No Monday morning blues for bulls!
When somebody buys a stock it's because they think it's going to go up and the person who sold it to them thinks it's going to go down. Somebody's wrong.
Don't get caught on the wrong foot especially on Monday morning when everything seems bright for a change. Remain alert as there could be further downside to the market (not necessarily today). For today,, we see a positive opening on the back of the firm trend in global markets. However, things could get choppy as the day wears on.
The softening in FII inflows has probably allowed a few operators to play around with the market. According to reports, last week's sudden crash was part of a suspected manipulation. The CRR hike and the lower-than-expected IIP numbers were just triggers for pulling down the market. All of a sudden the bulls seem to be under pressure notwithstanding the bounce back in the last three days last week. The F&O cues are not encouraging either with Nifty Futures trading at 20 points discount to the Spot Nifty and open interest going down. Oil has rebounded above the $63 per barrel mark, after the OPEC proposed a cut in output in February.
All eyes will now be on the results for the October to December quarter and the Budget. The advance tax numbers are out and point to another quarter of strong earnings growth for India Inc. Reports suggest that SBI has paid much higher tax than last year. HPCL and BPCL have also paid tax versus nil last year. The final numbers will be available by tomorrow. The street will be keenly following this data. Still, one will have to wait for the actual quarterly results and guidance for an outlook on the health of India Inc. The recent fluctuations in the foreign capital inflows won't make matters easy.
FIIs were net buyers of Rs3.74bn (provisional) in the cash segment on Friday. In the F&O segment, they pumped in Rs2.51bn.
i-flex could gain amid reports that it is buying Indian and Asia-Pacific operations of US-based Capco. Zee Telefilms will surely be one of the most sought after stock as it starts trading as the demerged entity. New F&O contracts will also be introduced for Zee today. LT Overseas shares will get listed on the bourses today. BHEL is looking at a couple of domestic acquisitions, aside from its proposal to seek global M&As. ONGC is also likely to rise amid reports that it has struck huge gas reserves in the Bay of Bengal. Hindustan Zinc is likely to be under pressure as it is to cut prices from today. Infosys will get inducted in the Nasdaq 100 index from today.
US stocks gained last week as the latest economic reports seemed to add weight to a growing view that inflation is falling in the world's largest economy amid a slowdown in growth. And, though the Federal Reserve maintained status quo on interest rates and reiterated inflation risks, investors are still betting on a rate cut next year.
Both the Dow and the S&P 500 had their steepest weekly advance since Nov. 17, with the former closing at a new record. The Dow added 1.1% on the week to shut shop at 12,445.52, while the S&P 500 finished 1.2% higher at 1427.09, its highest since Nov 2000. The Nasdaq rose 0.8% to 2457.20.
European shares closed in the green on Friday. The German DAX Xetra 30 closed up 0.6% at 6,588.83, the French CAC-40 increased 0.6% to 5,541.62 and the UK-based FTSE 100 advanced 0.5% to 6,260. The pan-European Dow Jones Stoxx 600 index rose 0.5% to 366.10.
Asian exporter stocks rose on Monday after a report showed that US consumer prices were unchanged last month, raising speculation that the Fed will cut interest rates next year. Sony and Samsung Electronics gained.
The Morgan Stanley Capital International Asia-Pacific Index gained 0.2% to 138.54 as of 10:45 a.m. in Tokyo, rising for the fifth day in a row. Stock indices in New Zealand and the Philippines were little changed, while elsewhere in the region they rose.
Japan's Nikkei added 42 points to 16,956, while the Hang Seng in Hong Kong fell by 33 points to 19,077.
The Bank of Japan will probably keep interest rates unchanged tomorrow as it is looking for more evidence that world's second-largest the economy is recovering after being stagnant for several years.
Major Bulk Deals:
Prudential ICICI MF has bought Clariant Chemicals while Templeton MF has sold it; Macquarie Bank has picked up Federal-Mogul; Citigroup has purchased Gayatri Projects; ABN AMRO Bank has bought GVK Power; Deutsche MF has sold JHS Svenguard; Bear Stearns has bought RPG Transmission; Citicorp Finance has sold Suzlon; ABN AMRO Bank has sold Zee Telefilms.
Insider Trades:
Orient Abrasives Limited: Rajendra Kumar Rajgarhia, Chairman has purchased from open market 20000 equity shares of Orient Abrasives Limited on 13th December, 2006.
Asian Paints Limited: Ashwin S Dani, Vice Chairman & Managing Director has sold 109500 equity shares of Asian Paints Limited on 14th December, 2006.
Dwarikesh Sugar Industries Limited: Gautam R. Morarka, Chairman & Managing Director has purchased from open market 10000 equity shares of Dwarikesh Sugar Industries Limited on 13th December 2006.
Mahindra & Mahindra Ltd: Bharat N. Doshi, Director has sold in open market 4000 equity shares of Mahindra & Mahindra Ltd on 13th December 2006.
Market Volumes:
The turnover on NSE was up by 7.8% to Rs87.27bn. BSE Metal index was the gainer and gained by 3.94%. BSE Consumer Durable index (up 1.96%), BSE Bank index (up 1.38%), BSE Technology index (up 1.27%) and BSE Auto index (up 0.80%) were among the other major gainers.
Volume Toppers:
R Com, TTML, IFCI, India Cements, Tata Steel, Gujarat Ambuja, HLL, Satyam Computer, Century Textile, Hindalco, Bank of India, Hindustan Motors, Polaris, IVRCL Infrastructures, Gitanjali Gems, Bajaj Hindustan and Suzlon Energy.
Upper Circuit Filters:
BPL, Ltd, Flex Industries, Sonata Software, Atlanta and Nesco.
Delivery Delight:
APIL, Apollo Tyres, Aurobindo Pharma, Bajaj Auto, Bajaj Hindustan, BEML, Bharti Airtel, Crompton Greaves, Cummins, Educomp Solutions, Federal Bank, Gitanjali Gems, Glenmark, Godrej Industries, Grasim Industries, GTC Industries, Hindalco, India Cements, India Infoline, Infosys, M&M, McDowell & Co, ONGC, Reliance Capital, R Com, Satyam, Tata Motors and Titan.
Brokers Recommendations:
Tata Steel - Outperformer from Enam
Cipla - Outperform from Credit Suisse
Long Term Investment:
Satyam Computers
Major News Headlines:
Hindustan Zinc cuts prices of the non-ferrous metal by Rs800 a ton
SBI buys 76% in PT Bank IndoMonex, Indonesia
Infosys to invest Rs 4bn for expansion
Wipro to build core business application for ITV
Marico to buy personal care co in Bangladesh: reports
BPCL Board to meet on Dec 26 to consider dividend
Pantaloon will sell shares at a 5.7% discount to QIBs