Market Outlook 10th Nov 2009

INTRADAY calls for 10th Nov 2009
+ve Sectors & Scripts : Bank, Fertilizers CanBank,Albk
Buy HDFCBank-1707 for 1765-1789+ with sl 1690
Buy IRB-267 for 276-283+ with sl 263

Buy Hoteleela-39 for 42+ with sl 37
Buy Lichousing-892 for 945-980-1000+ with sl 865 [positional]
Buy RECLtd-215 for 229-232+ with sl 211

 

Ambani Brothers looking for out-of-court settlement – DNA ((reports adds Deepak Parekh, KV Kamath and bankers Nimesh Kampani and Vallabh Bhanshali meet on Saturday, compromise pricing of $3.6/MMBTU rumored))

TRAI Sources Say
-To re-examine regulatory policy in license fee
-To re-examine regulatory policy in spectrum charges

Steel Ministry Says: From NW18
-Cabinet may take up NMDC divestment next month
-Hope to raise Rs 13,000 crore via NMDC divestment

Phoenix - From Sources
-Phoenix Hospitality signs hotel deal with Marriott International for Rs 340 crore
-Alert: Phoenix Hospitality is the hotel arm of Phoenix Mills

stocks that are in news today:
-Hindalco starts road show for Rs 2900 crore QIP (qualified institutional placement) issue – BS
-NTPC to set up 2640 MW power station in MP
-IVR Prime to issue 5.94 crore shares to IVR Strategic Resources and IVRCL Water on amalgamation
-Maytas Infra says: may withdraw from Rs 1,590 crore Machilipatnam port project - From PTI
-Unichem gets US FDA nod for Pithampur bulk drug unit

 

NIFTY FUTURE LEVELS
RESISTANCE
4922
4970
5019
SUPPORT
4893
4867
4817
4768
4720
4671 

 

Strong & Weak  futures  

This is list of 10 strong futures:  

Ashok Ley, Yes Bank, DCHL, PTC, Mphasis, Allahabad Bank, McDowell-N, Dr Reddy, Canara Bank & Crompton Greaves.  

And this is list of 10 Weak futures:

RCom, EKC, Tata Comm, Idea, Suzlon, TTML, GMR Infra, MLL, ICSA & India Cement.

Nifty is in Down trend  

 

 

NIFTY FUTURES (F & O):

Rally may continue up to 4920-4922 zone for time being.

 

Support at 4867 & 4893 levels. Below these levels, expect profit booking up to 4817-4819 zone and thereafter slide may continue up to 4768-4770 zone by non-stop.

 

 

Buy if touches 4720-4722 zone. Stop Loss at 4671-4673 zone.

 

 

On Positive Side, cross above 4968-4970 zone can take it up to 5017-5019 zone by non-stop. If crosses & sustains this zone then uptrend may continue.

 

Short-Term Investors:

1 Week: Bullish with a SL of 4671.20. Target at 4918.10.

1 Month: Bullish with a SL of 4620.00. Target at 6289.00.

 

3 Months: Bearish with a SL of 5080.00. Target at 2951.00.

 

1 Year: Bullish with a SL of 2575.00. Target at 6201.65.

 

BSE SENSEX:

Buy with a SL of 15957.06. Target at 16583.56.  

Short-Term Investors:

 

1 Week: Bullish with a SL of 15720.73. Target at 16606.95.

1 Month: Bullish with a SL of 14937.03. Target at 18381.96.

 

3 Months: Bearish with a SL of 17361.47. Target at 12425.52.

 

1 Year: Bullish with a SL of 15197.60. Target at 18289.88.

 

INVESTMENT BUY:

Buy BRAWN PHARMACEUT (BSE Cash & BSE Code: 530207)  

Buy with a Stop Loss of 14.70. Above 18.80, it will zoom.

 

Today: May hold on gains.

 

 

1 Week: Bearish, surprisingly going up.

 

 

1 Month: Bullish, as per current market conditions.

 

 

3 Months: Bullish, as per current market conditions.

 

 

1 Year: Bullish, as per current market conditions.

 

Buy VELAN HOTELS (BSE Cash & BSE Code: 526755)  

Buy with a Stop Loss of 22.48. Above 28.80, it will zoom.

 

Today: May hold on gains.

 

 

1 Week: Bullish, as per current market conditions.

 

 

1 Month: Bullish, as per current market conditions.

 

 

3 Months: Bearish, surprisingly going up.

 

 

1 Year: Bullish, as per current market conditions.

 

SPOT INDEX LEVELS

	4898.40	( 2.13 %)	102.25
		1	2	3
Resistance		4939.13	4979.87	5054.48
Support		4823.78	4749.17	4708.43

	16498.72		( 2.11 %)	340.44
			1	2	3
Resistance			16628.36	16757.99	16998.57
Support			16258.15	16017.57	15887.94

 

FUNDS DATA

FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category	Date	Buy Value	Sell Value	Net Value
FII	09-Nov-2009	2206.36	1728.67	477.69

DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category	Date	Buy Value	Sell Value	Net Value
DII	09-Nov-2009	1118.01	1405.27	-287.26

 

Interesting findings on web:
   A broad U.S. stocks rally sent the Dow industrials to a 13-month high on Monday, after the Group of 20 pledged to keep aid flowing to the world economy, strengthening investors' desire for risk.

The Dow Jones industrial average jumped 203.52 points, or 2.03 percent, to 10,226.94. The Standard & Poor's 500 Index rose 23.78 points, or 2.22 percent, to 1,093.08. The Nasdaq Composite Index gained 41.62 points, or 1.97 percent, to 2,154.06.

The agreement by G20 finance ministers and central bankers over the weekend to keep stimulus in place boosted global stocks on the expectation of prolonged low interest rates.

Lower interest rates worldwide make investing in risky assets like stocks more attractive, and reduce the cost of corporate financing used for investment.

"This is real bull market stuff," said Hugh Johnson, who manages more than $1.6 billion as chairman of Albany, New York- based Johnson Illington. "No country is backing away from their program of fiscal stimulus. That's good news for the global economy and not such good news for inflation. That's why you're seeing stock markets around the world going higher."

"Central banks around the world are continuing to prop up the economy and support risk taking. There's very little regard for valuation," said Jack Ablin, chief investment officer of Harris Private Bank in Chicago.

"It looks to me like a pure risk rally and it is consistent with the G20 comments."

U.K. Chancellor of the Exchequer Alistair Darling, hosting a meeting of finance ministers from G-20 nations, said his colleagues decided to keep interest rates low and maintain record budget deficits until economic recoveries take hold. The G-20 split on whether to introduce a so-called Tobin tax on financial trading as part of a broader strategy to ensure the global economy's expansion is less crisis-prone.

With little news on tap for this week, "psychological factors and technical levels are driving 70%-80% of this market," said Financial Enhancement Group analyst Joe Clark.

"The market does create its own psychology," he added. "You would never go to the grocery store and pay a higher price because someone else did, but that's what happens in stocks -- the momentum that's happening today after G-20."

