Sun, 15th May: IIP @ 7.3%, are we getting it right

India’s Industrial output registered a sharp rise in March, beating analyst estimates. Industrial output rose to a five month high of 7.3% in March. The smart rebound in factory output signals that overall consumer demand remains strong despite of rising borrowing rate. The IIP rose to almost double the revised 3.7% expansion in Feb, according to the data. Most of the prediction was near to the 4% mark. Some analyst could not digest a sharp rise in the IIP data and feeling in the market was that there is some catch in the data or the data is wrong. Markets reacted negatively after the data was released. Food Inflation drops to lowest since March 2009 to 7.7%. But still the Rate hike is there on the cards. Another round of rate hike will be there sooner or later. Major Indices closed flat on week on week basis. Midcap Indices rose 0.6%. Bank Nifty closed down 1% from its previous week close. Fmcg and Reality Index were the major gainers which climbed nearly 4% in a week. Healthcare sector which are generally considered to have defensive position in the portfolio rose nearly1.25%. Cap goods closed down 0.87%. IT index trimmed by 0.3%. HUL was the major gainer which rose nearly 11% in a single week. Bharti Airtel surged 5.5%. Healthcare Index gained but Sunpharma tanked nearly 4%. M&M lost 3.3% which Idfc, Hdfc and Maruti were down by 4.3%, 3.5% & 4.1% respectively in the Nifty Index. Nifty bounced back in the last week but on the last trading session. But as I mentioned that the gain could not sustain and Nifty will once again face resistance at 5640-5680 levels. Markets once again corrected. Nifty after taking support at its 23.6% retracement levels, bounced back on the last trading session of the last week. But started off with the next week with a bitter taste. Markets corrected for most of the week but gained on the last week to close the Nifty and Sensex almost flat on week on week basis. Nifty might have tried taking support at its 23.6 retracement levels once more but still we are not sure about the markets. Upside there’s lot of resistance levels at 5640-5680 levels. Downside if Nifty closes below 5450-5500 levels then we can surely see Nifty trading near 5200 in some days. If we look at a big picture in the Nifty chart. From mid Oct to the current levels, Nifty is been trading with the trend lines no. 1 & 2.In Mid March and Mid April nifty faced severe resistance at the trendline and corrected heavily 5900 levels to 5500. Nifty might again take support at the same and bounce back. 2 consecutive closes below the same will take the Nifty to 5200 levels. For rally, Nifty has to close above its 38.2% retracement levels or 5640 levels. This Weeks call Buy DLF above 132.5 with SL 228. Buy HDIL above 160 with SL 158. Buy LIC above 224.50 with SL 222.

Tuesday, May 10 - Morning brief for the stock market

Stocks To Watch: Hindalco, Mafatlal Ind, Oracle Financial, JB Chem
Tuesday, May 10 - Morning brief for the stock market:
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TOP EVENTS TODAY
* Nifty companies detailing Jan-Mar earnings:
+ Housing Development Finance Corp (Net seen 10.6 bln rupees, up 14% on year)
+ NTPC
+ Ranbaxy Laboratories (Net profit seen 1.63 bln rupees, down 83% on year)

* Jan-Mar, 2010-11 (Apr-Mar) earnings to be detailed by: Aeonian Investments, Asian Paints, Ashoka Buildcon, Amit Spinning Industries, Century Extrusions,
Chambal Fertilisers, Cimmco Birla, C & C Constructions, DS Kulkarni Developers, Elder Pharmaceuticals, GIC Housing Finance, GKW, Glenmark
Pharmaceuticals, GTN Textiles, Gujarat Apollo, GI Engineering, Hanung Toys, Hinduja Ventures, IG Petrochemicals, India Securities, Infinite Computer,
ISMT, J Kumar Infraprojects, JCT Electronics, Jubilant Life Sciences, Karur KCP Packkagings, Kemrock Industries, KSB Pumps, Lloyds Steel, Liberty
Shoes, NIIT, Nitta Gelatin, Oracle Financial, Patspin India, Rashtriya Chemicals, Sarla Performance, Seamec, Shree Renuka Sugars, Su-Raj Diamonds,
Sobha Developers, Tata Investment Corp, Techno Electric, Trigyn Technologies, Triveni Engineering and Voltamp Transformers.

* Annual General Meet of: ABB, and GM Breweries.
* Board Meetings of:
+ India Securities to mull allotment of securities.
+ Karur KCP Packagings to mull sale of land, building of Puducherry unit.
+ SUNGOLD CAPITAL to mull shr issue on warrant conversion, deal with theatres.


