walchandnagar Industries Ltd, VBC Ferro Alloys Ltd, Gayatri Projects Ltd, BLB Ltd etc. hit the buyer freeze: I shall be recommending a Hotel Counter to the Premium Group members tomorrow where the ace investor Rakesh Jhunjhunwal holds considerable clout. The scrip could be heading towards Rs.120--Rs.130 mark in the near term: Radhe Developers Ltd crossed crucial Rs.110 mark while moving forward: U can buy Envair Electodyne Ltd (BSE Code-->500246) tomorrow at the upper circuits, with a SL of Rs.19.7: The market ended almost unchanged, after witnessing a bout of volatility ahead of today's expiry of April 2008 derivative contracts. The market was firm in first half of trade but faltered in the latter part of the trading session. S&P CNX Nifty settled just below the 5,000 mark. The market breadth turned negative after strong start. IT and engineering stocks gained on fresh buying. Global cues were mixed. US markets settled with gains on Wednesday, 23 April 2008. Asian markets were trading mixed. European markets which opened after Indian markets extended early losses. China’s Shanghai Composite Index galloped over 9% after the Chinese government cut taxes on equity trading. The 30-share BSE Sensex gained 23.04 points or 0.14% at 16,721.08. It lost 29.44 points at day’s low of 16,668.60 hit in mid-afternoon trade. Sensex hit a high of 16,844.02 in early trade. At the day’s high, Sensex rose 145.98 points. The broader based S&P CNX Nifty lost 22.95 points or 0.46% at 4,999.85. It had closed above the physiological 5,000 mark for previous three consecutive sessions. Nifty April 2008 derivative contracts expired today. Nifty May 2008 futures were at 5003.35, a premium of 3.5 points as compared to spot closing As per reports, marketwide rollover from April 2008 series to May 2008 series stood at 58-60% by Wednesday, 23 April 2008. Nifty rollover was at 62%. Market breadth turned negative after strong start. On BSE 1477 shares declined as compared to 1255 that advanced. 54 remained unchanged. The BSE Mid-Cap index slipped 0.89% to 7,003.63 while the BSE Small-cap index declined 0.73% to 8,735.95, as per provisional closing. Both these indices underperformed the Sensex Turnover was dull on BSE today. It amounted to Rs 5,352 crore as compared to Rs 6336 crore yesterday, 23 April 2008. Turnover has been over Rs 6,000 crore mark in four out of the previous five trading sessions on BSE. Turnover on NSE’s futures & options segment declined to Rs 50,958.06 crore as compared to Rs 52107.86 crore yesterday, 23 April 2008. Sectoral indices on BSE displayed mixed trend. The BSE PSU index (down 1.53% to 7,723.76), the BSE Auto (down 0.19% at 4,570.99), the BSE Health Care index (down 0.48% at 4,170.05), the BSE Metal index (down 1.18% to 15,364.43), the BSE Realty index (down 0.24% at 8,037.13), the BSE Power (down 0.60% to 3,280.02), the BSE Consumer Durables index (down 0.80% to 4,342.13), and the BSE Oil & Gas index (down 0.07% to 11,375.36), underperformed the Sensex. The BSE IT index (up 1.67% to 4,049.52), the BSE TecK index (up 0.44% to 3,291.40), the BSE FMCG index (up 0.75% at 2,389.88), the BSE Bankex (up 0.35% at 8,582.05), the BSE Capital Goods index (up 0.36% at 13,820.43), outperformed the Sensex Among the 30-member Sensex pack, 16 declined while the rest advanced. India’s second largest cement maker in terms of sales, ACC tumbled 5.85% to Rs 795.05 after it reported marginal rise of 0.53% in net profit to Rs 357.54 crore on 7.68% increase in total income to Rs 1861.37 crore in Q1 March 2008 over Q1 March 2007. It was the top loser from the Sensex pack. Tata Steel (down 3.36% to Rs 771), Reliance Energy (down 2.40% to Rs 1311.10), and Reliance Communications (down 3.49% to Rs 529.50), edged lower from Sensex pack. India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries (RIL) fell 0.16% to Rs 2,573 on 6.96 lakh shares. RIL said on Tuesday it had formed a joint venture with Office Depot to provide office products and services in India. The two firms have also acquired eOfficePlanet, an Indian office products and services dealer, to accelerate the rollout of the joint venture. India’s top small car maker in terms of sales Maruti Suzuki India turned volatile after its results were announced. It settled 2% lower to Rs 745.90. It had slipped to a low of Rs 728.70 soon after the results hit the market in early afternoon trade. Maruti posted 33.63% decline in net profit to Rs 297.68 crore on 9.35% rise in total income to Rs 5069.94 crore in Q4 March 2008 over Q4 March 2007. Frontline IT pivotals were in demand. Infosys Technologies, the country’s second largest software services exporter gained 2.68% to Rs 1690 on 4.13 lakh shares. It was the top gainer from Sensex pack. Satyam Computer Services (up 2.51% to Rs 441.25), Wipro (up 1.11% to Rs 448) and TCS (up 0.06% to Rs 890.45) also gained. India’s top FMCG company in terms of net sales Hindustan Unilever gained 1.76% to Rs 246. The stock is near to its all time high of Rs 256 hit on 8 April 2008 Engineering heavyweights gained on fresh buying. Larsen & Toubro (up 1.66% to Rs 2950), Jaiprakash Associates (up 1.52% to Rs 247) and Bharat Heavy Electricals (up 1.43% to Rs 1853), advanced. Oil marketing companies slipped as crude oil prices hovered near record highs of $120 per barrel. Hindustan Petroleum Corporation (down 2.32% to Rs 244), Indian Oil Corporation (down 2.59% to Rs 437), and Bharat Petroleum Corporation (down 1.03% to Rs 382.90), slipped. Oil exploration companies slipped. Cairn India (down 1.16% to Rs 255.50) and ONGC (down 0.78% to Rs 1035) fell. Reliance Petroleum was the top traded counter on BSE with a turnover of Rs 200.9 crore followed by Reliance Industries (Rs 179.6 crore), Essar Oil (Rs 172.2 crore), Reliance Capital (Rs 133 crore) and Reliance Natural Resources (Rs 126.96 crore) in that order. IFCI led the volume chart clocking volumes of 1.84 crore shares followed by Indiabulls Securities (1.1 crore shares), Reliance Natural Resources (1.08 crore shares), Reliance Petroleum (1.02 crore shares) and Essar Oil (0.6 crore shares) in that order Among the side counters, Media Video (up 20% to Rs 34.50), India Toners (up 17.47% to Rs 26.90), National Oxygen (up 17.78% to Rs 62.60), surged. Disa India slipped 4.58% to Rs 1741 after the company reported 8.2% fall in net profit to Rs 3.82 on 19.8% rise in sales to Rs 23.69 crore in Q1 March 2008 over Q1 March 2007. The company declared the results after market hours on Wednesday, 23 April 2008. Indiabulls Securities advanced 3.40% to Rs 115.65 after it informed the Bombay Stock Exchange that Merrill Lynch Capital Market Espana SASV had raised its stake in the Indian brokerage to 5.02%. Polaris Software Lab declined 6.39% to Rs 101 after the company after market hours on Wednesday, 23 April 2008 said its board has deferred a decision on buy back of equity shares. Lupin gained 4.09% to Rs 572.10 after the company said its subsidiary in Japan, Kyowa Pharmaceutical Industry Co, has received approvals from the country's ministry of health and labour welfare for 10 products. The company made this announcement after trading hours on Wednesday, 23 April 2008. Hindustan Zinc gained 1.07% to Rs 632 even as the firm cut zinc prices by 2.3% or Rs 2,400 a tonne to Rs 1,02,400 a tonne. Bombay Rayon Fashions declined 3.08% to Rs 377. The company said its Netherlands unit has agreed to acquire the 'Guru' brand and other related retail businesses from Italian firm Jam Session Holdings, for 33 million euros. The company made this announcement during trading hours today, 24 April 2008. Gayatri Projects jumped 4.99% to Rs 472.10 after the company said it has secured six new orders aggregating to Rs 96.79 crore. The orders are to be executed within a period ranging from eight months to 18 months, company said. The company made this announcement during trading hours today, 24 April 2008. Koutons Retail India lost 2.30% to Rs 770.05 on reports that Azim Premji, chairman and majority owner of Wipro, has picked up 2% stake or 30 lakh shares in the company for Rs 20 crore. Container Corporation of India was down 0.19% to Rs 905.90. The company posted 19.9% rise in net profit to Rs 202.98 on 11.8% growth in net sales to Rs 903.59 crore in Q4 March 2008 over Q4 March 2007. The company announced the results after trading hours on Wednesday, 23 April 2008. In the near-term market will be driven by the quality of earnings rolled out by corporates in the coming days. Aggregate results of 245 companies showed 18.40% rise in net profit on 31.60% rise in net sales in Q4 March 2008 over Q4 March 2007. There was 35.80% rise in net profit on 22.20% rise in net sales in FY March 2008 over FY March 2007. European markets which opened after Indian markets were weak. Key benchmark indices in United Kingdom (down 1.49% to 5,993.10), Germany (down 0.76% to 6,743.15) and France (down 1.16% to 4,887.36) slipped. Asian markets, which opened before Indian market, were trading mixed today, 24 April 2008. Hang Seng (up 1.55% at 25,680.78) and Shanghai Composite (up 9.29% to 3,583.02), edged higher. However Singapore's Straits Times (down 0.51% at 3,177.55), South Korea's Seoul Composite (down 0.08% at 1,799.34), Japan's Nikkei (down 0.28% at 13,540.87), and Taiwan's Taiwan Weighted (down 0.20% at 8,990.23), declined. US markets advanced yesterday, 23 April 2008 as a range of technology companies posted strong results that showed the sector's resilience in the face of an economic slowdown. The Dow Jones industrial average gained 42.99 points, or 0.34%, to 12,763.22. The Standard & Poor's 500 index advanced 3.99 points, or 0.29%, to 1,379.93. The Nasdaq Composite index rose 28.27 points, or 1.19%, to 2,405.21. Note: There are some problems with the formatting button of my blog and hence I am not able to hight the important points. Suddenly bold, colour and underline buttons have vanished. May be someone had hacked this blog: www.sumanspeaks.blogspot.com out of jealously or to discourage me from publishing informations!!!

