Monday, October 25, 2010

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

Market Outlook: Indian markets are expected to open with a positive sign taking constructive cues from the global counter. The crucial support on the downside for the Nifty is 6000 and resistance at 6160.

Results today: HUL, Idea, Adani power, Amara Raja, Asian Hotels (East), Crompton Greaves, EID Parry, GIC Housing, HOEC, Mundra Port, Petronet LNG, REC, Rolta, Tata Coffee, Titan, United Bank, Aventis Pharma

Global events to watch:

Þ Existing Home Sales

Þ Bill Auction

Global indices Update @ 8:

Dow Jones : 11132 (- 14.01)

NASDAQ : 2479 (+19.72)

Nikkei 225 : 9339 (- 26.91

Hang seng : 23691 (+173.8)

SGX CNX Nifty : 6106 (+19.50)

INR / 1 USD : 44.46

Stocks in action for the day: Orrisa Minerals, Lloyds Steel, Piramal, SKS, Sesa Goa, R-Power, TCS...

Diwali gift: Retail investors to be allowed Rs 2 lakh in IPO: Retail investors will get to double their bets on initial public offerings as the market regulator is set to raise the limit to Rs 2 lakh, the first revision in five years, as it attempts to keep pace with the eroding value of the rupee. The proposal, likely to be approved by the board of the Securities & Exchange Board of India today.

Piramal Healthcare to buy back up to 20-per cent equity at Rs600 per share: Piramal Healthcare Limited which completed the sale of stake in its domestic formulations business and its shareholding in Piramal Diagnostic Services Pvt Ltd on Friday proposed a buyback of 20 per cent of its outstanding shares at Rs600 apiece as a measure of rewarding shareholders. The company has proposed to buy back a maximum of 41.8 million shares (about 20 per cent of the total) at a price of Rs600 per equity share, a 19-per cent premium to the average share price for the last three months. The buyback, estimated to cost Rs2,510 crore, will be completed by February 2011.

Piramal Health Q2 (cr - crore, vs - versus, cons - consolidated) -Consolidated net sales at Rs 752 cr vs Rs 999.99 cr (YoY) -Consolidated net profit at Rs 12,540 cr vs Rs 106.3 cr (YoY) -Net profit includes sale of assets to Abbott -One-time gain of Rs 16,224 crore

Dr Reddy's Q2 (IFRS): -Cons net profit at Rs 287 cr vs Rs 217.3 cr (YoY) -Cons net sales at Rs 1,870 cr vs Rs 1,840 cr (YoY) -EBIDTA up 12% at Rs 420 cr (YoY)

Oil Secretary says -OMCs should declare good Q2 results -ONGC wants Cairn to seek permission, ONGC has not heard back from cairn energy yet

Gujarat NRE Coke to issue guarantee for USD 200 million for borrowings of Gujarat NRE Coking Coal, an Australian subsidiary

SKS MicroFinance Q2 -Net profit at Rs 80 cr vs Rs 37 cr -Total income at Rs 366 cr vs Rs 207 cr (YoY)

TCS looking for medium-size European company` India`s largest software firm Tata Consultancy Services (TCS) has been looking for acquisitions in Europe, but it is yet to find one that is a suitable fit, according to its CEO N Chandrasekaran. The company, which surprised the street last week by notching USD 2 billion in revenues and a 30%-plus growth in net profit for the second quarter of FY11, wants to broad base growth by expanding in markets such as China, where it already has a joint venture with the Chinese government, and increasing penetration in Europe. ``We are looking for a medium-size company with a strong market presence in countries such as Germany and France. The acquisition has to be a mutual fit,`` Chandrasekaran told ET in an exclusive interview. Recovery in Europe is still slow, he said. Cultural fit is one of the criteria the company will look for in continental Europe, which contributes close to 10% of its revenues.

RPG Life looks abroad for marketing tie-ups With a view to pushing its bulk drugs and immuno-suppressant products overseas, RPG Life Sciences is eyeing marketing and distribution tie-ups with foreign companies, a top company official said. The RPG Group company is eyeing the European market for its bulk drugs and immuno-suppressants, RPG Life Sciences` managing director, Ajit Singh Chouhan told PTI here on Sunday. ``We have just inked a co-operation pact with Poland`s Polpharma, to develop and manufacture Active Pharmaceutical Ingredients (APIs) and in the management of the supply chain of select high-value APIs like clopidogrel bisulphate,`` Chouhan said.

ONGC`s first commercial power project to start next year The state-owned Oil and Natural Gas Corporation`s (ONGC) first ever 726 MW commercial power project would start generating electricity next year, officials said here on Sunday. ``The first unit (363 MW) of the 726 MW power plant would start producing electricity December next year,`` said Sudhindra Kumar Dube, managing director of the ONGC Tripura Power Co (OTPC), a new company formed for commissioning the project. The ONGC`s biggest power project is being commissioned in Palatana, about 60 km south of here, at a cost of Rs 90 billion. ``The power project would fully start generating 726 MW power by March 2012,`` Dube, accompanied by BHEL (Bharat Heavy Electricals) chairman B.P. Rao, said.

Essar in talks to set up 3 L bpd refinery in Egypt Diversified conglomerate, the Essar Group, has expressed its interest to set up an oil refinery in northern Egypt at an estimated cost of about USD 3.4 billion and talks are on to conduct a feasibility study soon, a senior Egyptian minister has said. ``The company (Essar) has shown its interest in this regard (setting up an oil refinery in northern Egypt). Our Ministry has met with their officials here. We are negotiating on certain points and talks are on. However, we haven`t reached a conclusion so far,`` Egypt`s Minister of Trade and Industry, Rachid Mohamed Rachid, said while addressing a media round-table in Cairo.

Sesa Goa plans Rs 300 bn foray into steel space Vedanta Group firm Sesa Goa is planning an investment of over Rs 300 billion in the steel space in Orissa and Jharkhand and may rope in a global company to jointly run the ventures, the company said today. ``We have written to the Orissa government for transferring a MoU signed with Vedanta group firm Sterlite Industries to our name, as anything in iron ore and steel space in the group will have to be undertaken by Sesa Goa. The MoU is for a five-million tonne plant in Orissa,`` Sesa Goa Managing Director P K Mukherjee said. ``Similarly, we are looking to complete land acquisition for a 1-1.5-million tonnes steel plant in Jharkhand by the end of this fiscal. For steel plants, we will enter into technical collaboration,`` Mukherjee added. He, however, did not give a timeframe within which the company planned to start the venture.

Ashok Leyland scouts for acquisitions in Latin America As part of expanding its global footprint, Ashok Leyland, a Hinduja Group company, has said it was scouting for acquisition opportunities, mainly in the bus segment, in Latin America, North Africa and parts of Southeast Asia. Dheeraj G Hinduja, 39, who took over as the new chairman of Ashok Leyland last week, said ``the company should be among the global top 10 in commercial vehicles and top five in buses, within a time span of five years``. A third-generation member of the Hinduja family, he said he would not participate in day-to-day activities. His focus would be on a strategy for the company, merger and acquisitions, and creating a talent pool and leadership skill.

R-Power gives Samalkot power equipment order to GE Anil Ambani`s Reliance Power (R-Power) has placed an order with US-based power equipment maker GE Energy for its 2,400 Mw gas-based project planned at Samalkot in Andhra Pradesh. This is the largest order for GE Energy in India. In addition to supply of equipment, comprising six gas turbines, three steam turbines and generators, GE will be providing maintenance services. All the six gas turbines are scheduled to be commissioned before March 2012, said a company statement. It did not disclose the size of the order. ``We are confident of creating a new record for project execution and are hopeful of commissioning the project on a super-fast-track basis, substantially adding to capacity addition in the 11th Plan,`` said J P Chalasani, CEO, R-Power.

Wipro consumer arm eyes firms in emerging markets The consumer arm of Bangalore-based Wipro has identified the developing markets of Asia, Africa and West Asia as areas to scout for acquisitions, says Vineet Agarwal, president of the division. In the past six years, Wipro Consumer Care & Lighting (WCCL), whose revenues contribute 9% to the parent`s overall turnover, has wrapped up buyouts mainly in India. It began with energy drink Glucovita in 2003, followed by Chandrika soap in 2004 and North-West Switches (from Delhi-based North-West Switchgear) in 2006. Its Unza buyout in Indonesia in 2007 and Yardley buyout in 2009 have been the only two international acquisitions so far.

Maruti plans to add 1,500 service outlets The country`s largest car maker Maruti Suzuki India is planning to ramp up its service centres by a massive 1,500 outlets by 2015 in line with its expansion of production capacity to over 17 lakh units annually. This enhancement is expected to result in additional employment of about 22,000 people by the service network operators. ``We expect service load at our network multiply manifold, as Maruti Suzuki scales up capacity to 1.7 million units in coming years,`` Maruti Suzuki India (MSI) Executive Officer (Service), Pankaj Narula said. The company currently has 2,784 service points and it is planning to increase it to over 4,200 outlets in the next five years, a jump of more than 50%.

BHEL flags off gas compressor for HPCL Mittal Energy unit BHEL, Ramchandrapuram, has dispatched a recycle gas compressor train for CCR unit to Guru Gobind Singh Refinery, Bhathinda today. The Hydrogen recycle gas compressor was flagged off by Prabh Das, CEO, HPCL Mittal Energy, in the presence of R. Krishnan, Executive Director, and other senior officials of BHEL. The company is executing an order from HPCL Mittal Energy for supply of three steam turbine driven compressors for its Guru Gobind Singh Refinery Project at Bhathinda, Punjab. The total value of the project is estimated at Rs 799 million. The compressor was earlier successfully tested for hydraulic, mechanical and gas-leak test according to international standard of American Petroleum Institute, a BHEL release said.

Bharat Forge Q2 Standalone -Revenues up 68.4% at Rs 718.6 cr vs Rs 426.6 cr -PAT up 2.5X at Rs 68.1 cr vs Rs 26.8 cr -OPM at 24.2% vs 23.7% Bharat Forge Q2 consolidated (including all subsidiaries other than China) -Revenues at Rs 1111 cr vs Rs 710.7 cr -PAT at Rs 60.6 cr vs net loss of Rs 40.7 cr -Losses from subsidiaries increased to Rs 7 cr vs Rs 3 cr QoQ

RCF Q2: -Net profit at Rs 60.9 cr vs Rs 56.1 cr (YoY) -Net sales at Rs 1,562.9 cr vs Rs 1,792 cr (YoY)

Bank Of Maharashtra Q2: -NII at Rs 461.1 cr vs Rs 275.8 cr (YoY) -Net profit at Rs 52.3 cr vs Rs 86.7 cr (YoY)

Redington Q2:-Cons net profit at Rs 49.3 cr vs Rs 47.8 cr (QoQ) -Cons net sales at Rs 3,887.4 cr vs Rs 3,527.4 cr (QoQ)

DB Corp -Cons net profit at Rs 55.1 cr vs Rs 44 cr (YoY) -Cons total revenue at Rs 301 cr vs Rs 262 cr (YoY)

Mangalam Cement -Net sales at Rs 115.7 cr vs Rs 165.8 cr -PAT at Rs 0.85 cr vs Rs 35.4 cr

Andhra Sugar -Net sales at Rs 107 cr vs Rs 132 cr -PAT at Rs 5.4 cr vs Rs 15.8 cr

Edelweiss Q2 cons (YoY) ((Interest costs eat up most of the improved topline)) -Net profit at Rs 66.1 cr vs Rs 65.1 cr -Income from operations at Rs 375 cr vs Rs 261 cr -OPM at 59.5% vs 61% -Interest cost at Rs 121.5 cr vs Rs 60 cr Edelweiss Q2 cons (QoQ) -Net profit at Rs 66.1 cr vs Rs 65.5 cr -Income from operations at Rs 375 cr vs Rs 279 cr -OPM at 59.5% vs 59.4% -Interest cost at Rs 121.5 cr vs Rs 77.6 cr

Binani Industries -Net sales at Rs 5.7 cr vs Rs 3.9 cr -Loss at Rs 5.8 cr vs loss of 3.7 cr

Binani Cement -Net sales at Rs 777 cr vs Rs 958 cr -PAT at Rs 44 cr vs Rs 208 cr

Thomas cook -Net sales at Rs 90 cr vs Rs 72 cr -PAT at Rs 22 cr vs Rs 12 cr

Simbhaoli Sugar: approves fund raising - 15 lakh equity shares + 25 lakh warrants on preferential basis

Microfinance to get a regulator in Nabard – ET (FinMin could move the bill in winter session)

Singh Brothers may buyout Piramal Healthcare’s 10% stake in SLR (Super Religare Labs) – ET

RBI wants lock-in period for FDI In Hotels, Tourism – VS

Ashok Leyland scouts for acquisition in Latin America – BS

Lloyds Steel open offer at Rs 13.95/sh ((CMP: 12.54))

Areva T&D open offer likely at Rs 311/sh – DNA ((CMP: 296))

Orrisa Minerals, Rio Tinto in JV talks – DNA

Centre may open sugar exports window for extra 10 lakh tonnes – BL

Alert: EID parry to also consider stock split


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