Market ends with hefty gains; Bankex up nearly 4%

Markets closed with hefty gains. It showed no signs of weakness during the day and also ignored the higher inflation number. Inflation for the week-ended April 19 is at 7.57% versus 7.33%, at a 42-month high. On the sectoral front, the BSE bankex has outperformed the other sectoral indices; it was up nearly 4%.

The Sensex was up 312.81 points or 1.81% at 17600.12, and the Nifty up 62.30 points or 1.21% at 5228.20.

About 1480 shares have advanced, 1393 shares declined, and 209 shares are unchanged.

The BSE bankex was up 322.50 points or 3.66% at 9,142.18. Stocks like ICICI Bank, Federal Bank, Bank of India, Kotak Mahindra and Karnataka Bank surged.

The BSE auto index was up 135.15 points or 2.86% at 4,861.15. Stocks like Escorts, Maruti Suzuki, Punj Tractors, TVS Motor and Ashok Leyland flared up.

The BSE realty index was up 213.20 points or 2.51% at 8,718.69. Stocks like HDIL, Ansal Properties, Indiabulls Real, Unitech and DLF moved up.

The BSE IT index was up 96.65 points or 2.27% at 4,358.58. Stocks like Financial Tech,Tech Mahindra,HCL Tech, Wipro and Satyam spurted up.

The BSE capital good index was up 313.62 points or 2.25% at 14,244.87. Stocks like L&T, Rel Ind Infra, Greaves Cotton, Praj Industries and Carborundum closed in green.

The BSE oil & gas index was up 209.58 points or 1.82% at 11,715.37. Stocks like IOC, Petronet LNG, HPCL, Reliance, and Essar Oil ended positive.

The BSE FMCG index was up 13.07 points or 0.53% at 2,474.45. Stocks like Colgate, Godrej Consumer,Marico,Tata Tea, and United Spirits advanced.

The NSE cash turnover was at Rs 15284.57 crore and the NSE F&O turnover was at Rs 36304.41crore. The BSE cash turnover was Rs 6582.12 crore. Total market wide turnover was at Rs 58171.1 crore.

Markets Snapshot

Markets end strong shrugging off infltaion data which came at 42-mth high

Inflation for week wnded April 19 at 7.57% Vs 7.33%; CNBC-TV18 Poll Saw 7.27%

Sensex ends up 313 pts at 17600; Nifty up 62.3 pts at 5228.2

CNX Midcap Index up 1.2%, BSE Small-cap Index up 0.55%

All BSE Sectoral indices end in the green barirng metal index

Index gainers; REL up 6.7%, L&T up 4.4%, HCL Tech up 3%

BSE Bank Index up 3.6%; ICICI Bank up 6.5%, SBI up 2.7% on better than expected results

Auto stock gain after release of monthly auto numbers; BSE Auto Index up 2.8%; MUL up 6.2%, Tata Mot up 4%, M&M up 3.14%

BSE Metal Index down 1.5%; Sterlite down 4.2%, Hindalco down 4%, Tata Steel down 2.5%

HDIL up nearly 10% as the co gets govt nod for airport slum rehabilitation project

Reliance Power: acquires 3 coal mines in South Sumatra, Indonesia

Buzzers: IndusInd Bank up 13.2%, Graphite India up 20%, Mt Everest Mineral up 10%, SREI Infra up 16.2%

NSE Advance Declian ratio at 7:5

Total market turnover at Rs 58171 cr Vs Rs 57266 cr on Wednesday

Nifty futures turnover at Rs 36304 cr Vs Rs 33950 cr on Wednesday

FNO SNAPSHOT

Nifty shuts above 5200 mark for the first time since Feb 29th

Nifty Adds 15 lakh shares in OI; May premium shoots up over 20 points

Nifty 5000 Put Adds 6.3 shares in OI; 5400 Call adds 6.9 lakh shares

Nifty 5200 Call Adds 4.7 lakh sharse; Nifty 5200 Put Adds 4.5 lakh shares in OI

Banks, Power see strong OI buildup with a long bias

Metals see short buildup

Reliance Power sees significant June Buildup; rollover at 32%

Fresh Longs:

Momentum Stocks: IFCI, RNRL

Power: NTPC, R Power, REL

Banks: DCB, Indus Ind Bank, SBI

Mid Caps: Petronet LNG, Arvind Mills, Escorts, Finan Tech

Realty: HDIL, Ansal Prop

Fresh Shorts:

Metals:Hindalco, Tata Steel, SAIL

Shree Renuka

Short Covering:

Kotak Mah Bank, JP Ass, REl Cap, MTNL

Long Unwinding:

REC, TTML, Lanco Infratech, Aptech

ASIA TODAY

Straits Times up 2.8%, Nikkei up 2%, Hang Seng up 1.9%, Jakarta up 1.7%

Shanghai market is closed on account of Labor Day (gained 4.8% yesterday)

Financials in Sigapore such as DBS Group & United Overseas Bank led

Taiwan Flows

Taiwan: FIIs net buy equities worth $ 36.7 m in today’s trade (Prov)

FIIs sold equities worth $ 903 m during Apr month

Data to Watch

Nonfarm payroll employment

Result: American Tower Corp, The Washington Post Company

Markets This Week

Sensex Up 2.8%, Nifty Up 2.2%

CNX Midcap Index Up 3.5%; BSE Small Cap Index Up 1.5%

Nifty Gainers

HCL Tech Up 14%, REL Up 12%, Satyam Up 11%, M&M Up 9%

Nifty Losers

Grasim, Siemens Down Over 10% Each,~Cipla Down 5%, ACC Down 4%

BSe IT Index Up 7%; Satyam Up 11%,~Wipro Up 8%, Infy, TCS Up 6% Each

BSE Realty Index Up 7%; Unitech Up~10%, DLF Up 8%, HDIL Up 17%

BSE Auto Index Up 5.6%; Tata Mot Up~8%, Maruti Up 7%, Hero Honda Up 5%

BSE Bank Index Up 3.3.%; SBI Up~4%, OBC Up 6%, HDFC Bank Up 2.5%

Mkts surge; Bank, auto, power up over 2%

Markets continue to maintain its upward momentum. Buying interest is seen in bank, auto, power; they are up over 2%. Power, capital goods, IT, oil & gas and reality stocks are also trading with good gain. However metal index is down 1.5%. Inflation for week ended April 19 is at 7.57% versus 7.33%, at a 42-month high.

At 13.50 pm, the Sensex is up 231.09 points or 1.34% at 17518.40, and the Nifty up 50.90 points or 0.99% at 5216.80.

About 1581 shares have advanced, 1287 shares declined, and 214 shares are unchanged.

Maruti Suzuki, Reliance Infra, Jaiprakash Asso and ICICI Bank were among the top gainers on the indices.

However, the top losers on the bourses are Hindalco, Reliance Comm, Tata Steel, Sterlite Ind and Hindalco.

Market flares; Inflation at 42-mth high

Markets continue to trade higher and show no signs of weakness. Even inflation numbers have come out higher than market expectation. Inflation for week ended April 19 is at 7.57% versus 7.33%, at a 42-month high. The BSE bank, auto, IT and power indices are witnessing buying interest and are up over 2% each.

At 12.02 hrs IST, the Sensex is up 228.20 points or 1.32% at 17515.51, and the Nifty up 52.70 points or 1.02% at 5218.60.

About 1669 shares have advanced, 1186 shares declined, and 227 shares are unchanged.

Reliance Infra, Maruti Suzuki, Jaiprakash Asso and M&M are top gainers on the bourses.

However, top losers on the bourses are Hindalco, Reliance Comm, Tata Steel and Sterlite Ind.

Mkts off day’s high; Bank, IT, power, auto surge

Markets are trading in green but off day’s high. The BSE banking index has outperformed the other sectoral indices; it was up over 2% at 9029.

At 10.42 am, the Sensex is up 195.45 points or 1.13% at 17482.76, and the Nifty up 47.80 points or 0.93% at 5213.70.

About 1816 shares have advanced, 1044 shares declined, and 222 shares are unchanged.

Top gainers on the Sensex are Reliance Infra, Wipro and Jaiprakash Asso.

Top losers on the Sensex are Hindalco, Reliance Comm and HDFC.

The BSE IT, power, auto and realty indices are up over 1%.