 FIIs’ favourites turn turtle on sell-off

[Editor: I feel it is not true that the FIIs have increased their stake in Anant Raj Ltd and it is because of this factor, the scrip fell. In fact both the FIIs and DIIs have decreased their stake marginally in Anant Raj Ltd according to the latest shareholding pattern put up in the Bombay Stock Exchange website. It would not be an exaggeration to mention here that many of the companies where FIIs have actually increased their stake like Amara Raja Batteries, Aurobindo Pharma, Dr.Reddy's, Hathway Cable, Persistent System, LIC Housing Finance, Torrent Pharma, Zee Enterprise. etc. did not go for such massive selling as compared to Anant Raj Ltd nor are they trading near their 52-week low price. Moreover, the point to ponder is that, the stock of an A-group company cannot fall near its 52-week low price,  after coming up with such brilliant September, 2014 quarter numbers unless and until there is a foul play somewhere; which the regulator/s failed to detect till now. I again reiterate, there must be some game going on somewhere which the regulator/s could not detect till now, in case of Anant Raj Ltd. This is the most unfortunate part of regulation, of the Indian bourses. The Delhi-based firm Anant Raj Ltd has 11 hotels, out of which, 6 hotels are completed while 5 other hospitality projects are under construction. Anant Raj leases its commercial properties -- office, shopping malls and hospitality projects -- to obtain steady cash flows. It has also leased out some of its hotels to hospitality firms - Mapple Group and Royal Orchid. Among major projects, the company is developing a township spread over 160 acres in Gurgaon, with an expected sales realisation of Rs.5,900 crore over the next 3-5 years.]
January 6, 2015: It was a black Tuesday for Indian equities, as the country’s benchmark indices — Sensex and Nifty— nosedived over 3 per cent in trade. The sell-off was broad-based with 474 stocks out of the CNX 500 Index declining. Two-third of the stocks that fell were those in which FII holding (as of September 2014) was higher than the year-ago period.

Realty worst hit

Among those that fell the most were real estate stocks, which were FII favourites in 2014. DB Realty plummeted 8.7 per cent. Foreign institutions had upped their stake in this company from 5.79 per cent in September 2013 to 9.11 per cent as of September 2014.

Likewise, the stock of Indiabulls Real Estate, which saw buying interest from FIIs in 2014, fell over 7 per cent. As of September 2014, foreign institutions held 28.93 per cent stake in the company, 3.2 percentage points more than in September 2013. 

Other realty stocks which were bought by FIIs in 2014 and figured prominently in the losers’ list include HDIL and Anant Raj Industries. Both stocks lost in excess of 6 per cent on Tuesday.

There were big losers in other sectors, too. The stock of garment manufacturer Arvind, in which FIIs had raised stake to 23.5 per cent by end-September 2014, from 15.7 per cent in September 2013, lost 6.7 per cent.

Likewise, the stock of J Kumar Infra Projects, wherein the FII holding almost trebled to 17.9 per cent as of September 2014 from 6.17 per cent in September 2013, lost 6.5 per cent.

Other FII-favoured stocks that gave up gains include BF Utilities (6.6 per cent), Tata Sponge Iron (6.2 per cent), Hotel Leela Ventures (6 per cent) and Bharat Forge (5.7 per cent).

Vulnerable to trends

The free fall in crude oil and subsequent strain on oil-based economies not only poses a risk to incremental FII flows into India but can also trigger profit-booking by foreign institutions. The stocks of companies that are heavily owned by FIIs may be more vulnerable to negative global developments.

Which are they? HDFC tops the list; FIIs held 77.85 per cent in the company as of September 2014. FIIs owned more than half of Zee Entertainment’s equity. Other companies in which FIIs had more than 45 per cent of the total equity include Shriram Transport, IDFC, Hubtown, Axis Bank, United Phosphorous, YES Bank and KPIT Technologies.

