Don't worry, stay in control
It makes no sense to worry about things you have no control over because there's nothing you can do about them, and why worry about things you do control? The activity of worrying keeps you immobilized.
Are Indian bulls finally tiring. May be. May be not. The immediate trend is not particularly clear, though the fundamentals remain strong as ever. The rally has not been as broadbased as earlier. If inflows from overseas continues at the current speed, it would be hard to stop the bulls. Still, it pays to be alert and look for signs of weakness. The Sensex has crossed the 14k mark, and though the temptation to push it towards 15k is strong, one should not get carried away. From here on one may see some profit taking after every rise. And even if you don't see it happening, do it yourself. Start locking in some gains at regular intervals and wait for a dip to resume buying. We expect to see a cautious opening on the back of mixed global cues. After that trading could turn volatile like yesterday.
The US market ended down overnight, while the Asian markets are mixed in the morning trade. Crude oil is hovering above the $62 per barrel mark. Markets were also lower in Europe and Latin America.
FIIs were net buyers of Rs3.04bn (provisional) in the cash segment yesterday. In the F&O space, they pulled out Rs1.96bn. On Tuesday, Mutual Funds pumped in Rs505mn in the cash segment. The FII figure for the same day is not available.
UTV could gain on expectations that the company is set to acquire a gaming company in India. The company is also expected to wrap up funding for a full length Hollywood animation film.
Cement stocks are gaining on expectations of another price lise. Buzz of M&A activity continues unabated.
Mutual funds investors are holding on to their positions. No signs of profit booking at higher levels. The tragedy is when markets correct sharply they end up selling, like many did in May. The mutual fund industry grew by Rs320.37bn between November and December when Sensex gained 734 points to reach 13,700 levels.
Aditya Birla Group Company Idea Cellular has approached market regulator SEBI for clearance of an initial public offering, hoping to mop up an estimated Rs25bn.
SEL Manufacturing Company Ltd, manufacturer and exporter of cotton yarn, knitted fabrics and garments, has filed its draft red herring prospectus with SEBI to enter the capital market with an IPO. The company proposes to offer 53.99 lakh equity shares of Rs 10 each through a 100 per cent book building process to part finance its expansion plan of Rs1.84bn.
The Central Board of Trustees (CBT) of the employees' Provident Fund Organisation (EPFO) will meet on Thursday to decide on the rate of interest to be paid to the nearly four crore provident fund subscribers for fiscal 2006-07.
The Finance Minister, Mr P. Chidambaram, called for creation of an informed public opinion on financial sector reforms in the absence of political consensus on the issue.
With West Bengal waking up to the potential of ICT and bringing niche capability in the Indian market, the country's software exports should be pegged higher at $200 billion by 2010 as against the earlier projection of $100 billion, according to the President, Mr A.P.J. Abdul Kalam.
Market Volumes:
BSE Consumer Durable index was the major loser and lost 2.47%. BSE Pharma index (down 0.72%), BSE Auto index (down 0.69%), BSE FMCG index (down 0.60%) and BSE PSU index (down 0.33%) were among the other major losers.
Volume Toppers:
SAIL, Adani Enterprises, IDBI, Satyam Computer, Voltas, R Com, DCB, Tata Steel, Gujarat Ambuja, Zee Telefilms, Rain Calcining, Reliance Industries, ITC, Indian Hotels, Century Textiles, HLL.
Delivery Delight:
BHEL, CEAT, Century Textiles, Dabur India, GTC Industries, HLL, India Infoline, Indian Hotels, Infosys Technologies, McDowell & Co, Nitco Tiles, ONGC, TCS, Tata Tea and Yes Bank.
Upper Circuit Filters:
Adani Enterprises, Ambalal Sarabhai, GTC Industries, Chowgule Steamship Ltd, Flex Engineering, Atlanta, Pantaloon Retail and Nirlon Ltd.
Brokers Recommendations:
Infosys – Outperform from CLSA
Long Term Investment:
Gayatri Projects
Major News Headlines:
Satyam sets up Offshore Development Center for Sony Europe
Indian Oil in talks with Reliance for City Gas distribution
TCS wins contract from United Biscuits, UK
GMR Infra unveils master plan for re-development of Delhi airport
Panacea Biotec forms JV with the UK's Cambridge Biostability
Rain Commodities to consider hike in FII limit on Dec 11
Dabur Pharma gets USFDA nod for Cancer drug
Ispat plans expanding steel capacity to 5mn tons
Bayer Diagnostics Board declares interim dividend of Rs97
Royal Orchid Hotels signs an exclusive territorial agreement with Ramada Worldwide