Friday, March 26, 2010

BOR: Market Outlook: Indian markets are likely to open flat to negative & remain ranged now that the expiry of the derivatives contracts for the March

Market Outlook: Indian markets are likely to open flat to negative & remain ranged now that the expiry of the derivatives contracts for the March series is out of the way. Nifty has supports at 5150-5180 and resistance is at 5310. Overall markets trend is still intact up as long as 5220 holds.

Global Events to watch for today

  • GDP
  • Corporate Profits
  • Consumer Sentiment

Global indices Update @ 8:

Dow Jones : 10841 (+05.06)

NASDAQ : 2397 (- 01.35)

Nikkei 225 : 10828 ( 00.00)

Hang seng : 20778 (- 230.0)

SGX CNX Nifty : 5263 (- 14.00)

INR / 1 USD : 45.63

Stocks in action for the day : GMR, Patel Engg, Surya Pharma, NTPC

GMR Energy to raise Rs 16 bn GMR Energy will soon raise over Rs 16 billion from a group of private equity players led by Singapore-based Temasek Holdings and banks to fund its expansion. The company is a subsidiary of the G M Rao-led GMR Infrastructure that has interests in highways, airports, agri-business and urban infrastructure. GMR Energy is setting up thermal and hydro power projects of close to 4,500 Megawatt (Mw) capacities. At present, it generates over 780 Mw of power. Sources said the Bangalore-based company would allot preference shares to the private equity players and ICICI Bank, which has committed about Rs 3 billion. Preference shares are special equity securities that have properties of both equity and debt instruments, but lack voting rights. Holders of such shares enjoy priority over holders of common stock when it comes to payment of dividend and upon liquidation.

Patel Engg bags USD 1 bn Mauritius project Mumbai-based Patel Engineering has been awarded the contract to develop the largest waterfront project in the southern hemisphere. The project, an integrated township in Port Louis, the capital of Mauritius, is valued at USD 1 billion. Spread over more than 24 hectares, the project involves residential, commercial, entertainment and real estate. ``Patel Engineering has been short listed as the successful bidder and a formal announcement is expected any day,`` sources confirmed. Rupen Patel, managing director of Patel Engineering, was unavailable for comment.

Surya Pharma to hit market with right issue Chandigarh-based Surya Pharmaceutical is likely to hit the market with its right issue by May this year to mop up around Rs 1 billion. Besides, the company has also plans to raise Rs 3 billion through Global Depository Receipt (GDR) or American Depository Receipt (ADR). The proceeds from the issues would be utilized to fuel its business plan, which involves setting up a new manufacturing unit near Chandigarh with an investment of Rs 5-6 billion.

Mahindra FirstChoice ties up with MyTVS Mahindra FirstChoice Wheels, the multi brand pre-owned car company and part of Mahindra & Mahindra, on Wednesday signed a memorandum of understanding with MyTVS to launch a round-the-clock roadside assistance programme for Mahindra FirstChoice customers. The company is also planning an initial public offering (IPO) in 2013. ``Our plan was to look at IPO in five years from the time we received private equity (PE) investment in mid 2008,`` Rajeev Dubey, president -human resource, after-market and corporate services, and management board member, Mahindra & Mahindra, said.

NTPC to develop 500 Mw renewable energy projects The National Thermal Power Corporation (NTPC), the state owned power generator, has evinced interest to set up solar and wind projects in Orissa with aggregate generation capacity of 500 Mw. The company has sent a draft MoU (memorandum of understanding) for approval of the Orissa government in this regard. Before approaching Orissa, the utility major has signed similar MoUs with Karnataka Power Corporation, Gujarat Power Corporation, Government of Rajasthan and Andaman & Nicober administration for developing renewable energy projects.

Hitachi expects Rs 6.5 bn turnover in FY 2009-10 Hitachi Home & Life Solutions (India), a subsidiary of Hitachi Appliance Inc, Japan, is expecting the sales turn over of around Rs 6.5 billion in the current FY 2009-10, with 25% rise as compared to that of last year. The company has also set the target of increasing its domestic market share to 8.5%in Room AC segment by the next FY 2010-11, from the current market share of 7%. With a total installed capacity of 4 lakh units a year, Hitachi Home & Life Solutions (India) is one of the major air conditioning companies in the country. The company has strong nationwide distribution network, consisting of 18 branches, 159 exclusive sales and service dealers, more than 600 showroom dealers and 350 service points.

