FOREX REPORT

FOREX REPORT FOR THE DAY:

Dollar is pressured throughout the data as investors' risk appetite got a boost as the new year starts, on solid manufacturing data. Commodity currencies are the biggest winners as China PMI manufacturing rose to 56.1, highest level since April 2004. Strong growth in the manufacturing sector in China will boost demand for commodities. Crude oil rides on the optimism and breaches 80 level today while gold also rises to as high as 1124.6 so far. Data released from US saw ISM manufacturing index rose more than expected to 55.9 in December.

Sterling was lifted against dollar as PMI manufacturing in UK rose to 54.1, highest level in 25 months. Mortgage approvals also beat expectation by climbing to 60.5k. However, markets remain cautious on UK's debt outlook and ahead of BoE rate decisions later this week. Sterling somewhat lags behind other majors currencies and has indeed weakened against commodity currencies and Euro.

Data from Eurozone saw PMI manufacturing revised up to 51.6. Sentix investor confidence, though, missed expectations by rising to -3.7 only. Euro continues to underperform Aussie and Loonie. For example, EUR/AUD dropped sharply to as low as 1.5747 so far today. The crosses still still trading well inside medium term falling channel and is set to continue to 2007 low of 1.5472.



EUR/GBP Mid-Day Outlookn :

Daily Pivots: (S1) 0.8823; (P) 0.8890; (R1) 0.8926; More.

EUR/GBP's strong rebound from 0.8855 and break of 0.8975 minor resistance indicates that recent decline is not ready to resume yet and consolidations from 0.8833 is still in progress. Intraday bias is turned neutral for the moment. While some more rise could be seen, break of 0.9053 resistance is needed to indicate that EUR/GBP has bottomed out. Otherwise another fall is still in favor and break of 0.8855 will target 61.8% projection of 0.9410 to 0.8833 from 0.9153 at 0.8786 next.

In the bigger picture, at this point, we're still favoring the case that medium term correction from 0.9799 has completed with three waves down to 0.8399 already. Rise from 0.8399 is possibly resuming the long term up trend. Hence, fall from 0.9410 is viewed as a correction only and should be contained by 0.8704 support. Break of 0.9053 will suggest that correction from 0.9410 has completed and rise from 0.8399 is resuming for a test on 0.9799 high first and then 61.8% projection of 0.6535 to 0.9799 from 0.8399 at 1.0416.

However, break of 0.8704 support will argue that firstly, rise from 0.8399 has completed at 0.9410 already. Secondly, this will argue that fall from 0.9410 is likely the third leg of the correction pattern that started at 0.9799 and could extend beyond 0.8399 support before the whole correction concludes.

EUR/GBP 4 Hours Chart

EUR/CHF Mid-Day Outlook :

Daily Pivots: (S1) 1.4811; (P) 1.4842; (R1) 1.4866; More

EUR/CHF's strong rebound and break of 1.4875 minor resistance indicates that an intraday low is in place at 1.4807 already and turn bias neutral. Some consolidations could now be seen but after all, break of 1.4988 resistance is needed to indicate that EUR/CHF has bottomed out. Otherwise, another fall is still in favor and break of 1.4807 will target 100% projection of 61.8% projection of 1.5138 to 1.4894 from 1.4988 at 1.4744 next. However, consolidating mild bullish convergence conditions in 4 hours MACD and RSI, break of 1.4988 resistance will indicate that recent decline in EUR/CHF might be completed and stronger rally should then be seen for a test on 1.5318 resistance.

In the bigger picture, with EUR/CHF still staying well below 55 weeks EMA, fall from 1.5880 is likely still in progress. Current decline should have a test on 1.4577 support first and break will target 2008 low of 1.4315. On the upside, break of 1.5138 resistance is needed to indicate that fall from 1.5446 has finished and revive the case that 1.4577 is still in progress. Otherwise, medium term outlook will remain bearish.

EUR/JPY Mid-Day Outlook :

Daily Pivots: (S1) 132.60; (P) 133.09; (R1) 133.73; More.