The most active shares on BSE Reliance Infra, Titagarh Wagons and Rel Capital.

Market opens higher; Nifty above 5200

The markets have opened with smart gains mirrior global peers. Nifty breached 5200 mark. The BSE bankex, realty, power, IT stocks witnessing buying interest.

At 9.56 am, the Sensex is up 302 points at 17590, and the Nifty is up 85 points at 5259.

ICICI Bank, Satyam, DLF, Unitech, Tata Motors are among major gainers.

Fertiliser stocks like Chambal Fertilisers and Nagarjuna Fertilisers are trading with over 3% gain.

Asian Markets:

Asian markets were trading higher. Japan’s Nikkei was up 1.80% or 247.54 points at 14,014.40. Hong Kong’s Hang Seng surged 2.15% or 554.65 points at 26,310. Taiwan’s Taiwan Weighted advanced .072% or 64.42 points at 8,984.34. Singapore’s Straits Times rose 2.43% or 76.34 points at 3,224.13.South Korea’s Seoul Composite gained 1.11% or 20.33 points at 1,845.80.

US Markets:

Fed’s 25 basis point cut doesn’t keep Wall Street jittery for too long. Stocks on yesterday rise to the highest level since January after a rally in dollar and strong technology earnings. The Dow gained 189.87 points, or 1.48%, to 13,010. The Standard & Poor’s 500 index advanced 23.75 points, or 1.71%, to 1,409.34. The Nasdaq composite index surged 67.91 points, or 2.81%, to 2,480.71.

Market cues:
Inflation data to be released today
DJ poll indicates inflation at 7.42% for week ended April 19
FIIs net buy $85.6 mn in equity on Apr 29
MFs net buy Rs 381.5 cr in equity on Apr 29
NSE F&O Open Int up by Rs 2318 crore at Rs 63175 crore

F&O cues:
Futures Open Int up by Rs 420 crore and Options Open Int up by Rs 1,898 crore
Nifty Futures add 4 lakh shares in OI, at 24-pt premium
Nifty Open Interest PCR at 1.47 Vs 1.36
Nifty Puts add 25 lakh shares in Open Interest
Nifty Calls add 7 lakh shares in Open Interest
Nifty 5200 Put adds 5.4 lakh shares in Open Interest
Nifty 5000 Put adds 4.3 lakh shares in Open Interest
Nifty 5100 Put adds 4 lakh shares in Open Interest
Nifty 5200 Call adds 2.4 lakh shares in Open Interest
Nifty 5300 Call adds 2.3 lakh shares in Open Interest

Mkts may see 5-10% upside from current levels: Advani OTC

Pashupati Advani of Advani OTC Dealers said there are both bullish and bearish investors in the markets, as seen by low volumes. He told CNBC-TV18 that the US Fed move, gains in China and other markets are adding to the momentum. He expects to see an upside of around 5-10% from current levels.
Advani is bullish from the medium-term and sees more upside than downside. According to him, the interest rate sensitives will not fare very well and overall results are good.

Advani is concerned about the measures taken to curb high commodity prices. He further observed that markets will continue to see flows as long as the primary market does not absorb it. He hopes to see the Sensex go up to 19,000 before it goes back to 16,000.

State Bank of India Profit Beats Analysts' Estimates

State Bank of India,,the nation's biggest by assets, reported a 26 percent increase in fourth- quarter profit, beating analysts' estimates, as record economic growth spurred demand for loans.

Net income climbed to 18.8 billion rupees ($462 million) in the three months ended March 31 from 14.9 billion rupees a year earlier, the state-owned bank said. That beat the 17 billion rupee median estimate of five analysts surveyed by Bloomberg.

State Bank completed its first share sale in a decade in March to boost lending to its 130 million customers, equivalent to the population of Japan. Finance Minister Palaniappan Chidambaram said yesterday interest rates are unlikely to climb from a six-year high, easing concerns that loan growth will slow.

``Banks in India will continue to be a good bet as the economy grows,'' said Mihir Vora, who manages $800 million as the head of equities at HSBC Asset Management (India) Pvt. in Mumbai. ``Banks with good asset-liability balance and credit control will outperform.''

