StockViz

Market Roundup: Dow +0.46% to 13712. S&P +0.44% to 1493. Gold +0.09% to $1693. London -0.03%. Germany -0.68%. France -0.59%.

FIIs began playing an interesting derivatives strategy called ‘covered call and protective put’ last week. They initiated the strategy when Nifty futures traded around 6050-6070, hoping the index would rise to 6100 or slightly above that level till the RBI’s policy declaration on January 29. The markets have priced in a 25-basis points cut, but analysts say indices could correct by 5-7% if the central bank does not cut rates. (ET)

Faced with weak revenue and a rising budget deficit, the government hopes to raise as much as $5.5 billion selling equity in seven state companies before the end of March. It plans to offer a 10% stake in Oil India [stockquote]OIL[/stockquote]valued at about $600 million, 9.5% of power producer NTPC Ltd [stockquote]NTPC[/stockquote]. for about $2.3 billion, and 9.33% of MMTC Ltd.[stockquote]MMTC[/stockquote], India’s largest gold importer, for about $1 billion. (WSJ)

When the Jet Airways [stockquote]JETAIRWAYS[/stockquote] and ETIHAD are at the brink of a collaboration, Indian budget carrier IndiGo is in talks for an alliance with U.K. carrier British Airways. An operating alliance with an international carrier could give the carrier partial access to international destinations in Europe, without adding to its costs. . (WSJ)

Stock markets are supposed to reflect market sentiment. Typically, a buoyant stock market means there are strong proclivities towards growth. But the 2012 picture is quite different going by what has happened around the globe. Global conditions have been weak with uncertain future signals – fiscal cliff, the possible collapse of the Euro zone, stagnation in India and a downturn in China. Here is a take on why it happened? (ET)

Japan shares declined, with the Nikkei (NKY) headed for its first three-day decline since elections were called, as the yen climbed after the Bank of Japan said it will wait a year to add open-ended stimulus. In addition, Japan’s central bank yesterday agreed to set a 2 percent inflation target urged by Prime Minister Shinzo Abe. (Bloomberg)

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Market Roundup: US markets were closed on Monday. Gold +0.03% to $1691. London+0.43%. Germany +0.61%. France +0.57%. Asian markets trading flat.

India on Monday raised the import duty on gold to 6% from 4%, stepping up efforts to curb the import of the yellow metal. Government also proposed to link gold exchange-traded funds or ETFs and the gold deposit schemes of banks to encourage investors to use existing gold stock in the domestic market. This step will help country to lower the current-account deficit. [stockquote]GOLDBEES[/stockquote] (MINT)

Housing Development Finance Corporation [stockquote]HDFC[/stockquote] may have missed analysts’ estimates, but a 16% year-on-year rise in its net profit in the quarter to December 2012 was backed by a spurt in loan growth, mostly from the retail segment, and its robust asset quality. Loan growth has been strong, with the individual loan book growing by 31% from a year ago, after adding the loans sold. (ET)

Spanish exports fell 0.6 percent in November from the same month the previous year, when they had risen 7.4 percent. Officials predict the euro-area’s fourth-biggest economy faces a further slump this year at a time when the government will struggle to meet its budget goals. It is expected that the toll on economic output may have kept as many as 6 million people out of work. Data expected on Thursday. (Bloomberg)

Total loans restructured by Indian banks under the so-called corporate debt restructuring (CDR) route crossed Rs.2 trillion in December. In the October-December quarter, banks restructured Rs.24,584 crore of loans, up from Rs.19,544 crore they recast in the previous quarter, to reach Rs.2.12 trillion. Many analysts suspect that 25-30% of the restructured loans may turn bad unless there is a significant revival in the economy. (MINT)

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