Courtesy: The Hindu Business Line

Market Mantra

Reliance Mediaworks Ltd(Rs.51.90) hits the buyer freeze in the mid afternoon trade. The scrip was recommended repeatedly in this group. Reliance Broadcast Network Ltd (Rs.28) could also hit the buyer freeze today, as most of the ADA Group (Anil Ambani Group) stocks are moving up in high speed. 
The construction companies are moving up today, in anticipation of the RBI going for another round of rate cuts in the next policy meet. Some of my favourite counters like IVRCL Ltd (Rs.20.70), B F Utilities Ltd (Rs.260), Punj Lloyd Ltd (Rs.53.50), etc are doing well today.
Tulip Telecom Ltd hits another consecutive buyer freeze in the opening trade. It is now locked at the Upper Circuits at Rs.16.13 in the BSE. This scrip was also very strongly recommended in this blog, repeatedly. 
Today Kingfisher Airlines Ltd moved to Rs.7.20, before cooling down a bit. It is only time that the airlines would start operation once again. A section media is sending all sorts of make believe news in public domain. The media reports are manufactured and punctuated with "If", "May be", kinds of words, for the reasons best known to all. When the debts have actually come down from Rs.7000 Cr plus and the funding from the U B Group is about to happen, these kinds of negative news only points that some vested groups want to enter the scrip at a lower price before the company announces the good news. Paid Media, is being used by vested groups for their own interest...!! "I seriously wonder what motivates the bank chairmen to constantly speak to the media on loan recovery from Kingfisher Airlines. What about others?" ~~Kingfisher Airlines Chairman Dr.Vijay Mallya, shot this message sometime back on the Twitter.

My recently recommended Southern Online Bio-Technology Ltd, Phoenix International Ltd, Entegra Ltd, VBC Industries Ltd, STL Global Ltd, BF Utilities Ltd, Kalpana Industries Ltd (This week's quickie call), Kohinoor Broadcasting Corporation Ltd, Vikas Metal Ltd(this week's quickie call), Indsil Electrosmelts Ltd, etc. hit the buyer freeze: My earlier recommended H B Stock Holdings Ltd, BLB Ltd, Kanishk Steel and Industries Ltd, Jhunjhunwala Vanaspati Ltd, Dhoot Industrial Finance Ltd, PNB Gilts Ltd, Rasoi Ltd, Associated Alcohol and Breweries Ltd, Mcleod Russel Ltd, Williamson Magor, Sunflag Iron, Minda Industries Ltd, GTC Industries Ltd, Khoday India Ltd, Kamanwala Industries Ltd etc. hit the buyer freezes: Even H S India Ltd did well today: The Intra-day call given to V S Patini on CESC Ltd at Rs.433 shot up to Rs.454 in late trade, giving him handsome gains, intra-day:

RBI Governor again proves that he is no better than a "Paan wala" in term of taking measures to contain inflation. P Chidambaram first failed to anticipate how much will inflation shoot-up and then suddenly took some extreme measures which even a "Rickshaw-walla" know what to do in these situations, as the last minute effort. No innovation and nothing--plain Vanila CRR hike: Another UPA Minister (at that time he was in Janata Dal of Deve Gowda) Ram Bilas Paswan, whom I saw throwing some "serious gibes" on cartelisation of steel companies on camera today......lol.......laid the foundation stone of Badarpur-Lumding hill-section in the North East in 1996, when he was the Railway Minister and the schedule time for completion was 2006. But even today not even 30% work has been completed on that route:

Anyway HAVING SAID THIS ONE THING IS SURE, THE INFLATION WILL NOW COME DOWN TO BELOW 6%, VERY FAST----I would have been happy if the FM and Governor Reddy could have devised some innovative policies instead of going for the "Rickshaw Puller Route". Just compare how the US Fed behaves and how their counterpart in India behaves--your will bow your head down in shame: But then how will the stock market behave on Monday?? Will the Bull run continue??? Will sucking of Rs.18, 500 Cr from the market have any major impact on Monday and the next week, as the markets were looking good since some days?? Would 7.5%--8% growth be sustained? Are we gradually moving towards the softer Interest Rate regime, which will spur growth? All these to the Paid Groups:

Licence fee for DTH to be cut by 40% Nivedita Mookerji Thursday, April 17, 2008

NEW DELHI: The annual licence fee for direct-to-home (DTH) broadcasting players is set to dip from the current 10% to 6% of their gross revenues, as Telecom Regulatory Authority of India (Trai) has backed the information and broadcasting (I&B) ministry’s proposal on that. However, DTH players are not likely to pass on the benefits of the reduction in licence fee to their subscribers immediately. While supporting the I&B move to cut the licence fee, Trai chairman Nripendra Misra has reminded the ministry that “the decision of the government should follow Trai’s recommendations.” In this case, the I&B ministry sent its proposaldecision to Trai on cutting the licence fee, and sought the regulator’s view. In a letter to I&B secretary, Asha Swarup, Misra wrote, “The authority has considered the decisions/ observations of the government…. As you are aware, Section 11(1) requires the authority to make recommendations on specified matters. The decisionof the government should follow Trai’s recommendation.” According to the regulator, imposing a lower licence fee on the service providers is likely to encourage higher growth. It has added that with increased growth, it would be a win-win situation for the industry and the government. Later speaking at a press conference to announce the launch of a DTH association -DOAI (DTH Operators Association of India) - Tata Sky CEO Vikram Kaushik said that since DTH is in its infancy and players are running losses, an immediate cut in tariff is unlikely.Kaushik, along with other DTH heads such as Jawahar Goel of Dish TV and Prakash Bajpai of Big TV (Anil Ambani’s Reliance group) pointed out that efforts would be made to make the platform affordable for all.

It is likely that special prices would be announced soon by various DTH platforms for bundles, bouquets and a la carte packages. Representatives of DTH players - Tata Sky, Dish TV, Bharti, Big TV and Sun TV - came together on Wednesday to form their association, in order to lobby with the regulator and the government for common causes. The association, DOAI, is expected to perform the role of telecom associations, COAI and AUSPI, in the DTH sector. After the mobile revolution, it is the turn of DTH revolution, they said. Currently, Dish TV (of the Essel group) and Tata Sky (joint venture between the Tatas and Rupert Murdoch’s Star TV) are the two main DTH players in India. Tamil Nadu-based Sun TV too launched its direct-to-home broadcasting service recently. Prasar Bharati too has been running its DTH service (DD Direct Plus), but it is a free-to-air platform. In all, there are between 5 million and 6 million DTH users in the country.Dish TV, which recently touched the 3-million subscription figure, reported a net loss of Rs 251 crore in the financial year ending March 2007. Its rival Tata Sky showed a net loss of Rs 815 crore in the corresponding period, though the service was launched in August 2006. Two more players-Big TV and Bharti-are likely to launch their DTH service soon. And, the Videocon group has also got the DTH licence. Of the 120-million TV households in India, only 70 million have cable connection. DTH is still in its infancy in India, and there’s sufficient room for growth. By the year 2015, 40% of the pay TV universe (cable TV and DTH) are likely to be DTH users, significantly up from around 5% now, according to industry projections. [From Internet]

Winning Strokes

The Indian bourses are trading flat. The BSE Sensex is seen trading at 57,918.68 up 112.19 points (+0.19%), while the Nifty is trading at 17,238.15, up 24.55 points (+0.14%). While the indices are expected to trade flat, the action will be shifted to stock specific counters.

#Suzlon Energy Ltd (Rs.9.85) hit another consecutive Buyer Freeze. The stock made a new 52 - week high today. 

#Shriram EPC Ltd (Rs.10.20) hit the buyer Freeze today and then came out. We can look for targets of Rs.30/35 in the coming days. Accumulate on declines. FERA companies command high valuations in Indian bourses. It has a good order book position, and quality management.

