RTTNews - Monday, the Indian market may open higher on the back of positive Asian cues after the International Monetary Fund or IMF said it will raise its 2010 growth outlook for the world economy.
In a keynote address to Turkish Industrialists' and Businessmen's Association in Bodrum, IMF's First Deputy Managing Director John Lipsky said on Friday, Financial conditions have improved, confidence is recovering gradually, and indicators of future production and demand have firmed. Reflecting these developments, I expect that in the coming weeks we will revise our growth projections modestly upward, mainly with regard to 2010.
However, considering the fact that the U. S. markets finished Friday's trading on a mixed note, investors are likely to take profits on every rise. Pre-budget institutional selling and short covering ahead of June series derivatives contracts expiry on Thursday may lead to volatility.
On the other hand, the country received 45% less than normal rain in June in a development that can hinder the prospects of economic recovery. Fears that the central bank may reverse its easy monetary policy stance may also dent investor sentiment.
Last week, the Indian market snapped its 14-week winning streak, as stretched valuations amid weak global cues triggered profit taking. Net selling by foreign funds and fears about a sharp correction before the budget also weighed on market movement. The BSE Sensex lost 716 points or 4.70% to 14,522 and the S&P CNX Nifty ended at 4,314, down 270 points or 5.89% for the week. The BSE mid-cap index moved down 5.28% and the small-cap index shed 6.60%.FIIs pulled out nearly Rs.1,700 crore from Indian equities last week, according to data released by market regulator SEBI.
Stocks to Watch
Tech Mahindra, the new owner of Satyam Computer Services, has given the fraud-hit IT firm a new brand identity - 'Mahindra Satyam.'
The govt. has designated State Bank of India(SBI) as the operationalizing agency for setting up an sovereign wealth fund with the Qatar govt. SBI also plans to set up a general purpose private equity fund jointly with sovereign entities in Oman.
DLF is reportedly close to raising $300 million foreign debt from Standard Chartered Bank to invest in its integrated township projects.
Tata Tea increased its stake in Mount Everest Mineral Water to 40.11 percent after acquiring a 4.11 per cent stake for a little over Rs 11 crore through two separate open market transactions on the BSE on Friday.
Speculation is rife that Neyveli Lignite Corporation could be one of the candidates on the government's disinvestment list. The company reported a 12.5% rise in its FY09 sales but its profits after tax dipped 25% year-over-year.
Berger Paints India announced a modest 3.6% drop in its FY09 net profit. A BG Shipyard' net profit for the quarter ended March rose 12.84% year-over-year.
Petroleum Minister Murli Deora asserted that nothing could be done on the KG gas dispute without the active involvement of the government. He said that he was in touch with the Ambani brothers Mukhesh and Anil and said the government cannot afford to lose the money due to the dispute, as it needs revenues from KG gas for development of the country.
ICICI Bank is taking a close look at costs and plans to rejig its business to save up to Rs1,300 crore in the fiscal year to next March, reports suggest. .
Reliance Communications has reportedly started preliminary talks with China Mobile, the world's largest mobile company, for a strategic alliance and possible equity participation of 5 to 6 per cent.
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