Money Tree

GLOBAL MARKETS

US Markets

The rise of crude oil prices to $65 and the problems in subprime mortgage market led the US stocks plunge and Dow Jones fell to 12919 after touching an intra day high of 12983 just short of 13000 levels. The biggest dragger was General Motors down 3.19 percent to $30.67.
Dow Jones closed at 12919.40 down 42.58 points or 0.33 percent
Nasdaq Composite closed at 2523.67 down 2.72 points or 0.11 percent.

Europian Markets

The Europian markets ended almost flat with Astra Zeneca falling about 4 percent after the news of its buying Medlmmune, a US biotech company for more than $15 billion.

FTSE (UK) closed at 6479.70 down 7.10 points or 0.11%
DAX (Germany) closed at 7335.62 down 6.92 points or 0.09%
CAC (France) closed at 5917.32 down 21.58 points or 0.36%

Asian Markets

The Japnese markets were lacklustre ahead of week long national holidays (Golden week). Rest of the Asia also closed flat to negative.

NIKKEI (JAPAN) closed at 17315.19 down 140.18 points or 0.80%
HENG SENG (HONG KONG) closed at 20556 down 10 points
KOSPI (SOUTH KOREA) closed at 1539.08 down 05.35 points or 0.35%
STRAITS TIMES (SINGAPORE) closed at 3354.86 down 33.62 points or 0.99%
SENSEX (INDIA) closed at 13928.33 up 30.92 points or 0.22%
NIFTY (INDIA) closed at 4085.10 up 2 points or 0.04%
BSE MIDCAP (INDIA) closed at 5702.44 up 3.36 points or 0.06%
BSE SMALLCAP (INDIA) closed at 6970.92 down 3.45 points or 0.05%

FOREX

USD/ INR 41.68
EUR/ USD 01.35
USD/ JPY 118.28

GOLD (MCX)

9482/ 10gm

CRUDE

$65.74/ Bb

Today’s Market outlook

The credit policy will be announced today and the chances are that the RBI may hike interest rates further by a 25 to 50 basis points. The markets are expected to open weak and should take a direction only after announcement of credit policy by RBI.
Asia has opened in the red with Nikkei down about 52 points and Heng Seng down about 30 points.

Vedanta Group buys stake in Sesa Goa

The Vedanta Group has bought stake in Sesa Goa at a premium of 17 percent to its current market price. Yesterday the stock was closed at Rs 1742. An open offer will now be made by the acquirer for purchase of 20 percent stake and the open offer has to be completed by July 2007.
There is arbitrage opportunity in this stock, if you are able to grab the stock early in the morning at near yesterday’s close price. The stock should move up to around Rs.2000 before the open offer.