Market Outlook 15th Nov 2009

 

INTRADAY calls for 25th Nov 2009
Buy Maruthi-1599 for 1619-1634+ with sl 1588
Buy HeroHonda-1689 for 1719-1734+ with sl 1674
Buy PirHealth-411 above 416 for 433-445+ with sl 411

Buy Sintex-245 for 273+ with sl 237 [positional]
Buy GodrejInd-207 for 239+ with sl 202 [positional]
Buy NIITLtd-69 for 83+ with sl 64 [positional]

 

NIFTY FUTURE LEVELS
SUPPORT
5069
5060
5045
5038
5023
RESISTANCE
5097
5104
5128
5143
5150
5165
SESAGOA;JSWSTEEL;HindZinc,DenaBk,JindalSaw,JindalSteel

 

The Finance Ministry has set up a working group for suggesting changes in the existing policy on foreign capital inflows by FIIs, NRIs and venture capital funds. The 16-member group will be headed by UTI MF CMD U K Sinha, will also review the current arrangements relating to participatory notes- instruments through which unregistered foreign entities invest in Indian stock markets. (BS)

Federal Reserve officials said record-low interest rates might fuel "excessive" speculation in 

 

Strong & Weak  futures

This is list of 10 strong futures:

Hind Zinc, Dena Bank, Jindal Saw Steel, Jindal Steel, Sesa Goa, McDowell-N, Vijaya Bank, Cipla, M&M & PFC.

And this is list of 10 Weak futures:

EKC, Unitech, Bharti Airtel, Idea, TTML, Rel Infra, Punj Lloyd, GMR Infra, Purva & RNRL.

Nifty is in Up trend  

 

NIFTY FUTURES (F & O):  
Below 5069 level, selling may continue up to 5060-5062 zone and thereafter slide may continue up to 5045-5047 zone by non-stop.

Hurdles at 5097 & 5104 levels. Above these levels, expect short covering up to 5126-5128 zone and thereafter expect a jump up to 5141-5143 zone by non-stop.

Sell if touches 5148-5150 zone. Stop Loss at 5163-5165 zone.

On Negative Side, break below 5038-5040 zone can create panic up to 5023-5025 zone by non-stop. If breaks & sustains this zone then downtrend may continue and have caution.
 
Short-Term Investors:  
Bearish Trend. Problem is that, we are trading above Stop Loss level of 5082.00. Risk is that, if closes above 5082.00 level for consecutive 3 days then traders can expect short covering up to 5201.90 level by non-stop.
If bears can able to control below 5082.00 level, then traders can expect a target of 4842.20 level.
 
Today's Expectation:
SGX NIFTY was trading at 5089.50. (08.14 AM IST).

This trend is surprising and positive too.

If this trend continues, then uptrend may continue for 1 (or) 2 Days, 1 Week, 1 Month, 3 Months (or) even 1 Year.

If Profit Booking starts, then it may continue 1 day.
 
BSE SENSEX:  
Yesterday's fall was surprising, as per technicals. Should recover today. 
Short-Term Investors:
 
Bullish Trend. Target at 17499.70.
Stop Loss is too far on down side, can be placed at around 16666.70.
 

POSITONAL BUY:
Buy MANGALAM TIMBER (BSE Cash & BSE Code: 516007) 
Buy with a Stop Loss of 24.15. Above 29.05, it will zoom.
 

Today: Expect Profit Booking.

1 Week: Bearish, surprisingly going up.

1 Month: Bullish, as per current market conditions.

3 Months: Bearish, as per current market conditions.

1 Year: Bullish, as per current market conditions.
 
Buy MINDTECK (I) (BSE Cash & BSE Code: 517344) 
Buy with a Stop Loss of 22.25. Above 26.75, it will zoom.
 

Today: Expect Profit Booking.

1 Week: Bullish, surprisingly going down.

1 Month: Bearish, as per current market conditions.

3 Months: Bullish, surprisingly going down.

1 Year: Bullish, as per current market conditions.
 
Buy JSW STEEL (BSE Cash & BSE Code: 500228) 
Bullish, as per technicals. Buy with a SL of 980.85. Above 1051.70, it will zoom.
 

