Tuesday, November 16, 2010

Market Outlook: Indian markets are expected to open negative

Market Outlook: Indian markets are expected to open negative and trade in the range manner on the back of unconstructive sentiments on global counters. Overall trend remains sideways with support in the vicinity of 6030 and resistance at 6180.

Global events to watch:

Þ Industrial Production

Þ Housing Market Index

Þ Producer Price Index

Þ Treasury International Capital

Global indices Update @ 8:

Dow Jones : 11201 (+09.39)

NASDAQ : 2513 (- 04.39)

Nikkei 225 : 9805 (- 21.99)

Hang seng : 23957 (- 69.54)

SGX CNX Nifty : 6114 (- 20.00)

INR / 1 USD : 44.14

Stocks in action for the day: Mah Satyam, BS Transcomm, Vivimed, HCL Tec, Dabur, Tecpro...

Govt sources say -Microfinance bill likely in next 3-4 months -Microfinance bill may be introduced in budget session -Microfinance bill to use inputs from Malegam committee alert: -Malegam panel on Microfin institutions set up by RBI -Malegam panel to define 'MFIs' and 'Microfinance'

Gravita India IPO lists today: -Issue price at Rs 125 (higher end of price band 120-125) -Total subscription at 42.24 -QIB portion at 6.04 times, non institutional investors 179.7 times and retail portion 36.7 times

Mahindra Satyam Q2 consolidated -Income from operations at Rs 1,242 crore versus Rs 1,248 crore (QoQ) -operating profit at Rs 65 crore versus Rs 114 crore (QoQ) -PAT at Rs 23 crore versus Rs 98 crore (QoQ) Mahindra Satyam Says -Q1, Q2 revenues were flat -Synergies with M&M and Tech Mahindra quite visible -Seeing traction in joint go-to-market strategies -Q2 EBITDA at 5.2% vs 9.1% (QoQ) -Sequential fall in EBITDA margin on wage hikes -Authorities have sought Rs 503 crore in taxes for FY2003-08 -To sell Chennai SEZ; valued at Rs 33.4 crore-Focussing on key verticals like engineering sevices, IMS -Jointly working with M&M for differentiated contracts -Forex loss of Rs 9.1 crore versus gains of Rs 33.6 crore

HCL Technologies bags USD 100 mn deal from US co: HCL Technologies today said it has bagged a USD 100 million deal for its BPO unit. ``We have bagged a 100 million dollar contract from an US company,`` HCL CEO and vice-chairman Vineet Nayar said on the sidelines of the India Economic Summit. However, Nayar declined to share further details on the deal. The BPO unit of HCL Technologies was running in losses as the company is trying to rejig the business model and move away from voice-based services. However, HCL expects to turn the HCL BPO unit profitable in next five to six quarters.

Dabur buys US hair care co for USD 100 mn Dabur India has bought US-based hair care company Namaste Laboratories and its three subsidiaries for USD100 million (Rs 4.46 billion) in an all-cash deal as Indian consumer product companies continue their global acquisition spree. Its second overseas acquisition in less than three months will help Dabur enter the fast-growing USD 1.5-billion ethnic hair care products market in Africa, besides serving as a gateway to the US market for its products. ``Namaste`s hair straightening lotions and hair oils are hugely popular with African Americans in the US and sells well in Africa and Nigeria too,`` Dabur India chairman Anand Burman said.

NTPC to go solo for cement foray The country`s largest electricity producer NTPC plans to set up cement plants on its own after it failed to attract any partner for the new business that will help it utilise and monetise huge amounts of polluting ash generated by its coal-fired projects. It is finalising a proposal that will allow it to source technology for cement manufacturing which will be put to use by NTPC engineers for setting up commercial cement production units. The company` subsidiary, NTPC Vidyut Vyapar Nigam (NVVNL), is finding it difficult to find joint-venture partners for the cement foray. It had invited expression of interest (EoI) for cement manufacturers in March this year to form a 26:74 joint venture to set up cement plants at its six coal-fired projects. The last date for EoI has already been extended twice in the absence of suitable partners.

Tecpro bags Rs 940 mn deal to supply plant Tecpro Systems, a leading player in the material handling sector, has bagged an Rs 940 million contract for the supply of coal handling plant for Dhariwal Thermal Power Project at Chandrapur, Maharashtra. Started by first generation entrepreneurs Ajay Kumar Bishnoi and Amul Gabrani, Tecpro will do design, engineering, manufacturing and execution of coal handling plant at the Dhariwal project that will be executed in two phases of 300 MW each. According to industry estimates, material handling for power plants is estimated to be an Rs 1,800 billion market. ``Since April 2010, orders worth Rs 29.68 billion have been booked,`` said Ajay Kumar Bishnoi, chairman and managing director, Tecpro Systems, who started the firm after leaving Fenner, a diversified company, active in textile, power transmissions and oil seals.

L&T-led consortium bags USD 764 mn order to develop Oman airport Engineering major Larsen & Toubro (L&T) said its consortium with Galfar Engineering & Contracting SAOG has bagged USD 764-million order from the government of Oman to develop its New Salalah International Airport. ``L&T-Galfar consortium has been awarded the project by the Ministry of Transport ...of Oman in the face of stiff international competition. The order has a total value of USD 746 million...L&T`s scope of work will be approximately USD 500 million,`` the company said in a statement. The project will be accomplished in 30 months and upon completion, the airport will have a capacity to handle 2 million passengers per annum.

Natco to raise Rs 1 bn Generic drug maker Natco Pharma reported a 10.84% increase in net profit to Rs 148.2 million for the quarter ended September 2010, as compared with Rs 133.7 million during the same period last year. Revenues stood at Rs 1.27 billion, up 7.62% from Rs 1.18 billion last year. According to chief operating officer Rajiv Nannapaneni, the company is now firming up plans to raise Rs 1 billion through private placement and various modalities are being worked out. ``We have taken the resolution to raise about Rs 1 billion,`` he said. There would not be any stake dilution. An EGM would be held on December 15 for shareholders` consent.

NLC to set up over Rs 20 bn coal-fired power plant in UP: State-owned Neyveli Lignite Corp has proposed to set up 4,000 Mw coal-based power plants in the states of Orissa and Uttar Pradesh while a wind mill in Tamil Nadu, Parliament was informed today. ``Neyveli Lignite Corporation (NLC) proposes to set up coal-fired power plants of 2,000 Mw capacity each in Orissa and Uttar Pradesh...and is also setting up a 50 Mw wind power plant at Trinelveli district (Tamil Nadu) at the cost of Rs 3.13 billion,`` Coal Minister Sriprakash Jaiswal said in a written reply to the Rajya Sabha. Industries observers say that the coal-fired power plants could cost the mini-ratna company as much as Rs 200 billion. All three projects are yet to be approved by respective state governments, the Minister added.

HPCL plans to invest Rs 130 bn in Vizag refinery Hindustan Petroleum Corporation (HPCL) plans to invest Rs 130 billion to almost double the capacity of its Vizag oil refinery in Andhra Pradesh to 15 million tonnes a year by 2013-14. ``We have asked for a detailed feasibility report (DFR) for raising the capacity at the Vizag refinery,`` the company Chairman and Managing Director, Subir Roychowdhary, said here on Monday. The decision to expand the Vizag refinery follows steel tycoon Lakshmi Mittal Group and French oil firm Total SA walking out of a proposed USD 4-billion project to build a 15-mt per annum refinery and a 2.5-mt per annum petrochemicals plant near HPCL`s 8.3- mt per annum refinery at Visakhapatnam. ``That project is on freeze (since 2007 when Mittal walked out). We are now looking at raising our Vizag refinery capacity,`` he said.

Bharat Forge says -Orders from NTPC for 5x660 mw turbines worth Rs 6000 to 7000 crore -Will bid for NTPC's bulk tender for supply of TG

ABG Shipyard Q2 -Net sales up 38.3% at Rs 555.5 crore versus Rs 401.6 crore -Net profit up 22.7% at Rs 56.2 crore versus Rs 45.8 crore

Aster Silicates Q2 -PAT at Rs 32 lakh versus Rs 1.7 crore -Sales at Rs 16.7 crore versus Rs 20.5 crore

Ansal Housing & Contruction Q2 -PAT at Rs 13 crore versus Rs 6.2 crore -Sales at Rs 62.4 crore versus Rs 43.2 crore

IG Petrochemicals Q2 -Net sales at Rs 154 crore versus Rs 141.5 crore -PAT at Rs 5.1 crore versus Rs 8.5 crore

Dabur buys US hair care company, Namaste Lab for USD 100 million: ET

JBF to buy back Citigroups 11% in Singapore arm for USD 40 million

Ericsson to DoT: Halt BSNL’s GSM tender process for 5.5 million worth Rs 2000 crore (ITI will be impacted)

Skoda may partner Maruti for small car

Vivimed Labs to buy Europe firm for USD 50 million

Auto component maker JBM eyes bus manufacture

Securities in F&O ban: Nagarjuna Fertiliser, Core projects, Orchid Chemical, Power Grid

MVL: Ex-stock split 2:1

BS Transcomm bags orders worth Rs 53 crore

Sathavahana Ispat: Board meet today to consider issue of Share Warrants to promoters group and Equity Shares to select investor on Preferential allotment basis.


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