MARKET VIEW 29.07.2009

The Sensex opened with a negative gap of 39 points at
15,293. The index rebounded into the positive zone to
touch a high of 15,379. The index mirrored trends in
Chinese markets and fell nearly 500 points from the
day's high, to a low of 1,888. The Shanghai Composite
dropped 264 points in the day and finally ended with a
loss of 172 points at 3,266 - due to fall in commodity
(copper) prices. Meanwhile, the Chinese government also reduced gasoline prices
by 3% citing lower demand from industries.
However, recovery in IT stocks and positive cues from the European markets
helped the indices recover partially. The Sensex finally ended at 15,173, down 158
points. The Sensex has, in the process, declined 206 points in the last three days.
The BSE realty, consumer durables and metal indices dropped 2-4% each.
The market breadth was fairly negative, Out of 2,724 stocks traded, 1,558 stocks
declined while 1,089 advanced. Meanwhile, the NSE Nifty ended with a loss of 51
points at 4,514.

MARKET VIEW

The Sensex opened with a positive gap of 54 points at 15,429.
However, weakness in banking stocks ahead of the RBI policy
review saw the index drop into red to a low of 15,241. The markets
however were unaffected by the status stance taken by the RBI in
its first review of the monetary policy. Fresh buying in realty
following the fresh stimulus by the government, and auto stocks
helped the index rebound into the positive zone and touch a high
of 15,463 - up 222 points from the day's low.
Lower-than-expected earnings from Hindustan Unilever saw the stock take asharp dip and with it the index. Weakness in Reliance and Infosys did not helPeither. The Sensex finally ended with a loss of 43 points at 15,332, with Reliance,
Hindustan Unilever and Infosys accounting for a loss of over 80 points on theindex, and ITC contributing 10 points on the positive zone.

MARKET VIEW 27 JULY 2009

Despite weakness in the stock of big boy Reliance Industries on the back of poor results, markets showed resilience and closed flat in today’s trade. Sensex lost 4 points to close at 15375, while Nifty ended at 4572, up 4 points. However, rest of the Asian markets closed with decent gains. BSE Midcap and Smallcap indices outperformed the benchmark indices significantly, putting on 1.6% and 1.5% respectively. Reliance Ind. finished lower by 3.7%. European markets were trading higher by about 1%. US stock indices futures were up by more than half a percent.
BSE Oil & Gas lost the most among the sectoral indices in today’s trade, plunging 3.1%, followed by Auto index, which lost 0.5%. FMCG index surged 3.6%, gaining the most, followed by Realty index, which was up 3.1%. HUL was the star performer among sensex stock, gaining 5.9%, followed by Tata Power, which gained 5.5%. Reliance Industries and Hero Honda were the top losers, shedding 3.7% and 3% respectively. Turnover at Rs. 75700 cr. was nearly 25% lower than that of Friday.

ADANI POWER DETAILS

The research report on Adani Power's initial public offering (IPO). Adani Power will open for subscription with an initial public offering of 301,652,031 equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process on July 28, 2009 and will close on July 31, 2009. The IPO price band is fixed at Rs 90-100 per share.
According to the research , Adani Power's pre-IPO net present value (NPV) is of Rs 68-93 per share.
Adani Power is expected to add highest generation capacity in the Eleventh Plan among private sector players and plans to increase its capacity from 330MW as of June FY09 to 6.6GWMW by April-2012. Current IPO proceeds of Rs 196- 218b are towards part financing of the same

WEEK AHEAD

COMMING WEEK

The equity markets globally have been witnessing a positive momentum since the past couple of weeks. This can be attributed to the results of certain companies which have exceeded expectations and the positive economic data. There have been some negative news as well for the market during this period, but the market has been broadly ignoring those. Though this may be a cause of concern for the market going forward, the present undertone of the market is looking positive. The Sensex and Nifty have been breaching some important levels on the upper side along with the Dow Jones and S & P 500 in the US. Any downward correction could witness good support from the buyers as this has been a global phenomenon in the recent times.