he key benchmark indices showed a divergent trend, with the Sensex gaining 0.59% and the broader-based S&P CNX Nifty shedding 0.28%.
In a choppy trade, the market rebounded from intraday low in late trade. Index heavyweights Reliance Industries (RIL), and Infosys
were responsible for volatility on the bourses in late trade. A fall in these two stocks in mid-afternoon trade pulled the market
sharply lower at about 14:25 IST. Both these stocks bounced back in late trading, aiding recovery on the bourses.

The market was caught between concerns about Q3 results and coordinated fiscal and monetary measures by policymakers to boost
sagging growth. Analysts widely expect dismal quarterly earnings due to a sharp fall in demand, slowing economic growth and
recession in major economies such as the United States, eurozone and Japan. The earnings parade will be kicked off by private sector
lender Axis Bank on Friday, 9 January 2009, followed by ITbellwether Infosys Technologies on 13 January 2009.

Stocks were volatile. After a subdued start, the market moved into green in early volatile trade as Asian stocks rose. The market
extended gains in morning trade, before sliding into the red again. The market later oscillated between positive and negative zones,
moving in a narrow range. The market firmed up in early afternoon trade. The market extended gains in afternoon trade. It pared gains
later. The market slumped in mid-afternoon trade, before bouncing back.

The Reserve Bank of India (RBI) on Friday, 5 January 2009, cut the repo rate and the reverse repo rate by 100 basis points each, with
immediate effect. Repo rate is the rate at which RBI lends to commercial banks and reverse repo rate is the rate at which RBI
accepts deposits from banks. After the latest cuts, the repo rate is now at 5.5% and the reverse repo is now at 4%, the lowest ever.

The RBI also announced a cut in cash reserve ratio, the proportion of deposits banks must keep with the central bank, by 50 basis
points to 5% with effect from 17 January 2009. Lower interest rates may revive the domestic economy which has been slowing faster than
expected due to high interest rates and the global financial crisis.

Complementing monetary easing by the RBI, the government enhanced the spending power of states with specific measures to boost credit
availability in the second fiscal stimulus package. It offered additional sops to exporters and the small-scale sector, besides
raising the level of protection for cement and steel sectors a tad. It has also incentivised purchase of commercial vehicles. Both the
RBI and the government measures were announced after trading hours on Friday, 5 January 2009.

European shares rose on Tuesday on hopes fiscal stimulus plans by US President-elect Democrat Barack Obama and the German government
will help a recovery in equities. Key benchmark indices in France, Germany and UK were up by between 1.07% to 1.57%. Germany’s second
fiscal stimulus could reach 50 billion euros, nearly double the amount expected just a week ago, reports suggest.

Asia-Pacific stocks extended recent gains on Tuesday, 6 January 2009, on hopes big government stimulus spending packages around the
world will help revive growth. Key benchmark indices in China,Japan, Australia, and Taiwan were up by between 0.42% to 3%. But
key benchmark indices in Hong Kong and South Korea fell by between 0.35% to 0.58%.

Coordinated fiscal and monetary measures by policymakers to boost
sagging growth and firm global markets boosted the domestic
bourses, with the barometer index, the BSE 30-share Sensex,
breaching the psychological 10,000 mark. The Sensex vaulted 317.38
points, or 3.19%. 

But the market was volatile. After opening on a firm note, the
market pared gains at the onset of the trading session. It bounced
back again shortly and witnessed a bout of volatility later. After
a 2.34% rally in afternoon trade triggered by a firm opening of the
European markets, the market pared gains in mid-afternoon trade.
The market spurted in the last half-an-hour of trade. 

Though the Sensex had breached the 10,000 market in intraday trade
on Friday, 2 January 2009, it had ended below that level. 

Bank stocks rose on speculation falling bond yields and lower rates
would accelerate loan growth and profitability. Metal stocks rose
after the government withdrew exemptions from countervailing duty
on TMT bars, used in construction activity, and withdrew exemption
from basic customs duty on zinc and ferro alloys, which was
provided earlier to contain inflation. 

