Wednesday, October 6, 2010

Market Outlook: Indian markets are expected to open with gap up of 40-50 points

Market Outlook: Indian markets are expected to open with gap up of 40-50 points on nifty taking cues from the global counters. The crucial support on the downside for the Nifty is 6100 and resistance at 6320. Overall markets are still up and stretched but is getting tired on the way up o consolidate before making next move.

Global events to watch:

Þ Bank Reserve Settlement

Þ Challenger Job-Cut Report

Þ ADP Employment Report

Þ EIA Petroleum Status Report

Global indices Update @ 8:

Dow Jones : 10944 (+193.4)

NASDAQ : 2399 (+55.31)

Nikkei 225 : 9641 (+122.5)

Hang seng : 22940 (+301.4)

SGX CNX Nifty : 6218 (+43.00)

INR / 1 USD : 44.72

Stocks in action for the day: OnMobile, Godrej Prop, Halonix, ITI, SCI, GMDC, SCI, HDFC Bank, ICICI...

Eros International Media and Career Point listing today

Base rates update: -ICICI Bank ups base rate by 25 bps to 7.75% & ups deposit rates by 25-50 bps w.e.f. October 6 -Andhra Bank hikes base rate by 25 bps to 8.5% -Federal Bank ups base rate by 25 bps to 8% w.e.f. October 1: NW18: Sources -Canara Bank ups base rate by 50 bps to 8.5% w.e.f. October 1: NW18: Sources -UCO Bank hikes base rate by 50 bps to 8.5%: NW18: Sources

Ansal API - Ansal API QIP closes: raises approximately USD 50 million via QIP -Ansal API QIP closes: QIP was for USD 35 million with an upsize option: IDFC Capital sole banker to Ansal API's QIP

Shipping Corp -Cabinet okays divestment in Shipping Corp -Govt to sell 10% stake in Shipping Corp -Shipping Corp to raise Rs 1,300 crore via stake sale alert: Govt's stake in Shipping Corp to fall to 63.75% -Retail investors to get 5% discount in Shipping Corp FPO -Shipping Corp to issue 10% fresh equity

Oberoi Realty IPO opens today -Anchor Investors: Fidelity, Eton Park Cap, T Rowe Price, Ochiff -Anchor Investors: Reliance MF, Birla MF, ICICI Prudential -Oberoi Realty to raise Rs 1,000 crore Via IPO -Price band at Rs 253-260/share

BS TransComm IPO opens today -Issue of 76.79 lakh equity shares -Price band at Rs 257-266/share -Bids can be made in 25 shares and in multiples of 25 shares thereafter

ITI - -Cabinet okays 2 years extension of BSNL, MTNL order quota for ITI -Govt says BSNL, MTNL to give 70% advance to ITI on equipment orders

Vedanta bags GMDC bauxite mining deal London-listed Vedanta Resources has won the bauxite mining bid for Gujarat Mineral Development Corporation (GMDC). The Anil Agrawal-owned company will get 5 lakh ton of bauxite from GMDC-owned mines. With ample supply from Gujarat mines, Vedanta can run its Orissa-based refinery with the fullest capacity. Leading mineral companies like Aashapura Minechem and Alpine Miners were also in the fray to get the bid in their favour. GMDC has 9.12 lakh ton of bauxite reserves. Vedanta wants to use the sea route to bring Gujarat bauxite to Visakhapatnam. From there it can reach the refinery by road or railway. The company requires minimum 60 lakh ton of bauxite every year to run it`s refinery with 100% capacity utilisation.

Govt to hive off 10% stake in SCI The Cabinet Committee on Economic Affairs (CCEA) on Tuesday gave its go ahead to divestment of Shipping Corporation of India (SCI). It approved issue of fresh equity of 10% by SCI of its existing equity, amounting to 4,23,45,365 shares in the domestic market as per SEBI regulations. It also approved sale of 10% of the existing equity out of the government shareholding, amounting to 4,23,45,365 shares in the domestic market as per SEBI regulations. The divestment of SCI is expected to generate approximately Rs 13 billion. The government ownership in SCI is currently at 80.12% and after this offer of sale and further issue of shares, the government holding will be 63.75%. This disinvestment will develop a roadmap for higher people ownership of this company while ensuring that the government equity does not fall below 51%.

