KPMG-FICCI report forecasts 12.5% annual growth in media industry

17 Feb 2009 | 14:08 KPMG-FICCI report forecasts 12.5% annual growth in media industry

A report on the Indian media and entertainment industry by KPMG-FICCI, has forecast a 12.5% annual growth for the sector over the next five years, closely mirroring the outlook for advertisement spend. The media and entertainment industry grew 12.4% to Rs 58400 crore in 2008. Increasing media penetration will drive the growth, the report says.

However, advertising-driven sectors like television, print, radio and outdoor, have been largely affected by the economic slowdown and this is expected to continue in the current year too, the report says.

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Govt estimates fiscal deficit at 5.5% of GDP in 2009-2010

16 Feb 2009 | 14:16 Govt estimates fiscal deficit at 5.5% of GDP in 2009-2010

The government spending will rise 6% to 9.53 trillion rupees in the year starting 1 April 2009, acting Finance Minister Pranab Mukherjee said at the time of unveiling an interim general budget for 2009-2010 today, 16 February 2009. That will result in a budget gap of 5.5% of gross domestic product by 31 March 2010, compared with a 3% target. The interim budget estimates include initiatives for the first four months of the fiscal year 2009-2010, as well as spending and revenue estimates for the full year. These figures will be revised when the new government announces its budget after assuming office in May 2009.

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Govt extends interest rate subsidy scheme on exports

16 Feb 2009 | 12:21 Govt extends interest rate subsidy scheme on exports

Acting Finance Minister Pranab Mukherjee today extended interest rate subsidy scheme on exports for some sectors till 30 September 2009 from 31 March 2009, at the time of unveiling the interim general budget for 2009-2010.

The rural health spending has been estimated at Rs 12070 crore for 2009-2010, whereas the rural sanitation spending has been pegged at Rs 1200 crore. Urban renewal spending in 2009-2010 is estimated at Rs 11842 crore.

Spending on rural jobs scheme is estimated at Rs 30100 crore 2090-2010.

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Fiscal deficit estimated at 6% of GDP in 2008-09

16 Feb 2009 | 12:06 Fiscal deficit estimated at 6% of GDP in 2008-09

Acting Finance minister Pranab Mukherjee today said the fiscal deficit is estimated at 6% GDP in 2008-09. At the time of presenting the interim general budget for 2009-2010, he said the revenue deficit is seen at 4.4% of GDP in 2008-09

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Govt to provide interest rate subsidy to farmers in 2009-2010

16 Feb 2009 | 11:56 Govt to provide interest rate subsidy to farmers in 2009-2010

Acting Finance minister Pranab Mukherjee today said the government will provide interest rate subsidy to farmers in 2009-2010. He said tax rates must fall in times of crisis. The 2008/09 revised estimate of tax collection is pegged at 6.28 trillion rupees. 2008/09 revised estimate of extra non-plan spending is pegged at 1.1 trillion rupees

The 2008/09 revised estimate of spending is pegged at 9.9 trillion rupees.

Mukherjee said the pay hike of government employees will support domestic demand.

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Mukherjee says additional measures required in full-fledged budget

16 Feb 2009 | 11:29 Mukherjee says additional measures required in full-fledged budget

Acting Finance minister Pranab Mukherjee today said there is need to accelerate policy reforms including financial sector. At the time of unveiling the interim general budget for 2009-2010, he said there may be a need for additional measures in the full-fledged budget by the new government given the global financial crisis. He said now is the time for extraordinary measures. He said the government has relaxed the fiscal responsibility and budget management (FRBM) targets.

He said while India has weathered the inflation crisis, there is no room for complacency. He said 2008/09 farm outlook is encouraging.

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Mukherjee says strong growth achieved in UPA's regime

16 Feb 2009 | 11:14 Mukherjee says strong growth achieved in UPA's regime

Foreign Minister Pranab Mukherjee, who is holding additional charge of the finance portfolio, today said the Indian economy has witnessed strong growth in the first four years of the Congress-led UPA government's regime. At the time of unveiling the interim general budget for 2009-2010, he said India's per capita income also registered the fastest growth rate during the last four years.

The fiscal deficit dropped to 2.7%, while the revenue deficit grew. The investment rate grew to 39% and domestic savings rate showed great improvement at 37.7%. The tax to GDP ratio rose to 12.5%

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Bond market expects rate cut

13 Feb 2009 | 14:24 Bond market expects rate cut
Bond market is becoming more attractive place for the investors specially when other investments opportunities are weaker. The Bond Market is the financial market where debt securities or bonds are traded. To know more about the bond market activities Capital Market's Analyst,Hemangi Kelkar spoke with Namrata Padhye, (Analyst, Fixed Income Research), IDBI Gilts Limited.

The development of a corporate bond market in India has lagged behind in comparison with other financial market segments owing to many structural factors. Kindly share your view on the topic?

Various committees have already submitted the report to SEBI and Government of India .The subject is already in public domain. We expect the required structural changes to take place gradually in the bond market in India.

During the previous boom period, banks preferred to increase exposure to secured corporate bonds / debentures. Now we find LIC very active in subscribing to corporate bonds / debentures, but there is hardly any interest seen amongst banks. Kindly share your views in this regard.

Majority of the funds with banks are directed toward their lending activities. Moreover, the banks under statutory norms are also required to invest primarily in the government securities. So, only in case of any residual exposure limit will the banks subscribe to the corporate debt issuances. As far as corporate bond investment is concerned, banks need to mark them to market, which is not the case in terms of the advances made directly to corporates. Secondly, the inflows on investments in form of repayments are majorly towards the maturity, whereas in case of loans there are considerable interim inflows. Thirdly, liquidity in secondary corporate bond market can make the investments sticky and lead to problems in ALM. Last but not the least, in the present circumstances maintaining sound capital adequacy ratio with RBI has also taken prominence.

Slow down in US in particular and global slowdown in general will change dynamism of global economy. In what way it will have impact on our debt market?

We have seen sound investment in debt market from FIIs when equity market was not performing up to the mark. Global slowdown particularly in US will shift flow of money to emerging market. At this juncture, Indian debt markets have huge opportunity to attract this fund.

In recent RBI's policy we had seen neutral view on interest rates, after heavy rate cut since October 2008. What will be the outlook for the short and long tern interest rates?

We have seen rate cuts from RBI since October 2008 to till date. Overall bond market is expecting another round of rate cut. The stance of the RBI is very clear on liquidity and interest rates. There is softening bias on interest rates.

The government is planning to raise Rs 46000 crore of bonds between 20th February and 31st March 2009. Despite favorable trends like fall in inflation and easing interest regime, will this not lead to hardening of yields in the short term? With MSS bonds outstanding balance already in excess of Rs 91000 crore, do you think that there is further room for RBI to repurchase bonds to avoid sharp rise in bond yields?

The RBI is closely monitoring the liquidity and interest rates movement prevailing in the economy. To ensure adequate liquidity in the system, the RBI has announced its willingness to conduct open market operations through the auction-based mechanism. This should improve the bond market sentiment and also aid in removing the disparities in the yield curve. The option of repurchasing MSS bonds remains open, but further clarity is required.

Despite the fact that inflation and interest regime are coming down, the bond yields have surged from 5.08% on 02 January to 6.3% on 09 February 2009. What other factors beyond inflation, interests regime and government's borrowing programme are significantly influencing bond yield rates.

Apart from the above-mentioned factors, the developments in both the domestic and global economies also impact the bond market movements.

Since January many premium PSUs and banks have also been forced to postpone and/or scrap their bond issues due to volatile and perceived high yields. When do you expect bond markets to stabilize and allow smoother flow of funds?

We expect the bond market to stabilize going ahead, especially with the improvement in government securities market. The soft bias on interest rates and further decline in inflation numbers would also aid the improvement. RBI has also taken steps to ensure adequate liquidity in the market.

Do you think India is heading for deflation (negative inflation)? How prepared are the banks, considering the fact that it will have adverse consequences not only in terms of fall in profitability of their clients, but they may have to re-work the way working capital advances are made / monitored (as the value of stocks will keep coming down)

We are expecting further fall in inflation rate in India; estimated at 1.5-2% by March 2009. There is a case for negative inflation number in fiscal year 2009-10 for roughly one to two quarters. However, the actual tenor of negative readings would also depend on global factors. Reduction in oil prices has resulted in lower inflation on domestic front. The domestic banking sector, with its advanced monitoring tools, is well prepared for the above-mentioned scenario. As a result we do not expect the banking sector to face any major problems.

What is your expectation from the Interim Budget to be placed in the parliament? What measures do you expect on direct and indirect tax front?

No comments.

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Railways cuts AC, mail, express fares by 2%

13 Feb 2009 | 13:11 Railways cuts AC, mail, express fares by 2%

Railway Minister Lalu Prasad today cut passenger fares while keeping freight rates unchanged at the time of announcing interim rail budget for 2009-2010. AC, mail, express fares have been cut by 2%.

Passenger fares of ordinary passenger trains have been lower by rupee one for fares costing up to Rs 50 per passenger for journey above ten kilo metres. Second class and sleeper class fares of all mail/express and ordinary passenger trains have been reduced by 2% for tickets costing Rs 50 and more per passenger.

Fares of AC First Class, AC II tier, AC III tier and AC Chair Car have also been reduced by two per cent.

The rail minister said Railways is expected to show a surplus of Rs 18,847 crore in the next fiscal. The railways has started work on Dehi-Mumbai freight corridor, he said. The feasibility studies are on for running bullet trains between Delhi-Amritsar, Ahmedabad-Pune, Hyderbada-Vijaywada- Chennai, Chennai-Bangalore, Delhi-Patna, Kolkata-Haldia and Ernakulam-Howrah.

Wagon output will be increased from 6000 to 15,000 a year

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Inflation at 4.39%

12 Feb 2009 | 14:33 Inflation at 4.39%
Fall in all three major contributor i.e. primary articles, manufacturing product and fuel power index resulted into 0.74% declined in index of WPI for the week ended 31 January 2009 compared with a week ago.

The annual rate of inflation, calculated on point-to-point basis, stood at 4.39% for the week ended 31 January 2009 compared to 5.07% for the previous week and 4.74% during the corresponding week of the previous year.

The major contributor, manufacturing product with 64% weighted in total WPI declined by 0.1% compared with previous week. The index of food products, beverages tobacco and tobacco products, paper and paper products machinery and machine tools, transport equipment and parts contributed to the fall in manufacturing product index.

Textile which is major contributor to manufacturing index declined by 0.8% to 140.0 from 141.1 for the previous week due to lower prices of polyster yarn (11%), dhoties, sarees and voils (6%), cotton yarn-cones, cotton yarn-hanks and nylon filament yarn (1% each). However, the prices of cotton grey drills & jeans (3%), cotton grey cloth (others) (2%) and viscose filament yarn (1%) moved up.