Economic growth that's averaged 8.7 percent annually for four years has spurred companies and individuals to borrow from lenders led by State Bank, which controls more than a fifth of India's banking assets. Chairman Om Prakash Bhatt is required to offer credit to high-risk groups including farmers and artisans and operate branches in less profitable towns and villages.

Fourth-Best Performer

Shares rose 2.7 percent to 1,822.4 rupees in Mumbai trading. The stock was the fourth-best performer on India's equity benchmark Sensitive Index in the past 12 months.

Loans and deposits increased 23.4 percent in the year ended March 31, Bhatt said today. The chairman has previously forecast loan growth to slow this fiscal year as higher interest rates and inflation lead to a reduction in consumer spending.

Credit growth in India slowed to 21.6 percent in the 12 months ended March, from 28.1 percent a year earlier, according to data from the central bank, as consumers deferred purchases of automobiles and homes.

State Bank expects to receive government approval to merge with its seven units this month and plans to complete the consolidation by March, Bhatt said. The bank had already started the process of combining with the State Bank of Saurashtra to grow assets and gain more branches.

``If State of Saurashtra goes through, we will decide on the sequence and pace of remaining associate banks,'' Bhatt said. ``We have a sense that before March 2009, we will be able to merge all of them.''

Subprime Losses

State Bank's focus on extending banking services across the world's second-most populous nation has limited its exposure to the collapse in the U.S. subprime market.

The bank set aside about $10 million to cover mark-to-market losses in the year related to the meltdown in the credit markets, it said today.

More than 100 of the world's biggest banks and securities firms have reported $312 billion in asset writedowns and credit losses since the beginning of 2007, including reserves set aside for bad loans.

The lender needs to bridge a gulf in assets with overseas competitors such as Industrial & Commercial Bank of China Ltd. as regulators consider letting foreign financial-services firms take control of India's private banks.

State Bank's market value of $28 billion is less than a tenth of Industrial & Commercial Bank of China Ltd.'s $306 billion. ICBC is the world's biggest by market value.

To help achieve this, State Bank plans to get about 25 percent of profit from overseas within five years, up from about 11 percent now, the bank said.

Sensex at highest close in 2 months

The Bombay Stock Exchange benchmark Sensex on Friday gained 312 points on buying mainly in heavyweight stocks led by bank, auto and realty sectors.

The Sensex, which lost nearly 91.15 points on Wednesday, bounced back to close higher by 312.81 points at 17,600.12, after touching the day's high of 17,621.24 and low of 17,445.93 points.

The market remained closed on Thursday.

The stock market barometer rose 11 per cent in April, its first monthly gain in 2008, paring the decline of 13.6 per cent from January till date.

The wide-based National Stock Exchange index Nifty rose 62.30 points at 5,228.20. It surged close to 5,300 points level by reaching 5,298.85 during the day and experienced a low of 5,197.60 points.

Banking stocks were the best performers as the sectoral index rose the most by 322.50 points at 9,142.18 as Sensex-related ICICI Bank shot up by Rs 56.10 at Rs 1,935.50.

State Bank of India rose by Rs 45.80 at Rs 1,822.15. Auto index rose by 135.15 points at 4,861.15 after the index-linked Maruti Suzuki rose on better sales result in April.

Realty sector index surged by 213.20 points at 8,718.69 as heavy-weight DLF Ltd rose after the country's biggest developer reported fourth-quarter profit gains.

However, metal index fell by 251.23 points at 15,863.17 as stocks of leading metal Companies like Tata Steel, Sterlite, National Alluminium, Jindal Saw, Hindustan Zinc and Bhushan Steel fell sharply

Aban Offshore

Aban Offshore has a target price of Rs 4200, it has resistance at Rs 3424-3604 and support at Rs 3332-3175, says Ashu Kakkar, technical analyst, on NDTV Profit. The stock is currently trading at Rs 3362, down 0.63% on the BSE. Citi has a target price of Rs 4810 for the stock and Macquire has a target price of Rs 5145

Market flares; Inflation at 42-month high

Markets continue to trade higher and show no signs of weakness. Even inflation numbers have come out higher than market expectation. Inflation for week ended April 19 is at 7.57% versus 7.33%, at a 42-month high. The BSE bank, auto, IT and power indices are witnessing buying interest and are up over 2% each.