#Buy the shares of BF Utilities Ltd near the CMP of Rs.382, for short term targets of Rs.471/491. This is a Baba Kalyani group company having huge land holdings, near Bangalore. It is also into Renewable Energy. When Suzlon Energy Ltd has been hitting continuous UC, we can look to buy this share. 

If you look at the shareholding pattern of the company, you'll find that the ace investor Radhakishan Shivkishan Damani (Guru of Rakhesh Jhunjhunwala) holds 1.30% shares of the company.  This makes the share extra special at the current CMP.

#The scrip of Bombay Rayon and Fashions Ltd (Rs.8.05) hit the Upper Circuit, before the AGM tomorrow. Since the stock has been shifted into BZ group by the exchanges, hence don't add fresh positions, till it comes out of this Group.

#Continue to accumulate the shares of JBF Industries Ltd (Rs.20.40), for targets above Rs.50. It is a Mukhesh Ambani acquisition story, according to the market rumours.

#The stock of Patel Enginnering Ltd (Rs.34) made a new 52 - week high today. If you remember, the scrip was recommended around Rs.15/17/19 ranges. The stock has doubled from the recommended price. 

#The Stock of A2Z Infra Engineering Ltd (Rs.9.05) hit another buyer Freeze. It has been shifted to the T - group and hence keep a constant watch on the counter.

#Buy the shares of Generic Engineering Construction and Projects Ltd at Rs.36, T: Rs.48/51. SL: Rs.31. This is a fundamentally strong company. 

WINNING STROKES: THINK DIFFERENT:

Nifty Closed above 2900 in late buying as the Crude Oil surged ahead due to better outlook for the World Economy and due to the prediction of Severe Winter in the US, the largest consumer of crude oil. It was mentioned a number of times to the Paid Group Members that, crude at this price is not sustainable as it will virtually bankruptct the OPEC and other oil producing countries like Russia. Hence the Oil Exporting Countries will try to do everything so that the Crude Price sustains above $72 per barrel.

My Sunday Report Recommended scrip, XL Telecom & Energy Ltd (BSE Code-->532788) almost hit the buyer freeze before cooling down a bit. I will soon upload the report on the company in this blog.

Lok Housing Ltd hit the buyer freeze in the late trade. The stock was mentioned during the market hours to the Paid Groups.

SAIL moved up today reflecting what is mentioned in the Sunday Report on Steel Counters: "Steel stocks are likely to rebound in this week on hopes of the government will roll out the second stimulus package to revive the economy. The stimulus package is expected to include monetary measures to improve credit for various industries. The measures could also include reduction in duties to help companies bring down prices and push demand."

Reliance Petroleum Ltd moved up by more than 10% today. The stock was mentioned in the morning report sent to the Paid and Free Group members. It was also mentioned in the Sunday Report that Reliance Petroleum Ltd (RPL) may continue with the rally.

Bank stocks moved up as was mentioned in the Sunday Report to the Paid Groups. Bank stocks may witness somemore upside if the rate cut comes through. It was mentioned in the Sunday Report that: 'The banking sector is expected to come out with good Oct-Dec earnings compared with the other sectors. Treasury operations are likely to boost their income as yield on the sovereign paper has plunged to 5.61% Friday from 8.61% on Sep 29.

Despite the slowdown in credit offtake, Indian banks have adequate demand from the system to cater to, and this will ensure a decent growth in business. RBI has enough headroom for cutting policy rates as inflation is coming down. India's headline inflation rate fell to a 41-week low of 6.61% for the week to Dec 13 from 6.84% a week earlier. The government's mid-year review had also said there is a considerable scope for easing monetary policy in the next 6-12 months. Since September, the central bank has slashed key short-term Repo and Reverse Repo rates 250bps and 100bps, respectively. It has also reduced banks' CRR and Statutory Liquidity Ratio 350bps and 100bps, respectively."

Srinivasa Shipping and Property Development Ltd hit the buyer freeze before cooling down a bit. The stock is one of the favourites in the construction cum shipping counters. Moreover, Essar Shipping Ltd hit the buyer freeze.

My earlier Recommended Pochiraju Industries Ltd, PVR Ltd, K Sera Sera Productions Ltd, Zicom Securities Ltd, Yes Bank, Zicom Securities Ltd, BF Utilities Ltd, etc. did well today.

Buy U B Engineering Ltd, English Indian Clays Ltd, Vijay Shanti Builders Ltd, Sunflag Iron and Steels Ltd, Ennore Coke Ltd, etc. English India Clays Ltd is probably is coming up with rights issue at Rs.1000 per share, at the end of January, 2009; when the company would declare the results for Q3FY09. The results are expected to be good due to the Rights Issue. The company have monopoly in the mining products. It is a mining, CER (Carbon Credits), Power and FMCG story.

Expectations of a second government stimulus package for the slowing economy and, hopes of further rate cuts by the central bank helped key benchmark indices reverse early losses in what was a volatile trading session. The BSE 30-share Sensex gained 204.60 points or 2.19% at 9533.52, bouncing back from a slide of as much as 1.8% in morning trade.

Recovery in Asian markets from early fall, firm European markets and higher US index futures boosted the sentiment further. The market breadth turned positive in late trade in contrast to a weak breadth earlier in the day.

Volatility was high. Volatility in index heavyweight Reliance Industries (RIL) and Satyam Computer caused volatility in the key benchmark indices. The market dropped in mid-morning trade on concerns over corporate earnings and a flare-up of violence in the Middle East. A strong recovery triggered by rebound in Asian stocks saw the BSE Sensex wipe out its entire losses in early afternoon trade. The recovery proved short-lived as the market weakened again. It once again recovered but once again lost ground shortly. A firm start of European markets aided a sharp rally in mid-afternoon trade.

The market cut gains in late trade as Satyam Computer came sharply off the higher level after it said two more independent directors have resigned. The market surged later as Satyam bounced back again.

European shares advanced today, 29 December 2008 led by energy and metals stocks that tracked firmer commodity prices. Key benchmark indices in UK, Germany and France were up by between 0.95% and 2.11%. Trading in US index futures indicated the Dow could rise 28 points at the opening bell.

Asian shares advanced led in part by resource-related stocks on the back of higher commodity prices. Key benchmark indices in Hang Seng and Singapore were up 1.02% and 1.36%. In Japan, the Nikkei average ended up 0.09%, helped as well by news that three non-life insurers including Mitsui Sumitomo Insurance Group Holdings were in talks to merge.

Earlier in the day, Asian stocks had dropped due to a flare-up of violence in the Middle East. Israeli warplanes pounded the Hamas-ruled Gaza Strip for a third consecutive day on Monday as the Jewish state prepared to launch a possible invasion amid the intensifying clashes between the two sides.

The flare-up of violence in the Middle East stirred worries about energy supply disruptions, boosting crude oil prices. Oil prices rose as much as $2 to nearly $40 a barrel during Asian trade on Monday as investors worried about crude supplies, though crude pared gains later to be up 97 cents at $38.68. Oil markets are ending a manic year in which crude surged to a record at close to $150 a barrel in July before crashing down amid fears about a sharp slowdown in the global economy.

Closer home, the Indian government is reportedly considering another stimulus package to lift slowing growth. The first stimulus package announced early this month mainly involved additional government spending and an across-the-board cut in excise duties.

Meanwhile, a sustained declined in inflation will provide room for the Reserve Bank of India (RBI) to further cut interest rates. Inflation has been falling after it had surged into double digits in early June this year following an increase in state-set retail fuel prices.