1 Week: Bullish, as per current market conditions.

1 Month: Bearish, surprisingly going up.

3 Months: Bullish, as per current market conditions.

1 Year: Bullish, as per current market conditions.
 
Buy SESA GOA (BSE Cash & BSE Code: 500295) 
Bullish, as per technicals. Buy with a SL of 368.00. Above 383.90, it will zoom.
 

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.
 

 

FUND DATA

FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category	Date	Buy Value	Sell Value	Net Value
FII	24-Nov-2009	2351.23	2181.54	169.69

DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category	Date	Buy Value	Sell Value	Net Value
DII	24-Nov-2009	1210.84	1357.67	-146.83

 

SPOT INDEX LEVELS

	5090.55	( -0.25 %)	-13.00
		1	2	3
Resistance		5117.77	5144.98	5177.12
Support		5058.42	5026.28	4999.07

	17131.08		( -0.29 %)	-49.10
			1	2	3
Resistance			17232.12	17333.16	17435.46
Support			17028.78	16926.48	16825.44

 Interesting findings on web:
U.S. stocks fell, pulling the Dow Jones Industrial Average down from a 13-month high, as smaller- than-forecast growth in personal spending spurred concern that consumers are struggling to recover from the recession.

Stocks ended a volatile session with modest losses Tuesday, as the Fed's improved outlook and some signs of improvement in housing tempered a weaker revision on economic growth released in the morning.

The Dow Jones industrial average .DJI dropped 17.24 points, or 0.16 percent, to end at 10,433.71. The Standard & Poor's 500 Index .SPX inched down just 0.59 of a point, or 0.05 percent, to 1,105.65. The Nasdaq Composite Index .IXIC fell 6.83 points, or 0.31 percent, to 2,169.18.

Stocks fell early in the session as revised government data on gross domestic product showed the U.S. economy grew at a slower-than-expected pace in the third quarter.

However, the downbeat mood was tempered after the Fed revised upward its growth expectation for 2010, while minutes of the FOMC's most recent meeting showed officials are increasingly confident about a durable recovery for the U.S. economy.

"You're getting the cross-current of weak revisions to third-quarter data matrixed against the Fed increasing the growth estimates for the economy for the next year," said Jim Awad, managing director at Zephyr Management in New York.

"But the action in the market is moderate going into the holiday weekend and I wouldn't read too much into it."

Financial shares led declines, with JPMorgan Chase & Co. and Bank of America Corp. dropping at least 1.2 percent, after the Federal Deposit Insurance Corp. said the number of "problem" lenders climbed to a 16-year high. Hewlett-Packard Co. slid 1.6 percent after reporting a drop in personal-computer sales. Stocks trimmed losses as Federal Reserve policy makers lowered their unemployment forecast.

"The stock market is skittish," said Michael Holland, who oversees more than $4 billion as chairman of Holland & Co. in New York. "We had mixed economic data points, personal spending is not feeling good and the FDIC making comments on problem banks. Those are all reminders that we're still in the process of healing. Investors are reacting accordingly."

Nonetheless, stocks aren't likely to advance in this thinly-traded pre-Thanksgiving week, said David Levy, portfolio manager at Kenjol Capital Management.

All financial markets are closed Thursday for Thanksgiving. Stocks trade in an abbreviated session Friday.

"Stocks have had a massive run off the March lows and some participants are going to want to lock in profits ahead of the holiday," he said. In addition, investors will be awaiting the results from Black Friday, the day after Thanksgiving and the start of the crucial holiday shopping period, he said.

Benchmark indexes opened lower after the government said personal consumption increased 2.9 percent last quarter, less than the median economist estimate. The economy grew at a 2.8 percent annual rate in the third quarter, slower than first estimated while matching economists' estimates.

The S&P 500 briefly erased its drop as Fed policy makers predicted unemployment, currently at a 26-year high of 10.2 percent, will range from 9.3 percent to 9.7 percent in next year's fourth quarter, down from a June projection of 9.5 percent to 9.8 percent. Minutes from the Fed's last meeting also showed central bankers believe record-low interest rates may cause "excessive risk-taking" in financial markets.

The S&P 500 has soared 63 percent from a 12-year low on March 9, leaving the index valued at more than 22 times its companies' reported operating earnings, near the highest level since 2002, according to weekly data compiled by Bloomberg.

S&P 500 financial shares fell 0.8 percent collectively after the FDIC said that U.S. "problem" lenders climbed to 552 banks at the end of the third quarter and the fund protecting customers against bank failures slipped into a deficit.

Losses in equities were limited today as the Conference Board's consumer confidence index unexpectedly rose to 49.5 in November, topping the median economist estimate. The S&P/Case- Shiller home-price index for 20 cities increased 0.27 percent in September from the prior month on a seasonally adjusted basis, after a 1.13 percent rise in August. The gauge fell 9.36 percent from September 2008, more than forecast, yet the smallest year- over-year decline since the end of 2007.

"We might be seeing some bottom fishing right now," said David Lutz, managing director of equity trading at Stifel Nicolaus & Co. in Baltimore. "Economic data points were mixed, but we had pretty strong consumer confidence and housing numbers."

U.S. home prices rose in September, according to the Standard & Poor's/Case-Shiller index, but the increase was less robust than forecast. Home prices for that month were unchanged, according to a separate report from the U.S. Federal Housing Finance Agency.

The biggest decliners on the Dow were JPMorgan [JPM  42.49    -0.79  (-1.83%)   ], Hewlett-Packard [HPQ  50.22    -0.80  (-1.57%)   ] and Boeing [BA  52.01    -0.62  (-1.18%)   ].

JPMorgan Chase had the biggest drop in the Dow average, falling 1.9 percent to $42.48. Bank of America fell 1.2 percent to $16.10, while Morgan Stanley dropped 1.5 percent to $32.12. Fifth Third Bancorp lost 1.6 percent to $10.01.

Zephyr Management's Awad said there is concern about banks' capital after news that the Fed asked lenders that were part of its "stress tests" to submit plans to repay government money.

Zions Bancorporation had the biggest decline in the S&P 500, dropping 5.5 percent to $13.35. Citigroup Inc. said investors should sell Utah's largest lender after the stock surged 13 percent yesterday on the bank's plan to reduce the value of deferred tax assets and offer to exchange preferred shares for common.

Raw-materials producers in the S&P 500 fell 0.3 percent as a group after copper declined from a 14-month high as the dollar strengthened, eroding demand for commodities as an alternative investment. Crude oil lost $1.54, or 2 percent, to $76.02 a barrel. 

Alcoa Inc., the biggest U.S. aluminum producer, declined 1.1 percent to $12.92.

Hewlett-Packard fell 1.6 percent to $50.19. The world's largest personal-computer maker said PC sales in the fourth quarter ended Oct. 31 were $9.86 billion, a 12 percent drop from a year earlier.

Telephone, health-care and utility stocks in the S&P 500 each gained at least 0.3 percent as a group.

Verizon Communications Inc. advanced 1.7 percent to $31.87, while AT&T Inc. added 1.2 percent to $27.10.

Medtronic Inc. surged 7.3 percent to $43.25 for the steepest gain in the S&P 500. The biggest maker of heart-rhythm devices said quarterly profit increased 59 percent, boosted by higher sales of a new heart stent and diabetes monitoring equipment. The company raised its fiscal 2010 earnings forecast. Boston Scientific Corp. added 4.9 percent to $8.56.

"People are playing defensively here," said Craig Peckham, equity trading strategist at New York-based Jefferies & Co. "Economic data is relatively mixed. Although Case-Shiller showed the economy is in the right direction, we're still not looking at a robust consumer."

Analog Devices Inc. rallied 6.4 percent to $29.74, for the second-biggest gain in the S&P 500. The maker of chips used in cars, consumer electronics and phone networks said that excluding some items, it expects to earn at least 36 cents a share in the fiscal first quarter. That topped the average estimate of 28 cents from analysts in a Bloomberg survey.

National Semiconductor Corp. rose 4.6 percent to $14.45. The maker of analog chips that control power in electronic devices was added to Citigroup Inc.'s Top Picks Live list.

Watson Pharmaceuticals Inc. added 4.2 percent to $37.05, its biggest gain since June. Buckingham Research Group upgraded the maker of generic and urology drugs to "accumulate" from "neutral." David G. Buck, the analyst, said the shares may rise in connection with the company's analyst meeting in January 2010.