Gitanjali Gems to divest 25% in each brand Gitanjali Gems, a leading branded diamond jewellery manufacturer and retailer, has planned to divest 25% of its holding in each of its brands from September this year, to `unlock consumers` acceptability level`. Each of its brands is already formally a separate entity, each a registered company. Beginning with its leading brand, `Gili`, the exercise would move gradually into other brands, including `Nakshatra`, `Asmi` and `D`Damas`, to complete the planned exercise by the end of financial year 2011-12. The plan is in a nascent stage, though, and is expected to be taken up at the company`s annual general meeting, scheduled next month.

Essar buys 100-mt Indonesian coal mine for Rs 9 bn Becomes fourth Indian firm to buy coal mines in the South-East Asian nation. The Essar Group has acquired a coal mine in Indonesia to fuel its upcoming thermal power projects. Sources said the acquisition, from an undisclosed local company, was for about Rs 9 billion. The Aries coal mines in the Kutai region of East Kalimantan has an estimated resource base of 100 million tones of thermal coal and mineable reserves of 64 mt, said a statement from the Group, whose annual turnover is USD15 billion (Rs 687 billion).

Tata Motors to sell 20% in Telcon to Hitachi In a Rs 10 billion deal, the Japanese firm moves from being a junior partner to majority owner Tata Motors, India`s largest vehicle manufacturer by revenue, is selling a third of its stake in the construction equipment-making subsidiary, Telcon, to its joint venture partner, Hitachi, for Rs 10 billion. Tata Motors, which currently holds 60% in the Bangalore-based company, will offload 20% to Hitachi Construction Machinery, which currently owns the balance of 40%, according to, a financial news portal.

SAIL to invite fresh bids for asset insurance SAIL has scrapped the first set of bids submitted by insurers for covering its assets with a Rs 121.99 billion mega all-risk policy and a Rs 116 billion terror insurance. It has now decided to invite fresh bids from insurers and has also changed the terms of the cover. The earlier bids were cancelled because three bidders that quoted higher than the lowest bidder (L1) refused to offer co-insurance support.

Reliance Venture invests in logistics company Reliance Venture Asset Management, an Anil Dhirubhai Ambani Group (ADAG) enterprise, said it has successfully completed the first round of venture funding in Reverse Logistics, a technology enabled end-to-end reverse supply-chain solutions company. This is in line with Reliance Venture`s recent rebranding and widening focus on investing in disruptive and sustainable business models with a sector-agnostic philosophy, the company said in a press release issued here.

HPCL told to invoke UB`s Rs 2.5 bn surety to recover Kingfisher Air dues Concerned about Kingfisher Airline`s rising unpaid jet fuel bills, the government has asked Hindustan Petroleum (HPCL) to invoke the corporate guarantee given by Vijay Mallya`s United Breweries (UB) Group to recover dues. It also asked the state-controlled fuel retailer to supply ATF in future only against a bank guarantee. The oil ministry on March 17 sent a letter to HPCL chairman, asking him to convene a `special board meeting` to consider among other things invoking UB Group`s Rs 2.5 billion corporate guarantee to recover part of the Rs 6,020.5 million outstanding.

Essar Steel in talks with UK co to seal supply pact Essar Steel is negotiating with Buro Happold, a UK-based structural engineering firm that recently opened its office in Mumbai, to supply steel to its projects here. The foreign firm, which designs and executes building and infrastructure projects, is in talks with a couple of Indian infrastructure and real estate companies to jointly develop projects here. As per the proposal, Essar would supply steel to the developers under the supervision of Buro Happold.

Essar Oil seeks shareholders nod to raise USD 1.7 bn Essar Oil said it will seek shareholders` nod to raise USD 1.7 billion (about Rs 77 billion) through the issue of securities in the international markets to finance its various expansion plans. The board has decided to seek approval of shareholders again to raise an amount up to the balance amount of USD 1,700 million, Essar Oil said in a filing to BSE. The amount is the part of the company`s fund-raising plan of USD 2 billion, which was approved by its shareholders in December 2007.


No comments: