Singapore said its economy will expand next year

Singapore said its economy will expand next year after exiting the deepest recession since independence in 1965, adding to evidence of a regional recovery that’s prompted some policy makers to start removing stimulus. The economy will grow 3 percent to 5 percent in 2010 after shrinking as much as 2.5 percent this year, the trade ministry said in a statement today. Gross domestic product climbed a revised annualized 14.2 percent last quarter from the previous three months. The non-partisan Congressional Budget Office has estimated that the Senate health care bill would cost $849 billion over 10 years, according to a senior Democratic source and an administration official. Wells Fargo & Co. agreed to repay customers about $1.4 billion to settle a lawsuit and regulatory investigations alleging the company improperly marketed risky investments as safe. Asian stocks fell, dragging the MSCI Asia Pacific Index down for a third day, as share-sale plans at Japanese companies raised concern. The Prime Minister, Dr. Manmohan Singh, and the US President, Barack Obama, will attempt to resolve the remaining issues on the Indo-US nuclear deal during the forthcoming visit of the PM to the US. For the first time in last 21 years, the government is considering importing rice.

Corporate news:

Hero Honda can announce a very high amount of dividend this year as the company has surplus cash of about Rs.3500 crore in its books. Bharati Shipyard and ABG Shipyard have got SEBI approval to launch open offers to shareholders of Great Offshore. ONGC is eyeing new energy blocks in Ghana, in a bid to expand its presence in the African continent. Blackstone is planning to delist Gokaldas Exports. JSW Steel is entering into a strategic alliance with a global steel company that could see the foreign firm buying a minority stake and offering technology to the company. Exide Industries has decided to raise capital through a QIP to primarily fund research and development initiatives and adoption of fresh technologies to cope with future challenges. Indian Hotels is planning to open 30 more hotels in the mid-segment premium brand by 2015. Lodha Developers plan to invest a sum of Rs.6000 crore over the next three years on construction of its existing projects. RIL plans entry into low-cost housing projects. The company is also planning to spend USD3 billion for a new petrochemical complex at Jamnagar. Indian Oil Corporation is looking to invest upto Rs.1500 crore in its maiden nuclear venture in partnership with Nuclear Power Corporation of India. Pratibha Industries has bagged an order worth Rs.294.30 crore from UP Jal Nigam. Bajaj Electricals is planning to raise funds through the QIP route.

Derivative View:

Nifty Nov contract ends the day marginally down by 8.35 points at a marginal premium of 0.35 points adding OI by 3.0%. Nifty Open Int PCR at 1.540 compared to 1.535 yesterday on back of addition of 14.28 Lakh Nifty puts and 7.58 Lakh calls. Nifty VIX at 26.39 from 26.78 yesterday. Highest OI in Nifty put at 4800 Nov strike and calls is at 5100 Nov strike. Nifty put option addition seen in 4800, 4900 & 5000.
FII side saw long build up in Nifty futures stock futures and Nifty options was bought. Long build up over the day seen in DENABANK, MLL, BHUSANSTL, IDFC, PANTALOONR, GTLINFRA, SUNTV, TRIVENI, ORIENTBANK & ISPATIND etc. Long liquidation seen SINTEX, JSWSTEEL, LITL & HDIL etc. Short build up seen in MPHASIS, RELINFRA, RELMEDIA, EDUCOMP & HINDPETRO etc.