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Friday, December 02, 2011

Daily News Roundup - Dec 2 2011

Reliance Industries has told the government that already declining production at it’s the D6 block in offshore Andhra Pradesh, could plummet drastically if its investment plans are not approved forthwith. (ET)

Maruti Suzuki India said it had not indulged in any unfair labour practice by asking its workers to sign good conduct bonds, countering a statement made by labour and employment minister. (BS)

Mumbai International Airport Limited is from this Saturday putting Kingfisher Airline on a cash-and-carry mode, as it has not paid Rs900mn towards landing, parking and other charges. (ET)

BHEL has bagged a Rs400mn contract to supply equipment for a captive power plant being set up at global steel giant Arcelor Mittals plant in Ukraine. (BS)

Putting things in order!

Set all things in their own peculiar place, and know that order is the greatest grace.- John Dryden.

It appears to be consolidation time for the markets after coordinated central bank action lifted the sagging spirits briefly. The opening is likely to be tepid. Asian markets are mostly down following the overnight declines in Europe. US indices finished nearly flat. All eyes will be on the US monthly jobs report, to be released before the US market opens.

The good news is that FIIs have been net buyers in the last couple of sessions. Another encouraging tiding is that food inflation has softened lately. Hopefully, this trend will continue, giving much-needed elbow room to the RBI for keeping status quo on rates. Reduction in rates is still some time away though.

Market may start lower on weak Asian stocks

The market may open lower tracking weak Asian stocks, the day after a strong rally helped by a coordinated central bank action to cut the cost of funds in money markets. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a fall of 9.50 points at the opening bell.

IT stocks will be watched as the rupee surged 1.4% on Thursday and posted its largest single-session rise since May 2009, powered by hopes of dollar inflows, a day after the world's six major central banks announced co-ordinated action to help ease the euro zone crisis. The partially convertible rupee ended at 51.46/47 per dollar, after gaining as much as 51.40 -- a level last seen on November 18 -- in early trade. It had closed at 52.20/21 on Wednesday. A firm rupee adversely affects operating profit margins of IT firms as the sector derives a lion's share of revenue from exports.

Flat to negative start likely on global cues

The markets may see a flat to negative start in today's session. European officials agreed to strengthen a bailout fund and seek more aid from the IMF to lend to troubled economies.

Headlines for the day

ONGC investing Rs25,000 cr in 11 projects

Axis Bank to raise Rs1,500 crore from bonds

FDI to improve efficiency of retailers: Fitch

IRDA notifies IPO norms for life insurers

Unitech moves CLB seeking observer for Uninor's AGM