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Indian stock market and companies daily report (October 08, 2012, Monday)

Contributed by Angel Broking

The Indian markets are expected to open flat with a negative bias. The SGX Nifty is trading marginally in the red. Most of the Asian markets are trading in the negative zone.

The US markets finished mixed on Friday after reacting positively in early trade to the monthly jobs report. The report showed that employment in the US increased by 114,000 jobs in September, roughly in line with the increase expected by economists. In the bond market, treasuries came under pressure on the heels of the upbeat jobs data.

Meanwhile key benchmark indices in India snapped their four-day winning streak on Friday as investors resorted to profit booking after the rally. The BSE Sensex fell below the psychological 19,000 mark, a day after surpassing the level on Thursday, 4 October 2012. The markets remained weak throughout after they opened marginally in the green in opening trade. The markets declined despite the second round of reforms announced by the government with respect to the pension and insurance sectors. The trading in NSE cash segment was affected due to an erroneous trade which lead to the trigger of circuit filter.

Markets Today

The trend deciding level for the day is 18,944 / 5,484 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 19,131 - 19,324 / 6,079 - 6,411 levels. However, if NIFTY trades below 18,944 / 5,484 levels for the first half-an-hour of trade then it may correct up to 18,751 - 18,564 / 5,152 - 4,556 levels.

Supreme Court order ban mining in Goa

The Supreme Court (SC) ordered a blanket ban on the extraction and transportation of the iron ore in Goa and also formed a Centrally Empowered Committee (CEC) which will submit its report within four weeks after examining the illegalities in this sector. This development is an outcome of the move by the state government which had last month put a ban across all the 93 mines in Goa. We therefore await further clarity on this matter and maintain our Neutral view on Sesa Goa and Sterlite.

RBI may invite applications for banking licenses later this month

According to media sources, RBI may come out with the final guidelines for new banks and invite applications for banking licenses later this month. RBI is expected to offer licenses for four new banks, as per the reports. The RBI has only issued two new banking licenses since 2000, to Yes Bank and Kotak Mahindra Bank. Issuances of new licenses are expected to increase the competitiveness within the banking sector and also aid in increasing the financial inclusiveness in the country.

Economic and Political News

- DoT says no to raising ceiling on FDI in telecom to 100%

- CCI chairman rubbishes retail FDI concerns

Corporate News

- Godrej Properties gives up plan to buy HDIL's Bangalore plot

- RIL refuses to follow D6 gas swap order

- Videocon sues Fitch unit over rating action