18 Dec 2009

18 Dec, 2009 08:40 hrs


Morning Market Updates :



Asia trading weak; Hang Seng, Nikkei, Straits Times down

SGX Nifty down with 30 points to 5000.

Hang Seng was down by 257 points trading at 21090

Nikkei was down by 104 points at 10059.74

STI at 2787 with 25 points down.

China’s Shanghai Composite(SSE) was down by 68 points at 3110.19



Yesterday US Markets declined as dollar gains; Gold slips 3%

The US markets declined as the dollar gained and jobless claims rose more than expected. Financials were among the hardest hit. The Dow slipped 132.86 points, or 1.3%, to 10,308.26. The broader Standard & Poor's 500 index was dwon 13.10 points, or 1.2%, to 1,096.08, and the Nasdaq Composite Index fell 26.89 points, or 1.2%, to 2,180.05.

Citigroup shares tumbled more than 6% while Bank Of America shares slipped almost 3% while Goldman and JP Morgan were down 2.5% and 4%, respectively.

Driving some of the losses in the US markets was the jobless claims data which unexpectedly rose 7,000 to a seasonally adjusted 4, 80,000.

The dollar rose to its highest level against the Euro in more than three months, but the dollar's gains were tempered by the jobless claims data. The dollar index surged to a 3-month high.

In base metals copper prices fell the most in almost seven weeks as the dollar gained for a third day and US jobless rate rose unexpectedly.

Gold prices fell 3% pressured by the dollar's rise to 3 and half month highs against the euro.

F&O Cues :

Total Futures Open Interest down by Rs 96 crore

Total Options Open Interest up by Rs 174 crore

Nifty Flat, Futures Open Interest down 1.3%

Nifty Dec futures trading at 5 pt discount versus 1 pt discount

Nifty Open Interest PCR remains at 1.22

Nifty Calls shed 6 lakh shares, Nifty Puts add 6.9 lakh shares

Nifty 5000 Jan Put adds 2 lakh shares

Nifty 5400 Dec Call adds 2 lakh shares

Nifty 5000 Jan Call adds 2 lakh shares

Nifty 5200 Dec Call sheds 6vlakh shares

Nifty 5000 Dec Call sheds 4.5 lakh shares

Stock futures add 57.1 lakh shares in Open Interest

FIIs’ Activity :

FIIs net sold Rs 416 crore in Nifty futures, which ended with 5-point discount. The Nifty Open Interest PCR (put-call ratio) remained unchanged at 1.22. Nifty 5200 Call shed 6 lakh shares in OI (open interest).

FIIs net sell USD 29.8 million on December 16

Total F&O Open Int up by Rs 77 crore at Rs 1,12,340 crore

FIIs net buy Rs 192 crore in cash on December 16 (prov)

DIIs net buy Rs 133 crore in cash on December 16 (prov)

FIIs net sell Rs 359 crore in cash on December 16





Stocks to Watch :

Fresh Long Positions were seen in Crompgreav,HDIL & Suzlon-Source

Fresh long positions were seen in Crompton Greaves, HDIL and Suzlon Energy. Crompton Greaves gained 3.4% and its futures Open Interest was up 43% - Head Research, CNBC TV18

HDIL rose 4% and its futures Open Interest was up 15%. Suzlon rose 2.5% and its futures Open Interest was up 7%.

Fresh short positions were seen in Unitech. The stock fell 2% and its futures Open Interest was up 6%.

HUL gained 2% and its rollover completed at 44%. January futures added 8 lakh shares in OI and ended with 1.1 points discount.





