Market Outlook 19th Nov

 

NIFTY FUTURES LEVELS
SUPPORT
5037
5029
5006
4988
RESISTANCE
5065
5069
5076
5094
5100
5117 

 

Strong & Weak  futures

This is list of 10 strong futures:  

Jindal Saw Steel, Sesa Goa, Renuka , MLL, IDFC, Ashok Ley, McDowell-N, Hind Zinc, Recltd & Neyveli Lignite.  

And this is list of 10 Weak futures:

TV-18, ICSA, Punj Lloyd, Sterling Biotech, TTML, Bharti Airtel, Idea, GMR Infra, India Cement & Tata Comm.

Nifty is in Down trend  

 

 

NIFTY FUTURES (F & O):  

Below 5037 level, selling may continue up to 5029-5031 zone and thereafter slide may continue up to 5012-5014 zone by non-stop.

 

Hurdles at 5065 & 5069 levels. Above these levels, expect short covering up to 5074-5076 zone and thereafter expect a jump up to 5092-5094 zone by non-stop.

 

Sell if touches 5098-5100 zone. Stop Loss at 5115-5117 zone.

 

On Negative Side, break below 5006-5008 zone can create panic up to 4988-4990 zone by non-stop. If breaks & sustains this zone then downtrend may continue and have caution.

 

Short-Term Investors:  

1 Week: Bullish with a SL of 5024.00. Target at 5516.45

1 Month: Bullish with a SL of 4620.00. Target at 6289.00.

 

3 Months: Bearish with a SL of 5080.00. Target at 2951.00.

 

1 Year: Bullish with a SL of 2575.00. Target at 6201.65.

 

Today's Expectation:

SGX NIFTY is trading at 5045.00. (08.12 AM IST)

 

This trend is on expected lines.

 

If this downtrend continues, then it may continue for 1 (or) 2 days.

 

If short covering starts, then it can continue up to 1 day, 1 Week (or) even 1 Month.

 

BSE SENSEX:  

Sell with a SL of 17083.20. Target at 16666.70.  

 

Short-Term Investors:  

1 Week: Bullish with a SL of 16909.74. Target at 18488.92.

1 Month: Bullish with a SL of 14937.03. Target at 18381.96.

 

3 Months: Bearish with a SL of 17361.47. Target at 12425.52.

 

1 Year: Bullish with a SL of 15197.60. Target at 18289.88.

 

BUY:

Buy ROCK HARD PETRO (BSE Cash & BSE Code: 524194)  

Buy with a Stop Loss of 4.47. Above 5.78, it will zoom.

 

 

Today: May hold on gains.

 

1 Week: Bearish, surprisingly going up.

 

1 Month: Bearish, surprisingly going up.

 

3 Months: Sideways, surprisingly going up.

 

1 Year: Bullish, as per current market conditions.

 

Buy MARAL OVERSEAS (BSE Cash & BSE Code:521018)  

Buy with a Stop Loss of 13.90. Above 15.55, it will zoom.

 

Today: May hold on gains.

 

1 Week: Bullish, as per current market conditions.

 

1 Month: Bullish, as per current market conditions.

 

3 Months: Bullish, as per current market conditions.

 

1 Year: Bullish, as per current market conditions.

 

 

FII DATA

FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category	Date	Buy Value	Sell Value	Net Value
FII	18-Nov-2009	2597.45	2185.32	412.13

DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category	Date	Buy Value	Sell Value	Net Value
DII	18-Nov-2009	1091.23	1347.96	-256.73

 

NIFTY INDEX LEVELS

	5054.70	( -0.15 %)	-7.55
		1	2	3
Resistance		5075.45	5096.20	5113.10
Support		5037.80	5020.90	5000.15

	16998.78		( -0.30 %)	-51.87
			1	2	3
Resistance			17078.91	17159.04	17219.29
Support			16938.53	16878.28	16798.15

Interesting findings on web:
   U.S. stocks slipped, pulling the Standard & Poor's 500 Index down from a 13-month high, as technology companies slid after profit forecasts at Autodesk Inc. and Salesforce.com Inc. trailed some analyst estimates.

Stocks closed slightly lower Wednesday, paring deeper losses, after a drop in new home construction made investors jittery about the economic recovery and wary profit outlooks weighed on the technology sector.

The Dow Jones industrial average .DJI dropped 11.11 points, or 0.11 percent, to 10,426.31. The Standard & Poor's 500 Index .SPX dipped just 0.52 of a point, or 0.05 percent, to finish at 1,109.80. The Nasdaq Composite Index .IXIC lost 10.64 points, or 0.48 percent, to end at 2,193.14.

