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The British pound was little changed on Friday following the four-day rally and the currency may continue to retrace the sell-off from the previous month as the economic outlook for the U.K. improves. At the same time, former Bank of England member Charles Goodhart expects the central bank to tighten policy over the coming months and said that “the expansion of quantitative easing will be reduced in scale and possible paused for a time” as he anticipates the BoE to follow other central banks “cautiously,” and long-term expectations for higher borrowing costs could drive Cable higher over the coming month.

The GfK consumer confidence survey rose to a 21 month high in October, with the index advancing to -13 from -16 in the previous month, and the data reinforces an improved outlook for private spending as households turn increasingly optimistic towards the economic recovery. The breakdown of the report showed the gauge for major purchases rose to -12 from -15 in September, which is the highest since November 2007, while expectations for future savings slipped to -6 from -5 in the previous month. Moreover, the Nationwide house price index rose 0.6% in October to mark the sixth consecutive monthly advance, while the annualized rate rose 2.0% from the previous year to post the first annual increase since March 2008, and conditions may continue to improve throughout the second-half of the year as policy makers take unprecedented steps to stimulate the ailing economy. As policy makers see the nation emerging from the worst recession since the post-war period, the BoE may follow suit and begin to implement an exit strategy over the remainder of the year, and market participants may ramp up expectations for a rate hike in the following year as the central bank anticipates the economy to return to growth in 2010.

The Euro slipped to a low of 1.4805 during the overnight session following an unexpected drop in German retail sales, but bounced back to hold along the 20-Day SMA at 1.4850 however, the lack of momentum to close above the moving average during the last two-days may keep the pair within a narrow range going into the U.S. trade as investors weigh the outlook for global growth. Retail spending in Germany slipped 0.5% in September amid expectations for a 1.0% rise, while the annual rate of consumption plunged 3.9% from the previous year after falling 2.9% in August. Moreover, the annual rate of unemployment rose to 9.7% from 9.6% in August, which is the highest since January 1999, while the consumer price estimate weakened 0.1% in October to mark the fifth consecutive monthly decline, and the European Central Bank may hold a dovish policy stance throughout the second-half of the year as the outlook for growth and inflation remains far from favorable.

U.S. dollar price action was mixed overnight, with the USD/JPY slipping back below the 50-Day SMA (91.23) as the Bank of Japan voted to halt its corporate debt purchases at the end of the year, and the reserve currency may face increased volatility going into the North American trade as investors weigh the outlook for future policy. Economists forecast personal spending in the world’s largest economy to fall 0.5% in September after growing 0.1% in the previous month, while personal incomes are projected to hold flat after advancing 0.2%, and the data could weigh on the exchange rate as policy makers continue to see a risk for a protracted recovery. At the same time, manufacturing activity is anticipated to fall at a slower pace in October as market participants forecast the Chicago PMI to rise to 49.0 from 46.1, while the final U. of Michigan confidence reading is expected to increase to 70.0 from 69.4, and we may see some mixed reactions following the slew of data on the last trading day for October.

Mumbai: With the aim of giving local investors the opportunity to invest in overseas firm, UK Based Standard Chartered Bank is likely to be the first foreign entity to list in India.

"The bank is actively considering a listing of its shares in India via an issue of Indian Depository Receipts (IDRs) in order to grow brand presence and its business in this key market. We are working with the Indian authorities and a decision on timing will be taken in due course," said Peter Sands, Group Chief Executive, Standard Chartered Bank.

If bank's board approves this step, the bank would be the first foreign entity to use the IDR route and raise capital in India. It would be a test case of Indian investor demand for shares in an overseas firm.

An IDR is a financial instrument similar to a global depository receipt (GDR) and American depository receipt (ADR), the objective of which is to provide a platform to foreign firms to directly raise capital in India. For Indian investors, IDRs would provide a route to invest in foreign firms.

"The significance of this lies at two levels. First, Indian citizens will be able to easily improve their portfolio diversification. Second, this represents export of financial services from India. When a foreigner decides to buy or sell a global security that is traded in India, we will be in direct competition with global markets. For the first time, we will now be competing in finance on the global landscape," said said Ajay Shah, Senior Fellow at the National Institute of Public Finance and Policy.

Since 2007, India has been a key market for the bank and is now the second largest contributor to the bank's profits after Hong Kong, adding 19 percent to the bank's profit in the first half of 2009. At 24 percent, India's wholesale banking operations are the largest contributor to the lender's global revenue. Operating profit from its India operations declined 13.20 percent to $526 million (Rs.2,498.5 crore) for the half year ended June 2009.

"The bank has received the Reserve Bank of India (RBI) approval for the IDR. However, it is now in dialogue with the Securities and Exchange Board of India (SEBI)," said a senior official from Standard Chartered Bank who did not want to be identified because he is not authorized to speak to the media. "The bank would be raising anywhere close to $500 million," added Shah.

A Standard Chartered India spokesperson refused to comment on the amount and possible The bank, which has been in India since 1858, has 90 branches nationwide, with a retail customer base of about two million, and has received approval from RBI to open four more branches.

RBI in July issued guidelines to facilitate global firms to raise capital from India through IDRs. According to RBI, IDRs would have to be sold in Indian rupees and the proceeds remitted immediately. Investors will also not be allowed to convert them into equity shares until at least a year from the the date of issue.

In line with the Foreign Exchange Management Act of 1999, RBI has permitted foreign institutional investors, including their Sebi-approved sub-accounts, and non-resident Indians (NRIs) to invest in, purchase, hold and transfer IDRs. NRIs will need to invest in the IDRs using funds held in their non-resident external and foreign currency non-resident accounts with banks.

The British pound racked up heavy losses on Friday, tumbling 1 percent against the Japanese yen and nearly 2 percent against the US dollar, after UK GDP unexpectedly showed that the nation did not emerge from recession during Q3, and instead, the economy contracted for the sixth straight quarter at a rate of -0.4 percent. Likewise, the annual rate of growth edged up to -5.2 percent from -5.5 percent, falling short of expectations for a move to -4.6 percent. A breakdown of the GDP report showed that nearly every UK business sector remained in recession, as the services industry component fell by 0.2 percent while the production industry component tumbled 0.7 percent.

Going forward, it’s worthwhile to note that GDP is a lagging indicator and the release’s impact on interest rate expectations is the most important part. Indeed, the British pound fell sharply because Credit Suisse overnight index swaps shifted to price in a 10 percent chance of a 25 basis point cut by the BOE during their next meeting. Furthermore, expectations for rate increases over the next 12 months fell to 88.1 basis points from 93.4 basis points. While the BOE hasn’t really given any indication of their collective stand on quantitative easing (QE) at this juncture, we do know that the Monetary Policy Committee (MPC) is looking for reasons to justify either winding down or expanding their target level of asset purchases. The minutes from their October policy meeting showed that the "forecast round ahead of the November Inflation Report would provide an opportunity to assess more fully how the medium-term outlook for activity and inflation had evolved since August," and if the latest economic data has any bearing on the MPC’s bias, it looks there is still some bearish potential for the British pound.

Looking ahead to the next week, UK data shouldn’t have too much of an impact on rate expectations, but there is always the lingering risk that BOE MPC members will make comments that could impact trade. Thursday is really the only day with scheduled indicators on hand. Net consumer credit in the UK is anticipated to remain negative for the third straight month at -0.2 billion pounds, but on the other hand, UK mortgage approvals are projected to hit a more than one-year high of 53,600, suggesting that lending levels remain low but housing demand is growing. Meanwhile, GfK consumer confidence is forecasted to climb to a nearly two-year high of -14 from -16, indicating that sentiment is still pessimistic but improving, albeit at a slow pace. All told, where GBPUSD goes in the coming week will likely have more to do with US dollar trends than UK fundamental forces, but a break below the 50 SMA at 1.6265 opens the door to much steeper declines.

The Japanese Yen fell against major forex counterparts for the third week in a row, slipping further on outperformance across key risky asset classes. Yet the 20-day correlation between the US Dollar/Japanese Yen pair and S&P 500 actually turned negative for only the second time in two years—emphasizing ongoing shifts in FX market dynamics. The Yen has long been the go-to currency during times of market stress and, by extension, the first to fall through financial market booms. As the lowest-yielding currency in the industrialized world, investors aggressively borrowed JPY to fund investments in sources of higher income. More recently however, the US Dollar has taken the dubious honor of the cheapest currency to borrow across global financial markets. The surprising shift goes a long way in explaining the USDJPY pair’s inverse correlation to key risky assets, and it will likely remain a major factor for the Japanese Yen through the foreseeable future.

Week in and week out, we have repeated that financial market risk sentiment and the trajectory of the S&P 500 would be the major determinant of USDJPY price action. Of course, the substantive shift in risk correlations would suggest USDJPY moves may depend on other fundamental factors. Against other counterparts, the Yen’s continued losses show little investor interest in buying and holding the low-yielding currency. Given its extraordinarily low yield, holding Japanese Yen is an expensive proposition; the trader must pay higher interest rates to receive paltry JPY yields.

A cursory look at a Yen chart will show you that the currency will tend to lose more often than it gains—except to note that its rallies are far sharper than its declines. That is to say, FX traders avoid buying Yen unless they absolutely have to. And when they are forced to cover JPY short positions, they typically do so in a hurry. Given these JPY trading dynamics, we believe that the Japanese Yen is likely to continue drifting lower against the Euro, British Pound, Australian Dollar, and New Zealand Dollar. The wildcard remains whether we can expect a noteworthy correction in broader financial market risk sentiment.

Impressive performance and fresh highs across key barometers leaves markets at prime risk of pullback. Yet too many traders have gone bust in trying to time a market top. Until we see plausible signs of market turnaround, we have little reason to believe that the Japanese Yen may recover against higher-yielders. The admittedly unpredictable dynamics between the US Dollar and Japanese Yen make the USDJPY an especially challenging pair to trade. If nothing else, however, its recently bullish momentum is likely to keep it aloft through the coming week of trade.

The Euro continued its dominance against the US Dollar for the third consecutive week of trading, closing above the psychologically significant $1.50 mark for the first time in 14 months. Unlike previous weeks, however, the single currency persevered against the safe-haven US Dollar despite relatively lackluster performance in the S&P 500 and other key risk sentiment barometers. Last week we argued that the high-flying EURUSD would increasingly need support from risky assets to continue its impressive rallies. Yet the S&P 500 finished the week 0.75 percent lower and yet the Euro traded higher.

A surprisingly bullish streak for key European economic data seemingly made the difference, and fundamental forecasts for domestic growth remain quite bullish. Whether this is enough to propel the Euro to fresh highs is perhaps another matter, however, and a relatively important string of economic releases could force substantive shifts in Euro forecasts.

Impressive German IFO Business Confidence figures and Euro Zone Purchasing Manager Index numbers set the stage for respectable recovery across broad swaths of the regional economy. Indeed, sanguine growth forecasts have led traders to price in relatively substantial interest rate hikes from the European Central Bank. The lure of higher yields has undoubtedly played a part in Euro/US Dollar rallies, but the extent of Euro appreciation leaves it at clear risk of pullback. ECB watchers will keep a close eye on the coming week’s German and Euro Zone Consumer Price Index figures for important surprises. Current consensus forecasts call for yet another negative year-over-year change in Euro Zone Consumer Prices, but the rate of contraction is expected to narrow to a meager 0.1 percent. Suffice it to say, any material disappointments could make a considerable dent on ECB interest rate expectations. Wednesday’s German CPI figures could subsequently set the tone for near-term Euro/US dollar trading.

Traders will otherwise keep a close watch on global risky asset classes—especially as the Euro’s correlation to the S&P 500 trades near record highs. The US Dow Jones Industrial Average’s close below the psychologically significant 10,000 mark suggests that financial market risk appetite is not quite as robust as previously believed. Yet we would hardly call for a market top without a more substantive pullback across a broad swath of indicators. FX Options market volatility expectations have come down since last week’s peak, but it should be yet another week of eventful price action out of the Euro and US Dollar in the face of noteworthy event risk.

What little strength the dollar seems to find during the trading week seems to ultimately be swept away by the financial markets’ primary fundamental driver – sentiment. Whether or not the dollar makes for the ideal funding currency to the recuperating carry trade, it has already been put into that niche; and the rationale of the situation will not be reevaluated until either the trend stalls or there is a prominent change in the dollar’s fundamental makeup. There is the sense that this currency has resigned to a seeming permanence in its role as the FX whipping boy and the steady decline to fresh 14-month lows day after day. However, while the rise in risk appetite has maintained its bearing, it has a lost much of its fervor. This could signal the first stage of a reversal in yield appetite (and the subsequent recovery in the US dollar); and it could open the door for the big ticket 3Q GDP release to finally loosen sentiment’s hold over price action.

