Monday, December 13, 2010

Market Outlook: Indian markets are expected to open flat

Market Outlook: Indian markets are expected to open flat and trade in the range of 5800-5920. we maintain a cautious approach on fresh buying and expect market to be governed by domestic issues. The crucial support on the downside for the Nifty is 5760 and resistance at 5955-6100.

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 : 11410 (+40.26)

NASDAQ : 2637 (+20.87)

Nikkei 225 : 10226 (+14.69)

Hang seng : 23380 (+217.7)

SGX CNX Nifty : 5870 (- 05.00)

INR / 1 USD : 45.22

Stocks in action for the day: Rel Infra, Sun Pharma, Panti, Goa Carbon, Emami, NTPC...

SEBI plans to made mandatory for co to disclose more when they do off market deals – ET

Reckitt Benckiser may snap up Paras Pharma – ET (Emami is also in the race)

Shiv Nadar, Chairman & Founder, HCL Corporation Says: Will Continue To Divest Promoter Stake To Shiv Nadar Foundation Plan To Divest More Than 10% Of Promoter Holding Promoter Holding Will Be Divested In The Next Few Years

Cipla : regarding Overpricing of Drugs In 2003 co received a notice of demand from the NPPA On A/c of overcharging certain drugs under Drug Price Control Order Co has been legally advised on the basis of these orders No Provision is considered necessary in respect to Rs 1158 cr for period of July 1995-April 2009

HCL Infosystems CEO Says: Seeking Acquisition Between $50-$100 MnSeeking Growth In Emerging Markets QIP Money of Rs 800 Cr To Be Used For Expansion

Infosys CEO, S Gopalakrishnan: Will Spend 10% Of Revenus On Acqusition Aim To Spend $500 Mn On Acquisition Actively Looking For Acqusition Across Sectors Industry May Grow More Than 15% Uncertainies From Europe Still A Cause For Concern

Ruchi Strips bd meet on 14th 1. Incorporation of wholly owned subsidiary, 2. Transfer of steel division, sale of land.

Nitin Fire bd meet on 16th to consider and approve Strategic Deal, Joint Venture, Alliance, Strategic Partnership, Formation of New Company and Acquisition of new business, if any.

Sun Pharma eyes USD 300 mn acquisition in US Fresh after its long-winding but successful acquisition of Israel`s Taro Pharmaceuticals, Sun Pharma is looking at another buyout. This one is expected to be upwards of USD 300 million and would be in the US-the largest market for generic companies. The company has a war chest of USD 700 million, for a ``meaningful and opportunist`` acquisition to continue with its strategy of organic growth, Dilip Shanghvi , the media-shy CMD of Sun Pharma , told TOI in an exclusive interview. Sun Pharma boasts of 16 acquisitions (including brands) since the first one, Knoll Pharma’s bulk drug plant in 1996. But the beginnings of the 55-year-old Shanghvi were humble. He started the business with Rs 10,000, and proudly says that if someone had invested Rs 5,000 in his company in 1994, then that investment would be worth 200 times now (Rs 10 lakh).

Patni bidders in final lap line up funds in USD 1 bn buy The two remaining contenders in the long drawn acquisition story of Patni Computer Systemsthe private equity consortium of Carlyle Group with Advent International and iGate Corporation in tandem with Apax Partners-have firmed up credit lines for the USD 1-billion-plus leveraged buyout that may have entered the final ten days. iGate and Apax, advised by Standard Chartered Bank, are believed to have finalized a USD 600-million debt syndicated between Barclays, Deutsche Bank and Standard Chartered Bank. Similarly, Carlyle and Advent have roped in JP Morgan, Nomura and Citigroup for more or less a similar sized debt. Citigroup is advising the PE consortium on the takeover bid. ``There are only two contenders which are hard at work. The earliest a deal could happen may be in the next ten days,`` a source directly familiar with the development told TOI. ``They are trying to work out an initial agreement before Christmas and year-end break, which would have to be renewed in January otherwise,`` added a second source.

Emami Paper earmarks over Rs 20 bn for expansion Emami Paper Mills, a part of the Kolkata-based Emami Group, has earmarked an over Rs 20 billion investment for capacity expansion and a foray into the pulp and writing paper segment, a top company official said. While the capacity expansion from 450 tonnes per day (tpd) to 750 tpd will be done this fiscal itself at an investment of Rs 5.5 billion, the foray into the pulp and writing paper segment will involve an investment of around Rs 15 billion over three years, the official said. Emami, which currently manufactures newsprint, has two units in Kolkata and Balasore (Orissa) with a total capacity of around 450 tonnes per day (tpd). ``We are currently manufacturing only newsprint but we are planning to enter into pulp and writing paper-making by 2013. We have already acquired 350 acres of land at Balasore, where we have our newsprint unit. We will start construction once we get the requisite approvals,`` Emami Paper`s Executive Director, P S Patwari said.

NTPC signs power purchase agreement for Gidderbaha plant Public sector undertaking NTPC today signed a power purchase agreement with Punjab State Power Corporation (PSPCL) for 2,640 MW coal-based thermal power project at Gidderbaha for Rs 150 billion. The agreement was signed here by M K V Rao, Executive Director (Commercial) of NTPC and Arun K Verma, Director Distribution of Powercom (PSPCL) in the presence of Chairman Powercom K D Chaudhary. It is after 40 years that Punjab has been able to get such a huge PSU investment in the state, an official spokesman said here. The plant consists of four units of 660 MW each, which would be entirely funded by NTPC.

Novelis raises USD 4 bn to part re-finance debt Hindalco`s Canadian arm Novelis raises USD 4 billion on Friday. USD 2.5 billion raised via bonds, 7-year bond issued at 8.375% and 10-year bond at 8.75%. Term loan of USD 1.5 bn raised at the rate of 375 basis points above Libor where the base rate of Libor is fixed at 150 basis points. Sources said, ``the bonds were over subscribed.`` Novelis will pay USD 1.7 billion to Hindalco as dividend and use the rest to part re-finance the debt on it`s books. Hindalco officials were unavailable for comments.

Karuturi to raise Rs 8 bn debt Bangalore headquartered rose exporter Karuturi Global is in the final stages of talks with a group of banks to raise a debt of around Rs 8 billion in the next one month. The money will primarily be used to expand its agriculture operations in Ethiopia and Kenya which have a projected investment of around Rs 15 billion. The company is in discussions with Axis Bank and Bank of Baroda to lead the consortium. Other banks in the consortium may include State Bank of India, Exim Bank, Indian Overseas Bank among others. Ramesh K, group chief financial officer of Karuturi Global told Business Standard that the due diligence process by banks is on. The fresh debt will come close on the heels of Karuturi raising around Rs 1.75 billion through an issue of GDR and PE investment from IL&FS Investment Managers.

Coal India, NPC mull JV for nuclear power Nuclear Power Corporation (NPC) is in talks with government-owned Coal India, the country`s largest coal producer, on the latter`s plans to enter the atomic power sector through a joint venture. NPC has launched a programme to increase capacity to 63,000 Mw by 2032 and Coal India is expected to produce 460 million tonnes coal yearly by March 2012. NPC`s chairman and managing director, S K Jain told Business Standard: ``Coal India would pump in money towards equity with NPC for various nuclear projects. Typically, nuclear projects are developed on a 70:30 debt to equity ratio. Of the Rs 2 lakh crore investments, the equity requirement is Rs 700 billion and Coal India`s investment will be quite crucial. We will have the next meeting in this month.``

Punj Lloyd gets Rs 12.92 bn Thai contract Engineering major Punj Lloyd has said its order backlog on consolidated basis has shot to Rs 285.26 billion with the company securing Rs 12.92 billion pipeline contract from Thailand`s state-run PTT Public Company. The Thailand project involves the construction of a 294-km long pipeline to transport a mixture of gases and has a contractual completion deadline of three years, the company said in a statement. ``The scope of work includes detailed engineering, procurement, construction and commissioning of 294 km onshore gas pipeline,`` it said. The project involves drilling close to city dwellings and highways and has a completion deadline of one year, it added. ``We are proud to announce that in less than a year, Punj Lloyd has bagged its second project from PTT Public Company, the first being an offshore project consolidating our position in Thailand,`` Punj Lloyd Director P K Gupta said.

HCL to develop new mine in Jharkhand State-owned Hindustan Copper (HCL) is planning to develop a new mine with about 50 million tonnes of ore reserves in Jharkhand as part of its strategy to ramp up capacity to 12.5 MT, from 3.5 MT, by 2017. The development comes ahead of the copper major`s about Rs 40 billion share sale programme next year, mainly to fund its expansion. ``HCL proposes to engage reputed contractors for developing new underground Chapri-Sideshwar, Indian Copper Complex, Jharkhand,`` the company said while inviting bids, which will close on December 15. Chapri-Sideshwar block in Singhbhum district of Jharkhand consists of Chapri and Sideshwar blocks and have ore reserves of 49.28 million tonnes. The company is also set to reopen another closed copper mine (Rakha mine) in Jharkhand, with estimated coal reserves of about 34 million tonnes.

Reliance Infra to consolidate all road projects into holding co – ET.

Future group, Carrefour likely to go for franchise route for India tie-up – BS.

Andhra Bank ups BPLR by 25 bps to 13%.

Sri Adhikari board approved QIP/GDR upto Rs 125 cr.

Goa Carbon enters into a JV with Sinoway International Holdings for setting up a company in China, to establish Calcined Petroleum Coke manufacturing plant.

Sandur Manganese and Iron Ore inauguration of 32 MW Thermal Power Plant.

DCB hikes BPLR by 25 bps'.

HBL Power: Open offer for 20% for Igarashi Motors at 76.3/sh; open offers from 27th Jan - Feb 15th.

Rainbow Papers board meet on 18th to issue rights.

Indosolar board meet on17th consider the expansion plan of the Company.


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