Friday, September 24, 2010

Market Outlook: Indian markets are expected to open flat

Market Outlook: Indian markets are expected to open flat and consolidate at these levels before taking further fresh momentum. The crucial support on the downside for the Nifty is 5920 and resistance at 6010 for the day.

Global events to watch:

Þ Durable Goods Orders

Þ New Home Sales

Global indices Update @ 8:

Dow Jones : 10662 (- 76.89)

NASDAQ : 2327 (- 07.47)

Nikkei 225 : 9446 (- 119.6)

Hang seng : 22056 (+09.24)

SGX CNX Nifty : 5966 (- 01.00)

INR / 1 USD : 45.59

Stocks in action for the day: Orchid Chem, DRL, RIL, EIH, Strides, FTIL, JSW Steel, Unichem, Matrix...

Financial Tech in focus, SEBI rejects MCX SX application for SE SEBI says:-MCX-SX application not fully compliant with norms-MCX-SX application not in interest of trade & public-Concentration of economic interest with 2 promoters not in market interest-FTIL & MCX cannot hold more than 5% in stock exchange CNBC-TV18 alert : FTIL & MCX are MCX-SX's 2 promoters MCX-SX says -Will take appropriate steps in consultation W/Legal counsels -Will continue to work on currency derivatives segment -Sad to see continuation of bias, injustice in SEBI order

Strides Arcolab launches QIP -To raise between USD 45-100 million -QIP issue priced at Rs 423.5/share -IDFC Cap, Daiwa Cap, Kotak, RBS bankers to issue

Steel -Price hike on cards -Steel Cos to review steel prices in October -Price hike could be about Rs 1000/tonne-Companies see room for 5-6% price hike in October -Alert: International steel prices have moved up 10-15% in last few months

EIH -Approves rights issue of Rs 1,300 crore -Forms rights issue committee to finalise rights ratio and issue price

Import duty on power equipment – Sources -Govt to consider import duty on power equipment -CCEA to discuss import duty move on Friday CNBC-TV18 alert: 19% import duty proposed on all power projects -Customs duty at 5%, CVD at 10%, SAD at 4% From Sources -Already awarded mega projects, UMPPs to be exempt -15% price preference to domestic cos to be withdrawn CNBC-TV18 alert: NTPC bulk tender & Barethi project to be exempt

Primary Market -Ashoka Buildcon IPO opens today, to raise Rs 225 cr at price band of Rs 297-324/sh; allocates 12.4 lakh shares @ Rs 324/sh aggregating to Rs 40.3 crore to anchor investors -Ramky Infra IPO overall subscribed 4 times (x); QIB 10x

IPOs closing today -Orient Green: closed already for QIBs, total subscribed 0.97x, QIB: 2.1x, Retail almost nil-Electrosteel Steels: closed already for QIBs, total subscribed3.7x, QIB: 5.86x, retail: 0.4x

RIL to participate in EIH rights issue, to make an open offer post rights – BS (Both RIL and EIH To hold equal share)

JFE, JSW may jointly set up steel plant JSW Steel, India`s third-largest producer, said it is considering setting up a plant with JFE Holdings for high-grade electrical steel to benefit from rising demand for specialty alloy. The project, to be developed jointly with Japan`s second-largest steelmaker, may be located near JSW`s factory at Vasind in the western state of Maharashtra, JSW chief financial officer Rajeev Pai said on Thursday in an interview. Steel from the factory would be used to make electrical transformers, he said, without giving financial or ownership details. Indian steelmakers are forging alliances with global rivals to make superior grades of the alloy used in automobiles and transformers. The country is increasing power-generation capacity to meet a target of providing electricity nationwide by 2012. ``The aim of joining hands with JFE is to move up the value chain,`` Pai said.

Matrix Lab gets USFDA nod for HIV medicine Matrix Laboratories has received the US FDA`s approval for atazanavir sulfate capsules, according to information available on the drug regulator`s website on Thursday. Atazanavir sulfate capsules are used in the treatment of HIV infection.

Unichem gets EU nod for drug to treat enlarged prostate Drug firm Unichem Laboratories on Thursday said it has received a certificate of suitability for its generic drug for treatment of enlarged prostate, Alfuzosin Hydrochloride, from the European health regulator. A certificate of suitability is given by the European Directorate for Quality of Medicines and Healthcare (EDQM) for certifying compliance of a material with the requirements laid down in the European Pharmacopeia. ``The company has been granted a Certificate of Suitability of European Pharmacopeia (CEP) by EDQM for Alfuzosin Hydrochloride,`` Unichem said in a filing to the Bombay Stock Exchange (BSE).

