Thursday, August 26, 2010

Market Outlook: Indian markets are expected to open in positive note

Market Outlook: Indian markets are expected to open in positive note on the back of optimistic momentum seen on the global counters. US markets recovered from day's low amid disappointing data; short covering in late session helped markets with first gain in five sessions. The crucial support on the downside for the Nifty is 5445 and resistance at 5500.

Global events to watch:

Þ Job Claims

Þ EIA Natural Gas Report

Global indices Update @ 8:

Dow Jones : 10060 (+19.61)

NASDAQ : 2141 (+17.78)

Nikkei 225 : 8872 (+27.13)

Hang seng : 20582 (- 52.36)

SGX CNX Nifty : 5469 (+04.00)

INR / 1 USD : 46.93

Stocks in action for the day: Adani Enterprises, Cipla, Marico, Sun Pharma, R Power, MphasiS, RIL, Aegis...

Mukesh Ambani -Restructures holding companies that control RIL -Moves 34.17% RIL holding to several new companies, mainly LLPs (limited liability partnership) -RIL promoter created 27 LLPs in April-June quarter -Restructuring may have been undertaken for tax efficiency Alert: Promoter owned 44.74% stake via 41 holding companies in Q4FY10 -Promoter owned 44.74% stake via 71 holding companies in Q1FY11

Adani signs USD 1.65 bn deal with Indonesia to source coal Adani Enterprises on Wednesday announced a USD 1.65-bn deal with the Indonesian government and its mining company PT Bukit Asam for setting up rail and port infrastructure in the island nation for sourcing coal to India. Adani Enterprises, through its Indonesian subsidiary PT Adani Global, has entered into a binding tripartite agreement for setting up a dedicated `rail and port project` with the Indonesian government and PT Bukit Asam, the Indonesian government-owned coal mining company.

Sun Pharma opposes Wockhardt deal In a move that has sparked off speculation about its motive, Mumbai-based Sun Pharmaceutical has challenged the settlement between Wockhardt and some of its creditors. At a time when Wockhardt is about to strike a deal with several offshore creditors, Sun Pharma has stepped in, claiming that it holds close to 20% of the foreign currency convertible bonds (FCCBs) that Wockhardt had issued to raise USD 110 million. The development, which has come as a nasty surprise to Wockhardt, may delay the new agreement the company was planning to enter with some of the other FCCB investors. Sun Pharma insists that it`s ``purely a financial investment by Sun Pharma Global`` -a Sun Pharma subsidiary that has been holding the bonds ``for a long time``. ``We are not interested in acquiring Wockhardt or any of its assets,`` said a Sun Pharma spokesperson . According to the person, ``several lenders, including a public sector bank, are opposing the inadequate settlement terms.

Siemens in initial talks with GVK to sell 14% in BIAL: Srcs Last week GVK Power & Infrastructure had indicated that it was interested in acquiring Siemens stake in Bangalore International Airport (BIAL) where it already holds 29% stake. Sources says that Siemens is likely to have offered 14% of its stake in BIAL for about Rs 800 crore. Siemens currently holds 40% stake in BIAL and the 14% stake that it is planning to sell is under lock-in till February 2011. Thus the transaction can be completed only post February next year. Meanwhile, GVK has confirmed its interest in the Siemens stake in BIAL and said it would pitch to up its control in the company however denying comment on specific discussions.

Marico to hike prices of `Parachute` & `Saffola` FMCG player Marico today said it is looking at increasing the prices of its flagship hair oil brand `Parachute` and edible oil brand `Saffola` to offset the rising input cost. The company also said it is currently reviewing the prices of its other brands as well. Marico chief executive officer (Consumer Products) Saugata Gupta told PTI that the company is in the process of effecting a price hike for the larger packs of Parachute and a few SKU (Stock Keeping Units)`s of Saffola, to neutralize the input cost increase that has occurred in the past few months. However, the company did not disclose by how much it is planning to increase the price.

Sesa investor contests Vedanta`s Cairn bid Vedanta Group`s bid to acquire Cairn India has been challenged in the Supreme Court by a minority shareholder of Sesa Goa, a subsidiary of Vedanta Resources. As per Vedanta`s plan, Sesa Goa is to acquire a 20% strategic stake in Cairn India for USD 3 billion through an open offer. Billionaire Anil Agarwal-owned Vedanta Group plans to acquire around 60% stake in Cairn India for over USD 9 billion, including the 20% proposed to be bought by Sesa Goa. G Harinarayan Bajaj, who claims that he in 1996 was the largest minority shareholder of Sesa Goa, asubsidiary of the London-based Vedanta Resources, on Monday, approached the apex court seeking direction to the company to refrain from acquiring 20% in Cairn India. As the acquisition of Sesa Goa by Vedanta itself is a subjudice matter before the apex court, the move by the company to acquire Cairn India is illegal, said Bajaj.