However the index of wood and wood product, non-metallic mineral products leather and leather products, chemicals and chemical products marginally increased this time compared to previous week.

Another major contributor in WPI is primary article index, which declined by 0.2%. The fall is attributed to the decline in the index of food article. The index for food articles group declined by 0.3 % to 244.7 from 245.4 for the previous week due to lower prices of condiments and spices and fruits, vegetables and barley and tea. However the index for non-food articles group rose marginally due to higher prices of tobacco and castor seed, niger seed and raw rubber.

The index for fuel, light and lubricants group declined by 3.1% due to lower prices of lignite (21%), petrol (11%), LPG (8%) and high speed diesel oil (7%).

WPI based inflation slowed down to a one- year low after the government cut fuel prices. The government cut domestic petrol prices by Rs. 5 a litre, diesel by Rs. 2 and cooking gas by Rs. 25 per cylinder.

The industrial production again crashed by two per cent in December 2008. Thus the slowdown in the growth momentum of the economy has given clear indication of the need of policy easing while sliding inflation has opened doors for RBI to further reduce interest rates to revivify economic growth.

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Bank credit declines by Rs 22659 crore in January 2009

12 Feb 2009 | 12:41 Bank credit declines by Rs 22659 crore in January 2009
The total outstanding credit of the scheduled commercial banks (SCBs) in India has declined by 0.9% or Rs 22659 crore from Rs 2658997 crore as of 2nd January 2009 to Rs 2636338 crore as of 30th January 2009. Contrary to market expectations, we find that the bank credit has actually shrunk in January 2009, which is a cause for concern.

We find that between 1st April and 10th October 2008, the bank credit increased by Rs 245491 crore to Rs 2607404 crore. But between 10th October 2008 and 30th January 2009, the incremental bank credit has been only Rs 28933.82 crore.

The shrinkage in credit has lead to deceleration in the pace of credit expansion to 19.3% as at end of January 2009 on y-o-y basis from 24% as at month end December 2008. Meantime, the credit-deposit ratio for the banking system also eased 162 bps to 71.86% as at month end January 2009. The bank credit growth has decelerated sharply to 11.6% in the current fiscal up to 30 January, compared 14.5% in the corresponding period previous year.

The RBI has raised its indicative projection of total flow of credit from the banking sector to the commercial sector to 24% for 2008-09 from 20% envisaged in the Annual Policy Statement. However, in the face sharp moderation in credit growth, it remains to be seen as how upwardly revised credit growth target can be achieved.

The RBI has taken several measures to improve liquidity, expand the credit availability for the productive sector of the economy, to shore up growth and counter the global economic crisis, since mid September 2008. In the process it reduced CRR by 400 bps to 5%, repo rate by 350 bps to 5.5%, reverse repo by 200 bps to 4%, SLR by 100 bps to 24%. It has also instituted various refinance facilities for banks and financial institutions and repurchased MSS bonds. These all measures resulted in augmentation of potential liquidity of over Rs 4.28 lakh crore approximately.

On the other hand, the investment of SCBs into government and other approved securities increased 1.6% or Rs 17807.5 crore to Rs 1166052 crore during January 2009 and by whopping Rs 185135 crore from 10 October 2008 to 30 January 2009. Meantime, the investment to deposit ratio rose to 31.78% as at end January 2009, compared to 28.27% as on 10 October 2008. The SCBs investment growth in the current fiscal up to 30 January stood at 20% matching the growth in the corresponding previous period.

The aggregate deposits of the SCB's surged 1.38% or Rs 50038 crore to Rs 3668801 crore in January 2009. The demand deposits, accounting for 12.6% of the aggregate deposits increased 1% to Rs 463498 crore, while time deposits soared 1.4% to Rs 3205302 crore as on 30 January 2009. However, the aggregate deposits increased by 14.76% in the current fiscal up to 30 January 2009, compared to 18.4% rise recorded in the same period last year.

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Industrial production declines 2% in December 2008

12 Feb 2009 | 12:30 Industrial production declines 2% in December 2008

Industrial production declined for the second time in three months in December 2008, data released by the government today, 12 February 2009, showed. The index of industrial production (IIP) declined 2% in December 2008 compared to a revised 1.7% gain in November 2008 and a 0.3% decline in October 2008, the Central Statistical Organization said.

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Inflation below 5%

12 Feb 2009 | 12:22 Inflation below 5%

Inflation based on the wholesale price index (WPI) rose 4.39% in the year through 31 January 2009, much lower than previous week's annual rise of 5.07%, data released by the government today, 12 February 2009, showed.

Reduction in auto fuel prices helped bring down WPI. The government on 28 January 2009 announced cut in the prices of petrol, diesel and LPG. Petrol prices were cut by Rs 5 per litre and diesel prices by Rs 2 a litre. LPG price was cut by Rs 25 per cylinder.

The Reserve Bank of India (RBI) said in its monetary policy review on 27 January 2009 it expected annual inflation to be below 3% by the end of the 2008/09 fiscal year in March 2009.

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Govt scraps import duty on newsprint

12 Feb 2009 | 10:23 Govt scraps import duty on newsprint

The government on Wednesday, 11 February 2009, scrapped customs duty on newsprint to provide relief to print media industry in the wake of a sharp rise in international prices of newsprint and light weight coated paper. Customs duty has been fully exempted on uncoated paper used for printing newspapers and light weight coated paper used for printing magazines. The rates come into effect immediately.

The surge in newsprint prices has led to a significant increase in publishing costs.

The government had earlier reduced customs duty on newsprint in April, 2008 to 3% from 5%. Light weight coated paper attracts customs duty of 5%.

Due to full exemption from excise duty, these items do not attract countervailing duty. They are also exempt from the Special Additional Duty of 4%.

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Centre to infuse Rs 3800 crore in three state-run banks

11 Feb 2009 | 14:40 Centre to infuse Rs 3800 crore in three state-run banks

The Union Cabinet today, 11 February 2009, approved a proposal to infuse Rs 3800 crore in three state-run banks. UCO Bank will get Rs 450 crore in fund infusion in the year ending March 2009 (FY 2009) and additional Rs 750 crore in the year ending March 2010 (FY 2010. Central Bank of India will get Rs 700 crore each this fiscal and the next.

Vijaya Bank will get Rs 500 crore in FY 2009 and Rs 700 crore in FY 2010.

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Kamal Nath says India ready to hold talks with China over toy import ban

10 Feb 2009 | 14:14 Kamal Nath says India ready to hold talks with China over toy import ban

Trade Minister Kamal Nath today, 10 February 2009, said the government is ready to hold talks with China over its recent decision to ban import of Chinese toys. In recent months, the Indian government has takes some steps to protect the domestic industries from cheap imports. Last month, it banned imports of several types of toys from China for six months. Chinese toys have ruled the roost in the Indian toys market for quite some time now.

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Centre to borrow Rs 46000 crore extra between mid-Feb to March end

10 Feb 2009 | 12:40 Centre to borrow Rs 46000 crore extra between mid-Feb to March end

The Centre will reportedly borrow an extra Rs 46000 crore ($9.45 billion) between 20 February 2009 and late March 2009. Meanwhile, RBI Deputy Governor Shyamala Gopinath on Tuesday, 10 February 2009, said the central bank will carry out the government's extra borrowing programme in a non-disruptive manner.

Government bond prices have plunged in 2009 as the government borrowed more than budgeted for the fiscal year ending 31 March 2009 to pump prime the economy. Global rating agency Fitch Ratings on Monday, 9 February 2009, affirmed India's ratings on Monday but kept its negative outlook on the local currency rating, saying public finances will deteriorate due to a weakening economy and government stimulus measures

The Central Statistical Organisation (CSO) on Monday pegged India's projected GDP growth for the year ending March 2009 at 7.1%, the slowest in six years and below the previous year's 9%.

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RBI says all options open on govt borrowing

10 Feb 2009 | 11:24 RBI says all options open on govt borrowing

Reserve Bank of India (RBI) Deputy Governor Shyamala Gopinath today, 10 February 2009, said the government and the Reserve Bank will keep all options open for borrowing funds from the market. Late last week, the RBI governor D Subbarao said the central bank will manage the government's borrowing programme smoothly. His comments had send bond prices surging.

However, the bond prices have plunged more than a percentage point so far in 2009 as the government borrowed more than budgeted for the fiscal year ending 31 March 2009 to pump prime the economy. Gopinath is meeting finance ministry official today to decide if the government needs to borrow more to fund its rising expenses after two rounds of stimulus for the economy.

Global rating agency Fitch Ratings on Monday affirmed India's ratings on Monday but kept its negative outlook on the local currency rating, saying public finances will deteriorate due to a weakening economy and government stimulus measures

The Central Statistical Organisation (CSO) on Monday, 9 February 2009, pegged India's projected GDP growth for the year ending March 2009 at 7.1%, the slowest in six years and below the previous year's 9%.

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Fitch affirms India ratings

09 Feb 2009 | 17:11 Fitch affirms India ratings

The global rating agency Fitch today, 9 February 2009, affirmed India's rating at a time when there have been fears of a rating downgrade of India due to surging fiscal deficit. Fitch affirmed India's foreign currency issuer default ratings at BBB-minus, or the lowest investment-grade level, with a stable outlook. Local currency ratings were also kept at that rating, but with a negative outlook.

The local currency rating outlook was lowered last July year on worries about deteriorating public finances and is above Moody's rating, which marks it a speculative grade.

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Ahluwalia says more stimulus needed for economy

09 Feb 2009 | 13:53 Ahluwalia says more stimulus needed for economy

Planning Commission Deputy Chairman Montek Singh Ahluwalia today, 9 February 2009, said economy will not be slowing as much as the rest of the world if there is another fiscal stimulus next year. The Central Statistical Organisation (CSO) today, 9 February 2009, pegged India's projected GDP growth for the year ending March 2009 at 7.1%, the slowest in six years and below the previous year's 9%. The CSO said manufacturing output growth was estimated at an annual 4.1%, half of the expansion in 2007/08 while farm output is seen at annual 2.6%, much lower than 4.9% growth last year.

The government has so far announced two stimulus packages including tax cuts and the capital injections for banks.

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Car sales drop 3.2% in January 2009

09 Feb 2009 | 12:54 Car sales drop 3.2% in January 2009

Passenger car sales declined 3.2% to 1.10 lakh units in January 2009 over January 2008, according to data released by the Society of Indian Automobile Manufacturers (Siam). Sales of trucks and buses fell 51% to 23,157 units. Job losses and tight credit have dented demand for passenger cars. Interestingly, India's biggest small car maker in terms of market share, Maruti Suzuki reported record monthly sales in January 2009 on the back of strong growth in the rural market.