At 12.02 hrs IST, the Sensex is up 228.20 points or 1.32% at 17515.51, and the Nifty up 52.70 points or 1.02% at 5218.60.

About 1669 shares have advanced, 1186 shares declined, and 227 shares are unchanged.

Reliance Infra, Maruti Suzuki, Jaiprakash Asso and M&M are top gainers on the bourses.

However, top losers on the bourses are Hindalco, Reliance Comm, Tata Steel and Sterlite Ind.

Source : moneycontrol.com

Reliance Communications & Reliance Power

Reliance Communications is a clear buy at current levels for the long term, says Sharmila Joshi of Prabhudas Lilladher, on CNBC TV18. The stock is currently trading at Rs 563, down 2.56% on the BSE.

Reliance Power has acquired 3 coal mines in Indonesia with a total capacity of 2 billion tonnes, reports NDTV Profit. The company plans to invest $1 billion in mine exploration and logistics. The stock is currently trading at Rs 401, up 1.61% on the BSE

Inflation Report

Inflation at 7.57% versus 7.33% for the week ended April 19, it is at a 42-month high, reports NDTV Profit. NDTV Poll estimated inflation figure to be at 7.38%. Inflation number for April 23 has been revised to 5.69% versus 5.02%

The market has digested the inflation numbers with ease and moved on. Sensex is trading at 17533, up 246 points and Nifty is at 5221, up 55 points from the previous close. The CNX Midcaps index is up 1.05% and BSE Smallcaps index is up 0.68%. The market breadth is positive with advances at 810 against declines of 401 on the NSE.

Alok Industries

Citi has a target price of Rs 121 for Alok Industries, reports CNBC TV18. The stock is currently trading at Rs 65, up 0.61% on the BSE

Bank of India

Morgan Stanley maintains outperformer on Bank of India with a target of Rs 415, reports CNBC TV18. The stock is currently trading at Rs 363, up 5.95% on the BSE

GMR Infrastructure

GMR Infrastructure is a good investment for the long term at current levels, says Ashish Kukreja, technical analyst, on Zee Business. The stock has a 5-10% upside in the short term as well, he adds. The stock is currently trading at Rs 164, up 2.02% on the BSE

Inflation for the week

Inflation for the week ended April 19 is 7.57%, higher as compared with 7.33% for the week ended April 12.

Top picks

Top picks at current levels in the banking space are SBI, PNB, Andhra Bank and Syndicate Bank, says Abhinay Jain of Sharekhan, on NDTV Profit. Banking stocks are doing well and the BSE Bankex index is up 2.66%

Mkts off day's high; Bank, IT, power, auto surge

Markets are trading in green but off day's high. The BSE banking index has outperformed the other sectoral indices; it was up over 2% at 9029.

At 10.42 am, the Sensex is up 195.45 points or 1.13% at 17482.76, and the Nifty up 47.80 points or 0.93% at 5213.70.

About 1816 shares have advanced, 1044 shares declined, and 222 shares are unchanged.

Top gainers on the Sensex are Reliance Infra, Wipro and Jaiprakash Asso.

Top losers on the Sensex are Hindalco, Reliance Comm and HDFC.

The BSE IT, power, auto and realty indices are up over 1%.

The most active shares on BSE Reliance Infra, Titagarh Wagons and Rel Capital.

Market opens higher; Nifty above 5200

The markets have opened with smart gains mirrior global peers. Nifty breached 5200 mark. The BSE bankex, realty, power, IT stocks witnessing buying interest.

At 9.56 am, the Sensex is up 302 points at 17590, and the Nifty is up 85 points at 5259.

ICICI Bank, Satyam, DLF, Unitech, Tata Motors are among major gainers.

Fertiliser stocks like Chambal Fertilisers and Nagarjuna Fertilisers are trading with over 3% gain.

Asian Markets:

Asian markets were trading higher. Japan's Nikkei was up 1.80% or 247.54 points at 14,014.40. Hong Kong's Hang Seng surged 2.15% or 554.65 points at 26,310. Taiwan's Taiwan Weighted advanced .072% or 64.42 points at 8,984.34. Singapore's Straits Times rose 2.43% or 76.34 points at 3,224.13.South Korea's Seoul Composite gained 1.11% or 20.33 points at 1,845.80.

