Monday, December 6, 2010

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

Market Outlook: Indian markets are expected to open in positive terrain and trade in the range of 5960 – 6060. India’s largest drug maker by value Sun Pharmaceutical Industries Ltd said on Saturday that is planning to delist its US-based subsidiary Caraco Pharmaceutical Laboratories Ltd by acquiring the remaining 24% stake in that company for $4.75 a share. Back to domestic markets overall trend remains sideways with technically support is at 5950 and strong resistance around 6100.

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 : 11382 (+19.68)

NASDAQ : 2591 (+12.11)

Nikkei 225 : 10147 (- 30.87)

Hang seng : 23550 (+229.8)

SGX CNX Nifty : 6045 (+19.00)

INR / 1 USD : 45.09

Stocks in action for the day: Tata Steel, Cairn, IDBI Bank, Sun Pharma, Opto Circuits, NPC, Areva...

Tata Steel in focus-Riversdale Mining surges 12% after reports that Rio Tinto made a USD 3.5 billion bid for Africa-focused company; -Tata Steel is the largest shareholder holding 21.15% stake in company ((means Rs 35/sh for Tata Steel))

RBI likely to relax 70% provisioning rule for banks RBI ED ANAND SINHA said the central bank is working on a policy whereby banks will not be required to keep such higher provisioning against bad loans This can positively impact banking stocks

Notices to 4 cos, including Hindalco, Essar JV on coal block: The government has issued notices to four firms, including a joint venture of Hindalco and Essar Power, asking them to explain why coal blocks allocated to them should not be withdrawn after their failure to develop the reserves within the stipulated time. The firms have repeatedly failed to keep their promises and are thus ``non-serious about timely development of the block,`` Coal Ministry said in four separate notices to Mahan Coal, a JV of Hindalco and Essar Power, Rungta Mines, Jayaswal Neco and North Dhadu Mining Company. The Ministry has given firms a month`s time to explain why coal blocks allotted to them were not developed. It has warned that de-allocation process would be initiated against companies that fail to respond within the given month.

Ganesh Polytex chalks out Rs 1.25 bn capex plan Ganesh Polytex (GPL) has earmarked Rs 1.25 billion for funding its ambitious organic growth plans over the next one year. The plan involves setting up greenfield plastic recycling projects with the capacity to covert 15,000 tonnes per annum of waste into partially oriented yarn (POY) and texturised yarn, GPL CFO Gopal Agarwal told PTI here. The project cost of Rs 1.25 billion will be financed through a mix of equity, debt and internal accruals, Agarwal said. As part of forward integration, the companies will also creating capacities for the manufacture of 5,000 tpa of spun yarn out of recycled polyester staple fibre.

Prior consent of govt, not ONGC, needed for Vedanta deal: Cairn UK`s Cairn Energy has reluctantly acquiesced to the government`s view that prior consent is required for the sale of a majority stake in its Indian subsidiary to Vedanta Resources , but still maintains that partner Oil and Natural Gas Corp`s (ONGC) nod is not required. In a November 23 letter sent through subsidiary companies holding a participating interest in the three producing blocks - which were previously omitted in the oil explorer`s applications seeking government consent for the Vedanta deal - Cairn said ONGC`s preemption rights were not triggered by the USD 9.6 billion deal.

Dabur rebrands `Real` juice, eyes Rs 7 bn from food div: Homegrown FMCG firm Dabur India today said it is giving its juice brand `Real` an image makeover as part of its strategy to garner a sales of Rs 7 billion from its food division in the next three years. The company said it is now focusing to highlight the nutritional aspect of its juices as against the earlier practice of promoting the brand for taste. ``Over the years, consumers have accepted the taste (of Real) and loved it. And, now we are educating consumers about the nutrition aspect of our juices. Hence, we decided to go for a re-branding,`` Dabur India Head of Marketing (Foods) K K Chutani told PTI.

Opto Circuits buys 76% of US firm Bangalore-based healthcare equipment company Opto Circuits (India) has acquired around 76% of the outstanding common shares of US-based Cardiac Science Corporation as part of its acquisition plans. Earlier, the company had agreed to acquire Cardiac Science Corporation for USD 64 million. The company also plans to exercise its top-up option under the terms of the merger agreement, which is expected to occur in the next few days, the company release said. Following the merger, Cardiac Science will become a wholly-owned subsidiary of Opto Circuits. Cardiac Science specialises in many healthcare equipment in cardiology space including electro-cardiograph devices, cardiac stress treadmills and systems, vital sign monitors among others. As per the merger deal with Cardiac Science, Opto Circuits has agreed to acquire all the outstanding shares of Cardiac Science for USD 2.30 per share.

ATL mulls Rs 450 mn plant for missile comm devices Aishwarya Telecom (ATL), a Hyderabad-based company engaged in the manufacture of telecom and fibre optic products and cable fault locators, is betting big on the Indian defence sector. Towards this, it is contemplating setting up a new facility in Hyderabad for production of missile communication equipment, entailing an investment of Rs 450 million. ``We have been empanelled by the defence organisations and labs to manufacture missile communication equipment. As per the mandate given by the defence organisations, we should set up a manufacturing plant in the next six months. We have already identified land, and the plant will come up either at a special economic zone (SEZ) near the Shamshabad airport or the Fab City,`` GR Manohar Reddy, managing director of Aishwarya Telecom, told Business Standard. It may be recalled that post the Pakistan-China defence cooperation agreement, the Indian Army had placed orders for 3,000 missiles with Bharat Dynamics Limited, worth close to Rs 180 billion.

NPC, Areva to sign two key pacts on Jaitapur State-run Nuclear Power Corporation (NPC) and French nuclear power major Areva would sign two crucial agreements tomorrow for developing a 10,000-Mw nuclear power project at Jaitapur in Maharashtra. The agreements - a general framework agreement (GFA) and an early works contract - would fine-tune the scope of works and estimated cost of the project, and are expected to be inked in the presence of visiting French President Nicholas Sarkozy in New Delhi. This was confirmed by NPC chairman and managing director S K Jain on late Sunday evening. Signing of the two deals is crucial especially when the Ministry of Environment and Forests had given its clearance for the project on November 18. The signing of these two agreements was necessitated during a memorandum of understanding (MoU) signed between the Nuclear Power Corporation and Areva in February 2009 for supply of six European Pressurised Reactors or Evolutionary Power Reactors (EPRs) of 1,650 Mw each for the Jaitapur project.

Bhushan Power & Steel eyes London IPO: Report: Indian company Bhushan Power & Steel Group is planning a 450 million pound ($710 million) flotation next year after appointing investment banks JPMorgan Chase and Credit Suisse to oversee it, British newspaper Mail on Sunday reported. Officials at the company's headquarters in New Delhi could not be immediately reached to comment on the report. Last month, Indian energy group Jubilant Energy raised around $85 million after listing shares on London's AIM junior stock market.

Govt nod needed for Vedanta deal, accepts Cairn: UK’s Cairn Energy has reluctantly acquiesced to the government’s view that prior consent is required for the sale of a majority stake in its Indian subsidiary to Vedanta Resources , but still maintains that partner Oil and Natural Gas Corp’s (ONGC) nod is not required.

Sun Pharma plans to delist Caraco, offers share buyback: India’s largest drug maker by value Sun Pharmaceutical Industries Ltd said on Saturday that is planning to delist its US-based subsidiary Caraco Pharmaceutical Laboratories Ltd by acquiring the remaining 24% stake in that company for $4.75 a share.


allvoices

No comments: