Wednesday, December 15, 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 5890-5980. we could see an up move as long as the market manages to stay above 5800 levels. All eyes on RBI meet scheduled for tomorrow. The crucial support on the downside for the Nifty is 5860 and resistance at 6010.

Global events to watch:

Þ Consumer Price Index

Þ Industrial Production

Þ Housing Market Index

Global indices Update @ 8:

Dow Jones : 11476 (+47.98)

NASDAQ : 2627 (+02.81)

Nikkei 225 : 10312 (- 03.81)

Hang seng : 23304 (- 126.2)

SGX CNX Nifty : 5950 (- 08.50)

INR / 1 USD : 45.01

Stocks in action for the day: Hero Honda, TFCI, RCom, OBC RCom, Apollo Hospitals, Bajaj Hindusthan...

Listing today – MOIL, issue price Rs 375 (Grey market premium Rs 200)

Oil co hike petrol prices by Rs 2.96/l, Hike to cover losses incurred on petrol

Hero Honda in Focus Hero Corp board meet today, official announcement expected tomorrow

RCom to raise USD 1.9 bn from China bank Cash-strapped Reliance Communications (RCOM) plans to borrow USD 1.9 billion, or Rs 90 billion, from China Development Bank, in a deal to be signed when Premier Wen Jiabao visits New Delhi on Wednesday. An executive at the Anil-Ambani promoted mobile service operator said 70% of the USD 1.9-billion loan from the Chinese bank-around USD 1.3 billion-will be used to repay costly loans it had taken locally to buy airwaves for launching third-generation (3G) services. He asked not to be named. The remaining USD 600 million will be used to buy mobile network equipment from Chinese vendors Huawei and ZTE, this executive added. These two Chinese telecom gear makers are building RCOM`s 3G networks across the country. The company has got RBI`s approval for borrowing this amount, he added.

RPower eyes Rs 50 bn loans The Anil Dhirubha Ambani group`s Reliance Power will finalise loans of Rs 50 billion (USD 1.1 billion) with Chinese banks for its 4,000 mw Sasan power project during the visit of the country`s Premier Wen Jiabao on Wednesday, industry officials said. Bank of China, China Development Bank and the Export Import Bank of China along with Standard Chartered Bank, which arranged the loans, have finalized the term loans after Reliance Power signed a memorandum of understanding in Shanghai last October for loans amounting to Rs 560 billion for various projects it is executing. With the finalisation of 13-year debt, Reliance Power has secured Chinese commitment for the Sasan Project on a long term basis, ensuring support from Chinese equipment suppliers during operations & maintenance of the Project, industry officials said.

Bajaj Hindustan to set up power projects in next 4-5 yrs Sugar major Bajaj Hindusthan has committed investments to the tune of Rs 225 billion in power projects to come up in Uttar Pradesh over the next 4-5 years. The company on Tuesday entered into a MoU with the UP government to set up a 1980 MW thermal power plant in Bargarh area of Chitrakoot district. The project would entail an investment of Rs 100 billion and power production is expect to commence in 2015, said the Joint Managing Director, Bajaj Hindusthan, Kushagra Nayan Bajaj. The company has committed to give 100% of the power generated from the plant to the state government. Earlier, the company had signed a MoU in April this year, to set up another 1,980 MW power plant in Lalitpur district. This power project is expected to be commissioned by 2014.

Nitesh to raise Rs 1.5 bn debt for B`lore project Bangalore-headquartered real estate developer Nitesh Estates is planning to raise around Rs 1.5 billion debts 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 plans 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 expect to receive the closure in the first quarter of the next fiscal,`` LS Vaidyanathan, executive director of Nitesh Estates, said. The company has already invested around Rs 900 million in the project as of now. Earlier, HDFC Property was understood to have acquired around 25% in this retail SPV for USD 25 million. However, it didn`t materialise due to some technical glitches in the deal structure.

