RAILWAY BUDGET 2009-10

Union Railway Minister Mamata Banerjee today presented the Railway Budget for
2009-2010. The budget focused clearly on upgrading the existing infrastructure and
providing better services to passengers.
Highlights of Railway Budget:
The major highlights of Railway budget is as follows:

Passenger Fares and freight rates kept unchanged
To set up 1000 MW power plant in alliance with NTPC

To acquire 18, 000 wagons in FY10 against 11,000 FY09. Wagon
manufacturers such as BEML, Titagarh wagons, Texmaco will be gained
from wagon orders.

To develop 50 stations as world class stations with international facility. To be
developed in Public private partnership (PPP) mode.

To develop air-conditioned double decker coaches.

To introduce non-stop train services in select cities.

To set up Cargo centers for perishable commodities.

To set up Expert committee for optic fiber cable networks.

The Railways will also set up a coach unit, with a capacity to produce 500
coaches per year via ppp mode.

Set up panel on financing unviable railway projects.

Plans to expand Kolkata metro.

Non-stop New Trains - fast services from point to point to be introduced.

Tatkal charges to be reduced from Rs 100 to Rs 50, to be percentage of fare.

Tatkal Scheme to be reduced from 5 days to 2days.

Monthly Ticket Of Rs. 25/- For Unorganized Sector/Poor Under ‘Izzat’
Scheme.

Seven nursing colleges to be set up on railway land in places including Delhi,
Kolkata and Mumbai.

Freight traffic target at 882 mt for FY10 vs. at 850mt in FY09.

Plan Outlay Of Rs.40,745 Cr proposed For 2009-2010. Out of this, Rs.2, 921
cr will be spent on new lines, Rs.1,750 cr on gauge conversion and Rs.1,102
cr on passenger amenities.

Government to provide additional budgetary support of Rs 5000 crore to
railways in 2009/10.
Overall the budget was positive for markets. Development of new stations,
improvement of infrastructure facilities and purchase of 18000 new Wagons in FY10
will benefit wagon manufacturers and infrastructure companies.

ECONOMIC SURVEY

The Economic survey presented by the Finance Ministry in parliament today focuses
on containing the fiscal deficit to 3% of GDP and reviving the GDP growth to 7-7.5%
from 6.7% in 2008-09. Some of the policy measures suggested in the survey are as
follows:
Highlights:

Revitalize the disinvestment program and plan to generate at least Rs. 25,000
crore per year.

Selling 5-10% of equity in profitable non-navratnas.

List unlisted public sector undertakings by offloading at least 10% of equity to
the public.

Auction loss-making public service undertakings.

Raise FDI in insurance to 49%

Allow FDI in multi-brand retail

Raise FDI limit in defence industries to 49% from 26%.

Allow 100% FDI in health, weather insurance

Rationalise Dividend Distribution Tax

Remove Commodity Transaction Tax, Securities Transaction Tax, and Fringe
Benefit Tax

Phase out tax surcharge, cess, and transaction tax

Introduce new income tax code

Decontrol sugar and fertiliser industry.

Decontrol petrol and diesel prices.

Cut oil, fertiliser, food subsidy leakages

Auction spectrum and make it freely tradeable.

Separate telecom license from spectrum allocation.

Review customs duty exemptions and move to a uniform duty structure

Drug price control should be limited to essential drugs in which there are less
than five producers. All others should be decontrolled.

Limit LPG subsidies to 6-8 cylinders per year per household.
The economic survey focuses on measures to revive growth and to contain mounting
fiscal deficit. Going forward how the government is going to implement them in the
upcoming budget will determine the direction of the market.

Research . Call for the days . 2/7/2009

RESEARCH -Nifty (FUT) R-4385/4435/4565 S-4314/4260/4185 ; Sensex
(CASH) R-14795/14945/15320 S-14575/14425/14200 ; MARKET OUTLOOK:
POSITIVE BIAS

7/2 RESEARCH: MARKET OUTLOOK: OVERALL MARKET TREND IS LIKELY TO REMAIN UPTREND AND IT CAN BE EXPECTED TO TEST 4692 LEVELS IN SHORT TERM. AS FOR INTRADAY'S TRADE, MARKET MAY OPEN WITH AN UPSIDE GAP AND IT CAN BE EXPECTED TO TRADE HIGHER LEVELS. THE NIFTY HAS RESISTANCE AT 4362 AND 4426. IF IT BREAKS 4440 LEVELS, IT COULD TEST AT 4520 LEVELS. ON THE DOWNSIDE, THE SUPPORT FOR NIFTY IS SEEN AT 4303 AND 4250 LEVELS.
11:13 AM 7/2 RESEARCH- INTRADAY CALL (CASH) : ONGC TGT ACHIEVED
12:33 PM 7/2 RESEARCH: EUROPEAN MARKET UPDATE : FTSE(-0.5%), DAX (-0.7%), CAC (-0.6%)
12:51 PM 7/2 RESEARCH: INTRADAY CALL(CASH): SHORT SELL IVRCLINFRA BELOW 345 TGT 333 SL 350
2:30 PM 7/2 RESEARCH- INTRADAY CALL (CASH) : BUY HDIL ABOVE 234.40 TGT 241 SL 230
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Money Morning 01-07-2009

The consumer confidence figures, that fell short of expectations
(consumer confidence index fell to 49.3 in June from a revised 54.8 in
May), weighed on Wall Street, offsetting Monday's gains. While Dow
Jones fell by 0.97%. NASDAQ dropped 0.49%. Asian bourses are
trading mixed with Nikkei up by 0.09%, Hang Seng down by 0.81% and
Singapore Nifty up by 2 points.

