MONEY MORNING
18 JUNE 2009 Following two days of steep losses, U.S stocks saw a lackluster outing
on Wednesday, with the major averages finishing on opposite sides of
the unchanged line as mixed trader sentiment regarding near-term
economic prospects and proposed financial system reforms from the
Obama administration weighted on the markets. While Dow Jones
dropped marginally by 0.09%, NASDAQ gained marginally by 0.66%.
Asian bourses are trading mixed with Nikkei down by 1.80%, Hang
Seng down by 1.23% and Singapore Nifty up by 20 points.
With mixed global cues, the domestic bourses might trade range bound
for the day. Technically spot nifty may take resistance at
4470/4585/4770 levels and support at 4285/4215/4035 levels.
POST-MARKET ANALYSIS:
Weak global cues and selling by foreign funds in last two days weighed
on investor sentiment, as the key benchmark indices tumbled recording
their steepest drop in seven weeks. While Sensex dropped 2.91%, Nifty
plunged 3.58%.
FIIs’ were net sellers both in equity and derivatives.
ADRs: Satyam Computers. (-8.16%), Tata Motors (-3.88%), Sterlite Ind.
(-2.74%) and Dr. Reddy’s Lab (+3.59%)
NEWS TO USE:POSITIVE FORTIS HEALTHCARE has emerged as the lead bidder to acquire a
part of Wockhardt Hospitals.
TATA ELXSI will aggressively pursue projects in the automotive and
aerospace sectors into fiscal 2010.
YES BANK would soon enter into retail brokerage business, which
would widen its fee-based income and mobilise low-cost deposits.
OMAXE has bagged a contract worth Rs 128.34 crore from UP Projects
Corporation Ltd for various construction related works.
BPCL has entered into an agreement with Engineers India Ltd for
commercializing the in-house technology developed by BPCL- Kochi
Refinery for removing hydrogen sulphide gas produced when crude oil
is heated to high temperature.
NEUTRALWOCKHARDT has sold its German subsidiary Esparma to another German company, Lindopharm
GmbH, a move that is in line with its plan to divest non-core businesses.
JET AIRWAYS and Kingfisher Airlines, have increased their fuel surcharge by Rs 400, as a result of
successive increases in the prices of Aviation Turbine Fuel (ATF).
M&M is betting its diesel pickup trucks can beat the Chinese to the US market.
The Ministry of Petroleum and Natural Gas has gone ahead and directed RIL to make additional
allocation of natural gas from its K-G basin find to nine power companies from the surplus available
because of no or low offtake by fertiliser units.
Daiichi Sankyo, the majority shareholder in Indian pharma major RANBAXY LABORATORIES, plans
to raise 100 billion yen through public issue of bonds.
SAIL has sought an increase in import duty on steel to discourage cheaper arrival of the commodity,
which has seen a surge in recent times, from countries like China and Ukraine.
JINDAL POWER is planning to launch an initial public offer (IPO) this financial year to part finance the
expansion programme of the parent firm.
Steel czar Lakhsmi N Mittal and partners OIL AND NATURAL GAS CORP (ONGC) and Total SA of
France will invest $150 million in exploration of oil in Nigeria.
MAN INDUSTRIES India is shelving its plan to build a $100-million plant in Arkansas, a year after
announcing the project that would have created over 250 jobs.
Textiles Minister Dayanidhi Maran pitched for a stimulus package for the textiles sector, which has
witnessed several job losses and negative growth owing to the slowdown in the major markets of the
US and EU.
SYNDICATE BANK has raised Rs 200 crore through issue of unsecured non-convertible sub-ordinated
debt (eligible for lower Tier-II capital).
HDFC and HDFC BANK are set to reduce interest rates on term deposits by up to 25 basis points
SBI is readying merger plans for two of its little-known subsidiaries, restarting a slow-moving and
controversial effort to consolidate its operations.
RCOM is in advanced with Franco American Alcatel-Lucent for a $500 million outsourcing deal to
manage its 70,000 – 80,000 kms of fibre optic cables across the country.
NALCO will take up after September the process of preparing a detailed project report for its proposed
2.5-lakh-tonne smelter unit in Indonesia, estimated to cost Rs 3,000 crore.
