WORLD MARKET
Asian stocks stumbled and the dollar stood tall on
Thursday after minutes from the U.S. Federal Reserve's
October meeting hinted at stimulus tapering, while the
euro was pressured by speculation of more easing by the
European Central Bank.
U.S. stock index futures were little changed Wednesday
ahead of the release of stimulus-influencing inflation data
and the minutes from the most recent Federal Reserve
policy-making meeting.
European shares inched higher on Wednesday,
recovering some of their poise after weakness in the
previous session, with traders citing a report that the
European Central Bank was mulling setting negative
deposit rates.
MARKET OUTLOOK FOR TODAY
Today, Indian equities are likely to lower due to global
weakness. Nikkei 225 is trading with broad based gains
ahead of a Bank of Japan policy decision due later in the
day. Weakness in the Japan's local currency further
supported the sentiments, boosting outlook for the
exporter stocks. With no major event back-home,
investors will look after the overseas trading for taking
directions for trading.
The US stocks closed lower on Wednesday, with the
S&P500 extending losses into a third day, after minutes
from the latest Federal Reserve meeting showed the
central bank could cut back on its bond-buying program
even if the job market doesn't improve dramatically.
Economists in US feel that reports could support markets
as they don't provide extra pressure for the Fed to tighten
policy. The medium-term outlook will remain positive as
the Nifty has retraced 61.8% of the previous rally from
4770 to 6229. The momentum indicator on the weekly
chart has given a positive crossover. However, News
based stocks to watch out for today may be RIL, NTPC,
HDFC, Bhushan Steel, Essar Oil, Jet Airways, Bombay
Dyeing and Ipca lab among others.
SGX nifty trading negative by about 24 points at this
morning may also push our market down at the opening
bell but later we may see stock specific move based on the news flow during the day.
MAJOR NEWS
The Supreme Court made strong observations against the Sahara group after the Securities and Exchange
Board of India said it was not satisfied with the documents given by the group.
Many big foreign banks, including Citibank, Standard Chartered and HSBC group, may not get unfettered branch
access in India, even if they opt for the wholly-owned subsidiary route. This is because the countries where
these lenders are headquartered have set stiff rules for branch expansion by foreign players. So, when these
lenders look to expand footprint here, the ‘reciprocity’ clause — one of the cardinal principles in the latest
guidelines, released by the Reserve Bank of India (RBI) earlier this month — could prove a major hurdle.
ECONOMY NEWS
Petroleum Minister said that diesel prices would be completely decontrolled within the next six months.
Five months after the scheme to directly transfer subsidy for cooking gas was launched, the finance ministry is
yet to reimburse about Rs 900 crore to oil marketing companies (OMCs) for the funds they have transferred to
consumers
The Centre will take a call on a host of measures - including revising the duty drawback rate for sugar exports,
providing interest-free loans for millers and lowering the time frame for re-export of imported raw sugar - in
eight to 10 days to bail out the sector.
Co-operative sugar mills in Gujarat — among the top five sugar producing states with 17 factories that can
produce 65,000 tonnes a day — have managed to withstand the squeezed margins.
INTERNATIONAL NEWS
Federal Reserve Chairman Ben S Bernanke said the Fed will probably hold down its target interest rate long
after ending $85 billion in monthly bond buying, and possibly after unemployment falls below 6.5 per cent.
A surge in car shipments spurred Japanese exports to their biggest annual increase in three years in October,
suggesting a gradual pick up in global demand will help underwrite a sustainable recovery in the world's thirdlargest
economy.
Four Senate Republicans say they're inclined to support Janet Yellen to be chairman of the US Federal Reserve,
leaving her nomination one vote shy of the 60 she needs to be confirmed.
COMPANY NEWS
Jet Airways concluded the sale of 24 per cent equity stake in the airline to Etihad Airways for Rs 2,057 crore.
With at least three big-ticket stake sale plans lined up over the next few weeks, the Centre’s divestment drive is
set to get a boost. Bankers claim they have received good response to the road shows held abroad for Coal
India, IndianOil and PowerGrid.
The government has slapped an additional penalty of $792 million on Reliance Industries for producing less than
targeted natural gas from its eastern offshore KG-D6 block.
Sistema Shyam Teleservices, which operates under MTS brand in India reported a third quarter net loss at Rs
760 crore, 53 per cent higher than a loss of Rs 495 crore posted in the corresponding quarter last year.
Ipca Labs plans to make male hormone APIs in Gujarat. Invests Rs 50 cr in Nandesari facility; began production
of female hormone APIs last month
India is the eighth fastest growing source of foreign direct investments (FDIs) in the United States, according to John M McCaslin, minister counselor for commercial affairs, US Commercial Service, Delhi.
NIFTY TECHNICAL LEVELS
Technically, RSI was at 51, MACD positive below signal line; India VIX was at 21~ which all Indicate
that market may consolidate at these levels in the shorter term.
In the last trading session, Nifty closed below its short term MA of 5DMA (6112) and 20DMA (6172)
but still trading above 50DMA (6037) and 200DMA (5864) which indicate that market is still positive in
the longer term.
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 Corpn,
PTC India, Reliance Inds., PNB, SBI, TVS Motors, Yes Bank, Castrol India, SKF India.
