Monday, November 22, 2010

Market Outlook: Indian markets are expected to open in positive terrain

Market Outlook: Indian markets are expected to open in positive terrain mainly on the back of supportive trends seen on the global counters and easiness seen in Indian political space. US stocks closed slightly higher on Friday, recovering from earlier losses over concerns that China`s latest move to curb its roaring inflation could hurt the global economy. Overall trend remains sideways with support in the vicinity of 5830 and resistance at 6000.

Global events to watch:

Þ 4-Week Bill Announcement

Þ 3-Month Bill Auction

Þ 6-Month Bill Auction

Þ 2-Yr Note Auction

Global indices Update @ 8:

Dow Jones : 11203 (+22.32)

NASDAQ : 2518 (+03.72)

Nikkei 225 : 10124 (+101.6)

Hang seng : 23510 (- 94.74)

SGX CNX Nifty : 5930 (+55.00)

INR / 1 USD : 45.26

Stocks in action for the day: Murli Indus, Triveni Engg, DRL, Sasken, Emami, ONGC, Suzlon, Tata Power...

Mexico’s Cemex close to buying Murli Cement for USD 550 millionET (its listed Murli Ind sub)

Triveni Engg Q4 -Sales at Rs 587.4 crore versus Rs 553.5 crore -PAT at Rs 17.2 crore versus Rs 68.2 crore.

Spice Mobility to mop up Rs 7 bn: Spice Mobility, the flagship company of BK Modi-owned Spice Group, will raise around Rs 6-7 billion through a sale of 3.5 crore treasury stock to institutional investors to fund its inorganic plans. Recently, Spice Group chairman BK Modi said the company was on the look out to acquire companies both in India and abroad. According to sources in the banking industry, the shares comprising around 15% of the company`s equity have been earmarked for sale to institutional investors. The shares are held under a trust that was formed after the recent restructuring. When contacted, a senior company official declined to comment on the matter. Around 4.7-crore shares or 63.25% held by Spice Televentures in the Spice Mobility earlier are now part of the trust. Of this, around 1.22 crore shares are held by the employee welfare trust.

Tilaknagar Industries takes QIP route to raise Rs1.35 bn Maharashtra-based Tilaknagar Industries (TIL), the spirit company with sales of over Rs 10 billion, has raised Rs 1.35 billion through qualified institutional placement (QIP). The company, which owns brands such as Mansion House brandy and Senate Royal whisky, placed its shares with Indian and foreign institutional investors. Half of the funding comes from the US-based Capital World, and the rest from DSP Blackrock, Sundaram Paribas and ICICI Prudential. The deal results into a 7% dilution in the holding of the promoter Dahanukar group, which now owns 53% stake. After the placement, Capital has a 5.4% holding while other investors hold around 3% each.

ICICI Bank expects 18% credit growth in 2010-11 Country`s largest private lender ICICI Bank has said that its credit will grow at a hefty 18% this fiscal, contrary to a meagre 1.8% expansion in the first half, largely on account of buoyant corporate and retail businesses. ``Last quarter (July-September) was the first quarter after nine quarters that the decline in retail business was arrested...our domestic corporate sector business has grown at an annualised rate of 30 % in the last quarter. So that growth would sustain,`` ICICI Bank CEO Chanda Kochhar said. It may be recalled that ICICI Bank had posted a 19% growth in net profit to Rs 12,362.7 million during the second quarter. In the same period a year ago, it had witnessed a flat growth at Rs 10,401.3 million.

Sundaram BNP turns registrar, to invest Rs 600 mn in first phase Sundaram BNP Paribas Fund Services has forayed into Registrar and Transfer Agency operations and would invest Rs 600 million in the first phase over the next three years, with majority of investments going into the technology platform. The firm, which is a 51:49 joint venture between Chennai-based Sundaram Finance and BNP Paribas Securities Services, a 100% subsidiary of BNP Paribas, aims to have a market share of 8-10% of the total assets available for servicing in a span of five years. Sundaram Finance, Managing Director, TT Srinivasaraghavan said, ``In the first year of operations this venture would have Rs 200 billion of assets under servicing and in the next three years it would touch Rs 800 billion.``

Alok Industries mulls Rs 8 bn capex in next 2 year`s period Leading textile player, Alok Industries has drawn up Rs 8 billion capex plan for the next two years period, a top company official said in Mumbai. ``We have invested Rs 70 billion in the last six year`s period in our expansion programme. In the next two year`s period, we will further invest around Rs 4-4.5 billion per annum for our on-going expansion plans,`` Alok Industries CFO, Sunil Khandelwal said on the sidelines of a conference here. The company will finance the said funds through internal accruals and debt, Khandelwal said, adding that it has already made a rights issue aggregating Rs 4,495.9 million last year and a QIP of Rs 4.25 billion in March 2010.