INDICATORS (previous session)
* NSE provisional net buy/(sale) in bln rupees, May 9: FII 1.96, DII (1.26)
* Institutional net buy/(sale) in bln rupees, May 6: FIIs (3.51), MF 3.93
* FII NSE futures net buy/(sale) in bln rupee, May 9: index 5.39, shr 2.53
* Sensex 18528.96, up 10.15 points; Nifty 5551.10, down 0.35 points.
* Crude: $102.5/bbl; Rupee: 44.72/$1; Gold: $1,503.2/ounce; 10-yr yld: 8.2624%
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OUTLOOK
* Domestic share indices are likely to open weak today as a rebound in crude oil
prices may weigh on sentiment. A downgrade of Greece's credit rating by
Standard & Poor's may also keep buying momentum low.
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GLOBAL STOCK MARKETS
* US: Indices ended up Tuesday led by commodity shares, which gained after oil and metal prices recovered.
* Asia: Indices were mixed today with a rebound in commodity prices lifting commodity shares, but Japan's Nikkei slipped as sentiment was hurt after
Standard & Poor's downgraded Greece's credit rating by two notches.
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SECTOR NEWS
* AUTOMOBILE: SIAM data shows local car sales rose 18.2% on year in April to 162,825 units, the slowest pace since June 2009.
Government-appointed Kirit Parikh panel suggest having an upfront tax on diesel vehicles to compensate for differential fuel pricing. (ToI)
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* CORPORATE: Anand Piramal, son of Piramal Group Chairman Ajay Piramal is set to join one of the group's real estate focused verticals. (HT)
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* ECONOMY: India's growth rate is seen at around 8.00% in 2011-12 (Apr-Mar), according to International Monetary Fund Director Anoop Singh.
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* FINANCIAL SERVICES: Supreme Court has asked Sahara India Real Estate Corp to provide a list of accredited agents selling optionally fully convertible
debentures on its behalf.
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* MUTUAL FUNDS: Dutch financial services group Aegon looking to surrender its licence to operate its Indian mutual fund. (ET)
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* OIL: India's crude oil basket slips to a 11-week low of $105.45 a barrel just two days before an Empowered Group of Ministers' meet to consider raising diesel
prices. (BS)
Essar Steel has moved court against the oil ministry's order asking RELIANCE INDUSTRIES to first fully meet the demand from fertiliser, power and cooking gas extraction plants before supplying to other industries such as steel, petrochemicals and refineries. (ToI)
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* PUBLIC SECTOR: Government may sell more stake in STEEL AUTHORITY OF INDIA next month, and in OIL AND NATURAL GAS CORP early July.
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* REGULATORY: SEBI may restart probe into the role of NSDL in the demat scam in the initial public offering of prominent companies in 2006.
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* RETAIL: Finance Minister Pranab Mukherjee says foreign direct investment in the sector will have to wait, as the government has not yet taken any decision
to open up the multi-brand retail sector. (HT)
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* TELECOM: Income-Tax department slaps 79-bln-rupees penalty on Vodafone International Holdings BV. (DNA)
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* TRANSPORTATION: Essar Projects, an Essar Group company, will invest 50 bln rupees in road projects next year. (FC)
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STOCKS
* ADANI POWER: Expects generation capacity to rise over three-fold to 6,000 MW by Mar 31.
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* ALLAHABAD BANK: Plans to raise $500 mln overseas to fund its Hong Kong business. (ET)
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* AUROBINDO PHARMA: Got 2.5 bln rupees in FY11 under the Pfizer sales pact for supply of generic drugs.
Is mulling restructuring its bulk drugs and formulations operations.
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* CORPORATION BANK: To increase its BPLR by 25 bps and Base Rate by 50 bps from May 17.
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* HCL TECHNOLOGIES: Has inked a pact with UAE's Etisalat to offer information, communication and technology services to the latter's customers.
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* HINDALCO INDUSTRIES: Jan-Mar net profit up 6.7% on year at 7.1 bln rupees while net sales rose 26% to 67.6 bln rupees.
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* JAYSHREE TEA: In talks with overseas fund houses and also with International Finance Corp to raise up to 1 bln rupees to finance tea garden buyout in Africa.
(DNA)
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* JB CHEMICALS & PHARMACEUTICALS: DR. REDDY's LABORATORIES in race to acquire the company's over-the-counter drug Doktor Mom. Deal could be in the range of $250 mln-$300 mln. (BS)
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* JSW ENERGY: Has commissioned unit III of the 1,200 MW Maharashtra project.
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* KOTAK MAHINDRA BANK: Raises deposit rates by 50 bps; BPLR and Base Rate also raised by 50 bps each.
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* LIC HOUSING FINANCE: Expects growth to slowdown to around 30% in the current financial year as high borrowing costs curb demand. (DNA)
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* LLOYDS STEEL: Looking to sell stake in its steel business; deal most likely to be done with promoters of UTTAM GALVA STEELS. (DNA)
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* MAFATLAL INDUSTRIES: Will hand over some Mumbai land for expansion of the zoo; will get saleable transfer development rights for the Mumbai zoo land transfer.
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* MAHINDRA & MAHINDRA FINANCIAL: Plans to enter South Korea, South Africa, and China where automobile major MAHINDRA & MAHINDRA has a strong presence. (BS)
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* MONOTYPE INDIA: Open offer for 20% stake in the company at 6 rupees a share will start Jun 24, end Jul 13.
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* MUNDRA PORT AND SPECIAL ECONOMIC ZONE: Plans to spend around 25 bln rupees over next three to four years, mostly to expand its port handling operations
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* ORACLE FINANCIAL SERVICES: Oracle Corp in preliminary discussions with potential bidders and investors to sell its software services unit. (ET)
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* RELIANCE INDUSTRIES: Cuts gas supply to non-core sectors such as steel companies and refineries. (PTI)
Has stopped supplying gas from its KG-D6 block to non-priority sectors like steel, oil refinery and petrochemicals as directed by the government.
Has cut its headcount for the third year in a row; is mulling accountability-linked pay to its staff. (PTI)
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* SARK SYSTEMS INDIA: Has bagged a 590-mln-rupee order to set up a data centre for nine districts of Andhra Pradesh.
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* SRF: Jan-Mar net profit 1.36 bln rupees as against 1.11 bln rupees year ago.
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* TATA MOTORS: Arm Jaguar Land Rover plans to raise 1 bln pound sterling by issuing dollar-denominated senior notes.
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* VARUN INDUSTRIES: Looking to invest 21 bln rupees to set up a pig iron plant in Karnataka. (DNA)
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* ZUARI INDUSTRIES: FY11 consolidated net profit 2.47 bln rupees as against 2.54 bln rupees in the previous year.