Apartment Investment & Management Co. fell 3.6 percent to $13.11. Keefe, Bruyette & Woods rated the operator of apartment communities in 44 states "underperform" in new coverage.

General Electric shares [GE  16.15    0.13  (+0.81%)   ] rose after a massive options trade, which bet the stock will jump nearly 44 percent in the next 13 months.

In other earnings news today: Medtronic [MDT  43.27    2.96  (+7.34%)   ], Hormel [HRL  38.23    -0.66  (-1.7%)   ] and Heinz [HNZ  43.25    0.08  (+0.19%)   ] beat expectations. Barnes & Noble [BKS  22.26    -1.26  (-5.36%)   ] and Borders [BGP  1.73    -0.28  (-13.93%)   ] delivered weak reports and cautioned that the holiday season will be challenging. American Eagle Outfitters [AEO  15.03    0.49  (+3.37%)   ] rose after the teen chain hit its earnings target and said it expected a continued improvement in 2010.

Qualcomm [QCOM  45.56    0.01  (+0.02%)   ] finished flat as the European Commission closed a four-year antitrust case against the chipset maker without levying a fine.

Oil,Gold & Currencies:

U.S. light crude oil for January delivery fell $1.11 to settle at $76.45 a barrel on the New York Mercantile Exchange.

COMEX gold for December delivery rose $1.90 to settle at $1,166.60 an ounce, a new record settle. Gold touched a record trading high of $1,174 in the previous session.

The dollar slipped against the euro and the yen.

Bonds:

Treasury prices rose, lowering the yield on the 10-year note to 3.31% from 3.33% Monday. Treasury prices and yields move in opposite directions.

What to expect:

WEDNESDAY: Weekly mortgage apps; weekly jobless claims; durable goods; personal income; Reuters/U of Mich consumer sentiment; new-home sales; weekly crude inventories; 7-year note auction; Earnings from Deere, Tiffany

THURSDAY: Thanksgiving—all US financial markets closed

FRIDAY: Black Friday—US markets open but NYSE closes at 1pm ET.

Asia:

Asian stocks rose, led by automakers and mining companies, after Australia's central bank said the country's economy had entered a "new upswing" and a Japanese export report beat economist estimates.

BHP Billiton Ltd., the world's largest mining company, added 1.6 percent in Sydney and Fuji Heavy Industries Ltd., the maker of Subaru-brand cars, rose 3.9 percent in Tokyo. James Hardie Industries NV, the top seller of home siding in the U.S., gained 3.1 percent after an index of U.S. home prices rose. Nomura Real Estate Holdings Inc. slumped 3 percent in Tokyo, pacing declines among Japan's property stocks, after Anabuki Construction Inc. filed for bankruptcy.

The MSCI Asia Pacific Index added 0.5 percent to 117.34 as of 11:01 a.m. in Tokyo. The gauge climbed 66 percent from a more than five-year low on March 9 amid signs government stimulus measures were reviving economies around the world.

Australia's S&P/ASX 200 Index gained 0.3 percent, as Ric Battellino, deputy governor of the central bank, said the country's economy had held up "much better than had been expected." The Nikkei 225 Stock Average was little changed at 9,405.18, while South Korea's Kospi Index dropped 0.3 percent.

Futures on the Standard & Poor's 500 Index added 0.1 percent. The gauge lost less than 0.1 percent yesterday as a government report showed personal spending increased less than economists' estimates last quarter. Financial shares retreated after the Federal Deposit Insurance Corp. said "problem" lenders in the U.S. increased to the highest level in 16 years.

Losses were limited as the Conference Board's consumer- confidence index rose in November, while economists had expected a decline. A fourth monthly advance in the S&P/Case-Shiller home-price index also supported the market.

Nikkei 225 9,405.18     +3.60 ( +0.04%). (07.52 AM IST).

HSI 22515.36 +92.22 +0.41% . (07.52 AM IST).

SSE Composite 3223.53 3235.26 3248.34 3200.74 + 0.36. (07.53 AM IST). 

