Dawn of 14 Nov 08
Inflation 8.89 , Gsecs Rally , Global Markets Rise oil,copper, stocks –on annual sale, Unitech Ispat fund woes, Ministry: FX losses/gains in balance sheet of corporates.
RUPEE
Ø Opened at 49.17 vs 49.30 close on Wednesday. The INR is seen partly recovering on Friday from its biggest single-day fall in more than a decade as firmer Asian stock markets calm concerns of heavy capital outflows.
BONDS
Ø Indian federal bond yields fell sharply on Friday after inflation in early November dropped to its lowest since late May, which could give the RBI more room to cut rates. 10Y ay benchmark 10-Y at 7.48 % according, to Reuters data, lower from Wednesday’s close of 7.60 %. The market was shut on Thursday for a local holiday. Inflation 8.89% sub 10% on a blanket fall in commodity prices due to a gloomy global outlook.
CALL
Ø Call money rate at 7.00/7.25 %, lower from its previous close of 7.30/7.40 indicating slightly lower demand for funds in the banking system.
STOCKS
Ø Likely to open higher on strong rise in US Indices and firm Asian markets
GLOBAL
Ø DJIA 8,835.25 +552.59 Nikkei 8,589.79 +351.15 FTSE 4,169.21 -12.81 H Seng 13,572.97 +351.62 US10Y 3.874 +0.137 EUR 1.2750 Yen 97.02 Gold 713.50 Crude 59.46
Ø U.S. stocks rallied on Thursday, ending up over 6 % after the S&P 500 and the Nasdaq touched new multiyear lows earlier in the session as bargain hunters rushed back into the market to scoop up beaten-down shares.
Ø FTSE fell 0.3 % on Thursday with banks and commodities the biggest fallers as global recession fears weighed, while strong results from BT Group tempered some of the losses.
Ø Nikkei average rose 4.3 % on Friday as a rally in U.S. shares triggered short-covering. Exporters gained as the yen took a breather after rallying sharply earlier in the week, with Honda Motor surging 6.4 % and Sony Corp gaining 6.0 %
Ø USD fell against the EUR on Thursday after a more stable performance on Wall Street helped ease extreme risk aversion and reduced demand for safety. The yen tumbled against the USD, the EUR and higher-yielding currencies, reversing sharp gains in the previous session.
Ø Gold futures rose sharply in Thursday’s screen trade as a late rally on Wall Street and a tumbling USD eased widespread liquidation pressure in the bullion market.
Ø Copper recovered from an earlier three-year low on Thursday, as a weaker USD and Chinese production cuts offset demand concerns after data showed China’s industrial output fell in October.
Ø Oil jumped over 4 % on Thursday as OPEC seemed poised to cut production again later this month and equity markets rebounded.
INDIA FRONT PAGE
Ø The ministry of corporate affairs could issue an order in a few months that would make it mandatory for companies to highlight the effects of any gain or loss incurred due to fluctuations in forex rates in their books.
Ø Steel-maker Ispat Industries Ltd is learnt to have defaulted on its loan repayment to Unit Trust of India. It was scheduled to make a payment of around 1 billion INRs by June 2008 as part of a 5.5 billion INRs loan settlement.
Ø Maharashtra is contemplating an increase in stamp duty on property transactions across the board from Jan 1, 2009.
Ø The USDA has found 15 manufacturing deficiencies at Lupin Ltd plant in Madhya Pradesh that could invite stronger sanctions if the deviations are not addressed.
Ø Merrill Lynch has picked up a minority stake in Hyderabad-based logistics provider Shree Rajlaxmi group’s upcoming warehousing development projects for an undisclosed amount.
Ø GMR Infrastructure Ltd has backed out of its $155- million acquisition for a 50 % stake in South African coal mining firm, Homeland Mining & Energy due to declining coal prices and the findings of its due diligence process.
Ø BHEL is looking to tie up with L&Tto set up new-generation light water reactor-based capacities.
Ø Reliance Communications Ltd may be considering bidding for Iran’s third mobile phone service licence estimated to cost around $1 billion.
Ø L&T plans to enter solar power generation and expand its green energy technology business that includes nuclear and hydel power.
Ø Unitech Ltd is scouting for funds to pay back its debt to Indiabulls Financial Services . Unitech has to pay back 3.5 billion INRs by Nov. 17.
