08 Jan closing

The bechmark Sensex closed marginally lower, after seeing consolidation throughout the session. Profit booking in technology ahead of Infosys' third quarter numbers, telecom, metal, oil & gas exploration and select banking & financial companies' shares put pressure on the markets in the last one hour of trade.

However, buying in capital goods, power, pharma, realty and FMCG stocks helped the benchmark indices since early trade to limit the losses.
The broader indices outperformed the benchmark indices; especially Smallcap Index continued its uptrend for the 11th consecutive day, surged 10.5%. Today, the BSE Midcap Index closed flat while the Smallcap Index was up 0.44% at 8,697.64.
The 30-share BSE Sensex closed at 17,540.29, down 75.43 points or 0.43%, after seeing day's range of 17,508.96-17,658.12. The 50-share NSE Nifty was down 0.35% or 18.35 points, to settle at 5,244.75; it has touched an intraday high of 5,276.75 and low of 5,234.70.
Emerging market guru Mark Mobius, Chairman of Templeton Asset Management, said shares globally should brace for a correction though he said it would be part of the bull market run taking place.
“We are in a secular bull market and you see corrections, which can be to the tune of 15–20% but we shouldn’t be concerned that it represents a bear market,” Mobius said, urging investors to participate in it by buying more if the correction came along.
The markets were seen profit booking in last two days, after four-day run up and closed the first week of the year 2010 as well as new trading timing of 9 am on a positive note but the volumes remained disappoint.
Today's total traded turnover was at Rs 72,424.35 crore. This included Rs 17,638.88 crore from the NSE cash segment, Rs 48,481.59 crore from the NSE F&O and the balance Rs 6,303.88 crore from the BSE cash segment.
Index (%)
IT (-1.98)
TECk (-1.68)
METAL (-0.73)
BANKEX (-0.43)
OIL&GAS (-0.14)
AUTO (-0.07)
MIDCAP (0.02)
FMCG (0.04)
PHARMA (0.38)
SMALLCAP (0.44)
POWER (0.57)
CAP GOODs (0.59)
REALTY (3.23)
Lot Size will be changed from 31st March 2010.
Market regulator SEBI has standardised the lot sizes for stock futures. The revised lot sizes will be effective from March 31, 2010.
The Stock Exchanges will review the lot size once in every 6 months based on the average of the closing price of the underlying for last one month and wherever warranted, revise the lot size by giving an advance notice of atleast 2 weeks to the market. If the revised lot size is higher than the existing one, it will be effective for only new contracts.





Underlying Price      Lotsize
≥1601 125
801 - 1600                250
401 - 800                  500
201 - 400               1,000
101 - 200               2,000
51 - 100                 4,000
25 - 50                   8,000
<25                       In multiple of 1000

7 Jan 2010

07 Jan 2010 08:45



Asian Markets :


SGX Nifty : +1(5292.50)
Hang Seng : +3.01(22419.68)
Nikkei : +7.09(10738.54)

Nifty will open flat on flat global bourses.Resistance 5300,immediate Support 5240
Recommendations :
Note : Follow Buy recommendations in +ve bias & v.v.
Buy Anantraj sl140 Trg151
Buy IBN18 sl93.5  Trg100
Buy Mahlife sl352  Trg361
Buy Glaxo sl1617  Trg1668
Buy IVRCLInfra sl360  Trg381
NDTV Watch
Conditional :
Buy Federalbnk sl240  Trg254 Abv 246 (Positional)
Buy Orientbank sl261 Trg280 (Positional)
Buy IDFC sl159  Trg170
Sell :
Sell Jisljaleqs (Below 837) sl853  Trg800
Sell HCLTech sl372 Trg360
Stocks in News :
RIL set to sell more treasury shares in next couple of days
Bharti – Warid deal underway; towards Completion; Bharti-Airtel Likely To Invest $300 m For 70% Stake In Warid
Pfizer- Strides Arcolab deal
Collaborate to commercialise off-patent Sterile Injectibles
Collaborate to commercialise off-patent oral products in US
Deal comprises 40 off-patent products, mainly for Cancer
First product to reach market in 2010
Products to be licensed to Pfizer by Strides & Onco Therapies
Strides & Onco therapies 50:50 JV between Aspen & Strides
Financial details of deal not disclosed
RIL to drill 6 more exploration wells in D6 block
Niko is RIL's junior partner in D4, D6, NEC 25 blocks
Board meets today:
Rama News Print to consider rights issue
Viceroy Hotels for fund raising & restructuring of assets
Rohit Ferro to consider rights issue
Wockhardt gets US FDA approval for Alzeimers Drug
Bilcare opened GDR issue of upto $35 million yesterday
Govt gets nod to offload 10% in BSNL – BS
USL mulls bonds issue to refinance Rs 3000 crore debt – BS
FDC buy back at maximum Rs 65/share Offer open on January 18
Piramal looking for buyouts, plans to raise Rs 1000 crore – DNA
HDIL to raise Rs 400 crore via second tranche of NCD issue
Fund Action witnessed in Adhunik Metaliks, Cranes Software and HCL Technologies.
Fund Action:
Adhunik Metaliks
Merrill Lynch buys 13 lakh shares at Rs 109 per share
Cranes Software
Deutsche Sec sells 21 lakh shares at Rs 30.10 per share
Macquarie Bk sells 21 lakh shares at Rs 30.30 per share
Swiss Fin sells 15 lakh shares at Rs 29.70 per share
HCL Technologies
HCL Corp buys 10 lakh shares at Rs 382 per share
HCL Holdings sells 10 lakh shares at Rs 382 per share
F&O cues:
The Nifty Open Interest PCR increased to 1.24 versus 1.21. Nifty 5200 Put added 8.1 lakh shares in Open Interest and Nifty 5400 Call added 4 lakh shares. Stock futures added 1.3 crore shares in Open Interest.
The Nifty futures added 5.9 lakh shares in Open Interest and ended with 7-point premium versus 4-point premium.
The Nifty Open Interest PCR increased to 1.24 versus 1.21. Nifty 5200 Put added 8.1 lakh shares in Open Interest and Nifty 5400 Call added 4 lakh shares. Stock futures added 1.3 crore shares in Open Interest.
Fresh long positions were seen in Financial Tech, Sintex, Divis Labs and Dena Bank; their cost of carry was also up. Financial Tech gained 6% and its futures Open Interest was up 37%.
Sintex rose 4% and its futures Open Interest was up 23%. Divis Labs went up 2.7% and its futures Open Interest was up 20%. Dena Bank surged 4.8% and its futures Open Interest was up 10%.
However, fresh short positions were seen in Maruti. The stock was down 3.5% and its futures Open Interest was up 16%.
Futures Open Int up Rs 1065 crore
Options Open Int up Rs 3435 crore
Nifty Futures add 5.9 lakh shares in Open Int
Nifty Futures at 7-pt prem versus 4-pt prem
Nifty Open Int PCR remains at 1.24 versus 1.21
Nifty Puts add 33.9 lakh
Nifty Calls add 20.2 lakh shares in Open Int
Nifty 5200 Put adds 8.1 lakh shares in Open Int
Nifty 5100 Put adds 4.4 lakh shares in Open Int
Nifty 5300 Put adds 3.6 lakh shares in Open Int
Nifty 5400 Call adds 4 lakh shares
Stock Futures add 1.3 crore shares in Open Int
Market cues:
FIIs net buy USD 230 million in equities on January 5
NSE F&O Open Int up Rs 4,500 crore at Rs 92,194 crore
FIIs net buy Rs 661 crore in cash markets on January 6 (prov)
DIIs net sell Rs 286 crore in cash markets on January 6 (prov)
FII data in F&O not released yet on January 6
US Market Updates :
Yesterday US markets closed flat. Alcoa, Boeing and Bank of America were the key Dow gainers.
The Dow Jones Industrial Average was up 1.66 points, or less than 0.1%, to 10,573.68. The broader S&P 500 Index was up 0.62, or 0.1%, to 1,137.14. The Nasdaq Composite Index was down 7.62 points, or 0.3%, to 2,301.09.
The Fed released minutes from its last meeting yesterday which indicated that some members think more stimulus measures for the economy may be desirable. They modestly raised their projection for GDP growth for the second half and into 2011 and said they see lower core inflation in the next few years.
In key economic data, the ADP said December job losses dropped to 84,000, below the 90,000 estimate. And the December ISM service index improved to 50.1 from 48.7 that was registered in November.
In the Forex market, the dollar fell against the euro after fed minutes suggested the possibility of more stimulus measures for the economy.
In commodities, crude prices rose nearly 2% to a 14 month high on expectations that cold weather will boost heating fuel demand. The commodity touched as high as 83.52 dollar.
Copper rose to the highest price since August 2008 on speculation that demand will increase as the global economy rallies. Aluminum jumped to a 15-month high as heavy snow in China may hamper production. In other metals, zinc, nickel, lead and tin also gained.
Gold prices scaled to a three-week high as fresh New Year investment flows boosted commodities. The bullion rose to as high as 1,140 dollars an ounce.
Disclaimer :

