Tuesday, October 19, 2010

Market Outlook: Indian markets are expected to open flat in positive terrain

Market Outlook: Indian markets are expected to open flat in positive terrain on the back of positive global counters. The crucial support on the downside for the Nifty is 6000 and resistance at 6150.

Results today: Bajaj Auto, HDFC Bank, Cadilla Health, Container Corp, Coromandel Intl, Mangalore Chemical, MindTree, Nitin Fire, Polaris, Rallis, Supreme Industries

Global events to watch:

Þ Industrial Production

Þ Housing Starts

Global indices Update @ 8:

Dow Jones : 11143 (+80.91)

NASDAQ : 2480 (+11.89)

Nikkei 225 : 9548 (+50.44)

Hang seng : 23637 (+168.2)

SGX CNX Nifty : 6148 (+15.00)

INR / 1 USD : 44.26

Stocks in action for the day: L&T, IOC, Bombay Dyeing, Sesa Goa, Biocon, Biocon, Emami, RIL...

Biocon-Pfizer Agreement -Pfizer to make upfront payments totaling USD 200 million -Biocon eligible to get additional payments of up to USD 150 million -Additional payments linked to sales of Biocon Insulin Biosimilars

Biocon Says -Have a lot of synergy together with Pfizer -Additional payments linked to markets, sales -Cannot quantify, but sizeable opportunity for both cos -Pfizer picking up stake in co 'speculative'

Pfizer Says -Partnership with Biocon 'significant' -Step I with Biocon is to sell product in 27 markets -Step II is to clear regulatory processes in Europe, US

Oil Secretary says -Incorrect that contractors do not have marketing freedom -USD 4.2/unit only for KG D6; not valid for other discoveries -ONGC/RIL cannot ask for higher price from marginal fields

Sesa Goa Q2 (cr - crore, vs - versus) -Consolidated net profit at Rs 385 cr vs Rs 166 cr ((Poll: Rs 401 cr)) Consolidated net sales at Rs 907 cr vs Rs 534 cr ((Poll: Rs 944 cr))

Essar Oil Q2 -Net profit at Rs 130 cr vs net loss of Rs 94 cr (YoY) -Revenue at Rs 12,415 cr vs Rs 11,144 cr (YoY) -GRM at USD 6.49/bbl vs USD 4.24/bbl (YoY) -Refinery throughput at 3.69 mt

Indiabulls Securities Q2 (QoQ) -Net profit at Rs 16.4 cr vs Rs 13.1 cr ((Vs Rs 22.8 cr YoY)) -Income from operations at Rs 85.8 cr vs Rs 76 cr ((Vs Rs 77 cr YoY))

ING Vysya Bank Q2 -NII at Rs 254.2 cr vs Rs 191.4 cr (YoY) -Net profit at Rs 75.3 cr vs Rs 53.5 cr (YoY) -NIM at 3.34% vs 3.28%

CRISIL Q2: -Consolidated net profit at Rs 75.4 cr vs Rs 43 cr (YoY) -Consolidated net sales at Rs 158 cr vs Rs 133 cr (YoY)

Biocon seals Rs 15.5 bn pact with Pfizer Bangalore-headquartered biotech firm Biocon has entered into a USD 350-million (Rs 15.5 billion) strategic alliance with drug-major Pfizer on Monday for marketing Biocon`s insulin products. The agreement includes the commercialization of Biocon`s biosimilar versions of insulin and insulin analog products: recombinant human insulin, glargine, aspart and lispro, Biocon said. The potential market for these four products, according to Kiran Mazumdar Shaw, chairman and MD of Biocon, would roughly be around USD 20 billion by 2015. Biocon hopes to combine the synergies of Pfizer`s marketing and distribution networks and its own cost-effective developing and manufacturing capabilities to grab a piece of the USD 14-billion biosimilar market.