Apollo to invest Rs 500 mn in cosmetic clinics Chennai-based Apollo Hospitals Enterprise is planning to invest around Rs 500 million in setting up Apollo Cosmetic Clinics in various parts of the country, to offer comprehensive treatments for a range of cosmetic enhancements. Launching the first cosmetic clinic in Chennai, Dr Prathap C Reddy, chairman and founder of Apollo Hospitals group, said, ``We will launch another four to five clinics in various parts of the country in next few months. The growth of this business segment is almost 165% per year in India. It would be the only cosmetic clinic chain offering comprehensive options for cosmetic treatments.`` Dr Preetha Reddy, managing director, Apollo Hospitals group, said that the skin care and cosmetic treatment business in India was gradually growing to Rs 4.5 billion. Apollo`s current operations in the segment were around Rs 500 million, she said.

KPR Mill to invest Rs 5 bn on capacity expansion K P R Mill, a Bombay Stock Exchange listed company, is planning to invest around Rs 5 billion to expand its spindle capacity and to set up wind farms. The proposed expansion of mill capacity is expected to increase company`s top-line by 40%, which was around Rs 8.37 billion in the last fiscal. Meanwhile, the company has floated a subsidiary to focus on high end garment market and high valuecustomers. P Nataraj, managing director, K P R Mills said, currently, the company`s capacity is 212,000 spindles and is planning to add another 150,000, by the way of brown field expansion and through a greenfield facility between Tirupur and Coimbatore. The new unit is expected to commence its operation in January 2011 and likely to reach the full capacity by May 2011, he said.

MoEF Sources Say: Order On Lavasa Only By :: December 15 Evening Status Quo On Lavasa Remains :: Till Now Ministry Yet To Examine :: Documents Given By Lavasa HCC Has Said That Work At :: Lavasa Has Been Stopped HCC Sought 15 More Days :: For Submitting Information

Lavasa Says MoEF Order Under Pressure From :: Political Activists Carrying Out Work Within :: Permitted AreaCo Exempt From 1994 & 2004 :: EIA Notifications EIA: Environment Impact :: Assessment Issues Raised By MoEF 'Very :: Generic'

TFCI Board considered requisition received from IFCI Ltd. for convening Extraordinary General Meeting (EGM) of TFCI for appointment of their five(5) directors and removal of one(1) independent director. Out of 5 names proposed to be appointed as directors in EGM, three(3) were employees of IFCI and its group/subsidiary Company and their appointment was rejected by the Board in the meeting held on November 25, 2010.

GTL Infra Board meet on dec 16th consider and approve the Draft Scheme of Amalgamation of SPV (which acquired Aircel Tower Assets) with the Company.

MPS Board meet on 22nd to consider the merger of all its subsidiaries with the Company including the subsidiary in USA.

Bank of India Increase its Base Rate from the existing 8.50% p.a. to 9.00% p.a. and Benchmark Prime Lending Rate (BPLR) from existing 12.50% p.a. to 13.25% p.a. with effect from December 15, 2010.

Govt Okays L&T Finance Proposal To Bring `641 Cr FDI - Govt Approval For FDI In L&T Finance Paves Way For IPO

Etisalat DB, Uninor, Loop Tele :: Sent Showcause Notice STel & Datacom (Videocon), :: Allianz Infra Sent SCN Showcause Based On CAG's :: Report On Eligibility Norms ALERT - CAG Said 6 New Telcos Did Not :: Meet Eligibility Criteria

NHAI Approves 7 Projects Worth Rs 5,413.58 cr Spanning 1068.96 km

OBC Hikes Base Rate By 50 bps :: To 9% Effective WednesdayOBC Hikes BPLR By 75 bps :: To 13.25% Effective Wednesday

Eton Park buys 10% in JSW Infra for $125m (Unlisted co)

ZEE Learn listing likely next week

India Hotels skips Orient Express FPO, stake dips below 8% - TOI

Carlyle-Advent ropes in Paul for Patni bid – TOI

Power Grid board approves investment of Rs 5540 cr in various power projects to be commissioned in next 32 months


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