Tuesday, June 22, 2010

BOR: Market Outlook: Indian markets likely to open flat to negative terrain today

Market Outlook: Indian markets likely to open flat to negative terrain today on the back of negative sentiments from the global peers. Nifty likely to witness range of 5400-5280. Overall outlook for the markets today is that of cautious optimism as the bulls must hold the Nifty above the 5325 levels sustain ably to manage an upmove.

Global Events to watch for today:

Þ Bill Auction

Global indices Update @ 8:

Dow Jones : 10442 (- 08.23)

NASDAQ : 2289 (- 20.71)

Nikkei 225 : 10175 (- 62.70)

Hang seng : 20855 (- 56.95)

SGX CNX Nifty : 5335 (- 18.50)

INR / 1 USD : 45.64

Stocks in action for the day : Yes Bank, RIL-RNRL, VIP, Tulip Tel, HCL Tech, GTL Infra, Maruti

Yes Bank –sources -Rabo Bank puts its 11% stake in Yes Bank on the block -Deal to be executed today via block deal -Rabo Bank to sell 3.73 crore shares of Yes Bank at Rs 260-270/share

RIL-RNRL gas pact may go to govt in day or two: Srcs: last week that Reliance Industries (RIL) and Reliance Natural Resources (RNRL) were looking to sign the gas pact and submit it to the government in 7-10 days. It is now being learnt from sources that the two gas majors may in fact submit the new gas pact to the government in a day or two Expansion of Reliance Power's gas plants is understood to be a part of the pact reached between both Ambani brothers

ICICI, BoR merger: Bks hold EGMs, to declare votes tomorrow: ICICI Bank and Bank of Rajasthan conducted their extraordinary general meetings (EGMs) on Monday to obtain shareholders nod for the proposed merger. While ICICI Bank EGM in Baroda went smoothly, some drama was witnessed at Bank of Rajasthan's EGM which was conducted in Mumbai.

HCL Tech looking for merger with HCL Infosystems: Sources say that HCL Tech may already have appointed two bankers to explore the merger. T his move will combine the assets of the two companies for better customer reach, wherein, HCL would offer hardware and software services to clients post the merger. Recently, HCL tech bagged USD 79 million deal to manage the IT infrastructure of the Sinagapore exchange.

Oil Ministry -Oil Ministry writes to several CMs to rationalise taxes Oil Ministry asks state govts to reduce VAT on petrol, diesel -Replace ad-valorem levies with specific rates: Murli Deora -Ad valorem rates aggravates impact of global oil prices on consumer: Murli Deora

Car makers – Sources -Car makers likely to hike prices in July by 3-5% -Price hike to be announced in first week of July by automakers -Hike on account of raw material prices going up -Maruti, Hyundai, M&M, Tata Motors likely to hike prices -Will be the fourth price hike since January 2010

Automakers Say -Prices of steel and rubber have gone up 20-25% in Apr-May 2010 -January price hike was due to rise in input costs -Second 2% excise duty hike in the Union Budget -Third in April 2010 due to implementation of new emission norms

Tulip Tele - -Tulip Tele, Global Group in talks to acquire 13% each in Qualcomm BWA venture Alert: Global Group is holding co of GTL Infra, GTL -Tulip Tele eyeing entire 26% stake in Qualcomm Venture -26% in Qualcomm Venture likely to be valued bet USD 100-200 million Alert: Qualcomm won four circles in BWA auctions for USD 1 billion Alert: Circles include Delhi, Mumbai, Haryana, Kerala Qualcomm says -Cannot comment on partner strategy and related details -Tulip Tele says cannot comment on speculation

NTPC in JV with Japan co, ADB For state-run generation utility NTPC, the answer is blowing in the wind. Stung by high fuel costs, the company is chasing a green dream by forming a joint venture with the Asian Development Bank and Kyuden International Corporation, a wholly-owned subsidiary of Japan`s Kyushu Electric Power Company, for producing power from renewable sources. The joint venture has set a target of achieving a capacity to produce 500mw - primarily from wind power plants and small hydel projects - within three years. The venture will eventually look at setting up such plants abroad in future. NTPC will initially hold 50% in the venture and the other two partners will have 25% each.