US Markets:

Fed's 25 basis point cut doesn't keep Wall Street jittery for too long. Stocks on yesterday rise to the highest level since January after a rally in dollar and strong technology earnings. The Dow gained 189.87 points, or 1.48%, to 13,010. The Standard & Poor's 500 index advanced 23.75 points, or 1.71%, to 1,409.34. The Nasdaq composite index surged 67.91 points, or 2.81%, to 2,480.71.

Market cues:
Inflation data to be released today
DJ poll indicates inflation at 7.42% for week ended April 19
FIIs net buy $85.6 mn in equity on Apr 29
MFs net buy Rs 381.5 cr in equity on Apr 29
NSE F&O Open Int up by Rs 2318 crore at Rs 63175 crore

F&O cues:
Futures Open Int up by Rs 420 crore and Options Open Int up by Rs 1,898 crore
Nifty Futures add 4 lakh shares in OI, at 24-pt premium
Nifty Open Interest PCR at 1.47 Vs 1.36
Nifty Puts add 25 lakh shares in Open Interest
Nifty Calls add 7 lakh shares in Open Interest
Nifty 5200 Put adds 5.4 lakh shares in Open Interest
Nifty 5000 Put adds 4.3 lakh shares in Open Interest
Nifty 5100 Put adds 4 lakh shares in Open Interest
Nifty 5200 Call adds 2.4 lakh shares in Open Interest
Nifty 5300 Call adds 2.3 lakh shares in Open Interest

Source : moneycontrol.com

Falling Rupee May Add to India's Inflation, Rates, ICICI Says

A weakening Indian rupee, Asia's second-worst performing currency this year, may quicken inflation and prompt the central bank to raise its benchmark interest rate, according to ICICI Securities Ltd.

The Reserve Bank of India may increase its repurchase rate by a quarter-percentage point for the first time in more than a year, said Prasanna Ananthasubramaniam, an analyst at the Mumbai-based unit of India's second-biggest bank by market value. The rupee has declined almost 3 percent this year as equity purchases by overseas funds slowed amid a global credit crisis and rising oil prices pushed import costs higher.

``The offset of a strong rupee isn't available to contain the pass-through of global prices. In such a scenario, we don't rule out a hike in the repo rate,'' Prasanna said in an interview yesterday. Further rupee weakness ``cannot be ruled out, adding to inflation risks.''

Central bank Governor Yaga Venugopal Reddy kept the benchmark rate unchanged at a six-year high on April 29. He instead told lenders for the second time in less than two weeks to set aside more cash as a proportion of their deposits to slow growth in money supply.

The rupee fell 0.8 percent the same day, the biggest decline in almost two months, after the bank said the current- account deficit will be ``marginally'' higher in the fiscal year through March and said prospects for growth stand ``trimmed.''

The local currency weakened 0.1 percent to 40.51 a dollar on April 30, according to data compiled by Bloomberg. Financial markets were closed yesterday for a holiday in Mumbai.

Oil, Deficits

An advance in crude oil prices to an all-time high of $119.93 a barrel this week spurred demand for dollars as refiners settled import bills, placing the rupee on course for its biggest weekly loss since the five-day period ended March 7.

India's trade deficit widened 45 percent in the year ended March 31 to $80.4 billion, the government said yesterday. The shortfall in the current account, a broad measure of trade and investment flows, widened 46 percent to $5.4 billion in the quarter through December from $3.7 billion a year earlier.

The rupee's 12.3 percent rally last year, the most in more than three decades helped cool inflation to a five-year low in October before flaring up to a 3 1/2-year high.

Slowing Growth

Asia's third-largest economy should be prepared to face ``potentially large'' outflows of capital as the global credit crisis, now in its 10th month, makes global investors more risk averse, the Reserve Bank said April 29.

Global funds, who bought a record $17.2 billion in Indian shares than they sold last year, have dumped a net $2.6 billion this year as the central bank expects economic expansion to slow to as low as 8 percent this fiscal year. Growth averaged a record 8.7 percent in the past five years.

