Diwali Gift from RBI: RBI signal: Expect more rate hikes. Inflation-wary central bank raises repo rate 25 bps; but cuts MSF rate in equal measure to allow extra liquidity; bankers ambivalent on future course but stock markets relieved. Vodafone to invest Rs 10,141 cr to raise stake in Indian arm to 100%. Values subsidiary at Rs 28,469.9 cr, 48% less than in Feb '12. Infosys likely to be slapped $35-mn fine. WSJ report says this would be the largest immigration fine ever.
ECONOMY NEWS
RBI prescribes Rs 500-cr initial capital for foreign bank subsidiaries. Central bank will offer near-national
treatment to foreign lenders opting for subsidiarisation. Retail deposit rates may rise. Banks might hold on to lending rates for the time being. RBI to launch inflation-indexed securities. The Street, however, feels such measures might not see significant
investor interest.
INTERNATIONAL NEWS
Apple profit declines despite increasing sales of iPhones. Revenue from China, Hong Kong and Taiwan climbed just 6% despite the 5C and 5S going on sale in September Dell Inc will delist from the NASDAQ at the close of Tuesday's trading, as founder Michael Dell and private equity house Silver Lake complete their controversial $24.9 billion buyout of the struggling PC maker. US stocks rose, with the Standard & Poor's 500 Index extending a record, as data showing lower retail sales and consumer confidence fuelled bets the Federal Reserve will maintain stimulus as it starts a policy meeting.
COMPANY NEWS
Tata Steel braces for UK job cuts in face of low demand. Tata Steel Europe announces restructuring of long
products business; 500 jobs may be hit; operations at Scunthorpe, Teesside & Workington to be affected.
Ranbaxy in red on stock write-off, forex charge. Street keenly watching how the company plans to monetize
exclusivity opportunities for Diovan, Valcyte and Nexium. Lower demand, costlier import pull down NTPC's profit. Net profit for the quarter at Rs 2,492 cr compared with Rs 3,142 cr during the same period last year. No hit from order to give up KG-D6 discoveries, says RIL. Company says it hasn't made any investment in it. Gaja Advisors plans $250 mn fund for mid-size, SME firms. Repco Home Finance net profit up 30.7%. Total income from operations increased by 9.48% at Rs 129.9 crore as compared to Rs 118.65 crore.
WORLD MARKET
European shares edged higher on Tuesday as
estimate-beating results at BP and Saipem fuelled a
surge in the oil sector, a laggard in this year's equity
rally.
Asian share markets should take heart from record
highs in U.S. stocks on Wednesday as investors'
wager the Federal Reserve will rock no boats at its
policy meeting and leave stimulus in place for the
next few months at least.
The Dow and S&P 500 ended at record highs on
Tuesday after economic data supported views that
the Federal Reserve would keep its stimulus intact for
several months and IBM rallied after the company
announced a stock buyback.
MARKET OUTLOOK FOR TODAY
Domestic markets are likely to open on a positive note, tracking strong cues from the overseas markets. Asian peers are trading higher amid rising company earnings and on speculations that the US Fed will leave stimulus in place for the next few
months at least. Nikkei is advancing, benefiting from weakness in the yen against the US dollar, as well as overnight advances on Wall Street. On domestic front, Telecom and Realty stocks are likely to be in limelight today as corporate earnings from Bharti Airtel, Bata India; DLF etc. will be announced for Q2. Selected banking stocks will also
be in focus after the RBI positive policy announcements. The US stocks closed higher on Tuesday, with the S&P's 500 Index extending a record, on expectations that the Federal Reserve will maintain stimulus as it starts a policy meeting. FIIs net buy worth Rs. 1103 crs in the last session, SGX nifty trading positive by about 20 points at this morning and positive global cues may all lead to positive opening on nifty by about 10-15 points at the morning bell and then we may see stock specific move ahead of F&O expiry tomorrow and its roll over position.
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