NSE enables investors to access US market

NSE enables investors to access US market

NEW DELHI: In a major development that will allow Indian investors access to the American market, the country's top bourse NSE has decided to

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begin trading in futures contracts of Dow Jones Industrial Average (DJIA) and S&P 500 - the two key indices of the US market.

At the same time, Nifty - NSE's benchmark index comprising India's 50 top blue-chip stocks - would be traded on the Chicago Mercantile Exchange of the US.

The listing and trading arrangement for these indices, which are subject to regulatory approvals in India and the US, was announced by National Stock Exchange and CME in a joint statement on Wednesday.

Besides the cross-listing and licensing agreements, the two bourses have also entered into a "memorandum of understanding with respect to other areas of potential co- operation including related to development and distribution of financial products and services."

NSE's affiliate India Index Services and Products Ltd (IISL) has granted exclusive licence for Americas and Europe to CME Group for trading of Nifty 50.

Besides, NSE also announced an agreement to explore listing and trading of more India-linked products on Singapore Exchange Ltd, which already has a licence to trade in Nifty 50.


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'Man Industries a very strong stock among small-caps'


hardul Kulkarni, Sr. Technical Analyst, Angel Broking

Anyone of these stocks, Mukta Arts, Digjam that you are tracking on the charts?

Shardul Kulkarni : I would say that Digjam is one of the stocks that can move actually a little bit downwards rather than moving upwards because if you see the volumes have come on the big red candles that have been formed, so I would not be too positive on this stock unless and until it actually crosses the upside levels of 16-16.5. Mukta Arts I do not track.

Do you track Man Industries on the charts?

Shardul Kulkarni : Yes, Man Industries, one of the very strong counters in the small-cap space. I would say that the company has recently got an order and the stock is factoring in all the positives, so presently I would say that the stock is a buy on declines and not a buy at current levels of 76-77. If the stock does decline to around 66-67, then yes, the long term pattern is unfolding in a very positive manner. So presently, we would buy the stock on declines not at current levels but yes, overall the pattern is very strong. The weekly and monthly charts clearly show strong upside from current levels, so you would say it is a buy on declines.

Charts, what are they saying today for Astral Poly?

Shardul Kulkarni : Presently, if you look at the charts, you see the volumes are very low on this particular stock, probably the monthly volumes are less than 20 lakh shares in the full month. So on the volume front, the volumes are not too attractive to go in and buy this particular counter but purely on the price pattern, the stock is very strong. It clearly shows a strong trend line on the lower side where the support existed around 160-165 levels, so probably someone who wants to buy into this particular counter should look at buying on dips near to around 170 levels. The stop loss for this trade should be at around 160 levels

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Texmo Pipes & Products attracts 52% premium

Positional calls: Gujarat Gas, Polaris Software Aditya Birla Money

Technical calls: KPIT Cummins, Allahabad & ICICI Bank HDFC Sec




Src: ET, DP blog and etc

Heard on the Street

Heard on the Street


Shriram Transport planning NCD issue

These are good times for small-ticket finance and leasing companies, thanks to difference between banks’ borrowing rates and high lending rates of these firms. These firms have taken advantage of the sufficient liquidity in the banking system by borrowing at low rates and lending it to its clients at a much higher rate, say analysts.

And even if cost of borrowing from banks come down, these players usually do not pass over the benefits to loan consumers. Most leasing companies keep the rate differential steady in the range of 7 and 15%.

Seeing good lending business prospects ahead, Shriram Transport is believed to be coming out with an NCD issue over the next few weeks. While it is not known how much the company intends to raise through this issuance, distributors expect the yield on the NCD issue would be in the range of 9- 10% per annum. Shares of Shriram Transport Finance Company ended 5% higher at Rs 499 on the BSE.

Local FIs, brokers stop bulk purchases

Domestic institutions and top brokerages that run proprietary books are likely to reduce their participation in the market to account their books for the fiscal ending March 31.

Market sources say, top brokers, who have sizeable proprietary books, have already stopped making bulk purchases in the market. Brokers say that most of the proprietory books and institutional funds are said to be in no mood to invest in the markets also that valuations are turning costlier by the day.

Proprietary books constitute approximately 30% of the total derivative volume, according to industry estimates.

Punters make a dash for Pricol for auto part play

Das board instruments major, Premier Instruments and Controls (Pricol) is said to be back on the radar of some savvy traders, on the auto component play. The share which has been trading between Rs 23-Rs 25 band in the recent past is said to be witnessing informed buying at lower levels.

Analysts maintain the company is a turnaround story and is gaining traction in a segment which has little competition. Word on the street is that the company is looking for fund infusion to retire some of its debt on books.

Whether the company would look to do this through the existing joint venture route or is in talks with new players could not be confirmed. Pricol shares fell 3% to close at Rs 23.90 on Tuesday.

(Contributed by Shailesh Menon, Apurv Gupta & Deeptha Rajkumar)


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Src: ET and DP blog