Rupee:

The rupee INR=IN ended at 46.37/38 per dollar on yesterday, above Monday's close of 46.465/475.

INDIA:

Source: Bloomberg.

Indian stocks fell, with the benchmark index declining for the first day in three, as commodity producers dropped on lower metal prices and as most Asian markets including Japan retreated.

Sterlite Industries (India) Ltd., the nation's biggest copper producer, slid 1.8 percent as copper sank on speculation demand may lag behind supply as stockpiles continue to expand. Maruti Suzuki India Ltd. led automakers higher on the expectation they will report higher sales this month.

"Commodity stocks are following global cues," said A.N. Sridhar, a fund manager at Sahara Asset Management Co. in Mumbai. "Since prices are down today we are seeing some weakness in stocks too."

The Bombay Stock Exchange's Sensitive Index, or Sensex, lost 49.10, or 0.3 percent, to 17,131.08. The S&P CNX Nifty Index on the National Stock Exchange declined 0.3 percent to 5,090.55.

Sterlite sank 1.8 percent to 855.65 rupees, after copper for delivery in three months fell as much as 1 percent on the London Metal Exchange. Tata Steel Ltd., India's largest maker of the alloy, retreated 2.5 percent to 558.70 rupees. The U.S. dollar rose today against six major currencies, lowering the appeal of commodities as alternative investments.

Maruti

Maruti, the nation's largest carmaker, climbed 2.5 percent to 1,599.65 rupees. Mahindra & Mahindra Ltd., India's largest maker of sport-utility vehicles, added 2.6 percent to 1,070.30 rupees. Tata Motors Ltd. gained 0.4 percent to 650.05 rupees.

Car sales in India have grown for nine consecutive months this year as a decline in interest rates and easier availability of auto loans boosted demand.

"The rising trend in car sales will continue and November will also be a good month," said Surjit Singh Arora, a Mumbai- based analyst at Prabhudas Lilladher Pvt. "Consumer sentiment remains positive."

Overseas funds sold a net 1.26 billion rupees ($27 million) of Indian stocks on Nov. 20, the Securities and Exchange Board of India said on its Web site. The funds have bought 733.2 billion rupees of stocks since Jan. 1 after withdrawing a record 530 billion rupees in 2008.

DEN Networks Ltd. (DEN IN) dropped 16 percent to 163.40 rupees. The cable television distributor declined below the offer price in its trading debut in Mumbai after an initial share sale. Den raised 3.92 billion rupees selling 20 million new shares.

Hindalco Industries Ltd. (HNDL IN) rose 1 percent to 134.55. India's biggest aluminum producer raised $600 million selling shares to institutional investors, two people involved in the sale said.

Strides Arcolab Ltd. (STR IN) added 2.9 percent to 197.8 rupees. The medicine maker gained after the Economic Times reported General Atlantic, a U.S.-based private equity investment firm, may pay about $100 million to buy a 30 percent to 40 percent stake in a unit. Strides said the report is "speculative," in a statement filed to the Bombay Stock Exchange.

Swaraj Mazda Ltd. (SM IN), a truck maker, gained 3.4 percent to 274.4 rupees after the Economic Times reported that Tata Motors may consider buying a stake in the company. Debasis Ray, a spokesman for Tata Motors, said the report is "speculative."

Source: Reuters.

* Investors lock in gains after 8 pct rise in Nov

* BSE index facing fatigue above 17,000 points - trader

* M&M rises after arm says to bid for $3.5 bln defence deals

Indian shares shed 0.3 percent percent on Tuesday as lower global markets triggered profit taking in stocks such as Reliance Industries (RELI.BO: Quote, Profile, Research) and ITC (ITC.BO: Quote, Profile, Research). Traders said the market, which has gained nearly 8 percent this month, was facing resistance with the pace of a world economic recovery yet to show momentum. The 30-share BSE index .BSESN closed down 0.29 percent, or 49.10 points, at 17,131.08, with 17 of its components falling. "There is fatigue above 17,000. The market clearly lacks triggers," said Nilesh Doshi, president of equities at Techno Shares. Kunal Sukhani, manager of institutional equities at Asian Markets Securities, said weak world markets encouraged investors to lock in profits. The benchmark index has rallied nearly 78 percent in 2009, powered by foreign portfolio inflows of more than $15 billion.

