Tuesday, January 11, 2011

Market Outlook: Indian markets are expected to trade flat

Market Outlook: Indian markets are expected to trade flat ahead of mixed global sentiments. Overall the market looks weak and can see further downside pressure in the days to come we are now moving towards results season and one can see stock specific action rather than sector specific. The crucial support on the downside for the Nifty is 5678 and resistance at 5820.

Global events to watch

Þ Wholesale Trade

Þ Bill Auction

Þ ICSC-Goldman Store Sales

Þ Redbook

Global indices Update @ 8:

Dow Jones : 11637 (-37.31)

NASDAQ : 2703 (+04.63)

Nikkei 225 : 10516 (-24.04)

Hang seng : 23557 (+30.32)

SGX CNX Nifty : 5771 (+14.00)

INR / 1 USD : 45.44

Stocks in action for the day: Patni, Greaves Cotton, R Power, IVRCL, Nag Fert

Finance Ministry sources say -At least 8-9 PSUs may see IPO & FPO in FY12 -RINL, MMTC, PFC, NBCC among those on sell-off list

Finance Ministry sources say -Govt may consider higher public float for PSUs in FY12-Currently, 10% public float mandatory for PSUs -Finance Ministry announced mandatory 25% float in June 2010 Finance Ministry sources say: -Higher divestment will help mop-up resources in FY12 -Disinvestment will continue to be thrust area for govt -Non-tax revenues will boost fiscal consolidation efforts -Scope to raise tax rates sharply limited to some extent -Govt may target 4.8% fiscal deficit in FY12

Govt drops 60% import tax on sugar: India has dropped a 60% import tax on sugar, a government statement said, reversing the rule that was slapped from January 1. The new rule is applicable from January 8, the statement posted on a government website said on Monday, without giving the reason behind the latest move. India, the world's top consumer and the biggest producer behind Brazil, had abolished the sugar import tax in early 2009 to overcome an acute domestic supply shortage, triggered by the worst drought in four decades. Currently India does not import sugar. Farm Minister Sharad Pawar on Monday told reporters his government still has plans in place to export 500,000 tonnes of sugar.

Patni-Open offer expected in April -Change of control should happen closer to April -In interim will concentrate on integration -Too premature to talk of delisting or reverse merger -Current focus on integration & go to market strategy

iGATE says -Had very preliminary discussion with GE -GE revenues expected to come down post it comes out of NBC -Have indication that GE views transaction positively -To become 2nd largest supplier to GE post TCS -GE will account for 13% of revenue for combined entity -Expect management meet with both teams in 3-4 weeks -Have spoken to top customers of both companies -See potential to see earnings grow faster than revenues See USD 20-30 million cost synergies in back-office side -Execution record of Patni to ensure customers stay -Will be meeting lot of customers over next few days -Growth suffered as Patni suffered from ‘for sale’ tag -Patni average price is around 10% higher than iGate -Patni brothers have signed non-compete -Apax may end up owning 27-38% of iGate -iGate tax rate will be mid 20s post Q1CY11 for relative term

PM convenes meeting to review food inflation today -Govt scraps import duty on white, raw sugar till March 31 -Sharad Pawar says: from NewsWire18 -To okay open general license :: sugar shipment after January 30 -Govt to be cautious on farm exports as food inflation high

Nagarjuna Fertilisers okays oil operations demerger into Nagarjuna Oil Refinery

Hero Honda post spilt plans to enter the three wheeler business, pitting against Bajaj Auto (ET)

IVRCL Infrastructure is negotiating with potential bidders to offload its 55% stake in Hindustan Dorr-Oliver (ET)

Government to demand over Rs 2000 crore for 30% stake in Bharti Hexacom (ET)

Reliance Power signed a power purchase agreement with NTPC Vidyut Vypar Nigam Ltd for its 100 mw solar thermal power project in Rajasthan (ET)

Greaves Cotton bags a 10-year contract from Tata Motors to supply small diesel engines for its new half tonne truck Ace Zip (ET)

Tata Steel set to raise Rs 3500-5000 crore via FPO (BS)

Bharti Shipyard faces a Rs 90 crore cancellation order from Shipping Corporation of India (Mint)

Adani Group plans to expand its ports in Kerala, TN, Orissa and Andhra Pradesh, ramping up its capacity to 200 mt from 160 mt (DNA)

Pennar Industries seeks to buy engineering firms with sheet-metal skills with a topline of Rs 100-200 crore

Allied Digital and Singapore based e-Cop join hands to provide Managed Security Services to enterprises in 20 countries

Ashoka Buildcon receives letter from NHAI for achieving financial closure of its project with cost of Rs 694 crore

Goodyear India board meet on January 13th to approve the Service Agreement with the Parent Company, The Goodyear Tire & Rubber Company for reimbursement of expenses to the Parent Co for the services received by the Company.

M&M Financial to set up a joint venture Company with De Lage Landen Financial Services to provide wholesale inventory financing to US based dealers

Hexaware board meet today to consider bonus and dividend

Shekhawati Poly-Yarn Limited - lists tomorrow (12th)


No comments: