Open Interest is mostly used to confirm a trend for a particular futures  contract, For eg, lets look at Reliance 1000 May CALL, the open interest  might tell us that there have been 5 options open in the month of May, a  trader might then wonder does this refer to the number of contracts bought or sold.

*Working*
When a trader buy’s or sell’s an option, the transaction needs to be  entered as either an opening or a closing transaction. If he buy’s 5  RELIANCE May 1000 CALL, he is buying the calls to ‘open’, i.e he is opening  his position in a futures contract, which causes the Open interest to rise  by 5, and then after sometime(within) the month he decides to sell his  contract i.e close his position in a particular contract, then he is  causing the open interest to go down by 5.

Open interest applies primarily to the futures market, it helps the measure  the flow of money into the futures Market. For each seller of a futures  contract (eg RELIANCE 1000 CALL) there must be a buyer of that contract.  Thus a seller and a buyer combine to create only one contract.

A rise in open interest in a futures contract along with its price  indicates bullishness, which means investors are creating long positions  and vice versa.

The open interest position that is reported each day represents the  increase or decrease in the number of contracts for that day, and it is  shown as a positive or negative number.

*Advantages of monitoring Open Interest*
Changes in the Open Interst as mentioned earlier can help a trader  interpret the future trend of a particular contract.

*Open Interest RISING ->* Indicates that the present trend (up, down, flat)  will continue

*Open Interest FALLING->* Indicates that the prest trend(up, down, flat) is  likely to change or is coming to and end.

The Working:
The procedure for a pre-approved loan is largely similar to a regular home loan application — you need to submit the documents asked for to the bank along with the processing fee. These will include — depending on whether the applicant is a salaried individual, self-employed professional or entrepreneur — identity and residence proofs, the latest salary slip, Form 16, past six months’ bank statement, past three years’ income-tax returns (self and business) as well as profit/loss statements and balance sheet, certificate and proof of business existence and so on. However, a desirable income level is not the only criterion. Your repayment capacity, too, is a critical parameter. We take into account the loan-seeker’s income-too bligation ratio. Hypothetically, if the applicant’s income is 1 lakh, his total repayment outgo should not be more than . 55,000-60,000.

Even after your loan is sanctioned, the disbursal will take place only after you identify a property that passes the lender’s due diligence test. There is no typical period within which the loan seeker is required to avail of the disbursement. However, we keep the file open for six months and if the applicant does not act within this period, we send reminders to the individual. The validity period varies with each bank. For instance, State Bank of India, which has been publicising this facility of late, requires the borrower to identify the property within 60 days for the sanction to be valid. “Interest rate, though, cannot be locked-in — the rate prevalent at the time of disbursal will be the effective rate. In the case of a sanction, the validity could range from 1-3 months. Prefer a period of one month. While the interest rate may change at the time of disbursal, the spread over the bank’s base rate will not be altered for the borrower, unless a significant period of time has elapsed.

Benefits For The Borrowers:
Buying a property typically involves a mountain of paperwork — with the builder and, later, with the lender. Availing of a pre-approved loan would mean that at least one part of it is taken care of. The borrower’s creditworthiness is established already and this helps in negotiating on rates with the builders. Secondly, your total transaction turnaround time comes down. Also, banks provide advice to home-seekers on properties that may meet their criteria. Moreover, lenders have tie-ups with builders for various projects. “In the event of the borrower (with a preapproved home loan) finding it difficult to make a decision, the bank may direct him/her to the right kind of project. Thus, if both the loan as well as the project is pre-approved, the processing procedure will be much shorter.

So, if you have identified a good deal which is dependent on how soon you arrange for funds, a pre-approved home loan will come in handy. For the borrower, the key advantage is that he knows his eligibility. Some builders acknowledge those with pre-approved home loans as serious buyers, and this may strengthen your bargaining power when you sit across the table to negotiate. Such schemes also merit consideration in case the bank’s procedure of disbursing the loan is likely to be a long drawn out one.

Tread Cautiously:
However, bear in mind that it is certainly not a win-win situation always. What you stand to lose if you decide to defer your purchase or avail of a loan from another lender is the processing charge. The processing fee is not refunded under any circumstance. In case of HDFC, it is 0.5% of the loan amount or 10,000, whichever is lower. We retain 0.25% of the loan amount or 5,000. Therefore, you need to factor in the uncertainty regarding the actual disbursement while signing up for such loans. Even if you do make the decision within the prescribed cut-off date, the disbursal may be stalled in case the bank does not find the property to be suitable.

I don’t see much value in such schemes, unless you are unsure of the amount of loan that you may be eligible for. The processing fee may have to be forgone in such cases. If no processing fee is levied, you can consider going ahead.

In short, though these schemes score high on utility, they may not be suited for all. You could consider these schemes if you are comfortable with the prevailing rate of interest, the amount required for down payment is in place and you have already narrowed down your search to a particular locality, the size as well as the kind of apartment and the developer. If you are starting from scratch, it would be probably safer to finalise the property before proceeding with the loan-related paperwork.

READY RECKONER
Ø The pre-approved home loan procedure is largely similar to that of a regular home loan

Ø Documents required include identity and residence proofs, latest salary slip, Form-16, past six months’ bank statement and past three years’ income-tax returns

Ø Even after the loan is approved, the disbursal will take place only after the property passes the bank’s scrutiny

Ø The period during which you have to avail of the disbursal can range from 1-6 months, depending on the bank

Ø The key advantage of obtaining such loans is that the total time taken to close the transaction comes down considerably

Ø However, if your chosen property doesn’t pass the suitability test or you fail to seal a deal before the deadline, you may have to forgo the processing fee

There are many different indicators. Below are some of the most common ones used by traders. You must understand that not all indicators are equally important. You must learn about all of them, observe reactions to them, and then form an opinion on which ones help you in your specific style of trading. And to make it even more interesting, their importance changes with time and market perception.

Consumer Price Index (CPI)
The Consumer Price Index is a measurement of the cost of living as determined by the U.S. Bureau of Labor Statistics. The CPI is a widely followed inflation indicator. It compares relative price changes over time for a fixed basket of goods and services used by consumers. The CPI has the potential to overstate inflation because it does not adjust for the substitution of goods and the rapidly changing prices of new technology. Release schedule: monthly, around the 13th at 8:30 a.m. EST.

Producer Price Index (PPI)
The Producer Price Index measures the average change over time of wholesale prices received by domestic producers for their output. This index has several components: commodity, industry sector, and stage of processing. The U.S. Bureau of Labor Statistics produces the PPI. Release schedule: monthly, around the 11th at 8:30 a.m. EST.

Gross Domestic Product (GDP)
The Gross Domestic Product provides the total value of goods and services produced within the borders of the United States. Real GDP is the most comprehensive measure of U.S. economic activity. The change in output is measured in realterms (inflation has been removed). The U.S. Department of Commerce, Bureau of Economic Analysis releases this information. Release schedule: quarterly, during the third or fourth week of the month following the previous quarter at 8:30 a.m. EST.

M2 Money Supply
This is a measure of the United States’ supply of money, including M1 (currency in circulation, demand deposits, non-blank traveller’s checks, and other checking deposits) plus money market funds, savings accounts, overnight euro dollars, and time deposits under $100,000. The Board of Governors of the Federal Research System provides this information. Release schedule: weekly and monthly.

Employment Reports
The employment reports are the most timely and broad indicators of economic activity. They provide results for two separate sectors. A household survey generates an unemployment rate and a business survey determines non-farm payrolls, average work week, and average hourly earnings figures. The U.S. Department of Labor, Bureau of Labor Statistics provides these reports. Release schedule: first Friday of the month at 8:30 a.m. EST.

Institute of Supply Management (ISM)
The Institute of Supply Management provides the results of a national survey of purchasing managers that includes data on items such as new orders, production, employment, inventories, prices, import orders, and delivery times. A reading above 50 percent indicates expansion and below 50 percent, contraction. This particular report now contains two sections. The first reports on goods and raw materials and the second reports on the purchases of services. Release schedule: first business day of the month for the prior month at 10:00 a.m. EST.

The following measurement tools will help you evaluate a company and determine the value of its stock.

Price-Earnings Ratio
The price-earnings ratio is the most popular measure. It consists of finding a company in which the price-earnings (P/E) ratio is low when compared to similar companies. To find the price-earnings ratio, divide the stock’s current price by its earnings per share:

Price-earnings Ratio = Current Stock Prices/Earnings per Share

Therefore, if a stock is selling for $35 now and its earnings last year were $7.00 per share, the P/E ratio would be 5 ($35 Ö $7.00 = 5). This means that for every $1.00 the stock earns, investors are currently willing to pay $5.00. However, investors also pay for future earnings. If the same $35 stock is expected to earn $9.00 per share next year, then the P/E ratio would be 3.89 ($35 Ö $9.00 = 3.89).

The idea is to find stocks with a significantly lower P/E ratio than other stocks in their sector. The P/E ratio cannot always be calculated if the company suffers a loss or breaks even, as there would be no earnings to compute. Expectations of popular stocks can be so high that they may sell for prices way above the market value.

Cash Flow
Cash flow is an important measure of a business for investors because it is a way of determining a company’s ability to pay dividends and more. Generally, cash flow is defined as the net income of a business plus depreciation and the value of other non-cash assets.

Companies must have cash to keep going. They need money to pay for all the goods and services they use, as well as making capital improvements and paying operating costs (wages, raw materials, gas for company cars, electricity, etc.). Companies with a high-level debt have to pay a significant amount in interest to service that debt. If an opportunity suddenly appears, perhaps to buy a strategically located piece of land or another firm that would help the business, cash-poor companies may not have the money to make the deal.

Most important, perhaps, is that during hard times, a company with a cash cushion is likely to have a higher probability of making it through. Companies that have enough cash to survive the down periods are in a good position to make clearheaded judgments and keep their enterprise afloat.

Price-Earnings- to-Growth Ratio
The price-earning- to-growth (PEG) ratio is used to determine a stock’s value while taking into account earnings growth. The calculation is as follows:

PEG Ratio = Price/Earnings Ratio

Annual EPS
Growth PEG is a widely used indicator of a stock’s potential value. Many consider it to be a stock’s potential value. It is favoured over the price-earnings ratio because it also accounts for growth.

Keep in mind that the numbers used are projections so they can be less accurate. Also, there are many variations when using earnings from different time-periods (for example, one year versus five years). Be sure you know the exact definition your source is using.

Beta
Beta is a measure of a stock’s relative price volatility to the S&P 500. For example, a beta of 1 indicates that for every one-point move in the S&P 500, the stock would move 1.0. A beta of 1.5 indicates that a one-point move in the S&P 500 would move your stock 1.5.

Book-to-Bill Ratio

The book-to-bill ratio describes the technology industry’s demand to supply, or the number of orders on a firm’s “book” compared to the number of orders filled.

This ratio measures whether the company has more orders than it can deliver (greater than 1), the same number of orders that it can deliver (equals 1), or fewer orders than it can deliver (below 1). This monthly figure is used frequently for companies in the technology and chip (semiconductor) sector.

Price-to-Book Ratio
The price-to-book ratio is used to compare a stock’s market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter’s book value. (Book value is simply assets minus liabilities) .

A lower price-to-book ratio could mean that the stock is undervalued. It could also mean that something is fundamentally wrong with the company. As with most ratios, however, be aware that it varies considerably by industry.

This ratio also gives some idea of whether you are paying too much for the stock, when the amount that would remain if the company went bankrupt immediately is considered. This is also known as the price-equity ratio.

Investment refers to a placement of funds in some assets that will be held over some period of time with the expectation that the funds will grow. Each one of us has assets of some kind, ranging from physical assets to financial assets. For our purposes, investment will mean a measurable asset retained in order to increase one’s personal wealth.

The prime motive behind investing is that we want to improve our future welfare. Sources of funds may be from assets already owned, savings or foregone consumption or borrowed money. By foregoing consumption today and investing the savings, we expect to enhance our future consumption possibilities. Anticipated future consumption may be by other family members, such as education funds for children or by ourselves, possibly in retirement when we are less able to work and produce for our daily needs. Regardless of why we invest we should all seek to manage our wealth effectively, obtaining the most from it. This includes protecting our assets from inflation, taxes and other factors.

The sooner one starts investing the better. Your investments get more time to grow, whereby the concept of compounding (as we shall see later) increases your income, by accumulating the principal and the interest or dividend earned on it, year after year.

Three rules of investment:
Invest early Invest regularly Invest for long term and not short term Invest Early: The sooner you start the better. Start investing in small amounts, continuously for a long time, money grows due to the power of compounding. If you start investing when you are single you will be able to save maximum. The best policy is to start saving from the moment you begin earning. Invest Regularly: Develop the habit of adding to your recurring deposit / systematic investment plan of mutual fund / deferred annuity account on a regular basis, perhaps monthly or quarterly. By investing regularly with SIP of mutual funds you take advantage of a strategy called rupee-cost averaging. Regular investing, however, does not ensure a profit or protect against loss in declining market scenario. Invest for Long Term and Not Short Term: If you decide that your money can work for you over a long period of time, then better compounding works.

Consider this: Rs 1,000 invested at 8% earns Rs. 80. Left to compound, the original Rs.1,000, plus accumulated interest, will earn Rs.160 in the 10th year, Rs.507 in the 25th year, and Rs.1,609 in the 40th year — returns of 16%, 51%, and 161%, respectively, on the initial Rs.1,000.

The proper choice of investment instrument can actually make it almost simple to realize your goals. In other words, right choice of investment will improve your present life and let you look ahead to the future too. It allows you to understand how today’s financial decision affects other areas of your finances. For example, buying a particular investment product might help you pay off your housing loan faster or it helps to support your retirement significantly. One must view each financial decision as part of a whole and also consider its short and long-term effects on your financial objectives. Surprisingly, many of us do not have any type of formalized investment plan in place.

Some tax-saving options:

Public Provident Fund (PPF)

It is an ideal investment avenue for those who seek to preserve their capital. The returns are to the tune of eight percent and are tax free. An investment in PPF up to a ceiling of Rs 70,000 is also allowed as a deduction from taxable income, under Section 80C.

Mandatory for the salaried class, Employee Provident Fund (EPF) provides tax-free returns to the tune of 8.5 percent. A deduction of up to Rs 1 lakh is allowed under Section 80C.

National Savings Certificate (NSC)

You can also invest in NSCs to avail tax deduction under Section 80C. The interest accrued every year in NSCs is deemed to be reinvested and thus eligible for Section 80C deduction.

