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)
All the best!