Energy giant Reliance dropped 0.9 percent to 2,176.10 rupees, after its offer to buy a controlling interest in U.S.-based bankrupt petrochemicals company LyondellBasell had sent the shares up 3.3 percent on Monday. Cigarette-to-hotel group ITC fell 2 percent to 263.65 rupees, after rising nearly 5 percent over two days.

Private-sector lender ICICI Bank (ICBK.BO: Quote, Profile, Research), which had added 3.5 percent over two days, eased 1.3 percent to 905.30 rupees. Leading utility vehicle maker Mahindra & Mahindra (MAHM.BO: Quote, Profile, Research) firmed 2.4 percent to 1,067.45 rupees, after the head of its defence systems unit said it would bid for domestic defence projects worth $3.5 billion over the next seven years.

Hindalco Industries (HALC.BO: Quote, Profile, Research), which sources said raised $600 million through sale of shares, erased early losses of 1.5 percent and ended up 1.1 percent at 135.25 rupees.

"The share sale would deleverage its balance sheet and allow it to invest in new capacity," said Pawan Burde, an analyst with PINC Research. In the broader market, losers almost matched gainers on relatively low volume of 356 million shares. The 50-share NSE index .NSEI dropped 0.25 percent to 5,090.55.

STOCKS THAT MOVED

* Truck maker Swaraj Mazda (SWRJ.BO: Quote, Profile, Research) rose 3.9 percent to 275.60 rupees after the Economic Times reported Tata Motors (TAMO.BO: Quote, Profile, Research) was in talks to buy private equity firm Actis's stake in the company.

* Cable television firm Den Networks (DENN.BO: Quote, Profile, Research) fell 16.4 percent to 163.10 rupees on its market debut. The shares opened at 194 rupees, below its issue price of 195 and slid to as low as 149.50.

MAIN TOP 3 BY VOLUME

* Dena Bank (DENA.BO: Quote, Profile, Research) on 12.4 million shares * Unitech (UNTE.BO: Quote, Profile, Research) on 8.1 million shares * Suzlon Energy (SUZL.BO: Quote, Profile, Research) on 7.9 million shares.

Source: India Infoline.

Indian stock benchmarks slipped on Tuesday, taking a cue from global markets, as investors remained a little wary of taking on more risk with only a few weeks left in the year. Valuations too are not too compelling as they were a few months back.

There are a few concerns on how the global economy will shape up in the absence of emergency support measures though governments have promised not to press the 'exit' button too soon. Still, the market may remain firm as the dollar will remain under pressure and drive the trade in risky assets.

The BSE Sensex ended a volatile trading day at 17,098.39, down about 82 points or 0.5% from the previous close. The NSE Nifty shed 25 points or 0.5% to shut shop at 5078.65. The Nifty found support at 5075 and it's near-term trading range is between 4890-5110.

Meanwhile, the non-index counters did relatively better than their heavyweight peers. The BSE Small-Cap index rose slightly while the BSE Mid-Cap index finished flat.

The new listing today, Den Networks was down about 18% at Rs160.35 after touching a high of Rs199.80 and a low of Rs149.50, on the NSE.

The big losers in the Sensex were Tata Steel, Reliance Infra, ITC, Sterlite, ONGC, ICICI Bank and BHEL. The top gainers in the BSE-30 index included Maruti Suzuki, M&M, Bharti Airtel, Hero Honda and Hindalco.

In the Nifty, Jindal Steel & Power was a big loser, along with IDFC, PowerGrid, HCL Tech, Siemens and Suzlon. BPCL, Cipla and Ambuja Cement were the other notable winners in the Nifty.

Outside the main indices, the key losers were Vishal Retail, Sobha Developers, SKF India, Mastek, GMDC, Exide, ISMT and Jubilant Organosys.

Among the top gainers were Indo Tech Transformers, HEG, Max India, Bharat Forge, TV Today, Gujarat Flurochemicals, Chambal Fertilizers, Videocon Industries, Amtek India and Balrampur Chini

The near-term undertone will continue to hinge on global developments. A slew of economic reports are due in the US, which will have a truncated week due to the traditional start to the holiday season. Local event to watch out for is the release of Q2 GDP data, scheduled to be announced on Nov. 30.