This document has been prepared by the Research Division of Integrity Financial Consultants Pvt. Ltd.,Pune, India and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of iNTEGRITY. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, iNTEGRITY has not independently verified the accuracy or completeness of the same. Neither iNTEGRITY nor any of its affiliates, its directors or its employees accept any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient's particular circumstances and, in case of doubt, advice should be sought from an independent expert/advisor. Either iNTEGRITY or its affiliates or its directors or its employees or its representatives or its clients or their relatives may have position(s), make market, act as principal or engage in transactions of securities of companies referred to in this report and they may have used the research material prior to publication.

Stay cautious on Guaranteed Returns on Highest NAV Insurance Plans

Illusion of Returns on Highest NAV of 7 years Insurance Plans/Schemes :







It does not mean that Highest NAV means the NAV when the market was at top in those 7 years.

The flavor of the season for insurance companies seems to be the guaranteed net asset value plans, or Returns on Highest NAV plans. These are very easy to sell and also beneficial for the Insurance companies as they do not need to pay more incentives or commissions to their representatives or marketing guys as these schemes are hot cakes to sell.


This is not surprising as the JFM has started and the last date for this financial year (March 31, 2010) comes closer, and people get ready to make tax-saving investments. Also, with last year's stock market crash still fresh in the minds of investors, any sort of guarantee on investment makes for a good marketing proposition.


So here is a lowdown on what these plans are all about and why it makes sense for you to avoid them !


What is a guaranteed NAV plan?


It is essentially a 10-year insurance plan which guarantees the highest NAV for a period of the first seven years of the plan. Essentially, these are capital guarantee products that ensure that the amount you invest does not lose value and you get some upside of equity. It is erroneous to think that you get Sensex-linked return, with zero risk.


How does the guarantee work?


Let us say you invest in a guaranteed investment plan now at a price of Rs 10 per unit. Five years down the line, the NAV is Rs 30, after that the NAV starts to fall and at the time of maturity 10 years on, the NAV is at Rs 15. These plans guarantee the highest NAV achieved during the period of the first seven years of the policy. So, in this case, you will get paid Rs 30 per unit at maturity even though the NAV of a single unit at that point of time is quoting at Rs. 15.


In a more optimistic scenario, if the NAV at maturity is Rs 45, you will be paid Rs 45 per unit. Essentially, the insurance company will pay you the highest of the following three things -- the highest NAV achieved during the first seven years of the policy,the NAV at maturity and Rs 10 per unit. So far so good.


What does the plan invest in?


These plans have a flexibility of investing up to 100% in equity as well as debt. But there is no binding to invest any fixed percentage into equity. The fund manager has complete rights to allocate the corpus according to him. Insurance companies which have launched such plans are of the view that they will decide on the allocation between debt and equity depending on the state of the market. So, if equity markets fall, investments will be moved from equity to debt and vice versa. Any serious market observer will tell you, guaranteeing investments being made into the stock market is not the best way to operate. If such funds plan to invest 100% in equity, how can they guarantee the highest???


NAV, given the fact that the highest NAV will be obvious only in retrospect?


Let us say an insurance company is able to raise Rs 1,000 crore for such a plan by selling units at Rs 10 per unit. Now, during the course of operation, the NAV hits Rs 30, five years down the line. This means the Rs 1,000 crore collected initially is now worth Rs 3,000 crore. As assumed above, Rs 30 is the highest NAV achieved.


At the time of maturity, one unit is worth Rs 15, and the total investments are hence worth Rs 1,500 crore. But as per the guarantee given, the investors need to be compensated the rate of Rs 30 NAV, and hence Rs 3,000 crore is needed. Rs 1,500 crore can be raised by selling the investments at the time of maturity.


This still leaves Rs 1,500 crore (Rs 3,000 crore guarantee - Rs 1,500 crore value of present investments) to be got. So the question is, where is the Rs 1,500 crore going to come from?


Will the insurance company will compensate the investors from its own pockets. But Rs 1,500 crore is a lot of money.


What are such plans betting on?


To an extent, the above example was a rather extreme one -- no company would be willing to take on such huge losses. From the look of it, these companies will have a higher exposure to equity initially and will gradually move the investments into debt as the date of maturity nears. So towards maturity, these funds are likely to have significantly more investments in debt than in equity. Also, the funds are likely to keep booking equity gains and moving them into debt over the period of the plan. This, in a way, will ensure that the equity gains are cashed in, the NAV does not go to very high levels, and the loss on account of the guarantee, if any, is minimal.


Let’s understand how these funds work.


Most of them use an investing strategy called dynamic hedging or constant proportion portfolio insurance (CPPI). Under this, the fund manager will constantly reallocate money between debt and equity classes to assure the previous highest NAV.


In year one, your investment will be split between debt and equity in such a manner that you get an assured NAV of Rs10 at the end of 10 years. Over the year, if the equity market goes down, your capital stays put as you have bonds. But if the market goes up, you will see the NAV rising. So, let’s say, we are at an NAV of Rs15 after a year and the market sinks 15%. The fund manager will sell equity and buy bonds to secure the highest NAV till then.


In a market that has no volatility, the product will work because the NAV will go up only in a linear manner. But real life is less neat. Each time the market falls and your allocation in debt rises, the reverse allocation to equity may not happen when markets recover. Remember, the debt part of your portfolio is holding bonds that ensure the highest NAV at maturity. So over a period of time, your portfolio in equity may become smaller and smaller and would move towards a pure debt fund.


These plans use strategies like Dynamic Hedging and CPPI (Constant proportion portfolio insurance), which are advanced strategies used in Derivatives world. Some basic explaination of the whole process :


Supposing a policy starts today and is guaranteed to give highest NAV in next 7 yrs and we can control how money moves to debt and equity, its pretty simple.In the beginning, let’s assume a NAV of Rs 10, and the Asset allocation is 100% in equity and 0% in debt . Now suppose, the market moves up and NAV goes upto Rs 15 by the end of the first year, at this point, try to understand what Insurance company has to provide – they have to make sure, that they provide at least Rs 15 as the return after 6 yrs . Now in order to achieve this, all they have to do is keep X amount in debt instruments which will mature in next 6 years and provide Rs 15 at the end of 6 yrs, so assuming the debt return at 7%, they need to put around Rs 10 in Bonds , so that the maturity of the bond is Rs 15 at the end of 6 yrs .


= > 10 * (1.07)^6


= > 15.007


They can now invest the rest Rs 5 in Equity as Rs 10 is allocated to Debt . So, now they’ve made sure that whatever happens to the market, they get Rs 15 for sure at the end of 6 yrs. Now, there are two possibilities,


Case 1 : Market Goes down : If market goes down, the NAV will go down correspondingly, but as per the strategy, the maturity value will be at least Rs 15.


Case 2 : Market Goes up again : If market goes up at this point and the NAV rises above 15, for example say to Rs. 18, now again they will pull out money from Equity and allocate such an amount to debt, that the maturity at the end of total 7 yrs would be Rs 18 and so on…


Note :


• These highest guaranteed schemes do not provide wide range of product categories, such as equity-oriented growth funds, balance funds and debt funds.


• Guarantee on highest NAV is available only if you survive the term. If you die during the term, your nominees will get the prevailing value of the fund. This is inferior to even a regular debt product because of the high cost structure involved.




Observation : Here Debt option will keep on increasing and at no point, the money can be shifted back to Equity for future upside. This is the major drawback of Highest NAV Guaranteed Plans or Schemes.


How Investors get Confused :


You have to read in between the lines; Investors need to understand that these schemes guarantee the “Highest NAV”, READ AGAIN! , it’s Highest NAV and not “Highest Returns” . Normal Investors don’t give much thought before buying these products and normally assume that the returns will be linked to the Equity Markets.


Actual Returns from Highest NAV Guarantee Plans :


The long-term equity returns, are normally in the range of 12-15% while, debt returns turn out to be 6-7%. So, considering the fact, that these products will shift most of their money to debt, by the end of the tenure , we can expect the returns to be in range of 9-10%. We do get some equity upside in these products, but that will be limited. After a point, this product will turn into a debt oriented fund with a major portion in debt. Also if you factor in costs, like premium allocation charges , fund management charges and other yearly charges, the returns will not be what you actually expect.


You will be amazed to know, that the returns expected from these schemes, may be lower than the returns offered by equity-oriented ULIPs. The reason being, that the basic objective of protecting the previous high NAV of the fund, may constrain the fund manager’s ability to take risks while allocating funds. So if the market has fallen down, the fund manager can’t take the risk of shifting the money from Debt to Equity to gain from the potential upsides in future, because they have to provide the “Guarantee.”


Current Products in Market with Highest NAV Guarantee


■ICICI’s Pinnacle


■Birla Sun Life Platinum Plus-III


■Bajaj Allianz Max Gain


■SBI Life Smart Ulip


■Tata AIG Apex Invest Assure


■LIC Wealth Plus


■Reliance Highest NAV Guarantee Plan.


■AEGON Religare Wealth Protect Plan


Controlling your emotions with these products


Let’s talk about mistakes from the investors point of view. We, as investors, don’t think with inquisitive, susceptive minds. Getting good returns from stock markets is anyways a tough thing in itself. So when these companies come up with plans like these, which say “highest NAV in 7 yrs”, we have to ask, “How is this possible?” . Dont say it’s not possible at all, just ask how? How do they achieve it? Stop seeing dreams of getting high returns without looking at the risk involved, and try to find out – what is the strategy they’re using , Is there something in between the lines ?


We all want to get great returns, but we have to shed this belief that, companies come up with plans specially for us. All the companies out there exist to earn money, and their motive behind every product is to make money, & generate profits for their companies, so that they keep their shareholders happy. So next time a product like this comes up , you have to control your emotions before getting in and first investigate. The worst part of this whole business, (of guaranteed highest NAV products) is the timing and how it gives naive investors, high illusions about the product. Products like these, take major advantage of psychology of the ordinary saver. Many Investors in smaller towns have broken their Fixed Deposits and taken some loan to invest in products like these, especially SBI Life Smart Ulip and LIC Wealth Plus because of the trust factor with LIC and SBI .


How Highest NAV Guarantee Policy Works ?Reasons to stay away :


The first and foremost is that equity markets and guarantees are a very risky idea, as explained above. Do you Know that, The Securities & Exchange Board of India (SEBI) , the stock market and mutual fund regulator, does not allow mutual funds to guarantee returns. Therefore Mutual funds can not provide guaranteed products which are related to stock markets, but IRDA can approve things like these and all these insurance companies come under the ambit of Insurance Regulatory and Development Authority of India (IRDA). So any Insurance Company can come up with a new Plan , link it with market and start providing “Guaranteed products” . You have to understand that “equity markets” and “guarantees” are a very risky idea together , so please stay cautious.


For those who do not remember how risky stock markets and guarantees can be, let us go back a few years in history, and talk about the Unit Trust of India (UTI). UTI had around Rs 17,000 crore invested in its assured return schemes and all these schemes had to be shut down in 2002 when things started to go haywire.


The insurance companies running these plans haven't elaborated on how exactly they plan to manage the guarantee. Investors should also keep in mind that in the world of finance there are no holy cows, as the recent financial crisis clearly shows. Some of the best names in finance have gone bust and investing for 10 years is a long time if the word guarantee comes.