RUSSELL600.15-2.19-0.36%

TRAN4028.62-20.98-0.52%

UTIL375.66-1.42-0.38%

S&P 100516.540.45+0.09%

S&P 400705.89-3.46-0.49%

NYSE7226.71-7.35-0.1%

NAS 1001801.74-10.47-0.58%

The S&P 500 has ended down only three times in the last two weeks.

Stocks opened lower and struggled for most of the day before moving off session lows in the last 30 minutes of trade.

The modest retreat, which came one day after the major indexes closed at their highest levels in 13-months, was sparked by government data that showed initial construction of new single-family homes fell to a six-month low in October.

The unexpected drop came despite government efforts to stimulate the battered housing industry, and highlighted fears that stocks may have gotten ahead of economic reality.

The government reported that housing starts fell more than 10% to an annual rate of 529,000 in October, the lowest level in six months. An annual rate of 600,000 housing starts was expected, according to a forecast from Briefing.com consensus. The revised rate for September was 592,000.

The government reported that the annual rate of housing permits fell 4% to 552,000 in October, from the revised September rate of 575,000. This was lower than the 580,000 permits expected for October, according to Briefing.com consensus.

"A lot of people were betting on a housing recovery," said Abigail Doolittle, a portfolio manager at Johnson Illington Advisors. "The decline in construction starts is probably making some people nervous."

The government also reported its Consumer Price Index, a key measure of inflation, rose 0.3%.

The CPI was expected to rise 0.2% in October, according to a consensus of economists surveyed by Briefing.com.

The core CPI, which excludes volatile food and energy prices, rose 0.2% in October. That was slightly more than the 0.1% increase expected for October, according to Briefing.com consensus.

But with the major indexes up some 30% from the lows of early March, many investors have become reluctant to push the market higher until they see more concrete signs that an economic recovery is underway.

"At the margin, the economic data has been stabilizing," said Lawrence Creatura, a portfolio manager with Federated Clover Investment Advisors. "It's been 'less bad' and that has been enough for investors up to now. Whether 'less bad' continues to be enough remains to be seen."

Analysts said the volume of shares trading hands recently has been low, suggesting that many big investment funds have moved to the sidelines to avoid jeopardizing gains before publishing year-end results.

"Expectations have risen due to the positive earnings season we've had, and companies that are reporting are finding it hard to live up to the high expectations," said Robert Stimpson, a money manager at Oak Associates Ltd. in Akron, Ohio, which oversees $860 million. "There's still a lot of skepticism for the retail investor wanting to buy equities again."

Tobias Levkovich, the chief U.S. equity strategist at Citigroup Inc., increased his 2009 and 2010 year-end estimates for the S&P 500 to 1,100 and 1,150, respectively, based on improving corporate profits and low interest rates.

"I'm only looking for the equity market to consolidate and flatten out for the next three to six months," said Thomas Nyheim, a money manager at Christiana Bank & Trust Co. in Greeneville, Delaware, which manages $4.7 billion.

Per-share earnings topped estimates at 80 percent of S&P 500 companies that have released third-quarter earnings, a record for a full quarter in Bloomberg data going back to 1993, even as profits slumped for a record ninth straight quarter.

Autodesk, the biggest maker of engineering-design software, slid 10 percent after saying job losses in core markets are making the company's recovery "challenging." Salesforce.com, the largest seller of Web-based customer-management software, tumbled 3.1 percent. The market's decline was limited as Bank of America Corp. rallied after John Paulson's hedge fund said the shares may almost double, while takeover speculation lifted Colgate-Palmolive Co. and E*Trade Financial Corp.

Autodesk slid 10 percent, them most in 10 months, to $24.20. The biggest maker of engineering-design software projected fourth-quarter profit excluding some items of 24 cents a share at most, trailing the average analyst estimate of 25 cents.

Salesforce.com lost 3.1 percent to $63.61. The largest seller of Internet-based customer-management software forecast fourth-quarter profit of 14 cents to 15 cents a share. Analysts, on average, expected the company to earn 15 cents, according to Bloomberg survey.

"Technology has been a strong area of the market, and those two results broke the momentum," said Nick Kalivas, vice president of financial research and senior equity index analyst at MF Global in Chicago.

Bank of America, the largest U.S. lender by assets, jumped 3.7 percent to $16.35 for the biggest gain in the Dow average. Paulson & Co., the hedge-fund firm run by billionaire John Paulson, said in a quarterly letter to investors that the shares may rise to $29.81 by December 2011.

