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Indian stock market morning report by Keynote Capitals (November 18, 2008, Tuesday, 7.00 a.m. GMT)

Economic and Corporate Developments

- The rupee has opened weaker at 49.34 per USD.

- Crude prices are flat at $55.09 per barrel.

- Citigroup has lowered India's economic growth rate projection to 6.8% cent from 7.2% for this fiscal due to slowdown in consumption and investment.

- As per International Monetary Fund sources, up to 2% of the world's income, or $1.2tn, may be required to be spent on reviving the global economy.

- With India's exports getting dented in the troubled US and European markets, the government is working on a fiscal package for exporters and reviewing the target of $200bn for this fiscal.

- The RBI said that it is committed to ensuring adequate liquidity in all the country's financial markets.

- Fortis Healthcare is planning to invest around $500mn for expanding operations, and is already in talks with several international as well as domestic hospitals for acquiring stakes.

- With cash reserves in excess of $500mn each, IT majors TCS, Infosys, Wipro, Satyam, HCL and Cognizant are in a good position to tide over slowdown.

- Biocon will invest Rs100Cr in the next fiscal in enhancing its R&D to keep pace with increased orders from multinational firms, as other global firms have cut down on their expenditure on R &D.

- GVK Power to sell a 25% stake in energy business for $500-700mn.

- Unitech has repaid Rs 200Cr loan to Indiabulls Financials.

US markets last Friday

- The US markets closed lower overnight on worries regarding financial turbulence and recessionary fears. Citigroup's announcement of slashing 52,000 jobs (15% of its workforce) and negative GDP growth in Japan impacted the markets. The DJIA declined sharply by 2.6% led by aluminium producer Alcoa (down by 10.8%) and Citigroup (down by 6.6%).

- However, relief came for General Motors (GM). The US Government is considering a relief package to push towards Federal. GM has announced a stake sale of 3% in Suzuki Motor Corp. for $232mn.

- US retailer Target Corp reported a 24% drop in the bottomline. the company announced that it considered a temporarily suspension of its shares repurchase plans.The shares fell by 4.1%

- Jerry Yang has resigned from the CEO post of Yahoo. His resignation comes six months after Yahoo failed to negotiate a merger with Microsoft Corp., sending Yahoo's stock into a tailspin from which it still hasn't fully recovered.

Views on markets today

- Indian markets saw huge volatility yesterday. In the last 2 hours of the trading session, the Sensex recovered sharply by over 300 points. However, as per the provisional data from both stock exchanges, both FIIs and Domestic institutions were net sellers of Rs521Cr and Rs178Cr respectively.

- RBI said yesterday that it would provide enough liquidity to markets if required.

- Tracking the US markets cues, major Asian markets opened lower this morning. The drop was led by exporter and financial stocks.

- A few stocks may see some action today incl. Unitech which has sounded out PEs to sell hotel properties.

- GVK Power plans to sell 25% stake in its energy arm to raise around $500-700mn.

- Holcim to rethink India expansion as demand slowdown.

- UTV to shut Delhi office; 60 employees will have to quit.

- Infosys eyes $600-700mn acquisition in Europe, Japan.

- Bhilwara Spinners open offer @ Rs15/share.

- We may see a weak opening today; volatility may continue.