Wednesday, December 22, 2010

Market Outlook: Indian markets are expected to open in positive note on the back of constructive action

Market Outlook: Indian markets are expected to open in positive note on the back of constructive action seen on the global counters. US stocks rose on Tuesday as solid earnings and a flurry of merger activity underpinned a steady upward trend that reinforced investor optimism for the coming year. Adding to that most of the Asian stocks advanced for a second day as commodity producers gained after copper climbed to a record, crude oil rose and U.S. retail sales increased last week, adding to signs the economic recovery is on track. Back to domestic markets we see market support on the downside for the Nifty near 5940 and resistance at 6090.

Global events to watch


Þ Existing Home Sales

Þ FHFA House Price Index

Þ Corporate Profits

Þ MBA Purchase Applications

Global indices Update @ 8:

Dow Jones : 11533 (+55.03)

NASDAQ : 2667 (+18.05)

Nikkei 225 : 10376 (+05.95)

Hang seng : 23101 (+108.0)

SGX CNX Nifty : 6019 (+05.50)

INR / 1 USD : 45.26

Stocks in action for the day: Patel Engg, NHPC, ONGC, Tata Steel, Ispat, Coal India, Union Bank...

Ispat open offer at Rs 20.54/sh, offer opens on February 12, closes on March 3

Oil Secretary says: -Diesel, cooking fuel prices need to be raised -Oil Marketing companies' FY11 loss estimated at Rs 66,000 crore -Ministers' panel to meet on diesel, LPG prices by month-end -Loss on diesel currently at Rs 6.50/litre -Loss on LPG currently at Rs 275/Cylinder -No decision yet on IOC FPO -Still examining Cairn-Vedanta deal

Patni - -Patni promoters may have got 3 financial bids for stake sale -iGate may have emerged as highest bidder for Patni stake -Financial bids likely between Rs 480-550/sh -iGate likely to be backed by Apax Partners-Other bidders include Advent Intl-Carlyle, Fujitsu -Patni board meeting likely by end of week to finalise buyer Patni promoters own 45.8% stake, GA 16% in Patni

Tata Steel in focus -Australian SE puts trading halt on Riversdale Mining -Riversdale securities to be placed in pre-open till December 23 -Riversdale Mining recommends trading halt pending announcement -Tata Steel holds around 24% stake in Riversdale

SFC Sistema Exclusive -Open to ONGC equity stake in Bashneft & Russneft Have signed new MoU with ONGC today -Sistema owns 49% in Russia's Bashneft; ONGC owns majority stake in Imperial Energy; ONGC-Bashneft talks for Arctic Trebs & Titov Oilfields -Can explore jointly with ONGC in other countries -Can consider joint investments in existing & future assets -In talks with Indian generic drug firms for tie ups -India continues to be very promising market for telecom Sistema owns majority stake in MTS India -Have not reduced interest in Indian telecom Russian govt has 17% stake in SSTL for USD 600 million; SSTL: Sistema Shyam Telecom; runs CDMA network -Future investments depend on resolution of policy tangle -SSTL complies with all regulatory requirements

Cotton Yarn - DGFT notifies cap on cotton yarn exports -Cotton yarn added to restricted category list Cap on cotton yarn exports w.e.f today Cotton yarn export cap at 720 m kgs -531 m kgs of cotton yarn already exported -GoM to review cotton yarn exports on January 15 -Move aimed at cooling domestic cotton yarn prices

Coal India close to buying 15% stake in Australian mine: Coal India (CIL) is close to buying a stake between 10% to 15% in an Australian mine owned by Peabody, a US company. Peabody will transfer the mine to a special purpose vehicle or a company set up for a particular transaction in which it will hold up to 90%, with the Indian company owning the rest, a CIL official said. He spoke on conditions of anonymity as the transaction has not been closed. CIL is eager to buy Wilkie Creek mine, located in the province of Queensland, as part of its drive to import coal. The company`s chairman, Partha S Bhattacharyya, has said he expects to strike a deal soon. ``The plan is to form a new company by Peabody to which the Wilkie Creek mine will be transferred. CIL will take 10-15% stake in this company at a price which is being negotiated,`` the official said. Earlier, the CIL chairman had said the difference between the price offered by CIL and the price being asked by Peabody has narrowed considerably.

