Wednesday, May 26, 2010

BOR: Market Outlook: Markets are likely to be flat and trade in positive terrain

Market Outlook: Markets are likely to be flat and trade in positive terrain on the back of mixed performance on the global counter. Nifty has supports at 4700-4760 and resistances are at 4900-4950. We believe India is unlikely to be impacted more by the sovereign debt crisis in Europe. We expect June to be a better month for the market, as the current fall is a good entry point for investors, given that fundamentals are stronger and fiscal health is better.

Results Today: Tata Steel, Asian Hotels, Bank of India, Cinemax India, Dalmia Cement, Ess Dee Aluminium, Everest Kanto, Godrej Industries, HPCL, Indian Hotels, K Sera Sera, Mphasis, Oil India, REI Agro, BHEL (Provisional numbers already out)

Global Events to watch for today:

  • New Home Sales
  • Purchase Applications
  • Durable Goods Orders

Global indices Update @ 8:

Dow Jones : 10043 (- 22.82)

NASDAQ : 2210 (- 02.60)

Nikkei 225 : 9485 (+25.57)

Hang seng : 19126 (+140.5)

SGX CNX Nifty : 4863 (+33.50)

INR / 1 USD : 47.40

Stocks in action for the day : HUL, Marico, DLF, Biocon, Infosys, Wipro, Lupin, Reliance Industries

Lodha wins MMRDA bid for Rs 5,700cr Wadala land deal: Lodha Developers has won the MMRDA bid for Rs 5,700 crore, The iconic 22-acre MMRDA plot is located at Mumbai’s central suburb of Wadala. The developable area is about seven acres while the rest has to be left as open space. It has a floor space index of 19.5. MMRDA had set the reserve price at Rs 1980 of Rs 4000 per square metre. Other real estate companies which were in the race are Sunteck Realty for Rs 4,500 crore and India Bulls Real Estate for Rs 4,000 crore. Sources say that Lodha Developers will make an upfront payment of Rs 400 crore while the rest will be made in staggered manner over five years at 10% interest. Industry experts say that because of the high floor index in the area, the developer is likely to consider building it into a residential project.

HUL Q4 net, sales rise, but margins feel heat: Hindustan Unilever (HUL) said its strategy of driving up volume growth is working well, but margins at the home care and personal products maker are suffering, its results for the fourth quarter which ended in March show. Sales in its mainstay soaps and detergents business fell from a year ago and net profit from ordinary activities, too, declined by 7.9% to Rs 422.3 crore.

Marico buys skincare biz in Singapore: Personal care products maker Marico on Tuesday announced acquisition of the aesthetic skincare business of Singapore-based Derma Rx Asia Pacific Pte for an undisclosed sum.

DLF to launch Mumbai`s largest luxury housing project soon Apartments likely to be in the Rs 50-100 million range each. DLF, the country`s largest real estate company, is planning to launch its Lower Parel high-end housing project soon, said sources in the know. Touted as Mumbai`s `largest luxury residential project`, the project is expected to have three towers with 1,000 apartments and one of the largest parking lots in the city. The apartments are likely to be in the Rs 50-100 million range each, with the minimum size being 2,000 sq ft, property consultants said. DLF has sounded out major property brokers and consultants. Though brokers say the company is likely to launch in the next one-and-a-half months, company executives maintain the launch is a few months away. ``We are in no hurry. With markets improving, we hope to get good pricing for the project,`` said Executive Director Rajeev Talwar.

Biocon eyes USD 50 mn from Optimer tie-up Biocon, India`s premier biotechnology company, which recently entered into a manufacturing and supply agreement with Optimer Pharmaceuticals, is expecting revenues from the tie-up to touch USD 50 million per annum in the next five-six years. Biocon has agreed to manufacture active pharmaceutical ingredient fidaxomicin, Optimer`s lead product candidate for the treatment of clostridium difficile infection (CDI).

