Financial firm Citigroup reported a $7.6 billion quarterly loss,

international News:

Financial firm Citigroup reported a $7.6 billion quarterly loss, partly due to the bank paying back the government $20 billion in bailout funds. On a per-share basis, Citigroup lost 33 cents, in line with forecasts, after reporting a loss of $2.44 a share in the prior year's quarter. The British candy company agreed to a larger $19.5 billion takeover offer from U.S. food maker Kraft Foods in a deal that puts an end to a four-month fight. The board on Tuesday recommended shareholders take Kraft's cash-and-stock offer in a move that will create the world's biggest chocolate maker. IBM posted a fourth-quarter profit Tuesday that beat Wall Street expectations. The tech giant also pointed to an improved outlook for 2010. The Armonk, N.Y.-based company reported a profit of $4.81 billion, or $3.59 per share, which was 9% higher than what IBM reported last year. Analysts polled by Thompson Reuters expected $3.47 per share. Sales rose a modest 1% to $27.2 billion, slightly ahead of forecasts. Sales in the company's services sector and software sector each increased 2%, while revenue in its hardware business fell 4%. IBM expects to improve its revenue. performance in 2010. The euro tumbled to the lowest level in more than four months against the dollar on concern Greece’s deteriorating fiscal situation will weigh on the region’s economic recovery. The 16-nation currency also approached a four-week low against the yen on speculation European Central Bank Executive Board member Juergen Stark will reiterate his bearish outlook for the region’s economy and the budget deficit in Greece when he speaks today.

Domestic News:

The Securities & Exchange Board of India (SEBI) allowed exchanges to introduce currency futures in three more currencies- euro, yen and pound. The Government has announced a cash subsidy of Rs.12000 crore for oil market companies. The government has no immediate plan to raise prices of petrol and diesel. Indian Railways may raise freight rates for bulk items. Siemens has bagged an order worth Rs.2956 crore from QatarGeneral Electricity and Water Corporation. BHEL is eyeing acquisitions, JVs in the US and Europe. Standard Chartered Group is set to buy out the remaining 25.1 per cent stake of Securities Trading Corporation of India in Standard Chartered- STCI Capital Markets. Vivendi SA is planning to buy 51% stake in Datacom Solutions, owned by the Videocon Group. Italy’s PRYSMIAN has agreed to buy a 51% stake in Pune-based Ravin Cables for Rs.200 crore. Teva Pharma has filed a patent suit in the US against Lupin Pharma. This prevents the Indian company from selling generic version of Teva’s birth control drug for 30 months.( Impact: -ve for Lupin Laboratories) Usha Martin is planning to raise close to Rs.500 crore through the QIP route. NTPC’s FPO may be priced at Rs.245-250. The company plans to set up a separate arm for acquiring coal assets abroad.

Derivative news:

Nifty near contracts ends the day down by 50.45 points adding OI by 1.5% at a discount of 4.95 points. Nifty OI PCR in active options stood at 1.285 compared to 1.339 in the last session. Nifty VIX at 22.35 from 21.55 last session. 4.06 Lakh Nifty puts was added over the day and Nifty calls added 22.47 Lakh during the day.
Highest OI in Nifty put at 5200 Jan strike and calls is at 5300 Jan strike. Long build up over the day seen in YESBANK, TITAN, NAGARFERT, IOB, CHAMBLFERT, ANDHRABANK, CHENNPETRO etc. Short build up seen over the day in BAJAJHIND, IVRCLINFRA, HCC, PTC, RENUKA, DRREDDY, SUZLON, ACC, TV-, 8, JPPOWER, GAIL, HINDALCO , INDIACEM etc. FII side sees long liquidation in in Nifty and short build up in stock futures and Nifty options was seen to be bought.