In "a bit of a dead week" in terms of economic reports, investors will take their cues from other news events, Clark said.

"People are reading the news and pondering all of it," Clark said. "Some stories might be enough for a quick boost, but as far as overall recovery most people are saying, 'We'll believe it when we see it.'"

There was some concern after last Friday's jobs report showed unemployment topped 10 percent for the first time in 26 years. But Michael Cohn, chief investment strategist at Atlantis Asset Management, said the dollar going down and unemployment being high aren't necessarily bad for the market.

"You have to understand that the stock market isn't the economy," Cohn said. If companies are laying off workers and currency-exchange rates remain favorable, it "means they're more profitable."

Still, he said there may not be much more to go for this market, now that the Dow has essentially retraced 50 percent of its fall from 14,000 to 6,500. He said the market will probably chop around through the end of the year and he would probably take some chips off the table in the retail and commodities sectors.

Shares of American companies that take in more revenue from abroad have outperformed those with higher proportions of domestic sales as the dollar weakened in the past eight months, making U.S. products cheaper overseas. The 50 companies in the S&P 500 with the highest percentage of overseas sales jumped 76 percent since the benchmark index's 12-year low on March 9, according to an index compiled by Goldman Sachs Group Inc.

Earnings per share have topped the average analyst estimate at 83 percent of the 426 companies in the S&P 500 that reported quarterly results since Oct. 7, according to data compiled by Bloomberg.

"There's been better news across the board," said Greg Woodard, portfolio strategist at Manning & Napier in Fairport, New York, which manages $19 billion. "Investors seem to be in a better mood."

The gains were broad-based, with all but 1 of the 30 components in the blue-chip index closing higher.

Raw-material producers companies added 3.2 percent for the second-biggest gain among 10 groups in the S&P 500.

American Express Co., Bank of America Corp. and Caterpillar Inc. gained at least 4 percent to lead the Dow's surge.

Freeport MacMoRan Copper & Gold Inc shares shot up 4.6 percent to $83.20 and the S&P materials sector index gained 3.2 percent.

Shares of chipmakers rose sharply, with the PHLX semiconductor index up 3.2 percent, its largest increase in a month. On Monday, Wells Fargo raised on its 2010 growth projection for chipmakers..

Among chipmaker shares, Applied Materials Inc rose 5.2 percent to $12.98 on Nasdaq and Micron Technology Inc shot up 6.1 percent to $7.51 on the New York Stock Exchange.

Financial stocks were also top performers in the session, with shares of American Express Co up 4.9 percent at $39.05. The KBW bank index gained 3.6 percent.

Corporate mergers and acquisitions also helped the market, with General Electric Co up 3.4 percent at $15.85 after a source said GE and Comcast Corp agreed on a valuation of around $30 billion for a joint venture between NBC Universal and Comcast.

Sprint Nextel [S  3.43    0.58  (+20.35%)   ] shot up more than 20 percent after the wireless provider said it will invest at least another $1 billion into Clearwire [CLWR  6.80    0.30  (+4.62%)   ], a broadband company it jointly owns with Comcast, Intel [INTC  19.46    0.53  (+2.8%)   ], Time Warner Cable [TWC  42.08    0.09  (+0.21%)   ] and Bright House Networks. The partners are prepared to spend another $500 million, according to a report in the Wall Street Journal.

The paper reported that Google [GOOG  561.85    10.75  (+1.95%)   ], which also is a partner, isn't involved in the latest financing round.

General Electric Co., the world's largest maker of power- plant turbines, rallied 3.4 percent to $15.85 today. Caterpillar, the biggest maker of bulldozers, jumped 4.2 percent to $60. Intel Corp., the largest maker of computer chips, increased 2.8 percent to $19.46. Each of the companies gets more than half of its revenue from overseas.

Financial companies gained the most of 10 industry groups in the S&P 500, adding 3.6 percent collectively.

The Federal Reserve said nine of 10 bank holding companies deemed short of capital in May have raised their reserves enough to withstand the risk of higher unemployment and slower economic growth. Bank of America added 4.8 percent to $15.77 and Morgan Stanley rose 4.1 percent to $33.95.

Goldman Sachs Group Inc. climbed 2.8 percent to $176.57. The most profitable securities firm in Wall Street history is underwriting $400 million of bonds backed by an Ohio real estate company's shopping centers in the first sale to tap a U.S. program to unlock lending in the commercial mortgage market.

Barrick Gold Corp. rose 3.3 percent to $43. Newmont Mining Corp., the largest U.S. gold producer, increased 3.1 percent to $50.56. Gold surged to a record $1,111.70 an ounce as a weakening dollar prompted investors to increase bullion holdings as a store of value.

Las Vegas Sands Corp. jumped 9.4 percent to $16.79. The casino company controlled by billionaire Sheldon Adelson received commitments for $1.45 billion of bank financing to help restart a stalled Macau project.

Altria Group Inc. gained 1.8 percent to $18.87. The largest U.S. tobacco company may rise to $27 if the company improves earnings by cutting costs and raising prices, Barron's reported, citing David Adelman, an analyst at Morgan Stanley in New York.

RadioShack Corp. jumped 14 percent to $20.27 for the second-biggest gain in the S&P 500. The electronics retailer said it plans to sell Apple Inc.'s iPhone 3G and iPhone 3GS at some of its stores in the Dallas-Fort Worth and New York areas beginning later this month.

Abercrombie & Fitch Co. advanced 7.4 percent to $37.59. The U.S. retailer specializing in clothes for teens was added to the "conviction buy" list at Goldman Sachs, which cited "significant longer-term growth drivers."

Shares of companies that supply health-care services and products added 1.3 percent collectively, the second-smallest advance among 24 groups. The U.S. House on Nov. 7 approved the most far-reaching changes to the nation's health-care system in four decades, voting to require all American to get coverage and to subject insurers to new restrictions and new competition from a government program. The measure would cost more than $1 trillion over 10 years.

Lexmark International Inc. lost 4.5 percent to $25.48. The maker of printers was added to the "conviction sell list" at Goldman Sachs, which said the shares are overvalued and unsustainable "given its weak competitive position and deteriorating installed base."

Real-estate stocks gained the most among the 24 groups in the S&P 500, rising 5.2 percent. The number of U.S. homeowners who owe more than their properties are worth fell in the third quarter as values stabilized and some homes were lost to foreclosure, Zillow.com said. About 21 percent of owners of mortgaged homes were underwater, down from 23 percent in the second quarter, the research firm said.

Kraft (KFT, Fortune 500) launched a $16.3 billion hostile takeover bid Monday for British candymaker Cadbury after the deadline for the initial bid passed without a deal. Cadbury rejected Kraft's initial $16.7 billion offer in early September and again turned it down.

Northrop Grumman (NOC, Fortune 500) has sold its consulting arm to two private equity firms. The $1.65 billion deal was announced Sunday.