During the course of the plan, you may realize that the returns haven't been up to the mark in comparison to the broader market and may want to exit. Or you may want to exit simply because you need the money. Exiting a Ulip can be a costly affair. This is primarily because most Ulips have upfront charges known as allocation charges which they recover from the investor in order to pay high commissions to insurance agents. Also, the guarantee that comes with these plans is applicable only if the investor stays the entire duration of the plan.


These Insurance companies very well understand investors psychology and their helpless ness at the end of the year because they have to provide investment proofs for Tax exemption as soon as possible . This is not just limited to these products , its true for NFO’s , IPO’s in booming markets , More Sales calls at the end of the year, and other new products.


We have to understand that there is nothing “Innovative” in this product , the fact that 7 companies have come up with the same product proves that its not “innovation” because Innovation is unique . Aegon Religare has gone ahead in this stupidity and introduced their Guaranteed Plan which guaranteed 80% of the Highest NAV , Looks like they think that it makes them look different from others .


The solution :


If you want to invest in the stock market and save on taxes, invest in tax-saving mutual funds. These funds have very low upfront charges and come with a lock in of three years. If three years down the line, you figure out that the performance is not up to the mark, you can simply encash the money and switch to investing in some other mutual fund. If you are looking for an insurance cover as well, buy a term insurance policy. Also, if you are the kind who is looking for guaranteed return, invest in the public provident fund, national savings certificate and tax-saving fixed deposits. And remember that stock markets and guarantees are an extremely risky proposition and don't go together.


So use simple logic,


Invest in the Term Insurance + Mediclaim plan(For Insurance purpose).


Dont invest in insurance just to save taxes, there are many other sources to save taxes. Remember,taxes are the part of your profits.


If you are optimistic smart investor with a moderate risk tolerance and looking for equity returns, invest in direct equity at the recommended levels with a proper guidance bearing a downside of 15% (stop loss).Consider that you invest in Nifty at the level of 5000, your raw stop will be somewhere around 4250 mark.It does not mean that the 5000 would be comfortable level for Nifty to enter long.It may be 4700 or may be above 5300.


Why 15% ?? Reason is, that 15% is the amount which you usually pay under the name of “Allocation charges” in insurance scheme.


Another option is to invest into the Equity (Mutual) Fund and whenever your advisor sees a downside more than 1% over the Nifty or Sensex, redeem all the units and reinvest at the lower NAV. For example, if NAV will be 25 and the advisor expecting the market to fall more than 1% then redeem all the units and reinvest at < 24.75 (1% because the exit load is 1% and no entry load again).


And if you are looking for guaranteed returns, invest in any good debt fund or bonds.


We want to tell you here is not to invest blindly on illusions but think wisely and go for the elusions whenever and wherever its necessary.






For any Details, Contact :


Email : info@integrity.org.in


Call : +91 99750 60000


For abroad clients : +91 9371031008






Disclaimer :


This document has been published in the best interest of our clients.It does not mean that we are recommending not to invest in the mentioned schemes.We have no arguments or debates with any fund houses or insurance companies about their strategies or their commitments.Discalimer:This document has been prepared by the Research Division of Integrity Financial Consultants Pvt. Ltd.,Pune, India and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of iNTEGRITY. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security or any investment scheme under the title of Insurance or Mutual Fund. The information contained in this report has been obtained from sources that are considered to be reliable. However, iNTEGRITY has not independently verified the accuracy or completeness of the same. Neither iNTEGRITY nor any of its affiliates, its directors or its employees accept any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. The suitability or otherwise of any investments will depend upon the recipient's particular circumstances and, in case of doubt, advice should be sought from an independent expert/advisor. Either iNTEGRITY and or its affiliates and or its directors and or its employees and or its representatives and or its associates and or its clients and or their relatives will not be held liable or responsible for any losses or liabilities for any type of issue.No claims will be entertained hereon.The readers or followers of this document are advised to make their own strategies about their investments and or financial planning and or any similar action(s).

6 Jan 2010

6 Jan 2010

Asian Markets :


SGX Nifty : +22(5300)


Hang seng : +163(22442)


