Market Outlook: Indian market may have flat to positive opening today taking cues from the green line from the global counters. Nifty has supports at 4300-4350 and resistances are at 4500-4550. Markets may witness short covering and pull back rally to resistance levels.
Listing alert: Adani Power to list today, issue price Rs 100 ((grey market premium Rs 10-12)). M- View: We had earlier recommended "Subcribe" in our July 2009 IPO Note. On the followup view we expect Adani Power will list 10-12% premium over issue price on listing day, after looking at the subscription leveles of 39 times on the QIBs front. 10-12% listing gain sound substantial profit to book & re-enter at the issue (Rs100/-) which is quite possible according to over view. The outlook for the stock will be positive for the 3 year long term investment horizon. On the valuation front when compared to its peer the stock looks expensive. Adani is priced at 4x-3.4x to its book value for FY10E & FY11E, which is at a premium to its peers. NTPC is available at 2.6x-2.4x to its book value for FY10E & FY11E & Reliance Power is available at 2.9x-2.7x to its book value for FY10E & FY11E.
Nifty Outlook: Pivot Point: 4408, R1: 4463, R2: 4532, R3: 4587 S1: 4339, S2: 4284, S3: 4215
On the global space: Wall Street ends higher led by energy stocks with 1.9% gain & Asian markets trading firm; Hang Seng, Nikkei up The US markets recovered from intra-day lows and ended higher after a surprise drop in crude inventories, which sent oil prices and energy stocks soaring. Infact energy stocks were able to finish with a 1.9% gain, better than any other major sector. In the day's other economic news, mortgage applications rose last week amid an increased demand for refinancing as mortgage rates slid to a five-week low. The Dow Jones industrials gained 61.22 points, or 0.7%, to 9,279.16. The S&P 500 index rose 6.79 points, or 0.7%, to 996.46, while the Nasdaq Composite Index added 13.32 points, or 0.7%, to 1,969.24.
Stocks in action for the day: HOEC, HDFC, Sun Pharma, Bharati Ship
Sterlite: Sterlite to raise bid for Asarco to nearly $2.1 billion-Sterlite raises bid to maintain participating interest-Alert: Grupo
MTN : MTN board keen to sign indicative agreement by August 28 -Bharti needs to update MTN on PIL case in SAT -MTN board gives go-ahead for signing indicative agreement
Tata Tea: Tata Tea sells entire 24.52% stake in Rallis India to Tata Chemicals at Rs 850/share via inter-se transfer ((off market transaction; deal size Rs 249.8 crore, CMP of Rallis India Rs 742, premium of nearly 15%))
Tata Chemicals: -Acquires 35.68% stake in Rallis India from other promoters via inter-se transfer ((including Tata Tea)) -Holding in Rallis India goes up to 45% after inter-se transfer
HDFC: -Not in compliance with NHB guidelines on capital market exposure -Alert: HDFC's current capital market exposure at 43% NHB Says: -HDFC's exposure to cap markets not to exceed 40% of net worth-HDFC given time until December 2009 to comply -HDFC's investment in HDFC Bank treated as capital market exposure -Alert: HDFC holds 23.26% stake in HDFC Bank Sources Say: -HDFC not ready to trim stake in HDFC Bank before December 2009 -HDFC to seek extension for increased capital market investment
HOEC :-Production from PY-3 field to re-commence from September Alert: Production from PY-3 field was shut in July for maintenance -Adverse marine conditions delay repairs to PY-3 field Alert: Company has 21% non-operating participating interest in PY-3 field
WNS: -IT & PE firms line up to buy stake in WNS : Sources -Suitors eyeing 50.12% stake in WNS:-HCL Tech, IBM Daksh, Quatrro Solutions have placed bids: Warburg Pincus to exit WNS, sees $400 million from stake sale.
Sun Pharma wins
Bharati Shipyard warehousing Great Offshore shares, to up stake to 26%:
5.48 crore IndusInd Bank shares to hit the market ((QIP issue))
IOC says plan to acquire producing oil assets overseas jointly with Oil
Hanung Toys board meet on August 22 on issue of shares up to $50 million
Ex-split: Shree Ashtavinayak Cine from Rs 10 to Re 1.
Ex-dividend: GAIL @ Rs 3.
Ex-bonus: Kanani Industries @ 2:1, Glodyne Technoserve @ 1:1
Board meets: Cyber Tech Systems on buy back & MSP Steel on preferential issue
F&O cues: Total Futures Open Int up by Rs 646 crore
Total Options Open Interest up by Rs 1964 crore
Nifty down 1.5%, Futures Open Interest up 7%
Nifty August Futures trading at 8-pt discount versus 4-pt discount
Stock Futures add 53 lakh shares
Nifty Open Interest Put Call Ratio at 0.97 versus 0.98
Nifty Puts Adds 16 lakh shares in Open Interest
Nifty Calls Add 21 lakh shares
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