Friday, April 30, 2010

BOR: Market Outlook: Indian markets expected to rebound back in green on the back of positive momentum on the global space.

Market Outlook: Indian markets expected to rebound back in green on the back of positive momentum on the global space. We expect support for Nifty at 5,290 and resistance at 5,350 levels.

Results Today: Reliance Cap, Tech Mahindra, ABB, TTML, Titan Inds, Adani Power, Allahabad Bank, Alok Inds, Amtek Auto, Avaya Global, Bank of Maharashtra, Bharat Elect, Finolex Cables, Gateway Distrpark, GVK Power, HCL Infosystems, Hinduja Ventures, HCC, IDBI Bank, IFCI, India Cements, Info Edge India, IRB Infra, Kalindi Rail, Moser Baer, NDTV, Onmobile Global, Oudh Sugar, Shyam Telecom, Sintex Inds, Solvay Pharma, Suven Life, Tanla Solutions, Tata Elxsi, UCAL Fuel,Uco Bank, Vijaya Bank

Global Events to watch for today:

  • GDP
  • Employment Cost Index
  • Consumer Sentiment
  • Farm Prices

Global indices Update @ 8:

Dow Jones : 11167 (+122.0)

NASDAQ : 2511 (+40.19)

Nikkei 225 : 11.072 (+147.4)

Hang seng : 21031 (+252.1)

SGX CNX Nifty : 5271 (+24.00)

INR / 1 USD : 44.57

Stocks in action for the day : Kalpataru Power, Hanung Toys, Bata, RIL, MTN, Bharti, Pantaloon, UltraTech...

IPO update SJVN – day 1 - Total: 0.43 times (x), QIB: 0.70x, NII: 0.0031x, Retail: 0.03x, Maximum demand at Rs 26/sh ((upper end)) JP Infra – day 1 - Total:0.84x, QIB: 1.5x, NII: 0.10x, retail: 0.015x ((Max demand at Rs 103/sh, band: 102-117

Kalpataru Power - Sources-Kalpataru Power QIP book opens -Kalpataru power plans to raise USD 80-110 million Via QIP Kalpataru Power QIP issue priced at Rs 1074.3-IDFC Capital, Morgan Stanley, Nomura bankers to Kalpataru Power QIP issue

YC Deveshwar says:-Hope Cigarette biz will account for 35% of total ITC biz by 2015-Will not curtail it if cigarette biz grows faster than expected-Board to decide on extension of chairman's Term-State of the company to determine term extension-Decision on term extension after detailed discussions-New governance structure should keep ITC sustainable-In my biggest interest to see my legacy multiply after me-2012 not sacrosanct in terms of end of chairman's term-FMCG biz continues to be in investment phase-Some FMCG categories already profitable-Expect consolidated FMCG biz to turn profitable soon -Hotel Biz seeing a revival in occupancy-Hotel tariffs still not back to 2007 levels-Stand on stake in Oberoi remains unchanged-Will launch new product categories

MTN, Bharti expansion to spawn African telecom deals The expansion of telecom majors MTN Group and Bharti Airtel across Africa is likely to put the continent`s smaller groups into play other multinationals look to shore up their positions. Analysts say the likes of Millicom International Cellular, Portugal Telecom, France Telecom`s Orange and Vodafone`s Vodacom will now be on the prowl with a view to bulking up their African assets. Paul Booth, director at emerging market research firm Global Research Partners, said he wouldn`t be surprised to see acquisitions of small, African operators by any of those firms, which have units or stakes scattered across the continent. There are a large number of small players.

Airtel questions CAG`s powers to audit accounts of pvt firms Mobile operator Bharti Airtel has questioned CAG`s authority to audit its accounts, saying the apex auditor`s powers are with respect to state-owned firms only. The Department of Telecom (DoT) had earlier asked five telecom companies-Bharti Airtel, Reliance Communications, Tata Teleservices, Vodafone Essar and state-run BSNL- to provide accounting details of three years from 2006-07 onwards to the Comptroller and Auditor General (CAG).