EUR/JPY rise resumes after brief consolidations and at this point, intraday bias remains on the upside as long as 132.34 minor support holds. CUrrent rise might still extend further towards 134.54 resistance. Also, note that break of 134.54 will indicate that whole fall from 138.47 has completed and the current rise from 127.50 could then extend further to upper end of medium term range near to 139.21 resistance. However, considering that upside momentum remains unconvincing, break of 132.34 minor support will indicate that rise from 127.50 has completed and will flip intraday bias back to the downside for 126.88/127.50 support zone. Also note that this will also suggest that price actions from 126.88 are merely consolidations to the fall from 138.47 and such decline would be in favor to continue after completing the consolidation.

In the bigger picture, at this point, EUR/JPY is still bounded in medium term range between 126.88 and 139.21 and outlook remains neutral for the moment. On the downside, a break of 126.88 support will revive that case that medium term rebound from 112.10 has completed at 139.21 already and down trend from 169.96 is resuming. In such case, we'd expect deeper fall to 112.10 and beyond to resume the long term down trend. On the upside, however, break of 134.54 resistance will revive that case that recent price actions are merely consolidations to medium term rise from 112.10 already and another high above 139.21 should be seen before EUR/JPY tops.

GBP/JPY Mid-Day Outlook :

Daily Pivots: (S1) 148.84; (P) 149.76; (R1) 151.27; More

With 148.20 minor support intact, intraday bias in GBP/JPY remains on the upside for the moment. A noted before, consolidations from 139.69 is possibly still in progress with rise from 139.26 as the third leg. Current rise might still extend further towards 100% projection of 139.26 to 149.15 from 141.99 at 151.88. On the downside, below 148.22 will turn intraday bias neutral first and bring retreat. But break of 146.03 support is needed to be the first signal that rise from 139.26 has finished. Otherwise, another rise is still in favor after consolidations.

In the bigger picture, there is no change in the bearish view. Medium term rebound from 118.18, which is a correction to the long term down trend from 07 high of 251.90, has completed at 163.05 already. Fall from 163.05 is expected to resume after sideway consolidation from 139.69 completes and should target a new low below 118.81. However, note that sustained break of 61.8% retracement of 163.05 to 139.26 at 153.96 will argue that fall from 163.05 has finished already and will in turn indicate that rise from 118.81 is still in progress to another high above 163.05 before conclusion.

AUD/USD Mid-Day Outlook :

Daily Pivots: (S1) 0.8931; (P) 0.8971; (R1) 0.9012; More

AUD/USD's strong rebound from 0.8734 extends further today and reaches as high as 0.9126 so far in early US session. The strong break of 0.9013 resistance indicates that fall from 0.9321 has completed. It also argues that whole decline from 0.9404 has finished too. Intraday bias remains on the upside for 0.9193 resistance first and break will target 0.9321 support next. On the downside, below 0.9075 minor support will turn intraday bias neutral and bring retreat. But short term outlook will remain bullish as long as 0.8899 support holds.

In the bigger picture, strong rebound from 0.8734 dampens the bearish view that AUD/USD has topped out at 0.9404. Instead, it leaves the fall from 0.9404 to 0.8734 in three wave corrective structure, which in turn indicates that whole medium term rise from 0.6008 is still in progress. Break of 0.9321 resistance will confirm this case and target a test of 0.9404 first. Break will then target 08 high of 0.9849. On the downside, though, break of 0.8734 support will revive the case that whole medium term rise from 0.6008 has completed and will turn outlook bearish for deeper correction towards 0.7702/0.8626 support zone.

USD/CAD Mid-Day Outlook :

Daily Pivots: (S1) 1.0469; (P) 1.0514; (R1) 1.0574; More.

