Asian stocks fell, dragging the MSCI Asia Pacific Index lower for the third time in four days

The yuan headed for its biggest weekly gain since December 2008 as China set the currency’s daily reference rate at a record high against the dollar, allowing appreciation before the G- 20 meeting tomorrow. Taiwan’s central bank unexpectedly raised its benchmark interest rate for the first time since 2008, joining Asian policy makers from China to Malaysia in signaling confidence the global recovery will withstand Europe’s debt woes. Senate negotiators offered changes to the regulatory-overhaul bill that would strengthen part of the language banning proprietary trading at U.S. banks while giving them leeway to invest in private-equity and hedge funds.
The Mines Minstry is against any further stake dilution in Nalco. Food inflation rose to 16.9% for the week ended June 12 compared to the previous week ‘s 16.12% putting pressure on RBI to increase intrest rates. Century Plyboards to demerge cement,ferro-alloys business. Petronet LNG plans a rights issue to fund its propsed power project. Gmr –Malaysian airlines combine has won the contract for 360 million dollars for the airport at Male in Maldives. Alstom close to signing nuclear power projects deal with Bhel,Nuclear Power. Jet Airways in talks with various parties like Godrej Properties for developing its Bkc plot. Future Capital to focus highly on its retail,whoesale credit business. Nifty rolls over 70.28% compared to 65.99% in the previous expiry and 3 month average rolls of 69.3%. In no of contracts rolled over Nifty saw 15.68% higher no contracts rolled over compared to the previous expiry. Nifty rolls have been higher than the 3 month average in the number of contracts rolled over. Market wide rollover at 77% is in line with the average rolls. Textile, Banking, Fertilisers, Index, Realty, Capital Goods & Cement saw a rise in rollover compared to last expiry. Sugar, Media, Pharma, FMCG, Oil & Gas & Automobile saw a fall in rollover compared to previous expiry. Among Nifty stocks above 20% rise in rollover compared to last expiry was HCLTECH, KOTAKBANK, AMBUJACEM, RPOWER, ICICIBANK, WIPRO, IDFC & BPCL etc. Among Nifty stocks fall in rollover above 20% was seen ABB, GAIL, RANBAXY, HINDUNILVR, SUNPHARMA, SIEMENS, JINDALSTEL & STER etc. Among other stocks in F&O with significant rise in rollover were BGRENERGY, BOSCHLTD, PFC, STER, UNIPHOS, HCLTECH, YESBANK, ASIANPAINT, GRASIM, PANTALOONR, BANKNIFTY, KOTAKBANK, WIPRO, PATNI, DCHL, GODREJIND & VOLTAS etc. The new series begins with highest OI in Nifty puts at 5200 July strike and calls at 5500 July strike with an indicative support for the market around 5180 levels and resistances around 5450 levels. Nifty put call ratio at 1.191 is at a lower level compared to the open of the last expiry which was at 1.216.
Positive moves are expected in GODREJIND, GLAXO & VOLTAS during the earlier part of the expiry. Negative moves are expected in HCLTECH & KOTAKBANK Can see declines Nifty (5320): Index opened on a flat note and remained range bound throughout the day’s trading session. It ended the day with loss of 2 points. The index is facing stiff resistance around the 5342 level, intra day rallies are facing stiff resistance around this level. Till index is not sustaining above the 5342 level on a closing basis we can see profit taking in the near term. On the momentum chart, Stochastic (5, 3) is in overbought zone and in sell mode.RSI (14) is exhibiting a reading of 62.67(reading of 70 signifies overbought). Resistance can be expected around the 5342 level. On the downside index has support around 5300, break below 5300 can see index decline towards 5264-5205 (10dma) where support can be expected. Conclusion: Overbought reading suggests declines in near term.

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Most Asian stocks rose

Most Asian stocks rose as material companies jumped following Australian Prime Minister Kevin Rudd’s resignation over his proposed tax on mining. Japanese exporters fell on a slump in U.S. housing sales. The dollar declined to a six-week low against the pound as traders increased bets the Federal Reserve will keep interest rates near zero for longer in order to support a recovery in the world’s largest economy. American International Group Inc., the insurer bailed out by the U.S. government, will pay some executives in units whose value is tied mostly to debt, rather than common stock, as it seeks to retain managers. Service tax waived on power supply,services within ports in the North East.India’s handicraft exports grew by 19%to over 154.16 million dollars on strong US demand. Renuka Sugars to pay Rs.1151 crore for its acquisition of Brazilian company Equipav. Cable Corp to develop Rs.1000 crore realty project. Bank of Rajasthan board meet today to discuss further steps of its propsed merger with Icici Bank. Reliance Communications signs 5 year deal with African bank. Coal Ministry rules out more than 10% stake sale in Coal India instead of the mandatory 25% public float norm. Tata Motors to raise Rs.2500 crore via FCCB’s to reduce its debt. Nifty near contracts ends the Day up by 13.30 points adding OI by 9.3% during the day. Nifty rolls over 54.26% compared to 52.65% in the previous expiry and 3 month average rolls of 54.44%. In no of contracts rolled over Nifty saw 10.41% higher no contracts rolled over compared to the previous expiry. Nifty rolls have been higher than the 3 month average in the number of contracts rolled over. Among Nifty stocks above 20% rise in rollover compared to last expiry was RPOWER, ICICIBANK, KOTAKBANK, HDFCBANK, RELINFRA, AXISBANK, RELCAPITAL, HCLTECH & AMBUJACEM etc. Among Nifty stocks fall in rollover above 20% was seen ABB, HINDUNILVR, GAIL, SUNPHARMA, RANBAXY, SIEMENS, TCS, INFOSYSTCH, JINDALSTEL, TATAPOWER & HINDALCO etc. Among other stocks in F&O with significant rise in rollover were BGRENERGY, PFC, UNIPHOS, DCHL, APIL, GODREJIND, VIJAYABANK, YESBANK, ASIANPAINT, COLPAL, GLAXO, VOLTAS, BANKNIFTY, CESC, APOLLOTYRE, TATATEA, NAGARFERT, DABUR, BIOCON, GRASIM, ALBK, SUNTV, FEDERALBNK, ICSA, LUPIN, EKC, BANKBARODA &UNIONBANK etc Long build up seen in GTLINFRA, DRREDDY, TECHM, HCC, VIJAYABANK, ORCHIDCHEM, DENABANK, FORTIS, SINTEX, NAGARFERT, OPTOCIRCUI, DISHTV & UNITECH etc over the Day. Short build up seen in SOBHA, HCLTECH, MPHASIS, RPOWER, NTPC & RNRL etc over the Day. FII side saw long build up continuing in Nifty futures and short build up in stock futures. Nifty options was bought. Range bound moves is expected during the day with resistances at 5360 and supports at 5280 levels during the day. Trading around resistance Nifty (5323): Index opened on a negative note and remained range bound throughout the day’s trading session. It ended the day with gain of 6 points. The index faces resistance around the 5342 level (high of April 2010); profit taking can be expected around this level. Till index is not sustaining above the 5342 level on a closing basis we can see profit taking in the near term. On the momentum chart, Stochastic (5, 3) is in overbought zone and in sell mode.RSI (14) is exhibiting a reading of 62.92(reading of 70 signifies overbought). The index has closed around the 5342 level, sustaining above 5342 can see index the index test higher levels around 5500 in the near term.
On the downside index has support around 5300, break below 5300 can see index decline towards 5264-5205 (10dma) where support can be expected. Conclusion: Sustaining above 5342 can see higher levels in near term

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Asian stocks fell, dragging the MSCI Asia Pacific Index to its biggest drop in two weeks

The euro declined to a one-week low against the yen on concern that European banks will incur rising loan losses from the region’s debt crisis, hampering the worldwide economic recovery. China’s yuan held this week’s gains against the dollar, even as Asian currencies dropped, on speculation that China’s central bank is allowing a stronger currency to curb inflation after ending a two-year peg. Investors are returning to junk bonds after the worst month since 2008 on speculation the economy is growing fast enough to avert corporate defaults without sparking inflation. The Enpowered Group of Ministers will meet on Friday to decide on hike in petrol and diesel. Reliance telecom arm Infotel and other telecom firms have paid Rs.30,229 crore towards broadband wireless spectrum. Wochardt promoters pledge 61.87% stake i.e 67 million shares of their holdings in the company. Piramal Healthcare to acqure assets of Canadian medical device firm Biosyntech for Rs.15 crore. Reliance close to acquiring second shale gas field in US by paying Rs.6200 crore. Netherlands based Rabobank sells 11% stake in Yes Bank. Shree Cements will invest Rs.450 crore this year to set up a 1.5 million clinker and grinding unit in Rajasthan. Bharti Airtel to invest 100 million dollars in the next three years on expansion in Malawi in Africa.
Nifty near contracts ends the Day down by 37.35 points adding OI by 14.4% marginally during the day. Nifty rolls over 40.18% compared to 44.59% in the previous expiry and 3 month average rolls of 42.18%. In no of contracts rolled over Nifty saw 20% lower no contracts rolled over compared to the previous expiry. Nifty rolls have been higher than the 3 month average in the number of contracts rolled over. Among Nifty stocks above 20% rise in rollover compared to last expiry was HDFCBANK, RELINFRA, RPOWER, RELCAPITAL, BPCL, M&M, ICICIBANK & SBIN etc. Among Nifty stocks fall in rollover above 20% was seen ABB, GAIL, HINDUNILVR, SIEMENS, TCS, INFOSYSTCH, JINDALSTEL, HEROHONDA, RANBAXY & HINDALCO etc. Among other stocks in F&O with significant rise in rollover were BGRENERGY, APIL, UNIPHOS, STER, PFC, CNXIT, GODREJIND, VOLTAS, DCHL, COLPAL, ASIANPAINT, YESBANK, BANKBARODA, LUPIN, ICSA, CHENNPETRO, APOLLOTYRE, VIJAYABANK, CESC, BANKNIFTY, KSOILS & BIOCON etc Long build up seen in BIOCON, JPPOWER, BOSCHLTD, VOLTAS, HINDPETRO, ESSAROIL, IOC, TTML, GODREJIND, PRAJIND, NATIONALUM, RECLTD, DISHTV & RENUKA etc over the Day. Short build up seen in JINDALSTEL, PATNI, ACC, TECHM, ULTRACEMCO, WELCORP, IDFC, LITL, INDIACEM & WIPRO etc over the Day. FII side saw significant addition in Nifty futures during the session and Nifty options was bought during the session. Stock futures was sold with a rise in OI indicating short build up. Nifty near puts saw paring of positions and near calls saw addition over the day. Addition in near calls was in 5300 and 5400 strike during the day with indications of resistance area moving down. Market bias is expected to be negative to neutral during the day with supports seen around 5280 – 5260 levels. Resistance around 5342 Nifty (5262): Index opened on a negative note and remained range bound throughout the day’s trading session. It ended the day with loss of 37 points. The index is facing resistance around the 5342 level (high of April 2010); profit taking can be expected around this level. Till index is not sustaining above the 5342 level on a closing basis we can see profit taking in the near term. On the momentum chart, Stochastic (5, 3) is in overbought zone and in sell mode.RSI (14) is exhibiting a reading of 62.56(reading of 70 signifies overbought).Overbought reading on momentum oscillators suggest index can dip down in near term. On the downside index has support around 5300, break below 5300 can see index decline towards 5205 (10dma) where support can be expected. Conclusion: Overbought in near term can decline from current levels.

