Indian Markets May Cut Back Losses, Open positive

Indian equity markets cut back its losses and open positive. The SGX Nifty is trading up by 25 points at 4869 indicating a gap up opening to markets today.

Yesterday, the Indian equity markets crashed by over 1% as the political situation in Greece worsened, the rupee fell to a new low and the overall global economic growth slowed down.  For the first time in this calendar year (after the rally), the Sensex has fallen below the 16000 mark. 

Overnight on the global front, stocks in US and Europe fell yet another day as worries about Greece trampled enthusiasm that came with U.S. data, which looked to cast a favorable light on factory output and housing. Most Asian stocks this morning seem to be constantly moving in and out of positive territory with exporters mostly lower but real-estate plays helping support the market.

Back home, the chief concern lurking over our economy is the fate of our currency – Indian Rupee, which seems to busy depreciating against all major currencies. As per data from NSE, the INR is trading at its all-time low of Rs 54.6 which could have a terrible impact on our country’s CAD situation as oil imports would be even more expensive.

A report from investment bank Citi says that the rupee could hit 60 to a dollar and adds that India's four deficits -- current account, fiscal, governance and liquidity -- are mainly its own doing. Citigroup has no good news for India and their overarching sentiment is that India is facing not one, not two, but four deficits -- current account, fiscal, governance and liquidity. That's why India's rating in the global investor community is falling. Citi says investors agree that India’s growth will remain shackled at a modest 6 -7% and adds, the unfortunate part is that the problems appear self-inflicted with India now seen to be specializing in scoring self-goals. 

In conclusion, for today we see markets to remain volatile with positive bias. However, one may not rule out any chances of the market giving up all its morning gains. There is a lot of negativity looming on the streets and any bad news on the European front at their opening bell may further mar the mood and send markets spiraling downwards. We advise investors to remain cautious while making investment decisions.

R P Goenka group company CESC said it has agreed to take over two hydro power projects of 146 MW total capacity from Indiabulls Group. CESC has entered into agreements for taking over from Indiabulls Group two hydro-electric power projects of an aggregate capacity of 146 MW in Arunachal Pradesh, the company informed BSE without disclosing the financial details. The company has acquired entire shares of Pachi Hydro Power Projects Ltd and Papu Hydro Power Projects Ltd, it said.

Private sector lender Federal Bank has launched two premium debit cards exclusively targeted at its HNI customers, apart from a premium travel card. While the two cards -- Premium Master Debit Card and Maestro Card -- are in the debit card segment, the bank also launched a travel card under the brand name of 'Cash passport'.

After successfully operating its fleet of new Bombardier Q400 planes in south and western India, low cost carrier SpiceJet is planning to deploy the aircraft to connect tourist destinations in north India. The fleet of new Q400 planes may come to north India and the possible states where it may fly are Uttar Pradesh, Uttarakhand, Rajasthan, Punjab and Madhya Pradesh, undisclosed sources revealed.

Top mobile phone carrier Bharti Airtel is in advanced talks to buy out the Indian partners of Qualcomm Inc in a fourth-generation (4G) broadband venture in the country, two sources with direct knowledge said.  Qualcomm, which spent nearly $1 billion to buy 4G radio airwaves in a 2010 auction, had sold a total 26% stake to Indian companies Global Holding Corp and Tulip Telecom for about $58 million to comply with the sector's foreign holding rules.

Coal India has so far entered into pacts with 14 power plants for the supply of fossil fuel, while some have refused to sign it due to their objections on some of the clauses of the model fuel supply agreement. Till now 14 power units have entered into fuel supply pact with Coal India (CIL) and the last unit with which the PSU has signed FSA is CESC, a source close to the development said.

Hyderabad-based pharmaceutical company Aurobindo Pharma limited (APL) stated that it has received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Lamivudine and Zidovudine tablets. According to APL, the tablets, which are ready for launch, are the generic equivalent of ViiV Healthcare Company's Combivir tablets and are indicated as part of antiretroviral combination therapy for the treatment of Human Immunodeficiency Virus (HIV) infected persons. The annual sale of the product is approximately $265 million.

Reliance Industries has reported that natural gas production from its eastern offshore KG-D6 fields has dropped to about 32.66 million standard cubic meters per day. Gas output from KG-D6 in the week ended May 6 dropped to 32.66 mmscmd from 33.89 mmscmd in April, according to a status report filed by the company with the Oil Ministry.

Drug firms Lupin Ltd and Aurobindo Pharma said they have received US health regulator's approval to sell generic Combivir tablets, used in treating HIV infection, in the American market. Lupin Pharmaceuticals Inc, a subsidiary of Lupin Ltd, has received final approval from US Food and Drug Administration (USFDA) for its generic Lamivudine and Zidovudine combination tablet in strength of 150mg/300 mg, Lupin said in a statement.

Welspun Group, the country's largest solar power developer, has won a 125 MW solar photovoltaic project in Madhya Pradesh, a top company official said. "We bid Rs 8.05 per unit to bag the 125 megawatts (MW) out of 200 MW that was auctioned by the Madhya Pradesh government," Welspun Energy Ltd Managing Director Vineet Mittal was quoted saying.