Paulson made his comments in an investor note that was reported by Bloomberg News.

"Banks will have passed the current writedown cycle and have visibility for growth in 2012," the letter said. Bank of America dropped to $2.53 in February amid concern that the U.S. might seize lenders that ran short on capital. While Bank of America's stock "has risen from when we purchased the stock, we believe considerable upside remains," the letter said.

Bank of America helped lead financial shares in the S&P 500 to the biggest of three gains among its 10 industry groups. Health-care and telephone shares posted the other advances.

Pall Corp. lost 3 percent to $33.59. The maker of filters for refineries and drugmakers reported first-quarter sales of $546.9 million, missing the average estimate of analysts surveyed by Bloomberg of $573.8 million.

Western Digital Corp. dropped 1.6 percent to $38.45. The second-largest maker of hard-disk drives was cut to "underperform" from "buy" and had its share price estimate lowered to $35 from $44 at Bank of America, which said the "easy money" in cyclical hard-disk-drive stocks has been made.

Pulte Homes Inc. added 4.6 percent to $10.04. The homebuilder that bought competitor Centex Corp. in August was raised to "buy" from "hold" and its share price estimate increased to $12 from $11 at Citigroup Inc., which said the company was "undeservedly out of favor."

Pulte led a gauge of homebuilders higher even after Commerce Department figures showed housing starts unexpectedly plunged 11 percent in October as the sales outlook dimmed with the looming expiration of a government tax credit. The index of 12 builders in S&P indexes climbed 0.7 percent.

While the decline in new construction raised concerns about the recovery, it could bode well for removing remaining inventory from the market, something analysts say must happen for the housing sector to recover.

Colgate-Palmolive surged 3.7 percent to $85.87. The Daily Telegraph reported that Reckitt Benckiser Group Plc is close to a "multibillion pound cross-border transaction" and "well- placed sources" think the most obvious candidate is Colgate- Palmolive.

E*Trade Financial Corp. rallied 9 percent to $1.69. TD Ameritrade Holding Corp.'s chief executive officer said buying an online brokerage is the best use of the company's cash and that he would consider a deal with E*Trade at the right price, according to Reuters.

Techs finished mostly lower but AMD [AMD  7.32    0.70  (+10.57%)], which announced a private debt offering of $500 million, and Analog Devices [AMD  7.32    0.70  (+10.57%)], which was put on Goldman Sachs' "conviction buy" list, advanced.

Tech giant Hewlett-Packard (HPQ, Fortune 500) was among leading decliners on the Dow, while Microsoft (MSFT, Fortune 500) bucked the trend. HP [HPQ  50.44    -0.88  (-1.71%)] was the biggest drag on the Dow, down 1.6 percent.

In other analyst action, Collins Stewart reiterated its "buy" rating on Microsoft [MSFT  30.11    0.11  (+0.37%)].

A bevy of mining and energy shares declined, even as the dollar fell and gold hit a record high above $1,150 an ounce. Freeport McMoRan Copper & Gold Inc (FCX.N) was off 0.8 percent at $84.69, while ConocoPhillips (CVX.N) slipped 0.2 percent to $53.58.

Dell [DELL  16.07    0.12  (+0.75%)] rose 0.7 percent ahead of the computer maker's quarterly results, due out Thursday.

An interesting twist in the Cadbury [CBY  53.42    -0.58  (-1.07%)] saga: Hershey [HSY  37.65    -0.76  (-1.98%)   ] is reportedly considering a joint bid with Italy's Ferrero, famous for its Nutella spread and Ferrero Rocher choclates, for the British chocolatier. Up until now, Kraft Foods [KFT  27.23    -0.41  (-1.48%)   ] was the only bidder but Cadbury wasn't happy with the offer.

In other M&A news, American Express [AXP  41.56    0.20  (+0.48%)   ] agreed to buy Internet-payment company Revolution Money for $300 million.

And Delta Air Lines [DAL  7.76    -0.14  (-1.77%)   ], along with its alliance partners, is offering $1 billion to Japan Airlines to sway the money losing carrier from its affiliation with American Airlines [AMR  5.76    -0.23  (-3.84%)   ].

Retail earnings have been in focus this week as the holiday shopping season approaches.

BJ's Wholesale [BJ  35.64    -0.70  (-1.93%)   ] shares fell nearly 2 percent after the warehouse-club operator reported its quarterly profit dropped 37 percent and said pricing has been "extremely aggressive" heading into the holiday season.

Limited Brands [LTD  18.26    0.23  (+1.28%)   ] will have its quarterly numbers after the closing bell.

