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Monday, December 12, 2011

Markets set for a positive start; IIP data eyed

Today’s opening is likely to be on a positive note led by gains across the globe after EU deal. Index of industrial production data for October will be out today.

Headlines for the day:

Lupin eyes $300 mn revenue from Japan in next 2 yrs

Central Bank waives pre-payment on housing loans

RIL eyes energy targets in the Americas

Govt may face Rs25K crore direct tax shortfall in 2011-12

GAIL signs pact to buy 3.5 MT per year LNG from US

Events for the day:

IIP data for October

Ex-date for dividend of Kemrock Industries & Exports, IMP Powers

Ex-date for final dividend of Caplin Point Laboratories

Daily News Roundup - Dec 12 2011

Videocon will invest over Rs1bn next year in R & D and in enhancing manufacturing capacities. (ET)

Maruti Suzuki is likely to defer its proposed investments in Gujarat as rising interest rates and fuel prices in a cooling economy force prospective buyers to retreat. (ET)

M&M plans to set up an assembly plant in South-East Asia and is eyeing markets in Thailand, Indonesia and Malaysia. (ET)

Coal India plans to install GPS-based movement tracking system to increase output at its major mines. (ET)

Sensex succumbs to EU jitters, local woes

The Indian market tumbled anew on Friday, extending the previous session’s big losses, as investors continued to shun risk amid growing evidence of a slowdown in the domestic economy. Stiff opposition to the Government’s proposed economic reforms this week has added to the perception of policy paralysis.

On the economic front, the Centre is struggling to control its worsening finances amid ballooning subsidies. It is most likely to overshoot the fiscal deficit target. The situation on the external front too is not encouraging with the current account gap widening. A weak rupee has only added to the bleak scenario.

IIP could play spoilsport!

There exist limitless opportunities in every industry. Where there is an open mind, there will always be a frontier. - Charles F. Kettering.

Markets in the US and Europe rallied on Friday following the end of the much-hyped EU Summit in Brussels. All but four EU nations have agreed to tighter budget rules. New bailout fund will be in place by the middle of 2012. The IMF is likely to be given €200bn in additional bilateral aid to support the debt-laden region. Whether the new pact will resolve the long-running debt crisis in the euro area only time will tell.

Better trades for the day - Dec 12 2011

Global Cues:

The European stocks ended higher on Friday (December 09, 2011). FTSE 100 up by 0.83%, CAC40 up by 2.48% and DAX up by 1.91%.

The US stocks closed in green on Friday. Dow Jones up by 1.55% and Nasdaq up by 1.94%.

The Asian shares were higher on Monday (December 12, 2011). SGX NIFTY was up by 0.52%.

Commodity cues

US crude oil prices rallied on Friday, after a choppy start, as an agreement for a closer euro zone fiscal union and news of a Chinese fund for US and European investment lifted the euro and equities markets.

Stock in news:

Lupin eyes $300 million revenue from Japan in next 2 years.

Central Bank waives pre-payment on housing loans.

Reliance Industries Limited ( RIL) eyes energy targets in the Americas.

Government may face Rs25,000 crore direct tax shortfall in 2011-12.

GAIL signs pact to buy 3.5 million tonne per year LNG from US,

SGX Nifty Live Update - Dec 12 2011

4907.75 +30.75 (+0.63%)