Monday, November 29, 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. Back to domestic markets overall trend remains sideways with technically support is at 5700 and strong resistance around 5820.

Results today: BF Utlities, Dwarikesh Sugar, Escorts, Simbhaoli Sugar

Global events to watch:

Þ 4-Week Bill Announcement

Þ 3-Month Bill Auction

Þ 6-Month Bill Auction

Global indices Update @ 8:

Dow Jones : 11092 (- 95.28)

NASDAQ : 2534 (- 08.56)

Nikkei 225 : 10069 (+29.82)

Hang seng : 22825 (- 51.81)

SGX CNX Nifty : 5779 (+06.50)

INR / 1 USD : 45.74

Stocks in action for the day: Neyveli, Bajaj Hind, SCI, GMR, Ranbaxy, GVK, Lanco Infra, BHEL, ONGC...

GMR enters into agreement to sell 50% in Intergen to Huaneng for USD 1.23 billion-Sale price to cover cost of acquisition & interest cost paid so far, company to pre-pay recently refinanced Intergen debt of USD 737 million

Ranbaxy - PharmAsiaNews -Ranbaxy launches Generic Aricept in US market -US market for generic Aricept seen at USD 3 billion -Greenstone has authorized generic for Aricept in US market -Ranbaxy eyes revenue opportunity of nearly USD 200 million in 6 months -Generic Aricept is a USD 3 billion drug expected to add Rs 16/per share on EPS

Lavasa Corp: -Shocked at 'stop work' notice from MOEF -Tourism project norms misinterpreted by complainant-Was exempt from EC from MoEF as per tourism project norms Alert: EC Is environment clearance

IPO Corner MOIL IPO Update: -Issue subscribed 0.76 times (x) on day 1 -QIB subscribed 1.13x, retail 0.36x, HNI 0.88x

Shipping Corp FPO -Price band set at Rs 135-140/share SCI Chairman says -SCI issue to raise around Rs 1,100 crore via FPO Alert: Shipping Corp’s CMP Rs 145.40

Claris Life IPO Revises price band downwards to Rs 228-235/sh -New price 18-20% lower than the earlier price band of Rs 278 to Rs 293 -Claris issue extended till December 2 -Subscription as of Friday; Total: 0.44x, QIB: 0.15x, NII 0.10x, Retail: 1.22x

Videocon consortium strikes more gas in Mozambique Videocon Industries and its partners including Amadarko, Cove Energy and BPRL have discovered gas in the Lagosta well in Mozambique, the consortium`s third gas discovery in the region, sources closeto the development said. The Lagosta discovery, located approximately 16 miles to the south of the previously announced Barquentine discovery, significantly expands the group`s natural gas province and has the potential to support a liquefied natural gas (LNG) facility. BPCL and Videocon are 20% partners of the block. It is expected that they will play a role in the development of the LNG plant to cater to India`s energy requirements.

GVK, Lanco Infra highest bidders for Aussie coal mine
Hyderabad-based GVK and Lanco Infratech are the highest bidders for the acquisition of Australia`s Griffin Coal. The company owning the coal mine, valued at USD 1 billion, opened the bids last week and only four had bid. Talks will begin later on the share purchase agreement, which will be done much later, after the negotiations are completed. ``However, the bids do not mean that the deal is done, because these bids were put in with lot of caveats by companies. The owners will decide on the buyer after thorough negotiations with each of these bidders. The owners will meet with each of these bidders and negotiate the terms. The price bids might also change if the owners insist on changing the conditions put in with the bids,`` said a bidder.

BHEL looks for minority partner in JV with SAIL Bharat Heavy Electricals, the state-run power equipment maker, may offer a minority equity stake to a third technology partner in its proposed joint venture with Steel Authority of India (SAIL) to manufacture high-grade steel. ``We are in discussions with SAIL for setting up the plant. We estimate this will take five-six months to finalise. We are also looking for a third technology partner,`` BHEL chairman and managing director, B P Rao said.