Nikkei : +44.30(10726)
Recommendations :
Note : Follow Buy recommendations in +ve bias and v.v.
Buy :
Buy Dabur 163 170
Buy Indiainfo 134 150
Buy Peninland 79 88
Buy Rcom 171 192 / 208
Buy Bankbaroda 520 560
Buy GMRInfra 67 73
Buy Sparc 82 91
Buy Albk 128 138
Buy IDFC 158 170
Conditional Buy :
Buy Corpbank 428 464 At 428-435
Buy Jindalstel 712 750 Abv 734, if sustain
Indiabulls Strong abv 135 close
Axisbank 1005 1034 Hold long as per yest call with trail sl 1005
Unionbank Watch
Buy FCH Abv 226 close
Positional :
Buy BGRenergy 486 550 Positional
Sell :
Sell HEG Sell on rise
Sell Maruti 1552 1440
Sell TCS 761 736 / 725
Sell Techm 1039
Stocks in News :
Tata Steel :December sales up 73% at 6.63 lakh tonne (YoY)
Q3 sales increase by 49% YoY
Reports of Tata Buying Fiat's Sicily units untrue
Cannot comment on Nano's future price trend
Polaris : Orbitech sells further 0.71% stake in Polaris. Orbitech is arm of Citigroup; Citigroup stake down to 30.4%
DB Corp to list today; issue price at Rs 212, for retail at Rs 210
ABG Shipyard gets around 8 million shares in Great Offshore open offer, may end up with 21.5% stake – DNA
Indian ADRs: MTNL up 10.6%, Tata Comm up 6%, Satyam up 4.8%
GMR Infra board approves vesting of hotel division of GMR Hyderabad International Airport into its wholly owned subsidiary GMR hotels and Resorts
Axis Bank launches new scheme; offers home loans at 8.25% fixed rate for first 2 years and floating rate post that
Idea Cellular MD: Indus Towers' IPO at least a year away
FII limit in Maruti reaches trigger limit; FIIs need prior RBI approval for primary/secondary purchases
RBI approves FII participation in Network18 up to 40% subject to composite limit of 49%
RIL led Maha SEZ plan put on hold for indefinite period – BS
Market cues:
FIIs net buy USD 151 million in equities on January 4
NSE F&O Open Int up Rs 6,137 crore at Rs 87,693 crore
FIIs net buy Rs 970 crore in cash mkts on January 5 (Prov)
DIIs net buy Rs 300 crore in cash mkts on January 5 (Prov)
FIIs net buy Rs 2,207 crore in F&O on January 5 (Prov)
F&O cues:
Futures Open Int up Rs 1,957 crore
Options Open Int up Rs 4,179 crore
Nifty Futures add 13.2 lk shrs in Open Int
Nifty Futures at 4-pt prem versus 8-pt prem
Nifty Open Int PCR remains at 1.21
Nifty Puts add 35 lk, Calls add 28.8 lk shrs in Open Int
Nifty 5200 Put adds 10.7 lk shrs in Open Int
Nifty 5300 Put adds 6.3 lk shrs in Open Int
Nifty 5000 Put adds 5.5 lk shrs in Open Int
Nifty 5400 Call adds 10 lk shrs in Open Int
Nifty 5500 Call adds 3 lk shrs in Open Int
Nifty 5600 Call adds 2.5 lk shrs in Open Int
Stock Futures add 3 cr shrs in Open Int
FIIs in F&O on January 5
Net buy Rs 1,970 crore in Nifty Futures
Nifty Futures Open Int up by 2,420 contracts
Net buy Rs 450 crore in Nifty Options
Nifty Options Open Int up by 38,893 contracts
Net sell Rs 253 crore in Stock futures
Stk Futures Open Int up by 19,646 contracts
Net buy Rs 41 crore in Stock Options
FIIs net bought Rs 1,970 crore in Nifty futures and Nifty futures added 10 lakh shares in Open Interest (OI). Nifty 5200 Put added 10.7 lakh shares in OI; Nifty 5400 Call added 10 lakh shares in OI and Stock futures added 3 crore shares in Open Interest.
FIIs net bought Rs 1,970 crore in Nifty futures and Nifty futures added 10 lakh shares in Open Interest (OI). The Nifty futures ended with 4-point premium.
Nifty 5200 Put added 10.7 lakh shares in OI; Nifty 5400 Call added 10 lakh shares in OI and Stock futures added 3 crore shares in Open Interest.
Huge long build-up was seen in SCI. The stock gained 7.5% and its futures Open Interest was up 67%.
Fresh long positions were seen in Tata Tea, RNRL and India Infoline. Tata Tea rose 7.8% and its futures Open Interest was up 28%. RNRL went up 5% and its futures Open Interest was up 14%. India Infoline shot up 5% and its futures Open Interest was up 34%.
NALCO surged 15% and its futures shot up 13%. Its Futures' Open Interest was up 18%.
US mkts end flat on mixed economic data
The US market closed Tuesday trade flat. The Dow ended in the red after a report showed pending-home sales fell much more sharply than expected. Also Read - How ADRs performed
Ford shares gained more than 6% after the auto maker reported sales shot up 23.3% in December. Chrysler's sales fell 10.5% in December, while General Motors' sales fell 12.8%.
The Dow Industrials slipped 11.94 points, or 0.1%, to 10,572.02. The Standard & Poor's 500 index rose 3.53 points, or 0.3%, to 1,136.52. The Nasdaq Composite Index was up 0.29 points, or less than 0.1%, to 2,308.71.
In economic data, pending-home sales tumbled 16% in November, much steeper than the 5-percent drop expected and the 3.7-percent gain logged in October. However, sales rose 15.5% year over year. But factory orders rose 1.1% in November, more than double of what was expected.
In the forex market, the dollar suffered its biggest drop against the yen in nearly a month after weak US housing data and expectations of a fed rate hike sooner than later. The euro, however, fell from a three-week high versus the dollar.
Crude is currently trading near a 14-month high after an industry report showed a decline in US crude stockpiles and as cold weather bolstered the outlook for fuel demand.
Copper fell on reduced concern about potential threats to supply from strikes in Chile. Among other LME metals zinc and nickel declined while aluminum gained.
Indian ADRs :
MTNL gained 10.6 %
Tatacomm gained 5.97 %
Satyam gained 4.79 %
Rediff gained 4.29 %
Wipro gained 2.92 %
Sterlite gained 2.22 %
ICICI Bk gained 1.42 %
Patni gained 0.72 %
HDFC Bk gained 0.43 %
Tata Motors slipped 1%
Sify sleeped nearly 1%
Disclaimer :



This document has been prepared by the Research Division of Integrity Financial Consultants Pvt. Ltd.,Pune, India and is meant for use by
the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without
prior permission of iNTEGRITY. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The
information contained in this report has been obtained from sources that are considered to be reliable. However, iNTEGRITY has not
independently verified the accuracy or completeness of the same. Neither iNTEGRITY nor any of its affiliates, its directors or its employees
accept any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for
any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and
value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient's particular
circumstances and, in case of doubt, advice should be sought from an independent expert/advisor. Either iNTEGRITY or its affiliates or its
directors or its employees or its representatives or its clients or their relatives may have position(s), make market, act as principal or
engage in transactions of securities of companies referred to in this report and they may have used the research material prior to
publication.

5 Jan 2010

5 Jan 2010
Asian Markets :
SGX Nifty : + 50(5293)
HangSeng : + 297.47(22120)
Nikkei : + 101.63(10756.42)

Market will open with a strong note in line with positive Asians. SGX Nifty was trading at 5297 with 54 points higher than yesterday’s closing 5243.Kep booking profits on higher levels. Now Nifty has a support at 5150-5165 levels.
Nifty may resist at 5300 levels. A couple of closings above 5300 level will hold the bullishness.Market is increasing on low volumes and it will be a helping hand for bears. Another reason to worry is Crude Oil was trading above US $ 80. So suggestion is book profits at higher levels or trail your stops to enjoy profits.
Recommendations :
Note : Follow buy recommendations if market is in positive bias and v.v.
Buy :

Axisbank sl 978 Trg 1020
ITC sl 250 Trg 260
Balramchin sl 136 Trg 144/148
BBTC Trg 314
JPAssociat sl 148 Trg 161
RNRL sl 69 Trg 74
Autoline Ind sl 121 Trg 131
Low Risk High Return :
Punjlloyd sl 203 Trg 217
BRFL sl 192 Trg 198/202
Jaicorpltd sl 208 Trg 223
Madrascem sl 111 Trg 120
Gujfluoro sl 128 Trg 139
Wockpharma sl 171 Trg 180
Buy (Conditional) :
HDFC abv 2692 if sustain sl 2664 trg 2744
Finantech in between 1391-1413 sl 1376 Trg 1490(Res at 1430)
Relmedia abv 272 sl 267 Trg 280
EKC abv 149 sl 143 Trg 154/160(positional)
IDBI watch abv 132
Rcom abv 178 closing
GIPCL watch
Buy Positional :
LICHSGFIN sl 807 Trg 852
KGL sl 16 Trg 20
Mcdowell-n sl 1291 Trg1365
Educomp sl 740 Trg 770/795
Alphageo sl 220 Trg 270
Previous Calls :
Hold Long as per yesterday’s BTST
Pateleng sl 464 Trg 490
WelGuj : As per yesterda’s BTST, book profits at 280 levels as it is a major resistance.
Finantech : If holding as per 31st dec call raise sl to 1391
PNB : If holding as per 30th Dec call, hold long with trail sl 915 for Trg 940
BankNifty : As per yesterday’s BTST, hold long with a trail sl at 9060 for short term Trg 9224/9338
Sell :
Denabank Sell on rise
CIPLA sl 340 Trg 307(below 330 close)
GAIL sl 396 (below 409 close)


