Wednesday, January 28, 2009

>Debtshell (RELIGARE)

RBI's interest rate review left the key rates unchanged on Tuesday. RBI's
bond auction calendar indicates a total borrowing of Rs. 250 bn up to
March 2009. The announcement on the government borrowings during
this fiscal year pushed up the bond yields higher. The benchmark 10-year
GSec bond yield ended at 5.96%, higher from the previous close of 5.72%
on Friday. The call money rates stood at 4.1-4.2% on Tuesday close to the Saturday's
level of 4.15-4.25%. Ample liquidity has ensured that the call rates move
in line with the Repo rate.
The Indian equity markets staged a sharp gain of 329 points or 3.8% on
the back of stronger global cues. The rupee surged to 48.95/$,
appreciating from the 49.27-29/$ level on Friday.
The Crude ended lower on Tuesday trading close to $42/bbl on the back of
high inventory levels and lower demand. Lack of change in the
fundamentals of the economy pulled down the crude despite the recent
output cuts brought into effect by OPEC.

To see full report : Debtshell 28-01-2009

> Daily Market Roundup (RELIGARE)

Markets are likely to remain in the positive territory taking cues from the
global markets; this has been also reflected in the Nifty futures. In the
coming session, markets are expected to remain in the range of 2700 –
2835 levels. Markets were trading in the positive territory taking favorable cues from
the global market and short covering by the market participants on
account of the expiry of monthly derivative contracts. Meanwhile, the RBI
monetary policy kept the interest rate steady and revised the GDP growth
estimates downwards for the year to7% from 7.5%. The monetary policy
hinted that the inflation will fall below 3% which boosted the market

To see full report : DMR 28-01-2009

>Union Bank of India (JP MORGAN)

Union Bank reported strong 3Q09 numbers with net profit growing 84%
yoy almost 30% higher than street estimates. The stock reacted up 3%,
closed the day down 2% yet outperforming the banks Nifty index.
While deposits growth picked up to 31% loan growth remained stable at
25% leading to 50% increase in net interest income. Margins continued
to expand to 2.97% year to date and the bank looks to further enhance its
full year margins to at least 3%; However, in the near term given recent
PLR cuts, that appears difficult, in our view.

To see full report: Union Bank of India