JCPenney [JCP  29.14    -0.72  (-2.41%)   ] announced plans to stop publishing its twice-yearly "big book" catalog as more consumers are doing their shopping online.

Toyota [TM  79.47    -0.84  (-1.05%)   ] posted its first year-over-year global sales increase in October in 15 months, with sales rising 5 percent.

VIX21.63-0.78-3.48%.

Oil,Gold & Currencies:

The price of oil rose 56 cents to end at $79.58 per barrel after hitting a high of $80.33 earlier in the session.

Gold rose $1.80 to settle at another all-time high of $1141.20 an ounce. It also hit a record trading high of $1,149.40 an ounce.

The dollar, which has suffered from recent weakness, was down versus all major currencies. The dollar index (DXY), which measures the U.S. currency's value against a basket of rivals, was down 0.3% to 75.14

Bonds:

Treasury prices fell as investors focused on Wednesday's inflation report. The yield on the benchmark 10-year note, which moves opposite its price, rose to 3.36% from 3.32% late Tuesday. 

What to expect:

THURSDAY: EU chooses new president; Fed's Plosser, Fisher speak; Ghosn, Rattner speak; weekly jobless claims; leading indicators; Philly Fed; Geithner speaks; Earnings from Sears, Dell, Gap

FRIDAY: Fed's Plosser speaks; state-by-state jobs report

Asia:

Japanese stocks fell, dragging down the Topix index for a seventh consecutive day, after companies announced plans to sell shares.

Mitsubishi UFJ Financial Group Inc., Japan's largest bank by market value, tumbled 5 percent after announcing plans to sell as much as 1 trillion yen ($11.2 billion) in securities. Nomura Real Estate Residential Fund Inc. plunged 7.5 percent after its proposal to sell stock. Nihon Nohyaku Co. plummeted 15 percent as the maker of insecticides said earnings fell.

"There's no reason to buy into Japan," said Mitsushige Akino, who oversees the equivalent of $450 million in assets in Tokyo at Ichiyoshi Investment Management Co. "Domestic investors are looking more at foreign countries since Japan lacks any clear potential for growth."

The Nikkei 225 Stock Average fell 1.4 percent to 9,541.99 as of 10:13 a.m. in Tokyo, set for the lowest since July 17. The broader Topix index lost 1.7 percent to 835.76, on course for its lowest since April 28, as four times as many stocks declined as advanced.

The Topix has fallen 1.1 percent this year, the only decline among the world's 40 largest equity markets, according to data compiled by Bloomberg. That compares with increases of 23 percent for the Standard & Poor's 500 Index in the U.S. and 26 percent for the Dow Jones Stoxx 600 Index in Europe. The global recession has sapped demand for Japanese companies' products and the stronger yen has hurt exporters.

The ratio of investors who want to be "overweight" Japanese stocks during the next year against those who plan to be "underweight" dropped this month to the level of November 2002, according to a report dated yesterday from Bank of America Corp.'s Merrill Lynch & Co. brokerage.

Banks Slump

Banks fell the most today among the 33 industry groups in the Topix, after Mitsubishi UFJ announced its second share sale since January. The lender lost 5 percent to 460 yen. Mizuho Financial Group Inc. slumped 6 percent to 156 yen, on course for the lowest close since September 2003. Sumitomo Mitsui Financial Group Inc. tumbled 5.3 percent to 2,700 yen, set for its lowest in eight months.

Nomura Real Estate Residential plunged 7.5 percent to 356,000 yen, falling the most since Dec. 11. The company said it plans to raise as much as 11.5 billion yen in new shares.

T&D Holdings Inc. retreated 4.6 percent to 2,060 yen, heading for the lowest since Feb. 19. The insurer had its rating reduced to "neutral" from "above average" at Tokai Tokyo Securities Co.

Nihon Nohyaku plummeted 15 percent to 469 yen, set for the sharpest slide since October 2008. The maker of insecticides and fungicides said full-year net income fell 19 percent to 1.66 billion yen, missing its forecast by 21 percent. It expects profit to further drop this fiscal year.

Nikkei 225 9,584.01     -92.79 ( - 0.96%). (07.49 AM IST).

HSI 22760.91 -79.42 -0.35%. (07.51 AM IST)

SSE Composite 3303.23 3305.03 3329.03 3304.40 + 0.05. (07.52 AM IST) 

RUPEE:

The partially convertible rupee INR=IN ended at 46.20/21 per dollar on yesterday, above its previous close of 46.30/31.

