ShareKhan Newsletter Blog

Despite positive economic indicators from the US, the Sensex may slip lower today owing to the weak Asian cues, volatility to continue

Headlines for the day

Banks may get more time for NPA provisioning - Business Line

Bajaj Hindusthan earmarks Rs1600 crore for Power foray - Business Line

Infotech Enterprise plans two buy outs in the US for up to $40 million - Business Standard

ITC reviewing options on EIH equity - Business Standard

Oman Oil to buy new stake in BPCL JV - DNA Money

Events for the day

Major corporate action:

• Ex-date for the bonus of Reliance Industries Ltd. In the ratio of 1:1.

• Ex-date for the dividend of Gujarat State Petronet.

Pre-market report

Global signals

• The European indices rose by over 0.6% on average on the back of positive data coming from the US on the macro-economy, while the miners stock rises as gold touches new highs. FTSE 100 ended 0.77% higher at 5365.

• On Wednesday, the Dow closed at its 13-month high owing to the data positive on the macro economic front that indicated the stabilization of the labor and housing markets fading the concerns of the double-dip recession that improved the investors risk taking appetite for equities. The rising commodity price and the dollar that slumped to its 15 week low against various currencies helped the natural resources stocks to surge.

• The major Asian indices are again trading mixed, with Taiwan Weighted Nikkei 225 and Seoul Composite trading in the positive with marginal gains. While the remaining major indices are trading in the negative zone with l losses in the range of 0.48%-1.01%. At the time of writing this report, SGX Nifty gave away its yesterdays gains and was trading lower by 31 points.

Indian markets

• Sensex may open lower on the back of weak cues from the Asian front. While the volatility may continue to have its grip over the markets.

• Among the local indices, the Nifty could test the 5150-5182 range on the up side, while on the down side it could find support at 5050 and 5000. While the Sensex is likely to get support at 16900 and may face resistance at 17300.

Indian ADR's

• Among the Indian ADRs trading on the US bourses, all the ADRs closed in the green with gains except for the Satyam and Dr. Reddy's which declined by 7.92% and 0.46% respectively.

Commodity cues

• In the commodity space, the Crude oil prices recovers yesterday losses, with the Nymex light crude oil for January 2010 series suring by $1.88 to settle at $77.90 a barrel.

• In the metals space, the yellow metal eyes $1200, with the Comex Gold for December series surging heavily by $20.60 to settle at $1188.00 a troy ounce, while Comex Silver for December series rose marginally by $0.31 to settle at $18.80 to a troy ounce.

Daily trend of FII/MF investment in equities

• On November 25, 2009, FIIs were the net buyers of the Indian Stocks in the tune of Rs302.70 crore (with the gross purchase of Rs2342.70 crore and gross sales of Rs2040.00 crore).

• While the Domestic mutual funds mutual funds, on November 24, 2009, were the net seller of the stocks in the tune of Rs278.50 crore (with gross purchase of Rs599.00 crore and gross sales of Rs877.50 crore).