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%.