Market Outlook 20th Nov 2009

 

 

NIFTY FUTURE LEVELS
SUPPORT
4972
4939
4907
RESISTANCE
4997
5016
5050
5115
5148
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Strong Futures
This is list of 10 Strong Futures: Sesa Goa, Jindal Saw Steel, McDowell-N, PFC, Hind Zinc, MLL, Orient Bank, Tata Motors, IDFC & Recltd..
Weak Futures
This is the list of 10 Weak Futures: EKC, Tata Comm, TTML, India Cement, ICSA, Unitech, Idea, Bharti Airtel, GMR Infra & Punj Lloyd
_________________________________________________________________

 

Daily trend of the market is down.
Market has taken resistance at 5050 level and started to come down. And as the trend of the market is still down on daily charts, so it is advisable not to create any long positions in Nifty.
___________________________________________________________

 

NIFTY FUTURES (F & O):
Selling may continue up to 4972-4974 zone for time being.

Hurdles at 4997 & 5016 levels. Above these levels, expect short covering up to 5048-5050 zone and thereafter expect a jump up to 5081-5083 zone by non-stop.

Sell if touches 5113-5115 zone. Stop Loss at 5146-5148 zone.

On Negative Side, break below 4939-4941 zone can create panic up to 4907-4909 zone by non-stop. If breaks & sustains this zone then downtrend may continue and have caution.
 
Short-Term Investors:  
1 Week: Bearish with a SL of 5024.00. Target at 4531.55.
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 4956.00. (08.21 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.
 
BSE SENSEX:
Sell with a SL of 17083.20. Target at 16666.70. 

Short-Term Investors:  
1 Week: Bearish with a SL of 16909.74. Target at 15330.56.
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 AMIT SPINNERS (BSE Cash & BSE Code: 521076) 
Buy with a Stop Loss of 1.63. Above 4.39, it will zoom.
 

Today: May hold on gains.

1 Week: Bearish, surprisingly going up.

1 Month: Bullish, as per current market conditions.

3 Months: Bearish, surprisingly going up.

1 Year: Bullish, as per current market conditions.

 
Buy ROCK HARD PETRO (BSE Cash & BSE Code: 524194) 
Buy with a Stop Loss of 4.47. Above 7.09, 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.

 

SPOT INDEX LEVELS TODAY

	4989.00	( -1.30 %)	-65.70
		1	2	3
Resistance		5040.40	5091.80	5130.15
Support		4950.65	4912.30	4860.90

	16785.65		( -1.25 %)	-213.13
			1	2	3
Resistance			16956.31	17126.97	17248.96
Support			16663.66	16541.67	16371.01

 

FUNDS DATA

FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category	Date	Buy Value	Sell Value	Net Value
FII	19-Nov-2009	2056.64	2515.82	-459.18

DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category	Date	Buy Value	Sell Value	Net Value
DII	19-Nov-2009	1235.81	1119.02	116.79

 

Interesting findings on web:
U.S. stocks extended a global drop as concern grew that the rally has outpaced the prospects for economic growth. The yen and the dollar strengthened, oil tumbled and yields on Treasury three-month bills turned negative for the first time since financial markets froze last year.

U.S. stocks slid on Thursday as another batch of economic data pointed to the fragility of the recovery and a brokerage's dim view on the semiconductor sector hit technology shares.

The Dow Jones industrial average .DJI shed 93.87 points, or 0.90 percent, to end at 10,332.44. The Standard & Poor's 500 Index .SPX slid 14.90 points, or 1.34 percent, to 1,094.90. The Nasdaq Composite Index .IXIC dropped 36.32 points, or 1.66 percent, to 2,156.82.

RUSSELL585.68-14.47-2.41%

TRAN3956.09-72.53-1.8%

UTIL370.7-4.96-1.32%

S&P 100510.35-6.19-1.2%

S&P 400691.39-14.50-2.05%

NYSE7117.64-109.07-1.51%

NAS 1001773.19

The Labor Department released its weekly report on initial jobless claims, showing that the number of claims was unchanged from the prior week.

The government said that jobless claims totaled 505,000 in the week ended Nov. 14. This was very close to the forecast of 504,000 claims, according to a consensus of economist opinion compiled by Briefing.com.

"Claims remain high enough to signal further payroll declines, but they are heading in the right direction," Ian Shepherdson, chief U.S. economist at High Frequency Economics, wrote in a note to clients. "[W]e are sticking to our view that employment will level off in the first half of next year, perhaps as soon as the end of the first quarter," he said.

A report on leading economic indicators showed an increase of 0.3% in October, below the 0.4% forecast and the 1% rise in September. The Philadelphia Federal Reserve survey, a reading on regional manufacturing, rose slightly.

