Ghalla &Bhansali Securities Pvt. Ltd. December 4, 2009 News & Equity Markets News Economy Food price index was up 17.47 percent in the 12 months to Nov. 21, while the fuel index was unchanged. Reserve Bank of India expects wholesale price inflation to be 5.8 per cent in the 2010/11 fiscal year, one of its deputy governors said on Thursday. India's iron ore exports more than doubled to 9.3 million tonne in October this year as compared to 4.4 million tonne in the same month a year ago. A leftbacked trade union is complaining that “huge bonus in the garb of performance related pay” given to executives is discriminatory against employees of Public Sector Undertakings (PSUs). Bandra Kurla Complex, or BKC, is set to witness a second wave of migration, with Indian companies and MNCs looking to take advantage of lower rentals, locational advantage and planned infrastructure offered by Mumbai’s swanky business district. The country’s top bankers still continue to bet on places like Andhra Pradesh, Gujarat, Karnataka, Maharashtra, Tamil Nadu (TN) or Uttar Pradesh (UP) when they look at expansion of operations. A study by KC Zachariah and S Irudaya Rajan of the Centre for Development Studies here estimate that about 37,000 Kerala emigrants abroad have lost their jobs owing to the recession. Senior industry executives looking to 'broaden their perspective' and 'leadership qualities' can now do so at the premier Indian School of Business - by paying a whopping Rs 25 lakh for a 60-day course spread over 15 months. A day after the Union HRD ministry directed a probe into the technical glitches at the ongoing Common Admission Test (CAT), private training centres demanded scrapping of the computerised MBA entrance. Oscar-winner AR Rahman's victorious run at awards ceremonies continues with the music maestro now fetching two nominations at the 2010 Grammy Awards for his soundtracks from 'Slumdog Millionaire'. Norwegian telecom firm Telenor announced the launch of its services in seven out of 22 mobile zones in India on Thursday, amid an intense tariff war in the world's fastest-growing wireless market. The farmers agitation for higher cane prices has again started DJII Nasdaq Composite 10,366.15 2,173.14 Script CIPLA RANBAXY RPOWER Top Gainers on Nifty Latest Close 349.2 509.15 154.65 Previous Close 330.8 484.65 147.4 Top Losers on Nifty Script TATAMOTORS IDFC SUZLON Latest Close 709.05 168.8 80.55 Lastest Close Previous close Domestic BSE Sensex S&P CNX Nifty BSE 200 BSE 500 17,185.68 5,131.70 2,153.74 6,741.27 17,169.91 5,123.25 2,146.69 6,717.28 International US Markets 10,452.68 2,185.03 Asian Market Nikkei 225 Straits Times Index Hang Seng Index KOSPI Index 9,977.67 2,808.18 22,553.87 1,615.00 9,608.94 2,796.34 22,289.57 1,591.63 368.73 11.84 264.3 23.37 -86.53 -11.89 15.77 8.45 7.05 23.99 Previous Close 733 173.7 82.45 Indices Change showing signs of a revival. Government The government is keen to see national carrier Air India cleaning up its financial mess within two years, so that the public sector carrier can be listed by 2013. Shanghai Composite 3,264.63 3,269.75 -5.12 European Markets FTSE 100 Index 5,313.00 5,327.39 5,781.68 3,795.92 -14.39 -11.33 3.19 5,770.35 The ministry of corporate affairs has informed a Parliamentary DAX Index Standing Committee that it was unable to get quality CAC 40 3,799.11 proposals from NGOs and voluntary organisations to take up Index awareness programmes on its behalf. DJIA -Dow Jones Industrial Average The government may give more powers to the disinvestment department, allowing it to override the administrative ministries in disinvestment-related decision, as it seeks to fast-track the disinvestment process. The good old National Highway no 8, the only direct connectivity between Ahmedabad and Vadodara before the expressway happened, is set for a comeback, minus some of the dhabhas, maybe. Group Advances Declines Unchanged Total A 119 84 0 203 Advances & Declines BSE B 1124 767 58 1949 S 291 167 9 467 Tota 165 111 Govt mulls banning emergency contraceptive pills ads. Regulatory Reliance Natural Resources Ltd (RNRL) on Thursday told the Supreme Court that the Krishna-Godavari gas from Reliance Industries Ltd (RIL) was not meant for the Dadri power project alone. Christmas cheer has come early for foreign nationals working in India. They can now take their entire post-tax salaries home, following a change in rules to this effect by the Reserve Bank of India (RBI). India needs reforms in product and labour markets for high economic growth, the Organisation for Economic Cooperation and Development Secretary General Angel Gurria said on Thursday. In a decision that could impact companies with operations in the north-east, Jammu & Kashmir and Himachal Pradesh, a tax tribunal in Amritsar has ruled recently that such entities will be liable to pay tax on Central excise duty refunds. 