Tuesday, June 29, 2010

Market Outlook: Expect Indian markets to open flat

Market Outlook: Expect Indian markets to open flat and see some sort of profit booking after yesterday’s strong day of trade. Nifty has been consolidating for the last two to three days & we have not seen any kind of deep correction, which means that probably we might comfortably see 5,420-5,450 levels. Asian markets trading firm; Nikkei, Straits Times up.

Global indices Update @ 8:

Dow Jones : 10138 (- 05.29)

NASDAQ : 2220 (- 02.83)

Nikkei 225 : 9749 (+55.82)

Hang seng : 20670 (- 56.17)

SGX CNX Nifty : 5341 (+03.00)

INR / 1 USD : 46.16

Stocks in action for the day : Alembic, Godrej Consumer, SBI, IDFC, Tata Motors, IL&FS Transport

ULIPs structure: -Lock-in period increased to five years from 3 years -This includes top-up premiums -All ULIP premiums shall have uniform premiums -Additional premiums treated as single premium -Charges on ULIPS to be evenly distributed during lock-in period

Godrej Consumer: Sources -Godrej Consumer to raise USD 87 million with option to upsize to USD 130 million Godrej Consumer QIP issue floor price at Rs 345/sh

Tata Motors -To raise USD 1 billion via equity, equity-linked instruments -To raise funds via issue of shares, bonds, warrants -To use funds on expansion, reduce debt -Ups borrowing limit to Rs 30,000 crore versus Rs 20,000 crore

IDFC QIP: Sources -IDFC launches QIP of approximately 13.7 crore shares -IDFC QIP size of USD 500 million with upsize of USD 75 million -IDFC QIP priced at Rs 168.25/share -Pre-issue dilution of around 10.54% Proceeds to be used to enhance Tier I capital, lending -Credit Suisse, IDFC Cap, Morgan Stanley & CLSA bankers

Base rate -SBI, PNB to announce base rate today: Sources -SBI may announce base rate at 8%,

Tata Power to acquire 20.95 MW wind assets Tata Power, India`s leading private sector power producer, Monday said it is acquiring 20.95 MW operating wind assets in Maharashtra from Niskalp Energy. The company will also install additional capacity of 150-200 MW in Maharashtra and Tamil Nadu this year, a company press release said. Tata Power has 200 MW installed capacity in Maharashtra, Gujarat and Karnataka. Tata Power Managing Director Prasad Menon said the company so far generated 20% of power form `clean sources`, which will increase to 25% in three-four years.

Essar buys UK`s Servo steel, deal seen at Rs 4.5 bn The Ruias-controlled Essar Steel on Monday acquired the UK-based steel processor Servo steel for an undisclosed amount, making it their first buyout in the country where the billionaire brothers listed their energy firm three months ago. The acquisition cost for Servo steel, which has an annual processing capacity of 5,00,000 tonne, could be around USD 100 million (Rs 4.5 billion), according to steel analysts. Servo steel is based in Dudley in the West Midlands. ``Essar group seems to be very keen on consolidating its position in the UK,`` said Ajay Parmar, head, institutional equities, Emkay Global Financial Services. ``The demand is very low in that part of the world, however that`s for time being.`` The group`s energy-arm, Essar Energy, raised USD 1.9 billion by selling shares in the London market in April.

Reliance Infrastructure to raise Rs 26 bn for Worli sea link project Anil Ambani`s Reliance Infrastructure will borrow around Rs 26 billion for the Bandra-Worli-Haji Ali Sea Link project in Mumbai, part of which will be constructed by a consortium led by the company. The total cost of the project which includes both phases of the sea link - the first phase between Bandra and Worli is already operational and will be bought over by Reliance Infrastructure - is about Rs 51 billion. Reliance Infrastructure will have to pay the government this amount. ``Of this around Rs 11 billion would be the equity component while around Rs 13.92 billion will come through viability gap funding. The balance would be debt,`` said a person familiar with the issue.

Cummins, partners to invest Rs 13.9 bn over five years Global engines major Cummins said it will invest USD 300 million (about Rs 13.9 billion) with local partners in India over the next five years to set up four facilities, including an engine unit. The company expects its revenue from India operations to touch USD 2 billion (about Rs 92 billion) in 2010 on account of good growth across different segments. ``We will set up four facilities in Phaltan (Maharashtra) and the construction is underway. In the next five years, we will invest USD 300 million for development of these units,`` Cummins managing director (India area business organization) Anant Talaulicar said on the sidelines of a SIAM summit here.

