Morning Mantra Feb 10

Today's Morning Mantra Highlights:

 

International News:

• German Finance Minister Wolfgang Schaeuble will brief lawmakers today on steps he may take to support the Greek government as it braces for a wave of strikes protesting deficit-reduction plans. (Source: Bloomberg)
• Japanese machinery orders rose the most in nine years from a record low, supporting a recovery from the country's deepest postwar recession. Domestic orders, a sign of business investment in three to six months, climbed 20.1 percent in December from a month earlier, the Cabinet Office said today in Tokyo. That was faster than the median 8 percent gain estimated by economists. (Source: Bloomberg)
• Wholesale inventories fell by 0.8% in December after rising 1.6% in November, according to a government report released in the morning. Economists surveyed by Briefing.com thought inventories would rise 0.5%, on average. (Source: CNNMoney)
• Asian stocks rose after European officials said they may help Greece grapple with its budget deficit, easing concern a sovereign default will cripple a global economic recovery. (Source: Bloomberg)

 

Domestic News:

• India's IT-BPO market (including exports) could touch USD 285 billion in 2020, growing at a CAGR of 15 per cent. (Source ET)
• Prime Minister's economic adviser C Rangarajan has made a strong case for withdrawal of stimulus given to the industry to combat the impact of the global economic meltdown, saying the growth impulses are strong. (Source ET)
• Coal India (CIL) has lowered its production target to 486 million tonnes from 520 million tonnes for the 11th Five Year Plan period (2007-12), in a mid-term review. (Source BS)
• Top Congress leaders will today ponder over the Kirit Parikh report suggesting increase in prices of petrol and diesel. (Source ET)
• Centre may import 1mt sugar for subsidized sales. (Source ET)
• Global sugar shortage may peak in the third quarter this year on demand from the US, Mexico, India and Pakistan. (Source ET)

 

Corporate news:

 

• State Bank of India has hinted that lending rates may rise from the second quarter of fiscal 2010-11, even though there is no immediate pressure on interest rates. (Source ET)
• GMR Infrastructure's consortium has been awarded a road construction project worth Rs. 17 billion, from the National Highways Authority of India, in Karnataka.(Source ET)
• Bharat Electronics (BEL) expects to get business of Rs 22,500 crore, for manufacture of electronic warfare (EW) systems for the Indian Armed Forces, in the next eight to ten years. (Source BS
• Sadbhav Engineering has bagged a road project worth Rs 1,225 crore in Karnataka from the National Highways Authority of India (NHAI).(Source BS)

o        Electrical and Gulf Projects Operating Company, a part of L&T's construction division, has bagged orders aggregating Rs 582 crore for four electrical projects in India and UAE. (Source BS)

• Adani Power has decided to scrap one of its long-term power supply pacts with Gujarat Urja Vikas Nigam. This move will attract a penalty of Rs. 100 cr as per the agreement. (Source ET)
• Golden Tobacco Company can now proceed with its proposed plan to sell its non-core assets after shareholder objections were withdrawn. (Source ET)
• Court ruling allows Cipla to market generic cancer drug. (Source BL)

 

 Derivative View:

• Nifty near contracts ends the Day up by 28.55 points at a premium of 0.70 points paring OI by 4.9% indicating short covering.
• Nifty OI PCR in at 1.058 compared to 1.021 previous day.
•  Nifty puts sees addition of 20.88 Lakh  and calls sees paring of 1.69 Lakh over the day.
• Highest OI in Nifty calls seen at 5000 Feb strike and puts at 4700 Feb strike.
• Nifty VIX at 29.91 from 30.36  last day.
• Long build up seen in BRFL, PATNI, NEYVELILIG, TULIP, CHENNPETRO, SCI, FINANTECH, RELINFRA &  ULTRACEMCO.
• FII side during the day sees significant short covering in Nifty futures marginal long build up in stock futures and unwinding of positions in Nifty options seen during the day.

 

Naresh Cherukuri