So far, we have absorbed two notable, third quarter growth readings from major economies; the results couldn’t have shown any greater contrast. Representing the strong face of the emerging market, China reported its economy grew 8.9 percent year-over-year through the third quarter. On the other end of the spectrum, the United Kingdom surprised the market by reporting a 0.4 percent contraction through the three month period ending with September and extending the economy’s worst recession on record. Will the US draw greater similarities to its British or Chinese counterpart? Economists’ expectations are impressive. A projected 3.2 percent annualized pace of growth through the quarter would shed the stigma of recession and bolster hope for a solid recovery on what would be the most significant pace of growth in two years. Gauging whether these projections are reasonable and determining whether the world’s largest economy is on a true pace of expansion, we need to breakdown the major sectors. Government spending plugged the whole but consumer spending, capital investment and a housing recovery are essential for material growth. Housing sales have certainly recovered and construction activity is stabilizing. Earnings through the second and third quarters suggest businesses will pick up production and start spending once gain. Yet, accounting for approximately three quarters of economic output, consumer spending is the backbone of the economy. Confidence seems to have already turned the corner; but consumption and planned purchases are both shaky.

Adding another complication to the high level release, we need to determine whether the dollar will produce a straightforward response to the data or the currency will default to its safe haven role. This is a complicated question; and it depends as much as what is happening with the capital markets heading into the release as the actual data itself. If there is a consistent rise to new heights in optimism, the sentiment aspect will likely win out. Alternatively, if risk appetite happens to commence a meaningful retracement beforehand, the relief for the greenback should allow for an intuitive response.

Keeping everything in perspective though; it is important to realize that the dollar does not have the characteristics of a long-term funding currency. Depressed market rates and benchmark yields are temporary; and there is little reason to doubt policy officials will not be able to work down deficits. Should the US return to growth with this 3Q reading, roles will start to reverse as fundamental realism dawns. On the other hand, a disappointment like that born of the UK’s status report could strengthen the unwanted correlation in the short-term.

Bangalore: Astec Lifesciences plans to open initial public offering (IPO) of 75,00,000 equity shares of Rs.10 each for cash at a price of Rs.77-82 per equity share, aggregating Rs.57.75-61.50 crore on October 29, 2009.

The money raised via issue will be used for expansion of existing manufacturing facilities at Mahad, Maharashtra (at cost of Rs.31.24 crore); expansion of existing research and development facility at Dombivli, Maharashtra (at Rs.2.46 crore); meeting registration expenses (at Rs.3.69 crore) and meeting long-term working capital requirements (at Rs.11 crore).

The company is engaged in the manufacture and sale of intermediates, active ingredients and formulations in the off patent-proprietary category with a focus on agrochemicals and pharmaceutical sector. The issue comprises a reservation of 1,00,000 equity shares for subscription by eligible employees at the issue price and net issue of 74,00,000 equity shares. The issue constitutes 44.30 percent of the fully diluted post issue paid-up capital of the company.

The equity shares are proposed to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) of India. Almondz Global Securities is the Book Running Lead Manager (BRLM) and IDBI Capital Market Services is the Co-book Running Lead Manager to the issue. Bigshare Services is the Registrar to the issue.

Bangalore: ICICI Prudential Technology Fund tops the mutual fund scheme last week. In the week ended October 23, 2009, the value of ICICI scheme went up by 3.4 percent with the net asset value (NAV) of Rs.12.35. Mrinal Singh is the Fund Manager of this open ended scheme, which had a market size of Rs.89.39 crore as on September 30, 2009. Some of the key holdings of the fund are Infosys Technologies, Eclerx Services, Infotech Enterprises and Wipro.

The objective of the scheme is to generate long-term capital appreciation for investors from a portfolio made up predominantly of equity and equity-related securities of technology intensive companies. According to mutualfundsindia.com, other funds which followed ICICI Prudential Technology Fund in top list for the last week are Franklin Infotech Fund, Birla Sun Life Commodity Equities Fund and DSP BlackRock Technology.com Fund with a growth rate of 3.33, 3.03 and 2.64 percent respectively.

Mutual funds are sitting on a whopping Rs.13,957.4 crore of cash, which is waiting to be deployed in the market. The total assets under management (AUM) of equity mutual funds stood at Rs.213,043.5 crore in September 2009, a growth of 5.4 percent from August 2009. On adjusting for the net inflows/outflows, the growth stood at 6.4 percent, which was marginally lower than the growth in the market, which grew by 7.5 percent in the same period.

Birla Sun life Mutual Fund saw the largest increase of Rs.2,008.9 crore in its AUM, followed by Baroda Pioneer and Canara Robeco Mutual Fund. Fund flows into the existing schemes declined by 11.5 percent. The NFO (new fund offer) collections include the amounts raised by Shinsei Industry Leaders Fund, Kotak Select Focus, Sahara Star Value Fund, Franklin Build India Fund and Canara Robeco FORCE Fund.

In line with the upward trend in the equity markets during the month, all sector funds delivered positive returns in September 2009 except the FMCG (fast moving consumer goods) index, which gave a slightly negative return.

While banking, automobile and pharmaceutical funds outperformed the Sensex, the FMCG funds underperformed the Sensex. The information technology (IT) funds delivered returns that were in line with the Sensex. Banking funds gave the highest returns in September 2009, followed by automobile and pharmaceutical funds.

Bangalore: DEN Networks is planning to launch $100 million IPO (initial public offering) on October 28, reports CNBC-TV18.As per the DRHP (draft red herring prospectus) filed with SEBI (Securities and Exchange Board of India) in August 2009, the company has planned an IPO of two crore equity shares of Rs.10 each. The net issue would constitute nearly 15 percent of the post issue paid-up capital of the company.

DEN Networks is in the business of distribution of analog and digital cable television services. It currently provides cable television services in the national capital region of Delhi and the states of Uttar Pradesh, Rajasthan, Maharashtra, Gujarat, Karnataka, Haryana, Madhya Pradesh and Kerala.Den plans to use funds raised via issue for investing in the development of cable television infrastructure and services; investing in the development of cable broadband infrastructure and services; investing in acquisition of content and broadcasting rights; repaying certain loans availed by the company and funding expenditure for general corporate purposes.

Deutsche Equities India and Antique Capital Markets and Karvy Computershare are the registrar to the issue. For the year ended March 31, 2009, it has reported loss of Rs.13.8 crore and total income of Rs.271.11 crore.

Forex trading crowds remain heavily net-long the US Dollar through time of writing, leaving little scope for a short-term Dollar recovery. Last week we called for continued USD losses on one-sided positioning, and indeed the Greenback continue to lose ground as our SSI ratios remained extreme. More recently we have seen somewhat of a moderation in Dollar longs—especially against the Euro, Japanese Yen, and Canadian Dollar. This ostensibly leaves room for further dollar pullbacks, but we can hardly call for major reversals until we see price move substantively in the same direction. As it stands, we remain bearish and forecast losses in the US Dollar.