Small investors raise concern over Satyam-TechM merger talk Small shareholders of Mahindra Satyam on Tuesday raised concern over talk of a merger of the company with Tech Mahindra, saying that such a move will affect their interests. Vehemently opposing the idea of what they called a ``premature merger``, they expressed fears that such a merger will favour Tech Mahindra shareholders and leave them in the lurch. The shareholders were speaking at Satyam`s first annual general meeting in Hyderabad after the takeover by Tech Mahindra. ``We want the company to come back on its feet before the management pushes for a merger. If done in a hurry, the merger will not help investors like us. In order to get a good deal, we want the share price to reach a reasonable level. This will happen only if foreign institutional investors start investing and in the current scenario, no FII would look at the company for investment,`` said GN Ravi, a shareholder.

Union Bank inks MoU with BSNL, MTNL Union Bank of India (UBI) today signed an agreement with its public sector peers from the telecom space, BSNL and MTNL, under which the lender will get access to telecommunication technologies at competitive rates. The memorandum of understanding (MoU) signed entitles the bank to access latest network technologies and preferred services at highly competitive prices, the government lender said in a statement issued here. The bank has already been using the services of Bharat Sanchar Nigam (BSNL) and Mahanagar Telephone Nigam (MTNL) for its wide area network ( WAN )) across the country, it added.

Patel Engg wins 3 bn rupee orders Patel Engineering said on Tuesday its consortium with BS TransComm and Simplex Infrastructure has won an order worth 3 billion rupees from REC Transmission Projects to set up a 765 KV transmission system. The completion of the project is expected by March 2014 and the operation period is for 35 years, it said in a press release.

Dr Reddy`s inks pact with Russian firm R-Pharm Drug firm Dr Reddy`s Laboratories today said it has signed a pact with Russia-based R-Pharm for co-development of high technology products and collaboration in manufacturing and marketing. The company has entered into a licencing, technology transfer, manufacturing and marketing agreement with R-Pharm of Russia, Dr Reddy`s Laboratories said in a statement. ``The agreement allows us to bring innovative medicines to the Russian people with active collaboration of a local pharmaceutical company-R Pharm,`` Dr Reddy`s MD and COO Satish Reddy said. The collaboration is in the area of high technology and works on a profit sharing model.

Jubilant FoodWorks to expand food product portfolio Jubilant FoodWorks, the exclusive franchisee holder of Domino`s International and the undisputed leader in the country`s pizza market with a share of over 50%, is looking to diversify its range of food products. The company known for its undiluted focus on pizza is now in talks with reputed global food chains to sell their food products on the franchisee models at the Domino`s Pizza outlets. Ajay Kaul, chief executive officer, Jubilant FoodWorks said, ``We are the master franchise for Domino`s International and we are going to continue our strong focus on the pizza market. We would not be indiscriminately launching new products but we are in discussions with select international food chains for offering their products on the franchisee model.``

DoT – Sources -DoT firm on market-driven price for all spectrum -Kapil Sibal indicates DoT thinking to telco bosses -Kapil Sibal assures industry of progressive policies Sibal met Ratan Tata, Anil Ambani, Sunil Mittal today

Shell Union sources say from agencies -Essar makes credible bid for Stanlow Refinery -Essar given February bid deadline for Stanlow

ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corp, today signed initial agreements to barter its stake in its Russian unit Imperial Energy for acquiring a 25-30% interest in Sistema-owned JSC Bashneft.- PTI

NHPC to form JV with J&K State Power Development Corp, PTC India

Patel Engineering forays into Independent Power Transmission; Bags the project to establish 765 KV transmission system associated with Krishnapattanam Ultra Mega Power Plant in Consortium with M/s Simplex Infrastructure

Oil India board to consider dividend

Nitin Fire: Consider and approve strategic deal, joint venture, alliance, strategic partnership, formation of new company and acquisition of new business

ABG Infra board meet today to consider the proposal for buyback of company's own equity shares not exceeding 10.00%

Securities in F&O ban: Ispat Industries, Core, Kingfisher Airlines


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