Deal or No Deal; Markets playing the waiting game
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Indian markets are expected to open flat and might take a direction in
the second half of the trade as investors are frustrated with the
equities as they have become increasingly hard to predict. BAIL OUT
has taken center stage as major institutions and even retail players
have their eyes poised on US as market men believe that the outcome
could have an impact on our economy.U.S. stocks advanced, led by banks, as investors speculated Congress would agree on a $700 billion bailout of financial institutions to help revive credit markets. Futures retreated in after-hours trading on concern the rescue plan hit a snag. The Dow gained 1.82 percent where as the NASDAQ gained 1.43 percent. Both the indices gave up nearly half of their gains in after hours trade. Congressional leaders said they struck an agreement in principle on a massive, unprecedented package to rescue the staggering U.S. financial system on Thursday but sticking points including objections from some House Republicans remained even after a meeting with President Bush about the plan. Asian stocks are expected to be flat on the growing uncertainty about the bail out. Crude-oil futures closed above $108 per barrel Thursday, finding support from news that bailout plan is closer to approval as well as from falling U.S. product inventories and storm-damaged energy facilities in the Gulf of Mexico. With foreign institutional investors preferring debt to equity in India, the government is mulling a hike in the cap imposed on FII investment in the debt market at a meeting slated for later this month.The limit on FIIs investment in corporate debt was raised to $3 billion from $1.5 billion and $5 billion in government securities from $3.2 billion in June. ONGC and Cairn India could be good bets for short term investors as the price of oil is getting dearer. Man Ind made a good move yesterday on securing an order worth more than 1000 Crores.Concerns of equity dilution (rights issue) took a toll on Suzlon which has lost nearly 8 percent yesterday. Ranbaxy Laboratories Ltd’s woes continued with New Zealand’s health ministry saying that three drugs imported into that country will be voluntarily quarantined by the suppliers till further tests are done. We recommend a 'Strong Accumulate' on Ranbaxy and Rs 280-290 band is a good band to accumulate this stock. The stocks of Raymonds and Wockhardt might see some action on the news flow. Market Close Box BSE Sensex 13547.18 -145.34 NSE Nifty 4110.55 -50.70 USD Rs.46.25 Oil Nymex $108.0 Suitable stocks for 'Intraday' today <ICICIBANK,BHARTIARTL,DLF,AXISBANK,TCS,BHEL,STER,GAIL,TATAPOWER,BPCL> N.Sukumar Research Dept. --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Kences1" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/kences1?hl=en -~----------~----~----~----~------~----~------~--~---
