Thursday, August 20, 2009

BOR: Market Outlook: Indian market may have flat to positive opening today taking cues from the green line from the global counters.

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 Mexico raised Asarco bid to $2.2 billion in cash

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 US court ruling in Eli Lilly patent case, clears way for low-cost cancer drug launch in 2010.

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 India: DJ

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 IVs at 37-39% levels

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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