Bharti to invest USD 100 mn in Uganda over 2 years Bharti Airtel, the new owner of Zain`s Africa operations, will invest USD100 million in Uganda over two years on technology upgrades and network expansion, a senior company official said. The investment will enablethe company to double subscribers over the next two years from the current 2 million active users, Zain Uganda managing director Yesse Oenga said on Monday. ``We want to reach much of the countryside, there are so many areas where coverage is still constrained,`` said Oenga. ``We want to increase our deployment of wireless technologies and be able to deliver broadband capacity to the farthest areas in the countryside such that people can access data and voice wherever they may be.``

RCom starts hiring top brass before RIL entry The country`s second-largest telecom company by subscribers, Reliance Communications (RCom), has hired over half a dozen senior employees to cater to its wireless business. RCom has not just poached from other telcos to fortify its management structure; it has also recruited senior executives just before elder brother Mukesh Ambani`s telecom venture gets into the hiring mode. Reliance Industries` Rs 48 billion Infotel buy has created a buzz in the telecom industry, with mid- to senior-level management cadre from various telecom companies expecting a call from head hunters. In a bid to put a more efficient team in place to run its CDMA and GSM platforms, and to provide the edge to its 3G services which will be rolled out soon, RCom has picked up some key people from the industry.

BEML plans Rs 6.8 bn expansion BEML, the public sector mining & construction, rail & metro and defence equipment maker, today announced plans to invest Rs 6.8 billion in the next two to three years for expansion and diversification. The investment plan includes second phase construction at Palakkad, where it has set up a new plant for defence equipment and setting up of a new manufacturing plant for aerospace components at Bangalore aerospace Special Economic Zone. ``With an order book of Rs 52.06 billion in hand we expect to grow our sales by 18-20% during the current year to touch Rs 42 billion. We are anticipating good business in the rail & metro business and mining & construction segment with the revival of the economy,`` V RS Natarajan, chairman andmanaging director, BEML told reporters, here.

JSW Infra invites PE investments, discussions on JSW Infrastructure, the ports and logistics arm of the Rs 170 billion Sajjan Jindal-led JSW Group is looking for private equity (PE) investment. A top company official said it was in initial discussions with investors over a possible stake dilution. ``We are looking at investments, both at the project level and holding company level. We are getting good valuations now and the evaluation process by PE players is on. Equity requirement for this financial year is not very great but as the speed of expansion increases, we will need to seek new revenue models,`` B J V K Sharma, jointmanaging director and CEO of JSW Infrastructure, told Business Standard.

Tata Steel`s Rs 15 bn expansion plan gets MoFE nod Tata Steel on Monday said its Rs 150 billion expansion plan of the Jamshedpur facility has received clearance from the Environment Ministry. ``The Ministry of Environment and Forests (MoEF) hereby accords environmental clearance to the project,`` the Ministry said in a communication to the steel major that has been made public today. Tata Steel has an annual capacity to produce 6.8 million tonne at its Jamshedpur plant in the mineral-rich Jharkhand. It had earlier said it has planned to raise capacity to about 10 million tonne by March 2011 at an investment of Rs 150 billion. As part of the expansion programme, the company will ramp up its production capacity of flat steel items-mainly consumed by automobile and consumer durables industries-to 5.83 million tonne from the current 3.04 million tonne.

Mines Ministry: No plan for govt stake sale in NALCO

Ministry of Environment and Forest asks JSPL to stop work on 2,400 MW project

Rakesh Jhunjhunwala acquires 3.75 lakh shares in VIP ((Total stake at 16.4 lakh shares or 5.13%)

Uflex board approves fund raising upto Rs 250 crore

ICICI Bank gets stay on Kolkata lower court order from Kolkata HC, says Bank of Rajasthan EGM proceeded as per schedule

Cox & Kings plans to raise Rs 2000 crore of equity and debt to fund expansion plans.

RIL opens channels with MTNL to market its 3G services as franchise – FE

GMR may increase stake in airports – BS

NTC eyes Rs 750 crore from mill sell-off – BS

JSW Infra is looking for private equity investments – BS


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