Sensex zooms 287 pts in early trade

All sectoral indices,led by metal,auto and banking,were trading in the positive zone with gains of up to 2.25 per cent.

Similarly,the wide-based National Stock Exchange index Nifty regained psychological 5,300 points level by spurting 86.00 points,or 1.64 per cent,at 5,324.40.

Brokers said sentiment turned better on widespread buying by funds and retail investors in line with a firm trend overseas after European Central Bank unveiled a plan to buy the bonds of troubled eurozone nations in a bid to tackle the

region8217;s long-running debt crisis.

In Asian region,Japan8217;s Nikkei was up 2.08 per cent,while Hong Kong8217;s Hang Seng index gained 2.19 per cent in early trade today.

The US Dow Jones Industrial Average had ended 1.87 per cent higher in yesterday8217;s trade.

Indian stocks to watch-Sept 7

GLOBAL MARKETS

Nifty futures on Singapore Exchange rose 0.9 percent while the MSCI-Asia Pacific index excluding Japan rose 1.4 per cent.

U.S. stocks closed at multi-year highs on Thursday,with the Samp;P 500 ending at its highest level since before the collapse of Lehman Brothers as investors hailed a new European bond-buying program aimed at stemming the region8217;s debt crisis.

Asian shares rose and the euro steadied on Friday after the European Central Bank outlined its bond-buying scheme to help calm the euro zone8217;s debt crisis,while firm U.S. data fed speculation of a strong jobs report later in the day.

FACTORS TO WATCH

Oil Minister Jaipal Reddy and Chairman of Indian Oil Corp to be present at an event. 0530GMT

RBI to release weekly forex,bank loans data. 0530GMT

INDIAN STOCKS TO WATCH

FINANCIAL/REGULATORY

Seventeen large companies including Adani Power ,Bharti Airtel and Jaiprakash Associates have an increased probability of financial stress,while 20 other companies are borderline cases,according to a study by investment bank Morgan Stanley.

The heavy industries,steel,and power ministries have opposed stake sale in state-run firms under their administrative control,creating a potential roadblock for Finance Minister P Chidambaram8217;s plans of aggressively pursuing the disinvestment programme.

India approved 11 foreign direct investment proposals worth 20.68 billion rupees 371.5 million including 8.08-billion-rupee plans of Mauritius-based Cloverdell Investments,according to a government statement.

Nexus Venture Partners has raised 270 million 15 billion rupees for its third fund,joining a select group of VC firms that have raised capital this year in the middle of a tough economic environment.

India may exempt individual foreign investors and trusts that invest directly in the capital markets from the need to acquire a Permanent Account Number PAN,a mandatory requirement for all tax payers.

The country8217;s top sleuth,the national auditor and the chief vigilance officer are expected to meet to coordinate their action over the controversial allocation of coal blocks before the matter is taken up by Parliament8217;s Public Accounts Committee PAC.

Raheja-led Exide Industries is intensifying efforts to buy out ING8217;s 26 percent stake in their insurance joint ventures as the Dutch financial conglomerate is finding it difficult to find a buyer more than 3 years after beginning the search,two people familiar with the matter said.

The Parthasarathi Shome panel8217;s recommendation of abolishing short-term capital gains tax has thrown up various possibilities before the finance ministry including making amendment in the Finance Act,2012,to implement it even before the next Budget.

The finance ministry on Thursday reiterated that the tax department would not take a rash decision in the Vodafone case and would act in accordance with the law.

The Reserve Bank of India needs to bring down the cash reserve ratio CRR and control credit flow through open market operations,C. Rangarajan,chairman,Prime Minister8217;s Economic Advisory Council,said.

The banking regulator is unhappy with the Life Insurance Corporation LIC of India holding more than 10 percent stake in State Bank of India,the country8217;s largest lender. LIC stake in SBI was 11.05 per cent,as on June 30.

Banks that want to leave a loan consortium can do so only after finding a replacement,if the recommendations of a committee on joint lending are implemented.

Videocon Industries is one of the front runners to buy out Deccan Chargers,the Deccan Chronicle Holdings Ltd -owned Indian Premier League8217;s Hyderabad franchisee.

ENERGY/COMMODITIES

Vedanta Aluminium8217;s plan to shut its alumina refinery in eastern India will not hit its aluminium output because it aims to treble imports of the raw material,a company official said.

Bharat Petroleum Corp8217;s Mumbai refinery and all other units have heightened security and the Central Industrial Security Force CISF,which looks after the security,has issued fresh instructions to their own staff and also employees at the sensitive sites.

TELECOMS/IT

India8217;s largest business process outsourcing company Genpact said it is putting in place a strategy to capitalise on opportunities in the US healthcare sector,which could see a fresh wave of outsourcing with new policies that call for widespread reforms.

Tech Mahindra will borrow from subsidiary Mahindra Satyam to partly fund its 87- illion acquisition of Hutchison Global Services,the Indian back office of Hutchinson Whampoa.

The first conference hosted by the government ahead of the 2G auction today saw no participation from any new foreign player,indicating that the foreign telcos may give the auction process a miss.

INFRASTRUCTURE

Reliance Infrastructure is looking for buyers for its unit that handles non-metro airport projects,people close to the development said.

AUTOS

Japan8217;s Suzuki Motor Corp said production at its Indian unit Maruti Suzuki8217;s riot-hit Manesar plant is likely to reach 800 to 850 vehicles per day in the first half of September. It could take also more time until Maruti,which accounted for about 28 percent of Suzuki8217;s net profit in the fiscal year ended March 2012,can resume production at the pre-riot level of about 1,700 vehicles a day,Chairman Osamu Suzuki said.

Utility vehicle maker Mahindra amp; Mahindra,which is developing two new platforms in association with Korean subsidiary Ssangyong Motor Corporation,may bring to the Indian market a compact crossover utility vehicle CUV in 2015.

OTHER FACTORS TO WATCH

Indian debt/FX factors to watch

ECB bond plan cheers euro,Aussie dollar

Oil settles higher on drop in U.S. inventory and ECB

Foreign institutional investor flows

For closing rates of Indian ADRs