Home loan

The principal component of the EMI towards a home loan qualifies for deduction under Section 80C. This deduction has a ceiling of Rs 1 lakh.

Infrastructure bonds
Parking Rs 20,000 in tax free infrastructure bonds can benefit you, as it provides an additional tax deduction of the invested sum. It has a lock-in period of five years and tenure of 10 years. The interest earned is subject to tax.

Medical insurance
If you are thinking of a medical insurance for yourself and your family, now is the time to act. Premiums paid on medical insurance policies for yourself, spouse and children can be deducted from your taxable income under Section 80D, up to a maximum of Rs 15,000. You can also claim a tax deduction of up to Rs 15,000 on premiums paid for health insurance cover of your parents.

Life insurance

Buying or renewing a life insurance policy allows the premiums to qualify for deduction under Section 80C of the Income Tax Act, within the overall limit of Rs 1 lakh per annum. The proceeds from a life insurance policy on maturity are exempt under Section 10(10D), subject to the condition that the premium paid in any year is not more than 20 percent of the sum assured.

Equity-linked savings schemes

Equity-linked savings schemes (ELSS) are mutual fund schemes that are eligible for deduction under Section 80C.

Impact Of Income Tax Deductions On Net Tax Liability

Tax saving allocation considered:

• Rs 1 lakh under Section 80C

• Rs 20,000 under Section 80CCL

• Rs 30,000 under Section 80D An education cess of three percent is
applicable on net tax liability. This is not included in the
calculations shown here.

CASE I: Individual earning Rs 4 lakhs per annum

In case of no investments in any tax-saving instruments:
Tax payable under 10 percent IT slab – Rs 24,000.

In case tax-saving investments are made:
Total deductions: Rs 1.5 lakhs Net taxable income: Rs 2.5 lakhs Income
tax payable: Rs 9,000 Effective tax saving: Rs 15,000

CASE II: Individual earning Rs 7 lakhs per annum

In case of no investments in any tax-saving instruments:
Tax payable under 10 percent slab: Rs 34,000 Tax payable under 20
percent slab: Rs 40,000

In case tax-saving investments are made:
Total deductions: Rs 1.5 lakhs Net taxable income: Rs 5.5 lakhs Income
tax payable: Rs 44,000 Effective tax saving: Rs 30,000

CASE III: Individual earning Rs 10 lakhs per annum

In case of no investments in any tax-saving instruments:
Tax payable under 10 percent slab: Rs 34,000 Tax payable under 20
percent slab: Rs 60,000 Tax payable under 30 percent slab: Rs 60,000

In case tax-saving investments are made:
Total deductions: Rs 1.5 lakhs Net taxable income: Rs 8.5 lakhs Income
tax payable: Rs 1.09 lakhs Effective tax saving: Rs 45,000

1) List down all your debts
You need to take stock of all your loans and borrowings. It could be credit card due, personal loan, car loan, housing loan, education loan, loan from FD, loan from insurance policies, loan from your employer, hand loan and so on. For each and every loan you need to note down how much you owe, the present interest rate, EMI, Number of months to be paid.

2) Negotiate for lower interest rates
If you could negotiate the interest rate and bring it down, then you can come out of debt quicker. Most of the credit card companies come forward for negotiation if you sincerely show interest in repaying. They need not run after you to collect the debt. It will reduce their expenses. So they will be happy to negotiate. Balance transfer offers from credit cards are also a way to reduce your interest rate.

3) Refinancing and consolidation
Replacing a loan with another is known as Refinancing. By doing a refinance it should reduce your interest rate and it should bring down the time you are in debt. But most often people go for refinance that provide them lower EMI but increasing the time they stay in debt.

4) Categorise your debt
Housing loan can increase your net worth over a period of time. Housing loan gives you tax benefit also. For a business man car loan provides some tax benefit. Based on these factors a debt needs to be categorized. This will help us in comparing different loans.

5) Prioritize your debts
After sorting out various loans, now we can comfortably prioritize the loans. Obviously this will be based on the interest rates and tax benefits. At times paying off a small loan first can give you a lot of motivation to get out of debt.

6) Creating and Executing a Debt payoff plan
You need to create a debt pay off plan with different scenarios. So that you can find out how some more savings or a different repayment order will help you to get out of debt sooner. When creating a plan, you need to choose one which is comfortable to your attitude. Otherwise, you may not execute it properly.

7) Refrain yourselves from applying for fresh loans
You need to make a vow that you will not be adding any fresh loans, till you come out of all your debts completely. Think for a moment, how you will feel when you become debt free. This will give you a lot of positive energy to come out and stay out of debt.

8 ) Postpone buying major assets
Buying a property or any other assets need to be postponed till you get out of debt. With your new ownership comes the new, probably large and unpredictable expense. This can make you deviate from your debt pay off plans and at times the consequences could be uncontrollable.

9) You stop using your credit card
There are two groups. One group of people uses the credit cards responsibly. That is they will repay the credit card dues in full when they receive the bill. The other group will pay the minimum amount due and carry forward the balance amount due. If you belong to the second group, you need to stop using credit cards temporarily. Take out and keep your credit cards in the locker. Once your financial situation and buying habits improve, then you can start using your credit cards again.

10) Change your spending habits.
Being in debt obviously means that you have been living beyond your means. The solution is very simple. Spend less than you earn and you will get out of debt soon. You need to change your spending habits. Then only this simple solution will be achievable. If you buy things you don’t need, you’ll soon sell things you need. Don’t save what is left after spending; spend what is left after saving.

11) Involve all your family members
You need to inform all your family members and dependents about your debt status. Then you will be able to take decisions with much more clarity. Moreover, if your family members know about your debt, they will also change their spending habits and support you in getting out of debt faster. Consider the postage stamp: Its usefulness consists in the ability to stick to one thing till it gets there. Similarly, you need to stick to your debt pay off plan till you get out of it.

The market opened on a firm note on positive Asian stocks. It was hovering near the day’s high after hitting fresh intraday highs in morning trade. It surged to hit fresh intrday highs in mid-morning trade. It extended gains in early afternoon trade. Market extended gains to strike fresh day’s high in afternoon trade. It was hovering near the day’s high in mid-afternoon trade. It surged to hit fresh intraday highs in late trade.

The headline inflation eased slightly in January on some moderation in manufactured products. The wholesale price index (WPI), India’s main inflation gauge, rose 8.23% in January from a year earlier. The index rose 8.43% in December from a year earlier. Food prices in the WPI index jumped 15.7% in January compared with 13.6% in December. As per provisional figures, foreign funds sold shares worth Rs 537.71 crore while domestic funds bought shares worth Rs 519.67 crore on Friday, 11 February 2011.

The government expects headline inflation to ease to 7% by end March, Finance Minister Pranab Mukherjee said on Monday, matching other government forecasts.

The Q3 December 2010 results season is drawing towards a close. The results announced so far showed that the combined net profit of a total of 2,983 companies rose 21.2% to Rs 86112 crore on 18.8% rise in sales to Rs 938018 crore in Q3 December 2010 over Q3 December 2009.

There are concerns of slowdown in corporate profit growth going ahead. With the rise in key policy rates by the Reserve Bank of India (RBI) recently, interest cost will only rise in the coming quarters that could hurt earnings going forward. If raw material costs keep rising at a fast clip, companies will feel the heat of slowing sales growth and rising cost of operations that could start eating into profit growth.