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CSO projects 7.1% GDP growth in FY 2009

09 Feb 2009 | 11:24 CSO projects 7.1% GDP growth in FY 2009

The Central Statistical Organisation (CSO) today, 9 February 2009, pegged India's projected GDP growth for the year ending March 2009 at 7.1%, the slowest in six years and below the previous year's 9%. The CSO said manufacturing output growth was estimated at an annual 4.1%, half of the expansion in 2007/08 while farm output is seen at annual 2.6%, much lower than 4.9% growth last year.

The estimated growth in GDP for the trade, hotels, transport and communication sectors during 2008-09 is placed at 10.3%, lower than 12.4% growth last year. The segment 'financing, insurance, real estate and business services', is expected to show a growth rate of 8.6%during 2008-09, lower than 11.7% growth last year

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Pranab Mukherjee promises more measures for the economy

06 Feb 2009 | 18:28 Pranab Mukherjee promises more measures for the economy

Foreign Minister Pranab Mukherjee who is now also overseeing the finance portfolio today, 6 February 2009, said the government will come of out with more measures for the economy. He said government will take further steps to ensure that labour intensive sectors are less adversely affected.

A recent report by Ministry of Labour said that the economic slowdown claimed close to five lakh jobs in the December 2008 quarter in sectors that accounted for more than 60% of the country's GDP last fiscal. There is fear that job cuts will hit aggregate demand, mainly the discretionary spending by consumers, which in turn may accelerate the slowdown in the economy.

India's economy is expected to grow at 7% or less in the year to March 2009 due to declining exports and moderating domestic consumption, compared with 9% or higher growth in the last three years.

The government has already announced two fiscal stimulus packages to boost demand. In the first stimulus package announced in December last year, the government cut excise duties by 4% across the board, besides effecting a hike in planned expenditure. In the second package unveiled last month, the government announced various measures to boost credit flow to the industry and hiked the rate of tax refunds to exporters paid under the popular Duty Entitlement Pass Book (DEPB) scheme to the November 2008 level.

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RBI governor confident of borrowing going smoothly

06 Feb 2009 | 15:11 RBI governor confident of borrowing going smoothly

The Reserve Bank of India (RBI) governor D Subbarao today, 6 February 2009, said the central bank will manage the government's borrowing programme smoothly. His comments sent bond prices surging.

Concerns over the government borrowing programme had pulled the bond prices sharply off the higher level that followed a solid surge triggered by the RBI's aggressive rate cuts since October 2008.

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RBI unveils measures to ease credit

06 Feb 2009 | 10:09 RBI unveils measures to ease credit

The Reserve Bank of India (RBI) on Thursday, 5 February 2009, announced measures to ease the credit situation. It has extended a forex swap facility for banks until the end of the 2009/10 fiscal year and raised the interest rate ceiling on foreign currency export credit to help ease credit constraints.

In another development, the central bank has given banks two more months, up to March 31, 2009, to reschedule repayments on loans to prevent them from being classified as bad loans. It has also clarified that the deadline will apply to the date on which the borrower makes an application to the bank for restructuring its loan. In December 2008, RBI allowed banks to recast those accounts which were standard accounts as on 1 September 2008.

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Chidambaram says interim budget may include tax changes

05 Feb 2009 | 15:06 Chidambaram says interim budget may include tax changes

Home Minister P Chidambaram today, 5 February 2009, said the interim budget may include some changes in the tax structure. The government will present an interim budget on 16 February 2009 before the parliament elections which are due by mid-May 2009.

The government has already announced two fiscal stimulus packages to boost demand

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Chidambaram says interim budget may include tax changes

05 Feb 2009 | 15:06 Chidambaram says interim budget may include tax changes

Home Minister P Chidambaram today, 5 February 2009, said the interim budget may include some changes in the tax structure. The government will present an interim budget on 16 February 2009 before the parliament elections which are due by mid-May 2009.

The government has already announced two fiscal stimulus packages to boost demand

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Inflation at 5.07%

05 Feb 2009 | 12:15 Inflation at 5.07%
The wholesale index for all commodities has declined by 0.2% for the week ended 24 January 2009 compared with last week. The annual rate of inflation stood at 5.07% for the week ended 24 January 2009 compared with 5.64% last week. It is the slowest annual rise since 9 February 2008 last year when inflation was at 4.98%.

Earlier, inflation had fallen to an 11-month low of 5.24% on week ended 3 January, but an eight-day nationwide truckers' strike that pushed up food prices caused the inflation to rise in the next two weeks.

Primary and manufactured products, which are holding major share in all commodities, recorded fall on week on week basis.

The index for primary articles declined to 249 during the week ended 24 January 2009 compared with 249.1 during the last week. However food articles have registered 0.2% growth on week on week basis due to higher prices of maize (3%), rice (2%) and ragi, milk, condiments & spices and moong (1% each). However, the prices of fruits & vegetables and bajra (2% each) and arhar and coffee (1% each) declined.

Another major index in primary article, nonfood index recorded 0.7% fall on week on week basis due lower prices of raw rubber (6%), copra (5%), groundnut seed (3%) and gingelly seed (1%). However, the prices of raw silk (2%) moved up.

Fuel, power index have marginally contributing to inflation with 0.6% growth on week on week basis.

Manufactured index with the highest weight in overall WPI recorded 0.5% fall during the week ended 24 January 2009 compared with last week. However index for food products recorded 2.5% growth on week on week basis, followed by 0.2% increased in Beverages Tobacco & Tobacco Products. Textile group has registered 0.1% fall on week on week basis.

During the week ended 24 January 2009 inflation dropped compared with last week. Manufactured and primary articles are two major contributors for this downtrend.

The inflation number made headlines last year after it hit double digits. However from August 2008 inflation number has been declining and from November 2008 we have seen single digit inflation number. The recent cut in fuel prices shall drive the inflation rate further lower in the coming weeks.

The Reserve Bank of India (RBI) has also indicated in its monetary policy review on 27 January 2009 that annual inflation is expected to be below 3% by the end of the 2008/09 fiscal year in March.

In short, single digit rally will be continue due to fall in commodity prices across the glob and we will see further downtrend in inflation number for coming months.

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Inflation at lowest level in nearly one year

05 Feb 2009 | 11:47 Inflation at lowest level in nearly one year

Inflation based on the wholesale price index rose 5.07% in 12 months to 24 January 2009, below the previous week's annual rise of 5.64%, data released by the government today, 5 February 2009, showed on Thursday. It was the slowest annual rise since 9 February 2008 when inflation was at 4.98%.

The Reserve Bank of India (RBI) said in its monetary policy review on 27 January 2009 it expected annual inflation to be below 3% by the end of the 2008/09 fiscal year in March 2009.

The recent cut in oil prices by the government would further help bring down inflation. The government on 28 January 2009 announced cut in the prices of petrol, diesel and LPG. Petrol prices were cut by Rs 5 per litre and diesel prices by Rs 2 a litre. LPG price was cut by Rs 25 per cylinder.

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Alstom Projects India leads gainers in 'A' group

25 Feb 2009 | 16:21 Alstom Projects India leads gainers in 'A' group

Alstom Projects India jumped 6.88% to Rs 277.45 and topped the gainers in BSE's A group. The stock had gained 25.30% to Rs 325.30 on 24 February 2009 from Rs 259.60 on 17 February 2009.

State-run oil marketing firm HPCL advanced 3.48% to Rs 299.25 and was the second biggest gainer in A group. Another state-run oil marketing firm BPCL spurted 3.16% to Rs 407.50 and was the fifth biggest gainer in A group.

Falling crude oil prices will help reduce under-recoveries for the state-run oil marketing firms on sale of fuel at controlled prices. They are currently making profit on sale of petrol and diesel, but continue to make losses on the sale of kerosene and liquefied petroleum gas.

Bajaj Holdings & Investment gained 3.31% to Rs 252.80. The scrip was the third biggest gainer in A group.

Oracle Financial Services Software flared up 3.24% to Rs 724.20. It was the fourth biggest gainer in A group. Oracle Financial Services Software during market hours on Tuesday, 24 February 2009 said Advanced Bank of Asia (ABA), Cambodia has implemented its banking software Oracle Flexcube across its corporate and retail banking operations.

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Cairn India rallies as crude soars

26 Feb 2009 | 09:57 Cairn India rallies as crude soars

Meanwhile, the BSE Sensex was down 53.27 points, or 0.60%, to 8,849.29.

On BSE, 4,326 shares were traded in the counter. The stock had an average daily volume of 8.63 lakh shares in the past one quarter.

The stock hit a high of Rs 164.10 and a low of Rs 161.30 so far during the day. The stock hit a 52-week high of Rs 342.50 on 21 May 2008 and a 52-week low of Rs 88.15 on 27 October 2008.

The large-cap stock had outperformed the market over the past one month till 24 February 2009, gaining 2.61% as compared to the Sensex's rise of 1.70%. It had also outperformed the market in the past one quarter, gaining 16.13% as compared to the Sensex's 0.91% fall.

The company's current equity is Rs 1896.67 crore. Face value per share is Rs 10.

The current price of Rs 164.10 discounts the company's Q4 December 2008 annualized EPS of Rs 0.95, by a PE multiple of 172.74.

A sharp rise in crude oil prices would result in higher realizations from crude sales for the oil exploration firm. US light, sweet crude for April 2009 delivery surged $2.54 or 6.36% to $42.51 a barrel on Wednesday, 25 February 2009 after US government data that showed a larger-than-expected drop in gasoline stocks.

As per recent reports, Cairn India got the Rajasthan government's nod for completion of the remaining part of its 600-kilometre-plus crude oil pipeline from Barmer fields in the state to Salaya in coastal Gujarat.

Earlier on 19 January 2009, Cairn had received government approval to develop three oil and gas discoveries in Kameshwari West and a new development area of 822 square kilometres in the northern appraisal area of Rajasthan blocks.

Cairn India on 22 December 2008 said it had made an oil and gas discovery near its existing field in Rajasthan. The company said the well had a flow of 500 barrels of oil per day and 0.4 million standard cubic feet of gas a day during a testing phase.

In November 2008, India's cabinet rejected an oil ministry proposal to award a deepwater block off the west coast to Cairn India, as the company had not offered the government an attractive enough share of potential production, or profit petroleum.

Cairn India reported a net profit of Rs 45.12 crore in Q4 December 2008 as compared to net loss of Rs 54.31 crore in Q4 December 2007. Total income surged 1555.1% to Rs 75.64 crore in Q4 December 2008 over Q4 December 2007.

