Thursday, September 29, 2016

Bearish start on global mayhem

Stock Tips

Indian Indices:

Indian equity benchmarks are likely to witness a negative opening on Friday tracking a bearish trend across markets in Asia and a negative finish at Wall Street overnight as mounting worries that German lender Deutsche Bank’s woes may spread into the global financial sector curbed risk taking appetite.

Losses in the SGX Nifty Index Futures for October delivery which were trading at 8,592.5, down by 0.60 per cent or 51.5 points at 10:40 AM Singapore time, signal that the Sensex may open lower today.

Meanwhile, worries over the escalation of tensions between India and Pakistan after Wednesday night’s surgical strikes by the Indian Army in Pakistan Occupied Kashmir may also keep trading sentiment jittery at Dalal Street.

Caution may also prevail ahead of the RBI’s monetary policy review on Tuesday, which will be the first meeting to be chaired by new governor Urjit Patel with investors hoping for a 25 bps interest rate cut amid the recent drop in inflation.

Marking the biggest single-day fall in three months, the 30-share Sensex plummeted by 465.28 points or by 1.64 per cent to 27,827.53 amid the September derivative expiry and as news of the Indian Army conducting surgical strikes across the Line of Control in Pakistani territory led investors to shun risky assets as tension between the two neighbouring countries mounted.

Global Market:

Asian stocks plunged today as concerns over Deutsche Bank’s finances led to a sell-off in financial shares worldwide as investors braced for a hit to the global financial system.

While Shanghai Composite was trading with modest gains, Hang Seng plunged over 1.4 per cent and Nikkei 225 tumbled over 1.5 per cent as Japanese consumer prices declined for a sixth straight month in August and as a stronger yen curbed the lure for exporter stocks.

Fears of a fresh contagion in the global banking sector weighed heavily on Wall Street on Thursday as US stocks took quite a beating. Shares of Deutsche Bank hit a record low in the US as reports surfaced that some hedge funds were moving to reduce their financial exposure to the bank.

Major Headlines of the day:
Alkem Laboratories gets US FDA observations on Daman plant
Accenture Q4FY16: Strong results, sentimentally positive for Indian IT incumbents
Sintex approves demerger of custom moulding, prefab biz

Trend in FII flows: The FIIs were net buyers of Rs 3413.37 Cr in the cash segment on Thursday while the DIIs were net buyers of Rs 1630.88 Cr, as per the provisional figures.

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Wednesday, September 28, 2016

Bullish start likely on global support

stock tips

Indian Indices:

Indian equity benchmarks are likely to witness a gap up opening on Thursday tracking a bullish trend across markets in Asia and a strong finish at Wall Street overnight after the OPEC’s decision to cut output for the first time since 2008 fueled a rally in oil prices, bolstering risk taking appetite.

Gains in the Nifty Index Futures for September delivery which were trading at 8,803, up by 0.47 per cent or 41.5 points at 10:38 AM Singapore time, signal that the Sensex may open higher on the day of the expiry of the September derivative contracts.

Volatility may remain high at the local bourses today as traders roll over their positions amid the September futures & options (F&O) contracts expiry.

On the domestic front, all eyes are on the RBI’s monetary policy review on Tuesday with speculation of a 25 basis points cut in key interest rates amid receding consumer inflation.

Snapping a three-day losing streak, the 30-share Sensex on Wednesday rallied 69.11 points or by 0.24 per cent to 28,292.81 amid value buying in select blue chip stocks.

Global Market:

Asian stocks rose as oil prices hit a three-week high after the OPEC agreed to cut production for the first time in eight years.

Shanghai Composite & Hang Seng rallied while Japan’s Nikkei 225 jumped as a weaker yen bolstered the lure for exporter stocks.

US stocks rose on Wednesday as energy shares climbed the most in eight months as news of the OPEC deal boosted oil prices.

Major Headlines of the day:
Cipla freezes increments of top management to cut costs
OPEC agrees to cut oil production for first time in eight years
Bank of India to cut base rate by 5 bps to 9.65% on Friday

Trend in FII flows:The FIIs were net buyers of Rs 73.83 Cr in the cash segment on Wednesday while the DIIs were net sellers of Rs -69.53 Cr, as per the provisional figures.

