Tuesday, December 14, 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 5880-5980. we could see an up move as long as the market manages to stay above 5760 levels. The crucial support on the downside for the Nifty is 5800 and resistance at 5955-5995.

Global events to watch:

Þ ICSC-Goldman Store Sales.

Þ Producer Price Index.

Þ Retail Sales.

Þ Redbook.

Þ Business Inventories.

Global indices Update @ 8:

Dow Jones : 11428 (+18.24)

NASDAQ : 2624 (-12.63)

Nikkei 225 : 10293 (+00.08)

Hang seng : 23364 (+47.26)

SGX CNX Nifty : 5937 (+06.00)

INR / 1 USD : 45.25

Stocks in action for the day: NMDC, Aventis Pharma, Ashok Leyland, Murli Ind, HCC, RCom, Tantia Const.

Rel Comm Starts 3G Tariff Battle With Tata DoCoMo & MTNLRel Comm 3G Data Speed Fastest Across All Data Plans MTNL Remains Cheapest 3G Data Price Offering MTNL Remains Cheapest For Unlimited 3G Data Usage MTNL Rental Cheapest At `99 For 100 MB At 3.6 mbps Rel Comm Data Plan Rates Lower Than Tata DoCoMo Rel Comm Rental At `199 Vs `350 For Tata DoCoMo Rel Comm Highest Data Plan At `2,100 For 21 GB At 21 mbps Tata DoCoMo At `2,500 For 15 GB At 21 mbps Tata DoCoMo Offers Cheapest Short-usage Plans

Federal bank hikes interest rates: Kerala based Federal Bank has hiked interest rates on Resident Term Deposits. Revised rates of interest for term deposits for 181 days to less than one year is 8.25%. The rate is 8.60% for deposits for a period of 1 year to less than 3 years and it is 8.75% for a period of 3 years and above, a bank press release said. Senior Citizens are eligible for additional interest of 0.50%.

Glaxo buys protein-drinks firm Maxinutrition GlaxoSmithKline said on Monday it had agreed to buy protein drinks firm Maxinutrition for 162 million pounds (USD 256 million) from its private-equity owners to complement its Lucozade sports drinks franchise. Glaxo said it was buying the company from Darwin Private Equity to expand its consumer healthcare business, which also includes Horlicks nutritional drinks. Maxinutrition, which makes the Maximuscle sports nutrition product for weight-trainers, recorded sales of about 36 million pounds in the year to end-April 2010, Glaxo said in a statement.

Tata International to buy out TN co: Noel Tata is taking Tata International on the acquisition route just six months after being at the helm of the Rs 10 billion trading company. Tata International is set to acquire up to 74% stake in Tamil Nadu-based Bachi Shoes, which is a significant player in the finished leather and footwear exports, as the company is now focused on leather business as a core operation in its evolving revival strategy. The acquisition proposal is before the board of Tata International and could be clinched shortly, said a Tata Group source. Tatas may be investing over Rs 1.3 billion for picking up majority shares, while the Bachi family would remain in active management with a sizeable stake. Boutique investment advisory firm Veda Corporate Finance has been advising the Bachi family on this potential transaction, sources added.

NMDC JV to give direct access of Indian steel market to Severstal: State-run NMDC`s proposed joint venture with Russia`s Severstal will give the foreign company direct access to the Indian steel market, considered the world`s second fastest growing after China, while also diversifying the local mining company into steelmaking to boost revenues. The collaboration, which will give NMDC technological steelmaking expertise from Severstal, marks the Russian company`s first foreign direct investment in the domestic sector. It will also pose a stiff competition to Tata Steel and SAIL as the new company will have its own iron ore and coal mines, say industry executives and analysts. Ownership of resources has been the differentiating factor for new private steel companies such as JSW, Essar Steel and Ispat as they have to buy expensive ores while competitors such as SAIL and Tata Steel have lower production costs due to their access to the resources.

