GMR Infra and Punj Lloyd Q4 results

GMR Infrastructure has announced its fourth quarter consolidated results. Its Q4 consolidated net loss at Rs 1,007 crore versus profit of Rs 73 crore.

Punj Lloyd has announced its fourth quarter consolidated results. Its Q4 consolidated net sales were up 29% at Rs 2,192 crore versus Rs 1,700 crore

Nifty holds 5500

Equity were positive in the opening trade, supported majorly by positive Asian markets. Financial, technology, capital goods and healthcare stocks were witnessing buying interest. The Nifty was hovering around the 5500 level.

Among largecaps, SBI, Axis Bank, PNB, Sun Pharma, Cipla, HDFC Bank, Hero Honda, HDFC, L&T, Jaiprakash Associates and Reliance Industries were leading the markets higher.

Watch out for todays STOCK

Bharat Forge had fallen nearly 9% on the day of its results from Rs 330 to Rs 304.50. Since then, it has corrected back to Rs 317.05. This correction in price, however, has taken place on low volumes.View chart.
 

Cipla moved up sharply on Thursday on account of the rolling over of its position. However, the  stock could not cross it on Friday. On a much lower volume, the stock was down marginally at Rs 318.85. The stock, technically looks weak and can come down to Rs 305 level.View chart.


Bank of India has been trying to penetrate the Rs 440 level over the last three days, but has met with selling pressure around those levels. A weakness in the market can take the stock down to Rs 420.View chart.

PFC fell below the FPO price on Friday, but closed near the high of the day at Rs 199.50. We were bullish on the stock above Rs 201, which was not triggered on Friday. The high volume at the FPO level suggests that selling is being absorbed. Once the selling pressure is eased, the stock can bounce back sharply. We remain bullish on the stock above Rs 201.View chart.

JP Power, too, moved up on Thursday due to the rolling over of derivative position. A bullish Friday did little to help the stock cross Rs 50, which was also the high of Thursday. The stock closed at the low of the day at Rs 48.70. Further weakness can push it down to Rs 46.View chart.

Along with other banking stocks, Canara Bank too bore the brunt and touched a 6-month low on announcement of its results. The stock hit a low of Rs 494 after the announcement of its results and has since then moved up to Rs 541.75 by Thursday. The rise, however, was on lower volumes. On Friday, the stock closed near the low of the day, which was below Thursday’s close. The stock can go down to Rs 510, below the low of Friday at Rs 533.View chart.

Mahindra & Mahindra moved up sharply on Friday with a near 3% rise to Rs 704.90. The company is expected to announce its results on Monday and is likely to post a net profit of around Rs 700 crore for the fourth quarter. A lower than expected result can leave the stock crashing to Rs 670 mark. A move below Rs 700 can be used as an entry trigger.View chart.

We have been bullish on Aurobindo Pharma as the stock had dived after receiving a warning letter from the USFDA. We have been triggered in the stock above Rs 165.30 with a target of Rs 170. We maintain the target.View chart.

Though analysts have been bullish on Ranbaxy, the stock has not moved in line with the expectations. The stock has not been able to cross the high of Thursday and has been drifting on lower volumes. A weak market can take the stock down to the Rs 480 level.View chart

Unitech Q4 net profit

Unitech has announced fourth quarter results of the financial year 2011. The company clocked revenues of Rs 1055 crore versus Rs 659.79 crore in the last quarter. Its net profit was much lower at Rs 100 crore versus Rs 111 crore, QoQ. EBIDTA stood at Rs 162 crore versus Rs 208 crore, QoQ.

Oil may gain this week

Oil prices may gain this week as investors expect stronger Asian demand to pick up the slack from a slowdown in the developed market, according to the survey. US crude futures last week rose as high as USD 101.90 a barrel, taking the weekly gain to 0.5%, after leaders of the Group of Eight said the global economy is strengthening, and as the dollar dropped to a one-week low against the euro.
Also read: US oil dips on home sales data, OPEC

Nifty gains

Indian equity started the first trade of week on a positive note amid volatility, supported by heavyweights. Asian markets too were trading in the green.

DLF, ONGC, Sun Pharma, SBI, ICICI Bank, L&T, Reliance Industries, Sterlite Industries, SAIL, BPCL, Ranbaxy Labs and HCL Tech were leading the markets higher in early trade.

However, Cairn was down 3%. Tata Steel was flat. At 9:19 hours, the 50-share NSE Nifty was trading at 5,495, up 19 points and the 30-share BSE Sensex gained 69 points at 18,335. 

Jai Balaji, Havells India and Sunflag Iron anounced the Q4 results

Jai Balaji Industries has declared its fourth quarter results. The company's Q4 net profit was up at Rs 32 crore versus Rs 15.2 crore.

Sunflag Iron has announced its fourth quarter results. The company's Q4 net profit was down at Rs 17 crore versus Rs 32 crore.

Havells India has announced its fourth quarter results. The company's Q4 net profit was up at Rs 69 crore versus Rs 65.8 crore.

Asian stocks rise

Asian stocks posted solid gains for a second consecutive day on Friday as market players scooped up bargains while the euro pushed higher, though the currency's gains may be limited for now as fears of a Greek default weighed on sentiment.

Noting the chunky gains in Asian stocks, European stock index futures pointed to early gains while the S&P e-mini futures rose 0.1%, suggesting a higher start on Wall Street later in the day.

Sensex UP

The market witnessed smart moves and showing no sign of weakness. Strong buying emerges from bank, oil & gas, realty and metal stocks while auto stocks were trading in negative terrain.

At 12.36 hrs IST, the Sensex was up 180.21 points at 18224.85, and the Nifty up 56.95 points at 5469.30.

Returns on Sensex

When inflation is chipping away at the real value of your money, paper wealth goes up in smoke faster than ever.Rising inflation in 2010-11 has not only seriously diluted returns on the Sensex, it has also negatively impacted an already lopsided performance of the 30 individual Sensex stocks.


Read full Story

Economic Slowdown

US stocks fell on Thursday following a rise in weekly jobless claims that added to concerns about an impending economic slowdown, while Goldman Sachs lowered its forecast for the S&P 500 index.

Initial jobless claims unexpectedly rose in the latest week and remained at elevated levels. Gross domestic product rose at an annual rate of 1.8% in the first quarter, unchanged from the previous estimate and down from analysts' expectations for more robust growth.

New Expiry series kicked off

The new expiry series kicked off on a positive note in the opening bell. Asian markets were trading firm.

At 09.18, the Sensex was up 59.60 points at 18104.24, and the Nifty was up 25.65 points at 5438.

Top gainers on the Sensex were ICICI Bank at Rs 1,046 up 1.98%, HDFC at Rs 652.75 up 1.53%, Bharti Airtel at Rs 372.90 up 1.30%, DLF at Rs 219 up 1.25% and TCS at Rs 1,145.75 up 1.17%.