USD/CAD's sharp fall today suggests that decline from 1.0744 is possibly resuming. Intraday bias is cautiously on the downside for the moment. Break of 1.0364 support will also confirm that whole correction from 1.0851 has resumed and should target 1.0205 next. Nevertheless, we'd still expect downside to be contained above 1.0205 to conclude the consolidations and bring rise resumption. On the upside, above 1.0487 minor resistance will turn intraday bias neutral again. Break of 1.0576 will flip intraday bias back to the upside for 1.0774 resistance and break there will suggest that whole rise from 1.0205 has resumed for another high above 1.0851.

In the bigger picture, a medium term bottom might be in place at 1.0205 with bullish convergence conditions in daily MACD. As noted before, fall from 1.3063 is viewed as a correction to long term rise from 0.9056. Such correction might have already completed with three waves down to 1.0205 already (1.0784, 1.1732, 1.0205). Break of 1.1123 resistance will confirm this case and target 61.8% retracement of 1.3063 to 1.0205 at 1.1971 at least. On the downside, break of 1.0205 will invalidate this view and bring down trend resumption to parity instead.



EUR/USD Mid-Day Outlook :

Daily Pivots: (S1) 1.4273; (P) 1.4356; (R1) 1.4406; More

EUR/USD's consolidation from 1.4217 is still in progress and another rise could still be seen as long as 1.4256 minor support holds. Nevertheless, such consolidation is still expected to be limited by 38.2% retracement of 1.5143 to 1.4217 at 1.4571 and bring resumption of fall from 1.5143. Below 1.4256 will flip intraday bias back to the downside and further break of 1.4217 low will target 38.2% retracement of 1.2329 to 1.5143 at 1.4068 next.

In the bigger picture, medium term rise from 1.2456 has completed at 1.5143 on bearish divergence conditions in daily MACD. Focus now turns to 1.3737 cluster support (50% retracement of 1.2329 to 1.5143 at 1.3736). Decisive break there will also confirm the case that three wave consolidation from 1.2329 has finished at 1.5134 too. In other words, whole medium term term fall from 1.6039 should be resuming for a new low below 1.2329. On the upside, above 1.5143 resistance is needed to invalidate this view. Otherwise, outlook will now remain bearish.



USD/CHF Mid-Day Outlook:

Daily Pivots: (S1) 1.0298; (P) 1.0342; (R1) 1.0399; More

USD/CHF's consolidation from 1.0506 is still in progress and with 1.0420 minor resistance intact, risk of another fall remains. Nevertheless, we'd continue to expect downside of the consolidation to be contained by 1.0175 resistance turned support and bring resumption of whole rise from 0.9916. Above 1.0420 minor resistance will flipped intraday bias back to the upside for 1.0506 first. Break will confirm rally resumption to 1.0590 medium term support turned resistance next.

In the bigger picture, medium term fall from 1.1963 has completed with five waves down to 0.9916 already, on bullish convergence condition in daily MACD. Also, the three wave consolidation from 1.2296 should also be finished too. Current rise from 0.9916 is expected to extend further to medium term trend line resistance first (now at 1.1032). Sustained trading above the trend line will affirm the case that long term rise from 2008 low of 0.9634 is resuming for another high above 1.2296. On the downside however, a break of 0.9959 support will invalidate this bullish view and argue that medium term down trend in USD/CHF is still in progress for 0.9634 low.

USD/JPY Mid-Day Outlook:


Daily Pivots: (S1) 92.23; (P) 92.68; (R1) 93.47; More.

With 4 hours MACD crossed below signal line, an intraday top is in place at 93.20 and bias is turned neutral for the moment. Nevertheless, there is no indication that rise from 87.36 has completed yet. Break of 100% projection of 84.81 to 90.75 from 87.36 at 93.30 will target resistance zone of medium term trend line resistance at 95.21 and 55 weeks EMA at 94.26 next. On the downside, though,considering mild bearish divergence condition in 4 hours MACD, break of 91.90 minor support will argue that rise form 84.81 has finished and will flip intraday bias back to the downside for 87.36 support first.

In the bigger picture, at this point, USD/JPY is still trading well below medium term trend line resistance at 95.21 and 55 weeks EMA at 94.26. Hence, there is no clear indication of reversal yet. A break of 87.36 support will indicate that rebound form 84.81 has completed and the whole fall form 124.13 is possibly resuming for 1995 low of 79.75.

