Monday, June 21, 2010

BOR: Market Outlook: Indian markets will have positive opening today

Market Outlook: Indian markets will have positive opening today on the back of recovery seen in the Asian counters. The US markets ended flat amid narrow range of trade. Asian markets gained post Renminbi exit from the peg during the weekend. Nifty has supports at 5160-5230 and resistances are at 5320-5380.

Global Events to watch for today:

Þ Bill Auction

Global indices Update @ 8:

Dow Jones : 10450 (+16.47)

NASDAQ : 23079 (+02.64)

Nikkei 225 : 10172 (+177.8)

Hang seng : 20717 (+431.1)

SGX CNX Nifty : 5322 (+63.50)

INR / 1 USD : 46.14

Stocks in action for the day : Dr Reddys Labs, BoR, Maytas, National Fertilizers, Arvind, RCom...

Maytas Infra: -Bin Laden Group to pick up 20% stake in Maytas Infra via preferential allotment -Maytas Infra open offer at Rs 195.72/share -Open offer opens on August 12 -IL&FS stake to come down to 29% Maytas Infra sources say confident of announcing FY10 result by June 30 -ALERT: Bin Laden Group is West-Asian construction conglomerate

Insurance stocks in focus -Law ministry ordinance says ULIPs governed by IRDA-New ULIP guidelines likely today, new ULIPs will not require SEBI nod: Sources

Reliance Broadcast Network -In JV with CBS of US -JV to own, operate television channels in India RBN & CBS will have equal 50% equity interest in JV -To start with English language general entertainment channels JV to explore Hindi, regional entertainment channels in phase-II

Domestic banks offer to lend Fortis up to USD 2 bn for Parkway Several Indian banks have assured Fortis Healthcare that they will line up the USD 2 billion the firm may need if it decides to place a counter-bid for the Singapore-based hospital chain Parkway. Axis Bank, Punjab National Bank, SBI, Bank of Baroda and Yes Bank are among the local banks that have given an in-principle commitment, said a person close to the matter. Fortis is yet to take a call on whether to counter the bid of Malaysian sovereign fund Khazanah, which has offered to buy a majority stake in Parkway. Singapore`s securities regulator has asked the Indian firm to announce its plans by July 30. Fortis will need over USD 2.3 billion if it decides to buy the 74.6% stake that it doesn`t own in Parkway Holdings.

ADAG, CBS propose JV for TV channels Reliance Broadcast Network (previously known as Reliance Media World), an Anil Dhirubhai Ambani Group company, told the stock exchanges on Sunday it proposed to enter the TV broadcasting space. RBN said it intended to enter into a 50:50 joint venture (JV) with CBS Studios International, a wholly-owned subsidiary of CBS Corporation of the US, to own and operate a portfolio of television channels. ``In the event that negotiations with respect to the JV are successfully completed, the JV will initially include English general entertainment channels. The parties will explore owning and operating Hindi and regional language general entertainment channels in the future,`` was RBN`s statement.

L&T`s electrical division to double sales to Rs 80 bn Larsen & Toubro`s electrical and electronics business division (EBG) is targeting to more than double its turnover to over Rs 80 billion by 2015, thanks to vibrant activity in India`s power sector to add over 200,000 Mw of installed capacity by the end of the 12th five-year plan. Last year, L&T had reorganized itsbusiness units under various verticals termed as `Operating Companies` (OCs), with its own internal boards, to spur growth and optimise internal resources. The EBG operating company, one among the eight OCs in the re-organised structure, currently generates a turnover of about Rs 35 billion. L&T`s total annual turnover is Rs 350 billion.

National Fertilizers forays into wind power State-owned National Fertilizers has announced its foray into wind power generation with a 14.7-Mw project in Rajasthan. ``Entry into the wind energy segment is a part of our efforts to contribute to the clean environment. We have awarded the project to Suzlon Energy to execute. It will be completed by the end of September,``National Fertilizers Chairman and Managing Director VK Sharma told PTI. He further informed that the project would involve an investment of around Rs 720 million and the energy generated would be for commercial use.