Results today: Prism Cement


Dr Reddys Labs announces results of phase III trial of Balaglitazone
Result indicate primary endpoint of HbA1c reduction
Balaglitazone is drug used for treatment of type II Diabetes
DRL working with RheoScience in drug development
Cipla in talks with GSK, Teva for supplying generic drugs – Mint
Cipla Chairman says company in talks with GSK Pharma & Teva to supply generic drugs: Agencies
Anand Mahindra Says
Commercial vehicle market clearly in upswing
M&M-Navistar JV will cater to export markets as well
Not averse to inorganic growth in 2-wheeler space
Other stocks that are in news today:
Godrej Properties lists today, issue price at Rs 490
Government to take stricter stand against high emitting sub-critical power plants, may deny fuel linkages, BHEL could be hit – FE
Suzlon in talks with WL Ross, BC Partners to raise upto $500m – Reports
Jindal Steel and Power (JSPL) raises Rocklands offer by 18% to match Chinese Company’s offer, values Australian miner at $197m – DNA
Indian ADRs:
Tata motors up 7%, MTNL up 7.5%, Sterlite up 6.1%
Ambuja Cements December cement sales at 1.73 mt versus 1.66 mt (YoY)
Shree Cements December cement sales at 8.6 lakh tonne versus 7 lakh tonne (YoY)
Zylog Systems board meet on January 9 to consider acquisition of a company in Canada
M&M launches trucks through JV with US Navistar
Source : Moneycontrol
Market cues:
US markets surge on day 1 of 2010
Crude surges above USD 81/bbl
Dollar index slips below 78 mark
FIIs net buy USD 178.7 million in equities on December 31
NSE F&O Open Int up Rs 6,552 crore at Rs 81,557 crore
FIIs net buy Rs 613 crore in cash markets on January 4
DIIs net buy Rs 2330 crore in cash markets on January 4
FIIs net sell Rs 51 crore in F&O on January 4
F&O cues:
Futures Open Int up Rs 2318 crore
Options Open Int up Rs 4233 crore
Nifty Futures add 10 lakh shares in Open Int
Nifty Futures at 8-point premium
Nifty Open Int PCR at 1.21 versus 1.20
Nifty Puts add 37 lakh shares in Open Int
Nifty Calls add 28 lakh shares in Open Int
Nifty 5100 Put adds 10 lakh shares in Open Int
Nifty 5200 Put adds 5.6 lakh shares in Open Int
Nifty 5300 Call adds 4.8 lakh shares in Open Int
Nifty 5400 Call adds 4.3 lakh shares in Open Int
Stock Futures add 5 crore shares in Open Int
FIIs in F&O on January 4
Net sell Rs 46 crore in Nifty Futures
Net buy Rs 230 crore in Nifty Options
Net sell Rs 257 crore in Stock Futures
Fresh long positions were seen in Chambal Fertiliser, IFCI, Ashok Leyland and Jaiprakash Associates. Chambal Fertiliser gained 10% and its futures Open Interest was up 36%.
IFCI shot up 5% and its futures Open Interest was up 10%. Ashok Leyland rose 5.4% and its futures Open Interest was up 16%. Jaiprakash Associates went up 4.7% and its futures Open Interest up 6%.
Arbitrage positions were seen in Neyveli Lignite. The stock rose 5.1% and its futures Open Interest was up 20%.
Fund Action witnessed in JSW Energy, Apcotex Ind, BSEL Infra, FCS Software, HSIL and Kinetic Motor.
ICICI Bk sells 93 lakh shares at Rs 100.03 per share
Apcotex Ind buys 1.65 lakh shares at Rs 89.50 per share
Landmark Cap sells 1.66 lakh shares at Rs 89.50 per share
BSEL Infra
Total Network sells 10.37 lakh shares at Rs 16 per share
FCS Software
Innova Svcs sells 74.5 lakh shares at Rs 15.50 per share
HSIL  Yamuna Vyapar sells 2.9 lakh shares at Rs 79 per share
Kinetic Motor
Kinetic Engg sells 3.8 lakh shares at Rs 22 per share


Oil rises above $81 as cold weather chills U.S.

Oil started the new year Monday trading above $81 a barrel, almost double what it fetched at the beginning of 2009 even though the U.S. is using much less.
Prices, which have been propped up by a weak dollar, will get even more support as winter weather chills the country. That means gasoline, heating oil and other fuels are also probably headed higher as the market tests how much people are willing to pay for energy.


Yesterday Dalal street witnessed Tea-part and it seems to be continued today. Yesterday, sugar stocks went up because of prices of commodity soared.
Shree Renuka Sugars has gained 1.2% at Rs 225. Over 10,900 shares have changed hands at the counter so far. Bajaj Hindustan has added 1% to Rs 227. Around 17,117 shares have been traded on the BSE.
Balrampur Chini Mills is up around 1% at Rs 134 with trades of over 13,450 shares.
Triveni Engineering and Industries has added 1.12% to Rs 109. Dhampur Sugar Mills has jumped 2.3% to Rs 139. Dwarikesh Sugar is up 1.5% at Rs 113.
Simbhaoli Sugars has rallied 2.6% to a new 52-week high of Rs 77. Uttam Sugar Mills has surged 5% to its upper circuit of Rs 70.05. Around 510 shares have been traded with 1,400 buy orders pending at the counter.
Dwarkesh sugar was up by 6.86 % to Rs.119
Oudh Sugar was up nearly 13 % and closed at 74.70
However, Andhra Sugar has slipped 1% to Rs 119.
Ex-mill sugar price in the state is at a record high of Rs 3,700 a quintal. Prices have gone up 7-8% in one month, though crushing season is on.
The Union government has allowed duty-free import of raw sugar to tide over the domestic production shortfall. In the 2008-09 season ending October 2009, domestic sugar output fell 42 per cent to 15 million tonne, causing retail sugar prices to more than double. Currently, sugar is selling at Rs 42-43 a kg in retail.
UP is the country's second biggest sugar producer after Maharashtra, and home to top producers like Bajaj Hindusthan and Balrampur Chini Mills. The UP sugar industry is also estimated to be incurring additional warehousing charges of Rs 5 crore every month.
Correspondingly, Tea stocks also rose.
Jaysreetea was up with 3.12 %
Tatatea closed with gaining Rs.8
Assamco was up with nearly 6% to 23.10
Bombay Burmah was up by almost 5%
Dhunseri tea was up by 1.8%
Goodricke was up with almost 2%
Harrison Malayalam also closed in green.

Disclaimer :

This document has been prepared by the Research Division of Integrity Financial Consultants Pvt. Ltd.,Pune, India and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of iNTEGRITY. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, iNTEGRITY has not independently verified the accuracy or completeness of the same. Neither iNTEGRITY nor any of its affiliates, its directors or its employees accept any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient's particular circumstances and, in case of doubt, advice should be sought from an independent expert/advisor. Either iNTEGRITY or its affiliates or its directors or its employees or its representatives or its clients or their relatives may have position(s), make market, act as principal or engage in transactions of securities of companies referred to in this report and they may have used the research material prior to publication.

