Wednesday, July 7, 2010

Market Outlook: Indian markets likely to see flat to negative

Market Outlook: Indian markets likely to see flat to negative opening as Asia trading mixed; Hang Seng down, Shanghai Composite up. Overall outlook still remains negatively biased with economic concerns hovers across. The crucial support on the downside for the Nifty is 5200 and resistance at 5300.

Global events to watch:

Þ MBA Purchase Applications

Þ ICSC-Goldman Store Sales

Þ 4-Week Bill Auction

Global indices Update @ 8:

Dow Jones : 9743 (+57.14)

NASDAQ : 2091 (+02.09)

Nikkei 225 : 9255 (- 82.10)

Hang seng : 19902 (- 181.6)

SGX CNX Nifty : 5287 (- 12.50)

INR / 1 USD : 46.80

Stocks in action for the day : Bharti Airtel, Bombay Dyeing, NMDC, Reliance Power, Bajaj Auto...

LIC hikes stake in Bharti Airtel to 5 pc: Life Insurance Corporation of India has hiked its stake in private telecom services provider Bharti Airtel to 5 per cent after acquiring shares worth Rs 13.17 crore. LIC has purchased 5 lakh shares, representing a 0.013 per cent stake in Bharti Airtel, for Rs 13.17 crore through an open market transaction, the telecom services provider said in a regulatory filing to the Bombay Stock Exchange.

SpiceJet down 1 pc on Istithmar stake sale: Paring early losses, low-cost carrier Spicejet on Tuesday settled 1 per cent down following media report that Dubai's investment firm Istithmar World sold its 6.9 per cent stake in the company for about Rs 116.38 crore.

Bombay Dyeing up 4 pc on biz sale report: Bombay Dyeing & Manufacturing Co, the flagship firm of the Wadia Group, on Tuesday rallied 4 per cent following reports that the leading garment manufacturer is looking to sell one of its business units located in Pune.

NMDC in talks with Nippo, Kobe for two ventures in India State-owned miner NMDC said it is in talks with Japanese companies Nippo Steel and Kobe for two separate projects in India which will see an investment of at least 100 billion. ``Nippo Steel is negotiating with us on behalf of Japanese Steel Mills for the proposed two million tonnes per annum steel plant in Karnataka. It will be JV project and likely to cost Rs 100 billion,`` NMDC chairman and managing director Rana Som told reporters here. The company also said it is talking to another Japanese steel make Kobe for a project in Andhra Pradesh. ``We are also talking to Kobe for a iron nugget project in Andhra Pradesh. It will be a JV with our recently acquired Sponge Iron India,`` Som said.

Reliance Power to start work on Chitrangi project by October Reliance Power, an Anil Dhirubhai Ambani Group company, will start work on the 4,000-MW Chitrangi power project in Madhya Pradesh by October this year.The company is already executing three ultra mega power projects, or UMPP, of 4,000 MW capacities each. The project, which will use incremental coal coming out from captive mines of RPL`s Sasan UMPP, has received all important environment and defence clearances recently and majority of the land for the project has also been transferred tothe company.

Bharti Airtel plans heavy investment in Nigeria India`s largest phone operator Bharti Airtel said on Tuesday it will invest 600 million dollars in Nigeria`s mobile market following a huge recent acquisition deal spanning 15 African nations. Calling the Nigerian market the biggest in Africa, Bharti Airtel CEO Manoj Kohli said the investment would occur over the next year. ``We have set aside 600 million dollars (475 million euros) for investment in the Nigerian market in the next 12 months,`` Kohli told reporters. ``The sum of 300 million dollars will be invested in the first instance.`` He said access in rural areas would be given priority.

Tata Power-led consortium bags 3 CBM blocks in MP Tata Power on Tuesday said a consortium led by the company has been awarded three coal bed methane (CBM) blocks for exploration in Satpura, Madhya Pradesh, which could boost gas supply for the Mumbai-based private utility`s power generation plans. Seven CBM blocks were awarded by the government to various companies, which will enable them to drill for coal-seam gas trapped in coal blocks that are unviable for mining. Australia`s Arrow Energy is part of Tata Power`s consortium that will drill more than 15 core holes and two pilot wells within two years to start production of methane gas.

Bajaj may not form JV with Renault, Nissan Bajaj Auto, the country`s second-largest motorcycle maker, has said its low-cost car project with Renault and Nissan is on track, but may not form a joint venture (JV) to manufacture and market the car. In 2008, the companies had planned a tripartite joint venture entity that would build and sell a USD 3,000 (about Rs 1.4 lakh) competitor to Tata Motors` Nano, the world`s cheapest car. Bajaj was to have a 50% stake, with Renault and Nissan having 25% each. ``There is no need for a manufacturing or a marketing JV, because our responsibilities are distinct,`` Rajiv Bajaj,managing director of Bajaj Auto, said in an interview yesterday in Pune. ``We will just be an original equipment maker.``

DCM Shriram plans to invest Rs 1 bn in hybrid seed biz DCM Shriram Consolidated (DSCL) is looking at investing up to Rs 1 billion in its hybrid seed business over the next 4-5 years to strengthen research and seed processing infrastructure.The company , with interests in sugar and fertilizer, among other areas, entered into the hybrid seed business by acquiring a majority stake in Bioseed Genetics International in 2002. Subsequently, it took full control ofthe company in 2008 and changed t he name to Shriram Bioseed Genetics India. ``We have invested Rs 500 million in the last five years and plan to invest Rs 800-1,000 million in the next 4-5 years to further strengthen our research and seed processing infrastructure,`` the Shriram Bioseed Research Director, Paresh Verma, told.

Hester plans to set up EoU in Nepal Animal vaccine manufacturer, Hester Biosciences on Tuesday said it plans to set up a 100% Export Oriented Unit (EoU) in Nepal with aninvestment of close to Rs 180 million, a top company official said. ``We are planning to set up a 100% EOU in Nepal to manufacture vaccines for large animals like sheep and cattle, from where we would export to European market and other parts of the world,`` CEO of Hester Biosciences, Rajiv Gandhi, told reporters o n the sidelines of CII organised seminar on Investment Opportunities in Nepal here. ``This greenfield project is proposed to come up with an estimated investment of Rs 170-180 million, for which we are currently exploring the possibilities,`` Gandhi said. Presently, the company is manufacturing 39 types of animal vaccines for the poultry sector and closed with a turnover of Rs 375 million in the year ending March.


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