Posts Tagged ‘bourses’

CURRENCY FUTURE – BETTER FUTURE FOR CURRENCY TRADERS

There is good news for currency traders who would like to trade in currency futures. After trading in dollar-rupee futures, now corporate and retail investors will also be able to trade in currencies such as Euro, and Japanese Yen.

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Currently dollar-rupee futures are trading on three recognized exchanges, NSE, MCX Stock Exchange and BSE. But the currency derivative is liquid only on the first two bourses, which have together posted an average daily turnover of around Rs. 18,566 crore in December, up from a couple of thousand crore when the currency futures trading commenced in the second-half of 2008.

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NSE commenced currency futures trading in India on 29th August 2008. It has witnessed healthy growth in the turnover and open interest positions during its first completed month of currency futures trading in India.

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Brief of currency future

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Currency futures contracts are those contracts which allow investors to hedge against foreign exchange risk and traders to speculate on the movement in Currency. Since these contracts are marked-to-market daily, investors can exit from their obligation to buy or sell the currency prior to the contract’s delivery date.

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Major Profitable accounts

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The introduction of new currency pairs will go a long way in helping market participants, especially international traders, hedge against cross-currency Volatility and mitigate risk in export and imports across all major traded currencies and will add depth to the exchange-traded currency futures market.

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Along with the above mentioned participants, Currency futures trading in India has generated huge interest among Indian retail investors and traders.

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There is a strong demand for information gathering about the intricacies of currency futures from small investors and enterprises. For instance, entities that have borrowings in Euro will get one more avenue, apart from the over-the-counter market that is dominated by banks, to hedge them against volatility in the 16-nation common currency.

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Due to the transparent mechanism of execution in currency futures trade, increased participation by corporations and high net worth individuals, too, could be witnessed.

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Contract specification

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As in the case of the dollar-rupee futures, the contract size has been fixed at 1,000 units each for pound and euro, and 100,000 units for the yen, across 12 concurrently available contracts, one for each month.

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The contracts, like the existing dollar futures, would be cash-settled in rupees and the settlement price would be at RBI’s reference rate for all the four currencies.

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However, there are different initial margins (cash) that an investor needs to put up for trading each currency on day one and subsequently though this has not been changed for the dollar.

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The market regulator has also decided to modify the calendar spread margin to be applied on the dollar-rupee contracts.

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All the new contracts would be quoted in rupee terms, while the outstanding positions would be in the respective foreign currency terms.

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The maximum maturity of the contract would be 12 months, while all monthly maturities from 1 to 12 months would be made available.

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The contracts would be settled in cash in rupees.

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The client-level position limit has been capped at 6 per cent of the total open interest position.

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Responses:

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Market participants responded enthusiastically to the inclusion of these new currency pairs. The three new currency pairs clocked Rs. 1,98,761 contracts resulting from 7,762 trades at a total value of Rs. 1,277.13-crore on the NSE on day first, which is approximately comes out to be 9.61 percent of the total turnover in value terms. Out of the three new pairs, euro-rupee (EURINR) was the most traded currency pair clocking 1, 82,013 contracts.

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Total contracts and open interest in EUR/INR and GBP/INR:



First Traders inception of currency futures 🙂

The first trade in the new currency pairs was executed by East India Securities, IndusInd Bank executed the first trade amongst banks. Union Bank was the first PSU bank to trade and execute the single largest trade. ICICI Bank and State Bank also participated actively. This market has now become bigger than the cash segment of the equity market, which recorded average volumes of Rs. 20,000 crore last month.

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The beauty of exchange-traded currency futures are that they allow a participant to directly buy or sell the Dollar,Euro,Yen or GBP without having an underlying exposure, so it’s also a view-based market. One can take this opportunity of investing smartly in currency futures and gain by every tick.

Stay Tuned for More updates 🙂

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Rabi Sowing Picks Up in State

Hello Friends here we come up with the Latest Agri Commodities updates from various parts of the country.

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Rabi sowing picks up in State

Rabi sowing picks up in State:

The recent rain in several parts of Karnataka seem to be playing a key role in rabi sowing with farmers going in for large-scale coverage of jowar, Bengal gram and sunflower, particularly in the northern districts.