However, note bullish convergence condition is seen in weekly MACD. Sustained trading above the medium trend line resistance will be the first signal of medium term reversal and in such case, focus will turn to 101.43 resistance for confirmation.

GBP/USD Mid-Day Outlook :

Daily Pivots: (S1) 1.6064; (P) 1.6149; (R1) 1.6250; More

GBP/USD continues to stay in range of 1.6046/6232 today. In spite of the strong rebound, GBP/USD is still struggling to take out 38.2% retracement of 1.6875 to 1.5829 at 1.6229 decisively. Intraday bias remains neutral for the moment. On the upside, break of 1.6232 will suggest that whole rise from 1.5829 has resumed and should target 61.8% retracement at 1.6475. On the downside, below 1.6046 minor support will flip intraday bias back to the downside. But after all, more consolidations should still be seen as long as 1.5892 support holds and risk of another rise remains.

In the bigger picture, we're still favoring the bearish case that medium term rebound from 1.3503, which is is treated as a correction to down trend from 2.1161, has completed at 1.7043. Firm break of 1.5706 cluster support (38.2% retracement of 1.3503 to 1.7043 at 1.5691) will confirm this case and indicate that whole down trend from 2.1161 is likely resuming for a new low below 1.3503.

However, note that sustain break of 61.8% retracement of 1.6875 to 1.5829 at 1.6475. will in turn indicate that whole fall from 1.6875 has completed and recent price actions from 1.7043 are merely consolidations to the larger rise from 1.3503 only. That is, whole medium term rise from 1.3503 might not be finished yet and another rise could still be seen to 1.7332/8236 (50% and 61.8% retracement of 2.1161 to 1.3503) before completion.

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INDIAN STOCK END-SESSION

Indian stocks kicked off 2010 on an upbeat note, with key benchmark indices hitting multi-months high as strong auto sales, a jump in manufacturing activity in December 2009, and the latest data showing a surge in exports in November 2009, underpinned sentiment. The BSE 30-share Sensex rose 93.92 points or 0.54%, up close 185 points from the day's low and off close to 25 points from the day's high.

The Sensex struck its highest closing level in 20 months. The 50-unit S&P CNX Nifty attained its highest closing level in 22 months. Global stocks were firm and US index futures surged.

Index heavyweight Reliance Industries (RIL) recovered from lower level on market talks the company has raised Rs 2600 crore by selling 2.5 crore shares at Rs 1,035 each to state-run Life Insurance Corporation of India. Auto stocks also surged after auto firms posted strong December 2009 sales growth. IT, cement, banking, metal and consumer durables stocks also rose. The market breadth was strong.

The market rebounded soon after an initial slide on firm Asian stocks. The market was range bound in early morning trade. The market trimmed gains after hitting fresh intraday highs in morning trade. The market surged to a fresh intraday high in mid-afternoon trade as European stocks surged in early trade. The market pared gains before bouncing back in late trade.

Trading began at 9:00 IST today, 4 January 2010 as the stock exchanges decided to extend trading hours by 55 minutes.

The economy is expected to grow at more than 7.5% in the fiscal year ending March 2010, boosted by better growth in the December 2009 quarter, the finance ministry's chief economic advisor Kaushik Basu said on Monday. The government is not expected to announce any monetary tightening measures for now, he added. "There is no expectation of monetary tightening, nor do I believe there is a reason for it," Basu said." It is a very sector-specific inflation which is taking place," he said, adding, inflation is expected to "peter out" in a few months he added.

Meanwhile, the latest data showed that the rate of growth in manufacturing rose for the first time in three months in December 2009, with activity reaching its highest since May 2009 on sharp rises in new work and output. The HSBC Markit Purchasing Managers' Index (PMI), based on a survey of 500 companies, rose to 55.6 in December from 53.0 in November. The reading was the strongest since May's 55.7, which was the strongest in 2009. A reading above 50 means activity expanded during the month.