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Asian stocks fell for the first time in nine days after Fitch Ratings

The Chinese yuan weakened 0.24 percent, the biggest decline since December 2008, after the central bank sought more flexibility in the currency. The yen traded near a one-week high against the euro on speculation that European banks will struggle to raise money amid the debt crisis, supporting demand for Japan’s currency as a refuge.
The Petroleum Minister,Murli Deora has told states to reduce and rationalize VAT and sales tax on auto fuels-petrol and diesel. Sick Psu’s may get loans at priority sector rates if the finance ministry agrees to a proposal suggesting thast loans be classified as priority sector lending. BEML to invest Rs.680 crore in new, existing facilities over the next five years. Hinduja Global Solutions ,the BPO arm of the Hinduja Group has acquired UK-based customer relationship management company Careline Services. Oil India gets extension for petroleum licenses for 10 of its 16 exploration blocks in Assam and A.P. Tata Steel gets environmental ministry clearance for expansion of its Jamshedpur plant. Bharti Airtel to invest 100 million dollars in Uganda over two years. Nifty near contracts ends the Day up 96.50 points Paring OI marginally during the day Nifty rolls over 27.16% compared to 29.41% in the previous expiry and 3 month average rolls of 31.5%. In no of contracts rolled over Nifty saw 22.13% lower no contracts rolled over compared to the previous expiry. Among Nifty stocks above 20% rise in rollover compared to last expiry was SAIL, ITC, RELCAPITAL, LT, HDFCBANK, RELINFRA, BPCL, M&M, ICICIBANK, RPOWER, AMBUJACEM, INFOSYSTCH, RELIANCE & SBIN etc. Among Nifty stocks fall in rollover above 20% was seen ABB, GAIL, TCS, ACC, HCLTECH, HINDUNILVR, ONGC, GRASIM, RANBAXY & HINDALCO. Among other stocks in F&O significant rise in rollover was seen in UNIPHOS, INDIACEM, APIL, ICSA, COLPAL, BANKBARODA, EKC, CESC, BIOCON, PIRHEALTH, FEDERALBNK, LUPIN, MCDOWELL-N, ABAN, BRFL, TATACOMM, ABIRLANUVO, VIJAYABANK, KSOILS, DABUR, NAGARFERT, BHUSANSTL, INDIAINFO, ASIANPAINT, GTOFFSHORE,TV-18 & VOLTAS etc. Long build up seen in TATATEA, APIL, VOLTAS, HINDZINC, GMDCLTD, SAIL, ICSA, DLF, BANKNIFTY, BANKINDIA, IBREALEST, BRFL, ICICIBANK, GODREJIND, NOIDATOLL, OPTOCIRCUI, KOTAKBANK, RELMEDIA etc over the Day.
Short build up seen in PATNI, GTLINFRA, ONMOBILE, FORTIS etc over the Day. Nifty options addition in near contracts has now moved to higher strikes with indications of market supports moving higher. 5300 and 5400 June puts and 5400 and 5600 June calls saw significant addition over the day. Nifty VIX moved down and Nifty OI PCR moved up indicating continuing positive bias. Lower rolls is seen in Nifty and a rise in rollover activity could increase the volatility and probably some downside pressure during the day. Market supports seen around 5280 levels during the day.
Trading near Resistance Nifty (5353): Index opened on a positive note and exhibited strength throughout the days trading session. It ended the day with gain of 90 points.
The index has closed around the critical resistance level of 5342.Sustaning above the 5342 level on a closing basis can see the index test higher levels around 5400 (high of April 2010).Index can see range bound movements around 5300 level with intra day volatility. Support: The index has support around 5294, break below 5294 can see index drift down towards lower support around 5250. Conclusion: Bias positive above 5342.

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BULL’s EYE – INDUSIND BANK LIMITED

The present price is Rs.198. The returns from the present price is 26% Incorporated in the year 1994, IndusInd Bank is amongst the leading private sector banks in the country. The Bank has a network of 210 branches and 497 ATMs spread over 168 cities across the country. The Bank also has representative offices in Dubai and London.

Dramatic improvement seen over the last two years:

The new management, under the able leadership of Mr. Romesh Sobti ( CEO & MD), from ABN Amro Bank took the charge in early 2008. At the time of entry, the management team had set certain benchmarks for itself to be achieved over a three year time horizon. The management team identified the product and service offerings missing in the Bank’s portfolio and bridged the gap by offering the missing products and services. As a result, the operating ratios of the Bank have seen a phenomenal improvement over the last two years. Net Interest Margin of the Bank has improved from 1.37% in FY’08 to 2.88% in FY’10. The Cost-to-Income ratio has declined from 67.21% in FY’08 to 51.12%. Net NPAs have reduced from 2.27% to 0.50% in FY’10. To sum it up, during this period, the net profit of IndusInd Bank has increased from Rs.75.05 crore in FY’08 to Rs.350.31 crore in FY’10.

On a strong growth trajectory:

The Bank Management has targeted to scale up the branch network to 310 at the end of FY’11 and 700 at the end of three years from the present figure of 210. The management has set aside a sum of Rs.40 crore in FY’11 for ‘branding exercise’. The Bank is likely to take a new name – Partners Bank. These two initiatives are expected to scale up the CASA of the Bank from the present levels of 23.7% to around 30% in FY’11E.

Cost/Income Ratio to remain under check:

The Bank has recruited 2650 employees over the last two years and plans to hire another 1000 employees in FY’11. A significant portion of these employees would be having variable pay structure. As a result, inspite of the aggressive expansion plans, the management expects to reduce the Cost/Income Ratio by 200 basis points over the next one year (from the present levels of 51.12%).

Financials & Valuations:

In In FY’10, the Bank registered interest income of Rs.2706.99 crore, an increase of 17.2% on a y-o-y basis. Other Income registered an increase of 21.3% y-o-y to Rs.553.48 crore. The Bank registered a net profit of Rs.350.31 crore, y-o-y increase of 136.2%. EPS for 2009-10 was Rs.9.01 (2008-09 Rs.4.28). The Adjusted book value per share of IndusInd Bank increased from Rs.35.20 on 31-Mar-09 to Rs.50.27 as on 31-Mar-10. We expect the Bank to register interest income of Rs.3573.20 crore for FY’11E. Net profit for the corresponding year is expected to be Rs.464 crore. This translates into an EPS of Rs.11.3 and adjusted book value of around Rs.60. Considering the fact that the Bank is expanding its branch network, continuously adding new products and services to its existing portfolio, we recommend a “BUY” with a target price of Rs.250 over the next 6 to 9 months.

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Emami Limited (Emami) is the flagship company of the Kolkata based Emami Group

Emami Limited (Emami) is the flagship company of the Kolkata based Emami Group. Apart from the FMCG space, Emami Group also has interests in paper, construction, cement and real estate. Emami Limited is engaged in the manufacture of personal and health care products. The company’s top four brands, namely, Navratna, Boroplus, Zandu and Fair and Handsome contribute about 60 per cent to Emami’s topline. All the brands did well in Q3FY’10. Brands like Navratna oil, Boroplus antiseptic cream, Fair and Handsome and Menthoplus Balm reported revenue growth of 25%, 15%, 10% and 13% respectively (y-o-y), in Q3FY’10. Emami is focusing on smaller variants of Navratna Extra Thanda oil and Navratna Lite oil. Navratna hair oil constitutes approximately 24 per cent of the company’s standalone sales. Recently, the company launched a Rs.10 SKU of Navratna oil, thus filling in the vacuum it had at this price point. The company is also looking at increasing the distribution of Navratna oil in men’s parlours, where the oil is used for head massages. At present, this distribution channel contributes only 5 per cent of sales, however, we feel that this is an important brand awareness initiative taken by the company. Post the acquisition of Zandu, Emami Limited has achieved the operating efficiencies it was looking for. This includes the savings in production and cost of goods sold (COGS) along with reduction in trade margins. In FY’09, the COGS was 34 per cent of sales. Going forward, the management feels that the COGS could reach a normalized level of 37 per cent from FY’11. The company shifted its Zandu balm production from Gujarat to an excise free location in Pantnagar, in May 2009, thus helping in higher realizations and margin expansion. Due to some mold issues in the manufacture of Rs.2 Zandu balm SKU’s, the launch of the Rs.2 pack had been postponed. However, with the issues being resolved, the company plans to launch the new Rs.2 SKU of Zandu Balm, going forward from Q1FY’11. The company has plans to set up manufacturing plants in Egypt and Bangladesh, over the next two years. Each plant would incur a capex of Rs.10-12 cr (approximately). The company management plans to have at least three manufacturing units in Africa in the next three years and is closing in on an acquisition in Egypt as part of its strategy to expand in the continent. Going forward, the company plans to strengthen its presence in international markets like US, CIS and UK. At the current market price of Rs.646 the stock is trading at 28.30x its FY’10E earnings and 20.92x its FY’11E earnings. Emami is one of the fastest growing FMCG companies in India, in the ayurvedic space. The company’s dominant presence in niche categories and low penetration and minimal presence of MNC’s in the space it operates in, augurs well for the company. The synergies of Zandu’s brands with Emami’s brands are strengthening, with continuous launch of new products under these bands. Going forward, the company will focus on products offering high margins, thus ensuring superior profitability. Taking all this into consideration, we recommend a “BUY” on the stock with a target price of Rs.780 over the next 12 months.

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Credit-default swaps soared on German Chancellor Angela Merkel’s plan to ban speculation on European government bonds

The euro slid to a four-year low against the dollar, and stocks and copper tumbled after Germany banned certain bearish investments, fueling speculation that European debt crisis will worsen. Australian consumer confidence tumbled by the most in 19 months after the central bank boosted borrowing costs for the sixth time since October and concern about European debt triggered turmoil on financial markets.
Hewlett-Packard, the world's largest technology company, used its heft to push sales and income higher last quarter as both consumers and businesses upped their spending on HP's computers and printers. HP (HPQ, Fortune 500)'s net income rose 28% in its second fiscal quarter, ended April 30, to $2.2 billion, or 91 cents per share. That's up from $1.7 billion a year ago. The Securities and Exchange Commission proposed new rules that would pause trading in certain stocks that experience extreme swings. The move is in response to the brief but historic stock market crash of May 6, in which the Dow Jones industrial average fell nearly 1,000 points, its biggest intra-day drop on record, before the index rebounded within a matter of minutes. The Telecom Regulatory Authority of India (TRAI) has told the telecom ministry that two key recommendations are still in progress and that the ministry should wait for the finished article before taking any decision. The Cabinet Committee on Economic Affairs is likely to consider raising the price of natural gas sold under administered pricing mechanism at its next meeting later this week. An empowered group of ministers headed by finance minister Pranab Mukherjee is likely to meet on June 7, 2010 to look into the recommendations of the Kirit Parekh Committee on raising fuel prices. The Government is expected to launch NELP- IX in July. Bank of Rajasthan will merge with ICICI Bank. The share swap ratio has been set at 25 shares of ICICI Bank for every 118 shares of Bank of Rajasthan. Vodafone Group has cut the value of its Indian arm, Vodafone Essar, by USD3.2 billion because of a price war triggered by stiff competition and future payments for spectrum. RIL and RNRL have started final talk on gas pricing. Kumar Mangalam Birla will convert preferential warrants into equity shares in Aditya Birla Nuvo. Maruti Suzuki is pressing its vendors to speed up their capex plans.Godrej Consumer Products may raise as much as USD150 million from selling shares to fund its purchase of Sara Lee’s stake in an Indian venture and other acquisitions. MindTree has announced a partnership with the Carlyle Group for its global data centres. L&T is not happy with Mahindra Satyam for keeping its investors in the dark over detailsof its performance. Chennai Petroleum is planning 9 million tonne expansion at a cost of Rs.10000 crore. Nifty May contracts ends the Day marginally up by 5.35 points a discount of 2.80 points in May contracts and paring OI by 0.80% across all active Nifty contracts. Nifty VIX at 26.54% compared to 27.17% previous Day. Nifty OI PCR at 1.084 compared to 1.102 the previous Day. Nifty call options adds 14.40 Lakh and put option adds 2.81 Lakh over the Day. Highest OI in Nifty calls seen at 5300 May strike and puts at 5000 May strike. Long build up seen in TITAN, FEDERALBNK, GAIL, LT, ASIANPAINT, OPTOCIRCUI, CUMMINSIND, PETRONET, BEML, GRASIM & AMBUJACEM etc. Short build up seen in SUNTV, ROLTA, AUROPHARMA, TATAMOTORS, GODREJIND, JINDALSTEL, PRAJIND, SESAGOA, JSWSTEEL, HDIL, HINDZINC, ZEEL, EDUCOMP & MUNDRAPORT etc. FII side saw short covering in Nifty, long build up in stock futures and Nifty options is seen to be sold with a rise in OI with indications of Options writing over the day. Nifty: (5066). The index opened a negative note and witnessed range bound movement throughout the day’s trading session. It ended the day with gain of 6 points. Falling Channel & 10 dma: The index is in downtrend and is in a falling channel formation. Resistance can be expected around the upper end of the channel around 5100 level. Till the index is sustaining below the upper end of the channel on a closing basis the near term volatility is likely to continue. Index is facing resistance around the 10 dma level around 5111.Close above the 5111 level with rise in volumes will see index inch higher towards 5200 mark. Support: Index has critical support around the 200 dma level around 4987, higher support is around 5018. Resistance : Index faces resistance around 5100-5111 range. Conclusion: Expect intra day choppy movement with resistance around 5111.