Vedanta shareholders approve Cairn India deal: Vedanta Resources PLC`s proposed acquisition of a 51% - 60% interest in Cairn India from Cairn Energy was approved by its shareholders. Completion of the acquisition is expected to occur in Q2 2011.

Novartis to buy Aventis stake in rabies vaccine JV for USD 22 million Aventis Pharma, the Indian arm of Sanofi Aventis, is exiting its joint venture Chiron Behring Vaccines by selling its 49% to the other partner Novartis, Aventis said in a statement to stock exchanges on Monday. Novartis will buy the stake in the rabies vaccine venture for USD 22.4 million, it said. Novartis has been distributing the vaccine since February 2009. Aventis was doing this earlier. According to the agreement, Aventis will provide some support for Chiron`s manufacturing plant in Ankleshwar for three years. Aventis Pharma and Novartis Vaccines & Diagnostics have been at loggerheads over marketing the Aventis anti-rabies vaccine Verorab. Novartis had filed a suit in the Mumbai High Court in order to stop Aventis from marketing the drug directly and instead sell it through their joint venture. The companies have resolved their legal disputes along with this purchase agreement, the statement said.

Fortis rejigs promoter shareholding, RHC Holding consolidates: Fortis Healthcare today said its promoters are restructuring their holding in the company by transferring 81.42% stake in it to RHC Holding. In a filing to the Bombay Stock Exchange, the company said RHC Holding will buy 32.9 crore shares of Fortis Healthcare through an inter se transfer at a price of Rs 59 a piece aggregating to nearly Rs 19,411 million. The shares of Fortis Healthcare would be bought from Fortis Healthcare Holdings Limited which is in turn held by Malav Holding (MHPL) and Shivi Holding (SHPL).

Ashok Leyland bags big order Hinduja`s flagship Ashok Leyland has bagged an order for 600 vehicles from VRL Logistics of Hubli. The order comprises 500 multi-axle vehicles (MAV 3123 model) in the 8x2 configuration, a newly-developed, first of its kind for the Indian commercial vehicle industry along with 100 of the company`s 12-metre buses. The order is cumulatively worth Rs 1.25 billion, said Ashok Leyland managing director R Seshasayee here on Monday. Speaking to reporters, he said, ``our entire business strategy revolves around a deeper understanding of customer requirements and pain points to develop transport solutions that best meet their needs.`` A case in point is the 3123 (8x2) MAV that we have collaboratively developed with VRL, customiSed to suit their specific load carrying requirements as India`s leading logistic company, he added.

Everonn plans 1,000 centres in 3 years: Everonn Education has launched a project to widen its reach to 1,000 locations across India. The company plans to train at least one person from each district to run an education business. The project, Edupreneur, is to promote business leaders who will work in collaboration with Everonn to start operations in each districts, thus enabling the company to set up its centres in 1,000 locations within a period of three years, said P Kishore, managing director, Everonn Education. ``Everonn has been very successful with a whole spectrum of educational offerings and we are keen to repeat our success story with mini-Everonns in every district, mini-metros and metros,`` he said.

Nitesh to raise Rs 1.5 bn debt for retail foray project in Bangalore: Bangalore-headquartered real estate developer Nitesh Estates is planning to raise around Rs 1.5 billion of debt in the near future to fund its retail project in the city. The publicly-listed company, which is planning to enter the retail space with the development of `Nitesh Mall`, has a plan to invest around Rs 3.25 billion in this retail project. ``We are planning to raise around Rs 1.5 billion of debt to fund our retail project in the city. We are in talks with three banks and we expect to receive the closure in the first quarter of the next fiscal,`` L S Vaidyanathan, executive director of Nitesh Estates said. He also said that the company had already invested around Rs 900 million in the project as of now.