Cipla gets board nod to buy Meditab for Rs 1.33 bn Drug major Cipla on Wednesday said it would acquires domestic pharma company Meditab Specialties for Rs 1.33 billion and it also announced a special dividend of 80 paise per shares to mark its 75th anniversary. The company`s board, in a meeting held, gave its nod for the acquisition, said the company`s filing to the stock exchanges. However, following the announcement, shares of Cipla reacted sharply and declined by 2.63% to close at Rs 308.90 on BSE. Meditab has small to mid-sized formulation-making facilities at multiple locations. Entities controlled by Rslatives of the promoters an Rs major shareholders in Meditab. Through the acquisition, Cipla will be able to expand the company`s active pharma ingrsdient (API) and intermediates internationalbusiness, it said.

Ranbaxy settles patent dispute with Roche Daiichi Sankyo-owned Ranbaxy Laboratories has settled its patent dispute with Swiss major Roche for the latter`s drug valganciclovir sold under the brand Valcyte. The settlement was disclosed in a filing to a US appeals court in Washington so that it can be dismissed at the lower court. The request was granted on Tuesday, news agency Bloomberg said. The terms of the settlement are not known. The Ranbaxy spokesman declined to comment while an email sent to the Roche spokeswoman in Basel, Switzerland remained unanswered. Ranbaxy is the first generic company to challenge valganciclovir`s patent in the US. This means Ranbaxy can launch its generic version before valganciclovir`s patent expires in 2015 with a 180-days marketing exclusivity if it succeeds in its patent dispute.

Asian Hotels promoters recast stake The promoters of the erstwhile Asian Hotels have restructured their holdings through bulk deals worth Rs 5 billion in line with their decision to region-wise split the hospitalitybusiness . The promoters - Guptas, Jatias and Sarafs - exchanged stakes among themselves through several deals on Monday to hold around 55% stake each inAsian Hotels (W), Asian Hotels (N) and Asian Hotels (E) respectively. These three companies have an equity capital of Rs 114 million each, post the demerger. A total of 13.2 million shares of these companies were traded at different prices for the combined value of Rs 5,080 million on BSE. Shares of the three companies fell sharply to Rs 313.9, Rs 429 and Rs 349.5, respectively, in a weak market on Wednesday.

Brigade may raise Rs 8 bn Bangalore-headquartered publicly-held realtor Brigade Group is planning to raise around USD 200 million (Rs 8 billion) for two of its special purpose vehicles at its upcoming 40 acres project `Brigade Gateway`. ``We want to bring in private equity players into our Gateway` project and are in discussions with some of the players in the market,`` M R Jaishankar, chairman and managing director, Brigade Group, said on the sidelines of launching the `World Trade Centre` project here. He, however, declined to give a timeline for the equity infusion saying, the deals were expected to be closed soon.

Maithan Alloys to invest Rs 2.5 bn in Vizag plant Kolkata-based Maithan Alloys will be investing Rs 2.5 billion in setting up a ferro alloys plant in Vishakhapatnam. ``The project, which will come up in a special economic zone, will double our total capacity by 120,000 tons,`` managing director Subhash Agarwalla said. The company has facilities in West Bengal and Meghalaya with a combined capacity of around 120,000 tons. The company has applied for mines in Vishakhapatnam. ``We are expecting the government to grant us mines,`` Agarwalla said. Maithon would be exporting 100% of the output. ``Our products are high-end and hence we are focusing on exports. We are one of the largest producers of manganese alloys and have extended beyond commodity grades to specialized grades,`` Agarwalla said. The Vishakhapatnam plant would go on stream by June 2011.

MphasiS Q3-Consolidated net sales at Rs 1,279.07 crore versus Rs 1,220.50 crore (QoQ) ((Estimate: 1275 crore)) -Consolidated net profit at Rs 271.24 crore versus Rs 267.28 crore (QoQ) ((Estimate: 263 crore))

Board Meets -Bajaj Corp: Results -Su-Raj Diamond : Issue of shares on preferential basis -Rei Six Ten Retail : Raising of funds

Gayatri Projects: Banks sanction debt requirements to its arm which is developing 1320MW power plant ((Financial Closure))

Aegis Logistics board meet on September 1 to raise funds & Stock Split

Exim Bank of USA approves finance of USD 911 million for Rel Power’s Sasan project

Shriram group drops plans to acquire Citi Financial India – BS

Kris Gopalakrishnan tipped to be next Infosys chairman – FE


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