Tuesday, December 21, 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 5900-5990. Asian stocks rose as commodity prices advanced and a Federal Reserve official said U.S. economic growth next year may be stronger than some economists forecast, boosting confidence in a global economic recovery. The crucial support on the downside for the Nifty is 5850 and resistance at 6070.

Global events to watch

Þ ICSC-Goldman Store Sales

Þ Redbook

Þ 4-Week Bill Auction

Global indices Update @ 8:

Dow Jones : 11478 (- 13.78)

NASDAQ : 2649 (+06.59)

Nikkei 225 : 10291 (+75.27)

Hang seng : 22786 (+147.6)

SGX CNX Nifty : 5960 (+10.00)

INR / 1 USD : 45.38

Stocks in action for the day: Ispat, JSW Steel, Patni, Sun Pharma, Bharti, ONGC, JSW Steel, Voltas...

Ispat-JSW Steel Banking sources say -JSW Steel makes offer to Ispat CDR lenders -IDBI Bank, ICICI Bank, IFCI part of meeting -Bankers give informal approval to JSW Steel's bid for Ispat -Ispat will have to issue fresh shares -Confident of deal going through Sources say -Ispat lenders reject waiver of outstanding preference shares dividend -Outstanding dividend on preference shares amounts to Rs 700 crore -Ispat to use Rs 200-250 crore of proceeds to clear debt

Ispat Industries : -IDBI converts part of its loan into equity at Rs 14.75/share Alert: Ispat AGM today

Patni -: Sources -Prospective bidders for Patni likely to submit financial bids today -Patni board may prefer bidder with IT background -iGate may emerge likely frontrunner for stake-iGate likely to be backed by Apax Partners -Patni promoters likely to finalize bidder by end of week -Other bidders include Advent International-Carlyle, Fujitsu -Patni promoters eye premium to current market price Alert: Patni brothers own 45.8% in Patni Alert: GA owns 16% in Patni -Patni Brothers, GA likely to exit stake in co

Cipla: -Cipla denies reports of stake sale in company -News reports of stake sale in company 'baseless'

Apollo Hospital chairman Dr C Pratap Reddy says: -Will do rejuvenation therapy in a big way; -Will tie up with Kottakkal Arya Vaidya Sala; -Inaugurated Hyd cosmetic clinic today; -Will have 6 cosmetic clinics; -Investing about Rs 30 crore

ONGC: Subsidy burden to leave co poorer by Rs 14 bn Investors who would be busy tucking away their hard-earned money for the forthcoming ONGC market offering in Q1 2011 need to do a quick rain check on the company`s risk factors. The ad-hoc subsidy burden that ONGC has to bear and the royalty payout on its Cairn assets may not only take off the icing on the scrip, but may leave a smaller slice of the cake too. However, the degree of risk varies largely between the two factors. While the subsidy risk is swallowing away the company`s returns, the royalty issue is just a drop as far as its impact on the bottom line is concerned. Sample this. In 2010-11, ONGC is estimated to shell out in excess of Rs 200 billion as its subsidy share for oil marketing companies, while it will be left poorer by only Rs 14 billion, because of the skewed royalty policy that governs its investments in the pre-auction Cairn blocks. In the latter, it is more a question of principle and business strategy.

CIL may revise offer for Drummond assets Coal India mulls a second indicative bid for the Colombian assets of the US miner Drummond Co. as private funds and rivals Xstrata and Glencore join the race to get a share of soaring exports from the South American nation, said three people aware of the plans. Coal India`s initial offer did not find favour with the privately-held Drummond which had planned to access capital from mining companies to expand capacity. Coal India offer might have looked unattractive with interest from other global miners in the asset, said the sources. Media reports said the bid was about USD 5 billion. According to a Bloomberg report, those mines are valued at more than USD 6 billion. ``We offered a non-binding bid earlier this year, but Drummond did not find the price too attractive,`` said a Coal India official, who did not want to be identified. ``Drummond found it on the lower side and we have decided to pursue the takeover deal.`` However, Coal India chairman, Partha S Bhattacharyya declined to comment on the revival of the bid.

Tata Chemicals to buy British Salt for Rs 6.6 bn Tata Chemicals, the world`s second largest soda ash maker, is to acquire British Salt, a soda ash raw material maker in the UK, for £93 million (Rs 6.6 billion). The acquisition is being done through a holding company, Tata Chemicals Europe Holdings Ltd. Tata Chemicals plans to close the deal within the next 30-35 days. The plan is to fund the acquisition through debt finance against the assets, on a non-recourse basis to Tata Chemicals, said P K Ghosh, executive director and chief financial officer. British Salt owns brine wells (saturated water, with large amounts of a salt) in the UK, with a residual life of 50 years. The acquisition provides an opportunity to secure long-term brine supplies for Tata Chemicals` subsidiary, Brunner Mond of UK, a manufacturer of soda ash (sodium carbonate) and other salt products, said executives at a press conference in Mumbai.

Voltas to form joint venture with Saudi company Tata Group company Voltas on Monday said its board of directors had approved the formation of a joint venture with Saudi Arabia`s Olayan Financing Company to execute electro-mechanical projects in the country. ``The joint venture agreement incorporating the terms and conditions JVC has been executed between Voltas Limited and Olayan Financing company on December 18, 2010,`` Voltas said in a filing to the BSE. Both the companies will hold equal stake in the joint venture, which is expected to be operational from April 2011. Through this joint venture, Voltas seeks to leverage its vast experience, track record and expertise for mechanical, electrical and plumbing projects in Saudi Arabia, the firm said.

RIL - Sources from Agencies -RIL to shut 200,000 bpd FCC unit at Jamnagar for a month -Shutdown to begin January-end

Home Ministry to look into 3G services ban -DoT & Home Ministry officials meet 3G telcos alert: DoT has ordered 3G telcos to stop video calls -Reliance Communications, Bharti Airtel, Tata Tele impacted by order

French major Rhodia buys engg polymer division of PI Industries for Rs 70 crore -Singhi advisors sole advisor to transaction

Roche and Warner Chilcott have sued Sun Pharma for alleged patent infringement of Actonel – BS

Shiv Vani board meet on December 24 to consider and approve issuance of Optionally Convertible Debentures for an amount not exceeding Rs 2500 million for repayment of rupee debts and long term working capital requirements

Net4 India board meet on December 28 to discuss the potential acquisition of an Internet- related business / Company along with other matters.

Bhoruka Aluminium Hon'ble High Court of Karnataka has approved the scheme of Amalgamation of Bhoruka Agro Greens Limited (BAGL) with the Bhoruka Aluminium Limited (the Company) with effect from appointed date i.e. April 01, 2010.

REC approved a proposal for sale and transfer of 50,000 equity shares of Raichur Sholapur Transmission Company Limited (RSTCL), presently held by REC Transmission Projects Company Limited (RECTPCL) and its nominees, to Consortium of M/s Pate! Engineering Ltd, M/s. Simplex Infrastructure Ltd. & M/s. BS TransComm Ltd

Lanco Infratech said 1320 MW (2 x 660) Thermal Power Project (based on Super Critical Technology) being developed by LANCO Vidarbha Thermal Power Limited, a Subsidiary of the Company, in Maharashtra, has achieved Financial Closure. The project, estimated to cost Rs 6,936 crore, would be financed with a debt of Rs 5,549 crore and an equity of Rs 1,387 crore.

Aditya Birla Nuvo board approves allotment of 1.05 crore shares at Rs 541.19/share on account of warrant conversaion

India Infoline board meet on December 23 to consider the proposal for buy back of equity shares

Sumeet Industries board meet on December 22 to consider rights issue


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