RIL looks to ride Atlas to retail brand in US Reliance Industries plans to sell gas to retail consumers in the US and will use its newly-minted partnership with Atlas Energy to try and build a brand name in the intensely competitive market. RIL, which bought 40% in Atlas Energy some weeks ago, plans to use the pipeline infrastructure that Atlas already has to supply through its own network of gas stations in the world`s biggest energy market. An RIL spokesperson declined comment on the development.

UltraTech to buy majority in Dubai`s ETA Star, deal seen at Rs 9 bn Ultratech Cement, the country`s second-largest cement maker and a part of Aditya Birla group, said on Thursday it would acquire Dubai-based ETA Star Cement for an enterprise value of Rs 17 billion. UltraTech CFO KC Birla said the deal will be funded through a mix of debt and internal accruals. ETA Star has a market share of 10% and 20% in Abu Dhabi and Bahrain, respectively. He, however, did not disclose the cost of acquiring the stake or the size of equity. A person familiar with the deal said UltraTech would pay around Rs 9 billion to acquire a majority stake in ETA Star.

SC verdict on RIL-RNRL gas issue likely next week The Supreme Court is expected to pronounce its verdict on the sale of natural gas by Reliance Industries to Reliance Natural Resources (RNRL) next week as the five-year wrangle between the Ambani brothers enters the last lap. The final judgments may impact the fortunes of two of India`s largestbusiness groups. If the apex court upholds Bombay High Court`s judgment seeking RIL to sell 28 million cubic metres of gas per day at USD 2.34 British thermal units for 17 years to RNRL, it would dent the profitability of India`s largest private company that posted a 30% rise in profit when it announced its quarterly results last week. NTPC is also locked in a legal battle with RIL to get gas at USD 2.34 per British thermal units.

Pantaloon, arm plan Rs 7.5 bn NCD Pantaloon Retail (India), the country`s largest retail company, and Future Value Retail (FVRL), recently carved out from Pantaloon as a 100% subsidiary, plan to issue non-convertible debentures (NCD) worth Rs 7.5 billion in the next three-four months, according to sources. The funds would be utilised to repay debt and convert some of the short-term loans into longer duration debt. Sources said whilePantaloon had plans for an additional NCD of Rs 2.5 billion after it raised a similar amount last year, FVRL was planning a fresh Rs 5 billion NCD issue.

CESC revives Balagarh project The power sector crisis in West Bengal has prompted RPG Group flagship CESC to revive its plans for a 660 MW thermal generation unit at Balagarh in the Hooghly district at a cost of about Rs 32 billion. ``Clearly, there is a need to add capacity. At Balagarh, the land is already with us. However, we will require coal linkage for the project and will approach the coal ministry shortly for this. Post-clearance, it will take three years for this project to be completed,`` CESC vice chairman Sanjiv Goenka said here today. Originally conceived in the 1990s as a 500 MW generation unit at a cost of about Rs 20 billion, the establishment of the facility was not undertaken due to certain reasons, which Goenka was unwilling to divulge.

Welspun Gujarat Stahl Rohren renamed Welspun Corp Steel pipe manufacturer
Welspun Gujarat Stahl Rohren, the flagship Company of Welspun Group changed its name to Welspun Corp citing the reason that the words Gujarat and Stahl Rohren (meaning steel pipe in German) are no longer relevant for the company in today`s context. ``Also the name is not contemporary and does not represent the company`s international reach and multitude businesses - current or future,`` the company said in a statement here. Besides steel pipe manufacture, Welspun Gujarat has been servicing the oil and gas retail companies and has forayed into infrastructure and energy businesses.

Great Offshore gets Bharati on board Oilfield services firm Great Offshore has won shareholders` approval to hand control of its day-to-day affairs, management and policy decisions to Bharati Shipyard without the need for a fresh open offer, by inducting two nominees of the shipbuilder as executive directors on its board. Bharati, India`s second largest shipbuilder outside state control, already holds a 49.73% stake in Great Offshore, but that wasn`t enough for it to gain control of day-to-day management. That`s because Bharati made an open offer for Great Offshore shares in December, saying it was doing so as a strategic investor and not to take control of the Mumbai-based firm. The special resolution has been approved by the shareholders with the requisite majority, Keki M. Elavia, chairman of Great Offshore, said in a statement.


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