Market cues: 10 stocks making news this morning

Diamond Power BSE | NSE 29/05/12 Are Mutual Funds betting on Diamond Power? Other Stocks in this news EID Parry (India) | Shasun Pharmaceuticals | IRB Infrastructure Developers | Bhushan Steel | Reliance Industries | Network 18 Media & Investments | Ashok Leyland | Hero Motocorp |

European markets hit a two-month high in their first session of the year as data showed that the German economy was steaming ahead despite the crisis. The move was led by defensive utilities as volumes were low on account of the new year holiday in markets like the US and UK.

News from Europe

The DAX climbed 3%, CAC rose 2%, Italy climbed 2.4% and Spain rose 1.8%. The FTSE was shut yesterday.

Manufacturing activity in the eurozone in December declined to 46.9, but at a slower rate than November's 28 month low of 46.4. However the December PMI was still below the 50 mark for the fifth consecutive month.

Meanwhile, overnight, French president Nicolas Sarkozy and German chancellor Angela Merkel set out plans for their bilateral summit due to be held on January 9. It will be a key event to watch out for from Europe.

Spain is also in the spotlight after a slew of surprise tax hikes and wage freezes were implemented. Spain's budget deficit is likely to be at 8% of GDP versus the expected 6% earlier.

US Markets

The US markets will be back in trade today after yesterday's holiday.

Data to Watch

The ISM Manufacturing Index is expected to rise to 53.2 in December. Also watch out for construction spending data. Consensus estimates indicate it dipping to 0.5% for November.

Asian Markets

Asian markets opened on a positive note in thin volume trade with Japan and China shut today. Kospi rose 2%, Hang Seng rose 1.7%, Taiwan climbed 1.1% and Straits rose 0.6%. Nikkei was shut on account of the holiday.

Commodities & Currencies

In commodities, NYMEX Crude climbed to USD 100 levels after Iran said it has successfully test fired two long range missiles.

Gold too inched higher on safe haven buying. Gold and silver prices gained as Iran produced its first nuclear fuel rod, spurring investors to buy the precious metal as a haven. Gold currently trades above USD 1,570 levels.

In the currency space, the euro traded near an 11-year low against the yen on concern that Europe's debt crisis will hamper economic growth in the region. The euro is at 1.29 to the dollar.

Indian Market

It was a flat session on Dalal Street. The Nifty closed closed up 12 points at 4,636 while the Sensex shut shop at 15,517.

Stock Specific Action

In a bid to enable buybacks of PSU shares for the government's new disinvestment strategy- the Sebi board will meet today to change the regulatory framework in order to enable PSU's to buyback equity from the government.

And the telecom tribunal will take up the 3g intra-circle roaming issue today. Roaming pacts between telcos had been declared illegal by the telecom department.

The oil marketing companies' plan of hiking petrol prices by Rs 2 per litre has been trumped. Sources indicate that chairmen of IOC, HPCL and BPCL will be meeting on Wednesday. Keep a watch on these stocks.

The December auto sales for Hero Motocorp 's total vehicle sales were up 7.8% at 5.4 lakh units.

Ashok Leyland reported sales of 9,088 units for December including 1,099 units of the recently launched 'Dost'. Adjusting for Dost (launched only in October 2011), sales came in at 7,989 units, up 6% YoY and 13% MoM.

And the Tata Group of companies will be in focus today.  Tata Group chairman Ratan Tata said all group companies will get aggressive with cutting costs and realigning expansion plans to keep up with current realities.

The Economic Times reports that Reliance will invest Rs 1500 crore in the TV18 Group . Network 18 and TV18's board will meet today to consider the rights issue.

Bhushan Steel is said to have put Rs 20,000 crore in their Bengal steel plant on hold, says the Economic Times.

Qualcomm has offered to clear up Tulip Telecoms dues. It also will seek BWA licence, reports PTI.

IRB Infra will seek Rs 70 crore in damages from NHAI for shelving a project, reports the Economic Times. Will the stock move today?

EID Parry Ltd has temporarily closed 2 units in the area of Cuddalore, Pondicherry due to the cyclone. Shasun Pharma has closed a unit in the same region as well.

Diamond Power Infra purchases 6.3 MW Windmills near Kandia, Gujurat from Suzlon Energy

PE Jacob Ballas is set to invest Rs 200 crore in Religare Finvest Ltd which will be in the form of compulsory convertible preference shares.

There is an F&O ban on Ruchi Soya.

Chelsea Saldanha

chelsea.saldanha@network18online.com