Tuesday, November 26, 2013

Morning Triggers 26/11/2013

WORLD MARKET
Oil prices recovered on Tuesday after the previous
session's slide as traders questioned how quickly the
Iranian nuclear accord could translate into higher supplies,
while Asian shares got off to a cautious start.
European shares headed towards a five-year high and
Germany's DAX set a new record on Monday, with airline
stocks and French car makers getting buoyed by the
nuclear deal between Iran and world powers.
The Dow industrials eked out a slim gain on Monday to
end at another record high, after the Nasdaq topped 4,000
for the first time in 13 years and then slipped to close
below that level.

MARKET OUTLOOK FOR TODAY
Indian markets may see a soft opening today tracking a
subdued trend from fellow Asian peers. Further, the
domestic markets may witness some profit-booking at
existing levels after yesterday’s rally when the 30-share
Sensex surged by 387 points as global crude prices
slumped after the Iran nuclear deal, fueling hopes that
India may contain its ballooning current account deficit.
Most Asian stocks were trading lower today as investors
booked profits after valuations rose close to the highest
level in six months, while a batch of weak US economic
data also weighed on sentiment.
US stocks ended little changed on Monday as investors
digested weak housing data that clouded the outlook for
the world’s biggest economy. US pending home sales fell
for a fifth straight month in October 2013 amid rising
borrowing costs. S&P 500 ended lower as investors booked
profits following seven straight weekly gains. Energy
shares fell as Iran’s agreement to curb its nuclear program
drove down global crude oil prices. Dow Jones Industrial
Average and Nasdaq Composite ended a tad higher on
Monday. The stocks of Alcoa and Caterpillar surged as
analysts recommended buying the companies’ shares.
The FIIs on 25/11/2013 stood as net buyer in equity for
Rs. 837.80 Crores. DIIs were net seller in equity for Rs.
792.43.
SGX Nifty is trading at 6095.50 down by 39 points
from previous trading session which suggest that markets are set to open on a negative note.

MAJOR NEWS
A slow market may have dampened automobile companies' sales, but not their plans. The twelfth edition of the
India Auto Expo, to begin in February next year, is likely to see a big splurge of sports utility vehicles (SUVs)
and multi-purpose vehicles (MPVs) by top companies.
The truce arrived at between Tehran and six world powers over the former’s nuclear programme is set to end
the long-standing payment crisis for Indian oil companies, which are hoping to soon restart paying for crude oil
imported from Iran in dollars or euros.
ECONOMY NEWS
The economy may have continued its sluggish run during the quarter ended September 2013, with many
economists predicting sub-five per cent growth for the fourth consecutive quarter. Data on gross domestic
product (GDP) for the September quarter are slated to be released on Friday.
The deadlock between the UP government and sugar mills continued, after the mill owners refused to start
crushing operations as they were unhappy with the state advisory price (SAP) of Rs 280 a quintal for sugar cane
in 2013-14. Mill owners maintained they could not pay more than Rs 225 a quintal this year.
The Jawaharlal Nehru Port Trust (JNPT) has agreed to extend financial assistance of Rs 200 crore to the lossmaking
Mormugao Port.
The trade balance between April and October was reported at $90.7 billion and if the government could contain
the trade deficit to $150-155 billion this fiscal, it will be good for growth, said finance minister P Chidambaram.
INTERNATIONAL NEWS
Marathon talks on the World Trade Organization’s first-ever worldwide trade reform in Geneva failed early on
Monday to agree on a text to put to ministers who meet in Bali next month.
French automakers PSA Peugeot Citroën and Renault SA and companies that transport Iranian oil are poised to
benefit from the six-month accord to rein in Iran's nuclear program while easing trade sanctions.
Brent crude fell by as much as $3 a barrel on Monday, before paring losses, as a breakthrough nuclear deal
between world powers and Iran over the weekend led to expectations for an increase in supply.
COMPANY NEWS
Billionaire Anil Agarwal’s Cairn India will spend about $1 billion to buy back shares giving him greater control
over the company as environment rules derail his mining business, two people familiar with the plan said.
Jet Airways’ plan to sell or lease five of its wide-body Airbus A330 planes to Kuwait Airways is in trouble, with
the Kuwait government suspending its flag carrier’s chairman, Sami Al-Nesif.
Backed by a significant rise in tractor sales, automobile major Mahindra & Mahindra has pipped two-wheeler
maker Bajaj Auto in the market capitalisation league tables at Rs 58,000 crore.
Information technology (IT) company iGate would move from a functional to a vertical structure, based on
industries and geographies.
Two-wheeler giant Honda Motorcycles and Scooters India (HMSI), which is planning to park its plant in the area,
is learnt to have initiated discussions related to finalising details of the state support agreement (SSA) with the
Gujarat government.
India’s leading software firm Tata Consultancy Services is likely to open its largest delivery centre at Adibatla
here by early next fiscal.
Fundamental picks for Investors:
BHEL, Bajaj Finance, Cipla, Corporation Bank, DB Corp., Engineers India, Exide Inds., Federal Bank,
GMDC, Goodyear India, HT Media, IDFC, Ingersoll-Rand, Jyoti Structures, Kalpataru Power, KSB
Pumps, LIC Hsg Finance, McNally Bharat, Navneet Education, Power grid.

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