Monday, April 19, 2010

BOR: Market Outlook: Indian markets will witness a weak start to trade as global equities plunged as sentiment got jittery following Goldman Sachs’ fr

Market Outlook: Indian markets will witness a weak start to trade as global equities plunged as sentiment got jittery following Goldman Sachs’ fraud charges. On the domestic front, expectations of a rate hike from the Reserve Bank of India during its monetary policy on Tuesday will keep the market mood subdued. Some key corporate results that are due this week which could provide near-term direction for the stock markets. Nifty has supports at 5180-5200 and resistances are at 5300-5330.

Global Events to watch for today

  • Leading economic Indicators

Global indices Update @ 8:

Dow Jones : 11018 (- 125.9)

NASDAQ : 2515 (- 34.43

Nikkei 225 : 10901 (- 200.8)

Hang seng : 21541 (- 324.1)

SGX CNX Nifty : 5180 (- 77.00)

INR / 1 USD : 44.49

Stocks in action for the day : Unitech, Videocon, HDFC Bank, Sical

Unitech floats Rs 3 bn Mumbai redevelopment fund Unitech Group, which runs the country`s second-largest developer, Unitech, launched a Rs 3 billion venture capital fund to raise funds for its slum redevelopment projects in Mumbai, a top group executive said. Called Mumbai Redevelopment Fund I, the fund will have an initial target of Rs 2 billion and a greenshoe option of Rs 1 billion, the executive said. The group had promised a fixed coupon rate of 8% and overall returns of 20% to investors, he said. The fund, which was launched around two weeks ago, is expected to close within the next two months. When contacted, aUnitech spokesperson confirmed the launched.

Videocon aims to double Pipavav plant capacity to 2400 MW Videocon Group, a diverse business conglomerate, is planning to double capacity of its proposed power plant project at Pipavav in Gujarat. The group`s power arm, Videocon Power, is in the process of setting up a 1200 MW coal fired power project at Pipavav for an outlay of Rs 60 billion. ``We have acquired land for the project and have also achieved financial closure. We are looking at doubling the power capacity by Pipavav. The company has already begun the necessary spadework and have already placed order with BHEL (Bharat Heavy Electricals) for machineries for 1200 MW,`` Venugopal Dhoot, chairman, Videocon Group. The company will need to invest additional Rs 50 billion for the expansion, Dhoot said.

HDFC Bank FY10 retail loan growth at 25% The country`s second largest private sector lender HDFC Bank saw its retail loan book growing by a smart 25% in the past fiscal on the back of healthy demand from home, auto and personal loan segments. In March alone, the lender disbursed around Rs 40 billion retail advances, out of which auto loan comprised Rs 13 billion, home loan Rs 12 billion and personal loan around Rs 6 billion,HDFC Bank country head for retail assets & credit cards Pralay Mondal said. ``Overall there is a pick-up in demand for retail loans. Clearly, the consumer confidence has come back and we expect to sustain the growth momentum in the current fiscal as well,`` Mondal said in an interview.

Sical Logistics to sell its stake in Chennai terminal to PSA Sical Logistics is selling its 27% stake in a new container handling facility at Chennai port to PSA International, its dominant joint venture partner, two people familiar with the matter said. ``Sical has applied to us for permission to sell its 27% stake in Chennai International Terminals to PSA,`` said an official at Chennai port. ``We have referred the proposal to the legal department.`` Proceeds from the stake sale will be used by the parent AC Muthiah group to restructure its debt-ridden fertilizer firm Southern Petrochemical Industries Corp (Spic), the second person said. The two people did not want to be named.

IL&FS plans stake sale to raise USD 300 mn Infrastructure Leasing and Financial Services (IL&FS), the main holding company for the IL&FS group`s infrastructure investments, is set to raise around USD 300 million (Rs 13,350 million) by selling a combination of existing and fresh equity shares, two bankers familiar with the development said. The sale of shares will be to existing overseas shareholders of the closely held non-banking finance company (NBFC), said the bankers who asked not to be named. IL&FS will sell a portion of its employee welfare trust holding in addition to issuing new shares, diluting equity by 10% and putting the company`s enterprise value at USD 3 billion, they said.


No comments: