Slight rebound on the cards

No matter how far life pushes you down, no matter how much you hurt, you can always bounce back. - Sheryl Swoopes

The market is looking for some excuses to think that the deepening European debt crisis may see some respite. A report that Italy has asked China to make "significant" purchases of Italian debt, brought some cheer; so much so that US markets staged a comeback.



Asian markets have also rebounded with Japan’s Nikkei 225 in positive zone after hitting a two-and-a-half-year low. South Korea’s Kospi remained closed for the Chusok holiday, while Hong Kong’s equity markets were shut Tuesday for the Mid-Autumn Festival.

European Central Bank President Jean-Claude Trichet’s statement that the region has enough ‘weaponry’ to stop its debt crisis from spreading brought temporary relief.

That makes a perfect case for a better opening at the Indian bourses. With industrial growth plunging to a 21-month low of 3.3% in July, many may hope that the Reserve Bank of India's monetary policy review meeting may see a pause on rising interest rates.

The rupee fell to 14 months low; it rupee opened at 46.93 on Monday and closed at 47.22.

Besides, global markets also have their eyes and ears on a meeting of euro zone finance ministers on Friday, which US Treasury Secretary Timothy Geithner is also set to attend.

The Dow gained 69 points after falling 167 points earlier. The S&P 500 added 8 points while the Nasdaq was up 27 points.

There are reports that France's top banks could face a credit downgrade from Moody's.

In other news in the media, Multi Commodity Exchange of India (MCX) has received the SEBI approval for its proposed initial public offer.

Gold prices fell to Rs 28,245 per 10 gram in futures trade.

Suzuki Motor Corp on Monday said it wanted to dissolve its alliance with Germany’s Volkswagen AG, putting an end to the two-year-old cooperation.

State Bank India said its rights issue proposal is on course and it could happen in another 2-3 months.

Pipavav Defence and Offshore Engineering Company Ltd will be partnering with Mazagon Dock Ltd to build warships for the Indian Navy.

ICICI Bank plans to raise funds through foreign currency bonds in the coming quarters to meet the funding needs of Indian companies. (BS)

The Finance Ministry has liberalised FII (foreign institutional investors) investment in long-term infrastructure sector bonds issued by corporates.