Cairn India explores and produces crude oil and natural gas in India.

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Ranbaxy tumbles as US FDA says HP plant falsified data

26 Feb 2009 | 10:29 Ranbaxy tumbles as US FDA says HP plant falsified data

Meanwhile, the BSE Sensex was down 64.92 points, or 0.73%, to 8,838.20.

On BSE, 9.25 lakh shares were traded in the counter. The stock had an average daily volume of 4.73 lakh shares in the past one quarter.

The stock hit a high of Rs 204.70 and a low of Rs 176.20 so far during the day. The stock hit a 52-week high of Rs 613.70 on 19 June 2008 and a 52-week low of Rs 161.15 on 23 January 2009.

The large-cap stock had outperformed the market over the past one month till 25 February 2009, gaining 10.53% as compared to the Sensex's rise of 2.63%. However it underperformed the market in the past one quarter, rising 1.79% as compared to the Sensex's 2.38% rise.

The company's current equity is Rs 210.18 crore. Face value per share is Rs 5.

As per reports, an investigation by the US Food and Drug Administration (FDA) has found that Ranbaxy Laboratories had falsified data and test results of medicines manufactured at its Himachal Pradesh (HP) facility to obtain marketing approval in the United States. The FDA disclosure marks completion of the first phase of a probe it had begun soon after Japanese drug major Daiichi Sankyo entered into an agreement with Ranbaxy's promoters in June 2008 to acquire majority shares in the company for over $4 billion.

The FDA said the falsification happened in the case of both approved and pending drug applications. The US drug regulator had stopped all new approvals from the facility in Paonta Sahib, Himachal Pradesh, and had banned the sale of medicines produced from the facility in September 2008.

On 16 September 2008, the FDA had issued two warning letters and instituted an Import Alert barring the entry of all finished drug products and active pharmaceutical ingredients from Ranbaxy's Dewas, Paonta Sahib and Batamandi facilities, due to alleged violations of US current Good Manufacturing Practices requirements. That action barred the commercial importation of 30 different generic drugs into the United States and remains in effect.

Reports added the US FDA officials have not identified any health risks from Ranbaxy drugs on the market, but were continuing to investigate products associated with the plant.

Meanwhile Ranbaxy before market hours today, 26 February 2009 said it has received a letter from the US drug regulator and added it would continue to cooperate with the US FDA and respond appropriately in a timely manner.

Ranbaxy Laboratories reported a net loss of Rs 806.55 crore in Q4 December 2008 as against a net profit of Rs 48.40 crore in Q4 December 2007. Net sales fell 2% to Rs 1012.72 crore in Q4 December 2008 over Q4 December 2007.

Ranbaxy adopted a new accounting practice in the December 2008 quarter, which required it account for its forex options, resulting in a foreign exchange-related loss of Rs 784 crore.

Ranbaxy Laboratories is India's largest drug maker by sales. The company manufactures and markets, generic pharmaceuticals, value added generic pharmaceuticals, branded generics, active pharmaceuticals and intermediates.

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L&T builds on new orders

26 Feb 2009 | 10:30 L&T builds on new orders

The company announced the new orders before market hours today, 26 February 2009.

Meanwhile, the BSE Sensex was down 78.76 points, or 0.88%, to 8,823.80.

On BSE, 2.49 lakh shares were traded in the counter. The stock had an average daily volume of ten lakh shares in the past one quarter.

The stock hit a high of Rs 630 and a low of Rs 616 so far during the day. The stock hit a 52-week high of Rs 1847.50 on 29 February 2008 and a 52-week low of Rs 605.10 on 24 February 2009.

The large-cap stock had underperformed the market over the past one month till 25 February 2009, falling 4.43% as compared to the Sensex's rise of 2.63%. It had also underperformed the market in the past one quarter, declining 16.81% as compared to the Sensex's 2.38% rise.

The company's current equity is Rs 117.12 crore. Face value per share is Rs 2.

The current price of Rs 620.50 discounts the company's Q3 December 2008 annualized EPS of Rs 103.90, by a PE multiple of 5.97.

The company has bagged two orders aggregating to Rs 1162 crore. One of the two orders is valued at Rs 605 crore bagged from Andhra Pradesh Rajiv Swagruha Corporation for construction of a township comprising 3517 flats at Bachupally in Hyderabad. The project is to be executed within 24 months.

Another order is valued at Rs 557 crore bagged from two major players for the construction of cement plants and other strategic factory buildings.

L&T had on 24 February 2009 bagged three order aggregating to Rs 1438 crore.

Meanwhile, Larsen & Toubro (L&T), the largest shareholder in Satyam Computer Services with a 12% stake and seen as a leading contender to buy the firm, said on Wednesday it would stay invested in the fraud-hit outsourcer after it is sold. L&T chairman A M Naik on Wednesday said L&T would take a decision on whether to bid for Satyam after seeing the guidelines set by the board for expressions of interest. The Satyam board is meeting at its headquarters on Thursday, 26 February 2009, and is expected to finalize bidding guidelines.

Naik had said late last week that L&T was studying details of the Company Law Board (CLB) order on the bidding process for acquiring fraud hit IT firm Satyam Computer Services. Only after studying the details, L&T will take a decision, he had said.

The CLB after market hours on 19 February 2009 allowed the government-appointed board of Satyam to bring in a strategic investor through an open bidding process. For this purpose, the CLB also permitted the board to increase the authorized share capital and issue preferential shares.

L&T is a strong contender for acquiring Satyam after it raised its stake in the outsourcer to 12%. Other potential suitors for buying strategic stake in Satyam include Tech Mahindra, the Spice Group and the Hinduja Group. The Satyam board has been directed to devise a mechanism for transparent, open and competitive process without furthering the interest of any particular acquirer. This does not bode well for L&T.

L&T had acquired 4% in Satyam at Rs 174 per share before Satyam's founder B Ramalinga Raju admitted on 7 January 2009 of a Rs 7,000-crore accounting fraud at the IT firm. L&T later had to hike its stake in Satyam to 12% as the initial cost of investment in Satyam was at risk after the Satyam stock tumbled hit by Raju's confession of the fraud on 7 January 2009.

L&T's average acquisition price of around 12% stake in Satyam dipped to Rs 80 a share from the Rs 174, it paid earlier. But even the lower average price is much higher than the current ruling share of Rs 45 of Satyam.

L&T, India's biggest engineering and construction firm by revenue, reported a 215.6% surge in net profit to Rs 1520.44 crore on 34.9% rise in net sales to Rs 8615.59 crore in Q3 December 2008 over Q3 December 2007. The profit included an extraordinary gain of Rs 916.33 crore from sale ready-mix concrete business.

L&T's buildings and factories segment, a part of its construction division, bagged orders aggregating to Rs 1100 crore in the quarter ended December 2008.

The company manufactures a wide range of engineering products like earthmoving, industrial and chemical machinery, switchgears, valves and welding alloys.

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DLF grounded as IT department orders special audit of books of accounts

26 Feb 2009 | 10:59 DLF grounded as IT department orders special audit of books of accounts

Meanwhile, the BSE Sensex was down 89.16 points, or 1%, to 8,813.40.

On BSE, 13.61 lakh shares were traded in the counter. The scrip had an average daily volume of 61.69 lakh shares in the past one quarter.

The stock hit a high of Rs 153.20 and a low of Rs 146.20 so far during the day. The stock had a 52-week high of Rs 850 on 27 February 2008 and a 52-week low of Rs 124.15 on 4 February 2009.

The large-cap stock had underperformed the market over the past one month till 25 February 2009, declining 3.98% as compared to the Sensex's rise of 2.63%. It also underperformed the market in the past one quarter, falling 17.85% as compared to the Sensex's 2.38% rise.

India's largest realty firm by market capitalisation has an equity capital of Rs 340.54 crore. Face value per share is Rs 2.

The current price of Rs 147.20 discounts its Q3 December 2008 annualised EPS of Rs 4.18, by a PE multiple of 35.21.

Minister of State for Finance S.S. Palanimanickam on Wednesday, 24 February 2009 said a special audit under section 142(2A) of the I-T Act has been ordered in the case of Delhi Lease and Financing, now known as DLF, for the assessment year 2006-07. The Minister added the audit report is being examined during the scrutiny proceedings, for taking necessary action as laid down under the law.

The income-tax department can order a special audit of the accounts of a company or individual under Section 142 (2A) of the Income-Tax Act in the interest of revenue.

Meanwhile, DLF has reportedly slashed prices as much as 19% for its residential project in Chennai. The discounted prices for the Gardencity project at Old Mahabalipuram Road (OMR), Chennai will hold till 31 May 2009.

DLF reportedly sold Rs 720 crore of five-year bonds on Wednesday, 24 February 20009, carrying a coupon rate of 14% to Life Insurance Corporation of India.

DLF's net profit rose 70.6% to Rs 178.06 crore on a 74.7% rise in sales to Rs 424.41 crore in Q3 December 2008 over Q3 December 2007.

DLF develops residential, commercial and retail properties. In the residential realty space, the company builds and sells a wide range of properties including houses, duplexes and apartments of varying sizes, with focus on the higher end of the market.

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Matrix Lab gains on WHO approval for a generic drug

26 Feb 2009 | 11:17 Matrix Lab gains on WHO approval for a generic drug

The company made the announcement after market hours on Wednesday, 25 February 2009.

Meanwhile, the BSE Sensex was down 70.31 points, or 0.79%, to 8,832.25.

On BSE, 3,290 shares were traded in the counter. The stock had an average daily volume of 24,909 shares in the past one quarter.

The stock hit a high of Rs 92 and a low of Rs 88.85 so far during the day. The stock hit a 52-week high of Rs 203.60 on 16 May 2008 and a 52-week low of Rs 48 on 25 November 2008.

The mid-cap stock had outperformed the market over the past one month till 25 February 2009, gaining 16.80% as compared to the Sensex's rise of 2.63%. It had also outperformed the market in the past one quarter, rising 82% as compared to the Sensex's 2.38% rise.

The company's current equity is Rs 30.92 crore. Face value per share is Rs 2.

The current price of Rs 90.10 discounts the company's Q3 December 2008 annualized EPS of Rs 9.35, by a PE multiple of 9.64.

The company has received approval from World Health Organization (WHO) for lopinavir/ritonavir tablets. The company's version of this tablet is heat-stable and affordable to distribute and use in warm climates. The drug provides the first affordable protease inhibitor for patients in developing countries.

Lopinavir / Ritonavir tablets are the generic version of Abbott Laboratories' Kaletra tablet. The drug is used in combination with other medications to control human immunodeficiency virus (HIV) infections and is included in the antiretroviral (AVR) class of drugs known as HIV protease inhibitors.