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Kharif crop is expected to see a shift to cash crops.

ABB announced an open offer to shareholders of ABB India to acquire 22.89 per cent stake in it at Rs.900 a share. Tata Steel and Steel Authority of India Limited have initiated discussions to float a joint venture to produce steel. GAIL has registered a 45 per cent increase in net profit in Q4FY’10. Axis Bank has received bids from six suitors for its private equity arm. DLF confirmed that it had decided to sell its stake in ultra-luxury hotel group Aman Resorts. Shree Renuka Sugar’s Rs.1530 crore deal to acquire Brazilian sugar and ethanol maker Equipav may be called off. Tata Steel is keen on forming a JV with Steel Authority of India to set up a steel plant.
L&T recorded a 44% growth in fourth quarter net profit on better sales. The management has given a guidance of 20% revenue growth in FY’11. Aban Offshore may see its revenues fall by 15% on account of the loss of the rig. GAIL India has posted Rs.3140 crore net profit in FY’10, an increase of 12% y-o-y. Patel Engineering has emerged as the lowest bidder for contracts worth Rs.3000 crore. NTPC Ltd. is planning to float a tender to supply super critical equipment valued at Rs.19200 crore. Nifty May contracts ends the Day down by 25.60 points a discount of 9.85 points in May contracts and adding OI by 3.3% across all active Nifty contracts with indications of significant short covering. Nifty VIX at 27.17% compared to 26.53% previous Day. Nifty OI PCR at 1.102 compared to 1.118 the previous Day. Nifty call options adds 19.13 Lakh and put option adds 11.13 Lakh over the Day. Highest OI in Nifty calls seen at 5300 May strike and puts at 5000 May strike. Long build up seen in DENABANK, BGRENERGY, TATATEA, UCOBANK, LT, ABB, VIJAYABANK, DABUR, SIEMENS, LITL & KOTAKBANK etc. Short build up seen in DLF, IVRCLINFRA, POWERGRID, RELINFRA, JPASSOCIAT, PUNJLLOYD, WIPRO, CHENNPETRO, RELIANCE, BHUSANSTL, ROLTA, TATAMOTORS, HDIL, KFA, MTNL & ACC etc. Long liquidation seen in BALRAMCHIN, BHARATFORG, ZEEL, AREVAT&D, HINDUNILVR, MCLEODRUSS, ALBK, GSPL, AUROPHARMA, IBREALEST & PRAJIND etc. FII side saw short build up in Nifty and stock futures and Nifty options is seen to be bought over the day Bounces from 200 dma.Bias Down Nifty: (5060). The index opened a panic note and witnessed recovery post after noon trades. It ended the day with loss of 34 points. 200 dma: The index witnessed support around the 200 dma @ 4984 and saw intraday pullback. The level of 200 dma is critical support level. The index faces resistance around 10 dma level around 5117, intra day bounce will face resistance around this level. Pattern: Falling Channel: The index is in downtrend and is in a falling channel formation. Resistance can be expected around the upper end of the channel. Till the index is sustaining below the upper end of the channel on a closing basis the short term downtrend is likely to continue. The upper end of the channel is around 5112 level. Support: Index has critical support around the 200 dma level around 4984, break below 4984 can see index testing lower levels around 4900. Conclusion: Sell intraday rise towards 5120 levels.

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Asia stocks fell the most in a week after Sony Corp.

Approximately 444,000 Americans filed new claims for unemployment last week, according to the weekly jobless claims report from the Labor Department, the lowest number since late March. Claims stood at a revised 448,000 the previous week. Economists surveyed by Briefing.com expected claims to fall to 440,000. It was the fourth consecutive week of declining claims, but the improvement hasn't been sufficient to drive real job growth. Continuing claims, a measure of Americans who have been receiving benefits for a week or more, rose to 4,627,000 from 4,615,000 the previous week. Economists expected 4,570,000 on average. The Government plans to create a Rs.50000 crore dedicated fund to set right the country’s creaking infrastructure and could raise 40% of the corpus from overseas investors. Passenger traffic vaults 26% in the month of April, 2010. The Greek debt crisis will not force the Reserve Bankvof India to give up its hawkish monetary policy as per the RBI Dy Governor. Aban Offshore’s gas platform sank on the coast of Venezuela. This was one of Aban’s biggest money-spinning rigs, earning USD358000 a day. RIL may join ONGC consortium in Venezuala. This consortium is expected to bag another hydrocarbon block in the oil-rich Orinocobetl of Venezuela. Standard Chartered is likely to raise around USD600 million through India listing. Tata Power reiterated its stand no to supply electricity to Reliance Infra at regulated rate from Monday. IndusInd Bank is planning to change the name to Partners Bank. RJ Corp, the diversified firm with interests across food, beverages and retail, will dilute 10-12% equity in one of its subsidiaries to fund expansion. MRF is planning to raise debt to part-fund its capex this year. Kingfisher Airlines has appointed SBI Caps to restructure its debt. REC is planning to borrow Rs.21000 crore in FY’11. Godrej Consumer shall pay Rs.1050 crore to buy SaraLee’s 51% stake in joint venture. Birla Corp is planning to Rs.4000 crore capex to increase its capacity. Resistance around 5200 Nifty: (5179). The index opened on a positive note and exhibited range bound trading. It closed on a positive note with a gain of 22 points. Moving Average: The index is facing resistance around the short term averages.10 dma = 5155; 20 dma = 5208 and 50 dma = 5218.Index is facing resistance around the short term averages. Consolidation: The index is for the last three trading sessions is consolidating in a band of 5212 on the upside and 5098 on the downside. Breakout from this consolidation will see index exhibit strength and test higher levels. Support: Index has support around 5140-5100. Resistance: Index faces resistance around 5200-5218. Conclusion: Buy intraday declines wit stop loss below 5140 Nifty May contracts ends the Day up by 27.95 points a discount of 0.75 points in May contracts and paring OI by 2.2% across all active Nifty contracts. Nifty VIX at 24.16% compared to 25.82% previous Day. Nifty OI PCR at 1.181 compared to 1.181 the previous Day. Nifty call options adds 25.16 Lakh and put option adds 26.72 Lakhs over the Day. Highest OI in Nifty calls seen at 5400 May strike and puts at 5000 May strike. Long build up seen in PFC, PIRHEALTH, EKC, PATELENG, GLAXO, TRIVENI, TITAN, LICHSGFIN, ACC, ICSA, JSWSTEEL, FEDERALBNK, HOTELEELA, MLL, INDHOTEL, IBREALEST & CROMPGREAV etc. Short build up seen in POLARIS, NAGARCONST, ONMOBILE, DENABANK, ABAN, ORIENTBANK, SESAGOA & MCLEODRUSS etc.
FII side saw short covering in Nifty & stock futures and Nifty options was seen to be bought

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Posco, the third-largest shareholder in Macarthur Coal Ltd.

Emerging-market bond funds received an unprecedented $1.8 billion in the past week, lifting 2010 inflows to a record, on speculation central banks will raise interest rates, according to EPFR Global. Posco, the third-largest shareholder in Macarthur Coal Ltd., said it supported Peabody Energy Corp.’s revised A$4.1 billion ($3.8 billion) cash offer for the Australian producer in the absence of a higher bid.
Malaysia’s Senai-Desaru Expressway Bhd. plans to restructure 1.46 billion ringgit ($456 million) of Shariah-compliant bonds to avoid becoming the country’s biggest Islamic-debt defaulter in more than two years. Google posted quarterly sales and profit that trumped Wall Street expectations on Thursday, boosted by a rebounding advertising market. The search giant's net income was $1.96 billion, or $6.06 per share, in the first quarter, up 38% from $1.42 billion from the same period last year. The yen and the dollar strengthened as prospects Greece will struggle to rein in the euro region’s widest budget deficit spurred demand for safer assets. Blackstone Group LP and other private-equity firms are accelerating sales of junk bonds and leveraged loans to pay themselves dividends in a sign the market for the riskiest debt may be overheating. Inflation touched a 17-month high of 9.9% in March spurred by an all-round increase in prices, mounting pressure on the central bank to raise key policy rates in the monetary policy review next week. Domestic air traffic was up 21.8 per cent in March 2010 on a y-o-y basis. For the fourth time in two months, state-owned oil retailers have raised ATF prices, this time by 3.2 per cent, in step with rise in global oil rates. Tata Motors sold 101,712 vehicles globally in March 2010, registering a growth of 39 percent over the corresponding month last year. GMR Infrastructure has initiated the sale of shares to overseas institutional buyers to raise up to USD 250 million (about Rs 1,100 crore). Viceroy Hotels has said that JP Morgan India Property Mauritius Company will pick up a 49 per cent stake in its Bangalore-based subsidiary for Rs 74 crore. Nitin Fire Protection Industries Ltd has raised its stake by 9 per cent in Dubai-based New Age Company to 49 per cent. Dewan Housing Finance (DHFL) plans to raise up to Rs 5,000 crore in the current fiscal to support its expansion plans besides meeting the capital adequacy needs. Castrol India’s net profit rose by 53.60 per cent to Rs 117.2 crore for the quarter ended March 31. Mangalore Refinery and Petrochemicals Ltd (MRPL) will double offtake of crude oil from Cairn India's Rajasthan fields to 0.4 million tons this fiscal. Videocon Group is keen to set up a 1,000 MW thermal power project in Punjab with an investment of Rs 5,000 crore. SAIL is in talks with South Korean steel major Posco and Japan's Kobe Steel for technology tie-ups to jointly set up steel plants.
Promoters of MCX Stock Exchange have sold part of their holdings and reduced the capital of the bourse to fall in lines with Sebi rules and pave the way for the launch of its stock trading platform. Japan’s JFE is in advanced talks to buy a small stake in JSW Steel. Triveni Engineering has decided to shut its loss making rural retail business. Nifty April contracts ends the Day down by 52.30 points at a premium of 3.70 points in April contracts and adding OI by 0.8%. Nifty VIX at 21.58% compared to 20.14% previous Day. Nifty OI PCR at 1.228 compared to 1.277 the previous day. Nifty active puts sees addition of 0.94 Lakhs and calls sees addition of 21.58 Lakhs over the Day. Highest OI in Nifty calls seen at 5200 April strike and puts at 5400 April strike. Long build up during the day seen in UNITECH, PIRHEALTH, TITAN & CUMMINSIND etc over the day. Short build up was seen in LICHSGFIN, MCDOWELL-N, CANBK, CROMPGREAV, VOLTAS, INDIAINFO, YESBANK, ICICIBANK, HCC, FORTIS, PETRONET, ABIRLANUVO, EKC & RELIANCE etc over the day. Long unwinding and short build up seen from FII side during the day. Marginal short build up seen in stock futures from FII side. Nifty options was seen to be bought from the FII side.

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China’s economic growth accelerated to the fastest pace in almost three years.

