What to do in this painful market ?

I am writing this note amidst the turmoil in the US Market and its consequent effect on Global Markets. Amazing is the global integration which is existing in the current operation of financial market. Few of the veterans had experienced it during Asian Crisis where Long Term Capital Management got busted but the impact was seen less in the Indian Market because of the fact that India was still going through some transformational changes in terms of investment cycles.

Everything started with Sub Prime Mortgages. You would think why there are repercussions of the same in financial market. Financial instruments created in last one decade allow you to leverage a financial institution to a large extent. It’s like me lending you money backed by Assets. I, in turn, go with an instrument called mortgaged security to the market and ask for money so that I can run my business by lending more. This was leveraged to such an extend that the ripple effect of the same is found in Timbaktu too.

Where do we go from here?

Last week, there was fear that large financial institutions would be impacted to a large extent. But it was not believable. There was good analysis provided by a writer in Yahoo Finance who mentioned that the mortgage market is miniscule to impact the financial market. And I guess he was right to a large extent. There are mortgages of the nature of Jumbo, Sub Prime etc. The impact was from the Sub Prime Mortgages where housing loans were provided to a category of Ninja Borrowers. NINJA here means NO INCOME, NO JOB and NO ASSET. If you try to logical think over it, it would be really a small market out of the large pool of asset based mortgages.

Well, I would think that this should settle down soon, now that the biggest Mortgage Lender – Countrywide Financials looks as troubled and there would be someone to bail them out or it would get busted.

Where do we go from here as far as Emerging Markets, especially India, are concerned?

There would a bounce back early next week but there would be one more pain day in the market globally. The Indian Market should settle somewhere between 13500 – 14000. I am not God to accurately predict that but this is my gut feeling based on the emotional play in the market. Moreover, India is fundamentally going through an investment phase where the money has been borrowed a@ LIBOR + 1 % in case of most of the big corporate. So, there is no dearth of money for the Corporate. Fundamentally, the profit growth can be somewhere between 15 % -18 % for the next 5 years and if it holds true, it can really a good steady market growth for the next 5 years where market can go to 25000 too.

So, hold on to your investments and let this emotional play settle down and enjoy the Bull Run in the market.

Indian Market Update 4/3/2007

Sensex and Nifty advanced higher after yesterday's carnage, making modest recovery. Today's start was a little tentative but picked up later. However midcap and smallcaps underperformed the broader markets and the overall volumes were low. The Asian markets ended positive. Technology is leading the uptrend followed by power, capital goods and FMCG. BHEL came out with results which were inline with expectations on the bottomlie and topline numbers were above expectations.

Sensex closed up 169.21 points or 1.36% at 12624.58, and the Nifty up 57.05 points or 1.57% at 3690.65.

About 1356 shares have advanced, 1028 shares declined, and 88 shares are unchanged.

BHEL, NTPC and Hero Honda were the top gainers on the Sensex

The BSE Midcap Index ended at 5,236.36 up 27 points or 0.52%.

The BSE Smallcap Index ended at 6,313.64 up 20 points or 0.3%.

The BSE Bankex was up 0.5% at 6,182.44. Bank of India, Oriental Bank, IOB, Federal Bank, Bank of Baroda
moved upwards.

The BSE Capital Goods Index was up 1.1% at 8,718.07. Aban Offshore, BHEL, Bharat Elec, Praj Industries, Alstom Projects closed higher.

The BSE Health Care Index was up 0.6% at 3,574.65. Sterling Bio, Glenmark, FDC, Pfizer closed higher.

The BSE Auto Index closed at 4,612.32 up 0.9%. Exide Industrie, Hero Honda, Sundaram-Clayto, Sundram, Tata Motors surged.

The BSE Metal Index closed at 8,219.63 up 1%. SAIL, Guj NRE Coke, Sesa Goa, Sterlite Ind, Tata Steel advanced higher.

The BSE FMCG Index gained 1.3% at 1,713.62. Nestle, HLL, ITC, Shaw Wallace closed higher.

BSE Oil and Gas Index closed higher at 6,287.21 up 1.9%. GAIL, Reliance, ONGC, Chennai Petro ended in green.

The BSE IT Index gained 2% at 4,766.97. Wipro, Satyam, HCL Tech, Infosys, TCS closed higher.

The NSE cash turnover was at Rs 6729.28 crore and the NSE F&O turnover was at Rs 23350.93 crore. The BSE cash turnover was Rs 2881 crore.

Total market wide turnover was at Rs 32961.21 crore.

Daily Market Update - 3/29/2007

t was yet another day of sluggish trade wherein the markets opened on a flat note and proceeded to trade rangebound amid extreme volatility. It was a quite day despite being F&O expiry date but gained some momentum during the late trade due to buying interest seen in the FMCG, Capital goods and IT stocks, however the banking, auto and metal stocks remained under pressure through the day and consequently managed to shut shop in green after three consecutive decline.

At 15.48 pm IST, the Sensex is up 95.32 points or 0.74% at 12979.66, and the Nifty up 37.00 points or 0.98% at 3798.1. About 1547 shares have advanced, 918 shares declined, and 69 shares are unchanged.

BSE Midcap closed in green, up 22.59 points or 0.43% at 5,319.17 and Smallcap was up 65.34 points or 1.04% at 6,377.79.

BSE Auto index ended in red, was down 16.27 points or 0.34% at 4,803.59. Ashok Leyland, Sundaram and TVS Motors declined most.

BSE Bankex closed down 27.60 or 0.42% at 6,507.65. UTI Bank, HDFC Bank and Bank of India ended low.

BSE Metal index ended down 28.29 points or 0.34% at 8,346.06. Sesa Goa, Jindal Steel and Sterlite Industries were the hardest hit scrip.

BSE Capital Goods index was up 108.51 points or 1.22% at 9,000.14. KEC Infra, Aban Offshore and L&T were the top gainers.

BSE FMCG index ended up 34.97 points or 2.08% at 1,712.21. HLL, ITC and United Spirits gained most.

BSE Pharma index closed up 35.53 point or 1% at 3,581.82. Glenmark, Ranbaxy and Sun Pharma were the top gainers.

BSE IT index was up 43.23 points or 0.89% at 4,875.08. TCS, Mphasis and HCL Tech surged.

BSE Oil & Gas index ended up 27.39 points or 0.43% at 6,391.51. BPCL, ONGC and Chennai Petroleum were top gainers.

Markets today:

• Market gains in late trade on expiry day
• Sensex up 0.74% or 95.32 points at 12979.66; Nifty up nearly 1% or 37 points at 3798
• BSE FMCG Index up 2%; HLL up 3.72%, ITC up 2.5%
• BSE Capital Goods Index up 1.22%; L&T up 3.15%, Suzlon up 2.17%
• Index Gainers; HCL Tech up 4.5%, Zee Ent up 4.47%, BPCL up 4.30%, TCS up 3.94%
• CNX Midcap Index up 0.18%; led by construction cos
• Sobha Developers up 8.70%, Akruti Nirman up 5.95%, Indiabulls Real Estate up 5.85%
• BSE Small-cap Index up 1.04%; Nitin Spinners, Shreyas Spinning up 20% each
• NSE Advance Decline ratio at 3:2
• Total market turnover at Rs 64695.09 cr Vs Rs 56773.14 cr

Turnover today:

• NSE Cash - Rs 10057.08 cr
• NSE F&O - Rs 50961.50 cr
• BSE Cash - Rs 3676.51 cr
• Total - Rs 64695.09 cr

Market Update 3/15/2007

The markets ended on a disappointing note giving up all their gains it had posted during the earlier part of day despite a strong bounce back in markets across Asia. Asian markets ended with gains of around 1-1.5%. The European markets also opened in the positive terrain. Nifty clung onto 3700 levels during the initial trades but slipped as day advanced. Even the midcap index ended flat the breadth also worsened with the increase in declines.

