Wednesday, November 10, 2010

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

Market Outlook: Indian markets are expected to open in a flat to negative note on the back of mixed sentiments on global counters. Overall trend is still intact up with support in the vicinity of 6250 and resistance at 6380.

Results today: Bharti Airtel, BPCL, Britannia Industries, DLF, Great Offshore, Gujarat Industries, Nagarjuna Construction, Power Finance, Alphageo, C&C Construction, Eros International, Hanung Toys, Kesoram Industries, Maytas Infra, Noida Toll, Nitesh Estates, Provogue India, Ruchi Soya, Sonata Software.

Global events to watch:

Þ Jobless Claims

Þ MBA Purchase Applications

Þ International Trade

Global indices Update @ 8:

Dow Jones : 11346 (- 60.09)

NASDAQ : 2562 (- 17.07)

Nikkei 225 : 9807 (+113.1)

Hang seng : 24780 (- 173.1)

SGX CNX Nifty : 6306 (- 38.50)

INR / 1 USD : 44.40

Stocks in action for the day: Power Grid, ONGC, Coal India, Tata Global, ICICI Bank, Tata Motors, Hathaway, Bharti, Cairn...

Power Grid FPO: The follow-on public offer (FPO) of India's biggest inter-state transmission company Power Grid Corp has opened for subscription today. A price band for 84,17,68,246 equity shares FPO is set at Rs 85-90 per share. The issue was subscribed 1.08 times, at 05.00 pm, sources: NSE. Non Institutional Investors (NIIs) reserved portion got yet not subscribed. Qualified institutional investors (QIB)and retails subscribed with 0.50 times & 0.06 times, respectively

ONGC blocks USD 500 million payments to Cairn Cairn Energy, struggling to get approval for its USD 9.6-billion deal to sell its Indian unit to Vedanta Resources, is getting mired in more problems as its day-to-day operations and expansion plans are suffering in the wake of simmering tensions with the oil ministry and state-owned partner Oil and Natural Gas Corp (ONGC). ONGC, which is the licensee and a 30% owner in the oil-rich Rajasthan block operated by Cairn, has held back USD 500 million to Cairn India alleging that the expenditure had been inflated, a director in the company, who did not want to be named because of the sensitivity of the matter, said.

Coal India bids for Colombian coal assets: The world's largest coal producer Coal India is learnt to have placed a bid for Colombian assets of US-based Drummond Co, as the PSU looks to buyout mines overseas as part of its Rs 6,000 crore global acquisition plan. At present, the company has shortlisted US firms Massey Energy and Peabody Energy, besides Indonesian Novem/Sinarma, for a possible partnership for their respective mines in Australia, Indonesia and the US. In another arrangement, CIL shortlisted Peabody Energy and 11 others as possible partners for sourcing coal to India. The company, which has plans to import six million tonnes of coal this fiscal for local firms, has targeted to produce 461.5 million tonnes of the fuel this fiscal as against 431.5 million tonnes last fiscal.

Crisis-hit SKS Microfinance cuts rates further SKS Microfinance, India`s largest microfinance company, on Tuesday cut interest rates for the second time in just over a month and warned that its profitability will be impacted due to the ordinance issued by the Andhra Pradesh government last month to regulate the money lending operations of all MFIs. Vikram Akula, the executive chairman of the company, had announced his decision to slash interest rates from 31.08% (inclusive of insurance and registration charges) to an all inclusive 24.55% immediately after the ordinance was passed. The company now says it will levy 24% in all states where it has operations.

Tata Global to raise USD 200 mn from stake sale in Tetley The world`s second-largest branded tea maker Tata Global Beverages (TGB) is planning to raise USD 200 million from private equity investors by selling a stake in its UK arm. The company is being advised by investment banking firm Rothschild, said two people familiar with the development. ``TGB has given a mandate to Rothschild to unlock value from its subsidiaries globally though restructuring and stake sales,`` said one of the two people. ``As the first step, its UK subsidiary Tetley could sell a minority stake of around 12% to private equity players.`` UK-based Tetley was acquired by TGB (earlier known as Tata Tea) for USD 407 million in 2000 and now contributes over two-third of the group`s total turnover. At present, Tetley enjoys more than 35% market share in its home market and the brand is sold in over 40 countries.

Cairn to spend Rs 650 mn on drilling additional wells Cairn India, the operator of the offshore Ravva field in east India, plans to spend Rs 650 million to drill additional wells to boost production from the current level of 35,000 barrels of oil equivalent per day (boepd). The company has obtained official approval to drill five additional wells to help it extract a total of 70-80 million barrels of hydrocarbons, although it is not in a position to say how many additional barrels of day it would pump, a person close to the company said. Cairn India’s spokesman declined comment. The company will drill new wells between the existing wells to maximise output and improve recovery rate from the field. Cairn is the operator at Ravva with a 22.5% participating interest. ONGC carries a 40% stake and Videocon has a 25% participating stake, while Marubeni-owned Ravva Oil (Singapore) owns another 12.5% in the field.

Power Grid to shutdown JV with IL&FS Power Grid Corporation of India on Tuesday said it has decided to shutdown its 50:50 joint venture power transmission consultancy businesses with IL&FS. ``We have decided to make Powergrid IL&FS Transmission Private (PIPTL) a defunct company and have already filed an application with the RoC to allow us to declare it as a defunct company,`` PGCIL Director I S Jha said when asked. Declining to be identified, sources said the company, which is the third largest transmission company in the country, did not find the expertise provided by IL&FS to the consultancy business up to the mark and accordingly, decided to end the JV. PIPTL was formed just two years ago, in 2008.

GMDC floats EoI to set up mineral based projects in Gujarat State PSU Gujarat Mineral Development Corporation (GMDC) has invited Expression of Interest (EoI) for setting up slew of mineral based projects in Gujarat, including cement plants in Kutch and Surat. The EoIs floated by the state PSU call for investment of between Rs 20 to 40 billion. The various projects are aimed at value addition to minerals like limestone, bauxite and silica sand which are currently sold as base minerals by the GMDC.

Himatsingka may raise up to Rs 1.5 bn Himatsingka Seide (HSL), the Bangalore-based home textiles company, is planning to raise up to Rs 1.5 billion to fund its expansion programme. The company`s board is meeting here on November 11 to take a decision on the ways and means to raise the money, a top company official said. ``We are taking up the second phase expansion programme later this year which involves a capital expenditure of close to Rs 1.5 billion. To meet this fund requirement we are seeking board approval to raise the money,`` Shrikant Himatsingka, executive director, HSL, said.

IVRCL Assets plans Rs 600-cr QIP, stake sale: Hyderabad-headquartered IVRCL Assets and Holdings may sell up to 49% stake in three of its road projects to garner funds for future projects and raise Rs600 crore through qualified institutional placement (QIP) of shares by March. “At the parent level, we plan to raise funds through qualified institutional placement and sale of land. Simultaneously, we are also looking at selling stake in our special purpose vehicles (SPVs) such that we have sufficient funds for future projects,” S Ramachandran, a director in-charge of business development and corporate strategy at IVRCL Infrastructure and Projects, told ET. QIP refers to sale of shares to financial investors such as pension and mutual funds. Retail investors are excluded from such share sales.

'Golmaal 3' earns Rs 70 crore in initial weekend: Rohit Shetty-directed laugh riot "Golmaal 3" has hit the jackpot this Diwali by earning Rs.70 crore worldwide in its initial weekend. Produced by Shri Ashtavinayak Cine Vision Ltd and distributed by Eros International , the third instalment in the "Golmaal" franchise triumphed at the box office with a gross collection of Rs.60 crore in India and Rs.10 crore overseas, in its first three days of screening. The movie opened across 2,000 plus screens worldwide.

Hathaway Cables Q2 -Net sales at 112.7 crore versus Rs 95.7 crore -Profit at Rs 4 crore versus loss of Rs 13.9 crore -EBITDA at Rs 35.6 crore versus Rs 14.1 crore

Mannapuram Finance - CNBC-TV18 exclusive – Sources -Mannapuram Finance QIP book launches -Mannapuram Finance plans to raise Rs 675-1,000 crore via QIP -Enam, CLSA, BoA ML, UBS bankers to issue -Mannapuram Finance QIP price band at Rs 163-168/share

Tata Motors Q2 -Consolidated net profit at Rs 2,223 crore versus Rs 21.78 crore (YoY) -Consolidated net sales at Rs 28,573 crore versus Rs 20,878 crore (YoY) -Raw material cost at Rs 17,016 crore versus Rs 12,661 crore YoY) -Staff cost at Rs 2,274 crore versus Rs 2,298 crore (YoY) -Total costs at Rs 25,875 crore versus Rs 20,431 crore (YoY) -Other income at Rs 19.54 crore versus Rs 407 crore (YoY) -Net interest cost at Rs 531 crore versus Rs 559 crore (YoY) -Forex gain at Rs 128 crore versus Rs 163 crore (YoY)

Tata Motors says: -JLR Q2 net profit at Rs 1,715 crore -JLR Q2 volumes up on improved market conditions -JLR Q2 EBITDA margins at 16.6% -JLR Q2 China volume sales 5,801 units, up 52% -Debt-to-equity ratio at 1.16:1 as On September 30 -Cash reserves at Rs 9,000 crore as on September 30

Tata Motors says -Total consolidated net debt at Rs 26,000 crore as on September 30 -JLR working to resolve engine constraints from Ford -JLR yearly capex between 800 million -1 billion pounds -LCV units in Dharwad to come up in 12-18 months -Not ruling out further product price hikes -May assemble Jaguar in India in 'market prepared' -To assemble Land Rover in India early 2011 -No fund raising plans as of now -Have delivered 70,000 Nanos since July 2009

Deepak Parekh says: -FDI hike a pre-requisite for listing HDFC Life -Hope that Insurance Bill is passed early next year -New insurance guidelines were necessary -Insurance industry was mis-selling products-Till now, insurance commissions were too high -Wish regulatory changes came in stages

ICICI Bank -Re-introduces special home loan scheme for all customers -To offer 8.5% for 1st year, 9.25% for 2nd year, floating thereafter -To sanction new loans till November 30

Ex-date for RNRL (Reliance Power merger)

Sterling Holiday Resort open offer opens on November 10, closes on November 29, open offer at Rs 36.35/sh (CMP 102)

Everonn Education open offer price stands revised to Rs 587.01/sh from Rs 560/sh, open offer closes on November 27 (CMP 654)

Vardhman Poly defers issue of warrants/equity shares to financial investors as the board could not be held for want of quorum

Edserv Soft board meets in November 10 to consider the issue of Equity Shares / Warrants / Convertible Debentures or such other securities on preferential basis

Redington India ties up with ACER for mobile handset phones

JMC Projects board approves issues of 43.5 lakh shares to Kalpataru Power (Promoter of the company) at Rs 207/share

AV Birla Nuvo eyes carbon black division of Germany’s Evonik, deal size seen at USD 1.25 billion

Tata DoCoMo unveils aggressive 3G tariffs

Tata Global Beverages in talks with PE Players to raise funds by diluting minority stake – BS (Also looking to raise USD 200 million buy selling stake in Tetley – ET)


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