Comcast (CMCSA, Fortune 500) and GE (GE, Fortune 500) have reportedly agreed on the worth of NBC Universal. The agreement is a major hurdle cleared for Comcast as it aims to gain control of NBC Universal.

"Most of these deals have been viewed as positive for the market," said Paul Radeke, wealth advisor at KDV Wealth Management. "It's a view of consolidating domestic opportunity, rather than the transfer of American wealth to the international market."

McDonald's [MCD  62.67    0.95  (+1.54%)   ] rose 1.5 percent after the fast-food chain said same-store sales slipped 0.1 percent but beat expectations. Stifel Nicolaus raised its fourth-quarter earnings estimate for the company by a penny to $1.04 a share; the current consensus estimate from Thomson Reuters is $1.02.

Chip makers rallied after Wells Fargo raised its 2010 forecast for the sector.

U.S.-traded shares of Nokia [NOK  13.56    0.35  (+2.65%)   ] rose 2.7 percent after the handset maker announced it will replace 14 million phone chargers made by China's BYD because of problems that could result in electric shock for consumers.

Altria [MO  18.87    0.33  (+1.78%)   ] shares advanced 1.8 percent after Barron's wrote that the tobacco products company was a bargain because of its low multiple, high yields and strong brands.

Good news for the auto sector: Parts maker Lear [LEARQ  0.0164    -0.0037  (-18.41%)   ]  said it has emerged from bankruptcy protection with a healthier balance sheet and a backlog of new business.

Las Vegas Sands [LVS  16.79    1.44  (+9.38%)   ] shares jumped 9.4 percent after the company and China's Minsheng bank set the price range for the upcoming public offering on the Hong Kong exchange. They hope to raise $7.35 billion with the offering.

Retail stocks finished mostly higher but Gap [GPS  22.94    -0.09  (-0.39%)  ] skidded 0.5 percent after Barclays downgraded the stock to "equal weight" from "overweight" over concerns on November sales.

The VIX, as the Chicago Board Options Exchange Volatility Index is known, retreated 4.3 percent to 23.15.

Oil,Gold & Currencies:

U.S. oil for December delivery rose $2 to settle at $79.43 a barrel.

COMEX gold for December delivery rose to an intraday record of $1,109.90.

With the dollar back at $1.50 against the euro for the first time in a few weeks.

The dollar advanced against the euro on prospects the U.S. currency's recent losses were excessive.

The greenback gained against 13 of its 16 major counterparts on speculation investors reduced short positions on the currency before a public holiday. The euro weakened against the yen before a report today forecast to show German investor confidence fell for a second month.

"The dollar is being bought back as it became cheap," said Susumu Kato, chief economist at Calyon Securities in Tokyo. "Its gains may be limited. The mainstream trend remains negative on the dollar."

The dollar rose to $1.4977 per euro as of 11:01 a.m. in Tokyo from $1.4999 in New York yesterday, when it touched $1.5020, the lowest since Oct. 26. The euro was at 134.83 yen from 134.91 yen. The dollar fetched 90.02 yen from 89.93 yen.

The Dollar Index, which IntercontinentalExchange Inc. uses to track the greenback against the currencies of six major U.S. trading partners, dropped 1 percent to 75.044 yesterday in New York. The gauge touched 74.930, the lowest level since August 2008. The index was at 75.140 today.

Bonds:

Bond prices were mostly lower, with the 10-year note holding modest gains, as the government began selling $81 billion worth of debt this week in a quarterly refunding.

What to expect:

TUESDAY: Obama in Asia; Geithner in Japan; Foreclosure-prevention summit; Fed's Lockhart, Yellen & Fisher speak; 10-year auction

WEDNESDAY: Veterans' Day (offices, bond market closed); Bill Gates speaks; Forbes most powerful people list; weekly mortgage applications; Earnings from Macy's, Applied Materials

THURSDAY: FDA meeting on Internet advertising starts; Buffett/Gates/CNBC Town Hall meeting; Geithner at APEC meeting in Singapore; weekly jobless claims; weekly crude inventories; Treasury budget; Earnings fro mWal-Mart, Disney

FRIDAY: NY Fed conference on financial intermediation; international trade; import/export prices; consumer sentiment; Nicholas Cosmo court appearance; Fed's Evans speaks; Earnings from JCPenney, Abercrombie

Other Headlines:

Greenspan Says Stock Rebound `Re-Liquifying' U.S. Economy After Stimulus

Fewer Banks Tightened Loan Standards Last Quarter Amid Recovery, Fed Says

China to Overlook Calls for Stronger Yuan as Exports Fall, Researchers Say

Japan Air's Fourth State Bailout to Be Decided in 2010 After Panel Review

Axa, AMP $10 Billion Bid May Kick Off Resurgence in Insurance Acquisitions

China Raises Fuel Prices as Much as 8%; Resumes Surcharges on Air Travel

Obama Adviser Jones Dismisses Reports Decision Made to Boost Afghan Troops

Texas Suspect Communicated With Radical Religious Leader, Official Says

Barclays, Bank of America, JPMorgan Vie to Manage Indian Share Offerings

China Exports May Fall by Least This Year, Fueling Calls for Stronger Yuan

Obama warns of strains with China

Trial of ex-Bear Stearns execs goes to jury

Health companies expect relief in Senate

European Commission objects to Sun-Oracle deal

Prepackaged bankruptcies tripled in past year

U.S. had Islamist intelligence on Fort Hood shooter

Iran charges three detained Americans with spying

Google buys mobile ad firm for $750 million

Obama says will raise currency with China

JPMorgan lifts salary freeze

European Commission Objects to Sun Micro-Oracle Deal

Buffett to Sell Stakes in Norfolk Southern, Union Pacific

China's House Prices Rise at Fastest Pace in 14 Months, Government Says

Look Ahead: 'Risk On' Attitude Could Fuel Rally Further

It's "risk on" in global markets, a trend traders say could help keep stocks heading higher for now.

The Dow Monday jumped to a 13-month high, as stocks and commodities rallied and the dollar skidded. The rally was prompted by a pledge from G-20 finance ministers over the weekend to continue stimulus programs, a signal to markets that rates will stay low and funds flow freely for some time. This follows the Fed's reaffirmation last week that it will keep rates low for an "extended" time.

"It's like the G-20 put out a communiqué that says 'sell the dollar,'" said Marc Chandler, chief currency strategist at Brown Brothers Harriman. The dollar has slumped in the low rate environment, and at the same time investors have run into riskier assets, like stocks and commodities.

"I think it does go for a little longer. The pull backs have been very shallow. I think there's a green light to do what the markets wanted to do -- not just in the dollar but by stocks, by commodities, by emerging markets, and gold is at a new record high," Chandler said.

The Dow jumped 203 points to 10,226, while the S&P 500 was up 23 at 1093. The stocks that did best were those that thrive in the risk trade --- the financials, up 3.6 percent; the materials, up 3.2 percent and the industrials, up 2.5 percent. 

