Tuesday, September 13, 2011

ndian markets are expected to open with a positive jerk

Market Outlook: Indian markets are expected to open with a positive jerk and trade with mixed sentiments taking cues from the global markets amid concerns that Greece may default on its debt. U.S. stocks ended higher for the first day in three, erasing losses in a late-session turnaround the indexes on the back of reports stating China was considering buying Italian bonds while Asia trading mixed; Nikkei up, Shanghai Composite down.

Market like to discount yet another interest rate hike by the RBI are likely to keep stock investors on the edge this week. While the central Bank is widely expected to raise key policy rates by 25 basis points on Friday, the bigger focus will be on RBI governor's comment on the direction of interest rates. Indian Markets are following global cues, so we continue to hold a cautious outlook with support 4890 and resistance at 5080.

Global events to watch for:

Þ ICSC-Goldman Store Sales.

Þ Import and Export Prices.

Þ Treasury Budget.

Global indices Update @ 8:

Dow Jones : 11061 (+68.99)

NASDAQ : 2495 (+27.10)

Nikkei 225 : 8561 (+26.30)

Hang seng : 19030 (+836.0)

SGX CNX Nifty : 4967 (+24.00)

Gold (USD/t oz.) : 1834.1 (+20.80)

Nymex Crude (F) : 88.73 (+00.54)

INR / 1 USD : 46.97

Technofanda Call for the day:

Buy Spicejet Cmp 24 SL 21.5 Target 35: News Reports states Kalanithi Maran to hike stake in SpiceJet to 43% by October, stake hike through issue of convertible preference shares at 50% premium to CMP.

BUY Tatamotors: Stoploss 142.80 Target 158-160. shortcovering would be the call for the day in this counter.

Stocks in action for the day: SpiceJet, DLF, Cipla, R Power, KS Oils

KS Oils -To consider selling off its all key businesses including wind power. Company to raise USD 150 million via GDR issue – FE. Swiss Giant Glencore may bid for KS Oils – TOI

Road Minister may award road projects of 7,300 km this year -Cabinet okays addition of 10,000 km national highways

BoA to mull DLF proposal to sell stake in Pune IT SEZ on September 19 -BoA is Board of Approval Headed by commerce secretary -DLF has 70% in Pune SEZ, Ackruti City 30% -DLF may sell its stake to Blackstone

Reliance Power -Will commission 5000 Mw by December 2012 -Krishnapatnam UMPP not the only one hit by Indonesian coal policy -Imported coal price issue a sectoral problem -Withdrawn from Shahpur project due to fuel, land issues - Reliance Infra evaluating making power equipment with Shanghai electric

Bhansali Engineering counters minority shareholders plea to CLB Says -Minority shareholders making unsubstantiated allegations -Deny alleged mismanagement of funds -Company has to file reply with CLB by September 28

Govt to divest 10% stake in Hindustan Aeronautics (HAL) -Defence Ministry supports 10% sell-off in HAL

RBI releases panel report on new Urban co-operative banks licensing -RBI panel moots Rs 50 lakh-Rs 5 crore capital for new urban co-op banks

Kalanithi Maran to hike stake in SpiceJet to 43% by October, stake hike through issue of convertible preference shares at 50% premium to CMP - Mint

Infosys close to USD 500-750 million US buyout; senior management believed to be supervising the due diligence – DNA

Court revokes ban on sale of Nimesulide & PPA drugs as the ban was challenged by Cipla & Unichem earlier this year (ET)

DLF to sell its 17.5 acre NTC mill in Central Mumbai, likely to get between Rs 3000-4000 crore – ET

Oberoi Realty has cut interest rates charged on delayed payment towards flat purchase in its Splendor project from 24% to 9% following a delay in the possession date

Future Group plans to divest stakes in non core businesses in the next 6-12 months with the total valuation at around Rs 4500-5000 crore (BS)

Ex Dividend: Bharat Electronics Rs 15.6/sh

F&O ban: ABG Shipyard, Gitanjali Gems, KS Oils

SEBI clears MCX's DRHP for IPO: The Securities and Exchange Board of India (SEBI) has approved the draft red herring prospectus (DRHP) of MCX's (Multi-Commodity Exchange) initial public offering on September 9. It has asked the company to file an offer document with stock exchange/ROC, reports. SEBI clearance will be valid for 12 months from now. initial public offer (IPO) with SEBI of 6,427,378 equity shares of Rs 10 each. Existing shareholders like Financial Technologies, SBI, GLG Financials Fund, Alexandra Mauritius, Corporation Bank, ICICI Lombard General Insurance and Bank of Baroda will offload some of their exposure through this IPO. MCX is the sixth largest commodity exchange in the world with No 1 in silver and No 2 ranking in gold. It would be the first exchange in India to go public and get India at par with other countries with listed exchanges such as US, HK, UK, Singapore, Japan and Australia. MCX paid dividend over 3.15 times that of equity since its inception. It has a diverse shareholding pattern with international names like NYSE Euronext, Fidelity, Merrill and leading Govt institutions like SBI, NABARD, Corporation Bank. FTIL (Promotor of MCX) holds 31% before IPO and will dilute to 26%.


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