``With inflows slowing down, higher outflows on the trade account are likely exerting pressure on the currency'' to weaken, Prasanna said. ``We attach a reasonable probability'' to an increase in the benchmark rate.

The currency may trade between 40 and 40.50 to the dollar in coming weeks, he said. The median forecast in a survey of 22 analysts compiled by Bloomberg is for the rupee to advance to 39.45 by year-end.

Source:Bloomberg

Bonds climb after RBI holds rates

Indian federal bonds gained on Friday, extending this week's sharp rally after the RBI held policy rates steady and oil prices fell from record highs.

The RBI said on Tuesday it was raising the cash reserve ratio (CRR) by 25 basis points to 8.25 percent, its highest in 7 years, to suck inflation-stoking cash from the system, but left its short-term lending rate unchanged.

At 10:10 a.m., the 10-year bond yield was at 7.88 percent, compared with Wednesday's close of 7.92 percent. Markets were closed on Thursday for a holiday.

The 10-year yield has fallen 27 basis points since Friday.

"Since the RBI had not touched the rates there is a kind of confidence that they will manage the situation through CRR in coming months," a dealer with a private sector bank said.

"However, to me it looks like it is a bit overdone," he said.

Traders said they would take their cues from the latest inflation data, due at noon (0630 GMT) on Friday, and details of government bonds to be auctioned next week.

Wholesale price inflation is forecast at 7.38 percent in the week to April 19 above the previous week's 7.33 percent.

In the last week of March, it hit an annual 7.41 percent, which was the highest since November 2004.

The government is scheduled to auction 100 billion rupees ($2.5 billion) of bonds between May 2-9.

Source:Reuters

DLF

Merril Lynch maintains buy on DLF with a target of Rs 790, reports NDTV Profit. The stock is currently trading at Rs 719, up 2.03% on the BSE

JP Associates

JP Associates has crossed its 200 DMA at Rs 255-260 and the stock now has resistance at Rs 290-300, says Ashwani Gujral, technical analyst, on CNBC-TV18. But the stock may not make new highs after that since a lot of people are stuck at higher levels and one can see selling pressure, he adds. The stock is currently trading at Rs 281, up 3.85% on the BSE

Reliance Money to launch Shariah-compliant investment scheme

Reliance Money on Thursday joined hands with Parsoli Corp to launch the country's first Shariah-compliant Portfolio Management Scheme for investors in India and West Asia seeking to invest as per the Shariah Laws.

The brokerage and financial products distribution arm of Anil Ambani group, Reliance Money would offer this PMS for as low as Rs 5 lakh, the company said in a statement.

Reliance Money plans to market these schemes extensively in India and West Asian Countries.

Terming it as first-of-its-kind tie up, Reliance Money said the schemes would be launched in partnership with Parsoli Corp, which has been recently awarded as the 'Best Islamic Brokerage Firm' in the world for 2007.

The tie-up was announced by Reliance Money CEO Sudip Bandyopadhyay and Parsoli Managing Director and CEO Zafar Sareshwala, it added.

"A significant part of India's population has not been offered appropriate financial products in compliance with the relevant religious sentiments. Shariah-compliant PMS, proposed by Reliance Money with Parsoli Corp, would enable us to tap this sector and reach out to a large section of such investors," Bandyopadhyay said.

As per the understanding, Parsoli would work with Reliance Money to ensure compliance with Shariah Laws for the relevant schemes being launched by Reliance firm. Parsoli would also market other financial products and services being introduced by Reliance Money from time-to-time.

"Currently we offer PMS for as low as Rs 5 lakh with an aggressive and competitive fee structure. We do not charge any fee for returns up to 8 per cent, charge 10 per cent fee for returns up to 20 per cent and charge 20 per cent fee for over 20 per cent returns. We would replicate the same model for the Shariah Compliant Schemes as well," Bandyopadhyay added.

Indian Stock market is looking good

The market is looking good. Sensex is trading at 17525, up 238 points and Nifty is at 5224, up 58 points from the previous close. The CNX Midcaps index is up 1.23% and BSE Smallcaps index is up 1.02%. The market breadth is positive with advances at 875 against declines of 229 on the NSE.

