Views on markets today
· Indian markets closed on negative note yesterday after lower-than-expected IIP data and negative cues from European markets. India’s Index of Industrial Production for August grew at 5.6% (YoY) as compared to 10.6% in the year-ago period. Sell off in real estate, capital goods and metal sectors led the markets lower while IT and pharma stocks witnessed selective buying. Tata Motors gained after the news that the company is planning to launch a new car aimed at taking on Alto manufactured by Maruti Suzuki.
· Market breadth was weak at ~0.64x as investors sold large cap stocks. FIIs bought equities worth `4.55Cr while domestic institutions sold equities of `4.54bn.
· The Asian markets are trading positive this morning. The Nikkei as an advance in US stocks and upbeat forecasts by Intel Corp brightened sentiment and prompted short-covering. Still, investors were reluctant about chasing the Nikkei aggressively higher as the yen lurked near a 15-year high versus the dollar hit earlier this week.
· The Indian markets are expected to open higher taking cues from global markets. Metal stocks will be in focus as copper prices in London and New York touched 27-month highs,
Key events today
· Listing of IPO of VA Tech Wabag Limited (NSE: VATECH), issue price: Rs1310 per share
· Opening of the IPO of Gyscoal Alloys Ltd. (price band `65-71 per share), closes October 15.
Economic and Corporate Developments
· IIP for the month of August, 2010 slipped to a 15-month low of 5.6% yoy, partly on account of a decline in capital goods output and effect of a high base.
· The Union government has threatened to cancel coal block allocations to eight companies.
Buzzing Stocks
· Coal India IPO price band has been fixed at Rs225 and Rs245 per share. The company plans to mop between Rs142bn and Rs155bn from the IPO proceeds.
· Axis Bank has received RBI nod to set up a subsidiary in the UK. It has also got the central bank's permission to upgrade its presence in Shanghai from a representative office to a branch.
· Jaiprakash Associates has entered into an agreement with M/s Dighi Port Limited for setting up a port based cement grinding plant in Kutch district, Gujarat.
· Lanco Infratech said its arm Lanco Kondapalli Power Pvt Ltd has received loan worth Rs18.3bn from a consortium of banks and financial institutions.
· Dr Reddy's Laboratories is facing a patent infringement law suit filed by Eli Lilly in a US court on its Abbreviated New Drug Application (ANDA) on generic version of Gemzer (gemcitabine).
· Punjab National Bank said it hopes to complete the acquisition of the Kazakhstan-based Dana Bank by the end of current fiscal.
· LIC HFL Financial Services, a subsidiary of LIC Housing Finance, has on tied up with United India Insurance for distribution of non-life products of the latter.
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