As sowing is in progress, data from the Agriculture Ministry shows that rabi crops were sown on 27.05 lakh hectares of land accounting for 73 per cent progress against the target of 37 lakh hectares as on November 18.


Sowing of maize, wheat, Bengal gram and sunflower continued in the northern districts while transplanting of paddy and sowing of black gram was in progress in parts of Dakshina Kannada and Udupi.

Bengal gram has been sown on 8.78 lakh hectares of land against 7.67 lakh hectares during the corresponding period last year, while jowar, the major rabi crop, has been sown on 9.25 lakh hectares, wheat on 1.9 lalkh hectares, and sunflower on 2.90 lakh hectares.


Overall coverage of pulses such as Bengal gram, horse gram, black gram, green gram, cowpea and avare stood at 9.93 lakh hectares against the coverage of 8.99 lakh hectares last year.


However, the area under cereals — rice, jowar, ragi,maize, wheat, and minor millets — trails at 12.32 lakh hectares against 14.39 lakh hecatres during the corresponding period last year.

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In Other major Commodities Updates we can see  FMC has recently instructed bourses to ensure compliance of the PMLA and Sugar production in India may exceed estimated figures.

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Commodity bourses must follow PMLA norms : “FMC”

In order to step up the regulatory grip on commodity derivatives market, Forward Markets Commission (FMC) has recently instructed bourses to ensure compliance of the Prevention of Money Laundering Act 2002 (PMLA) by their members.


“This is more of a pre-emptive step to prevent unscrupulous money coming into our (commodity futures) market,” BC Khatua, chairman, FMC, said.

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Sugar output may beat estimates “Survey”:

Sugar production in India, the world’s second-largest grower, may be 11 percent more than estimated after farmers boosted planting and yields improved because of increased fertiliser use.


Output may jump to 17.68 million metric tonne in the season started Oct. 1, according to interviews with 631 farmers across six states by Geneva-based SGS SA for Bloomberg.


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SEBI’s Auction Move on FPOs Impresses Marketmen :)

 

SEBI's Auction Move on FPOs Impresses Marketmen

SEBI's Auction Move on FPOs Impresses Marketmen

SEBI’s has planned to remove the cap price for the follow-on public offerings and this idea seems to be impressing market players.

SEBI has said that  it would introduce “pure auction as an additional book building mechanism for institutional investors for follow-on public offerings (FPOs).”

Analysts and market men feel that this is going to generate loads of excitement and fun for market players, as those investors who are convinced about a particular issue will invest at a higher price to seek allotment and those not-so-convinced can invest at a lower price.

Merchant bankers said it will be interesting to see how this will work as there are a few PSU FPOs likely to hit the market soon.

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PSUs likely to come out with FPOs include NMDC, MMTC, Neyveli Lignite Corporation, Rashtriya Chemicals and Fertilizers, National Fertilizers, Coal India and Engineers India

As of now, the IPO price is determined through a price band (which has a lower and upper level).

An auction or floor price is the minimum price at which bids can be made for an IPO.

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Meanwhile, merchant bankers welcomed SEBI’s announcement on Monday that exchanges could have a separate platform for Small and Medium Enterprises (SME).

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As the primary market size grows, the smaller companies are getting lost amid the big ticket IPOs.
Having such exclusive guidelines for SMEs is definitely a good idea, said merchant bankers.

SME platform SEBI on the lines of the AIM on the London Stock Exchange will be better.

Those SMEs with a paid-up capital of between Rs 10 crore and Rs 25 crore have an option of either being on the SME exchange or the main bourses.

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According to the new guidelines, SMEs should have a maximum paid up capital of Rs 25 crore for listing.

For an investor the minimum application size in an SME IPO will now be Rs 1 lakh.

Though such a limit might seem like it will prevent the retail investor of small means from investing in SME IPOs, merchant bankers said that it is a good move.

“This will allow retail investors to take more informed decisions. It will protect these investors as the chances of manipulation with respect to smaller companies are much higher. Those investors with the right amount of knowledge and liquidity will be the ones investing in these IPOs,” said Mr Jagannadham Thunuguntla, Head of Equity at SMC Capital.

Having the merchant bankers underwriting the IPO will make sure that they price the issue properly and also provide proper valuations.

Merchant bankers are also happy that for an SME issue the minimum number of investors is only 50 for a particular issue.

“For an issue, as of now, there has to be a minimum of 1,000 investors,” said Mr Thunuguntla.

Trading Hours of Bourses Extended by SEBI :)

Trading Hours of Bourses Extended by SEBI

Trading Hours of Bourses Extended by SEBI

Market regulator SEBI on Friday extended the trading hours of bourses by up to two-and-a-half hours from 9 am to 5 pm, a move that may help in bringing back the trade that was seen shifting to Singapore Stock Exchange.

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It has been decided to permit the stock exchanges to set their trading hours (in the cash and derivatives segments) subject to the condition that the trading hours are between 9 am and 5 pm,” SEBI said in a statement.

The new trading hours would now help integrate the Indian bourses with Singapore and other Asian markets in the morning hours, and the European market in the evening hours, said SMC Capitals Equity Head Jagannadham Thunuguntla.

“Some trade that had shifted to SGX Nifty (Indian Nifty traded in Singapore Stock Exchange) can now be brought back to the country,” he said.

The current market hours stand from 9.55 am to 3.30 pm.

In Singapore, trading sessions are held between 9 am to 12.30 pm and 2 pm to 5 pm (local time).

In addition, there is pre-open routine from 8.30 am to 9 am and pre-close routine from 5 pm to 5.06 pm.

Singapore is around two and a half hours ahead of India.

This would provide an opportunity to NSE to try and align their timings to that of a few Asian markets like the SGX since this exchange permits trading in Nifty.

With market regulator SEBI now allowing longer trading hours, it is now up to the bourses to decide on the duration and when to reset their trade timings.

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Thunuguntla said, “All stock exchanges are likely to go for the maximum possible trading hours as they have been demanding it to be extended to 9 am to 9 pm.”

He said there is a serious competition ongoing between Bombay Stock Exchange and National Stock Exchange, and then there is the new competitor MCX-SX.

“I will be surprised if any bourse not utilises the full timing,” he added.

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Investors Wealth Up 80% in Just Over Five Months :)

Investors-gain-Rs25lakh-cr

Investor wealth has increased by over Rs 25 lakh crore in just over five months from the beginning of the current financial year, on improving sentiments in the domestic and global markets.

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According to an analysis of the valuations for the period (Apr 1-Sep 18), the combined market capitalization of all the firms listed on the Bombay Stock Exchange increased by Rs 25,02,749 crore or nearly 80 per cent.

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Analysts believe the rise in investor wealth has been due to the upbeat market sentiments on indications of global economic recovery.

“The markets have given a healthy return on the back of positive mood among domestic and international investors,” SMC Global‘s Vice President Rajesh Jain said.

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The total market valuation increased to Rs 56, 35,835.75 crore on Sep 18 from Rs 31,33,086.7 crore on Apr 1.

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While, the 30-share benchmark index Sensex has given a healthy return of nearly 70% to hover around 16,700 level in September against 9,900 level in April.

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The Sensex companies, which comprises of about 45 per cent of the total market capitalisation of all the companies, saw its combined market valuation rise by over Rs 10,00,000 crore in the reviewed period.

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The combined market capitalisation of the 30 blue-chip stocks rose to Rs 25,31,831.55 crore on Sep 18 from Rs 15,31,252.34 crore on Apr 1.

However, the total turnover of the Sensex companies dropped to Rs 1,597.42 crore on Sep 18 from 1,705.52 crore on Apr 1.

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Jain also said that the drop in the volumes is due to less participation of retail investors in the markets, which reflects that the run is mainly on account of institutional money, both domestic and international.

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Meanwhile, foreign investment into the Indian stock markets are likely to cross USD 10 billion-mark by the end of this month.

Huge sum of USD 9.8 billion (Rs 47,674 crore) have already been poured into the bourses by overseas entities so far in 2009.

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Lehman Blues?? Not Anymore ;) Market Scales New Heights ;)

lehman brothers

Shrugging off the deadly blow received at the time of Lehman Brothers’ collapse, stock markets in emerging countries, led by India, have moved significantly higher from the low levels witnessed a year ago.

