Tuesday, January 4, 2011

Market Outlook: Indian markets are expected to open higher on constructive global cues.

Market Outlook: Indian markets are expected to open higher on constructive global cues. US stocks end higher; Indian ADRs follow suit. Asian stocks rose, with the regional benchmark extending a 2 1/2-year high, as U.S. manufacturing expanded faster than expected, adding to optimism that a recovery in the world`s largest economy is gaining strength. Overall market should continue to be on up note. The crucial support on the downside for the Nifty is 6090 and resistance at 6233.

Global events to watch:

Þ Motor Vehicle Sales.

Þ ICSC-Goldman Store Sales.

Þ Redbook.

Þ Factory Orders.

Þ FOMC Minutes.

Global indices Update @ 8:

Dow Jones : 11670 (+93.24)

NASDAQ : 2691 (+38.65)

Nikkei 225 : 10373 (+144.9)

Hang seng : 23506 (+70.84)

SGX CNX Nifty : 6205 (+24.00)

INR / 1 USD : 44.67

Stocks in action for the day: Tata Power, CIL, GAIL, ONGC, HDFC Bk, Bajaj Hind, Jayaswal, Sun Pharma.

Caraco says (subsidiary of Sun Pharma) Company not to commence manufacturing products from Detroit by FY11 ALERT: Company had previously said 2 products would be manufactured from Detroit ALERT: Company's remediation steps yet to be completed for Detroi plant -No timeline yet as to when production may resume

Citi Fraud update Hero group says -Committed to fully cooperate with authorities probing case
Prime priority is to recover investments -Don't wish to comment further as matter under investigation.

POSCO - From DJ -Govt panel approves environment clearance for POSCO project -POSCO project area of 4,000 acres 'reasonable, necessary' -Environment clearance only for initial steel capacity of 4 mt -POSCO should invest 5% of project cost on community projects -Compensation for displaced farmers, fishermen reasonable -Decision does not cover POSCO proposed port building -Final decision on POSCO India project to be taken by MoEF.

SIAM's 2011 outlook - Pawan Goenka says -Do not expect to match 2010 sales in the new year -Strong GDP growth to boost consumer sentiment -High commodity prices & interest rates to dent sales -High volumes in 2010 helped control price hikes -Commodity price pressures will have to be passed on -Expect commodity prices to rise 5-8% overall -Expect car prices to rise 3-5% on an average in 2011 -15-18% growth would be 'very good' -CVs & passenger vehicles to grow at same pace -CV makers too will have to pass on price increases.

Tata Power scraps Olympus stake deal Tata Power has terminated a pact to sell around 15% stake in a special purpose vehicles, which owns its holding in Indonesian coal mines, to private equity firm Olympus Capital Holdings Asia, the company said in a statement on Monday. The country`s largest private electricity producer said the deal was scrapped on January 1 because some conditions, which were a part of the initial pact, were not fulfilled. In June, Tata Power has said that it plans to sell part of its holdings in two special purpose vehicles-Bhira Investment and Bhivpuri Investment-for USD 300 million (around Rs 13.40 billion). The company had proposed selling the stake through shares with differential voting rights and no dividends. It had not disclosed how much it planned to sell in each SPV. The stake sale proceeds were to be used for reducing debt and financing future acquisition of fuel resources.

CIL to tie up with pvt cos to develop gasification project Coal India will enter into contracts with private firms to develop underground coal gasification projects and set up at least one 50:50 joint venture to create marketing infrastructure and sell the gas. The blocks, where coal production is not viable, will be offered for 25 years and will be developed in three phases, involving exploration and assessment for the first five years and commercial production for the rest, a senior CIL official said. ``Once commercial production starts, CIL will have the right to participate in development of marketing infrastructure for transportation of (gas) to customer delivery points. CIL`s participation will be in the form of 50% equity participation in a joint venture with the developer of the project,`` the CIL official said.