STOCKS IN BAN PERIOD: CENTURYTEX, IDBI, JETAIRWAYS, JINDALSTEEL, JISJALEQS, JPASSOCIATE, JUSTDIAL, RCOM, SINTEX, WOCKPHARMA.

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Tuesday, September 27, 2016

Flat to positive start seen on Dalal Street

Stock Tips

Indian Indices:

Indian equity benchmarks are likely to witness a gap down opening on Wednesday tracking a bearish trend across markets in Asia as traders remained jittery ahead of an OPEC meet which is unlikely to result in any substantial measures to address an ongoing crude oil global supply glut, curbing risk taking appetite.

Losses in the Nifty Index Futures for September delivery which were trading at 8,699, down by 0.28 per cent or 24.5 points at 10:28 AM Singapore time, signal that the Sensex may open lower today.

The domestic bourses may see heightened volatility as traders roll over their positions ahead of the September futures & options (F&O) contracts expiry tomorrow.

Caution is also likely to persist ahead of the upcoming monetary policy review of the RBI on Tuesday with a 25 basis points cut in interest rates a possibility given the dip in consumer inflation to below the upper tolerance limit of the government’s annual inflation target of 4 per cent plus or minus 2 percentage points.

Meanwhile, India’s economy remains on a strong growth path, and is expected to expand 7.4 per cent in the fiscal ending March 2017 as robust consumer demand and progress on reforms help it maintain its position of being the world’s fastest growing major economy, the Asian Development Bank (ADB) has said.

Marking a third straight day in the red, the 30-share Sensex on Tuesday fell 70.58 points or by 0.25 per cent to end at 28,223.7 amid a sell-off in European markets.

Global Market:

Volatility in oil prices amid fading hopes of an output cut at a meeting of OPEC countries on Wednesday weighed on Asian stocks which were trading lower today.

Shanghai Composite was trading with slim losses, Hang Seng fell and Japan’s Nikkei 225 tumbled over 1.5 per cent as worries over the outcome of the OPEC meet overshadowed relief over Hillary Clinton’s strong performance in the first US Presidential debate on Monday against Republican nominee Donald Trump.

Wall Street rallied on Tuesday as US consumer confidence scaled a nine-year high in September, bolstering the outlook for the world’s biggest economy.

Major Headlines of the day:
RBI raises foreign Investment limit in Motherson Sumi to 30%
Aurobindo gets approval from USFDA for zoledronic acid injectable
Cipla aims to reach $1bn India sales through tie-ups and new launches

Trend in FII flows:The FIIs were net sellers of Rs -155.76 Cr in the cash segment on Tuesday while the DIIs were net buyers of Rs 90.67 Cr, as per the provisional figures.

STOCKS IN BAN PERIOD:  CEATLTD, DLF, IBREALEST, IDBI, JETAIRWAYS, JINDALSTEEL, JAINIRRIGATION (JISLJALEQS), RCOM, RELCAP, WOCKPHARMA, SINTEX, JPASSOCIATE.

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Monday, September 26, 2016

Flat to positive start seen on Dalal Street

Stock Tips

Indian Indices:

Indian equity benchmarks are likely to witness a cautious opening on Tuesday amid a mixed trend across markets in Asia as US presidential hopefuls Hillary Clinton and Donald Trump clashed in a heated debate while traders anxiously awaited the outcome of the meeting of top oil producers to discuss measures to stabilize oil prices including a possible production freeze.

Gains in the Nifty Index Futures for September delivery which were trading at 8,746, up by 0.11 per cent or 9.5 points, signal that the Sensex may open slightly higher today.

The Sensex may witness some volatility as traders roll over their positions ahead of the September futures & options (F&O) contracts expiry this Thursday.

The next big focus on the macro front is the RBI monetary policy review on October 4, which will be the first meeting chaired by new governor Urjit Patel.