Sensex closed up 14.23 points or 0.11% at 12543.85, and the Nifty up 2.50 points or 0.07% at 3643.6.

About 1438 shares have advanced, 1077 shares declined, and 68 shares are unchanged.

The BSE Small Cap Index closed at 6,368.18 up 44 points or 0.77%.

The BSE Midcap Index ended at 5,280.79 up 34 points or 0.66%.

The BSE FMCG Index gained 1.9% at 1,777.38. P and G, ITC, United Spirits, Dabur India closed in green.

The BSE Metal Index was up 0.8% to close at 8,927.98. Hind Zinc, NALCO, SAIL, Sterlite Ind, JindalStainless were among the gainers.

The BSE Bankex was down 1.6% at 6,694.82. Canara Bank, SBI, Bank of India, Bank of Baroda, PNB moved downwards.

The BSE Health Care Index ended higher by 0.3% at 3,613.07. Biocon, Dr Reddys Labs, Orchid Chemical, Ipca Labs, Matrix Lab closed higher.

The BSE Capital Goods Index was down 0.7% at 9,145.74. Thermax, BHEL, ABB, Bharat Elec, Alfa Laval ended lower.

The BSE Auto Index closed at 5,305.07 down 1.13%. Tata Motors, Bajaj Auto, Exide Industrie, Cummins, Sundaram-Clayton were among the losers.

The BSE IT Index closed at 5,172.40 up 1.4%. Infosys, HCL Info, Mphasis, TCS ended strong.

The BSE Oil and Gas Index closed at 6,483.67 down 0.7%. Chennai Petro, Petronet LNG, ONGC, BPCL ended in red.

The NSE cash turnover was at Rs 7771.05 crore and the NSE F&O turnover was at Rs 26715.87 crore. The BSE cash turnover was Rs 3826.13 crore. Total market wide turnover was at Rs 38313.05 crore.

Markets Today:

Market gives up early gains to close flat
Sensex ends up 14 points at 12543.85; loses nearly 250 points from days high
Nifty ends almost flat at 3643.6; loses nearly 70 points from days high
BSE Bank Index down 1.23%; SBI down 2.7%, PNB, HDFC Bank down 1.56%
BSE Auto Index down 0.73%; Tata Motors down 2.4%, Bajaj Auto down 1.5%
BSE IT Index up 1.88%; Infosys up 3%, TCS up 1.71%, Wipro up 1.3%
Index Gainers; DRL up 3.70%, ITC up 3%, MTNL up 2.6%
Index Losers; HDFC down 2.77%, Suzlon down 2.7%, ACC down 2%
CNX Midcap Index ends nearly flat; Bank of Rajsathan up 20%, IndusInd Bank up 3%
BSE Small-cap Index up 0.70%; led by new listings
Evinix Accessories, Cinemax up 5% each, Braodcast Initiatives up 3%NSE Advance Decline up 8:5
Total market turnover at Rs 38313.05 cr Vs Rs 44,939.92 cr

Market Update 3/13/2007

The markets ended in green with decent gains after swinging between the red and the green territory. Asian markets ended weak and Nikkie was among the top loser losing around 113 points. Technolgy was among the leader in today's market both in midcap as well as frontline. Advances were mainatained higher against the declines throughout the day.

Select FMCG and pharma stocks were relatively weak in today's trading session. The midcap and smallcap indices outperformed the benchmark indices giving market healthy breadth. Newer listing like Mindtree, Parsvnath, First Source moved up further.

Sensex closed up 80.35 points or 0.62% at 12982.98, and the Nifty up 35.95 points or 0.96% at 3770.55.

About 1705 shares have advanced, 839 shares declined, and 82 shares are unchanged.

ONGC, M&M, Suzlon and ABB were among the major gainers.

Heavies like HLL followed by Ranbaxy and Reliance Enegy closed in red

Other than FMCG all the other BSE sector indices ended in green.

The BSE Smallcap Index ended at 6,434.87 up 117.2 points or 1.86%.

The BSE Bankex was up 1.01% at 6,538.68. UTI Bank, Union Bank, IOB, Canara Bank, PNB moved upwards.

The BSE Capital Goods Index was up 1.2% at 8,852.51. KEC Infrastruct, Praj Industries, Dredging Corp, ABB, Carborundum closed higher.

The BSE Health Care Index was up 0.9% at 3,521.97. Orchid Chemical, FDC, Glenmark, Divis Labs, Cipla closed higher.

The BSE Auto Index closed at 4,947.66 up 1%. Escorts, Mah and Mah, TVS Motor,Cummins, Tata Motors surged.

The BSE Metal Index closed up 1.07% at 8,227.89. Welspun Guj, JSW Steel, JindalStainless, Tata Steel, Guj NRE Coke advanced higher.

The BSE IT Index gained 0.7% at 5,036.51. Moser Baer, Mphasis, TCS, Satyam, HCL Info advanced.

BSE Oil and Gas Index closed gained 1.08% to close at 6,213.36. GAIL, ONGC, Chennai Petro, HPCL ended in green.

The BSE FMCG Index ended flat at 1,662.68.

The NSE cash turnover was at Rs 8125.02 crore and the NSE F&O turnover was at Rs 27434.3 crore. The BSE cash turnover was Rs 4177.96 crore. Total market wide turnover was at Rs 39737.28 crore.

Markets Today:

Markets end in green; selective buying witnessed in mid cap/ small-cap
Sensex up 0.62% or 80 points at 12983; Nifty up nearly 1% or 36 points at 3766.55
BSE Capital Goods Index up 1.22%; Suzlon Energy up 5%, L&T up 2.19%, ABB up 2.63%
BSE IT Index up 0.67%; Satyam up 3%, TCS up 2.46%
Index Gainers; M&M up 3%, GAIL up 2.74%, Tata Steel up 2.12%
Index Losers; HLL down 2%, Reliance Energy down 1.50%
CNX Midcap Index up 0.84% at 4732; led by midcap realty & tech stocks
Parsvnath Dev up 17%, Mah Gesco up 11.38%, Lanco, Akruti Nirman up 9.5% each
Rolta, MindTree Consulting up 12.5% each, Firstsource up 12.2%, NIIT Tech up 12%
BSE Small-cap Index outperforms major indices; up 1.85%
NSE Advance Decline ratio at 3:1
Total turnover at Rs 39737.28 cr Vs Rs 38,476.8 cr on Monday

Market Update 3/12/2007

Markets started quiet but picked up steam but ended the day with marginal gains, despite Asian markets ending significantly higher. The major draggers being cement stocks namely Gujarat Ambuja, ACC and Grasim and biggies like ITC.

Capital goods, auto and pharma stocks saw select buying interest. New listing C&C, Mudra ended well. Idea saw trades with good volume and Mindtree was up 20% with significant volume. Midcap IT was very active throughout the day. Oil stocks held out their gains. Advance decline number was in favour of advances largely because of smallcaps. Overall it was a rangebound movement with low volumes.

Sensex closed up 17.64 points or 0.14% at 12902.63, and the Nifty up 16.60 points or 0.45% at 3734.6.

