Friday, January 7, 2011

Market Outlook: Indian markets are expected to trade flat ahead of mixed global sentiments.

Market Outlook: Indian markets are expected to trade flat ahead of mixed global sentiments. Overall market is on sideways momentum. The crucial support on the downside for the Nifty is 5980 and resistance at 6110.

Global events to watch

Þ Employment Situation

Þ Ben Bernanke Speaks

Þ Consumer Credit

Global indices Update @ 8:

Dow Jones : 11697 (- 25.58)

NASDAQ : 2709 (+07.69)

Nikkei 225 : 10514 (- 15.39)

Hang seng : 23778 (- 07.73)

SGX CNX Nifty : 6069 (- 00.50)

INR / 1 USD : 45.31

Stocks in action for the day: PFC, Unitech, Rel Infra, Hind Copper, R-Infra, Suzlon, IOC...

Hindustan Copper exclusive - Finance Ministry Sources -Hindustan Copper FPO unlikely this fiscal -Mines minister met FM on Hind Copper FPO on Thursday -Hindustan Copper to firm up expansion plans before FPO CNBC-TV18 alert: Govt proposed 10%+10% FPO in Hind Copper

Adi Godrej says: NewsWire18 -To hike product prices on higher raw material costs -Godrej Consumer to hike product prices on higher input costs -Product price hikes to prevent hit on Godrej Consumer margins

Suzlon bags Rs 8.65 bn order from Hindustan Zinc The country`s largest wind turbine maker Suzlon today won a Rs 8.65 billion order from the Vedanta Group firm Hindustan Zinc to set up wind farms in four states which will together generate 150 megawatt (MW). The project entails setting up 150 mw capacity in Karnataka, Maharashtra, Rajasthan and Tamil Nadu by September, besides operating and maintaining the mills, a release issued by Suzlon from Pune said today. First 50 MW will be completed by March and the remaining by September, the release said, adding the output will be purchased by discoms of the respective states under a long-term PPA (power purchase agreement).

IOC losing Rs 1.51 bn per day on selling fuel below cost State-owned Indian Oil Corp (IOC) is losing Rs 1.51 billion per day in revenues on selling diesel, domestic LPG and kerosene below their imported cost, a company official said today. ``We are losing very heavily on diesel after international oil prices firmed up to USD 90 a barrel,`` he said. IOC is losing Rs 6.99 per litre of diesel, Rs 19.60 a litre of kerosene and Rs 366.28 per 14.2-kg domestic LPG cylinder. International oil prices have risen as freezing weather in the northern hemisphere has increased energy demand for heating. The spurt has resulted in the difference between domestic retail and international benchmark prices widening.

Tata, partner to hold 100% in African unit Tata Steel and its Australian joint venture partner Riversdale Mining are acquiring full ownership of the USD 1-billion Benga power plant in Mozambique for an undisclosed amount. They are buying out Elgas` 50% stake in Benga, which is expected to generate electricity in the next two years. Riversdale, in which Tata Steel is the largest shareholder, said that moving to full control in the Benga power plant would accelerate the development of the project. It also would help in bringing in new strategic investors to the project. Riversdale is subject to a takeover from Rio Tinto, which has offered USD 3.9 billion.

Unitech promoters infuse Rs 3.8 bn to increase stake The shareholding pattern of real estate major Unitech has undergone a change, with promoters increasing their stake to 48.6% upon conversion of warrants into equity. Chandra and his sons had pumped Rs 3.8 billion into the company in December to convert the last tranche of warrants held by them into equity, which increased their combined stakeholding to 48.58%. Unitech`s shares fell by five per cent and the scrip closed at Rs 61.8, compared to the previous close of Rs 65.1. Unitech is a widely held company with over 600,000 shareholders. FIIs` holding in the company stands at 34.2% and remained constant during the previous quarter. Asked whether the shareholding of other categories of investors, like retail investors, has also undergone a change in the view of the promoters increasing their stake, sources said retail investors and domestic institutions’ stake may have gone down by about 0.25% each.

ADAG promoter to invest Rs 16 bn in R-Infra shares A promoter of the Anil Ambani-controlled Reliance group is expected to invest around Rs 16 billion in the equity shares of its group company, Reliance Infrastructure. Following this, the promoter company, AAA Project Ventures`, stake in Reliance Infrastructure might go up to 48% from the current 43%. Reliance Infrastructure today informed the stock exchanges that a committee of directors of the company will meet tomorrow to consider allotment at a price of Rs 928.89 per share to AAA Project Ventures. The conversion of these warrants could take place on January 8 and an announcement to this effect tomorrow. The promoter company was allotted a total of 42.9 million warrants in July 2009, convertible into an equal amount of shares at a fixed price. The warrants carried the option to be converted into shares any time after October 9, 2009, but not after 18 months from the date of allotment of warrants, the company had said.

BHEL-Alstom, L&T-MHI in final round of NTPC tender BHEL-Alstom and L&T-Mitsubishi Heavy Industry have made it to the final round of NTPC`s supercritical boiler tender, estimated at over Rs 100 billion. NTPC has set the deadline for bids to January 20. A senior executive in one of the companies, requesting anonymity, said NTPC had issued letters to the BHEL and L&T-led consortia for the prestigious tender today. This was the second time that NTPC called for bids for the contract after L&T was disqualified on technical grounds in the first round. L&T and BHEL were the only two qualified bidders in the first round. Bids from L&T Power, a 100% subsidiary of L&T, was disqualified in June on the grounds that the company lacked experience to supply super critical boilers and lacked equity partnerships in manufacturing of boilers.

GMDC to select partner for Kutch project in 2 weeks Gujarat Mineral Development Corporation (GMDC) says it will take till January 20 to select and announce a partner for its Rs 140 billion aluminium project in Kutch. V S Gadhvi, managing director, told Business Standard: ``We wanted to announce the partner during the `Vibrant Gujarat` event which begins on January 12. However, we won`t be able to complete the assesment of the Expression of Interests (EoI) by that time. We are studying the EoIs by nine companies and will announce the decision by January 20.`` GMDC has appointed two agencies to study the EOIs, do a technical assessment and financial background checks of the applicant companies. Added Gadhvi: ``Since all the companies are of sound financial health and very strong corporate houses, we might narrow down to three companies and then ask them to furnish some more details, which will help us to select one company to partner with.``

Surana Ventures listing today

Reliance Infrastructure promoters to hike stake to 48% by converting warrants issued to them in July 09 (ET)

JSW Steel plans to increase coking coal imports from Australia and USA by as much as 40% to raise its production by the next fiscal year (ET)

Omnitech is looking at raising around Rs 67 crore through QIP over the next 6 months (ET)

Eicher Motors plans to start its own branded sales and service outlets in India (ET)

Schlumberger the American oilfield service provider has ventured in a contract with ONGC to drill India’s first shale gas in Damodar valley (ET)

PFC’s Rs 7000 crore FPO is likely to open around May 15 (ET)

Promoters of Unitech infuse Rs 380 crore by increasing their stake to 48.6% upon conversion of warrants into equity (BS)

GMDC to select and announce a partner for its Rs 14000 crore aluminum project in Kutch (BS)

JSL Stainless in the process of allotting shares worth about USd 4.7 million upon the conversion of FCCB’s (BL)

Tata Steel and its Australian joint venture partner Riversdale mining is acquiring full ownership of the USD 1 billion Benga power project in Mozambique (TOI)

Wanbury has been admitted by CDR Cell for its debt restructuring.

Advanta board proposes rights issue, CCPSs and warrants wherein both rights equity shares and CCPSs collectively aggregates up to Rs 510 crore

Atul Auto board approved the draft letter of offer for the proposed right issue of equity shares

Nagarjuna Construction board meet on January 10 to approve Amalgamation of IKisan Limited and Kakinada Fertilizers Limited and Nagarjuna Fertilizers and Chemicals Limited and Nagarjuna Oil Refinery Limited

Tata Elxsi signs MoU with Squared Ent for a New Children's Entertainment Global Joint Venture.

Balaji Distilleries: ex scheme of arrangement (between Balaji Distilleries Limited, Chennai Breweries Private Limited, and United Spirits Limited)

Tulsi Extrusion: bonus 1:10

Avigo Capital Partners looks to sell its 40% stake in Spykar for Rs 80 crore which puts the valuation of the company at around Rs 200 crore (ET)


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