Views on markets today

- After a weak opening, the Sensex recovered sharply to close flat, supported by oil and gas, PSU and power stocks. However, banks and metals dropped sharply.

- FIIs remained sellers, selling equities worth Rs6.55bn. Domestic institutions supported the markets by buying equities worth Rs3.18bn. Market breadth was negative at around 0.7x.

- Asian markets dropped after a positive opening today. Markets are cautious before the end of Fed meeting today. Energy stocks are up on rising energy prices.

- We expect a positive but a cautious opening for the Indian markets today. The markets may remain volatile on the lack of FII participation before the Fed announcement.

Economic and Corporate Developments

- The rupee (INR) strengthened this morning to 48.42/43 per USD, stronger than yesterday’s close of 48.53/55.

- NYMEX Crude Oil (CL) is currently trading at $68.60 per barrel.

- India has imposed a safeguard duty of 14% on imports of aluminium flat rolled products from China. The duty would be retrospective to March 23 and would be in place till March 22, 2010.

Buzzing Stocks

- Bharati Shipyard is likely to offer a better counter bid for a controlling stake in offshore services firm Great Offshore, compared to rival ABG Shipyard’s offer of Rs375 per share for a 32% stake. Bharati had last month offered Rs344 per share. Bharati has invested Rs2.45bn to acquire about 19.5% in Great Offshore, while ABG Shipyard holds just 2%.

- Idea Cellular plans to raise Rs60bn through a mix of foreign currency and rupee loans for the rollout of services in new circles and strengthening operations in the existing circles in the next two years.

- Firstsource Solutions has bagged a five-year outsourcing deal worth Rs145Cr from Idea Cellular for providing customer management and billing services in Idea’s Kerala and Tamil Nadu circles.

- KEC International has won 3 new orders worth Rs110Cr, one of them in Peru, South America and two in Chattisgarh, India. The company has re-entered South America by a tower supply from order from Peru worth Rs33Cr. In Chhattisgarh, it has bagged 2 orders worth Rs77Cr turnkey transmission line order from the Chhattisgarh State Electric Board.

- In continuation of KS Oils' strategy of acquiring palm plantation assets in South Asia, the company acquired additional 35,000 acres of palm plantation land in Indonesia. With this acquisition, KS Oils' palm plantation land bank assets in Indonesia stand at 85,000 acres with 50,000 acres being acquired in 2008.

Results to be announced today
ONGC, Bharat Electronics, Gateway Distriparks, Navneet Publications

US markets

US markets ended negative yesterday as Boeing pulled down the Dow Jones Industrial Average (DJIA), while Boston Scientific gained on a positive medical study and Starbucks got a boost from bullish investor sentiment.

The markets traded in a tight range, declining slightly early in the session after weaker-than-expected data on the housing market.

Boeing lost 6.5%, as once again it delayed the maiden flight of its 787 Dreamliner, saying an area within the sideof-body section of the aircraft needs to be reinforced.

Boston Scientific after its highly anticipated study, called Madit-CRT, met its main goal by showing devices for heart failure called CRT defibrillators were associated with significant reduction in death or heart-failure interventions when compared with certain traditional defibrillators. Other medical device companies also climbed higher.