Monday, January 24, 2011

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

Market Outlook: Indian markets are expected to open on a negative note on the back of mixed momentum on the global counters. All eyes are on RBI meet scheduled tomorrow. RBI needs to demonstrate strong resolve to tackle inflation in order to maintain its credibility. Otherwise, inflation expectations will rise further. Overll trend remains the same with support near 5670-5625 and resistance at 5735

Results today: ICICI Bank, Union Bank of India, Idea Cellular, Indian Bank, JSPL, Godrej Consumers, Jindal Steel, Sesa Goa, SKS Finance, Sobha Dev, Deccan Chronicle

Global events to watch

Þ 4-Week Bill Announcement

Þ 3-Month Bill Auction

Þ 6-Month Bill Auction

Global indices Update @ 8:

Dow Jones : 11871 (+49.04)

NASDAQ : 2689 (- 14.75)

Nikkei 225 : 10313 (+38.64)

Hang seng : 23865 (- 11.53)

SGX CNX Nifty : 5698 (-02.00)

INR / 1 USD : 45.75

Stocks in action for the day: India Securities Ltd, Royal Orchid, Iron ore mining counter, DCB, Tech Mah, ICICI Bank, SBI, RIL, ONGC

Chambal Fertiliser Q3 (cr - crore, vs - versus) -Revenue up 18.5% to Rs 1353 cr vs Rs 1142 cr -OPM 17% vs 16.2% -PAT up 35% to Rs 107 cr vs Rs 80 cr

Omkar Speciality Chemical IPO opens today -Price band Rs 95-98/sh -Offer to raise Rs 76.95-79.38 crore

Tata Steel sets issue price for FPO at Rs 610/share: -QIB (net of anchor): 10.41 times (x) -Retail: 1.46x -HNI: 7.21x -Employee: 0.05x -Overall: 5.98x

ONGC says - -Mumbai offshore oil pipeline leakage stopped -To disperse Mumbai offshore oil spill within 48 hours

RIL Q3 (Largely inline with street expectations) (YoY) -Sales up 5.2% at Rs 59789 crore Vs Rs 56856 crore -OPM at 15.96% Vs 13.80% -Net profit up 28.1% at Rs 5136cr Vs Rs 4008cr -GRM at USD 9/bbl Vs USD 7.9/bbl QoQ -Petchem margins up 60 bps at 15.2% Vs 14.6% -Oil and Gas margins down 360 bps at 36% Vs 39.6% QoQ -Crude throughput at 16.1 MMT Vs 16.9 MMT QoQ -Utilization at 104% Vs 109% QoQ -Lower utilization on account of planned shutdown at Jamanagar refinery -Other expenses up 7.1% at Rs 4142 crore Vs Rs 3869 crore QoQ -Q3 Other un-allocable expenses including forex loss of Rs 117 crore -KG-D6 average production in Q3 at 54.5 mmscmd

SBI Q3 -Net profit at Rs 2,828 cr Vs Rs 2,479.1 Cr (YoY) -NII at Rs 9,050 cr vs Rs 6,316.3 cr (YoY)

Tech Mahindra Q3 -Consolidated net profit at Rs 260 cr vs Rs 170 cr (QoQ) -Consolidated income from operations at Rs 1,211 cr vs Rs 1,187 cr (QoQ) Tech Mah says from boardroom -Q3 volume growth flat sequentially -Q3 operating profit margin at 20.6% -Q3 IT utilisation at 76.3% -Discretionary IT spending slow to pick up -Q3 attrition around 30% -Debt as on December at Rs 1,348 cr vs Rs 1,426 cr in September -Cash, cash equivalents at Rs 519 cr as on December 31 -Tepid quarter due to sluggish growth in telecom sector-Strong hedge portfolio to protect margins in short-term -Expect AT&T biz to grow -Business from BT will not be affected by stake sale -Details on merger with Mahindra Satyam to be clearer soon.

Okay with Essar IPO of Indian JV stake: Vodafone: British telecom firm Vodafone said on Sunday it had not blocked Essar from conducting an initial public offer (IPO) of the latter's stake in Vodafone Essar, India's third-largest telecoms company by subscribers. Vodafone and Essar have locked horns in recent days over the Indian group's move to merge a firm that owns an indirect 11% in their mobile joint venture with another Essar group firm, India Securities Ltd (ISL).

To add 1500 rooms over next 2 years: Royal Orchid: All in all, we have a pipeline currently of nearly 1,500 rooms coming up over the next two years and of course a majority of that will open before December of this year. So, we have about nearly 700 to 800 keys at least opening in this calendar year and probably close to additional 500 in the next calendar year.

Negative reports on iron ore mining: Top iron ore producer Orissa said on Saturday it has stopped 23 iron ore mines from operating as they had not submitted proof of the necessary clearances. The state government has withheld permission to the mines in Keonjhar district since Friday, deputy director (mines) of the state government UC Jena told Reuters. India is the world's third largest supplier of iron ore, with about half of its total output of more than 200 million tonnes landing in China, which houses the world's largest steel industry. Orissa has approximately 600 mines. Of them more then half have closed down operations for more than a year after stronger state government enforcement of regulations. The Orissa government has sought a ban on exports of the steel making commodity and is likely to send a proposal to the federal government by early February to prevent illegal mining and increase local supplies.

Godrej Consumer Q3 -Cons net profit at Rs 118.8 cr vs Rs 85.1 cr (YoY) -Cons net sales at Rs 980.4 cr vs Rs 517.6 cr (yoy)

Royal Orchid Q3 -Consolidated net profit at Rs 4.4 cr vs Rs 3 cr -Consolidated revenues at Rs 40.9 cr vs Rs 31.3 cr (YoY) -Consolidated EBIDTA margins at 29% vs 24.7%

Bharat Forge Q3 -Net profit at Rs 82.6 cr vs Rs 38 cr (YoY) -Net sales at Rs 754 cr vs Rs 496 cr (YoY)

Maruti ups vehicle prices by up to Rs 8,000

Kotak Mahindra Bank hikes rates on some deposits by 25-50 bps effective January 22

Government in process to ban FDI in the wholesale marketing arm of the tobacco companies (BS)

Jyoti Structures rights issue opens today (ET)

Vodafone gives a nod for Essar IPO (ET)

Thermax to setup country’s first geothermal power plant in Maharashtra (ET)

Nalco to foray into titanium production forms a JV with Indian Rare Earths will entail an investment of Rs 400 crore (ET)

Bayer rejects Natco's VL plea for grant of voluntary license for Nexavar

DCB mulling a QIP of Rs 150 cr in about six months reducing the promoter’s holding by 2-3% (BS)


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