China’s economic growth accelerated to the fastest pace in almost three years in the first quarter, adding pressure on Premier Wen Jiabao to sever the yuan’s peg to the dollar and raise interest rates. Gross domestic product rose 11.9 percent from a year earlier. Six banks have been hired by Agricultural Bank of China to arrange the Hong Kong portion of what may be this year’s largest initial public offering, according to seven people familiar with the matter. Singapore is looking forward to “good” growth this year, Prime Minister Lee Hsien Loong said after the island’s economy expanded in the first quarter at the fastest pace since at least 1975. U.S. homebuilder bonds have recovered to levels last seen before credit markets seized up as investors gain confidence that the economic recovery is strong enough to prevent borrowers from defaulting. Goldman Sachs Group Inc., JPMorgan Chase & Co. and their biggest rivals would be forced to wall off derivatives trading operations from their commercial banks under a measure to be introduced by Senate Agriculture Committee Chairman Blanche Lincoln, a congressional aide said. According to a report from the National Conference of State Legislatures released on Wednesday, states will have to find a way to close an $89 billion budget gap before their 2011 fiscal year begins in July. The rupee has been one of the best performing currencies among emerging market economies in the first quarter of 2010. The government has backed SEBI’s decision to bar 14 insurance companies from issuing new unit-linked schemes or products. Indian economy is seen growing at a faster pace in FY’11 than earlier expected, supported by a global recovery, domestic demand and a double-digit expansion in factory output. Solar power scheme has attracted proposals worth Rs.2.29 lac crore. Infosys has bagged a USD150 million order from Microsoft Limited.
Godrej Consumer is planning to bring products of Kinky and Keyline in India. Ranbaxy Limited is voluntarily recalling two consignments of one of its antibiotics from the US market. Strides Arcolab has received USFDA approval for anit-nausea drug. ABB has bagged Rs.63 crore order from Haryana Vidyut Prasaran Nigam. Nifty April contracts ends the Day down by 14.20 points at a premium of 6.65 points in April contracts and adding OI by 1.1%. Nifty VIX at 20.14% compared to 20.04% previous Day. Nifty OI PCR at 1.277 compared to 1.292 the previous day. Nifty active puts sees addition of 9.72 Lakhs and calls sees addition of 13.81 Lakhs over the Day. Highest OI in Nifty calls seen at 5400 April strike and puts at 5200 April strike. Long build up during the day seen in INFOSYSTCH, CNXIT, TATACHEM, ROLTA, PATELENG, TCS & CENTURYTEX etc over the day. Short build up was seen in PFC, STER, PUNJLLOYD, YESBANK, SAIL, IDFC, MRPL & SYNDIBANK etc over the day. Long unwinding and marginal short build up seen from FII side during the day. Short covering and marginal long build up seen in Stock futures from the FII side. Nifty options was seen to be bought from the FII side.

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European governments offered debt-

European governments offered debt- plagued Greece a rescue package worth as much as 45 billion euros ($61 billion) at below-market interest rates in a bid to stem its fiscal crisis and restore confidence in the euro. China’s trade deficit is likely to be only temporary and surging import costs may fuel inflation, bolstering the case for a stronger yuan. A surplus may return this month, according to the government and analysts from Bank of America-Merrill Lynch and ANZ Banking Group Ltd. The cost of protecting Asia-Pacific corporate and sovereign bonds from default fell as a proposed rescue package for Greece helped calm investors, boosting risk appetite, according to traders of credit-default swaps. South Korea’s economy will expand this year at the fastest pace since 2006, and probably grew 1.6 percent in the first quarter, as the global recovery spurs demand for the nation’s products. The luxury Peninsula hotel chain plans to open properties in China and India, where expanding economies and rising consumer wealth promise demand for high-end lodging, said Clement Kwok, chief executive officer of owner Hongkong & Shanghai Hotels Ltd. Tenaga Nasional Bhd., Malaysia’s biggest power producer, rose to its highest level in almost two years after JPMorgan Chase & Co. increased its earnings and share price estimates on a strengthening ringgit and economy. China is softening its recent muscular global posture, muting criticisms of the U.S. at a time of delicate negotiations with Washington and simmering economic troubles at home. Energy providers Mirant Corp. and RRI Energy Inc. said that they are combining in a $1.61 billion stock-swap deal, renaming the company and creating a utility powerhouse that will become one of the nation's largest independent power producers. The combined company, which will have a market capitalization of about $3.1 billion, will be called GenOn Energy. It will bring together roughly 24,650 megawatts of electric generating capacity, operations from coast to coast and have total revenue of $4.13 billion, based on full-year 2009 figures. The Government is looking at disinvestment in public sector undertakings across the services sector. The Finance Ministry has identified 28 different PSUs for public issue. J P Morgan expects FY’11 inflows in debt and equity to be the highest. Government may have to step in to settle the issue between SEBI and IRDA. Banks are exploring options to lend below the base rate. RIL has bought 21% of US-based Atlas Energy’s Shale gas holdings and 40% of north-eastern gas field. Tata Steel and NMDC will team up to develop the latter’s two steel projects in Karnataka and Chhattisgarh. Tata Motor is planning to sell part of its shareholding in Tata Cummins, a JV with Cummins. SEBI has approved IPO of Glenmark’s generic arm. NHPC is seeking approval for 10,000MW projects. Spicejet has rejected ADAG offer of Rs.40-45 per share. Nifty April contracts ends the Week up by 58.10 points at a premium of 3.15 points in April contracts and adding OI by 0.7%. Nifty VIX at 18.44% compared to 17.62% previous Week. Nifty OI PCR at 1.394 compared to 1.194 the previous week. Nifty active puts sees addition of 1.58 Cr and calls sees addition of 51.89 Lakhs over the Week. Highest OI in Nifty calls seen at 5400 April strike and puts at 5200 April strike. Long build up during the week seen in PETRONET, TATATEA, GVKPIL, VOLTAS, MRPL, GSPL, LICHSGFIN & STER etc over the week. Short build up was seen in TRIVENI, SESAGOA, DRREDDY, RENUKA, BHARTIARTL etc over the week. Short covering and long build up seen from FII side during the week in Nifty futures Short build up seen in Stock futures from the FII side. Good addition in Nifty options seen during the day from the FII side.

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Most Asian stocks fell, led by Japanese and South Korean exporters

The number of Americans filing new claims for unemployment rose to 460,000 last week from a revised 442,000 the previous week, the Labor Department said Thursday morning. Economists surveyed by Briefing.com had expected 435,000 claims, on average.
Continuing claims, a measure of those Americans who have been receiving benefits for a week or more, fell to 4,550,000 from 4,681,000 the previous week. Economists surveyed by Briefing.com thought continuing claims would fall to 4,630,000. Most Asian stocks fell, led by Japanese and South Korean exporters, as Goldman Sachs Group Inc. downgraded Canon Inc. and the won strengthened. Commodity and consumer-staple companies gained. China may post its first trade deficit in six years after a surge in imports of commodities and consumer goods, weakening U.S. arguments that the nation is keeping its currency undervalued to gain an advantage. The 3G spectrum auctions process will begin today. Food inflation for the week ended March 27, 2010 stood at 17.7%. Life insurance companies see 18% growth in total premium income in FY’10. Tea production in the country grew by 18% in February, 2010 compared to the same period last year. The Government has cleared Rs.16000 crore FPO of SAIL. Tata Steel and NMDC will team up to develop the latter’s two steel projects in Karnataka and Chhattisgarh. Aban Offshore has bagged an order worth Rs.716 crore from Brunel Shell. Private equity firm CX Partners has bought an 8% stake in Monnet Ispat for Rs.150 crore. Emaar MGF is expected to come up with an IPO in the next 90 days. ACC expects demand for cement to rise by 10% in FY’11. The company has also planned a capex of Rs.1300 crore. Essel Group will invest about Rs.500 crore in the next 5-7 years to expand education portfolio. Aurobindo Pharma has received final approval from the US health regulator for an anti-depressant drug. HEG plans to raise Rs.400 crore by issue of equity shares. Hero Honda may increase prices on account of high raw material cost. Maruti Suzuki is facing demand increase and the capacity is limited, as of now, to meet this increase in demand. Jagran Prakashan is in talks with Mid-day for a stake purchase. Nifty April contracts ends the Day down by 77.35 points at a discount of 2.85 points in April contracts paring OI by 1.1%. Nifty VIX at 19.92% compared to 17.32% previous Day. Nifty OI PCR at 1.263 compared to 1.317 the previous day. Nifty active puts sees addition of 12.59 Lakhs and calls sees addition of 29.47 Lakhs over the Day. Highest OI in Nifty calls seen at 5400 April strike and puts at 5200 April strike. Long build up was seen in LITL, ESSAROIL, IFCI, VIDEOIND, VOLTAS & ROLTA etc over the Day. Short build up during the Day seen in SAIL, WELGUJ, FORTIS, INDIAINFO, HINDALCO, HDFC & JINDALSAW etc over the Day. Long unwinding was seen in Nifty futures from the FII side. Marginal short build up seen in Stock futures from the FII side. Nifty options was seen to be bought from the FII side.

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Asian stocks gained, driving the MSCI Asia Pacific.

Asian stocks gained, driving the MSCI Asia Pacific Index higher for the fifth straight day, as investors bet the Federal Reserve will leave the benchmark U.S. interest rate at a record low. Federal Reserve policymakers are worried that the economic recovery may lose steam going forward, despite recent moderate improvements, according to minutes from their recent policy meeting released on Tuesday. Though the latest data suggest an uptick in economic activity, Fed members believe that some sectors of the economy could stifle overall growth, the minutes from the March 16 meeting said. U.S. Treasury Secretary Timothy F. Geithner is putting the Group of 20’s enhanced power to the test as he tries to prod China into revaluing the yuan.
Top Indian steel makers witnessed upto 15% rise in sales in the month of March 2010.
The rupee weakened on RBI intervention after hitting 19 month high levels. The Securities and Exchange Board of India has cut the listing time to 12 days. This order is effective from May 1, 2010. Godrej Consumer Products has acquired an Indonesian company, PT Megasari Makmur Group and its distribution company in Indonesia. Punj Lloyd has bagged orders worth Rs.235 crore. BPCL’s first discovery in Brazil’s offshore basin is capable of producing 15000 barrels of crude daily. This well is jointly managed by BPCL along with consortium partners. Temasek Holdings is in talks to acquire stake in GMR Group. Jindal Power has tied up debt of Rs.10000 crore for its upcoming 2400 MW power plant. GSK Consumer Healthcare will invest Rs.270 crore over the next three years. Essar Group is looking for oil and gas assets in Africa and Southeast Asia. Coal India plans to invest Rs.6000 crore for acquistions. Profit of the company jumped 300% during FY’10. Unitech has appointed E&Y and two other advisors for exploring opportunities for potential restructuring. NTPC plans to borrow Rs.20000 crore in FY’11 to fund its capacity expansion plans.
Spicejet will start its international operations soon as the Ministry has cleared its proposal. Electrotherm is expanding its presence in the southern markets to push its 40-tonne furnace as cost-effective option. Wipro plans to exit baby care and Vanaspathi business. Nifty April contracts ends the Day marginally up by 1.20 points at a premium of 1.10 points in April contracts and paring OI by 1.1%. Nifty VIX at 17.20% compared to 17.17 % previous Day. Nifty OI PCR at 1.286 compared to 1.267 the previous day. Nifty active puts sees addition of 26.92 Lakhs and calls sees addition of 14.67 Lakhs over the Day. Highest OI in Nifty calls seen at 5400 April strike and puts at 5200 April strike. Long build up was seen in ONMOBILE, PFC, ANDHRABANK, VIDEOIND, RELMEDIA, FEDERALBNK, IOB, MLL, RECLTD, MTNL, ISPATIND, GTOFFSHORE, PIRHEALTH, RPOWER etc over the Day. Short build up during the Day seen in BEL, HCLTECH, MCDOWELL-N, CIPLA, PRAJIND, M&M, LUPIN & MCLEODRUSS etc over the Day. Short covering and marginal long build up was seen in Nifty futures from the FII side. Marginal long build up seen in Stock futures from the FII side. Addition in Nifty options seen during the day from the FII side. Bank credit has gone up 16.75% as on March 26, 2010. The SEBI has allowed institutional investors to use the ASBA route for investing in public offerings. The order book of Indian Corporates has doubled in the March quarter compared to the same period last year. Essar Energy may launch an overseas initial public offer of USD2.5 billion. United Spirits is world’s no.2 spirits maker after Diageo. Drug price regulator NPPA has issued a show-cause notice to Piramal Healthcare for selling eye drop without getting the approval from the regulator. The Cabinet is likely to discuss the FPO of SAIL in parliament today.
Bharati Shipyard has marginally hiked its stake in Great Offshore to 49.73%. Oil India is planning to hive off its overseas exploration and production assets into a new subsidiary. Ackruti City Ltd. is looking for immediate funding of Rs.250 crore, in addition to the Rs.1000 crore tied up in December 2009. M&M has hiked prices of its utility vehicles by up to Rs.26100. NTPC is planning of setting up a coal-based power plant in Bangladesh. Redington India Ltd. is looking to acquire companies in Africa and West Asia in the next six to eight months. JSW Steel’s output for the quarter ended March 2010 rose 66%.Blackstone will be investing Rs.225 crore in Jagran Media Network Private Limited. The Government is likely to set up a panel of group of ministers to take call on BSNL divestment. JSW Steel has planned a capex of Rs.7000 crore for FY’11. Emami Group will set up a power plant in Ethiopia. Elecon Engineering has won an order of Rs.89 crore. Nifty April contracts ends the Day marginally up by 11.85 points at a premium of 4.30 points in April contracts and adding OI by 1.0%. Nifty VIX at 17.32% compared to 17.20 % previous Day. Nifty OI PCR at 1.317 compared to 1.286 the previous day. Nifty active puts sees addition of 24.92 Lakhs and calls sees addition of 8.24 Lakhs over the Day. Highest OI in Nifty calls seen at 5400 April strike and puts at 5200 April strike. Long build up was seen in GODREJIND, GAIL, ALBK, EKC, NAGARCONST, HOTELEELA, APOLLOTYRE, GRASIM, AMBUJACEM, PIRHEALTH, IVRCLINFRA & POWERGRID etc over the Day. Short build up during the Day seen in FORTIS, AUROPHARMA, HINDUNILVR, JISLJALEQS, INDIAINFO, VIDEOIND, LITL, GMRINFRA, MTNL, CESC & RELMEDIA etc over the Day. Marginal long unwinding was seen in Nifty futures from the FII side. Marginal short build up seen in Stock futures from the FII side. Marginal unwinding of Nifty options seen from the FII side.