About 1508 shares have advanced, 999 shares declined, and 58 shares are unchanged.

The BSE Midcap Index ended at 5,276.50 up 48.06 points or 0.92%.

The BSE Smallcap Index ended at 6,317.65 up 66.6 points or 1.07%.

The BSE Bankex was up 0.3% at 6,469.41. Centurion BoP, Oriental Bank, Bank of Baroda, Andhra Bank, Canara Bank, moved upwards.

The BSE Capital Goods Index was up 1.7% at 8,745.90. Gammon India, Crompton Greave, Aban Offshore, ABB, HEG closed higher.

The BSE Health Care Index was up 0.8% at 3,490.40. Sun Pharma, Glenmark, Biocon, Matrix Lab, Novartis India closed higher.

The BSE Auto Index closed at 4,898.08 up 1.12%. Bharat Forge, Tube Investment, Escorts, TVS Motor, Amtek Auto, Ashok Leyland surged.

The BSE Metal Index gained 0.6% to close at 8,141.08. Welspun Guj, Guj NRE Coke, Mah Seamless, Jindal Steel, NALCO advanced.

The BSE IT Index gained 0.6% at 5,002.78. TCS, HCL Tech, Moser Baer, Wipro, Hexaware Tech advanced.

BSE Oil and Gas Index gained 0.5% to close at 6,147.03. HPCL, IOC, Petronet LNG, BPCL, MRPL closed in green.

The BSE FMCG Index lost 1.4% at 1,665.03. ITC, Dabur India, United Spirits were among the losers.

The NSE cash turnover was at Rs 8324.98 crore and the NSE F&O turnover was at Rs 26751.37 crore. The BSE cash turnover was Rs 3400.45 crore. Total market wide turnover was at Rs 38476.8 crore.

On the macroecoomic front, January industrial output numbers came in strong.

Markets Today:

• Sensex ends up 17 points at 12,902, Nifty up 16 points at 3734
• Midcaps stocks outperform broader indices, CNX Midcap index up 0.8% at 4693
• BSE Capital Good & Auto indices up 1% each
• Select recent listings hog limelight, Mindtree Consulting hits 20% upper circuit at Rs 780
• Total turnover at Rs 38,476.8 cr vs Rs 48901.15 cr on Friday

Market Update 3/9/2007

It was yet another extremely volatile session wherein the markets opened in green but drifted down in red on the back of selling pressure witnessed across the sectors.The markets witnessed heavy gyration and swung between red and green in the first half of day today but traded under deep pressure for most of the time in the second half on account of sustained selling. All the BSE benchmark indices shut shop in red except consumer durables index. Cement, FMCG, oil & gas and auto stocks were the hardest hit stocks today. Govt.'s decision not to hike cement prices for one year hammered the cement stocks during the later trade.

Sensex ended down 164.36 points or 1.26% at 12884.99, and the Nifty closed down 43.65 points or 1.16% at 3718. About 1066 shares have advanced, 1287 shares declined, and 60 shares are unchanged.

BSE Auto index ended down 64.37 points or 1.31% at 4,843.65. M&M, Cummins, Escorts and Bharat Forge declined most.

BSE Bankex closed down 15 points or 0.23% at 6,451.24. Kotak Mahindra, Bank of India, Bank of Baroda, PNB and SBI were top losers.

BSE Cap Goods index ended down 128.52 points or 1.47% at 8,602.30. HEL, Praj Industries, L&T, Aban Offshore and HEG were top losers.

BSE FMCG index closed down 28.10 points or 1.64% at 1,688.87. ITC, Dabur India, Britannia, Shaw Wallace and HLL declined most.

BSE Pharma index ended down 35.06 points or 1% at 3,462.78. Matrix Lab, Lupin, Ipca Labs and Aurobindo Pharma were the worst hit.

BSE IT index closed down 47.47 points or 0.95% at 4,974.21. Moser Baer, Wipro, Satyam, Patni Computer and HCL Info declined most.

BSE Metal index was down 40.59 points or 0.50% at 8,092.09. Hindalco, Guj NRE Coke, Sterlite Ind and Jindal Steel were among losers.

BSE Oil & Gas ended down 67.09 points or 1.08% at 6,118.47. GAIL, BPCL, Reliance Natural, IOC and Reliance were the top losers.

Markets Today:

Markets end in the red; selling witnesses across FMCG, Capital Good stocks
Sensex down 1.26% or 164.36 points at 12885; Nifty down 1.16% or 43.65 points at 3718
Cement stocks in focus; govt imposes price control for next 1 year
Grasim down 7.11%, ACC down 6.24%, Gujarat Ambuja down 2.5%
BSE FMCG Index down 1.64%; ITC down 3.63%, Dabur India down 2.2%
BSE Capital Goods Index down 1.47%; BHEL down 3.53%, Suzlon down 3.11%, L&T down 2.6%
Index Losers; MTNL down 5.26%, Cipla down 3.13%, Rel Comm down 2.7%
CNX Midcap Index down 0.52%; dragged by mid cap cement stocks
India Cement down 8.26%, Mysore Cement down 9.8%, Shree Cement down 9.5%
BSE Small-cap Index ends almost flat
Recent Listings; Indus Fila up 8.5%, Evinix Accessories up 3.77%
New Listings: Idea Cellular closes at Rs 85.7 Vs listing price of Rs 86 (Issue Price Rs 75)
New Listings: Euro Ceramics closes at Rs 119.15 Vs listing price of Rs 150 (Issue Price Rs 165)
New Listings: Mudra Lifestyle closes at Rs 63.95 Vs listing price of Rs 79 (Issue Price Rs 90)
New Listings: Vijayeswari Textiles closes at Rs 68.95 Vs listing price of Rs 90(Issue Price Rs 100)
Turnover: Total market turnover today was at Rs 48901.15 crore

Market this week:

Markets end almost flat amid heavy volatile trade during the week
Sensex ends down flat at 12885; swings nearly 800 points during the week
Nifty ends down flat at 3718
Cement stocks in focus; govt imposes price control for next 1 year
ACC down 8.5%, India Cement down 9%, Shree Cem Down 13.5%
BSE FMCG Index down 4%; ITC down 7.5%, Dabur India down 7.5%
BSE Metal Index down 4%; Hindalco down 6.8%, SAIL, Tata Steel down over 2%
BSE Auto Index down 3.5%; M&M down 4.75%, Maruti down 5.5%, Bajaj Auto down 2.2%
Telecom stocks gain during the week: Bharti Airtel up 6.2%, MTNL up 5.40%
IPCL up 4.7%; RIL board to meet on Mar 10 to merge IPCL with itself
CNX Midcap Index down 4%, BSE Small Cap Index Down 6%
Midcap Losers: SRF Down 19%, Parsvnath down 12.20%, IFCI down 11%

Market Update 3/8/2007

The markets saw an unexpected sharp recovery towards the end of the trading session with Sensex gaining 470 points breaching 13,000 levels. It was the biggest single day gain for the Sensex since June 15, 2006. Markets showed a smart pull back with global markets picture looking good. Asian markets ended higher, Nikkie ended with gains of around 325 points.

The markets did some catching up work with its Asian peers that rallied yesterday also. Beaten down stocks like HLL have come back after a long time. Midaps clawed back and showed a spectacular surge. Smallcaps were not left behind either. At the end of the day BSE midcaps and smallcap up nearly 2.6% each.