The Reserve Bank of India (RBI) will review interest rates at its next policy review scheduled for 29 January 2010 and not before, K.C. Chakrabarty,a deputy RBI governor said on Thursday, 31 December 2009. He further said credit growth will rise to 17-18% when GDP growth reaches 8-9%.

Finance Minister Pranab Mukherjee said on 30 December 2009 that the government needs to strike a balance between economic growth and cutting fiscal deficit. India's fiscal deficit is estimated at 6.8% of gross domestic product for 2009/10 (April-March), higher than 6.2% in the previous year as the government cut tax rates and boosted spending.

Recently C. Rangarajan, Chairman of the Economic Advisory Council to the Prime Minister, raised concern over the rising food inflation, which is at an 11-month high now, stating that the task ahead was to check food inflation. He indicated that the Reserve Bank of India could look at raising the cash reserve ratio (CRR) to suck out excess liquidity from the system, even though the central bank may watch the price movements for some more time before taking any decision on rate hike.

The economy will expand 8% in 2010/11 after growing between 7 and 7.5% in the current fiscal year to end-March, Rangarajan said on Saturday, 2 January 2010. Rangarajan also said the economy would return to an annual growth rate of 9% in the fiscal year to end-March 2012 on the back of an improvement in the world economy and global trade.

Food price index rose 19.83% in the 12 months to 19 December 2009, data released by the government showed on 31 December 2009, showed. The primary article index jumped 15.49% and the fuel price index rose 4.45%. The worst monsoon in nearly four decades and flooding in some parts of the country have pushed up food prices.

Meanwhile, India's exports sector has bounced back with outward trade growing by 18% in November 2009, the commerce ministry said. The export figures turned positive after staying in the red for 13 months. The value of exports in November 2009 jumped to $13.19 billion compared to $11.16 billion.

Data earlier this month showed that corporate advance tax payments for the October-December 2009 quarter shot up sharply, suggesting a higher profit growth in corporate sector in the third quarter (October-December) of the current fiscal. Corporate advance tax payments for the quarter were up 44% to Rs 48,300 crore against a 3.7% decline in April-June quarter and a 14.7% increase in July-September quarter. The company-wise break-up of advance tax collection suggests a broad-based recovery with automobiles, cement, metals and consumer goods, doing well.

European shares rose on Monday on the first session of the year, extending last year's strong run, with banks, oil producers and drugmakers leading the gainers. The key benchmark indices in France, Germany and UK rose by between 0.62% to 1.03%.

The purchasing managers index for the euro-zone manufacturing sector rose to a 21-month high of 51.6 in December 2009 from a reading of 51.2 in November 2009.

Activity in Britain's factory sector showed a stronger-than-expected rise in December 2009, pushing the manufacturing purchasing managers index to its highest level in 25 months, according to data released Monday. The CIPS/Markit PMI jumped to 54.1 from a reading of 51.8 in November.

Most Asian stocks rose on Monday, 4 January 2010, after Chinese manufacturing expanded in December 2009 and a stronger dollar boosted the earnings outlook for Japanese car and electronics manufacturers. The key benchmark indices in Indonesia, Japan, Taiwan and South Korea rose by between 0.24% to 1.03%. But the key benchmark indices in Hong Kong and Singapore fell by between 0.11% to 0.23%.

Chinese stocks retreated on concerns about rising inflation on the mainland and as investors locked in gains after a four-session rally. The Shanghai Composite was down 1%, after tacking on more than 4% in the previous four sessions. Chinese manufacturing activity climbed for the ninth straight month in December 2009, according to the HSBC purchasing managers' index released Monday, with overall conditions during the December-ended quarter the most robust in the survey's six-year history. The index climbed to 56.1 for the month, compared to 55.7 in November. Measures for labor demand and new orders also suggested a broad-based revival of activity.

South Korean exports increased 33.7% in December from a year earlier, the fastest pace in 17 months, the Ministry of Knowledge Economy said on 1 January 2010.

