Wednesday, January 6, 2010

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 support at 5180-5200 and resistances are at 5300-5350. Midcap stocks may continue to outperform. Overall outlook for the markets today is that of cautious optimism as the bulls need to hold the Nifty above the 5270 mark consistently. Technically the trend is still intact up and the next logical target is 5387. Sugar, Power & steel counters to be in action for the day.

Global events to watch for today:

  • MBA Purchase Applications
  • Challenger Job-Cut Report
  • ADP Employment Report
  • ISM Non-Mfg Index
  • EIA Petroleum Status Report
  • FOMC Minutes

Global indices Update @ 8:

Dow Jones : 10572 (-11.94)

Nasdaq : 2308 (+00.29)

Nikkei 225 : 10726 (+44.30)

Hang seng : 22307 (+27.93)

SGX CNX Nifty : 5296 (+19.00)

INR / 1 USD : 46.20

On the global counter: US mkts end flat on mixed economic data while Asian markets trading firm; Hang Seng, Nikkei up. The US market closed Tuesday trade flat. The Dow ended in the red after a report showed pending-home sales fell much more sharply than expected. Ford shares gained more than 6% after the auto maker reported sales shot up 23.3% in December. Chrysler's sales fell 10.5% in December, while General Motors' sales fell 12.8%. In economic data, pending-home sales tumbled 16% in November, much steeper than the 5-percent drop expected and the 3.7-percent gain logged in October. However, sales rose 15.5% year over year. But factory orders rose 1.1% in November, more than double of what was expected. The Dow Industrials slipped 11.94 points, or 0.1%, to 10,572.02. The Standard & Poor's 500 index rose 3.53 points, or 0.3%, to 1,136.52. The Nasdaq Composite Index was up 0.29 points, or less than 0.1%, to 2,308.71.

Stocks in action for the day: RIL, Maruti, Idea, GMR Infra, Polaris

Tata Steel: December sales up 73% at 6.63 lakh tonne (YoY) Q3 sales increase by 49% YoY

Ratan Tata Says: -Reports of Tata Buying Fiat's Sicily units untrue -Cannot comment on Nano's future price trend

Polaris update -Orbitech sells further 0.71% stake in Polaris -ALERT- Orbitech is arm of Citigroup; Citigroup stake down to 30.4%

Sugar may hit Rs 50/kg mark soon: Sugar wholesale prices touched a record high of Rs 4,250 per quintal (100 kg) in the Delhi wholesale market on anticipation of higher demand in the upcoming festival season and lower January sugar release by the government, raising apprehension that retail price could even touch Rs 50/kg.

Godrej Prop stands tall among ilk: The Mumbai-based Godrej Properties listed at Rs 510 on the BSE at 16% premium to its issue price of Rs 490. The stock made an intra-day high of Rs 586.7 and a low of Rs 500 to close at Rs 534.7. The fact that the stock listed at a premium despite being richly valued attracts attention. Indeed, it is one of the rare IPOs in recent times to have closed the trade at premium.

Prism Cement's operating profit margin up by 520 basis points y-o-y: Prism Cement, which is the first cement maker to report its December 2009 quarter results, grew its operating profit margin by 520 basis points y-o-y to 31.2% in the third quarter of FY10. This was primarily due to higher cement prices, which pushed its realisations to an estimated Rs 3,460 per tonne in the December 2009 quarter, up 6% from the corresponding period a year ago. Prism Cement trades at nearly 7.6 times on a trailing basis and is fairly valued compared to other similar-sized cement makers. JK Cement, on the other hand, is right now trading 5.2 times its trailing 12-months earnings.

ABG Shipyard gets around 8 million shares in Great Offshore open offer, may end up with 21.5% stake.

GMR Infra board approves vesting of hotel division of GMR Hyderabad International Airport into its wholly owned subsidiary GMR hotels and Resorts.

Axis Bank launches new scheme; offers home loans at 8.25% fixed rate for first 2 years and floating rate post that.

FII limit in Maruti reaches trigger limit; FIIs need prior RBI approval for primary/secondary purchases

RBI approves FII participation in Network18 up to 40% subject to composite limit of 49%

DB Corp to list today; issue price at Rs 212, for retail at Rs 210.

Idea Cellular MD: Indus Towers' IPO at least a year away

Indian ADRs: MTNL up 10.6%, Tata Comm up 6%, Satyam up 4.8%.

RIL led Maha SEZ plan put on hold for indefinite period


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