Lincoln Pharma ties up with US based Human Biosciences Inc: Ahmedabad based Lincoln Pharmaceuticals (LPL), has tied up with US based Human Biosciences Inc (HBI) for exclusive marketing and distribution of two of HBI`s wound care management products in India, Medifil and Skin Temp that enjoy a 22% market share in its category in India. The company can set up a manufacturing unit in the future to increase production of these products. Speaking on the development, Mahendra G Patel, managing director, Lincoln Pharmaceutical said, ``our mission at Lincoln Pharmaceuticals is to provide customers with healthcare products of high quality at an affordable price. We are planning to set up a manufacturing unit in India to increase production and expand our reach so that more people can avail the benefits of these products.``

NTPC signs PPA with Bengal govt for 1,600-Mw project: NTPC, the state-run power producer, signed a power purchase agreement (PPA) with the West Bengal government yesterday for a thermal unit it will be setting up at Katwa (Bardhaman district). ``From the plant, 50% of power will be allocated to the state government, 15% to the ministry of power and 35% to all other constituents in the region. We have no plans to sell it on a merchant basis,`` said Arup Roy Choudhury, chairman and managing director. ``The total investment for the 2x800 Mw Katwa project will be Rs 96 billion, roughly around Rs 60 million per Mw. Discussions are also going on for a greenfield (new) project at Santaldih (Purulia district),`` he said.

EGoM Likely To Meet On Dec 22 To Decide On Diesel Price Hike – PTI EGoM To Mull Hiking Diesel Prices By `1-2/L

Munjals to buy Honda’s 26% stake for $1bn – ET (Suggests 50% disc) – reported earlier

SEBI to track MF investments of politicians – BS

Cemex-Murli Ind deal hit a road block on valuations, SEBI glare – Agencies

SC Extends Stay Over Madras HC Order On Sterlit ALERT: Madras HC Directed Sterlite To Close Plant At Tuticorin, TN

HCC in Focus Jairam Ramesh Says Environ Min May Give Interim Order On Lavasa today ALERT Min Was Told To Decide Staying Of Lavasa Const By Dec

Rel Comm Expect Revenues From 3G To Start Coming Within 6-9 Months Will Tie Up With Telcos For 3G Roll Out Post March Will Roll Out 3G Svcs Across All 13 Circles In 90-100 Days Expect Jump In Subscriber Base Post Mobile Number Portability

Tantia Const Board meet on 16th to consider preferential allotment of Securities to the Promoters Promoter Group Companies on private placement basis.

Prism Informatics wins contract for SAP Support Project in Germany

Eros International announces Rs 29.5 crore gross worldwide for No Problem in its opening weekend

GMR Infra WOS GMR Power to get a installment of Rs 100 cr in dec 2010 from Tamil Nadu Electricity Board in ref to adjudication of disputes arising out of power purchase agreements.

Sarda Energy granted its consent to operate 3rd FBC Boiler installed at the Company's Captive Power Plant to generate additional 20 MW power

PNB: has completed the transaction for acquisition of 63.64% stake in JSC Dana Bank Kazakhstan. PNB has acquired 35 Million shares of 1000 Tenge each, at par, for 3.5 Bn Tenge (USD 23.765 Mio approx.)

ITD cement: Company in Joint Venture with its Promoter, Italian-Thai Development Public Company Limited has been awarded Letter of Acceptance from Delhi Metro Rail Corporation for Rs. 228 Crores Contract.

Ruchi Strips: bd meet today to consider Transfer of steel division, sale of land. Elgi equipements: ex bonus 1:1

Bio Whitegold Ind open offer at Rs 10/sh DoT Notices Demand Liquidated Damages For Rollout Failure

TRAI Says: DOT to send notices to telecos from today Notice for cancellation to some teleco for non-compliance

Two months given to telecos to respond to cancellation notices All notices will be sent by end of the week

Allahabad Bank Hikes Base Rate By 50 bps To 9% Allahabad Bank Increases BPLR By 75 bps To 13.25%

New Interest Rates Effective December 14

Indian Bank Ups Base Rate By 50 bps to 9% Ups BPLR By 25 bps To 13.25%


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