Friday, November 12, 2010

GMR might sell Intergen stake to China's Huaneng Power

Dalal Street might be heading for another gap down open despite of flattish global cues on the the last trading day for the weak, thanks to hectic selling in Index futures by the FIIs.

Wall Street received a jolt in the form of Cisco's weak estimates but recovered from the lows of the day. Asian markets are trading down marginally.

GMR to sell Intergen stake

Chinese utility company Huaneng Power emerged the highest bidder for the purchase of 50 per cent stake in InterGen, which was put on the block by GMR. Investment banking sources say Huaneng one of the largest power companies in China is known to have put in a bid for as much as $1.5 billion.

GMR bought the stake for $1.1 billion in October 2008.

Intensive Selling

Yesterday's afternoon session reminded the days of Euro crisis and we witnessed a big round of basket selling. We believe the selling is something related to domestic factors and nothing to do with global crisis or Kospi's slide in yesterday's trade. Year end profit booking is one thing we can think of and slow down of inflows due to holiday season might added weight to the selling.

Current selling should be treated as a good oppurtunity for adding fundamentally sound counter