All the BSE sector indices ended in green, leading the uptrend

The BSE Midcap Index ended at 5,246.79 up 132 points or 2.6%.

The BSE Smallcap Index ended at 6,245.81 up 158 points or 2.6%.

The BSE Bankex was up 4.5% at 6,466.36. Bank of baroda, Bank of India, HDFC Bank moved upwards.

The BSE Capital Goods Index was up 4.5% at 8,730.82. Gammon, Praj Industries and BHEL closed higher.

The BSE Health Care Index was up 3.8% at 3,497.84. Divis Lab, Glenmark, Nicholas Piramal closed higher.

The BSE Auto Index closed at 4,908.02 up 2.3%. Sundaram, Cummins, Escorts surged.

The BSE Metal Index closed up 4.6% at 8,132.68. SAIL, JSW Steel, Sterlite Ind advanced higher.

The BSE IT Index gained 2.6% at 5,021.68. Moser Baer,Wipro, Satyam advanced.

The BSE FMCG Index lost 3.2% at 1,716.97. HLL, Shaw Wallacw, Unite Spirits were among the top gainers.

BSE Oil and Gas Index closed gained 2.8% to close at 6,185.56. Reliance MRPL, Petronet LNG ended in green

The NSE cash turnover was at Rs 7946.63 crore and the NSE F&O turnover was at Rs 32218.18 crore. The BSE cash turnover was Rs 3762.74 crore. Total market wide turnover was at Rs 43927.55 crore.

Markets Today:

4th biggest single day point gain for Sensex ever
Sensex ends up 469.6 points at 13049; Nifty up 134.8 points at 3761
IPCL up 12.77%; RIL up 3.5%, RIL board to meet to consider merger with IPCL
BSE Metal Index up 4.6%; SAIL up 13%, Hindalco up 4.5%, Tata Steel up 3.5%
BSE Capital Goods Index up 4.5%; BHEL up 8%, ABB up 5%; Siemens up 3.9%
BSE Bank Index up 4.5%; HDFC Bank up 6.4%, ICICI Bank up 4.15%; SBI up 3.6%
Cement stocks; Guj Ambuja up 8.7%, Grasim up 6.11%, ACC up 2.8%
HLL up 10%, CLSA puts 12 month price target at Rs 240
CNX Midcap Index up 3.5%; led by construction stocks
Akruti Nirman up 11%, Parsvnath up 7.18%, IVRCL up 5.6%
BSE Small-cap Index up 2.6%
Recent Listings; Evinix Accessories up 20%, C&C Construction up 16.33%
New Listing: Indus Fila closes at Rs 133.85 Vs listing price of Rs 145 (Issue Price at Rs 170)
NSE Advance Decline ratio at 4:1
Total market turnover at Rs 43927.55 cr Vs Rs 49444.63 cr on Wednesday

F&O

Turnover at Rs 32218.18 Cr
IFCI adds 52 lakh shares in OI
ITC adds 27 lakh shares in OI
Gujarat Ambuja adds 24 lakh shares in OI
IPCL adds 16 lakh shares in OI
RPL adds 12 lakh shares in OI
Union Bank,Sail adds 8 lakh shares in OI
SRF adds 7 lakh shares in OI
IDFC sheds 5 lakh shares in OI
HLL sheds 4 lakh shares in OI
Ranbaxy,PFC sheds 3 lakh shares in OI

Market Update 3/7/2007

The markets ended in red but off day's low on account of buying support from select index pivotals. Sensex showed recovery of over 200 points after slipping below 12,400 levels. Nifty ended the day above 3,600 levels. Cement, IT and metal were among the top losers.

The Sensex closed at 12,579.75, down 0.92% or 117.34 points. It touched an intraday high of Rs 12,902 and low of Rs 12,390.

The Nifty touched an intraday high of 3,714 and low of Rs 3,568. It ended down 0.79% or 29 points at 3,626.85. The CNX Midcap lost 2.26% to end at 4,525.65.

The BSE Small Cap finished at 6,088, down 2.74% and Midcap at 5,114, down 2.01%.

About 546 shares advanced, 1939 shares declined, and 40 shares remained unchanged.

Top gainers on the bourses were Cipla, Reliance Communications, Dr Reddy's Labs, Tata Motors, M&M, Suzlon Energy and GSK Pharma while Gujarat Ambuja Cements, ACC, Wipro, Ranbaxy Labs, HPCL and SAIL losers.

The BSE Auto Index ended in the green with 0.38% gain at 4,796.83 amid buying in M&M, Tata Motors, Apollo Tyres and Hero Honda.

The BSE Bankex slumped 2.56% at 6,190.67 as banking stocks like Bank of Baroda, Union Bank, Bank of India, Canara Bank, UTI Bank, ICICI Bank, SBI, Allahabad Bank and HDFC Bank gained.

Capital goods stocks including Gammon India, BEML, Bharat Elec, Thermax, ABB, Dredging Corp, Alstom Projects, Crompton Greaves, Siemens and KEC Infrastructres witnessed selling pressure. The BSE Capital Goods Index closed at 8,353.98, down 0.17%.

FMCG is another Index, which also finished in red at Rs 1,664.05, down 2.09%. FMCG stocks like United Spirits, Britannia, Colgate, Shaw Wallace, ITC, Nirma and HLL lost ground.

The BSE Healthcare Index ended with marginal gain of 0.11% at 3,371.13 due to gain in Cipla, Biocon, GSK Pharma, Dr Reddy's Labs, Wockhardt and Cadila Health.

Technology stocks were the biggest losers during the day as it fell more than 2.5%. But because of some buying at lower levels it recovered some losses and ended down 1.36% at 4,894.70 on the back of selling in HCL Info, Wipro, Patni Computer, Moser Baer, Mphasis, i-flex Solution and Infosys.

The BSE Metal Index lost nearly 3% at 7,776.16 on the back of selling in Jindal Steel, JSW Steel, SAIL, Sesa Goa, Mah Seamless, Sterlite Ind, Hindalco and Jindal Stainless.

Oil stocks like HPCL, MRPL, BPCL, Chennai Petro, Reliance Natural, Reliance, ONGC and IOC slipped. The BSE Oil & Gas Index finished at 6,018.78, down 0.80%.

Total turnover recorded on the boureses were Rs 49444.63 crore which includes Rs 8876.02 crore from the NSE cash segment, Rs 36255.44 crore from NSE F&O segment and Rs 4313 crore from BSE cash segment.

FIIs were the net sellers of USD 128.7 million in equity and domestic mutual funds also net sellers of Rs 16.62 crore on March 6.

