Tuesday, April 13, 2010

BOR: Market Outlook: Indian markets expected to open in negative terrain on the back of Asian pressure.

Market Outlook: Indian markets expected to open in negative terrain on the back of Asian pressure. The markets might have reacted to slower growth in Index of Industrial Production (IIP) data. The IIP for the month of February rose at a slower-than-expected 15.1% as against 16.7% on a month-on-month basis, helped by stimulus measures that boosted domestic demand. Among internals, manufacturing sector growth declined to 16% versus 17.9%; mining to 12.2% versus 14.6%; basic goods to 8.4% versus 10.7%; capital goods to 44.4% versus 56.2% while consumer goods growth increased to 8.9% versus 4.2% and electricity to 6.7% versus 5.6% on month-on-month basis.

Results today: Infosys, Essar Oil , Mastek , Blue Dart

Global Events to watch for today

  • ICSC-Goldman Store Sales
  • International Trade
  • Import and Export Prices

Global indices Update @ 8:

Dow Jones : 11005 (+08.62)

NASDAQ : 2457 (+03.82)

Nikkei 225 : 11145 (- 106.0)

Hang seng : 22230 (+92.30)

SGX CNX Nifty : 5335 (- 13.50)

INR / 1 USD : 44.35

Stocks in action for the day : Pfizer Ltd, Jagran, Allahabad Bank, NTPC, Himalaya,

Jagran Prakashan hits bull's eye: Last week, the US-based private equity (PE) player Blackstone Group announced its plans to invest around Rs 225 crore in the company. Secondly, the company said that it was exploring the possibility of forging an alliance with Mid-Day Multimedia, the company that publishes the tabloid Mid-Day. These two developments have enhanced investor interest in the stock, which has done well in recent quarters.

Pfizer Investments ups stake to 70.75 pct in Pfizer Ltd: Drug-maker Pfizer Ltd said on Monday Pfizer Investments Netherlands B.V. along with Pfizer Inc has raised stake in the company to 70.75 percent from earlier 41.23 percent through an open offer. Financial details were not provided.

IVRCL bags contracts worth Rs 832.51 cr; stock up 1%: Shares of IVRCL gained momentum after the company bagged multiple orders worth Rs 832.51 crore. The multiple orders were bagged from water resources department, Mumbai, Power Grid Corp Ltd and a thermal power project in Tamil Nadu, it said in a statement.

Pratibha Ind wins Rs 158 cr contract; stock up 2%: Shares of Pratibha Industries were in demand after the company secured a contract for 'design and construction of 500 mini water supply schemes' from the government of Bihar’s public health engineering department. The project is in joint venture with Pune based Membrane Filters (India) Pvt. Ltd. The value of the contract is Rs. 157.59 crore.

Allahabad Bank business touches Rs 1,790 bn State-run Allahabad Bank has said its total business touched Rs 1,790 billion during the 2009- 10 fiscal, exceeding the target of Rs 1,750 billion. Deposits of the bank stood at Rs 1,060 billion, while advances stood at Rs 730 billion for the period, chairman and managing director JP Dua said in a statement. Dua said that the bank had implemented CBS in 969 branches out of a total of 2,287 planned to implement CBS fully at all its branches by the end of calendar year 2010.

NTPC may get to sell 50% of output to home states: NTPC may soon get to allocate up to 50% of the output from its new plants to the home state, allowing it to compete with private developers. Private sector power project developers have snatched away a number projects from the largest power producer by offering a higher share of output to the state where the project is located. The power ministry is finalizing a note for the Cabinetto implement the proposal. ``Once approved, it would give a boost to the power PSU`s plan to implement a host of greenfield projects on its own or under joint venture with state utilities,`` said a government official privy to the development.

Essar Steel Holdings to raise USD1 bn via bonds for expansion Essar Steel Holdings - a Mauritius-based company, which owns the steel businesses of the Essar group - plans to raise about USD1 billion, or about Rs 45 billion, at current exchange rates through bonds to fund growth plans and replace costly debt. Although Essar Steel Holdings did not mention the total amount to be raised through the bond issue - the final size will be based on the response from investors - people familiar with the process said the company is targeting to raise USD1 billion to fund its growth plans in India and Canada, and to also buy raw material assets to integrate operations.

BHEL units to up biz from Defence The two major units of country`s largest power and transmission equipment manufacturer, state-owned Bharat Heavy Electricals (BHEL) are planning to re-enter defence business. The units - Tiruchirappalli (Tiruchy) and Ranipet - are planning to produce battle tanks, missile launchers and water desalination facilities for submarines. It may be noted that the Ranipet unit also supplies fuel tankers for space exploration projects. Recently B P Rao, chairman andmanaging director of BHEL said, ``Talks are on for supplying certain type of equipment for the armed forces.`` BHEL is working on supplying heavy duty 127 mm guns to the Navy. BHEL supplies 76 mm guns to Navy.

