Wednesday, July 28, 2010

Market Outlook: Indian markets are expected to open flat on the back mixed sentiments

Market Outlook: Indian markets are expected to open flat on the back mixed sentiments seen on the global counters. The crucial support for the Nifty is 5380 and strong resistance at 5550. Markets have continued to gain momentum due to robust FII inflows, healthy first quarter results and stable global markets, while we remain cautious on global economic concerns and any profit-booking attempt in domestic front may result in downsides.

Results Today: DLF, JSPL, Sun Pharma, HCL Tech, M&M, Tata Comm, Alfa Laval, Chennai Petroleum, Corporation Bank, EID Parry, Essel Propack, Havells India, Kirloskar Oil, Lakshmi Machine, Lupin, Marico, Merck, MMTC, MRF, Neyveli Lignite, Patni Computer, Sobha Developer, Sun TV Network, Trent, Voltas

Global events to watch:

Þ Bank Reserve Settlement

Þ MBA Purchase Applications

Þ Durable Goods Orders

Global indices Update @ 8:

Dow Jones : 10537 (+12.26)

NASDAQ : 2288 (- 08.18)

Nikkei 225 : 9675 (+178.6)

Hang seng : 21018 (+44.65)

SGX CNX Nifty : 5441 (+04.50)

INR / 1 USD : 46.76

Stocks in action for the day: RIL, DB Realty, JSW Steel, PowerGrid, Spicejet, Cummins, Redington, Unitech, ABB

Reliance Industries: Strong YoY growth may taper off after base effect play: The financial performance of Reliance Industries was more or less in line with Street expectations as the company reported another billion dollar show in profits during a quarter. RIL’s net profit for the quarter to June was Rs 4,851 crore on net sales of Rs 58,228 crore. The scrip, which ended flat at Rs 1,053 on Tuesday before the results were announced, still trades above a price-to-earnings multiple (P/E) of 20, only marginally lower than the P/E of BSE Sensex. However, the segmental revenues more than doubled, lifting the earnings before interest and tax (EBIT) by 57%. Similarly, a 150% spurt in revenues from the oil & gas segment led to a 91% jump in its EBIT to Rs 1,921 crore.

SKS Microfinance gets 36 anchor investors: The first micro-finance IPO that hit the market, SKS Microfinance has got 36 anchor investors including some of the big names like Soros, Credit Agricole, Reliance AMC, Birla Sun Life AMC and ICICI Pru Life. Out of a total initial public offer sixe of 16 million shares, 30 lakh shares have been allocated to 36 anchor investors at a price of Rs 985 a share—this is the upper end of the price band which has been fixed at Rs 850-985 a share. The anchor investor demand was seen at USD 750 million, which is 12 times the anchor book size of USD 63 million. Both, foreign and domestic investors participated in the IPO. Among the foreign anchor investors, Small Cap World Fund and BNP Paribas each received 9.23% of the shares. Among domestic investors Reliance AMC received 8.85%, while Birla Sun Life got 7.66% of the shares.

Paper on new bank licences by Aug: Subbarao: The Reserve Bank on Tuesday said it will come up with a discussion paper on granting banking licence to private sector players and NBFCs by the first week of August. Under the current guidelines, a new private sector bank should have a minimum networth of Rs 3 billion and no single entity or group of related entities can hold more than 10% in a bank. Business houses including the Anil Ambani Group, the AV Birla Group, Bajaj Auto and Religare among others have evinced interest in acquiring banking licence. NBFCs like Shriram Group and Srei are also keen on entering the banking space.

DB Realty gets right to develop 8m sq ft property in Bandra: DB Realty has bagged the Bandra government colony land redevelopment project. The company will be engaged in redeveloping 57 acres in the colony, located in Bandra East, a suburb in Mumbai, over a span of five years.

Japan's JFE to buy $1 bn stake in JSW Steel: JFE, the world’s fifth-biggest steelmaker, will buy just under 15% stake in the Sajjan Jindal-controlled JSW Steel for over $1 billion in a transaction that would shift lucrative auto clients of the Japanese firm to the Indian company’s fold.

PowerGrid gets Rs 2,200 cr relief from govt: The government has forfeited a service tax claim of over Rs 2,200 crore on Power Grid Corporation, a move that could facilitate smooth sailing for the proposed stake sale in the country’s largest transmission utility.