"It's a very thin day, and that leads to greater volatility," said Pete McCorry, a trader with Keefe Bruyette. McCorry said stocks Monday got a lift from the idea that rates will be kept low for some time. But he said the market could trade back and forth in a range as investors attempt to judge the sustainability of the recovery in each economic headline.

There is not much data of note until Thursday's weekly jobless claims. On Tuesday, there is a small business NFIB survey at 7:30 a.m. There is also an auction of  $25 billion in 10-year notes at 1 p.m. Five Fed officials are also speaking Tuesday, as is FDIC chair Sheila Bair.

Jordan Kotick, Barclays Capital global head of technical strategy, said the recent selling in the market was a typical month-end move, like those seen in the past five months. He expects the S&P to reach 1200 by year end.

"You've seen a counter trend move. Stocks go lower the dollar catches a bid. It's just month end corrective positioning."

"We still think stocks will get a bid in to the end of the year, and risk is doing ok," he said. "November and December are two of the best months for the stock market, and you've just come through September and October, two of the hardest months. You don't get a countertrend move at the end of the year."

He expects the market to peak and then correct in the first quarter. "We ideally would see a 10 to 15 percent correction," he said.

Dollar Dilemma

Traders, in the stock and bond markets, were watching the dollar Monday and for the most part, they expect it to continue to fall for now.

The greenback Monday lost 0.9 percent against the euro, to a level of $1.4988. It had crossed the $1.50 level during the trading day.

"We had our correction on the downside in the euro last week. We bottomed on Nov. 3 at about $1.4625," said Chandler. "...We're looking at $1.51 this week. I'm thinking $1.53 is the next interesting point on the upside." Chandler said while government officials have set the stage for further decline, he doubts the dollar will return to its all time low against the euro of $1.60.

"Last week messages from the Fed, European Central Bank and Bank of England and this weekend the G-20 was that they're still playing the music and we'll continue to dance," he said.

The IMF, echoing what traders have been saying for months, said in a report Nov. 7 that low U.S. interest rates may have turned the dollar into a "carry trade" currency, and that it is contributing to upward pressure on the euro and emerging economy currencies.

The IMF also said the dollar was still on the "strong side."

"Those that say it is weak should think about that idea more closely," said Tony Crescenzi, senior market strategist at Pimco. "If it's such a weak currency, how are we able to purchase $2 trillion of goods in a year? It's not so weak that it is impeding our ability to purchase goods aboard. Some would argue the dollar is undervalued against the euro but overvalued against Asian currencies."

Crescenzi said that the dollar's role in a "carry trade," however, comes with potential problems longer term. "The trades become more entrenched and embedded and it creates more danger to the stability of the system," he said.

Treasurys on Tap

Traders expect the 10-year auction Tuesday to go smoothly but Crescenzi said it is not likely to be mirror Monday's 3-year auction. The 3-year drew a record number of indirect bidders, a bidding group that includes foreign central banks.

"The bid to cover ratio was the best since November, 1990. The size of the auction was large so when we look at total bids and the dollar amounts, it's very large. The short end is still the favorite sector with the market, so it's telling us more of what we already know," said Crescenzi.

"The 10-year will include periods where the Fed will be raising interest rates so the 10-year has to include the exit," he said. "There is more competition for capital of late. Equities are performing better. It seems the Fed has green lighted the risk asset rally so that entails more risk for Treasurys as an asset class and for longer dated maturities in the near term," he said.

Inflation Fear

The sharp move in gold, which set another record Monday, has helped fire up inflation concerns. Investors Monday were also watching the spread between 10-year inflation protected securities and Treasurys move to the widest level in more than a year.

Crescenzi said there are some technical reasons behind the move but it still bears watching. "I think when the three factors move together -- gold, TIPS and he dollar and also, risk asset prices are rising, it gets a little bit more difficult to ignore the embedded message that might be there,"  he said.

Gold rose a half percent to finish at $1100.80, a new Comex high. Kotick said he would not be surprised to see the metal climb to $1500 per troy ounce.

"We've been bullish forever. We're still bullish. Gold does price something in, but you tend not to know until after the fact. It prices in chaos, and it prices in inflation. Gold has been rallying for nine years in a row. Inflation, deflation, lower stocks, higher stocks. This is the most dominant trend in the last decade and people are still fighting it," said Kotick.

What Else to Watch

Fed Gov. Daniel Tarullo speaks in New York City at 3:30 p.m. at the Institute of International Bankers. Bair speaks at the same event at 1 p.m.

San Francisco Fed President Janet Yellen speaks on the economy at 10 a.m., while Atlanta Fed President Dennis Lockhart speaks on emerging trends in real estate at 9:15 a.m. Boston Fed President Eric Rosengren speaks on the economy in London at 11:15 a.m. Dallas Fed President Richard Fisher speaks on the economy in Austin at 7:30 p.m.

Activision Blizzard's "Call of Duty: Modern Warfare 2" is released Tuesday and is expected to be the most popular game of the year .

Asia:

Asian stocks climbed, lifting the MSCI Asia Pacific Index for a third day, as a rally in commodities boosted materials producers and brokerages upgraded Australian financial shares.

Newcrest Mining Ltd., Australia's biggest gold producer, added 1 percent as bullion advanced to a record. Commonwealth Bank of Australia rose 1.3 percent after UBS AG recommended buying the shares and Axa Asia Pacific Holdings Ltd. gained 2.6 percent after Credit Suisse Group AG lifted the stock to "neutral." Hyundai Motor Co., South Korea's largest automaker, rallied 3.4 percent after China's auto sales climbed.

"A rise in gold futures will lure investors and gold- related stocks will be bought," said Fumiyuki Nakanishi, a strategist at Tokyo-based SMBC Friend Securities Co.

The MSCI Asia Pacific Index gained 0.8 percent to 118.53 as of 10:18 a.m. in Tokyo, set to close at the highest level since Oct. 26. Japan's Nikkei 225 Stock Average rose 1.4 percent to 9,950.19. South Korea's Kospi Index added 1.2 percent, while Australia's S&P/ASX 200 Index advanced 1.2 percent.

Futures on the Standard & Poor's 500 Index were little changed. The gauge advanced 2.2 percent yesterday for its sixth straight increase as the Group of 20 nations pledged to maintain stimulus measures until economic recoveries take hold.

The MSCI Asia Pacific Index has climbed 68 percent from a more than five-year low on March 9, exceeding gains by the S&P 500 and Europe's Dow Jones Stoxx 600 Index. Stocks in the benchmark are valued at 22 times estimated earnings, compared with 17 times for the S&P and 15 times for the Stoxx.

Gold Rises

Newcrest added 1 percent to A$35.65. Fortescue Metals Group Ltd., Australia's third-largest iron ore producer, surged 3.6 percent to A$4.04. Mitsui & Co., which generates more than half its profits from commodities dealing, climbed 2.8 percent to 1,201 yen.

