While you were sleeping, market course was decided

Moneycontrol Bureau

US president Barack Obama unveils the jobs plan, lays out a USD 447 billion dollars package in tax cuts and government spending to help boost the US economy. [The Obama speech]

BUT US markets ended lower in volatile trading after fed chairman Ben Bernanke failed to provide additional detail on how to boost the weakening US economy.

Fed chairman Ben Bernanke reiterated his speech from his Jackson Hole speech in August on the Fed's commitment to providing stimulus for the economy but offered no specific promises or details about what action could be taken.

And on economic data front, jobless claims edged higher last week to 414,000. Meanwhile, the trade deficit narrowed more than expected in July, posting its biggest month-to-month percentage drop since February 2009.

European markets closed marginally up, recovering from losses following European Central Bank president Jean-Claude Trichet's gloomy comments about the economy.

The European Central Bank came out with its rate decision yesterday.

It kept the rate unchanged at 1.5% -- signaling a change in its policy course. Remember, the ECB had hiked rates for the second time this year just two months ago.

As markets expected, the Bank of England also left the bank rate unchanged at 0.5%. This move leaves it with the option of restarting its quantitative easing program, should the economy weaken further.

Rates may not have changed, but the ECB's inflation and growth outlook has. That's the word ECB president Jean-Claud Trichet.

In the currency space, the euro falls to a two-month low against the dollar as Trichet highlighted downside risks to the euro zone economy, signaling no rate increases in the near term.

In commodities, crude declines, trimming a third week of gains, as investors bet that signs of a slowing US economy indicate fuel demand will falter.Gold gained almost 2% after Bernanke held off from offering new measures to spur growth, boosting demand for the precious metal as a store of value.

Gold gained almost 2% after Bernanke held off from offering new measures to spur growth, boosting demand for the precious metal as a store of value.

BACK HOME, it was a steady and range-bound session at the Dalal Street. A late spike up, helped the Nifty reclaim the 5,150 mark. The Sensex ended exactly 100 points higher at 17,165. [Get all the pre-market cues HERE]

In case you've missed it: The CAG faults the Oil Ministry and the DGH for about-turn on excess area for RIL blocks. However, the final report in Parliament has toned down charges, but calls for Oil Ministry review of excess area and greater oversight with respect to costs.

Following the tabling of the CAG reports on the KG-D6 block, the CBI is set to finalise its preliminary enquiry report.

It has been said that RIL increased the cost of production from USD 2.4 billion to USD 8.8 billion and officials at the petroleum ministry had favoured RIL in the process. This is an allegation that the CBI has been investigating.

Now, on the basis of the CAG report, it will be finalising its P-E report.

IN TOP GEAR: The board of Suzuki Motor Corporation will decide in October, on setting up a manufacturing plant in Gujarat for Maruti Suzuki.

That's the word from Suzuki chairman Osamu Suzuki, who met with Gujarat chief minister Narendra Modi yesterday. A decision on whether to apply for land for this project will be taken after that.

Maruti Suzuki chairman RC Bhargava, who was also part of the meeting, said Suzuki wanted more information about the land and the likely risks involved and this data is to be collected over the next few days. He added that Modi has assured the company of the state's full cooperation in setting up the plant.

OTHER STOCKS IN FOCUS TODAY

Bharti Airtel wins 2G and 3G licences in Rwanda. They invest USD 100 m over next three years in Rwanda. Sunil Mittal states that Rwanda is a key telecom market with immense growth potential

And rice companies will be other stocks to watch. Government has okayed open licence export of non-basmati rice and give nod for two million tonne of wheat export.

Delta Corp plans to sell stake to overseas players, in talks with Caesars, MGM (ET)

Sagar Salvi
sagar.salvi@network18online.com