But investors in India are bracing for poor Q3 December 2008 results. The government said during trading on Friday, 26 December 2008, advance taxes paid by companies declined 22% to about Rs 42600 crore in the December 2008 quarter over the December 2007 quarter, reflecting economic slowdown. The Indian economy has slowed down after a strong growth in the past three years.

The BSE 30-share Sensex gained 204.60 points or 2.19% at 9533.52. At the day's high of 9,550.40, the Sensex advanced 221.48 points in late trade. The Sensex declined 166.26 points at the day's low of 9,162.66 in mid-morning trade.

The S&P CNX Nifty gained 64.95 points or 2.27% at 2922.20. Nifty January 2009 futures were at 2937.55, at a premium of 15.35 points as compared to the spot closing. Turnover in NSE's futures & options (F&O) segment surged to Rs 33,326.10 crore, from Rs 24,153.90 crore on Friday, 26 December 2008.

The market recovered after last week's steep slide. The BSE Sensex had declined 770.99 oints or 7.63% in four trading days to 9,328.92 on 26 December 2008 from a recent high of 10,099.91 on 19 December 2008.

The barometer index is down 10753.47 points or 53% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 11673.25 points or 55.04% below its all-time high of 21,206.77 struck on 10 January 2008.

The market breadth, indicating the overall health of the market, turned positive in late trade, reversing initial weakness. On BSE, shares 1302 advanced as compared with 1091 that declined. 86 shares remained unchanged.

The total turnover on the BSE amounted to Rs 3398 crore as compared to Rs 3,175.04 crore on Friday, 26 December 2008.

The BSE Auto index, down 0.63%, was the lone loser from the BSE sectoral indices. The BSE Realty index (up 0.26%), BSE Consumer Durables index (up 0.57), the BSE Teck index (up 1.97%), the BSE IT index (up 1.14%), the BSE HealthCare index (up 1.08%), the BSE Capital Goods index (up 1.24%), the BSE Power index (up 2.01%), the BSE FMCG index (up 0.22%), and the BSE PSU index (up 1.37%), underperformed the Sensex.

The Bankex (up 3.71%), the BSE Metal index (up 3.23%), and BSE Oil & Gas index (up 2.87%), outperformed the Sensex.

Among the 30-member Sensex pack, 24 advanced while the rest slipped. Ranbaxy (up 8.23% to Rs 234.80), Jaiprakash Associates (up 7.88% to Rs 79.45), and Grasim (up 6.03% to Rs 1260), edged higher.

India's fourth largest IT exporter by sales Satyam Computer Services galloped 10.37% to Rs 149.55 on massive volumes of 3.06 crore shares on hopes of a better corporate governance. The stock saw high volatility in mid-afternoon trade. A sharp slide in the stock was witnessed after the company said two more independent directors have resigned. Just before the announcement in mid-afternoon trade, the stock had jumped 17.78% to Rs 159.60 on hopes of a better corporate governance. The stock moved in a range of Rs 159.60 and Rs 129.55. On 26 December 2008, Satyam had announced the resignation of independent director Mangalam Srinivasan.

Satyam said before trading hours today, 29 December 2008, it has postponed a board meeting set for Monday, 29 December 2008 to 10 January 2009 to mull options beyond just a possible share buyback. The board had been expected to consider a share buyback, after news last week that the outsourcer had been barred from doing business with the World Bank added to its woes.

A media report quoted US-based independent director Vinod Dham as saying the 10 January 2009 board meeting would discuss a change in management, including a possible exit of Satyam's chairman and founder B Ramalinga Raju. It would also discuss appointing a chief executive or even a sale to another entity, the report said. Dham is one of the two independent directors who resigned from the board today, 29 December 2008.

While Satyam soared, other IT pivotals reversed early losses on a weaker rupee. India's second largest IT exporter by sales Infosys rose 0.22% to Rs 1112, off the day's low of Rs 1065. India's fourth largest IT exporter by sales Wipro gained 0.86% to Rs 229, after touching day's low of Rs 214.20. India's largest IT exporter by sales Tata Consultancy Services advanced 1.01% to Rs 476.85, rebounding from low of Rs 460.

Core Projects & Technologies rose 5.15% to Rs 46.95 after the company acquired a US-based company for $20 million. The company made the announcement before market hours today, 29 December 2008.

The rupee was hovering at around 48.49, lower than 48.45/46 a dollar on Friday, 26 December 2008. A weaker rupee boosts operating margins of IT firms as they earn most of their revenues from exports.

Banking shares advanced on speculation falling bond yields and lower rates would accelerate loan growth and profitability. India's largest private sector bank by net profit ICICI Bank rebounded sharply from day's low of Rs 404.60 and settled 5.97% higher to Rs 442.90, on reports it is set to cut interest rates by 50-75 basis points across the board shortly.

India's second largest private sector bank by net profit HDFC Bank gained 2.18% to Rs 993.80. India's biggest bank in terms of total assets and branch network, State Bank of India, vaulted 2.27% to Rs 1272.70.

India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) rose 3.22% to Rs 1251, after its unit Reliance Petroleum started processing crude at its 5,80,000 barrels per day refinery last week. The stock swung in a band of Rs 1188 and Rs 1252.60 in volatile trade during the day. Reliance Petroleum was up 4.49%, extending Friday's (26 December 2008)'s gain of 6.3%.

Telecom shares shrugged off reports the government has deferred a global auction of third-generation wireless spectrum by two weeks. India's largest cellular services provider by sales Bharti Airtel gained 3.68% to Rs 712. India's second largest cellular services provider by sales Reliance Communications rose 3.71% to Rs 212.60.

Metal stocks rose as metal prices surged on the London Metal Exchange. Tata Steel (up 1.65% to Rs 215), Steel Authority of India (up 11% to Rs 78.20), and Sterlite Industries (up 3.29% to Rs 257.20), edged higher.

India's largest private sector aluminium maker Hindalco Industries rose 1.34% to Rs 49.20 on reports it may spend about Rs 25,000 crore over the next five years for expanding capacity by as much as three times in aluminium and copper.

Hindustan Zinc jumped 3.97% to Rs 340.20 after the company hiked zinc prices by nearly 3%. The price revision is effective from Thursday (25 December 2008), a company circular said.

India's top power equipment maker by sales Bharat Heavy Electricals jumped 3.68% to Rs 1348 on reports it has bagged a Rs 5,040 crore contract from Jindal Power for setting up 2,400 megawatt power plant in Chhatisgarh.

Real estate shares were mixed amid recent reports property rates are expected to fall by 20-25% as demand has dropped sharply over the past 9-10 months due to high interest rates. Indiabulls Real Estate (down 2.17%), DLF (down 0.13%), slipped. However Unitech (up 6.51%), and Housing Development and Infrastructure (up 1.81%) advanced.

Fall in property prices is expected to hit the margins of developers already hit by the demand slowdown. Additionally, developers are facing a severe cash crunch that is hindering the execution of ongoing projects and grounding new launches.

Auto shares were subdued after the Society of Indian Automobile Manufacturers (SIAM), an industry body for automobile sector, estimated lower sales in December 2008. India's top truck marker by sales Tata Motors slumped 4.40% to Rs 148.75 and was the top loser from the Sensex pack. The stock came off the day's low of Rs 144.80.

Mahindra & Mahindra (down 3.58% to Rs 256), and Maruti Suzuki India (down 2.14% to Rs 499.80), declined.

