Wednesday, November 24, 2010

Market Outlook: Indian markets are expected to open flat on the back of mixed sentiments

Market Outlook: Indian markets are expected to open flat on the back of mixed sentiments seen on the global counters. US stocks tumbled for the second straight day on Tuesday as a flare-up of tensions between North Korea and South Korea, uncertainty about the depth of the eurozone debt crisis and a lower economic outlook from the Federal Reserve dealt a blow to investor sentiment. Back to domestic markets overall trend remains sideways with technically support is at 5880 and strong resistance around 6100.

Global events to watch:

Þ Jobless Claims

Þ New Home Sales

Þ FHFA House Price Index

Þ Consumer Sentiment

Þ Durable Goods Orders

Global indices Update @ 8:

Dow Jones : 11036 (- 142.2)

NASDAQ : 2494 (- 37.07)

Nikkei 225 : 10039 (- 75.76)

Hang seng : 23106 (+210.5)

SGX CNX Nifty : 5930 (- 04.00)

INR / 1 USD : 45.61

Stocks in action for the day: Abbott, JSW Energy, Nestle, DRL, SCI, SBI, FTech...

MOIL IPO price band fixed at Rs 340-375 per share: The Empowered Group of Minisiters (EGoM) has fixed MOIL (Manganese Ore India) IPO price band at Rs 340-375, reports The IPO (initial public offering) will open for subscription from November 26. The company will raise Rs 1238 crore from the primary markets. The government will offload 20% stake in MOIL, in which Central Government will offload 10% stake and Madhya Pradesh Government will to offload 5% and Maharashtra Government to will offload 5% stake. Retail investors, employees will get 5% discount. This is the only IPO now this year, all the other divestment issues coming up will be FPOs, which will be an added incentive, current grey market premium stands at Rs 270-280)

Claris Lifesciences IPO opens for subscription: A sterile injectables pharmaceutical company Claris Lifesciences has opened its Rs 300 crore initial public offer (IPO) for subscription today. A price band is set at Rs 278-293 a share. The issue of more than 1 crore equity shares will close on November 26, 2010. Claris is one of the largest Indian sterile injectables pharmaceutical companies with a presence in 76 countries worldwide. Products offering comprises 113 products across multiple markets and therapeutic areas. All of its products are off-patent products, a significant majority of which are capable of being directly injected into the body and are predominantly used in the treatment of critical illnesses. Enam Securities Private Limited, Edelweiss Capital Limited, JM Financial Consultants Private Limited and ICICI Securities Limited are the book running lead managers to the issue.

JSW snaps up Canada firm for C$422 million JSW Energy, the Sajjan Jindal-controlled private utility, has agreed to acquire Canada`s CIC Energy for CAD 422 million (about Rs 18.60 billion), in a transaction that will also give the Indian company ownership of high-grade coal mines in Africa. According to a statement issued late Tuesday evening, JSW Energy bid CAD 7.42 a share to buy the Toronto-listed company, which owns and develops coal mines in Botswana in Africa with reserves of about 2.6 billion tons of thermal coal, used primarily by power plants. The acquisition will be carried out by a subsidiary of JSW Energy and is scheduled to be completed by Mar. 31, 2011, said the statement.

Dr Reddy`s buys GSK`s oral penicillin facility in US Dr Reddy`s Laboratories, one of the country`s biggest drug firms, has bought GlaxoSmithKline`s oral penicillin facility and products in the US for an undisclosed sum. The transaction is expected to close within the first half of calendar year 2011. As per the agreement, GSK will transfer ownership of its penicillin manufacturing site in Bristol, Tennessee, and rights for the Augmentin and Amoxil brands in the US to DRL. The rights for the non-US markets will, however, remain with GSK. ``This acquisition allows us to enter the US penicillin-containing antibacterial market segment and serve the needs of our customers. This is in line with our strategy to significantly scale up our generics business in North America, while providing an opportunity to explore additional synergy with our other businesses,`` said Abhijit Mukherjee, president (global generics business), DRL in a release on Tuesday.

I-banking revenue nears USD 1 bn; SBI leads pack Investment banking revenue growth in India outpaced emerging markets with State Bank of India and JPMorgan leading the table, as companies raised funds for expansion and acquisition. Post the economic crisis, the improving prospects for transactions, which may cross USD 1 billion for the second-time ever, is also triggering a wave of movement in an industry that faces a shortage of talent. In 2007, such transactions were worth USD 1.2 billion. Revenue from advising on loans, bonds, equity-raisings and mergers & acquisitions surged 53% this year to USD 870 million, from USD 568 million a year earlier, data from Dealogic show. State Bank of India topped the list with a 9.4% share, followed by JP Morgan at 5.5%. ICICI Bank and Deutsche Bank were positioned third with a 5.4% share.

Nestle ups stake in Indian arm Nestle, the world`s largest food company, has increased its stake in its Indian arm by 0.8% through stock market purchases during the quarter ended September. At current market prices, the Swiss maker of Maggi noodles and KitKat chocolates would have spent close to Rs 3.4 billion to increase its stake in Nestle India to 62.76%. ``Common business sense suggests that the consumption in the food segment (in India) will soar going forward. Nestle wants a bigger share of this future growth,`` said the chief investment officer at a leading domestic mutual fund that manages USD 1 billion worth of equity assets.

ONGC`s costs of oil production double of OIL`s expense in 2009-10 The average cost incurred by Oil and Natural Gas Corporation (ONGC) on production of crude oil in Assam in 2009-10 was USD 52.51 per barrel, almost double of what sister PSU explorer Oil India spent on crude production in the state, Parliament was informed. ONGC produced 1.191 mn tonnes of crude from its fields in Assam in 2009-10, incurring a cost of USD 52.51 on the production of every barrel of oil, Minister of State for Petroleum and Natural Gas Jitin Prasada told the Rajya Sabha in a written reply. In contrast, OIL produced 3.54 mn tonnes of crude at a cost of USD 27.16 per barrel.

Tata Steel to seek shareholders` nod to raise Rs 70 bn debt Global steel major Tata Steel on Tuesday said it will seek shareholders` nod to raise up to Rs 70 billion to fund its capex plans through the issuance of one or more types of securities. ``It is proposed to raise up to an amount of Rs 70 billion through issuance of one or more types of securities,`` it said in filing to the Bombay stock Exchange . The company plans to raise Rs 70 billion worth of additional long-term resources through the issue of securities such as ordinary shares, equity shares, GDRs and debentures.

CIL mulls acquisition of Massey Energy After expressing interest in picking up some mines of Massey Energy, state-run Coal India (CIL) said it was open to acquiring the US-based company in its entirety. Massey Energy is the fourth-largest coal company in the United States, with reserves of about 2.3 billion tonnes, while CIL is the world`s largest coal miner. ``The US company, which offered some particular mines to us, is also offering the company itself. But we have to be cautious about the procedural part, as we are accountable to the public. We are interested, but wants the government to issue clear guidelines for this,`` said CIL Chairman Partha S Bhattacharyya.

Jalan committee opposes listing of exchanges, clearing corporations and depositories (FT to get impacted)

M&M acquires 70% in Ssangyong Motors for USD 463 million

Biyani tells kin to hand over Future reins to professionals – ET

Nestle ups stake in Indian arm by 0.8% to 62.76%, fuels speculation of possible delisting – ET

Gujarat Pipavav Port has entered into an MOU with Aegis Logistics Ltd., one of the leading oil, gas and chemical logistics Company, wherein they intend to take on lease 75 acres of land at Pipavav Port to develop tankage facility.

Siemens - results to be announced today

Abbott India board meet today to consider proposal of merger of Solvay Pharma

Greaves Cotton: stock split 5:1


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