Friday, November 26, 2010

Market Outlook: Indian markets are expected to open flat

Market Outlook: Indian markets are expected to open flat on the back of mixed sentiments seen on the global counters. US markets were closed on the eve of thanksgiving day while Asian stocks fluctuated as mining companies rose after German central bank President Axel Weber said a rescue fund for the euro area would be sufficient to calm financial markets. South Korea`s stocks fell after the country`s defense minister quit in response to shelling from North Korea. Back to domestic markets overall trend remains sideways with technically support is at 5725-5640 and strong resistance around 5910.

Global events to watch:

Þ Weekly Bill Settlement

Þ Fed Balance Sheet

Þ Money Supply

Global indices Update @ 8:

Dow Jones : 11187 (+150.9)

NASDAQ : 2543 (+48.17)

Nikkei 225 : 10088 (+09.02)

Hang seng : 23042 (- 12.67)

SGX CNX Nifty : 5840 (- 17.00)

INR / 1 USD : 45.64

Stocks in action for the day: Swaraj Engines, Bhushan, JSW Steel, Tata Steel, Money Matters, BHEL, DB Realty, BGR Energy...

Claris Lifesciences IPO subscription as of now (Last Day today): as per NSE -Total: 0.09 times (x) -QIB: 0.00x -NII: 0.01x Retail: 0.26x

Cairn – Sources -Cairn gives into GoI demand; to ask for nod for pre-NELP blocks -Cairn may request for Govt approval before weekend Alert: Cairn earlier sought GoI approval for only NELP blocks -Cairn's letter may not mention ONGC's pre-emptive rights issue Alert: ONGC has claimed pre-emptive rights -Cairn India declines to comment Alert: Cairn has 3 pre-NELP blocks

Kingfisher Airlines okays debt restructuring -Okays converting Rs 1,360 crore debt from lenders to shares -To convert Rs 650 crore debt from promoters into shares -To repay balance debt in 9 years with 2-year moratorium -Interest rate on balance of debt reduced -To issue 57.5 crore preference shares to lenders -Preference shares to lenders redeemable at par in 12 years

DB Realty says -Received notice from CBI to share loan sanction documents -Went with documents today but CBI has asked to come back on Friday -CBI only seeking info on loans sanctioned by Money Matters -Our executives did go see RR Nair on loan sanction -There was only 1 meeting with RR Nair in November 2009 -RR Nair wanted certain info on our projects -No bank will give a loan to a client without a meeting -No crossholding with DB Realty & Telco Etisalat DB -CBI has not asked for info regarding link with Etisalat

BHEL -Board approved setting up of a new BHEL plant as "Power Equipment Fabrication Plant" at Maharashtra. -Forwarding proposal for initiating the process of merger of Bharat Heavy Plate & Vessels Ltd. (a wholly owned subsidiary) with BHEL

M&M may consider hiking stake in Swaraj Engines: Sources: Automobile major Mahindra & Mahindra (M&M) is focussing on its engine business and is planning to hike stake in Swaraj Engines from the current 33%. The company, it is learnt, has planned fresh investments in Swaraj Engines and wants to diversify product portfolio. It also intends to invest Rs 50 crore in enhancing production in phase I following which the two companies will undertake phase II expansion by the end of fiscal year 2011.

Bhushan Power to raise USD 700 mn via global float Bhushan Power & Steel is exploring options of an international listing to raise up to USD 700 million to part finance its future projects that includes building a high-value specialised steelmaking facility in Gujarat or Maharashtra. The about. 50 billion unlisted Delhi-based company, which is different from the listed Bhushan Steel owned by sibling Neeraj Singhal, has plans to build a 300,000 tonne cold rolling mill for Rs 8-10 billion and is considering the international float to fund this and other expansion projects, according to people familiar with the development.

JSW Steel expansion plan to fuel growth The stock of JSW Steel, India`s third largest steel producer, has underperformed the Sensex over the past six months. Its September 2010 quarter results, which were in line with analysts’ expectations, have not been able to give fresh trigger to its stock. The company’s expanded capacity is expected to come on stream in the next few quarters. The company has also reduced its debt significantly in the September quarter. These factors would benefit the company in the near term. Higher raw material and employee costs were the dampener for the company in the September quarter.

Kingfisher board approves debt recast; interest cost to come down Kingfisher Airlines, India`s second-largest private carrier, has received preliminary approval from lenders for a debt recast plan to help it reduce interest costs and benefit from an increase in demand for air travel. The Vijay Mallya-controlled airline said on Thursday that its board approved converting lenders` debt of up to Rs 13.5 billion into share capital. The board also approved converting promoters` debt of up to Rs 6.48 billion into share capital and rescheduling the repayment of balance debt. The restructuring will not lead to a reduction in promoter holdings.

Wipro gets ready for regig to fend off TCS, Infosys, Cognizant Wipro officials, proud of their company`s heritage and success, have perhaps never experienced something like this. A feeling of restlessness and a sense of dissatisfaction. Revenue growth, compared with peers, has been anemic; at times Wipro comes out second best in head-to-head matchups when it comes to winning and keeping some clients. In danger of conceding the position of third-biggest software exporter to Cognizant, Wipro is now trying hard to reinvigorate itself. For Rishad Premji, 33, and Wipro`s new chief strategy officer, the latest assignment poses challenges far beyond that of ensuring that the company regains growth by breaking into large customers. The task now is to fend off rivals such as Tata Consultancy Services, Infosys and Cognizant from taking a lion`s share of common clients.

NTPC to invite bids for generation parts ahead of fuel tie-ups: State-run power generator NTPC proposes to invite tenders for power generation equipment for all its upcoming gas-based projects that will have a capacity of 10,000 mw, without waiting for assured supply of fuel, to put pressure on the government to allocate natural gas for its stranded plants. The department of public enterprise (DPE) forbids state firms, such as NTPC, from ordering equipment and starting construction before securing fuel for the projects. This has put the power major at a disadvantage via-a-vis private sector firms that place orders and start work on plants even before securing any gas linkage. NTPC would place orders as soon as the government allocates gas.

Ennore Coke mulling a third mine acquisition in the US Ennore Coke (ECL) is looking at acquiring a mine in the US , where it already has two mines and plans to invest Rs 1.25 billion in doubling the capacity of its manufacturing units in Haldia (West Bengal) and Cuttack (Orissa), a top company official said. ECL is promoted by Haldia Coke and Chemicals and manufactures high quality low ash metallurgical coke. ``We are looking at acquiring one more mine in the US. We already have one each in Virginia and Arkansas from where we get our raw material. We hope to acquire the same in the next fiscal (FY 12). Besides, we also plan to expand production capacity in both our units. We will invest around Rs 1.25 billion,`` ECL`s managing director, Ganesh Natarajan said.

Tata Steel eyes more acquisitions Tata Steel the world`s number seven steel makers, is looking at further acquisitions as it boosts capacity to meet booming demand at home and overseas, a senior official said on Thursday. ``Our portfolio will have a balanced mix of greenfield and acquisition,`` Indronil Sengupta, chief executive for Southeast Asia projects at Tata Steel, told Reuters on the sidelines of a business briefing conference. ``Right now, we have Europe, Southeast Asia and south Asia and in terms of new operations, we`re constantly looking into countries in terms of steel making and in terms of raw materials.``

Money Matters board to meet on Friday on further action in bribery case: NW18

Maruti to hire 3000 employees for expanded service network – BS

Nahar Poly (Nahar Investments) revises open offer price from Rs 40 to Rs 50

TEBMA Shipyard open offer at Rs 19.20/sh (Bharti Shipyard acquired majority stake)

Glodyne Tech: stock split: face value of 10 to become face value 6, approved fund raising
Pratibha Industries: approves allotment of 50 crore shares at Rs 92/share to Van Dyck" a subsidiary of "ChrysCapital V, LLC"


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