Wednesday, January 5, 2011

Market Outlook: Indian markets are expected to open on negative note

Market Outlook: Indian markets are expected to open on negative note on the back of mixed global cues. Overall market should continue to be on up note. The crucial support on the downside for the Nifty is 6090 and resistance at 6200

Global events to watch:

Þ Challenger Job-Cut Report.

Þ ADP Employment Report.

Þ ISM Non-Mfg Index.

Þ EIA Petroleum Status Report.

Global indices Update @ 8:

Dow Jones : 11691 (+20.43)

NASDAQ : 2681 (- 10.27)

Nikkei 225 : 10385 (- 12.66)

Hang seng : 23589 (- 78.71)

SGX CNX Nifty : 6144 (- 14.50)

INR / 1 USD : 44.84

Stocks in action for the day: L&T, Natco Pharma, Lanco Infra, Ranbaxy, Natco, Suzlon, NMDC...

GoM meet scheduled for urea decontrol today

Ashok Leyland -December total sales at 7,568 units versus 6,110 (YoY) -December exports at 1,157 units versus 577 units (YoY)

PharmAsia News says Ranbaxy, Merck call off deal for anti-infectives -PharmAsia News alert: Ranbaxy, Merck R&D deal was struck in 2008 -PharmAsia News alert: Ranbaxy was to get milestones, undisclosed upfront fee

PharmAsia News says -Ranbaxy, Merck confirm deal is discontinued Merck shifts project to arm of Dr Reddy's, Aurigene: sources -Dr Reddy's spokesperson declines to comment

Natco seeks Pfizer nod for drug clone Natco Pharma has sought a voluntary licence from Pfizer to make and sell copies of the US company`s HIV medicine in India, a first step to a provision that permits firms to legally make patented drugs of other companies. Natco sent a notice to the US drugmaker in November saying Pfizer`s drug was too expensive for HIV patients in India, and that Natco can sell its own product at about one-fifth the price, two people with direct knowledge of the development told ET. This is the first step in what is known in pharma industry as Compulsory Licensing (CL), a provision that allows generic drugmakers to make and sell low-cost version of a patented drug under certain conditions. Natco is the first company to initiate the process for CL in the country and this will be a big test case for application of the provision in India.

IDBI, OBC, BOI hike retail term deposit rates Public sector lenders IDBI Bank, Oriental Bank of Commerce (OBC) and Bank of India (BOI) on Tuesday hiked interest rates on certain retail term deposit schemes on account of the higher interest rate scenario, in line with steps by some of their peers. While IDBI and BOI hiked interest rates on retail deposits by up to 0.75% varying according to maturities, OBC went for an upward revision of 25 basis points on certain offerings. The rate hike has been done in view of ``credit demand, inflation and liquidity scenario``, IDBI said. The rate hike announced by the bank is to be immediately effective and with the revision, the highest interest on retail term deposits would be 9.25%.

Suzlon may rope in strategic investor Suzlon Energy, battling losses and mounting debt, is expected to rope in a strategic investor to boost business prospects, bankers and analysts said. The company`s shares soared over 5% on Tuesday to touch an intra-day high of Rs 57.30 on the Bombay Stock Exchange after television channels reported Suzlon`s promoters led by Chairman Tulsi Tanti may sell their 55% holding in the company to Spain`s Gamesas Corporation Technologies SA for Rs 77 a share along with a non-compete fee of Rs 10 a share. Suzlon rejected the report as ``speculative in nature and inaccurate``, while the Spanish company said it would not comment on ``rumours``, as a result of which the Indian company`s shares trimmed their gains to 2.6%. Suzlon Energy, which started as a 3 mega watts wind farm in Gujarat with 20 people in 1995 has grown spectacularly to employ over 16,000 people across 25 countries, but it has slipped into losses after wind energy demand declined and interest burden soared. In the first half of 2010-11, the company reported loss of Rs 12.47 billion.

NMDC and MMTC spar over iron ore supply pact Strong differences have emerged between state-run miner NMDC and trading major MMTC over long-term supply pact of iron ore to Japanese mills, with the former opposing the idea fearing lower realisations and the latter pitching for it. The long-term agreement (LTA) of country`s largest iron ore miner NMDC with Japanese steel mills for supply of iron ore, canalised through MMTC, ends on March 31 this year. ``Strong differences have surfaced between NMDC and MMTC over renewal of LTA with Japanese mills. While NMDC is opposed to it in the wake of high freight charges and possible duty hike, MMTC which gets 2.8% commission for supply is pitching for it,`` a steel ministry official said.

Max India to seek shareholders` nod to invest Rs 7.5 bn New Delhi-based insurance and healthcare provider Max India said it will conduct a postal ballot to seek its shareholders` permission to invest Rs 7.5 billion in Max Healthcare Institute. The company will seek shareholders` nod to approve a special resolution in this regard by way of postal ballot, Max India said in a filing to the Bombay Stock Exchange. Max India also proposes to pass another special resolution for amending the object clause of the company`s Memorandum of Association for this purpose through a postal ballot, it said. The company has appointed UP Mathur - the former Secretary of the Company Law Board and a former Director of Inspection and Investigation under the Department of Company Affairs - as the scrutiniser for conducting the postal ballot, it said.

Godrej Agrovet takes majority control in JV with Malay partner Godrej Agrovet (GAVL), a part of the Rs 117 billion Godrej Group, has acquired 51% stake in a joint venture company, Godrej IJM, from its Malaysian partner, IJM Plantations, at ringgit 9.8 million (Rs 110 million). Godrej IJM was set up as a JV between GAVL, a diversified agribusiness company, and IJM Plantations, Malaysia`s largest palm oil producer, in February 2008 to develop palm estates and crude palm oil mills in India. IJM Plantations was majority stakeholder in the JV, with 51%, while the remaining 49% was held by the Indian partner.

IOL Chemicals & Pharma to invest Rs 1.3 bn to set up new Punjab unit IOL Chemicals and Pharmaceuticals (IOLCP) on Tuesday said it will invest Rs 1.3 billion to set up a manufacturing facility to produce anti-ulcer drugs in Punjab. ``The company will be spending Rs 1.3 billion to set up a plant at Dhaula, Barnala in Punjab with a proposed capacity of 150 TPA (tonnes per annum) for PPIs (proton pump inhibitors),`` IOLCP Vice President Krishan Singla told PTI. Proton pump inhibitors (PPIs) are a group of drugs whose main function is to reduce excessive gastric acid production. The company, which reported revenues of Rs 3.72 billion in the last fiscal, expects to add another Rs 1 billion as additional sales revenue from the new facility. ``We expect total revenues of Rs 1 billion from this plant when it is fully-operational, which could be in 2013,`` Singla said.

L&T may split into 9 virtual cos and each of this independent companies expected to get listed (ET)
NTC plans to sell 75 acres of mill land in Mumbai, Bangalore on the block (ET)

Lanco Infratech plans to borrow from Chinese banks for equipment contracts for plants (ET)

NMDC and MMTC lock horns over supplying of iron ore to Japanese mills with the former opposing the idea fearing lower realisations and the latter pitching for it (BS)

NTPC likely to delay implementing its 4,000 MW super critical thermal power project in Bijapur district, with farmers demanding more compensation in return for their agricultural land (FE)

Vijay Shanthi Builders board meet on January 13 for allotting 1.35 crore shares to M/s High End Homes on account of scheme of arrangmeent

UltraTech Cement December sales flat at 3.27 mt (YoY)


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