There was also more disconcerting news in housing. A record one in seven U.S. mortgages were in foreclosure or at least one payment was past due in the third quarter, according to fresh data signaling that the housing market's recovery will be tepid at best.

The U.S. dollar's gain was another headwind for stocks as it pressured prices of natural resources like crude oil and gold, pushing down shares of companies such as Alcoa (AA.N) and U.S. Steel Corp (X.N). The S&P materials index .GSPM shed 1.5 percent as the U.S. dollar index .DXY rose 0.2 percent.

"The market has definitely been trading off the dollar recently," said Ron Kiddoo, chief investment officer at Kozad Asset Management. "I think the stronger dollar is a bigger factor than the jobless claims."

The benchmark S&P 500 suffered its worst one-day percentage fall in three weeks as investors feared that weakness in housing and labor markets would persist, making current stock valuation seem unjustified.

"There's this feeling that the economy has lost momentum from the third quarter," said Bruce Zaro, chief technical strategist at Delta Global Advisors in Boston. "The market gained traction to the downside when the disappointing economic indicators came out."

Stocks slid amid speculation the eight-month, 68 percent rally that drove the valuation of the MSCI World Index to the most expensive level in seven years already reflects forecasts for a 25 percent rebound in corporate earnings next year. The Organization for Economic Cooperation and Development doubled its growth forecast for the leading developed economies next year to 1.9 percent in a report today, while saying that mounting debt burdens will keep the expansion in check.

"It makes perfect sense that the market's going to take a little bit of a breather," said Michael Mullaney, who manages $9 billion at Fiduciary Trust Co. in Boston. "Sentiment had gotten a little too bullish."

The S&P 500 retreated from a 13-month high for a second day even as the Labor Department said the number of Americans filing claims for unemployment benefits held at a 10-month low and the Federal Reserve Bank of Philadelphia's general economic index rose more than estimated.

Rates turned negative on some bills maturing in January, according to Sarah Sobeck, a Treasury trader at primary dealer Jefferies & Co. The three-month bill rate was at 0.0051 percent, the least this year. Six-month bill rates dropped to the lowest since 1958. Treasury bills turned negative last December for the first time since the government began selling them in 1929 as investors scrambled to preserve principal and were willing to sacrifice returns in the months following the collapse of Lehman Brothers Holdings Inc.

Bill Gross, who runs the world's biggest bond fund at Pacific Investment Management Co., said the "systemic risk" of new asset bubbles is rising with the Fed keeping interest rates at record lows.

"The Fed is trying to reflate the U.S. economy," Gross wrote in his December investment outlook posted on the Newport Beach, California-based company's Web site today. "The process of reflation involves lowering short-term rates to such a painful level that investors are forced or enticed to term out their short-term cash into higher-risk bonds or stocks."

Thursday's market sell-off was broad-based, with all but four of the Dow's 30 stocks ending lower. Among other hard-hit sectors were financials, industrials and consumer discretionaries.

Financials also took a hard knock, with the KBW bank index .BKX down 2 percent, while the Dow Jones home construction index .DJUSHB declined 1.7 percent.

Health insurance stocks fell a day after U.S. Senate Majority Leader Harry Reid released an $849 billion healthcare reform bill that analysts said would extend coverage to tens of millions of the uninsured.

Goldman Sachs said in a note the bill may cause problems for managed-care companies regarding profit margin regulation.

The Morgan Stanley Healthcare Payor index .HMO fell 1.2 percent. Even so, the benchmark S&P 500 is up 61.8 percent from its 12-year closing low of March 9.

Intel, the world's largest maker of semiconductors, fell 4.1 percent and Texas Instruments, the second-biggest, dropped 3.4 percent. Dan Heyler, head of Asian semiconductor research at Merrill, said the supply of chips is growing faster than demand, putting earnings at risk. Intel and Texas Instruments were lowered to "neutral" from "buy" and the global chip industry was cut to "negative" from "positive."

Semiconductor stocks in the S&P 500 lost 3.7 percent as a group, the largest tumble among 24 industry groups.

Bank of America-Merrill Lynch cut its 2010 growth outlook for the semiconductor industry on concerns about a rising inventory glut. It downgraded 10 stocks, including Intel Corp (INTC.O), Texas Instruments Inc (TXN.N) and Marvell Technology Corp. (MRVL.O).

Bank of America-Merrill Lynch said notions of a strong rebound for the semiconductor industry next year may not be realistic.

Texas Instruments shares fell 3.4 percent to $24.88 on the New York Stock Exchange, while Marvell Technology Corp (MRVL.O) shares declined 5.1 percent to $15.27 on Nasdaq.

