Nik’s Diary
The Nifty was
expected to open in green due to positive start to most Asian Indices. However,
there is a huge pessimism in the markets due to the ongoing worries about the
Fiscal Cliff. The pessimism took an exponential hike when the talks were broken
down between the Democrats (Obama) and the House Speaker John Boehner. The White
House and Congressional leaders have until January 1 of the New Year to work
out a budget deal. Hence prepare yourself for an exciting first week of the New
Year. The matter of fact is that Washington’s news has overshadowed the batch
of upbeat economic data, including a report showing a bigger than expected
increase in durable goods orders which increased by 0.7% in November following
a 1.1% increase in October. The Commerce Department also released a separate
report showing a much bigger than expected increase in personal income in
November. Traders are likely to keep a close eye on developments in Washington as
the fiscal cliff deadline approaches. The budget negotiations are likely to
once again overshadow a batch of economic data, including reports on new home sales,
consumer confidence, and Chicago-area business activity.
CBI charges Vodafone, Bharti
in telecom case: The CBI on Friday filed a chargesheet against Bharti
Airtel, Vodafone and former Secretary of the Department of Telecom Shyamal
Ghosh for alleged irregularities in allocating additional 2G spectrum in 2002.
No promoter of any telecom company has been named in the charge sheet. The CBI
has alleged that the decision to allocate additional spectrum to mobile
companies in 2002 was a conspiracy to benefit the telecom companies. It has
pegged the loss to the Government at `846cr. This development adds to the other
regulatory overhangs going on in the Indian telecom sector.
Oil ministry to allow Cairn
India to further explore: Rajasthan oilfields Media reports suggests that
the oil ministry has decided to allow Cairn India to further explore its
Rajasthan oilfields and this would help the company raise its output by more
than 70%. Buy Cairn Target price of 375.
Apollo Tyres issues warrants
to promoters: Apollo Tyres (APTY) has issued 5mn warrants to promoter group
entity, Sacred Heart Investment at a price of `86.2/warrant. The issue of warrants to
promoters is on the expected lines as the company had already received board’s
approval and shareholders nod to issue convertible warrants up to 27.5mn to the
promoter’s. At `87, the stock is trading at 5.9x FY2014E earnings. Long Term
Target Price ’96.
Economic and Political News:
FDI inflows jump 65% to US$1.94bn
in October 2012
S&P expects India's economic
growth at 6.5% in 2013
Environment clearance issue for
coal blocks to be examined
FIIs pour US$3.4bn in Dec, inflows
cross US$23bn in 2012
Government may put 3% holding in
public sector ETF
India Inc's equity mop-up crosses
`30,000cr in 2012
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