Monday, January 18, 2010

BOR: Market Outlook: Indian markets may have flat to negative opening today on account of weak global cues

Market Outlook: Indian markets may have flat to negative opening today on account of weak global cues and will remain in a very narrow range. Nifty has support at 5150-5180 and resistances are at 5310-5350. On stock specific we like HDIl & IndusInd bank for fresh buying position.

Global events to watch for today:

• US Holiday: Martin Luther King Jr. Day
• All Markets Closed

On the global counter: Wall Street ends lower; Dow slips 100 points & Asian markets trading weak; Hang Seng. Nikkei down. US stocks slid from 15-month highs on Friday after JPMorgan Chase & Co reported deep fourth-quarter loan losses that raised concerns about earnings for the banking industry. The Wall Street ended lower yesterday. The Dow Jones industrial average plunged 100.90 points, or 0.94%, to 10,609.65. The Standard & Poor's 500 Index was down 12.43 points, or 1.08%, to 1,136.03. The Nasdaq Composite Index shed 28.75 points, or 1.24%, to 2,287.99.

Stock in action for the day: TCS, Rcom, Dalmia, Bajaj Electronics

Tata Consultancy Q3 profit up 33 pct, beats f'cast: Tata Consultancy Services Ltd India's top software services exporter, posted a 33 percent jump in quarterly profit, beating estimates, on surging outsourcing orders and easing pressure on fees.

Reliance Comm says adds 2.8 mln users in Dec: India's No. 2 mobile operator, added 2.8 million mobile users in December Reliance Communications had 91 million users as at end-November, according to data from the telecoms regulator.
Finolex Cables Oct-Dec net profit at 122.7 mln rupees Net profit/(loss) 122.7 vs (474.5) Net sales 4,134.9 vs 2,359.5
UltraTech Q3 net drops; Sees industry demand to grow over 10% UltraTech Cement, reported a sharp drop of 17.76% in standalone net profit on Saturday for the quarter ended December 2009, expects the industry demand to grow over 10% on the back of government initiative to boost rural development, infrastructure and housing. During the quarter, the profit of the company declined 17.76% to Rs 1,960.30 million from Rs 2,383.60 million in the same quarter previous year.
Suzlon in talks with lenders to recast Rs 86.5 bn debt: Debt-laden renewable energy firm, Suzlon is in talks with a few state-owned banks and other lenders to restructure loans aggregating Rs 86.5 billion, aimed at cleaning up its balance sheet and to get back on track. In what will mark phase two of the company`s debt recast, Suzlon is talking to state-owned banks such as State Bank of India, Bank of Baroda, IDBI, Central Bank, Bank of India and a few other lenders to convert its existing rupee loans into long-term maturity loans. The proposed restructuring, if approved by banks, will ensure that there is no immediate cash outflow for Suzlon in the medium term. Interest costs are expected to come down then, said a company official associated with the debt revamp plan.

Wockhardt won`t sell assets without notice: Debt-ridden pharma firm Wockhardt has assured foreign creditors such as Calyon, Barclays, and a trust, representing the foreign currency convertible bondholders, that it will not sell its assets, including the nutrition division, without informing them 48-hours in advance. The foreign creditors had moved the Bombay High Court last year seeking the company`s liquidation. The pharma firm is in the midst of a corporate debt restructuring (CDR) programme led by ICICI Bank. The foreign banks have opposed the CDR as it would only benefit Wockhardt`s local lenders. Justice SJ Kathawalla on Friday adjourned the hearing of the case to Jan. 29.

DoT wants to use winning 3G bid as base price for future sale The department of telecom (DoT) has proposed that the winning bids in each circle for the upcoming third generation (3G) spectrum auctions as the base price for all airwaves sale in the immediate future. With telecom regulator Trai likely to recommend later this month that India do away with its current policy of allocating 2G spectrum based on the operators` subscriber numbers and instead follow the international policy of auctioning, telcos will have to shell out huge amounts for radio frequencies in immediate future.

HPCL plans Rs 200 bn refinery To refine 9-15 million tones of crude oil every year, the state-run Hindustan Petroleum Corporation (HPCL) plans to set up a plant in the Konkan region. It is looking to invest over Rs 200 billion for a greenfield project in Raigad or Ratnagiri districts of Maharashtra. The Konkan region outweighed Gujarat and Andhra Pradesh as it was seen as a natural expansion of the refinery in Mumbai, which has the capacity to refine 6.5 million tones per annum (MMTPA). ``In view of the constraints in the expansion of the Mumbai refinery, we plan to build one closeby,`` said an HPCL executive. Sources familiar with the plan said HPCL would need 2,000 acres.

L&T puts engineering SEZ on hold The mad rush for setting up Special Economic Zone (SEZ) has come to an end as developers are now lining up to either scrap their SEZ projects or put them hold in Gujarat. Larsen and Toubro (L&T) is the latest one to jump on the bandwagon. The leading engineering, manufacturing and construction major have decided to put its heavy engineering SEZ near Surat on hold. L&T had planned an SEZ for heavy engineering at Suvali and Mora in Choriyasi of Surat district. The SEZ was to come up over an area of 100 hectares. As per the government officials, the overall investment for the project was close to Rs. 40 billion.

Bajaj Electronics targets Rs 850 mn business Bajaj Electronics Limited has targeted a business of Rs 850 million in the Orissa market in the current financial year, a 30.76% growth over Rs 650 million which the company had clocked in 2008-09. The consumer electronics major hopes to achieve sales of Rs 650 million this fiscal across all its strategic business units (SBUs) and aims to scale up its business in the state to Rs 1,000 million in 2010-11.

Dabur to re-expand its pharma research After partially exiting the business two years ago, the Burman family, promoters of Dabur, will stage a major comeback soon to the pharmaceutical discovery research arena. They are setting up a modern contract research facility to house their recently registered Althea Life Sciences in the suburb of Gurgaon, a company officials said. The group has research contracts with over 20 clients, foreign and Indian, and these are being done by Dabur Research Foundation (DRF), the group`s 30-year-old entity. The entire research activity will majorly expand in the new premises.

Pyramid Saimira moves SAT against Sebi order Chennai-based entertainment company Pyramid Saimira Theatre (PSTL) has moved the Securities Appellate Tribunal (SAT) against market regulator Securities and Exchange Board of India (Sebi)`s order, which had banned the company in November 2009 from trading in the Indian securities market for seven years following irregularities in its initial pubic offering (IPO).


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