[R]6:00 PM Mumbai – Stocks in Mumbai gained. Consumer price index declined in March but above 8% on higher food prices. Congress party suggested that it can form the next government without the help of Communist party. Banks surged on the comments from the RBI governor.[/R]

The financial markets were volatile with the claims of victory by both coalitions in the parliamentary elections. Today, ruling coalition led by Congress suggested that can form a government without the help of communist party. Stocks in a choppy trading closed higher ahead of results tomorrow.

The Sensex index in India increased 300.51 or 2.53% closed to 12,173.42.

Consumer price index in March increased 8.03% from a year ago after rising at 9.63% in February. The wholesale price index for the 52 week period dropped to 0.48% increase, released yesterday. As the economy slows, the inflation has declined but food prices have been inflationary.

Trading Summary

BSE 200 index increased at 2.2% and BSE 100 index gained 2.1% in today’s session.

Of the stocks traded on the NSE, 568 increased, 631 declined and 50 were unchanged.

Daily turnover on the BSE increased to 5,113 crore rupees from 4,564 crore rupees on Thursday. On the NSE, daily turnover increased to 14,820 crore rupees from 13,594 crore rupees.

Aban Offshore led the list of most active stocks in BSE trading followed by gains in Cairn India, ICICI Bank, and DLF.

In the trading on NSE, Reliance Industries led the most active list followed by ICICI Bank, DLF, and Reliance Infrastructure and Reliance Capital.

Gainers & Losers

Aban Offshore soared 22% to 618.80 rupees as investors speculated that the company may renegotiate its $3.2 billion debt terms. The company has $600 million debt due before March 2010.

REI Agro surged 19% to 62.90 rupees on a speculation that the board in a meeting tomorrow may authorize the company to sell stake to investors.

Banks rallied for the third day of this week after consumer price inflation declined. Central Bank of India increased 8% to 52.65 rupees and Oriental Bank of Commerce added 7.7% to 143.45 rupees. ICICI Bank surged 7.2% to 574.20 rupees.

State Bank of India will lower deposit rate from May 18 by 0.5% and the stock gained 3.6% to 1,313.50 rupees.

Max India declined 0.5% to 142.10 rupees after gaining as much as 4.5% in the day. The healthcare and life insurance company board approved the issue of 1.03 crore equity shares at 143.26 rupees a share to International Finance Corporation based in Washington. The new shares will dilute current shareholders by 4.7%.

Earnings Review

Chambal Fertilisers and Chemicals Limited, engaged in manufacturing of synthetic and cotton yarn said full-year total income rose 75% to Rs.56702.245 million from Rs.32366.90 a year ago. Net profit for the year fell 5% to Rs.2255.881 million or Rs.5.42 per diluted share compared to net profit of Rs.2374.290 million or Rs.5.70 per share a year ago.

Chambal Fertilisers and Chemicals Limited, in the last one year traded as high as Rs. 96.40 in June 2008 and as low as Rs.29.50 in November 2008. Based on the yesterday’s closing price of Rs.48.05 the company has market cap of Rs.20.04 billion.

Asian Markets Review