Historical Charts of Speculative Forex Trading Positioning

EURUSD – The ratio of long to short positions in the EURUSD stands at -1.53 as nearly 61% of traders are short. Yesterday, the ratio was at -2.32 as 70% of open positions were short. In detail, long positions are 26.6% higher than yesterday and 24.9% stronger since last week. Short positions are 16.2% lower than yesterday and 9.5% weaker since last week. Open interest is 3.3% weaker than yesterday and 0.3% above its monthly average. The SSI is a contrarian indicator and signals more EURUSD gains.

GBPUSD – The ratio of long to short positions in the GBPUSD stands at -1.40 as nearly 58% of traders are short. Yesterday, the ratio was at -1.00 as 50% of open positions were short. In detail, long positions are 23.9% lower than yesterday and 25.5% weaker since last week. Short positions are 6.3% higher than yesterday and 5.2% weaker since last week. Open interest is 8.8% weaker than yesterday and 6.9% below its monthly average. The SSI is a contrarian indicator and signals more GBPUSD gains.

USDJPY – The ratio of long to short positions in the USDJPY stands at 1.81 as nearly 64% of traders are long. Yesterday, the ratio was at 2.46 as 71% of open positions were long. In detail, long positions are 10.6% lower than yesterday and 28.3% weaker since last week. Short positions are 21.2% higher than yesterday and 48.8% stronger since last week. Open interest is 1.4% weaker than yesterday and 6.4% below its monthly average. The SSI is a contrarian indicator and signals more USDJPY losses.

USDCHF – The ratio of long to short positions in the USDCHF stands at 3.13 as nearly 76% of traders are long. Yesterday, the ratio was at 3.44 as 77% of open positions were long. In detail, long positions are 5.0% lower than yesterday and 9.1% stronger since last week. Short positions are 4.3% higher than yesterday and 7.0% weaker since last week. Open interest is 2.9% weaker than yesterday and 1.2% above its monthly average. The SSI is a contrarian indicator and signals more USDCHF losses.

USDCAD – The ratio of long to short positions in the USDCAD stands at 2.54 as nearly 72% of traders are long. Yesterday, the ratio was at 3.06 as 75% of open positions were long. In detail, long positions are 11.0% lower than yesterday and 13.5% weaker since last week. Short positions are 7.1% higher than yesterday and 19.0% stronger since last week. Open interest is 6.5% weaker than yesterday and 3.1% above its monthly average. The SSI is a contrarian indicator and signals more USDCAD losses.

GBPJPY – The ratio of long to short positions in the GBPJPY stands at -1.19 as nearly 54% of traders are short. Yesterday, the ratio was at 1.71 as 63% of open positions were long. In detail, long positions are 27.5% lower than yesterday and 31.0% weaker since last week. Short positions are 47.6% higher than yesterday and 37.1% stronger since last week. Open interest is 0.2% stronger than yesterday and 13.6% below its monthly average. The SSI is a contrarian indicator and signals more GBPJPY gains.

The Dollar has been moving in range between 89.30 and 89.65 during Asian session, after bouncing at 88.80 on Wednesday.

On the upside, range top lies at the mentioned 89.65 intra-day high, and above here, next resistance levels are 89.90 (Oct 14 high) and 90.20 (Oct 13 high). On the downside, support level lies at 89.20/30, and below here, 88.80 (Oct 14 low), and 88.65/70 (Oct 8 high).

EUR/JPY continues trading higher, the Euro bounced at 132.25 low on Wednesday to reach levels around 133.80 at the moment of writing, extending rally from 129.55 low on Oct 7. Resistance levels lie at 134.00 and 134.30. On the downside, support levels lie at 133.25 and 132.55.

UK House Prices grew for the first time in over two years, adding 10.7% in August according to a survey from the Royal Institution of Chartered Surveyors (RICS), an industry association for real estate agents. Economists were forecasting a flat result ahead of the release. The rebound may not reflect a rebound in demand however: RICS chief economist Simon Robinsohn said “Its fair to say that a lack of supply is driving the rise in house prices,” adding that it would be “foolish to believe prices are going to go up in a straight line” from here and predicting that “2010 will be a more difficult year.” Indeed, the number of for-sale properties per real estate agent fell by about 23% from a year earlier. Rising unemployment looks to be the central challenge to a sustainable recovery in housing, trimming incomes and weighing on purchasing power. The jobless printed at 4.9% in July, the highest in nearly 12 years, and is expected to top 9% next year.

German Retail Sales are expected to grow for the first in three months, adding 0.7% in July, while the annual pace of decline moderates to -1.2% . The government’s 85 billion euro spending plan (including a “cash-for-clunkers” program to boost auto sales) is the likely catalyst behind the improvement. However, labor market data to be released later in the session is set to show that the German economy shed 30,000 jobs in August, bringing the Unemployment Rate to 8.4%, the highest since November 2007. Job losses will weigh on incomes and weigh on consumption, suggesting the economy will have a hard time building positive momentum after the flow of stimulus cash dries up. The broader Euro Zone Unemployment Rate result will probably follow higher, with forecasts calling for the metric to tick up to a decade high of 9.5% in July, mimicking the dynamics seen in the region’s top economy.

Mumbai: A key index of Indian equities markets shot up after the announcement of strong industrial output and closed the day at 384.01 points above its previous close.

The 30-scrip benchmark index of the Bombay Stock Exchange, Sensex, which opened at 16,687.32 points, was ruling at 17,011.96 points (provisional), up 368.92 points or 2.22 percent.

The S&P CNX Nifty of the National Stock Exchange (NSE) also climbed up to 5,046.75 points, up 2.00 percent.

Broader market indices were also in the green, with the BSE midcap index ruling 1.19 percent higher and the BSE smallcap index up 0.99 percent.

The Canadian dollar was easily the strongest currency of the day, rallying more than 2 percent against the British pound and Japanese yen, as data from the nation was broadly better-than-expected. The Canadian net employment change rose significantly more than projected in September, reflecting a net gain of 36,000 jobs that brought the unemployment rate down to 8.4 percent from 8.7 percent. A breakdown of the report showed a surge in goods-producing, full-time positions, creating some upside potential for consumption in coming months. Likewise, the Bank of Canada's survey of business executives showed that they were more optimistic on conditions over the next year in Q3, as 69 percent said they expected growth to quicken, while 16 percent expected it to slow. Likewise, the Senior Loan Officer Survey (SLOS) showed that, on balance, there was a further tightening in lending conditions, but it was the lowest since the start of the global financial crisis. On the other hand, the Canadian trade balance fell further to a record low of -C$1.985 billion in August from -C$1.316 billion as exports to the US slumped 3.2 percent while shipments to the European Union contracted by 6.6 percent, suggesting demand in the regions remains lackluster.

