Market cues for today's trade

ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets DLF BSE | NSE 01/06/12 Are Mutual Funds betting on DLF? Other Stocks in this news Unitech | Reliance Industries | UTV Software Communications | KS Oils | Coal India | Reliance MediaWorks | State Bank of India | Hindustan Petroleum Corporation | Bharat Petroleum Corporation | Oil India | Indian Oil Corporation | Goa Carbon | CMC | Aanjaneya Lifecare |

Moneycontrol Bureau

It has indeed been a hectic day yesterday. While the Greece-Troika meet (EU and IMF) concluded last night, India had the announcement of the draft of the new telecom policy 2011 and also called in M&A rules for foreign players in the pharma sector. As a result, these two sectors are bound to see some action in today's trade.

The Nifty had closed at 4979 points and the Sensex at 16557 yesterday.

What could influence our market? Check it out:

Wall Street scored its best single session percentage gain in almost seven weeks following commitment by European leaders to recapitalize the region's flagging financial institutions.

The Dow has rallied over 1,000 points from last Tuesday's intraday low of 10404 while the S&P 500 rallied more than 3% for its best one-day jump since August. The CBOE volatility index finished near 33.

Accordingly, Europe too closed higher. Asia follows suit and the markets see a sharp rally in early trade today.  

In the currency space, the euro rallied 2% at 1.36 to the dollar on France and Germany's pledge to contain the crisis.

Commodities too participate in the rally, with Brent crude prices surging more than 2% above USD 109 while gold holds above USD 1670.

Back home, autos seem to be having a mixed bag of results. Industry body, SIAM, said that car sales fell 1.8% in September as rising interest rates and vehicle costs hurt demand. However, sales of trucks and buses, a key pointer to the country's economic activity, rose 18.05% to 70,634 in September. What out for how the sector trades.

Meanwhile, the government has okayed 11 FDI proposals worth Rs 182 crore.

In what comes as good news for ultra mega power projects, sources indicate that the power ministry could amend the UMPP norms. CNBC-TV18 has an exclusive.

Onto some stock specific news:

DLF has today moved the Competition Appellate Tribunal or Compat against the Rs 630 crore fine imposed on the company by the Competition Commission of India in mid August.

Unitech to set to move the Company Law Board against JV partner Telenor citing gross mismanagement by the company.

Meanwhile, Reliance is to ink a deal with UTV Software in which Walt Disney holds 50.44% stake. 

Meanwhile, the CAG has raised fresh concerns about costs claimed by Reliance for its KG-D6 block.

There are reports that USA-based ADM may buy four plants of KS Oils .

Meanwhile, the petroleum minister, Jaipal Reddy has expressed concerns over impact od weakening crude prices. He said that with every Re 1 fall, the impact on OMCs could be up to Rs 8,000 Crore per annum. He also said that the under-recoveries have indeed affected the financial health of the OMCs. Check out how HPCL , BPCL and Indian Oil  Corporation trade.

Coal India is another PSU in news. The union workers went on a strike yesterday. Newspapers report that the company might incur losses up to Rs 138 crore apart from production loss of 13 lakh tonnes. The could possibly come under some pressure intra-day today.

In the banking space, SBI has slashed its rights issue size to Rs 5000 crore. The long-pending issue is likely by December.

Goa Carbon , CMC and  Aanjaneya Lifecare are set to declare their financial results today for the quarter ended September 30, 2011.

Padma Venkatraman
padma.venkatraman@network18online.com