Thursday, January 6, 2011

Asian Markets off to a flyer

Dalal Street is likely to witness a gap opening today with higher chances of a decent close on positive Wall Street, followed by rally in Asian Markets on Wednesday.

News Bytes

* Merck ends pact with Ranbaxy

* NMDC gets green nod for Himachal limestone project

* Gitanjali Gems likely to close PE deal by Feb

* Indian Bank plans insurance foray

* Gujarat NRE sees floods raising coking coal demand

* Suzlon chairman says ‘no question’ of family exiting

* Dr Reddy’s to contest Pfizer’s patent suit

* Keep hiking rates to cool inflation: IMF

RBI - Rate hike Fears?

While stories in media suggest that RBI might hike rates again and markets are jittery on the same. We believe a rate hike in January is already factored in and do not expect a major hiccup in the short term. We expect a 25 bps hike in Interest rates.

Slow down in FII Inflows?

Analysts are expecting a slow down in the FII inflows in the new year. We expect a thumping number in the first quarter followed by a cool-off, only to pick up in the second half of the year.

Nifty - Takes support at 6070

Nifty took support at 6070 but failed to cross 6170. A cross above 6170 might take Nifty to 6300 levels. Stay invested as global indicators point to a January rally.