Friday, November 12, 2010

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

Market Outlook: Indian markets are expected to open with a negative note following cues from global counters. We may witness some more profit booking attempts in stocks that have run-up sharply in past month or so. The crucial level of support is near 6125 while resistance is near 6220.

Wall St end down on Europe woes, G-20 meeting, dollar gain: The US markets ended down on back of rumblings from Europe, G-20 meeting, strengthen in dollar (was up 0.6%; up 1.5% versus Euro) and disappointing guidance from Cisco (down 16.2%). G-20 Update: Sharp divergence in views among member nations, slim chance of major accord on currency & trade imbalance. Alert: G-20 leaders to hold summit talks on Friday.

Results Today: Reliance Infrastructure, Reliance Power, Tata Power, Tata Steel, BEML, HPCL, India Cements, Educomp, Gammon India, Oil India, IGL, ISPAT, Parsvnath, Wockhardt

Global events to watch:

Þ Consumer Sentiment

Þ Fed Balance Sheet

Global indices Update @ 8:

Dow Jones : 11283 (- 73.94)

NASDAQ : 2555 (- 23.26)

Nikkei 225 : 9781 (- 80.14)

Hang seng : 24429 (- 270.3)

SGX CNX Nifty : 6195 (- 42.00)

INR / 1 USD : 44.25

Stocks in action for the day: Cipla, Tata Steel, Rel Power, Sun Pharma, HDIL, SAIL...

Tata Steel to raise USD 1 bn in December Tata Steel plans to raise USD 1 billion in December selling shares with differential voting rights, or DVRs, the second from the group after Tata Motors, said two people familiar with the plans. The nation`s largest private sector steel-maker will use the funds to cut debt raised to refinance the acquisition of Angld-Dutch steel maker Corus Group Plc. This will be the at least the third fund raising by the steelmaker. These shares may be priced about 20% lower than the current Rs 631 apiece on the Bombay Stock Exhcange on Thursday.

Union Bank to raise USD 200 million overseas in 1 month: State-owned Union Bank of India today said it plans to raise USD 200 million (about Rs 9 billion) from the overseas market in the next one month through a bond issue. ``We are planning to raise another USD 175-200 million in the next one month`s time through bonds,`` Union Bank of India Managing Director M V Nair said here. The funds raised would be utilised for funding overseas business, he said. In the last four months, the bank has raised USD 400 million from medium-term notes and USD 175 million from bonds, he said on the sidelines of the 92nd Foundation Day celebrations of Union Bank of India here.

SAIL in pact with Swiss firm for high-end steel items: State-owned SAIL joined hands with Switzerland-based CBMM Technology Suisse for research and development of high-end steel items used in the transportation of oil and natural gas, a key component in the steel-maker`s ongoing Rs 700 billion modernisation programme. As part of the company`s strategy to expand its footing in the specialised steel products space, the research and development wing of the steel-maker will work with the foreign agency for the next two years to develop new items. ``Steel Authority of India (SAIL) today sign(ed) a collaborative agreement with CBMM (Companhia Brasileira de Metalurgia e Mineracao of Brazil) Technology Suisse SA, based in Geneva, Switzerland,`` the company said in a statement here.

HDIL lines up mega residential project: Housing Development and Infrastructure is planning to launch residential projects spread over 27 million sq ft in the next six months, including an affordable township at Palghar on the outskirts of Mumbai, and a luxury villa project in Kochi, taking the company`s total residential projects portfolio to 35 million sq ft. The integrated township at Palghar, to be launched in December, will be spread over 11 million sq ft, while the Kochi project will be around 6.3 million sq ft. ``Land bank at Palghar has been acquired at historical rates, and margins for this project, spread over 5-6 years, will be good. Our construction cost will be Rs 550-600 per sq ft, while the current rate at Palghar is anywhere between 1,700 and 1,800 sq ft,`` said Hari Prakash Pandey, vice-president, finance.

DLF eyes Rs 20 bn through land sale, refunds DLF, the country`s largest property developer, expects to garner Rs 20 billion over the next 12-18 months by selling land parcels and refunds from state governments on lands it wanted to return. DLF needs to pay Rs 16.66 billion in debt repayments by March 2011. It has repaid Rs 12.24 billion so far in the current financial year. The land parcels include those in New Gurgaon and hotel properties in West India, among others. The company is in negotiation with the Delhi Development Authority (DDA) for refund of money paid for the Dwarka Convention Centre and with the Tamil Nadu government for the Tidel Park, said a top company executive.

Parsvnath wins Delhi land bid for Rs 16.51 bn: Realtor Parsvnath Developers won the bid for a 38.3-acre (15.50 hectares) land in New Delhi auctioned by Rail Land Development Authority (RLDA) for Rs 16.51 billion, a spokesman said on Thursday. RLDA is a statutory authority, under the Ministry of Railways, set up to develop vacant railway land for commercial purposes, its website said. Indian Railways has about 43,000 hectares of vacant land. RLDA had fixed a base price of Rs 12 billion for the plot, Abhinav Bhandari, analyst at Elara Capital said. ``Assuming an FSI of 2.5, the company had bid at Rs 3,675 per square feet, which is 33% premium to the base price. The price seems reasonable, compared with the earlier deals in the region,`` said Bhandari. The auctioned land is around 3 km away from New Delhi railway station and 2.5 km from Karol Bagh, according to RLDA website.

Sun Pharma buys out Templeton in Taro: Sun Pharmaceutical Industries has acquired the 12% stake of Mark Mobius-headed Templeton Asset Management in its Israeli subsidiary, Taro Pharmaceuticals, for USD 82 million (Rs 3.64 billion). Sun paid USD 16 per share, about 14% premium to Taro`s current market price of USD 13.75. With this, Sun Pharma increased its Taro stake to 65.2% from 53.2%. Taro is a pink sheets-listed company on the New York Stock Exchange. The deal will help the Indian drug maker to get a crucial 77% voting right on management decisions related to Taro. A spokesperson at Sun Pharma confirmed the development and said the deal was concluded on November 4.

Mining firms gain upto 80% after Coal India success: Arcotech is not a stock bought by any flashy billionaire investor, nor is it touted as a takeover candidate for it to have gained 80% in less than a month. All that happened to it and many mining and minerals stocks was the Coal India listing. Orissa Mineral Development Co, Gujarat Mineral Development Corp, Himadri Chemicals, Arcotech and Kachchh Minerals are among the few that have soared between 16% and 80% since October 15 the period, when Coal India created a record share sale that gained 40% on debut.

Cipla Q2FY11 YoY: -Net sales at Rs 1579.9 crore versus Rs 1,371.1 crore (up 15%) -Net profit at Rs 263 crore versus Rs 275.7 crore (dn 5%) -OPM%: 21% versus 23% Management Says -Domestic business grew by 14%-Exports degrew 1% -Q2 margins at 22.6% -PAT margins at 16.2% -Stick to FY11 guidance of 8-10%

-Started new factory in Indore: investment of Rs 1000 crore

FACT: Q2FY11 YoY -Net Profit: Rs 12.5 crore versus loss of Rs 11.4 crore

MMTC Q2FY11 YoY -Net profit at Rs 40.7 crore versus Rs 48.9 crore -Net sales at Rs 18700 crore versus Rs 9400 crore

Jubilant Life Q2FY11 YoY -Consolidated net profit at Rs 82.1 crore versus Rs 57.7 crore -Consolidated net sales at Rs 987 crore versus Rs 933 crore

Shree Cement Q2 -Net profit at Rs 10.6 crore versus Rs 289 crore -Net sales at Rs 718 crore versus Rs 900 crorer

Bhushan Steel Q2 -Net profit at Rs 259 crore versus Rs 189 crore -Net sales at Rs 1,719 crore versus Rs 1,298 crore

Board Meetings today: -Lakshmi Overseas: To consider buyback -Global Capital Market: To Issue & Allot Equity Shares on Preferential basis to Promoters & Non- Promoters group. -SVC

Resources : To consider stock split; consider, issue of GDR upto USD 150 million; increase in limit of investment by FII's. -Vinati Organics: To discuss and approve the financing of upcoming Capex plan

Sun Pharma buys out Templeton’s 12% stake in Taro for USD 82 million – BS

GMR to sell Inergen stake in Chinese co Huangen for USD 1.5 billion – ET/BS

Navin Fluro buy back at Rs 400/sh, offer opens on January 7, closes on February 5

Roche sues DR Reddy's over osteoporosis fighting drug Boniva – DNA

Tata Steel plans to raise USD 1 billion via DVR share sale in December

ICICI Bank, Axis Bank infra NBFC hits RBI hurdle – BS


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