Tuesday, April 20, 2010

BOR: Market Outlook: Indian Indices are likely to open in green territory

Market Outlook: Indian Indices are likely to open in green territory looking at its Asian peers. Markets across witnessed positive sentiments looking at better earnings by corporates. US stocks closed in green as investors reassessed the potential damage of the fraud case against Goldman Sachs and earnings optimism grew. The street expectations 25 50 bps hike in Interest rate by Reserve Bank of India.

Results Today: Axis Bank, Ballarpur Industries, Great offshore, HCL Tech, Jindal Saw, Reliance Industrial Infra, Zee Entertainment

Global Events to watch for today

  • ICSC-Goldman Store Sales
  • 4-Week Bill Auction

Global indices Update @ 8:

Dow Jones : 11092 (+ 73.39)

NASDAQ : 2480 (- 1.15)

Nikkei 225 : 10955 (+ 46.24)

Hang seng : 21573 (+ 168.16)

SGX CNX Nifty : 5211 (+ 07.50)

INR / 1 USD : 44.60

Stocks in action for the day : Siemens, JSW, NMDC, GMR, Jay Shree, Ferro Alloys, TCS, Hero Honda, GAIL

Siemens to invest Rs 5 bn for wind turbine mfg facility in guj State government earmarks 100 acres land at Dahej Expediting its plans to set up a wind turbine manufacturing unit in Gujarat, Siemens India has applied for 100 acre land in DAHEJ with the state government. At an investment of Rs 5 billion, the company is all set to manufacture high-end technology wind turbines with a total capacity to generate 200 MW a year. ``Siemens India has applied for a 100 acre land in Dahej for awind turbine manufacturing plant with the state government. While the land is likely to be allotted soon, the company is also in the process of getting its board of directors` approval,`` said a senior government official.

JSW acquires control of South African coal mining company
Indian investment company JSW has beaten two South African bidders to acquire a majority stake in South African Coal Mining Holdings (SACMH) at a price of 85.4 million rand (about Rs 511.6 million). JSW upped its earlier offer of 25 cents per share to 30 cents to clinch the deal, in the face of stiff competition from Shanduka Coal and Wescoal, bothSouth African entities who had made offers to buy out SACMH. Shareholders had initially supported the Shanduka offer amid unusual interest last month to acquire SACMH, started in 2007 by the Royal Bafokeng Nation to exploit the mineral wealth of its traditional land. JSW`s offer at the time was the lowest of the three.

GMR seeks another USD 100 mn PE funding Bangalore-based GMR group is planning to raise an additional USD 100 million (over Rs 4,470 million) from a group of private equity companies, led by Singapore-based Temasek Holdings, to fund its expansion plans. GMR had raised USD 200 million from the same group of investors early this month and the group flagship company, GMR Infrastructure, raised USD 315 million (Rs 14 billion) through a qualified institutional placement (QIP) last week. GMR requires close to Rs 80 billion as equity contribution to fund its expansion plans - mainly in power and road projects, said A Subbarao, Group Chief Financial Officer of GMR.

Jay Shree close to buying tea estates in Africa The BK Birla group-controlled Jay Shree Tea & Industries is close to acquiring tea estates in Uganda and Rwanda. This will be the company`s first overseas acquisition in the tea space and would lift production from 23.5 million kg to nearly 29 million kg in 2010-11. A board meeting has been called on April 28 to approve the overseas acquisition and pave the way for signing agreements with Ugandan and Rwandan partners.

United Spirits may buy distilleries in Asia, Africa United Spirits, India`s biggest liquor maker plans to expand into Southeast Asia and Africa by buying distilleries as it seeks to bolster its position as the world`s second-biggest seller of alcohol. The company, based in Bangalore, is looking at countries similar to its home market such as Sri Lanka, Vietnam, Cambodia, Singapore, Nigeria, Ghana and Congo and may either acquire facilities or appoint franchisees for its brands, managing director Vijay Rekhi said.

