Tuesday, November 30, 2010

Market Outlook: Indian markets are expected to open flat All eyes on GDP Numbers

Market Outlook: Indian markets are expected to open flat on the back of mixed sentiments seen on the global counters. All eyes are on Q2 GDP growth numbers which is expected to be near 8.3% which is lower than the 8.8% in Q1 largely because of a higher base. Overall trend remains sideways with technically support is at 5790 and strong resistance around 5880.

Results today: Bajaj Hindusthan, MIC Electronics

Global events to watch:

Þ Consumer Confidence

Þ State Street Investor Confidence Index

Þ Chicago PMI

Global indices Update @ 8:

Dow Jones : 11052 (- 39.51)

NASDAQ : 2525 (- 09.34)

Nikkei 225 : 10084 (- 41.53)

Hang seng : 23081 (- 84.93)

SGX CNX Nifty : 5843 (- 05.50)

INR / 1 USD : 45.81

Stocks in action for the day: SCI, Ispat Industries, Mah Satyam, Patni, LIC Hsg Fin, SAIL, NTPC, Bafna Pharma...

Public offers MOIL IPO update: Subscribed 2.37 times (x); QIB 2.14x, retail 2.8x, HNI 2.4x, employee portion subscribed 0.13x.

Kapil Sibal says -85 licensees to be issued notices -85 licensees to be given 60 days for response S-Tel, Uninor, Loop, Videocon did not meet eligibility norms

TRAI to DOT: sources -Uninor licenses in Assam, NE, J&K, Haryana, MP, Punjab, HP, Rajasthan should be cancelled -Etisalat licenses in Delhi, Mumbai should be cancelled -Aircel licenses in Rajasthan, Haryana, Madhya Pradesh, Punjab should be cancelled -Sistema Shyam licenses in Gujarat, Punjab, UP-W, UP-E, MP, HP, Orissa, Assam, NE, J&K should be cancelled -Loop licenses in Maharashtra, Gujarat, AP, Karnataka, Tamil Nadu, Kerala, UP-W,UP-E, West Bengal, HP, Bihar, Assam, NE, J&K should be cancelled

Reliance Communications says -Welcomes referring Swan's cap structure & ownership to MCA -Doubts raised by CAG 'entirely incorrect & unjustified' -Fully compliant at all times with all applicable laws -Cease to be 9.9% shareholders of Swan before grant of license -No question of Swan Tele being a front co

Fertiliser Secretary says: -Seeking Rs 8,000-10,000 crore more subsidy for FY11 -FY11 total fertliser subsidy seen between R5s 65,000-67,000 crore -Decision on urea price decontrol likely this fiscal -State companies contracted 8 mt DAP import this fiscal

M&M Financial Services to raise upto Rs 570 crore via QIP -Board approves raising FII limit to 40% from 35%

VK Sharma says -Customers, Investors need not worry about business growth VK Sharma is new MD, CEO - LIC Housing Finance VK Sharma says -New job a challenge, but an opportunity -Margins, credit growth target will not be hurt

Simbhaoli Sugar Q4 -Sales at Rs 230 crore versus Rs 238 crore -Loss of Rs 39.2 crore versus profit Rs 23.5 crore Consolidated for FY10 -Sales at Rs 1261 crore versus Rs 706 crore -Loss at Rs 74.8 crore versus profit Rs 71.9 crore

Shipping Corporation FPO opens for subscription: Follow-on public offer (FPO) of Shipping Corporation of India (SCI), one of India's largest shipping companies in terms of Indian flagged tonnage, has opened for subscription today. It has set a price band at Rs 135-140 a share for its FPO of 8,46,90,730 equity shares. SCI has approximately 35% share of Indian flagged tonnage as of June 30, 2010, according to the website of Directorate General of Shipping, Government of India (DG Shipping). As of September 30, 2010, it owned a fleet of 74 vessels of 5.11 million dead weight tonnage (DWT). SBI Capital Markets Limited, ICICI Securities Limited and IDFC Capital Limited are the book running lead managers to the issue.

LN Mittal may be in talks to pick up stake in Ispat: A team of senior executives from ArcelorMittal, the world’s biggest steelmaker by capacity, last week met the top management of Ispat Industries in Mumbai, raising the possibility that the LN Mittal-controlled steel giant could be exploring the option of picking up a stake in the debt-laden Indian company. Steel tycoon Lakshmi N Mittal, who controls ArcelorMittal, and the promoters of Ispat Industries, Pramod Mittal and Vinod Mittal, are brothers, but their companies are independent. The Indian company, Ispat Industries, which has a capacity of 4.6 mt, is a pygmy compared with ArcelorMittal.

Dewan Housing set to acquire Deutsche Postbank arm for Rs 11 bn The Wadhawan family-controlled Dewan Housing Finance Corporation has emerged as the frontrunner to acquire Deutsche Postbank Home Finance in a deal estimated at USD 240 million, or roughly Rs 11 billion, sources familiar with the development said. The deal-making is in the final stages and it could be clinched within this week. Deutsche Postbank AG had mandated Standard Chartered Bank to sell its Indian arm, as it looks to stay focused on the home finance market in mainland Europe. If the deal goes through, it would be Dewan Housings second buyout after its 2004 purchase of Vysya Bank Housing Finance, boosting its loan book and pan-India presence.

