Thailand’s economy contracted the least in a year last quarter

Thailand’s economy contracted the least in a year last quarter as a nascent global recovery and government spending began to pull the nation out of its first recession in a decade. Sixty-five world leaders have said they will attend the Copenhagen climate summit in December, and several more have responded positively to invitations, Danish officials said Sunday. An Iraqi official says insurgent attacks caused a 4 percent drop in the country's oil exports in October compared to the previous month, but that revenues were up due to higher prices. The government plans to spend approximately Rs.7,800 cr to improve the employment scenario and improve infrastructure for skilled-based training. A CII survey says that India’s manufacturing sector is on the road to recovery. Oil Marketing Companies (OMC) are ready to pay Rs.26 a litre for ethanol. However the sugar industry is seeking Rs.28 a litre. The RBI has decided to withdraw a facility that allowed Indian firms to buy back FCCB’s issued to overseas investors.

Corporate news:

BSNL to float a global tender for setting up the optical fibre cable network for the defence forces on December 7, 2009. RIL received its first consignment of Cairn India’s Rajasthan crude oil. RIL to get seven such consignments totaling to about 1.5 million barrels a day. Future Group is expanding its private labels in various categories and is looking to enter 10-15 new categories every year. GIC Re, the designated national reinsurer has taken a hit of Rs.100 cr on account of the recent fire at IOC’s depot in Jaipur. The government plans to offer six loss-making public sector units on long-term lease to private players for periods up to 99 years, as it looks to bypass the divestment norms that make these firms unattractive for buyers. The companies that may be offered on lease are HMT, Hindustan Fertiliser, Scooters India, Hindustan Cables, Triveni Structurals and NEPA. Tata Consultancy Services (TCS), Infosys and Wipro, are set to gain offshoring projects worth around $1 billion over the next one to two years. Reliance Industries could pay up to $12 billion for bankrupt petrochemicals company LyondellBasell. Suzlon shifts global headquarters back to India (Pune). Nalco is in talks with banks for Rs.10,000 cr Iran project. Emami is scouting for acquisitions in the domestic and overseas markets.

Derivative View:

Nifty: (5052): The index opened on a negative note and dipped down in the morning trade after which it witnessed a strong rally. It ended the day with gain of 1.27%.
The index witnessed support around the 4900 level; it dipped down towards 4930 levels and saw a strong intra day rally. The level of 4900 is a critical support level for near term upswing.Intra day support is around 5000 level. On the upside index faces resistance around 5100-5150 band. Nifty Nov contract ends the week up by 63.60 points at a premium of 13.80 points in Nov contracts adding OI by 2.4% across all active Nifty contracts. Nifty Open Int PCR at 1.569 compared to 1.556 last week on back of addition of 32.56 Nifty puts and 16.75 Lakh calls. Nifty VIX at 26.64 from 29.09 the last week. Highest OI in Nifty put at 4800 Nov strike and calls is at 5000 Nov strike. FII side saw long liquidation and short build up in Nifty futures over the week and short build up in stock futures over the week. Long build up over the week seen DENABANK, UCOBANK, JPHYDRO, BANKINDIA, SYNDIBANK, JINDALSAW, VIJAYABANK, ALBK, BHUSANSTL, HEROHONDA, GTOFFSHORE, ABAN, ACC, GTLINFRA & SESAGOA etc. Short build over the week seen in PATNI, MPHASIS, HDIL, IBREALEST, UNIPHOS, RELINFRA, PATELENG, BHARTIARTL & TV-18 etc. Market wide rollover seen at 20.97% compared to 21.6% in last expiry. Nifty rollover seen at 26.73% compared to 25.17% in the last expiry. 20% (28247) higher no of Nifty contracts rolled over compared to the previous expiry. Long rolls is seen in Nifty.