>WEEKLY MARKET RECAP (RELIGARE SECURITIES)

Market this week was dominated by bulls with the BSE Sensex wrapping the week on a cheerful note and registering a gain of 12.1% and Nifty also registered a gain of 10.7%.Foreign Institutional Investors were net buyers to the tune of Rs. 1,520 crore while the Mutual Funds were net buyers to the tune of Rs. 443 crore.

Inflation continued its declining trend inching closer to zero mark. The annual wholesale price index-based inflation fell further to 0.27% for the week ended Mar. 14, 2009 as compared to 0.44% a week ago. It stood at 8.02% during the corresponding week of the previous year.
Six core infrastructure industries comprising of crude oil, petroleum refinery products, coal, electricity, cement and finished carbon steel expanded by 2.2% in the month of February from 1.4% in the previous month. However, the growth was low compared to the year-ago level
of 7%. Growth for the April-February period fell to 3% from 5.8% a year ago.

National Advisory Committee on accounting Standards (NACAS), has favored the suspension of rule that requires firms to mark-to-market foreign exchange assets and liabilities until April 2011 as reported. The Confederation of Indian Industry (CII) had recommended the suspension of this rule known as AS-11, which required firms to mark-to-market foreign exchange assets and liabilities for two years, as it could severely distort earnings of many companies at a time when market conditions are not normal. Indian industry may post better results if the recommendations of are accepted. Many companies would post higher profits, as 27% rupee depreciation against dollar in the past one year, would not be reflected in their results. This would lead to higher tax collections for the government.

Kalpataru Power Transmission Limited (KPTL), has bagged three orders worth Rs 399 crore from Power Grid Corporation of India Limited (PGCIL) for 765 kv and 400 kv transmission line projects. The orders are for supply and construction of transmission lines in Bihar, Chhattisgarh and Assam. The delivery schedule of these projects range between 18 to 24 months. The order book of Kalpataru Power is now in excess of Rs 5000 crores.

On the international front, the number of people collecting U.S. jobless benefits rose to a record 5.56 million, indicating more Americans are spending longer periods out of work. Initial claims topped 600,000 for an eighth straight time. Total benefit rolls jumped by 122,000 in the week ended March 14, from 5.44 million the previous week.

To see full report: WEEKLY REVIEW 270309