NPCIL to form JVs with SAIL and railways Nuclear Power Corpoaration of India plans to set up joint ventures with the Indian Railways and Steel Authority of India (SAIL) to set up nuclear reactors, continuing its strategy to involve state entities to fund its ambitious plan to add nearly 60,000 mw of new capacity in two decades. The company also hopes to involve private firms in nuclear power plants if the government allows this in the future, Sreyans Kumar Jain, the chairman of NPCIL said. ``SAIL and Indian Railways have approached us for joint ventures. We have had two-three rounds of discussions,`` Sreyans Kumar Jain, chairman , Nuclear Power Corporation (NPCIL), told ET. NPCIL is already in the process of setting up joint ventures with three other state firms, NTPC, Indian Oil Corporation and National Aluminium Company. NPCIL would hold majority stake and offer up to 49% to the partners in ongoing or upcoming projects. This will help it raise funds through equity infusion and broaden its equity base which can be leveraged to raise more debt.

NTPC to order USD 7.2 bn power gear by March NTPC, India`s biggest power producer, plans to place orders for generators worth at least Rs 328.5 billion (USD 7.2 billion) by March 31 as it accelerates capacity addition to help reduce blackouts. The utility will buy nine generators of 660 megawatts each and the same number of 800-megawatt units, chairman Arup Roy Choudhury said in an interview in here. The equipment cost per megawatt is Rs 25-30 million, he said. NTPC, which failed to meet its capacity addition target in the year ended March 31, aims to speed up construction of plants to meet demand in Asia`s second fastest growing major economy. Capacity addition will more than double to 3,150 megawatts this year, with another 5,500 megawatts to follow in the year ending March 2012, Choudhury said. ``One of the biggest concerns for NTPC has been the execution of projects,`` said Harshad Shukla, an analyst at KR Choksey Shares & Securities Pvt., who has a one-year price target of 233 rupees on the stock.

Bafna Pharma to invest Rs 300 mn in Specialty drugs Chennai-based Bafna Pharmaceuticals would invest Rs 300 million in raising its production capacity two-fold in 2011-12 and plans to enter specialty segment of immunosuppressant, which are drugs used to prevent rejection of an organ after transplant, by next fiscal. The investment would be made in its Grantlyon village facility, near Chennai. ``By the first quarter of next fiscal, the company will increase production to 1.2 billion tablets per annum from 600 million tablets,`` said Mahaveer Chand Bafna, chairman and managing director, Bafna Pharmaceuticals. The proposed investment would be funded through debt and internal accruals, he said.``The expansion is necessary to meet fast-growing demand in the overseas markets, especially in United Kingdom,`` Bafna said. It would approach regulators in UK, Sri Lanka and Philippines for new products.

EdServ to tie up with mobile and cable TV operators EdServ, a Chennai-based education and placement company, plans to tie up with leading mobile operators and cable TV operators to take its offerings (education content) to the households. The company has said the first such tie-up will take shape in a month. EdServ chairman and CEO, S Giridharan said that the company would take its content through audio and video, via mobile, broadband and cable networks. ``We have already started the process including creating content and dialogue with leading players in the respective industries. The first breakthrough will happen in a month or two,`` he said. The company has signed up with Cyber Tech, a Chennai-based company which is into multimedia-compliant content for CBSE (Science and Maths class 1 to 10) and IGCSE (International Generic Curriculum of Secondary Education), a UK curriculum, for class 8-10.

IVRCL Infra bags orders worth Rs 5 bn IVRCL Infrastructures & Projects, a city-based infrastructure company, today said its water and building division had bagged orders worth Rs 5 billion from various organisations. These include a Rs 1,003.3 million order from Nuclear Power Corporation of India for the Kakrapar Atomic Power project, to be completed in 36 months and a Rs 778.5 million order from Rajasthan Rajya Vidyut Utpadan Nigam for construction of a river water system on a turnkey basis. The project is to be completed in 15 months. Another Rs 628.2 million order is from the Tapi Irrigation Development Corporation of Jalgaon for the construction of 132/33 kv substation/132 kv transmission line and 33 kv distribution line for the Varangaon Lift Irrigation scheme.

Spice Mobility to buy Malaysia Co Beoworld: NW18

Gate eyes Patni, talks to Deutsche Bank, Apax for USD 600 million debt in leverage deal – TOI

Dhanlaxmi Bank gets RBI nod to invest Rs 13 crore in Destimoney Securities, forming 15% of the equity

Fortis Healthcare CEO quits – ET

Marathwada Refractories open offer at Rs 397/sh

REC approved a proposal for Foreign Currency Borrowings not exceeding USD 500 million

Satyam announces Global Partnership with Stratus Technologies'


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