Views on markets today
· Indian markets closed on positive notes yesterday tracking firm Asian and European markets on hopes of any move from the US Federal Reserve and other central banks in order to boost the economy. However, profit booking at higher level ahead of IIP data for August and inflation figures for September this week, pared some of the market gains. Metal stocks gained after base metal prices rallied in Shanghai and London on hopes of more stimulus from the US Federal Reserve. The up-move was mainly led by gains in auto, metal and oil & gas stocks while IT and FMCG stocks witnessed selling pressure.
· Market breadth was strong at ~1.74x as investors bought large cap stocks. FIIs bought equities worth `8.1Cr while domestic institutions sold equities of `5.74bn.
· The Asian markets are trading lower this morning. The Nikkei is trading negative on a climb in the yen to fresh 15-year highs against the dollar and a surprisingly weak profit forecast from popular stock Fast Retailing. The Hang Seng is also trading lower.
· The Indian markets are expected to open lower taking cues from weak Asian markets. However, Investors will watch August industrial output data to be announced today. Jaiprakash Associates will be in focus as it would invest about `6bn to set up a cement grinding unit in western India with a capacity of 3 million tonnes a year.
Key events today
· Announcement of IIP data for the month of August 2010.
· Opening of the IPO of Prestige Estates Projects Ltd. (price band `172-183 per share), closes October 14.
Economic and Corporate Developments
· Government to meet regulators on setting up Financial Stability and Development Council (FSDC) today.
Buzzing Stocks
· JaiPrakash Associate said it will invest around `6bn to set-up a 3 mtpa cement grinding unit at Delhi Port.
· Tata Motors plans to launch a new car that will be positioned between the Nano and the Indica.
· JSW Group emerges as the frontrunner in the talks to buy a controlling stake in Canadian resources company CIC Energy, which could BE value at US$450-500mn.
· Indian Oil Corporation may acquire up to 49% stake in its proposed Joint venture with Nuclear Power Corporation of India Ltd.
· Shree Renuka Sugars has completed debt restructuring agreement with major lenders of its Brazilian Unit.
· MIC Electronics has entered into an MoU to acquire a 51% stake in Avni Energy Solutions Pvt Ltd.
· Suzlon plans to raise up to `50bn from the secondary market and increase its borrowing limit to `100bn from the current `70bn.
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