Integrity's most preferred 30 scrips for 2010

4 Jan 2010

4th Jan, 2010

Asian Markets :

SGX Nifty : +8 (5227)
Hangseng : + 40.33 (21912)
Nikkei : + 122 (10669)

Recommendations :

Note : Follow buy recommendations in +ve bias and v.v.

Buy Thomas Cook  sl 65   Trg 72
Buy  Kamathotel sl 61  Trg 72
Buy SREINTFIN  sl 73  Trg 89
House of Pearl Fasion sl 83  Trg 91
RIIL sl 923  Trg 970 / 996
Aban sl 1242 Trg 1330
RECLTD sl 236  Trg 252
CMC sl 1320  Trg 1382 (Abv 1350)
Bartronics sl 143  Trg 158 (Positional)
Buy Radico dl 110 Trg 124

Seems to weak :

McDowell
Hanung
Zeel
Canbk
Archies



Weekly Wrap :




The year 2009 ended on a high note, with benchmark (BSE & NSE) indices registering best yearly gains in the last two decades and touching fresh 19-month peaks. The year, however, will be most remembered for the Sensex and the Nifty hitting the upper circuit for the first time.



In the week under review, the markets surprisingly moved in an extremely narrow band despite the two holidays and the derivatives expiry. The BSE benchmark index, the Sensex, moved in a narrow range of 200-odd points. The index touched a high of 17,531 and settled with a gain of 104 points at 17,465.



Among index stocks, Reliance Infrastructure surged over 4 per cent. NTPC, Grasim, Bharti Airtel, SBI, Hindalco and Jaiprakash Associates were the other major gainers. Sun Pharma dropped 3.6 per cent. DLF, Wipro and ITC were some of the other prominent losers.



Lack of momentum on the upside suggests the up move may halt temporarily. The Sensex needs to sustain above 17,550 for further gains, while on the downside, the index may seek support at 17,385-17,335, below which the bears are likely to have the upper hand.



The longer-term picture, since we are at the start of the New Year, looks quite promising. Chances are that we may re-test the 21,000-mark this calendar year, while there are multiple strong supports for the index on the downside. The bias will remain bullish as long as the index remains above 13,840 this year. There is a further deeper support around 11,590 in case of extreme bearishness. On the positive front, the Sensex is first likely to target 19,550, followed by 21,090, in 2010.



The Nifty moved in a range of 62 points and ended with a gain of 23 points at 5,201. The index was unable to close above 5,210 on any single day. Currently, the chart suggests that the Nifty needs to close above 5,237 for fresh bullishness. The Nifty may face resistance around 5,225-5,240 and find support around 5,177-5,163. A dip below 5,163 could see the index fall to 5,100 and then further lower to 5,010.



Unlike the Sensex, the yearly Nifty chart reveals that it will be difficult for the index to attain its 2008 peak (6,357) this year. In fact, the index has strong resistance around 6,225. The first significant target for the index is 5,790. On the downside, the index is likely to find considerable support around 4,600 and further lower at 4,175.





Mutual Funds Investment Picks 2010 :



The year 2009 started off on a subdued note for equity investors but by year-end both the BSE Sensex and Nifty were trading 80 per cent higher. With the markets trading at a price-earning multiple of well over 21 times from 11 times at the start of year, the upside in the indices may be limited from here on. So equity investing in 2010 may require greater stock selection skills. Why not select actively managed diversified funds for your portfolio?



In emerging markets such as India there are several diversified funds that have managed to deliver better-than-index returns. However, these funds, even if they deliver better returns, may also, at times, take on higher risk.



While comparing the top performing equity schemes whose returns are identical, investors can look at additional factors such as beta and expense ratio to gauge the risk return profile. Investors planning to take exposure to equity funds should, of course, pick funds with a proven track record over an entire market cycle.



Here there are three funds from the large and mid-cap space that investors can consider for long-term wealth creation.



HDFC Top 200: This fund is among the few to consistently remain on the buy list due to its steady returns across market cycles. Its performance over the year has validated our recommendation.



HDFC Top 200, which invests in the top 200 companies by market capitalisation, despite its ever growing asset size (Rs 5,781 crore) continued to maintain its tempo and beat its benchmark BSE 200 by a wide margin.



For instance, over a three- and five-year period, the fund outpaced its benchmark by 10 percentage points. Even during the market meltdown in 2008 the fund contained the losses better.



In 2008 when most of the funds preferred to move in to cash to protect their portfolios, the fund had the grit to stay invested. This helped in a neat recovery from the market lows; the fund went on to generate returns of 96 per cent over a one-year period and was one among the top ten performers over this time frame. In its November portfolio, the fund's preferred sectors were banks, pharma and consumer non-durables. Despite its huge asset base the fund adopts a buy and hold strategy. To prop up its return, the fund invests 10-15 per cent of the assets in mid-cap stocks (with market capitalisation less than Rs 7,500 crore).



DSP BlackRock Equity: DSPBR Equity and DSPBR Top 100 more or less has similar investment strategy in selecting sectors. But the former invests sizable assets in mid- and small-cap stocks while the latter sticks to its mandate of investing in large caps. The advantage of DSPBR Equity is that the fund prefers to stay invested in equities irrespective of the market condition and despite the presence of the mid and small-cap stocks (this segment being more prone to volatility). This demonstrates the fund's conviction in its investment strategy. Even during 2008, with reasonable exposure to mid and small-cap stocks and lesser cash position it withstood the market correction and contained losses. Clearly, stock-picking strategy has held the key. Though the fund is benchmarked against Nifty, one-third of the assets are invested outside the Nifty basket.



For the risk it has assumed the fund compensated its investors and concurrently outpaced its benchmark by over 10 percentage points over three and five-year periods. Good stock selection strategy and a lower beta than its peer DSPBR Top 100 were key reasons for DSPBR Equity being a better choice for your portfolio. In its November portfolio the fund's top sectors were software, consumer non-durables and pharma.



Birla Sunlife Midcap: A consistent performer across the market cycles, this fund outpaced its benchmark over a three and five-year period by a good margin and can lend support to one's portfolio returns. It is therefore worthy of a place in your core portfolio.



Having said this, some large cap funds with lower risks generated returns as good as the top performing mid-cap funds over the past five years. Midcap funds such as Birla Midcap generated very good returns during the bull phase of the market compared with lesser “beta” stocks, implying that they have the ability to identify the winner ahead of market rallies.



The fund also dilutes its holding risky sectors once there are signs of over-heating and moves to defensive sectors to protect its portfolio.



The fund's one-year performance emphasises that it has timed its sector calls well during this ongoing rally. However, given the extraordinary gains that this fund generates during bull phases, investors would do well to occasionally book profits to cash in on such rallies. In its November portfolio the top three sectors were banks, power and finance which together accounted for less than 30 per cent of the assets. The fund has a well diversified sector allocation and its assets are spread across 22 sectors.