Top losers on the Sensex were Tata Motors at Rs 1,131.95 down 2.52%, Hero Honda at Rs 1,860.00 down 0.69%, Tata Power at Rs 1,198.20 down 0.14%, HUL at Rs 306.30 down 0.02%.

FY11 results has announced HPCL

Hindustan Petroleum Corporation, HPCL has announced its FY11 results. The company's FY11 consolidated net sales were up at Rs 1.38 lakh crore versus Rs 1.11 Lakh crore.
Its consolidated net profit was up 15% at Rs 1,703.6 crore versus Rs 1,475.3 crore.

Google, Facebook warn on Internet rules

Google Inc Chairman Eric Schmidt and Facebook founder Mark Zuckerberg warned governments to tread lightly on Internet regulation because moves to tame its rough edges risked hurting its virtues.

At the conclusion of a two-day forum in Paris, their comments exposed deep rifts between tech titans, academics and policy makers even as they tried to agree on a message to take to world leaders at the Group of Eight industrialized nations meeting on Thursday in Deauville, France.

What is the G8 and what does it do?

Diesel and LPG likely to be hiked next month

After petrol, price of diesel, LPG and kerosene are likely to be hiked next month when a ministerial panel headed by Finance Minister Pranab Mukherjee meets to decide on passing rise in crude rates to consumers.
"The Empowered Group of Ministers (EGoM) has been scheduled to meet on June 9," a top oil ministry official said. "Price of diesel, LPG and kerosene will have to go up.

Rs 4 per litre increase in diesel and at least Rs 20-25 per 14.2-kg cylinder

Some Important Terms used in Share Market

SEBI : The regulatory body for the investment market in India. The purpose of this board is to maintain stable and efficient markets by creating and enforcing regulations in the marketplace.

What Does Expiry?
The day on which an options or futures contract is no longer valid and, therefore, ceases to exist. The expiration date for all listed stock options in the U.S. is the third Friday of the expiration month (except when it falls on a holiday, in which case it is on Thursday).

Stop Loss/ Stop Market order: An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit an investor's loss on a security position. Setting a stop-loss order for 10% below the price you paid for the stock will limit your loss to 10%. This strategy allows investors to determine their loss limit in advance, preventing emotional decision-making.

Intraday Mean: Another way of saying "within the day". Intraday price movements are particularly important to short-term traders looking to make many trades over the course of a single trading session. The term intraday is occasionally used to describe securities that trade on the markets during regular business hours

Delivery Mean: In case of delivery ,you have to pay the full value of the shares and the shares get credited to your account.You can keep these shares for as long as you like. Also the brokerage in case of intraday is very small in comparison to delivery.

Stock Exchange: A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and dividends. Securities traded on a stock exchange include shares issued by companies.

Opening Bell: The Opening Bell is a daily snapshot of the stock markets.

Sensex northbound

Indian indices were trading higher amid volatility on F&O expiry day. Buying interest was seen in metal, oil & gas, bank and auto stocks. Heavyweights like Reliance, ICICI Bank, L&T, HDFC Bank and TCS were positive contributors to the Sensex.

Top gainers on the Sensex were Tata Steel at Rs 577.65 up 2.88%, Sterlite Ind at Rs 166.50 up 2.68%, Reliance at Rs 926.30 up 2.15%, Tata Motors at Rs 1,157.05 up 2.08% and Hindalco at Rs 188 up 1.98%.

Top losers on the Sensex were M&M at Rs 673 down 1.15%, ITC at Rs 187.65 down 0.71%, Infosys at Rs 2,777 down 0.64%, BHEL at Rs 1,909.40 down 0.6% and Cipla at Rs 310.10 down 0.43%.

Market trade in a narrow range

Market trade in a narrow range for quite some time. Phenomenal fourth quarter results of Tata Steel, Coal India and Cairn India have helped improving market sentiment, giving a new boost to the trade.

Tata Steel & Cairn India shine after the phenomenal results

A quiet start for the Indian markets ahead of its expiry today. 5300 remains key support level for the Nifty. Earnings have been a mixed pack for fourth quarter. Tata Steel, Cairn India and Coal India posted phenomenal results improving the sentiment of markets.

At 09.17, the Sensex was up 82.07 points or 0.46% at 17929.31, and the Nifty was up 15.45 points or 0.29% at 5364.40.

Cairn India Q4 Result

Cairn India has announced its fourth quarter results. The company's Q4 consolidated net profit was up at Rs 2,458 crore versus Rs 245 crore, year-on-year, YoY.

Nifty trading below 5400 and Sensex below 18K

Nifty was trading below 5400 mark in a narrow band of 20-30 points. It was yet another lacklustre session for the markets prior to expiry tomorrow. The market was trading in line with Asian peers that were pressured by nagging fears about Europe's spreading debt crisis. Selling pressure was seen in realty, IT, telecom and capital goods stocks. The broader markets too were trading in red.

At 10.43, the Sensex was down 85.23 points or 0.47% at 17926.74, and the Nifty was down 23.45 points or 0.43% at 5371.40. About 1049 shares advanced, 1148 shares declined, and 1445 shares remain unchanged.

Tata Steel and Coal India Q4 result

Tata Steel Q4FY11 consolidated sales are seen up 21% at Rs 32965 cr versus Rs 27225 cr, YoY. Its EBITDA is seen down 3% at Rs 4625 crore versus Rs 4751 crore and EBITDA margins are seen at 14% versus 17%, YoY. The company’s PAT is seen down 22% at Rs 1901 crore versus Rs 2434 crore, YoY.

Coal India is set to announce its fourth quarter results today. The company's sales are seen up 14% at Rs 14430 cr versus Rs 12692 crore. EBITDA is seen up 41% at Rs 4768 crore versus Rs 3375 crore.
EBITDA margin is seen at 33% vs 27%. Net profit is seen up 42% at Rs 3734 crore versus Rs 2626 crore.

Sensex and Nifty Down

At 09.25, the Sensex was down 51.79 points or 0.29% at 17960.18, and the Nifty was down 18.10 points or 0.34% at 5376.75. About 542 shares advanced, 542 shares declined, and 2558 shares remain unchanged.

Nifty gainers: Jindal Steel, HUL, Sun Pharma, Cairn India and HDFC were up 1-1.6%.

Nifty losers: DLF, Infosys, Dr Reddys Labs, Reliance Capital and Tata Power were down 1-4%.

Karnataka Bank has announced its results

Karnataka Bank has announced its fourth quarter results. The company's Q4FY11 net interest income (NII) was up 71% at Rs 205 crore versus Rs 120 crore.

Sensex a good bet between 17,295-20,000 range

Indian market, struggling to resurface from the debris of gloomy world economy, has almost lost confidence of both global and local investors. Global sell-offs have been pulling Indian shares.

Sensex a good bet between 17,295-20,000 range.