Himalya to invest Rs 120 mn in canned soup plant Consolidating its position in Gujarat, Paonta Sahib (Himachal Perdesh) based, BSE listed Himalya International (a company into business of frozen foods) has lined up an investment of Rs 120 million for setting up a canned soup plant at Vadnagar in Mehsana district (100 km from Ahmedabad). This project is a part of a mega project coming up in 100 acre at Vadnagar at an investment of Rs 1,320 million propsed by the company. The new project would come up in technical collaboration with the US based Wayne Farms which is associated with Camobells Soup Company (thelargest soup manufacturer in the world). Talking to Business Standard, chairman of Himalya International Limited Manmohan Malik said that canned soups would expand the basket of products offered by Himalya International that manufacturers a variety of frozen vegetables, appetizers and dairy products.

Tata Steel to resume work after notification of Gopalpur SEZ Tata Steel will kick off the development works on its proposed multi-purpose Special Economic Zone (SEZ) project near Gopalpur in south Orissa`s Ganjam district, once the SEZ is notified. Though Tata Steel`s SEZ project was cleared by the Board of Approvals (BoA) under the Union commerce ministry, it is yet to be notified due to problems in possession of land. ``The land possession problems in Chamakahandi and Basanaputi villages will be sorted out very soon. Company authorities have agreed to undertake a fresh survey on the lands being left out in these villages, for the payment of compensation and taking physical possession``, said an official of Tata Steel.

L&T`s order book robust, but implementation is key High and low; 2009-10 was a year of contradictions for engineering major Larsen & Toubro. While its order book went up at a much better pace than the year before, it disappointed somewhat on revenue. In the third quarter, the company announced orders of Rs 152.42 billion. In the past few weeks, the company reported new orders on a daily basis. ``I think they will achieve the order book growth target because they have already declared Rs 1,000 billion of orders by now and that is close to what they were supposed to achieve. It has been one of the best years in terms of order book inflow,`` says Nidhi Agrawal, analyst, Sharekhan.

RIL Jamnagar unit sez-zles with Rs 79k cr exports After hitting the slowdown bump when it commissioned its second refinery in December 2008, Reliance Industries (RIL)`s special economic zone (SEZ) in Jamnagar has finished its first full operational year in March 2010 with a quantum leap forward. Emerging as the singlelargest export zone in the country, the Jamnagar SEZ has seen its export nearly touch Rs 800 billion till March 2010.

IVRCL A&H eyes Rs 20k crore assets IVRCL Assets & Holdings (IVRCL A&H), formerly IVR Prime Urban Developers, is targeting to have assets worth Rs 200 billion three years down the line. The company currently holds assets valued over Rs 75 billion. Besides highways, the company will be bidding for build, operate and transfer (BOT) projects in power transmission, water, crude oil storage, parking lots, truck terminals, ports and coal mining, according to managing director S Ramachandran. Ramachandran told Business Standard that IVRCL A&H also proposed to exit from the real estate business and transform itself purely into an infrastructure development company.

GAIL to invest Rs 150 bn in new pipelines by 2013 GAIL India, the country`s biggest gas marketing company, will invest about Rs 150 billion over the next two-three years in expanding its pipeline network to connect consumption centers. Addressing a meet organised by the PHD Chamber of Commerce and Industry here, company Chairman and Managing Director B C Tripathi said his company was laying new pipelines to connect cities in the Northern states of Uttar Pradesh, Uttarakhand, Punjab and Haryana.

Bharti Airtel – Sources -Bharti raises nearly Rs 8,000-10,000 crore from banks for 3G -SBI sanctions Rs 4,500 crore loan at around 9% for 6 years -SBI sanctions USD 500 million ECB at around LIBOR + 290 bps -HDFC Group, Including IDFC, HDFC Bank to lend nearly Rs 4,446 crore

Atlas Energy Says: -RIL's was not the only proposal received for JV -In a position to add substantial acreage to JV -Will shortly announce acquisition of acreage in Marcellus region -JV will effectively eliminate revolver borrowing of USD 575 million -JV to create excess liquidity, create fresh cash flows -Finding & development costs for company could be as low as USD 0.20/mcf

SJVN – Sources -SJVN IPO price band expected to be around Rs 30/share -SJVN to file RHP on Wednesday SJVN IPO to hit market on April 29

Geojit BNP Paribas Q4 -Sales at Rs 62.09 crore versus Rs 43.74 crore ( YoY) -PAT at Rs 7.07 crore versus loss of Rs 10.93 crore.

Ace India issues & allotted 60.5 lakh convertible warrants to strategic investor

Rolta acquires One GIS Inc of Atlanta, USA

DCB promoters get time till 2014 to cut stake, bank looking to raise funds via QIP, rights issue – BS

Aban Offshore forced to roll over its debt repayment, will now pay in tranches till 2019.

Nalco gets go-ahead for Rs 14000 crore smelter project in Indonesia.

Cairn raised estimates in its Rajasthan field on its own, says ONGC (ONGC is partner in the field)


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