Sources*







Index based market wide circuit breaker :

The exchanges implement on a quarterly basis the index based market wide circuit breaker system. The system is applicable at three stages of the index movement either way at 10%, 15% and 20%. This circuit breaker brings about a coordinated trading halt in all equity and equity derivative markets nationwide.

The market wide circuit breakers would be triggered by movement of either SENSEX or the NSE S&P CNX Nifty whichever is breached earlier.

In case of a 10% movement of either of these indices, there would be a 1-hour market halt if the movement takes place before 1 p.m. In case the movement takes place at or after 1 p.m. but before 2.30 p.m. there will be a trading halt for ½ hour. In case the movement takes place at or after 2.30 p.m. there will be no trading halt at the 10% level and the market will continue trading.

In case of a 15% movement of either index, there will be a 2-hour market halt if the movement takes place before 1 p.m. If the 15% trigger is reached on or after 1 p.m. but before 2 p.m., there will be a 1 hour halt. If the 15% trigger is reached on or after 2 p.m. the trading will halt for the remainder of the day.

In case of a 20% movement of the index, the trading will be halted for the remainder of the day.

The percentages are calculated on the closing index value of the quarter. These percentages are translated into absolute points of index variations (rounded off to the nearest 25 points in case of Sensex and 10 points in case of Nifty). At the end of each quarter, these absolute points of index variations are revised and made applicable for the next quarter.





Auto Sector end 2009 with superlative growth

The country’s largest four-wheeler manufacturer Maruti Suzuki sold 71,000 units in India, a 36.5% increase over previous year’s December. Counted with exports, Maruti’s sales grew at 50.6%.

Hyundai Motor 2009 sales up 10% vs 2008

Sales for Mahindra & Mahindra (M&M), a major player in the utility vehicles (UV) space with vehicles such as the Scorpio, Bolero and Xylo, grew at 122%. It sold 22,754 units last month compared to 10,253 units in December 2008.

Among motorcycle, leader Hero Honda said it sold 3.75 lakh units versus 2.15 lakh units year-on-year, a 74% growth. Hero Honda said it would launch new models across various segments by March.

The number two player in the segment, Bajaj Auto, has not yet released its December sales tally.

TVS Motor Company registered a domestic growth of 42% in December over the same month last year, selling 1,02,479 units compared to 72,355 units.





US STOCKS-Market dips but still set for best year since '03



Jobless claims fall to lowest level in 17 months

* Chicago PMI number revised downward

* U.S. stock indexes on track for best year since '03

* Dow off 0.5 pct, S&P off 0.4 pct, Nasdaq off 0.3 pct

* For up-to-the-minute market news, click STXNEWS/US



NEW YORK, Dec 31 U.S. stocks slipped on Thursday in the last trading session of 2009 as investors sold some of 2009's winners to lock in some of the year's strong gains and a reading on Midwest business growth was revised downward.

The US markets ended lower yesterday. The Dow Jones Industrial Average slipped 120.46 points, or 1.14%, at 10,428.05. The Standard & Poor's 500 Index shed 11.32 points, or 1%, at 1,115.10. The Nasdaq Composite Index declined 22.13 points, or 0.97%, to close at 2,269.15. Among 30 stocks from Dow 30 Index, the only gainer was JP Morgan.

Still, the three major U.S. stock indexes were on track to post their best yearly gains since 2003, with the bemchmark Standard & Poor's 500 index up 24 percent for the year.

The Dow is up 19.5 percent for 2009, while the Nasdaq is up 44.8 percent from its close on Dec. 31, 2008.

The December reading of the Institute for Supply Management-Chicago index, also known as the PMI or purchasing managers' index, was revised downward on Thursday from the level reported on Wednesday.

Industrials were among sectors leading the S&P's decline, with 3M (MMM.N) down 0.9 percent at $83.16.

Earlier on Thursday, the Labor Department said initial claims for jobless benefits fell to a 17-month low. While a drop in jobless claims is a bullish sign for the crucial labor market, some analysts indicated it could mean less government stimulus ahead.

Signs of economic strength, including a record percentage of companies beating profit expectations this year, have pushed the S&P 500 up more than 60 percent from its March 9 closing low.

The Dow Jones industrial average .DJI was down 53.43 points, or 0.51 percent, at 10,495.08. The Standard & Poor's 500 Index .SPX was down 3.99 points, or 0.35 percent, at 1,122.43. The Nasdaq Composite Index .IXIC was down 7.19 points, or 0.31 percent, at 2,284.09.

Oracle Corp (ORCL.O), one of the Nasdaq's best-performing stocks this year, was down 0.8 percent at $24.72.

Volume is expected to be light throughout the day, with many investors out for the holidays. By early afternoon, only 287.2 million shares had traded on the New York Stock Exchange, well below last year's daily closing average of 1.49 billion. U.S. financial markets will be closed on Friday for New Year's Day.

The broad S&P 500 is up 24.2 percent for 2009, on track for its best performance since 2003. That gain comes on the heels of the S&P 500's slide of 38.5 percent in 2008, when the economic crisis led to Wall Street's worst year since the Great Depression. [ID:nN30218732] [ID:nN30221050]

Despite this year's rally, Wall Street is also set to wrap up its first-ever negative decade on a total-return basis, even with dividends reinvested.

The Midwest business index was revised on Thursday to 58.7 in December from the 60.0 level that was reported on Wednesday. The employment component of the Chicago index was revised to 47.6 -- below the threshold of 50 that represents expansion. [ID:nNAT007226]

Walt Disney Co (DIS.N) was one of the Dow's best performers, up 0.6 percent at $32.48 after Marvel Entertainment Inc (MVL.N) shareholders approved a merger with Disney.





Harley-Davidson: Revving up to charm the Indian biker

The 170-year old company is the latest of the world’s leading motorcycle brands eyeing its share of the Indian bike market, which is the second largest market for two-wheelers after China. In a publicity event recently, the company offered its niche collection to Indian bike enthusiasts for test rides. The company will announce its initial product line-up along with prices at the upcoming Auto Expo in New Delhi. The starting price of a Harley-Davidson bike is expected to be upwards of Rs 7 lakh.



India imports about 200tn gold vs 420tn year ago

India's gold imports in December jumped to 32-35 tonnes provisionally from 3 tonnes a year ago, Gold imports in 2009 was "a little over 200 tonnes" versus 420 tonnes in 2008, Gold prices have been on a record-breaking spree in 2009, denting demand significantly in the price-sensitive country.

Happy 2010 !

We wish all our Investors & Traders a very Happy & Prosperous New Year !

Holiday on 1st Jan 2010 on the Occasion of New Year

First time the stock markets will remain closed today on the occasion of New Year.
I think this is not a new year day but a new Decade Day !
Happy Investing for the decade...