The British pound took a heavy hit once again on Friday despite mostly positive data. The UK’s visible trade deficit fell to the lowest level in more than three years, narrowing to 6.24 billion pounds in August from 6.431 billion in July, but the shift had more to do with a drop in imports, as exports also fell, indicating the demand remains weak both domestically and abroad. Meanwhile, the producer price index (PPI) that measures input prices slumped 0.5 percent in September, but a 0.5 percent increase in PPI output suggests that businesses have a bit more pricing power these days and may be able to make up for some lost profit margins. Furthermore, the data creates some potential for surprising strong results for the consumer price index (CPI) next week.

Next Tuesday at 4:30 ET, the CPI reading for the month of September is expected to rise 0.3 percent, but the more important part of this report is that the annual rate of growth, which is more closely watched by the Bank of England, is forecasted to fall to 1.3 percent, the lowest since October 2004, from 1.6 percent, keeping inflation within the central bank’s acceptable range of 1 percent - 3 percent, but below their 2 percent target. If CPI falls more than projected, the British pound could pull back sharply as the markets will anticipate that the BOE will expand their quantitative easing efforts even further before year-end. On the other hand, if CPI holds strong as PPI suggests, the currency could rally in response.

The euro saw a mixed day of trading on Friday, gaining against the Japanese yen and British pound but falling versus the Canadian dollar and US dollar. The moves come a day after the European Central Bank’s monthly meeting, in which the monetary policy committee left rates unchanged at 1 percent as “excess volatility and disorderly movements in exchange rates have adverse implications for economic and financial stability.” Evidence of the impact of the euro’s appreciation came in the form of the trade surplus, which narrowed more than anticipated to 8.1 billion euros in August from a revised 14.1 billion euros, as exports fell for the first time in four months by 1.8 percent. The data adds to evidence that the outlook for the trade-dependent economy is still fragile as exchange rates and weak growth through the rest of Europe, the UK, and the US puts their own growth at risk.

The US dollar was one of the strongest major currencies on Friday, following mildly hawkish comments from Federal Reserve Chairman Ben Bernanke on Thursday and the release of US data at 8:30 ET. Yesterday, Bernanke said that the central bank will be prepared to tighten monetary policy when the outlook for the economy “has improved sufficiently” and to "prevent the emergence of an inflation problem down the road." However, he also said that he and his colleagues at the Federal Reserve "believe that accommodative policies will likely be warranted for an extended period." Meanwhile, the US trade deficit for the month of August unexpectedly narrowed to $30.71 billion from $31.85 billion thanks to a 0.2 percent rise in exports and 0.6 percent drop in imports.

Looking ahead to next week, event risk won’t really pick up until Wednesday morning, when the Commerce Department is forecasted to report that US retail sales slumped 2.1 percent in September, after jumping by the most since January 2006 in August at a rate of 2.7 percent. The decline is likely to be due primarily to a drop in auto sales relative to recent months. For example, spending on motor vehicles and parts rocketed 10.6 percent higher in August as the “cash for clunkers” program came to an end, and demand is likely to have fallen without the government-sponsored incentive.

Then, on Wednesday afternoon, the minutes from the Federal Reserve’s last meeting on September 22-23 will be released. Following that meeting, the policy statement initially led the US dollar to sell-off against the most popular currencies as the central bank maintained a neutral tone and repeated that they would keep rates "exceptionally low" for an "extended period." However, the currency subsequently bounced back as the overall sentiment of the statement was optimistic, with the FOMC saying that "economic activity had picked up" while conditions in the financial markets have "improved further." Based on Bernanke’s recent commentary, traders will likely be looking for additional signs of when the central bank will start raising rates.

Chennai: With its focus on the unbanked segment in India, Commonwealth Micro Finance India (CMFIL), a part of UK-based Commonwealth Business Council, has launched a multi-purpose prepaid debit card in India.

The company would be launching the cards in Tamil Nadu in the first phase and then spread its wings across India. It aims to sell 20 million cards by 2012 and has obtained a lease finance of Rs. 600 crore for the purpose, reports Financial Chronicle. "The purpose of the card is to bring down the cost of transaction to the end customer. These cards can also be used in retail outlets and a customer can avail a one percent discount in the tied up outlets," said Mahesh Ramachandran, Managing Director and CEO of CMFIL.

The commonwealth card would be available in both physical and virtual forms. The physical card is authenticated through a pin and biometric, while the virtual cards are authenticated through a pin. The physical commonwealth card can be used on points of sale (POS), automated teller machines (ATMs) and other such devices, while the virtual commonwealth card would enable a customer to use mobile banking and mobile commerce services. The company plans to set up three lakh POS across the country by 2012. The card would be a multipurpose card and would also facilitate international money remittances. The company would first launch the card in North Chennai and aims to sell 30,000 cards in the next three months.

Citibank has launched new reward platform for its credit card holders. Sandeep Bhalla, Citibank India Business Manager said, "This new platform transforms rewards from being an add-on product of card ownership to the center of customer experience."

Currently, customers of Citibank collect some reward points on every purchase through credit card. There is also an option to earn greater reward points by spending at certain stores or by spending on weekends. With the help of new platform, customers can exchange their reward points for over hundred gift vouchers from world's leading brands. Customers can also place their catalogue orders with more ease by calling citiphone or on the Citi rewards site.

The bank also offers customers an easy online redemption. Through alliances with e-commerce portals, Citibank enables its card holders to exchange their reward points for purchases with a choice of over four million products. Purchases can be paid through any combination of rupees and reward points. Customers can also donate their reward points to NGOs (non-government organizations) like CRY and CPAA (Cancer Patients Aid Association), and make a contribution towards child welfare and cancer patients respectively.

The new reward platform also gives its customers the benefit of instant point-of-sale redemption. It enables the customers to redeem their reward points at payment check-out counters of around 190 merchants including Shopper's Stop and Westside.

Citigroup, a global financial services company, is expanded in more than 140 countries. In the last fiscal ended on March 31, 2009, the bank has registered a 20 percent net profit at Rs.2,173 crore.