Monday, May 9 - Morning brief for the stock market

Stocks To Watch: Reliance Ind, PFC, SKS Micro, Piramal Healthcare
Monday, May 9 - Morning brief for the stock market:
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BIG PICTURE
* Top economic adviser to Prime Minister cuts India's economic growth estimate for 2011-12 (Apr-Mar) to 8.5% citing inflationary pressures. (var, Sat)
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TOP EVENTS TODAY
* Nifty companies detailing Jan-Mar earnings:
+ Hindalco Industries (Net profit seen at 5.95 bln rupees, down 10% on year)
+ Hindustan Unilever (Net profit seen at 4.53 bln rupees, down 22% on year)
* Jan-Mar, 2010-11 (Apr-Mar) earnings to be detailed by: Adani Power, ARSS Infrastructure Projects, Aurobindo Pharma, Bharat Bijlee Ltd, Gokul Refoils
and Solvent, Graphite India, Hathway Cable & Datacom, Hindustan Oil Exploration Co, Indian Bank, Indosolar, Kwality Dairy (India), Logix Microsystems, Mandhana Industries, Mundra Port and Special Economic Zone, Panasonic Home Appliances India Co, Pradip Overseas, Parekh Platinum, PTC
India, Sundaram Brake Linings, Supreme Infrastructure India, SRF, Thangamayil Jewellery, Thiru Arooran Sugars, Ruby Mills, Vakrangee Softwares, Vardhman
Acrylics, Whirlpool of India, and Zuari Industries.
* Board Meetings of:
+ Alka Securities Ltd, to consider fund raising.
+ Supreme Infrastructure India to mull issue and allotment of non-convertible, redeemable preference shares and investment in arms and other companies.
* Annual General Meet of: Federal-Mogul Goetze (India) and Ranbaxy Laboratories.
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INDICATORS (previous session)
* NSE provisional net buy/(sale) in bln rupees, May 6: FII (6.55), DII 10.18
* Institutional net buy/(sale) in bln rupees, May 5: FIIs (6.23), MF 2.11
* FII NSE futures net buy/(sale) in bln rupee, May 6: index 8.96, shr 7.74
* Sensex 18518.81, up 308.23 points; Nifty 5551.45, up 91.60 points
* Crude: $97.18/bbl; Rupee: 44.7900/$1; Gold: $1,491.6/ounce; 10-yr yld: 8.1741%
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OUTLOOK
* Domestic share indices may open slightly up, amid mixed cues from overseas equity markets, led by extended short covering. However, selling may emerge at
higher levels as crude oil prices have slightly rebounded to over $98 a bbl.
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WEEKLY SECTOR OUTLOOK
* AUTOMOBILE: Seen down on likely fuel price hike.
* BANKS: May rise on bargain buying and fall in crude oil prices.
* CAPITAL GOODS: Sentiment mixed; industrial production data eyed.
* CEMENT: Seen rangebound with a weak bias, tracking the broad market.
* FMCG: Seen in range tracking broad market.
* INFORMATION TECHNOLOGY: To trail broad market and remain rangebound.
* OIL & GAS: May rise on hope of fuel price hike.
* PHARMACEUTICAL: May gain on expectation of robust Jan-Mar earnings.
* STEEL: Seen positive post recovery in market on Friday.
* TELECOM: Seen weak with BHARTI AIRTEL likely to recover.
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GLOBAL STOCK MARKETS
* US: Shares ended up Friday as better-than-expected payrolls data for April eased concerns that higher fuel prices may slowdown US economic recovery.
* Asia: Indices were mixed today as better-than-expected jobs data from the US boosted investor confidence in world economic recovery, but a fall in shares
of Japan's Chubu Electric Power Co dragged down power shares.
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IPO WATCH
* Reserve Bank of India asks Tamilnad Mercantile Bank to list shares via an initial public offering. (ET, Sat)
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SECTOR NEWS
* AUTOMOBILE: Mercedes, BMW, Audi, Land Rover, and Renault to soon hike vehicle prices by up to 1 mln rupees in India. (ET)
* AVIATION: Aviation Secretary Nasim Zaidi says sector needs $30 bln investment over the next 15 years to keep up with demand. (ET, Sat)
Air India pilots call off 10-day strike after government agreed to reinstate dismissed pilots, acknowledge their union, and addressed
complaints. (var, Sat)
Competition Commission of India asks all low-cost airlines to explain fare hike in last 10 days. (BS, Sat)
Air India's delay in joining the global airline grouping Star Alliance is costing the airline 15-20 mln rupees a day in revenue. (DNA)
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* BANKING: The RBI and the government are unlikely to finalise guidelines for issuing licenses to new banks until parliament approves banking laws
(Amendment) Bill 2011. (HT)
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* CORPORATE: Ministry of Corporate Affairs has made cost audits mandatory from April, opening operational details of over 10,000 companies in 14
industries to government scrutiny. (ET, Sat)
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* ENVIRONMENT: Environment minister says he had cleared projects violating green norms under pressure and regrets those decisions. (HT, Sat)
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* EXPORTS: Commerce Ministry tightens norms on Deemed Export benefit scheme, which could save the exchequer 18 bln rupees annually. (ET, Sat)
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* GOVERNMENT SPENDING: The Planning Commission has recommended an aggressive cut in spending on subsidies, pension, and defence expenditure in order to mobilise resources for the 12th Five-Year Plan beginning next year. (ET)
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* IMPORT: RBI has asked banks to monitor any large or abnormal increase in the volume of rough, cut and polished diamond imports. (Mint, Sat)
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* INFORMATION TECHNOLOGY: UK-based Serco Group in talks to acquire private equity firm Blackstone's 66% stake in the unlisted business processing unit Intelenet Global Services. (ET)
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* INFRASTRUCTURE: Government is working on a system in which investors in infrastructure debt funds will not be allowed to exit for a few years. (ET,
Sat)
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* MICROFINANCE: Andhra Pradesh is opposed to the RBI's recent guidelines on the sector and has raised objection. (FC)
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* MINING: Supreme Court directs panel to probe into land encroachment in 99 Karnataka mines and says that work will stop if the mines are found guilty