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The euro fell for a second day against the yen.

The euro fell for a second day against the yen amid concern Greece and other European countries will struggle to raise funds to repay maturing debt. The pending home sales index posted a surprise jump in February, rising 8.2% to 97.6 from a revised 90.2 in January. Economists expected the report from the National Association of Realtors to have declined by 1%, according to Briefing.com forecasts. A separate report showed growth in the services sector of the economy. The Institute for Supply Management's (ISM) services sector index rose to 55.4 in March from 50 in February, versus forecasts for a rise to 53.6. Any reading over 50 indicates expansion in the sector.
The Bank of Japan may raise its economic assessment and keep policy unchanged tomorrow after its Tankan business survey showed the export-driven recovery is gaining momentum. Steel consumption rose 7.6 per cent to 56.32 million tonne (mt) in 2009-10 as against 52.35 mt in the year-ago period, on account of rising demand from sectors, including automobiles, white goods and construction. Sebi revises timeline for filing financial results, whereby, listed companies will now have to submit audited quarterly results within 45 days from the end of the relevant quarter.
Bicon arm has entered into an agreement to acquire the 49% equity stake held by CIMAB SA in Biocon Biopharmaceuticals Pvt. Ltd. (BBPL), post which BBPL will become a wholly owned subsidiary of the company. Uttam Galva Steels has increased the prices of its products by Rs 6,000 per tonne. Essar Oil’s promoter entities will consolidate their holdings in the company by way of transfer of shares among themselves later this month. Welspun Gujarat Stahl Rohren is learnt to be in talks to buy a tad over 50 per cent stake in the Saudi Arabia-based Aziz Pipe Company for an estimated Rs 260 crore. L&T has bagged an order worth Rs 1,060 cr from GSPC. United Breweries (Holdings), a promoter of Kingfisher Airlines, has pledged 5.1 million shares in the carrier as on March 30, or about 1.9 per cent of its equity. Era Infra Engineering has forayed into power transmission and distribution (T&D) business. McNally Bharat Engineering has bagged a project worth Rs 827 crore for infrastructure development works at the 500 MW Satpura power station. Aegis Logistics has acquired Shell Gas (LPG) India. Opto Circuits buys NS Remedies for USD 1.5 mn. Oil India has USD 2.5 bn of cash available for overseas acquisitions. Reliance Big Entertainment has said it will acquire 50 per cent stake in the England-based gaming firm Codemasters, possibly for up to $150 million. Nifty April contracts ends the Day up by 59.10 points at a discount of 2.5 points in April contracts and adding OI by 6.5%. Nifty VIX at 17.17 % compared to 17. 62% previous Day. Nifty OI PCR at 1.267 compared to 1. 194 the previous day Nifty active puts sees addition of 46.68 Lakhs and calls sees addition of 11.99 Lakhs over the Day Highest OI in Nifty calls seen at 5400 April strike and puts at 5200 April strike. Long build up was seen in JISLJALEQS, BAJAJ-AUTO, ALBK, BHUSANSTL, SYNDIBANK, NAGARCONST, DENABANK, SINTEX, ORIENTBANK, GODREJIND, IBREALEST, PRAJIND, BALRAMCHIN, ANDHRABANK, HDIL, DLF, RENUKA, TATASTEEL, IDBI, INDIAINFO, VIJAYABANK & BAJAJHIND, etc over the Day. Short build up during the Day seen in BEL, NOIDATOLL, FORTIS, HINDPETRO, IOC, IDEA HINDUNILVR etc over the Day. Long build up was seen in Nifty futures from the FII side. Long build up seen in Stock futures from the FII side. Addition in Nifty options seen during the day from the FII side.

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Asian stocks rose, led by companies reliant on sales in North America

Asian stocks rose, led by companies reliant on sales in North America, as U.S. job reports boosted confidence the global economy is recovering. Former Federal Reserve Chairman Alan Greenspan said there is “a momentum building up” in the U.S. economy and the odds of it faltering have “fallen very significantly.” There is a momentum building up which is really just beginning and it’s got a way to go,” Greenspan said today on ABC’s “This Week” program. He said the U.S. is “on the edge of a significant build-up” in inventories “and that is a self- reinforcing cycle.” US employers added 162,000 jobs in March after losing a revised 14,000 jobs in February, the Department of Labor said Friday. Economists had predicted a gain of 184,000 jobs, according to a consensus of economists surveyed by Briefing.com. Exchange rate fluctuation has inflated India's external debt by $18.7 billion (about Rs 90,000 crore) during the three-month period ending December 31, 2009, according to a data from the Reserve Bank of India (RBI). Finance Minister Pranab Mukherjee expects food prices to start falling with the harvest of winter crop this month and also on the back of imports of essential commodities. Bhel, power sector southern region ( PSSR) catering to the four southern states besides Orissa, Chatisgarh and Madhya Pradesh, bagged new orders worth Rs 1770 core during 2009-10 taking the outstanding orders to Rs 5238 core.
Union Bank of India has said its business is likely to cross the Rs 3 lakh crore mark by this quarter and has projected growth of 25 per cent in loans and deposits in fiscal 2010-11. Emami sets a target of 19% growth rate in sales for its flagship product Navratna oil for 2010-11. Reliance Infrastructure has commissioned the first phase of 1,200-MW Thermal Power Plant by putting 600 MW on stream at Hissar in Haryana. Hindustan Copper is hopeful of getting government’s approval in April for its share sale programme, which is expected to raise Rs. 10,000 crore. Patni promoters are making fresh attempts to sell their stakes to international and local firms. Heidelberg Cement has earmarked Rs. 800 cr for acquisition of mid-sized companies in India. DLF has appointed Goldman Sachs to advise it on the matter of sale of luxury hotel chain, Aman Resorts. NMDC raises base ore prices by 34-56% from April 1, 2010. Nifty April contracts ends the Week marginally up by 9.85 points at a premium of 16.30 points in April contracts and adding OI by 1.0%. Nifty VIX at 17.62% compared to 17.89% previous Week. Nifty OI PCR at 1.194 compared to 1.174 the previous day. Nifty active puts sees addition of 93.57 Lakhs and calls sees addition of 72.55 Lakhs over the Week. Highest OI in Nifty calls seen at 5400 April strike and puts at 5200 April strike. Long build up during the week seen in BGRENERGY, ASHOKLEY, AREVAT&D, PATELENG, NAGARCONST, MUNDRAPORT, VIDEOIND, FORTIS, IFCI, CHENNPETRO, HOTELEELA, AXISBANK, SUNTV, PETRONET, EKC, BAJAJ-AUTO, ESSAROIL, JINDALSAW, GODREJIND, LICHSGFIN etc over the week. Short build up was seen in MUNDRAPORT, DABUR, TECHM, NOIDATOLL, EDUCOMP, MCLEODRUSS, RENUKA, LUPIN, BHARTIARTL, POLARIS, PUNJLLOYD & LITL etc over the week. Short build up was seen in Nifty futures from the FII side. Short build up seen in Stock futures from the FII side. Good addition in Nifty options seen during the day from the FII side.

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Japan’s largest manufacturers became the least pessimistic

President Obama unveiled plans to open large swaths of U.S. coastal waters in the Atlantic Ocean and the Gulf of Mexico to oil and natural gas drilling -- a move likely to please the energy industry but upset the administration's environmentalist supporters. Japan’s largest manufacturers became the least pessimistic about the economy since 2008 as a global rebound drove demand for exports. The Tankan index of sentiment rose to minus 14 in March from minus 25 in December, the fourth straight gain, the Bank of Japan said in Tokyo. Asian stocks rose, lifting the MSCI Asia Pacific Index for the fourth time in five days, on higher commodity prices gained and takeover offers in Australia. China’s manufacturing expanded at a faster pace in March, reinforcing an economic rebound in the wake of a record expansion of credit that now risks bubbles in the country’s asset markets. The Purchasing Managers’ Index rose to a seasonally adjusted 55.1 from 52 in February, according to Li & Fung Group, a Hong Kong-based company that releases data for the Federation of Logistics and Purchasing. The bond market is showing California is no Greece. Debt issued by California, the world’s eighth-largest economy, is outperforming Greece’s bonds as funds including Cumberland Advisors say investors are betting the lowest-rated U.S. state’s credit risk has been exaggerated. The cost to protect against California not paying its obligations is the lowest relative to Greece in at least 15 months, according to data compiled by Bloomberg. The April-February fiscal deficit is at 92 per cent of the budgeted estimate of Rs 4.14 lakh cr for the current fiscal. The deficit in the first eleven months of the last financial year was Rs 3.07 lakh crore.
Expanding for the fourth straight month, exports surged by 34.8 per cent in February to $16.09 billion against $11.94 billion in the year-ago. FIIs invest Rs 1.09 lakh cr in stocks in FY10. Government has announced incentives worth Rs 625 cr for exporters of garments, engineering, electronics and agro products as the demand for these items in the western economies is yet to pick up. Grain, cooking oil and sugar prices have dropped by upto a third in March due to better than expected harvests across the world. Direct tax mop-up may fall short of its revised FY10 target by Rs. 30,000 cr.
As part of plans to meet its target under the 11th Five-Year Plan GAIL (India) will invest about Rs 6,000 crore in the next fiscal. L&T has bagged two orders worth Rs 1,017 crore for construction related works. GMR Infra is close to tying up funds for its Rs. 2190 cr Hyderabad-Vijaywada highway project. RBI has permitted Axis Bank to undertake primary dealer business departmentally in the government securities market from April 5. IRB Infrastructure has tied up a Rs 775 crore loan for its road projects. Aventis Pharma’s promoter firm Hoechst GmbH has completed acquiring an additional 10.27 per cent in it. USFDA has accepted Glenmark’s new drug application (NDA) for pain killer oxycodone hydrochloride capsules. Ahluwalia Contracts has received orders worth Rs 425 crore from various clients. Subhash Projects has bagged a power project worth Rs 209.56 cr. Godrej Properties has entered into agreements to transfer 49 per cent equity share in unit Godrej Sea View Properties to HDFC PMS for Rs 55 crore. Abbott has sued Lupin to prevent it from selling a copy of the cholesterol drug TriLipix. Sun TV promoter, Kalanithi Maran, is in talks with hedge fund WL Ross to buy its entire 30% stake in SpiceJet. Nifty April contracts ends the Day down by 12.30 points at a premium of 12.50 points in April contracts and adding OI in all Nifty contracts by 1.2%. Nifty VIX at 19.87 % compared to 19.80% previous day. Nifty OI PCR at 1.166 unchanged over the day. Nifty puts sees addition of 28.69 Lakhs and calls sees addition of 24.71 Lakhs over the Day. Highest OI in Nifty calls seen at 5300 April strike and puts at 5200 April strike. Long build up during the session seen in BGRENERGY, ASHOKLEY, SAIL, TV-18, SESAGOA, CAIRN, VOLTAS, CESC, CROMPGREAV & GTLINFRA. Short build up was seen in NOIDATOLL, LITL, TECHM, POLARIS, TCS, KFA INDIAINFO etc. Short build up was seen in Nifty futures from the FII side. Short build up seen in Stock futures from the FII side. Options writing was seen from the FII side.