SIAM said domestic vehicle sales are likely to fall by over 15% in December 2008 to 6,18,000 units and projected a whopping 25.5% fall in sales in the December 2008 quarter and over 34% slide in sales in the March 2009 quarter.

Aviation stocks gained on fall in jet fuel prices. India's biggest private sector airline by revenue, Jet Airways India rose 2.61% to Rs 190.50 after it slashed basic domestic fares by 15% to 40% with effect from Monday, 29 December 2008. SpiceJet rose 3.63% to Rs 15.69 and Kingfisher Airlines jumped 6.61% to Rs 37.10.

Recently, oil-marketing firms had slashed jet fuel or aviation turbine fuel (ATF) prices by 11%. Jet fuels prices have fallen by over 50% since August 2008 when prices touched a record Rs 71,028.26 per kilolitre. Jet fuels constitute more than 50% of the operating cost for airliners.

Satyam Computer Services was the turnover topper on BSE with turnover of Rs 451.36 crore followed by Reliance Industries (Rs 234.53 crore), Reliance Infrastructure (Rs 171.54 crore), Reliance Capital (Rs 166.45 crore) and DLF (Rs 161.83 crore).

Satyam Computer Services also topped volume chart on BSE clocking volume of 3.07 crore shares followed by Unitech (2.74 crore), Suzlon Energy (1.68 crore), Reliance Natural Resources (1.26 crore) and Cals Refineries (1.05 crore).

New Delhi Television rose 2.93% to Rs 114 on reports Shah Rukh Khan-promoted Red Chillies Entertainment will produce a comedy sitcom, Ghar Ke Baat, for NDTV Imagine. New Delhi Television holds 82.05% in NDTV Imagine, a general entertainment channel.

Kirloskar Brothers rose 1.86% to Rs 82 despite the company shutting its production unit in Madhya Pradesh from 25 December 2008 to 4 January 2009 to avoid excess inventory. The company made this announcement before trading hours today, 29 December 2008.

Winning Strokes

The Indian bourses are on a roll today. The BSE Sensex is seen trading at 60,351.68 up 607.03 points (+1.02%), while the Nifty was last seen at 17,989.45 up 176.75 points (+0.99%). The optimism surrounding the upcoming union budget is likely to keep the sentiments buoyant. Photo: Zee News

#My recommended A2Z Infra Engineering Ltd (Rs.12.50) hit another buyer Freeze, piggybacking on the EV story.

#The stock of Den Networks Ltd (Rs.44.10) today made a high of Rs.45.15. This debt free Mukhesh Ambani group company, should give decent returns over a period. Hold.

#Buy UCO Bank Ltd at Rs.13.45, for targets of Rs.19/21. Meanwhile, there were media reports that the government of India has proposed to recapitalize public sector banks (PSBs) which have emerged from the Reserve Bank of India’s (RBI’s) prompt corrective action (PCA) framework and may need additional funds to strengthen their books. It would be pertinent to mention here that the finance ministry in all probability will finalize the last round of capital infusion for PSBs early next year and will look into the requirements of each bank, especially weak ones that are still under PCA or have recently been out. The budget for FY22 had allocated ₹20,000 crore for bank recapitalization, but a large part of it is yet to be disbursed. It is expected to be released in Q4.

#The stock of Shriram EPC Ltd (Rs.11.15) went for a routine correction today, after a long run up. The new promoters are likely to bring in an open offer to acquire stake. Accumulate on declines. Also, FERA companies generally command high valuations. 

#The stock of Marshall Machines Ltd today made a high of Rs.43.60. This is a new age company, and its technology can be used in the making of EVs. Hold.

#The stock of RBL Bank Ltd (Rs.139) today made a high of Rs.140.80. I'm bullish on the banking sector, since any improvement in economy will have a direct positive bearing on the Sector. We can look for targets of Rs.191/196, in the coming weeks. Hold.

#The stock of BF Utilities Ltd (Rs.406) today made a high of Rs.411.45. We can look for targets of Rs.441/472 in the coming days. Hold.

#The stock of Bombay Rayon and Fashions Ltd (Rs.8.70) is on a steady upmove. Accumulate the shares for targets above Rs.50. The company is doing fine, after capital Infusion and from the next fiscal we may start to see positive financials. 

Market Mantra

United Breweries Ltd recommended around Rs.732-733, today touched Rs.851.70. The scrip was recommended a couple of weeks back on some positive development in the company. 

HDIL and JP Associates Ltd which were recommended reached their respective 2nd targets of Rs.39. It is time to book at least 80% profits in both and wait for the ultimate targeta of Rs.42 in both the scrips. Meanwhile if HDIL closes above Rs.44, then we could see a rally upto Rs.51. 

Today's Call: Buy Dena Bank Ltd at Rs.48.30, T--Rs.62, SL-Rs.41.80. Among the public sector banks, this is one of the best banks. In the June, 2013 quarter its EPS is Rs.5.40, which gives a natural target of Rs.110-115 for the scrip in the short term. The scrip of SAIL is not performing even through INR is doing fine. Hence, if one wants to interchange it with Dena Bank Ltd, they can do it. 
Manappuram Finance Ltd today touched Rs.17.85 and is now trading at Rs.17.50. As long as the gold price does not crash, this stock is expected to move up slowly. Moreover, there is around only 2% delinquencies, and hence, there is much safety in the counter. My close sources, the company is expected to post better results in Q2FY13, compared sequentially. According to a marketman, when gold prices move up, 1stly, the NPL of the gold loan companies, start to come down, i.e  the recovery rates start to move up. 2ndly, the amount which one can disclose on a similar quantum of gold, starts to move up. So overall gold prices moving up is positive and that is what the market is trying to price in.
Karnataka Bank Ltd which was recommended around Rs.78-79, today touched the 2nd target of Rs.88. In a similar way, B F Utilities Ltd touched its first target of Rs.139 (intra-day high of Rs.141)

WINNING STROKES: THINK DIFFERENT:

[Updated with inputs on ASM Technolgies Ltd and Ram Informatics Ltd]

As mentioned yesterday, the fact that the Nifty is above 2900 and 2950 is a great sign of relief for the bulls. With the war hysteria now nosediving, Government coming up with Second Fiscal Package to pump prime the economy, inflation tiger caged long back, and RBI thinking of further cutting of interest rates, anyone can guess where the market is heading in the next few trading sessions.

One of the most interesting part of today's market is the advance decline ratio, which is 1641 advances against 834 declines on the BSE.

Today most of the banking stocks did well as was mentioned in the morning report to the Paid Groups-- SBI, Yes Bank, Dena Bank, DCB Ltd, etc closed in the green.

As was mentioned in the Sunday

Report the market heavy weight Reliance Industries Ltd moved up today, on the news of the spurt in the Oil prices and also due to expected fiscal package from the government. The morning recommended Selan Exploration Technologies Ltd did well today.

My Sunday Report Recommendation, XL Telecom Ltd hit the buyer freeze today with good volumes. The Sunday Report recommendations have given consistent returns in the last few months time frame, except one or two weeks.

English Indian Clays Ltd hit the buyer freeze in the early trade due to great future of the company going forward. The company is coming up with Rights Issue at Rs.1000 per shares.