Matrix Laboratories' net profit rose 5.2% to Rs 36.14 crore on 47.3% increase in net sales to Rs 396.13 crore in Q3 December 2008 over Q3 December 2007.

The company manufactures and sells active pharmaceutical ingredients and intermediates. Its products are used in anti-bacterial, anti-fungal, CNS, gastrointestinal, anti-retroviral, anti-virals, anti-depressant and cardiovascular segments.

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Petron Engineering surges on new order win

26 Feb 2009 | 11:40 Petron Engineering surges on new order win

The company announced the new order win during trading hours today, 26 February 2009.

Meanwhile, the BSE Sensex was down 65.17 points, or 0.73%, to 8,837.39.

On BSE, 45 shares were traded in the counter. The stock had an average daily volume of 1,308 shares in the past one quarter.

The stock hit a high of Rs 69.40 and a low of Rs 69 so far during the day. The stock hit a 52-week high of Rs 307.85 on 28 February 2008 and a 52-week low of Rs 62.25 on 16 January 2009.

The small-cap stock had underperformed the market over the past one month till 25 February 2009, falling 2.12% as compared to the Sensex's rise of 2.63%. It had also underperformed the market in the past one quarter, declining 25.80% as compared to the Sensex's 2.38% rise.

The company's current equity is Rs 7.54 crore. Face value per share is Rs 10.

The current price of Rs 69.40 discounts the company's Q3 December 2008 annualized EPS of Rs 6.30, by a PE multiple of 11.02.

The company has secured two orders aggregating to Rs 72.55 crore from HPCL-Mittal Energy (HMEL) for setting up diesel hydro-treating (DHDT) heater package and NHT CRR heater package for its Guru Gobind Singh refinery project at Bathinda in Punjab.

The company had on 27 January 2009 secured an order worth Rs 9.78 crore from Vedanta Aluminium for 57 cranes & hoists for its expansion aluminium smelter plant at Jharsuguda, Orissa.

Petron Engineering Construction's net profit rose 8.2% to Rs 1.19 crore on 83.8% increase in net sales to Rs 119.14 crore in Q3 December 2008 over Q3 December 2007.

Petron Engineering Construction offers total solutions in engineering construction, with feasibility study, estimation, procurement and managerial and administrative support for project construction. The company provides services in mechanical, erection, piping, electrical, instrumentation, painting, refractory & insulation work for refineries and other industrial plants.

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Buzz of stake at substantial premium boosts Piramal Healthcare

26 Feb 2009 | 11:42 Buzz of stake at substantial premium boosts Piramal Healthcare

Meanwhile, the BSE Sensex was down 71.47 points, or 0.80%, to 8829.99.

On BSE, 4.10 lakh shares were traded in the counter. The scrip had an average daily volume of 63655 shares in the past one quarter.

The stock hit a high of Rs 219 and a low of Rs 185.20 so far during the day. The stock had a 52-week high of Rs 388.70 on 6 June 2008 and a 52-week low of Rs 163.75 on 19 February 2009.

The stock had underperformed the market over the past one month till 25 February 2009, sliding 16.89% as compared to the Sensex's rise of 2.63%. It also underperformed the market in the past one quarter, declining 13.38% as compared to the Sensex's 2.38% rise.

The mid-cap drug maker has an equity capital of Rs 41.80 crore. Face value per share is Rs 2.

The current price of Rs 202.90 discounts its Q3 December 2008 annualised EPS of Rs 7.40, by a PE multiple of 27.41.

As per reports, Sanofi-Aventis has completed due diligence and the deal could be closed soon. If the deal goes through, it would be Sanofi's second acquisition of a generic company in less than a year. In September 2008, Sanofi outbid a rival suitor to buy Czech generic drugmaker Zentiva for $2.6 billion. In India, Sanofi-Aventis operates through two entities, Aventis Pharma and Sanofi-Synthelabo (India).

Earlier, Piramal Healthcare had denied media reports which had indicated that UK's GlaxoSmithKline Plc and Sanofi-Aventis were in talks with the company for acquiring the firm terming it as 'totally unfounded'.

Promoters hold 49.57% stake in Piramal Healthcare as at end December 2008.

Piramal Healthcare's net profit fell 47.6% to Rs 38.67 crore on a 21.3% rise in sales to Rs 580.46 crore in Q3 December 2008 over Q3 December 2007.

Piramal Healthcare (formerly Nicholas Piramal) is one of the leading pharmaceutical contract-manufacturing firms in the world. A significant part of Piramal Healthcare's revenue comes from its contract manufacturing services (custom manufacturing), followed by healthcare solutions and diagnostics.

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Seamec extends rally on turnaround Q4 results

26 Feb 2009 | 12:01 Seamec extends rally on turnaround Q4 results

The stock had jumped 20% to Rs 47.75 on Wednesday, 25 February 2009 on the back of blockbuster earnings announced by the company after trading hours on Tuesday, 24 February 2009.

Meanwhile, the BSE Sensex was down 72.52 points, or 0.82%, to 8,829.41.

On BSE, 2.20 lakh shares were traded in the counter. The stock had an average daily volume of 8,444 shares in the past one quarter.

The stock hit a high of Rs 54.60 and a low of Rs 50.40 so far during the day. The stock hit a 52-week high of Rs 181 on 23 April 2008 and a 52-week low of Rs 30.20 on 27 October 2008.

The small-cap stock outperformed the market over the past one month till 25 February 2009, advancing 23.54% as compared to the Sensex's rise of 2.63%. It also outperformed the market in the past one quarter, surging 32.09% as compared to the Sensex's 2.38% rise.

The company's current equity is Rs 33.90 crore. Face value per share is Rs 10.

The current price of Rs 52.50 discounts the company's Q4 December 2008 annualized EPS of Rs 64.39, by a PE multiple of 0.81.

The company's net sales surged 368.80% to Rs 104.41 crore in Q4 December 2008 over Q4 December 2007.

During the quarter ended December 2008, all the four vessels owned by the company were in operation boosting profits, as compared to two vessels in the corresponding period in the previous year. This helped the company report turnaround results.

Seamec's net profit rose 27.2% to Rs 47.12 crore on 57.6% increase in the net sales to Rs 268.59 crore in the year ended December 2008 over the year ended December 2007.

Seamec provides support services including marine, construction and diving services to offshore oilfields in India and abroad.

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Strides Arcolab spurts on healthy FY 2008 results

26 Feb 2009 | 12:27 Strides Arcolab spurts on healthy FY 2008 results

Meanwhile, the BSE Sensex was down 92.66 points, or 1.04%, to 8,809.90.

On BSE, 2.18 lakh shares were traded in the counter. The stock had an average daily volume of 26,446 shares in the past one quarter.

The stock hit a high of Rs 78 and a low of Rs 71 so far during the day. The stock hit a 52-week high of Rs 216.50 on 7 May 2008 and a 52-week low of Rs 62.35 on 16 February 2009.

The small-cap stock had underperformed the market over the past one month till 25 February 2009, falling 7.31% as compared to the Sensex's rise of 2.63%. It had also underperformed the market in the past one quarter, declining 32.60% as compared to the Sensex's 2.38% rise.

The company's current equity is Rs 40.05 crore. Face value per share is Rs 10.

The company's total income rose 53.49% to Rs 661.91 crore in the year ended December 2008 over the year ended December 2007. The company announced the results before market hours today, 26 February 2009.

On a consolidated basis, the company reported a net profit of Rs 104.09 crore in the year ended December 2008 as compared to net loss of Rs 51.65 crore in the year ended December 2007. Net sales rose 47.91% to Rs 1126.37 crore in the year ended December 2008 over the year ended December 2007.

The company has incurred a foreign exchange loss of Rs 184.19 crore for the year ended December 2008. However, the company booked gains on restatement of hedged investments of Rs 92.34 crore and it also gained Rs 45.22 crore as changed in fair value of foreign currency convertible bonds (FCCBs).

Strides Arcolab had in January 2009 received approval from US Food & Drug Administration (US FDA) for two more sterile products, taking the total product approvals to 14. The products are licensed to Akorn-Strides LLC, a joint venture between the company and Akorn Inc.

The company manufactures ethical pharmaceutical products, over the counter (OTC) products and nutraceuticals. It performs its activities through two segments, pharma and contract research and manufacturing (CRAM).

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New orders electrify KEC International

26 Feb 2009 | 12:59 New orders electrify KEC International

The company announced the order win during trading hours today, 26 February 2009.

Meanwhile, the BSE Sensex was down 96.71 points, or 1.09%, to 8,805.85.

On BSE, 21,210 shares were traded in the counter. The stock had an average daily volume of 25,085 shares in the past one quarter.

The stock hit a high of Rs 133.80 and a low of Rs 127 so far during the day. The stock hit a 52-week high of Rs 813.90 on 10 March 2008 and a 52-week low of Rs 108.65 on 10 December 2008.

The small-cap stock had underperformed the market over the past one month till 25 February 2009, declining 21.35% as compared to the Sensex's rise of 2.63%. It had also underperformed the market in the past one quarter, rising 0.35% as compared to the Sensex's 2.38% rise.

The company's current equity is Rs 49.34 crore. Face value per share is Rs 10.

The current price of Rs 130 discounts the company's Q3 December 2008 annualized EPS of Rs 20.24, by a PE multiple of 6.22.

The company has bagged two orders worth Rs 227 crore from Power Grid Corporation of India. One of the two orders is valued at Rs 124 crore for supply and construction of 765-kilovolt (KV) transmission line in Madhya Pradesh and Maharashtra. The project is to be executed by February 2011.

Another order is valued at Rs 103 crore secured for supply and construction of 765- KV transmission line in Punjab and Haryana. The project is to be executed by May 2011.

The company had on 18 February 2009 bagged three orders aggregating to Rs 365 crore from three different suppliers for rural electrification and transmission projects.

The company had in December 2008 bagged an export order worth Rs 636 crore from Egyptian Electricity Transmission Company for supply and construction of 500-KV circuit lines. The project is to be executed within 24 months.

KEC International's net profit fell 52.3% to Rs 24.97 crore on 25% increase in net sales to Rs 886.31 crore in Q3 December 2008 over Q3 December 2008.

KEC International, a RPG group company, is one of the largest power transmission engineering, procurement and construction (EPC).

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Bank shares slide

26 Feb 2009 | 13:33 Bank shares slide

The BSE's banking sector index Bankex lost 2.95% to 4,150.85, underperforming the the BSE Sensex's 0.74% fall to 8,836.44.