However, the central bank could wait till December to cut interest rates further, so as to have better clarity on the retail inflation trajectory and digest outcomes of the US Presidential elections and Fed’s November policy decision. At the same time, cooling inflation which fell to 5.05 per cent in August and a renewed factory contraction has offered near-term scope of policy easing.

Weakness in global stocks hit Dalal Street quiet hard on Monday as the 30-share Sensex sank by a massive 373.94 points or by 1.3 per cent to end at 28,294.28.

Global Market:

Asian stocks were mixed as Clinton and Trump sparred during their first US Presidential debate which was currently underway, with a poll indicating both candidates tied in a head-to-head contest, curbing risk taking appetite.

While Shanghai Composite was trading tad higher, Hang Seng rose and Japan’s Nikkei 225 fell as a stronger yen curbed the appeal of exporter stocks.

Wall Street ended lower on Monday as investors awaited the outcome of the US Presidential debate while digesting weak housing data which showed that US new home sales fell 7.6 percent to a 609,000 annualized pace in August 2016.

Major Headlines of the day:
Vardhman Textiles to use stake-sale cash to reward investors through Buyback
Finolex Cables to launch new electric water heaters from 1st October
Hero MotoCorp launches next generation Achiever 150 motorcycle to boost sales

Trend in FII flows:The FIIs were net sellers of Rs -206.4 Cr in the cash segment on Monday while the DIIs were net sellers of Rs -113.35 Cr, as per the provisional figures.

STOCKS IN BAN PERIOD: CEATLTD, DLF,HDIL, IBREALEST,IDBI,JETAIRWAYS,JINDALSTEEL, JAINIRRIGATION (JISLJALEQS), RCOM, RELCAP, WOCKPHARMA.

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Sunday, September 25, 2016

Sensex, Nifty under pressure; GNA Axles lists at 22% premium

Stock Tips

Equity benchmarks remained under pressure on weak Asian cues but the broader markets outperformed.

Reliance Industries, TCS, L&T, Dr Reddy's Labs, Tata Steel and Coal India gained 0.5-1.5 percent while ICICI Bank, HDFC and ITC fell 1-2 percent.

The market has opened low dragged by profit booking and weak global cues. The Sensex is down 148.90 points or 0.5 percent at 28519.32 and the Nifty is down 46.45 points or 0.5 percent at 8785.10. About 435 shares have advanced, 444 shares declined, and 69 shares are unchanged.

TCS, Reliance, Dr Reddy's Labs, Sun Pharma and Lupin are top gainers while Tata Motors, ICICI Bank, ITC, Adani Ports and HDFC are losers in the Sensex.

The Indian rupee opened lower by 10 paise at 66.75 per dollar on Monday versus 66.65 Friday.

"The rupee recovered from 67/dollar levels on global cues and performance of Indian equity market. It is expected to trade in range of 66.20-66.80/dollar today." The dollar index edged higher on Friday, reversing earlier selling, after Boston Federal Reserve president Eric Rosengren said he believed US short-term interest rates should be raised now and warned a decline in the jobless rate below sustainable levels could derail economic recovery.


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Thursday, September 22, 2016

Markets to open higher; L&T Tech to list today

stock tips

Indian Indices:

Indian markets are likely to continue gaining momentum and open higher on Friday tracking firm cues from US stocks as a sense of relief returned to the market after Federal Reserve kept key rates unchanged at its two-day policy review on Wednesday. SGX Nifty is trading 1.00 points higher.

The focus is on the telecom stocks after Vodafone Group announced investment of Rs 48,000 crore in to its Indian arm ahead of an spectrum auction starting next month.

L&T Technology Services, subsidiary of engineering & construction giant Larsen and Toubro, will list its equity shares on September 23. The issue price is fixed at Rs860 per share, the higher end of price band.

Nifty rose 1% on Thursday, its biggest daily percentage gain in more than two weeks, as the Federal Reserve's decision to leave US interest rates unchanged led to a rally in stocks across the globe.

On Thursday (September 22, 2016), BSE SENSEX closed at 28773.13, gained by 265.71 points or by 0.93%, and the NSE Nifty settled at 8867.45, rose by 90.30 points or by 1.03%.

