Market News: Videocon, Punj Lloyd, RBI

Videocon Industries is reportedly set to enter financial services sector by forming a non-life insurance joint venture with Boston-based Liberty Mutual Group. Videocon will hold 74% stake in the venture.

Net profit of Punj Lloyd declined 97.02% to Rs 1.25 crore on 44.25% decline in net sales to Rs 1032.29 crore in the quarter ended September 2010 over the quarter ended September 2009.

The rupee edged higher on Tuesday as the dollar's losses versus major units offset demand related to Coal India's over-subscription refund.
 

D Subbarao governor of the Reserve Bank of India on Tuesday announced a hike of 25 basis points in the repo and reverse repo rates, respectively, in the mid-year review of its credit policy. The cash reserve ratio (CRR), as expected, has been left untouched at 6%.

The RBI had cautioned on Monday that inflation was still above its comfort level, adding to expectations that it will raise interest rates for the sixth time this year at the review.

The yen fell against its higher- yielding counterparts after Australia's central bank unexpectedly raised interest rates and a report showed wages in New Zealand increased.

Oil rose for a second day to trade near a two-week high before a government report forecast to show that U.S. supplies of diesel and heating oil are at their lowest level since July.

Indian and Global Stock Market Review

Equity benchmarks closed rangebound session on a flat note and shrugged off key rates hike by the Reserve Bank of India (RBI). The consolidation was imminent today after a steep rally on Monday. the realty companies' shares have seen sharp cut on expectations that banks may hike home loan rates.

30-share BSE Sensex closed at 20,345.69, down 9.94 points while the 50-share NSE Nifty rose just 1.45 points to 6,119. The Nifty November futures ended at 30 points premium, as per provisional data.

India is unlikely to alter its nuclear law to shield General Electric Co. and other U.S. equipment suppliers from accident claims, derailing hopes of deals during President Barack Obama's visit starting Nov. 6.

Global Market Cues:

Most Asian shares declined on Tuesday as the yen traded near a 15-year high before policy meetings this week by the US Federal Reserve and Bank of Japan. The key benchmark indices in China, Indonesia, Hong Kong, Japan, Taiwan and South Korea fell between 0.10% and 0.39%. But, Singapore's Straits Times index rose 0.36%.

European stocks fluctuated as investors waited to see how much the Federal Reserve is willing to support the economic recovery as the central bank's meeting starts today. U.S. futures and Asian shares rose.

Growth in China and India powered ahead last month, providing welcome support for the global economy at a time of sluggishness in the United States and most of Europe and a faltering in Japan's recovery.

Technical Outlook on Nifty for 03rd Nov. Wed.

Nifty future moved in a narrow range between 6128 to 6174 levels. Nifty future may continue to remain in this range of 6050-6200 until it breaks on either side. Support for nifty future is at 6105/6065 levels and resistance is at 6180/6250 levels.

Bank Nifty Tips for Tomorrow

Bank nifty is moving under a consolidation phase but its over all trend is bullish. Bank nifty is managing 12900 level. If it sustain above this level we can see some up move from here, resistance for bank nifty is at 13130/13250 and support at 12600/12445. One should take long position in bank nifty above 12900 with target of 12930/12960.

Indian and Global Share Market analysis

Equity benchmarks started November on a strong note led by banks, telecom, realty and capital goods ahead of credit policy tomorrow. The Sensex added more than 300 points and the Nifty successfully settled above the 6100 mark. Overall it was a good start for the week ahead of major events domestically as well as internationally.

Inflation in India is a matter of concern, but is expected to moderate to acceptable levels, Finance Minister Pranab Mukherjee said on Monday.

Sun Pharmaceutical Industries Ltd., the nation's biggest drugmaker by market value, gained to a record after its profit climbed 12 percent on higher demand for generic medicineses.

Global Markets:

Asian shares edged higher on Monday on strong manufacturing data from China. The key benchmark indices in China, Hong Kong, Singapore, Taiwan, South Korea, and Indonesia rose between 0.36% and 1.79%. But, Japan's Nikkei 225 index fell 0.18% as the yen's strength weighed on exporters.

U.S. stock-index futures climbed, with the Standard & Poor's (S&P) 500 Index poised to continue last month's rally, after a report showed Chinese manufacturing expanded at the fastest pace in six months.

The US gross domestic product grew at an annual rate of 2% in the third quarter, up from 1.7% the previous quarter. Consumer spending increased 2.6% in the third quarter, accelerating from a 2.2% rise in the second.