Thursday, January 27, 2011

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

Market Outlook: Indian markets are expected to open on a positive note on the back of constructive drive on the global counters. Overall still looks up and the next practical target is around 5800. We are in F&O session and volatility can be witnessed. US markets closed modestly higher. The Dow lost ground during the final minutes of trading to close below twelve thousand mark after climbing above it intra-day. Asian mkts trading mixed; Hang Seng down, Nikkei up. The support for the Nifty is at 5625 and resistance at 5800.

Results today - HDFC Bank, JSW Steel, Lupin, Marico, Neyveli Lignite, NHPC, Spicejet, Tata Chemical, Tanla Solutions, Thermax, TV18, Zee Learn, Hindustan Motors, IRB Infra, Jain Irrigation, Arvind, Dena Bank, Emami, Financial Tech

Listing today – Midvalley Entertainment

Global events to watch

Þ Jobless Claims

Þ Pending Home Sales Index

Þ Durable Goods Orders

Global indices Update @ 8:

Dow Jones : 11985 (+08.25)

NASDAQ : 2739 (+20.25)

Nikkei 225 : 10429 (+27.52)

Hang seng : 23876 (+33.30)

SGX CNX Nifty : 5709 (+27.50)

INR / 1 USD : 45.53

Stocks in action for the day: Ranbaxy, Sterlite, Bharti, Bank of India, IL&FS, Cairn,

Ranbaxy CFO Omesh Sethi resigns: PharmAsia News -Ranbaxy says we do not comment on HR issues -Ranbaxy says company has adequate management bandwidth, depth -Ranbaxy says our intent to continuously strengthen operating team Alert- Sethi had joined Ranbaxy in 1989

Sterlite: Sources -BALCO arbitration says call option not valid under companies act-Sterlite may explore legal options -3-judge arbitration panel upholds SBI valuation -BALCO arbitrators’ award unexpected by Sterlite -Arbitration award to impact residual stake sale in Hindustan Zinc -Arbitration award cannot put restrictions on rights of shareholders -Rejection on grounds of section 111 (A) of Companies Act CNBC-TV18 alert -BALCO arbitration award given on Tuesday; 3-judge arbitration panel gives award -Govt's 49% stake in BALCO valued at Rs 1,200 crore in 2004; Sterlite holds 51% stake in BALCO

Bharti to provide 3G voice, SMS at 2G rates Consumers who want to migrate to the 3G platform now have an incentive, with Airtel, India`s leading mobile operator, saying it plans to offer voice telephony and SMS on its 3G service network at rates that are at par with 2G services. Atul Bindal, president (mobile services of Airtel), told TOI that the idea of offering 3G tariffs at par with 2G was to fuel consumption by breaking the shock impact for consumers anticipating a higher bill. Airtel believes that over the next 2-3 years, its pricing strategy will generate up to one-fourth of its revenue from data compared to around 13% at present. This shift to non-voice, non-SMS or music and Internet is already visible.

Bank of India eyes Rs 900 bn business in Gujarat by 2015 Banking on the growth of business in Gujarat, Bank of India has targeted to almost treble its business in the state to Rs 900 billion by 2015. The bank has entered into an agreement with the state government to lend Rs 120 billion to various customers groups in the state, said a senior official of the bank. It will also open 22 new branches in the state by the end of current fiscal. The bank had a business mix of over Rs 300 billion, which included deposits worth Rs 190 billion and advances worth Rs 113 billion. The total business is expected to touch Rs 340 billion by the end of the current fiscal.

RVL, IL&FS in pact for Jhajjar Reliance Ventures (RVL), a wholly-owned subsidiary of Reliance Industries, and Infrastructure Leasing and Financial Services (IL&FS), on Tuesday said that they have entered into an agreement, whereby IL&FS will become a strategic partner and co-promoter of a project to develop a model economic township and other infrastructure facilities at Jhajjar in Haryana. This project is a spin-off from Reliance Haryana SEZ Ltd, which is a joint venture between RVL and the government of Haryana, a press release issued here stated. IL&FS will acquire a 45% equity interest in this new project company. RVL and the government of Haryana will hold 45% and 10%, respectively, the release said.

