Asian stocks rose, lifting the MSCI Asia Pacific Index to the highest level in 16 months

International News:

Asian stocks rose, lifting the MSCI Asia Pacific Index to the highest level in 16 months, after U.S. manufacturing expanded at the fastest pace in more than three years and commodities gained. The Institute for Supply Management's manufacturing index rose to 55.9 in December from 53.6 in November, signifying a wider expansion in the sector. Economists surveyed by Briefing.com thought it would rise to 54.3.
The Federal Reserve chairman said Sunday that the central bank's decision to keep interest rates very low between 2002 and 2006 was appropriate and not the cause of the housing market bubble. He said regulation would have been a better way to avert the collapse that ensued when home prices crumbled, leading to massive foreclosures, billions in losses for banks and the worst financial crisis since the Great Depression. Oil continued to rally for an eighth straight session and closed at the highest level in more than fourteen months as a pricing dispute and disruption in crude exports between Russia and Belarus worried investors. Oil for February delivery rose $2.15, or 3%, to close at $81.51 a barrel, the highest settlement since Oct. 9, 2008. Foreign fund inflows tripled in Q2FY’10. Fund inflows stood at USD23.6 billion in September 2009 quarter. The manufacturing sector in December climbed to its highest level since May 2009, signaling a faster monthly improvement in the key economic activity, as per an HSBC survey. Crude oil imports rose 6.1% to 10.47 million tonnes in November as domestic fuel demand surged, according to the data available from the petroleum ministry. India’s mineral production in value terms grew by 8.25% in October 2009.

Corporate news:

RIL has raised Rs.2675 crore by selling treasury shares. RIL has proposed to invest nearly Rs.7000 crore in bringing to production four gas discoveries adjoining its prolific gas fields in the KG basin. L&T has bagged Rs.987 crore order from GNFC.
Sadbhav Engineering has bagged an order worth Rs.490 crore from NHAI. Marico has bought Colgate-Palmolive’s haircare brand Code 10 for an undisclosed sum. Novartis has offered to buy Alcan, the world’s largest eye-care company from Nestle and minority shareholders for about USD39.3 billion. Titan is planning to triple its topline from Rs.4600 crore to Rs.14000 crore over the next five years. JSW Energy plans to invest Rs.40000 crore n developing power projects of 8000MW. IOC is in talks to buy 50,000 hectares of wasteland in Uttar Pradesh for plantation of non-edible oil seeds used for biodiesel production. Bosch is planning to invest a sum of Rs.2000 crore in India. Bharat Forge is planning to invest a sum of Rs.1500 crore in non-auto business. Zydus Cadila has got nod for swine flu vaccine.

Derivative news:

Jan Nifty ends the day up by 24.8 points at a premium of 7.60 points adding OI By 4.9%. Nifty OI PCR in active options at 1.214 compared to 1.203 last day on back of addition of 37.25 Lakh puts and 28.12 Lakh Nifty calls. Nifty VIX at 23.64 from 23.34 previous day. Highest OI in Nifty put at 5000 Jan strike and calls is at 5300 Dec strike. Long build up see in CHAMBLFERT, NEYVELILIG, FINANTECH, ASHOKLEY, EDUCOMP, IFCI, ABAN, KFA, MLL, CENTURYTEX, INDHOTEL, NAGARFERT, JPASSOCIAT, NATIONALUM, RELCAPITAL, ISPATIND, MTNL, ULTRACEMCO, ACC & M&M.