ONGC may not get to use first right of refusal in Cairn deal The government maintains that state-run Oil & Natural Gas Corp (ONGC) has the first right of refusal in the USD 9.6-billion Cairn- Vedanta deal , but it will not allow the company to exercise this right as the price is very high, two officials directly involved in the matter said. ``It is true that ONGC has the pre-emptive right, but it makes no (business) sense to invest in an over-priced asset which will anyway remain in the country,`` an official representing an economic department said requesting anonymity. ONGC says its consent is necessary for Vedanta to acquire control of Cairn India as it had ``pre-emptive rights.`` On August 30, the company shot the first letter to the stock exchanges asserting its pre-emptive rights which was immediately contested by Cairn.

Tata Power to invest around Rs 50 bn in wind energy by 2017 Ratan Tata-led Tata Power aims to have at least a 25% of its power generation or around 8,000 MW from clean sources by 2017 and will invest around Rs 50 billion in wind-energy alone, a top company official said. ``We have set ourselves a target to achieve 25 per cent of our total generation from clean sources by 2017. These will comprise wind, solar, hydro, geo-thermal and gas. In wind-power alone, we will be investing around Rs 50 billion,`` Tata Power`s executive director-strategy & business development, Banmali Agrawala, said in Mumbai. The company, which presently has a little over 200 MW of wind capacity, plans to give a strong thrust to wind-energy as ``it is the most commercially viable and established form of renewable energy,`` he said.

Suzlon, RRB Energy in race for Nalco`s Rs 3 bn project Wind power majors Suzlon and RRB Energy are in the race to bag an estimated Rs 3 billion project of state-owned Nalco, a senior official of the aluminium PSU said on Sunday. ``Suzlon and RRB Energy have bid for the project. One of the companies will be short listed by the middle of December,`` Nalco Director, Finance, BL Bagra said. Looking at diversification into the power space, Nalco had invited bids last month for construction of a 50 MW power plant which entails estimated investment of Rs 3 billion.

Crompton Greaves bags CII-EXIM Bank award for excellence Crompton Greaves, the power products firm, and food packaging player Tinplate Company of India have bagged the CII-EXIM Bank 2010 awards for business excellence. Instituted by the Confederation of Indian Industry (CII) and Export Import (EXIM) Bank, the awards are given to companies in manufacturing and services sector in recognition of highest quality measured across various parameters by the CII`s Institute of Quality, based in Bangalore. Bharat Electricals, Kotdwara, BHEL, Hyderabad, Bosch, Nashik, Godrej & Boyce Mfg. Co, L&T-Komatsu and JSW Steel were among the companies that were awarded for significant achievement in maintaining highest quality standards. The awards were distributed here on the inaugural day of the three day National Quality Summit 2010, organised by CII.

Dr Reddy`s gets nod to launch Zafirlukast Pharmaceutical major Dr Reddy`s Laboratories has launched Zafirlukast tablets (10 mg and 20 mg), a bioequivalent generic version of Accolate in the US market. Zafirlukast is a prescription medicine used for treating asthma. According to IMS Health, the medicine had total US sales of approximately USD 50 million for the 12 months ending August 31, 2010. On November 15, 2010, the US District Court of New Jersey granted Dr Reddy`s motion for summary judgment of non-infringement against AstraZeneca clearing the way for the launch of the product.

Burnpur Cement – Board meet today to consider fund raising

Suryachakra Power – Board meet today to consider the proposal to acquire Power Project Companies by way of merger + NSE listing

Govt backs ONCG claim but won't let company bid for Cairn – ET

SEBI asks MFs to simplify new fund offers – ET

CCI fines Kingfisher Rs 1 crore for not providing facts during probe – PTI

Bankers jittery over exposure to telecom – BS

Sun Pharma has been stopped from launching the generic version of a schizophrenia drug that has generated revenues of USD 4 billion in US in 2009 – BS

Steel co to form consortium to acquire assets abroad – BS

Emami eyes one more buyout in Africa – BS

India Oil, Nalco to get upto 49% in ventures with Nuclear Power – BL

JSW Energy looking to raise Rs 2400 crore through bond issue – DNA

Fertilizer ministry turns down proposal to free urea prices – Mint

Dr Reddy's Labs (DRL) announces the launch of Zafirlukast Tablets'

Altas Copco - delisting floor price at Rs 1426/share (CMP Rs 1835)

Sasken Comm - buyback at Rs 260; maximum offer size at 10% of equity


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