BreakFast News 06 Dec

Equity Markets
Key share indices ended over 1% up on Wednesday as European markets rose in early trade and Asian markets recouped losses.
Market shrugged off cues from weak US markets, led by gains in shares of banks as well as oil and gas companies.
Heavyweights SBI and ICICI Bank rose 3% each. BSE Oil & Gas Index rose over 2%, led by gains in RIL, up 1.5%, and ONGC, up 4%.
Shares of ONGC rose 4% on a report that its overseas arm, ONGC Videsh, and the Hinduja group will form a JV to pick up a 50% stake in Iranian oil and gas fields.
GAIL, up 10%, was top Nifty gainer on news that it has inked a pact with RIL for petrochemicals projects overseas.
Oil retailers also extended gains as crude oil prices fell. HPCL rose 6%, while BPCL ended 2% up.
Among mid-caps, new derivatives segment entrants--Ispat and Wire & Wireless India surged on talk of stake sales.
Ispat Industries ended 23% up on tal k that LN Mittal is interested in acquiring a stake in the company.
Wire & Wireless surged 13% on talk that a private equity firm is likely to pick up stake in the company, and FIIs may be allowed to hold 74% in it compared with 49% at present.
Essar Steel advanced 6% on reports that it has received approval to de-list its shares from BSE and NSE.
Indiabulls ended 7% up, as SEBI cleared the company of charges in a case regarding irregularities in dealing in shares of companies that came out with IPOs during 2003-05.
Grasim and Shree Digvijay Singh Cement ended down on profit sales, after rising earlier in the session, on news that Grasim would sell its 53.63% stake in the latter to Cimpor for Rs.322 cr, Grasim fell 0.4% while Digvijay Cement ended down 3%.
Tata Steel also witnessed profit-booking after the stock rose 9% over the past three sessions; stock ended 1% down.
VSNL was worst-hit among Nifty stocks. CNX Midcap Index and S&P CNX 500 Index ended 2% up each.

News
Economy
S&P projects India GDP growth at 8.1-8.6% in 2008 vs 8.5-9.0% in 2007; sees inflation rate below 4.5% even if fuel prices hiked.
S&P says emerging markets to remain attractive for FIIs
Fitch maintains cautious outlook on Indian banks; closely eyes NPAs

Government
FM approves 16 FDI proposals including that of Continental AG, W.Lucy & Co, HIPE Transport Ventures, Dolce & Gabbana, South Asia Multimedia Technologies and Grupo Omnilife worth Rs 647 cr
Core cos borrowing abroad for power play may get tax sop, power ministry could reduce cost by 20%, announcement likely in budget
Petroleum Ministry asks RIL to submit a detailed justification for its request for a drilling holiday for its oil and gas exploratory wells

Regulatory
Banks\' increased dependence on wholesale deposits risky: RBI Gov
SEBI clears Indiabulls of 2003-05 IPO irregularity charges
Cellular Operators Association Of India files a fresh salvo against RCOM on hoarding charges
FMC may reset rubber futures circuits
MCX to ally with agri insurance cos to distribute agri and insurance products, especially for crops, at the doorsteps of farmers, with the assurance of quality

International
US Johnson Redbook Retail Sales Index rose 0.3% in the first 4 weeks of Nov compared with Oct
Eurozone industrial production rose by 3.3% YoY in Oct
UK lender Nationwide consumer confidence slumped in Nov to 86 from 98 in Oct, the steepest amount in a month in the history of the survey
Bank of Canada cut its overnight interest rate for the first time since April 2004 by 25 bps to 4.25%, saying it expected global financial market difficulties linked to U.S. subprime woes to persist longer than anticipated
Chinese steelmakers the largest buyers of iron ore and the govt are studying a joint bid for Rio Tinto Group to counter a $ 134-bn offer from BHP Billiton
Fannie Mae plans to raise $7 bn through sale of preferred stock, in a bid to bolster its capital in the face of rising losses on home loans, it also plans to cut its dividend, from first quarter next year
Temasek Hol dings is providing half the funding for a new $2 bn China-focused private-equity fund set up by Goldman Sach\'s China partner, Fang Fenglei.
Mizuho Financial Group, Japan\'s second-biggest bank by assets, said it will invest 150 bn yen in its investment banking unit to cover losses from failed US home loans
Wal-Mart ups its stake in Seiyu Ltd to 95.1% through a tender offer and plans to buy remaining shares in the Japanese chain