Source: Kotak Securities.

Among the Sensex pack 17 stocks ended in red territory and 13 in green. The market breadth indicating the overall health of the market remained flat as 1369 stocks closed in green while 1373 stocks closed in red and 86 stocks remained unchanged in BSE.

The BSE Sensex closed lower by 49.10 points or (0.29%) at 17,131.08 and NSE Nifty ended marginally down by 13 points or (0.25%) at 5,090.55. BSE Mid Caps and Small Caps closed with gains of 14.83 and 27.02 points at 6,500.64 and 7,617.7 respectively. The BSE Sensex touched intraday high of 17,230.86 and intraday low of 17,027.52.

Losers from the BSE Sensex pack are ONGC Ltd (4.50%), Tata Steel (2.76%), Reliance Infra (2.27%), ITC Ltd (2.04%), Sterlite Industries (1.88%), ICICI Bank (1.26%), PNGC Ltd (1.12%), BHEL (1.01%), HDFC (0.89%), Reliance Industries (0.88%) and Grasim Industries (0.71%).

Gainers from the BSE Sensex pack are Maruti Suzuki (2.65%), Hindalco (1.86%), Mahindra & Mahindra Ltd (2.42%), Bharti Airtel (2.25%), Herohonda Motors (2.15%), Hindalco (1.08%), RCom (0.81%), L&T Ltd (0.80%), Infosys (0.75%) and HDFC Bank (0.67%).

On the global markets front, the Asian markets that opened before the Indian market, ended lower on concerns about the economic outlook. Asian Development Bank President Haruhiko Kuroda said on Monday that Asia''s speedy economic recovery relative to the rest of the world is not yet strong enough to withstand tighter monetary policy. Shanghai Composite, Hang Seng, Nikkei 225, Singapore''s Straits Times and Seoul Composite ended down by 115.37, 348.25, 96.10, 17.90 and 12.63 points at 3,223.53, 22,423.14, 9,401.58, 2,779.98 and 1,606.42 respectively.

European markets, which opened after the Indian market, are trading down led by decline in banks. In Paris the CAC 40 is lower by 27.95 points at 3,785.22, in Frankfurt DAX index is trading down by 37.15 points at 5,764.33 and in London FTSE 100 is lower by 24.15 points at 5,331.35.

The BSE FMCG index was at 2,886.87 down by 26.81 points or by (0.92%). The main losers were Itc down by (2.04%) at Rs.263.65, Nestle India down by (1.97%) at Rs.2540.4, Ruchi Soya down by (0.94%) at Rs.84.7, Marico down by (0.54%) at Rs.101.75, Colgate Palmolive down by (0.34%) at Rs.672.85.

The BSE METAL index was at 16,216.72 down by 133.11 points or by (0.81%). The main losers were Tata Steel down by (2.76%) at Rs.557.4, Welspun Gujarat down by (2.75%) at Rs.272.6, Jai Corp down by (2.6%) at Rs.213.2, Ispat Inds down by (2.15%) at Rs.20.45, Jindal Steel down by (2.1%) at Rs.705.2.

The BSE OIL&GAS index was at 10,357.78 down by 82.25 points or by (0.79%). The main losers were Essar Oil down by (1.9%) at Rs.136.9, Ongc down by (1.12%) at Rs.1173.3, Gail India down by (1.06%) at Rs.402.1, Aban Offshore down by (0.9%) at Rs.1363.1, Reliance Inds down by (0.88%) at Rs.2176.1.

The BSE POWER index was at 3,007.13 down by 20.8 points or by (0.69%). The main losers were Reliance Infra down by (2.27%) at Rs.1069.25, Power Grid Corp down by (2.25%) at Rs.104.05, Crompton Greav down by (1.84%) at Rs.381.5, Torrent Power down by (1.76%) at Rs.323.2, Suzlon Energy down by (1.65%) at Rs.71.4.

