Thursday, January 7, 2010

BOR: Market Outlook: Indian markets may have flat to positive opening today while we believe it is in consolidating mood after 3-day rally.

Market Outlook: Indian markets may have flat to positive opening today while we believe it is in consolidating mood after 3-day rally. Nifty has support at 5200-5240 and resistances are at 5310-5350. Overall trend remains bullish until Nifty holds above 5,230 in the near term. Metals & auto counter could see profit booking as many stocks were into the overbought zone and might continue to feel the pressure. We like L&T, Ruchi Soya & Pidilite Industries for the day.

Global events to watch for today:

  • Chain Store Sales
  • Monster Employment Index
  • Jobless Claims
  • 30-Yr Bond Announcement
  • EIA Natural Gas Report
  • Money Supply data

Global indices Update @ 8:

Dow Jones : 10573 (+01.66)

Nasdaq : 2301 (- 07.62)

Nikkei 225 : 10738 (+07.09)

Hang seng : 22453 (+36.60)

SGX CNX Nifty : 5291 (+05.00)

INR / 1 USD : 46.12

On the global counter: Wall Street ends flat ahead of jobs report while Asia trading mixed; Nikkei up, Taiwan Weighted down. It was yet another flat close for the US markets ahead of the crucial jobs report on Friday. Alcoa, Boeing and Bank of America were the key Dow gainers. The Fed released minutes from its last meeting yesterday which indicated that some members think more stimulus measures for the economy may be desirable. They modestly raised their projection for GDP growth for the second half and into 2011 and said they see lower core inflation in the next few years. In key economic data, the ADP said December job losses dropped to 84,000, below the 90,000 estimate. And the December ISM service index improved to 50.1 from 48.7 that was registered in November. The Dow Jones Industrial Average was up 1.66 points, or less than 0.1%, to 10,573.68. The broader S&P 500 Index was up 0.62, or 0.1%, to 1,137.14. The Nasdaq Composite Index was down 7.62 points, or 0.3%, to 2,301.09.

Stocks in action for the day: NTPC, HDIL, FDC, Wockhardt, RIL, Ruchi Soya, Pidilite Industries, Pfizer, Strides.

After a decade, Budget likely on Saturday - Feb 27..Sources

NTPC FPO likely to be around Rs 240-250: Sources. The follow-on public offer to sell some of the government’s stake in power major NTPC is likely to hit the market in early February. The NTPC FPO price is likely to be around Rs 240–Rs 250 per share. At the time of writing, NTPC was trading at Rs 234, up 2% in a firm stock market. The Indian government has been aggressive on its divestment agenda and is selling stake in various listed PSUs and also lining other PSUs for listing. Earlier, reports said the government may raise as much as Rs 20,000 crore via its disinvestment programme.

RIL set to sell more treasury shares in next couple of days

Bharti – Warid deal underway; towards Completion; Bharti-Airtel Likely To Invest $300 m For 70% Stake In Warid

Pfizer- Strides Arcolab deal-Collaborate to commercialise off-patent Sterile Injectibles-Collaborate to commercialise off-patent oral products in US-Deal comprises 40 off-patent products, mainly for Cancer-First product to reach market in 2010-Products to be licensed to Pfizer by Strides & Onco Therapies-Strides & Onco therapies 50:50 JV between Aspen & Strides-Financial details of deal not disclosed

L&T bags orders worth Rs 2,325-cr from four states: Larsen & Toubro (L&T), the country’s largest engineering and construction firm, on Wednesday, said it has received contracts worth Rs 2,325 crore for commercial and residential construction in Maharashtra, Gujarat, West Bengal and Chandigarh. With this transaction, the company’s construction division order book size has increased by over Rs 58,000 crore.

Ruchi Soya buys 50 pc in Gemini for Rs 45 crore: Ruchi Soya Industries has acquired over 50% stake in Andhra Pradesh-based Gemini Edible and Fat for Rs 45 crore in order to consolidate its presence in the southern markets. The acquisition will help Ruchi to consolidate presence in Andhra Pradesh, Karnataka and Tamil Nadu. It is a leader in the branded edible oil category with brands like Nutrela Soyumm, Ruchi Gold, Sunrich and Mandap. It is also engaged in the soya meal and lecithin.

Pidilite Industries in action: Pidilite Industries, the market leader in adhesives and sealants in the country was in action yesterday the sharp move of the stock came on the back of reports that the company’s board is seriously considering a bonus issue at its next meeting on January 28. Pidilite is valued at twice its net sales and its stock is currently trading at a P/E multiple of 21.6. These valuations are befitting a typical mid-sized FMCG company.

Niko Says-RIL to drill 6 more exploration wells in D6 block Niko is RIL's junior partner in D4, D6, NEC 25 blocks

Wockhardt gets US FDA approval for Alzeimers Drug

Bilcare opened GDR issue of upto $35 million yesterday

Govt gets nod to offload 10% in BSNL

USL mulls bonds issue to refinance Rs 3000 crore debt

FDC buy back at maximum Rs 65/share Offer open on January 18

Piramal looking for buyouts, plans to raise Rs 1000 crore

HDIL to raise Rs 400 crore via second tranche of NCD issue


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