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* OIL & GAS: BG India, RELIANCE INDUSTRIES, and OIL AND NATURAL CORP plan to invest at least $1 bln to arrest the fall in production from Panna-Mukta and Tapti oil and gas fields. (BS)
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* POWER: Nuclear Power Corp to set up coastal nuclear power plants in phases. (BL, Sat)
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* REAL ESTATE: Bank credit to commercial real estate has grown 21.4% in 2010-11. (FC)
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* REGULATOR: SEBI chief UK Sinha says not to reverse rules restricting mutual funds to pay commissions to distributors. (ET, Sat)
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* RETAIL: Employees working for branded garment sector may not be required to pay 10% excise duty, which was imposed by the government in the Union Budget for 2011-12 (Apr-Mar). (BS)
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* SHIPPING: Government says bidding for Jawaharlal Nehru Port Trust's fourth terminal will be delayed by at least two months as the Union Shipping
Ministry expects SC ruling on the project only by July. (DNA, Sat)
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* STEEL: Union steel secretary P.K. Misra expects 30 mln tn of steel-making capacity to be commissioned in the next two years. (ET)
Odisha government to resume acquiring land for Posco's proposed 12-mln-tn steel plant near Paradip from May 18. (ET)
Indian steel companies like TATA STEEL, JSW STEEL, JINDAL STEEL AND POWER, and STEEL AUTHORITY OF INDIA are mulling a consortium for mineral acquisitions overseas. (HT)
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* TELECOMMUNICATIONS: Delhi High Court defers bail pleas to five officials of telecommunications companies in 2G spectrum allocation scam to today.
(CNBC-TV18, Fri)
Central Bureau of Investigation court to hear Kanimozhi's bail plea in connection with her alleged role in the 2G spectrum scam on May 14. (CNN-IBN,
Sat)
Supreme Court has found grounds for initiating contempt proceedings against Sahara Group chief Subrata Roy for interfering with 2G scam probe.
(var, Sat)
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* RETAIL: Private equity fund Warburg Pincus in advanced talks to invest 1.5 bln rupees in IndiaMART.COM. (ET, Sat)
Spencer's Retail: May take another 18 months to break even after it expected to break even in FY11. (BS, Sat)
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STOCKS
* ANDHRA BANK: To hike Base Rate by 50 bps to 10% and Benchmark Prime Lending Rate by 50 bps to 14.25% from today.
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* AMRUTANJAN HEALTHCARE: Sets share buyback price at 900 rupees a share.
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* BAJAJ ELECTRICALS: Plans acquisitions in the consumer appliances space, to invest between 500 mln rupees and 4 bln rupees. (DNA, Sat)
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* BHUSHAN STEEL: Jan-Mar net profit at 2.88 bln rupees, against 2.41 bln rupees a year ago.
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* COAL INDIA: To produce coalmine methane and has selected five mines to set up projects for it. (DNA, Sat)
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* CRONIMET ALLOYS INDIA: To mull stock spilt on Friday.
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* CURA TECHNOLOGIES: Jan-Mar net profit at 3.87 bln rupees vs 7.58 bln rupees a year ago.
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* DALMIA CEMENT (BHARAT): Is evaluating options to buy out cement companies. (BS)
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* DEEPAK NITRITE: Jan-Mar net profit at 78.15 mln rupees vs 66.13 mln rupeesa year ago.
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* DEVELOPMENT CREDIT BANK: Hikes Base Rate and Benchmark Prime Lending Rate by 50 bps each.
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* DHANLAXMI BANK: Nandan Nilekani, chairman of Unique Identification Authority of India acquires 1.2% stake in the bank. (ToI)
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* EICHER MOTORS: Jan-Mar net profit at 144.8 mln rupees vs 92.3 mln rupees a year ago.
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* FEDERAL BANK: Jan-Mar standalone net profit at 1.72 bln rupees vs 1.17 bln rupees a year ago.
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* FIRST WINNER INDUSTRIES: Jan-Mar consolidated net loss at 1.86 mln rupees, against 1.67 mln rupees a year ago.
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* GODREJ PROPERTIES: Jan-Mar consolidated net profit at 599.86 mln rupees vs 574.96 mln rupees a year ago.
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* GOODRICKE GROUP: Jan-Mar net loss at 259.5 mln rupees, against 228.0 mln rupees a year ago.
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* GREAT EASTERN SHIPPING: Jan-Mar consolidated net profit at 107.8 mln rupees vs 1.56 bln rupees a year ago.
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* GUJARAT CREDIT CORP: Jan-Mar net loss at 2.11 mln rupees versus 0.14 mln rupees a year ago.
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* GVK POWER AND INFRASTRUCTURE: FY11 consolidated net profit at 1.549 bln rupees vs 1.558 mln rupees a year ago.
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* HENKEL INDIA: JYOTHY LABORATORIES makes open offer for 20% more stake in the company at 41.20 rupees a share.
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* HINDOOSTAN SPINNING AND WEAVING MILLS: Bombay High Court approves merger of company with SIRDAR CARBONIC GAS CO.
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* HINDUSTAN UNILEVER: Has given its highest bonus in recent years to managers, including the leadership team. Senior and mid-level managers have earned bonuses of up to 4 mln rupees and 2 mln rupees, respectively. (ET)
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* HOUSING DEVELOPMENT AND INFRASTRUCTURE: To seek dismissal of court case on project at Bandra-Kurla Complex, Mumbai.
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* ICICI BANK: Has hiked Base Rate by 50 bps to 9.25% and Benchmark Prime Lending Rate by 50 bps to 18.00% from Saturday.
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* INDIAN BANK: Is looking to hire merchant bankers for its planned 610-mln-rupee follow-on issue. (DNA)