The stock of iPod and iPhone maker Apple Inc (AAPL.O) slid 2.7 percent to $200.51 and was a top drag on Nasdaq.

Tech news took an even gloomier tone after the closing bell as computer maker Dell Inc (DELL.O) reported a slide in quarterly profit. Dell's revenue missed Wall Street's expectations as sales to large business continued to struggle.

Dell's stock fell 6.6 percent to $14.82 in after-hours trading. On Nasdaq, it had closed at $15.87.

Dell (DELL, Fortune 500) said net income fell 54% to $337 million, or 17 cents per share, for the quarter ended Oct. 30. Results included charges of 6 cents per share for cost cutting and other one-time expenses.

Without the charges, the PC maker said it earned 23 cents per share. Analysts polled by Thomson Reuters had forecasted adjusted earnings of 28 cents per share.

Investors have ridden the tech wave since the S&P 500 hit a 12-year closing low on March 9. Shares of Dow component Intel fell 4.1 percent to $19.30 on Nasdaq. The PHLX Semiconductor Index .SOXX dropped 3.4 percent.

The downgrades were a setback for those betting that the technology sector would fare better than others as the recovery takes hold. Chips are essential to a broad range of products, including computers and mobile devices.

Alcoa Inc. declined 3.9 percent for the second-steepest drop in the Dow as aluminum, copper, lead, nickel and tin all retreated.

ConocoPhillips, the third-largest U.S. oil company, slipped 1.9 percent and Chevron Corp. lost 2 percent as crude fell for the first time in four days. Schlumberger Ltd., the world's biggest oilfield-services provider, lost 3.3 percent. Crude for delivery next month tumbled 2.6 percent to $77.50 a barrel.

Energy producers in the S&P 500 fell 2.1 percent as a group, the biggest drop among its 10 industries. Technology shares, the largest group in the index, lost 1.6 percent and contributed the most to the decline.

Bank shares slid after Meredith Whitney, the analyst who correctly predicted in 2007 that Citigroup Inc. would cut its dividend, said lenders "are still grossly overvalued" and reliant on government purchases of mortgage-backed securities.

JPMorgan Chase & Co., the second-largest U.S. bank, and Wells Fargo & Co., the fourth-biggest, each dropped 1.9 percent. The S&P 500 Financials Index slumped 2 percent.

JPMorgan Chase [JPM  42.57    -0.81  (-1.87%)   ] shares fell 1.9 percent after the company announced it is buying the half of European investment bank Cazenove that it doesn't own, in a deal valued at $3.4 billion.

At the same time, Keefe, Bruyette & Woods said JPMorgan is likely to increase its dividend in early 2010 due to its capital position and recent repayment of government bailout money.

Writedowns of mortgage-backed debt contributed to a combined $1.7 trillion of losses by financial companies globally since the beginning of 2007. Mortgage delinquencies have continued to rise as job losses render consumers unable to stay current on their debt payments.

One out of every six home loans insured by the Federal Housing Administration was late by at least one payment and 3.32 percent were in foreclosure in the third quarter, the highest for both since at least 1979, the Mortgage Bankers Association said today.

Retail apparel maker Gap Inc. (GAP, Fortune 500) reported quarterly results that were in line with analysts' expectations. The company said after the closing bell that net income rose by 25% in the quarter on improved profit margins and strong sales at its discount chain Old Navy.

Sears Holdings (SHLD, Fortune 500) posted a narrower-than-expected quarterly loss of $127 million, or $1.09 a share, an improvement from the loss of $146 million, or $1.16 a share, a year earlier. Results were helped by the first increase in same-store sales at its Kmart unit in four years.

JPMorgan Chase (JPM, Fortune 500) said Thursday it was buying the half of U.K. broker Cazenove that it does not already own for about $1.67 billion.

GE shares lost 2.1 percent after Vivendi said it wants to exit NBC Universal, the parent of CNBC, but isn't quite there yet.

"We are not interested in staying onboard a new GE-Comcast ownership of NBCU," said Vivendi CFO Philippe Capron. "[W]e will exit and it will give us more headroom."

As for that tie-up between Reckitt Benckiser and Colgate Palmolive [CL  84.43    -1.44  (-1.68%)   ], both companies say there is no truth to that speculation. Colgate shares dropped 1.7 percent.

Blackstone Group [BX  15.27    -0.28  (-1.8%)   ] is reportedly about to acquire food maker Birds Eye for more than $1.3 billion. Birds Eye would become part of Blackstone's Pinnacle Brands unit, which owns such familiar brands as Duncan Hines and Swanson.