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Analysts feel green shoots like recovery in economic growth and return of stability in the financial systems have led to a revival in confidence and risk appetites.

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Emergence of these green shots has brought confidence towards a full fledged recovery and return of the risk appetite, which is also reflected on the bourses which moved up significantly higher from their low levels.

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Experts seem to agree on the fact that Lehman is history and Indian markets are not under any pressure. They have recovered and are trading at good levels.

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The benchmark index Sensex, which is currently around 16,200 points, has gained nearly 20 per cent since September 15 last year, the day when Lehman filed for bankruptcy. The index had been at 13,531.27 points in the same day last year.

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Market analysts said the collapse of Lehman Brothers had been the ultimate blow for financial markets, which were already in deep bearish mood.

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“The closest victims were the capital markets of United States and that of Europe. The Indian markets also faced severe fall,” SMC Capitals Limited CEO and Equity Head Jagannadham Thunuguntla said.

However market analysts feels that India and China would play an important role in determining the global economic health in times to come.

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Analysts said that fortunately unlike other recessions which followed the bursting of asset bubbles, this time around apart from recapitalization of the financial system, the governments of the major economies of the world acted swiftly by slashing interest rates to unprecedented levels and providing fiscal stimuli.

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These measures have aided the return of stability to the financial system and economic activity.

The factors which have helped the Indian markets in recovery include re-election of the UPA government, enabling the political stability, and significant domestic demand.

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“These factors have brought back the interest of the FIIs into the Indian capital markets and enabled significant Foreign Institutional Investors inflows,” Thunuguntla added.

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Weekly Equity Update 21st-28th August :)

Weekly Update

After closing almost flat in penultimate week, in the week gone by markets closed in green terrain following the global markets which rallied to 10-month highs buoyed by renewed hopes that the global economic recovery is gathering pace and is pulling out of its deepest recession since the 1930s.

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Closer home, revival of monsoon rains, fresh buying by FIIs and firm European market boosted sentiment.

Moreover the statement made by FM that government expects GDP growth to accelerate to over 8% in 2010-11, with the economy showing signs of recovery, acted as a booster to markets.

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However it is expected that higher food prices will lead to WPI inflation accelerating to 6% in the fiscal year to March 2010.

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On the world economic front, the US economy shrank at an annual pace of 1% between April and June 2009, unchanged from an initial estimate released last month.

From the United Kingdom, its economy contracted 0.7% in the second quarter as the recession prompted companies to cut investment and inventories while consumers scaled back spending.

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Japan‘s exports tumbled and stood at 35.7% for a tenth straight month in July as demand from all of the nation’s major markets deteriorated.

Trend of all markets is up though Shanghai has topped out and moving down which is a cause of concern.

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Nifty has support between 4600-4500 and Sensex between 15500-15000.

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Once again commodities have shown the buoyancy that they can hold the support.

One or two day’s correction in the prices couldn’t break the trend of commodities. However upside is limited.

Resembling last week, current week as well is jam-packed of event risk as GDP data of many countries will release which will make commodities volatile throughout the week accordingly.

Precious metals may trade in a range with upward bias.

Back at home, to see more upside it has to trade above the level of 15000 in MCX.

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In agro commodities, buying may return in spices as recent fall in the prices has made Indian parity more competitive in international market.

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MARKET OUTLOOK

Trend of all markets is up though Shanghai has topped out and moving down which is a cause of concern.

It seems that currently US markets are determining the overall trend and our markets might be linked up with US markets now as we have broken above 4730 Nifty.

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If US markets don’t react, then we should be seeing higher levels ahead.

Nifty has support between 4600-4500 and Sensex between 15500-15000.

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EQUITY TABLES :

1. Indian and Sectoral Indices :

weekly indices update

2. BSE Movers and Shakers & IA Equity Figures

BSE Movers and Shakers & IA Equity Figures

3. NSE Movers and Shakers :

NSE Weekly Movers and Shakers

4. MONEY MARKET & ECONOMIC INDICATORS :

MONEY MARKET & ECONOMIC INDICATORS

5. GLOBAL INDICES :

Weekly GLOBAL INDICES


From the United Kingdom, its economy contracted 0.7% in the second quarter as the recession prompted companies to cut investment and inventories while consumers scaled back spending.

