Friday, November 13, 2009

BOR: Market Outlook: Indian markets may have flat to negative opening today on the back of weaker market performance on the global counter.

Market Outlook: Indian markets may have flat to negative opening today on the back of weaker market performance on the global counter. Nifty has supports at 4870-4900 and resistances are at 5000-5040. Overall the up trend is still intact but there is a selling pressure near the 5000 mark. Market are good on trading prospective with a range of 4791-5044 while on the clear fundamental things are not inline to take markets for new highs by the year end, any new high for market would be expected anywhere near march 2010.

Festive cheer pumps up industrial output: Industrial output grew by a surprisingly strong 9.1% in September from a year ago, reinforcing optimism that economic recovery is on track and imparting urgency to the debate over the timing of the withdrawal of stimulus measures that were put in place to counter the slowdown.

Global events to watch for today:

· International Trade

· Import and Export Prices

· Consumer Sentiment

· EIA Natural Gas Report

Global indices Update @ 9:

Dow Jones : 10197 (-93.79)

Nasdaq : 2149 (-17.88)

Nikkei 225 : 9752 (-52.36)

Hang seng : 22504 (+106.4)

SGX CNX Nifty : 4958 (-10)

INR / 1 USD : 46.50

On the global counter: Wall Street ends lower; Crude down 3%, dollar gains & Asia trading weak; Straits Times, Taiwan Weighted down. The US markets ended in the red after a weak holiday outlook from Wal-Mart and drop in energy prices offset fewer jobless claims. Volume was light and the breadth too was very weak. In economic data from the US, jobless claims fell for the second straight week. The latest initial jobless claims tally came in at a lower-than-expected 502,000, which is the lowest weekly total since January. Meanwhile, continuing claims came in at 5.63 million, which is the lowest level since March. Mortgage rates declined last week, with the 30-year fixed down to 4.91% and home foreclosures slowed for a third consecutive month.

Stocks in action for the day: L&T, Zuari Ind, TCS, Ranbaxy, Usha Martin, WWIL,

L&T -: -L&T to sell 2.7 cr shares of Mahindra Satyam today -L&T to sell Mahindra Satyam shares at Rs 112.50/share ((CMP Rs 117)) -L&T owns 8.1 crore shares in Mahindra Satyam; Nomura is banker -L&T bought 1st tranche of 2.7 crore shares at around Rs 157/share.

Sugar: Govt extends duty-free raw sugar import up to December 31 -Govt extends import of duty-free white sugar up to March 31, 2010

Usha Martin board approves fund raising up to Rs 500 crore

Govt calls PSU chiefs to discuss possible M&A next week ((PNB, Bank of Baroda, IDBI Bank, Bank of India and Central Bank))

GMR says Hyderabad airport breakeven delayed by 6 years, company seeking to double user fees

Simbhaoli Sugars board approves QIP issue

Govt proposes hiking FDI limit in FM radio to 26%: DJ

Tata Motors sorts out differences with vendors on compensation for shifting from Singur:

Ranbaxy gets WHO pre-qualification for Indinavir capsules

TCS, Dow Chemicals in pact for supply chain, data management services

Bank Of Rajasthan cuts mortgage loan rates by 100 bps to 12.5%

Zuari Industries signs gas supply agreement with GAIL for its fertilizer plant

Allahabad Bank's NIM improved by 14 bps y/y: Allahabad Bank’s scrip has gained 11% in the first eight trading days of November compared to the 5% gains registered by the Nifty. The surge in the stock price is backed by improvement in the financials. The bank reported a profit of Rs 334 crore in the quarter to September 2009 compared to just Rs 42 crore in the year ago period. Obviously, there were one-off items, which contributed to growth in profit such as Rs 73-crore YoY fall in provisions and contingencies.

Hathway Cable seen tapping IPO market: Leading multi-system operator Hathway Cable & Datacom is readying for a listing on local bourses through an initial public offering (IPO). The Rajan Raheja group-owned company plans to raise Rs 600-625 crore through an issue of 27.75 million (2.775 crore) shares, including fresh infusion of two crore shares and sale of 70 lakh share sale by promoters and investors. The public offer is likely to hit the market by the middle of next month. Hathway promoters own around 58% in the company, while the Star Group has 20%, ChrysCapital has 13%, and a clutch of other private equity investors own 10%. The promoter shareholding will dip to 49%, post-listing, against 57% currently.

Tata Steel looks to cut FCCB repayment cost: TATA Steel on Thursday approved a proposal to exchange its convertible bonds worth $875 million for new convertible bonds that it says will reduce costs and lower repayment obligations. But, the move indicates that the Jamshedpur-based steelmaker, which earns about two-third of its revenue from outside India, is concerned with the pace of growth seen in the steel sector globally and the impact on the group.

HITS policy norms get Cabinet approval: The Cabinet on Thursday approved an Information & Broadcasting ministry proposal seeking to issue policy guidelines for putting up headend-in-the-sky (HITS), a system for multi-system operators (MSOs) to distribute television broadcast signals. HITS would help a subscriber with a wider choice of digital channels, better picture quality and value-added services at affordable price,” as per a statement issued by the ministry of Information & Broadcasting. It added that HITS would also allow a cable TV viewer to receive more channels than what they get through the current system. The new policy allows HITS operators to uplink signals only from India, and has permitted total direct and indirect foreign investment up to a controversial 74%.


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