Markets Today

Market recovers from days low; led by auto & pharma stocks
Sensex down 117 points at 12579; recovers 190 points from days low
Nifty down 28.8 points at 3626; recovers nearly 60 points from days low
Cement stocks plunge on news of export ban; Guj Ambuja down 8.4%, ACC down 5%
BSE Metal Index down 2.82%; SAIL down 4.7%, Hindalco down 2.77%, Nalco down 1.85%
BSE Bank Index down 2.5%; SBI down 2.4%, ICICI Bank down 2.27%
BSE FMCG Index down 2%; HLL down 2.45%, ITC down 2.38%
BSE IT Index down 1.36%; Wipro down 4.23%, Infosys down 1.4%
BSE Auto & Healthcare Indices recover; M&M up 5%, Tata Motors up 1.65%, Cipla up 4.4%, GSK Pharma up 3.5%
CNX Midcap Index down 2.26%; BSE Small-cap Index down 2.74%
New Listings: MindTree Consulting closes at Rs 621.2 Vs listing price at Rs 615
New Listings: Broadcast Initiative closes at Rs 70.4 Vs listing price at Rs 105
New Listings: Evinix Accessories closes at Rs 74.05 Vs listing price at Rs 117
New Listings: Oriental Trimex closes at Rs 29.7 Vs listing price at Rs 45
NSE Advance Decline ratio at 1:4
Total market turnover at Rs 49444.63 cr Vs Rs Rs 47569.8 cr

F&O

Turnover at Rs 36255.44 crore
IFCI sheds 48 lakh shares in Open Interest
IDFC sheds 13 lakh shares in Open Interest
TVS Motor sheds 7 lakh shares in Open Interest
Tata Motors,MTNL sheds 5 lakh shares in Open Interest
Sail,Gujarat Ambuja adds 9 lakh shares in Open Interest
Mphasis bfl,Indian hotel sheds 4 lakh shares in Open Interest
HLL adds 6 lakh shares in Open Interest
HCC adds 4 lakh shares in Open Interest

Short Term Volatality

The slide in the global market has again brought to the fore front, how we are so much integrated with the Global Market.

If you go to the bottom of the issue, it is basically the short term leverage money which is creating problem in all the slides. These short term money are basically in the nature of leverage money which has been ruling this world since last few years now. This started after money was cheaply available in Japanese Market. After the 2000 slide, Japanese economy went into recession where inflation went into negative and money was available in abundance. I remember one of the Japanese Investor invested in New York Real Estate at its peak and was and has not been able to recover the cost till date (I may be wrong with the has not been).

Well, the last week's slide was also because of the same reason. Yen started becoming stronger compared to US Dollar and that would have obviously put pressure on the margin which investors would have made due to the leverage which was available when Yen was weaker.

Also, there is increasing pressure on China to devalue their currency and that would affect the margin of the Chinese Exporters. Housing Market in US has also added fuel to the fire.

Almost 50 % of the FII money come to India as Participatory Notes which are not identifiable. Moreover, as per the report from National Security Advisor in India, money from underworld is going around and coming back to India through hawala and FII.

As far as long term story of India goes, it would definitely be great. This makes more logical sense since Indian Economy is consumption driven and large number of population is young with lots of spending power.

So, friends, be long in the market and do not worry about the unwanted volatality which you see every year. If you are convinced about your stock investment, do not worry about these ups and downs and stay put. Its a long haul for the Indian Market.

Market Update 3/6/2007

After yesterday's fall the markets saw a sharp recovery and ended the day with hefty gains. IT stocks were the star performers leading the uptrend followed by banking and capital goods.

Sensex closed up 282.05 points or 2.27% at 12697.09, and the Nifty up 79.15 points or 2.21% at 3655.65.

About 1046 shares have advanced, 1443 shares declined, and 45 shares are unchanged.

The BSE Small Cap Index closed at 6,259.52 down 11 points or 0.2%.

The BSE Midcap Index ended at 5,219.45 up 25 points or 0.5%.

The BSE Bankex was up 2% at 6,353.28. PNB, Kotak Mahindra, ICICI Bank, SBI, Oriental Bank moved upwards.

The BSE IT Index gained 4.9% at 4,961.94. Wipro, Infosys, Mphasis, Hexaware Tech, Satyam advanced.

The BSE Capital Goods Index was up 1.5% at 8,368.39. Praj Industries, Dredging Cor, BEML, Bharat Elec and L&T closed higher.

The BSE Health Care Index was up 1.2% at 3,367.45. Glenmark, Divis Labs, Cadila Health, Lupin, Cipla closed higher.

The BSE FMCG Index closed flat at 1,699.63. United Spirits, Nestle, Shaw Wallace, Tata Tea closed in green.

The BSE Oil and Gas Index gained 2.2% to close at 6,067.22. BPCL, GAIL, Reliance, HPCL, MRPL ended in green.

The BSE Auto Index closed in green up 0.5% at 4,778.82. TVS Motor, Hind Motors, Ashok Leyland, Mah and Mah, Cummins, Bharat Forge ended higher.

The BSE Metal index closed at 8,002.12 down 0.4%. Guj NRE Coke, Sesa Goa, NALCO, Mah Seamless, JSW Steel ended higher.

The NSE cash turnover was at Rs 8356.06 crore and the NSE F&O turnover was at Rs 35406.27 crore. The BSE cash turnover was Rs 3807.47 crore. Total market wide turnover was at Rs 47569.8 crore.

F&O

• Turnover at Rs 35406.27 Cr
  
  
• Gujarat Ambuja sheds 7 lakh shares in OI
  
  
• IDFC,Tata Steel sheds 6 lakh shares in OI
  
  
• IFCI adds 40 lakh shares in OI
  
  
• Hindalco adds 9 lakh shares in OI
  
  
• Tata Motors adds 8 lakh shares in OI
  
  
• India Cement adds 7 lakh shares in OI
  
  
• SRF,TTML,NTPC adds 6 lakh shares in OI
  
  
• Satyam adds 4 lakh shares in OI
  
  
• Praj Ind adds 5 lakh shares in OI

Markets Today

• 
  
  
  Markets pull back led by frontline tech stocks amid volatile trade
  
  
  
• 
  
  
  Sensex up 2.27% or 282 points at 12697; Nifty up 2.21% or 79.15 points at 3655
  
  
  
• 
  
  
  BSE IT Index up 5%; Wipro up 7.7%; Infosys up 5.35%, Satyam up 4.70%
  
  
  
• 
  
  
  BSE Oil & Gas Index up 2.2%; BPCL up 4.9%, GAIL up 4.5%, HPCL up 4%
  
  
  
• 
  
  
  Telecom stocks gain; MTNL up 5.3%, Bharti Airtel up 5%
  
  
  
• 
  
  
  CNX Midcap Index up 0.68%; Rolta up 7.56%, Hind Motors up 6.66%, MphasiS up 5.26%
  
  
  
• 
  
  
  BSE Small-cap Index ends marginally in red
  
  
  
• 
  
  
  New Listings: C&C Cons down 5.8%, XL Telecom down 5%
  
  
  
• 
  
  
  NSE Advance Decline ratio at 8:9
  
  
  
• 
  
  
  Total market turnover at Rs 47569.8 cr Vs Rs 46401.68 cr

Market Update 3/5/2007

The markets closed deep in the red in line with other global peers on account of concerns over Yen carry trade unwinding, fall in Chineses and other Asian markets and US mortgage market.

All BSE sector indices ended in negative terrain. Biggest pockets of weakness are capital goods, auto, metal, pharma and IT stocks. Auto and capital goods have seen the deepest cut.

Sensex closed down 471.09 points or 3.66% at 12415.04, and the Nifty down 150.25 points or 4.03% at 3576.5.

About 195 shares have advanced, 2335 shares declined, and 29 shares are unchanged.

The BSE Small Cap Index closed at 6,270.75 down 375 points or 5.6%.

The BSE Midcap Index ended at 5,194.40 down 272 points or 5%.

The BSE FMCG Index lost 3% at 1,701.36. Shaw Wallace, United Spirits, Tata Tea, Dabur India, Nestle closed in red.

The BSE Metal Index was down 4.6% to close at 8,036.49. JSW Steel, SAIL, JindalStainless, Welspun Guj, Jindal Steel, Tata Steel were among the losers.

The BSE Bankex was down 3.5% at 6,221.04. Canara Bank, Federal Bank, Oriental Bank, Union Bank, UTI Bank, IOB moved downwards.