Weekly Equity Update 14th-21st August :)

EQUITY MARKET UPDATE1


The week gone by started on a weak note and domestic market nosedived deep into red terrain on huge selling pressure over the ground as unsatisfactory US consumer sentiment report weakened concerns about the recovery in global economy.

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In addition, weak Asian markets along with negative European markets also took huge beating on the bourses.

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Furthermore a poor monsoon rattled the markets, raising fears it could hurt economic prospects of corporates. However it is expected that market may remain volatile next week.

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In this year poor rains have raised worries about growth in India’s domestic-demand driven economy.

But a ray of hope was shown by FM saying that the government will take all the required steps to control drought.

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India has attracted 8% higher FDI to $2.58 billion in June 2009, from $2.39 billion in June 2008.

FII inflow in calendar year 2009 totaled Rs 35,773.40 crore. Inflation for the week ended 8th August stood at -1.53%with the previous week’s annual decline of -1.74%.

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MARKET OUTLOOK

Trend of world markets is still up. US and Europe were holding strong whereas a correction had come in Asia, but overall they are all up.

Shanghai looks to have topped out but till we are holding above 4450-4350 zone in Nifty, there is no need to worry.

Sensex has support between 15000-14700 levels and Nifty between 4450-4350 levels. 🙂

However it is expected that market may remain volatile next week!!

Further more Global markets will also play a pivotal role in setting the direction. Inadequate monsoon rains may continue to weigh on investor sentiment. 😦

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TABLES :

1. Indian and Sectoral Indices :

weekly indices update

2. BSE Movers and Shakers & IA Equity Figures :

Weekly BSE Gainers- Losers update🙂

3. NSE Movers and Shakers :

NSE Weekly Movers and Shakers

4. MONEY MARKET & ECONOMIC INDICATORS :

MONEY MARKET & ECONOMIC INDICATORS

5. GLOBAL INDICES :

Weekly GLOBAL INDICES

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NEWS ROUND UP

Economy

After falling for three weeks in a row, inflation rate rose to -1.53 per cent for the week ended August 8, primarily due to dearer primary articles, especially food items.

The inflation rate for the previous week ended August 1 was -1.74 per cent and stood at 12.82 per cent during the corresponding period in 2008.

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Oil & Gas

·Reliance Industries may sell part of its stakes in some of the overseas oil and gas blocks to lower its exploration risk.

RIL, through its wholly-owned subsidiary Reliance Exploration and Production DMZ, holds interests in 15 overseas exploration blocks and is considering farming-out a part of its stake.

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Realty/ Infrastructure

DLF, the country’s largest realty firm, bagged a 350-acre plot for Rs 1,750 crore in Haryana for developing a recreation and leisure project, making it one of the costliest land deals in recent times.

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Information Technologies

·Geometric Ltd has announced the release of version 2.0 of its visualisation product, 3DPaintBrush.

This is an innovative visualisation and rendering tool that helps create near photo-realistic images, animations, and videos from 2D models in real-time.

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Trend of world markets is still up. US and Europe were holding strong whereas a correction had come in Asia, but overall they are all up. Shanghai looks to have topped out but till we are holding above 4450-4350 zone in Nifty, there is no need to worry.

Market trading firm: Sensex hits 10-month high :)

Sensex hits 10-month high

Sensex hits 10-month high

After a gap up opening, the domestic markets are marching towards the northward on the back of strong rally across other Asian markets. Further, bulls are driving the major Indian bourses to its highest in 10 months, with an expectation that the government will increase public spending in the budget next month to boost economic growth.

Buying interest has emerged across all the sectoral indices.

Among the BSE sectoral indices, Metal, Consumer Durable (CD) and Capital Goods (CG) stocks gained by 3.80%, 3.51% and 3.46% respectively.

Overall market breadth is positive. Out of the total 2,482 stocks traded at BSE, 1,670 advanced, 759 declined while 53 remained unchanged.

Gainers from the BSE Sensex Pack are Tata Power Company Ltd,HDFC Bank, Reliance Infrastructure, L&T, Sterlite Industries and ONGC.

SMC Global Securities : Money Wise Be Wise !

http://www.smcindiaonline.com/index.asp