Tata Steel at Kalinganagar sets new benchmark in R&R Tata Steel, which is setting up a six million tonne per annum greenfield steel plant at Kalinganagar steel hub in Jajpur district, has set a new benchmark in Rehabilitation and Resettlement (R&R) for the families affected by the project. This model R&R scheme, being implemented under the banner of Tata Steel Parivar, focuses on reassuring communication, customised rehabilitation & resettlement and rechecking of its implementation for each family through self and independent social audits. Each family covered under the scheme is assured of the benefits for a period of ten years.

Orient Ceramics to invest Rs 1 bn in capacity expansion Tiles maker Orient Ceramics and Industries on Sunday said it will invest around Rs 1 billion over the next one year in expanding manufacturing capacity. ``We plan capacity expansion as there is huge potential. The expansion will be done either by putting up a new plant or by entering into a joint venture with an established player or by both,`` company Executive Director, Madhur Daga said. Orient Ceramics, which has 50,000-square metre per day tiles making capacity at its plant in Uttar Pradesh, along with eight contract manufacturers in Gujarat, enjoys nearly seven per cent share of the country`s Rs 40 billion organised market. The unorg anised sector also commands around Rs 40 billion market in India.

Promoters may further raise stake in Max India Promoters of Max India, led by Analjit Singh, have increased their stake in the company to about 35% last week and are expected to raise their holding further in the near future. The promoter group increased stake by 0.69% to 35.47% through open market purchases in the last two trading sessions, sources close to the development said. The promoters are committed to raise their stake further as they believe group`sbusiness has potential to grow multi-fold in profits as well as valuation in the future, sources said. The company is into life insurance, health insurance and healthcare businesses through subsidiaries. Sources said that the deals were executed at an average price of Rs 163.95 resulting in an investment of about Rs 260 million.

Arvind plans Rs 2 bn textiles expansion Textiles maker Arvind will spend about Rs 2 billion in FY11 to raise textile capacity in denims and shirting, a senior official said on Friday. ``We would be adding about 10% in capacity both in denim and shirting fabrics. Shirting would be slightly higher,`` chief financial officer Jayesh Shah told Reuters in an interview. The capex would be funded mostly through internal accruals. Ahmedabad-based Arvind, the third largest maker of denim globally, counts Levi Strauss, Gap Inc and VF Corp as clients. The firm is expecting a growth of at least 15% in consolidated sales helped by a robust brand and retailbusiness, Shah said.

RCom to sell Infratel stake to GTL, PE firm The Reliance Anil Dhirubhai Ambani Group (R-Adag) plans to reduce its holding in its telecom tower business to 20-25% from 95%, with stake sales to GTL Infrastructure and a private equity investor, two bankers familiar with the plan said. The sale of stakes in Reliance Infratel, which is being spun off from the group`s cellphone firm Reliance Communications (RCom), will take place in transactions that will combine cash and stock, said the bankers, who didn`t want to be named. The sale will take place in three stages. First, 54,000 telecom towers operated by Reliance Infratel and 32,000 GTL Infrastructure towers will be hived off into a special purpose vehicle, or SPV.

Ex-Dates -Sterlite : Bonus @ 1:1 & Stock Split @ 2:1 -Ultra Tech Cement : Ex-Dividend Rs 6/share -Corporation Bank : Ex-Dividend @ Rs 16.5/share-RS Software: Ex-Bonus @ 28:10 -Panoramic Universal : Ex-Bonus @ Rs.5:1

Bonus Issue-Board Meet today:

U-flex for fund raising of Rs 750 crore

Dr Reddys Labs may sell in domestic formulation biz for Rs 1000 cr – BS

Arun Sarin may be asked to head BSNL – BL

ICICI Bank, Bank of Rajasthan (BoR) shareholders meet today to approve merger, BoR staff to go on 3 day strike from today to appose merger

AV Birla, Hinduja and JP group in race to acquire Central India Power co promoted by

Pramod and Vinod Mittal – Mint

Reliance Communications to sell Infratel stake to GTL, PE firms – Mint

Tomkins eyes JP Goenka’s stake in Schrader
Duncan – PTI


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