Tuesday, September 28, 2010

Market Outlook: Indian markets are expected to open with a flattish note

Market Outlook: Indian markets are expected to open with a flattish note and likely to consolidate ahead of F&O expiry this week. Todays session would be choppy on Dalal Street ahead of the judgment on Ayodhya verdict. Overall markets sentiments are still positive with support at 5990 and target on the upside is near 6130 for near term.

Global events to watch:

Þ Consumer Confidence

Þ State Street Investor Confidence Index

Þ ICSC-Goldman Store Sales

Þ S&P Case-Shiller HPI

Global indices Update @ 8:

Dow Jones : 10812 (- 48.22)

NASDAQ : 2369 (- 11.45)

Nikkei 225 : 9528 (- 74.46)

Hang seng : 22328 (- 12.44)

SGX CNX Nifty : 6038 (- 09.50)

INR / 1 USD : 45.04

Stocks in action for the day: Mah Satyam, ONGC, IOC, MMTC, Suzlon, AstraZeneca, Infy, RComm, BoB, L&T, Aftek...

IPOs snapshot

L&T to file DRHP for L&T Finance’s Rs 1500 crore IPO today, equity dilution of 17-20%

Commercial Eng and Body Builders IPO opens on September 30, closes on October 5th, issue price Rs 125-127/sh

Ashoka Buildcon (closes today)-Total at 1.5 times (X)-QIB at 1.89x, HNI at 2.89X, retail at 0.5X

Tecpro (QIB closed yesterday, retail closes today)-Total at 14.17X-QIB at 27.99X, HNI at 0.5X, retail at 0.65X

Sea TV (closes tomorrow)-Total at 1.38X, QIB at 0.2x, HNI at 5.2X, retail at 1.4X

VA Tech (Closed; retail closed yesterday while QIB had closed on Friday)-Total: 36.22x
-QIB: 36.13x; NII:100.98x; Retail: 8.55x

Mah Satyam-Tech Mah merger post Nov 15: Mahindra Satyam has approached the New York stock exchange for delisting its ADR's by October 14, 2010. Sources say its intention for merger with Tech Mahindra. Management says When we acquired what is now called Mahindra Satyam, when we acquired Satyam Computers on April 13, We did make a categorical statement that we would be merging the two companies. That decision remains. However, to merge the two companies we need to be current in our accounts. That will happen on November 15 when Quarter 1 and Quarter 2 results are published. Once that happens, we would be ready to move with the process or we will initiate the first step relating to the merger process which can take up to 6 to 9 months.’

Banks Update -Govt mulls hiking stake in PSU banks with shareholding of upto 55%: Union Bank, Dena Bank, BoB, OBC Andhra Bank have less than 55% holding -Union Bank, Dena Bank, BoB may get capital infusion from govt -Union Bank may get Rs 1,500 crore capital infusion from govt -BoB may get Rs 2,500 crore capital infusion from govt -Dena Bank may get Rs 600 crore capital infusion from govt -Capital infusion to be in the form of preferential allotment

Big-ticket offers like ONGC, IOC, and MMTC to jump disinvestment queue A rejigged disinvestment road map could see big ticket offers come to the front of the queue and smaller ones pushed to the end of the fiscal 2010-11 to ensure that the Rs 400 billion target for the year is achieved. Disinvestment in companies such as Rashtriya Ispat Nigam, Cochin Shipyard, Hindustan Copper and Manganese Ore India may have to wait to allow ONGC, IOC and MMTC offer to go through at the earliest when the market conditions are still good. ``This is our suggestion (to the disinvestment department) so that there is no over crowding of issues and the larger issues get adequate market response,`` said a finance ministry official.

IBM deal to support upto 500 mn global Bharti users US Computer giant IBM will provide Bharti Airtel with the IT infrastructure to support 500 million customers across the globe, after bagging the recent contract to manage the Indian telco`s African operations. While Bharti currently has about 180 million customers in India and Africa combined, and will take several years to reach anywhere close to the 500-million mark, both companies have decided to use their learning from the earlier deal. In 2004, when Bharti had awarded a 10-year, USD 750-million IT outsourcing deal to IBM, its customer base was a mere 6 million. But IBM and Bharti decided to go in for an infrastructure that could support over 150 million users, despite the Indian telco`s then projections indicating it was unlikely to match such figures over the next 10 years. This infrastructure platform helped Bharti ride the telecom boom in India, and in the first seven years of the deal, it added about 140 million customers. The 2004 deal is estimated to have surpassed the USD 3-billion mark.

IRB Infra to raise Rs 7.5 bn debt for K`taka road project IRB Infrastructure Developers will raise Rs 7.5 billion of debt next month from a consortium of three financiers led by Infrastructure Development Finance Company (IDFC) to finance its Tumkur-Chitradurga road project in Karnataka. ``We will raise a debt of Rs 7.5 billion from IDFC and two other banks in October and with that our Tumkur-Chitradurga road project will achieve financial closure. We will finance Rs 4.5 billion of equity in the project through internal accruals,`` Virendra D Mhaiskar, chairman and managing director, IRB Infrastructure Developers, told ET after the company`s AGM on Monday.

Suzlon in talks to buy all of REpower Wind turbine maker Suzlon Energy is in talks to buy the remaining nine percent stakes in German unit REpower Systems AG, its chief financial officer said on Monday. ``We are working towards it,`` Robin Banerjee said at the Reuters India Investment Summit in Mumbai, adding that Suzlon had no plans to sell a stake in REpower. Media had earlier said that Suzlon might sell up to 25% in REpower for USD 500 million. Suzlon Energy, which holds 91% of REpower, is the world`s third-largest wind turbine maker behind Denmark`s Vestas and Spain`s Gamesa.

Shipping Corp signs contract with Jiangsu Eastern Shipping Corporation of India, the largest domestic shipping liner, on Monday said it has signed a contract for acquisition of four Kamsarmax Bulk Carriers of about 80,000 DWT each, with Jiangsu Eastern Heavy Industries. `The Company has signed the shipbuilding contract for acquisition of four Kamsarmax Bulk Carriers of about 80000 DWT each, with Jiangsu Eastern Heavy Industries Co on September 25, 2010,` the company said in its regulatory filings. However, proposed investment in the acquisition of bulk carriers could not be ascertained as company officials could not be contacted.

Godrej Consumer looks at acquisitions in India Personal care products maker Godrej Consumer Products, which has made four overseas acquisitions this year, is also interested in buying domestic firms to boost growth, the chairman of the USD 2.5 billion diversified group said on Monday. ``We may look at it but at the right price and on right terms,`` Adi Godrej said at the Reuters India Investment Summit in Mumbai, referring to unlisted personal care firm Paras Pharma based in the western Indian city of Ahmedabad.

PowerGrid wants fresh offers for Rs 70 bn project State-run power transmission firm PowerGrid has called for fresh offers from short listed bidders BHEL-ABB and Siemens for its Rs 70 billion HVDC (high voltage direct current) sub-stations` project. While the entire transmission project consisting of HVDC sub-stations and a 800 Kv. transmission line from Biswanath Chariali in Assam to Agra in north India is worth about Rs 120 billion, the sub-station portion is estimated at Rs 70 billion.

Biocon extends tie up with CIM for integrated immunology Biocon has extended its alliance with the Cuba-based CIM for an integrated programme in immunology. The company has strengthened its partnership with the Havana-based Centre of Molecular Immunology (CIM) by joining forces for an integrated anti-body programme in immunology, Biocon said in a statement. Both Biocon and CIM have collaborated for almost a decade to develop biotechnology products for chronic diseases. Two drugs have already been approved due to this collaboration for medical use in India and other territories, it said. The parties are now looking to create an innovative product pipeline focused on auto-immune diseases and cancer and have identified an anti-body, `Anti-CD6`, which targets lymphocytes, key players in the immuno-pathology of an auto-immune disease, it add ed.

Govt imposes anti-dumping duty on chemical from China.

KPIT Cummins acquires US-based CPG Solutions.

M&M -Raises prices of its portfolio of products by Rs 3,000-8,000 effective October 1 -Price hike due to higher raw material costs, BS III emission norms

Mercator Lines board meet on September 30 to consider fund raising

Mannapuram General Finance board meet on October 4 to consider raising up to Rs 1000 crore via QIP

AGMs today: Reliance Power, Reliance Capital, Reliance Communications

Reliance Comm @ AGM: To seek shareholder nod to sell fresh equity, may go for up to 15% of existing share capital by seeking approval for USD 1 billion fund raising –

Sources Say: Infosys likely to invest nearly Rs 3000 crore for two IT parks in Karnataka

Board meets today: Abbott India - results

In T2T from October 1: Advani Hotels, Aftek

AstraZeneca’s plans to delist rejected by minority shareholders via postal ballot


1 comment:

Focus Group Research said...

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