Shanghai Composite Index sank 1.1 percent

Domestic News:

China’s Shanghai Composite Index sank 1.1 percent as the Purchasing Managers’ Index, a gauge of the country’s manufacturing industry, fell more than economists forecast in December. Citigroup Inc. plans to sell or split off its $10 billion Citi Private Equity unit, expanding the list of money-management businesses the U.S. Toyota Motor Corp.’s head of U.S. sales plans to make U.S. television appearances today, starting with NBC Universal’s “Today” show, as the world’s largest automaker works to resolve its biggest recall crisis. Administration officials said that the White House's stimulus plan directly funded 599,108 jobs in the fourth quarter. The figure is based on about 160,000 reports from state, local and corporate recipients that have spent stimulus money to keep teachers in schools and cops on the street, as well as to rebuild roads, launch green energy initiatives and fund other projects. Amazon.com says it will give in to publishing giant Macmillan and agree to sell electronic versions of its books even at prices it considers too high. Component shortage puts the brakes on auto firms as component vendors fail to keep pace with the demand from auto majors. FDI inflows up 13% in December 2009 at $1.5billion State-run oil firms cut aviation turbine fuel (ATF) prices by 5.5 per cent to almost negate the steep hike they effected earlier this month. Service tax rate may be raised to 12 per cent in the upcoming Budget. Interest rates expected to hold steady in near term. Ficci has cautioned that it will be "dangerous" for economic growth and employment if the fiscal incentives given to spur economy were rolled back. Centre has given ‘in principle' approval to over 38,000 MWe (mega watt electrical) of new reactor capacity to scale up India's nuclear capacity nearly ten-fold over the next decade .IT services exports to grow at 13-15% in 2010-11. Sebi has shut its doors on several foreign funds amid concerns that they might turn out to be vehicles for round-tripping of money by local residents. Mahindra & Mahindra will launch six-to-seven new variants of vehicles across various segments during the next fiscal. NTPC Vidyut Vyapar Nigam Ltd (NVVNL), a wholly-owned subsidiary of NTPC Ltd, is planning to procure up to 1,000 Mw of solar power by 2013, and mix it with the unallocated thermal power to produce bundled power. Siemens AG, is making India a major hub for research and development of medical diagnostic tools, using Computer Aided Design (CAD). State Bank of India (SBI), has said it had a capital requirement of Rs 50,000 crore over the next five years of which Rs 15-20,000 crore would be raised through the equity route in the next two years.

Derivative View:

Nifty near contracts begins the new expiry up by 27.50 points at a discount of 6.40 points adding OI by 7.4%. Nifty OI PCR in at 1.152 compared to 1.143 at the previous day. Nifty puts sees addition of 47.27 Lakhs and calls sees addition of 38.18 Lakhs over the day. 4800 and 4700 Feb strike Nifty puts adds the most during the day and 5000 and 4800 Feb strike calls add the most during the day. Highest OI in Nifty calls seen at 5000 Feb strike and puts at 4800 Feb strike. Nifty VIX at 26.13 from 28.92 last day. Long build up seen over the day in IBREALEST, BANKBARODA, COLPAL, SIEMENS, CANBK, ROLTA, BAJAJ-AUTO, DENABANK, ORIENTBANK, ALBK, CENTURYTEX, ABB, ANDHRABANK, UCOBANK, IFCI, HCC, IDBI, CHAMBLFERT, NOIDATOLL & DLF. Short build up seen in OPTOCIRCUI, IVRCLINFRA, BAJAJHIND, SESAGOA, WIPRO, DRREDDY, TATAMOTORS, SUNTV, SAIL & IOB. Short build up in Nifty and stock futures and Nifty options was seen to be bought by the FII’s during the day.