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Monday 20 October 2014

Sensex, Nifty maintain strong momentum; Nikkei surges 4%



12:45pm JSPL under pressure

Shares of Jindal Steel & Power tanked 6 percent as investors are growing nervous after CBI registered a fresh case of alleged cheating and corruption against the company, in connection with its probe into coal blocks allocation probe.

A CBI spokesperson, on Sunday, said that it is the 36th FIR in connection with its probe into the coal blocks scam.

The fresh case has been registered against Jindal Stripes Limited, Jindal Steel and Power Limited and unknown public officials for alleged criminal conspiracy and cheating under the Indian Penal Code and provisions of the Prevention of Corruption Act, CBI sources said.

12:30pm PE deal with unlisted company

 US private equity firm Warburg Pincus has agreed to buy a significant minority stake in Kalyan Jewellers for about USD 200 million, five sources with knowledge of the transaction told Reuters on Monday.

The Indian jewellery manufacturer and retailer will use the capital for expansion purposes, said the sources, who declined to be named as they were not authorised to speak to the media.

"The deal is almost done and we may probably announce it later the day," said one of the sources, who is directly involved in the stake sale.

Kalyan and Warburg Pincus did not have immediate comments when asked by Reuters.

12:15pm Nikkei rallies

 Japan's Nikkei share average surged 4 percent to post its biggest daily rise since June 2013 as investors took heart from upbeat US data and the weaker yen lifted exporters such as Toyota Motor Corp and Honda Motor Co.

Also underpinning the market was news that Japan's USD 1.2 trillion public pension fund will likely raise its allocation to domestic stocks to about 25 percent from 12 percent at present.

People familiar with the process told Reuters that a weighting in the middle of the 20-30 percent range is the main proposal for an impending reallocation of the fund's asset mix and is under final discussion within GPIF.

The Nikkei share average added 578.72 points to end at 15,111.23, recouping most of the losses posted last week.

Upbeat US consumer confidence supported investor sentiment and lifted risk appetites. The Thomson Reuters/University of Michigan index of consumer sentiment unexpectedly rose in early October to its highest level since July 2007. Separate data showed groundbreaking on new homes rose more than expected last month.

Traders said investors scooped up recently-battered stocks after the Nikkei tumbled 5 percent last week on concerns about faltering global growth and the stronger yen, reports Reuters.

12:00pm Market Check

 Bulls kept tight control over bears on the first day of Diwali week. Key indices gained more than 1 percent each buoyed by the election verdict in Haryana and Maharashtra and the much awaited reform moves by the government. Midcaps too gained in-line with frontliners with the BSE Midcap and Smallcap indices rallied 1.4 percent each.

The Sensex climbed 367.57 points to 26476.10 and the Nifty surged 111.65 points to 7891.35. About 1686 shares have advanced, 771 shares declined, and 108 shares are unchanged on the Bombay Stock Exchange. Madhu Kela of Reliance Capital is bullish on equities with a three-year horizon and expects the asset class to outperform others like real estate, fixed income and gold in that time frame.

 Post state elections, the government raised gas prices to USD 5.6 per mmbtu and deregulated diesel linking it to global market prices. Key beneficiaries, oil marketing companies stocks and ONGC gained anywhere between 4-6 percent in trade. Meanwhile, the BJP is still undecided over going with the Shiv Sena in Maharashtra despite Uddhav Thackeray's overtures, say BJP sources.

With 47 seats, the BJP is set to form its first ever government in Haryana. On the global front, Japan's Nikkei led a strong rally in Asia, rising 4 percent on the back of strong US data. Analysts expect Europe to open higher, tracking strength in Asia. More Information please vista this site www.bigprofitbuzz.com


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