Monday, May 24, 2010

BOR: Market Outlook: Nifty may have flat to positive opening today

Market Outlook: Nifty may have flat to positive opening today on the back of positive support from the global cues & may get a boost with the cancellation of the old non-compete agreement between the feuding Ambani brothers on Sunday. We expect that the pact would have a positive impact not just on the stocks of both groups, especially those of ADAG companies, whose stocks have been battered over the past several months, but also on the broader market. Nifty has supports at 4850-4880 and resistances are at 5000 -5050.

Global Events to watch for today:

  • Leading Indicators

Global indices Update @ 8:

Dow Jones : 10193 (+125.3)

NASDAQ : 2229 (+25.03)

Nikkei 225 : 9756 (- 27.82)

Hang seng : 19595 (+49.53)

SGX CNX Nifty : 4976 (+49.00)

INR / 1 USD : 46.95

Stocks in action for the day : Bank of Rajasthan, ITC, JK Lakshmi, GMR Energy

BoR Board okays merger swap ratio with ICICI Bank: The Bank of Rajasthan board has approved the swap ratio for its merger with ICICI Bank at 1:4.72. The merger proposal will go to EGM on June 21, 2010, reports CNBC-Tv18, quoting sources. BoR board had given an in-principle nod for the merger with ICICI Bank. BoR promoter PK Tayal has said that he respects the board's decision. Meanwhile, BoR said that it will take regulatory approval post the EGM approval and also address the issue of employee dissent, going forward. The bank has assured that there will be no job loss post the merger and all employee benefits will continue.

ITC Q4 profit jumps 27%, to pay spcl dividend: Tobacco-to-hotels major ITC on Friday reported a 27.1% year-on-year (y-o-y) growth in net profit for the fourth-quarter (Q4) ended March 31, 2010, at Rs 1,028.22 crore. The company had posted Rs 808.99-crore profit in the corresponding period of the previous year.

JK Lakshmi to acquire Egyptian co for Rs 800 cr: As part of its strategy to tap overseas markets, JK Lakshmi Cement, the Hari Shankar Singhania Group flagship, is holding talks to acquire an Egyptian cement firm for around Rs 800 crore. A person privy to the development said that the target company has an annual production capacity of two million tonne and the deal is likely to be sealed by the end of this calendar year. He, however, declined to disclose the identity of the overseas firm. The target was identified after a technical team from JK Lakshmi visited Egypt and the Middle East.

GMR Energy plans to raise Rs 10,275 crore in debt: GMR Energy, a subsidiary of Bangalore-based GMR Infrastructure, plans to raise Rs 10,275 crore of debt funding to help achieve financial closure of three of its power projects.

IRB Infra gets road project in Karnataka from NHAI: IRB Infrastructure Developers Ltd reported that the company is the "selected bidder" for National Highways Authority of India's 114-km road project in Karnataka.

Mahindra Satyam BPO secures five year contract with GSK.


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