Monday, January 3, 2011

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

Market Outlook: Indian markets are expected to open in positive terrain on back of recovery seen on the global counters. Overall market should continue to be on up note. The crucial support on the downside for the Nifty is 6060 and resistance at 6200.

Global events to watch:

Þ ISM Mfg Index

Þ Construction Spending

Global indices Update @ 8:

Dow Jones : 11577 (+07.80)

NASDAQ : 2652 (- 10.11)

Nikkei 225 : 10228 (- 115.6)

Hang seng : 23277 (+242.3)

SGX CNX Nifty : 6180 (+16.50)

INR / 1 USD : 44.81

Stocks in action for the day: Patni, Tata Motors, IOC, HPCL, BPCL, Ashapura, KFA, SBI...

Patni -: Sources -Patni board raises concern on iGATE deal-Patni board unhappy with iGATE’s 5-year strategy for Patni -Patni board raises reservations on iGATE strategy -Patni board to meet to discuss iGATE strategy report -Patni shareholders, clients concerned on integration issue -Conflict arises between GA, Patni promoters over valuation -Conflict between GA & Patni promoters on non-compete fees -Patni promoters yet to agree to non-compete fees with iGATE iGATE postpones corporate announcement -iGATE says in quiet period; can't comment till earnings iGATE's current revenues at USD 230 million, employee count of 6,910 alert: Patni's current revenues at USD 700 million, employee count of 13,995

Auto sales Update: Tata Motors: -December total sales up 31% at 67,441 units (YoY) -December Nano sales up 60% at 5,784 units (YoY) -December total exports up 68% at 5,809 units (YoY) Tata Motors says: -Raise utility vehicles prices by USD 8,700-14,500 -Raise CV prices by USD 1,500-30,000

Govt sources say – Exclusive -Textile Ministry seeks cabinet nod for additional Technology Upgradation Funds Scheme -Textile Ministry seeks Rs 2,003 crore from Cabinet for 2011-2012 under Technology Upgradation Funds Scheme -Textile Ministry seeks Rs 5,500 crore from Cabinet to pay for past commitments -Technology Upgradation Funds Scheme policy to see few changes -No interest subsidy for affluent treatment plans

IOC, HPCL, BPCL lose Rs 2.75 bn in revenue every day on diesel sale State-run oil marketing companies IOC, HPCL and BPCL have seen their losses on diesel sales climb to almost Rs 7 per litre amid a steep rise in international crude prices. ``The three retailers, who calculate the desired retail price on 1st and 16th of every month based on the average international price in the previous fortnight, were losing Rs 6.09 per litre on diesel till last week. But this month, the losses have climbed to Rs 6.99 a litre,`` an industry official said. Based on the average price of imported crude in the second fortnight of December, the three firms are losing Rs 2.75 billion in revenue every day on selling diesel, domestic LPG and kerosene at the subsidised rates dictated by the government, which are way below the actual cost.

NTPC to set up 4,000 MW power project in Vizag NTPC will set up 4,000 MW power project at Visakhapatnam in Andhra Pradesh at a cost of Rs 230 billion, officials said today. The state Chief Minister N Kiran Kumar Reddy today cleared the State Government`s concurrence for buying 50% of the power generated (2,000 MW) at the plant. The tariff for the power generated from the plant to be located at Pudimadaka, Anakapalli Mandal, Visakhapatnam District will be decided by the Central Electricity Regulatory Commission (CERC), according to a press note. Andhra government had conveyed its willingness for the project in November on the condition that at least 50% of the power produced there shall for all times be allocated to the State which was agreed to by NTPC.

Hero Honda sales jump 33% in December 2010 The country`s largest two-wheeler maker Hero Honda today reported a 33% growth in sales at 5,01,111 units for December 2010 over the same month in the previous year. In a statement, the company said it has recorded a sales growth of 16.4% during the calendar year 2010 with cumulative sales of over 5 million units. ``2010 has been an outstanding year for Hero Honda. For the coming year, we further intend to solidify our leadership by launching new products combined with customer-focused marketing programs,`` Hero Honda Motors Sr VP (Marketing & Sales) Anil Dua said.

Emami expects 15-20% growth in Chyawanprash segment Kolkata-based FMCG firm Emami is expecting a 15-20% growth in its Chyawanprash segment even as its plans to consolidate all its brands under the category, a top company official said. The company will also spend Rs 120-150 million in the current fiscal to boost the sales of its popular brands through its new marketing initiative, the official said. ``This year we expect around Rs 15-20% growth in our Chyawanprash segment as against a flat growth last fiscal. We have earmarked Rs 120-150 million as marketing spend. We are looking at consolidating all our brands,`` Emami`s Director, Aditya Vardhan Agarwal told PTI here. Currently, the segment contributes around 10% to the company`s total revenues, he added.