Gold futures for December delivery added 0.2 percent to $1,104 an ounce in New York after reaching a record $1,111.70 yesterday. Crude oil climbed 2.6 percent to $79.43 a barrel. The London Metals Index, a measure of six metals including copper and zinc, gained 0.9 percent.

Commonwealth Bank rose 1.3 percent to A$55.82. The nation's biggest lender was raised to "buy" from "neutral" at UBS. The company said yesterday first-quarter unaudited cash profit totaled about A$1.4 billion ($1.3 billion).

Axa Asia Pacific, which yesterday rejected an unsolicited $10 billion takeover bid from parent Axa SA and wealth manager AMP Ltd., gained 2.6 percent to A$5.85. Credit Suisse lifted the shares to "neutral" from "underperform."

Hyundai Motor, which cited growth in China for its record quarterly profit in the three months to Sept. 30, gained 3.4 percent to 106,000 won. NSK Ltd., a maker of bearings for autos, added 2.7 percent to 582 yen. JTEKT Corp., a maker of power steering, jumped 2.7 percent to 989 yen.

China's passenger-car sales rose 76 percent last month as economic growth and government stimulus measures spurred demand in the world's largest auto market. Sales climbed to 946,400 units, the China Association of Automobile Manufacturers said. 

Nikkei 225 9,970.10     +161.11 ( +1.64%). (08.20 AM IST)

HSI 22419.53 +211.98 +0.95%. (08.21 AM IST)

SSE Composite  3175.59  + 0.36. (08.21 IST)  

Rupee:

The partially convertible rupee INR=IN closed at 46.46/47 per dollar on Monday, above Friday's 46.81/82.

INDIA:

Stocks extended the winning streak for the fourth consecutive day on Monday, supported by comments on economic outlook by the prime Market Calendar.

Prime Minister Manmohan Singh said that the government will continue with its reforms agenda and roll back the stimulus package next year. "There are clear signals of an upturn in the economy... We resorted to a significant stimulus and we will take appropriate action next year to wind this down," he said.

The prime minister added that the growth next fiscal, assuming a normal monsoon season, was expected to be more than 7% compared with a 6.5% forecast for the 2009-2010 fiscal year.

The market also took cues from the outcome of the G20 meet. Finance ministers from the G20 nations decided to continue with the massive stimulus packages until the global recovery strengthens.

Equities began trade on a choppy note and gained momentum powered by Reliance Industries, State Bank of India and Axis Bank. Heavy buying was witnessed in the last half hour of trade taking the benchmarks past their psychological resistance levels.

National Stock Exchange's Nifty ended at 4898.40, up 102.25 points or 2.13 per cent. The index touched a high of 4905.25 and low of 4789.90 in today's trade.

Bombay Stock Exchange's Sensex closed at 16,498.72, up 340.44 points or 2.11 per cent. The 30-share index hit a high of 16517.42 and low of 16147.21.

The BSE Midcap Index was up 1.97 per cent and BSE Smallcap Index moved 2.16 per cent higher.

Amongst the sectoral indices, BSE Bankex advanced 4.80 per cent, BSE Oil&gas Index climbed 2.4 per cent and BSE Metal Index jumped 2.38 per cent.

Biggest Nifty gainers were Axis Bank (6.49%), State Bank of India (5.31%), SAIL (5.16%), ICICI Bank (4.77%) and HDFC Bank (4.15%).

Bharti Airtel (-3.86%), Reliance Communications (-1.77%), Ambuja Cements (-1.43%), Hindustan Unilever (-0.53%) and Sterlite Industries (-0.27%) ended with losses.

Reliance Industries is close to announcing a major overseas acquisition. If all goes according to plan, RIL is looking to do so before its annual general meeting on November 17. The likely target is a part of the assets owned by troubled petrochemical major LyondellBasell, which is undergoing reorganisation under the protection of a US court. The stock surged 3.46 per cent on the BSE.

State Bank of India, the country's largest lender, said it has entered into an agreement with T Rowe Price to sell 6.5 per cent holding each in UTI Asset Management Company and UTI Trustee Company. Other banks that soared on reports of stake sale in these two companies were Bank of Baroda (3.07 per cent) and Punjab National Bank (2 per cent).

Tata Power Company on Friday launched a bond issue to raise $300 million (around Rs 1,410 crore) to finance its operations in India and overseas. The foreign currency convertible bond issue, comprising a green-shoe option of $50 million, is expected to be closed on Saturday. If fully subscribed, the Tata Group's shareholding will come down to 29% from 31%, after the issue. The scrip moved 3.78 per cent higher.

Market breadth was positive on the BSE with 1,993 advances and 756 declines.

Main index gains 2.1 pct to best close in 2 weeks

Reliance up 3.5 pct on likely overseas buy report

State Bank firms 5.2 pct as its sells stake in UTI AMC

Telecom stocks lag on bleak sector outlook

Indian shares climbed 2.1 percent on Monday, extending a winning streak to a fourth consecutive session, with Reliance Industries (RELI.BO: Quote, Profile, Research) leading the way after a newspaper said the energy giant was close to an overseas buy. Firmer global stocks after the Group of 20 pledged to keep stimulus in place until there was assured recovery, after data showed the U.S. unemployment rate rose to a 26-year high also helped sentiment.

Reliance, which has the most weight in the main index, rose 3.5 percent to 2,024.55 rupees after the Economic Times reported it was close to a nearly $6 billion overseas acquisition and the likely target was the assets of bankrupt petrochemicals firm LyondellBasell [ACCEIN.UL].

  The 30-share BSE index .BSESN closed up 2.11 percent, or 340.44 points, at 16,498.72, its best close in two weeks.

Twenty-five of its components advanced.

State Bank of India rallied 5.2 percent to 2,318.55 rupees, after the top lender said it had entered into an agreement with T. Rowe Price (TROW.O: Quote, Profile, Research) to sell a 6.5 percent holding each in UTI Asset Management Company and UTI Trustee Company.

Private lender ICICI Bank (ICBK.BO: Quote, Profile, Research) firmed 4.7 percent and HDFC Bank (HDBK.BO: Quote, Profile, Research) rose 4.1 percent.

The benchmark index has risen 71 percent since the end of 2008, powered by foreign fund inflows of more than $14 billion. On Sunday, the finance minister said the timing for winding down stimulus measures would be decided when it was apparent the economy is recovering, but there would be no more stimulus measures.

Prime Minister Manmohan Singh said on Sunday growth in the next fiscal year, assuming a normal monsoon season, was expected to be more than 7 percent compared with a 6.5 percent forecast for the 2009/10 fiscal year.

In the broader market, gainers outnumbered losers in the ratio of 2.7:1 on a relatively moderate volume of 361 million shares.

Telecom stocks fell as the sector outlook remained weak after disappointing quarterly results and a deepening price war, analysts said. Bharti Airtel (BRTI.BO: Quote, Profile, Research) fell 3.9 percent to 307.50 rupees while rival Reliance Communications (RLCM.BO: Quote, Profile, Research) was down 2.2 percent at 174.10 rupees. Bharti Chief Executive Manoj Kohli said industry-wideaverage revenue per user (ARPU) would continue to fall on rising competition, but the ongoing price war was only a short-term phenomenon.

