Pre-Market Commentary from Indiabulls- Jan 11, 11

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US markets US stocks ended mixed on renewed concerns about European debt crisis and corporate news pulled sentiment in opposite directions. Meanwhile, news on the merger and acquisition front helped the markets recover from their early lows. A lack of economic news gave investors the opportunity to focus on other market drivers, while earnings season kicked off with the release of Alcoa results after the closing bell. In corporate news, Johnson & Johnson fell after Sky News reported that hip and knee replacements maker Smith & Nephew rejected a USD 10.9 billion takeover offer from J&J. On the other hand, Sara Lee moved up after reports suggested that Brazilian meat processor JBS may make a revised offer for the company. Reports also suggested that buyout firms led by Apollo are planning to make an offer. Meanwhile, electric utility Duke Energy signed an agreement to buy smaller rival Progress Energy in an all-stock deal worth over USD 13 billion. European markets European stocks closed lower for a second straight session on sovereign debt concerns amid rising borrowing costs for Portugal and Greece, and reports that France and Germany are pressuring Portugal to accept a rescue package from the EU and IMF. In economic news, an indicator of euro-zone investor confidence improved in January. In France, a release from statistical office Insee showed industrial production rose 2.3% month-on-month, and 5.3% on an annual basis, in November. French manufacturing production grew 2.2% month-on-month in November, after a 0.9% drop in the previous month. Meanwhile, construction output fell 1.3% in the month following a 0.7% drop in October.

International News

The pace of growth in emerging markets quickened in the fourth quarter of 2010 due to a rebound in manufacturing. HSBC's emerging markets index (EMI), based on 21 purchasing managers' surveys (PMI) in 16 emerging countries, rose to 55.7 in October-December 2010 from a five-quarter low of 54.2 hit in the preceding three months. (Reuters) UK house prices declined in December for a second month. House prices decreased 1.3% between November and December to GBP 162,435 after easing 0.2% in November. On an annual basis, prices in December were 1.6% lower as measured by the average for the latest three months against the same period a year earlier. Prices in the three months to December were 0.9% lower than in the preceding three months. (RTT News) Eurozone investor confidence rose in the first month of 2011, reflecting improvements in both current conditions and expectations indexes. An indicator of investor sentiment rose to 10.6 in January from 9.7 in December. (RTT News)

Domestic News

Mahindra & Mahindra Financial Services, the financial services arm of M&M, said that it has entered into a joint venture agreement with US-based De Lage Landen Financial Services Inc (DLLFS). Under the agreement, DLLFS -- a wholly-owned subsidiary of Rabobank Group -- and Mahindra Finance USA LLC will set up a joint venture company to provide wholesale inventory financing services to US-based dealers for the purchase of Mahindra & Mahindra's products, Mahindra & Mahindra Financial Services informed the Bombay Stock Exchange. (Business Standard) Indian exports are back on track and exporters are confident that they will be able to sustain the recent momentum in exports. Ramu S Deora, president of Federation of Indian Export Organisations claims that by 2015, exports from the country could be well above USD 500 billion. (MoneyControl) Beverage major Coca-Cola has joined hands with the Indian School of Business (ISB) to set up a retail academy at the latter's campus here, officials said on Monday. The Coca-Cola Indian School of Business retail academy will offer a six-month programme to train mid-level professionals in retail management. (Sify Finance)