Global Market:

Asian shares edged closer to 14-month highs on Friday while the dollar was on the defensive as investors grew more convinced that the Federal Reserve is settling into a phase of very gradual interest rate hikes.

U.S. stocks closed near session highs Thursday, with the Nasdaq Composite notching a record close, as investor enthusiasm following the Federal Reserve’s most recent policy update spilled over into a second session.

European shares climbed to a two-week high on Thursday, boosted by a rally in mining stocks, after the U.S. Federal Reserve left interest rates unchanged and projected a less aggressive path for hikes next year and in 2018.

Major Headlines of the day:
Wipro to acquire Zhonghsan Ma Er Daily Products
Sun Pharmaceuticals among bidders for Bayer’s dermatology brands
IOC eyes entire GSPC stake in Mundra LNG terminal

Trend in FII flows:The FIIs were net buyers of Rs 336.87 Cr in the cash segment on Thursday while the DIIs were net buyers of Rs 310.35 Cr, as per the provisional figures.

STOCKS IN BAN PERIOD: JINDALSTEEL, CENTURYTEX, HDIL, KSCL, IBREALEST, IDBI, WOCKPHARMA.

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Wednesday, September 21, 2016

Markets may rise on positive global cues

stock tips

Indian Indices:

Indian markets seen opening higher on strong cues from Asian and US markets. SGX Nifty is trading 78.50 points higher.

Data released by RBI on September 21, 2016, showed that India's current account deficit (CAD) narrowed to $0.3 billion or 0.1% of GDP in Q1 June 2016.

Indian shares pared early gains to end nearly flat on Wednesday, as investors remained cautious ahead of the U.S. Federal Reserve policy decision due later in the day.

On Wednesday (September 21, 2016), BSE SENSEX closed at 28507.42, down by 15.78 points or by 0.06%, and the NSE Nifty settled at 8777.15, rose by 1.25 points or by 0.01%.
Global Market:

Global Market:

Asian shares surged on Thursday, taking their cue from Wall Street, after the Federal Reserve left U.S. interest rates unchanged and slowed the pace of future hikes, slugging the dollar and lifting commodity prices.

US stocks rallied Wednesday, with the Nasdaq Composite closing at a record, after the Federal Reserve opted to keep interest rates unchanged as it sought further evidence of economic strength.

European shares hit a one-week high on Wednesday before the outcome of a Fed meeting, with banks rallying after a policy overhaul at the Bank of Japan lifted risky assets globally.

Major Headlines of the day:
Jet Airways plans to restart US flights
Jaguar launches new XF at Rs49.5 lakh
Nestle seeks SC nod to destroy 550 tonnes of Maggi Noodles

Trend in FII flows:The FIIs were net buyers of Rs 183.85 Cr in the cash segment on Wednesday while the DIIs were net sellers of Rs -230.59 Cr, as per the provisional figures.

STOCKS IN BAN PERIOD: JINDALSTEEL, CENTURYTEX, HDIL, KSCL, IBREALEST, RELCAPITAL, WOCKPHARMA.

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Tuesday, September 20, 2016

Flat opening on D-Street ahead of Fed, BOJ decisions

Stock Tips

Indian Indices:

Indian markets likely to open on a subdued note on Wednesday as investors awaited policy decision from central banks in the US and Japan which may offer cues over the outlook for the global economy, curbing risk taking appetite. SGX Nifty is trading 8799.50 points 0.03 lower.

The focus is on the US Federal Reserve and the Bank of Japan with both central banks slated to unveil money policy reviews later in the day. Indian shares ended lower on Tuesday, snapping a four-day rally, as sentiment stayed cautious ahead of policy meetings by the Federal Reserve and the Bank of Japan later this week.

On Tuesday (September 20, 2016), BSE SENSEX closed at 28523.20, down by 111.30 points or by 0.39%, and the NSE Nifty settled at 8775.90, fell by 32.50 points or by 0.37%.

Global Market:

Japanese stocks were down in volatile trade for Asian markets as investors nervously waited on the outcome of the Bank of Japan's policy meeting amid growing speculation the central bank might step up its efforts to boost inflation.

US stocks on Tuesday ended little-changed, paring modest gains into the close, as traders grew cautious on the eve of a pair of major central-bank decisions.

European shares ended little changed on Tuesday as investors remained cautious ahead of monetary policy decisions from the Federal Reserve and Bank of Japan on Wednesday.

Major Headlines of the day:
BP sells 8.5% stake in Castrol India
Lupin caught in legal tussle over 'patent infringement'
Infy exits show challenge for Sikka in biz makeover

Trend in FII flows:The FIIs were net sellers of Rs -1146.93 Cr in the cash segment on Tuesday while the DIIs were net buyers of Rs 777.52 Cr, as per the provisional figures.

STOCKS IN BAN PERIOD: CEATLTD, CENTURYTEX, HDIL, KSCL, IBREALEST, RELCAPITAL, WOCKPHARMA.

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Monday, September 19, 2016

Markets likely to be cautious as Fed, BOJ in focus

Stock Tips

Indian Indices:

Indian equity benchmarks are likely to open on a cautious note on Tuesday as investors stick to a cautious approach ahead of key central bank meetings this week which may offer cues over the outlook for the global economy, curbing risk taking appetite.SGX Nifty is trading 22.50 points lower.

Indian shares ended higher on Monday, posting their fourth straight session of gains, as investors awaited key central bank meetings in the United States and Japan this week for clues on global monetary policies. The S&P BSE Sensex and CNX Nifty rose 0.12%-0.33% each.

On Monday (September 19, 2016), BSE SENSEX closed at 28634.5, up by 35.47 points or by 0.12%, and the NSE Nifty settled at 8808.4, up by 28.55 points or by 0.33%.

Global Market:

Asian shares edged lower on Tuesday as investors nervously waited on the outcomes of the Federal Reserve and Bank of Japan policy meetings that begin later in the session.

US stocks on Monday closed essentially flat, after trading firmly higher, in a volatile session ahead of the start of a pair of closely watched central-bank policy meetings.

European shares edged higher on Monday in a modest rebound after two straight weeks of losses, led by financials and commodity stocks.

Major Headlines of the day:
Glenmark announces tie up for anti cancer drug
Karur Vysya Bank board announces stock split
Dr Reddy’s launches generic injection for kidney disease

Trend in FII flows:The FIIs were net buyers of Rs 205.38 Cr in the cash segment on Monday while the DIIs were net sellers of Rs -252.28 Cr, as per the provisional figures.

STOCKS IN BAN PERIOD: CEATLTD, CENTURYTEX,  HDIL,  KSCL,  IBREALEST, RELCAPITAL, WOCKPHARMA.

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Sunday, September 18, 2016

Sensex, Nifty marginally higher; Midcap, Smallcap outperform

Stock Tips

Equity benchmarks were marginally higher with the Nifty holding 8800 level while the broader markets outperformed, tracking positive Asian cues.

ICICI Bank, Asian Paints, TCS, HUL, M&M and ONGC gained a percent each while HDFC, Infosys, Maruti, Axis Bank, ITC and HDFC Bank were under pressure.

The Indian rupee opened marginally higher by 3 paise at 66.95 per dollar on Monday versus 66.98 Friday.

The US dollar hit a more than two-week high against a basket of major currencies on Friday after US inflation data boosted bets on a faster pace of Federal Reserve interest rate hikes, while uncertainty ahead of a Bank of Japan meeting limited the dollar's gains against the yen.

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Thursday, September 15, 2016

Bulls come charging as Bears clear the way

Equity Tips

Indian Indices:

Indian equity benchmarks are likely to witness a bullish opening on Friday tracking positive trade in Asian markets and a rally at Wall Street overnight as disappointing US industrial output and retail sales data pared back expectations of a Fed interest rate hike, bolstering risk taking appetite.

The CNX Nifty Index Futures for September delivery which were trading at 8,817, up by 0.45 per cent or 39.5 points at 10:40 AM Singapore time, signal that the Sensex may open higher today.

