• Chinese Premier Wen Jiabao rebuffed calls for the yuan to appreciate.

Chinese Premier Wen Jiabao rebuffed calls for the yuan to appreciate, risking a further downturn in relations with the U.S. where lawmakers and economists say his stance is hampering a global recovery. Cnooc Ltd., China’s biggest offshore oil explorer, said its proposed acquisition of a 50 percent stake in Argentine producer Bridas Corp. for $3.1 billion will accelerate the company’s overseas expansion.
Federal Reserve policymakers may signal at their meeting this week how and when the improving economy will lead them to start raising record-low interest rates. Higher rates are still months away, Chairman Ben Bernanke and other Fed officials have signaled in appearances on Capitol Hill and in speeches. They've indicated that low rates are still required to foster the economic rebound. The Indian economy might have weathered the global slowdown successfully so far, but it faces challenges in the next three quarters, especially with high inflation and fragile worldwide recovery, as per Deloitte. Steel prices are expected to increase on the back of increase in raw-material cost. Textile companies have stepped up hiring as business picks up. The government is considering up to 10 per cent equity dilution in the state-owned aluminium producer Nalco. Vedanta Resources may spin off aluminium project into a separate entity so that it gets a better valuation. At present, Vedanta Group owns 70% in the aluminium project and the balance 30% is held by Sterlite Industries. Posco has planned Rs.4000 crore investment in Maharashtra.
Fortis Healthcare is in talks to raise Rs.2500 crore bridge loans to fund its latest acquisition. RIL announced has announced a sports and entertainment joint venture with IMG Worldwide, a global leader in sports marketing and management. Zensar has lined up USD100 million for another overseas buy. Kirloskar Oil Engines is setting up a state-of-the-art engine manufacturing facility in Maharashtra at an investment of Rs.500 crore. Nifty March contracts ends the Week up by 57.15 points at a premium of 7.70 points adding OI by 2.3%. Nifty OI PCR at 1.440 compared to 1.316 at the close of last Week. Nifty puts sees addition of 1.46 Cr and calls sees addition of 60.86 Lakhs over the Week. Highest OI in Nifty calls seen at 5100 March strike and puts at 5000 March strike. Nifty VIX at 19.73 from 20.74 last Week. ATM near Nifty options traded around 17-19% towards the end of the week. Long build up seen in MCLEODRUSS, FORTIS, ALBK, ABB, CNXIT, STER, SUNPHARMA, CAIRN, ESSAROIL, WIPRO, BRFL, M&M, HEROHONDA, PATNI, TCS, COLPAL, AMBUJACEM, HDFC, ITC & BANKBARODA during the week Short build up seen in during the week in GODREJIND, OPTOCIRCUI, TRIVENI, ICSA, TATAMOTORS, HINDUNILVR, GVKPIL, HDIL, VIJAYABANK, ONMOBILE, BALRAMCHIN, STERLINBIO, IVRCLINFRA, IDBI, ADANIENT, TV-18, UNITECH, RELINFRA, RCOM & RENUKA. FII side over the Week saws short covering in Nifty futures and short build up in stock futures. Significant addition in Nifty options was seen during the week.