Monthly economy review
India’s trade deficit in November 2009 came in at USD9.7
billion, declining on a year-on-year (y-o-y) basis but increasing
on a month-on-month (m-o-m) basis. On a y-o-y basis, the
trade deficit fell by 21.4% whereas the sequential increase in
the same stood at 10%. Notably, exports registered a y-o-y
growth of 18.2% in November 2009, after contracting for 13
consecutive months. Meanwhile imports continued to
contract albeit at a slower pace of 2.6% year on year (yoy).

__________________
"If I engage God in my battles and surrendermyself totally to him and his will, I would never lose. In a bettle there is one general. I shouldn't get in Gods way to be general. The best way to fight your battles is on your knees." Charles stanley

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News Roundup
• India’s benchmark index, Nifty closed in red with a
decline of 2.56% for the week ended 6th Feb, 10
on the back of profit booking and weak global
cues. Most of the global indices ended in red
during this week.
• Nifty reacted sharply along with Asian and global
indices. The global markets were concerned about
developments in Europe. The concerns about
default by Greece, Portugal and Spain are rising
.The pricing of credit default swap on sovereign
debt of these countries has been rising
• The securities and Exchange Board of India
(SEBI) has directed mutual funds to mark-tomarket
debt and money market securities with
residual maturity of upto 91 days or over (earlier it
was 182 days) and value papers at weighted
average price at which they are traded on the
particular valuation day.SEBI has also directed
mutual fund firms to disclose transaction details on
daily basis, including inter scheme transfers.
• RBI has withdrawn the facility of short term foreign
currency borrowing provided to Non Bank Finance
Companies-Non deposit taking-Systematically
important and Housing finance companies. RBI
had allowed this facility in 2008 to raise short term
foreign currency borrowing not exceeding 50% of
net owned funds or $10mn which ever higher
• India received $1.5bn FDI in December
2009($1.36bn in Dec, 08), an increase of over
10% y-o-y.This is third consecutive jump of FDI on
y-o-y basis.
• India inc.’s overseas borrowing through external
commercial borrowing (ECB) and Foreign
currency convertible bond (FCCB) declined by
33.6% in Dec, 09 to $1.56bn as against $2.35bn in
Nov, 09.
• RBI survey has projected export would grow by
15.3% in next fiscal to $197.1bn.

__________________
"If I engage God in my battles and surrendermyself totally to him and his will, I would never lose. In a bettle there is one general. I shouldn't get in Gods way to be general. The best way to fight your battles is on your knees." Charles stanley

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• Food inflation rose to 17.56 %( 17.4 % a week
ago) for the week ended January 23, driven by
higher pulses, vegetable prices.
• India’s forex reserves stood at $280.95Bn as on
29th Jan 10, with a decline of $1.9bn over the
figures of 22nd Jan 10.
• IMF has projected Indian Economy will grow by
6.75% in FY10 which is lower than RBI projection
(7.5%) and govt of India projection (7.75%).IMF
has projected a growth in FY11 would be 8%.
• Investor’s withdrawals of almost $1.6bn as on
week ended Feb.3 (EPFR global reported) from
global emerging markets equity funds led to a fall
in MSCI index (Emerging markets index, a gauge
of 22 developing nation) by 2.6%.
• The euro weakened to an eight-month low against
the dollar over a concern of widening budget
deficits would adversely impact economic
recovery.

__________________
"If I engage God in my battles and surrendermyself totally to him and his will, I would never lose. In a bettle there is one general. I shouldn't get in Gods way to be general. The best way to fight your battles is on your knees." Charles stanley

• The unemployment rate in the U.S. dropped to 9.7
percent in Jan,10 lowest in five months even
though initial claims for jobless benefit jumped to
about half a million.
• China sold 10-year bonds at an average yield of
3.43 %( lower- than-forecast yields). Higher
demand from state owned banks to invest in govt
securities resulted such low yields.
• The market is expected to be influenced by further
developments in Euro zone and other global
issues. IIP numbers would be announced on 12th
Feb.

__________________
"If I engage God in my battles and surrendermyself totally to him and his will, I would never lose. In a bettle there is one general. I shouldn't get in Gods way to be general. The best way to fight your battles is on your knees." Charles stanley

FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category Date Buy Value Sell Value Net Value
FII 06-Feb-2010 8.24 36.69 -28.45

DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category Date Buy Value Sell Value Net Value
DII 06-Feb-2010 73.49 41.01 32.48

__________________
"If I engage God in my battles and surrendermyself totally to him and his will, I would never lose. In a bettle there is one general. I shouldn't get in Gods way to be general. The best way to fight your battles is on your knees." Charles stanley

India estimates FY 10 GDP growth at 7.2% (above market poll of 7% ) delivery selling in key index stocks, profit sales likely extend in specific stocks

__________________
"If I engage God in my battles and surrendermyself totally to him and his will, I would never lose. In a bettle there is one general. I shouldn't get in Gods way to be general. The best way to fight your battles is on your knees." Charles stanley

POST MARKET
The BSE Sensex closed higher by 106.57 points or (0.67%) at
16,042.18 and NSE Nifty ended up by 32.25 points or (0.68%) at
4,792.65. BSE Mid cap and Small cap closed with gains of 28.55
and 36.14 points at 6,458.91 and 8,227.34 respectively. The BSE
Sensex touched intraday high of 16,094.13 and intraday low of
15,862.90. Among the Sensex pack 19 stocks ended in green
territory and 11 in red. The market breadth indicating the overall
health of the market remained positive as 1500 stocks closed in
green while 1302 stocks closed in green and 79 stocks remained
unchanged in BSE. The S&P CNX Nifty is up by 32.25 points or
0.68% to 4792.65. The NSE turnover was down Rs.12698.05 from
last trading session’s Rs. 14131.93 Crore.

__________________
"If I engage God in my battles and surrendermyself totally to him and his will, I would never lose. In a bettle there is one general. I shouldn't get in Gods way to be general. The best way to fight your battles is on your knees." Charles stanley

SENTIMENT INDICATOR
PCR of index options is at 0.84 last trading session’s 1.04. PCR of
Stock options is at 0.29 last trading session’s 0.29. PCR of total
F&O is at 0.82 last trading session’s 1.01. The advances are 694;
declines are 576. The implied volatility has decreased to 25.95
from last trading session’s 26.87

__________________
"If I engage God in my battles and surrendermyself totally to him and his will, I would never lose. In a bettle there is one general. I shouldn't get in Gods way to be general. The best way to fight your battles is on your knees." Charles stanley

NEWS UPDATES
• Pantaloon Retail (India) plans to spin off at least five of
its brands and merge them with Capital Foods, as it looks
to consolidate foods businesses under one company.
• Areva T&D India received two orders worth Rs 280 crore
from Power Grid Corporation of India.
• GMR Infrastructure, a consortium of the company won a
road construction contract worth Rs 1700 crore.
• Share of three oil exploration firms rose after crude oil
prices gained almost 1% on the New York Mercantile
Exchange, on Monday 8 February 2010.

__________________
"If I engage God in my battles and surrendermyself totally to him and his will, I would never lose. In a bettle there is one general. I shouldn't get in Gods way to be general. The best way to fight your battles is on your knees." Charles stanley

EVENT TO WATCH
US- ICSC Goldman store sales
US-whole sale trade

__________________
"If I engage God in my battles and surrendermyself totally to him and his will, I would never lose. In a bettle there is one general. I shouldn't get in Gods way to be general. The best way to fight your battles is on your knees." Charles stanley