Wednesday, December 8, 2010

Market Outlook: Indian markets are expected to open in negative note

Market Outlook: Indian markets are expected to open in negative note on the back of unconstructive sentiment across the globe. US stocks closed mixed Tuesday after enthusiasm over a deal to extend tax cuts faded. Back to domestic markets overall trend remains positive as long as it holds 5960. The crucial support on the downside for the Nifty is 5960 and resistance at 6020-6091

Global events to watch:

Þ MBA Purchase Applications

Þ Quarterly Services Survey

Þ EIA Petroleum Status Report

Þ 10-Yr Note Auction

Global indices Update @ 8:

Dow Jones : 11359 (-03.03)

NASDAQ : 2598 (+03.57)

Nikkei 225 : 10210 (+69.58)

Hang seng : 23283 (-144.6)

SGX CNX Nifty : 5985 (-35.00)

INR / 1 USD : 44.84

Stocks in action for the day: PSU Banks, Oil marketing companies, Karutari Global, Wipro, ONGC, PNB, SBBJ, LIC Hsg

A2Z Maintenance & Engineering Services IPO-IPO opens on December 08, closes on December 10 -Price Band: Rs 400-410; Offer to raise: Rs 860 crore -Raises Rs 125 crore from anchor book

Ravikumar Distilleries IPO-IPO opens on December 08, closes on December 10 -Price band of Rs 56-64; offer to raise Rs Rs 64.4- 73.6 crore

Public issues update

MOIL issue priced at Rs 375/sh

Claris Life Issue priced at Rs 228/sh

Punjab and Sind bank IPO opens on December 13, closes on December 16, issue price Rs 113-120/share

Banking counter to in action: Banking stocks are getting badly pounded on the bourses as most of them have announced rate hikes. There is also a growing fear that Reserve Bank of India (RBI) in its credit policy on December 16 review will increase rates.

Auto fuels set to cost Rs 2/L more as crude hits $90: Oil companies plan to raise petrol and diesel prices by Rs 2 a litre after a week as crude touched a two-year high of $90 a barrel on Tuesday, a move that will boost the finances of state-run firms but stoke inflation. Crude oil has risen about 18% since June 26, when the government last raised diesel prices and allowed public sector firms IndianOil (IOC), Hindustan Petroleum and Bharat Petroleum , which control 90% of the retail fuel market in India, to fix petrol rates themselves. Petrol prices have risen four times since then.

Oil subsidies to be phased out in 3-4 years, India agreed at G20 summit – FE (OIL marketing companies in action)

Karutari Global to pick 54% stake in Florista: Karuturi Global announced that it has reached an understanding to pick up 54% stake in Mumbai based Florista, which has a chain of floral designing boutique stores spread across India. By acquiring majority stake in Florista, Karuturi`s retail presence in India will be further consolidated. Further, the company is also planning to merge its retail operations carried out under the Flower Xpress with Florista.

PNB hikes deposit rates by 50-100 bps w.e.f. Wednesday -PNB hikes BPLR by 75 bps to 12.50% w.e.f. Wednesday -PNB says peak rate for retail deposits now 8.5%

Wipro bags USD 50 million, 3-year order from Vodafone -Wipro to provide fixed line enterprise biz for Vodafone

Current pictorial warnings on cigarette packs to continue: Govt sources say -Review of current pictorial warnings next December Cabinet decides on pictorial warnings on cigarette packs

Spice acquires NewTel Corp NewTel Thailand's 2nd largest mobile handset player

Cabinet okays petroleum chemicals, petrochem region in Orissa -Govt says: See investment of Rs 2.77 lakh crore in Orissa Petchem Region

Finance Ministry review -Need regulation to ensure MFI lending terms are transparent -Need clear guidelines on method of recovery by MFIs -Lending agents often mis- represent int rate to borrower -Borrowers deluded about simple & compound interest rates -People borrow under terms they would have never accepted -Must ensure no ambiguity in MFI-borrower contracts -Must not regulate MFI out of existence -MFI credit has saved lives of poor people -Need to weigh pros & cons of MFI before deciding future Fin Min tables mid-year economic analysis in parliament

ONGC board to meet on December 16 to consider bonus issue, stock split, special dividend

State Bank of Bikaner and Jaipur board meet on December 10 to approve Draft Letter of Offer, for raising equity share capital upto Rs 800 crore by way of Rights Issue.

LIC Housing Finance, PNB, Bank of India and Central Bank combined have Rs 20,000 crore exposure to 19 firms embroiled in the loan scandal – FE

eClerx Services board meet on December 16 to consider a proposal to raise Long Term Financial Resources

Competition Commission of India ruled on Tuesday that Banks can charge foreclosure fees – ET

Jet Airways, Air India ink USD 5 billion deal for 35 airbus aircraft – ET

Paint Co hike prices by 2-5% as input costs soars – ET

Uflex CMD Ashok Chaturvedi found guilty in his individual capacity in Noida Land scam

Gujarat Foils not to pursue EOI to GMDC for setting up Alumina Refinery in Kutch


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