Thursday, January 14, 2010

BOR: Market Outlook: Indian markets are likely to witness a positive start tracking international cues.

Market Outlook: Indian markets are likely to witness a positive start tracking international cues. Nifty has support at 5180 and resistances are at 5280-5310. All eyes would be on monthly inflation data which is scheduled today. Wholesale price inflation is seen at 7.31% in December from a year earlier, which is sharply up from an annual rise of 4.78 per cent in November. Given the inflationary pressures, there is speculation that the Reserve Bank of India may tightening its monetary stance in its policy review later this month. Currently market is already pricing in a 50 basis point hike in cash reserve ratio at the January 29 review. On stock specific we like Karuturi Global, Jindal Saw & Nectar Lifesciences for fresh buying position.

Global events to watch for today:

  • Retail Sales
  • Jobless Claims
  • Import and Export Prices
  • RBC CASH Index
  • Business Inventories
  • EIA Natural Gas Report
  • 3-6 Month Bill Announcement

Global indices Update @ 8:

Dow Jones : 10680 (+53.51)

Nasdaq : 2307 (+25.59)

Nikkei 225 : 10844 (+108.9)

Hang seng : 21972 (+223.8)

SGX CNX Nifty : 5258 (+15.00)

INR / 1 USD : 45.68

On the global counter: Wall Street ends higher; Dow closes at 15-mth high & Asian markets trading higher; Nikkei, Hang Seng up. The US stocks closed higher, it was a fresh 15-month closing high for the Dow. The benchmark indices rebounded in the afternoon after seesawing earlier. Financials, technology and pharma stocks supported the upmove. In data released yesterday, the Federal Reserve's Beige book showed grudging improvement from the low levels of the recession. The US treasury department said the government racked up 91.85 billion dollars budget deficit in December, a record for the month, marking a record 15th straight month of government red ink.

Stock in action for the day: Sesa Goa, Himadri Chem, GTL, Bajaj Holdings.

IPO Update: Infinite Computer subscribed 43.22 times: Infinite Computer Solutions (India), a global service provider of Infrastructure Management, Intellectual Property (IP) leveraged solutions and IT services, has seen a record subscription of 43.22 times. The issue received this tremendous response from non-institutional investors and qualified institutional investors; their reserved portion got subscribed 106 times and 48.44 times, respectively. Retail investors' portion subscribed 11.08 times. Infinite entered the capital market on January 11, 2010, with an IPO of Rs 189.8 crore and the price band was between Rs 155 and Rs 165 per equity share.

Govt may limit some pvt sector mining, Sesa Goa to be hit: The government is considering a proposal to restrict mining in tribal areas by private sector companies, The proposal, part of a bill on India's mining sector, could impact investments of Rio Tinto, BHP Billiton, Vale and Sesa Goa in the country as it would make mineral-rich areas out of bounds for private and foreign companies. Indian regulations currently allow automatic foreign direct investment in most mining activities, but actual inflows have been only about USD 150 to USD 200 million so far.

GTL to acquire Aircel's tower biz for Rs 8400 crore: GTL Infrastructure (GIL), which leases towers to cellular operators, has agreed to buy Aircel Cellular’s tower business for Rs 8,400 crore in an all-cash deal that will make it the world’s largest independent telecom tower company. The world’s biggest deal yet in the telecom tower space is to be announced today.

Bajaj Holdings to swim with rising market tide: Bajaj Holdings and Investments’ consolidated profit grew by an astounding 344% in the December ‘09 quarter bolstered by the 145% growth in Bajaj Auto’s profit, which is an associate company. It’s basically an investment company with investments in Bajaj Auto, ICICI Bank and other companies. Since the equity market remained strong, it was possible for the company to book treasury gains.

JP Power to raise Rs 1,500 cr: Jaiprakash Power Venture (JPVL), that houses the power generation business of diversified $7-billion Jaiprakash Associates, is raising Rs 1,500 crore through a qualified institutional placement (QIP). The company is likely to dilute around 10% stake by the end of this fiscal to raise the fund, said two officials involved in the process on conditions of anonymity.

SMG eyes Rs 750-crore PE funding: The Sunil Mantri Group (SMG) is looking to raise Rs 750 crore through private equity players to fund its existing projects and fuel expansion plans. The Mumbai-based realty developer is open to diluting its holding by 30% at the project level to raise cash.

Himadri Chem expects revenues to rise six-fold: Himadri Chemicals, a Kolkata-based coal tar company in which Bain Capital has made a Rs 250 crore investment, has lined up major expansion plans. Besides doubling the capacity of its existing plants, the company is also looking at a joint venture in China.

Domestic air traffic grows 7.8% in 2009

Truck sales zoom 201% in December, rentals at 2-year high.

Paramount to add 500 flights per month by fiscal-end


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