European shares edged lower after hitting 29-month high early on Monday as talk of slower-than-expected Chinese inflation data and strong China trade figures supported market. The key benchmark indices in France and UK fell by between 0.19% to 0.22%. Germany’s DAX up 0.24%.

Asian stocks rose on Monday as investors greeted news of Egyptian President Hosni Mubarak’s resignation with relief. The key benchmark indices in Hong Kong, Indonesia, Japan, Singapore, South Korea and Taiwan rose by between 0.88% to 1.89%.

China’s Shanghai Composite jumped 2.53% after China’s trade surplus fell to its lowest in nine months in January after imports surged, supporting the government’s case ahead of a G20 meeting that it is doing enough to spur domestic demand without speeding up currency appreciation. The trade surplus shrank to $6.5 billion from $13.1 billion in December, well short of forecasts for a $10.7 billion gap.

Japan’s economy shrank slightly in the final quarter of 2010 but analysts expect a recovery this year as stronger exports to China and other parts of fast-growing Asia offset persistently weak domestic demand. Gross domestic product (GDP) shrank 0.3% in October-December from the previous quarter, slightly less than a 0.5% fall expected by markets but still the first contraction in five quarters.

Mubarak handed power over to the army, bowing to escalating pressure from the military and protesters demanding he goes. His departure was seen partially reviving investors’ appetite for risk. Two weeks of anti-government protests in Egypt sparked concerns the unrest could spread across the Middle East, contributing to volatility in markets and commodity prices worldwide.

US index futures reversed initial gains. Trading in US index futures indicated that the Dow could fall 3 points at the opening bell on Monday, 14 February 2011.

U.S. stocks closed out their second straight week of gains on Friday with a rally sparked after Egyptian President Hosni Mubarak resigned, easing tension around the region for now.

The BSE 30-share Sensex was up 473.59 points or 2.67% to 18,202.20. The index gained 499.01 points at the day’s high of 18227.62 in late trade. The Sensex rose 128.51 points at the day’s low of 17857.12 in early trade.

The S&P CNX Nifty gained 146 points or 2.75% to 5,456.

The BSE Mid-Cap index rose 3.52% and the BSE Small-Cap index rose 3.94%. Both these indices outperformed the Sensex.

The market breadth, indicating the health of the market, was strong. On BSE, 2449 shares advanced while 495 shares declined. A total of 61 shares remained unchanged.

All the 30 members from the Sensex pack 29 stocks logged gains and one fell.

BSE clocked turnover of Rs 3448 almost same as that of Rs 3445.18 crore on Friday, 11 February 2011.

Index heavyweight Reliance Industries (RIL) rose 0.51% to Rs 915.20 reversing initial losses. The stock had fallen to the day’s low of Rs 895 on reports stock exchange regulator Sebi could levy a record penalty on RIL if it is able to establish that the company was involved in insider trading. The penalty could be worth Rs 25 crore or three times the amount of profit the company made from insider trading – whichever is higher.

Reliance Communications rose 0.26%. The consolidated net profit fell 56.65% to Rs 480.27 crore on 5.75% decline in total income to Rs 5004.09 crore in Q3 December 2010 over Q3 December 2009. The company announced Q3 result after market hours today.

Tata Power Company jumped 3.74%. The consolidated net profit jumped 377.87% to Rs 442.37 crore on 0.77% decline in total income to Rs 4519.18 crore in Q3 December 2010 over Q3 December 2009. The company announced Q3 result after market hours today.

Diversified Jaiprakash Associates surged 6.79%, extending Friday’s 7.35% gains. The stock had hit 52 week low of Rs 70.25 on 9 February 2011.

Reliance Infrastructure rose 1.85% to Rs 627.10 after company announced buyback of shares at a price of Rs 725, at a premium over the current ruling price. The consolidated net profit rose 10.16% to Rs 405.25 crore on 11.2% rise in total income to Rs 3871.64 crore in Q3 December 2010 over Q3 December 2009. The company announced Q3 result during market hours today.

India’s largest engineering and construction firm by sales Larsen & Toubro jumped 6.7% after company announced during market hours today that it bagged Rs 1100 crore EPC order from GSECL.

Among other capital goods stocks, Bhel, Usha Martin, ABB, BEML and Thermax rose by between 3.35% to 6.28%.

Inerest rate sensitive auto stocks rose across the board after data showed inflation moderated in the month of January. Car maker Maruti Suzuki India rose 3.06%. The stock had hit a 52-week low of Rs 1146 on Thursday, 10 February 2011. India’s second largest bike maker by sales Bajaj Auto gained 3.12%. India’s top bike maker by sales Hero Honda Motors rose 3.79%. The stock had hit a 52-week low of Rs 1412.20 on Wednesday, 9 February 2011.

Mahindra and Mahindra (M&M) gained 1.71%. The company recently unveiled plans to acquire a 38% stake in BSE-listed EPC Industrie. The acquisition would be through preferential allotment of shares by EPC, following which M&M will make the mandatory open offer to acquire a 20% stake in the Nashik-based micro-irrigation firm.

Tata Motors jumped 5.6% after consolidated net profit jumped 272.9% to Rs 2424 crore on 22% rise in consolidated revenue to Rs 31685 crore in Q3 December 2010 over Q3 December 2009. The company announced the Q3 result at the fag end of the trading session on Friday, 11 February 2011. The stock had jumped 3.79% on Friday.

Interest rate sensitive banking stocks rose after data showed inflation moderated in the month of January. India’s largest private sector bank by market capitalisation ICICI Bank was up 3.06%. India’s second largest private sector bank by market capitalisation HDFC Bank was up 2.28%. India’s largest commercial bank by branch network State Bank of India gained 4.12%. State Bank of India has raised term deposit rates on two maturity buckets — 555 days and 1,000 days — by 25 basis points. Simultaneously, to protect its margins, the bank has marked up its lending rate by 25 basis points. All rate hikes are effective from 14 February 2011.

Among other banks, Federal Bank Yes Bank, Bank of India, Canara Bank, IDBI Bank, Indian Overseas Bank, Axis Bank, Kotak Mahindra Bank, Bank of Baroda, Union Bank of India and Punjab National Bank rose by between 2.44% to 5.6%.

Metal stocks gained across the board after China’s trade data showed imports surged in the month of January. China is the World’s largest consumer of base metals. Hindalco Industries rose 3.88% after net profit rose 7.78% to Rs 460.34 crore on 12.53% rise in total income to Rs 6035.22 crore in Q3 December 2010 over Q3 December 2009. The company announced Q3 result on Saturday, 12 February 2011.

Steel giant Tata Steel rose 4.06% ahead of Q3 results on Tuesday, 15 February 2011.

Jindal Steel & Power, Hindustan Zinc, JSW Steel, Jindal Saw, Sterlite Industries Steel Authority of India, National Aluminum Company rose by between between 0.88% to 6.62%.

LMEX, a gauge of six metals traded on the London Metal Exchange rose 0.11% on Friday, 11 February 2011.

Consumer durables stocks gained on bargain hunting after recent losses. Rejesh Exports, Gitanjali Gems, Videocon Industries, Titan Industries and Blue Star rose by between 0.84% to 8.99%.

FMCG stocks too gained. United Spirits, ITC an Hindustan Unilever rose by between 1.58% to 14.76%.

Marico jumped 4.9% on reports the Emami group is close to sealing a deal for buying ‘Sweekar’, a refined sunflower oil brand of the company.

IT stocks rose on bargain hunting after last two days losses. India’s second largest IT exporter by sales Infosys gained 2.1%. India’s largest IT exporter by sales TCS rose 2.22%. India’s third largest IT exporter by sales Wipro rose 0.58%.

Mahindra Satyam spurted 11.66% after consolidated net profit surged 152.79% to Rs 58.90 crore on 2.97% increase in income from operations to Rs 1279.30 crore in Q3 December 2010 over Q2 September 2010.

Interest rate sensitive realty stocks rose on ease in inflation in the month of January 2011. Phoenix Mills, Sobha Developers DLF, HDIL and Indiabulls Real Estate rose by between 2.43% to 7.23%.

Unitech jumped 3.87% ahead of its Q3 result today.

Sanraa Media clocked highest volume of 1.54 crore shares on BSE. Unitech (94.99 lakh shares), Shree Ashtavinayak Cine Vision (94.86 lakh shares), Mahindra Satyam (78.21 lakh shares) and SpiceJet (70.61 lakh shares) were the other volume toppers in that order.

Gitanjali Gems clocked highest turnover of Rs 134.82 crore on BSE. ACC (Rs 125.32 crore), State Bank of India (Rs 120.59 crore), Reliance Industries (Rs 116.49 crore) and Tata Motors (Rs 95.36 crore) were the other turnover toppers in that order.

In macro news, the latest economic data showed industrial output in December 2010 rose a slower-than-expected 1.6% from a year earlier. Manufacturing output, which constitutes about 80% of the industrial production, rose an annual 1%, the statistics office said in a statement. Growth in industrial output in November 2010 was revised upwards to 3.62% from earlier 2.7%

The food price index rose 13.07% and the fuel price index climbed 11.61% in the year to 29 January 2011, government data on Thursday 10 February 2011 showed. In the prior week, annual food and fuel inflation stood at 17.05% and 11.61%. The primary articles price index was up 16.24% in the latest week, compared with an annual rise of 18.44% a week earlier.

The next major trigger for the stock market is Union Budget 2011-2012 to be unveiled by the finance minister Pranab Mukherjee on 28 February 2011. Investors will watch if the Finance Minister announces measures to rein in inflation and inflationary expectations. The Finance Minister may announce a new road map for the Goods & Services Tax (GST). The original deadline of 1 April 2010 for roll-out of GST has already been missed due to the lack of consensus between the Centre and states on the issue. GST is India’s most ambitious indirect tax reform plan, which aims to stitch together a common market by dismantling fiscal barriers between states.

The Centre has reportedly sent the empowered committee of state finance ministers yet another draft constitutional amendment on the proposed goods & services tax (GST) in a last-ditch attempt to reach a consensus before the Budget session of Parliament. The third draft reportedly proposes the creation of a GST Council through an Act of Parliament, instead of presidential order, as proposed in the previous draft.

The government may also announce some populist measures in the Budget given that assembly elections are due in Kerala, Tamil Nadu, West Bengal and Assam. In all these states, the Congress is potentially looking to regain power or to retain it.

Intraday volatility was immense. The market edged lower in choppy early trade on weak Asian stocks. The Sensex declined once a gain to hit fresh intraday low in morning trade after trimming initial losses. The market once again trimmed losses after hitting fresh seven-month lows in mid-morning trade. The market weakened once again after recovering sharply from near eight-month low in early afternoon trade. Volatility continued as market came off lows in afternoon trade. Auto and banking stocks led a sharp recovery as the key benchmark indices erased all the intraday losses to turn positive for a brief period in mid-afternoon trade.

The food price index rose 13.07% and the fuel price index climbed 11.61% in the year to 29 January 2011, government data on Thursday showed. In the prior week, annual food and fuel inflation stood at 17.05% and 11.61%. The primary articles price index was up 16.24% in the latest week, compared with an annual rise of 18.44% a week earlier.

Foreign institutional investors (FIIs) sold shares worth a net Rs 284.60 crore on Wednesday, 9 February 2011, lower than an outflow of Rs 531.60 crore on Tuesday, 8 February 2011. FII outflow in February 2011 totaled Rs 1301.60 crore (till 9 February 2011). FIIs had sold equities worth Rs 4813.20 crore in January 2011. FII outflow in the calendar year 2011 totaled Rs 6114.70 crore (till 9 February 2011).

The Central Bureau of Investigation (CBI) widened its probe in 2G scam with the arrest of Shahid Balwa, managing director of DB Realty and vice chairman of Etisalat DB, the venture between DB Group and Abu Dhabi’s Etisalat on Tuesday, 8 February 2011. Balwa’s counsel on Wednesday contended that the company of his client was being singled out and he was being made “scapegoat” despite the involvement of more firms in the case.

Swan Telecom and Unitech Telecom had together caused a loss of over Rs 7000 crore to government exchequer as both had offloaded their shares for hefty sums after getting the 2G spectrum, according to CBI. In a five-page FIR, CBI said the officials of the Department of Telecom and some private companies entered into a criminal conspiracy and caused wrongful gains to themselves. DB Group sold a 45% stake in Swan Telecom to Etisalat after the operator was granted a licence. Swan Telecom has since been renamed Etisalat DB.

The Comptroller and Auditor General of India’s (CAG) report in November 2010 said rules were flouted when telecom licences were awarded, which led to many ineligible firms winning licences. Telecoms minister A Raja was sacked soon after the report was released. He was arrested this month on charges of misuse of ministerial office and criminal misconduct.

The Q3 December 2010 results season is drawing towards a close. The results announced so far showed that the combined net profit of a total of 2,370 companies rose 22% to Rs 83211 crore on 19.5% rise in sales to Rs 819849 crore in Q3 December 2010 over Q3 December 2009.

There are concerns of slowdown in corporate profit growth going ahead. With the rise in key policy rates by the Reserve Bank of India (RBI) recently, interest cost will only rise in the coming quarters that could hurt earnings going forward. If raw material costs keep rising at a fast clip, companies will feel the heat of slowing sales growth and rising cost of operations that could start eating into profit growth.

European shares edged lower on Thursday, with Air France falling after a profit warning. The key benchmark indices in France, Germany and UK declined by between 0.32% to 0.9%.

Asian markets succumbed to a bit of profit taking on Thursday, after the head of the Federal Reserve signaled the US economic recovery was still fragile and warned against sharp spending cuts. Fed Chairman Ben Bernanke suggested US economic conditions were still too weak for the central bank to pull back on its vast monetary stimulus. The key benchmark indices in Hong Kong, Japan, Indonesia, South Korea, Singapore and Taiwan fell by between 0.11% to 1.89%. But, China’s Shanghai Composite rose 1.62%.

US index futures reversed initial gains. Trading in US index futures indicated that the Dow could fall 50 points at the opening bell on Thursday, 10 February 2011.

In US market action on Wednesday, investors took profits after a recent rise in stocks but a late-hour rally in Bank of America shares helped the Dow squeeze out its eighth straight day of gains. Bernanke told a congressional committee that the labor market remains sluggish and he continues to believe that inflation will remain subdued.

The BSE 30-share Sensex was down 129.73 points or 0.74% to 17,463.04, its lowest closing level since 5 July 2010. The Sensex lost 230.18 points at the day’s low of 17,362.59 in mid-morning trade. The index rose 44.11 points at the day’s high of 17,636.88 in early trade.

The S&P CNX Nifty was down 27.75 points or 0.53% to 5,225.80, its lowest level since 15 June 2010. The Nifty hit low of 5,196.80 in mid-morning trade.

The BSE Mid-Cap index was up 0.11% and outperformed the Sensex. The BSE Small-Cap index was down 0.86% and underperformed the Sensex.

Sectoral indices on BSE were mixed. The BSE Auto index (up 0.83%), Power index (Up 0.82%), Healthcare index (up 0.58%), Capital Goods index (up 0.03%), FMCG index (down 0.04%), Metal index (down 0.17%), Consumer Durables index (down 0.24%), and banking sector index Bankex (down 0.31%), outperformed the Sensex. The BSE PSU index (down 0.76%), Oil & Gas index (down 0.81%), Realty index (down 1.03%), and IT index (down 1.53%), underperformed the Sensex.

The market breadth, indicating the health of the market, was weak. On BSE, 1,848 shares declined while 1,035 shares advanced. A total of 85 shares remained unchanged.

Among the 30-member Sensex pack, 16 declined while the rest rose.

BSE clocked turnover of Rs 3558 crore, lower than Rs 3942.21 crore on Wednesday, 9 February 2011.

Index heavyweight Reliance Industries (RIL) was down 1.33% to Rs 899.75. The stock hit a 52-week low of Rs 885.10 on NSE today, 10 February 2011. As per reports, RIL’s ambitions to become a key shale gas player will push it to accept the $3.2 billion deal between Chevron Corp and Atlas Energy despite concerns but RIL would finalise the strategy later this week. RIL had acquired shale acreages from Atlas Energy last April, outbidding Chevron. Later US oil major announced acquisition of Atlas.

Cairn India rose 0.43%. The company’s consolidated net profit jumped 590.85% to Rs 2010.12 crore on 425.87% rise in total income to Rs 3130.60 crore in Q3 December 2010 over Q3 December 2009. The company announced Q3 results after market hours today.

Some healthcare stocks edged higher. Matrix Laboratories, Lupin, Ranbay Laboratories and Sun Pharmaceutical Industries rose by between 0.19% to 3.6%.

Most auto shares rose on bargain hunting after recent sharp losses. India’s top truck maker by sales Tata Motors rose 2.37% ahead of its Q3 results tomorrow, 11 February 2011. India’s top bike maker by sales Hero Honda Motors rose 0.87%. The stock had hit a 52-week low of Rs 1412.20 on Wednesday.

Car maker Maruti Suzuki India rose 0.15%, in volatile trade. The stock hit a 52-week low of Rs 1146 today. India’s second largest bike maker by sales Bajaj Auto gained 0.53%.

Mahindra and Mahindra (M&M) was flat in volatile trade after company unveiled plans to acquire a 38% stake in BSE-listed EPC Industrie. The acquisition would be through preferential allotment of shares by EPC, following which M&M will make the mandatory open offer to acquire a 20% stake in the Nashik-based micro-irrigation firm.

Banking stocks were mixed. India’s largest private sector bank by net profit ICICI Bank rose 0.4% to Rs 961.50, off the day’s high of Rs 974. India’s second largest private sector bank by net profit HDFC Bank fell 0.13% to Rs 2019.30, off the day’s high of Rs 2046.70.

India’s largest bank by net profit and branch network State Bank of India fell 3.64%. State Bank Of India has announced that the bank has concluded an issue of Senior debt, fixed rate bonds, Under the medium term note (MTN) Programme, having a maturity of 5 years at a coupon rate of 3.375% p.a. payable annually in the form of Regulation-S Global Notes. The bonds will be issued through bank’s London branch as of 22 February 2011 and shall be listed on six Swiss exchanges.

Power Finance Corporation fell 1.56% after the government on Thursday approved a follow-on share sale by the state-run power sector finance firm. The company will issue fresh shares for 15% of the pre-issue capital and the government will sell 5%, the government said in a statement.

IT stocks fell after Federal Reserve chairman Ben Bernanke signaled the US economic recovery was still fragile. US is the biggest market for Indian IT firms. India’s second largest IT exporter by sales Infosys declined 2.27% and India’s third largest IT exporter by sales Wipro shed 1.25%. India’s largest IT exporter by sales TCS fell 0.67%.

Reliance Infrastructure (R-Infra), part of the Anil Ambani group (ADAG) jumped 9.45% after company said its board will meet on 14 February 2011 to consider a share buyback. The stock was the top gainer from the Sensex pack. The company announced the board meeting for buy back after market hours on Wednesday after the stock slumped 18.79% on that day.

Shares of other Anil Dhirubhai Ambani group (ADAG) stocks also rebounded after plunging on Wednesday. Reliance Capital, Reliance Communications and Reliance MediaWorks jumped by between 1.53% to 4.97%. Reliance Power fell 0.44%, reversing initial gains. On Wednesday, Reliance Capital had tumbled 14.05% and Reliance MediaWorks had tanked 16.11%. Reliance Communications had plunged 14.32%.

ADAG said after trading hours on Wednesday that a series of baseless and motivated rumors were spread by rivals, which was accompanied by vicious and illegal bear hammering of the group shares. It said it had asked the Securities and Exchange Board of India and the stock exchanges to investigate.

Most of the interest rate sensitive realty stocks extended recent steep losses on concerns higher interest costs and higher property prices may dent demand for residential units. Ackruti City, Sobha Developers, Sunteck Realty and Peninsula Land fell by between 0.52% to 8.86%.

Unitech tumbled 5.03% extending recent losses, with the firm named by the Central Bureau of Investigation as one the beneficiaries of cheap spectrum allocation in 2008. The stock hit 52 week low of Rs 32.35 today. The CBI said Unitech was allotted licences for 22 cricles for Rs 1658 crore. It later offloaded its 60% of shares in the licenses to Telenor of Norway for Rs 6100 crores even before the roll-out, CBI said.

Some cement stocks recovered after recent steep losses. ACC, Jaiprakash Associates and Ambuja Cements rose by between 0.91% to 5.25%.

Some telecom stocks fell after the telecom regulator proposed steep increases in the price of second-generation (2G) mobile radio waves. Idea Cellular (down 2.19%) and Bharti Airtel (down 2.8%) dropped.

The Telecom Regulatory Authority of India (TRAI) has recommended a six-fold hike in the price of start-up 2G spectrum and has said that every Mhz of additional spectrum (on an all-India basis) beyond the contracted limit of 6.2 megahertz (Mhz) will cost a massive Rs 4,571.87 crore. All spectrum with existing telecom companies, which is more than the 6.2 megahertz (Mhz) that is being provided under the license be repriced. As a result, Bharti Airtel is now facing a liability of Rs 4,000 crore, Idea Cellular Rs 1,316 crore, MTNL Rs 883 crore and Reliance Communications Rs 70 crore.

TRAI’s proposals to the government come in the wake of a telecoms scandal that has shaken the political system, involving the allocation below market prices of 2G licences and spectrum in 2008.

Hotel shares dropped. Hotel Leela Venture, EIH and Indian Hotels shed by between 2.88% to 8.22%.

Metal stocks were mixed. Sterlite Industries, Hindalco Industries and Jindal Steel & Power fell by between 0.27% to 2.53%. JSW Steel, Tata Steel, Bhushan Steel, National Aluminum Company rose by between 0.21% to 6.42%.

