Wednesday, January 30, 2008

All eyes on Fed tomorrow

LOTS OF OTHER INTRADAY,BTST,INVESTMENT CALLS

FOR OUR SUBSCRIBER'S ONLY
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In Focus: Zee News

While RBI disappointed Indian Stock markets die hard bulls will be cheering the Fed for a 50 basis point cut in the interst rates. This would signal a bull rally for the medium term. Wallstreet expects a 50 basis point cut and the bulls are ready for a rampage even if the Fed meets expectations. In case of a 25 basis point cut there will be disappoinment but we do not see a major slump in the indices. We believe Mr.Bernake will not leave any stone unturned and will make use of the situation to the fullest.

Banks, Realty and Auto stocks were hit yesterday after RBI announced the monetary policy. Realty sector is living dangerously and we are not positive on the sector this year except for few stocks. We believe next month's budget will have pain in store for the sector. Textiles along with IT and Pharma might get the necessary boost.

Q3 performance of Corporate India is inline with expectations and given the fundamentals Indian stock market should be trading in a band till the next quarter. But markets always tend to think otherwise. With budget in the anvil next month we should see more action in the next F&O series in many stocks. We expect today's markets to trade in a band with no major cues and curiously waiting for the tomrorow's global event.

Few midcaps are slowly showing signs of pull back after heavily battered in the recent fall. Speculators will be back today with absolutely no cues hitting the Indian market.

Ranbaxy,Telco, Suzlon and few other stocks hit the headlines today

Reports suggest Ranbaxy is in race for 53% stake in a Romanian pharma co. Lupin and
Dr.Reddy's are also said to be in race

Sources say Telco might get full control of Jaguar, Land Rover

Suzlon Energy's Q3 net doubles with the bulging order book

Sujana Metals plan Rs 1,400cr mega expansion.

Bartronics India has acquired the Assets of Proximities Inc. and SRG America Inc. based in the United States of America for a total consideration of US $ 50 million

News Snippets:

TCS cuts variable pay linked to company performance by 1.5% per employee.

Unitech plans to sell 10-50% stake in its telecom operation to a foreign company.

ONGC and RIL make fresh appeal to Petroleum Ministry for implementation of rig holiday.

Essar Oil has decided to consolidate its upstream E&P operations with itself.

LIC offloads 2% stake in VSNL for about Rs3.4bn.

IOC to enter into natural gas business.

RINL and SAIL sign MoU to acquire high-grade limestone block in Oman.

Dr Reddy’s eyes acquisition in specialty business and customs pharma services segment.

Usha Martin to spend Rs8.5bn on capacity expansion over the next 30 months.

CPCL to expand capacity of its Chennai refinery at a cost of Rs50bn.

Big Bazaar targets Rs80bn turnover by next financial year.

GHCL plans to acquire soda ash companies in US and China. It is also exploring expansion and greenfield projects in India.

Chettinad Cement announces 1:6 rights issue to raise up to Rs2.5bn to fund expansion plans.

Simplex Concrete Piles India gets Mumbai Metro’s Phase I civil works contract worth Rs4.5bn.

Simplex Infra plans to recruit people in Sri Lanka, Bangladesh and Philippines.

Siemens signs a MoU with Maharashtra Government to support company’s expansion plans.

VF Arvind Brands, a 60:40 JV between the US- based VF Corp. and Arvind Mills plans to unveil large format outlets this year.

Indoco Remedies to take 100% equity stake in Shree Herbal Technologies for Rs25mn.

Economy News

The GoM on aviation disapproves the proposal of allowing overseas flights without completion of five years of mandatory domestic service.

I&B Ministry has approached TRAI for recommendations on restructuring of FDI cap in all segments of the media sector.

TRAI is studying whether the current cap of 25 different tariff plans per service provider per circle should be further tightened.

The Government is examining a proposal of providing tax benefits to companies using clean technology and generating carbon credits.

FDI in industrial parks to get a waiver from 3-year lock-in and minimum capitalization conditions.

Steel demand to grow by 8-9% in 2008 as per Fitch Ratings.

Navi Mumbai airport to be ready by 2012.

Orissa signs three MoUs to set up new steel units.