73 284 Commodity Review INR Latest Value Gold Silver Crude 18272/ 10 gms 29325/ kg 3530.18/ barrel Late 120 18. 75.8 Forex Review Currencies Vs INR Latest close USD GBP Euro 100 Yen 46.22 77.12 69.75 52.60 Previous Close 46.27 76.7619 69.8 53.18 International Executive director Chevrolet Design Mike Simcoe shows the new Chevrolet Cruze as it is debuted during press preview days of the 2009 LA Auto Show at the Los Angeles Convention Center in Los Angeles, California. The United Nations forecast Wednesday that the world economy will bounce back in 2010 with a global growth rate of 2.4 per cent, but it warned that the recovery will be fragile. Goldman Sachs Group Inc is meeting with major investors in an effort to head off a possible investor backlash over its record bonuses. China and other big developing nations rejected core targets for a climate deal such as halving world greenhouse gas emissions by 2050 just five days before talks start in Copenhagen. Germany's Siemens AG has reported a net loss for its fiscal fourth quarter of euro1.1 billion ($1.65 billion), caused mostly by a write-down on its Nokia Siemens Networks business. Kingfisher, Europe's biggest home improvements retailer, beat forecasts with a 28 percent rise in third-quarter profit, helped by better market conditions and self-help initiatives. International ratings agency Standard & Poor's said it had cut the credit ratings of six Dubai government-linked companies, including ports operator DP World, to junk status. Bank of America Corp. said on Wednesday it plans to repay its $45 billion in government bailout funds in the next few days, a move that will help the troubled bank recruit a new CEO. American International Group Inc lowered its debt by $25 billion as the company transferred two overseas life insurance units destined for sale to Federal Reserve vehicles. U.S. online job postings fell slightly in November, due to a dip in demand for health care-related positions and employers' continued unease regarding economic recovery. Malta is marketing itself as a cheap and diverse European film shooting destination to Indian filmmakers. Air Canada has been voted the best airline in north america in an international survey of business travellers by Global Traveler Magazine. Personal Finance Debt mutual funds may have to soon value their investments of more than 91 days maturity based on their market price or a third-party decided price to ensure that their net asset values (NAVs) are close to the realizable value. The assets under management of mutual funds in the country have increased to Rs eight lakh crore at the end of November, mainly propelled by bulk inflow into debt schemes. After UTI Mutual Fund, Birla Sun Life becomes the second fund house in the country to join the National Stock Exchange's newly launched mutual fund service system (MFSS). Tata-AIG General Insurance launched eight add-on motor insurance covers; post de tariffing that took effect in January 2009, in May this year. The Employees Provident Fund Organization (EPFO) will soon be allowed to purchase long-term government bonds with maturity of 10 years or more from the secondary market. Employers may soon be required to make mandatory provident fund contributions to workers with a salary of up to Rs 15,000 a month instead of Rs 6,500 at present. State-owned lender PNB has slashed interest rates on most NRI deposits of foreign currency denominations. All of India's diversified equity funds pulled off positive returns in November but half of them lagged the benchmark index as fund managers raised cash levels, while holdings in consumers and capital goods underperformed. Equity Markets Indian power firm JSW Energy is set price its forthcoming initial public offer at Rs 100-115 a share to raise up to Rs 27 billion ($583 million),. The founders of Indian realty DLF Ltd aims to list their real estate investment trust DLF Assets in Singapore by June next year to raise $1.2 billion. Equities gave away intraday gains and ended flat on Thursday, as profit booking emerged at key resistance levels. Vedanta Group Company Sterlite Energy has arranged Rs 10,000 crore for setting up the Talwandi Sabo thermal power plant in Punjab that is expected to be commissioned by 2012. Bharat Forge Ltd (BFL) has finally decided to shift its power equipment project to Gujarat, moving out from West Bengal, where it was facing hurdle in land acquisition , which was delaying the project. Rourkela-based Shiva Cement is raising nearly Rs 80 crore through bank loans to part finance its Rs 165-crore expansion plan which aims at nearly quadrupling capacity to 2.3 million tonne. Shares in outsourcer Mahindra Satyam jumped as much as 9.6 per cent on Thursday after JPMorgan upgraded the stock to overweight from neutral, dealers said. With the Indian motown buzzing with robust sales, the stocks of automotive manufacturers are sizzling at the bourses. Maruti Suzuki plans to increase its production capacity by up to 75 per cent over the next five years while Shiva Cement is raising Rs 80 crore to finance its expansion plans. Shares of Gillette India have been rising of late. According to brokers tracking the counter, talk is that company may announce a buyback shortly. The stock has gained close to 12% in the past one month. The pendulum seems to have swung the other extreme for some of the mid-cap software services companies. Till some months ago, the widely-held perception that these companies were likely to flounder till the US economy recovered. Shares of SAIL and REC were among the notable gainers in Wednesday’s lacklustre session. Both stocks advanced, supported by strong volumes. With its ambitious plans of inorganic growth by acquiring brands and building a diverse product portfolio, Kolkata-based Emami is an FMCG company to watch out for. After the meltdown in global commodity market, the prices of some mining material came crashing down. Indian mining companies, which export a bulk of their products, were unclear about the revenue flow for the rest of the year. Buy Sell Net Buy Sell Net FII Inv (Equity) Rs Crore 3-Dec 3464 2402 1062 Nov-09 51063 45566 5497 Oct-09 70130 61053 9077 Sep-09 69885 49945 19940 Aug 519 479 40 MF Inv (Equity) Rs Crore 2-Dec 1014 982 32 Nov-09 14752 15447 -695.6 Oct-09 16252 21446 -5194 Sep-09 15852 18187 -2335 Aug 174 168 57 Debt Markets Bond yield hits 5-wk high on tightening worry. The RBI is scheduled to auction bonds worth Rs 100 billion on Friday. MF Scheme Performance Scheme Name Retu 3M In interest rate futures on the National Stock Exchange, the December contract implied a yield of 8.0223 per cent, above its previous close of 7.8478 per cent. The yield implied in the March contract was 8.2337 per cent, above its previous close of 8.2247 per cent. The benchmark five-year interest rate swap was at 6.64/68 per cent, above its previous closing of 6.61/65 per cent. ICICI Bank, India's second-largest bank, plans to raise around 12.5 billion rupees ($270 million) via a bond sale that opens on Thursday. 5-year swap rate near 2-mth low on rate views. Diversified Equity Principal Emerging Bluechip Fund - G JM Mid Cap Fund - G HDFC Equity Fund Religare AGILE Fund - G Sectorial Taurus Infrastructure Fund - G UTI Thematic Tran & Logi Fund-G Reliance Pharma Fund - G 19. 12. 21. 20. 5.7 19 31. Key Rates Call Rate NSE Mibor Reverse Repo Bank Rate CRR Repo Latest 3.20 3.29 3.25 6 5 4.75 Previous Day 3.20 3.27 3.25 6 5 4.75 Franklin Pharma Fund Month Ago 3.30 3.29 3.25 6 5 4.75 Fund of Fund AIG World Gold Fund - G DSP BlackRock World Gold Fund - G ING Latin America Equity Fund ING Optimix Global Commodities Fund - G Gilt Fund Birla Sun Life G Sec Fund - LT - G ICICI Prudential GFTP Religare Gilt Fund-Long Duration Plan-R-G 31. 26 29. 24. 19. 3.2 1.5 3.4 Corp Bond Spreads(bps) Tenor 1 3 5 10 As on 2 December 2009 AAA 68.8 87.1 90.6 91.9 AA+ 89.8 114.1 122.6 120.9 AA 114.8 139.1 147.6 158.9 JM G Sec Regular Plan Debt Income ICICI Pru Income Opp. Fund-R-G Canara Robeco Income Scheme DWS Premier Bond Fund - Regular P- G IDFC SSIF - MTP - Plan A Liquid Escorts Liquid Plan - G Sahara Liquid Fund - VP - G Fortis Overnight Fund - G LIC MF Liquid Fund - G ETFs Junior BeES Reliance Banking ETF Kotak PSU Bank ETF PSU Bank BeES Returns are as per latest NAV. * returns for all periods are absolute. 3.0 3.5 1.4 3.2 3.2 Note - one day lag 1.3 1.1 1.3 1.1 21. 26. 32. 31. 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