Wednesday, May 19, 2010

BOR: Market Outlook: Expect Indian markets to open in negative today

Market Outlook: Expect Indian markets to open in negative today on the back of selloff on the global counters. 4980 being the 200-day DMA is expected to act as a good support level in the near term. The long-term support for the market stands at 4675 and is a crucial level for investors looking at long-term investments. The market seems to be a bit jittery as of now and investors should wait for some more consolidation before taking any fresh positions.

Global Events to watch for today:

  • Bank Reserve Settlement
  • MBA Purchase Applications
  • Consumer Price Index

Global indices Update @ 8:

Dow Jones : 10510 (- 114.8)

NASDAQ : 2317 (- 36.97)

Nikkei 225 : 10079 (- 163.6)

Hang seng : 19554 (- 390.9)

SGX CNX Nifty : 4980 (- 84.50)

INR / 1 USD : 45.55

Stocks in action for the day : Bank of Rajasthan, RIL, RNRL, Take Solutions, Godrej Consumer

Bank of Rajasthan to merge with ICICI Bank: After being under the regulator's scanner, the promoters of Bank of Rajasthan (BoR) has agreed to merge with ICICI bank. Both have agreed to a share swap of 1:4.72. In terms of quantity, every 118 shares of BoR will get 25 shares of ICICI Bank. The Bank of Rajasthan board has given an in-principle nod for merger with ICICI Bank. The BoR board is scheduled to meet on May 23 to mull the share swap ratio with ICICI Bank. As per SEBI, Tayals hold 55% stake in BoR as of December 2009.

RIL, RNRL begin 'talks' on gas deal: Reliance Industries (RIL) and Reliance Natural Resources (RNRL) on Tuesday started informal talks on a possible gas supply agreement after the Supreme Court in its judgement on May 7 ordered the two companies to renegotiate the gas supply master agreement (GSMA) in accordance with government policy.

BSNL selects four firms for WiMax project: Bharat Sanchar Nigam has given Letters of Intent (LoI) to Teracom, Take Solutions, Adishwar India and Ampoules to roll out WiMax-based broadband services as a franchisee. BSNL had received bids from five companies of which four have been selected to offer broadband services on a revenue-sharing model. While Teracom has partnered with Cisco for the project, Take Solution has a tie-up with Chinese vendor ZTE. Adishwar and Ampoules have partnered with Israeli equipment vendor Alvarion. The fifth bid from E-Mall, backed by ZTE, did not make the cut.

Godrej to raise $150 mn to buy Sara Lee stake: Billionaire Adi Godrej said his Godrej Consumer Products may raise as much as $150 million from selling shares to fund its purchase of Sara Lee’s stake in an Indian venture and other acquisitions.

Tarapur Transformers slips 30% from its high: Tarapur Transformers touched an intraday high of Rs 97.50 and an intraday low of Rs 65.60. At 14:33 hrs the share was quoting at Rs 66.25, down Rs 8.75, or 11.67%. It was down more that 30% from its high. NSE and BSE volumes were 11x free-float. Tarapur Transformers has listed at its issue price of Rs 75. The company, a part of the power engineering solutions provider Bilpower, had entered the capital market with an initial public offering of 85 lakh shares during April 26-28. The issue was subscribed 1.74 times. Bilpower reduced its stake to 41.46% from 73.50% post issue.


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