Wednesday, March 17, 2010

BOR: Market Outlook: Indian markets are expected to trade in positive momentum tracking global constructive cues.

Market Outlook: Indian markets are expected to trade in positive momentum tracking global constructive cues. We believe this is important for mkt to hold on to current levels to look for further uptrend. Nifty may test 5300 - 5310 if it holds on above 5180 – 5200 for the day close.

Global Events to watch for today

  • MBA Purchase Applications
  • Producer Price Index
  • Petroleum Status Report

Global indices Update @ 8:

Dow Jones : 10685 (+43.83)

NASDAQ : 2378 (+15.80)

Nikkei 225 : 10795 (+74.07)

Hang seng : 21212 (+189.3)

SGX CNX Nifty : 5231 (+23.50)

INR / 1 USD : 45.58

Stocks in action for the day : Indian hotels, Wipro, RCOM, RIL, Bharti, Hindalco

Indian hotels: Expansion to improve revenue flow: The Indian hotel industry appears to be on course to regain last ground, thanks to the recovery in business and leisure travel. Indian Hotels Company (IHC), one of the highest dividend paying companies in the hotel industry, for instance, saw a three-fold rise in its net profit since the June quarter to Rs 64 crore in the December quarter.

Wipro to focus on 8-10 new regions; Japan, China key: Wipro expects to have 1,000 employees in China in the next two years from the current 300 employees, said its Executive Director and Chief Financial Officer, Suresh Senapathy. "We will tap the Chinese domestic market in the next 18 months and will focus on government contracts." Wipro is developing the Chinese market as an outsourcing base to Japan. Japan, he says, is to become a critical player for Wipro for infrastructure services and business process outsourcing.

RCOM open to acquisitions in India: Anil Ambani-led Reliance Communications on Tuesday said it was open to acquisitions in the country to grow its presence in the domestic market and would do so at the right opportunity. “We are open to all opportunities. We are not averse to acquisitions in the domestic market. Let the right opportunity come.

Genpact shareholders set to offload 13% stake for $420 million: Genpact, the back-office services provider, will see its promoter General Electric and buyout firms General Atlantic, Oak Hill Capital Partners and others cut their stake in the company through a combined sale of 13% stake valued about $420 million.

RIL loses global race again as BP bags stake in Canadian co Reliance Industries stumbled for the second time in about two weeks in its global aspirations, as BP pipped it to the post in acquiring a stake in Canada`s Value Creation. The London-based BP has agreed to buy a stake in Terre de Grace oilsands block of Value Creation in Canada for an undisclosed sum. It is a 1,85,000 acre stretch near Calgary, Value Creation said in a statement. ``This partnership blends a strong asset, world-class operator, high calibre talents and market security, besides financial stability,`` Value Creation CEO Columba Yeung said. RIL was interested in buying a stake for USD 2 billion.

Bharti to raise USD 8.5 bn in offshore loans Bharti Airtel, in talks to buy the African mobile operations of Kuwait`s Zain for USD 9 billion, has issued a term sheet to banks to raise up to USD 8.5 billion in offshore loans to fund the deal, banking sources said. The six-year offshore facility has four tranches and carries a blended average life of 4.75 years, with a margin ranging from 176 basis points (bps) to 179 bps over Libor, the sources said. Previously, Bharti was said to be looking for a USD 9-billion facility, which also included an onshore rupee tranches. Bankers familiar with the deal said that the all-in pricing is below all expectations, which ranged from 200 bps to 250 bps above Libor. Bharti, which is India`s largest cellular carrier, is in talks to buy Zain`s operations in 15 African countries. Exclusive negotiations are scheduled to lapse on March 25.

Banks commit over Rs 100 bn to Hindalco plant Hindalco Industries, India`s largest aluminium maker, has received a loan commitment of over Rs 100 billion from more than 10 banks for the Rs 49 billion debt the company plans to raise for its Utkal Alumina Refinery - a 1.5 million tone per annum (mtpa) project in Orissa. The debt syndication was launched in the third week of December by Hindalco`s bankers, SBI Capital Markets, IDBI Bank and ABN Amro. ``More than 10 banks, including State Bank of India (SBI), have given a commitment to the debt proposal of the company,`` said a banker familiar with the development. The formalities of the debt syndication would be completed by the end of next week, the banker added.

DHFL’s mid-size bet pays off: Dewan Housing Finance (DHFL) – has managed to make steady progress in this segment over the last few years. The stock market has recognised the company’s success. There is a wide margin between the valuations of these players, which is owing to their size and the track record. Considering that DHFL’s stock has already appreciated significantly, further gains will depend on the company’s ability to maintain its growth momentum.

GMR Airports buys shares of ING Vysya Bank for Rs 10.73 cr: GMR Group firm GMR Airports on Tuesday sold shares of ING Vysya Bank totalling to Rs 10.73 crore, through open market transactions.


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