Crude oil rose for a seventh day as colder weather in the U.S.

International News:

Crude oil rose for a seventh day as colder weather in the U.S. increased demand for heating fuels. Prices are poised for the biggest annual gain since 1999 on optimism consumption will rebound as the global economy recovers. Chinese central bank Governor Zhou Xiaochuan said that 2010 will be a crucial year for strengthening the recovery in the world’s third-biggest economy and “defeating” the financial crisis. Zhou’s New Year message, posted on the central bank’s Web site today, reiterated that a “moderately loose” monetary policy will continue. The Chicago PMI, a regional read on manufacturing, rose to 60 in December from 56.1 previously. The improvement was a surprise, with economists surveyed by Briefing.com expecting it to drop to 55.1. The US government gave GMAC Financial Services another $3.8 billion in cash and took a majority stake in the auto lender, aiming to stabilize the company as it struggles with big losses in its home mortgage unit. The U.S. will impose duties on $2.8 billion in steel-pipe imports from China after saying subsidies on the products may harm American steelmakers, a move that threatens to escalate trade tensions between the two countries.

Domestic News:

Bank credit growth is showing signs of recovery. Banking lending picked up nearly five-fold in December over the previous month. Non-food credit grew to Rs.31342 crore compared to Rs.5247 crore in the previous month. Indian export items like gems, jewellery, apparel and handicraft have seen an increase on account of the demand from the western countries on account of Christmas and New Year. India and China are expected to see strong growth in auto sales in CY’10. The timing for the withdrawal of stimulus packages has not come as per the Finance Minister, Mr. Pranab Mukherjee. Banks have rejected the RBI move to replace the benchmark prime lending rate with base rate. Life Insurance companies business grows 22% in April – November period. 3G Spectrum auctions are likely to take place on February 13. Export duty hike on iron ore is expected to push down iron ore despatches by 4.5%.

Corporate news:

The government is considering allowing NTPC to sell around 10% capacity at market-determined prices. This move is expected to boost the company’s profit by up to 40%.
The overseas arm of Cox and Kings has acquired two companies in Australia. TCS is stepping up hiring as spending by a number of companies have started increasing. The company is also planning to increase the capex. Aurobindo Pharma shareholders will consider amalgamation of Trident Life with itself on January 20, 2010. Godrej Consumer Products is aggressively looking at acquisitions. M&M will launch a one-tonne light commercial vehicle during the upcoming Auto Expo in Delhi.