Singapore's economy shrank for the first time in three quarters. Gross domestic product contracted an annualized 6.8% in the fourth quarter to December from the previous three months after climbing a revised 14.9 % from July to September, the trade ministry said in a statement today.

Trading in US index futures indicated Dow could gain 61 points at the opening bell on Monday, 4 January 2010.

US stocks edged lower on the last trading session of 2009 on Thursday, 31 December 2009. The Dow Jones industrial average fell 120.46 points, or 1.14 % to end at 10,428.05. The Standard & Poor's 500 Index declined 11.32 points, or 1%, to finish at 1,115.10. The Nasdaq Composite Index lost 22.13 points, or 0.97 %, to close at 2,269.15. US markets remained close on Friday, 1 January 2010 on New Year's holiday.

For 2009, US stocks registered their first annual advance in two years, underpinned by strength in technology and natural resource shares on bets that the recovery will brighten the profit outlook.

Top US Federal Reserve officials defended policies leading up to the recent financial crisis, arguing that exotic mortgages and overconfidence in home price gains, not low interest rates, fueled a catastrophic housing bubble. Addressing an economists' conference in Atlanta on Sunday, 3 January 2010, Fed Chairman Ben Bernanke said the US economy is only now recovering from recession, and Fed Vice Chairman Donald Kohn warned the pace of recovery will be slow. This means inflation will remain contained for some time, Kohn said

Bernanke repeated his expression of confidence the Fed is equipped to tap the brakes at the right time. "We have a very robust strategy," he said in response to questions after his speech. "It includes both raising the interest rate that we pay on reserves, plus a number of measures that we have been testing that will allow us to drain reserves from the system. So we're quite confident that we can constrain broader money growth and credit growth as needed to exit from these unusual policies when the time comes," he said.

Kohn said the Fed would have to begin pulling back, however, before things were completely back to normal. "We will need to begin withdrawing extraordinary monetary stimulus well before the economy returns to high levels of resource utilization," he said.

Closer home, the BSE 30-share Sensex rose 93.92 points or 0.54% to 17,558.73, its highest closing since 2 May 2008. The Sensex gained 118.03 points at the day's high of 17,582.84 in mid-afternoon trade. The Sensex fell 86.43 points at the day's low of 17378.38 in early trade.

The S&P CNX Nifty rose 31.15 points or 0.6% at 5232.20, its highest closing since 28 February 2008. It hit a high of 5238.45 in intraday trade. Nifty January 2010 futures were at 5,243, at a premium of 10.50 points as compared to the spot closing of 5,232.20. Turnover in NSE's futures & options (F&O) segment was Rs 42,559.47 crore, sharply lower than Rs 105421.96 crore on Thursday, 31 December 2009.

BSE clocked a turnover of Rs 6198 crore, much higher than Rs 4618 crore on Thursday 31 December 2009.

The market breadth, indicating the overall health of the market was strong. On BSE, 2126 shares advanced as compared with 752 that declined. A total of 71 shares remained unchanged.

Among the 30-member Sensex pack, 23 rose while rest declined.

The BSE Mid-Cap index rose 1.48% and the BSE Small-Cap index rose 1.6%. Both the indices outperformed the Sensex.

Among the sectoral indices on BSE, the BSE Auto index (up 1.88%), the BSE Metal index (up 1.82%), the BSE Consumer Durables index (up 1.81%), the BSE FMCG index (up 1.11%), BSE's banking sector index Bankex (up 0.77%), the BSE Capital Goods index (up 0.72%) and the BSE IT index (up 0.69%), outperformed the Sensex

BSE Power index (up 0.53%), BSE Realty index (up 0.39%), BSE Health Care index (up 0.09%) and BSE Oil & Gas index (down 0.21%), underperformed the Sensex.

A deluge of global liquidity boosted stocks across the globe last year. Governments and central banks around the world have injected trillions of dollars in the past one year to pull the world out of a most severe recession since the 1930s Great Depression. The Sensex rose 7817.50 points or 81.03% in calendar year 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex was up 9398.33 points or 115.16% as on 4 January 2010.

