Pre-Market Commentary from Indiabulls: Wed, Jan 12, 2011

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US markets US markets closed higher as optimism of better quarter earnings report lifted sentiments. Markets started on upbeat note as investors reacted to quarterly results from aluminum giant Alcoa, which reported better than expected fourth quarter earnings after the close of trading on Monday. Alcoa posted fourth-quarter earnings of USD 0.24 per share, above analyst expectations for USD 0.19 per share. Revenues for the fourth quarter totaled USD 5.7 billion, up from USD 5.4 billion in the same period last year. Housing stocks edged higher after Lennar reported better than expected quarterly results. Lennar reported fourth-quarter earnings of USD 0.17 per share, well above expectations for earnings of USD 0.02 per share. Investors shrugged off the poor wholesale inventories data which edged down by 0.2% in November, while economists had expected inventories to increase by about 1%.   European markets European markets rose as banks gained after Japan joins China to calm Eurozone debt crisis. Easing the European debt worries, Japanese Finance Minister Yoshihiko Noda said the country may buy more than 20% of the amount of European Financial Stability Facility bonds that will be initially issued later this month. Rise in copper prices coupled with brokerage update for BHP Billiton uplifted the mining companies. Siemens AG rose after the engineering company said its first-quarter profit and sales were set to surpass the year-earlier figures on robust factory demand.

International News

Greece raised 1.95 billion EU .os (2.52 bn US dollars) at 4.9% interest on Tuesday by selling six-month Treasury bills. The rate was slightly higher than the last equivalent treasury bill issue in October which sold at 4.82%, but with the significantly lower amount of 390 million euros. (Economic Times) China rejected an accusation that it was connected with a suspected case of industrial espionage at French carmaker Renault. The scandal has rocked France's industrial sector, with a French legislator saying last week that there were indications of Chinese involvement. (Economic Times) South Africa's manufacturing output rose 4.6% year-on-year in November following 2.3% growth in the previous month. That was the fastest growth in three months. On a monthly basis, the seasonally adjusted manufacturing production grew 2.5%, while it was expected to rise 0.7%. (RTT News)

Domestic News

Amid liquidity squeeze and a higher than expected credit offtake, bankers have requested the Reserve Bank of India to slash the CRR and SLR in its upcoming Third Quarter Review of Monetary Policy 2010-11 on January 25, besides keeping the key policy rates unchanged. (The Hindu) Market regulator SEBI on Tuesday paved the way for Indian investors to trade in large indices of 24 global exchanges, including that of US, Europe and Asia. As per a SEBI circular, Indian exchanges will be able to provide trading in derivatives contracts of these global indices. (NDTV Profit) Indian automobile industry's sales grew by 31% in 2010 (calendar year), an industry chamber said Tuesday, adding the government should maintain the current exercise duty structure on small cars to boost demand in the current year. (Sify Finance)