INDIA:

India's benchmark stock index fell, snapping a three-day 2.1 percent gain. ICICI Bank Ltd. slid after HSBC Holdings Plc Chairman Stephen Green said new rules may reduce the amount of credit available.

ICICI Bank, the nation's second-largest lender, declined 1.6 percent after Green said there is a danger that requirements to increase capital held by banks may have the effect of reducing credit in the global economy.

"Investors need to be cautious," said U. K. Sinha, chairman at UTI Asset Management Co., India's oldest money manager. "After September results, nothing positive has happened to drive markets higher."

The Bombay Stock Exchange's Sensitive Index, or Sensex, declined 51.87, or 0.3 percent, to 16,998.78. The S&P CNX Nifty Index on the National Stock Exchange slid 0.2 percent to 5,054.70. The BSE 200 Index was little changed at 2,117.61.

ICICI Bank lost 1.6 percent to 905.50 rupees, while State Bank of India, the biggest lender, slid 1 percent to 2,327.80 rupees. Central bank governor Duvvuri Subbarao on Oct. 27 asked lenders to keep more cash in government bonds.

Mercator Lines Ltd., Great Eastern Shipping Co. and Shipping Corp. of India Ltd., gained after the Baltic Dry Index, a measure of shipping costs for commodities, rose to a 14-month high.

Shippers Gain

Mercator, the only Indian shipping company to list shares in Singapore, climbed 7.9 percent to 61.95 rupees. Great Eastern Shipping, India's second-biggest, added 4.7 percent to 283.45 rupees, while Shipping Corp. of India Ltd., the country's No. 1 sea carrier, rose 3.1 percent to 150.15 rupees.

Pratibha Industries Ltd., an engineering and construction company, surged the most in more than two years after it won an order worth 2.94 billion rupees ($64 million). The shares jumped 17 percent to 259.20 rupees, its biggest advance since April 2006.

Redington (India) Ltd. gained 3.5 percent to 315.95 rupees after 2.2 percent of its equity traded in a single block on the Bombay Stock Exchange.

Index eases 0.3 pct after rising nearly 11 pct in 2 weeks

Robust foreign portfolio inflows should help stocks-traders

Outsourcers gain on the back better prospects, hiring plans

Indian shares snapped a three-day winning streak and shed 0.3 percent on Wednesday as investors took profits after the market had climbed nearly 11 percent in two weeks. Energy major Reliance Industries (RELI.BO: Quote, Profile, Research) led the losses, falling 1.5 percent to 2,102.45 rupees, on disappointment there were no announcements on acquisitions or specific project plans at its annual meeting of shareholders on Tuesday.

The 30-share BSE index .BSESN dropped 51.87 points to 16,998.78, with 18 components closing in the red. "There is resistance coming in as we move towards the level from where we had corrected last month," said Rajen Shah, chief investment officer at Angel Broking.

The index had retreated after hitting nearly 17,500 in October. The benchmark, which fell by more than half last year, is up about 76 percent in 2009 and has more than doubled from a March low. Heavy foreign fund investment of $15.3 billion in 2009 have propelled the market higher and traders are optimistic that a weak dollar will encourage more inflows even as valuations looked expensive.

Indian officials have said on recent occasions they welcomed the inflows, but Finance Minister Pranab Mukherjee on Wednesday also noted that India was ready to deal with theflows if they became a problem. "It is not a matter of concern as we have the system of monitoring," he told reporters. "And whenever we will find that there are some distortion, then we will have the arrangement to counteract it," he said on the sidelines of an event. "Therefore, it would not be disturbing," Mukherjee added.

Outsourcers, which get most of their revenue from exports,were in demand on the back of a pick up in hiring plans as their business environment improves. Traders said better demand from banking, financial services and insurance companies were helping outsourcers. Infosys (INFY.BO: Quote, Profile, Research) and Wipro (WIPR.BO: Quote, Profile, Research) climbed 1.5 percent and 0.5 percent respectively, but sector leader Tata Consultancy (TCS.BO: Quote, Profile, Research) erased early gains and slipped 0.5 percent.

Banks faltered after an early rise as investors locked in profits after a big rally this month. Top lender State Bank of India (SBI.BO: Quote, Profile, Research) shed 0.9 percent to 2,330.60 rupees, but is still up more than 6 percent in November. Rival ICICI Bank (ICBK.BO: Quote, Profile, Research) fell 1.5 percent to 905.25 rupees after rallying more than 14 percent this month.

Engineering and construction firm Larsen & Toubro (LART.BO: Quote, Profile, Research) dropped 1.7 percent, but is up 7 percent in two weeks.

In the broader market, gainers led losers in the ratio of 1.4:1 on relatively moderate volume of 404 million shares. The 50-share NSE index .NSEI closed down 0.15 percent at 5,054.70.

STOCKS THAT MOVED

State oil marketing companies Indian Oil Corp (IOC.BO: Quote, Profile, Research), Bharat Petroleum Corp (BPCL.BO: Quote, Profile, Research) and Hindustan Petroleum Corp (HPCL.BO: Quote, Profile, Research) fell between 0.5-2.4 percent as oil rose towards $80 a barrel. These companies are required to sell retail fuel at state-set low prices.

Steel maker JSW Steel (JSTL.BO: Quote, Profile, Research) rose as much as 7.4 percent on a media report it aimed to raise $300 million to $500 million via a stake sale of about 7 to 11 percent to Japan's Nippon Steel (5401.T: Quote, Profile, Research). The stock erased some gains and closed 4 percent higher at 965.65 rupees, after Nippon denied it was in talks to buy the stake.

MAIN TOP 3 BY VOLUME

Suzlon Energy (SUZL.BO: Quote, Profile, Research) on 12.2 million shares.

Ispat Industries (ISPT.BO: Quote, Profile, Research) on 11.6 million shares.

Mahindra Satyam (SATY.BO: Quote, Profile, Research) on 8.7 million shares.

After rallying for three straight days, bulls seem to have lost some steam as the BSE Sensex ended below the 17,000 mark, however, the NSE Nifty managed to hold on the 5050 mark. 

Weak cues from the Asian and the European markets coupled with selling pressure in the Oil & Gas and the Banking stocks dragged the Sensex to end below the 17,000 levels.

The BSE Sensex slipped 52 points to end at 16,998 after touching a high of 17,098 and a low of 16,958. The index opened at 17,050 against the previous close of 17,050. The NSE Nifty ended flat at 5,054.

Coming back to India, among the BSE sectoral indices, the Oil & Gas index was the top loser, shedding 1%, followed by the Banking index that was down 0.91% and the BSE Capita Goods index was down 0.7%.

Major gainers were BSE Metals index up 1.2% and BSE FMCG index up 0.6%.

The BSE Mid-Cap index ended flat while the BSE Small-Cap index was up by 0.7%.

Among the 30-components of Sensex, 18 stocks ended in the red and 12 ended in the positive terrain. Reliance Infra, L&T, Reliance Industries, ICICI Bank and Grasim were among the top losers. On the other hand, among the major gainers were Tata Motors, Tata Steel, ITC, Infosys and JP Associates. 

Outside the frontline indices, the big losers in the broader market were Mphasis,Exide Ind, Spice Tele, Jain Irrigation and Fin Tech. On the other hand, gainers included Pantaloon Retail, GE Shipping, GTL Infra and Sintex Ind.

Shares of SAIL advanced by 0.5% to end at Rs187. Reports stated that Jharkhand government has agreed to renew the company's lease for the Buddhaburu mine, having reserves of 810mn tons.

The company also announced that it was planning to spend Rs600bn for expansion in next 3 years and the company is also reportedly planning to jointly develop a limestone project at Arki in Himachal Pradesh with a 3MTPA capacity.

BHEL announced that it formed a joint venture with Madhya Pradesh Power Generation for 1600MW power plant. Shares of BHEL ended flat at Rs2275. The stock opened at Rs2273 and made an intra-day high of Rs2283 and a low of Rs2255. Total traded volumes stood at 0.11mn shares.

Union Bank of India plans to raise US$500mn by selling bonds by March; the Chairman M.V. Nair was quoted as saying. The bank plans to use the proceeds to fund its overseas operations.

The stock ended at Rs270 adding 1.7%, it opened at Rs266 and made an intra-day high of Rs271 and a low of Rs262. Total traded volumes stood at 0.11mn shares.

Wockhardt announced that it launched anti-hypertensive drug Nicardipine injections in USA. The stock erased early gains and ended lower by 1.5% at Rs180 after it opened at Rs183. It made an intra-day high of Rs187 and a low of Rs179. Total traded volumes stood at 0.14mn shares.

Shares of Redington surged by over 3% to end at Rs316 after 2.2% of its equity, or ~1.7mn shares were traded in a single block on the BSE. The deal was transacted at an average price of Rs310 per share on the BSE.

The stock opened at Rs307 and made an intra-day high of Rs324 and a low of Rs306. Total traded volumes stood at 1.9mn shares.