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Peabody Energy Corp.

Peabody Energy Corp., the biggest U.S. coal company, made an unsolicited initial cash proposal to buy Australia’s Macarthur Coal Ltd. for A$3.3 billion ($3 billion) amid surging demand for the fuel in Asia. Most Asian stocks declined amid concerns a rally that took the MSCI Asia Pacific Index to a 10- week high yesterday had overvalued earnings prospects. The board of Dubai World property unit Nakheel, including its chairman, was replaced as the emirate, pushed forward with restructuring its debt-saddled chief conglomerate in an attempt to salvage Dubai's reputation as a regional investment haven. Corporate bonds are rallying for the fourth straight quarter, the longest streak since 2004, extending a record advance as 72 per cent of companies beat analysts’ earnings expectations. Consumers in the U.S. gained confidence in March as the gloom over job prospects began to lift, indicating employment will be central to preserving the recent acceleration in spending. The Conference Board’s confidence index rose to 52.5, exceeding the median forecast of economists surveyed by Bloomberg News, from 46.4 in February, according to figures today from the New York research group. Finance Ministry has decided to defer the levy of 10 per cent service tax on railway freight by three months. Private sector is expected to contribute up to $500 billion for development of the infrastructure sector during the 12th Plan. Nine telcos get the nod to participate in 3G bids. Cement companies may hike prices by Rs. 7 to pass on the rise in input costs. Steel prices are set to rise by Rs 2,000 to Rs 3,000 a tonne from April on the back of a spike in input costs. Bharti Airtel has clinched the deal to buy most of the African operations of Kuwait's Zain for $9 billion, making it the second-largest cellular firm on the continent. Tata Steel's European arm Corus is open to dialogue for strategic tie-ups with investors having sound financials, to rescue its recently mothballed Teesside Cast Products (TCP) plant in England. Crompton Greaves has completed the acquisition of UK-based Power Technology Solutions (PTS) for 30 million pound. Larsen & Toubro has bagged orders worth Rs 1,126 crore for various construction related works. Tata Motors has sold 20 per cent stake in Telcon, its construction equipment joint venture with Japan's Hitachi, to its partner for Rs 1,159 crore. JMC Projects (India) has bagged NHAI's Rohtak-Bawal project. Areva T&D has won a gas substation order worth Rs 70 cr. Jubilant Organosys Ltd has a fixed a floor price of Rs 344.5 per share for its qualified institutional placement (QIP).
Hero Honda has declared a special dividend of 4000% (Rs. 80 per share) to reward shareholders to mark their silver jubilee this year. Tata Motors has reduced its debt by Rs. 1500 cr as bondholders have opted for conversion of bonds into shares before maturity. ITC has tied-up with La Aurora for its cigar business. JSL raises Rs. 250 cr through a QIP issue to part fund its expansion plan. Max India may sell 4% in Max New York Life Insurance to Axis Bank. Abhishek Industries is planning to invest Rs. 2000 cr to double its manufacturing capacity over the next 2-3 years. Omaxe plans to raise Rs. 800 cr through QIP to reduce debt and fund ongoing projects. NMDC is likely to raise iron ore prices by 70%. Nifty April contracts ends the Day down by 44.90 points at a premium of 11.45 points in April contracts and paring OI in all Nifty contracts by 1.6%. Nifty VIX at 19.80 % compared to 18.73% previous day rising by 5.71%. Nifty OI PCR at 1.166 compared to 1.162 the previous day. Nifty puts sees addition of 22.14 Lakhs and calls sees addition of 18.41 Lakhs over the Day.
Highest OI in Nifty calls seen at 5300 April strike and puts at 5200 April strike.
Long build up during the session seen in NATIONALUM, SESAGOA, NAGARCONST, CHENNPETRO, TATAMOTORS, BGRENERGY & UNIONBANK. Short build up was seen in EDUCOMP, CNXIT, OPTOCIRCUI, TECHM, LUPIN, INFOSYSTCH, HCLTECH, ABAN, HEROHONDA, MPHASIS, RENUKA & POLARIS etc. Long liquidation and short build up was seen in Nifty futures from the FII side. Short build up seen in Stock futures from the FII side. Nifty options was seen adding during the day from the FII side.

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Japan’s industrial production fell in February

Japan’s industrial production fell in February and the unemployment rate held at the lowest level since March 2009, underscoring an uneven economic recovery that has yet to end deflation. Asian stocks rose, driving the MSCI Asia Pacific Index to its highest level in 10 weeks, after U.S. consumer spending increased for a fifth month and European confidence in the economic outlook improved. UBS AG generated about $2.3 billion of revenue at its fixed-income division in the first quarter as Switzerland’s biggest bank rebuilt the unit following record losses. The Wall Street Journal reported, that Sony Corp. is close to exiting talks to purchase rights to the music catalog of EMI Group Ltd. In 2009, U.S. passenger traffic fell by more than 5%, mostly in response to the recession. The number of domestic and international passengers on U.S. airlines declined 5.3% in 2009 compared to the year before, the Bureau of Statistics reported. Subprime-mortgage securities are rising at an accelerating pace as the U.S. begins to encourage reductions to homeowners’ balances, which may lead to fewer foreclosures and a quicker end to the housing slump. Japan has committed 215 billion yen (Rs 10,535 crore) for six infrastructure projects in India, including Phase II of the Mass Rapid Transport System (MRTS) for Delhi. RBI will sell Rs. 2.87 trillion ($64 billion) of bonds in the first half of 2010/11, 63 percent of its record full-year target, less than market expectations, sending yields down. The Government has approved 23 Foreign Direct Investment (FDI) proposals worth over Rs 2,325.21 crore, including that of auto components maker Bharat Forge. Indian companies saw 16 M&A deals worth $981 million in the mining space in 2009, as per global consultancy firm Ernst and Young. Central Board of Direct Taxes (CBDT) has clarified that a company that makes a notional loss on a forex derivative because of a fall in its value cannot deduct the loss from its taxable income since it still owns the derivative. Gayatri Projects has bagged contracts worth Rs 602 cr from NHAI.
Hindustan Dorr-Oliver has won orders worth Rs 2.67 billion from various sectors.
IVRCL Infrastructures & Projects Limited (IVRCL) Water Division has bagged orders worth Rs 867.57 crores for various infrastructure works. Bharti to sign Zain deal today. The country's largest coal producer Coal India Ltd (CIL) has seen an estimated two-fold jump in profit to Rs 10,616 crore in 2009-10. Hindustan Unilever has exited from BPO firm Capgemini Business Services India by selling its remaining 49 per cent stake to IT consultancy firm Cap Gemini SA for an undisclosed sum. Larsen & Toubro has bagged an order worth Rs 1,400 crore from the Indian Oil Corporation (IOC) to develop reactor for fuel refinery at Orissa. Suven Life Sciences has been issued patent to one of its compounds, which is used in treating disorders like Alzheimer's, Parkinson and Schizophrenia, by the European Patent Office (EPO). Aqua Logistics Ltd’s unit Aqua Logistics HK Pvt Ltd will buy three Hong-Kong based logistics companies. TTK Prestige has commenced production at its Rs 11 crore new plant in Roorkee, Uttarakhand. Havells India will increase its marketing spend by over 40 per cent, to Rs 100 crore, by next fiscal and plans to enhance retail overseas footprints, starting with Africa. Indoco Remedies has entered into a long-term drug supply pact with Aspen Pharmacare, the largest pharmaceutical manufacturer in Africa and one of the top 20 generics manufacturers in the world. Texas Pacific Group (TPG) is set to pick up 20% in Shriram Capital. Essar Shipping has raised Rs. 6000 cr this fiscal for expansion. GMDC will invest Rs. 484 cr, in wind power, over the next two years. Nifty April contracts ends the Day up by 21.85 points at a premium of 15.95 points in April contracts and adding OI by 3.8%. Nifty VIX at 18.73% compared to 17.89% previous day. Nifty OI PCR at 1.162 compared to 1.174 the previous day. Nifty puts sees addition of 21.5 Lakhs and calls sees addition of 22.09 Lakhs over the Day. Highest OI in Nifty calls seen at 5400 April strike and puts at 5200 April strike. Long build up during the session seen in MUNDRAPORT, HINDALCO, ALBK, HOTELEELA, RENUKA, IOB, STER, AMBUJACEM, LICHSGFIN, SYNDIBANK & NAGARFERT. Short build up was seen in DABUR, TATAMOTORS, COLPAL, MPHASIS, INFOSYSTCH, PIRHEALTH, EDUCOMP, PUNJLLOYD, BIOCON & ONMOBILE etc. Long build up was seen in Nifty futures from the FII side. Short build up seen in Stock futures from the FII side. Good addition in Nifty options seen during the day from the FII side.

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Zhejiang Geely Holding Group signed a binding deal to buy Ford Motor Co.'s

Zhejiang Geely Holding Group signed a binding deal to buy Ford Motor Co.'s Volvo Cars unit for $1.8 billion, representing a coup for the independent Chinese automaker which is aiming to expand in Europe. China Construction Bank Corp., the nation’s second-largest lender, more than doubled profit in the fourth quarter as bad loans declined and lending surged amid a recovery in the world’s fastest-growing major economy. Net income climbed to 20.7 billion yuan ($3.03 billion) from 8.37 billion yuan in the fourth quarter of 2008. Former Federal Reserve Chairman Alan Greenspan’s warning that rising yields on government debt will drive up American borrowing costs is resonating with the world’s biggest bond traders, who say this month’s losses in the market for U.S. Treasuries are just the beginning. The euro strengthened against the dollar for a second day on receding concern Greece’s financial crisis will derail the 16-nation region’s economic recovery. Japan’s retail sales gained at the fastest pace in more than a decade in February as the economic recovery spread to households. Sales rose 4.2 percent from the year earlier. Junk bond sales reached a record this month as rising profits and record low Federal Reserve interest rates foster lending and investment to the lowest-rated borrowers. Companies worldwide issued $38.3 billion of junk bonds this month, passing the previous high of $36 billion in November 2006, according to data compiled by Bloomberg. The Reserve Bank of India will announce the government’s borrowing time table for April to September period today. The government has told the Reserve Bank of India that the norms for approval of new banking licences could be based mainly on the existing policy framework for ownership of private banks. This could be negative for private business houses planning to open banks. The Insurance Regulatory and Development Authority(IRDA) is wanting insurance companies to announce a number of key issues such as future profits from present business, agreements with foreign promoters, among other things, as per a senior IRDA official. Hero Honda plans to set up Rs.2000 crore plant in Karnataka. )
SKIL will buy Punj Lloyd’s 19.5% stake in Pipavav Shipyard. Bhilwara Energy plans to raise about Rs.3000 crore through equity route to fund its four hydro power projects with a total installed capacity of 1083MW. JSL, formerly Jindal Stainless Limited, plans to raise USD50 million via QIB issue. Axis Bank is in talks with Max New York Life to acquire up to 5% stake. BSNL has finalized a war chest of Rs.14000 crore to preserve its market share. Half of this amount will go for investment in mobile network. Tata Steel is planning to raise at least USD500 million via global depository receipts. L&T has won USD82 million contract from Oman to revamp and extend electrical networks. Nifty April contracts ends the Day up by 23.95 points at a premium of 14.95 points in April contracts and adding OI by 8.1%. Nifty VIX at 17.89% compared to 17.05% previous day. Nifty OI PCR at 1.174 compared to 1.229 the previous day. Nifty active puts sees addition of 27.20 Lakhs and calls sees addition of 37.92 Lakhs over the Day. Highest OI in Nifty calls seen at 5300 April strike and puts at 5000 April strike. Nifty VIX at 17.05 from 17.89 in the previous session. Long build up during the session seen in AREVAT&D, BAJAJ-AUTO, PATELENG, VIDEOIND, FORTIS, IFCI, CHENNPETRO, AXISBANK, SUNTV, EKC, PUNJLLOYD, ESSAROIL, IOB, SINTEX, TATACHEM, CENTURYTEX & STERLINBIO. Short build up was seen in COLPAL, BAJAJHIND, SIEMENS, DRREDDY, SESAGOA & JISLJALEQS etc. Long build up was seen in Nifty futures from the FII side. Short build up seen in Stock futures from the FII side. Good addition in Nifty options seen during the day from the FII side.

Outlook & Strategy:

Markets are expected to open the week a positive bias with resistances in Nifty near contract seen around 5330 levels above which 5380 can be tested. Supports seen around 5180-5120 levels for the week. Stocks with a positive bias at the open of the week with further upsides seen are AREVAT&D, BAJAJAUTO & VIDEOIND.

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The euro rebounded from a 10-month low against the dollar .

The euro rebounded from a 10-month low against the dollar after European Central Bank President Jean-Claude Trichet said he welcomed the European Union agreement on an aid plan for Greece. Pacific Investment Management Co., the manager of the world’s biggest bond fund, says bank securities are the best investments in credit markets.
China may resume a “managed float” of the yuan, while avoiding an abrupt revaluation that would wreck its exports, according to Fan Gang, an adviser to the country’s central bank. Toyota is trying to buy back a lot of the sales it lost during the recall crisis earlier this year -- in the form of fat incentives for consumers. But the aggressive incentive program from the Japanese automaker -- including zero-interest financing, subsidized leases and free maintenance for previous Toyota owners -- will come at a steep cost. Food inflation fell to its lowest in four months at 16.22% for the week ended March 13, 2010. The Government may infuse Rs.4000 crore into regional rural banks over the next two years. Steel prices are expected to move up on the back of rising input costs and low finished goods inventory. Bharti Airtel has formed two special purpose vehicles or SPVs to execute the acquisition of assets of Zain Telecom. L&T has bagged six orders worth Rs.1181 crore from various domestic and international agencies. The Essar Group will acquire an Indonesian coal mine for USD208 million. The reserves of the coal mine are to the tune of 64 million tonnes.
State Bank of India, the country’s largest bank, is planning to extend the deadline for its teaser home loan rate. Tata Motors is selling a third of its stake in Telcon, JV with Hitachi, for Rs.1000 crore. GMR Energy is planning to raise Rs.1600 crore from a group of private equity players led by Singapore-based Temasek Holdings and other banks. Gitanjali Gems has planned to divest 25 per cent of its holding in each of its brands from September 2010. DB Corp will expand its foot print across the states of Bihar, Jammu and Jharkhand.

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The yen rose from a 10-week low against the dollar

The yen rose from a 10-week low against the dollar on speculation Japanese exporters took advantage of its biggest slide this year to buy the currency before the nation’s fiscal year ends next week. Stocks closed lower Wednesday as the dollar strengthened on fears tied to the growing fiscal crisis in Europe and a dour report on U.S. sales of new homes raised concerns about the economic recovery. Americans are turning against Toyota Motor Corp. after sudden-acceleration complaints forced it to recall more than 8 million vehicles worldwide, while Ford Motor Co. is the most popular automaker. Credit-default swaps traders settling contracts linked to Aiful Corp. set an initial value of 31.375 percent of face value, after the consumer lender restructured its debt to avoid bankruptcy. Pressuring China to revalue its yuan, or renminbi, won’t succeed or solve the trade gap with the U.S., Vice Minister of Commerce Zhong Shan said. Germany will press today to end weeks of European haggling over an aid package for debt-laden Greece, seeking new rules to impose fiscal discipline on countries using the euro to buttress the faltering currency. The Reserve Bank of India has hinted that it may further increase interest rates going forward. Fuel prices are expected to rise in 13 cities across the country. The government’ s chief economic advisor, Kaushik Basu, said that economic growth was expected to rise to 8.5%. Finance Ministry may offer more compensation to state-owned oil marketing companies for selling fuel below cost this year. Kuwait-based Zain telecom has approved Bharti Airtel’s proposal to buy its African assets forUSD10.7 billio Piramal Healthcare has acquired contraceptive brand ‘i-pill’ from Cipla.
Natco Pharma Ltd. will re-launch its cancer drug in the domestic and global markets soon. Mahindra First Choice is planning to come up with an IPO in about three years.
Edible oil business is expected to contribute close to Rs.800crore to Emami’s topline in FY’10. Future Generali is targeting over Rs.1000 crore new premium next fiscal.
Enforcement Directorate has registered a case against Unitech over 2G licenses.
Shree Cement has announced its foray into power trading business through Shree Power Trading. Nifty March contracts ends the Day up by 13.40 points at a premium of 1.40 points in March contracts and 13.70 in April contracts adding OI by 9.3% Nifty OI PCR at 1.666 compared to 1.668 at the close of last Day. Nifty puts sees paring of 13.33 Lakhs and calls sees paring of 7.48 Lakhs over the Day. Highest OI in Nifty calls seen at 5300 March strike and puts at 5000 March strike. Nifty VIX at 18.13 from 19.96 last Day. Nifty rollover picked up during the session and was at 52.09% compared to 54.64% in last expiry. Market wide rolls seen at 55.51% compared to 62.67% during the last expiry at the same period. 3 month average market wide rolls stood at 62.57% and six month average rolls stood at 61.73%. Scrips with significant rise in OI compared to the previous expiry are AREVAT&D, FORTIS, MUNDRAPORT, APOLLOTYRE, GODREJIND, MCLEODRUSS, IVRCLINFRA, ONMOBILE, MPHASIS, RENUKA, BEL, CROMPGREAV, JSWSTEEL, TECHM, BGRENERGY, VIDEOIND, ONGC, COLPAL, BOSCHLTD, SUNTV, ROLTA, DABUR, TRIVENI, ACC & JINDALSAW. Significant long rolls was seen from the FII side during the day in Nifty futures.

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The Democratic-controlled Congress approved historic legislation.

The Democratic-controlled Congress approved historic legislation, extending health care to tens of millions of uninsured Americans and cracking down on insurance company abuses, a climactic chapter in the century-long quest for near universal coverage. Widely viewed as dead two months ago, the Senate-passed bill cleared the House on a 219-212 vote, with Republicans unanimous in opposition. All G7 countries, except Canada and Germany, will have debt-to-GDP ratios close to or exceeding 100 percent by 2014, said John Lipsky, first deputy managing director of the International Monetary Fund. Royal Dutch Shell Plc and PetroChina Co. agreed to acquire Arrow Energy Ltd. after raising their offer to A$3.5 billion ($3.2 billion), gaining access to the reserves of the Australian coal-seam gas producer. Shell and PetroChina will pay A$4.70 a share for Arrow’s Australian business. Google Inc.’s looming withdrawal from China adds to pressure to expand in South Korea and Japan, where the Web-search company has won a fraction of the popularity it enjoys in the U.S. and Europe. Thailand’s government will present a plan in two months to “create a level playing field” for telecom companies that includes possible compensation for changes to concessions, Prime Minister Abhisit Vejjajiva said. India to grow 8.3% in FY11, but inflation shall continue to be a concern. The Reserve Bank of India has increased the repo and reverse report by 25 basis points. The RBI is likely to take tougher action than the Friday’s revision in its key policy rates if headline inflation aggravates, says chief statistician Pronab Sen. Sahara Adventure Sports has won the bid for Pune franchise with a bid of USD370 million. Rendezvous Sports Group has won the franchise for Kochi team for an amount of USD333 million. Bharti has tied up debt to the tune of USD8.5 billion to finance Zain acquisition. RIL has renewed talks with ONGC-led consortium to pick up a stake in the Carabobo-1 oil block in Venezuela. IOC-OIL may hike 400 million pound for Gulfsands. SBI is planning to open 1000 more branches to take the total to 13000 by FY’11. Yes Bank plans to raise USD80 million for Cleantech Fund. Cipla will replace Sun Pharma in the BSE Sensex from May 3, 2010. Kilitch Drugs plans to launch 15 eyecare products in the next financial year in order to augment two per cent market share of the Rs.600 crore sector. Nifty March contracts ends the Week up by 130 points at a premium of 11.90 points adding OI by 6.6%. Nifty OI PCR at 1.685 compared to 1.440 at the close of last Week. Nifty puts sees addition of 1.33 Cr and calls sees addition of 1.645 Lakhs over the Week. Highest OI in Nifty calls seen at 5300 March strike and puts at 5000 March strike.
Nifty VIX at 17.75 from 19.73 last Week. ATM near Nifty options traded around 16-17% towards the end of the week. Long build up seen in APOLLOTYRE, WELGUJ, BEL, CUMMINSIND, STERLINBIO, SCI, SAIL, DCHL, MUNDRAPORT, BIOCON, ONMOBILE, TCS, CNXIT & SUNTV during the week. Short build up seen in during the week in IBREALEST, MOSERBAER, KSOILS, GODREJIND, BANKINDIA, TULIP, PIRHEALTH, HCC, KFA & MCDOWELL-N. FII side over the Week saws short covering and long build up in Nifty futures and short covering and long build up in stock futures. Significant addition in Nifty options was seen during the week with indications of addition in Nifty puts. The yen fell for the first time in five days against the euro on speculation European Union leaders meeting this week will agree on an aid package for Greece, damping demand for the safety of Japan’s currency. Google Inc., following through on a pledge to stop censoring search results in China, began serving mainland Chinese users via its unfiltered Hong Kong site, a move that could prompt the government to block the service. Elliott Associates LP and Paulson & Co. are discussing a plan to team with Brookfield Asset Management Inc. to bring mall owner General Growth Properties Inc. out of bankruptcy, two people familiar with the talks said. Europe’s stalemate over possible aid for debt-encumbered Greece deepened as European Central Bank President Jean-Claude Trichet spoke out against offering low- interest loans for which the Greek government has pressed. Time Warner Inc. plans to bid $1.5 billion for the Metro-Goldwyn-Mayer Inc. film studio, according to a person with knowledge of the decision. Bank of Japan board members were divided on their views of the economy at their February meeting, reflecting signs of a sustained recovery at the same time as declines in consumer prices were deepening. The Finance Minister expects the economy to grow at 8.75% next year. The recent rate hikes announced by the RBI will not hurt the growth in the economy, as per the RBI Governor. The Planning Commission has called for reforms in agriculture. Direct tax collections have grown at around 10% y-o-y to touch Rs.3.58 trillion on March 19, 2010. Cement companies are planning to tap the rural markets as over capacity can negatively impact the profit margins.
Sugar output in UP is expected to go up 19% to 5 million tonnes. The Government may soon raise prices of natural gas produced by ONGC and Oil India Ltd. UB Group has exited its 10.27% stake in Aventis Pharma for a consideration of Rs.414 crore.
Sahara Group shall consider an IPO for the IPL team by 2013. L&T has bagged Rs.977 crore defence order. Tata Motors has signed pact for a truck plant in Myanmar. Tata Quippo, the world’s largest independent tower firm, is looking at bringing a financial partner into the firm. Jayshree Tea will acquire Bihar-based M P Chini Industries for a consideration of Rs.112.50 crore. HDFC Ltd. shall buy 49% stake in Godrej’ subsidiary Godrej Estate Developers. Crompton Greaves has bagged contracts worth Rs.600 crore from Power Grid Corporation of India. Dhanlaxmi Bank plans to raise Rs.200 crore via bonds. Welspun Gujarat has made an open offer for 20% stake in MSK Projects at Rs.130.50 per share. TRF will acquire UK-based Hewitt Robins for around Rs.20 crore. Nifty March contracts ends the Day down by 61.40 points at a premium of 8.10 points adding OI by 1.5%. Nifty OI PCR at 1.668 compared to 1.685 at the close of last Day. Nifty puts sees addition of 3.63 Lakhs and calls sees addition of 7.66 Lakhs over the Day. Highest OI in Nifty calls seen at 5300 March strike and puts at 5000 March strike. Nifty VIX at 19.96 from 17.75 last Day. ATM near Nifty options traded around 12-14% towards the end of the day. Long build up seen in RCOM, INDIACEM, VOLTAS, BANKBARODA & TRIVENI during the day. Short build up seen in during the day in IBREALEST, HDIL, APOLLOTYRE, NEYVELILIG, DLF, SUZLON, RENUKA, ORCHIDCHEM, HINDALCO, LITL, CENTURYTEX, INDIAINFO, MLL, RELMEDIA, ADANIENT, BANKINDIA, YESBANK, DENABANK, RNRL, MCDOWELL-N, GVKPIL, IDBI & PRAJIND etc. FII side over the Day saws short build up in Nifty futures and short covering and short build up in stock futures. Significant addition in Nifty options was seen during the day.

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The Federal Reserve may raise the discount rate.

The Federal Reserve may raise the discount rate, charged on direct loans to banks, before the next meeting of the Federal Open Market Committee on April 28, economists said. Google Inc. may pull out of China on April 10, China Business News reported today, citing an unidentified Chinese sales agent for the company. Asian stocks rose, driving the MSCI Asia Pacific Index toward a fourth weekly advance, after U.S. jobs and manufacturing reports boosted confidence in a global economic recovery.
The number of Americans filing new claims for unemployment fell to 457,000 last week from 462,000 the previous week, the government said. Economists had been expecting 455,000 new claims. Continuing claims, a measure of those who have been receiving benefits for a week or more, rose to 4,579,000 from 4,567,000 the previous week. Economists expected 4,522,000 in continuing claims. The Consumer Price Index (CPI) was unchanged in February after rising 0.2% the month before, according to a government report released before the start of trading. Prices were expected to have risen 0.1% in the month. The so-called core CPI, which removes volatile food and energy prices, rose 0.1% in February after falling 0.1% in January, meeting expectations. The nation warned Thursday that it will have to tap the International Monetary Fund for help if the European Union can't agree next week to a plan of attack that will help it cut its borrowing rates. Going outside the 16-nation euro zone would be seen as a blow to the group and could further weaken the euro. S&P has upgraded India outlook to stable on the back of better fiscal health. 8 telecom companies have bid for 3G, broadband wireless spectrum. Strides has bought Aspen’s stake in JVs for Rs.530 crore. Daimler has lined up a capex of Rs.4400 crore in India. Welspun Gujarat has planned to buy 75% stake in MSK Projects. Posco is in talks with SAIL for joint venture. Arcellor Mittal has relocated its steel plant to Bokaro. Bajaj Auto has targeted sale of 4 million bikes, 3 wheelers in 2010-11. Mahindra Finance has entered the ‘loan against gold’ space. Nifty March contracts ends the Day up by 14.55 points at a premium of 8.25 points adding OI by 4.2%. Nifty OI PCR at 1.675 compared to 1.615 at the close of last Day. Nifty puts sees addition of 43.09 Lakhs and calls sees paring of 6.78 Lakhs over the Day. Highest OI in Nifty calls seen at 5300 March strike and puts at 5000 March strike. Nifty VIX at 17.967 % from 17.73 last Day. Long build up seen in APOLLOTYRE, CUMMINSIND, WELGUJ, SAIL, SINTEX, HOTELEELA, INDHOTEL, RELMEDIA, TRIVENI, JSWSTEEL, ONMOBILE, JPASSOCIAT & INDIACEM during the Day. Short build up seen in during the Day MCDOWELL-N, BPCL, MCLEODRUSS, MOSERBAER, M&M & HINDPETRO etc. Long unwinding seen during the day in UNIONBANK, IDEA, POLARIS, RECLTD, TTML, DISHTV, EKC, CHENNPETRO, RCOM, OPTOCIRCUI & TATACOMM etc. FII side saw short build up in Nifty futures, short covering in stock futures and Nifty options was bought during the session.

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Stocks rose, sending the Dow Jones Industrial Average to a 17-month high.

The Senate passed a $17.6 billion jobs bill Wednesday and sent it to President Obama to sign it into law. The measure, which includes tax breaks and funding for highway projects, has been much debated in both houses of Congress over the last few weeks. It is seen as being the first in a series of bills designed to help bring unemployment down from its current level of 9.7%. The Producer Price Index (PPI), a measure of wholesale inflation, fell 0.6% in February for the biggest drop since July of last year after being expected to fall 0.2%, according to a consensus of economists surveyed by Briefing.com. PPI gained 1.4% in January. Stocks rose, sending the Dow Jones Industrial Average to a 17-month high, and commodities rallied as a drop in U.S. producer prices underscored the Federal Reserve’s assessment that inflation is not a threat to low interest rates. IMF expects Indian economy to grow at 8% per annum for FY’11. With growth firmly on track and inflation rising beyond its comfort zone, the Reserve Bank of India should carefully be returning to normal monetary policy, as per chairman of deputy chairman of planning commission, Mr. Montek Singh Ahluwalia. Railways have hiked freight rates for steel, iron ore for domestic use, coal and cement. A cyclical upturn is being witnessed in the commercial vehicle space. LNM is in talks to buy a stake in Bhushan Power. L&T has bagged Rs.1000 crore order for ONGC well platforms. GAIL has signed a pact with the ministry on target of transmitting 114.8 mscmd of natural gas from domestic sources and through liquefied natural gas during FY’11. Tata Teleservices, the listed subsidiary of telecom services operator Tata Teleservices, has agreed to sell its telecom towers for an enterprise value of Rs.1318 crore. Dalmia Cements plans to split business into four different units. TCS looks to hire 30,000 employees next year. Idea Cellular has received clean chit from special auditor. NTPC,IOC plan JV for biodiesel, lubes. Nifty March contracts ends the Day up by 34.95 points at a premium of 7.70 points paring OI by 1.2%. Nifty OI PCR at 1.615 compared to 1.564 at the close of last Day. Nifty puts sees addition of 21.73 Lakhs and calls sees paring of 3.13 Lakhs over the Day. Highest OI in Nifty calls seen at 5300 March strike and puts at 5000 March strike. Nifty VIX at % from 20.26 last Day. Long build up seen in TRIVENI, SCI, BIOCON, ORIENTBANK, FINANTECH, CROMPGREAV, LUPIN, STERLINBIO, RECLTD, JINDALSAW, NEYVELILIG, ICICIBANK, SAIL, SUNPHARMA, HDFC &
BEL during the Day. Short build up seen in during the Day in TULIP, HCC, GSPL, MCDOWELL-N, UNITECH, MOSERBAER, KFA, DISHTV & BHARATFORG etc. Long unwinding seen during the day in INDIAINFO, CIPLA, DIVISLAB, HCLTECH, HINDALCO & IDEA etc. FII side saw short covering in Nifty futures, short build up in stock futures and Nifty options was bought during the session.

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US new home construction fell 5.9% to an annual rate of 575,000 in February.

Federal Reserve officials repeated their pledge to keep the main interest rate near zero for an “extended period” and confirmed that emergency measures to prop up the housing market will end as planned this month. Stocks were also supported by news that ratings agency Standard & Poor's did not cut Greece's credit rating after warning last month that a downgrade was possible. US new home construction fell 5.9% to an annual rate of 575,000 in February, according to a government report, from an upwardly revised 622,000 during the previous month. Economists surveyed by Briefing.com expected housing starts to have fallen to an annual rate of 570,000 during the month. The report said building permits slipped 1.6% to an annual rate of 612,000 in February. They were expected to have fallen to an annual rate of 601,000 during the month. A separate reading showed import prices slipped 0.3% in February, posting the first decline since July 2009. Excluding fuel, import prices gained 0.2%. Import prices in January were revised to a 1.3% increase. Export prices slipped 0.5% last month, following a revised 0.7% rise in January. The Government is considering a proposal asking state-owned banks to exit non-core businesses, notably insurance, to ensure that periodic capital infusion goes for the growth of banking activities. The Godrej Group has set up a separate body to serve as counsel for growth and also handle the issues related to succession. RIL has lost the bid in the Canadian company, Value Creation. Renault-Nissan may tie-up with Ashok Leyland to enter the passenger car market. DE Shaw is looking out to buy 49% in Pegasus ARC.
Reliance Communications is open for acquisitions to increase its presence in the domestic market. Nifty March contracts ends the Day up by 72.75 points at a premium of 6.55 points adding OI by 0.9%. Nifty OI PCR at 1.564 compared to 1.513 at the close of last Day. Nifty puts sees addition of 21.73 Lakhs and calls sees paring of 3.13 Lakhs over the Day. Highest OI in Nifty calls seen at 5100 March strike and puts at 5000 March strike. Nifty VIX at 19.59% from 20.26 last Day. Long build up seen in SUNTV, IVRCLINFRA, MUNDRAPORT, JSWSTEEL, M&M, VIDEOIND, ASHOKLEY, ISPATIND, BHARATFORG, SAIL, ONMOBILE, HOTELEELA, TULIP, TATAPOWER, CAIRN, BPCL, ABAN, BHUSANSTL & VIJAYABANK during the Day. Short build up seen in during the Day in PFC, YESBANK, BHARTIARTL, NEYVELILIG & ACC etc. Long unwinding seen during the day in APOLLOTYRE, MCLEODRUSS, EDUCOMP, CHENNPETRO, POLARIS, LT, TRIVENI, RENUKA, TATAMOTORS, SUNPHARMA, INDIAINFO, JINDALSTEL, HINDALCO, TATASTEEL & ORIENTBANK etc.
FII side over the Day saws short build up in Nifty futures and marginal long build up in stock futures. Nifty options was written over the day.

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China and Japan, the two biggest foreign holders of Treasuries.

China and Japan, the two biggest foreign holders of Treasuries, reduced their positions of U.S. government debt in January as a measure of demand for American financial assets fell to a six-month low. China remained the biggest owner abroad of Treasuries, even as its holdings dropped by a net $5.8 billion to $889 billion, according to Treasury Department data released yesterday in Washington. Japan cut its holdings in January by $300 million to $765.4 billion, the report showed.
US Industrial production rose 0.1% in February, after rising 0.9% in January. Economists surveyed by Briefing.com thought industrial production would be unchanged, according to a consensus of economists surveyed by Briefing.com. Capacity utilization rose to 72.7% from 72.5% in January, versus forecasts for an unchanged reading. The Empire manufacturing survey, a regional reading on manufacturing, fell to 22.86 in March from 24.91 in February, a little stronger than the 22 level expected by economists. On Tuesday, the focus turns to the Federal Reserve, meeting to discuss interest rates. The central bank is widely expected to hold the fed funds rate, a key overnight banking rate, steady at historic lows near zero. However, what the bankers say in the statement about the economic outlook and the future of Fed policy will be critical. Inflation for the month of February 2010 stood at 9.89%.
Major ports in India are back on recovery track with an increase of 5% in cargo handled. Air traffic during the month of February has increased 15% y-o-y. Corporate tax collections have increased 20% y-o-y. TCS has signed a five-year contract with Malaysia Airlines for end-to-end information technology infrastructure services.
L&T has bagged an order worth Rs.2035 crore order from ONGC to construct an aromatics complex at a special economic zone in Mangalore. BHEL has bagged a Rs.3348 crore turnkey contract to set up 376MW captive power plant at Indian Oil Corporation. Reliance Communications has crossed the 100 million mobile subscriber mark. Hero Honda may set up a plant in Himachal Pradesh. Hindustan Construction Company buy 66% stake in Swiss firm, Karl Steiner AG. SAIL is eyeing Rs.43000 crore sales in FY’11. Madhucon Projects has got mining license in Indonesia for exploration of 30,970 hectares at Mauraduwa in Indonesia. Kiri Dyes has acquired DyStar of Germany for 50 million euros. Nifty March contracts ends the Day down by 12.80 points at a premium of 3.00 points paring OI by 1.4%. Nifty OI PCR at 1.513 compared to 1.316 at the close of last Day. Nifty puts sees addition of 22.76 Lakhs and calls sees paring of 10.98 Lakhs over the Day. Highest OI in Nifty calls seen at 5100 March strike and puts at 5000 March strike. Nifty VIX at 20.26% from 19.73 last Day. Long build up seen in MCLEODRUSS, LITL, TCS, WIPRO, DRREDDY, BOSCHLTD, BALRAMCHIN & INDIACEM during the Day. Short build up seen in during the Day in ABAN, AREVAT&D, TRIVENI, PUNJLLOYD, SINTEX, RELINFRA, PIRHEALTH, RNRL, IOC, KSOILS, CANBK, IBREALEST, VIDEOIND, EKC, RELMEDIA & DENABANK etc. FII side over the Day saws short build up in Nifty futures and marginal long build up in stock futures. Nifty options was written over the day.

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