The BSE Health Care Index was plunged 4.6% at 3,328.40. Nicholas Pirama, Matrix Lab, Divis Labs, Glenmark, Ranbaxy Labs closed lower.

The BSE Capital Goods Index was down 5.5% at 8,242.83. Praj Industries, KEC Infrastruct, Crompton Greave, Carborundum, SKF India ended lower

The BSE Auto Index closed at 4,755.96 down 5.2%. TVS Motor, Escorts, Ashok Leyland, M&M, Tube Investment, Apollo Tyres, Hind Motors were among the losers.

The BSE IT Index closed at 4,730.30 down 4.5%. Wipro, Moser Baer, Mphasis, Hexaware Tech, HCL Info ended weak.

The BSE Oil and Gas Index closed at 5,935.97 down 4.2%. MRPL, GAIL, HPCL, Reliance, Chennai Petro ended in red.

The NSE cash turnover was at Rs 8546.23 crore and the NSE F&O turnover was at Rs 33865.52 crore. The BSE cash turnover was Rs 3989.93 crore. Total market wide turnover was at Rs 46401.68 crore.

Markets Today:

• Markets plunge due to selling pressure; in line with global markets
• Sensex down 3.66% or 471 points at 12415
• Nifty down 4% or 150 points at 3576
• All BSE Sectoral indices down over 3% each
• BSE Capital Goods Index down 5.5%; Siemens down 7.6%, Suzlon down 6.35%, L&T, ABB down over 5% each
• BSE Auto Index down 5.2%, M&M down 8%, Maruti down 7.2%, Tata Motors down 4.5%
• Index Losers; Jet Airways down 9.7%, SAIL down 8.5%, Ranbaxy down 7.66%
• CNX Midcap Index down 5%, BSE Small-Cap Index down 5.64%
• IDBI down 10.8%, IFCI down 10%, IDFC down 8.4%
• Rolta down 13%, SRF down 11.7%, Century Textile down 11%
• NSE Advance Decline ratio at 1:28
• Total market turnover at Rs 46401.68 cr Vs Rs 45476.81 cr on Friday

Stock Market

Having the stock market meltdown at the hindsight, I get the feeling that its become a habit of everyone to expect our stocks to double in a short span of time and once the market is down, we start blaming others. Remember, we decide about investing at any point of time and responsibility of investing own money is entirely on the person who invests, irrespective of when he is investing.

Why should we not consider stock market investments like a long term investment like real estate and Gold. I will go to the benefits of having real estate and Gold Investments later but Stock Market Investment has created the greatest wealth for all the stalwarts in the market if they have focused without looking into the daily movements of the stock prices.

If you refer the Companies Act, you would find that you are having equal rights alongwith the directors of the company to question and direct the business of the company. Forget about how the big investors always try to manage the business as per their requirements and benefits. Bottomline is that you are a owner of the company and you have equal right to question the proceedings of the company whose stocks you own. As Kukkuji has been saying time and again, why do we not analyse enough before investing our hard earned money in any stocks. The fundamental basis of owning stock is owning the business.

Going back to other major investment avenues. First let me take the instance of Real Estate Investment. Yes, Real Estate Investment has provided better returns to Investors for the last two years. But think about a longer time frame. As per what analysis I have read, over a longer period of time it has provided the same return as the FD in the Bank @ 8 - 10 % p.a. But it always good to have some investment in Real Estate depending on what is your age.

I would provide a separate note on risk profiling where you would be able to decide how much you can invest in different avenues during your life time.

Another investment avenue is Gold which is considered to be the safest. All the federal reserves in the world hold the most Gold Asset in their portfolio. Gold has been one of the most inflation prone investment in the world. If the inflation goes beyond roof, Gold would be the only asset which can hold the purchasing power of an investor in such circumstances. As Indians we anyway invest in Gold during good occassions like festivals, marriages etc.

Coming to Stock Market investments in India, it has returned more than 15 % pa compounded return to investors based on the Sensex in the last 25 years. There are various aspects to look into while investing in stocks. Briefly, they are -

1) Management Integrity - I know its difficult for us to understand the integrity but few indicators are dividend distributions, commitment of top management, very low attrition of the top management, consistent perfomance over a medium term, transparency of the activities they are undertaking etc.

2) Consistent Performance - Past Performance is an indicator but not a guarantee of future performance. But past performance can provide a sense of consistency to the prospective investor.

3) Future Plan of the Company - Keep abreast of the future plan of the company. There are many companies from past which were great of the yesteryears but perished due to bad decisions or no decisions of where they want to be in the future. Few examples are Orkay, DCM etc.

4) Aggressiveness of the Management - In the period of Licence Raj, many of the companies used their clout with the power or unethical ways to survive and prosper. Today, India is open to the world and competition is all pervasive. Its the survival of the fittest and prosperity of the finest. This requires aggressive management of the company.

5) Macro economic indicator - Everyone was talking about infrastructure lack in India since 2003 when market started its bull run but no one had the vision to invest in infrastructure related companies those days. To indicate the potential of the sector, Satyam's Chairman, Mr. Ramalinga Raju also started invested in infrastructure Special Purpose Vehicles (SPVs) in the name of Maytas (reverse of Satyam) since late 2004.

6) Keep your eyes open - To understand this better, you need to read Peter Lynch's One Up on Wall Street. One example he provided in the book was when his wife came back from shopping in one of the shop owned/franchised by a listed company in US and mentioned that there was tremendous rush, he quickly pounded on the same and analysed the company and started accumulating the same. He also mentioned that he made good money on the stock.

7) Read, read and read - I know you would be doing that. Otherwise you would not be reading this article.

Well, it also requires that we as investors know about what is going on in the companies where we invest. This is required to churn your portfolio in regular interval to make sure that you change with the changing time.

It would be in the interest of investors to make sure that they do good analysis to convince their buys and have patience. This is especially important during such meltdown.

Note that I would equate the above philosophy with stocks to Mutual Funds too except for Debt Oriented Mutual Funds.

Companies rush to pay early dividend to avoid PC's tax

MUMBAI: Companies have their own way of bypassing rules that don't favour their investors. The post-budget rush to call board meetings for payment of interim dividend is one such approach that is gaining currency not only among smaller companies, but even among the largest of the Indian corporates.

The rush to declare interim dividend is in response to FM's budget proposal that from April, all companies will have to pay a dividend distribution tax (DDT) at 15%, up from 12.5% now.

So all companies have till the end of this month to announce dividend and pay 2.5% lower tax. As a result of the hike in DDT, investors' dividend income will also come down.

On Friday, nearly 20 companies sent notices to BSE that before month end their boards would consider payment of interim dividend.

On Thursday too a large number of corporates had sent similar notices to the exchange. In a way, the decision to announce a dividend before the end of the year is beneficial to shareholders, said the head of a local broking house.

The latest to join the interim dividend rush is Reliance Industries and two of its group companies, IPCL and Reliance Industrial Infrastructure (RIIL). Mukesh Ambani-controlled RIL, the largest Indian company by market value, on Friday said that its board will meet on March 22 to consider interim dividend. Group companies IPCL and RIIL would also decide on payment of interim dividend the same day. While government is trying to get a little more in exchequer from a 2.5% higher DDT, even a government company is taking the interim dividend route to reward its shareholders.

Aluminium manufacturer Nalco has called for a board meeting on March 9 for considering payment of its second interim dividend this year, a company notice on the BSE said.

