Indian markets are expected to open largely flat tracking
flat to negative opening in most of the Asian markets as data out over the
weekend showed a surprise drop in Chinese exports in September. In addition,
August IIP data (for India) released on Friday came in at paltry 0.6% vs 2.8%
in July.
US markets moved mostly higher on Friday benefiting from signs that lawmakers in Washington are making progress toward resolving the latest fiscal crisis and House Republicans were proposing a deal that would avert default and end the 11-day-old government shutdown. On the economic front, Thomson Reuters and the University of Michigan released a report showing that US consumer sentiment has continued to deteriorate in the month of October with index coming in at 75.2 compared to the September reading of 77.5. Meanwhile, European markets also ended higher on Friday on optimism that a deal on the debt-ceiling may be soon reached in the US, as the partial government shutdown enters the 11th day.
Indian markets sharply on Friday, with IT and realty stocks leading the rally, after Infosys reported healthy set of earnings results and capital market regulator SEBI issued draft regulations for setting up real estate investment trusts to increase the depth of India's real estate market in the country.
US markets moved mostly higher on Friday benefiting from signs that lawmakers in Washington are making progress toward resolving the latest fiscal crisis and House Republicans were proposing a deal that would avert default and end the 11-day-old government shutdown. On the economic front, Thomson Reuters and the University of Michigan released a report showing that US consumer sentiment has continued to deteriorate in the month of October with index coming in at 75.2 compared to the September reading of 77.5. Meanwhile, European markets also ended higher on Friday on optimism that a deal on the debt-ceiling may be soon reached in the US, as the partial government shutdown enters the 11th day.
Indian markets sharply on Friday, with IT and realty stocks leading the rally, after Infosys reported healthy set of earnings results and capital market regulator SEBI issued draft regulations for setting up real estate investment trusts to increase the depth of India's real estate market in the country.
Economic and Corporate Developments
- The Reserve Bank of India's (RBI) net dollar sales
in the forex spot market was $2.46 billion in August — when the rupee touched
an all-time low of 68.85 against the dollar during intraday trades — compared
with $5.9- billion in July. According to RBI data released on Thursday, it sold
$3.1- billion and bought $324 million in August.
- The finance ministry pegs the current account deficit (CAD) at 3.7 per cent of gross domestic product (GDP) for the current financial year, but a survey by the Federation of Indian Chambers of Commerce and Industry (FICCI) projected it to be four per cent. This is high since many analysts peg the CAD at less than that forecast by the ministry.
- The Reserve Bank of India (RBI) has granted permission to banks to borrow from international/multilateral financial institutions for a limited period of up to November 30, said RBI on Thursday. RBI also said such borrowings should be for the purpose of general banking business and not for capital augmentation. According to the central bank, such borrowings shall be eligible for the concessional swap facility of RBI.
- The finance ministry pegs the current account deficit (CAD) at 3.7 per cent of gross domestic product (GDP) for the current financial year, but a survey by the Federation of Indian Chambers of Commerce and Industry (FICCI) projected it to be four per cent. This is high since many analysts peg the CAD at less than that forecast by the ministry.
- The Reserve Bank of India (RBI) has granted permission to banks to borrow from international/multilateral financial institutions for a limited period of up to November 30, said RBI on Thursday. RBI also said such borrowings should be for the purpose of general banking business and not for capital augmentation. According to the central bank, such borrowings shall be eligible for the concessional swap facility of RBI.
Result Review
Reliance Industries (CMP: Rs.863/ TP: - Rs.953/
Upside: 10%)
Reliance Industries Ltd.
(RIL) is scheduled to announce its 2QFY2014 results today. We expect the
company's top line to increase by 6.4% yoy to Rs.96,117cr due to higher
petrochemical prices during the quarter and INR depreciation against the US$.
We expect the company's operating margin to contract by 95bp yoy to 7.7% due to
lower gas production. The company's bottom-line is expected to increase by only
2.7% yoy to Rs.5,555cr. We maintain our Accumulate rating on the stock.
For Latest Stock Market news,Updates and free Stock Tips visit our site www.capitalheight.com
No comments:
Post a Comment