Bulls optimistic of new heights
Optimism is a cheerful frame of mind that enables a tea kettle to sing though it's in hot water up to its nose.
The markets may be overheated but nevertheless the bulls are singing. The music only promises to be louder. Market buzz is that the Nifty could test the 4,300 levels shortly. Can someone disconnect the power before that. Let's wait and watch. On the broader side, the market will continue to be driven by the news flow, particularly the results. Today, we have TCS and HCL Tech coming out with their earnings for the latest quarter. Both the results, which are expected to be good, will be out only after the markets are closed.
FIIs too have resumed their buying spree after the recent sell-off. Global cues are quite encouraging. Markets in the US, Europe and Latin America ended higher on Friday and Asian markets are also on fire this morning. Crude is trading under $54 per barrel. We expect the market to open higher, buoyed by last week's turnaround and the firm trend in global markets. However, with the Sensex and the Nifty quoting at all-time highs, we will see higher intra-day gyrations.
Other prominent companies to announce their results include: Geometric Software, AztecSoft, Tulip IT, Concor, Anant Raj Industries, Dalmia Cement, IPCL, Venus Remedies, RPG Transmission South India Bank and J&K Bank.
Sterlite Industries could rise after posting strong results. KS Oil is likely to announce a 30% increase in revenue guidance tomorrow. Shree Precoated Steel is another counter which is likely to see heightened activity. Ramsarup Industries' Board will meet today to consider issue of FCCBs / ADRs / GDRs; future expansion plans and increase in Authorised Capital.
Another stock to watch out for is Nestle India. The FMCG giant is likely to declare a bonanza for shareholders. Sesa Goa is likely to continue its bull run amid reports that Arcelor Mittal could end up buying the iron ore producer. Orchid Chemicals might gain. A financial daily reports that the Chennai-based company is looking for an acquisition in Europe.
Cairn India could rise amid reports that ONGC has agreed to share the cost of building the pipeline to evacuate crude from the company's Rajasthan blocks. According to a financial daily, the crude is likely to be sold to Reliance Industries and Essar Oil in Gujarat. ACC is likely to advance. A financial daily reports the cement major is planning to sell its 40% stake in a local joint venture to Germany's Almatis.
US stocks jumped on Friday, sending the Dow Jones Industrial Average to its second straight record close after a rally in technology and commodity shares. The Dow added 41.10 points to 12,556.08 while the S&P 500 was up 6.91 points to 1,430.73 and the Nasdaq advanced 17.97 points to 2,502.82. US financial markets will be closed on Monday for the Martin Luther King Jr. Day national holiday.
In European markets, UK's FTSE 100 closed up 0.1% to 6,239. The pan-European Dow Jones Stoxx 600 added 0.5% to 371.86. Germany's DAX Xetra 30 rose 0.3% to 6,705.17 and the French CAC-40 added 0.1% to 5,617.20.
In emerging markets, the Bovespa in Brazil gained 1% at 43,094 while the IPC index in Mexico added 0.3% to 26,324 and the RTS index in Russia advanced 0.2% to 1797.
Asian markets are going great guns this morning. The Nikkei in Tokyo is up 187 points at 17,244 while the Hang Seng in Hong Kong surged 295 points to 19,909. The Kospi in Seoul is flat at 1388 and the Straits Times in Singapore added 11 points at 3020.
Major Bulk Deals:
CLSA has bought Denso India while Templeton India has sold it; Morgan Stanley has picked up IFCI; UBS has purchased Ion Exchange and Shah Alloys; HSBC has bought KEI Industries but has sold Paramount Communications; Bear Stearns has purchased Radha Madhav Corp; Videocon Industries has picked up Vimal Oil.
Market Volumes:
The turnover on NSE was up by 1.47% to Rs100bn. BSE Bank index was the major gainer and gained by 6.79%. BSE Oil & Gas (up 2.77%), BSE PSU index (up 2.75%), BSE Capital Good index (up 2.24%), BSE Metal index (up 2.09%) were among the other major gainers.
Volume Toppers:
IFCI, Tata Teleservices, Reliance Communication, SAIL, Balrampur Chini, Cairn India, MTNL, ITC, Bajaj Hindusthan, Essar Oil, Bank of India, Ashok Leyland, Reliance Industries, Satyam, IDFC, Polaris, DCB, Indiabulls, HCC and Deccan Aviation.
Upper Circuit Filters:
Flex industries, Zandu Pharma, Havell's India, Shyam Telecom, Mercator Lines, Mcnally Bharat and Atlanta.
Brokers Recommendations:
Hindustan Zinc - Buy from Man Financial with target of Rs1050
Reliance Communication - Underperform from Kotak with target of Rs375
Long Term Investment:
Sobha Developers
Major News Headlines:
November Industrial Production rises 14.4% from year ago
ONGC’s overseas arm, has been invited by Denmark's Maersk Oil to participate in bidding for buying 30% stake in two Caspian Sea blocks
India, Malaysia, Philippines, Brunei ease flight restrictions
UTI Bank Q3 profit at Rs1.85bn (up 40%) and total income at Rs14.7bn (up 60%)
India to review Gasoline, diesel prices by January 31
Essar Group to invest Rs105bn in SEZ
Gati signs MOU with CREIL
Reliance to invest Rs670bn in Gujarat
Raipur Alloys sign agreement to install 600 MW power plant
Subex Azure to consider interim Dividend on 29th Jan
Marico Board approves splitting each share into 10
Mefcom Agro Industries approves free share plan, the ratio for the same would be decided later
Gateway Distriparks signs agreement with Punjab Conware
Sobha Developers wins order from BF Utilities