Monday, March 8, 2010

BOR: Market Outlook: Indian markets are likely to open flat to negative as a part of profit booking action after a week positive movement.

Market Outlook: Indian markets are likely to open flat to negative as a part of profit booking action after a week positive movement. Overall trend, there are chances that markets may consolidate at this level in the absence of any fresh triggers.

Global Events to watch for today

  • 4-Week Bill Announcement
  • 3-Month Bill Auction
  • 6-Month Bill Auction

Global indices Update @ 8:

Dow Jones : 10566 (+122.0)

NASDAQ : 2326 (+34.04)

Nikkei 225 : 10551 (+182.3)

Hang seng : 21113 (+325.9)

SGX CNX Nifty : 5136 (- 49.00)

INR / 1 USD : 45.78

Stocks in action for the day : Adani Power, Financial technology, Maruti

Adani Power in race for 1,000-mw Kosovo project: After spreading its operations beyond Gujarat, to Maharashtra, Rajasthan and Madhya Pradesh, Adani Group company Adani Power is now looking for opportunities outside India. The power company is in race for a 1,000-mw power generation project in Kosovo, part of the EU.

Fidelity to sell 2% in MCX to Intel arm: Leading foreign institutional investor Fidelity, which holds around 7% stake in commodity bourse MCX, is divesting around 2% in the exchange to Intel Capital (Mauritius), the investment arm of chip maker Intel.

CIL gets SEBI nod to reserve shares for employees: Taking forward the proposed disinvestment of state-owned Coal India Ltd (CIL), capital market regulator SEBI has allowed the coal major to offer shares to its employees, including that of its subsidiaries.

Suzuki raises Maruti stake, fuels talks of full control: Suzuki Motor Corp has raised its stake in Maruti Suzuki to 55%, triggering speculation about the Japanese firm’s intentions for its Indian subsidiary and whether the move is part of a larger plan to take full control of the country’s top carmaker.

RBI defers base rate implementation by 3 months : The Reserve Bank of India (RBI) today deferred the introduction of base rate system, which will be the new benchmark prime lending rate (PLR) for banks, by three months to July 1. Banks will now implement base rate system from July 1, 2010, RBI Deputy Governor Usha Thorat said here.

DQ Entertainment IPO is very expensive: DQ Entertainment (International), one of the leading players in animation business, is entering the capital market with a public issue of 16 million shares at the face value of Rs10 each. The Hyderabad-based company, which began as an IT training and consultancy firm in 1993, forayed into animation business in 2000. The company branched out into gaming and distribution business in the past eight years; however, it still derives a substantial portion of its revenues from its animation business. Considering the half-year period of this fiscal ended September 30, 2009, the company’s animation business accounted for around 93% (Rs 61 crore) of the total revenues of Rs 65 crore. Valuation: The issue is valued at around 30-32 times the company annualised net revenues in FY10 considering the post-issue fully diluted equity. This is quite expensive compared to its much bigger peer Compact Disc (revenues of Rs184 crore as of FY09) which is trading a price to earnings of around two times. Given this, investors are advised skip the issue and may take exposure in the secondary market based on the new flow post listing.

Tea exports jump 41% in Jan: Tea exports have jumped by over 41 per cent to 17 million kg in January this year, the Tea Board said. The country had exported 12 million kg of tea in the same month last year, the data released by the Tea Board showed. In value terms, exports stood at Rs 212 crore in January against Rs 146.6 crore in the same month last year. The average price of Indian tea in export markets increased to Rs 124.69 a kg in the month from Rs 121.38 a kg in January 2009.


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