Tuesday, January 27, 2009

Benchmarks pulled back sharply to close higher as investors bought heavily in frontline

Mirroring its global counterparts, the Indian markets began the day on a strong note. Thereafter, the indices gained momentum as persistent buying activity led the indices to end the day well above the dotted line. However, the RBI’s announcement of keeping the key policy rates unchanged did wobble the indices during the noon trading session. The Sensex closed higher by around 330 points, while the Nifty closed higher by 90 points. Stocks from the mid-cap and small-cap indices also ended on a positive note. While buying activity was witnessed in stocks across sectors, stocks from the metal, power and IT sectors led the pack of gainers. Rupee closed at 48.7 against the US dollar. The Asian markets ended on a mixed note today. The European indices are currently trading mixed as well.

United Spirits (USL) in talks with Diageo for stake sale: Vijay Mallya Vijay Mallya of United Spirits confirmed news on the Diageo stake sale deal and said the company was in very advanced stages of negotiation with Diageo. He added that he would be meeting the Diageo management on Wednesday in US. Mallya said that treasury shares were available to strategic investor and that many strategic investors had shown interest when stock was trading at Rs 1800. �USL�s value in the stock market does not reflect the strength of the company but investors understand and realise the intrinsic value of USL. The market share of USL has not come down. The company has a robust growth at 18%. Mallya informed CNBC-TV18 that he plans to deleverage USL completely within six months.


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