My recommended U B Engineering Ltd hit the buyer freeze, in the late trade. The stock was recommended in the Morning mail to the Paid Groups. It is from the Vijay Mallya group of companies and hence has high pedigree. It was also earlier recommended in the Free Group, SumanSpeaks.

Refex Refrigerants Ltd recommended during the market hours to both the Paid and Free Groups hit the buyer freeze.

My today's morning recommendation Selan Exploration Technologies Ltd hit the buyer freeze. The stock moved due to the rise in the crude oil price.

Today some of the shipping counters did well as was mentioned in the Morning Report. Essar Shipping, which was mentioned in the Morning Report hit the buyer freeze. Chowgule Steamships Ltd and Srinivasa Shipping and Property Developments Ltd (SSDPL) moved up intially before cooling down a bit. Both the scrips are expected to give good returns to the shareholders.

My Recommended KEC International Ltd, MIC Electronics Ltd (Quickie Call) and BGR Energy Systems Ltd did well today.

My earlier recommended Energy Developments Ltd, Electrotherm Ltd, BF Utilities Ltd, Zicom Securities Ltd, HDIL, Kolte Patil Developers Ltd, etc. did well today.

Keep adding Vijay Shanti Builders Ltd, Ennore Coke Ltd, Sunflag Iron and Steels Ltd. Incidentally Kohinoor Broadcasing Corporation Ltd hit the buyer freeze.

ASM Technologies Ltd (BSE Code-->526433), which has been dubbed as mini-Infosys Technologies by me, almost hit the buyer freeze, yesterday, just on the eve of Second Fiscal Package, from the government of India. This time it is widely expected that the fiscal package from the government would include the Information Technology sector as well. Hence I had askd all to invest in the Infosys Technologies Ltd and Wipro Ltd in the morning mail.

In the same line one can also start accumulating Ram Informatics Ltd (BSE Code-->530951) at the CMP of Rs.6.22. The stock is near its 52-week low price and hence have very little downside. Kajal Devgan holds good number of shares of the company. The stock is clocking an average delivery volume of around 90% in the last few trading sessions, indicating the accumulation of the scrip by some groups of investors. If we look at the Charts we would find that the stock is in the highly oversold territory and has not broken the down the envelop pattern. Moreover, Bollinger Bands and MACD are indicating immediate rise in the price of the scrip. Also, a crossover is likely to take place which could take the scrip to around Rs.10--Rs.11 in the next few trading sessions. Besides, if we look at the results of September, 2008 quarter we would find that Ram Informatics Ltd did well, when the IT sector was going through a turmoil. In the next few months the company would do significantly well in the view of the company's expertise in the Election Management Software. During the September 2008, quarter, the company signed Citizen Services Centres agreement with the Government of Andhra Pradesh. In early December, 2008, Ram Informatics Ltd, received Work Order fromVisakhapatnam Port Trust, Information Technology Division for positioning of Software Personnel for Development and Maintenance of Visakhapatnam Port Trust Application Software for a period of Two years. This will bring greater strengths and revenues to the Company. THE COMPANY FROM THE LAST MAY, 2008 TO DECEMBER, 2008 RECEIVED A SPATE OF ORDERS WHICH WAS UNNOTICED BY THE MARKET PARTICIPANTS. THIS HOWEVER, CANNOT CONTINUE FOR LONG AND LIKE MY EARLIER RECOMMENDATION OF ASM TECHNOLOGIES, from the same sector (Information Technology or IT), which is doing absolutely fantastic, THIS SCRIP IS BOUND TO RISE ABOVE Rs.11 in the next few trading sessions.

Interest rate sensitive sectors led the rally on the bourses on hopes of further cut in interest rates by the central bank and on a likely second government stimulus package for the economy. However, a sharp slide in index heavyweight Reliance Industries (RIL) in late trade pulled the key benchmark indices off the higher level. The BSE 30-share Sensex advanced 182.64 points or 1.92% at 9716.16, off 68.88 points from the day's high. Firm European markets and higher US index futures lifted sentiment.

However volatility was high as it has been in the past few days. Index heavyweight Reliance Industries (RIL) was responsible for the volatility in the market. Stocks surged in early trade on hopes for a second government stimulus package for the economy, expectations of further reduction in interest rates and on firm Asian stocks. Selling pressure in index heavyweight Reliance Industries (RIL) pulled the market into the red shortly.

The market moved in narrow range in early afternoon trade as some Asian markets slipped into the red from green. Higher US index futures and firm start of European bourses lifted the domestic bourses, with the Sensex surging 251.52 points or 2.63% in late trade. A sharp slide in RIL pulled the market off the higher level later.

Trading in US index futures indicated, the Dow could rise 42 points at the opening bell, after the US government said late on Monday, 29 December 2008, it was pumping $5 billion into General Motors' (GM) auto and mortgage financing arm GMAC and lending an additional $1 billion to GM to help it buy shares in GMAC, which is considered crucial to GM's survival. The loan to GM would come on top of assistance extended to the No. 1 US automaker earlier this month.

The US government agreed on 19 December 2008 to rescue GM and Chrysler LLC with up to $17.4 billion in loans to stave off a collapse that would have cost hundreds of thousands of jobs and dealt a severe blow to an economy already in recession. GMAC has lost $7.9 billion over the last five quarters as the global credit crunch lifted its borrowing costs sharply and the value of many of its assets plunged.

Oil and bank stocks led rally in European markets. Key benchmark indices in Germany, France and UK were up by between 0.97% and 1.84%.

Asian markets were mixed. Key benchmark indices in Japan, South Korea, Taiwan were up by between 0.62% and 3.91%. However, indices in China, Singapore and Hong Kong were down by between 0.56% and 0.95%. Earlier in the day, gains in resource firms that could benefit from a sharp rebound in oil prices, had triggered a broad-based rally in Asian stocks.

Closer home, Planning Commission Deputy Chairman Montek Singh Ahluwalia on Monday, 29 December 2008, said the government will come out with a second stimulus package for this fiscal and another package for fiscal year 2009-10 in the next few days to spur economic growth. With industrial production contracting by 0.4% in October 2008, for the first time in 15 years, and the exports declining by over 12% during the month, the government came out with a stimulus package on 7 December 2008 to spur growth and help the industry combat the impact of global financial meltdown.

As part of the stimulus package, the government cut excise duty by 4% across the board, except on petroleum products, and announced raising of the public expenditure by Rs 20,000 crore to boost demand.

Meanwhile, Prime Minister Manmohan Singh has reportedly directed the Reserve Bank of India (RBI) to reduce the mandatory cash reserve ratio (CRR) for banks and short-term interest rates. Reports suggest that the RBI may cut the CRR by one percentage point that will give banks more headroom to lend. It may also slash the short-term lending rate (repo rate) and the short-term borrowing rate (reverse repo rate) for banks by half percentage points each.

The BSE 30-share Sensex advanced 182.64 points or 1.92% at 9716.16. The Sensex opened 91.61 points higher at 9,625.13. The Sensex gained 251.52 points at day's high of 9,785.04 in late trade. At the day's low of 9,494.70, the Sensex lost 38.82 points in midmorning trade.

The S&P CNX Nifty advanced 57.30 points or 1.96% at 2979.50, retreating from an intra-day high of high of 2999.15. Nifty January 2009 futures were at 2975, a discount of 4.5 points from the spot closing.

The BSE Sensex has risen 387.24 points or 4.15% in last two trading days. Before the recovery, the Sensex declined 770.99 points or 7.63% in four trading days to 9,328.92 on 26 December 2008 from a recent high of 10,099.91 on 19 December 2008.