A couple of companies announced job cuts today:

Insurer Aetna [AET  28.66    -0.55  (-1.88%)   ] is cutting 625 jobs, or about 1.8 percent of its workforce.

And Time Warner's [TWX  32.31    -0.51  (-1.55%)   ] AOL unit is expected to lay off about one-third of its workforce as the company is pushing aggressively to cut costs in preparation for its spinoff.

Reports indicated that AOL was asking about 2,500 workers to take voluntary layoffs in an effort to cut $300 million in annual operating costs.

The last remnants of earnings season trickled in, with Sears Holding [SHLD  72.95    -2.82  (-3.72%)   ] providing an upside surprise due to the first positive performance from Kmart in several quarters.

Limited Brands [LTD  17.67    -0.60  (-3.28%)   ] beat analysts' earnings expectations and raised its outlook, helped by an improvement at its Bath & Body Works stores, but its Victoria's Secret brand disappointed.

Williams-Sonoma, [WSM  22.06    1.03  (+4.9%)   ] beat by a wide margin and raised its full-year outlook but Dick's Sporting Goods [DKS  22.49    -2.33  (-9.39%)   ] reported sales declined.

VIX22.631.00+4.62.

Oil,Gold & Currencies:

The price of oil fell $2.12 to settle at $77.46 a barrel.

The price of gold recovered from earlier losses to settle at a record high of $1,141.90 per ounce, up 70 cents from the previous day's closing price.

The dollar was up against all major currencies except the yen. The dollar index (DXY), which gauges the U.S. currency against a basket of rivals, rose 0.2% to 75.32.

Bonds:

Treasury prices rose. The yield on the benchmark 10-year note, which moves inversely to its price, fell to 3.34% from 3.36% late Wednesday.

What to expect:

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

Asia:

Asian stocks fell, dragging the MSCI Asia Pacific Index to its longest losing streak in more than four months, after Merrill Lynch & Co. cut its outlook on the global semiconductor industry and commodities retreated.

Advantest Corp., the world's biggest maker of memory-chip testers, lost 2.6 percent in Tokyo. Sony Corp., the maker of the PlayStation 3 game machine, slid 2.8 percent after pushing back its profitability targets by two years. BHP Billiton Ltd., the world's biggest mining company, slid 1.6 percent, snapping a four-day advance, after oil and metal prices fell.

"It seems investors are rushing to sell off stocks," said Juichi Wako, a senior strategist at Tokyo-based Nomura Holdings Inc. "Since sentiment is bad, any news could drag shares lower."

The MSCI Asia Pacific Index fell 0.3 percent to 117.14 as of 10:02 a.m. in Tokyo. The gauge is headed for a fourth day of declines, the longest losing streak since July 8. The index has dropped 0.9 percent this week.

Japan's Nikkei 225 Stock Average retreated 0.4 percent. The S&P/ASX 200 Index dropped 1.3 percent in Sydney.

Futures on the Standard & Poor's 500 Index dipped 0.1 percent. The index retreated 1.3 percent yesterday, the most since Oct. 30. Intel Corp. and Texas Instruments Inc., the second-largest U.S. chipmaker, slumped after Bank of America Corp.'s Merrill Lynch unit cut its ratings on the chipmakers.

OECD Forecasts

"There's a growing disparity between supply growth and consumption, therefore the downside risk to earnings is increasing," Dan Heyler, Hong Kong-based head of Asian semiconductor research, said yesterday. "We think the supply chain will be aggressively replenished through to March."

He cut Taiwan Semiconductor Manufacturing Co., the world's largest custom chipmaker, to "neutral" from "buy," and United Microelectronics Corp. to "underperform" from "buy."

Crude oil for December delivery retreated for the fist time in four days yesterday, plunging 2.7 percent to $77.46 a barrel in New York. The London Metals Index, a measure of six metals including copper and zinc, sank 1.5 percent.

Stocks around the world have rallied since March amid signs the global economy is recovering from its worst slowdown since World War II. The Organization for Economic Cooperation and Development doubled its growth forecast for the leading developed economies next year to 1.9 percent, the Paris-based organization said in a report yesterday.

The MSCI Asia Pacific Index has climbed 31 percent in 2009, outpacing gains of 21 percent by the Standard & Poor's 500 Index and 24 percent for Europe's Dow Jones Stoxx 600 Index. Stocks in the Asian gauge are valued at 22 times estimated earnings, compared with 17 times for the S&P and 15 times for the Stoxx.