NTPC rejects pooling of gas prices for power, fertilizer sector NTPC, the country`s largest power generator that currently operates over 4,000 mega watt (Mw) of gas-based project, has rejected a proposal for pooling of gas prices for the power sector. The state-run power generator has warned that such pricing will make the APM (administered price mechanism) gas dearer by at least 20% and the power sector would have a serious adverse impact in terms of increase in the cost of generation. APM gas, produced by state-run ONGC and Oil India from fields allotted to them under a nomination basis, constitutes about 30% of 133 million standard cubic meters per day produced in the country.

Philips to increase borrowing limit to Rs 10 billion Philips India is planning to raise its borrowing limit from Rs 4 billion to Rs 10 billion.Murali Sivaraman, managing director and CEO, Philips India, said, ``The resolution will be placed before shareholders for approval at the company`s annual general meeting tomorrow. Currently, we have a capacity of Rs 4 billion which we intend to increase to Rs 10 billion.`` According to Sivaraman, the company intends to increase its borrowing capacity in order to be able to fund acquisitions, as and when opportunities arise. Also, a higher borrowing capacity would enable the company to expand manufacturing capacities and fund other expansion plans, Sivaraman said.

TVS aims to double scooter sales revenue in `10-11 fiscal TVS Motors is expecting to double its revenue from scooter sales in the current fiscal on the back of its newly launched vehicle `Wego` and robust market growth. ``Our sales from scooter segment will reach Rs 15-16 billion in the current fiscal because of our new offering Wego in the market and good growth happening in the country`s scooter market,`` the company General Manager (Marketing), S. Srinivas, told reporters here on Monday. In 2009-2010, the company earned Rs 8 billion from different variants including Teenz, Pep and Streak.

Plethico Pharma ties up with Walmart Plethico Pharmaceuticals has joined hands with US retailing giant Walmart for supplying its nutritional products to US consumers. The company, through its wholly owned subsidiary Natrol Inc, has entered into a supply contract with Walmart, under which the Indian firm would supply 10 new nutraceuticals brands to the retailer, the company said in a filing to the Bombay Stock Exchange on Monday. ``As a key Natrol retail partner, Walmart recognizes the importance and has expanded its in-store offerings with a new grouping of ten Natrol brand nutraceuticals that address the health needs of adult women.`` the filing said.

PowerGrid to invest Rs 580 bn in transmission network PowerGrid Corp would invest Rs 580 billion for setting up transmission network to facilitate evacuation of electricity from power surplus states to deficit states. The company would set up nine high-capacity transmission corridors, which would transfer power from the hydropower projects in the North-East and thermal power projects in the northern region, to power deficit states. ``We would construct nine high-capacity transmission corridors in five years from now,`` the PowerGrid CMD, S.K. Chaturvedi, told PTI. ``It requires an investment of Rs 580 billion and would be funded through internal accruals, World Bank and Asian Development Bank loans and partly from the proceeds of the FPO,`` Chaturvedi said. others may follow up -ICICI Bank to announce base rate tomorrow

Ex-Dates: -Edelweiss : Ex-Dividend Rs 8/share -Fem Care : Ex-Amalgamation with Dabur -HDFC : Ex-Dividend @ Rs 36/share -Orbit Corp : Ex-Bonus ratio of 1:1 -Tata Sponge : Ex-Dividend @ Rs 5.4/share -Piramal Healthcare : Ex-Dividend @ Rs 5.4/share -LIC Housing Finance : Ex-Dividend @ Rs 15/share -Allied Digital Servies : Re-Split in ratio of 1:10 (( consolidation From FV Rs 1/to FV Rs 10/share))

Sulzer India parent makes delisting offer, floor price of Rs 855/share

Essar Steel acquires UK-based steel processor company Servosteel

Samruddhi Cement to list on exchanges today ((Listing expected at Rs 520/share ))

HCL Tech: Array Networks appoints HCL as the System Integrator across India and SAARC countries

IL&FS Transport (ITNL) bags NHAI order worth Rs 2519 crore

Board Meet Today: Alembic on restructuring of Business


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