Wednesday, September 8, 2010

Market Outlook: Indian markets are expected to open in a negative terrain

Market Outlook: Indian markets are expected to open in a negative terrain and trade in the range of 5550 – 5595. Overall markets we could see profit booking in the upper regions with support on the downside for the Nifty is 5550 and resistance at 5620.

Global events to watch:

Þ Bill Auction

Þ Bank Reserve Settlement

Þ Quarterly Services Survey

Global indices Update @ 8:

Dow Jones : 10340 (- 107.2)

NASDAQ : 2208 (- 24.86)

Nikkei 225 : 9279 (- 181.6)

Hang seng : 21107 (- 294.7)

SGX CNX Nifty : 5567 (- 18.00)

INR / 1 USD : 46.71

Stocks in action for the day: BHEL, SCI, Hotel Leela, HDFC, Sun Pharma, L&T, BoB, Maruti Suzuki...

Sun Pharma -Supreme court of Israel rules in favor of Sun Pharma -Court lifts temporary order that prohibited the closing of the Offer prior to its ruling -Sun Pharma will make offer at USD 7.75/share -Sun Pharma will not have make special tender offer

Gammon Infra -Financial closure of Patna Muzaffarpur highway project -Total estimated cost of the project is Rs 940 crore

L&T Infra Fin to disburse up to Rs 55 bn in FY 11 Engineering conglomerate L&T`s subsidiary, L&T Infrastructure Finance, today said it is targeting a disbursement of Rs 50-55 billion in the current fiscal. ``We plan to disburse around Rs 50-55 billion in the current fiscal,`` L&T Infrastructure Finance`s Chief Executive, Suneet Maheshwari, told reporters on the sidelines of a banking conference here. Maheshwari said L&T`s financial services arm is keen to enter into the banking sector and the company will submit its view to the Central Bank by end-this month. ``We will submit our view to the Reserve Bank by this month-end,`` he said. The Reserve Bank had early August put up a discussion paper seeking suggestions by September 30 for allowing local industrial and business houses to enter banking.

BoB: Scope to raise up to Rs 40 bn this fiscalPublic sector lender, Bank of Baroda, said it has the scope to raise upto Rs 40 billion capitals in the current fiscal. ``We have the scope to raise between Rs 30 billion-Rs 40 billion in the current fiscal. The funds would be raised as Tier-I and Tier-II capital,`` BoB`s Chairman and Managing Director, M D Mallya, told reporters on the sidelines of a banking conference here. The lender said that it is targeting a 20-25% deposit growth despite not doing well on this front in April-August and would maintain a 20% credit growth in FY 11. ``We did not achieve a good deposit growth during April-August in the current fiscal. But we expect to achieve a deposit growth of around 20-25% in FY 11,`` Mallya said, adding the bank has seen deposits growing by six to 7% in the current financial year so far.

Tata Steel puts S African unit on the block Tata Steel, India`s largest producer of the alloy is looking for a buyer for its South African unit after agreeing to sell its Teesside operations in the UK. ``There have been some talks,`` Tata Steel`s managing director HM Nerurkar said on Tuesday in New Delhi, without giving details. ``Some people are interested.`` Tata Steel KZN Pte, set up in Richards Bay, South Africa in 2006, recorded a profit of Rs 430 million (USD 9.2 million) in the year ended March 31 against a loss of Rs 1.8 billion the previous year. Sales rose to `5.22 billion - about 0.5% of Tata Steel`s global revenue - from Rs 2.31 billion in the previous fiscal. Sahaviriya Steel Industries, Thailand`s biggest maker of hot-rolled steel, has plans to buy the Teesside Cast Products unit for about USD 500 million, Tata Steel had stated on August 27.

Suzuki, VW plan joint products, Maruti to gain Japanese car major Suzuki is planning to develop joint products with Volkswagen for the global markets, which could create new opportunities for Maruti Suzuki. Suzuki chief Osamu Suzuki, who was in India, said on Tuesday that his company was looking at ways to synergise operations with the German auto behemoth after it bought a 19.9% stake in Suzuki earlier this year. ``The vehicles would be sold in the global markets in case the joint product development happens,`` Suzuki told TOI when asked how the two companies planned to strike synergies to drive benefits. Interestingly, Suzuki`s statement comes months after Christian Klingler, a Volkswagen board member, had told TOI that the European auto major could take the help of Maruti in development of a new car that would be placed below the company`s Polo compact.

Maruti to invest Rs 19.25 bn in third plant at Manesar Maruti Suzuki India (MSIL), the country`s largest carmaker, plans to invest around Rs 19.25 billion for setting up a third plant at its second facility in Manesar. This will be Maruti`s largest investment in a single plant in the country. Osama Suzuki, director, MSIL, and chief executive officer of Suzuki Motor Corporation, said, ``We had not estimated the pace at which demand for cars would grow in India. We are investing 35 billion yen for constructing a new plant at Manesar to meet the increase in demand.`` With automobile sales reporting record growth in the first half of the year, Maruti Suzuki has been facing supply constraints in delivering some models. The need for capacity, greater than anticipated earlier, has come about because of the unexpected surge in demand for the multi-seater Eeco and also for the Swift.

Neyveli Lignite eyes part in Cheyyur UMPP State-owned power producer Neyveli Lignite Corporation (NLC) is hoping to take part in the ultra mega power project (UMPP) that is to come up at Cheyyur in Tamil Nadu. The company said it was actively pursuing with Coal India a proposal to acquire and develop coal assets abroad, apart from plans to develop coal mines in India in public-private partnership (PPP) mode. The corporation aims to take its total mining capacity to 64.82 mtpa and that in power generation capacity to 12,790 Mw, which would include solar and wind power, marking its foray into renewable energy. The current power generation capacity of NLC is around 2,600 Mw, and the proposed expansion is estimated to cost over Rs 500 billion. A R Ansari, chairman and managing director, NLC, said, ``We are exploring the feasibility of taking part in the UMPP at Cheyyur, as and when it is notified by the government.``

Ex-Dates -Bajaj Auto : Ex-Bonus @ 1:1 -Britannia Inds : Ex-Split : 5:1 -Dabur India : Ex-Bonus 1:1 -Kalpataru Power : Ex-Split 5:1 TVS Motor : Ex-Bonus 1:1

Ex-Dividends -BPCL : Ex-Dividend @ Rs 14/share -Gitanjali Gems : Ex-Dividend @ Rs 2/share -Gujarat State Fert : Ex-Dividend @ Rs 4.5/share -HEG: Ex-Dividend @ Rs 10/share -Indian Oil Corp : Ex-Dividend @ Rs 13/share -NTPC: Ex-Dividend @ Rs 0.8/share

HDFC extends dual rate home loan scheme until September 30

SpiceJet to start international operations on October 7

Swiss Re to sell 26% stake in TTK Healthcare TPA

SEL Manufacturing: Opens GDR issue up to USD 35 million

Govt hikes petrol, diesel prices marginally by 9-12 paise due to hike in commission for dealers

Ohio bans outsourcing of IT projects by govt departments – ET

Mircofinance company may lose priority tag, access to cheap funds may be snapped in 2 years –

Hotel Leela Promoters puts in place a plan to protect empire, sons agree not to sell group shares to outsiders without offering them to each other – ET (ITC holds 10.2% in Hotel Leela)

SCI plans to buy stake in shipyard, diversify biz – ET

BHEL plans NBFC for Power projects – FE


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