SpiceJet signs $2.7 bn deal with Boeing, Q1 net doubles to Rs 55 cr: Fresh from the strong earnings growth for the quarter-ended June 2010 and a new management at the helm, Delhi-based low-cost airline SpiceJet said on Tuesday it has ordered 30 Boeing 737-800 aircraft to take its fleet size to 75 planes by 2018. The deal is pegged at $2.7 billion on the list prices and deliveries for these Boeing will begin from 2014 and continue till 2018.

George Soros set to buy 4% stake in BSE: Report: Billionaire financier George Soros is in late stage talks to buy a 4 percent stake in the Bombay Stock Exchange (BSE) as foreign interest in India's financial markets grows, the Financial Times reported on Wednesday.

ABB to be deleted from MSCI Index w.e.f today ABB open offer: Sources -ABB open offer over-subscribed -LIC & ICICI Pru Life tender part of their holding -LIC tendered 50% of its holding -ICICI Pru tendered 70% of its holding

Godrej Industries -To join Godrej Properties for developing Vikhroli land -Godrej Ind to get 40% profit from Vikhroli property development

Unitech -Unitech considering possible offer for UCP Alert: UCP is Unitech Corporate Park Alert: UCP is AIM-listed company Alert: UCP owns majority stake in corporate park assets -Unitech may offer 31 pence per share for UCP -Unitech may offer 25% premium over CMP for UCP Alert: Unitech holds 4.52% stake in UCP

Oil Secretary says: ONGC Videsh to submit offer for BP Assets in Vietnam

HCC receives Rs 126.225 crore contract from Hindalco

Redington to raise the FII ceiling limit and NRIs to 100% from 24%

Emami Infrastructure lists today

Cummins Inc. (Parent) raises India sales growth guidance to 49% (versus 41% a quarter earlier)

Caraco Q1 -Sales at USD 130 million versus USD 48.1 million ((YoY)) -Pre-tax income of USD 1.9 million versus pre-tax loss of USD 14.4 million

Cairn India Q1 -Consolidated Net Sales At Rs 840.60 Cr Vs Rs 204.95 Cr (YoY) -Consolidated Net Profit At Rs 281.41 Cr Vs Rs 45.44 Cr (YoY)

Everest Kanto Q1 -Cons Net Sales At Rs 138.1 Cr Vs Rs 153 Cr (YoY) -Cons Net Loss At Rs 11.5 Cr Vs Net Profit of Rs 16.8 Cr (YoY)

3i Infotech Q1 -Cons Net Sales At Rs 637 Cr -Cons Net Profit At Rs 61.2 Cr

Asian Paints Q1 -Consolidated Net Sales At Rs 1,830.22 Cr Vs Rs 1,460.23 Cr (YoY) -Consolidated Net Profit At Rs 222.19 Cr Vs Rs 176.08 Cr (YoY)

MRPL Q1 -Sales at Rs 8890cr vs Rs 7182cr (( YoY) -PAT at Rs 28cr vs Rs 420cr (( Down 93% YoY)) -GMR at USD 1.9 vs USD 7.98/bbl -Forex Losses at Rs 153cr & Inventory Losses at Rs 89cr

Jyoti Structures Q1 -Sales at Rs.564cr vs Rs.484cr ((YoY)) -PAT at Rs 26.3 cr vs Rs 22.3cr ((YoY))

BOC India Q1 -Sales at Rs 248cr vs Rs 213cr ((YoY)) -PAT aT Rs 24.3cr vs Rs 10.6cr ((YoY))

HEG Q1 -Sales at Rs 222 cr vs Rs 232 cr ((YoY)) -PAT at Rs 26.55 cr vs Rs 41 cr ((YoY))

HT Media Q1 -Sales at Rs 404 cr vs Rs 329 cr ((YoY)) -PAT at Rs 41.3 cr vs Rs 28.7 cr ((YoY))

JK Lakshmi Cement Q1 -Sales at Rs 364 cr vs Rs 384 cr ((YoY)) -Operating profit at Rs 56 cr vs Rs 119 cr ((YoY))

Swaraj Mazda Q1 -Sales at Rs 193 cr vs Rs 157 cr ((YoY)) -PAT at Rs 5.1 cr vs Rs 2.1 cr ((YoY))

Blue Dart Q1 -Sales at Rs 277 cr vs Rs 207 cr ((YoY)) -PAT at Rs 25 cr vs Rs 11.4 cr ((YoY))



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