MUMBAI: Stocks are expected to open higher on Thursday as global cues are supportive. However, given the F&O expiry due today, volatility is
“The market is taking time to consolidate and create a base before we head for a big rally. There is not much momentum seen in the markets ahead of the Union Budget and F&O expiry. Every dip in the market should be used as a buying opportunity around the support levels and every rise should be utilized as selling opportunity unless Nifty manages to hold above 4,950.
For today, support for Nifty seen at 4,805-4,785 and stiff resistance at 4,885 level, if Nifty holds above 4,885 then next level could be 4,950. Sensex is facing a stiff resistance at 16,330 level which is a crucial level to watch out,” said Nirmal Bang Securities.
US stocks climbed higher Wednesday on hopes of more cheap money after Federal Reserve Chairman Ben Bernanke reassured lawmakers interest rates will remain low.
The Dow Jones Industrial Average gained 91.75 points, or 0.89 per cent, to 10,374.16. The Standard & Poor's 500 Index rose 10.64 points, or 0.97 per cent, to 1,105.24. The Nasdaq Composite Index advanced 22.46 points, or 1.01 per cent, to 2,235.90.
Asian stocks were trading with minor losses Thursday. The Nikkei edged 0.02 per cent lower, Hang Seng shed 0.75 per cent, Straits Times lost 0.08 per cent and Taiex fell 0.09 per cent.
Back home, markets ended on a flat-to-negative note Wednesday, even as the railway budget was presented. Trade was choppy ahead of expiry of February F&O series Thursday and caution ahead of Union Budget on Friday.
Bombay Stock Exchange’s Sensex ended at 16,255.97, down 30.35 points or 0.19 per cent. It touched a low of 16187.44 and touched a high of 16328.44. National Stock Exchange’s Nifty closed at 4858.60, down 11.45 points or 0.24 per cent. It touched a low of 4834.65 and high of 4880.55. BSE Midcap Index was down 0.41 per cent and BSE Smallcap Index moved 0.61 per cent lower.
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Heard on the Street
Citi MD quits fin market jungle, heads for the wild
Nikhi Nagle, managing director and head of India equities at Citi, is learnt to have put in his papers, less than a year after taking charge of the broking operations in India. Speculation had been rife ever since Keshav Sanghi was hired as deputy head of India equities, that Mr Nagle may move back to the investment bank’s Hong Kong division.
Rated as one of the best traders in Citi, he was managing the bank’s proprietary book out of Hong Kong, before being made head of India equities in February 2009. Buzz on the Street is that the ace trader will devote time to his wildlife NGO for a while, which aims to increase awareness for India’s forests and tribal population.
Stimulus, but of a different kind
The sudden demand for Rural Electrification Corporation (REC) shares from foreign fund houses on the last day of subscription on Tuesday had tongues wagging. It turns out that the merchant bankers to the issue were subjected to some tongue lashing from senior officials in the divestment ministry for not having done a proper job of hard selling the offering.
The government must have been particularly stung by the fact that lesser-known companies were raising funds with ease, while companies with proven track records like NTPC and REC were being made to look ridiculous. Anyway, the “stimulus” seems to have had an immediate effect, with the lead managers going into an overdrive to drum up interest for the issue.
This is not the first time that merchant bankers are taking it on the chin from the government. In 2004, some prominent investment banks had been hauled by the minister for disinvestment, after it transpired that their broking arms were offloading shares of ONGC, which was in the midst of its follow-on issue.
Oricon Enterprises eyes real estate in Mumbai
Buz is that Oricon Enterprises, a logistics, trading and distribution company, is planning to develop its real estate in Mumbai. According to dealers tracking the stock, the company is planning to construct commercial real estate on its 2-acre plot in Worli, a prime location in Mumbai.
According to punters, the move will increase cash position of the company by about Rs 600 crore. Company officials were not available for comment. Shares of Oricon Enterprises ended 0.4% lower at Rs 348.20 on the BSE.
Contributed by Deeptha Rajkumar, Santosh Nair & Shailesh Menon
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Wealth Creation
Rural Electrification Corporation Ltd
India Auto Sector
India Budget Strategy
Mahindra and Mahindra
Godrej Properties
Railway Budget Highlights - 2010-11
Railway Budget 2010-11 Review
Daily Newsletter - Feb 25 2010
Rei Agro
Src: Economictimes, Deadpresident Blog
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