Consumer durables stocks extended recent losses. Gitanjali Gems, Blue Star and Videocon Industries shed by between 0.58% to 0.77%.

Omkar Speciality Chemicals clocked highest volume of 2.24 crore shares on BSE. Cals Refineries (1.75 crore shares), Unitech (1.51 crore shares), Alok Industries (79.26 lakh shares) and Reliance Communications (77.85 lakh shares) were the other volume toppers in that order.

State Bank of India clocked highest turnover of Rs 193.50 crore on BSE. Reliance Infrastructure (Rs 180.40 crore), Jain Irrigation (Rs 120.90 crore), Reliance Capital (Rs 120.56 crore) and Reliance Industries (Rs 115.59 crore) were the other turnover toppers in that order.

The Reserve Bank of India faces a challenge in easing liquidity without signalling that it is loosening its anti-inflationary monetary policy stance, its governor, Duvvuri Subbarao, said on Wednesday. Subbarao also said that a cut in the cash reserve ratio may send a mixed signal to the markets.

The Reserve Bank of India is taking steps to bring liquidity in the financial system, which has been in deficit for several months, into the “comfort zone”, Subir Gokarn, deputy governor of the Reserve Bank of India said on Wednesday.

The government will announce industrial output data for the month of December 2010 tomorrow, 11 February 2011. Industrial production growth slumped to 2.7% in November 2010 as against a revised 11.30% growth in October 2010, as growth in the manufacturing output slowed sharply.

The next major trigger for the stock market is Union Budget 2011-2012 to be unveiled by the finance minister Pranab Mukherjee on 28 February 2011. Investors will watch if the Finance Minister announces measures to rein in inflation and inflationary expectations. The Finance Minister may announce a new road map for the Goods & Services Tax (GST). The original deadline of 1 April 2010 for roll-out of GST has already been missed due to the lack of consensus between the Centre and states on the issue. GST is India’s most ambitious indirect tax reform plan, which aims to stitch together a common market by dismantling fiscal barriers between states.

The Centre has reportedly sent the empowered committee of state finance ministers yet another draft constitutional amendment on the proposed goods & services tax (GST) in a last-ditch attempt to reach a consensus before the Budget session of Parliament. The third draft reportedly proposes the creation of a GST Council through an Act of Parliament, instead of presidential order, as proposed in the previous draft. The empowered committee will convene in New Delhi on 11 February 2011 to discuss the revised draft.

The government may also announce some populist measures in the Budget given that assembly elections are due in Kerala, Tamil Nadu, West Bengal and Assam. In all these states, the Congress is potentially looking to regain power or to retain it.

Index heavyweight Reliance Industries (RIL) gained over 1% while another heavyweight Infosys advanced 1.5%. But, ICICI Bank shed over 1.5%. Cipla slumped close to 3% after poor Q3 earnings. Auto , IT and banking stocks were mixed.

Intraday volatility was high. The key benchmark indices slipped into the red after a firm start. The market bounced back into the green instantly, with the Sensex hitting a fresh intraday high. The market pared gains in morning trade. The Sensex regained strength amid volatility in mid-morning trade. The market held positive in early afternoon trade. The market pared gains in afternoon trade. The market retreated to the day’s low after striking day’s high in late trade.

The GDP growth in the first half of the current fiscal year to end-March is expected to be revised downwards from 8.9% provisional estimate, Chief Statistician of India T.C.A. Anant said on Monday. Anant also said the government will release a new monthly CPI data series from 18 February 2011.

The government today, 7 February 2011, estimated GDP growth for the fiscal year ending March 2011 at 8.6%. Farm output is expected to grow 5.4%, while industry growth this fiscal is expected at 6.2%. The service sector growth is projected to grow 11%.

Finance Minister Pranab Mukherjee on Sunday, 6 February 2011, said inflation and the current account deficit might become causes of concern if crude oil prices keep rising.

Oil traded near the lowest in a week as receding violence in Egypt eased concern that supplies of crude from the Middle East will be disrupted. New York March 2011 crude futures were up 21 cents at $89.24 a barrel. US President Barack Obama said Sunday he is confident the US can work with Egypt’s next government, though he stopped short of calling for President Hosni Mubarak’s immediate departure, which protesters in Egypt are demanding.

Investors pulled $7 billion out of emerging market equity funds in the week ended 2 February 2011, the biggest outflow in three years, data from fund tracker EPFR Global showed, putting a sizeable dent in the record inflows seen in this category in 2010. The large outflow included an outflow of $4.6 billion from exchange-traded funds (ETFs) focused on emerging markets, the largest such outflow these ETFs have ever seen. Among some of the major emerging market countries, Indian equity funds had their biggest outflow since early June 2010 as commercial lenders started passing on the central bank’s latest rake hike, EPFR said. India equity funds had net outflows of $207 million in the week ended 2 February 2011.

On the corporate front, the results announced so far showed that the combined net profit of a total of 1,920 companies rose 22.30% to Rs 76052 crore on 20.50% rise in sales to Rs 634831 crore in Q3 December 2010 over Q3 December 2009.

There are concerns of slowdown in corporate profit growth going ahead. With the rise in key policy rates by the Reserve Bank of India (RBI) recently, interest cost will only rise in the coming quarters that could hurt earnings going forward. If raw material costs keep rising at a fast clip, companies will feel the heat of slowing sales growth and rising cost of operations that could start eating into profit growth.

The next major trigger for the stock market is Union Budget 2011-2012 to be unveiled by the finance minister Pranab Mukherjee on 28 February 2011. Investors will watch if the Finance Minister announces measures to rein in inflation and inflationary expectations. The Finance Minister may announce a new road map for the Goods & Services Tax (GST). The original deadline of 1 April 2010 for roll-out of GST has already been missed due to the lack of consensus between the Centre and states on the issue. GST is India’s most ambitious indirect tax reform plan, which aims to stitch together a common market by dismantling fiscal barriers between states.

The Centre has reportedly sent the empowered committee of state finance ministers yet another draft constitutional amendment on the proposed goods & services tax (GST) in a last-ditch attempt to reach a consensus before the Budget session of Parliament. The third draft reportedly proposes the creation of a GST Council through an Act of Parliament, instead of presidential order, as proposed in the previous draft. The empowered committee will convene in New Delhi on 11 February 2011 to discuss the revised draft.

The government may also announce some populist measures in the Budget given that assembly elections are due in Kerala, Tamil Nadu, West Bengal and Assam. In all these states, the Congress is potentially looking to regain power or to retain it.

Meanwhile, Finance Minister Mukherjee has reportedly convened a meeting of leaders of political parties on 8 February 2011 to resolve the deadlock in Parliament on the issue of Joint Parliamentary Committee (JPC) probe into the 2G spectrum scam. Lok Sabha Speaker Meira Kumar has convened a meeting of leaders of some of the political parties on Monday, 7 February 2011, to ensure smooth functioning of the budget session after the longest shutdown of Parliament in the winter session on the JPC issue.

European shares neared a two-and-a-half year high on Monday, extending Friday’s rise on the back of Asian and US gains, with surging mining stocks led higher by a dividend-raising Randgold Resources . They key benchmark indices in UK, Germany and France were up by between 0.8% to 0.99%.

