Thursday, September 9, 2010

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

Market Outlook: Indian markets are expected to open in positive ground and trade in the range of 5570 – 5630. The crucial support on the downside for the Nifty is 5570 and resistance at 5675.

Global events to watch:

Þ Jobless Claims

Þ International Trade Data

Global indices Update @ 8:

Dow Jones : 10387 (+46.32)

NASDAQ : 2228 (+19.98)

Nikkei 225 : 9095 (+70.92)

Hang seng : 21190 (+101.2)

SGX CNX Nifty : 5615 (+18.00)

INR / 1 USD : 46.70

Stocks in action for the day: Emami, NMDC, Royal Orchid, HUL, IRB Infra, NMDC, Tata Power, REC...

Ratan Tata ((Tata Power AGM))-Tata Power looking at several avenues for acquisitions -Tata Power also looking at acquiring stake in InterGen.

NHAI - Sources say -NHAI to open financial bids for approximately 30-50 projects -Bids for construction of approximately 3000- 5000 kms road -Projects worth between Rs 30,000-50,000 crore -Financial bids to be opened by October 2010 -Likely Bidders: IRB, HCC, Reliance Infrastructure, IL&FS Transportations, IVRCL, L&T

NMDC sets sights on African coal assets National Mineral Development Corp, or NMDC, India`s largest iron ore miner, is in talks to buy a minority stake in Riversdale Mining, the Australian company that owns large coking coal assets in Mozambique. The state-owned NMDC that supplies key raw materials such as iron ore to most steel companies is also doing a due diligence for the Kolmar coal mines in Russia, chairman Rana Som said on Wednesday. ``We are interested in picking up about 10% equity in the (Riversdale) Mozambique project. We are looking at prospective mines in that country, jointly with Tata Steel,`` said Som. On the radar is a cluster of coal mines that Riversdale is developing, he added.

Tata Power to invest Rs 700 bn to up capacity to 25,000 MW Ratan Tata-led Tata Power plans to invest Rs 700 billion to increase capacity to 25,000 MW by 2017, a top company official said. ``The company plans to spend Rs 700 billion to increase capacity to 25,000 megawatts by 2017,`` Tata Power`s Chairman Ratan Tata told shareholders at the company`s annual general meeting here. Tata Power currently has 3,000 megawatts of installed generation capacity. The company`s 4,000 MW, Mundra Ultra Mega Power Project`s implementation is progressing as per schedule with 53% of overall project progress achieved. The first unit is expected to be commissioned by September 2011, Tata said.

Piramal Healthcare completes USD 3.7 bn deal with Abbott Piramal Healthcare`s shareholder can expect to soon receive a special dividend as the US-based drugmaker Abbott has completed its USD 3.7-billion acquisition of the Mumbai-based firm`s Indian formulation business on Wednesday. ``The transaction has been completed and Piramal Healthcare has received the initial consideration amount of `10,271 crore after adjustment,`` Piramal Healthcare said in its release. Piramal Healthcare had earlier said it will announce the special dividend once the deal closes. The company`s share price closed at `521.85, up 2.23% on BSE on Wednesday. Miles White, chairman and CEO, Abbott said, ``Combined with existing product offerings, Abbott is uniquely positioned to meet the needs of one of the world`s fastest-growing pharmaceutical markets.``

Tata Power in talks to buy majority stake in InterGen Tata Power Company, India`s largest private power utility, is in talks to acquire a majority stake in the UK-based power generator InterGen NV from GMR Infrastructure to scale up its global presence. ``We are talking to several companies including InterGen for a possible acquisition,`` chairman Ratan Tata told shareholders at the company`s 91st annual general meeting on Wednesday. InterGen, with generation capacity of over 6,300 megawatts (mw), has power plants in UK, Netherlands, Mexico, Philippines and Australia, according to its website. ``Tata Power has acquired a few companies in the recent past but this deal could help it add capacities at a faster pace,`` said Jigisha Jaini, senior research analyst at Jaypee Capital Services.

Sun closes in on Taro with Israeli SC ruling The Israeli Supreme Court dismissed a plea by Taro Pharmaceutical Industries to block India`s biggest drug maker by market value, Sun Pharmaceuticals, from raising its stake in the company, almost settling a three-year ordeal that would help the firm grow in the US. The dismissal would help Sun increase its voting rights in the Israeli generics drug maker to as much as 65% from the 36% it bought in 2007 with an agreement to take control later for USD 454 million, (Rs 21.16 billion), or USD 7.75 a share. The open offer to buy minority Taro holders will now end on September 14, said Sun Pharma. After the closure of the tender offer, Taro promoters are contracted to sell their 12% stake, with 41% voting rights, at the same price as the offer.

REC wants RBI okay to raise FII stake from 24% to 35% Rural Electrification Corporation (REC) will seek the Reserve Bank of India`s approval to increase the stake of foreign institutional investors in it to 35% from the current 24%. The approval is expected to come by the end of this month, said J M Phatak, chairman and managing director. The company`s shareholders today approved a proposal to raise the limit of total holdings of FIIs to the higher level. ``On July 8, FII holdings in REC were 22%, while overall limit is 24%. RBI keeps a gap of two per cent between the overall limit and the FII holding,`` said H D Khunteta, the director (finance). The company is also mulling floating a private sector bank, possibly in a tie-up with a foreign bank or with PFC, another power financing firm, said Phatak. It has set up a committee to study the idea. RBI is expected to announce a policy for setting up new private sector banks.

Essar may farm out 37% in Nigerian block Essar Energy, part of the Ruias` USD 15-billion Essar Group, is looking at farming out 37% in its offshore block, OPL 226, in Nigeria. The company holds 100% in the block and is in talks with a local partner. Block 226 is spread over 1,200 sq km and has estimated oil reserves in excess of 80 million barrels. ``We are in talks with one local partner for farming out interest in the block. The deal will close in a month`s time,`` said a senior executive from Essar Energy. He refused to divulge details. Essar has set up an office in Nigeria and begun preliminary exploration work on the block. The company has committed USD 30 million (Rs 1.4 billion) for the first phase.

Surya Roshni plans to increase export Surya Roshni, one of the largest flagship companies of the Rs 20 billion Surya Group plans, to enter new areas to increase its export. Talking to mailpersons here on Wednesday, J P Agarwal, Chairman and Managing Director, Surya Roshni said, ``India and China are the hubs for export market for GI Pipes.`` ``From the present Rs 4 billion export turn over of GI Pipes, we are planning to increase turn over by entering new areas, Agarwal said. Presently we are exporting in over 40 countries including Canada, USA, Europe, Germany and Middle-East. He said company is also investing Rs 1 billion for its Shimoga (Karnataka) plant to manufacture over one lakh tonnes of GI Pipes. When asked, Agarwal said Surya has 15% of the GI Pipes. All India market size of the GI Pipes is about Rs 100 billion, he added.

NASSCOM says -Ohio state proposed ban overlaps with election -Can expect more such election rhetoric in next few months

Ex-Dates -ONGC : Ex-Dividend @ Rs 15/share -Sun Pharma: Ex-Dividend @ Rs 13.75/share

Board Meet -Crisil : Buy-Back -BASF India : Scheme of Arrangement -Kiri Dyes : Issue of Securities

Listing of Gujarat Pipavav today

Entire SAIL FPO in this financial year – Steel Secy – BS

RBI likely to hand out just 4 new banking licence in first slot and that too in phased manner – FE

Eros International IPO opens on Sept 17, closes in Sept 21

HUL, P&G hike detergent prices too as input cost rises – DNA

GMR in talks with Agusta Westland for its Aero special economic zone – DNA

Royal Orchid acquires 74% in Amartara Hospitality for Rs 34 crore, to develop Powai land – DNA

IVRCL, Finland based forms JV for water solution – DNA

NMDC eyeing 10% stake in Austraila’s Riversadle – Mint

Emami in talks to buy Paras Pharma, deal size around Rs 400 crore – Mint


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