Nikkei 225 9,429.59     -119.88 ( - 1.26%). (07.57 AM IST)

HSI 22453.93 -189.23 -0.84%. (07.58 AM IST)

SSE Composite 3320.61 3292.42 3309.38 3280.18 -0.85. (07.59 AM IST)

Rupee:

The partially convertible rupee INR=IN ended at 46.6850/6950 per dollar on yesterday, weaker than its previous close of 46.20/21.

INDIA:

India's stocks fell the most in more than two weeks on concern a surge in foreign capital inflows will make the currency stronger and cut exporters' competitiveness.

Infosys Technologies Ltd., the second-largest software exporter, retreated 1 percent. Indian IT exporters derive at least 40 percent of earnings from the U.S. Unitech Ltd., India's second-biggest developer, dropped 5.3 percent, while DLF Ltd., the No. 1, slid 3.7 percent.

"A stronger rupee is a concern for exporters," said Vetri Subramaniam, head of equity funds at Mumbai-based Religare Asset Management Co., which manages about $3 billion in assets. The local currency's appreciation against the U.S. dollar has been driven by capital inflows, he said.

The Bombay Stock Exchange's Sensitive Index, or Sensex, retreated 213.13, or 1.3 percent, to 16,785.65, extending losses for a second day as it fell the most since Nov. 3. The S&P CNX Nifty Index on the National Stock Exchange lost 1.3 percent to 4,989. The BSE 200 Index fell 1.4 percent to 2,088.66.

Infosys declined 1 percent to 2,409.95 rupees. Larger rival Tata Consultancy Services Ltd. also slid 1 percent, to 679.9 rupees.

Unitech, India's second-biggest developer, sank 5.3 percent to 81.65 rupees. DLF lost 3.7 percent to 366.25 rupees. Jaiprakash Associates Ltd., a builder of dams, roads and bridges dropped 4.6 percent to 226.55 rupees. Renu Karnad, Joint- Managing Director of Housing Development Finance Corp., the biggest mortgage lender, yesterday said she expects interest rates to rise, or "harden," by the middle of next year.

Rupee's Advance

The rupee has climbed 6.7 percent against the dollar in the past year, according to data compiled by Bloomberg. That reduces the value of sales abroad when converted to the local currency, while increasing the dollar price-tag of exporters' products.

Foreign funds purchased a net 732.5 billion rupees ($15.77 billion) of Indian stocks this year, after being net sellers in 2008. Over the past month, Brazil and Taiwan imposed capital controls to check appreciation in their currencies.

Finance Secretary Ashok Chawla today said the government may take steps to slow funds' entry.

"As the situation evolves we'll see what needs to be done," Chawla said in New Delhi. "As of now, inflows are not a cause for serious concern."

Indian stock markets have been driven higher by foreign inflows and investors need to be "cautious" at these levels, U.K. Sinha, chairman and managing director of UTI Asset Management Co., said yesterday. The Sensex has gained 74 percent this year, set for its best annual performance in 18 years.

'Be Cautious'

"There is no particular domestic news that has led the market to come to this level," said Sinha. UTI, 26 percent owned by T. Rowe Price Group Inc., has $17 billion of assets. "It is primarily driven by foreign inflows. So, if it is only driven by liquidity, then one has to be cautious."

State Bank of India Ltd., the nation's biggest lender, fell 2 percent to 2,281.35 rupees. ICICI Bank Ltd., the No. 2, slid 2.1 percent to 886.45 rupees. HDFC Bank Ltd., the third-largest, lost 1.7 percent to 1,719.55 rupees.

India's central bank has been draining an average daily 1 trillion rupees in the past month, which indicates the amount of excess money held by commercial banks after meeting their lending requirements. The Reserve Bank of India on Oct. 27 took the first step toward withdrawing its record monetary stimulus by ordering lenders to keep more cash in government bonds.

The government also has to reduce its spending to spur the economy "sooner or later" or excess liquidity may sow the "seeds of another crisis," said Sinha.

India plans to spend $8.95 billion in the year to March 31 building networks of roads and telephones, power plants and irrigation facilities. The Reserve Bank has injected 5.85 trillion rupees of cash since September 2008 to protect the nation's economy from the worst global financial crisis since the 1930s.

Banks drop on concerns fin sector reforms may take time

Markets expected to stay volatile in the short term

Foreign fund inflows could slow as year winds down

Indian shares fell 1.25 percent to their lowest close in a week on Thursday, as doubts about the pace of global recovery spooked world markets and a stronger dollar pushed investors away from riskier equities. ICICI Bank (ICBK.BO: Quote, Profile, Research), the country's No. 2 lender, and energy major Reliance Industries (RELI.BO: Quote, Profile, Research), which together account for more than a fifth of the main index, led the fall. "Global economic doubts and the strengthening dollar are not good news for stocks globally and India is no exception," Jayesh Shroff, a fund manager at SBI Mutual Fund, said. He expected market to stay volatile in the short term but remained bullish in the mid to long term as liquidity, which has been driving markets, is still flush.

