Pre-Market Commentary from Indiabulls:: Jan 17, 2011

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Headlines : 17 January 2011

Indices at a Glance  Index  Latest  1D Chg(%)  YTD(%)  NSE Index (14 Jan 2011)  5654.55  -1.69  -7.82  Sensex (14 Jan 2011)  18860.44  -1.68  -8.04  DOW (14 Jan 2011)  11787.38  0.47  1.81  NASDAQ (14 Jan 2011)  2755.30  0.73  3.86  Hang Seng (14 Jan 2011)  24283.23  0.18  5.42  Straits Times (14 Jan 2011)  3245.96  -0.30  1.75  FTSE 100 (14 Jan 2011)  6002.07  -0.36  1.73  CAC 40 (14 Jan 2011)  3983.28  0.21  4.69  DAX (14 Jan 2011)  7075.70  0.01  2.34   US markets US stocks finished higher as investors reacted positively to strong fourth quarter results from JPMorgan and Intel. JPMorgan Chase posted fourth-quarter net income of USD 1.12 per share on revenues of USD 26.1 billion. Chip giant Intel reported fourth-quarter earnings of USD 0.59 per share while its sales totaled USD 11.5 billion. The markets largely shrugged off China's latest move to cool its growth and a flood of mixed US economic data. Bank of China unexpectedly raised its bank reserve requirements by 50 basis points to limit inflation amid the country's runaway growth. On economic front, Reuters and the University of Michigan said that their consumer sentiment index fell to a reading of 72.7 in January. Separately, retail sales increased by 0.6% in December, short of expectations for an increase of about 0.8%. Consumer price index rose by 0.5% in December, which was slightly higher than the 0.4% increase expected. European markets European shares ended on a mixed note as mining stocks fell after China raised reserve requirements for lenders by 50 basis points in its continued efforts to slow down inflation. Meanwhile, strong quarterly results from US lender JPMorgan helped bolster banking shares. In economic news, Eurozone annual inflation rose to 2.2% year-on-year in December from 1.9% in November breached the ECB's target of 2% for the first time in more than two years. Separately, a trade deficit of EUR 1.9 billion in November on a seasonally adjusted basis, compared to a surplus of EUR 3.5 billion in the previous month. Exports edged up 0.2% month-on-month in November, and imports grew 4.4%. British output price inflation edged up to 4.2% in December from 4.1% in November. German consumer price inflation accelerated in December 1.7% year-on-year in December following a 1.5% increase in November.   International News Business inventories in the US increased by much less than expected in the month of November. The inventories edged up by 0.2% in November compared to an upwardly revised 0.8% increase in October. (RTT News) Eurozone governments are considering an increase in the size of a rescue fund designed to help member nations when in trouble. European ministers are asked to submit their views regarding an increase in the EUR 440 billion European Financial Stability Facility to a European Council meeting in March. (RTT News) CB Richard Ellis, the US-listed property services firm, has emerged as favourite to acquire the majority of ING's real estate group in deal worth one billion euro (USD 1.35 billion) to create the world's largest property funds business. (Economic Times)   Domestic News State-owned oil companies raised petrol prices by Rs 2.50-Rs 2.54 per litre, the second hike in a month, on back of rising crude oil prices. (Economic Times) Marico, the maker of Parachute coconut hair oil and a home-grown fast-moving consumer goods or FMCG company, is in negotiations to buy a controlling stake in the Indian arm of Australian company Unibic, a maker of cookies. Marico is likely to pay Rs 130 crore for a 51% stake in Unibic India and the acquisition is expected to be completed by the end of the month (Economic Times) Hindustan Unilever may trigger a price rise in daily-use items by increasing prices of its popular soap and skin care brands to offset high input costs. (Economic Times)