HDFC Bank (down 1.52%), ICICI Bank (down 5.52%), State Bank of India (down 0.80%), Axis Bank (down 4.35%), Kotak Mahindra Bank (down 1.74%), Indian Overseas Bank (down 1.38%), Bank of Baroda (down 2.14%), and Bank of India (down 1.50%), declined.

Bank credit showed a seesaw growth as per the latest data put out by the Reserve Bank of India (RBI) on Wednesday, 25 February 2009 evening. Credit offtake was slower at Rs 26.46 lakh crore and the CASA (current account and savings account) shrunk by Rs 4,969 crore in the fortnight ended 13 February 2009 over the past fortnight.

However bank credit grew by Rs 10,000 crore during the fortnight ended 13 February 2009, from a decline by Rs 8,000 crore in the previous fortnight ended 30 January 2009.

Inflation based on the wholesale price index rose at a 15-month low pace of 3.36% for the year through 14 February 2009, much lower than previous week's annual rise of 3.92%, data released by the government today, 26 February 2009, showed.

In stark contrast to a solid surge in 2008, inflation has been declining sharply in the calendar year 2009. The market has been agog with expectations of rate cut by the Reserve Bank of India (RBI). The sharp fall in inflation has provided room for the RBI to cut interest rates further to support faltering economic growth.

As per reports, RBI governor D Subbarao will meet select heads of banks on Friday, 27 February 2009 evening to hold discussions on issues like credit flow and liquidity conditions.

Despite a steep cut in policy rates in India since October 2008, there has not been a commensurate reduction in lending rates by banks as fears of rising bad loans have made banks cautious in increasing advances.

Bank shares rose saw a mild rally on Wednesday, 25 February 2009 as customers are likely to see reduction in charges for credit card, loan processing and foreign exchange among others because of a 2% service tax cut announced by the government on Tuesday, 24 February 2009. HDFC Bank (up 1.15%), ICICI Bank (up 1.38%), State Bank of India (up 0.86%), gained.

Gains on Wednesday, 25 February 2009 came despite global ratings agency Standard & Poor's Ratings Services revising the credit ratings of 12 Indian banks to negative from stable following its earlier downgrade of India's sovereign rating. The twelve banks in their list are Axis Bank, Bank of Baroda, Bank of India, Canara Bank, HDFC Bank, ICICI Bank, IDBI Bank, Indian Overseas Bank, Indian Bank, State Bank of India, Syndicate Bank, and Union Bank of India.

In its downgrade of India's sovereign rating, S&P said the country's fiscal position has deteriorated to a level that is unsustainable in the medium term.

Also the recent rise in bond prices is likely to hit bank's treasury profits in the January- March 2009 quarter.

The BSE Bankex underperformed the market over the past one month till 25 February 2009, declining 4.63% as compared to the Sensex's rise of 2.63%. It also underperformed the market in the past one quarter, falling 2.02% as compared to the Sensex's 2.38% rise.

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Avantel hardens on buyback plan

26 Feb 2009 | 13:34 Avantel hardens on buyback plan

The company announced the board meet during trading hours today, 26 February 2009.

Meanwhile, the BSE Sensex was down 49.61 points, or 0.56%, to 8,852.95.

On BSE, 2,461 shares were traded in the counter. The stock had an average daily volume of 2,564 shares in the past one quarter.

The stock hit a high of Rs 37.20 and a low of Rs 37.20 so far during the day. The stock hit a 52-week high of Rs 84.80 on 30 April 2008 and a 52-week low of Rs 23 on 28 October 2008.

The small-cap stock had outperformed the market over the past one month till 25 February 2009, gaining 18.56% as compared to the Sensex's rise of 2.63%. It had also outperformed the market in the past one quarter, rising 40.67% as compared to the Sensex's 2.38% rise.

The company's current equity is Rs 5.15 crore. Face value per share is Rs 10.

The current price of Rs 37.20 discounts the company's Q3 December 2008 annualized EPS of Rs 1.17, by a PE multiple of 31.79.

The company had in 20 February 2009 bagged an order worth Rs 6.85 crore from the ministry of Defence, Government of India for supply of satellite communication products to coast guards.

Avantel's net profit declined 85.29% to Rs 0.15 crore on 4.45% fall in net sales to Rs 6.66 crore in Q3 December 2008 over Q2 September 2008.

The company is engaged in designing, developing and manufacturing components needed by the wireless industry.

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Malco hits the roof on delisting plan

26 Feb 2009 | 13:37 Malco hits the roof on delisting plan

Meanwhile, the BSE Sensex was down 39.87 points, or 0.47%, to 8,860.64

On BSE, 67250 shares were traded in the counter with pending buy orders of 1.48 lakh shares at maximum limit. The stock had an average daily volume of 24388 shares in the past one quarter.

The stock hit a high of Rs 94.95 and a low of Rs 93.90 so far during day. The stock hit a 52-week high of Rs 224.80 on 10 September 2008 and a 52-week low of Rs 34.55 on 24 November 2008.

The small-cap stock outperformed the market over the past one month till 25 February 2009, gaining 32.14% as compared to the Sensex's rise of 2.63%. It also outperformed the market in the past one quarter, advancing 130.45% as compared to the Sensex's 2.38% rise.

The company's current equity is Rs 22.50 crore. Face value per share is Rs 2.

ICICI Securities, manager of the issue in a newpaper announcement today, 26 February 2009, said Twinstar Holdings, the promoter, has approved a price not exceeding Rs 105 per share for the delisting offer. Twinstar Holdings, a part of Vedanta Resources Inc, owns 80% of stake in Madras Aluminium Company (Malco). The reverse book building offer will open on 17 March 2009 and close 20 March 2009. The floor price for the reverse book-building offer has been set at Rs 74.77 per share.

On 20 January 2009, Vedanta Resources offered to buy out the remaining 20% stake in Malco as per the Securities & Exchange Board of India (delisting of securities) Guidelines, 2003.

Malco reported a net loss of Rs 7.13 crore in Q3 December 2008 as compared to a net profit of Rs 14.71 crore in Q3 December 2007. Net sales rose 6.8% to Rs 117.48 crore in Q3 December 2008 over Q3 December 2007.

The company is engaged in the business of primary aluminum production.

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New orders fuel Everest Kanto Cylinder

26 Feb 2009 | 14:12 New orders fuel Everest Kanto Cylinder

The company announced the orders during trading hours today, 26 February 2009.

Meanwhile, the BSE Sensex was down 37.02 points, or 0.42%, to 8,865.54.

On BSE, 1.64 lakh shares were traded in the counter. The stock had an average daily volume of 74,012 shares in the past one quarter.

The stock hit a high of Rs 101 and a low of Rs 95.90 so far during the day. The stock hit a 52-week high of Rs 356 on 2 May 2008 and a 52-week low of Rs 89.50 on 25 February 2009.

The small-cap stock had underperformed the market over the past one month till 25 February 2009, declining 29.80% as compared to the Sensex's rise of 2.63%. It had also underperformed the market in the past one quarter, declining 31.43% as compared to the Sensex's 2.38% rise.

The company's current equity is Rs 5.15 crore. Face value per share is Rs 10.

The current price of Rs 99.60 discounts the company's Q3 December 2008 annualized EPS of Rs 3.25, by a PE multiple of 30.65.

US based Cp Industries Holdings, Inc. a step down wholly owned subsidiary of Everest Kanto Cylinder has received orders aggregating to $5.8 million from National Oilwell Varco, Rig Solutions Group. In addition, it also received an order worth $7.2 million for supply of large pressure vessels.

Everest Kanto Cylinder's net profit fell 47.9% to Rs 8.23 crore on 0.7% increase in net sales to Rs 81.18 crore in Q3 December 2008 over Q3 December 2007.

Everest Kanto Cylinder is engaged in manufacturing high-pressure gas cylinders with the higher water capacity.

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MphasiS gallops ahead of Q1 results

26 Feb 2009 | 14:36 MphasiS gallops ahead of Q1 results

The block deal constituted 0.24% of the company's equity.

Meanwhile, the BSE Sensex was down 34.07 points, or 0.38%, to 8,868.49.

On BSE, 6.27 lakh shares were traded in the counter. The stock had an average daily volume of 67,244 shares in the past one quarter.

The stock hit a high of Rs 172.35 and a low of Rs 160.20 so far during the day. The stock hit a 52-week high of Rs 256 on 13 May 2008 and a 52-week low of Rs 119.40 on 10 October 2008.

The stock is up 14.75% from a recent low of Rs 149.80 on 20 February 2009.

The mid-cap stock had outperformed the market over the past one month till 25 February 2009, gaining 6.67% as compared to the Sensex's rise of 2.63%. It had also outperformed the market in the past one quarter, gaining 4.17% as compared to the Sensex's 2.38% rise.

The company's current equity is Rs 208.98 crore. Face value per share is Rs 10.

The current price of Rs 171.90 discounts the company's Q2 September 2008 annualized EPS of Rs 21.58, by a PE multiple of 30.65.

MphasiS' net profit surged 44.56% to Rs 112.70 crore on 14.80% increase in net sales to Rs 639 crore in Q2 September 2008 over Q1 June 2008.

On 26 November 2008, MphasiS announced its results for a period of one month ended 31 October 2008, as it decided to change the accounting year from April-March to November-October with effect from 1 November 2008 to align its financial with parent Hewlett Packard. MphasiS will declare Q1 January 2009 results tomorrow, 27 February 2009

The company provides application services, business process outsourcing (BPO) services and infrastructure technology outsourcing (ITO) services.

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IT stocks reboot as rupee tumbles

26 Feb 2009 | 14:46 IT stocks reboot as rupee tumbles

The BSE Sensex was down 0.08% to 8,895.26

Shares of top four software pivotals saw mixed trend. TCS (up 1.71%), and Infosys Technologies (up 1.39%), gained. However, Wipro (down 1.26%) and HCL Technologies (down 1.24%), fell.

Among other IT shares, Oracle Financial Solutions Services (up 3.37%), MphasiS (up 6.47%), Satyam Computer Services (up 1.33%), Patni Computers (up 0.85%), edged higher.

The Indian rupee tumbled against the dollar as higher oil prices spurred demand for dollars from importers, while mixed Asian shares offered little comfort. The partially convertible rupee fell to a 3-month low to 50.26 per dollar, weaker than Wednesday's close of 49.96/97. The rupee had hit a life-time low of 50.65 against the US dollar on 2 December 2008.

A weak rupee boosts revenues of IT firms in rupee terms as IT companies earn a lion's share of revenue from exports.

The BSE IT index had underperformed the market over the past one month till 25 February 2009, rising 0.86% as compared to the Sensex's rise of 2.63%. It also underperformed the market in the past one quarter, falling 14.20% as compared to the Sensex's 2.38% rise.