Pfizer drags DRL to court over Lipitor copy launch Pfizer has taken Dr Reddy`s Laboratories (DRL) to court to delay the launch of the Indian drug maker`s low-cost version of atorvastatin in the US market. In its filing before a local court in Delaware (US) on December 27, the pharma giant said Dr Reddy`s plan to launch a generic version of the world’s best-selling medicine, sold under the Lipitor brand, will infringe upon its patent. It has asked the court to withhold approval of Dr Reddy`s drug until one of its many patents for Lipitor expires in January 2017. Lipitor rakes in over USD 12 billion in global sales annually for Pfizer, the world’s largest drug maker.

HDFC Bank raises deposit rates by up to 1.25% HDFC Bank raised its interest rates on retail term deposits by up to 1.25% depending on the maturities. The rate hike will be effective January 1 and applicable on deposits of less than Rs 15 lakh, a source in the bank told PTI here. Under the revised rates, a six months 16 days deposit will earn an interest of 7.75% per annum as against 6.5% earlier, the source said. Similarly, a 9 month 15 days deposit will get 7.75% interest versus 6.75 earlier. The move comes in three days of the bank hiking up its minimum rate of lending or the base rate to 7.75% from 7.5%. The bank`s peer Kotak Mahindra Bank also raised its deposit rates today by up to 0.50%.

Sesa Goa seeks legal opinion on Bellary bid Sesa Goa, India`s largest producer and exporter of iron ore in the private sector and a part of the Vedanta group, is seeking legal opinion on its failed bid for Bellary Steel & Alloys. ``We are seeking legal opinion, but have not decided whether to move court. That will depend on whether Bellary is worth the fight,`` a Sesa Goa official said. JSW Steel emerged as the highest bidder for Bellary Steel at Rs 2.1 billion. A JSW spokesperson said, ``we have no comments as of now.” Bellary Steel shares today closed 20% higher at Rs 2.94 on the Bombay Stock Exchange. While confirming that JSW was the top bidder, IFCI said the standard procedure had been followed for the asset sale. Bellary is being sold by a consortium of lenders led by IFCI.

Jayaswal Neco ties up debt for Rs 33 bn expansion Neco Group`s flagship company, Jayaswal Neco Industries, has tied up debt for its Rs 32.67 billion expansion in steel, mining and power projects. Of the total project cost of Rs 32.67 billion, the debt component is Rs 21,435 million and the rest Rs 11,235 million is the equity part. ICICI Bank, State Bank of Travancore, UCO Bank, Union Bank of India and United Bank of India has lend money to the company for expansion. Neco said, ``The company has commenced planning and implementation of its expansion of 0.1 million tonne per annum (mtpa) coke oven plant, expansion of its steel melt shop by 0.45 mtpa and rolling mill by 0.35 mtpa, modernisation of its existing wire rod mill, setting up of 0.3 mtpa sponge iron plant, setting up of 62 Mw captive power plants, development of its non-coking coal mines along with 3 mtpa coal washery and development of its iron ore mines in Chhattisgarh and development of its coking coal mines with 1 mtpa coal washery in Jharkhand.``

GAIL, ONGC sign 3-year deal on gas, Petrochem GAIL has entered into an agreement with Oil and Natural Gas Corporation, under which it will exclusively purchase and market the natural gas produced from the latter`s various fields during the next three years, said a company release. The two companies also reached an understanding in swapping gas available to both companies, to optimise logistics and cost. GAIL currently markets 50 million standard cubic metres per day of gas produced by ONGC. An understanding has also been reached for marketing of a portion of petrochemical products of ONGC Petro Additions (OPaL) by GAIL. OPaL is the special purpose vehicle formed by ONGC for setting up a Rs 195.35 billion petrochemical complex at the Dahej Special Economic Zone in Gujarat.

Jayaswal Neco ties up for debt for Rs 3300 cr expansion

Banks agree to reschedule loans given to MFIs

Kirloskar Oil Investments to list today

SEL Manufacturing board approves issue upto 2 crore warrants on preferential basis to the Promoters

Peninsula Land lines up Rs 2500 crore for land acquisition

Steel companies hike prices by 3-5% as input cost increases

Bajaj Hindusthan, Balrampur Chini get to export 33,000 tonnes of sugar

HDFC Bank raised its interest rates on retail term deposits by up to 1.25% depending on the maturities. The rate hike will be effective January 1

Road Secretary says to seek cabinet nod for NHAI board restructuring: NW18


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