U.S. Markets rebound from deep losses:: HDFC Securities

Please Share::

�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��

��

--> Key U.S. Indices managed to recoup bulk of their losses to close mixed on Tuesday, overcoming the bad news from China and Greece.

The Dow Jones Industrial Average fell 51 points or 0.29% to close at 17,801. The blue-chip index was down 217 points at one stage, before buying came in restored some semblance of respect to the close. It was the Dow?s first back to back loss since October.
The S&P 500, which fell  26 points in the morning trade to its lowest level in a month,  recouped almost all its loses but for a fraction of point to close unchanged at 2060.

The Nasdaq Composite managed to close with a gain of 25 points or 0.53% despite being down by around 47 points at one stage.

Small-cap stocks outperformed spectacularly, with the Russell 2000 gaining 1.8% to 1,188.06.

The U.S. stock market staged a rebound on Wednesday but still ended the day lower, even after erasing steep opening losses sparked by China?s tightening of lending rules and Greece?s surprise elections announcement.

Verizon Communications was among the top losers, after Verizon warned of lower profit due to price wars with competitors.
The markets were worried over China's growth prospects and political uncertainty in Greece.

Chinas Shanghai Composite saw its biggest one-day fall in five years, tanking 5.4%, after Chinese regulators tightened lending rules. Meanwhile, China's Central Economic Work Conference is meeting to determine an official 2015 GDP outlook. World Bank economists are pushing for a growth target forecast of 7%, the lowest level in a decade, so officials can focus on reform plans.

Greek stocks plummeted as the nation's government expedited its presidential vote by two months to Dec. 17. Prime Minister Antonis Samaris rescheduled the vote after failing to gain support for next years budget and as eurozone finance ministers granted a two-month extension to unpopular austerity measures. If Samaras fails to gain majority support in the new election, Greece's parliament will be dissolved. National Bank of Greece plummeted 13.7%, while the Euro STOCK 50 ETF stumbled 0.87%.

Germanys DAX was down 2.2% as imports fell the most in almost two years, down 3.1% in October and far worse than an estimated 1.5% decline. The data is just the latest worrying sign the eurozone's largest economy is suffering slowing growth and low inflation.

The Federal Reserve passed a proposal to impose risk-based surcharges on top global banks including JPMorgan, Citigroup, Bank of America  and Morgan Stanley . Citigroup was already 0.92% lower after warning of a fourth-quarter $3.5 billion charge, a result of expenses related to Libor and foreign exchange investigations and other restructuring.

Oil services stocks regained some ground, including Halliburton Baker Hughes, and Cameron International which sold off recently as West Texas Intermediate plunged below $64 a barrel.
10-year Treasurys rallied, sending yields down to 2.20% while gold prices jumped nearly 3%on Tuesday. The CBOE Vix index which measures implied volatility on the S&P 500 jumped 7% above 15, highest level since October.

Oil prices were rebounding from five-year lows early Tuesday, but action was volatile. Both Jefferies and Macquarie slashed their prices for the commodity, saying more pain is coming.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in January rose 77 cents, or 1.2%, to settle at $63.82 a barrel, snapping a three-session losing streak.

January Brent crude on London?s ICE Futures exchange rose 65 cents, or 1%, to end at $66.84 a barrel, ending five days of losses.
The STOCK Europe 600 index fell more than 2%, hit by weak German trade data and energy-stock losses. The FTSE 100 index slid on fears that China will cut its growth forecast, which hit commodity-related stocks.

Gold prices surged nearly 3% as investors shied away from stocks, and the yen USDJPY, -0.01% regained interest from investors seeking alternative haven investments, inching up against the dollar

Reliance Industries Ltd to enter textile JV with China's Shandong Ruyi

Reliance Industries, has decided to hive off its oldest business into a joint venture with China's Shandong Ruyi Science and Technology Group Co. 

RIL will hold a 51% stake in the new joint venture thus formed while the Chinese partner will hold the balance. The company sells products - primarily fabric for suits - under the 'Vimal' brand. 
Joint venture with Ruyi Group will help Reliance reposition its textile business on a high growth path. The proposed transaction is subject to obtaining requisite approvals.

TDSAT sets aside Rs 650 cr fine on Airtel, Rs 100 cr on Vodafone

Telecom tribunal TDSAT set aside Rs 650 crore penalty on Airtel and Rs 100 crore fine on Vodafone imposed by the DoT in a roaming case.

TDSAT said that there was no loss to BSNL due to these services by Airtel and Vodafone.

Telecom Commission pegs 900 Mhz spectrum base price 23% higher

Inter-ministerial panel Telecom Commission has recommended a base price of Rs 3,693 crore per megahertz for the premium 900 MHz frequency band, about 23 per cent more than what regulator TRAI had suggested for the same for the spectrum auction in February.

The commission has finalised a base price of Rs 3,646 crore per Mhz for CDMA band, nearly 17 per cent higher than the price suggested by TRAI.

The commission in its meeting yesterday finalised the base prices for spectrum auction early next year. The recommended base prices now would be placed before Telecom Minister Ravi Shankar Prasad for final approval and after that Cabinet might be approached for certain issues.

Auction of spectrum in 900 Mhz band would be held for 18 telecom circles and buying one Mhz in each of these circles would cost Rs 3,693-crore to the bidder. Similarly, spectrum in 1800 Mhz band is being auctioned in 20 circles while 800 Mhz band (CDMA) spectrum is on pan-India basis.

The auction is to be conducted for airwaves in 900 Mhz held by existing telecom operators Airtel, Vodafone, Idea Cellular and Reliance Communications through their licences that are expiring in 2015-16.

RCap to gain 12-fold from Yatra.com stake sale

At a time when domestic and international investors are queuing up for a slice of the booming Indian e-commerce segment, Anil Ambani-led Reliance Capital (RCap) is encashing its investment in Yatra.com - the leading online travel company - for Rs 500 crore.

RCap, which invested Rs 40 crore in Yatra.com in 2006 for a 16% stake, has now decided to exit the investment, pocketing a return of about 12 times in eight years and valuing Yatra.com at over Rs 3,000 crore, or $500 million

Chinas CPI rises 1.4 per cent in November

Chinas consumer price index - a main gauge of inflation - was 1.4 per cent higher from a year earlier in November, unchanged from the previous month but short of analysts? expectations of a 1.6 per cent increase. The producer price index (PPI) -- a measure of costs for goods at the factory gate -- moved to a decline of 2.7 per cent in November against analysts? expectations of a 2.4 per cent decline.

Markets

Nifty has corrected 3.5% from its recent peak on Monday. The strong support for the market comes in at 8180 levels.  This level may not be reached in a straight line.  After opening lower there could be a recovery in the markets and we should participate in the rally by buying financials especially insurance companies.