Wednesday, October 20, 2010

Market Outlook: Indian markets are expected to take negative turn

Market Outlook: Indian markets are expected to take negative turn on sentiment global cues. Overall the trend is still intact and we could see some more sideways action in the days to come, stiff resistance is around 6160-6200 zones. The crucial support on the downside for the Nifty is 5930 and resistance at 6160.

Results today: HCL Tech, Kotak Mahindra Bank, Ashok Leyland, Bombay Dyeing, Canara Bank, Hindustan Zinc, Indiabulls Power, Indiabulls Realty, Jubilant Organosys, Mahindra Lifespace, Motilal Oswal, Pidilite, Yes Bank

Global events to watch:

Þ Bank Reserve Settlement

Þ Petroleum Status Report

Global indices Update @ 8:

Dow Jones : 10978 (- 165.07)

NASDAQ : 2436 (- 43.71)

Nikkei 225 : 9331 (- 207.59)

Hang seng : 23307 (- 456.15)

SGX CNX Nifty : 5991 (- 34.50)

INR / 1 USD : 44.46

Stocks in action for the day: NMDC, GTL Infra, Crisil, Alok Ind, MindTree, Cairn, Ashok Leyland, Natco...

Oberoi Realty may list at discount: Mumbai based real estate company Oberoi Realty will list its equity shares on exchanges on October 20, 2010. It has fixed an IPO price at Rs 260 a share, at the higher end of price band of Rs 253-260 a share.

Coal India IPO fully subscribed: The initial public offer (IPO) of India's largest coal producing company Coal India (CIL) has been fully subscribed on the second day itself on the back of good response from qualified institutional investors. The issue has been subscribed 1.71 times, as per the NSE website updated as on 19 October 2010 at 5 pm. The reserved portion of QIBs got subscribed 3.39 times. Retail and non-institutional investors' portion subscribed just 0.35 times and 0.54 times, respectively

NSE to introduce F&O contracts in 23 securities from October 29: Tata Motors DVR, 3i Info, Alok Ind, Bajaj Holdings, Bata, Bombay Dyeing, Central Bank, DCB, Escorts, Havells, HOEC, IGL, IndusInd Bank, IRB Infra, Jet Airways, Karnataka Bank, Max India, MRF, Oil India, S Kumars, Srei Infra, Sterlite Tech, TVS Motor

HDFC Bank Q2FY11 ((ADR down 4%)): -NII: up 29.17% from Rs 1955.76 crore to Rs 2526.28 crore (expectation of Rs 2506.12 crore) -Net Profit: Up 32.68% from Rs 687.46 crore to Rs 912.14 crore (expectation of Rs 908.44 crore) -NIMs at 4.2% versus 4.3% in Q1 -Other Income: Down 4.6% from Rs 1007.4 crore to Rs 960.7 crore -Fee Income: Up 16% to Rs 857 crore -Treasury loss of Rs 52.1 crore versus gain of Rs 162.9 crore Provisions: Rs 454.48 crore versus Rs 594.14 crore -Advances grew by 37.7%; Deposits by 40.4% CASA at 50.6% versus 50%

MindTree Q2FY11(QoQ) : -Revenue grows 7% QoQ to USD 82.4 million (expectation was USD 81.7 million) Rupee Revenues up 10.2% to Rs 384.4 crore (expectation Rs 375.6 crore) -EBIDTA margin at 12.09% versus 12.66% (expectation 12.13%) -Net profit up 47% to 23.3 crore (expectation of Rs 27 crore) IT Services revenues grew by 12.9% QoQ

Coromandel Int Q2 -Revenue up 63% to Rs 2773 crore versus Rs 1694 crore -OPM 19% versus 18.8% PAT Rs 350 crore versus Rs 187 crore, up 87% -Stock split from Rs 2 to Re 1

Madras Fertiliser Q2 -Net loss at Rs 32 crore versus profit of Rs 161 crore -Net sales at Rs 252 crore versus Rs 324 crore -Operating loss of Rs 9 crore versus profit of Rs 27 crore

Bajaj Holdings & Invst Q2: -Income from operations Rs 608 crore versus Rs 308 crore -Profit on sale of Investments Rs 374 crore versus Rs 180 crore -Net profit Rs 590 crore versus Rs 299 crore

Cairn-Vedanta deal concerns may not hit foreign cos` Nelp bids`: Foreign oil majors, such as Shell, will not put off bidding for oil and gas exploration blocks auctioned by India despite concerns over the government`s handling of the Cairn-Vedanta deal, the head of the company`s Indian arm said. India has invited bids for blocks under the latest round of the New Exploration Licensing Policy (Nelp), hoping the new offer would help replicate the success of Reliance Industries that discovered a giant deep-sea field and Cairn India, which found oil in Rajasthan. But some industry experts say the delay in approvals for Cairn`s USD 9.6-billion deal to sell stake in Indian assets to London-listed Vedanta may put off potential investors, although petroleum secretary S Sundareshan told ET this month the oil ministry was not an obstacle.

Dheeraj Hinduja to take driver`s seat as chairman at Ashok Leyland Dheeraj Hinduja, the son of Gopichand Hinduja, the second of the four brothers who have built the Hinduja Group, is set to become the chairman of Ashok Leyland replacing the current incumbent RJ Shahaney. The Ashok Leyland board, which is meeting on Wednesday to declare its quarterly results, is expected to ratify the appointment of the younger Hinduja, as the third generation of the family takes over the reins of the conglomerate run by their fathers and uncles, according to people familiar with the matter. Dheeraj Hinduja`s immediate focus will be to monitor the company`s proposed foray into the small car segment and expansion of its commercial vehicle business in a joint venture with Nissan. Ashok Leyland, India`s second-largest maker of commercial vehicles, is the group`s flagship in this country. London-based Dheeraj, 38, has been actively involved in the business since 1993-94 and he has a director of Ashok Leyland since 1996.

Natco faces patent suit from Celgene over cancer drug Natco Pharma has said that American pharma company Celgene Corporation has filed a lawsuit against it in the US seeking to prevent the company from marketing generic Lenalidomide capsules used to treat cancer. Natco had filed an ANDA with the US Food and Drug Administration (USFDA) seeking approval to market generic Lenalidomide capsules (branded as Revlimid), the patent for which is held by the American firm, in strengths of 5 mg, 10 mg, 15 mg and 25 mg. Celgene had filed the lawsuit on October 8 to prevent Natco from commercialising the drug before the expiration of the patent, Natco Pharma said in a filing to the Bombay Stock Exchange. It, however, did not specify when the patent would expire.

Shree Ganesh Jewel Q2 -Net profit at Rs 64 crore -Net sales at Rs 1349 crore

Concor Q2 -Net profit at Rs 207 crore versus Rs 204 crore -Net sales at Rs 944 crore versus Rs 956 crore

Piramal Healthcare board meet on October 22 to mull dividend and/or buyback

Alok Ind board meet on October 28 to mull merger with Grabal Alok Impex (Listed company))

Indian ADRs: Tata Comm down 5.4%, HDFC Bank down 4%

Crisil announces buy back at maximum at Rs 6500/share, offer opens of November 3 ((CMP: 6141))

Premji to launch USD 1 billion endowment fund – ET

Dheeraj Hinduja set to be chairman of Ashok Leyland today – ET

GTL Infra, Quippo Tele in race to buy tower assets of Saudi Telecom Co – BS

Indiabulls group puts retail plans on back bunker – BS

NMDC in talks to acquire Russian Mines for $400m – DNA

Vodafone ready to buy essar stake – TOI

Center to give OMC Rs 10,000 crore to make up part of fuel losses – BL


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