On Sunday, Chairman Sunil Mittal said the company was not actively seeking acquisitions.

Cigarette to hotel business ITC (ITC.BO: Quote, Profile, Research) raced 3.9 percentwhile personal care products maker Hindustan Unilever (HLL.BO: Quote, Profile, Research) shed 0.7 percent, after Morgan Stanley added ITC to its focus list and removed Hindustan Unilever from the same.

Hozefa Topiwalla, analyst at Morgan Stanley, said ITC was in a strong position in one of the most attractive cigarette markets in the world and was demonstrating strong pricing power. He  recently upgraded ITC to overweight from equal-weight.

The 50-share NSE index .NSEI closed 2.1 percent higher at 4,898.40.

Mahindra Satyam (SATY.BO: Quote, Profile, Research) jumped 10.7 percent, its biggest single-day gain in 3-½   months, to 114.45 rupees after the outsourcer's chief executive said on Sunday the worst was over and it had added 35 clients since mid-April, while it lost just a handful.

Hindustan Construction Co (HCNS.BO: Quote, Profile, Research) rose 2.6 percent to 137.65 rupees after its chairman said the company expects its order book to rise by a quarter to about 200 billion rupees ($4.3 billion) for the year ending March 2010.

Among the BSE sectoral indices, the Banking index was the top gainer, adding 5%, followed by the Consumer Durables index that was up 2.5% and the BSE Oil & Gas index was up 2.4%.

The BSE Mid-Cap index gained 2% and the BSE Small-Cap index was up 2.3%. 

Among the 30-components of Sensex, 25 stocks ended in the green and 5 ended in the negative terrain. SBI, ICICI Bank, Tata Power, HDFC Bank and ITC were among the major gainers.

On the other hand, among the major losers were Bharti Airtel, RCom, Hindustan Unilever and Sun Pharma.

Outside the frontline indices, the big gainers in the broader market were Jai Corp, Central Bank, LIC Housing, Tech Mahindra and IRB Infra. On the other hand, losers included TTML, Bharat Forge, Tata Comm and Koutons Retail.

Shares of Reliance Industries advanced by 3.5% to Rs12024 after the company is reportedly close to announcing a major overseas acquisition. The company's likely target is a part of the assets owned by LyondellBasell, which is undergoing reorganisation under the protection of a US court.

The stock opened at Rs1959 and made an intra-day high of Rs2031 and a low of Rs1959. Total traded volumes stood at 0.76mn shares.

Shares of L&T gained by 1.5% to Rs1599 after the company received an order worth Rs16.35bn from Madhya Pradesh Power Generating Company Ltd (MPPGCL) for 2x 600 (1200) MW Balance of Plant Package (BoP) for Shree Singaji (MALWA) Thermal Power Plant.

This order was won against stiff competition against domestic BoP bidders. The contract will be executed on EPC basis and L&T's scope will include design, detailed engineering, supply, installation and commissioning of BoP systems.

Shares of Rico Auto were frozen at 5% upper circuit to end at Rs23.95 after workers of the company ended their about 50-day strike following an agreement with the management on reinstating of some employees.

As per the agreement, out of the total 16 workers, who were suspended after the strike started, the management has agreed to revoke the suspension of eight, while one worker will be taken back after one month.

Shares of Ahluwalia Contracts gained by 1.2% to Rs167 after the company announced that it won contracts aggregating to Rs2.42bn.

1. Construction of Metro Train Depot cum Workshop at Peenya for Bangalore Metro Rail Project -Phase-I, worth Rs1.16bn.

2. Construction of LOTUS BOLEVARD Phase-2&3 Sector-100, Noida, U.P. for Structural and Civil Works project worth Rs656.7mn.

3. Construction of Structural Civil Works (Shell & Core) for HDIL Metropolis Project, Andheri, Mumbai Project worth Rs259.1mn and miscellaneous Work order aggregating Rs340mn.

Shares of Jubilant Organosys advanced by 2% to Rs227 after reports stated that the company has earmarked Rs2.5bn for its capacity expansion plans in the current fiscal.

The Chairman and MD Shyam S Bhartia was quoted as saying, "We are going to spend Rs2.5bn for capacity expansion. A majority of it would be spent on de-bottlenecking activities while a small portion of it would go for the R&D activities,"

Shares of XL Telecom & Energy were locked at 5% upper circuit to close at Rs29.50 after the company announced that it has won an order worth Rs235mn for supply of Solar Photovoltaic Power Systems to Bharat Sand Nigam Limited (BSNL).

The stock opened at Rs28.35 and made an intra-day high of Rs29.5 and a low of Rs27.1. Total traded volumes stood at 0.28mn shares.

Gateway Distriparks announced that the boards of directors and its subsidiary, Gateway Rail Freight Ltd (GRFL) have approved the execution of a share subscription and shareholders agreement with Blackstone GPV Capital Partners (Mauritius) V-H Ltd pursuant to which GRFL will raise funds to the extent of Rs3bn by issue of Compulsorily Convertible Preference shares (CCPS) to Blackstone, which, on conversion, will entitle Blackstone to acquire between 37.27% and 49.90% of the share capital of GRFL.

The Agreement also includes a call option of GDL to acquire the CCPS at the end of 5 years from the date of the investment and a put option of Blackstone to sell the CCPS to GDL at the end of ten years.

Shares of Gateway Distriparks fell by 5% to end at Rs126. The stock opened at Rs135 and made an intra-day high of Rs141 and a low of Rs125. Total traded volumes stood at 0.5mn shares.

BSE REALTY index was at 4,081.54 up by 87.86 points or by (2.2%) The main gainers were Sobha Dev up by (17.81%) at Rs.242.45, Orbitco up by (11.17%) at Rs.296.7, Ansal Infras up by (3.89%) at Rs.68.05, Omaxe Ltd up by (3.59%) at Rs.102.3, Parsvnath up by (3.21%) at Rs.115.75.

BSE METAL index was at 14,852.90 up by 345.40 points or by (2.38%) The main gainers were Jai Corp Lim up by (19.98%) at Rs.216.75, Jsw Sl up by (6.93%) at Rs.812.95, Nmdc Ltd up by (6.81%) at Rs.361.45, Steel Author up by (4.76%) at Rs.173.7, Ispat Indust up by (3.05%) at Rs.20.3.

BSE BANKEX index was at 10,155.67 up by 465.18 points or by (4.8%) The main gainers were Indian Overs up by (8.8%) at Rs.118.75, Allahabad Bk up by (7.48%) at Rs.134.4, Canara Bank up by (7.14%) at Rs.381.35, Axis Bank up by (6.63%) at Rs.997.25, Bank Of India up by (5.88%) at Rs.387.3,

BSE FMCG index was at 2,825.02 up by 60.08 points or by (2.17%) The main gainers were Godrej Cons up by (3.98%) at Rs.289.85, I T C Ltd up by (3.9%) at Rs.258.25, Dabur India Ltd. up by (3.07%) at Rs.157.85, Unitd Spr up by (3.06%) at Rs.1106.4, Ruchi Soya up by (2.31%) at Rs.84.05.