India and China: Economic Indicators over 10 years

At the start of the decade, China’s gross domestic product (GDP) was 2.5 times India’s. Today, it is 3.8 times as large. Foreign exchange reserves were 4.4 times India’s in 2000; in 2010, they were nine times the size. Exports of goods and services were 2.4 times that of India in 2000. Ten years later, they are 3.4 times bigger.
For more information: Economic Indicators

Nifty Unstable

The Indian markets opened on a flat note after drubbing it took from the hands of bears in last session. The global cues are not too supportive for the markets at this point of time. Buying was seen in capital goods and selective telecom stocks.

At 09.21, the Sensex was up 65.84 points or 0.37% at 18059.17, and the Nifty was up 28.05 points or 0.52% at 5414.60.About 625 shares advanced, 244 shares declined, and 2773 shares remian unchanged.

Nifty gainers: Larsen, Ranbaxy Labs, Grasim, Sun Pharma and DLF were up 1-1.4%.

Nifty losers: HCL Tech, Hindalco, GAIL, Sesa Goa and Jaiprakash Associates were down 0.6-2%.

Sensex below 18k level

The BSE Sensex dipped below the 18,000-points mark after two months at mid-session on Monday, due to brisk selling by funds in heavy-weight stocks, led by banking and metal sectors.

The Bombay Stock Exchange benchmark Sensex, which opened in a negative zone, rolled down further by 353.43 points to 17,972.66 at 1330 hours, a level last seen on March 22.

Selling pressure gathered momentum, on concerns over inflation and rising interest rates, amid worsening signs of the Europe's debt crisis. The banking sector index suffered the most by 2.81 percent to 11,817.30, while metal index dropped by 2.60 percent to 14,728.54.

Sensex down 300 Points

Weak global cues and rally in dollar dragged the Sensex below 18000 levels. Earning woes were kicked off by engineering heavyweight BHEL for this week. Concerns over Greece debt was weighing heavily on the global markets. Dollar index has now crossed important resistance level of 76.

At 14.36 , the Sensex down 323.91 points or 1.77% at 18002.18, and the Nifty was down 102.60 points or 1.87% at 5383.75. About 732 shares advanced, 1980 shares declined, and 930 shares remain unchanged.

GAIL India and Bajaj Electricals announced its fourth quarter results

GAIL India has announced its fourth quarter results. The company's Q4 net profit was down 14% at Rs 783 crore versus Rs 911 crore, year-on-year, YoY. Its net sales were up 36% at Rs 8,894 crore versus Rs 6,522 crore, YoY.

Bajaj Electricals has announced its fourth quarter results. The company's Q4 net profit was up 53% at Rs 57.5 crore versus Rs 37.5 crore, year-on-year(YoY). Its net sales were up 25% at Rs 979.4 crore versus Rs 784 crore, YoY.

Ambani’s gambit this time?

Mukesh Ambani is a grand master in strategy. So when something happens at flagship Reliance Industries Ltd (RIL), it’s time to sit up and take notice. It is also a good time to ask: what’s his gambit this time?

In recent weeks, RIL has done its best to confuse everyone about what is really going on at its Krishna-Godavari (KG-D6) offshore gasfield. Is it a gusher, or it is about to go phut for a while, with output declining in the short-term, due to “technical problems”? Read Full story Ambani’s gambit this time?

* Source from Moneycontrol

Mahindra Satyam disappoint the market

The index Nifty slumped in red on global concerns pertaining to Greece debt woes. Mahindra Satyam disappoints street in terms of bottomline and continues to bleed in red. Rate sensitives like banks and auto were major laggards in trade today. Fall in commodity prices was reflected in metal stocks today. The broader markets too were reeling under losses.

At 10.41 hrs IST, the Sensex was down 158.31 points or 0.86% at 18167.78, and the Nifty was down 52.05 points or 0.95% at 5434.30. About 859 shares advanced, 1360 shares declined, and 1423 shares remain unchanged.

Nifty below 5450

The Indian markets opened on a weak note ahead of expiry this week. Asian markets shed in the range of 1-2%. Rally in dollar and concerns over Greece debt were two culprits for gap down opening. Results announced during the weekend were reflecting in stocks like Rei Agro and MOIL.

Banks, auto, metal and IT stocks were leading the bears from the front. All BSE Sectoral indices were trading in red barring FMCG.

At 09.21 hrs, the Sensex was down 156.91 points or 0.86% at 18169.18, and the Nifty was down 54.75 points or 1.00% at 5431.60. About 343 shares advanced, 600 shares declined, and 2699 shares remain unchanged.

Index heavyweight Reliance was trading at Rs 913.45 down 0.86% from its previous close of Rs 921.40. Refinery major HPCL was trading at Rs 357.60 down 0.91% from its previous close of Rs 360.90. Tech major Infosys was trading at Rs 2,843.90 down 0.23% from its previous close of Rs 2,850.55.

Why invest in an IPO?

Consider this, in 2009 the market saw almost Rs 50,000 crore raised from the primary market. In the year after that, that number actually doubled. But this year, the market has seen a paltry Rs 8000-9000 raised from the market. Many of them have been issues that are so small that often it is difficult to understand what the business are about and how exactly these companies should be valued.

CNBC-TV18’s special show Informed Investor, talks in more detail about the primary markets space and how to approach the potential initial public offerings (IPOs). It discusses which one is worth a subscription and which one looks like a skip.Why invest in an IPO?

Recommendations This Week (May 23 - May 27, 2011)

Company	Recommendation	CMP (Rs.)	Target Price (Rs.)	Stop Loss (Rs.)
ALOIND	Buy	24.9	27.0	23.9
DIVLAB	Buy	727.4	780.0	700.0
MAHMAH	Buy	690.9	750.0	655.8

Source from Edelweiss.in

Strauss-Kahn released on bail

Fallen IMF chief Dominique Strauss-Kahn left jail on bail on Friday and was whisked to a safe house off Wall Street where he will be held under round-the-clock armed guard.

French Finance Minister Christine Lagarde led the race to succeed him in the top job in global finance. But developing countries, whose clout in the world economy has grown in recent years, kept up pressure on Europe and the United States to avoid a backroom deal over the appointment. IMF comes out with a new code of conduct

Kanimozhi & Sharad Kumar arrested: 2G SCAM

DMK MP Kanimozhi and Kalaignar TV MD and CEO Sharad Kumar have been arrested in the 2G spectrum scam case. A Special Central Bureau of Investigating (CBI) court dismissed the bail petition of Kanimozhi and Sharad Kumar in the case on Friday following which they were taken into custody.

While rejecting their bail petition Judge OP Saini ordered their "forthwith" arrest and directed the duo to appear before it at 10 am on Saturday. Kanimozhi and Kumar will be lodged in Delhi's Tihar jail.

After the judge rejected her bail petition, Kanimozhi looked tensed but said that she expected the order. A Raja's wife walked upto her and comforted her.

She also sought permission from the court to get her reading glasses, books and medicines.

Kanimozhi, the daughter of DMK chief and former Tamil Nadu chief minister M Karunanidhi, has been chargesheeted by the CBI for allegedly accepting Rs 200 crore as bribe for Kalaignar TV, where she is a 20 per cent share holder.