Lloyd Electric & Engineering announced that through Janka Engineering s.r.o., (a wholly owned subsidiary company) having its registered seat at Prague, Czench Republic has signed a purchase agreement for the acquisition of assets (no liabilities) with Trademarks and 'JANKA' brand of Janka Radotin a.s., a leading czech based manufacturer of diversified Air Handling Product portfolio well positioned in the Czech market for a total consideration of approx. Euro 3.66mn, which is subject to the adjustment on the closing date.

The stock rose over 2% to end at Rs55.5. The stock opened at Rs54.6 and made an intra-day high of Rs56.85 and a low of Rs53.60. Total traded volumes stood at 0.18mn shares.

Among the Sensex pack 18 stocks closed in red while 12 ended in green. The market breadth indicating the overall health of the market remained strong as 1,598 stocks closed in positive while 1,166 stocks closed in negative while 82 stocks remained unchanged in BSE.

The BSE Sensex closed lower by 51.87 points or (0.30%) at 16,998.78 and NSE Nifty fell by 7.55 points or (0.15%) at 5,054.70. The BSE Mid Caps and Small Cap closed up by 18.57 points and 59.76 points at 6,505.03 and 7,576.39. The BSE Sensex touched intraday high of 17,098.79 and intraday low of 16,958.41.

Gainers from the BSE Sensex pack are Tata Motors (3.14%), Tata Steel (1.68%), ITC (1.61%), Infosys (1.54%), JP Associates (1.06%), DLF (0.67%), Tata Power (0.58%) and Maruti Suzuki (0.52%).

Losers from the BSE Sensex pack are Reliance Infra (3.20%), L&T (1.72%), ICICI Bank (1.47%), RIL (1.47%), Grasim Inds (1.17%), Sun Pharma (1.13%) and SBI (0.88%).

On the global markets front, the Asian markets that opened before the Indian market, closed mixed. Seoul Composite, Shanghai Composite and Taiwan Weighted closed up by 1.13%, 0.62% and 0.43% at 1,603.97, 3,303.23 and 7,766.69 respectively while Strait Times, Nikkei and Hang Seng indices closed lower by 0.72%, 0.55% and 0.32% at 2,745.04, 9,676.80 and 22,840.33 respectively.

European markets, which opened after the Indian market, are trading in green. In London FTSE 100 is up by 0.27% at 5,360.52 and in Frankfurt DAX index is trading higher by 0.52% at 5,808.25 and in Paris the CAC 40 is up by 0.52% at 3,848.92.

BSE REALTY indexwas at 4,003.48 up by 26.46 points or by (0.67%) The main gainers were Sobha Dev up by (5.45%) at Rs.242.65, Anant Raj In up by (2.77%) at Rs.142.6, Housing Dev up by (1.71%) at Rs.363.1, Unitech Ltd up by (1.29%) at Rs.86.3, Ackruti up by (0.76%) at Rs.542.85.

BSE METAL index was at 16,165.23 up by 191.87 points or by (1.2%) The main gainers were Ispat Indust up by (4.21%) at Rs.21.05, Jsw Sl up by (4.03%) at Rs.965.65, Jindal Steel up by (2.92%) at Rs.727.2, Sesa Goa Ltd up by (2.42%) at Rs.368.05, Jai Corp Lim up by (2.22%) at Rs.230.15.

BSE BANKEX index was at 10,256.61 down by 80.47 points or by (0.78%) The main losers were Bank Of Baroda-Pari Passu down by (1.9%) at Rs.533.7, Kotak Bank down by (1.77%) at Rs.814.8, Icici Bank L down by (1.47%) at Rs.905.25, State Bank Of India down by (0.88%) at Rs.2330.6, Federal Bank down by (0.88%) at Rs.235.9.

BSE FMCG index was at 2,846.86 up by 20.72 points or by (0.73%) The main gainers were I T C Ltd up by (1.61%) at Rs.258.7, Unitd Spr up by (0.96%) at Rs.1164.9, Britania In up by (0.82%) at Rs.1675, Godrej Cons up by (0.69%) at Rs.278.7, Nestle Ltd up by (0.28%) at Rs.2647.15.

BSE CD index was at 3,555.65 up by 21.69 points or by (0.61%) The main gainers were Blue Star L up by (0.93%) at Rs.347.7, Rajesh Expot up by (0.78%) at Rs.83.7, Videocon Ind up by (0.7%) at Rs.222.55, Titan Ind. up by (0.55%) at Rs.1386.45.

