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Indian stock market morning report by Keynote Capitals (October 22, 2008, Wednesday, 7.00 a.m. GMT)
22 October 2008
Source: www.keynoteindia.net
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View information about , news and price targets.
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Economic and Corporate Developments
- The rupee weakened past 49.30 per USD to a record low of 49.34/50 this morning on expectations of further
outflows from local stock market. It had closed at 49.04/06 yesterday.
- Crude oil prices are at $70.07 per barrel, down about 2%.
- The Government and the RBI are looking at further easing of ECB guidelines and FDI norms to enhance
overseas fund inflows. On ECBs, the option of putting loans up to $500mn for rupee expenditure by Indian
infrastructure companies under the automatic approval route is being considered.
- The steel ministry may provide protection to domestic steel companies by levying a 10% import duty on all
grades of steel. It is also likely to suggest re-imposition of 14% countervailing duty (CVD) on bars and
structurals (primarily Tor steel) and reduction in excise duty on Tor steel and galvanised products from the
present 14% to 8%.
- According to media reports, Norway’s sovereign wealth fund, the world’s second largest, is likely to invest $2bn
in Indian stocks upto January 2009. This comes in the wake of net sales by FIIs of about $11bn worth of equity
in 2008 YTD.
- As per our sources in the banking industry, some banks have decided to stop fresh disbursements to the
cement, steel and real estate sectors, anticipating a major slowdown, and fears of NPAs from these sectors by
March 2009.
- In spite of the economic slowdown, India’s cellular telephony sector continues to grow. India added 10mn mobile
phone subscribers in September, taking the total subscriber base to 310mn.
- Wipro’s net profit for Q2 grew just 1.2%, missing forecasts. While Wipro has not seen any project cancellations
so far, decision making by clients is getting delayed. However, the deal pipeline still looks good, as per the
management.
- Hindalco Industries may sell stakes in group companies to raise funds to repay a part of the $3bn bridge loan it
obtained to buy Novelis.
- BHEL has bagged an order worth Rs6.4bn for setting up a 412Mw hydro-electric project in Himachal Pradesh.
- According to press reports, ITC is understood to have accumulated losses of Rs700Cr over the past seven
years in its food business. The segment which crossed Rs1,000Cr revenue mark in the last financial year, is
reportedly losing on an average, Rs60Cr per year.
Results to be announced today
Bajaj Auto, TCS, Wipro, Reliance Infrastructure, Educomp Solutions, Jindal Saw, Cipla, Bank of India, Yes Bank,
Sesa Goa, IDFC, 3i Infotech, Neyveli Lignite, Hotel Leela Venture, McDowell Holdings
US markets yesterday
The US markets declined 2.5% with several companies posting quarterly earnings misses and cautious outlook
overshadowing signs of improvement in the credit markets. The new plan of the government to boost money
market funds and gloomy corporate outlooks kept investors on the edge. Financials closed down 1.8%. Earnings
were mixed; of the 77 companies that reported earnings, 52% topped estimates, 35% missed and 13% were inline.
Outlooks were cautious of the 49 companies that issued guidance, 45% were negative, 30% were in-line, 21%
were mixed and only 3% were positive. In stock specific earnings action, Apple beat market forecasts but gave a
weak outlook. Yahoo’s Q3 profit declined 64% and it announced layoffs of 1500 workers and lowered its revenue
forecast. Citibank being downgraded and word from billionaire Kurt Kerkorian that he is dumping Ford shares
added to downside in the markets.
Views on markets today
A strengthened Yen brought the Japanese markets down this morning. Overnight fall of the US markets also led to
negative sentiments in Asian markets. Fears of global recession are mounting. We expect Indian markets to
perform in line with their global counterparts and remain negative today. Apart from the weak global cues we may
see a profit booking in heavyweight stocks. Domestic institutions have been in the buying mode over the last two
days. We expect markets to remain in a cautious state till the announcement of RBI's monetary policy on October
24. We may see a weakness in the Wipro stock. The company issued cautious near term outlook because of
deteriorating economic conditions. Tech Mahindra may see some action after its 56% growth in the bottom line. A
few major companies are announcing results today which will also drive the market movement. We note that
speculative activity in top traded stocks seems to have shifted to the BSE from the NSE. Aggregate deliverable
volumes for top 10 stocks (in terms of value of turnover) stood at just 12.6% on the BSE, vis-a-vis 25.4% on the
NSE.
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USA stock market daily report by Millenium Traders (December 23, 2008, Tuesday, 10.30 p.m. GMT), 23 December 2008
USA stock market daily report by Millenium Traders (December 22, 2008, Monday, 10.30 p.m. GMT), 22 December 2008
USA stock market daily report by Millenium Traders (December 19, 2008, Friday, 10.30 p.m. GMT), 19 December 2008
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Verint Systems price target reduced, 7 December 2007
Thomas Weisel upgraded Intel to "overweight", 6 December 2007
UBS upgraded price target on Exxon Mobil to $96, 21 November 2007
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Indian stock market morning report by Keynote Capitals (December 31, 2008, Wednesday, 7.00 a.m. GMT), 31 December 2008
Indian stock market morning report by Keynote Capitals (December 30, 2008, Tuesday, 7.00 a.m. GMT), 30 December 2008
Indian stock market morning report by Keynote Capitals (December 29, 2008, Monday, 7.00 a.m. GMT), 29 December 2008
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Keynote Capitals recommends to buy Logix Microsystems Ltd., 4 November 2008
Keynote Capitals maintain "buy" recommendation on Pyramid Saimira Theatre, 5 February 2008
Keynote Capitals recommends to buy Euro Ceramics Ltd., 5 February 2008
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Russia's long-term rating has been cut by S&P, 9 December 2008
Russian stock market morning report by Veles Capital (October 8, 2008, Wednesday, 7.30 a.m. GMT), 8 October 2008
Russian stock market morning report by Veles Capital (October 7, 2008, Tuesday, 7.30 a.m. GMT), 7 October 2008
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Veles Capital upgraded price target on Rosneft from $14.31 to $15.11, recommendation "buy" unchanged, 18 September 2008
Veles Capital set price target of $5.75 on NLMK, recommenation - "buy", 17 September 2008
Veles Capital reduced price target on Lukoil from $138.44 to $129.63, recommendation "buy" unchanged, 15 September 2008
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