Shares of commercial vehicle makes rose as the government's second
stimulus announced after trading hours on Friday, 2 January 2009,
comprised measures to boost sagging truck and bus sales in India.
Infrastructure stocks rose after the government unveiled steps to
make availability of funds to infrastructure projects. 

The Reserve Bank of India (RBI) after trading hours on Friday, 2
January 2009, cut the repo rate and the reverse repo rate by 100
basis points each, with immediate effect. Repo rate is the rate at
which RBI lends to commercial banks and reverse repo rate is the
rate at which RBI accepts deposits from banks. After the latest
cuts, the repo rate is now at 5.5% and the reverse repo is now at
4%, the lowest ever. 

The RBI also announced a cut in cash reserve ratio, the proportion
of deposits banks must keep with the central bank, by 50 basis
points to 5% with effect from 17 January 2009. Lower interest rates
may revive the domestic economy which has been slowing faster than
expected due to high interest rates and the global financial
crisis. 

Complementing monetary easing by the RBI, the government enhanced
the spending power of states with specific measures to boost credit
availability in the second fiscal stimulus package. It offered
additional sops to exporters and the small-scale sector, besides
raising the level of protection for cement and steel sectors a tad.
It has also incentivised purchase of commercial vehicles. 

Credit availability has been hiked in a variety of ways, the
interest ceiling on external commercial borrowings has been
removed; the cap on foreign institutional investments in the
domestic corporate debt market has been jacked up two-and-a-half
times from $6 billion to $15 billion; a special purpose vehicle is
being created to lend to non-banking finance companies to the tune
of Rs 25,000 crore; Indian Infrastructure Finance Company is being
permitted to raise another Rs 30,000 crore by means of tax-free
bonds, and states are allowed to borrow an additional Rs 30,000
crore from the market. 

In addition, public sector banks would be given additional capital
to the extent of Rs 20,000 crore over the next two years, so they
can lend roughly 10 times as much additionally. 

The latest measures, which come in less than a month after the
first package was unveiled on 7 December 2008 are aimed at
benefiting housing and non-banking finance firms that lend to
infrastructure and finance commercial vehicles. 

Firm global markets supported the domestic bourses. European shares
gained on Monday, with higher crude prices boosting energy
heavyweights and US President-elect Barack Obama's plans for tax
cuts fuelling optimism. Key benchmark indices in Germany, France
and UK were up by between 0.11% to 0.52%. 

Asian stocks surged on hopes big government stimulus spending
packages around the world will help revive growth. Key benchmark
indices in Hong Kong, Japan, South Korea, Singapore, China and
Taiwan were up by between 1.4% to 5.2%. 

US stocks started the new year with a big jump as investors looked
beyond yet another piece of grim economic data on hopes that a
recovery is on the horizon after a disastrous 2008. The Dow Jones
industrial average rose 258.30, or 2.94% to 9,034.69 on 2 January
2009, the first trading day of the new calendar year. The market
shrugged off a report by the Institute for Supply Management that
said US factory activity fell to a 28-year low in December 2008,
showing a more severe contraction than economists had expected. 

Many market players are looking for a large US spending package and
tax cuts to help support the world's largest economy. Obama will
meet later on Monday, 2 January 2009, with senior Congressional
leaders to discuss the plan. As per reports, about 40% of Obama's
economic package worth as much as $775 billion would be in the form
of tax breaks for businesses and the middle class. 

The BSE 30-share Sensex rose 317.38 points, or 3.19%, to 10,275.60.
The Sensex rose 347.95 points at the day's high of 10,306.17 in
late trade. The Sensex rose 110.89 points at the day's low of
10,069.11 in early trade. 

The S&P CNX Nifty rose 74.70 points, or 2.45%, to 3,121.45. 

The BSE Sensex clocked a turnover of Rs 4,171 crore, lower than Rs
4,279.80 on Friday, 2 January 2009. 