Tata Steel, Nippon to ink Rs 24 bn JV by Jan-end Tata Steel plans to ink an agreement with Japan-based Nippon Steel Corporation by the end of this month. It plans to set up a Rs 24 billion plant for producing auto-grade steel. The proposed joint venture (JV) facility is expected to commence operations in the next two years at Tata Steel`s existing unit in Jamshedpur. ``The JV with Nippon will be signed by the end of January. We expect to start production by early 2013,`` said Tata Steel Managing Director H M Nerurkar. With a 50:50 holding ratio, the JV would come up at an investment of Rs 24 billion. The facility`s initial capacity would be 0.6 million tonne a year, Nerurkar said. It aims to capture the growing demand for high-tensile auto-grade steel in India. Nippon, the world`s second largest steel maker, will transfer its technology for producing auto-grade steel.

Ramky Estates sets sight on East, to invest Rs 3 bn Ramky Estates and Farms, the real estate arm of the over Rs 30 billion Ramky Group, will be entering eastern India in the next six months, according to group director M Goutham Reddy. ``We are currently evaluating the eastern side, Bhubaneswar and Kolkata to start with. Hopefully, we should close the land acquisition deal, 100 acre in each of these cities, in the next six months,`` he told Business Standard. Reddy said the company was looking at creating two integrated townships in joint development with land owners in Bhubaneswar and Kolkata, together having a built-up area of about 7 million sft with an investment of Rs 3 billion.

TVS Motor December sales jump 42% Driven by domestic sales across all product segments, TVS Motor Company has reported 42% growth in December sales, as compared to the same period last year. The company sold 171,790 units in December 2010 against 120,913 units in the same month of the previous year. Cumulative sales of the company for the period April-December 2010 stood at 1.5 million units. Total two-wheeler sales rose by 41% to168,359 units in December 2010 from 119,701 units registered in December 2009. Consequently, the cumulative two-wheeler sales for the period April to December, 2010, increased by 34% with sales of 1.48 million units over 1.10 million units in April to December, 2009. Domestic sales of the company increased by 46% with sales of 149,357 units in December 2010 against 102,479 units reported in December 2009.

Kapil Sibal Says: -E-Governance in IT domain to be strengthened at district level -Telecom E-Governance draft note to be prepared in 100 days -Want to bring transparancy in telecom -Rules under cyber security act to be notified -To make amendments to strengthen IT Act Want govt revenues to be generated by optimum use of spectrum -To consult key stakeholders for clear spectrum policy -Looking at TRAI's Recommendations in dealing with spectrum -Need to balance interests of consumer, industry & govt -Clear & transparent spectrum policy in next 100 days -National frequency plan to be launched in 100 days -Formulation of national telecom policy in 100 days -Security issues to be resolved to launch 3G services -Considering 2G telcos representations -Revenue sharing formula for spectrum allocation may change -No possibility of taking back spectrum & returning money

Finance Ministry says: -FIPB approves FDI proposals of Rs 23,700 crore in CY10 -FIPB held 14 meetings in CY10 -FIPB received 387 proposals, approved 212 proposals -77 proposals rejected, others under consideration

M&M: -December total sales up 42% at 34,062 units (YoY) -December tractor exports at 1,999 units versus 922 units (YoY)

SBI hikes base rate by 40 bps to 8.0% effective January 3 -SBI hikes BPLR by 25 bps to 12.75% effective January 3

ICICI Bank -Hikes base rate by 50 bps to 8.25% effective Jan 3 -Hikes benchmark prime lending rate by 25 bps effective Jan 3

Kotak Mahindra Bank raises base rate, PLR by 25 bps -Kotak Mahindra Bank raises base rate to 8.25%

Oil companies to hike ATF prices by average Rs 972/kl in metros on Saturday

Jet, KFA hike fuel surcharge by up to Rs 200/Ticket

Govt explores capping FDI in pharma at 49% - Mint

Ashapura Minechem alleged of illegal mining in Ratnagari – HT

Sarda Energy allots 18.04 lakh shares on preferential basis at Rs 510 a share to Asia Minerals (CMP at Rs 328; already has board, sharerholders approval)

Continental Petro board meet today to consider issue of 3.15 lakh shares convertible warrants to promoters

SEL Manufacturing board meet today to consider fund raising

Oil India - Ex-Dividend by Rs 18

Kirloskar Brothers Inv to list tomorrow post scheme of arrangement


No comments: