Monday, July 26, 2010

Market Outlook: Indian markets are expected to open in optimistic territory o

Market Outlook: Indian markets are expected to open in optimistic territory on the back positive sentiments seen on the global counters. We advice one has to wait for the outcome of the Reserve Bank of India’s (RBI) interest-rate policy review on Tuesday. We expect market to shuffle a lot ahead of the expiry of the June series derivatives contracts, adding to the volatility. We see markets in upmove momentum after remaining stagnates for two week, next logical target is 5490-5500. Overall the trend is still intact up as long as 5400 holds The crucial support for the Nifty is 5350 and strong resistance at 5493-5511-5558.

Results today: Sterlite, NTPC, Bharat Forge, Blue Star, Century Enka, Century Textile, Dabur India, Dena Bank, Essar Oil, Gateway Distriparks, Glaxosmithkl Pharma, Mahindra Holiday, Maharashtra Seamless, Navneet Publication, Peninsula Land, Taj GVK Hotels, Tata Elxsi, Tech Mahindra, Union Bank, United Phosphorous, Wire & Wireless

Global events to watch:

Þ New Home Sales

Global indices Update @ 8:

Dow Jones : 10424 (+102.3)

NASDAQ : 2269 (+23.58)

Nikkei 225 : 9546 (+115.0)

Hang seng : 20922 (+107.4)

SGX CNX Nifty : 5456 (+12.50)

INR / 1 USD : 47.00

Stocks in action for the day: DLF, Maruti, Bharti, Brigade, EIL, Hero Honda Strides, SAIL, GMR, HPCL...

DLF to buy out Dubai World in JV for Rs 2 bn DLF is buying out the property arm of Dubai World, its foreign partner in the 50:50 joint ventures to make Bidadi Knowledge City. A wholly-owned arm of DLF will buy out the stake owned by Limitless Group, which is a part of Dubai World, for around Rs 2 billion, a person with direct knowledge of the transaction said. Dubai World is the investment vehicle of the Dubai government. When contacted, DLF spokesman declined to comment on the development. DLF will buy the 50% held by two Limitless Group entities for a price less than the net worthof the shares, as per the deal. The discount would amount to Rs 100 million for the entire block of shares held by Limitless.

Maruti Suzuki Q1 PAT down 20.37% at Rs 465 cr: Maruti Suzuki India has announced its first quarter results. The company's Q1 net profit was down 20.37% at Rs 465 crore versus Rs 584 crore. Its net sales were up 26.98% at Rs 8051 crore versus Rs 6340 crore. The company's trailing 12-month (TTM) EPS was at Rs 86.45 per share. (Mar, 2010). The stock's price-to-earnings (P/E) ratio was 15.71. The latest book value of the company is Rs 409.90 per share. At current value, the price-to-book value of the company was 3.31. The dividend yield of the company was 0.26%.

Strides gets nod to hike borrowing limit to Rs 25 bn Drug maker Strides Arcolab said its shareholders have approved increasing borrowing limit of the company by Rs 10 billion to Rs 25 billion. The shareholders, in an extra general meeting held yesterday, have approved increasing the borrowing powers ofthe company from Rs 15 billion to Rs 25 billion, Strides Arcolab said in a filing to the Bombay Stock Exchange (BSE). The shareholders also approved to raise long-term funds for the company through various domestic and international routes. The shareholders, ``through a special resolution, have approved to raise long-term funds through the issue of convertible bonds or such other equity linked instruments, or a mix of them, as may be finalized by the board ofthe company, in the course of domestic or international offerings.``

GMR looking for buyers for InterGen stake India`s GMR Infrastructure is looking for buyers for its 50% stake in power generation firm InterGen NV, the Wall Street Journal reported on Sunday, citing people familiar with the matter. Those sources told the Journal that GMR believes the value of its stake is in the USD 1 billion range, and thatthe company may not sell if bidders don`t meet that range. The sales process is in its early stages, according to the Journal. InterGen is based in the US and owns 12 power plants in the UK, the Netherlands, Mexico, the Philippines and Australia. Its plants have a generation capacity of more than 8,000 megawatts. GMR bought its stake in InterGen from an AIG unit for USD 1.1 billion in 2008. GMR and InterGen could not be immediately reached for comment.

HPCL to make own ethanol for petro-blending At a time when the ethanol-petrol blending programme has met with only partial success, government-controlled Hindustan Petroleum Corporation (HPCL) will become the first petroleum company in the country to produce its own ethanol. Last year, HPCL had taken over two sugar mills in Bihar, at Sugauli and Lauriya in East and West Champaran districts, on a 60-year lease, extendable by another 30 years.The company had paid around Rs 950 million for these. ``We will begin ethanol production from these sugar mills by year-end. While we would be using ethanol to blend with petrol at our own fuel depots, we would also be selling the surplus to other industry players,`` a senior executive from HPCL toldBusiness Standard.

Govt sets EIL FPO price band at Rs 270-290 The government today set Rs 270-290 as the price band for the follow-on public offer (FPO) of state-run Engineers India (EIL). A group of ministers headed by Finance Minister Pranab Mukherjee set the price band at a discount to Friday`s closing of Rs 337.65for the sale of the government`s 10% shareholding in the engineering consultancy firm. The government would raise Rs 9,096.3 million at the lower end of the price band and Rs 9,770.1 million at the upper end, sources said. EIL`s public offer of 33.69 million equity shares will open on July 27 and close on July 29 for qualified institutional buyers and on July 30for the rest (retail and HNIs).

SAIL`s Rs 160 bn FPO may not come this year The State owned SAIL`s 20% share sale plan, which aims to generate up to Rs 160 billion, may not happen this year due to certain regulatory hurdles. ``SAIL share sale may not come in (calendar year) 2010 as it (SAIL) is still not SEBI compliantfor the follow-on public offer (FPO). It has to appoint independent directors on its board, a proposal of which is lying with the Appointments Committeeof the Cabinet (ACC). But the FPO may come during the January-March period,`` a top government official said. Earlier this month, Steel Secretary Atul Chaturvedi had expressed the hope that the FPO could hit the market by October-November this year.

Triveni in advanced stage of talks to bag Rs 5 bn order With an order book already worth Rs 9.27 billion, Triveni Engineering and Industries (TEIL) said it is in advanced stages of finalising contracts worth Rs 5 billion in the engineeringbusiness . ``Our current order book is Rs 9.27 billion. We are currently at advanced stages of negotiations to secure additional orders worth Rs 3.5 billion in water and Rs 1.5 billion in the turbine businesses,`` TEIL Executive Director, Nikhil Sawhney said. TEIL, which is also into the sugarbusiness , hopes to execute the existing order book in the next 12-15 months and secure ``a very good order intake`` in the current quarter. Sawhney said TEIL was also expecting to bag some overseas orders and hoped that forex revenue might go up to a ``very good extent`` in the coming days.

Uflex`s Rs 2.5 bn rights issue likely by September Flexible packaging firm Uflex plans to raise around Rs 2.5 billion through a rights issue by September to support its expansion plans and repay loans, a top official of the company said. ``We plan to raise around Rs 2.5 billion through a rights issue by September, 2010. A part of the fund will be used to repay loans while the remaining will be used for business expansion,`` Uflex`s Group President Finance & Accounts, R K Jain said here. The Board of the company has already given its nod for the rights issue, he said. Backed by a good growth in the domestic packaging industry, Uflex is eyeing to achieve a market share of 35-40% over the next two years, Jain said.

Hero Honda – Sources Honda likely to divest about 6% stake in Hero Honda CNBC-TV18 Alert: Honda holds 26% in Hero Honda

JP Power Ventures & Jaiprakash Associates: reconstituted "Committee of Directors" to look into and suggest options of restructuring

Engineers India (EIL) price band Rs 270-290/sh, retail to get 5% disc, issue opens on July 27, closes on July 29 (CMP Rs 337)

Brigade Enterprises : Board approves acquisition of 99% shareholding of WTC Trades & Projects Pvt. Ltd

Jyoti- Board meet on 26 July to issue equity shares to promoter

Ramco System : Board to consider Rights Issue on August 2

NRB Bearings : Board Meet on 28 July for Bonus

Ceat : Board meet on 27 July for Prefrential Allotment

Tata Motors plans USD 500 million sponsored issue of its DVR – ET

RBI to issue discussion paper on new banking license this week, new banks may have to reach out to rural India

Vodafone may sell its 4.39% indirect holding in Bharti Airtel, stake valued at Rs 5300 crore at CMP – BS

Oberoris may up stake in EIH to counter hostile bid – BS

Jindal Saw in talks to buy 50% of Australian mine co for USD 120 milion – DNA

JP Associates Q1 ((Details in Pankaj’s slug)) Net Sales At Rs 3,174.2 Cr Vs Rs 2,067.1 Cr (YoY) (( Est. Rs.2700cr)) -Net Profit At Rs 516 Cr Vs Rs 491.2 Cr (YoY) (( Est.603cr)) -Adjusted PAT at Rs.105.8cr vs Rs.184cr (( Down 42% YOY)