Other companies that have scheduled board meetings later this month to consider paying interim dividend are Sun Pharma, Eicher Motors and Patel Engineering. Marketmen feel many more are expected to join the group in few days.

A section of market players feel that under the higher DDT regime next year, some of these companies might even skip paying the final dividend for the year. "With the financial year-end just a month away, most companies have a good idea about their full year profit numbers. So they will adjust the (interim) dividend rate accordingly," said head of an investment advisory firm.

Market Update 3/2/2007

The markets opened on bearish note in the morning today and trade in red for most of the time before noon. During after noon markets witnessed some buying interest in the auto, pharma and sugar stocks and as a result it gained over 70 points but couldnot hold the gain and crumled sharply on the back of selling presure and ended the week in deep red. All the BSE indices closed down.

At 15.47 pm IST, the Sensex is down 273.42 points or 2.08% at 12886.13, and the Nifty down 84.45 points or 2.22% at 3726.75. About 897 shares have advanced, 1628 shares declined, and 52 shares are unchanged.

BSE Midcap closed down 56.35 points or 1.02% at 5,466.24 and BSE Smallcapended down 67.05 points or 1% at 6,645.81.

BSE Auto index ended down 54 points or 1.07% at 5,015.88. Asahi India, Hind Motors and M&M were hardest hit.

BSE Bankex was down 137.17 points or 2.08% at 6,447.33. Union Bank, SBI and BOB were the top losers.

BSE Consumer Durable index ended down 9.60 points or 0.27% at 3,571.49. Blue star, Samtel declined most.

BSE Capital Good index lose 273.98 points or 3.05% and closed in red at 8,723.25. L&T, Siemens and Bharat Electronics were top losers.

BSE FMCG index was down 30.01 points or 1.68% at 1,755.94. ITC, Tata Tea and Nestle declined most.

BSE Pharma Index closed down 32.37 points or 0.92% at 3,490.18. Divis lab, Biocon and Wockhardt were top losers.

BSE IT index ended down 117.30 points or 2.31% at 4,954.05. Mphasis, TCS and Wipro ended in red with deepest cut.

BSE Metal index closed down 103.03 points or 1.21% at 8,423.10. Hin Zinc, SAIL and JSW Steel were top losers.

BSE Oil & Gas index ended down 145.91 points or 2.30% at 6,192.91. Reliance, Petronet and BPCL were worst hit.

Markets today:

• Markets fall sharply in late trade on broad-based selling
• Bank, capital goods, technology, oil stocks biggest losers
• Sensex down 2.1% at 12,886; Nifty down 2.2% at 3727
• All major sector indices close in negative territory
• BSE Bankex down 3.1%; SBI down 4.8%, HDFC Bank down 4.4%
• BSE Capital Goods index down 3%; L&T down 5.3%, Siemens down 4%
• BSE IT Sector index down 2.3%; TCS down 3.7%, Infosys down 3%
• BSE Oil & Gas index down 2.3%; BPCL down 3.2%, HPCL down 2%
• Select gainers: Hero Honda up 3.7%, Nalco up 2.9%, Jet up 2%
• Second rung stocks face relatively lesser selling pressure
• NSE CNX Midcap & BSE Small Cap indices down 1% each
• Market breadth negative; NSE Advance Decline ratio 1:2
• Total turnover Rs 45,476.81 cr vs Rs 48,086.28 cr on Thursday

Turnover:

• NSE Cash turnover - Rs 8952.25 cr
• NSE F&O turnover - Rs 32529.46 cr
• BSE Cash turnover - Rs 3995.1 cr
• Total turnover - Rs 45476.81 cr
  

Market Update 3/1/2007

The bulls were back on the bourses with vengeance reversing early losses. After opening in green the key indices lost ground on back of selling pressure in heavy weights like Bajaj Auto, ACC, Hindalco and Dr Reddy's Lab. However, a day after the Union Budget markets staged a solid come back in the second half of the session led by gains in the Technology, Banking and Telecom stocks lifted benchmark Sensex to rise over 200 points and NSE Nifty to rally nearly by 70 points.

Finally, the 30-share benchmark Sensex surged 221 points to close at 13159 hitting an intra-day low of 13193.13 and a low of 12861.35. NSE Nifty spurred 65 points to close at 3811 touching an intra-day high of 3818.75 and a low of 3718.75.

IFCI spurred by over 10% to Rs30 after Government announced that it would provide Rs13bn restructuring package to IFCI. The scrip touched an intra-day high of Rs30 and a low of Rs25 and recorded volumes of over 16,00,00,000 shares on NSE.

Sesa Goa fell over 7.5% to Rs1649 after the company said the government's plan to levy a tax on overseas sales of the steelmaking ingredient will lower profit. The scrip however recovered over 10% after hitting a low of 1485.

Bajaj Auto slipped over 4.5% to Rs2496 after the company's February total sales fell by 1.7% to 202212 units. The company announced that sales fell on Production Constraints. The scrip touched an intra-day high of Rs2644 and a low of Rs2496 and recorded volumes of over 4,00,000 shares on NSE.

Cement stocks further dropped lower after the Finance Minister announced that would impose an excise tax of 600 rupees per ton on cement sold at more than Rs190 per 50kg bag. ACC lost 3% to Rs875, India Cement has dropped 3.5% to Rs172, Gujarat Ambuja slipped further 2% to Rs113 and Grasim was down 0.8% to Rs2195.

Technology stocks ended on a firm note after getting beaten up in previous trading session. Frontline stocks Satyam Computer surged over 4% to Rs432, Wipro spurred over 4% to Rs585 and Infosys advanced 3% to Rs2140. Mphasis BFL, NIIT Ltd and Rolta were the major gainers among the Mid-Cap stocks.

Banking stocks also were among the major gainers. Heavy weight HDFC Bank surged by over 4.5% to Rs980, ICICI bank was up 3% to Rs855 and SBI added 1.3% to Rs1055. PNB, Canara bank and Union Bank were the major gainers among the Mid-Cap stocks.

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Market Update 2/28/2007

It was disastrous day for the markets on the Budget day wherein it opened on extremely bearish note on the back of negative cues from global markets. Markets were already on its downtrend for last two weak on account of hike in interest rates and untolerable inflationary pressure. It traded extremely subdued throughout the day amidst volatility but lost sharply in late trade and ended in deep red. It was the biggest fall since may 18, 2006. IT, metal, banking and auto stocks were the hardest hit sectors in todays trade. All the index pivotals closed in red and the markets breadth was extremely negative.

The Sensex was down 540.74 points or 4.01% at 12938.09, and the Nifty down 148.60 points or 3.82% at 3745.3. About 564 shares have advanced, 1864 shares declined, and 30 shares are unchanged.

The BSE Auto Index was down 3.69% or 195.69 at 5109.38. Escorts, Tata Motors, Ashok Leyland, Maruti Udyog, M&M, TVS Motor and Bajaj Auto witnessed selling pressure.

The BSE Bankex tumbled 4.28% or 286.81 points at 6408.01. PNB, UTI Bank, Oriental Bank, ICICI Bank, HDFC Bank and IOB closed down.

The BSE Capital Goods plunged 3.40% or 310.90 points at 8834.84. Gammon India, Bharat Elec, Praj Industries, L&T, Carborundum and SKF India ended in red.

The BSE Health Care index was slipped 3.16% or 114.14 points at 3498.93. Orchid Chemical, Glenmark, Divis Labs, Aurobindo Pharma, Nicholas Pirama and Ranbaxy Labs ended down.

