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There is no effect in US markets in spite of cut in interest rate by .75% by Federal Reserve to improve the US economy and DOW , NASDAQ closed down by -128.11,-47.75 respectively. However the position of the Asian market and Aus market seem to be good as they have recovered and running in positively. Due to these reason Indian markets are looking to give recovery today but that shall be an instant recovery only. The reason behind this is that this recovery shall be an artificial recovery. Today there may be opening of Bombay sensitive index by +400 pts and may recover to the extent of 750 pts to 1000 pts. Technically the first resistance for sensitive index shall be 17,420.00
These stocks might look for a rebound
Oswal chemicals, Wire & Wireless, Chambal Fert Nagarjuna Fert, Bongaigaon Ref, RNRL and Ispat Industries are the stocks looking desparately for a rebound after having their head cut off in the past three sessions.
When RBI meets next tuesday to discuss the monetary policy Mr.Y V Reddy, RBI governor will be under tremendous pressure to cut rates given the worst conditions prevailing. Also there is a urgent need to fill the gap in interest rates between US and India, created by Mr.Bernake's 75 basis point cut yesterday.
The bigger the gap, the quicker will be the inflows resulting in more liquidity and a stronger rupee which in turn puts the Indian Central bank in a fix. Canada Reserve Bank take a cue from their neighbours announced a 25 basis point cut.
Investment Picks GMR Infrastructure,RPL,Sterlite Industries,Axis Bank,L&T
News Snippets:
SBI group's consolidation is likely to be delayed.
L&T may form a JV with US arms major Lockheed Martin to develop Mark 41 Vertical Launching Systems in India.
NTPC and Gail might have to pump in more money into the Dabhol power project.
Tata Motors has signed a development contract with Chrysler’s electric vehicle unit to develop and market an electric version of the Ace in the US.
Tata Power, GMR Energy and GVK Power are eyeing New Delhi's ’s Rs1.75bn first waste-to-energy project.
An Empowered Committee of Secretaries has allowed ONGC Videsh to acquire stake in Venezuela’s San Cristobal oilfield.
NTPC is looking to invest Rs17bn in a Jharkhand coal mine.
GAIL and Engineers India have jointly submitted an EoI to Oman Gas Company for setting up a gas processing plant in Oman.
United Spirits has launched Dalmore and Jura from its Whyte & Mackay portfolio along with W&M blended scotches.
Piaggio is planning to increase production and launch new scooters in India.
Sobha Developers is planning to develop a 156-unit luxury residential project in North Bangalore.
Infosys and Wipro may bid for specific verticals of Capgemini.
Supreme Court has rejected a petition seeking stay on construction of DLF Cyber city in Gurgaon.
Arvind Mills is planning to invest Rs4bn to expand its retail business in four years.
GHCL is planning to demerge its business into three listed entities.
Jet Airways is to set up a Maintenance Repair and Overhaul facility and a flight catering facility.
Aegis Logistics intends to set up 70 outlets of Auto Gas LPG in Andhra Pradesh.
Delay on the part of Essar Oilfield Services in deploying a semi-submersible rig has affected GSPC’s exploration plan in its deepwater K-G Basin block.
IOC is setting up an LPG import facility at the land allotted to it by Cochin Port Trust at an investment of Rs1.7bn.
SIDBI has reduced its prime lending rate by 0.5% and its deposit rates by 0.25%.
Tanishq, the jewellery division of Titan Industries is embarking on a retail expansion with an aim to increase sales by 50% to Rs30bn in FY09.
A consortium comprising Reliance Energy and Spanish firm CAF has bagged the project to operate and manage a 22.7 km metro rail link between New Delhi city centre and international airport for 30 years.
Huawei Tech, Telefon AB LM Ericsson and Nokia Siemens Networks are pursuing a supply contract worth ~US$4.8bn with Tata Tele.
Apollo Tyres expects revenues of US$350mn from Hungarian unit in the second year of operations.
HDFC Bank is looking to foray into investment banking in the next 3-4 months.
PNB may quit JVs with Principal Financial Group in the asset management and insurance broking businesses.
India added 8.17mn new telecom subscribers in December, taking overall telecom density to 23.89%.
The RBI has temporarily allowed banks to increase their ceilings on capital market exposures.
The Government is planning a Rs70bn package to revive the irrigation sector.
The Government is planning to relax few ECB norms for Ultra Mega Power projects.
Freight rates for bulk commodities like coal and iron ore could go down by 3-5% in the forthcoming railway budget.
Indian Railways has managed to negotiate a discount of Rs150 per kilolitre of HSD from oil marketing firms for 2008.
The EGoM on SEZs will discuss a finance ministry proposal on February 4, to impose export obligation in excess of 50% on such zones.