The barometer index is down 10570.83 points or 52.10% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 11490.61 points or 54.18% below its all-time high of 21,206.77 struck on 10 January 2008.

All the sectoral indices on BSE logged gains. The BSE Auto index (3.09%), the BSE Realty index (up 3.48%), the BSE Capital Goods index (up 2.92%), the Bankex (up 2.24%), the BSE Teck index (up 2.73%), the BSE IT index (up 2.40%), the BSE Power index (up 2.38%), outperformed the Sensex.

The BSE FMCG index (up 0.32%), the BSE PSU index (up 1.20%), the BSE Consumer Durables index (up 1.12%), the BSE HealthCare index (up 0.98%), the BSE Metal index (up 1.86%), and BSE Oil & Gas index (up 0.51%), underperformed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On BSE, 1633 shares advanced as compared with 821 that declined. 80 shares remained unchanged.

The BSE Mid-Cap index advanced 2.18% to 3,216, outperforming the Sensex. The BSE Small-Cap index gained 1.79% to 3,635.48, underperforming the Sensex.

Grasim was the lone loser from the 30-member Sensex pack. Shares of the diversified firm lost 1.16% to Rs 1233.60.

Jaiprakash Associates (up 6.01%), Ranbaxy (up 4.09%), and Reliance Infrastructure (up 4.06%), edged higher from the Sensex pack .

India's fourth largest IT exporter by sales Satyam Computer Services jumped 8.67% to Rs 161.10, extending yesterday's (29 December 2008) 9.41% rally helped by a newspaper report that private equity players were eyeing a stake in the company. It was the top gainer from the Sensex pack. As per reports, some institutional investors in Satyam had approached IT firms and private equity players for a stake sale.

Satyam shares are down almost a third since an aborted attempt two weeks ago to buy two firms in which management held stakes. Satyam on Monday, 29 December 2008, said three more independent directors, Krishna Palepu, Vinod Dham and Mendu Rammohan Rao, had quit. On Friday, 26 December 2008, the company announced the resignation of independent director Mangalam Srinivasan.

Other IT pivotals also logged gains on a weaker rupee. India's second largest IT exporter by sales Infosys rose 1.41% to Rs 1126. India's fourth largest IT exporter by sales Wipro gained 2.99% to Rs 234. India's largest IT exporter by sales Tata Consultancy Services advanced 0.27% to Rs 478.15.

Rolta India surged 4.26% to Rs 115.75 on acquiring a US firm which provides IT solutions to oil and gas refineries.

The partially convertible rupee was at 48.55 per dollar against its previous close of 48.41/44. A weaker rupee boosts margins of IT pivotals as they derive majority of their revenue from exports to the US.

India's second largest cellular services provider by sales Reliance Communication (RCom) advanced 7.16% to Rs 228.10 after the company said it had spent Rs 10000 crore ($2.1 billion) on expanding GSM services across India, and expects to spend a further Rs 2000-4000 crore on building 3G networks.

RCom also said during trading hours it had repurchased zero coupon foreign currency convertible bonds worth Rs 121 crore ($25 million) at a discount of 52.5%.

Idea Cellular surged 8.02% to Rs 53.85 on its plans to invest Rs 300 crore in the next 15 months to grow its business in Karnataka.

India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) gained 0.13% to Rs 1248.95, after its unit Reliance Petroleum started processing crude at its 5,80,000 barrels per day refinery last week. But the stock came sharply off the day's high of Rs 1272 struck in late trade. At the day's high, the stock had risen 1.98%. The stock witnessed a wild gyration during the day. It hit a low of Rs 1228.20.

Banking shares advanced on speculation falling bond yields and lower rates would accelerate loan growth and profitability. India's largest private sector bank by net profit ICICI Bank rose 3.05% to Rs 458.05. India's second largest private sector bank by net profit HDFC Bank gained 1.51% to Rs 1018.15. India's biggest bank in terms of total assets and branch network, State Bank of India, vaulted 1.35% to Rs 1288.85.

Auto shares gained on reports the government is likely to remove an additional excise duty of Rs 10,000-20,000 on large cars and sports-utility vehicles as part of the package for the automobile industry which is facing downturn in sales for want of cheap retail credit. India's biggest commercial vehicles maker by sales Tata Motors rose 4.91% to Rs 156.10, India's biggest small car maker by sales Maruti Suzuki India gained 3.72% to Rs 517.60 and India's top utility vehicles maker by market share Mahindra & Mahindra advanced 5.75% to Rs 270.45. The additional duty was imposed in June this year.

Realty shares gained on hopes of further sops in the second government stimulus package to boost the ailing sector. DLF (up 3.16%), Unitech (up 4.35%), and Indiabulls Real Estate (up 4.57%), gained.

India's largest power generation firm by sales NTPC gained 2.48% to Rs 181.60 on reports it is one among the companies that have submitted bids for the 4,000 megawatt Tilaiya Ultra Mega Power Project in Jharkhand.

India's largest copper producer by sales Sterlite Industries advanced 4.82% to Rs 265.05 tracking a 2.87% rise in American depository receipt overnight.

India's largest engineering and construction company by sales Larsen & Toubro gained 3.90% to Rs 770 on hopes that lower interest rates would keep order flows strong and aid project funding.

India's largest power equipment maker by sales Bharat Heavy Electricals (Bhel) rose 2.01% to Rs 1373.95, extending yesterday's (30 December 2008) 3.60% rise after the company said on Friday, 26 December 2008, it had secured a Rs 5,040-crore contract from Jindal Power for setting up 2,400 megawatt power plant in Chhatisgarh.

PSU OMCs were mostly lower on reports the government is considering passing on the benefit of the fall in international crude oil prices to consumers by cutting petrol and diesel prices. HPCL (down 0.05%), and IOC (down 0.17%), slipped. However, BPCL gained 1.29%. Reliance Industries topped the turnover chart on BSE with turnover of Rs 371.76 crore followed by Bajaj Hindusthan (Rs 278.33 crore), Satyam Computer Services (Rs 269.60 crore), Reliance Communication (Rs 150.74 crore) and Reliance Capital (Rs 142.39 crore). Bajaj Hindusthan was the volume topper on BSE clocking volume of 4.32 crore shares followed by Unitech (2.71 crore), Reliance Natural Resources (2.33 crore), Suzlon (1.91 crore) and Satyam Computer Services (1.72 crore).

Sun TV Network jumped 8.58% to Rs 183.45. The company recently said its movie division will produce a mega-budget Rajinikanth starrer Tamil film Endhiran. The film, set to cost a whopping Rs 165 crore, is the highest budgeted Indian film till date.

Electrotherm India jumped 20% to Rs 128.40 on board's approval to spin off its engineering business into a new entity - Electrotherm Engineering & Projects.

Oil fell below $40 on Tuesday, 30 December 2008, as demand concerns overshadowed Middle East crude supply fears amid the Israeli-Hamas conflict, with prices on track to end the year down 60%, their biggest annual loss on record. US crude was down 24 cents at $39.78 a barrel, after having gained almost 1% earlier in the day.

Crude jumped as much as 12% on Monday, 29 December 2008, after Israel launched its fiercest air offensive in the Hamas-ruled Gaza strip in decades and prepared for a ground assault, raising fears that enraged Arab crude-producing neighbours would react.