Verdict is clear

Each man must reach his own verdict, by weighing all the relevant evidence. Leonard Peikoff.

The excruciatingly long wait over the Ayodhya dispute has ended with the Allahabad High Court declaring a split but pragmatic verdict. The nation has shown maturity and restraint in reacting to the verdict and the same is expected of the markets.



Thursday was Judgment Day for bulls too, who will hope that the status quo on the bourses continues in October as well. If the F&O rollovers are any indication, traditionally defensive sectors like FMCG and Pharma seem to be on the offensive.

The opening is expected to be a positive one despite the overnight fall on Wall Street and weakness in Europe. Asian markets are positive to flat. China and Hong Kong are shut for national holidays.

In October, corporate results will be closely followed as would be the regular economic statistics. For the day, the Nifty rebalancing, manufacturing PMI reports, trade data, auto sales and cement volumes will be watched.

After a spectacular September, the market may witness some correction but on the whole the undercurrent is fairly strong. How FII inflows unfold and external environment shapes up will be crucial.

The FIIs were net buyers of Rs24.96bn in the cash segment on Thursday (provisionally), according to the NSE web site. Local funds were net sellers of Rs15.21bn. In the F&O segment, the foreign funds were net sellers at Rs9.08bn.

Important News Snippets For The Day:

L&T bags Rs7bn order from various customers for construction related work.

L&T infra files for Rs4.5bn bonds public issue.

SAIL to add 1,725 MW of power generation capacity.

ICICI Bank estimates loan growth in the current financial year at around 18; higher than an earlier forecast of 15.

M&M enters motorcycle segment with two models.

SBI hikes deposit rates by 2575 bps, keeps base rate unchanged.

PNB raises base rate by 50bps to 8.5.

Maruti Suzuki expects to record its highest-ever monthly sales in September with a growth of 32-33% yoy.

Tata Motors will commercially launch the Tata Aria, a crossover of a sedan and a sports utility vehicle, on October 11.

Axis Bank revised its base rate to 7.75% from 7.5%.

IDBI Bank revised its base rate upward by 0.50% to 8.5%.

Reliance Capital has acquired a 4.98% stake in an infra developer Trinethra Infra through an open market transaction.

ADAG to acquire 26% in ICEX, gets FMC approval.

Piramal Healthcare to formally close its Vitamin A factory in adjoining Thane tomorrow.

Kingfisher Airlines has decided to revamp its capital structure by converting 30 of total debt into equity to reduce the loan burden.

IVRCL Assets raises Rs2.5bn from IFCI.

Hindustan Motors plans to double its capacity at its Tiruvallur facility to 24,000 units to support new launches.

Aarvee Denims has decided to infuse around Rs1.2BN for expanding its manufacturing capacity in two phases.

Firstsource announced a fiveyear outsourcing partnership with Barclaycard.

Food inflation increased to 16.44% in the week ended September 18.

India’s current account deficit rose sharply in the quarter ended June 30 to US$13.7bn from US$4.5bn a year ago due to lower invisible surplus and growth in imports outpacing exports.

Fiscal deficit falls 17 to Rs1.5tn during Apr-Aug 2010.

External debt increased by 4.1% in the first quarter of this year over the level recorded as at the end of March 2010.

Commodity market regulator FMC today lifted the ban on trading in sugar futures