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* INDIAN EXTRACTIONS: To merge Phthalo Colours & Chemicals with self and also exit solvent oil extraction and edible oil business.
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* INFOSYS TECHNOLOGIES: Chief Financial Officer V. Balakrishnan will takeover as chairman of Infosys BPO. Chief Executive Officer S.D. Shibulal would be the new chief of Human Resources. (FE)
Infosys said negative sentiment about outsourcing in countries such as US, and UK could affect its business prospects. (PTI)
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* JET AIRWAYS: Plans to bring all its low-fare operations under the Jet Konnect brand and phase out the JetLite brand completely. (DNA)
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* KESAR ENTERPRISES: Jan-Mar net profit at 99.09 mln rupees versus 38.35 mln rupee loss a year ago
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* KESORAM IND: Vasavadatta Cement plans 10-bln-rupee investment to set up new plants and capacity expansion at its existing facilities. (FE)
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* KINGFISHER AIRLINES: Company is waiting for the right time to begin selling global depository receipts to raise around $300 mln. (var, Sat)
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* KSK ENERGY VENTURES: Jan-Mar net profit at 376.55 mln rupees vs 948.71 mln rupee a year ago.
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* LAKSHMI VILAS BANK: To hike Base Rate by 50 bps to 10% and Benchmark Prime Lending Rate by 50 bps to 16.50% from today.
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* LUPIN: Plans second acquisition in Japan. (BS, Sat)
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* NETWORK18 MEDIA AND INVESTMENTS: To raise 3 bln rupees via preferential issue of 18.69 secured optionally fully convertible debentures to promoters.
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* NICCO PARKS & RESORTS: Jan-Mar net profit at 10.90 mln rupees versus 10.80 mln rupees a year ago.
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* NMDC: Is likely to buy 50% stake in two iron ore mines in Australia this month. (FC)
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* NOVA IRON: Jan-Mar net loss at 19.00 mln rupees versus 36.33 mln rupees a year ago.
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* OIL AND NATURAL GAS CORP: Oil ministry is examining a plan to increase ONGC Videsh's power of deciding investments worth up to 30 bln rupees from the current 3 bln rupees. (ToI)
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* PARSVNATH DEVELOPERS: Chandigarh project in arbitration with Chandigarh Housing Board. (DNA, Sat)
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* PATNI COMPUTER SYSTEMS: Is set to see top level management exits as iGate starts integration process. (BS, Sat)
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* PBA INFRASTRUCTURE: To sell entire 49% stake in Aurangabad Jalna Toll Way to Sadbhav Infrastructure Project.
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* PIRAMAL HEALTHCARE: Jan-Mar consolidated net profit at 2.02 bln rupees versus 1.54 bln rupees a year ago.
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* PIRAMAL LIFE SCIENCES: To de-merge new chemical unit and merge it with PIRAMAL HEALTHCARE.
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* POWER FINANCE CORP: Follow-on-public offering price band set at 193-203 rupees per share.
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* POWER GRID CORP: Likely to finalise a contract for leasing out its tower infrastructure by month-end. (BS)
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* RELIANCE INDUSTRIES: Has debunked charges that KG-D6 output fell due to non-drilling of an adequate number of wells. (PTI)
Has cut down US lobbying expenses to record low. (BS)
UK's Hardy Oil and Gas Plc will not exercise the option to raise stake in Reliance Industries' operated gas block. (PTI, Sat)
Welspun Maxsteel, ISPAT INDUSTRIES, and Essar Steel move court against company for cutting gas supply to them from today. (BS, Sat)
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* RURAL ELECTRIFICATION CORP: To sell its first bonds denominated in yen as rupee-denominated finance costs rise. (var, Sat)
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* SANDU PHARMACEUTICALS: Jan-Mar net profit at 2.12 mln rupees versus 2.28 mln rupees a year ago.
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* SATYAM COMPUTER SERVICES: PricewaterHouse Coopers has compensated foreign investors in the company with a $ 25.5 mln payout, and will not give domestic investors anything. (HT)
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* SKS MICROFINANCE: Jan-Mar net loss at 697.68 mln rupees versus 628.93 mln rupees a year ago.
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* STATE BANK OF BIKANER AND JAIPUR: Hikes Base Rate by 50 bps to 9.25% and Benchmark Prime Lending Rate by 50 bps to 14.25%.
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* STATE BANK OF TRAVANCORE: Hikes Base Rate by 50 bps to 9.50% and Benchmark Prime Lending Rate by 50 bps to 14.25%.
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* STERLITE INDUSTRIES: Has cut copper prices by 4% to 457,261 rupees per tn from May 1 valid for this month. (Bloomberg, Fri)
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* TATA COMMUNICATIONS: Is looking at bringing its retail broadband unit under the ambit of small and medium businesses. (ToI)
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* TATA ELXSI: To hire 900 more employees in FY12. (BL, Sat)
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* TATA MOTORS: Company-owned Jaguar Land Rover to build a 700,000-pound petrol- electric hybrid super car that will go on sale in the second half of 2013.
Jaguar to spend $8 bln on new cars in next five years and roll out 40 new models in 60 months. (DNA, Sat)
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* UNITED BANK OF INDIA: Has hiked Base Rate by 55 bps to 10% and Benchmark Prime Lending Rate by 75 bps to 14.25% from Friday.
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* VARUN INDUSTRIES: Approves 10-mln-share issue via qualified institutional placement, private placement, and a rights issue of shares.
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* VISAGAR POLYTEX: To mull bonus share issue today.

Obama’s Dead…..???? I mean Osama…

Oh am sorry. Osama’s dead. This was just a spelling mistake by me. But does u expect the same thing from the India media players. They actually made this do. Leading News channel actually showed this “OBAMA DEAD” instead of “OSAMA”.

So are our Indian investors. Hahaha… FII sold almost 6400 Cr of equity in the Indian markets from 25^th Apr to 5^th May.

As mentioned in the last article 50bps rate hike is there on the cards.

India’s economic growth could slow in the short term after the Reserve Bank of India on Tuesday raised its key policy rate by 7.25% to make money dearer and tame runway inflation. Savings bank rate up by 50bps to 4%. Repo Rate up by 50bps to 7.25%. Reverse Repo rate up by 50bps to 6.25%. Bank Rate, Cash reserve Ration were kept unchanged at 6%. Car loans and Home loans become more costly. This will sure impact the already hit Reality sector. Banking and the Reality stocks tanked immediately after the RBI surprised everyone by raising 50bps. Every one expected a 25bps increase in this policy to balance the growth and inflation. But the hike of 50bps seems to have been concentrated only in controlling the rising inflation only.

Portugal is not the third Euro zone country to do a debt rescue deal with the European Union and IMF, announcing a Euro 78bn. Bank of England (BOE) announced that it has maintained official Bank rate paid on commercial bank reserves to 0.5% despite updating its growth and inflation projections.

In the past also we have seen that the Indian markets have mostly corrected in the month of May. In 2006, 2008, 2010 and now in 2011 also. As mentioned in the earlier article also that in the Nifty chart we can see that there is a Double Top formation and the Nifty corrected from there onwards. Nifty made a recent high of 5944 and cracked since then. Nifty faced resistance at 61.80% retracement levels and continued to correct. In the last week Nifty corrected took support at its 200DMA. But even the Mother of all support i.e 200DMA could not support the market and the Nifty continued its slide. Within 2 days nifty closed below its 100DMA and 38.2% retracement levels. The break of the 38.2% levels indicated heavy selling pressure and the same continued till the time the Nifty tested its 23.6% retracement levels. (See the chart).

On Thursday, Nifty took support at its 23.6% retracement levels and bounced back sharply on the next day. Sensex jumped nearly 330 points in intraday and close higher nearly 303 points. Nifty on the last day of the trading week closed 1.68% or 91.60 points higher. The loosing 10 loosing streak was stopped on the last day of this week.

FII have been Net sellers since past two week. DII being buyers in the markets could not stop the falling markets. Commodities corrected heavily. Silver after having its dream run shrinked nearly about 55K from its high of 75K in the last week. Crude too corrected heavily on the news that after the Libya issue is solved the world will get some relief from the shortage of the fuel and the rising crude price.

Indian markets corrected almost more that 4% in just days of the start of the week but had a relief rally on the last day of the trading session. As mentioned in my earlier article also the Nifty if close below the 5700 levels will continue the slide show till 5635 levels, that’s where the 38.2% retracement level could have given support. Heavy selling by the FII’s triggered the panic button amongst many. Nifty broke the 38.2% levels, and that’s where triggered another round of selling spear. There was no support till the 23.6% retracement levels. And it did happen the same way. With absolutely less volumes markets collapsed.

Nifty is nearing its over sold zone. But there is still lot of time for fresh buys in the market. Nifty bounced back and closed at 5551 levels. Nifty will face resistance at its 38.2% retracement levels. Journey towards the top will be extremely hard. In the article dated 21^st Apr, the writer had mentioned that the Nifty movement will be capped and the journey will be very hard. Nifty will continue to have support at 5450 levels. Close below the same will take the Nifty to 5200 levels with some supports at 5350-5300. Upside it will continue to face resistance at 5640-5680 levels.

Last weeks call

Sell Adani below 620 SL 624. Made a low of 600.

Sell Bharti Airtel below 377 SL 381. Made a low of 345

Sell DLF below 219 SL 222. Made a low of 214.

Sell Federal Bank below 414 SL 418. Made a low of 395.

Sell IOB below 151 SL 152.50. Made a low of 150.

Sell Jai Prakash Ass with SL of 94.50. Made a low of 82.30

Sell Lic housing below 217 SL 219.5. Made a low of 197.50

Sell SBI below 2800 SL 2809. Made a low of 2562.

Monday, May 2 - Morning brief for the stock market

Stocks To Watch: Infosys, Camlin, Hero Honda, automobile cos

Monday, May 2 - Morning brief for the stock market:

TOP EVENTS TODAY

* Trade data for March to be detailed by commerce & industry ministry.

* Manufacturing PMI for April to be detailed by HSBC.

* Jan-Mar earnings to be detailed by: ABC Bearings, Alembic, Allahabad Bank, Andhra Sugars, Arrow Textiles, Bank of India, CEAT, Century Enka, Century Textiles & Industries, Delta Magnets, GlaxoSmithKline Consumer Health, Godrej Consumer Products, Harita Seating Systems, Indian Overseas Bank, International Travel House, Jamna Auto Industries, Marico, New Delhi Television, Sunteck Realty, and South Indian Bank.

* Board Meetings of:

+ Tata Capital, to consider scheme of arrangement between Tata Capital and Tata Capital Financial Services.

INDICATORS (previous session)

* NSE provisional net buy/(sale) in bln rupees, Apr 29: FII (6.90), DII (0.61)

* Institutional net buy/(sale) in bln rupees, Apr 28: FIIs (2.7), MF 2.96

* FII NSE futures net buy/(sale) in bln rupee, Apr 29: index (12.4), shr (3.53)

* Sensex 19135.96, down 156.06 points; Nifty 5749.50, down 35.95 points

* Crude: $113.33/bbl; Rupee: 44.21/$1; Gold: $1,545.50/ounce; 10-yr yld: 8.1332%

OUTLOOK

* Domestic share indices may open slightly higher on positive cues from overseas markets but trade may remain rangebound as investors may keep positions light ahead of the Reserve Bank of India's Monetary Policy Statement for 2011-12 (Apr-Mar) on Tuesday.

WEEKLY SECTOR OUTLOOK

* AUTOMOBILE: Down if RBI hikes interest rates 50 bps.

* BANKS: In range; RBI policy, Jan-Mar earnings eyed.

* CAPITAL GOODS: Seen lacklustre; RBI policy eyed.

* CEMENT: Seen positive; Apr despatches data eyed.