BSE OIL&GAS index was at 10,120.56 down by 86.07 points or by (0.84%) The main losers were Hindustan Petroleum Corp. Ltd. down by (2.35%) at Rs.338.35, Indian Oil C down by (1.56%) at Rs.293.9, Reliance down by (1.47%) at Rs.2102.45, Bharat Petroleum Corporation L down by (0.45%) at Rs.516, Gail India down by (0.22%) at Rs.385.8.

BSE IT index was at 4,860.29 up by 33.89 points or by (0.7%) The main gainers were Infosys Technologies Ltd.-Ordi up by (1.54%) at Rs.2433.6, Oracle Fin up by (0.99%) at Rs.2259.55, Rolta Ind up by (0.88%) at Rs.178.55, Hcl Techno up by (0.56%) at Rs.338.9, Wipro Ltd. up by (0.4%) at Rs.644.9.

Pratibha Industries Ltd surged 18.27% to close at Rs. 262.15. The company has secured the contract of Meerut Water Supply Project from U. P Jal Nigam, Meerut. The total value of the contract is Rs. 294.30 crores.

Glenmark Pharmaceuticals Ltd advanced 1.49% to close at Rs. 246 after Glenmark Generics Inc, a US subsidiary of the company, settled all pending litigations with the Medicis Pharmaceutical.

Reliance Industries slipped by 1.47% to close at Rs. 2,102.45 despite the company announced the record date for dividend as 27 November 2009 for the 1:1 bonus share issue.

Adhunik Metaliks Ltd. (ADML IN): The Indian manufacturer of steel products plans to sell shares to large investors, the company said in a filing to the National Stock Exchange. The company will sell shares for at least 98.23 rupees apiece, the filing said. The shares rose 0.5 percent to 101.7 rupees.

Housing Development Finance Corp. (HDFC IN): India's biggest mortgage lender said it expects interest rates to "harden" by the middle of next year. Rates may increase by as much as 50 basis points, Joint Managing Director Renu Karnad said in Mumbai. The stock fel 0.5 percent to 2,735.1 rupees.

JSW Steel Ltd. (JSTL IN): India's third-biggest steel producer is close to entering into a strategic alliance with a global steel company that may see the foreign company buy a minority stake and provide technology to help the Indian firm make speciality steel products, the Economic Times reported, citing two people close to the matter. The stock rose 4.1 percent to 965.4 rupees.

Oil & Natural Gas Corp. (ONGC IN): India's largest state- owned oil explorer said billionaire Lakshmi Mittal's exit from a venture in Kazakhstan won't affect the exploration project. ONGC shares rose 0.6 percent to 1,179.85 rupees.

Pantaloon Retail India Ltd. (PF IN): India's biggest retailer is seeking to buy a fast-moving consumer goods company to get a manufacturing base and expand its line of food and personal care private-label products, DNA reported. The stock rose 5.4 percent to 341.4 rupees.

Patni Computer Systems Ltd. (PATNI IN): The software service provider was downgraded to "neutral" from "overweight" at JPMorgan Chase & Co. The stock rose less than 0.1 percent to 476 rupees.

State Trading Corp. (STC IN): India's second-biggest government-owned trading company extended the deadline for a tender to import 10,000 metric tons of rice to Nov. 23 from Nov. 17, a government official, who didn't want to be identified because the information is confidential, said yesterday. State Trading shares fell 0.2 percent to 354.85 rupees.

Reliance May Enter Low-Cost Housing Business, Standard Reports

Reliance Industries Ltd. may enter India's low-cost housing business by 2010, the Business Standard newspaper reported, citing a company official it didn't identify.

The company may use land it owns in special trade zones in Mumbai and near the capital New Delhi to build the housing projects, the newspaper said.

Reliance Industries is India's most valuable company.
 
INVESTMENT VIEW
Abbott Laboratories -Turning Into A Mega Pharma Entity  
  

Abbott Labs has announced it is buying a potential chronic pain drug from PanGenetics BV for as much as $190 million.  

Abbott said the drug is in early-stage clinical testing as a treatment for pain cause by arthritis. If that trial is successful, Abbott may test it against chronic lower back pain, cancer pain, and diabetic nerve pain. It said the drug blocks a chemical called nerve growth factor, or NGF, which is released at sites where tissues are damaged or inflamed.

 

PanGenetics, based in the Netherlands, will receive $170 million upfront from Abbott, and $20 million in milestone payments if the drug advances through development. Abbott said the deal will close before the end of 2009, and while it will take one-time charges related to the deal, the company said it does not need to change its profit guidance for the year.

(Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.)
  

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Arvind Parekh

+ 91 98432 32381