IDBI in pact with WRI for energy-saving initiatives IDBI Bank has tied up with US-based environmental research organization, World Resources Institute (WRI), for providing consultancy services to its borrowers on energy cost reduction. The cost of implementing the energy-saving initiatives will be funded by IDBI Bank and WRI will guarantee the savings. Under the agreement, if a company`s energy bills don`t decline during the stipulated period and if the company does not repay the loan, IDBI can invoke the WRI guarantee. ``Energy cost is as much as 25% of the cost of production. Besides cost reduction, the move is aimed at the ecosystem protection. The tie-up is for micro, small and medium enterprises (MSME) segment and we expect forging units, textile, steel sector and the hotel industry to benefit from this tie-up,`` said TR Bajalia, executive director and head of MSME at IDBI Bank. ``They (WRI) will find out where and how the energy could be saved and suggest it to companies. By reducing the energy cost, they (companies) will be able to repay the loan and improve their profitability,`` he added.

JSW, Japan`s JFE to partner for raw material sourcing JSW, the Sajjan Jindal-promoted steelmaker, moved another step closer to joint sourcing of raw materials with Japan`s JFE after the Indian company on Monday agreed to pick up a 5% equity stake in JFE. Participation in each other`s equity capital and technological collaboration, apart from scouting jointly for raw materials had been approved by the two companies early this year. At a review meeting between JSW and JFE in Tokyo on Monday, JSW managing director Sajjan Jindal indicated his company`s interest to acquire an equity stake of less than 5% in JFE Steel, the core unit of JFE. The transaction is scheduled to be spread over the next two years, said people close to the development.

Tatas, Nippon Steel plan steel JV Tata Steel is understood to be considering setting up an Rs 150 billion steel plant in India in collaboration with the Japanese firm Nippon Steel. A Tata Steel spokesperson said, ``Any further co-operation between the two companies may be part of an ongoing conversation in the future but no decision has been taken in that regard.`` Meanwhile, sources said the two companies are in discussions to set up an integrated steel plant in India with an initial production capacity of 3 million tonnes per annum (MTPA) which could entail an investment of at least Rs 150 billion. The two companies have already signed a pact to jointly produce auto grade steel at Jamshedpur, Jharkhand, where Tata Steel runs a 6.8 MTPA steel plant.

Bajaj likely to increase 2-wheeler prices marginally Bajaj Auto is likely to increase the prices of its bikes by 1-2% this month following a rise in input costs, a senior company official said on Tuesday. ``Input costs have risen considerably. As a result, we will have to increase the prices of our vehicles. We are planning to increase them by 1-2% from this month,`` the company`s General Manager (Marketing), Milind Bade, told reporters on the sidelines of an event here. However, the company is still working out the details of the hike, he said. In July this year, the company had increased its prices following a rise in steel prices. It is expected that steel prices are likely to increase by Rs 500-1,000 in the coming months following an increase in the global demand for the material.

GlaxoSmithKline revamps Horlicks brand In a bid to reposition itself as a market leader in the food and health drink category and also extend itself as a food and beverage brand, FMCG major, GlaxoSmithKline Consumer Healthcare (GSKCH), has revamped its flagship Horlicks brand and expects to maintain its leadership position at 52% (market share) this fiscal, a senior company official said. The firm on Tuesday relaunched Horlicks as not only a health and wellness category but also as a major food and beverage brand through various promotional campaigns on digital and mobile marketing space.

Board meets today: -Wyeth - results -Sadbhav Engg – stock split -Pfizer – results -JMC Pdt- consider fund raising plans -Ind Swift Labs – consider allotment 80 lakh zero coupon convertible warrants to promoters

Halonix -Actis PE Fund looking to sell entire 66% stake in Halonix: NW18: Sources -Actis appoints Enam as advisor for Halonix stake sale: NW18: Sources

UMPPs -No new UMPPs to be bid out this fiscal: Srcs -Proposed 3 UMPPs run into environment hurdles: Srcs -Fresh delay for Cheyyur UMPP, bid unlikely this FY: Srcs Alert: RFQ for Cheyyur UMPP was to be floated In FY11 Alert: Chattisgarh, Orissa UMPPs also face environmental issues -Environment Ministry wants 1-year for Cheyyur port study: Sources

OnMobile buys 3G Technology Solutions from Dilithium Networks: NW18

Confidence Petro – board approves fund raising upto Rs 500 crore

Godrej Properties signs Development Agreement with Bombay Footwear to develop a plot of land admeasuring 5442.10 square metres located at Village Deonar, Chembur

Cox & Kings – FII limit upped to 74%

Hanung Toys denies 1:1 bonus news


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