Tuesday, December 28, 2010

Market Outlook: Indian markets are expected to open in positive terrain

Market Outlook: Indian markets are expected to open in positive terrain and trade in the range of 5950-6060. We expect market is still in a sideways mode with a positive bias. The crucial support on the downside for the Nifty is 5950-5920 and resistance at 6090-6120.

Global events to watch

Þ ICSC-Goldman Store Sales

Þ Redbook

Þ Consumer Confidence

Þ State Street Investor Confidence Index

Global indices Update @ 8:

Dow Jones : 11555 (-18.00)

NASDAQ : 2667 (+01.67)

Nikkei 225 : 10316 (-39.04)

Hang seng : 22611 (-221.9)

SGX CNX Nifty : 6024 (+16.50)

INR / 1 USD : 45.15

Stocks in action for the day: NTPC, Lanco Infra, Patni, Sanghi Ind, BHEL, BEL, ACC...

Tata Steel MD says -No discomfort in Rio Tinto bid for Riversdale -Have not decided on counter bid for Riversdale -Have not appointed advisors for Riversdale counter bid -Interested in coal from Riversdale -Looking for stable management at Riversdale -Riversdale stake not for financial incentive -'If ICVL serious, they should bid on Riversdale' -Teesside unit sale to be completed in 2-3 months -To invest USD 500 million in FY12 in debottlenecking European operations-European operations utilisation seen 85-90% in October-March -Scouting for coking coal mines in Australia, S Africa, Canada -Product prices in Europe seen rising in January

NHB to seek builder, corporate wise exposure on 1/2 year basis -NHB to disallow intermediaries in loan sanctions -NHB to direct HFCs to closely monitor end-use of funds -HFCs to report projects above certain threshold limits -NHB reiterates specific rules on due diligence, transparency -NHB communicated revised guidelines to HFCs informally -Revised guidelines to be released in January

Salman Khurshid says: -Nothing can be flagged as an irregularity in Swan Telco -We were only looking for factual irregularities -DoT to consider issue of Swan Telecom alert MCA submits Swan findings to DoT

BHEL & Bharat Electronics, two PSUs in top R&D spenders in India In India Inc`s research and development firmament, it`s the Bharats that shine the brightest. Two public sector undertakings, Bharat Heavy Electricals Limited and Bharat Electronics, are standout performers among brick-and-mortar companies in India. If you leave aside pharma companies, whose R& D average investments are traditionally higher owing to the research-driven sector they operate in, BHEL (Rs 8.3 billion) and BEL (Rs 2.92 billion) spend more on R&D than most of their manufacturing industry peers. While it is only recently that large sections of Indian industry have realised the importance of R&D, for both BEL and BHEL, it has been a part of their organisational DNA for more than a decade. The compulsions, however, for the two PSUs to embrace R&D are somewhat varied. For the Rs 380 billion BHEL, one of the two largest engineering companies in India along with L&T, it was a matter of holding its own against global giants in the post-liberalisation world. For the Bangalore-headquartered BEL, being a key defence supplier, an R&D edge is vital for the country`s security.

Holcim raising stake in ACC The world`s second largest cement maker Holcim Group has started strengthening its stake in its Indian subsidiary ACC through creeping acquisition for the first time after September 2008. Ambuja Cement India and three other Holcim entities have raised their stake in the company by 2.01% to 48.21% through open market transactions between December 10 and 24, ACC said in a notice to stock exchanges on Monday. These purchases seems to be part of creeping acquisition that allows promoters to increase their stake in a company by up to 5% in a financial year without making of an open offer, analysts said. Promoters can do this as long as their total holding is below 75%.

Tata International buys 76% stake each in two footwear firms Tata International (TIL), the trading arm for Tata entities, said it has acquired 76% stake each in Bachi Shoes India (BSIPL) and Euro Shoe Components (ESCPL). Based in South India, BSIPL is India`s largest manufacturer of children`s footwear, which it supplies to several international brands across Europe. ESCPL is a manufacturer of footwear soles. The Bachi family will continue to hold the residual stake and will work closely with TIL to manage and grow this business, a company statement said here. With these acquisitions, TIL has established significant presence in the children`s footwear segment. The buys considerably augment TIL`s presence in the manufacture and export of footwear, take capacity to over 5 million pairs per year and make TIL one of India`s largest exporters of footwear, it said.

BDL merger into USL becomes effective Liquor manufacturer United Spirits (USL) has said that its merger with Balaji Distilleries (BDL) will be effective. The company has filed the order of Appellate Authority for Industrial and Financial Reconstruction (AIAFR) in this regard with the Registrar of Companies. Filing of the certified true copy of the order of the AIAFR by BDL, Chennai Breweries Private (CBPL) and the company with the respective Registrar of Companies, the scheme of arrangement became effective, United Spirits said in a filing with the Bombay Stock Exchange. AAIFR had sanctioned the rehabilitation scheme of BDL vide their order dated November 29, 2010, it said.

Lanco Infratech to hive off its power business Diversified infrastructure company Lanco Infratech is hiving off its power business into a separate company with the aim of hitting the capital market with an initial public offer in 2012 for financing growth plans, chief financial officer J Suresh Kumar told ET. The company, which has moved its headquarters from Hyderabad to Gurgaon to be closer to the decision makers, has an operational power generation capacity of 2,100 megawatts (mw) under eight special purpose vehicles or SPVs. It plans to raise its capacity to 4,000 mw by 2011 and subsequently to 15,000 mw by 2015. ``We are already going through the process of transferring all our investments in power to a holding company. We are busy creating a management and finance team for the company,`` Kumar said. The power business currently accounts for around 55% of the company`s revenue.

NTPC signs PPA with Gridco for its proposed projects NTPC signed a Power Purchase Agreement (PPA) with the state-owned Grid Corporation of Orissa (Gridco) for sale of power from the central sector`s proposed projects in three eastern states of Orissa, West Bengal and Bihar. The PPA, signed in presence of Orissa`s energy minister A S Nayak, aims to facilitate sale of power from NTPC`s proposed thermal power plants at Darlipali and Talcher Thermal Expansion in the state, Katwa in West Bengal and Pirpainti and Muzaffarpur Stage II in Bihar to be commissioned during the 12th plan period. NTPC, which was setting up thermal generation stations in the eastern region with an installed capacity of 7830 MW, would benefit states like Orissa, West Bengal, Bihar and others.

ONGC to hike Pawan Hans stake to 49% State-run oil firm ONGC is hiking its stake in Pawan Hans Helicopters (PHHL) from 21 to 49%, even as another top public sector company firms up plans to invest Rs 550 million in the state-run chopper firm. This was announced by PHHL CMD R K Tyagi at a ceremony here to launch seaplane services between the Andaman and Nicobar Islands to promote tourism. This is the first time such a service is being offered in India. While ONGC will raise its stake in PHHL to 21% from 49%, NTPC has proposed to make an investment of Rs 550 million in the company, Tyagi said. At present, the government owns a 79% stake in the chopper firm, while ONGC has 21% participating interest. PHHL has been carrying out offshore operations for ONGC for the last 24 years. At the function, the first seaplane, named Jal Hans, was inducted by PHHL in the presence of Civil Aviation Minister Praful Patel.

Aventis Pharma completes sale of 49% in Chiron Behring Vaccines -Aventis Pharma gets Rs 100 crore from Chiron Behring stake sale

Sanghi Brothers veering towards division of assets – DNA (Listed entity Sanghi Industries)

iGate set to buy Patni Computer for USD 1 billion, (Rs 525/share) after its reached an agreement on the contentious non compete issue – ET

Idea Cellular CEO Sanjeev Aga to step down ahead of his term – ET

Lanco Infra to hive off power biz into separate entity, list the company in 2012 – ET

NTPC commissions 500 MW 7th unit of Korba plant

FIPB to take up 38 foreign investment proposals on Friday including Reliance Broadcast and ABG Shipyard


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