Nifty January 2009 futures were at 3133, at a premium of 11.55
points as compared to the spot closing of 3121.45. Turnover in
NSE's futures & options (F&O) segment rose to Rs 34,219.31 crore,
from Rs 31,631.68 crore on Friday, 2 January 2009. 

The BSE Mid-Cap index was up 1.78%, while BSE Small-Cap index was
up 1.21%. Both the indices underperformed the Sensex. 

The BSE Metal index (up 5.54%), the BSE Oil & Gas index (up 5.1%),
the BSE Bankex (up 3.53%) outperformed the Sensex. 

The BSE FMCG index (down 0.53%), the BSE Realty index (down 0.33%),
the BSE HealthCare index (up 0.05%), the BSE Consumer Durables
index (up 1.21%), the BSE Auto index (up 1.3%), the BSE Teck index
(up 1.46%), the BSE Power index (up 1.75%), the BSE PSU index (up
1.78%), the BSE IT index (up 2.4%), the BSE Capital Goods index (up
2.83%), underperformed the Sensex. 

The BSE Sensex has risen 946.68 points or 10.14% from a recent low
of 9,328.92 on 26 December 2008. 

The market breadth, indicating the overall health of the market,
was strong. On BSE, 1,680 stocks advanced and 859 stocks fell. A
total of 74 stocks remained unchanged. 

Jaiprakash Associates, Tata Power Company, Larsen & Toubro and
Reliance Infrastructure rose by between 3.87% to 7.76%. 

India's largest private sector company by market capitalization and
oil refiner Reliance Industries (RIL) jumped 6.38% to Rs 1,365.75
as global crude oil prices climbed amid rising tensions in the
Middle East. Higher oil prices would boost RIL's refining margins.
Late last month, its unit Reliance Petroleum (RPL) started
processing crude at its 5,80,000 barrels per day refinery. From the
recent low of Rs 1,230.25 on 31 December 2008 the stock jumped
11.01%. 

India's largest state-run oil exploration firm by revenues ONGC
jumped 6.43% on rally in crude oil prices. But the oil price surge
weighed on PSU OMCs. BPCL, HPCL and Indian Oil Corporation fell by
between 0.58% to 1.59%. Oil prices rose above $47 a barrel Monday
in Asia as a ground offensive by Israeli troops against Hamas
militants in Gaza heightened tensions in the oil-rich Middle
East.Light, sweet crude for February delivery rose $1.36 to $47.70
a barrel, after earlier jumping toState-run oil marketing firms
suffer losses on domestic sale of LPG and kerosene at a controlled
price. They are making profit on sale of petrol and diesel thanks
to a sharp fall in crude prices over the past few months. 

India's largest drug maker by sales Ranbaxy Laboratories fell 0.18%
after Japan's third-largest drugmaker, Daiichi Sankyo Co, said on
Monday it would book an appraisal loss of 359.5 billion yen ($3.9
billion) on a parent-company basis on its stake in Ranbaxy
Laboratories. Daiichi Sankyo paid nearly 500 billion yen for a
63.9% stake it acquired in the major generic drug maker last year. 

India's largest telecom services provider by sales Bharti Airtel
slipped 2.76% on concerns the company may reduce tariffs to retain
costumers following an aggressive nationwide rollover of the
GSM-based cellular services by Reliance Communication (RCom),
India's second India's second largest telecom services provider by
sales. RCom was up 5.35%. 

Steel stocks surged in late trade after the government withdrew
exemptions from countervailing duty on TMT bars, used in
construction activity. Bhushan Steel, JSW Steel, Tata Steel, Steel
Authority of India, Jindal Steel rose by between 1.61% to 6.97%. 

India's largest zinc maker by sales Hindustan Zinc rose 8.24% after
the government withdrew exemption from basic customs duty on zinc. 

Other metal stocks, Hindalco Industries, Sterlite Industries and
National Aluminum Company rose by between 1.62% to 9.82%. 