BSE CD index was at 3,472.98 up by 82.81 points or by (2.44%) The main gainers were Blue Star L up by (3.32%) at Rs.348.85, Titan Ind. up by (2.99%) at Rs.1337.9, Rajesh Expot up by (2.89%) at Rs.81.75, Videocon Ind up by (0.91%) at Rs.215.1, Gitanjali Ge* up by (0.47%) at Rs.117.15,

BSE OIL&GAS index was at 9,861.12 up by 231.30 points or by (2.4%) The main gainers were Reliance up by (3.46%) at Rs.2024.55, Essar Oil Ltd. up by (3.41%) at Rs.136.65, Cairn Ind up by (2.53%) at Rs.279.8, Bharat Petroleum Corporation L up by (1.5%) at Rs.517.9, Ril Nat Res up by (0.98%) at Rs.72.15.

Tata Steel closed up by 1.93% at Rs. 509.35. The company through its subsidiary, Tata Steel Global Minerals Holdings has entered into Joint Venture Agreement on 6th November 2009 with New Millennium Capital Corp. ("NML") (TSX-V: NML) and LabMag Limited Partnership (through its General Partner) for development of the Direct Shipment Ore (DSO) Project in Canada.

Aurobindo Pharma Limited closed higher by 0.33% at Rs. 819.30. The company announced that it has received final approvals from the US Food & Drug Administration (USFDA) for 2 ANDAs namely Cefotaxime for Injection USP 500mg, 1g, 2g and Cefotaxime for Injection DSP 10g pharmacy bulk pack.

Larsen & Toubro (L&T) closed up by 1.51% at Rs. 1,599.55. The company has secured the BoP contract valued at Rs 1635.30 crore from Madhya Pradesh Power Generation Co. Ltd, (MPPGCL) for 2 x 600 MW MALWA Coal Fired Power Plant, The project was won against stiff competition from domestic BoP bidders.

Indian stocks rose, extending a rally on the benchmark index to four days, led by Reliance Industries Ltd. after the nation's most valuable company said it's reviewing overseas investments.

Tata Steel Ltd., the biggest producer of the alloy, gained 1.9 percent after Prime Minister Manmohan Singh said he saw "clear signs" the economy was growing, allowing the government to cut back on its stimulus spending. Reliance Industries rose 3.4 percent.

Tata Steel gained 1.9 percent to 509.2 rupees. India may be among the first Group of 20 nations to begin winding back fiscal stimuli after Singh said faster economic growth would allow the measures to be withdrawn.

Reliance Industries advanced 3.4 percent to 2,024.4 rupees. The company is considering going overseas for growth as the economic environment of the past year has resulted in "several interesting opportunities," it said in an e-mailed statement, responding to an Economic Times report today. The newspaper said Reliance Industries may buy part of the assets owned by LyondellBasell.

State Bank of India Ltd., the nation's largest lender, jumped 5.1 percent to 2,318.2 rupees after it said it agreed to sell a stake in UTI Asset Management Co., India's oldest money manager, to T. Rowe Price Group Inc.

State Bank of India, Punjab National Bank Ltd., Bank of Baroda and Life Insurance Corp. of India -- the four government- controlled companies that each hold 25 percent of UTI Asset -- sold equal stakes to T. Rowe Price, Jaideep Bhattacharya, chief marketing officer at UTI Asset, said in a phone interview today.

Punjab National Bank advanced 2.2 percent to 908.25 rupees, while Bank of Baroda rose 3 percent to 539.85 rupees.

Hindustan Unilever Ltd., the nation's biggest household products maker, fell 0.4 percent to 271.4 rupees after Morgan Stanley downgraded it to "underweight" from "equal-weight". The stock had earlier declined as much as 1.5 percent.

ITC Ltd., India's biggest cigarette company, gained 4.1 percent to 259.05 rupees after Morgan Stanley raised its rating to "over-weight" from "equal-weight".

Yes Bank Ltd., the lender that's partly owned by Rabobank of the Netherlands, soared 5 percent to 266.85 rupees. The bank plans to raise as much as $250 million from share sales to select investors by the end of March, Managing Director Rana Kapoor said yesterday at the India Economic Summit. The bank will use the funds to increase lending.

Overseas funds bought a net 2.68 billion rupees ($56.8 million) of Indian stocks on Nov. 5, the Securities and Exchange Board of India said on its Web site. The funds have bought 684.1 billion rupees of equities this year to date, compared with record net sales of 530 billion rupees for the whole of 2008.

India's Singh May Lead G-20 in Fiscal Stimulus Exit

India may be among the first Group of 20 nations to begin winding back fiscal stimulus after Prime Minister Manmohan Singh said faster economic growth would allow the measures to be withdrawn.

"There are clear signs of an upturn in the economy," Singh told the India Economic Summit organized by the World Economic Forum in New Delhi yesterday. "Like other countries we resorted to a significant stimulus and we will take appropriate action next year to wind this down."

Singh's comments are at odds with policy makers from the U.S., Japan, Australia and other G-20 nations who said at the weekend it's too early to withdraw fiscal steps designed to support global recovery. India's central bank last month began to tighten monetary policy amid concerns that an inflation flare-up may hit the pockets of close to 800 million Indians who live on less than $2 a day.

"Demand in India has picked up and a continuation of stimulus may not be necessary next year," said Arun Duggal, chairman of Shriram Transport Finance Co. Ltd., the nation's biggest financier of trucks and buses. "Stimulus should remain in developed countries as their economies are in a more fragile state and could tip backward."

Singh said India's economy may grow 6.5 percent in the year ending March 31, constrained by weak monsoon rains that hurt crop production. With better rainfall in the four-month season starting June 2010, the economy may expand over 7 percent in the year commencing April 1, he said.

Wal-Mart

India's economic strides prompted Wal-Mart Stores Inc., the world's largest retailer that has a wholesaling venture with the local Bharti Group, to open as many as 40 more "cash & carry" stores in the country. Wal-Mart opened its first Indian wholesale store on May 30, with initial plans to start 10 or 15 more outlets during the next three years.

Tata Steel Ltd., India's biggest producer of the alloy, reported October sales rose 38 percent, while sales at Bajaj Auto Ltd., the nation's second-largest motorcycle maker, gained 46 percent during the month.

India began to tighten monetary policy as the central bank forecasts inflation to accelerate to 6.5 percent by March 31 from 1.51 percent. Asset prices have been climbing as well, evidenced by the 68 percent rise in the key Sensitive index on the Bombay Stock Exchange.