The BSE AUTO index was at 7,055.84 up by 100.52 points or by (1.45%). The main gainers were Bharat Forge up by (7.16%) at Rs.278.5, Escorts up by (5.34%) at Rs.116.35, Maruti Suzuki up by (2.65%) at Rs.1599.4, Mahindra & Mahindra up by (2.42%) at Rs.1067.45, Hero Honda up by (2.15%) at Rs.1688.1.

The BSE CD index was at 3,525.57 up by 48.78 points or by (1.4%) The main gainers were Videocon Inds up by (6.34%) at Rs.234.9, Blue Star up by (2.07%) at Rs.347, Gitanjali Gems up by (0.3%) at Rs.116.95.

Maruti Suzuki India Ltd gained 2.65% on report that the Company will launch a new van within this fiscal to replace its MPV Versa, whose production has been stopped.

Mahindra & Mahindra Ltd gained 2.42% on reports the company''s defense systems unit will bid for domestic defense projects worth $3.5 billion over the next seven years.

BHEL slipped by 1.01% despite report that it bagged an order for setting up the upcoming 1,980 MW Prayagraj Thermal Power Project (TPP) with Supercritical parameters in Uttar Pradesh, involving three units of 660 MW each.

Reliance Industries Ltd declined 0.88% on report that market regulator SEBI has issued a modified show cause notice regarding the case of alleged insider trading in shares of Reliance Petroleum.

HCL Technologies Limited lost 1.32% despite its strategic partnership with Savvion, the trailblazing business process management company to extend its service focus into the Business Process Management (BPM) Space.

Tata Communications advanced by 0.62%. The company has signed strategic partnership agreements with several of the major telecommunications Operators in the Middle East to construct a new cable system into the Gulf. The new cable will connect the Region directly to the world''s major business hubs and city centres via Tata''s Global Network.
 

INVESTMENT VIEW
Sabero Organics-Value Buy

Sabero Organics Gujarat Limited (SOGL) was established in the year 1991 to manufacture specialty chemicals and intermediates for the crop protection business. It then forward integrated in 1997 into manufacturing crop protection chemicals. In order to have a diversified portfolio, SOGL chose one or two key products in each sector such as Acephate and Monocrotophos (Insecticides), Glyphosate (Herbicide) and Mancozeb (Fungicide). As the company was already manufacturing some of the intermediates for these products, it excelled in the technology for manufacturing organophosphorus and dithiocarbamate products.

Apart from sales of unbranded technical and formulations, the Company also established in 1997 its business of branded agrochemical formulations. It launched a full range of products, which included in addition to its own technical based product, other products such as Ethephon, Cypermethrin, Chlorpyriphos, Dichlorvos, Profenofos, Triazophos, Propiconazole, and Hexconazole etc. The company went public in the year 1994 through an IPO, which was followed up by a Rights Issue in 1997.

SOGL has an extensive manufacturing facility with state-of-the-art sophisticated equipments and PLC based process control. The Company is a signatory to the Responsible Care Program and has extensive facilities for treatment of all wastes to meet statutory environmental standards. It has extensive facilities centered on various methods of treatment & mitigation with redundancy including a biological effluent treatment plant, chemical treatment plant, incinerators, by product recovery plant and multiple effect evaporators. All these facilities were extensively upgraded and expanded in FY09.

The company first started manufacturing Organo Phosphorous Pesticide Intermediates, Phosphorus Trichloride (PCL3), Tri Methyl Phosphite (TMP) & Di Ethyl Thio Phosphoryl Chloride (DETC), in 1994. In 1998, SOGL forward integrated into the manufacture of active ingredients, Acephate and Glyphosate. In 2000, it started production of Mancozeb and also forward integrated into branded formulations, building an all India distribution network. It started exports to asia, Australia & Europe in 1999 onwards. It also then formed subsidiaries in Europe and Australia. In the year 2002 it started manufacturing Monocrotophos and Dichlorovos.

 

It later expanded the export business to Latin America, USA and Africa from 2002 onwards. In the year 2005 it started to manufacture Chlorpyriphos and set up subsidiaries in brazil and Argentina by 2006. It debottlenecked Acephate & Monocrotophos plants in 2008. During the financial year 2008 –09 it undertook a major project to expand Mancozeb, Chlorpyriphos & Glyphosate capacities with majority of the capital investment in Mancozeb.
 

(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