India Morning Note - Keynote Capitals (November-11-'10)

Visit http://indiaer.blogspot.com/ for complete details �� ��

Views on markets today

·      Indian markets ended lower yesterday in a choppy trading session tracking weak European stocks as sovereign debt problems in Europe resurfaced and after China's further monetary tightening. The down trend was led by selling pressure in FMCG, banks, capital goods and metal stocks while some buying witnessed in consumer durable, auto and IT stocks capped the markets from major loss. Tata Motors rose as much as 6.3% and zoomed to a record high after its quarterly results beat forecasts on demand in India and improved performance by its Jaguar and Land Rover unit. While Hindalco dropped 1.6% after it posted a less-than-expected 26% rise in its quarterly net profit.

·      Market breadth was however strong at ~1.49x as investors bought small and mid cap stocks. Both FIIs and domestic institutions sold equities worth `32.5Cr and `1.43bn, respectively.

·      The Asian markets are positive this morning. The Nikkei hit 4and half month high as recent falls in the yen against the dollar lifted sentiment further and induced solid inflows from investors. The Hang Seng is also trading positive.

·      Indian markets are likely to open positive taking cues from the Asian markets. However, the markets will continue yesterday's volatility ahead of weekly inflation today and important IIP data tomorrow.

Key events today

·      Announcement of food and fuel price inflation data

Economic and Corporate Developments

·      CAG added that the telecom minister had caused losses between `900 bn and `1400 bn by awarding scarce airwaves to new entrants in 2008 using a faulty and outdated policy.

Buzzing Stocks

·       HCL Infosystems on Wednesday said it has entered into an agreement with Mercator, the IT division of the Emirates Group , to manage IT enabled infrastructure for low-cost airline fly dubai.

·       Mahindra Group's IT-arm, Mahindra Satyam, has bagged a contract from insurance sector regulator, Insurance Regulatory and Development Authority (IRDA) for implementing SAP ERP package.

·       Power Finance Corp (PFC) plans to raise $260 million (`11.53 bn) of external commercial debt and mop up `12-15bn through tax-free infrastructure bonds by March.

·       Jaypee Associates, a construction and energy company, could consider mobilising close to $500 million through equity sale in Jaiprakash Power Ventures (JVPL) in 2011.

·       Real estate developer Omaxe Ltd is planning to raise about `4 bn through a stake sale to institutions, which is expected to be launched by January, a top company official said.

·       VA Tech Wabag has received an order from Andhra Pradesh Power Generation Corporation (APGenco) for total water management at their thermal power projects at Kakatiya and Rayalaseema under balance of plants package as part of consortium.