Thursday, May 6, 2010

BOR:Market Outlook: Indian markets are expected to trade under pressure on weak global cues.

Market Outlook: Indian markets are expected to trade under pressure on weak global cues. Asian stocks slumped on concern the Greek deficit crisis will spread through Europe and hurt the global economic recovery after Moody`s Investors Service placed its Portugal rating on review for a possible downgrade. Adding to this US stock market extended its slide Wednesday after investors couldn`t shake their concerns about European countries` big debt loads. We advice traders not to trade on stock specific and focus on index based trades.

Global Events to watch for today:

  • Chain Store Sales
  • Jobless Claims
  • Productivity and Costs
  • EIA Natural Gas Report

Global indices Update @ 8:

Dow Jones : 10868 (- 58.65)

NASDAQ : 2402 (- 21.96)

Nikkei 225 : 10709 (- 348.2)

Hang seng : 20838 (- 156.0)

SGX CNX Nifty : 5098 (- 32.00)

INR / 1 USD : 44.87

Stocks in action for the day : Mid-Day, Patni, L&T, Jindal Steel, SBI......

Cabinet may consider Coal India IPO on Thursday: Sources: The Union Cabinet may consider the initial public offering of Coal India on Thursday, reports CNBC-TV18, quoting sources. The government has proposed a 10% disinvestment in the state-owned firm. The Centre expects nearly Rs 12,000 crore from the stake sale. It has invited bids for the selection of book running lead managers for Coal India, a navratna company. Around 15 investment banks have given presentations for the same. Nomura, Citibank, SBI Caps, HSBC, RBS, and IDBI are in race for the mandate. ight PSU issues are expected to hit the markets in FY11. These include SCI, MMTC and PowerGrid. A decision on the Indian Oil FPO will be taken later this year.

Mid-Day seals Jagran Prakashan deal with 7:2 swap ratio: The board of Mid-Day Multimedia on Tuesday approved demerger of its print business and okayed transferring it to Jagran Prakashan with effect from April 1, 2010. The Print business of Mid-Day Multimedia is run through its wholly owned subsidiary Mid-Day Infomedia Ltd (MIL), which has publication brands like the Mid-Day. s per the deal, for every 7 shares of Mid-Day Multimedia, its shareholders would get 2 shares on Jagran. The deal, Agarwal said, would result in an equity dilution of 4.9%.

Patni promoters, PE co plan to sell stake to Japan's NTT: The Patni brothers are likely to offload a large chunk of their combined stake in Patni Computer Systems, while private equity firm General Atlantic plans to sell its entire holding in the software company to Japanese systems integrator NTT Data, according to people with knowledge of the matter. The three brothers, who together hold 46.5%, are expected to retain a combined 10% stake in the firm. Ashok Kumar Patni holds around 15.5%, Gajendra Kumar Patni owns 15% and Narendra Kumar Patni has 16% stake in the company. General Atlantic, which holds 17.7% in Patni Computer, will sell its entire stake, said an investment banker requesting anonymity.

L&T on aggressive expansion abroad Gulf region developing into one major hub; firm says it wants wide global customer base. Larsen & Toubro (L&T), India`s largest engineering, construction and technology company, is aggressively expanding its footprint across various places abroad, as part of a vision to become a global multinational engineering and technology major. L&T has started new offices, mainly sales and marketing outfits, in countries such as Nigeria and South Africa in the African continent, Brazil in Latin America and Germany in Europe in the past few months. Further, the company is transforming its West Asia operations as a major hub for its international business, like a `Mini L&T based out of Gulf`, with extensive manufacturing and marketing operations, said sources.