Asian stocks stumbled and the dollar stood tall on
Thursday after minutes from the U.S. Federal Reserve's
October meeting hinted at stimulus tapering, while the
euro was pressured by speculation of more easing by the
European Central Bank.
U.S. stock index futures were little changed Wednesday
ahead of the release of stimulus-influencing inflation data
and the minutes from the most recent Federal Reserve
policy-making meeting.
European shares inched higher on Wednesday,
recovering some of their poise after weakness in the
previous session, with traders citing a report that the
European Central Bank was mulling setting negative
deposit rates.
MARKET OUTLOOK FOR TODAY
Today, Indian equities are likely to lower due to global
weakness. Nikkei 225 is trading with broad based gains
ahead of a Bank of Japan policy decision due later in the
day. Weakness in the Japan's local currency further
supported the sentiments, boosting outlook for the
exporter stocks. With no major event back-home,
investors will look after the overseas trading for taking
directions for trading.
The US stocks closed lower on Wednesday, with the
S&P500 extending losses into a third day, after minutes
from the latest Federal Reserve meeting showed the
central bank could cut back on its bond-buying program
even if the job market doesn't improve dramatically.
Economists in US feel that reports could support markets
as they don't provide extra pressure for the Fed to tighten
policy. The medium-term outlook will remain positive as
the Nifty has retraced 61.8% of the previous rally from
4770 to 6229. The momentum indicator on the weekly
chart has given a positive crossover. However, News
based stocks to watch out for today may be RIL, NTPC,
HDFC, Bhushan Steel, Essar Oil, Jet Airways, Bombay
Dyeing and Ipca lab among others.
SGX nifty trading negative by about 24 points at this
morning may also push our market down at the opening
bell but later we may see stock specific move based on the news flow during the day.
MAJOR NEWS
The Supreme Court made strong observations against the Sahara group after the Securities and Exchange
Board of India said it was not satisfied with the documents given by the group.
Many big foreign banks, including Citibank, Standard Chartered and HSBC group, may not get unfettered branch
access in India, even if they opt for the wholly-owned subsidiary route. This is because the countries where
these lenders are headquartered have set stiff rules for branch expansion by foreign players. So, when these
lenders look to expand footprint here, the ‘reciprocity’ clause — one of the cardinal principles in the latest
guidelines, released by the Reserve Bank of India (RBI) earlier this month — could prove a major hurdle.
ECONOMY NEWS
Petroleum Minister said that diesel prices would be completely decontrolled within the next six months.
Five months after the scheme to directly transfer subsidy for cooking gas was launched, the finance ministry is
yet to reimburse about Rs 900 crore to oil marketing companies (OMCs) for the funds they have transferred to
consumers
The Centre will take a call on a host of measures - including revising the duty drawback rate for sugar exports,
providing interest-free loans for millers and lowering the time frame for re-export of imported raw sugar - in
eight to 10 days to bail out the sector.
Co-operative sugar mills in Gujarat — among the top five sugar producing states with 17 factories that can
produce 65,000 tonnes a day — have managed to withstand the squeezed margins.
INTERNATIONAL NEWS
Federal Reserve Chairman Ben S Bernanke said the Fed will probably hold down its target interest rate long
after ending $85 billion in monthly bond buying, and possibly after unemployment falls below 6.5 per cent.
A surge in car shipments spurred Japanese exports to their biggest annual increase in three years in October,
suggesting a gradual pick up in global demand will help underwrite a sustainable recovery in the world's thirdlargest
economy.
Four Senate Republicans say they're inclined to support Janet Yellen to be chairman of the US Federal Reserve,
leaving her nomination one vote shy of the 60 she needs to be confirmed.
COMPANY NEWS
Jet Airways concluded the sale of 24 per cent equity stake in the airline to Etihad Airways for Rs 2,057 crore.
With at least three big-ticket stake sale plans lined up over the next few weeks, the Centre’s divestment drive is
set to get a boost. Bankers claim they have received good response to the road shows held abroad for Coal
India, IndianOil and PowerGrid.
The government has slapped an additional penalty of $792 million on Reliance Industries for producing less than
targeted natural gas from its eastern offshore KG-D6 block.
Sistema Shyam Teleservices, which operates under MTS brand in India reported a third quarter net loss at Rs
760 crore, 53 per cent higher than a loss of Rs 495 crore posted in the corresponding quarter last year.
Ipca Labs plans to make male hormone APIs in Gujarat. Invests Rs 50 cr in Nandesari facility; began production
of female hormone APIs last month
India is the eighth fastest growing source of foreign direct investments (FDIs) in the United States, according to John M McCaslin, minister counselor for commercial affairs, US Commercial Service, Delhi.
NIFTY TECHNICAL LEVELS
Technically, RSI was at 51, MACD positive below signal line; India VIX was at 21~ which all Indicate
that market may consolidate at these levels in the shorter term.
In the last trading session, Nifty closed below its short term MA of 5DMA (6112) and 20DMA (6172)
but still trading above 50DMA (6037) and 200DMA (5864) which indicate that market is still positive in
the longer term.
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 Corpn,
PTC India, Reliance Inds., PNB, SBI, TVS Motors, Yes Bank, Castrol India, SKF India.
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