The underperformance was due to concerns of cut back in technology spend by global firms amid a recession in the US economy and due to the global financial sector crisis. IT firms derive a lion's share of revenue from exports to US.

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PSU OMCs slide as oil boils

26 Feb 2009 | 15:28 PSU OMCs slide as oil boils

Hindustan Petroleum Corporation (down 3.62%), Indian Oil Corporation (down 2.53%), and Bharat Petroleum Corporation (down 4.45%), declined.

US light, sweet crude for April 2009 delivery surged $2.54 or 6.36% to $42.51 a barrel on Wednesday, 25 February 2009 after US government data that showed a larger-than-expected drop in gasoline stocks.

State-run oil marketing firms suffer under-recoveries on domestic sale of petroleum products.

As per report, retail prices of diesel may go down further by Rs 2 a litre soon as the government looks to hike its goodwill quotient among voters before the code of conduct kicks in for the general elections slated for April-May 2009.

However oil ministry is not in favour of reducing prices any more as public sector oil marketing companies (OMCs) are still losing money on the sale of subsidised kerosene and cooking gas.

Oil firms have started making money on the sale of petrol and diesel. As on 18 February 2009, OMCs were earning a profit of 3 paise per litre of petrol and Rs 4.45 per litre of diesel. However, they were losing Rs 11.25 a litre on the sale of kerosene (sold through fair price shops) and Rs 74.53 on every cylinder of cooking gas.

The government slashed fuel prices twice since December 2008. Petrol retail price went down by Rs 5 a litre, diesel by Rs 2 a litre and cooking gas by Rs 25 on a 14.2-kg cylinder on 28 January 2008. In December 2008, prices of petrol and diesel were reduced by Rs 5 a litre and Rs 2 a litre, respectively.

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Tata Motors speeds up ahead of Nano launch

26 Feb 2009 | 16:00 Tata Motors speeds up ahead of Nano launch

The company unveiled the launch date during trading hours today, 26 February 2009.

Meanwhile, the BSE Sensex was up 52.30 points, or 0.59%, to 8,954.86.

On BSE, 21.67 lakh shares were traded in the counter. The stock had an average daily volume of 6.37 lakh shares in the past one quarter.

The stock hit a high of Rs 151.70 and a low of Rs 138.60 so far during the day. The stock hit a 52-week high of Rs 742.79 on 22 May 2008 and a 52-week low of Rs 122 on 20 November 2008.

The mid-cap stock had outperformed the market over the past one month till 25 February 2009, gaining 3.52% as compared to the Sensex's rise of 2.63%. It had also outperformed the market in the past one quarter, gaining 2.98% as compared to the Sensex's 2.38% rise.

The company's current equity is Rs 514.29 crore. Face value per share is Rs 10.

The company today said it is launching its Rs 1-lakh car Nano on 23 March 2009. Nano will be on display at the Tata Motors dealerships from first week of April 2009 and bookings would start from second week of April 2009.

The car was to be originally launched in October 2008 but was delayed due to the protests from farmers in West Bengal. The company eventually shifted its base to Sanand in Gujarat.

Meanwhile, Tata Motors on 25 February 2009 announced the launch of Xenon XT (Cross Terrain), life style 4 doors and 5-seater pickup.

The company reportedly cut commercial vehicle prices by 2% after the Union government announced a 2% cut in excise duty on Tuesday, 24 February 2009. Finance Minister Pranab Mukherjee on Tuesday, 24 February 2009 announced a 2% reduction in excise duty on items which attracted 10% duty. Mukherjee added a 4% across-the-board cut in excise duty will continue beyond 31 March 2009, in his reply to a debate on the interim budget for 2009-2010 in parliament.

Tata Motors on 5 February 2009 clarified on media reports about huge outstanding to vendors stating that the three-quarters of its purchases from vendors have been paid through an arrangement with banks. Tata Motors makes payment to its vendors through a tripartite agreement between the company, banks and vendors, known as the Bill Marketing Scheme. Under this scheme, the bank pays the vendor for purchases by Tata Motors and the company pays the banks after some time.

Tata Motors' total vehicle sales declined 33% to 36,931 units in January 2009 over January 2008.

Last month, the British government guaranteed up to 2.3 billion pounds of loans to help the ailing auto firms in the UK, which also includes Jaguar and Land Rover, the British brands now under the fold of Tata Motors.

Tata Motors reported a net loss of Rs 263.26 crore in Q3 December 2008 as compared to net profit of Rs 499.05 in Q3 December 2007. Net sales fell 34.4% to Rs 4758.62 crore in Q3 December 2008 over Q3 December 2007.

The company said that the net loss included a notional foreign exchange loss of Rs 226.52 crore on account of revaluation of foreign currency borrowings, deposits and loans given. In Q3 December 2007, the company had a foreign exchange gain of Rs 27.50 crore.

Tata Motors is engaged in manufacturing and marketing heavy, medium and light commercial vehicles, utility vehicles and passenger cars.

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Piramal Healthcare leads gainers in 'A' group

26 Feb 2009 | 16:17 Piramal Healthcare leads gainers in 'A' group

Piramal Healthcare galloped 16.93% to Rs 208.90 on reports French drug major Sanofi-Aventis has emerged as the front-runner to buy a stake in the company at substantial premium over the company's ruling share price. It topped the gainers in BSE's A group. However the company in denied such reports clarifying that the promoter has no intention to dilute current ownership levels.

Bhushan Steel advanced 9.36% to Rs 310.80, extending yesterday's (25 February 2009) 2.36% rise on reports steel firms would soon pass on the benefit of a 2% cut in excise duty announced by government on Tuesday, 24 February 2009, which may boost demand for the commodity. It was the second biggest gainer in A group.

UltraTech Cement Company gained 8.36% to Rs 475.55, extending yesterday's 4.01% surge on reports cement prices are likely to drop by Rs 4 to Rs 5 per 50-kilogram bag which may boost demand for the commodity after the rate of central excise on bulk cement was cut from 10% or Rs 290 per metric tonne (PMT) whichever is higher, to 8% or Rs 230 PMT whichever is higher Tuesday, 24 February 2009. The scrip was the third biggest gainer in A group.

MphasiS flared up 7.31% to Rs 171.70. It was the fourth biggest gainer in A group. A block deal of 4.99 lakh shares or 0.24% equity stake of the company was executed on BSE at Rs 170 per share. The company announces its Q1 January 2009 results tomorrow, 27 February 2009

Tata Motors spurted 7.26% to Rs 150 and after the company said it will launch its Rs 1-lakh car Nano on 23 March 2009. It was the fifth biggest gainer in A group. The Nano will be on display at the Tata Motors dealerships from first week of April 2009 and bookings would start from second week of April 2009. The company made this announcement during trading hours today, 26 February 2009.

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Market Voices - Last trading day: Thursday, 26 February

Running commentary of the markets will resume when they open on Friday, 27 February
Last trading day: Thursday, 26 February

4:00 PM - The Asian markets closed in the negative while European markets were trading positive. The Indian market saw a pullback rally and closed at the high point of the day on F&O expiry today. Sensex shut shop at 8954, up 52 points and Nifty at 2785, up 23 points from the previous close. CNX Midcap index was down 0.75% and BSE Smallcap index was down 0.70%. The market breadth was negative with advances at 439 against declines of 712 on the NSE. Top Nifty gainers included Tata Motors, Grasim and Maruti Suzuki while losers included Ranbaxy, PNB and ICICI Bank. 

3:55 PM - Accumulate RIL, Bharati Airtel and Infosys on dips in the portfolio for the long term for good returns, says Salil Sharma of Kapoor & Sharma Company, on Zee Business. 

3:50 PM - Royal Bank of Scotland (RBS) posts net loss of UK pounds 24.1 billion for 2008, reports NDTV Profit. RBS to have access to government protection scheme and to shift about UK pounds 240 billion of funded assets to non-core division. The year 2009 will be very tough year for the world economy. 

3:45 PM - Buy Tata Motors as the Nano launch to be a positive trigger that is likely to take the stock higher to Rs 160-165, says Ambareesh Baliga of Karvy Stock Broking on CNBC Awaaz. The stock is currently trading at Rs 150, up 7.7% on the BSE. 

3:39 PM - Hold Tata Motors for the long term as the worse seems to be over and the stock is fundamentally good, says Hormuz Maloo, technical analyst with Geojit Financial Services, on CNBC Awaaz. The stock is currently trading at Rs 150, up 7.7% on the BSE. 

3:32 PM - It was a good close for the market on F&O expiry day today. Sensex closed at 8967, up 64 points (provisional) and Nifty at 2789, up 27 points (provisional) from the previous close. CNX Midcap index was down 0.75% and BSE Smallcap index was down 0.69%. The market breadth was negative with advances at 447 against declines of 714 on the NSE. 

3:27 PM - Book profits at higher levels and go long if Nifty sustains 2850-2880, says E Mathew, technical analyst, on CNBC-TV18, as closing market strategy. 

3:24 PM - Book partial profits in Nifty long positions with a target of 2857 and stop loss of 2730, says Anil Maghnani, technical analyst, on CNBC-TV18, as closing market strategy. 

3:20 PM - The global picture is going to get a lot worse before it gets any better, says Barry Ritholtz of Fusion IQ, on NDTV Profit. We are likely to see more foreclosures and more layoffs going forward, he adds. 

3:15 PM - Sell Rolta with a target of Rs 72 and stop loss of Rs 92, says Nishant Jain of Tradeswift, on CNBC Awaaz. The stock is currently trading at Rs 89, up 1.53% on the BSE. 

3:09 PM - If Nifty breaks 2700 then the next level is 2630, says Deven Choksey of KR Choksey, on Zee Business. Nifty is likely to be in the 2630-2820 range for a few days before a decisive move is made, he adds. 

3:02 PM - The market is seeing a short covering rally and trading in the positive. Sensex is trading at 8932, up 29 points and Nifty is at 2779, up 17 points from the previous close. CNX Midcap index is down 0.69% and BSE Smallcap index is down 0.61%. The market breadth is negative with advances at 435 against declines of 702 on the NSE. 

2:56 PM - Hold Akruti City which has resistance at Rs 1150-1155 where one can exit the stock, says Vijay Bhambwani, technical analyst, on CNBC TV18. The stock is currently trading at Rs 962, down 10.8% on the BSE. 

2:51 PM - Buy Cairn India with a target of Rs 180 and stop loss of Rs 147, says Nishant Jain of Tradeswift, on CNBC Awaaz. The stock is currently trading at Rs 162, up 1.25% on the BSE. 

