Tuesday, November 9, 2010

Market Outlook: Indian markets are expected to open in a flat mood

Market Outlook: Indian markets are expected to open in a flat mood on the back of mixed sentiments on global counters. Overall trend is still intact up but we expect market could be sluggish and may find next support in the vicinity of 6240-6150 and resistance at 6357..

Results today: Hindalco, Tata Motors, Apollo Hospital, Briage ent, Divis Lab, Deccan Cem, Fin tech, GMR Infra, Hathaway cables, JHS Svengaard, LML, Opto circuits, Panacea Bio, United breweries Hldg

Global events to watch:

Þ Wholesale Trade

Þ Redbook

Þ ICSC-Goldman Store Sales

Global indices Update @ 8:

Dow Jones : 11406 (- 37.24)

NASDAQ : 2580 (+ 01.07)

Nikkei 225 : 9692 (- 40.33)

Hang seng : 24780 (- 184.2)

SGX CNX Nifty : 6294 (- 06.50)

INR / 1 USD : 44.26

Stocks in action for the day: SBI, IDFC, Hindalco, Tata Motors, HPCL, Hindustan Zinc, RIL, IOC.

SBI Q2: Net Profit: Up 0.45% from Rs 2490 cr to Rs 2501.47 cr(expectation of Rs 2971 cr) NII: Up 44.68% from Rs 5608.58 cr to Rs 8114.87 cr(expectation of Rs 7575.54 cr) NIM at 3.43% vs 2.55% YoY; vs 3.18% QoQ Other Income At `4,005 Cr Vs `3,524 Cr (YoY) Total Provisions At `2,621 Cr Vs `1,016 Cr (YoY) (provisions were expected at Rs 1900 cr) Gross NPAs At 3.35% As On September 30 Vs 2.99% (YoY) Net NPAs At 1.7% As On September 30 Vs 1.73% (YoY) Capital Adequacy Ratio At As On September 30 At 13.2% Provision Coverage Ratio At 62.78% As On September 30 Includes State Bank of Indore’s number from Aug 26 to Sept 30

SBI Says To Ramp Up Provision Coverage By 2-3% Every Quarter Made Additional `449 Cr As PA Provision Made `300 Cr Gratuity Provision Have The Highest NII In SBI History Q3 NIMs To Be more Than Q2 :: Interest Rates Biased Upwards In Short-term Q2 Saw Ballooning Of Restructured Assets As NPAs To Discuss Planned Rights Issue With Govt On Thursday

IDFC Q2FY11 NII: Rs 374 cr vs Rs 277 cr (expectation of Rs 367.76 cr) Non-interest income: Rs 267 cr vs 245 cr (Expectation of Rs 285 cr) Net Profit: Rs 339 cr vs Rs 291.84 cr (expectation of Rs 348 cr) Loan book grew by 56% YoY to Rs 34397 cr; up 19% QoQ Balance Sheet grew by 45.15% YoY & up 20.23% QoQ Exposure up 91.645 YoY & up 21.94% QoQ Non Interest Income split Q2FY11 Principal Investments: Rs 12 cr vs Rs 61 cr AMC: Rs 75 cr vs 69 cr Investment banking: Rs 74 cr vs Rs 63 cr

Oberoi realty (cons Q2) Net sales at Rs 170 cr vs 260.6 cr PAT at Rs 95.5 cr vs 149.5 cr

Venky's India Q2: Net Profit At `14.3 Cr Vs `8.4 Cr (YoY) Net Sales At `204 Cr Vs `162 Cr (YoY)

RIL`s telecom arm in talks to borrow USD 1.5 bn more: Reliance Industries` telecommunication arm, Infotel Broadband Services, is in negotiations to borrow an additional USD 1.5 billion for expenditure on rollout of operations and buying equipment, two people familiar with developments told ET. The company had raised USD 1.5 billion earlier this year in two tranches. Reliance Industries has said it would spend USD 4 billion to launch telecom services. A sizeable part of this has already gone into acquiring Infotel Broadband, originally part of the Himachal Futuristic Group, that had won licences to offer pan-India broadband services and into paying for spectrum fees. The money is likely to be raised at 6-7% or around 200-300 basis points over the London Interbank Offered Rate (Libor), that is the benchmark lending rate in Europe, one of the people said. ``The price discovery process is still on,`` he added.

