Friday, October 1, 2010

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

Market Outlook: Indian markets are expected to open with a positive note and likely to consolidate in the range of 5950-6100. Overall markets sentiments are still positive with support at 5960 and target on the upside is near 6090 for near term.

Global events to watch:

Þ Motor Vehicle Sales

Þ Personal Income and Outlays

Þ Consumer Sentiment

Þ ISM Mfg Index

Þ Construction Spending

Global indices Update @ 8:

Dow Jones : 10788 (- 47.23)

NASDAQ : 2368 (- 07.94)

Nikkei 225 : 9453 (+83.79)

Hang seng : 22358 (+20.50)

SGX CNX Nifty : 6054 (+27.00)

INR / 1 USD : 44.92

Stocks in action for the day: Firstsource, NMDC, Bajaj Auto, DRL, Suven, Axis, IDBI Bank...

NIFTY changes from today: -Bajaj Auto, Dr Reddy’s, Sesa Goa to get in Nifty -ABB, Idea, Unitech to go out of Nifty

Sterlite says -Committed to complying with Madras HC order -Have filed review petition with Madras High Court-Have sought 3 weeks time to comply with Madras HC orders -Have filed SLP with SC seeking stay on Madras HC order

Base rates -Axis Bank revises its base rate to 7.75% from 7.5% -IDBI Bank raises base rate from 8% to 8.5%; IDBI ups deposit rates by 15 to 50 bps across different maturities -Allahabad Bank hikes base rate from 8% to 8.5% Kotak Mahindra Bank -Hikes base rate by 25 bps to 7.5% -Hikes benchmark prime lending rate by 25 bps to 16.25%

SAIL AGM -POSCO JV to be finalised in 2 months -FPO to be in early December or January -Not to reduce prices as demand will go up in festive season -Imports from China have reduced drastically -To set up power generation capacity for steel plants

Maruti expects Sept sales tally to be it`s best-ever: Maruti Suzuki, the country`s largest carmaker, is expecting sales to grow 32-33% in September over the year-ago period, its chairman said on Thursday, a day ahead of announcing the actual tally. Maruti expects to clock higher sales in September, compared to August when its domestic sales rose 32.5% to 92,674 units, an all-time high for a single month. Maruti Suzuki scrip rose 0.7% to close at Rs 1,440.95 at BSE in line with the 30-stock benchmark Sensex. Maruti Suzuki chairman RC Bhargava said September could be the company`s best month ever and growth could be higher than the consolidated 27% achieved in the first five months of the current fiscal, beginning April. ``The demand is robust but capacity constraint is still pulling us back to achieve even higher sales for the rest of the fiscal,`` he said.

Tata Steel bags process technology patent, may out-license to rival cos Tata Steel has bagged a commercial patent on a widely used for developing iron at steel plants. The steel major may consider licensing the technology to. Tata Steel recently signed an agreement with Jyoti Cero Rubber to commercialise a patented technology for hybrid rollers used in sinter plants, with potential revenues of over Rs 10 million annually by licensing it out over the next three years. ``This is the first patent licensed to a third party for commercial production in Tata Steel,`` Tata Steel senior manager (intellectual property) BK Bhuyan said. ``While the Tisco Direct Reduction was probably one of the first, it was licensed out in-house to group company Tata Sponge,`` he added.

Tatas to spread Rs 15 mn Net for Aria: Tata Motors will drive its most ambitious to market its premium crossover Aria, which will hit the road this month. The company has committed close to Rs 15 million, its highest for a product, for the online campaign that started with an online game at, two people close to the development said. ``Online campaign is an integral part of the brands communication,`` a Tata Motors spokesman said. ``But we cannot share any details,`` he added. After the launch, Tata Motors will carry forward the viral online strategy - a marketing technique to induce users to pass on the message to other users leading to exponential growth in the message`s visibility - to attract upwardly mobile buyers.

Hind Motors scripts turnaround strategy to ride out of losses: Hindustan Motors, makers of the iconic, has chalked out a multi-pronged. The company, struggling with losses that have wiped out more than half its net worth is in talks with overseas car makers to take up contract manufacturing at its Chennai plant. It is also looking to launch new variants of the existing models and is scaling up capacity of its car and components businesses. Speaking to media persons in Kolkata, on Thursday, Hindustan Motors` managing director Manoj Jha said: ``We are in talks with global automakers to take up contract manufacturing at the Chennai plant. We are also in discussions with Japanese major to explore the possibility of increasing the number of units rolling out of the plant.``

Nalco to enter metal, energy sectors National Aluminium, or Nalco, has targeted a turnover of Rs 250 billion by 2020 as part of a new corporate plan that will include venturing into new businesses and power plants. It is also finalising plans to transform itself from an `aluminium producer` to a metals producer and energy provider. Outlining the company’s future growth strategy, Nalco chairman AK Srivastava said the company will build at least two diversified projects by 2016 and target at least one 1,000 mw independent power producer by 2016. In the metals business, Nalco has set a target of producing 1.7 mt of aluminium and 4 mt of alumina by 2020. It has completed the second phase of expansion at Rs 78 billion raising alumina capacity to 2.1 mt, aluminium capacity to 4.6 lakh tonne and power capacity to 1,200 mw.


Suven to raise Rs 900 mn for R&D With one developed molecule ready for the proof of concept stage (a demonstration of in-principle validity) and three more set to move into Phase-I of clinical trials, Suven Life Sciences is in a sweet spot. However, raising USD 20 million (Rs 900 million) by the year-end is a priority for the company to take forward the research and development of these four molecules. The Hyderabad-based bio-pharmaceutical company, with a focus on central nervous system disorders, is open to diluting stake for raising funds. ``We are not averse to a 10 to 15% stake dilution. But valuation will be a key to decide on this,`` said Venkat Jasti, chief executive officer.

Aarvee Denims plans Rs 1.2 bn capex Ahmedabad-based Aarvee Denims and Exports (ADEL), India`s second largest denim manufacturer, has decided to infuse around Rs 1.2 billion for expanding its manufacturing capacity in two phases. The company currently has an installed capacity of 61.25 million meteRsper annum, which it plans to scale up to 90 million meters. The first phase of the expansion is likely to be completed by February 2011 and the second phase by December 2011. ``The final phase will be completed with the capex of Rs 1.2 billion approximately,`` Vinod Arora, chairman, Aarvee, after the annual general meeting of the company at Ahmedabad. Leading denim makeRsin the country have embarked on an expansion drive to meet growing demand for denim in both domestic and export markets.

Firstsource bags USD 80-100m, 5-year order

NSE to introduce F&O contracts in NMDC from today ((about time))

Koutons AGM: Board authorized to raise money via GDR/QIP issue ((stock down 40% in 2 days))


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