NMDC plans to invest Rs10 bn in JVs Asia`s third largest iron ore miner NMDC plans to invest as much as Rs10 billion to form ventures (JVs) in India and overseas as part of a plan to enter coal excavation and expand its ore business. The company is seeking partners in India, Australia and Brazil, and is setting up a panel of bankers to help its search, director (finance) Swaminathan Thiagarajan said on Monday in a phone interview. He did not identify any potential partner or give a timeframe. NMDC, in which the government sold an 8.38% stake last month for about Rs 99.3 billion, aims to benefit from the rising prices for coal and iron ore, the key steelmaking raw materials.

TCS Q4 (QoQ) -Revenues up 1.17% to Rs 7738 crore versus Rs 5649 crore ( 2% in constant currency) ( Poll was Rs 7820 crore) -Revenues up 3.1% in dollar terms (our poll was 4.4% and CLSA at 5% post Infosys 5.2% in USD terms) -21 bps improvements in operating margins at 27.51% versus 27.30% -Net profit up 9.67% at Rs 2001 crore versus Rs 1824 crore (poll was Rs 1808 crore)

Hero Honda Q4: -Net profit at Rs 598 crore versus Rs 402 crore, up 48.8% (YoY) CNBC-TV18 poll saw net profit at Rs 553 crore -Net sales at Rs 4,093 crore versus Rs 3,422 crore; up19.6% (YoY) CNBC-TV18 poll saw net sales at Rs 4,073 crore -EBITDA margins at 17.27% versus 16.01% (YoY)

Sesa Goa : Q4 Numbers ( Note : Q4 not comparable due to Dempo acquisition) -Sales at Rs 2403.54 crore versus Rs 1429 crore (Up 68% YoY) (In-line) -PAT at Rs 1215.1 crore versus Rs 548.36 crore (up 122% YoY) (Higher than estimate) -EBITDA margins of 62% versus 52% (YoY)

GAIL update -PNGRB announces provisional tarriffs for GAIL's pipeline -Provisional tarriff shows a negligilbe decline to current tarriff -Provisional tarriff for existing HVJ - GREP - DVPL pipeline at Rs 25.46/mmbtu -Alert: Current average tarriff was Rs 25.59/mmbtu -Tariff for new DVPL/GREP network fixed at Rs 53.65/mmbtu Alert: Market was expecting tarriff to be Rs 48-49/mmbtu -Alert: Regulator’s new proposed tariff implies 40% jump in blended rate

Govt Sources Say: -Hindustan Copper divestment may be mulled by cabinet in 3-4 weeks -Inter-ministerial discussions on for Hindustan Copper divestment -20% share sale proposed, 10% fresh equity & 10% offer for sale

Manoj Gaur says Expecting SEBI nod for Jaypee Infratech IPO by April 22-Want to bring out IPO a few days after SEBI nod-No change in fund raising target; will raise around Rs 2500 crore
-Exposure to Uttar Pradesh should not worry investors-To launch 2 new townships along Yamuna Expressway by October: Srcs-Will consider airport development at an opportune time

Modern Steel : Q4 -Sales at Rs 75.21 crore versus Rs 60.62 crore (YoY)-PAT at Rs 0.39 crore versus a loss of Rs 2.71 crore (YoY)

Unitech board meet today to consider recommendation of restructuring of committee (For selling non-core business)

LG appoints Redington its distributor for Mobile phones in Tamil Nadu (Company expect about Rs 150-180 crore in FY'11)

Shrenuj : Board meet today to consider amalgamation with Shrenuj Diajewels Ltd. and Shrenuj Gems & Jewellery Ltd

-Re-Listing of Kirloskar Brothers today

-Tata Steel may not sell Teesside – ET

-Videocon inks pact with Philips NV to make and sell Philips brand TV in India

-OMCs to be adequately compensated says Petroleum secretary – ET

-Acrelor Mittal eyes stake in Ferro Alloys Corp – BS (CMP Rs 23.5)

-Heavy Eng Cop eyes HMT’s sub Hindustan Machine Tools – DNA


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