22 Dec 2009 Morning Call :

22 Dec 2009   09:27


22 Dec 2009 09:27




Asian Market Updates :



SGX Nifty : 4973 (+33 points)

Hang Seng : 21201 (+253.79 points)

Nikkei : 10329 (+146.31)



On strong global cues our market will open strong.Nifty support at 4940-50 and will resist at 4992/5050 levels.

Banking will give smart recovery especially ICICIBank,HDFCBank & HDFC

Buy BankNifty abv 8610 with a sl of 8570 for Trgt 8750 (positional)

Titan 1350 Trg 1400-1412

Jindal Saw

DishTv





NSE may consider 9-5 trading in index futures.



F&O Updates :

Total Futures Open Interest up by Rs 165 crore, Total Options Open Interest up by Rs 1674 crore

Niftty down 0.7%, Futures Open Interest up by 2.3%

Niftty Dec futures trading at 4 pt discount versus 2 pt discount

Niftty Open Interest PCR at 1.12 versus 1.16

Niftty Calls add 25.9 lakh shares, Niftty Puts add 5.5 lakh shares

Niftty 5000 Dec Call adds 22.4 lakh shares

Niftty 4900 Dec Call adds 4.4 lakh shares

Niftty 4900 Jan Put adds 7.5 lakh shares

Niftty 5000 Jan Call adds 3.4 lakh shares

Niftty 5000 Dec Put sheds 9.2 lakh shares

Stock futures add 70.2 lakh shares in Open Interest

FIIs net sell Rs 600 crore in Niftty Futures on December 21

Niftty Futures Open Interest up by 7153 contracts on December 21

FIIs net buy Rs 376 crore in Niftty Options on December 21

Niftty Options Open Interest up by 35,610 contracts on December 21

FIIs net buy Rs 146 crore in Stock Futures on December 21

Stock Futures Open Interest up by 17,023 contracts on December 21

FIIs net buy Rs 27 crore in Stock Options on December 21

Total F&O Turnover FII contribution at 22.1% versus 16.8% on Friday

FIIs Fig :

FIIs net sell USD 17.8 million on December 16

Total F&O Open Interest up by Rs 1840 crore at Rs 1,15,839 crore

FIIs net sell Rs 292 crore in cash on December 21 (prov)

DIIs net buy Rs 354 crore in cash on December 21 (prov)

FIIs net sell Rs 52 crore in F&O on December 21





Stocks in News :



RIL – Llyondell Basell (LB) update: Sources

Working on revised binding proposal for stake in LB

May look at higher cash payout for strategic stake

Alternatively a restructuring plan to increase cash flow

Final offer may be combination of both

Proposal has to be attractive for creditors to gain support

Revised valuation for LB still not finalised

CNBC-TV18 ALERT: LB's own revised proposal is for approximately $8 billion

RIL – SEBI letter :

MCA orders scrutiny by Registrar Of Co’s after Sebi letter: Sources

Non-invasive scrutiny to be conducted by RoC;

Scrutiny on basis of info available in public domain & govt records: Srcs

MCA to ask for substantial evidence from Sebi & keen on proactive action by Sebi: Srcs

Alert: RIL issued 1,87,000 NCD’s worth Rs 300 crore in 1994 & 120 million equity shares in January 2000 on exercise of option warrants

Alert: Sebi asked MCA to look into share allotment, RIL board role & funding

Ispat Debt recast :

Lenders give final nod to Ispat Industries debt recast: Srcs

Total debt of Rs 6,500 crore across 14 lenders

Lenders approve Ispat Industries 1 MTPA coke oven plant in Raigad

Promoters asked to pledge 95% shareholding against 100%

Company to hedge interest risk of its Rs 2000 crore FX loan

Lenders approve company's Rs 500 crore QIP

Company aims to complete coke oven plant project by December 2011

CNBC-TV18 ALERT:

Coke Oven Plant an SPV, in JV with Stemcor

IDBI Bank, ICICI Bank & IFCI lead arrangers

A Raja Says :

4 slots of 3G to be auctioned

Slots to be allocated by August 2010

All slots to be given at same time

3G Auction to be conducted as per schedule; scheduled for January 14

Great Offshore open offer closes today



Russian Billionaire Len Blavathik says RIL bid of LB too low – ET

Golden Tobacco board approves developing its Vile Parle Property

Govt likely to ban FDI in tobacco – ET

Wadhwa group buy LBS plot for Rs 570 crore from Hindustan Composite – (Hindustan Composite is BSE listed Co – CMP Rs 358)

Joint house committee has recommending blacklisting Siemens, L&T and Zurich Airport for faulty design of Bengaluru International Airport – TOI (JHC also indicted Narayan Murthy, Rajeev Chandrashekar and others)



TVS Motors plans 200cc Motorcycle – BS

Ansal API plans to raise Rs 650 crore via QIP in February – FE (Management says cant comment on speculation)

Airlines to break even for first time in Seven quarters, Jet likely to break even, Spice may scoop a profit – DNA

Cement prices hiked by Rs 5/bag in Mumbai from Monday – DNA

Unity Infra raises Rs 73 crore via QIP at an issue price of Rs 506

Aegis Logistics board approves acquisition of 100% Equity Capital of Shell Gas

No circuit filter on Zandu Pharmaceuticals

Asian Oilfield board meet today to consider additional funding

IFCI in NSE F&O curb







Celebrations on Wall Street :

US markets climb on health bill.

Nasdaq at new 15-month high; Gold slips below $ 1100/oz





The Wall Street gained with the Nasdaq closing at a new 15-month high. Positive earnings, upgrades for Alcoa and Intel and the senate health-care bill advancing triggered gains despite the dollar index gradually gaining traction.

