Views on markets today
· Indian markets continued its winning streak and scaled new 32-month high yesterday on fund based buying across sectors and higher Q2 advance tax payments from frontline companies. Positive European markets also underpinned sentiments. All sectoral indices closed positive with FMCG, real estate, auto and metal stocks led the gain. KSK Energy Ventures gained 5.5%, after the company has tied up $3.6bn for its 3,600 megawatt thermal power project in central India.
· Market breadth was strong at ~1.47x as investors bought large cap stocks. FIIs bought equities worth `17.92bn while domestic institutions sold equities of `4.57bn.
· The Asian markets are trading positive this morning. The Nikkei is trading positive and hit a seven-week intraday high with resource-related shares such as Mitsubishi Corp climbing after oil, gold and other commodities gained the previous day. The Hang Seng is also trading up.
· Indian markets are expected to open positive as Asian markets edged higher after an overnight rally in US markets. The BSE Sensex and NSE Nifty may hit psychological levels of 20,000 and 6,000 respectively with foreign institutional investors' buying spree and higher Q2 advance tax payments from frontline companies, boosting sentiment. IT companies will be in focus after Finance Minister said that India was worried that recent comments by US President could lead to increased protectionism and would raise the issue when G20 leaders meet in South Korea.
Key events today
· Opening of the IPO of Ramky Infrastructure (price band `405-468 per share), closes September 23.
· Opening of the IPO of Electrosteel Steels (price band `10-11 per share), closes September 24.
· Opening of the IPO of Orient Green Power (price band `47-55 per share), closes September 24.
· Closing of IPO of Career Point Infosystems Ltd. (subscribed 26.02x as of September 20, 5PM)
· Closing of IPO of Eros International Media Ltd. (subscribed 1.71x as of September 20, 5PM)
· Closing of IPO of Microsec Financial Services Ltd. (subscribed 2.45x as of September 20, 5PM)
Economic and Corporate Developments
· The Steel Ministry has said that it may seek concessions for state-owned firms like SAIL and NMDC from the 26 per cent profit sharing rule, proposed in the draft mining bill, as the PSUs have been fulfilling social obligations for long.
· Major cement companies on Monday hiked prices by ` 5-7 per 50 kg bag with immediate effect due to increase in input costs.
Buzzing Stocks
· Reliance Infrastructure approached banks for `70bn loan to fund a new rail project in Mumbai.
· TCS has approached the Karnataka government seeking 100 acres in Bangalore to build a new facility.
· Core Projects and Technologies has acquired two US-based education companies for US$20mn.
· ONGC in its report stated that it has a capacity to handle oil spills of up to 700 tonnes.
· SRF Ltd will take up three research and development driven projects costing around `2bn at its Dahej chemical complex in Gujarat.
· Jindal Steel and Power Limited plans to set up a `55bn industrial park at Parang.
· KSK Power Ventur Plc, has tied up `160bn loans for its 3,600-MW thermal power project in Chhattisgarh.
· Godrej Industries has set up a US$50mn venture capital fund to invest in agri start-ups.
· Piramal Life Sciences has started Phase-II clinical trials of a molecule, aimed at treating diabetes, in Europe and India.
· Wockhardt expects to close all issues pertaining to its corporate debt restructuring in the next few months.
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