Tuesday, November 23, 2010

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

Market Outlook: Indian markets are expected to open in downbeat terrain mainly on the back of negative sentiments seen on the global counters. US stocks clawed back from the lows of the session, but still ended mixed while Asian stocks fell amid speculation Europe`s sovereign-debt crisis may spread after bailout of Ireland may pose a ``credit negative`` for the country. Back to domestic markets overall trend remains sideways with technically support is at 5900 and strong resistance around 6100.

Global events to watch:

Þ GDP update

Þ Corporate Profits

Þ Existing Home Sales

Þ ICSC-Goldman Store Sales

Global indices Update @ 8:

Dow Jones : 11178 (- 24.97)

NASDAQ : 2532 (+13.90)

Nikkei 225 : 10115 (+92.80)

Hang seng : 23207 (- 316.6)

SGX CNX Nifty : 5964 (- 46.00)

INR / 1 USD : 45.29

Stocks in action for the day: ONGC, M&M, Bharat Ship, Cairn, Mphasis, Bajaj Auto, Tata Chemicals, Emami...

Public offers -Claris IPO (Rs 300 crore) to open tomorrow; -MOIL to open on Friday -SCI FPO likely next week.

RPP Infra (IPO closed): total subscription 2.97 times; QIB at 0.16X, HNI at 7.27X, Retail at 5.6X, Employee at 0.43X.

Mphasis Q4 consolidated -Net sales at Rs 1132.2 crore versus Rs 1279 crore (QoQ), versus Rs 1345.4 crore(YoY) -Net profit at Rs 245 crore versus Rs 271.2 crore (QoQ), versus Rs 284 crore (YoY) -EBITDA margin at 26% versus 24.7% (QoQ), versus 23.8% (YoY).

Cairn – Sources -Bill Gammell to meet govt officials on November 23 -Bill Gammell to push for Govt of India nod for Cairn Deal -About USD 240 million outstanding from ONGC for Barmer Project Total outstanding from ONGC for Barmer was USD 500 million.

Bharati Shipyard: -To acquire 51% in Tebma Shipyard (unlisted) for Rs 75.75 crore -To infuse fresh equity at Rs 19.20/share.

Govt announces incentive scheme for Electric Vehicles in India (M&M benefits the most, Electrotherm to also benefit) -Electric Vehicles manufacturers will receive financial incentive for each EV sold in India -The scheme envisages incentives of up to 20% on the ex-factory prices of the vehicles, subject to a maximum limit. -The cap on the incentive will be Rs 4,000 for low speed electric two wheelers -The cap on the incentive will be Rs.5,000 for high speed electric two wheelers -The cap on the incentive will be Rs 1 lakh for an electric car

Ramky to complete 2,350 acre land sale at pharma city next year; co has so far acquired 2,147 acres, of which 70% has already been sold. It will acquire the remaining land by March. The project cost of the Jawaharlal Nehru Pharma City is Rs552 cr

Jubilant Energy to raise $85 m via IPO: India-focused oil and gas firm Jubilant Energy said it will raise USD 85 million through an initial public offering to fund future exploration and the development of its assets in the energy-hungry country. The company, which has proved plus probable oil reserves of 24.5 million barrels of oil equivalent and daily production of almost 2,000 barrels, said it expected its shares to be admitted for trading on London's junior market on November 24.

Kalpataru Power, Techno Electric JV raises Rs 2.76 bn debt Kalpataru Power Transmission`s joint venture with Techno Electric and Engineering has achieved financial closure for its Jharli-Bawana transmission line project by tying up debt of Rs 2.76 billion with a consortium of four banks. ``IDFC is the lead banker and the loans have tenor of five to 15 years,`` Manish Mohnot, executive director, Kalpataru Power Transmission told ET. The special purpose vehicle, Jhajjar KT Transco, is setting up the 400-KV transmission line of 100 km through the public-private partnership route for Haryana Vidyut Prasaran Nigam at a total cost of Rs 4.44 billion. The project financing includes Rs 780 million of capital grant from the government and Rs 900 million of equity contribution from the two joint venture partners. The project also has an additional grant of Rs 180 million for operation and maintenance.

Pix Transmission to raise Rs 300 mn through QIP Leading player in power and fluid transmission business, Pix Transmission plans to raise Rs 300 million through Qualified Institutional Placement (QIP) in March 11, a senior company official said here. ``We are raising around Rs 300 million through QIP in March 11. We have already invested Rs 1 billion capex to achieve economies of scale,`` PIX Transmission`s Managing Director, Amarpal Sethi said here. The company is engaged in manufacturing of industrial, agricultural and automotive belts, high pressure braided and spiral hydraulic hoses as well as hose assemblies and end fittings. The future outlook is bright as the international and domestic market has picked up in the last six months, Sethi said.

Tata Chemicals enters customised fertiliser biz Tata Chemicals, the Tata Group Company that is widely known for making the popular Tata Salt, on Monday launched a customised fertiliser product to improve crop yields. While the product will be launched at Babrala in UP, where Tata Chemicals has its manufacturing plant, the company plans to expand the making of the product to two more units by next year. The plan for the customised fertilizers alone would need an investment of around Rs 1.5 billion, managing director, R Mukundan told ET over the phone. ``This is over and above the Rs 4-5 billion capex that we annually spend,`` he added.

Bajaj Auto plans to expand distribution network Bajaj Auto is planning to increase its dealership network and upgrading its service centers by next year. Bajaj is appointing 130 new dealers, mainly in small towns, taking the total numbers to more than 600 dealerships across India, company said in a statement. The proposed dealership towns in Maharashtra are Sangamner (District Ahmednagar), Chalisgaon, Bhandara, Nagpur, Hingoli, Aurangabad, Ichalkaranji, Washim, Pune and Solapur.

Emami ready to spend up to Rs 10 bn for overseas buys Leading FMCG player Emami is ready to spend up to Rs 10 billion for overseas acquisition in the personal-care segment, a top company official said. Kolkata-based Emami owns the well-known ayurvedic brand - Boroplus, an antiseptic cream. The company had, early this year, acquired an Egyptian personal-care manufacturer for around Rs 250 million. ``We are in talks with 2-3 firms in Africa as well as a few companies in Europe and the Middle-East. The deal size could range anywhere between Rs 50 million-10,000 million. However, talks (with these companies) are in the preliminary stages now,`` Emami`s director Harshvardhan Agarwal told PTI in Mumbai.

Bhel, GE India in JV to develop water treatment solutions State-owned power equipment maker Bhel on Monday said it would join hands with GE India Industrial Private for manufacturing water treatment equipments. ``Bhel and GE India Industrial Private (GEIIPL), a 100% owned subsidiary of GE, USA will jointly engineer and supply water treatment solutions for the Indian market,`` the company said in a statement. According to the terms of the agreement, the joint venture will help Bhel acquire the capability to develop large water treatment systems based on GE Products, on its own, it said.

Govt approves ONGC's stock split into two, to offer 5% stake next year

Solar power rates to drop by 20% by 2013

Suryajyoti Spinning Mills to get into garment production, may raise funds via QIP

Securities in F&O Ban: Aban, Core Projects, KFA, Ispat, Power Grid

Clearwater Cap acquires 5.03 lakh shares in Dolphin Offshore via conversion of FCCB, holding has crossed 10%

REI Six Ten Retail board meet on November 25, 2010, to consider, discuss and decide the proposal of preferential issue Viz., Equity Shares, Convertible Debentures etc.

Burnpur Cement board approves allotment of 2 crore convertible warrants to part finance the ongoing setting up of cement plant at Patrata, Jharkhand

Dhanus Tech board approves fund raising of USD 30 million via FCCB, GDR, ADR, QIP issue

Camlin Fine board approves acquisition of an Italian fine chemicals company

Suryachakra Power to receive Rs 22.5 crore from Andanman and Nicobar admin due to revision in project costs, approves scheme of amalgamation of Suryachakara Energy and Infra - swap ratio 15:28, promoter holding post merger to go up from 51.94% to 67.15%

Religare arm acquires UK operations Of South African Co Bernard Jacobs


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