US stocks tumbled Thursday after the Obama administration announced a proposal to increase regulation of the nation's biggest financial firms

International News:

US stocks tumbled Thursday after the Obama administration announced a proposal to increase regulation of the nation's biggest financial firms, including limiting the size and scope of their trading operations. Japanese stocks plunged as part of a global rout after a U.S. government proposal to ban banks from investing in hedge funds triggered declines in U.S. shares, the dollar and commodities. Google Inc. reeled in more Internet advertising during the holiday shopping season and approached $2 billion in quarterly profit for the first time, providing the strongest sign yet that Internet search leader has shaken off the recession's doldrums. Goldman Sachs said it earned $8.20 a share in the fourth quarter, trouncing forecasts for a profit of $5.20 per share, thanks to strong gains in its investment unit. The number of Americans filing new claims for unemployment rose to 482,000 from 446,000 in the prior week. Economists surveyed by Briefing.com thought claims would fall to 440,000.
Food inflation softened to 16.81 per cent for the week ended January 19,2010. Steel demand would be back within three years to the peak levels seen before the global financial crisis started in 2008, as per L N Mittal. Pronab Sen, Chief Statistician of India sees lower GDP growth in Q3 to 6-6.5%. Essel group and Bhushan Steel are set to acquire a 250-acre plot in Kharghar for Rs.1530 crore. JSW Energy plans to invest Rs.4500 crore to acquire coal mines abroad and another Rs.10,000 crore in West Bengal.
Powergrid proposes to invest Rs.50,000 crore for developing seven transmission corridors in the next five years. Varun Industries plans to set up Rs.230 crore steel unit inJodhpur. TAFE plans to roll out 1.2lac tractors in 2010-11.

Derivative news:

Nifty near contracts ends the day down by 130.20 points  adding OI by 10.60% at a discount of 9.60 points with indications of short build up in Nifty futures. Nifty OI PCR in active options stood at 1.176 compared to 1.293 in the last session. Nifty VIX at 23.50 from 22.29 last session. 15.89 Lakh Nifty puts was added over the day and Nifty calls added 62.88 Lakh during the day. Short build up seen over the day  in PIRHEALTH, DRREDDY, LT, PUNJLLOYD, LITL, IDFC, CAIRN, INDIACEM, HDFC, BIOCON, DIVISLAB, STER, HINDZINC, IVRCLINFRA, WELGUJ, IBREALEST, INDIAINFO, EKC, ORCHIDCHEM, HINDPETRO, CROMPGREAV, NOIDATOLL, ISPATIND, TV-18, ULTRACEMCO etc. FII side sees short build up in Nifty & Stock futures and Nifty options  was seen to be bought.