Indian Bank Q1 Net Profit At Rs 368 Cr Vs Rs 332 Cr (YoY) -NII At Rs 927 Cr Vs Rs 738 Cr(YOY)

Godrej Consumer Q1 -Cons Net Profit At Rs 116 Cr Vs Rs 69.7 Cr ((YOY) -Cons Net sales At Rs 643 Cr Vs Rs 439 Cr((YOY))

Eicher Motor Q2: -Cons Net Profit At Rs 55.2 Cr Vs Rs 19.8 Cr ((YoY)) -Cons Net Sales At Rs 1,033 Cr Vs Rs 617 Cr((YoY))

Balrampur Chini Q3 -Net Profit At Rs 11.1 Cr Vs Rs 66.3 Cr -Net Sales At Rs 539 Cr Vs Rs 537 Cr

IOC Q1 -Net Loss At Rs 3,388 Cr Vs Profit At Rs 3,683 Cr ((YoY)) -Net Sales At Rs 71,275 Cr :: Vs Rs 57,945 Cr ((YoY))

Hindustan Zinc Q1 -Net profit At Rs 891 Cr Vs Rs 719 Cr ((YoY)) -Net Sales At Rs 2,132 Cr Vs Rs 1,707 Cr((YoY))

JP Power Ventures Q1 -Net Profit At Rs 38.4 Cr Vs Rs 36.5 Cr -Net Sales At Rs 190 Cr Vs Rs 78.5 Cr

United Bank Q1 -Net Profit At Rs 108 Cr Vs Rs 70.3 Cr (YoY) -NII At Rs 508 Cr :: Vs Rs 264 Cr(YoY)

HPCL Q1 -Net Sales At Rs 29,219.87 Cr Vs Rs 24,197.58 Cr (YoY) (( Est.29950cr)) -Net Loss At Rs 1,884.29 Cr Vs Net Profit of Rs 649.12 Cr (YoY) (( Loss oF Rs.1970cr ))

Jet Airways Q1 -Net Profit At Rs 3.5 Cr Vs Loss Of Rs 225 Cr (YoY) (( Est.Loss of Rs.17cr)) -Income From Ops At Rs 2,747 Cr Vs Rs 2,085 Cr (( Est.Rs.3155cr))

SRF Q1 -Net Profit At Rs 54.7 Cr Vs Rs 92.6 Cr (YoY) -Net Sales At Rs 617 Cr Vs Rs 495 Cr (YoY)

Geometric Q1 (QoQ) -Cons Net Profit At Rs 10.6 Cr Vs Rs 8.4 Cr -Cons Net Sales At Rs 135 Cr Vs Rs 129 Cr

Motilal Oswal Q1 -Cons Net Profit At Rs 37.6 Cr Vs Rs 34 Cr -Cons Revenue At Rs 142 Cr Vs Rs 143 Cr

Areva T&D Q2 -Net Profit At Rs 32.2 Cr Vs Rs 50.1 Cr (YoY) -Net Sales At Rs 885 Cr Vs Rs 802 Cr (YoY)

OnMobile Global Q1 -Consolidated Net Sales At Rs 123.76 Cr Vs Rs 107.24 Cr (YoY) -Consolidated Net Profit At Rs 18.58 Cr Vs Rs 8.64 Cr (YoY)

Brigade Ent Q1 Net Sales At Rs 85 Cr Vs Rs 57.8 Cr (YoY) -Net Profit At Rs 13.9 Cr Vs Rs 3.9 Cr (YoY)

Indiabulls Finance -PAT at Rs.131cr vs Rs.71.9cr ((YoY)) -Sales at Rs.461.7cr vs Rs.394.7cr ((YoY))

Indiabulls Sec Q1 -Sales at Rs.85.7cr vs Rs.92cr ((YoY)) -PAT at Rs.13.2cr vs Rs.24.1cr ((YoY))

Bilcare Q1 -Sales at Rs.145cr vs Rs.121cr ((YoY)) -PAT at Rs.22.4cr vs Rs.17.2cr ((YoY))

Thanks & Regards,



Kamal said...

An truly Indian multinational, Uflex, that has created buzz world over in packaging industry. It is good idea to expand globally.

Varun said...

After conquering the Indian Market, Ulfex is now planning to expand its global footprints (Mexico, Egypt & Dubai) to capture a sizable share. UFlex's list of clients are the best in the world.

coldcavekewl said...

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