Asian stocks were mixed on Monday, 7 February 2011. The key benchmark indices in South Korea and Japan rose 0.47% and 0.46% respectively. The key benchmark indices in Indonesia, Hong Kong and Singapore fell by between 0.24% to 1.49%. Markets in China, Taiwan and Vietnam remained shut on account of last week’s Lunar New Year.

US stocks rose on Friday, 4 February 2011, reversing losses and sending the Standard and Poor’s 500 Index to the highest level since June 2008, after unemployment rate unexpectedly dropped and more companies beat earnings estimates. The Dow Jones industrial average rose 29.89 points, or 0.25%, at 12,092.15. The S&P 500 index added 3.77 points, or 0.29%, at 1,310.87 and the Nasdaq Composite index climbed 15.42 points, or 0.56%, at 2,769.30.

The Labor Department said on Friday, 4 February 2011, the US unemployment rate fell to 9% in January 2011 from 9.4% in December 2010.

US index futures reversed early losses. Trading in US index futures indicated that the Dow could rise 35 points at the opening bell on Monday, 7 February 2011.

Back home, on the macro front, there are concerns that high inflation will trigger more monetary tightening from the Reserve Bank of India this year. Prime Minister Manmohan Singh on Friday, 4 February 2011, said the country’s high inflation posed a “serious threat” to the growth momentum, and was driven by supply-side shortages.

Reserve Bank of India (RBI) deputy governor Subir Gokarn on Sunday, 6 February 2011, said events in Egypt will have an impact on monetary policy. “After making the policy announcement on 25th Jan, a whole set of events unfolded in the Middle East, which are starting to have an impact on oil prices, obviously, which we did not anticipate at the time we made the announcement,” Gokarn said. “So, a completely new environment has emerged in a very short time after the announcement. It is going to have an impact on our thinking, our action going forward,” Gokarn added. The central bank holds a mid-quarter policy review on 17 March 2011.

The central bank last month raised interest rates by 25 basis points to clamp down on resurgent inflation, which stood at 8.43 percent in December 2010, and warned of persistently high food prices unless steps are taken to boost supplies.

The BSE 30-share Sensex was up 29.04 points or 0.16% to 18,037.19. The index gained 172.79 points at the day’s high of 18,180.94 in late trade. The index fell 31.14 points at the day’s low of 17,977.01 in late trade.

The S&P CNX Nifty was almost unchanged at 5396. The Nifty hit a high of 5,440.35 and low of 5,376.95 in intra-day trade.

The BSE Mid-Cap index fell 0.52% and the BSE Small-Cap index declined 0.83%. Both these indices underperformed the Sensex.

The sectoral indices on BSE were mixed. The BSE Realty (up 1.67%), FMCG (up 1.42%), Power index (up 0.28%) and IT index (up 0.18%) outperformed the Sensex. The BSE Helathcare index (down 1.5%), Consumer Durables (down 1.32%), Capital Goods index (down 1.11%), Bankex (down 0.36%), Metal index (up 0.07%) and Auto index (up 0.12%) underperformed the Sensex.

The market breadth, indicating the health of the market, was weak. On BSE, 1720 shares declined while 1146 shares advanced. A total of 85 shares remained unchanged. The breadth was strong upto mid-morning trade.

Among the 30-member Sensex pack, 21 gained while the rest fell.

Index heavyweight Reliance Industries (RIL) rose 1.07% to Rs 929.30 after oscillating between Rs 914.40 and Rs 938.90 during the day. As per recent reports, RIL may challenge Chevron Corp’s bid for Atlas Energy Inc. RIL is said to have hired Perella Weinberg Partners and Kirkland & Ellis to evaluate its options. Last April, Reliance agreed to pay Atlas $1.7 billion to form a joint venture and own 40% of Atlas’s Marcellus Shale operations in the eastern United States. In November 2010, Chevron then announced plans to buy Atlas for $3.2 billion.

India’s largest dam builder by sales Jaiprakash Associates jumped 2.27%, reversing Friday’s 2.62% slide.

Auto stocks were mixed. India’s top bike maker by sales Hero Honda Motors gained 2.75%. India’s largest small care maker by sales Maruti Suzuki India advanced 0.87%. India’s top truck maker by sales Tata Motors shed 0.32% reversing initial gains. India’s second largest bike maker by sales Bajaj Auto fell 0.74%.

India’s top tractor maker by sales Mahindra & Mahindra was flat, paring initial gains. The company unveils its Q3 December 2010 earnings on 9 February 2011.

Some metal stocks rose as LMEX, a gauge of six metals traded on the London Metal Exchange, rose 1.16% on Friday, 4 February 2011. Jindal Steel & Power, JSW Steel and Tata Steel gained by between 0.07% to 0.94%.

India’s largest non-ferrous metal firm by sales Sterlite Industries (India) rose 0.36% after the company completed acquisition of a 74% interest in Black Mountain Mining in South Africa from Anglo Operations, a member of the Anglo American plc Group, for a total consideration of $348mn. The acquisition includes the Black Mountain zinc mine and the Gamsberg zinc project.

India’s largest private sector bank by net profit ICICI Bank lost 1.63% after its ADR declined 3.47% on the NYSE on Friday, 4 February 2011.

India’s largest bank by net profit and branch network State Bank of India rose 0.6% and India’s second largest private sector bank by net profit HDFC Bank rose 0.98%.

Software pivotals were mixed. India’s largest software firm by sales TCS shed 1.4%. India’s second largest software firm by sales Infosys rose 1.48% and India’s third largest software firm by sales Wipro lost 2.05%.

India’s largest FMCG company by sales Hindustan Unilever rose 0.46% on reports the company will soon launch its first fruit-based drink under the Kissan brand to cash in on the increasingly health-conscious mindset of the Indian consumer.

Among other FMCG stocks, Dabur India, ITC and Nestle India rose by between 0.6% to 3.07%.

Cipla lost 2.95% to Rs 314.65 after net profit fell 19.49% to Rs 232.69 crore on 11.70% rise in net sales to Rs 1501.36 crore in Q3 December 2010 over Q3 December 2009. Nevertheless, the stocks came off day’s low of Rs 308.50. It was the top loser from the Sensex pack.

Among other healthcare stocks, Lupin, Ranbaxy Laboratories, Sun Pharmaceutical Industries and Pfizer declined by between 0.04% to 2.63%.

Select interest rate sensitive realty stocks advanced on bargain hunting after recent steep losses. Indiabulls Real Estate, Unitech, DLF and HDIL rose by between 1.72% to 3.9%.

Telecom pivotals advanced. India’s largest listed cellular services by sales Bharti Airtel gained 0.66% and India’s second largest listed cellular services by sales Reliance Communications rose 0.7%.

Capital goods stocks edged lower. BEML, Thermax, ABB, Larsen & Toubro and Siemens shed by between 0.14% to 4.38%.

Shree Ashtavinayak Cine Vision clocked highest volume of 3.53 crore shares on BSE. SpiceJet (1.63 crore shares), Cals Refineries (1.11 crore shares), Suzlon Energy (1.02 crore shares) and Unitech (47.07 lakh shares) were the other volume toppers in that order.

Sun TV Network clocked highest turnover of Rs 123.07 crore on BSE. State Bank of India (Rs 110.31 crore), BF Utilities (Rs 98.46 crore), Tata Motors (Rs 93.14 crore) and Tata Steel (Rs 78.92 crore) were the other turnover toppers in that order.