Tuesday, December 28, 2010

Street's subdued saga likely to extend

Dalal Street is likely to trade in a band yet again on flattish global cues as majority of the retail investors and FIIs are holidaying. China's central bank could raise interest rates to alleviate negative real interest rates in the first half of next year while inflation pressures are large, the central bank-backed Financial News reported Tuesday. Asian markets are currently trading mixed today.

News Bytes

* Tata Steel may cut debt in Riversdale sale

* PFC & REC set sights on bank foray, to hire consultants

* Ramky mulls hiving off road, industrial park business

* CIL's overseas acquisitions in 2011-12

* RBI cuts SLR for RRBs to 24% to inject liquidity

* KEC Intl wins orders worth Rs 1,018 cr

* iGate, Apax close to buying 63% of Patni Computer

Markets - All roads point to new highs next month

We expect markets to hit new highs before the budget. One can see pre-budget rally from the second week. IT stocks look promising, so are Oil related stocks. Infrastructure and Realty are the two dark horse sectors while Banking and Auto are most likely to underperform going forward