'Calibrated Way'

The Reserve Bank of India on Oct. 27 ordered lenders to keep more cash in government bonds, raising the statutory liquidity ratio to 25 percent from 24 percent. Governor Duvvuri Subbarao said it was appropriate for the central bank to exit monetary stimulus in a "calibrated way."

The rupee advanced 0.6 percent to 46.55 per dollar as of 9:40 a.m. in Mumbai, rising for a fourth day, on speculation an improving economy will attract more foreign investment. The Sensex gained 0.7 percent, to 16,268.23 at 9:56 a.m.

Raghuram Rajan, former chief economist at the International Monetary Fund and now a professor at the University of Chicago, said it was "quite appropriate" for the Indian government to think about winding down fiscal stimulus.

"I am not saying do it today, but do it over the next year and going forward," Rajan said in New Delhi yesterday.

India's central bank needs to consider an exit from monetary stimulus as interest-rate policy needs to be conducted with "foresight," Rajan said. "By the time inflation starts picking up, by the time capacity constraints start showing, its too late to do it with monetary policy."

Asset Bubbles

China also risks faster inflation and asset bubbles as Asia's second-biggest economy pursues "excessive growth," Yao Jingyuan, the statistics bureau's chief economist, said at a forum in Beijing last week.

The Chinese economy is assured of expanding 8 percent in 2009, meeting the government's target, according to Yao.

India may consider rolling back fiscal stimulus early in the year starting April 1, Montek Singh Ahluwalia, deputy chairman of the Planning Commission, said in New Delhi yesterday. This would help reduce a budget deficit estimated to reach a 16- year high of 6.8 percent of gross domestic product this year.

The Indian government has reduced taxes on consumer products and imports and increased spending, aiming to shield the $1.2 billion economy from the world global recession since the 1930s.

Global Recovery

"The worst is behind us though the path of global recovery will be long and uncertain," Prime Minister Singh said yesterday. "India has been able to face the global economic downturn better than most other countries in the world."

The world economy may shrink 1.1 percent in 2009, according to IMF estimates. IMF Managing Director Dominique Strauss-Kahn warned Oct. 23 of the risk of a double-dip recession if countries implement exit strategies too soon.

U.S. Treasury Secretary Timothy Geithner told reporters after a meeting of G20 finance ministers in Scotland on Nov. 7 that "it's too early" to "lean against the recovery."

Japanese Finance Minister Yoshihiko Noda said it's too soon to start unwinding measures, saying the recovery in his country "still lacks sustainability." Australian Treasurer Wayne Swan said yesterday government stimulus shouldn't yet be retracted as winding up the program would threaten jobs and economic recovery.

"The developed countries seem to be very cohesive in thinking that stimulus should continue," Rana Kapoor, chief executive officer at Mumbai-based Yes Bank Ltd. said in an interview with Bloomberg News yesterday. "Every nation needs to watch out for country-specific conditions and take actions best suited for them, and that's what India is doing."

Countries should withdraw stimulus too late rather than too early as the global recovery is likely to be "sluggish," the IMF said in a report prepared for this weekend's meeting of G20 officials in St. Andrews, Scotland.

India's next budget is due to be released in late February 2010 by Finance Minister Pranab Mukherjee, who attended the weekend meeting of G20 officials.

"World demand will pick up only slowly," Singh said yesterday. "Our strategy therefore must aim at sustaining a high rate of growth on the strength of strong domestic demand."

JPMorgan to Grow Indian Investment Banking Unit, Morparia Says

JPMorgan Chase & Co., the second- largest U.S. bank by deposits, plans to grow its investment banking unit in India as the government prepares to sell shares in companies and local firms consider overseas acquisitions.

"We hope to see a slew of disinvestment in public sector undertakings," Kalpana Morparia, the country chief executive officer at the bank, said while attending the India Economic Summit in New Delhi. Indian companies reviving investments and looking at cross-border acquisitions also offer opportunities for its advisory services, she said.

Banks including Barclays Plc and Bank of America Merrill Lynch may vie to manage share sales by the government after the home minister said Nov. 5 that all profitable state-owned companies must list at least 10 percent of their equity. Bank of America's India head Kevan Watts said the sales will be a "big opportunity."

Robert Morrice, Barclays Capital's Asia-Pacific chairman and chief executive officer, said his company plans to "look into" the government's stake-sale plans and will double its investment banking team in India over the next 18 months. It currently employs 35 people.

Morparia said JPMorgan will also tap growth in trade finance, or transaction banking, in India.

The New York-based bank is increasingly focusing on companies doing business between China and nations such as India, Korea and Japan, Morparia said. JPMorgan's local team had traditionally offered trade financing, cash management services and treasury products to companies doing business between India and the U.S. and western Europe, she said.

Gateway unit to raise Rs 300cr

Deficit scene is alarming: Sinha

TRAI seeks response on SMS terminations

Steel min for 10 % disinvestment in NMDC

Thomas Cook India inks deal

Renault to offer full range of products

India ranks low in man-woman equality

NPS to witness exponential growth: PFRDA

Akai to re-enter India by January

Competition to impact industry's ARPU

Reliance MF leads Crisil MF rankings

Sebi allows SEs to set up SME platform

ONGC may set up nuclear power plant

Allianz Q3 income stood at 1.32 bn euros

Kingfisher Airlines to raise up to $600m

Infosys BPO to hire 1500-2000 people

HMT H1 net loss widens to Rs 30.90 cr

Microsoft India going easy on hiring

UPA ministers spent Rs 300cr on travel!
 
MARKET BUZZ:
 
(May not be useful for day-traders.)

Jayshree Tea: Rich Brew
 
 
 

 

Jayshree Tea, second largest tea producer in India, would benefit from the concomitant rise in domestic and global tea prices. With high tea realisations from export markets and increasing contribution from Darjeeling tea, we believe, the overall margins for the company should expand.

 

High realisations to enhance margins …

 

Domestic demand-supply scenario likely to remain tight

 

India is the largest consumer and second largest producer of tea in the world. Accounting for around 40% of the world's black tea production, India is the world's largest producer of black tea in the world. However, production being lower than consumption has resulted in shrinkage of tea inventories from 306.9 million kg in 2006 to 220.7 million kg in 2009, which is three months of consumption.

 

High price realisation to boost sales

 

Jayshree Tea's export has increased from Rs 25 crore in 2006 to Rs 65.0 crore in FY09. The company owns six estates in Darjeeling, which is considered to be a high quality orthodox tea area. The company produces 10% of the total production in Darjeeling. Its focus on increasing production of Darjeeling tea would enhance the overall margin of the company.

 

Volume growth through acquisitions

 

The company has been able to increase its volume from 18.2 million kg in FY08 to 21.5 million kg in FY09 after its acquisition of Jayantika Tea in 2008, which produces 1.1 million kg of tea per annum. Jayshree Tea is further aggressively looking for acquisitions of tea gardens in Kenya and Uganda with an annual capacity of 15-20 million kg.

(Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.)
 

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Arvind Parekh
+ 91 98432 32381