* FMCG: Up on defensive buying; Marico eyed.

* INFORMATION TECHNOLOGY: Seen under pressure; Infosys in focus.

* OIL & GAS: Seen sluggish as crude oil strengthens.

* PHARMACEUTICAL: Seen up on defensive buy; earnings eyed.

* STEEL: Seen subdued; RBI policy eyed.

* TELECOM: Seen down; RBI policy eyed.

GLOBAL STOCK MARKETS

* US: Share indices ended higher Friday, with April being the best month of trade as companies reported robust earnings and also as the US Federal Reserve kept its interest rates low for an extended period..

* ASIA: Key Asian share indices were trading near their four-month high today tracking the rise on Wall Street on Friday.

SECTOR NEWS

* AVIATION: Air India cancels 90% of flights on the fifth day of pilots' strike. (Var)

US disappointed, but "respects" India's policy in combat plane deal.

* BANKING: Private banking customers have accused Standard Chartered Bank of selling debentures with buyback option, but later backing out of deal. (ET, Sat)

* COMMODITIES: The empowered group of ministers on food is likely to meet today to decide on extension of edible oil import scheme for subsidised sale.

Cotton Corp of India Chairman B.K. Mishra has said the recent surge in prices may see India's cotton acreage and production rise 5-10% in the crop year starting July.

* ECONOMY: India's March industrial workers' inflation based on consumer price index unchanged on month at 8.82%.

Minister of State (Planning) and Parliament Affairs Ashwani Kumar has said India needs to aim at 4% farm growth in 12th Five-Year Plan.

* EXCHANGES: The Reserve Bank of India has notified that banks can issue irrevocable payment commitments to stock exchanges on behalf of foreign institutional investors for purchase of shares under the Portfolio Investment Scheme.

* FUNDING: The Reserve Bank of India's data shows companies raised $5.63 bln via external commercial borrowing in March.

* IPO: The Securities and Exchange Board of India wants merchant bankers to inform investors about their past record in handling issues at the time of every public offer. (DNA)

* METALS: TATA STEEL Vice-Chairman B. Muthuraman has said India's steel imports are seen at 10 mln tn in 2011-12 (Apr-Mar), nearly 43% higher on year. (Mint)

* MINING: In an ad-interim order, the Supreme Court has suspended iron ore mining in 19 lease areas in the Bellary district of Karnataka.

* PRIVATE EQUITY: Apollo Global Management will partner ICICI Venture to launch a $750-mln special situation fund. (BS, Sat)

* TEXTILES: The government has restructured Technology Upgradation Fund Scheme to boost investment in technology in textile and jute sectors.

STOCKS

* A2Z MAINTENANCE: Has secured a 1.22-bln-rupee-order from MP Madhya Kshetra Vidyut Vitaran Co.

* AGRO TECH FOODS: Has posted net profit of 317.8 mln rupees for 2010-11 (Apr-Mar), and net sales of 7.19 bln rupees for the year.

* ALOK INDUSTRIES: Jan-Mar net profit 1.6 bln rupees, net sales 22.03 bln rupees.

.

* AMBUJA CEMENTS: Holcim buys 3.56% more stake in the company thorough open market, taking its total stake to 50%.

* AMTEK AUTO: Jan-Mar net profit 623.5 mln rupees, net sales 4.61 bln rupees.

* AMTEK INDIA: Jan-Mar net profit 370.2 mln rupees, net sales 3.69 bln rupees.

* BAJAJ HINDUSTHAN: Has posted Jan-Mar net profit of 728.2 mln rupees. Plans to raise up to 20 bln rupees via rights issue.

* BHARTI AIRTEL: Plans to raise $1 bln through global bonds issue. (ET)

* CAMLIN: Promoter Dandekar family has decided to sell a majority share in the company to Japan's Kokuyo Co. (BS)

* CAN FIN HOMES: Jan-Mar net profit 128.73 mln rupees, net sales 650.69 mln rupees.

* DABUR INDIA: Is in talks with Ajanta Pharmaceuticals to buy the latter's over-the-counter energiser brand 30-Plus. (ET)

* EID PARRY (INDIA): Jan-Mar net profit 1.61 bln rupees, net sales 4.14 bln rupees.

* EVEREST INDUSTRIES: Jan-Mar net 106.2 mln rupees, net sales 1.97 bln rupees.

* FEDERAL-MOGUL GOETZE: Jan-Mar net profit 149.9 mln rupees, net sales 2.57 bln rupees.

* FINOLEX INDUSTRIES: Has posted net profit at 87.8 mln rupee for Jan-Mar, and net sales at 6.94 bln rupees.

* GHCL: Jan-Mar net profit 257.2 mln rupees, net sales 4.47 bln rupees.

* GREAVES COTTON: Jan-Mar net profit 466.6 mln rupees, net sales 4.52 bln rupees.

* HEG: Jan-Mar net profit 343.6 mln rupees, net sales 2.81 bln rupees.

* HEIDELBERGCEMENT: Jan-Mar net profit 259.9 mln rupee, net sales 2.72 bln rupees.

* HERO HONDA: Munjals' Hero Group and Japan's Honda Motor Co have struck a new licensing agreement under which their erstwhile Indian joint venture company will pay a total of 25 bln rupees to the Japanese automobile giant through 2014.

Has appointed creative firm Law & Kenneth to develop communication strategy for launching and establishing its new brand entity. (BS)

* IDFC: Jan-Mar consolidated net profit 2.87 bln rupees, income from operations 13.0 bln rupees.

* INFOSYS TECHNOLOGIES: Has appointed K.V. Kamath chairman, S. Gopalakrishnan executive co-chairman, and S.D. Shibulal chief operating

officer and managing director.

* JAIN IRRIGATION SYSTEMS: Jan-Mar net profit 1.09 bln rupees, net sales 12.0 bln rupees.