Glaxo to pull out its diabetes drug from European market Avandia, manufactured by GlaxoSmithKline, once the world`s best-selling diabetes drug, will be withdrawn from the market in Europe and sales will be limited in the US because of an increased risk of heart attacks, the respective regulators said in decisions announced almost simultaneously. ``Data from clinical trials, observational studies and meta-analyses of existing studies that have become available over the past three years have suggested a possible increased risk of ischaemic heart disease associated with the use of rosiglitazone,`` the European Medicines Agency said in an emailed statement on Thursday. In the US, the drug will carry new warnings about heart risks after a three-year battle that divided staff at the Food and Drug Administration (FDA). London-based Glaxo must add new cautions to Avandia`s prescribing information, the agency said.

`ONGC opted out of Cairn bid to protect its interests` State-run Oil & Natural Gas Corporation (ONGC) said it will protect its interests in Vedanta Resources` USD 9.6-billion bids to acquire controlling stake in Cairn India without making a counter offer. ``Counter offer date is gone. If ONGC did not make an offer, that was done consciously,`` ONGC chairman & managing director RS Sharma said after the company`s annual general meeting. ``We made a conscious decision based on legal and commercial considerations. ONGC`s interests will be protected,`` he said. Answering to a specific question, whether it would mean ONGC has withdrawn its claim of having the first right of refusal, he said, ``I have not said that we have surrendered the first right of refusal.`` ``All I have said is that we did not make a rival offer by the close of deadline (on September 7),`` he said.

Karuturi set to raise USD 100 mn Bangalore-headquartered rose exporter Karuturi Global will raise USD 100 million (Rs 4.5 billion) through the private equity route to fund its growth plans in both agriculture and horticulture sector, and is expected to close the deal during the next week. This move to raise comes after protracted discussions with various global private equity funds and this infusion is expected to be from fund which is among the top 5 globally. Karuturi during this month has raised USD 15 million IL&FS PE and another USD 24 million through a GDR issue. The latest fund raising of USD 100 million will be part of Karuturi`s gameplan to invest USD 350 million to expand its fledgling agriculture and established floriculture business. The company on Thursday said that it is deferring the proposed rights issue.

Maytas to approach CLB again for induction of Saudi directors Maytas Infra on Thursday said it would file a review petition with the Company Law Board which recently rejected the company`s proposal to induct four directors of Saudi Bin Ladin Group on its board. ``We are studying the circumstances under which the orders have been passed (by CLB). We are in touch with the government and we will probably file a petition with the CLB again. The government has also filed an affidavit indicating its full support,`` Ravi Parthsarathy, chairman IL&FS told reporters on the sidelines of company`s Annual General Meeting held. CLB had rejected the company`s application to induct four directors of SBG on its board last month.

J K Lakshmi to invest Rs 18 bn on capacity expansion J K Lakshmi Cement plans to invest Rs 18 billion over the next three-four years to double its production capacity to 10 million tons. ``At present, our installed cement production capacity stands at five million tons, which we would expand to 10 million tons in the next three-four years,`` the company Managing Director, Ms Vinita Singhania said. Ms Singhania, who is also the president of CMA, said the company is setting up a 2.7-mt greenfield cement plant in Chhattisgarh at an investment of Rs 12 billion. The Chhattisgarh cement plant will be operational by October 2012 and this would take the total capacity to nearly eight mt, she added.

Shree Cement to invest Rs 35 bn for expansion Shree Cement on Thursday said it will invest Rs 35 billion to expand its cement production capacity by seven million tons in the next five years. ``We have a production capacity of 13 million tons, which we will expand to 20 million tons by 2015,`` said H M Bangur, CMD, Shree Cement. Asked about the investment on capacity expansion, he said it would be Rs 35 billion and it would meet the funds through internal accruals and debt. Bangur said the company was in the process of setting up a greenfield cement plant in Karnataka. Shree Cement has plants in Rajasthan and Uttarakhand, and sells cement under Shree Ultra, Bangur and Rockstrong brands.

Dr Reddys says no question of diluting stake. will continue to focus on drug discovery

FIPB defers GMR airports induction of foreign equity

Board meet today: Navin Flourine for buyback

Orchid update: Ranbaxy arm sold 10.4 lakh shares yesterday, has been selling in open market

Sharp Trading and Finance open offer at Rs 60/sh

Foreign Funds seek delay in new rules that kicks in from October 1 falling which they may have to pull out of the country – ET

Govt rejects Etisalat’s plea for stake hike in JV – ET

Coffee Day Holdings looking to acquire Gati – ToI (Gati management denied any stake sale)


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