IndusInd Bank tie-up with Russia`s Unistream for remittances Private-sector lender IndusInd Bank today said it has entered into a tie-up with Moscow-based commercial bank JCB Unistream for India bound remittances. ``Having established ourselves as a major player in remittances from the Middle East, we are now keen to reach out to non resident Indians across other major markets. This arrangement with Unistream will help up tap into India bound flows from Europe and the UK,`` IndusInd Bank SVP and head global remittances Amit Talwar said in a statement here. This tie-up will give remitters an option to send money from any branch of Unistream, towards direct credit into over 60,000 bank outlets in India, he said.

PNB JV gets RBI registration Punjab National Bank said on Monday the Reserve Bank of India has issued certificate of registration to the former`s non-banking joint venture (JV) firm India Factoring & Finance Solutions. The state-run lender had entered into JV agreement with three firms - FIM Bank (Malta), Banca IFIS, Italy and Blend Financial Services, Mumbai - on Nov. 4, 2009. The JV would provide factoring, forfaiting and trade finance solutions, the bank said in a statement.

Ranbaxy`s new sales drive fails to pay off Seven months after Ranbaxy kicked-off its aggressive plan to regain its position as the largest drug-seller in India by hiring 1,500 sales people in the biggest recruitment drive in 15 years, the drugmaker`s strategy does not appear to be paying off, at least for now. The country`s largest drugmaker by revenues has recorded the slowest domestic sales growth rate among its peers in the first seven months of this year, despite boosting its sales force by over 50% in January. It has also slipped to the third position, after US-based Abbott acquired Piramal Healthcare’s domestic formulation business in May to take the top position ahead of Cipla, as per the latest data by research firm IMS Health Information and Consulting Services India. However, Ranbaxy has said its actual sales are much higher than the figures of IMS Health.

GNRL plans expansion in oil exploration As part of the consolidation process in its oil exploration business, Ahmedabad-based Gujarat Natural Resources (GNRL), the erstwhile Lesha Energy Resources (LERL), is planning to infuse Rs 150 million for expansion. While the company had earmarked an investment of Rs 500 million for expansion, GNRL has already invested about Rs 350 million and intends to infuse the remaining amount in the next few months. Over a year old company in oil exploration, GNRL had acquired Hyderaba-based Sigma Oil and Gas (SOGPL), a 100% holding company of Bahamas-based Heramec for Rs 154.3 million. The acquisition allowed GNRL to gain access to oil and gas fields in Cambay Basin, where Heramec has 30% participating interest.

Emami to raise up to Rs 20 bn Meanwhile, Emami today cleared the deck for acquisitions worth up to Rs 50 billion. In a filing to the Bombay Stock Exchange, the company said its board had approved plans to raise long-term resources up to Rs 20 billion through the issue of securities. The board also gave its nod to increase the present borrowing limit to Rs 30 billion from Rs 15 billion. The company`s market capitalisation exceeded the Rs 50 billion mark earlier this year, according to its latest annual report, and turnover crossed the Rs 10 billion mark in 2009-10. The board`s green signal acquires significance, as Emami is on the lookout for potential mergers and acquisitions. Aditya Agarwal, a whole time director at Emami, confirmed it. ``If something happens, funds can be made available at the earliest. Otherwise, we have to send out notices, call a meeting, and then go about it, which takes times.`

RIL likely to bid for NELP-IX auction Reliance Industries has indicated that it may actively bid for oil and gas exploration blocks, including nine new areas, being auctioned by the Government. ``We continue to evaluate all opportunities. We are enthusiastic about all our existing acreage. We look forward to adding to India`s energy security,`` the RIL Chairman, Mukesh Ambani, told reporters at the roadshow to promote the ninth round of auction n under the New Exploration and Licensing Policy (NELP). The last date for bidding under this round is March 18, 2011. Out of 34 blocks being offered under NELP-IX, 19 blocks are new areas - seven are in deep sea, two in shallow waters and ten onland blocks. The rest 15 (one in deep water, five in shallow water and nine onland blocks) are recycled blocks.


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