3i India, partners invest Rs 12 bn in GVK Energy 3i India Infrastructure firm, along with its partners, has picked up 21.1% equity by investing Rs 12 billion in GVK Energy, a wholly-owned subsidiary of GVK Power and Infrastructure (GVKPIL). The fund will be used to expand the capacity of existing power projects. The transaction values GVK Energy at Rs 57 billion. ``The infra fund is committed to stay with us for 72 months. Of the total Rs 12 billion, 3i will put in direct equity for Rs 8 billion and the rest by its limited partner. However, they will have an exit option as we propose to launch an IPO for the subsidiary at the end of 60 months. It will be difficult to predict how much we plan to raise from the public offer,`` Isaac George, CFO, GVKPIL told ET.

IOC, HPCL hike prices of petrol Indian Oil Corporation, the nation`s largest fuel retailer, is likely to hike petrol prices by Rs 0.33 per litre tomorrow. IOC Chairman B M Bansal said international crude oil prices have risen since the last price revision, necessitating an increase in domestic retail prices. IOC is losing about Rs 1 on sales of every litre of petrol, as crude oil prices have climbed to USD 87 per barrel from USD 81-82 at the time of the last revision. Oil prices are near two-year highs partly on expectations that sluggish but sustained economic recovery in industrialised nations and rampant growth in Asia will fuel demand.

SAIL in talks with Railways to foray into track-laying business The Steel Authority of India (SAIL), the country`s largest state-owned steel company, is eyeing the possibility of entering a whole new business of track laying and renewal. The steel major has initiated a dialogue with Indian Railways on this in the hope of tapping into a growing business in the near future. ``We have an ongoing partnership with the Railways since we have been supplying rails from our Bhilai Steel Plant for a number of years. The upcoming Dedicated Freight Corridor project of the Railways also offers a whole new opportunity for us. Our discussions with Railways on the tracks business is at a conceptual stage. We are exploring ways to expand our existing relationship with them in a big way,`` SAIL chairman CS Verma said.

Tatas seek land for aerospace unit at Hyderabad THE Tata Group is planning a major investment in Andhra Pradesh in the defence sector. Nova Integrated Systems, the group`s joint venture with Israel Aerospace Industry (IAI), has sought about 75 acres of land at Ibrahimpatnam near Hyderabad to develop advanced technology systems for the country’s defence sector. ``The facility will be used for manufacturing and assembling micro unmanned aerial vehicle (UAVs) and other highly advanced aerospace related equipment for the Indian defence sector. We expect to start work for the facility next year,`` said BP Acharya, principal secretary, industries & commerce. Nova Integrated Systems, a 76:24 joint venture between IAI and Tata Group under its subsidiary Tata Advanced Systems (TAS), is looking at an initial investment of around USD 200 million, of which USD 50 million will come from IAI.

Tata Steel strives to empower PRIs As a part of its efforts to empower members of Panchayati Raj Institutions (PRIs) in Orissa, Tata Steel had recently organized a two-day training programme for PRI members at the Gandhi Labour Foundation in Puri. This was the second consecutive year that these empowerment-cum-exposure visits are being organized by Tata Steel for the PRI members. The idea behind the initiative is to improve public welfare and ensure participation of stakeholders in various developmental interventions that are undertaken by the Company in its operational areas. The workshop was attended by 14 PRI members including Nihar Mehta, the chairperson of Gandhi Labour Foundation, and P K Banerjee (Trustee), among others.

Ashok Leyland ties up with Himachal Gramin Bank Hinduja Group flagship firm Ashok Leyland today said it has tied up with Himachal Gramin Bank to provide customers with finance options for buying commercial vehicles. Ashok Leyland and Himachal Gramin Bank (HGB) executed a Memorandum of Understanding (MoU) on Friday in Mandi, Himachal Pradesh, which offers Ashok Leyland customers very attractive terms for financing commercial vehicles, Ashok Leyland said in a statement. ``Ashok Leyland`s competitively priced, state of the art product range designed to suit specific applications, provides our customers a winning solution to their transportation needs,`` Ashok Leyland Head (Sales Financing), Srinivasan Anand said.

Sources Say HPCL Hikes Petrol Prices By Around 31 Paise/L

Hindalco: Disruption of production in Smelter-3, will cause loss of cathode production of around 8000MT; covered by insurance

Hindustan Zinc cuts zinc price by `2,200/t to `1.25 lakh

JVL Agro: ex split 10:1

Securities in F&O ban: Core Projects, Essar Oil, Kingfisher, KS oils, Orchid chem., Rel media

Banks back converting airline debt into bonds, repayment tenure to be extended to 12 years – FE


No comments: