India Morning Note - Keynote Capitals (November-4-'10)

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Views on markets today

·        Indian markets ended volatile session on positive note on the back of firm global markets ahead of outcome of the US Federal Reserve’s policy meeting later in the day. Good Q2 September 2010 results and sustained buying by foreign funds also underpinned sentiments. Barring oil & gas, all other sectoral indices inched higher during the session. Metal, auto and consumer durables stocks topped the gainers list. Metal stocks gained after London Metal Exchange advanced 1.58%.  Bank stocks moved higher on optimism of a pick-up in credit offtake in a buoyant economy.

·        Market breadth was strong at ~1.25x as investors bought large cap stocks. FIIs bought equities worth `9.87bn while domestic institutions sold equities of `3.7bn.

·        The Asian markets are trading positive this morning. The Nikkei is up on a wave of short-covering as the Federal Reserve's monetary easing passed without causing ructions in the currency market and as investors took heart from solid U.S. economic data. The Hang Seng is also positive.

·        The Indian markets are expected to open positive tracking firm Asian markets. The listing of Coal India shares will remain in focus today.

Key events today

·        Listing of IPO of Coal India Ltd. (NSE: COALINDIA, BSE code: 533278), issue price: Rs245 per share.

·        Announcement of food and fuel price inflation data

Economic and Corporate Developments

·        Bank credit increased by ~Rs71.3bn in the fortnight ended October 22 to Rs34.76tln, according to a statement released by the RBI.

·        The government would opt for a debt reduction strategy that seeks to improve upon the target set by the 13th Finance Commission.

Buzzing Stocks

·        GAIL and Petronet LNG are looking to pick up stake in LNG projects in Nigeria to secure supplies for the country’s rising energy needs. GAIL plans to invest Rs80bn during 2011-12, a 30% increase over the current year’s spending of Rs62bn.

·        Cairn Energy has again informed ONGC that its decision to sell majority stake in its Indian unit to Vedanta Resources does not trigger the ONGC’s pre-emption rights.

·        ABB has bagged an order worth US$40mn from PMC Project to supply three new substations.

·        GTL Infra Plans to raise Rs35bn via Fresh Equity issue through the sale of treasury stocks.

·        Bajaj Auto International Holdings BV Netherlands, a wholly-owned subsidiary of Bajaj Auto, has increased its stake in KTM Power Sports AG to 38%.

·        Jain Irrigation System to buy UK Sleaford quality foods through its subsidiary.

·        GTL Infra and Tata Quippo is likely to buy Vodafone 7000 towers across seven circles.