The 30-share BSE index .BSESN fell 213.13 points to 16,785.65, its lowest close since Nov. 12. All but three components fell. The benchmark has risen about three-quarters this year, boosted by foreign portfolio inflows of $15.3 billion, but fresh doubts about the global economic recovery and a reviving dollar could push investors to other assets.

The dollar climbed further away from 15-month lows, forcing gold prices lower while global equities slipped from the top of their recent range. The dollar index, which tracks the currency against major currencies, was up nearly half a percent .DXY. A six-month low in U.S. housing construction in October and news that Mitsubishi UFJ Financial Group (8306.T: Quote, Profile, Research), Japan's largest bank, will have to raise $11 billion in new shares to meet stricter capital requirements have underscored how the climb back from the worst economic crisis in generations will be slow.

Banks led losses as investors feared the government may delay financial sector reforms, especially the much anticipated rule changes for insurance and pension sector. Bills take time to pass in India and progress in key sectors could drag. Any substantial move on insurance or pensions would send a signal of a renewed effort to modernise the economy.

Top lenders State Bank of India (SBI.BO: Quote, Profile, Research) was down 2.2 percent at 2,280.45 rupees, to a two week low and ICICI fell 2.2 percent to 885.55 rupees, its lowest close since Nov. 9. Reliance dropped 1 percent to 2,081.95 rupees on concerns a weak global economy would hurt demand for oil and petrochemicals. Analysts said foreign fund inflows could slow down as the year winds down. Other emerging markets have also seen a surge in inflows, prompting some, including Brazil and Taiwan, to impose controls. Finance Secretary Ashok Chawla said India was not planning to cap overseas borrowing by corporates, and while flows were being monitored they were not yet a concern.

In the broader market, 1,698 losers led 1,095 gainers, on relatively lower volume of 386.16 million shares. The 50-share NSE index .NSEI shed 1.3 percent to 4,989.

STOCKS THAT MOVED

JSW Steel (JSTL.BO: Quote, Profile, Research) hit its 2009 high of 1,039 rupees after India's No. 3 steel maker and Japan's JFE Steel said they had struck a deal for a production tie-up and may take stakes in each other. The share ended down 0.7 percent at 959.35 rupees after having been up for most of the session.

Suzlon Energy (SUZL.BO: Quote, Profile, Research) rose 2.5 percent to 75.20 rupees after the wind turbine maker said it would cut its stake in unit Hansen Transmissions (HSNT.L: Quote, Profile, Research). The company is placing 35 percent of Hansen's issued share capital through a secondary placement of depositary interest.

Sugar stocks fell sharply after farmers signalled their discontent by protesting low state-controlled sugarcane prices.

Shree Renuka Sugar (SRES.BO: Quote, Profile, Research), Balrampur Chini (BACH.BO: Quote, Profile, Research), Bajaj Hindusthan (BJHN.BO: Quote, Profile, Research) and Triveni Engineering & Industries (TREI.BO: Quote, Profile, Research) fell between 3.5 percent to 6 percent.

MAIN TOP 3 BY VOLUME * Suzlon on 39.93 million shares * Ispat Industries (ISPT.BO: Quote, Profile, Research) on 8.85 million shares. * Unitech (UNTE.BO: Quote, Profile, Research) on 8.52 million shares.

Indian markets extended losses for the second straight trading session on Thursday as traders and investors preferred to book some profits at 5,000 plus levels. After starting off with a negative bias, markets remained under pressure throughout the day.

Weak global cues coupled with offloading seen in the interest rate sensitive stocks dragged the NSE Nifty to shut below the 5000 levels. Even the Mid-Cap and the Small-Cap stocks were not sparred.

The BSE Sensex slipped 213 points to end at 16,785 after touching a high of 17,000 and a low of 16,16712. The index opened at 17,000 against the previous close of 16,998. The NSE Nifty lost 66 points to close at 4,989.

Coming back to India, among the BSE sectoral indices, the Realty index was the top loser, shedding 4.3%, followed by the Banking index that was down 2% and the BSE Metal index was down 1.7%.

The BSE Mid-Cap index ended lower by 1.7% while the BSE Small-Cap index was down by 1%.

Among the 30-components of Sensex, 27 stocks ended in the red and only HDFC, ACC and Wipro ended in the positive terrain. SBI, Reliance Industries, ICICI Bank, Infosys and HDFC Bank were among the top losers.

Outside the frontline indices, the big losers in the broader market were Exide Ind, IB Real, Moser Baer and IVRCL Infra. On the other hand, gainers included P&G, PTC, PFC, United Spirits and GVK Power.

NDTV announced that, NDTV Networks Plc., a UK subsidiary of the company has repurchased the US$100mn Step up Coupon Bonds due 2012. The Bonds have been repurchased for US$72.4mn. NDTV Networks Plc. has financed the repurchase through Bank Loans.

The repurchase has allowed NDTV Networks Plc to significantly reduce its outstanding borrowings and also to cut down on interest burden.

Consequent to the repurchase of the Bonds by NDTV Networks Plc, the restrictive covenants, which were applicable have ceased, allowing NDTV Networks Plc and its subsidiaries flexibility for re structuring and financing the businesses including being able to access bank finances for working capital and other requirements.

Shares of NDTV fell 1.5% to Rs134.05 after hitting an intra-day high of Rs138 and intra-day low of Rs132.55 recording volumes of over 47,000 shares on BSE.

Power Finance announced that a Joint Venture agreement has been signed between the company and NTPC Ltd. Power Grid and Rural Electrification Corporation on November 19, 2009 for incorporating a Joint Venture Company with equal equity contribution (i.e. 25% each) from all the 4 CPSUs.

The Company shall be incorporated to carry out and promote the business of energy efficiency, energy conservation and climate change.

Shares of Power Finance surged by over 3% to Rs253. The stock opened at Rs247 and made an intra-day high of Rs256 and a low of Rs243. Total traded volumes stood at 0.63mn shares.

Shares of BPL shot up by over 8% to Rs43 after the company's Health Management Solutions division inked a strategic alliance with Welch Allyn Inc introduce a range of mercury free medical devices.

Under the alliance, BPL would market and service Welch Allyn's range of diagnostic products in India like Stethoscopes, lights and Blood Pressure measurement.

The next phase of the alliance would focus on product development and manufacturing. These devices which are all US FDA approved are available at price points starting from Rs2,000.

Shares of Mukand surged by over 2% to Rs58 after reports stated that the company plans to sell off a portion of its land-bank to reduce its debt of around Rs15bn over the next one year.

"We plan to sell-off some of our land-bank over the next one year to reduce our debt, which currently stands at around Rs15bn," Mukand Co-Chairman and MD Rajesh Shah said.

The company has land-holdings in Maharashtra, especially in the Mumbai-Pune-Nashik belt and in the southern state of Karnataka.

JFE Steel to form capital alliance with JSW Steel, JFE plans to acquire 10% stake for up to 50bn Yen.

JFE Steel Corp will license technology to JSW Steel to make steel sheets for Japanese Automakers in India according to the Nikkei Newspaper.

Shares of JSW Steel erased early gains and ended lower by 0.6% at Rs959. The stock opened at Rs975 and made an intra-day high of Rs1039 and a low of Rs952. Total traded volumes stood at 3.7mn shares.

Shares of Great Offshore surged by over 3.5% to Rs535 after Bharati Shipyard and ABG Shipyard received approval from the markets regulator for their offer bids to buy additional stakes in the Great Offshore, reports stated.

Shares of Bharati shipyard advanced by 1% to Rs165 on the other hand, ABG Shipyard added 0.6% to Rs203.

Among the Sensex pack 27 stocks closed in red while 3 ended in green. The market breadth indicating the overall health of the market remained weak as 1,682 stocks closed in negative while 1,052 stocks closed in positive while 87 stocks remained unchanged in BSE.

The BSE Sensex closed lower by 213.13 points or (1.25%) at 16,785.65 and NSE Nifty fell by 65.70 points or (1.30%) at 4,989. The BSE Mid Caps and Small Cap also closed lower by 108.44 points and 81.60 points at 6,396.59 and 7,494.79. The BSE Sensex touched intraday high of 17,004.98 and intraday low of 16,712.33.

Gainers from the BSE Sensex pack are HDFC (0.44%), ACC (0.41%) and Wipro (0.08%).

Losers from the BSE Sensex pack are JP Associates (4.53%), Reliance Infra (3.90%), DLF (3.68%), Hindalco Inds (3.46%), Reliance Comm (2.41%), Sterlite Inds (2.22%) and ICICI Bank (2.18%).

BSE REALTY indexwas at 3,828.80 down by 174.68 points or by (4.36%) The main losers were Indiabulls Real down by (5.48%) at Rs.223.4, Hdil down by (5.41%) at Rs.343.45, Unitech down by (5.39%) at Rs.81.65, Orbit Corp down by (4.21%) at Rs.321.75.