IDBI rejigs portfolios of executive directors In an effort to tone up working, IDBI Bank has reshuffled the portfolios of its top brass. It has effected changes in the responsibilities of 10 executive directors, especially for the personal banking group (PBG), human resources and risk and internal audit. The management of PBG will be shared by four executive directors to oversee five zones - North, North-East, East, South, West. The bank is particularly focusing on this group to scale up the share of its retail business (deposits and loans).

ONGC, Oil India to enter city gas biz Cash-rich Oil and Natural Gas Corporation (ONGC) and Oil India (OIL) have joined hands separately with Bharat Petroleum (BPCL) and Indian Oil Corporation (IOC) for a foray into city gas distribution (CGD). Though ONGC and OIL are major producers of natural gas, they currently have no presence in its retailing and marketing, a field dominated by GAIL and its joint ventures. ONGC owns and operates 22,000 km of pipelines in India, including nearly 4,500 kilometres under the sea. It has tied up with BPCL and OIL. ``This is a sector that has tremendous growth potential. Since it is a retail business, we have tied up with BPCL and have identified certain cities for bidding,`` D K Sarraf, its director (finance) said.

Bhushan-Sumitomo deal stuck on valuation The deal between Bhushan Steel and Japan`s Sumitomo Metal Industries to jointly develop a six-million tonne steel unit in West Bengal has run into rough weather, with no agreement in sight on valuations even a year after both began negotiations. Nittin Johari, director (finance), Bhushan Steel, said, ``The talks are stuck, as there are difference over the valuation for the project. We need to resolve the issue. When asked specifically about the money Bhushan Steel has been asking Sumitomo to pay, Johari said, ``I can`t disclose that but there are certain issues which we are trying to resolve. The talks have been extended because of that.`` As the matter stands, the technical agreement between the two companies is signed and sealed. Sumitomo will be supplying technical knowhow to Bhushan and market the steel produced from Bhushan`s steel plant in Orissa.

Mahindras review media, entertainment business Mahindra Partners Division (MPD), a USD 500-million (Rs 23 billion) division that manages the Mahindra group`s new and non-automotive businesses such as retail, logistics, engineering, chemical products and media and entertainment, is in the process of revising strategy for its ???not-so-profitable??? media and entertainment arm, Mumbai Mantra. ``It (slow growth of Mumbai Mantra) is just a pause in the strategy. We do believe that media and entertainment has a great opportunity and we are in the middle of evaluating it,`` Zhooben Bhiwandiwala, executive vice-president and managing partner of MPD said.

Mudra Lifestyle - Board approves allotment of 1.2 crore shares i.e. 25% to E-LAND FASHION CHINA HOLDINGS at Rs 60

Bajaj Hindusthan - Bombay HC approves Scheme of Amalgamation of Bajaj Hindusthan Sugar and Industries Ltd (BHSIL) with Bajaj Hindusthan Ltd

Gammon India acquired 84.16% of Equity Capital in M/s Metropolitan Infrahousing Pvt and consequent upon the acquisition, M/s Metropolitan Infrahousing has become a subsidiary of company

Neyveli Lignite Corporation Ltd: the Cuddalore / Neyveli region has been experiencing excessive rainfall since November 25, 2010. Neyveli Mines being open cast Mine, the mining activities have been affected due to the above rainfall resulting in lower power generation in all linked Power Stations (not an unusual occurrance)

Glodyne Technoserve: approves stock split; face value of 10 to become face value of 6

Tata’s loan to Unitech in 2007 under scanner, investigators probe end use of money – ET

Ratan Tata may move SC against tape leaks today

Philips leads race to acquire Halonix from Actis, deal to trigger open offer – ET

Govt ask banks, FIs to submit loan details – ET

Coal India may end talks with Massey Energy for mine deal – ET

HDFC chalks out major expansion into education sector – BS

NTT resumes talks for buying Patni Promoters’ stake – BS

Tata Motors set to pay its vendors 20% of their Singur losses upfront – FE

SKS could lose its corporate partners post controversy – FE

Aurobindo Pharma working on second deal with Pfizer – DNA

ITC Hotels, Nitesh Estate to pick up 60% in Kochi project JV – TOI

EIH directors sell 0.86% stake


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