Wednesday, January 13, 2010

BOR: Market Outlook: Indian markets may have flat to negative opening today extending losses as international cues fail to offer any support.

Market Outlook: Indian markets may have flat to negative opening today extending losses as international cues fail to offer any support. US took a severe beating Tuesday on investor concerns about a potential government levy on banks. Nifty has support at 5140 -5180 and resistances are at 5280-5310. Overall the trend is still down and 5300 is a strong resistance to deal with. Yesterday the markets closed in red, jittering in the negative territory. We like Bombay dyeing, Nectar Life Science & Kewal Kiran for fresh position.

Industrial output at 2-year high: Industrial production grew at a two-year high 11.7% in November 2009, putting India on track to achieve 8% economic growth in the current financial year and strengthening calls for a hike in interest rates to tame rising prices. The better-than-expected industrial output growth, boosted by a massive 37.3% jump in consumer durables and 12.2% increase in capital goods, however, failed to lift the market that ended in the negative due to selling pressure on frontline stocks.

Global events to watch for today:

  • Bank Reserve Settlement
  • MBA Purchase Applications
  • EIA Petroleum Status Report
  • 10-Yr Note Auction
  • Treasury Budget

Global indices Update @ 8:

Dow Jones : 10627 (- 36.73)

Nasdaq : 2282 (- 30.10)

Nikkei 225 : 10781 (- 97.22)

Hang seng : 22010 (- 320.1)

SGX CNX Nifty : 5183 (- 25.50)

INR / 1 USD : 45.40

On the global counter: Wall St ends lower on talks of potential govt levy on banks & Asia trading weak; Shanghai Composite, Hang Seng down. It was a disappointing day on Wall Street. Financials dragged on concerns about a potential government levy on banks, while Alcoa's disappointing results stoked unease about the economic recovery. Technology stocks also led the selloff. At the end of trade, the dow shuts shop 37 points lower at 10,627, the nasdaq was down more than a percent at 2,282 and the s&p 500 too lost almost a percent to close at 1,136.

Stocks in action for the day: Bajaj Auto, Adhunik, Aegis, Dena Bank

Bajaj Auto net zooms three-fold to Rs 475 crore: Bajaj Auto, India’s second-largest motorcycle maker, on Tuesday said its fiscal third quarter net profit almost tripled, as strong sales buoyed by an improving economic scenario more than offset a sharp rise in input costs. The Pune-based Bajaj group flagship said net profit in the October-December period rose to Rs 475 crore, from Rs 164 crore last year. Its revenue in the same period surged 57% to Rs 3,295 crore. The strategy to focus on ‘bigger and sportier’ motorcycles helped the company grow its market share

Adhunik in talks to buy 50% in Australian mine for $100 mn: The Adhunik Group of Industries, with interests in power, steel, cement, transmission towers and mining businesses, has initiated talks to acquire 50% stake in an Australian coking coal mine for $100 million, said a person with direct knowledge of the development. The mine, located in the Bowen Basin of Queensland, has total estimated coal reserves of around 180 million tonne. The deal, if successful, will be routed through public-listed Adhunik Metaliks

Aegis close to acquiring prime land in Kolkata: Aegis, the BPO arm of the Essar group, is close to acquiring 10 acres of prime land from the Buddhadeb government to set up an integrated campus in Kolkata for an undisclosed sum. Aegis is looking to double capacity at its present 3,000-strong team of ITeS professionals in the city’s Salt Lake Electronics Complex (Saltlec).

Dena Bank to raise Rs 1,300 cr through share sale: State-run Dena Bank looks to raise Rs 1,300 crore capital over the next three years, of which Rs 600 crore will be raised by March. Of the total capital proposed to raise, Rs 300 crore will be through equity route and the rest Rs 1,000 crore will be raised by way of preferential share issue.

Nectar Life Q3 net profit up at Rs 32 cr: Nectar Lifesciences has announced its third quarter results. The company's net profit was up at Rs 32 crore versus Rs 6 crore, YoY. It net sales were up at Rs 260 crore versus Rs 134 crore, YoY.

HCL Tech okays merger of arm HCL Technoparks with self: The company has okayed the merger of arm HCL Technoparks with self, markets reports,.


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