JSPL bid for Ziscosteel rejected The Naveen Jindal-controlled Jindal Steel & Power (JSPL`s) attempt to acquire the Zimbabwe Iron & Steel Company (Ziscosteel) has failed. The Zimbabwe government has decided not to sell the ailing company to large corporations such as JSPL and Arcelor Mittal. The technical team which analysed the bids of interested players has recommended not to accept these proposals as the interests of the bidders ``could overwhelm Ziscosteel and work against the wishes and interests of the country``, local newspapers reported today, quoting Zimbabwe`s Industry and Commerce Minister Welshman Ncube. JSPL and Lakshmi Mittal-owned Arcelor Mittal were among the main suitors for Ziscosteel, which is 89 per cent owned by the government of Zimbabwe.

SAIL plans 6 million ton greenfield project Steel Authority of India (SAIL), which has five integrated steel plants under its umbrella, proposes to set up another greenfield integrated plant with annual steel output capacity of 6 million tonne. However, the public sector steel major is yet to identify the location of the project. The company is in talks with some state governments where it can get land and the matter is likely to be placed before the PSUs board soon, a senior official of the state run company said here. ``We are exploring the possibility of setting up a 6 million tonne greenfield project and talks are on with state governments where we can get land``, said V K Gulhati, director (technical), SAIL, declining to name the state with whom the company is in touch with.

Omaxe launches new commercial project in Punjab Real estate
developer Omaxe announced launching of a new commercial project in Punjab. `India Trade Tower` dubbed as the tallest commercial building of Punjab, with a realisation value of Rs 1.2 billion, is slated to be complete within two-and-half years from the commencement of construction. The India Trade Tower that would boast of offices and retail spaces, would be a contemporary building in Ground +19 floors format having total area of 2,45,000 sq ft.

NTPC plugging leakages in Tapovan project National Thermal Power Corporation (NTPC) said it was plugging leakages in an underground tunnel of its 520-Mw Tapovan Vishnugad hydropower project after the water discharge began receding considerably. The water discharge from the underground tunnel is now 200 litres per second from 700 litres per second in December. NTPC has also conducted a survey with the help of Geological Survey of India (GSI) which found no relation between the water discharge from the tunnel and drying up of water sources in and around the hill resort of Joshimath in Chamoli district of Uttarakhand.

DLF awaits government nod on revised land use plan The fate of the Rs 10 billion DLF Infopark project which has been mired in uncertainty ever since its launch in February last year, now hinges on the state government`s approval to the revised project plan submitted by the real estate player. Following the de-notification of the SEZ (Special Economic Zone) status, DLF, India`s biggest real estate firm, had announced to develop the project under the STPI (Software Technology Parks of India) scheme.

SBI forms JV for POS terminals State Bank of India has selected a consortium of Visa International and Elavon as partners for a joint venture, which will set up six lakh point of sales terminals - swipe machines for registering payments through credit and debit cards. The partners have not disclosed details of the deal size. Last year, ICICI had sold its POS terminal network to First Data Corporation for USD 80 million (around Rs 3,650 million). While SBI`s ambitions are bigger, ICICI Bank has been an early mover and the bank already had an installed base of 1.5 lakh machines at the time of the sale. SBI has incorporated a joint venture, SBI Payments Services, where the two partners will pick up stake at a significant premium.

RIL, RNRL gas dispute all set for court finale The Supreme Court in the next few days is likely to deliver its verdict on the gas pricing and supply dispute between energy companies RIL and RNRL, which have seen their share valuations erode as the judgment day nears. The verdict is expected on or before May 12, the day of retirement of Chief Justice K G Balakrishnan, who is heading a three-member bench that heard the dispute between Reliance Industries (RIL) and Reliance Natural Resources (RNRL), the companies led by billionaire brothers Mukesh Ambani and Anil Ambani, respectively.

Software cos focus on global alliances for big deals Indian software services companies are increasingly embracing global alliances to grab large contracts right under the noses of foreign tech powerhouses such as IBM, Accenture and Hewlett-Packard. Last month, Infosys Technologies bagged a three-year, USD 100-million contract to manage the internal systems of Microsoft in partnership with US-based Unisys Corp. Rival HCL Technologies won a series of service contracts from Nokia, Xerox and Electrolux by partnering global tech companies such as SunGard, CompuCom, Infocare, Interxion and Sun ITS.


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