JP Associates

Citi keeps buy on JP Associates with a target of Rs 300, reports NDTV Profit. The stock is currently trading at Rs 281, up 3.83% on the BSE

Sensex adds 300 pts, inflation data eyed

The Bombay Stock Exchange benchmark Sensex on Friday moved up by 310 points in early trade on buying by funds in heavy-weight stocks, tracking firm global Markets.

The 30-share index, which had lost 91.15 points in the previous session, shot up by 310.31 points or 1.77 per cent to 17,597.62 in the first five minutes of trade.

Similarly, the National Stock Exchange index Nifty surged by 132.95 points or 1.62 per cent to quote higher at 5,298.85.

Marketmen said a firming trend in the global Markets after the US Federal Reserve announced a 25 basis point cut in interest rates mainly boosted the trading sentiments.

They said encouraging quarterly earnings announced by some corporate majors also had a positive impact.

The major gainers which supported the Sensex were Reliance Industries, Reliance Communications, Reliance Energy, Larsen and Toubro, Tata Steel, Tata Motors, Maruti Udyog, State Bank of India, ICICI Bank, HDFC Bank and HDFC Ltd. Technology majors such as Infosys Technologies, Satyam Computers, TCS and Wipro were also in positive zone with sharp gains on funds buying.

Geojit Financial Services

Geojit Financial Services has a target price of Rs 75 and it can even go up to Rs 88, says Ashwani Gujral, technical analyst, on CNBC-TV18. The stock is up 13% today, at Rs 66.20 after it moved up 18% on Wednesday, on the BSE.

Tata Steel

Tata Steel has resistance at Rs 850-950 and it would be difficult to cross that level, says VK Doshi, technical analyst, on NDTV Profit. The stock is currently trading at Rs 822, up 0.54% on the BSE

Market opens higher; Nifty above 5200

The markets have opened with smart gains mirrior global peers. Nifty breached 5200 mark. The BSE bankex, realty, power, IT stocks witnessing buying interest.

At 9.56 am, the Sensex is up 302 points at 17590, and the Nifty is up 85 points at 5259.

ICICI Bank, Satyam, DLF, Unitech, Tata Motors are among major gainers.

Fertiliser stocks like Chambal Fertilisers and Nagarjuna Fertilisers are trading with over 3% gain.

Asian Markets:

Asian markets were trading higher. Japan's Nikkei was up 1.80% or 247.54 points at 14,014.40. Hong Kong's Hang Seng surged 2.15% or 554.65 points at 26,310. Taiwan's Taiwan Weighted advanced .072% or 64.42 points at 8,984.34. Singapore's Straits Times rose 2.43% or 76.34 points at 3,224.13.South Korea's Seoul Composite gained 1.11% or 20.33 points at 1,845.80.

US Markets:

Fed's 25 basis point cut doesn't keep Wall Street jittery for too long. Stocks on yesterday rise to the highest level since January after a rally in dollar and strong technology earnings. The Dow gained 189.87 points, or 1.48%, to 13,010. The Standard & Poor's 500 index advanced 23.75 points, or 1.71%, to 1,409.34. The Nasdaq composite index surged 67.91 points, or 2.81%, to 2,480.71.

Market cues:
Inflation data to be released today
DJ poll indicates inflation at 7.42% for week ended April 19
FIIs net buy $85.6 mn in equity on Apr 29
MFs net buy Rs 381.5 cr in equity on Apr 29
NSE F&O Open Int up by Rs 2318 crore at Rs 63175 crore

F&O cues:
Futures Open Int up by Rs 420 crore and Options Open Int up by Rs 1,898 crore
Nifty Futures add 4 lakh shares in OI, at 24-pt premium
Nifty Open Interest PCR at 1.47 Vs 1.36
Nifty Puts add 25 lakh shares in Open Interest
Nifty Calls add 7 lakh shares in Open Interest
Nifty 5200 Put adds 5.4 lakh shares in Open Interest
Nifty 5000 Put adds 4.3 lakh shares in Open Interest
Nifty 5100 Put adds 4 lakh shares in Open Interest
Nifty 5200 Call adds 2.4 lakh shares in Open Interest
Nifty 5300 Call adds 2.3 lakh shares in Open Interest

Source : moneycontrol.com