Thursday, October 7, 2010

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

Market Outlook: Indian markets are expected to open positive on a flat note taking cues from the global counters. The crucial support on the downside for the Nifty is 6140 and resistance at 6320. Overall markets are still up but is likely to struggle in the upper regions and it is expected to be volatile.

Global events to watch:

Þ Monster Employment Index

Þ Jobless Claims

Þ Consumer Credit

Global indices Update @ 8:

Dow Jones : 10967 (+22.93)

NASDAQ : 2380 (- 19.17)

Nikkei 225 : 9702 (+11.33)

Hang seng : 22938 (+58.39)

SGX CNX Nifty : 6204 (- 07.00)

INR / 1 USD : 44.30

Stocks in action for the day: SpiceJet, Zee Ent, Kingfisher, Kalpataru, Cairn, JSW Energy, Binani...

Kingfisher – Sources -Wilbur Ross may be looking to invest in Kingfisher Airlines -Wilbur Ross likely to invest USD 100-150 million Wilbur Ross likely to use convertible debt route for investment Alert: Wilbur Ross primarily invests in distressed assets via his global funds Alert: Vijay Mallya & Sanjay Aggarwal currently in US for Kingfisher Airlines roadshow : KFA recently hired former SpiceJet CEO Sanjay Aggarwal -Wilbur Ross, Kingfisher Airlines decline to comment

Cairn to seek shareholders` nod for Vedanta deal today: UK-Based Cairn Energy will seek shareholders` nod on Thursday for sale of majority stake in its Indian arm to London-listed Vedanta Resources for up to USD 8.48 billion, a development that would close options for stateowned ONGC to make a counter offer. Cairn has called a general meeting of the shareholders in Edinburgh on October 7, 2010, industry sources said. Once the shareholders approve the deal, ONGC will run out of its last opportunity to make a counter offer or exercise its pre-emption right. Sources said ONGC had so far made no approach to Cairn Energy management. ONGC could have made a counter-offer or exercised its preemption rights in certain properties of Cairn India only before shareholders of Cairn Energy approve of the sale. Then, upon acceptance of its offer by the management of Cairn Energy, ONGC would have gone to Sebi for stopping Vedanta`s open offer for Cairn India shares that is to begin on October 11. It had previously missed the market regulator Sebi`s deadline for making a rival offer.

JSW Energy seeks lower rate for 33.75 bn Ratnagiri project loan: JSW Energy is in the process of refinancing loans worth 33.75 billion raised for its 1,200 megawatt (MW) Ratnagiri power plant, company officials close to the matter told ET. ``The effective interest rate on the debt is 11.5% as it was raised when the project was under construction. Our intent is to bring it down to 9.50-9 .75%,`` said one of the officials , who did not wish to be named. In September, the JSW group .s power utility commissioned the first of the four units of 300 mw each at the coal-fuelled power project at Jaigad, 40 kilometres from Ratnagiri in Maharashtra. The other three units are scheduled to be commissioned in phases by December.

Binani Cement promoters to buy public stake, delist co Promoters of Binani Cement have decided to delist the shares of the company by purchasing entire 30.1% public holding in the firm. The board of Binani Industries on Wednesday approved the plan to purchase the entire public equity shareholding of its subsidiary Binani Cement, Binani Industries said in a regulatory filing. However, Binani Industries is yet to decide the price at which the public shares will be purchased. Under the norms, the delisting price will be discovered through a reverse book building process. At the current price of 95.65 per share, the public holding in the 6.5 million tonne cement manufacturer is worth around 543 crore. Binani Cement spent 130.50 crore on its share buyback programme concluded on August 10. It bought back 14.50 million equity shares at 90 per share.

HSBC picks up 6.22% stake in Strides Arcolab Pharmaceutical firm Strides Arcolab today said global financial company HSBC has picked up 6.22% stake in the company through institutional placement of shares, possibly for Rs 1.55 billion. According to a communique to the Bombay Stock Exchange, Strides Arcolab said HSBC Global Investment Funds had picked up 6.22% stake, comprising 35.92 lakh shares, through qualified institutional placements (QIP) on October 1. Although the company did not share the financials involved, based on the closing share price of Strides Arcolab at Rs 434.20 a piece on the day of the transaction, HSBC is estimated to have paid Rs 1,559.8 million.

GAIL places orders for laying Dabhol-city gas pipeline State-owned gas utility GAIL India today placed orders worth `677 crore for laying a gas pipeline from Dabhol in Maharashtra to Bangalore. GAIL CMD B C Tripathi said: ``The placement of construction contract marks a significant step towards execution of the pipeline project and is a testimony of GAIL`s commitment to bring gas supplies to Karnataka by 2012.`` With this, in the last three months GAIL has placed orders worth about `2,000 crore for line pipes and pipeline laying to enable swift project implementation, a company release said here. ``Construction work will start by November 2010 and the pipeline will be ready by March 2012,`` it said, adding the commissioning would take a couple of months more and the gas supplies are expected to begin by June 2012.

Gammon Infra nod for ESOPs Gammon Infrastructure Projects said on Wednesday that the Compensation Committee of the board on October 05 approved the issue and allotment of 1, 25, 000 equity shares of Rs 2 each, following the exercise of stock options by the employees under the `GIPL Employee Stock Option Scheme - 2008`. Upon the allotment of these shares, the paid up capital of the company stand increased to 72,82,60,165 equity shares of Rs 2 each.

Steel Secretary: -SAIL FPO in November or January -Appointment of two new directors for SAIL board under consideration -Government approves restructuring of SAIL's board

Pfizer Q3 -Net sales at Rs 225.6 crore versus Rs 204.8 crore (YoY) -Net profit at Rs 42.5 crore versus Rs 41.2 crore (YoY)

Bank of India ups base rate from 8.00% to 8.50%

Zee Entertainment goes ex-scheme of arrangement, new F&O contracts to be introduced

Vivimed Labs board meet on October 9 to consider capital raising

Indswift Labs postpones board meeting on warrant allotment to promoters

Kalpataru Power to invest Rs 90 crore in JMC Projects via buying 43.5 lakh shares at Rs 207/sh ((JMC CMP: 226)) – Kalpataru is promoter with 53% stake, stake to go up to 61%

Kalanithi Maran buys 5% more in SpiceJet, ups stake to 45%


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