2:43 PM - Buy Forbes and Company around Rs 310 with a short-term target of Rs 410 and a 12-month target of Rs 550, says Vijay Bhambwani, technical analyst, on CNBC TV18. The stock is currently trading at Rs 327, down 2.4% on the BSE. 

2:36 PM - Sell HPCL with a target of Rs 255 and stop loss of Rs 300, says Nishant Jain of Tradeswift, on CNBC Awaaz. The stock is currently trading at Rs 276, down 3.2% on the BSE. 

2:29 PM - HEM Securities maintains a sell call on Reliance Capital with a target of Rs 332 and stop loss of Rs 380, reports CNBC Awaaz. The stock is currently trading at Rs 369, down 2.94% on the BSE. 

2:20 PM - Buy SBI with a target of Rs 1110 and stop loss of Rs 850, says Nishant Jain of Tradeswift, on CNBC Awaaz. The stock is currently trading at Rs 1028, down 0.92% on the BSE. 

2:11 PM - Hold Axis Bank which has resistance at Rs 400-425 where one can exit the stock, says Vijay Bhambwani, technical analyst, on CNBC TV18. The short and medium term trends for banking stocks is down and they will continue to be under pressure, he adds. The stock is currently trading at Rs 352, down 3.8% on the BSE. 

2:01 PM - The market continues to be under pressure. Sensex is trading at 8875, down 26 points and Nifty is at 2755, down 6 points from the previous close. CNX Midcap index is down 0.67% and BSE Smallcap index is down 0.75%. The market breadth is negative with advances at 399 against declines of 713 on the NSE. 

1:52 PM - Hold JP Associates for the long-term for excellent returns as the fundamentals of the company are very sound, says Rajesh Tambe, technical analyst, on Zee Business. The stock is currently trading at Rs 66, down 1.19% on the BSE. 

1:44 PM - Hold InfoEdge with a target of Rs 460-500 in the long term, says PK Agarwal, market expert, on CNBC Awaaz. The stock is currently trading at Rs 451 on the BSE. 

1:36 PM - Buy Shree Renuka Sugars above Rs 81 with a target of Rs 93-94 and stop loss of Rs 76, says Rajat Bose, technical analyst, on CNBC TV18. The stock is currently trading at Rs 80, up 3.6% on the BSE. 

1:28 PM - Hold Rolta with a target of Rs 95-101 after which it can see a fresh upmove to Rs 135, says Simi Bhaumik, technical analyst, on Zee Business. Buy the stock on dips at around Rs 75 for the long term and maintain a stop loss of Rs 72, she adds. The stock is currently trading at Rs 85, down 2.5% on the BSE. 

1:18 PM - The market is likely to see a big downside in March, says Mitesh Thacker, technical analyst, on CNBC TV18. If Nifty breaks the crucial support of 2650 then market could head lower, he adds. 

1:12 PM - The Asian markets are trading in the negative. The Indian market is seeing a weak session. Sensex is trading at 8826, down 76 points and Nifty is at 2740, down 22 points from the previous close. CNX Midcap index is down 0.69% and BSE Smallcap index is down 0.69%. The market breadth is negative with advances at 359 against declines of 725 on the NSE. 

1:04 PM - Tata Motors to launch the Nano on March 23, reports NDTV Profit. Booking for the Nano to begin from the second week of April. Tata Motors is currently trading at Rs 144, up 3.14% on the BSE. 

12:59 PM - Buy metal stocks but on declines of 15-20% from current levels, says Vibhav Kapoor of IL&FS on CNBC TV18. 

12:52 PM - Hold Unitech with stop loss of Rs 21, says Mandar Jamsandekar, technical analyst, on NDTV Profit. It has support at Rs 26 and 22 and resistance at Rs 33 and then Rs 50, he adds. The stock is currently trading at Rs 27.90, down 0.7% on the BSE. 

12:46 PM - Buy SBI with target of Rs 1150, says Ashwani Gujral, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 1000, he adds. The stock is currently trading at Rs 1025.50, down 1.8% on the BSE. 

12:38 PM - March is generally a more difficult month for the market and given that there has been no respite globally, the market could hit 2300, says Vibhav Kapoor of IL&FS on CNBC TV18. He believes this recession is deep and the market would remain range-bound between 2300-3000 for at least another 5 to 6 months. 

12:31 PM - Buy Ashok Leyland with stop loss of Rs 12-13, says Ashwani Gujral, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 16.19, up 4.5% on the BSE. 

12:25 PM - Exit from IFCI, says Sharmila Joshi of Systematix Shares on CNBC Awaaz. There is no trigger in this stock, she adds. The stock is currently trading at Rs 18.40, up 0.3% on the BSE. 

12:17 PM - Buy Maruti at around Rs 620, says Ashwani Gujral, technical analyst, on CNBC Awaaz. It can go up to Rs 750, he adds. The stock is currently trading at Rs 658.65, down 0.6% on the BSE. 

12:10 PM - Buy Fortis Healthcare at Rs 60, says Ashwani Gujral, technical analyst, on CNBC Awaaz. Book profit around Rs 86-91, he adds. The stock is currently trading at Rs 64.65 on the BSE. 

12:03 PM - The market at noon continues looking somber. Selling continues in banking, power, telecom and realty stocks. Sensex is trading at 8821, down 81 points from its previous close, and Nifty is at 2733, down 24 points. CNX Midcap index and BSE Smallcap index are down 0.6% each. The market breadth is negative with advances at 354 against declines of 700 on the NSE. 

11:54 AM - Invest in Suzlon Energy for 2-3 years, says MB Singh, technical analyst, on Zee Business. Buy at around Rs 40 but in staggered fashion, he adds. Will give good returns in long term, he says. The stock is currently trading at Rs 41.55, up 0.5% on the BSE. 

11:46 AM - Inflation figure for the week ended February 14 has been declared at 3.36% versus the earlier figure of 3.92%, reports NDTV Profit. 

11:40 AM - HDFC is a great investor stock to buy for the long term and not for short term, says Vibhav Kapoor of IL&FS, on CNBC TV18. It will have range-bound movements for quite some time before things clear out, he adds. The stock is currently trading at Rs 1202, down 4.2% on the BSE. 

11:33 AM - Hold Today's Writing Products with stop loss of Rs 17, says Sudhanshu Pandey, technical analyst with LKP Shares, on CNBC Awaaz. It has resistance at Rs 22-23 at which level book profit, he adds. The stock is currently trading at Rs 19, up 2.4% on the BSE. 

11:27 AM - Buy NTPC at Rs 180 with target of Rs 182, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 178, she adds. The stock is currently trading at Rs 180.15, up 0.1% on the BSE. 

11:19 AM - Buy Siemens at Rs 230 with target of Rs 236, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 224, she adds. The stock is currently trading at Rs 230.45, up 0.4% on the BSE. 

11:12 AM - Go long on Bharti Airtel with target of Rs 675 and Rs 680, says Devangshu Dutta, market expert, on CNBC TV18. Keep stop loss of Rs 630, he adds. The stock is currently trading at Rs 635.80, down 1.02% on the BSE. 

11:04 AM - The market sees a bit of selling pressure, an hour into opening. Sensex is trading at 8815, down 87 points from its previous close, and Nifty is at 2740, down 22 points. CNX Midcap index is down 0.7% and BSE Smallcap index is down 0.8%. The market breadth continues to be negative with advances at 302 against declines of 685 on the NSE. 

10:55 AM - Exit Redington either on rally or even at current levels, says Sudhanshu Pandey, technical analyst with LKP Shares, on CNBC Awaaz. The stock is currently trading at Rs 83, down 7.4% on the BSE. 

10:48 AM - Traders and investors can buy MALCO with target of Rs 102, says Anil Singhvi, market expert on CNBC Awaaz. The stock is currently trading at Rs 94.95, up 5% on the BSE. 

10:42 AM - Hold Punj Lloyd with stop loss of Rs 81, says Simi Bhaumik, technical analyst, on Zee Business. It has resistance at Rs 86 crossing which it might go up to Rs 91, she adds. The stock is currently trading at Rs 81.70, down 1.2% on the BSE. 

10:34 AM - Buy Cairn India with target of Rs 183, says Ashwani Gujral, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 150, he adds. The stock is currently trading at Rs 162.70, up 1.4% on the BSE. 

10:27 AM - Buy Gulf Oil Corporation with target of Rs 34-35, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 25, she adds. The stock is currently trading at Rs 29.40, up 0.3% on the BSE. 

10:20 AM - Hold GMR Industries which is a strong stock, says Sudhanshu Pandey, technical analyst with LKP Shares, on CNBC Awaaz. It has resistance at Rs 94-110 levels where one can book profits, he adds. The stock is currently trading at Rs 94.90, up 13% on the BSE. 

10:14 AM - Buy Alstom Projects on dips with target of Rs 350, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 280, she adds. The stock is currently trading at Rs 316.35, up 1.6% on the BSE. 

10:06 AM - Buy Tata Motors above Rs 141 for intra-day trade, says Rajat Bose, technical analyst, on CNBC TV18. Keep stop loss below Rs 138 and target of Rs 146 and Rs 148, he adds. The stock is currently trading at Rs 142.15, up 1.6% on the BSE. 

9:59 AM - On the day of F&O expiry, the market opens on a flat note, not exactly a great opening. Sensex is trading at 8852, down 49 points from its previous close, and Nifty is at 2748, down 13 points. CNX Midcap index is up 0.03% and BSE Smallcap index is up 0.02%. The market breadth is negative with advances at 171 against declines of 268 on the NSE. 

9:52 AM - The recovery yesterday was on low volumes and is unlikely to sustain, says Deven Choksey of KR Choksey on CNBC TV18. He finds the upside for the Nifty capped at 2820 and support at 2630. In the absence of fresh triggers, the market can break below support levels in the near term, he adds. 

9:45 AM - Expiry is expected to be uneventful, says Tushar Mahajan of Edelweiss Securities on CNBC TV18. There may see some buying in last half hour of trade and Nifty may expire around 2760-2780, he adds. He finds that directional players are still rolling over net shorts into the next series. While 2700-2900 seems to be the range going forward, Option build-up at 2200 should be kept in mind, he says. 

9:38 AM - Today will be a neutral day for Asian markets, says Stephen Gollop of Tyche Group on CNBC TV18. There is so much uncertainty over the banks that it is unlikely to see any major positive or negative swing today, he adds. 

9:32 AM - The market may have a flat to positive opening today, says Ashwani Gujral, technical analyst, on CNBC TV18. He sees supports for Nifty at 2700-2730 and resistances at 2800-2830-2860. Some volatility is expected today on account of it being F&O expiry day, he adds. Advises traders to go long on dips for quick intra-day gains. 

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