The IT index succumbed 5.85% or 302.41 points at 4869.99. HCL Tech, Moser Baer, Satyam, Wipro, Mphasis and Hexaware Tech plunged.

The BSE Metal index was down 4.64% or 414.43 at 8513.55. Sesa Goa, NALCO, Tata Steel, Sterlite Ind, SAIL and Guj NRE Coke meltdown.

The BSE Oil & gas ended down 2.87% or 186.03 or 6297.64. ONGC, Reliance, Reliance Natura and Petronet LNG closed negative

Markets today:

Markets plunge on budget day amid global meltdown
Sensex down 540 points at 12938; Nifty down 149 points at 3745
Biggest fall for Sensex since May 18, 2006
BSE IT Index down 5.85; MAT imposed on IT cos
Satyam down 7.7%, Wipro down 7%, TCS down 5.5%, Infosys down 5%
Cement stocks in focus; excise duty up on sale price above Rs 190/bag
Guj Ambuja down 7.8%, ACC down 6%, Grasim down 5.3%
CNX Mid-cap Index down 3.5%; dragged by construction stocks
Construction stocks slide; sub-contactors not to get benefit under Sec 80 I (A)
Nagarjuna Cons down 19.2%, Hindustan Cosn down 16.26%, IVRCL down 15%
BSE Small-cap Index down 3% on broad based selling
New Listing: SMS Pharma closes at Rs 359.25 Vs listing price at Rs 360
NSE Advance Decline ratio at 1:6
Total market turnover at Rs 67889.95 cr Vs Rs 43918.29 cr

Turnover today:

NSE cash turnover - Rs 12671.46 crore
NSE F&O - Rs 49408.84 crore
BSE cash - Rs 5809.65 crore
Total Turnover - Rs 67889.95 crore

Indian stocks M-cap touches 91.5 pc of GDP

Sustained investor interest will keep alive the buoyancy in stock market, which peaked to 14,724 points this month, helping India catch up with mature markets in terms of market capitalisation to GDP ratio.

The ongoing financial and regulatory reforms for the capital market, together with accelerated economic growth and macroeconomic stability, sustained the investors' confidence in the country's capital market, said the Economic Survey tabled in Parliament on Tuesday.

India with a market capitalisation of 91.5 per cent of GDP compared favourably not only with the emerging markets but also with economies like Japan (96 per cent) and South Korea (94.1 per cent) and shows signs of catching up with some of the mature economies.

The market value of Indian stocks was second highest among all emerging markets, surpassing those of markets like Thailand, Malaysia, South Korea and Taiwan at the end of 2006.

In comparison, China's market cap was just 33.3 per cent of GDP at the end of 2006.

Market cap in terms of GDP indicates the relative size of capital market, besides investor confidence and discounted future earnings of corporate sector.

"Improved investor awareness and expanding equity cult among the small savers appear to augur well for buoyant stock markets," the Survey said.

The expectations of higher corporate investment and earnings, robust GDP growth and government's commitment to carry forward economic reforms are also expected to scale up FII (Foreign institutional investors) interest to retain India as one of the preferred destinations.

The investors' growing preference toward mutual fund route would further enhance institutional investment in equity markets, which along with regulatory support could cushion and counter-balance the impact of swings in the stock prices.

After scaling new peaks year after year since 2003, the benchmark 30-share index, Sensex, rallied from a low of 8,929 in June to an all-time high of 14,274 this month.

The journey from 13,000 to 14,000 mark that took just 26 trading sessions was one of the fastest ever 1,000-point rallies, the Survey said.

Market Update 2/27/2007

The markets ended in deep red on the budget eve due to selling pressure in stocks across sectors. All the BSE sector indices closed in red. Heavy selling was seen in banking, auto, FMCG and IT stocks.

In the auto sector two wheeler majors Hero Hinda ands Bajaj Auto were the top losers and in the banking sector ICICI Bank and OBC were the major losers.

Sensex closed down 170.69 points or 1.25% at 13478.83, and the Nifty down 48.10 points or 1.22% at 3893.9.

About 1274 shares have advanced, 1190 shares declined, and 54 shares are unchanged.

The BSE Small Cap Index closed at 6,918.29 up 24 points or 0.35%.

The BSE Midcap Index ended at 5,706.40 up 10 points or 0.17%.

The BSE FMCG Index lost 1.9% at 1,777.38. United Spirits, Nirma, ITC, Tata Tea, HLL closed in red.

The BSE Metal Index was down 0.8% to close at 8,927.98. NALCO, Jindal Saw, Sesa Goa, Sterlite Ind, Mah Seamless, Hindalco were among the losers.

The BSE Bankex was down 1.6% at 6,694.82. Oriental Bank, ICICI Bank, PNB, SBI, IOB moved downwards.

The BSE Health Care Index was plunged 0.3% at 3,613.07. Divis Labs, Sun Pharma, Ipca Labs, Matrix Lab, Aventis Pharma closed lower.

The BSE Capital Goods Index was down 0.7% at 9,145.74. Greaves Cotton, Lakshmi Machine, Siemens, Larsen, Alstom Projects ended lower

The BSE Auto Index closed at 5,305.07 down 1.13%. Hero Honda, Bajaj Auto, Sundaram-Clayto, Escorts, Tata Motors were among the losers.

The BSE IT Index closed at 5,172.40 down 1.4%. Satyam, Wipro, TCS, HCL Tech, Infosys ended weak.
The BSE Oil and Gas Index closed at 6,483.67 down 0.7%. ONGC, BPCL, Reliance Natura, GAIL ended in red.

The NSE cash turnover was at Rs 8141.93 crore and the NSE F&O turnover was at Rs 31766.48 crore. The BSE cash turnover was Rs 4009.88 crore. Total market wide turnover was at Rs 43918.29 crore.

Market Update 2/26/2007

The markets opened on strong note today but slipped in early trade. It traded under pressure throughout the day on the back of selling pressure across the board and witnessed deep crack of over 200 points in last one hours trade but saw splendid recovery to close in green with moderate gains.

The Sensex ended up 16.99 points or 0.12% at 13649.52, and the Nifty closed up 3.05 points or 0.08% at 3942. About 1203 shares had advanced, 1296 shares declined, and 46 shares were unchanged.

Markets Today:

- Markets bounce back from days low amid volatile session
- Sensex up 17 points at 13650; recovers 267 points from days low
- Nifty ends flat; recovers 86 points from days low
- BSE Metal Index up 2.52%; Tata Steel up 2.12%, Nalco up 2%, SAIL up 1.8%
- BSE Bank Indices up 1.10% each; SBI up 2.85%, PNB up 5.22%
- Cement stocks in focus; Guj Amb up 3.45%, ACC up 3%, Grasim up 3%
- CNX Midcap Index up nearly 1%; IVRCL up 9.4%, Rolta up 5.70%, Century Textile up 5.24%
- BSE Small-cap Index up ends flat; dragged by recent listings
- Recent listings; Pochiraju Ind down 7.34%, GBN down 4.5%
- New Listings: C& Construction close at Rs 241.45 Vs listing price of Rs 279 (Issue Price at Rs 291)
- New Listings: Transwarranty Finance close at Rs 47.45 Vs listing price of Rs 57 (Issue Price at Rs 52)
- NSE Advance Decline ratio at 1:1
- Total market turnover at Rs 47560.86 cr Vs Rs 50895.3 cr on Friday