Views on markets today
· The Indian markets snapped three day winning streak and closed
choppy trade in negative note yesterday on profit booking at higher
level. Shares of Anil Dhirubhai Ambani group saw across the board
rally yesterday. Business activity in the Indian services sector
expanded at a considerably slower pace in September 2010 than in the
previous month, with the index falling to a 10-month low mainly due to
weakness in incoming new business also led the markets to close
negative. FMCG, metal and banks stock witnessed selling pressure while
buying in consumer durable, power and auto stocks capped the markets
to major fall.
· Market breadth was strong at ~1.31x as investors bought large
cap stocks. FIIs bought equities worth `6.71Cr while domestic
institutions sold equities of `8.03bn.
· The Asian markets are trading positive this morning. The
Nikkei is trading higher as investors continued to welcome the Bank of
Japan's surprise interest rate cut the day before, although persistent
strength in the yen put a damper on gains. The Hang Seng is also
trading positive.
· The Indian markets are expected to open higher in line with
global markets after the Bank of Japan unexpectedly cut rates closer
to zero and said it would pour money into the markets through asset
purchases.
Key events today
· Opening of the IPO of BS Transcomm Ltd. (price band `257-266
per share), closes October 08.
· Opening of the IPO of Oberoi Realty Ltd. (price band `253-260
per share), closes October 08.
Economic and Corporate Developments
· The government plans to relax the bidding norms for the coming
ninth round of auctioning of oil and gas blocks under NELP, as the
previous round of auctioning failed to generate much interest.
· Foreign direct investment in the country's services sector
almost halved to US$1.08bn in the first four months of the fiscal.
Buzzing Stocks
· Reliance Industries is finalising a new alliance with
engineering and project management partner Bechtel Corporation, as it
prepares to enter the power sector.
· Israel-based pharma company, SoluBest, has entered into
collaboration with Dr Reddy's Laboratories to develop a technological
platform for solving the problem of drug insolubility.
· Tata Motors is starting open sales of its people's car, the
Nano, following the wrapping-up of deliveries to select customers.
· Axis Bank plans to sell as much as US$200mn of commercial paper.
· GlaxoSmithKline Consumer Healthcare has revamped its flagship
Horlicks brand and expects to maintain its leadership position at 52%
(market share) this fiscal.
· IVRCL Assets & Holdings Ltd has approved issue of equity
shares on a preferential basis for cash at a price of Rs129 a share,
aggregating Rs1.5bn to Unit Trust of India Investment Advisory
Services Ltd, for its Ascent India Fund III.
· JSL Stainless said it has increased the proposed investment on
phase-II development of its Orissa plant to Rs64bn to augment
production capacity to 1 mt per annum.
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