BSE METAL index was at 15,878.70 down by 286.53 points or by (1.77%) The main losers were Hindalco Inds down by (3.46%) at Rs.129.85, Jai Corp down by (2.89%) at Rs.223.5, Ispat Inds down by (2.85%) at Rs.20.45, Jindal Saw down by (2.71%) at Rs.815.85.

BSE BANKEX index was at 10,056.79 down by 199.82 points or by (1.95%) The main losers were Iob down by (4.23%) at Rs.110.95, Kotak Mah Bank down by (3.63%) at Rs.785.2, Yes Bank down by (3.4%) at Rs.249.9, Union Bank down by (3.18%) at Rs.261.85, Idbi Bank down by (2.56%) at Rs.123.9.

BSE AUTO index was at 6,873.84 down by 93.75 points or by (1.35%) The main losers were Exide Inds down by (5.5%) at Rs.107.35, Bharat Forge down by (3.76%) at Rs.263.5, Apollo Tyres down by (3.12%) at Rs.52.85, Ashok Leyland down by (2.97%) at Rs.52.2, Escorts down by (2.86%) at Rs.107.15.

BSE TECk index was at 3,035.68 down by 41.44 points or by (1.35%) The main losers were Aptech down by (6.11%) at Rs.174.4, Balaji Tele down by (4.86%) at Rs.55.75, Moser Baer down by (4.52%) at Rs.83.5, Tech Mahindra down by (4.1%) at Rs.974.45.

BSE IT index was at 4,801.35 down by 58.94 points or by (1.21%) The main losers were Aptech down by (6.11%) at Rs.174.4, Moser Baer down by (4.52%) at Rs.83.5, Tech Mahindra down by (4.1%) at Rs.974.45, Rolta India down by (3.78%) at Rs.171.8.

KEC International Ltd closed up by 2.02% at Rs. 537.90 as the company and an RPG group company, has won a rural electrification order in the state of Madhya Pradesh and a substation order in Ghana, Africa.

JSW Steel closed higher by 0.65% at Rs. 959.35 as JFE Steel Corporation, the world renowned Japanese steel company and JSW Steel Ltd have bonded together in a historic collaboration agreement.

Pratibha Industries fell 8.32% to close at Rs. 240.35 despite the Company has secured the contract of ''Circulating Water and Make-up Water System Civil Works Package for Mauda Super Thermal Power Project (2 X 500MW)'' from NTPC Ltd. The total value of the contract is Rs. 58.85 crores.

Wockhardt slipped by 2.86% to close at Rs. 175.20. The company has received final approval from the United States Food & Drug Administration (US FDA) for marketing the 25mg/10 ml injection of Nicardipine HCI.
 
MARKET BUZZ:
 
(May not be useful for day-traders.)

Panasonic Carbon-Value Buy

BSE 508941; CMP Rs 145.45

 
  

With a forecast EPS in excess of Rs 12 for FY10, the Matsushita Japan owned Panasonic Carbon is a value play. Growing urbanisation and wide usage of mobile appliances like search lights, cameras, radio and portable TV and Music systems create a captive market for stored energy devices like batteries-for which Panasonic supplies midget electrodes.

 

Background

 

Panasonic Carbon India Co. Limited (PCIN) formerly Indo Matsushita Carbon India Co. Ltd was incorporated on 6th September, 1982. PCIN entered into a Foreign Collaboration Agreement with Matsushita Group, Japan on 6th January 1982 for obtaining Technical know-how and assistance for manufacture and sale of Midget Electrodes (Carbon Rods).

The supply of quality product plays an important part for every business organization on account of stiff competition throughout the World. Realising this, the Company, since its inception, is committed to provide Quality Carbon Rods (Midget Electrodes) through its advanced technology to various Dry Cell Battery Manufacturers in and outside India.

The Company achieved success by setting up a Quality Management System. A system which ensures commitment of all employees towards compliance of stringent quality standards and also to meet the requirement of customers and achieve higher levels of Customer Satisfaction A committed effort is to give more than what the customer needs from the company's products and services.  A commitment of all employees perfectly guided by the top management of the company. 

As part of this process the Company established the Internationally Accepted Quality Management System and got certified for ISO 9001:2000 Standards in October, 1995. 

Consequently series of, surveillance, inspection and recertification audits have become a part of an annual calendar of activities. This system has been successful in demonstrating company's commitment to quality. 

The Company established Environmental Management System and got certified for ISO 14001 Standards in July 1998. Consequently series of surveillance, inspection and recertification audits have become a part of an annual calendar of activities. This system has been successful in demonstrating company's commitment to environmental Management System.

(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