International Finance Corp plans to invest up to $5 mln in a non-banking finance company being set up by the promoters of Jain Irrigation.

* JUBILANT INDUSTRIES: To mull agricultural and performance polymers operation recast.

* KAJARIA CERAMICS: Jan-Mar net profit 184.3 mln rupees, net sales 2.81 bln rupees.

* MADHUCON PROJECTS: Jan-Mar net profit 192.9 mln rupee, net sales 5.93 bln rupees.

* MANAPPURAM GENERAL FINANCE: Approves raising funds through debentures.

* PNB GILTS: Jan-Mar net profit 76.18 mln rupees, net sales 222.25 mln rupees.

* RALLIS INDIA: Jan-Mar net profit 190 mln rupees, net sales 2.34 bln rupees.

* RELIANCE INDUSTRIES: The petroleum ministry has sought security clearance from the home ministry for the company's proposed deal with BP. (FE)

Output from the company's D1 and D3 showcase gas fields, which has seen a sharp fall in output in recent months, is expected to drop further in 2012-13. (ToI)

* SHOPPERS STOP: Jan-Mar consolidated net profit 77.18 mln rupees, income from operations 6.06 bln rupees.

* SIEMENS: Parent Siemens Aktiengesellschaft buys 19.7% in the company through open offer, taking its stake to 74.4%.

* SINTEX INDUSTRIES: Has posted consolidated net profit of 4.6 bln rupees for 2010-11 (Apr-Mar), net sales 44.75 bln rupees.

* STEEL AUTHORITY OF INDIA: Has reported a 28% on-year drop in Jan-Mar net profit to 15.07 bln rupees mainly on higher coking coal prices and rise in employee costs.

* STERLITE TECH: Jan-Mar net revenue 6.82 bln rupees, Jan-Mar net profit 103 mln rupees.

* SUN PHARMA: The company's promoters are planning a 50-bln-rupee foray into the power sector. (ET)

* TATA MOTORS: Plans to launch a small car Nano model that will run 40 km on 1 ltr diesel. (BS, Sat)

Nano sales in April grew 184% on year to 10,012 units in April. (Var)

* TITAN INDUSTRIES: Has posted net profit of 4.3 bln rupees for 2010-11 (Apr-Mar), net sales of 65.2 bln rupees. To pay 25 rupees a share dividend.

Approves 10-for-1 stock split, and 1-for-1 bonus share issue.

* TVS MOTOR CO: Registered sales of 167,744 units in April, up 14% on year. (var)

* UFLEX: Jan-Mar net profit 633.7 mln rupees, net sales 5.94 bln rupees.

* UNITED SPIRITS: Jan-Mar net profit 774.4 mln rupees, net sales 15.97 bln rupees.

Rate hike on the cards

50 bps rate hikes is on the cards. Markets triggered selling pressure on back of hike in bank rates to control the rising inflation. Reality sector may again see some selling as the sector is going through its bad faze. New bookings are down nearly 30%. Investors are still holding on the price making it difficult for new buyers to step in. Prices have to correct as to get the new buyers.

Meanwhile in US, businesses ordered more aircraft, autos and computers in March, underscoring the resurgence of manufacturing this year. New jobless claims in the US fell last week, brightening the longer term outlook and signalling that lay-offs were slowing and employers may be ready to start hiring soon. First-time claims for unemployment benefits fell 5,000 to 382,000 in the week ending March 19, from a revised 387,000 the week before, according to the labour department. The fall was in line with economists’ forecasts and brought the less volatile four-week average down to 385,250, its lowest level since July 2008. The Federal Reserve signaled that it is in no rush to scale back its extensive support for the US economy and kept the interest rates unchanged at 0.0-0.25% and the discount rate at 0.75%.

In my last article I had given some reason to buy silver. But after making an all time high Silver corrected sharply on back of traders booking profits. The White metal fell almost to Rs.65000 but bounced back immediately to trade above Rs.70000 in the same week. If the silver corrects investors should not worry about their position. Investors can hold on to their position for a longer period also.

Indian markets after making a small Doji like pattern on the chart, corrected heavily. Nifty made a high of 5906 and low of 5706 but closed at 5749. Nifty find support at 5700 levels.

Last week this writer mentioned that Nifty will find resistance at 5900 and close above the same will take it to 6000 levels. But Nifty could close above the same and corrected to fall below 5800 within days. I had also mentioned that the Nifty can fell down to 5935 levels and it did.

On the charts Nifty made Double top and corrected. In the chart we can clearly see that the nifty faced resistance at 61.80% retracement levels. Nifty took support at its 200DMA after felling from its 20DMA. Nifty if closes below 5735 may fall till 5650 levels. Nifty took support at its 100 DMA. MACD has given negative divergence and the Nifty triggered selling pressure. Below 5705 Nifty will come down till 5635 levels. In the past also nifty had faced resistance at 5900 levels and support at 5700 levels. Either side movement will see a fast movement. Upside movement seems to be slightly difficult.

Last weeks call

Buy Bajaj Auto close above 1470 SL 1459. Made a high of 1500.

Sell Bhel below 2048 SL 2059. Made a low of 1975.

Buy Dlf above 253 SL 247. Did not trigger the price.

Buy Hdfc bank above 2417 SL 2405. Made a high of 2441 & triggered SL.

Buy Hdfc above 738 SL 731. Did not trigger the price.

Sell Pfc below 227 SL 228.50. Made a low of 220.50.

This weeks call

Sell Adani below 620 SL 624.

Sell Bharti Airtel below 377 SL 381.

Sell DLF below 219 SL 222.

Sell Federal Bank below 414 SL 418.

Sell IOB below 151 SL 152.50.

Sell Jai Prakash Ass with SL of 94.50.

Sell Lic housing below 217 SL 219.5.

Sell SBI below 2800 SL 2809.