The Dow Jones Industrial Average was up 85.25 points, or 0.83% at 10,414.14. The Standard & Poor's 500 Index gained 11.58 points, or 1.05%, to 1,114.05. The Nasdaq composite Index rose 25.97 points, or 1.17, to end at 2,237.66, its highest close since September, 2008.

The dollar bounced back against the euro and yen after initial losses. The greenback gradually turned its 0.3% loss into a 0.4% gain. That marked the fifth straight advance for the dollar index.



Crude sold off in the face of the strong dollar. The move lower comes ahead of a much anticipated OPEC meeting later today where the Cartel is expected to leave production levels unchanged.

Precious metals hit intra-session lows in New York trade on the back of a strong dollar. February gold broke down through the 1100 dollar per ounce level without hesitation. It fell over 1% around 1096 dollar per ounce.

Base metals, apart from lead, rose comfortably on recovery hopes amidst a low-volume session heartened. The dollar's strength did not dampen sentiment too much either.

Healthcare stocks rose after a bill to overhaul the US healthcare system, which is perceived as less damaging to industry profits than expected, passed a crucial test in the US Senate early Monday.

Retail stocks also gained as investors were optimistic about the rest of the holiday shopping season even after a heavy snowstorm hit the East Coast over the weekend, which may have deprived retailers of profits.

Legislation to overhaul the US healthcare system passed a crucial test early Monday as backers cleared a procedural hurdle to approving the bill, which is President Barack Obama's top legislative priority.

Following the vote, the Morgan Stanley Health Payor index climbed 3 percent. Health insurers Aetna Inc added 4.7% to USD 34.04 and Cigna Corp rose 3.9% to USD 37.19.

The S&P 500 closed within a hair of a new 14-month high, while the Nasdaq ended at a 15-month high. In contrast, the Dow ended considerably below its 2009 closing high at 10,501.05, which it reached on Dec. 14.

Intel Corp gained 2.3% to $20.09 on Nasdaq after Barclays upgraded the stock to "overweight" from "equal weight", citing solid "end-market" conditions. Alcoa Inc gave the Dow its biggest boost after it announced a joint venture to build a $10.8 billion aluminum complex in Saudi Arabia.

Morgan Stanley raised its recommendation on Alcoa's stock to "buy," expecting the company to report increased profitability in its alumina and downstream divisions. Alcoa jumped 7.9% to USD 15.73 and helped lift the materials sector 1.2%.

Sentiment also brightened after several acquisition deals, including an agreement by Sanofi-Aventis to buy consumer healthcare company Chattem Inc for about USD 1.9 billion, driving Chattem's stock up 33.1% to USD 93.14.

TAKE TWO SLIDES AFTER THE BALL

Shares of Take Two Interactive Software Inc lost 5.1% toUSD 8.95 in extended trade after the company revised its outlook lower, citing the impact of the sale of its distribution business Jack of All Games.

Volume was light on the New York Stock Exchange, with only 1.01 billion shares changing hands, well below last year's estimated daily average of 1.49 billion. On the Nasdaq, about 1.84 billion shares traded, well below last year's daily average of 2.28 billion.

Advancing stocks outnumbered declining ones on the NYSE by about 11 to 4, while on the Nasdaq, two stocks rose for every one that fell.

Indian ADRs :



Indian ADRs ended mixed on Monday. In the IT space, Wipro was down 3.51% at $ 22.02, Infosys was down 1.02% at $ 54.08, Satyam Computers was down 2.21% at $ 4.86 and Patni Computers was down 1.97% at $ 19.89.

In the telecom space, Tata Communication was down 5.54% at $ 14.5 while MTNL was up 0.67% at $ 3.02. In the banking space, HDFC Bank was up 1.77% at $ 124.87 and ICICI Bank was up 1.31% at $ 34.71.

In other sectors, Dr Reddy’s Labs was up 0.73% at $ 26.13, Tata Motors was up 0.06% at $ 15.73 while Sterlite Industries was down 3.03% at $ 16.98.





Dubai World to meet creditors, offer no proposal :



Dubai World will not make any concrete proposals to delay $22 billion in debt when it meets creditors on Monday, a move that is likely to dismay investors who have been left in the dark for weeks.

Saddled with debts and in need of restructuring, Dubai's flagship company had been expected to formalise a request for a payment standstill when it meets some 90 creditors at Dubai's World Trade Center complex from 0930 GMT on Monday.

But Dubai World moved to temper expectations, saying its two-hour presentation would only offer a look at its financial situation.



Dubai, which faces more debt maturities in 2010, may receive more aid from either the United Arab Emirates federal government or wealthy fellow member, Abu Dhabi, the UAE's economy minister said on Monday.

Asked whether the UAE government will extend more financial support to Dubai next year, Sultan bin Saeed al-Mansouri said the situation would be evaluated.

"This issue has to be studied in a proper manner, evaluated and based on that, an answer will be provided on the federal level or the local level because the way we see this is one economy not separated from each other," he told reporters on the sidelines of a conference.

The United Arab Emirates will not change economic forecasts for 2010 as a result of Dubai's debt crisis, which will not have a "huge reflection" on the Gulf Arab state, the economy minister said on Monday.

Dubai sent shockwaves through global markets on Nov. 25 when it requested a standstill on USD26 billion of debts linked to Dubai World and its two property units Nakheel and Limitless. The emirate's total debt has been estimated at USD100 billion.

Asked whether the UAE would need to lower its forecasts for next year, Sultan al-Mansouri said: "I don't think so because of the size of the issue."



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