Market Roundup

Market Round up SENSEX -14764 NIFTY -4375 Nifty P/E P/B Div Yield 02-Mar-09 12.7 2.22 2.09 26-Jun-09 20.08 3.63 1.14Q4 GDP number beats expectations•The National Stock Exchange (NSE) to boost the sentiments announced a reduction in the lot size of a number of derivatives contracts and Highlights Last month set value of the contract at Rs 2 lakh. The reduction in lot size may result in increased participation from retail investors. •The manufacturing index was boosted mainly by the new orders index, which rose to 59.1 in May 2009 from 54.9 in April 2009. Manufacturing makes up about 15% of India's gross domestic product. •India's economy expanded 5.8% in the fourth quarter ended March 2009 compared with a year earlier. Economists were expecting a 5% increase. The GDP grew 6.7% in the year ended March 2009, slowing from 9% in the previous year which is better than expected.•As per the Government Data India's consumer price index rose 8.70% in April 2009 from a year earlier, higher Highlights Last month than March's 2009 annual rise of 8.03%. The consumer price index for industrial workers increased by 2 points to 150. •The sentiment is upbeat following upgrade in earnings of India Incas thumping victory of the Congress-led United Progressive Alliance (UPA) in the 15th Lok Sabha elections means political stability for the next five years. •Market may see a pre-budget rally on hopes of accelerated economic reforms and pro-reforms announcements. Budget expectations 2009 •PHARMA -Tax incentives on exports •OIL&GAS-De-regulation of oil prices •AUTOMOBILE-Excise duty cut, Lower interest rates •INFORMATION TECHNOLOGY-Extend Tax benefits on STPI beyond FY2010 •CEMENT-VAT on cement and clinker be reduced to 4% from existing12.55% •FMCG-Reduction of VAT from 12.5% to 4% on biscuits and Excise duty likely to be increased from 8% to 10% •REAL ESTATE-Hike in income-tax exemption available for interest payment (of housing loan) from Rs 1.5 lakh to Rs 2.5 lakh a year., Re-introduce Sec 80IB, tax holiday scheme for housing projects•TELECOM-Tax holiday for M&A activities of telecom companies to be extended till April 2010 Budget expectations 2009 •BANKING-To bring down the lock in period of term deposit from current 5 years to 3 years under section 80C, Recapitalization of PSU banks •TEXTILES-Exemption of excise duty and customs duty on manmade fibres and their intermediate, To increase allocation under TUF •POWER-National Electricity Fund with a corpus of Rs 1000 bn -1500 bn to finance development of power T&D network by state utilities so as to reduce T&D losses •METALS-Imposition of safeguard duty on HR Coils, Increased spending in infrastructureSENSEX – Out performersSENSEX – Under performers