India's largest private sector firm by market capitalisation Reliance Industries (RIL) fell 1.29% to Rs 1075.35. Nevertheless, the stock came off the day's low of Rs 1022. Reliance Industries has reportedly raised $577 million through a share sale, the second big equity fund raising in under four months as it looks to buy bankrupt petrochemicals firm LyondellBasell. Reliance, controlled by India's richest man, Mukesh Ambani, sold 2.5 crore existing treasury shares at a 5% discount to Thursday's market close or at a weighted average price of Rs 1035.10 to state-run Life Insurance Corp of India, reports suggest. The deal follows a $660 million share sale by conglomerate Reliance in September 2009.

Oil exploration firms rose, as oil surged past $80 a barrel amid thin trading volumes on Monday, the first trading day of 2010, partly supported by news that Russia had halted oil supplies to Belarussian refineries. India's biggest state-run oil exploration firm by revenue Oil & Natural Gas Corporation (ONGC) rose 0.83%. Cairn India advanced 1.47%. India's second biggest oil and gas exploration firm by revenue, Oil India was flat.

Rise in crude oil prices would result in higher realizations from crude sales for oil exploration firms. US crude for February delivery rose 59 cents to $79.95 a barrel in electronic trading.

Cement shares gained on speculation cement prices will increase in the first quarter of calendar year 2010 on rise in infrastructure activity. Ambuja Cement, UltraTech Cement, Birla Corporation rose by between 2.31% to 5.4%.

India's largest cement maker by sales ACC rose 4.87% even as cement shipments fell 1.1% to 18.8 lakh tonnes in December 2009 over December 2008.

Banking stocks extended gains on reports credit offtake has picked up this month. According to the latest Reserve Bank of India (RBI) figures, total loans, including food credit loans to Food Corporation of India for foodgrain procurement and non-food credit (all other loans) amounted to Rs 29,41,293.07 crore as on 19 December 2009. This represents a sequential growth of Rs 34,028 crore since 27 November 2009 compared to a growth of Rs 7,698 crore in the whole of November 2009.

India's largest bank by net profit and branch network State Bank of India rose 0.98%. The state-run bank paid advance tax of Rs 1795 crore versus Rs 1700 crore. India's largest private sector bank by net profit ICICI Bank rose 0.37% even as its ADR fell 0.26% on Thursday. The bank is reportedly raising up to Rs 1200 crore by selling bonds.

India's second largest private sector bank by net profit HDFC Bank rose 0.29% as its ADR rose 0.42% on Thursday, 31 December 2009.

Consumer durables stocks gained on hopes of good earnings on the back of higher sales in Christmas. Videocon Industries, Blue Star, Asian Star Company and Rajesh Exports rose by between 0.11% to 6.21%.

Auto stocks extended recent gains on the back of strong sales in the month of December 2009 and higher advance tax payment in the third quarter.

India's largest tractor marker by sales Mahindra & Mahindra (M&M) advanced 4.52%. Mahindra & Mahindra, reported 122% rise in its domestic sales to 22,754 units in December 2009 over December 2008. The company sold a total of 24,001 vehicles (domestic plus exports) in December 2009 as against 11,172 vehicles sold in December 2008.

India's top truck maker by sales Tata Motors rose 4.39%. Tata Motors registered 105% growth in sales to 51,627 units in December 2009 over December 2008.

TVS Motors rose 9.59%. The company said its sales rose 34% to 119,701 units in December 2009 over December 2008.

But, India's largest motorcycle maker by sales Hero Honda Motors fell 0.18%. Sales jumped 74% to 375,838 units in December 2009 over December 2008.

Bajaj Auto fell 1.66%. Bajaj Auto sold 2,20,429 two-wheelers in December 2009, registering an 85% growth in sales over the same month last year, when it sold 1,19,215 units.

India's top small car marker by sales Maruti Suzuki India fell 0.57%. Maruti, posted a 51% rise in total sales in at 84,804 units in December 2009 over December 2008.

Metal stocks rose as after LMEX, a gauge of six metals traded on the London Metal Exchange, rose. 0.14% on Thursday, 31 December 2009. Steel makers rose as steel companies are reportedly eyeing higher prices in 2010 as stronger economic growth worldwide drives up demand for the critical building material. Tata Steel, Jindal Steel & Power, JSW Steel rose by between 1.05% to 2.66%.

Steel Authority of India (SAIL) rose 3.14% after company reported a 32% growth in sales at 1.3 million tonne in December 2009 from a year ago

Recently, Tata Steel raised prices by Rs 2,000 a tonne, while state-owned Steel Authority of India (SAIL) withdrew the Rs 750-1,500 per tonne rebate it had started offering in November 2009, following the increase in raw material cost.

Among non ferrous stocks, National Aluminum Company, Stelite Industries, Hindalco Industries rose by between 1.49% to 5.23%.

Software pivotals rose on recent encouraging economic data in the United States. US is the biggest market for Indian IT firms. India's second largest software services exporter Infosys rose 0.35% even as its ADR fell 0.79% on Thursday. India's largest software services exporter TCS rose 0.26%. India's third largest software services exporter Wipro rose 2.09% even as its ADR fell 0.54% on Thursday.

India's largest thermal power generator by sales NTPC declined 1.65% on profit booking after the scrip climbed 13.8% in seven trading sessions to Rs 235.70 on 31 December 2009, from a recent low of Rs 207.05 on 18 December 2009.

Among other prominent power sector stocks, Tata Power Company, Reliance Power, Reliance Infrastructure, Torrent Power rose by between 0.64% to 2.13%.

JSW Energy settled at Rs 100.75, a premium of 0.75% over the initial public offer price of Rs 100. The stock debuted at Rs 102, a premium of 2% over the initial public offer (IPO) price.

Rate sensitive realty stocks rose on reports realty sector holds promise in the year 2010 after a lackluster 2009. India's largest realty player by market capitalization DLF rose 0.97%. On 16 December 2009, the company's board approved merger of its commercial realty arm DLF Assets (DAL) with itself, a move aimed at repaying some of DAL's debt.

Among other realty stocks, Unitech, Housing Development & Infrastructure, Peninsula Land rose by between 0.25% to 1.94%.

India's largest engineering & construction firm by sales Larsen & Toubro rose 0.71% extending Thursday's gains after company said today it won orders worth Rs 987 crore. The company said on Thursday 31 December 2009 it won two orders totaling Rs 580 crore.

Among other capital goods stocks, Bharat Heavy Electricals, BEML and Praj Industries rose by between 0.71% to 2.08%.

Sugar stocks soared as prices of the commodity rose sharply last week. Shree Renuka Sugars, Bajaj Hindusthan Sugar and Industries, Dhampur Sugar and Balrampur Chini rose by between 2.36% to 8.78%. Ex-mill sugar price in the state is at a record high of Rs 3,700 a quintal. Prices have gone up 7-8% in one month, though crushing season is on.

The Union government has allowed duty-free import of raw sugar to tide over the domestic production shortfall. In the 2008-09 season ending October 2009, domestic sugar output fell 42 per cent to 15 million tonne, causing retail sugar prices to more than double. Currently, sugar is selling at Rs 42-43 a kg in retail.

JSW Energy clocked highest volume of 3.51 crore shares on BSE. Cals Refineries (2.56 crore shares), Reliance Industries (1.4 crore shares), FCS Software (1.31 crore shares) and Sanraa Media (1.14 crore shares) were the other volume toppers in that order.

Reliance Industries clocked the highest turnover of Rs 1516.70 crore on BSE. JSW Energy (Rs 353.69 crore), OnMobile Global Solutions (Rs 142.61 crore), Tata Steel (Rs 118.57 crore) and Tata Motors (Rs 109.95 crore) were the other turnover toppers in that order.

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