Both have been chargesheeted by CBI for allegedly conspiring with former telecom minister A Raja in the 2G scam case.

She has also been charged under the Prevention of Corruption Act for taking bribe through Kalaignar TV - a channel run by DMK - in which the bribe of Rs 200 crore was routed from Shahid Usman Balwa's firm DB Realty.

Galaxy Surfactants IPO withdrawn

You may be aware that the IPO of Galaxy Surfactants has been withdrawn on the back of poor response. If you wanted to invest in this IPO, and could not, because of the development, then, we have some alternative choices.

At this point in time, it will make sense to invest in stocks with good fundamentals. Our research team, recommends 3 such alternatives. These are:-

1. Mundra Port &  SEZ Ltd  (CMP INR 148.65)
Mundra Port SEZ (MPSEZ), incorporated as Gujarat Adani Port on May 26, 1998, and began commercial operations in October 2001, post entering into concession agreement with GMB to build, operate and maintain the port for a period of 30 years till 2031 extendable by another 20 years. The port is into providing cargo handling services for bulk, crude and container cargo. The company has also received approval to develop the adjacent port land as a multi-product SEZ. Hence recommended for investing.

2. Aurobindo Pharma Ltd - (CMP INR 193.70)
We believe ARBP has long term growth visibility, led by expected ramp up from Pfizer deal to Europe and ROW markets. PFE deal is strategic in nature and adds medium term support to valuations. We believe ARBP valuations are cheap, and incremental ramp-up in Pfizer sales and margins upsides in medium term will help narrow the gap with other generic peers. Hence a good stock to invest in.

3. South Indian Bank  (CMP INR 23.25)
South Indian Bank is one of the best regional-based private banks in the country. We like the bank for its strong regional presence, and good technology network. SIB generates decent margins on the back of its structurally strong deposit franchise. Therefore, we recommend you to invest in it.

Sensex up 200 points

The Indian markets opened on a strong note. The benchmark index Nifty was marching towards 5500 mark. Larsen continues its dream run after surprising streets with margin picture. The broader indices too were trading marginally in green. Recent listings started to get whack in early trade. Ashok Leyland was big star of the morning.

At 09.33, the Sensex was up 177 points or 1% at 18318, and the Nifty up 56.70 points or 1.04% at 5484.80. About 872 shares have advanced, 445 shares declined, and 2324 shares remain unchanged. ITC Ltd, the country's top cigarette maker, will be on the radar as it reports quarterly results

India Gold Eases on Global Cues

India's gold futures eased on Thursday on a strong rupee and tailing losses in the overseas market, but the drop wasn't enough to lift local spot demand, which has been subdued for the past two days, dealers said.

The most-active gold for June delivery on the Multi Commodity Exchange (MCX) was 0.39% lower at 21,893 rupees per 10 grams at 4:22 p.m.

"Jewellers were not buying. They have secured enough supplies to cater to their demand in short-term. For the past two days demand was weak," said a Mumbai-based dealer with a state-run bank dealing in bullion. Wedding season in India, the world's largest consumer of bullion, will continue through May.

International gold prices eased in Europe on Thursday as the euro surrendered early gains to soften against the dollar and oil prices retreated, but trade was muted as investors awaited firmer direction from the currency markets.

SEBI withholds listing

Market regulator Securities and Exchange Board of India (SEBI) has withheld the listing of sponge iron manufacturer Vaswani Industries, reports CNBC-TV18.

The SEBI move follows complaints over irregularities related to allotment of shares post its Initial Public Offering (IPO). The Vaswani IPO was open from April 29-May 3.

As per the plan, the company is looking to raise Rs 50 crore via IPO. Issue proceeds are proposed to be used for pre-payment of the term loan (Rs 24.38 crore) and long term working capital (Rs 17.47 crore).

Nifty Flat; L&T looks jittery ahead of results

The Indian markets opened in green echoing Asian markets move. The benchmark index Nifty was inching towards 5450 mark. Analysts suggest that the Nifty might bounce back 50-100 points on back of expiry next week. There are huge shorts in the market and rollover will start to pick up from tomorrow which may lift Nifty 50-100 points on profit booking and rollovers.

At 09.22 hrs, the Sensex was up 61.39 points or 0.34% at 18147.59, and the Nifty was up 15.80 points or 0.29% at 5436.40. About 636 shares advanced, 349 shares declined, and 2656 shares remain unchanged.

L&T is set to announce its fourth quarter results today. According to CNBC-TV18 poll, net sales may surge 18.5% at Rs 16100 crore versus Rs 13585.10 crore. Operating profit margins are seen at 14.22% Vs 15.09%.
Nifty gainers: GAIL, ITC, Sterlite Industries, Bajaj Auto and Reliance Capital were up 1-2%.

Narayana Murthy Leaving the Infosys

Leaving Infosys to N R Narayana Murthy was like parents sending away their daughter after her marriage, the founder and outgoing chairman has said in his last letter to the company's shareholders.

"The best analogy that I can think of for this separation between Infosys and me is that of one's daughter getting married and leaving her parents' home," Murthy said in an emotional letter to Infosys' shareholders.

Having nurtured the country's leading IT firm for the last 30 years, Murthy would be succeeded by eminent banker K V Kamath as Infosys' Chairman with effect from August 21 and would thereafter become 'Chairman Emeritus'.

Murthy, in his letter published in the company's annual report for 2010-11, went on to say that he had to go through tough times explaining to his son and daughter about whom he loved more -- Infosys or the family.

Murthy said that his children do not believe him, even today, that he loved them more than anything else.
"When I was spending 16-hour days in the office and was away from home for as many as 330 days in a year, it was hard for my children to believe in my commitment to the family," he said.

He went on to explain in his letter the entire journey of the company to become one of the leading technology majors of the country. Wishing the current management of the company luck for the future, Murthy said that he would be always there, whenever needed by Infosys.

In early trade Rupee up 9 paise against U.S. dollar

The Indian rupee strengthened by 9 paise to Rs. 45.06 against the U.S. dollar in early trade on the Interbank Foreign Exchange on Wednesday, largely in line with other stronger Asian currencies overseas and a higher opening in the stock market

The rupee had depreciated by 29 paise to close at a nearly two-month low of Rs. 45.15/16 against the U.S. dollar in the previous session on Monday following weakness in equities and fresh dollar demand.The forex and money markets remained closed on Tuesday on account of “Buddha Purnima“. Forex dealers said dollar weakness against other Asian currencies and the higher opening in the stock market mainly supported the rupee.

Top Gainer HDFC

Housing Development Finance Corporation (HDFC) was the top gainer on the Sensex. It touched an intraday high of Rs 647.30 and an intraday low of Rs 635. At 15:18 hrs the share was quoting at Rs 646.50, up Rs 15.45, or 2.45%.

It was trading with volumes of 217,491 shares. In the previous trading session, the share closed down 0.43% or Rs 2.70 at Rs 631.05.