Bank of England on Thursday kept policy unchanged but signaled scope of a further rate cut in November, the Fed will meet next week to decide whether to hike interest rates, while the Bank of Japan could bolster monetary stimulus and slash its key rate deeper into the negative terrain.

Traders will weigh data showing a 0.3 per cent, year-on-year drop in India’s exports to USD 21.5 billion in August 2016. Meanwhile, the rupee which tanked to a two-week low against the US dollar on Thursday, on rumours of devaluation of the currency, will also be in focus.

The 30-share Sensex on Thursday advanced 40.66 points or by 0.14 per cent to 28,412.89 amid hopes that the RBI may cut interest rates next month.

Global Market:

Asian stocks bounced back from a six-week low as worries over a September Fed rate hike eased.

While markets in China and Hong Kong were closed for holidays, Japan’s Nikkei 225 climbed on reduced expectations of the US central bank hiking interest rates next week.

US industrial output fell 0.4 per cent in August from July as factory production declined, while retail sales fell 0.3 per cent last month, the first drop in five months.

US stocks advanced on Thursday driven by gains in Apple Inc. while higher crude prices lifted energy stocks.

Major Headlines of the day:
PVR looking to raise up to Rs250 crore via issue of NCDs
PNB raises Rs2112 crore by issuing 16.43 crore equity shares
Suprajit Engineering acquires US based Wescon Controls for $44.4 mn

Trend in FII flows:The FIIs were net buyers of Rs 345.42 Cr in the cash segment on Thursday while the DIIs were net sellers of Rs -456.91 Cr, as per the provisional figures.

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Wednesday, September 14, 2016

Thursday gets thirsty as Bulls go missing

Stock Tips

Indian Indices:

Indian equity benchmarks are likely to witness a bearish opening on Thursday tracking weakness across many markets in Asia and a soft finish at Wall Street overnight as traders worldwide stick to a cautious approach ahead of key central bank meetings in Japan and the US next week while a slide in oil prices raised worries over the health of the world economy.

The CNX Nifty Index Futures for September delivery which were trading at 8,750, down by 0.22 per cent or 19.5 points at 10:38 AM Singapore time, signal that the Sensex may open lower today.

Reduced prospects of central bank monetary stimulus from key developed economies coupled with uncertainty surrounding the exact timing of a US interest rate hike may continue to keep sentiment choppy at Dalal Street and may lead to some volatility in capital flows to Asia’s third biggest economy.

Meanwhile, rising expectations of an interest rate cut by the RBI in October after consumer inflation dipped to a five-month low to below the upper tolerance level of the government’s official annual inflation target, in August, may continue to offer support to domestic bourses.

At the same time, wholesale inflation jumped to a two-year high of 3.74 per cent in August 2016 from 3.55 per cent in July 2016.Shares of Reliance Communication maybe in focus as the company said that it will merge its wireless business with Aircel, creating India’s third largest telecom operator by users.

In the wake of continued uncertainty over global monetary outlook, the 30-share Sensex closed flat, with a positive bias on Wednesday, up 18.69 points or by 0.07 per cent at 28,372.23.

Global Market:

Asian stocks retreated for a sixth day as cautioned ruled sentiment ahead of upcoming central bank meetings next week.

Shanghai Composite was closed today, Hang Seng logged modest gains while Japan’s Nikkei 225 sank over 1 per cent as a stronger yen curbed the lure for exporter stocks.

Wall Street ended on a lackluster note on Wednesday with the Dow and S&P 500 witnessing slim to modest losses as traders stayed on the sidelines on monetary policy uncertainty.

Major Headlines of the day:
Ashok Leyland to merge loss making Hinduja Foundries with itself
Bayer AG buys out Monsanto Co (US Parent) for USD 66 bn in an all cash deal
Shriram Transport Finance board Approved and allotted NCDs worth Rs70 cr

Trend in FII flows:The FIIs were net sellers of Rs -477.33 Cr in the cash segment on Wednesday while the DIIs were net sellers of Rs -8.53 Cr, as per the provisional figures.

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