Banking shares advanced on speculation falling bond yields and
lower rates would accelerate loan growth and profitability. India's
largest private sector bank by net profit ICICI Bank rose 6.04%
after its American depository receipt (ADR) rose 7.06% on Friday, 2
January 2009. The bank had recently cut its main lending rates by
50 basis points. 

India's second largest private sector bank by net profit HDFC Bank
rose 2.66% as its ADR gained 7.5% on Friday. India's biggest bank
in terms of total assets and branch network, State Bank of India,
gained 2.35%. 

Allahabad Bank rose 2.47% after the bank cut benchmark prime
lending rate by 75 basis points from 13.25% to 12.50%. Union Bank
of India rose 2.7% after bank on 3 January 2009 announced a
reduction in deposit rates ranging between 25 and 75 basis points
across various maturities. This will pave the way for the bank to
lower lending rates also. 

Bank of Baroda rose 2.32% after bank on 3 January 2009 announced a
reduction in deposit rates ranging between 25 and 75 basis points
across various maturities. This will pave the way for the bank to
lower lending rates also. 

India's largest dedicated housign finance firm by operating income
HDFC rose 5.4%. 

IFCI galloped 13.15% after a block deal of 6.06 lakh shares was
executed on NSE at Rs 25.50 a share. 

Future Capital Holdings spurted 10.68% after the company acquired
non-banking financial firm Black Diamond Finance. 

IT pivotals gained on hopes a large government stimulus package may
help revive the US economy. India's second largest IT exporter by
sales Infosys gained 3.85% as its ADR rose 2.36% on Friday. India's
third largest IT exporter by sales Wipro rose 1.13% as its ADR rose
3.2% on Friday. India's largest IT exporter by sales Tata
Consultancy Services rose 3.56%. IT firms derive a lion's share of
revenue from export to the US. 

But India's fourth largest IT exporter by sales Satyam Computer
Services fell 6% on reports the company's management and some of
its institutional investors are reportedly exploring a merger with
another software firm. Meanwhile, the stake owned in Satyam
Computer Services by SRSR Holdings, which was floated by founders,
has fallen to 5.13% from 8.27% in November 2008, the company said
on Friday (2 January 2009). 

GTL soared 5.37% on share buyback plan. 

Commercial vehicle makers rose as the government's second stimulus
announced after trading hours on Friday, 2 January 2009, comprised
measures to boost sagging truck and bus sales in India. India's
largest commercial vehicle maker by sales Tata Motors rose 2.05%
while India's second largest commercial vehicle maker by sales
Ashok Leyland rose 0.93%. 

Other Auto stocks, Mahindra & Mahindra and Maruti Suzuki India rose
by between 2.35% to 3.15% on hopes rate cuts would spur demand for
vehicles which is mainly driven by finance. 

Infrastructure stocks rose on government's effort to prop up the
sector. Era Infra Engineering, Valecha Engineering, Hindustan
Construction Company and Gammon India rose by between 0.76% to
7.54%. 

Ahluwalia Contracts hit 5% upper circuit after it received orders
worth Rs 394 crore, which includes construction of depots at Delhi
and Mumbai and the building work for Tata Medical Centre in
Kolkata. 

India Infrastructure Finance Company (IIFCL), which has already
been authorized to raise Rs 10,000 crore through tax free bonds by
31 March 2009 for refinancing bank lending of longer maturity to
eligible infrastructure bid based public-private partnership
projects, will be accessing the market next week for raising the
first tranche of the amount. This will enable the funding of mainly
highways and port projects on hand of about Rs 25000 crore. 

To fund additional projects of about Rs 75,000 crore at competitive
rates over the next 18 months, IIFCL will be allowed access in
tranches an additional Rs.30,000 crores by way of tax free bonds
once funds raised in the current year are effectively utilized. 

Under the second stimulus package for the economy unveiled by the
government Friday, 2 January 2009, the centre will provide
assistance to states for purchase of buses for their urban
transport systems under the Jawaharlal Nehru Urban Renewable
Mission till 30 June 2009. 

Further, public sector banks will offer a special line of credit to
non-banking finance companies (NBFCs) for truck and bus financing
which will reduce the credit crush being faced by NBFCs. This may
boost sales of trucks and buses. Additionally, the government has
also announced accelerated depreciation of 50% for commercial
vehicles bought from 1 January 2009 to 31 March 2009. 

Cement stocks rose after the government reinstated the
countervailing duty on structural cement which will help protect
the domestic industry from cheaper imports. ACC, Ambuja Cements
rose by between 1.52% to 2.55%. 

Grasim Industries rose 1.65% while UltraTech Cement fell 1.45%
after Aditya Birla Group said on Friday (2 January 2009) cement
dispatches rose 13.4% to 2.98 million tones in December 2008 over
December 2007. The group's cement business includes flagship Grasim
Industries and UltraTech Cement, with combined production capacity
of 35 million tonnes a year. 

Realty shares were mixed amid hopes steep rate cuts by the RBI and
sops provided by the government in the second stimulus package may
help boost housing demand. Indiabulls Real Estate and Unitech rose
by between 1.15% to 2.59%. DLF and Housing Development &
Infrastructure fell by between 0.49% to 1.6%. While 

In an effort to boost the cash-starved realty sector, the
government on 2 January 2009 allowed the developers of integrated
townships to borrow funds from overseas and also asked states to
release land for low- and middle-income housing schemes. Earlier,
as part of the first stimulus package announced last month, the
public sector banks had lowered rates on home loans up to Rs 20
lakh 

Unitech clocked the highest volume of 3.18 crore shares on BSE.
IFCI (2.5 crore shares), Reliance Natural Resources (1.87 crore
shares), Suzlon Energy (1.3 crore shares) and Satyam Computer
Services (1.12 crore shares) were the other volume toppers in that
order. 

Reliance Industries clocked the highest turnover of Rs 292.58 crore
on BSE. Reliance Capital (Rs 193.16 crore), Satyam Computer
Services (Rs 189.14 crore), Unitech (Rs 152.12 crore) and DLF (Rs
146.74 crore) were the other turnover toppers in that order.

This time of year is to pause and realizes the events happen in last year and not repeat mistaske done in last year

Al-most all stocks market are plunges more then 40 % from years low, un employment has reached the alarming state. So while you may have already made your New Year resolution, here are some must-haves on the list - at least finance wise.

Plan your finance

Start from day one and draw out-line for your yearly budget. don’t wait till tax rebates or government present budget

Estimate your income from various sources – your salaries, rental income, dividends, interest and so on. Plot the estimated expenses. This will help you make prudent investments. For example, if there are any major expenses in the family, for example, child’s higher education, marriage, you will need to liquidate some of your equity holdings and park funds in floating rate fund till event takes place.

Rebalance my portfolio

Sensx shows new highs and lows in 2008. Market has seen huge correction. So calcualte your profilt and losses. If you feel that you still have moent to invest then invest only for long term. Year 2009 will not give shot-term gains.

Any ways Its good time to buy stocks for longer term

I will invest in equities systematically

There are diffrent ways to approach this financial crisis in new year. Long term trader can invest in good equities for 3-5 years time frame, with growth of 40-60%. Its again important to spread your investment in full year.don’t just invest at one go. People can also look the mutual funds as an safer option to invest, Mutual funds will have good returns in coming year

Review loans and Insurance

If you’ve piled up too much loan on depreciable assets like your car, your consumer durables or simply run up a huge credit card bill, its time to clean up your act. Interest costs on these loans are high and only a healthy equity market can earn you more than the interest you pay.

There’s no better time to review your insurance needs. If there’s been an addition to your family or if you have taken more loans, you need to protect your family. Look at how much insurance cover you have and how much more you need. Fill in the gaps.

Don’t wait till last moment to make tax saving investments

Given that you have time till March to make those tax saving investments. But there’s no reason to wait that long. Start making investments in your provident funds, post office savings, ELSS, insurance and so on. For the year ending March 2009, make your investments now while for the year after, start setting aside funds for investing when the year starts in April.

Happy Investing in New Year