Share Price Movement During The Last 12 Months
Period	Price	Latest Price	Gain/Loss (Rs.)	% Gain/Loss
3-Days	646.75	646.50	-0.25	-0.04
5-Days	665.55	646.50	-19.05	-2.86
7-Days	661.65	646.50	-15.15	-2.29
15-Days	699.20	646.50	-52.70	-7.54
1-Month	693.70	646.50	-47.20	-6.80
3-Month	649.35	646.50	-2.85	-0.44
6-Month	699.70	646.50	-53.20	-7.60
9-Month	602.29	646.50	44.21	7.34
1-Year	550.93	646.50	95.57	17.35

Government is Planning to increase the Company’s Subsidy

India’s primary oil producer, the Oil & Natural Gas Corporation (ONGC), is about to get it in the neck once again. According to news reports, the government is planning to increase the company’s subsidy burden in order to avoid taking a more direct hit on budgetary finances.

Under the formula worked out earlier, ONGC and other oil and gas producers (Gas Authority of India Ltd and Oil India Ltd) have to offer “discounts” (i.e. subsidies) to  oil marketing companies (Indian Oil, BPCL and HPCL) up to 33.3 percent of their losses on diesel, cooking gas and kerosene sales. Now, the government apparently wants to raise the subsidy amount to Rs 30,000 crore this year, which works out to 38.5 percent, though there is no official confirmation of this move.

While the ONGC share is obviously tanking on this news, the move raises serious concerns about corporate governance at ONGC. The government wears two hats when it comes to ONGC. As a policymaker, it can direct  ONGC to subsidise whomsoever it wants to in public interest. But ONGC is not fully owned by the government: 26 percent of its shareholders are ordinary and institutional investors, whose interests cannot be sacrificed at the whims of the majority shareholder. The same holds for GAIL and OIL, both of which are publicly-listed companies.

Nifty turns choppy

Indian markets were witnessing a choppy session due to lack of buying conviction amongst investors as concerns of inflationary pressure and possible rate hike by the Reserve Bank of India in its next meet dampened sentiments. Auto, banks and oil & gas stocks were down on profit booking while IT and capital goods space showed some strength.

"The market has been reeling under a series of bad news. It started with the dismal results and dramatic exits at Infosys. The RBI aggravated the pain with a 50 bps rate hike. Earnings from RIL and Bharti also failed to impress.

On Tuesday, shocking Q4 results from SBI sent the market into a tailspin. Bad news on ONGC and RIL exacerbated the fall. The knock on the chin could have been harder but for the strength in ITC, HUL and TCS.

Today's start will be better but don't bet on a substantial turnaround. All eyes are now on Bajaj Auto results today. L & T will announce its report card on Thursday. ITC will come out with its numbers on Friday.

Inflation remains a big headache as well.

Top Losers Tata Motors, RIL, SAIL

Indian benchmark indices were trading with some volatility. Selling pressure was seen in oil & gas, auto, pharma and realty stocks while IT stocks were trading firm. Reliance, ONGC, SBI and Tata Motors were negative contributors to the Sensex.

At 10.38 hrs IST, the Sensex was up 9.57 points or 0.05% at 18146.92, and the Nifty was up 1.50 points or 0.03% at 5440.45. About 1001 shares advanced, 1202 shares declined, and 1438 shares remained unchanged.

SBI resumes downtrend

It was a quiet start for the Indian markets after massive drubbing by bears this week. The banks resume its downward march led by SBI. ONGC however bounced back and the stock was trading in green.

At 09.21 hrs IST, the Sensex was up 24.77 points or 0.14% at 18162.12, and the Nifty was up 2.15 points or 0.04% at 5441.10. About 580 shares advanced, 340 shares declined, and 2721 shares remain unchanged.

Selling was seen in rate sensitives and oil & gas stocks. Buying was seen in FMCG and capital goods stocks. Nifty gainers: BHEL, HDFC, Larsen, Hindalco and ONGC were up 0.8-1.5%.

Nifty losers: SBI, SAIL, Tata Motors, Maruti Suzuki and BPCL were down 1-1.5%.

Technical View: On the daily chart, the Nifty has been forming Head and shoulder top reversal pattern on the daily chart since first week of March 2011. The middle peak (head) is pegged at 5944. The two outside peaks (left and right shoulder) is pegged at 5608/5605 levels.


Midcap gainers: Bajaj Finserv, Unichem Labs, BOC India, Motherson Sumi and HT Media were up 2-7%.

9 stocks to watch

State Bank of India: SBI will be announcing its results during the day. The market expectation is that the bank will post a topline of Rs 12,732.5 crore and a profit of Rs 2,922.5 crore for the quarter ending March 31, 2011. The stock has shown weakness and technically the chart will be forming a bearish pattern below Rs 2,610. Being an event-based day, volatility will be high.

Coal India: Analysts across broking houses have maintained a buy rating on Coal India with a caveat that the rating or price target will be revised after the announcement of consolidated results on May 25, 2011. The chart, however, shows good strength and the stock trades close to its all-time high. Selling has been on lower volumes, indicating that not many are selling. A cross above the current top of Rs 396.35 can take the stock to Rs 410.

Bata: Bata has been attempting to cross Rs 474, its all-time high price, for the last five trading sessions. It has seen selling pressure in the Rs 465-474 range. A move above Rs 474 can take Bata to the Rs 500 level. The company, which came out with an excellent set of numbers, has been upgraded by a number of brokers. A fall below Rs 450 will change the bullish sentiment in the short term.

SAIL: Over the last four months, the stock has bounced back from Rs 150 levels four times. It is about to test the level for the fifth time. A breach of the Rs 150 level can take the stock to its next level of Rs 127. Other steel companies like Tata Steel too are trading near important support levels, while the smaller ones have broken all support levels. Thus, the probability of the stock breaking the Rs 150 level is high.

Crompton Greaves: In the last three months, the stock touched Rs 240 for the second time. There has been good buying at these levels over the last five days. Rumours in the market are that the company is going in for a big acquisition. Crompton was very strong in a weak market on Monday, with a spurt in volume over the last five minutes. Probably there is something to the rumour. The stock looks good above Rs 248.

Glenmark: The company announced out-licensing of its products to Sanofi. Glenmark will be getting an upfront payment of $50 million from the deal (Rs 7-8 per share, post-tax) over the next two-three months. The remaining milestone and commercialisation-related payments of $613 million (Rs 90 per share) along with royalties are dependent on the success of the product, which can take five to seven years. The stock has already moved up by Rs 50 on Monday on extremely high volumes. After the initial euphoria, selling was witnessed in the counter. A fall below Rs 291.45 can bring the stock back to Rs 275.

Suzlon: There has been a build-up in the price in anticipation of results. The stock opened very strongly on Monday, but since the opening bell, there has been continuous selling. The stock closed at the low of the day. Selling is expected to continue, given the intra-day pattern. The stock can touch a level of Rs 50.

JSW Steel: The company announced its results in the second half of Monday and held an analysts meeting after close of the market. Analysts say that margins are expected to remain under pressure, especially since its coal contracts are up for renegotiation. The stock touched the previous day’s low and bounced back on Monday. It can fall further if it falls below this low of Rs 908.

Diamines & Chemicals: The company has informed the exchange that it will be holding a board meeting to consider the issue of bonus shares. The stock is expected to react positively to the news and can touch a level of Rs 84 where it can meet some resistance. However, this will depend on the bonus ratio.

RBI hints at more steps

Reserve Bank Governor Duvvuri Subbarao today said April inflation at 8.66% was too high and stressed upon the central bank's resolve to batten it down to a comfortable level, indicating that he will continue with the hawkish monetary stance.

Stating that inflation needs to be brought down to a comfortable level to maintain high growth, the Governor said, "if you try to drive up growth by driving up inflation, what you will get left with is high inflation".

The Government data released today showed a minor dip in headline inflation to 8.66% in April, driven by a moderation food and manufactured items prices.

However, the Government revised upwards the March figure to 9.04%, which was provisionally reported at 8.98%. It also revised upwards the numbers for February to 9.54% from the provisional 8.31%.

Disagreeing with the idea of inflation-growth trade-off, which is gaining currency among a section of economists, Subbarao said, "Nowhere in our history we can prove that we have had high inflation and high economic growth.

Gold futures down due to profit-booking

Gold prices fell by 0.31 per cent to Rs. 22,185 per 10 gram in futures trade today amid profit-booking by speculators and a weak trend overseas. At the Multi Commodity Exchange, gold for delivery in August declined by Rs. 69, or 0.31 per cent to Rs. 22,185 per 10 grams, with a business turnover of two lots.

Similarly, the yellow metal for delivery in June shed Rs. 63, or 0.29 per cent to Rs. 21,898 per 10 grams, with a business volume of a single lot. It had gained 0.20 per cent at Rs. 21,961 per 10 grams in the previous session. Gold for delivery in December also fell by Rs. 65, or 0.28 per cent to Rs. 22,891 per 10 gram, with a trade volume of two lots.

Analysts said besides profit-booking by speculators, a weakening trend overseas as a stronger dollar reduced the appeal of precious metals as an alternate investment.

In the Asian region, gold shed $ 6 to $ 1,489.20 an ounce.

Toyota to resume normal production in India from May 20

Japanese car giant Toyota today said it will resume normal production in India from May 20 after being compelled to slash output by 70 per cent since April 25 due to component supply constraints following the devastating earthquake and tsunami that hit the island nation.

During the period of low operations, production was curtailed by about 10,000 units, translating into a revenue loss of about Rs 650 crore for its Indian entity, Toyota Kirloskar Motor (TKM).

“The parts that we were not getting will start arriving in coming days. That is why we are confident of resuming normal operations earlier than expected,” TKM Deputy Managing Director (Commercial) Shekar Viswanathan told PTI.

In the wake of the disruption in supplies, the company had earlier suspended production on Mondays and Fridays between April 25 and June 4.

“We lost about 10,000 units of production across all models... Because of the production drop, the revenue loss was on an average Rs. 6,50,000 per vehicle,” Mr. Viswanathan said.

On that basis, the overall production loss of 10,000 units translates to about Rs. 650 crore.

TKM currently manufactures models like the Etios sedan, multi-utility vehicle Innova, premium sedan Corolla Altis and SUV Fortuner in India.

At present, the waiting periods for Etios and Fortuner are about four months each, while that of Innova and Corolla Altis are three months and one month, respectively, he said.

“Plans are afoot to recover the loss of production and reduce the waiting period. The plant will function on all weekdays and some of the non-working Saturdays,” the company said.

TKM primarily imports engine and transmissions from Japan and other regions.

The company also said the upcoming launch of its small car, Etios Liva, in India is on track.

“We are now all set to launch the Etios Liva. The launch will be as per schedule in the last week of June,” TKM Deputy Managing Director (Marketing) Sandeep Singh said.

The company’s first facility, which produces the Innova, Corolla Altis and Fortuner, in Bangalore has a production capacity of about 80,000 units per annum.

Asian Currencies Decline

Asian currencies dropped, led by Malaysia’s ringgit and Singapore’s dollar, as demand for emerging-market assets declined on concern Greece’s debt crisis will worsen.

The ringgit fell to its weakest level in almost two months and the Singapore dollar retreated to a one-month low after President Barack Obama said failure to raise the U.S. government debt ceiling by early August might disrupt the global financial system and plunge the world’s largest economy into another recession. Greece will plead today for a boost in its 110 billion-euro ($155 billion) financial lifeline from European governments and the International Monetary Fund

सोना 1500 डॉलर के नीचे

कमोडिटी बाजार में सोने और कच्चे तेल में नरमी देखी जा रही है। सोना एक बार फिर 1500 डॉलर के नीचे कारोबार करता दिख रहा है। कच्चा तेल भी 99 डॉलर के नीचे फिसल गया है। वहीं चांदी बढ़त के साथ 35 डॉलर के ऊपर बनी हुई है। यूरो के मुकाबले डॉलर में आई मजबूती की वजह से कमोडिटी पर दबाव बन रहा है।

मुनाफा वसूली जारी रखने का दबाव कालीमिर्च पर दिखाई दे रहा है। आज कालीमिर्च में कमजोर शुरूआत के आसार हैं। जून वायदा में आज कालीमिर्च 29800-30600 रुपये के बीच कारोबार कर सकती है। वहीं शनिवार को कालीमिर्च 30311 रुपये पर बंद हुई थी।

जीरे को निचले स्तर की खरीददारी का फायदा मिल रहा है। वहीं आज जीरे में बढ़त के आसार हैं। जून वायदा में आज जीरा 14700-15100 रुपये पर कारोबार के आसार हैं। वहीं शनिवार को जीरा हल्की गिरावट के साथ 14215 रुपये प्रति क्विंटल पर बंद हुआ था।

सोयातेल को अंतरराष्ट्रीय बाजारों में मजबूती का फायदा मिल रहा है। जून वायदा में आज सोयातेल को 626-636 रुपये के बीच कारोबार कर सकता है। जबकि शनिवार को सोयातेल 626 रुपये पर बंद हुआ था।

How traders can gain from tomorrow's Assembly polls

A day before the announcement of assembly results in West Bengal, Tamil Nadu and Assam, gains from betting on Congress-led United Progressive Alliance (UPA) is far less rewarding than betting on a Left Party win. The betting rates are 1:10 in favour of UPA and 1:80 for Left parties, market sources told Moneycontrol.com

This means, by betting on UPA win, a trader can earn 10 paisa on every one rupee invested while his bet on Left’s victory will fetch him 80 paisa. However, he has to pay 10 paisa and 80 paisa respectively if the said alliances lose.

The case is different in case of Tamil Nadu. M Karunanidhi-led Dravida Munnetra Kazhagam (DMK) and J Jayalalitha-led All India Anna Dravida Munnetra Kazhagam (AIADMK) command rates of 1:50 each for winning the Tamil Nadu Assembly polls. This suggests the market expects either of them to emerge a winner.


Most of the market participants believe market is fairly valued at this point of time. It might fall further 1% or 2% but upside can be as high as 5% in next one year. Hence, investors should stick to “buy at every decline” strategy.

Sensex down 249 Points

Equity fell quite sharply in the second half of trade - down 249 points on the Sensex, especially after sell-off in the European markets. Even better-than-expected industrial output data could not able to support the market because data was quite better on quarter-on-quarter basis but it was bad on year-on-year basis.

The 50-share NSE Nifty closed below the 5,500 mark on Thursday, down 78.90 points or 1.42% to close at 5,486.15. The 30-share BSE Sensex plunged 249.17 points or 1.34%, to settle at 18,335.79. Sensex down 249 Points

Why Invest in Gold

Why Holding Gold in Your Portfolio Isn't Advisable... It's a Must

15 Fundamental Reasons to Own Gold

1. Global Currency Debasement
The U.S. dollar is fundamentally and technically very weak and should fall dramatically over the next few years. However, other countries are very reluctant to see their currencies appreciate and are resisting the fall of the U.S. dollar. Thus, we are in the early stages of a massive global currency debasement which will see tangibles, and most particularly gold, rise significantly in price.

2. Rising Investment Demand
When the crowd recognizes what is unfolding, they will seek an alternative to paper currencies and financial assets and this will create an enormous investment demand for gold. Own both the physical metal and select mining shares. Read More Reasons: Click here

Lovable Lingerie has touched an intraday high

Lovable Lingerie has touched an intraday high of Rs 314.50 and an intraday low of Rs 275.25. At 11:30 hrs the share was quoting at Rs 284.40, down Rs 23.95, or 7.77%.

It was trading with volumes of 491,667 shares, compared to its five-day average of 406,156 shares, an increase of 21.05%.
In the previous trading session, the share closed down 5.66% or Rs 18.50 at Rs 308.35.

Share Price Movement During The Last 12 Months
Period	Price	Latest Price	Gain/Loss (Rs.)	% Gain/Loss
3-Days	323.75	284.40	-39.35	-12.15
5-Days	328.90	284.40	-44.50	-13.53
7-Days	344.70	284.40	-60.30	-17.49
15-Days	305.20	284.40	-20.80	-6.82
1-Month	284.75	284.40	-0.35	-0.12
3-Month	249.20	284.40	35.20	14.13
6-Month	249.20	284.40	35.20	14.13
9-Month	249.20	284.40	35.20	14.13
1-Year	249.20	284.40	35.20	14.13

Muthoot Finance listed in the stock exchange at Rs 180

Shares of Muthoot Finance, a non-banking finance company engaged into gold loan business, on Friday listed in the stock exchange at Rs 180, a premium of 2.85% to the initial public offer price of Rs 175. At 9.40 hours, it was however, trading at 175, up 1.40% on BSE.

Total traded volume was 49.62 crore. It hit a high of Rs 198 and low of Rs 170.25.

The IPO of Muthoot Finance ended on April 21, 2011, with a subscription of 24.55 times. The IPO received bids for 107.46 crore shares compared with 4.37 crore shares on offer. The company had fixed a price band of Rs. 160-175 for the IPO.

The company raised Rs 901.25 crore through the issue of 5.15 crore equity shares, which will be mainly used for augmenting capital base to meet future capital requirements to provide for funding of loans to customers.

Muthoot Finance list above Rs 200?

India's largest gold financing company Muthoot Finance is set to list its equity shares on Friday, May 6. It has fixed the issue price at the higher end of the price band of Rs 160-175 a share.

There were reports that the grey market premium for the stock is around Rs 25-30 over issue price.

Manish Bhatt of Prabhudas Lilladher looked optimistic while Investment Advisor SP Tulsian was slightly conservative. Bhatt expects Muthoot to list in Rs 200-250 range whereas Tulsian feels that the listing around Rs 190 per share.

But both experts advised profit booking on listing.Muthoot Finance raised Rs 901.25 crore through the issue, which will mainly be used for augmenting capital base to meet future capital requirements to provide for funding of loans to customers

How to approach market

Things are going from bad to worse on Dalal street. After a quiet first half, the markets went into a free fall mode, plunging through crucial support zones. The Nifty tested the 5,450 mark, before closing marginally above it. The Sensex cracked close to 260 points and closed at 18,210.

The 30-share BSE Sensex dropped 258.78 points or 1.40%, to close at 18,210.58 and the 50-share NSE Nifty closed below the 5500 mark for first time since March 23, down 77.30 points or 1.40% to 5,459.85.

Bear hug costs Sensex 1392 pts in 8 days

The mood on Dalal Street has not improved yet after the key rates hike and hawkish tone set by the RBI governor Duvvuri Subbarao in a policy meeting on May 3. The Sensex shed nearly 259 points on Thursday, with continuing downtrend for eighth consecutive session.

Experts see earnings downgrade in the quarter ended June 2011 after the 50 basis points hike in repo and reverse repo rate. Interest cost of the companies will increase going ahead as banks have slowly been increasing their lending rates.

Shares & Securities feels that people basically want to sit on cash for a simple reason that there is a kind of possibility of earning downgrade happening going forward once this particular oil price hike is announced.

Bharti tumbles on disappointing Q4 earnings

Equity benchmarks were extremely choppy in early trade on Thursday - the Nifty was hovering around the 5550 level. Oil & gas, financial and capital goods companies' shares were supporting the markets. However, cement, healthcare, FMCG, telecom and select technology stocks were pulling the markets down.

Bharti Airtel plunged 4% as India's largest telecom operator has reported fourth quarter FY11 net profit of Rs 1,401 crore on consolidated basis as against street expectations of Rs 1,740 crore, up 7.5% versus Rs 1,303 crore on QoQ basis.

Ranbaxy Labs lost 8% in initial trade after Goldman Sachs said there would be potential fine of USD 1 billion to settle FDA charges relating to Lipitor.

Today's Result

View Result Calender

	AP Paper Mills  04-May-2011
	BKV Industries  04-May-2011
	Brigade Enterp  04-May-2011
	Broadcast  04-May-2011
	Dai-Ichi Karkar  04-May-2011
	Essel Propack  04-May-2011
	Hero Honda  04-May-2011
	Kennametal  04-May-2011
	Nandan Exim  04-May-2011
	Narbada Gems  04-May-2011
	NELCO  04-May-2011
	Nitco  04-May-2011
	PNB  04-May-2011
	Rexnord Electro  04-May-2011
	Sadhana Nitro  04-May-2011
	Singer India  04-May-2011
	Sterling Holida  04-May-2011
	Store One  04-May-2011
	Surat Textile  04-May-2011
	Technocraft Ind  04-May-2011
	Teledata Tech  04-May-2011
	Torrent Power  04-May-2011
	TTK Prestige  04-May-2011
	Universal Starc  04-May-2011
	Wintac  04-May-2011

Equity Slipped In Opening Trade

Equity slipped further in opening trade on Wednesday, with the Nifty beginning the trade below 5550 level. Auto, cement, private banking and technology companies' shares were seeing further correction. Weak Asian cues too weighted on Indian equities.

Some negative sentiment of 50 basis points hike in key rates by RBI yesterday and increased in savings bank rate to 4% from 3.5% is still weighed on the market. Especially rate sensitives were taking beating.

Among frontliners, Bajaj Auto, M&;M, Hero Honda, Maruti Suzuki, ICICI Bank, PNB, Axis Bank, HDFC Bank, Reliance Capital, Infosys, TCS, HCL Tech, Jaiprakash Associates, Hindalco, Sesa Goa, Sterlite Industries and ACC were pulling the markets down.

RBI's aggressive stand

The Reserve Bank of India on Tuesday raised its repo and reverse repo rates by 50 basis points each in a bid to control mounting inflation, while lowering the economic growth projection to 8% for the current fiscal.

FIIs were taken aback to see a greater-than-expected hike in the interest rates as there were concerns that it may affect India's investment cycle. Jim Walker, managing director of Asianomics Limited, in an interview with CNBC-TV18’s Udayan Mukherjee and Mitali Mukherjee, said that a hike of 50 basis points has come like a surprise.

RBI's credit policy: How will it impact India Inc?

Dalal Street Bulls running for cover

Bank shares were the worst hit as the RBI move to raise savings deposit rate will make funds costlier for lenders, coming at a time when already there are fears of credit growth slackening due to high interest rates.

Apart from banks, auto and realty shares also fell sharply because of their sensitivity to interest rates. The BSE sectoral indices for banks, auto and realty, tumbled over 3% each.

Market experts are worried that higher borrowing costs—resulting from an increase in interest rates—will hurt companies’ operating margins. This in turn, could lead to a downgrade in earnings estimates, and drag share prices lower.

“It is a good time to enter banking shares,”. SBI, ICICI Bank, HDFC Bank, PNB, HDFC and Axis Bank were down 2-5%.

RBI Disappoints

Equity benchmarks extended losses in the afternoon trade - the Nifty has touched the 5600 mark, reacting quite harshly to 50 basis points hike in key rates by the Reserve Bank of India.

The 30-share BSE Sensex shed 347 points, to 18,650 and the 50-share NSE Nifty tumbled 107 points to 5,594. Market breadth has widened its gap - three shares declined for every one share advanced on National Stock Exchange.

The central bank increased the repo rate (the rate at which banks borrow money from RBI) by 50 basis points to 7.25% to rein in inflation, which was almost 9% in March. It is a signal for banks to tighten interest rates.

RBI policy awaited

The benchmark Nifty was hovering around the 5700 mark amid volatility at 10:30 hours. Benchmarks were awaiting the policy announcement from central bank Reserve Bank of India.

Consensus estimates suggest that 25 basis points hike in key rates. Even some experts were expecting hike in the range of 25-50 basis points. However, experts feel that beyond 50 basis points hike in key rates (repo and reverse repo) would trigger sell-off in the market. For more details

Nifty below 5700 ahead of RBI policy meet

Indian equity benchmarks were down in the opening trade amid a choppy trade, especially ahead of Reserve Bank of India's policy meet today at around 11 am. The Nifty opened at sub 5700 level, dragged down by financial, FMCG and select auto companies' shares.

A CNBC-TV18 poll indicates that RBI is likely to raise rates by 25 basis points. But it is a deeply divided market.

RBI should definitely go in for a 50 bps hike. It will send out a very strong signal. "But don't think it is going to happen. They will probably increase rates only by 25 bps, which market may take as positive in the short-term".

Among frontliners, ONGC, ICICI Bank, HDFC Bank, M&M, Bajaj Auto, DLF, PNB, Tata Motors, ACC, Jaiprakash Associates, HDFC and SBI were pulling the markets down.

However, Hero Honda, BHEL, SAIL and Ranbaxy Labs were on buyers' radar.

FY12 growth to be good

On the eve of its annual Credit Policy, the Reserve Bank of India has released its macroeconomic report.

In its report, the central bank has said that the macroeconomic outlook for fiscal year 2012 remains favourable aided by predicted normal monsoon, demand conditions and positive lead indicators for services. "GDP growth during 2010-11 reverted to its recent trend, aided by a rebound in agricultural growth. Fore more Read full story

Bankers expect 25-bps hike tomorrow

The Reserve Bank of India is treading a fine line while trying to cope with growing market expectations of a 25 basis points hike in its credit policy which will be announced on Tuesday.

"We expect RBI to raise rates by 100 basis points by October 2011, with a 25 bps hike on Tuesday," Indranil Sengupta said. Also, the bank could tighten provisioning norms for bank loans to real estate and might accept some part of the Deepak Mohanty report, according to him. (Read what other bankers are expecting)

Nifty volatile

Indian equity benchmarks continued to remain in a consolidation mode on first day of May. Financial, auto and realty companies' shares were on sellers' radar ahead of RBI policy meet tomorrow. L&T too was down on the back of same reason.

However, technology, healthcare and FMCG companies' shares were quite supportive. Among frontliners, L&T, Infosys, Reliance Communications, Axis Bank, Kotak Mahindra Bank, Jaiprakash Associates, BHEL, Bajaj Auto, M&M and ONGC were witnessing buying interest.

However, Reliance Industries, Ambuja Cements, IDFC, SAIL, Sesa Goa, Sterlite Industries, PNB and Hindalco were putting pressure on markets. At 9:18 hours IST, the 30-share BSE Sensex was trading at 19,175, up 39 points and the 50-share NSE Nifty rose just 0.5 points to 5,750.

Al Qaeda leader bin Laden dead

Osama bin Laden is dead and his body has been recovered by US authorities, US officials said on Monday morning.

President Barack Obama was to make the announcement shortly that after searching in vain for bin Laden since he disappeared in Afghanistan in late 2001, the Saudi-born extremist is dead.

It is a major accomplishment for Obama and his national security team. Obama's predecessor, George W Bush, had repeatedly vowed to bring to justice the mastermind of the September 11, 2001, attacks on New York and Washington, but never did before leaving office in early 2009.

US officials said that after searching in vain for the al Qaeda leader since he disappeared in Afghanistan in late 2001, the Saudi-born extremist is dead and his body recovered.

Having the body may help convince any doubters that bin Laden is really dead.

He had been the subject of a search since he eluded US soldiers and Afghan militia forces in a large-scale assault on the Tora Bora mountains in 2001. The trail quickly went cold after he disappeared and many intelligence officials believed he had been hiding in Pakistan.

While in hiding, bin Laden had taunted the West and advocated his militant Islamist views in videotapes spirited from his hideaway.

Besides September 11, Washington has also linked bin Laden to a string of attacks - including the 1998 bombings of American embassies in Kenya and Tanzania and the 2000 bombing of the warship USS Cole in Yemen.