Thursday, December 17, 2009

BOR: Market Outlook: Indian markets may have flat to positive opening today.

Market Outlook: Indian markets may have flat to positive opening today. Nifty has supports at 4970-5000 and resistances are at 5080-5100. Overall the market is a sell call so adviced not to hold long position. The market unfolded exactly as expected, the market taking support right on 5001 and closing in the green. Technically, the market is weak and rallies until 5100 can be still sold.

Finally Markets to start @ 9: The war between the stock exchanges has just turned up the heat. The National Stock Exchange (NSE) yesterday evening announced it would pre-pone the market opening to 9am from Friday, from 9.52 earlier. Market closing, however, would remain the same — 3.30pm. The SEBI move was prompted by a long-standing demand by the stock exchanges for allowing extension of trading hours to capture more trading from international investors, especially from Asian countries like Singapore where exchanges open earlier, Indian time.

Global events to watch for today:

  • Jobless Claims
  • Leading Indicators
  • Philadelphia Fed Survey
  • EIA Natural Gas Report
  • 6-3-Month Bill Announcement
  • Fed Balance Sheet
  • Money Supply

Global indices Update @ 9:

Dow Jones : 10441 (-10.88)

Nasdaq : 2201 (+05.86)

Nikkei 225 : 10184 (+44.05)

Hang seng : 21697 (-27.14)

SGX CNX Nifty : 5021 (-02.00)

INR / 1 USD : 46.68

On the global counter: Wall Street ends mixed; Fed keep rate unchanged & Asia trading mixed; Hang Seng down, Nikkei up. In US markets the Dow erased all of its gains after the Fed offered no surprises in its latest statement, keeping interest rates steady, as expected. The fed also backed its pledge to keep rates low for an extended period. The Dow Jones Industrial Average was down 10.88 points, or 0.1%, to 10,441.12. The broader Standard & Poor's 500 index added 1.25 points, or 0.1%, 1,109.18. The Nasdaq Composite Index was up 5.86 points, or 0.3%, to 2,206.91. In key takeaways from the 2-day meeting of the Federal Reserve, the Fed kept its target range for its bank lending rate at zero to 0.25%, where it's stood since last December. And it repeated its pledge to keep rates at exceptionally low levels for an extended period.

Stocks in action for the day Bharti, Balrampur, HCC, Titagarh

Bharti Warid deal: -Bharti says talks with Warid in preliminary stage -Abu Dhabi Group says: have agrees to sell 70% in Warid Telecom to Bharti -Abu Dhabi Group says: Bharti to gain management control of Warid Warid Telecom Bangladesh's 4th biggest Telco Sunil MittalSurprised by Abu Dhabi Group comment on Warid Telecom -Have nothing to say on possible Bharti-Warid deal

DLF: Creating 2 verticals; Development & Rental -Caraf debt at Rs 2,200-2,300 crore -No change in DAL (DLF Assets) except change in ownership -Gives flexibility for asset monetization -Value of transaction arrived based on asset holding -Committed to REIT listing; no timeline in mind -Benefit from REIT listing will be passed on to DLF.

Sistema takes mobile tariffs to a new low: Telecom tariff war continued with Sistema Shyam Teleservices (SSTL) offering mobile call charges as low as half-a-paisa per second, a denomination that never existed in the history and still hoped to cover costs in three years adds the world’s biggest mobile operator, Vodafone, believes may be difficult. The 0.5 paisa per second offer from the Russian-controlled company immediately triggered a reaction, though in a limited way. Rival company Loop offered calls at 10 paise per minute, translating into 0.16 paisa per second, for calls between its subscribers. Vodafone Essar is expected to follow with a similar tariff and others too may join.

Apollo Hospitals may hive off business: Apollo Hospitals Group, which is currently in the process of rolling out a chain of smaller hospitals in Tier II and III towns under the ‘Apollo Reach’ banner, may hive off this business into a separate company to attract private equity funding. This comes at a time when several global private equity players have shown interest to invest in this venture.

Sumitomo to buy minority stake in Bhushan Steel’s Bengal project: Japanese steelmaker Sumitomo has agreed to pick up a substantial minority stake in Bhushan Steel’s mega steel project in West Bengal, joining the growing list of global players stitching up alliances in India. Under the JV agreement, the capacity will be increased to 6 MT subsequently. The companies have agreed on the broad contours of the JV, however, the financial details will be worked out in the next six months.

Shree Renuka walks out of Balrampur deal: Shree Renuka Sugars has decided not to continue negotiations with the Saraogi family for control of Balrampur Chini because of differences over valuation. A top official of Shree Renuka reported that while the promoters of Balrampur Chini, who own a 36.6% stake in the company, sought Rs 220 a share, Belgaum-based Shree Renuka Sugars was not offering more than Rs 180 a share. Earlier, a proposed deal with Bajaj Hindusthan, too, did not materialise, though for a different set of reasons.

Syndicate in talks to buy Bharti’s 25% in mutual fund JV with AXA: Manipal-based Syndicate Bank is in talks to acquire Bharti’s 25% stake in Bharti AXA Investment Managers, as part of its plan to enter the asset management business.

KRBL board meet to consider stock split

Ex bonus: Jaiprakash Associates (1:2)

HCC bags Rs 317.92 crore road project in Kolkata to be completed in 30 months

Merger ratio between Titagarh Wagons and Titagarh steel fixed at 1:36


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