Infosys, Wipro to set up new campuses in Bangalore Indian IT companies which have recovered from the fallout of the US slowdown are looking to expand their businesses in a big way. Big IT companies like Infosys and Wipro have mega investment plans lined up in India`s Silicon Valley Bangalore. Infosys is planning to set up two new campuses in the Garden City. Wipro is also planning to set up a brand new campus there. Karnataka Industries Minister Murugesh Nirani told ET Now that both companies have plans to set up campuses; however they are in proposal stage.

BSNL, MTNL to make big gains from intra-circle roaming pacts The absence of a pan-India 3G licence winner may spell good news for state-owned telcos BSNL and MTNL as private operators will have to approach them for intra-circle roaming agreements in regions where they themselves failed to win 3G airwaves. Executives of several telcos said they were exploring an alliance with BSNL that has 3G airwaves in all circles as it would be a single step solution as against stitching alliances with several firms across the country. MTNL has 3G airwaves for Delhi and Mumbai.

Lupin gets USFDA nod for high blood pressure tablets Pharma major Lupin has received US FDA approval for its losartan potassium and hydrochlorothiazide tablets, the drug regulator`s website showed on Tuesday. Losartan potassium and hydrochlorothiazide tablets are used to treat high blood pressure. No other details were available immediately.

New power projects may get gas from RIL`s KG basin The empowered group of ministers on gas allocation will soon draw up a list of the next set of beneficiaries in the power sector to receive gas from Reliance Industries` (RIL) KG basin. A senior government official told ET that as opposed to the earlier policy of giving KG basin gas to only old projects that did not get enough gas, this time priority will be given to projects with fresh capacities and new ones that are in advanced stages of execution.

Aban Offshore : Approves fund raising of $400 Mn through issue of FCCBs, GDRs, ADRs etc & QIP of upto Rs 2500 crore

HCC : bags Rs 888 crore contract for Rajasthan Atomic Power

Tata Tea : Approves stock split in the ratio of 10:1

Grasim to be replaced by JSPL in Sensex from today

Grasim ex-date for de-merger of samruddhi cement ((Consensus estimate for samruddhi @ Rs.490/shr))

Adani Enterprise, REC, Piramal Healthcare to be added to MSCI Index w.e.f today

ICICI Ventures plan IPO – Mint

AV Birla group revives plans to enter power space, in talks for an acquisition of a thermal plant in South India

Power Grid FY10 (cr - crore, vs - versus) -Net sales at Rs 7,127.5 cr vs Rs 6,675.9 cr -Net profit at Rs 2,040.9 cr vs Rs 1,690.6 cr

Mercator Lines FY10 -Cons net sales at Rs 1431.3 cr vs Rs 2133.6 cr -Cons net profit at Rs 53.2 cr vs Rs 376.5 cr

Nagarjuna Construction Q4: -Net profit at Rs 103 cr vs Rs 38.2 cr (YoY) -Revenue at Rs 1,522 cr vs Rs 1,096 cr (YoY)

HUL Q4: -Net sales at Rs 4,315.8 cr vs Rs 3,988.3 cr (YoY) -Net profit at Rs 581.2 cr vs Rs 395 cr (YoY)

JM Financial FY10 -Sales at Rs 598 cr vs Rs 464 cr (YoY) -PAT at Rs 151.6 cr vs loss of Rs 105.2 cr (YoY)

Jai Corp Q4 (Standalone) -Sales at Rs 117 cr vs Rs 71.7 cr (YoY) -PAT at Rs 17.9 cr vs Loss of Rs 26.3 cr (YoY)

Tata Tea Q4 (Consolidated) -Sales at Rs 1570 cr vs Rs 1276 cr (YoY) -Reported PAT at Rs 30 cr vs Rs 12 cr (YoY) -Exectional loss of Rs 14 cr vs Rs 52 cr (YoY) -Effective Tax rate at 70%


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