With mixed global cues the domestic markets could trade range bound.
Technically spot nifty may take resistance at 4330/4390/4490 levels and
support at 4230/4170/4010 levels.
POST-MARKET ANALYSIS:

After having opened positive - following global cues, the domestic
bourses pared all its gains and fell into the negative terrain on profit
booking amid volatility. The key benchmark indices Sensex and Nifty
fell 1.97% and 2.27% respectively.

FIIs’ were net buyers in equity and net sellers in derivatives.

ADRs: TATA Motors (-9.36%), Sterlite Industries (-5.54%), Satyam
Computers (-4.60%) & ICICI Bank (-4.22%)

NEWS TO USE:
Positive


WIPRO AND INFOSYS are pursuing contracts worth Rs 2,000 crore
from the country’s defense forces.

INDIAN OIL CORP (IOC) is planning an investment of over Rs 60,000
crore in raising its refining capacity to 80 million tons per annum by
2011-12 from 60.2 million tons at present.

LUPIN has acquired the global rights for an intra-nasal steroid (INS)
product, AllerNaze from Collegium Pharmaceuticals, a mid-size
innovator company in the US.

HCL TECHNOLOGIES LTD announced that it would provide IT
application and infrastructure operations and management for Dr
Pepper Snapple Group, a producer of flavoured beverages.

NEUTRAL

STATE BANK OF INDIA has launched two special loan schemes that assure low interest rates in the
first three years.

TATA CONSULTANCY SERVICES (TCS) will invest Rs 1,300 crore for its capital expenditure in the
current financial year.

State-run oil firms hiked jet fuel prices by 6%, following an increase in crude oil prices in international
markets.

TATA CONSULTANCY SERVICES (TCS) expects muted growth in the next few quarters as the
economic slowdown continues to crimp the outsourcing industry.

Oil prices jumped more than 2 percent to an eight-month high above $73 a barrel as a sudden spike in
Brent buying.

The government is contemplating penal action against RELIANCE INDUSTRIES (RIL) for committing
28 million standard cubic meters of gas per day (mmscmd) from its KG basin block to Reliance Natural
Resources (RNRL) at a price of $2.34 per million British thermal units (mmBtu)) as part of the Ambani
family settlement without the permission of the government.

LIC HOUSING FINANCE has cut lending rates by 50 basis points for its existing customers with effect
from July 1.

TATA POWER COMPANY has signed contracts with the Chennai-based OPG Group relating to its
power plants.

After a release spree in the previous three months, the Centre has suddenly turned cautious on the
sugar front. Only 16.60 lakh tonnes (lt) of sugar will be available for public consumption during July.

Call of the day 1 july 2009

RESEARCH -Nifty (FUT) R-4395/4505/4685 S-4220/4150/3970 ; Sensex
(CASH) R-14795/15095/15581 S-14305/14120/13630 ; MARKET OUTLOOK:
RANGE BOUND 9.10(A)-------------------------------------------------

RESEARCH -Nifty (FUT) R-4395/4505/4685 S-4220/4150/3970 ; Sensex (CASH) R-14795/15095/15581 S-14305/14120/13630 ; MARKET OUTLOOK: RANGE BOUND (ASCIL)

9:40 AM 7/1 RESEARCH-Global Market (in %): DOW JONES (-0.97%), S&P 500 (-0.85%), NASDAQ (-0.49%), FTSE (-1.04%), DAX (-1.56%), NIKKEI (+0.83%), HANG SENG (-0.81%) & SGX NIFTY (+2.5 POINTS)

11:10 AM 7/1 RESEARCH- INTRADAY CALL (CASH) : SHORT SELL YESBANK BELOW 145 TGT 140 SL 147

1:36 PM 7/1 RESEARCH - INTRADAY CALL ( CASH ) : BUY BAJAJ HIND ABOVE 211 TGT 217 SL 207.50

2:11 PM 7/1 RESEARCH - INTRADAY CALL ( CASH ) : BUY DLF ABOVE 324 TGT 333 SL 319

Daily calls- 29-6-2009

RESEARCH -Nifty (FUT) R- 4435/4480/4620 S- 4295/4200/4065; Sensex
(CASH) R- 14905/15050/15455 S- 14500/14230/13825; MARKET OUTLOOK:
POSITIVE BIAS (09.39A)

6/29 RESEARCH:MONEY MORNING FUNDAMENTAL CALLOWER GRID TARGET ACHIEVED
11:03 AM 6/29 RESEARCH: INTRADAY CALL (CASH) : BUY PETRONET ABOVE 74.50 TGT 78 SL 73
12:34 PM 6/29 RESEARCH: EUROPEAN MARKET UPDATE : FTSE(-0.1%), DAX (-0.2%), CAC (-0.1)
1:49 PM 6/29 RESEARCH: INTRADAY CALL (FUTURES): NIFTY BROKEN OUR FIRST TARGET 4430.
2:48 PM 6/29 RESEARCH : VALUATION PLAY: BOOK PROFIT IN BANK OF BARODA

Research-Calls of the days

(6/26/2009 9:47:38 AM): RESEARCH: MARKET OUTLOOK: MARKET MAY OPEN FLAT NOTE AND IT CAN BE EXPECTED TO TRADE SIDEWAYS. THE NIFTY HAS RESISTANCE AT 4260 AND 4318. IF IT BREAKS 4337 LEVEL, IT COULD TEST AT 4375. FRESH BUYING WILL EMERGE ONLY ABOVE 4375 LEVELS. ON THE DOWNSIDE, THE SUPPORT WILL BE AT 4221 AND 4194. BELOW THIS LEVEL, IT MAY TEST AT 4143.