DLF :

-Most rental assets will be with DLF Cyber City

-Promoters related parties; not involved in integration

-All group rental assets come under DLF now

-Deal eliminates all overlaps of interest

-Deal creates a rental giant; strengthens DLF balance sheet

-Integration allows 50% of income from rentals for DLF

-Annualised rental income post integration to up by Rs 555 crore

-Additional development potential of 11.83 million sq ft

-Deal does not change position on Rs 2,800 crore receivables due

-Same cap rates used to arrive at Cyber City & Caraf values

RNRL :

-UP government initiates repossession procedure for Dadri land

-CNBC-TV18 ALERT: Dadri land allotted to ADAG company power plant

-UP Power Secretary asks land to be returned to farmers ready to return compensation



RIL-RNRL case update: RIL says

-If 40 mmscmd sold at $2.34, will get return of 2.6%

-Rate of return even lower than borrowing cost

-Selling at $2.34/mmbtu subsidy to RNRL will be $6.3 billion

-Company borrowed $6 bn at average rate of 10%

-At $2.34/mmBtu, net return is $1.8 on investment of $12

-At valuation of $4.2/mmbtu, total cost is $1.94/mmBtu

-By selling 40 mmscmd at $2.34/mmbtu, profit $0.23

-Return of equity pre tax at 3.9%; post tax at 2.5%

-Ind norm for equity return for similar project at 20%

Bank of Baroda: FIIs can purchase in open market.

Tata Motors Group global sales grew by 62% in November 2009 versus November 2008.

KRBL board approves 1:10 stock split.

Eicher Motors targets 15% mkt share in HCVs in next 3 yrs

The commercial vehicle manufacturer, Eicher Motors hopes to capture nearly 15% of the market in the next few years. The company has laid out an aggressive expansion plan and wants to have a foothold reach in every segment of the commercial vehicle market.

Volvo-Eicher Commercial Vehicles (VECV) said on Tuesday that it plans to roll out its semi low-floor buses by the second half of next year.

I-T officials visit Omaxe to verify tax documents

Officials of the Income-Tax Department on Thursday visited the offices of real estate developer Omaxe to verify some tax-related documents. The operation, which was not described as a “raid” began at 4pm on Thursday and was underway at the time of writing, it was learnt.

China pension fund to raise overseas investment cap

China's USD80 billion national pension fund plans to boost its investments abroad, Chinese media reported on Thursday, as China faces renewed pressure to let its managed currency appreciate after global markets stabilize.

China's National Social Security Fund (NSSF) will raise its overseas investment limit to 20 percent of total assets from the current 7 percent, the China Securities Journal reported, citing Chairman Dai Xianglong. He did not specify when the investment cap would be lifted.

Banks face tough new capital standards under Basel rules

Big banks will have to set aside more profits or even raise capital as protection against hard times from 2012 under tough new proposals from international regulators, released on Thursday.

The new rules from the Basel Committee on Banking Supervision will introduce higher standards for the core assets banks have to hold and stricter requirements on liquidity holdings.



Food Inflation at 20%

Food prices for the week ended December 5 are up 19.95% since last year, versus 19.05% week on week. Primary articles are costlier by 14.98% versus 13.9% week on week.

Food prices rose 19.95% in first week of December from a year earlier, its fastest in 2009, and adding pressure on the Reserve Bank of India (RBI) to tighten monetary policy.

The food price index rose 0.3% on a week-on-week basis as at December 5, as the worst dry spell in nearly four decades and floods in parts of the country hurt summer crops.

BSE, NSE to start trading at 9am from Jan 4

The Securities and Exchange Board of India (SEBI) stepped in following which the NSE and BSE jointly decided that the revision of market open timing to 9 am shall be effective from January 4, 2010. In the interim, the current market open timing of 9.55 am will continue.





18th Dec Events :

Last Date for NMDC Bids, Govt May Hire 6 Merchant Bankers For NMDC FPO

1st day of LED Expo in New Delhi.

1st day of ACMA IT Show 2009, Ahmedabad

1st day of India International Tea & Coffee Expo 2009, Bombay Exhibition Centre, Mumbai

1st day of AudioVisual Revolution, Pragati Maidan, New Delhi

National Consumer Fair at Bengaluru will start from today.