The British Pound may see selling pressure with clues from the Bank of England seemingly hinting the central bank is preparing markets for more, not less, monetary stimulus. The Euro may slide if the European Central Bank’s rhetoric doesn’t validate rising rate hike bets, shifting traders’ expectations.

Key Overnight Developments

• Japan's Current Account Narrows as Exports Fall Most Since January• Australian Dollar Soars as Jobs Gain 40K, Unemployment Rate Falls• Euro, British Pound Rise Against US Dollar Ahead of Rate Announcements

Critical Levels

The Euro pushed higher in overnight trading, adding as much as 0.6% against the US Dollar. The British Pound was more subdued but still advanced against the greenback, testing as high as 1.6012. We remain short GBPUSD at 1.6617 and EURUSD at 1.4710.

Asia Session Highlights

Australia unexpectedly gained 40,600 jobs in September, sending the Unemployment Rate lower to 5.7% from 5.8% in the previous month, the first drop in five months. Even more encouraging, most of the gains came from a 35,400 increase in full-time positions. The Australian Dollar surged as the data crossed the wires with traders taking the outcome as validation of RBA Governor Glenn Stevens’ promise to extend rate hikes after the central bank unexpectedly raised borrowing costs earlier this week, pushing to test above the 0.90 level against its US counterpart for the first time in over a year. Traders are now pricing in a 99% probability that the RBA will raise rates by another 0.25% next month and at least 1.75% over the coming year.

Looking ahead, it is important to note that fiscal stimulus has played a key role in the labor market’s resilience after the government spent A$20 billion in cash handouts to consumers and committed A$22 billion to new infrastructure projects. Indeed, a report from the Organization for Economic Cooperation and Development (OECD) has said that Australia’s unemployment rate would be as much as 1.9% higher next year without the government’s intervention, equating to about 150-200K more in job losses. While Treasurer Wayne Swan has promised that fiscal stimulus will remain in place despite the central bank’s move to reverse expansionary policy, opposition parties in the government have strongly argued that spending needs to be wound down to reduce the public deficit and are now launching an inquiry into the government’s policies, with results due at the end of this month. The ruling Labor party does not have a voting majority in Parliament, and it remains to be seen what happens to Australia’s employment situation if the opposition successfully cuts off the flow of public funds to the economy.

In Japan, the Current Account surplus narrowed for the third consecutive month, printing at 1171.2 billion yen in August versus 1265.6 billion yen in the previous month. Exports fell -7%, the most since January, outpacing a -4.5% decline imports. More of the same is likely in the months ahead as the Yen appreciates, making Japanese goods increasingly expensive for foreign buyers. Indeed, last week’s Tankan survey of large manufacturers (who primarily cater to the overseas buyers) revealed firms plan to slash capital investment at the fastest rate in over a decade on expectations that sales will fall -10.5% through the 2009 fiscal year (12 months ending April 2010), more than doubling the drop in FY2008. The currency looks set to extend gains after a trade-weighted index of its value broke higher out of a range that had contained prices since early March late last month.

Euro Session: What to Expect

Interest rate announcements from the European Central Bank and the Bank of England headline the economic calendar in European hours. While both monetary authorities are expected to keep policies unchanged, the UK announcement presents a greater potential for volatility versus its continental counterpart.

BOE Governor Mervyn King has done everything in his power to project a dovish bias since the last rate decision, telling the House of Commons Treasury Committee that policymakers are considering cutting the interest rate they pay on bank deposits to encourage lending and talking down the currency with assertions rebalancing the UK economy was “very necessary [and] the fall in the exchange rate that we have seen will be helpful to that process” in an interview with The Journal. We had speculated ahead of the September 10 rate announcement that the bank was preparing the markets for a change in policy after the asset-buying scheme largely failed to affect lending to the real economy. Indeed, although King has said that the BOE was “beginning to see its impact on the supply of broad money,” the M4 measure of money stock grew at an annual pace of just 12.6% in August, the slowest in a year, while central bank’s own data showed net lending shrank for the first time in at least 16 years in July. While a policy shift had not materialized at that point, the BOE has not let up on hinting that more, not less, monetary easing is ahead despite the recent uptick in leading economic indicators, creating the distinct possibility for a dovish surprise this time around.
Turning the ECB, traders are likely to pay little attention to the actual interest rate decision. In fact, the ECB benchmark (officially unchanged at 1% since May) has not been representative of actual lending rates for some time, with the average cost borrowing Euros overnight oscillating between 0.5 and 0.3 percent since June. Rather, traders will focus on bank President Jean-Claude Trichet’s post-announcement press conference. Key economic data turned in mixed results in recent weeks but the bottom line looks far from encouraging: consumer prices fell more than expected in September, lending to the private sector grew at the slowest pace on record in August, and updated GDP figures revealed that the economy depended more on government spending while consumption and investment shrank at a faster pace than originally expected in the second quarter. While Trichet and company have consistently signaled that rates will remain unchanged well into next year, the steady upward drift in traders’ 1-year yield expectations over the past two months suggests the markets will be disappointed if a hawkish streak does not begin to show itself in the near term, weighing on the Euro.

The BoE is expected to keep rates unchanged at 0.50% at their upcoming policy meeting and also refrain from adding to their asset purchase program which stands at £175 bln. Policy makers will most likely wait until November to make any additional determinations when they will have the latest quarterly inflation report.

Fundamental Outlook

The BoE is expected to keep rates unchanged at 0.50% at their upcoming policy meeting and also refrain from adding to their asset purchase program which stands at £175 bln. Policy makers will most likely wait until November to make any additional determinations when they will have the latest quarterly inflation report. Additionally, the current round of quantitative easing will have expired and its results may determine the future course of action. There is great debate over whether the liquidity efforts are having their intended impact or does credit go to the broader global recovery. A lack of new efforts could generate sterling support as the central bank has been extremely dovish in its recent rhetoric. Conversely, additional measures ahead of the next month’s more informed meeting could significantly lower growth expectations for the U.K. and send the pound tumbling. This would coincide with the technical outlook which is calling for the current bearish trend to continue.

Coimbatore: After performing at par in the month of September, which saw Sensex clocking more than nine percent returns, will the markets steer in a crackling festival bonanza? If we go through the past records, October hasn't really been an exciting month for Sensex.

The data with BSE and domestic brokerage firm Anand Rathi financial services shows that since 1991, the Sensex has declined 11 times out of 18 years in October; it has also given negative returns in nearly two out of three occasions when the economy has opened up. D D Sharma, Senior Vice President, Research, Anand Rathi said, "October would be a volatile month. But even if there is a correction it will not be big. Markets have fallen most of the times either before or after Diwali in the past 15 years."

According to the market observers, barring some pockets of undervaluations, most of the large cap segment is fully valued discounting (2010-11) earnings expectations. Investors get into the exit mode when the results start trickling in and make a re-entry once the earnings get fully reflected. "The onset of the festival season and the announcement of corporate results act as a trigger for booking profits," says Sharma.

Mumbai: BSE (Bombay Stock Exchange) has announced a cut in transaction fee in the cash segment of the market from October 7. This step may be in the direction to match its rival NSE (National Stock Echange), which announced similar cut from October 1.

From October 7, the cost of transaction in BSE's cash segment will be Rs.3.25 per lakh, compared to Rs.3.50 that the exchange charges now. This is in line with what NSE charges. Though BSE has a negligible market share in the equity derivatives segment, which is dominated by NSE, it has managed to retain close to 30 percent market share in the cash segment.

On the current move, Madhu Kannan, Managing Director and Chief Executive Officer, BSE said, "With the new pricing framework coming into force from October 7, we are expecting more order flow from Indian and international investors. This shows our commitment to the members that we will continue to strive to provide the most efficient trading platform while bringing down the cost of transactions considerably."The transaction fees charged by Indian stock exchanges are the lowest in the world. However, the cost of trading in the country is high due to other statutory charges such as securities transaction tax and stamp duty.

There are more than a few concerns for fundamental euro traders in the days ahead. Where just a few months ago, the single currency was considered among the best speculatively positioned economies given its optimistic outlook for growth and hawkish bearings; we now see the euro struggling to find its place in a broad spectrum of relative risk and safety. In the normal scale of yield and risk, the euro stands just in the middle of the spectrum which leaves it to be jostled by speculative winds that find greater response from high yield (Aussie dollar) and struggling funding currencies (the US dollar). However, speculation is ever active; and some long-term considerations are starting to come to term. Among the most pressing concerns is the pace Euro Zone’s recover (especially in comparisons to that of the US) and the lingering potential for financial instability.

Just this past week, the EU completed a five-month long stress test of its financial markets; and according to policy officials, the results are promising. ECB President Jean-Claude Trichet required the evaluation of the banking system be put up against an “adverse” scenario. In the end, none of those institutions surveyed were expected to see their tier one capital ratios fall below 6 percent (the Basel minimum is 4 percent) even in the worst of conditions. However, skepticism is likely to develop just as surely as it did after the US test. It is reasonable to question why there were only 22 banks for such a broad region and what the methodology they measure risk; but the real concern Is in the 400 billion euros of additional losses the market could sustain under the most extreme conditions.


We have already seen 489 billion n losses so far; but other outfits have suggested the region could see far more ahead with the IMF suggesting European banks have disclosed only 40 percent of their losses.In the near-term, the outlook for growth and interest rates will take center stage. The World Economic Outlook has upgraded its outlook for expansion for the union with 0.3 percent expansion expected in 2010 and a more restrained (than previously expected) 4.2 percent contraction for the currency year. That a sluggish pace when compared to the 1.3 percent growth expected from the US or 2.7 percent positive turn for Japan. These are forecasts that are certainly weighing on the euro now; but data can quickly eat into this discounted scenario. It is worth mentioning that the timely, September PMI composite indicator has reported expansion for two months (after deteriorating since June of 2008). Maintaining the pace of production after inventories build up and facilitating consumer spending will be the keys to sustainable growth. Yet, officials are also looking for a crutch for recovery in a unified “strong dollar” position that could bolster export revenue. In a recent address, Trichet stated blatantly that a healthy greenback was “extremely important.” This can be interpreted indirectly that he is very concerned about the high level of his own currency.Where growth goes, interest rates will follow; but at this pace, it seems like the hawkish turn from the ECB will be far down the line. Yet, with the market being told that the benchmark will be held well into next year, we have the makings for speculation to gauge the likelihood that we will in fact see a move sooner. Overnight index swaps measured by Credit Suisse price in no chance of a rate hike on Thursday – not a surprise. At the same time, there is a total of 82.8 basis points of firming priced in over the coming year. With the central bank already announcing it was culling its unlimited fund auctions, we already have the first steps towards hikes. This is a policy body that won’t be able to telegraph its intentions to hike with a preceding trimming of abnormal monetary stimulus (like the UK cutting its bond fund); but they will try to be as transparent as possible. And, that is why we will have to absorb everything said after this week’s rate decision.

The US Dollar finished the week higher against the Euro and other key counterparts, but a sharply disappointing Nonfarm Payrolls report nearly derailed the nascent Greenback recovery through Friday’s close. The trade-weighted US Dollar Index hit fresh monthly highs near 77.50 just ahead of the release. Immediate declines in the US S&P 500 initially sent the dollar higher, but markets clearly expressed their displeasure with the worse-than-expected payrolls release and sold USD through in subsequent trading. Sudden USD losses complicate our otherwise bullish near-term Dollar forecast, but we continue to forecast further Greenback recovery through near-term trade.

Comparatively limited event risk in the days ahead has left volatility expectations lower, but flare-ups in financial market tensions could nonetheless force major moves across USD currency pairs. Earlier in the week we argued that the US Dollar set an important bottom against the Euro on fairly clear sentiment extremes. US CFTC Commitment of Traders data shows that Non-Commercial traders—a group mostly comprised of hedge funds and other large speculators—remained the most net-long the Euro/US Dollar since it traded near 1.6000 in early 2008. Though sentiment can and does remain extreme for extended periods of time, early signs of EURUSD reversal support our calls for a broader US Dollar reversal. Strong correlations between the US Dollar and key risky asset classes nonetheless leave the currency at the throes of the recent upheaval in the S&P 500. It will subsequently be critical to watch for any signs that the recent equity market tumble is the start of a larger decline.

US Dollar traders should almost certainly keep an eye out for abrupt shifts in risk sentiment, but a relatively empty US economic calendar leaves limited scope for major day-to-day shifts. The notable exception is Monday’s US ISM Non-Manufacturing report, which will shed further light on the state of the domestic services industry. According to 2008 estimates, the Services industry accounts for nearly 80 percent of US GDP. Suffice it to say, any noteworthy surprises in the highly-anticipated report could force major moves in the US Dollar and broader financial markets. Indeed, the ISM Non-Manufacturing survey tends to be one of the most market-moving events on release. Outside of the ISM report, forex traders should keep a look out for a number of important global central bank interest rate decisions. Uncertainty surrounding Australian, British, and European central bank announcements may make for an interesting run of days across key forex pairs. It is near-impossible to predict how markets to react to any of these important announcements, and as such traders should be sure to control risk on open US Dollar positions. We have seen early signs of a sustained US Dollar reversal. Yet very recent price action has shown markets were not yet willing to push the Greenback materially higher versus key counterparts. The coming week may prove especially important to overall trends in major US Dollar pairs. – DR For more timely FX market analysis, visit our newly-launched Forex Stream Service.

Mumbai: State Bank of India (SBI) has trimmed its deposit rates by 25 basis points (bps) across all maturities and has withdrawn the special 1,000-day deposit scheme with effect from next Monday.Now, the bank is likely to offer 6.75 percent on deposits for 2-3 years, which includes the 1,000-day tenure, against seven percent earlier. The reduction in rates brings SBI's rates in line with what is offered by some large public sector banks. This move also appears to be counter cyclical, considering that surplus liquidity is slowly drying up and the central bank has been repeatedly warning about the need to withdraw monetary accommodation.

In his interview to the Economic Times, SBI Chief Financial Officer SS Ranjan said, "The move to cut deposit rates would not impact deposit mobilisation drive. The reduction is marginal. We don't think customers will move out due to this. We expect second quarter margins to improve over the first quarter. While third quarter margins will be even better."However, the rate cut has to be seen in the context of SBI's net interest margin, which stood at 2.3 percent for the quarter ended June 2009, down 63 basis points over March 2009. Since June, the bank has also announced multiple reduction in interest rates on home, auto and SME loans.

It lowered deposit rates by 225 basis points from the beginning of this calendar year. It lowered rates from nine percent in January 2009 to 6.75 percent now. In the same period, the bank lowered its prime lending rate once from 12.25 percent to 11.75 percent. The bank has reduced interest rates on several retail products like home loans, auto loans and education loans to 8-10 percent.

Bangalore: After the talk between Bharti Airtel and MTN was called off, the stock of company slipped 8.05 percent or Rs.35.05 and ended the trading as one of the top losers on BSE (Bombay Stock Exchange). The stock of Bharti opened on day's high value of Rs.439, but investors lost hope in the later part of trading, and the price of a share came down to Rs.400.30 at the time of closing. Overall, 5,981,427 shares were traded throughout the day with a current P/E ratio at 18.12. The stock touched 52-week high of Rs.495 and low of Rs.242.

Bharti Airtel is a provider of telecommunication services with presence in all the 22 licensed jurisdictions in India and in Sri Lanka. As of March 31, 2009, it served an aggregate of 96.6 million customers. It operates through five segments. Mobile services segment offers mobile services using global system for mobile communication technology. Telemedia services segment provides broadband and telephone services (fixed line) in 15 circles spanning over 95 cities with focus on media and entertainment solutions, such as direct-to-home and internet protocol television.

Enterprise services carriers segment provides a portfolio of services to enterprise and carrier customers. Other telecom companies had also bad day in the office. Reliance Communication and Idea Cellular ended the trading in red zone with the loss of 5.60 and 4.34 percent respectively. Out of 35 stock analysts, currently following Bharti Airtel, consensus recommendation is outperform, while 15 have recommended to buy and nine asked to hold the stock. With 8,026,116 units of share, 'ICICI Pru Infrastructure Fund - Retail Plan' holds the highest number of shares in Bharti Airtel.

Bangalore: In the week ended October 02, 2009, 'UTI Growth Sector Fund - Pharma and Healthcare' topped the list of mutual fund schemes. The value of UTI scheme went up by 6.30 percent with the net asset value (NAV) of Rs.26.46. Lalit Nambiar is the Fund Manager of this open ended scheme, which had a market size of 55.32 as on August 31, 2009. Some of the key holdings of the fund are Sun Pharmaceuticals, Divis Laboratories, Glaxo Smithkline Pharmaceuticals, Cipla, Lupin and Dr Reddy's Laboratories.

The objective of the scheme to invest in companies engaged in the research, manufacture or marketing of OTC products, bulk drugs and formulations. According to mutualfundsindia.com, other funds which followed UTI Growth Sector Fund - Pharma and Healthcare in top list for the last week are Franklin Pharma Fund, which gained by 6.17 percent, Religare Fixed Maturity Plan - 375 Days - Series XVII by 7.34 percent and SBI Magnum Sector Umbrella - Pharma Fund by 4.60 percent.

Contrary to expectations that the revival in the equity market would have boosted the assets managed by mutual fund houses, nearly 58 percent of the 36 fund houses that have disclosed their average assets under management (AAUM) figures for September 2009, have seen a drop in assets compared with the previous month. According to the data released by the Association of the Mutual Fund Industry (Amfi), the total industry AAUM for September 2009 stands at Rs.7,42,919 crore against Rs.7,49,915 crore as on August 2009, registering a decline of about one percent since the previous month. This is the second instance of a month-on-month decline in mutual fund assets in 2009 so far, the earlier one being in March.

Bangalore: 3i Infotech ended the trading as one of the top gainers with a gain of Rs.10.55 (11.96 percent). After opening at slightly higher value to its previous close, the stock of 3i Infotech gained the momentum in afternoon trade and touched the 52-week high of Rs.102.90. Overall, 15,634,517 shares were traded throughout the day with a current P/E ratio at 97.75.

3i Infotech is a technology company with a range of solutions. Its portfolio of offerings comprises software products, technology services and transaction services. A majority of these solutions are for the banking, financial services and insurance industry segments, and also for the government sector. Yesterday, Private sector lender ICICI Bank sold 4.41 percent stake in software services provider 3i Infotech for Rs.46.17 crore in open market transactions at both the major bourses in the country.

ICICI Bank, a promoter group firm of 3i Infotech, sold 28.42 lakh equity shares of the IT firm at a price of Rs.79.79 per piece aggregating to Rs.22.67 crore, according to bulk deal data available on the Bombay Stock Exchange. In the quarter ended June 30, 2009, the company reported net sales of Rs.59776 lakh against Rs.46847 lakh for the quarter ended June 30, 2008.

Other technology companies have also performed well and ended the trading in green zone. InfoTech Enterprises went up by 1.85 percent, Blue Star Infotech surged 0.32 percent, Glodyne Technoserve up 0.61 percent and Tech Mahindra soared 0.92 percent. Out of eight stock analysts currently following 3i Infotech, the consensus recommendation is that the stock will underperform, with three analysts suggesting to buy the stock. With 1,260,898 units of shares, JM Contra Fund holds the highest number of shares in 3i Infotech.