SEBI seeks fresh clarifications on Cairn-Vedanta deal The Securities and Exchange Board of India (SEBI) has sought fresh clarifications on the proposed USD 9.6-billion Cairn-Vedanta deal, which has already been awaiting clearance from the market regulator for about six months now. The Vedanta group had sought SEBI`s approval in August 2010 for an Rs 131.6 billion open offer for the purchase of up to 20% stake from the public as part of the overall deal. According to sources, the market regulator has asked for more clarifications from the merchant banker involved in the planned Cairn-Vedanta deal. It could not be ascertained as to what are the new clarifications being sought by SEBI. Earlier, SEBI`s clearance was sought by the Vedanta group firm Sesa Goa through its merchant banker JM Financial. As part of the deal announced in August 2010, Vedanta group agreed to acquire up to 60% stake in Cairn India from its Edinburgh-based promoter Cairn Energy and public shareholders.

SAIL to set up steel plant in Indonesia State-run Steel Authority of India (SAIL) will set up a 3-million tonne per annum (MPTA) plant in Central Kalimantan province, Indonesia, with a likely investment of up to Rs 150 billion. It will also set up a mineral processing facility, a source privy to the development said. The timeline for the plant will be decided soon, the source added. Going by the thumb rule of an investment of Rs 40-50 billion for 1-million tonne production capacity, the project is likely to see an investment of up to Rs 150 billion. SAIL had already inked a pact with the Indonesian government on January 25 for setting up a steel plant and a mineral processing unit, besides the development of mineral deposits in Indonesia`s Central Kalimantan province. The memorandum of understanding (MoU) was signed by SAIL Chairman C S Verma and the governor of Central Kalimantan, Agustin Teras Narang, in the presence of Indonesian President Susilo Bambang Yudhoyono.

Sterlite Industries reported standalone net profit of Rs 316.38 crores for the quarter ended December 2010 against Rs 46.59 crores in the same quarter a year ago. Net sales grew to Rs 4378.41 crores from Rs 3611.99 crores.

J Kumar Infraprojects reported net profit of Rs 17.97 crores for the quarter ended December 2010 as compared to Rs 16.63 crores in the same quarter a year ago. Net sales rose to Rs 250.09 crores from Rs 201.80 crores during the same period.

Hindustan Unilever standalone net profit slipped to Rs 637.51 crores against Rs 649.11 crores in the same quarter a year ago. Net sales rose to Rs 5027.01 crores from Rs 4504.26 crores.

Dr Reddy's Laboratories reported standalone net profit of Rs 262.77 crores for the quarter ended December 2010 against Rs 168.42 crores in the same quarter a year ago. Net sales stood at Rs 1364.79 crores from Rs 1031.36 crores during the same period.

UltraTech Cement posted net profit of Rs 318.96 crores for the quarter ended December 31, 2010 as compared to Rs 196.03 crores in the same quarter a year ago. Total income was at Rs 3775.86 crores from Rs 1681.63 crores during the same period.

United Phosphorus posted a net profit of Rs 47.32 crores for the quarter ended December 31 as compared to Rs 77.94 crores in the same quarter a year ago. Total income rose to Rs 810.40 crores from Rs 664.56 crores.

Welspun Corp’s standalone net profit for the quarter ended December 2010 grew to Rs 65.17 crores from Rs 127.71 crores in the same quarter last fiscal. Total income decreased to Rs 1138.95 crores from Rs 1524.63 crores.

Shares of Time Technoplast moved higher on reports that TPG Capital, a $48-billion private equity fund, plans to buy a 14 per cent stake in the company at a near 30 per cent premium to market price. The private fund may pay as much as Rs 65 a apiece in a new share sale planned by the company. The discussion need not necessarily lead to a transaction. There are many funds in negotiations for the stake.

Idea Cellular surprised investors with a better-than-expected 43 per cent rise in net profit for quarter ended December. The company reported net profit of Rs 243 crore from Rs 170 crore a year ago. Revenue for the quarter was up 26 per cent at Rs 3,956 crore during the same period.

Jindal Steel & Power said its net profit in the December quarter grew 9 per cent to Rs 951 crore from Rs 874 crore last year. Sales in the same quarter were up 18% at Rs 3,168 crore.

BEML is in advanced talks with a top dredging-equipment manufacturer from the Netherlands to forge a technical collaboration for its planned entry into the dredging-equipment manufacturing business.

LIC Housing Finance Asset Management, a unit of LIC Housing Finance, is planning a Rs 750 crore real estate fund and is looking for people to manage it. The company will raise Rs 500 crore with a green-shoe option of Rs 250 crore through co-sponsors LIC and LIC Housing Finance, who will put in about 20 per cent of the corpus.

Adani Enterprises to set-up Rail, Port and Power Projects in Indonesia'

GVK Power signed two MoUs Govt of Indonesia to develop green field international airports in North Bali and Yogyakarta

Dena Bank board meet to consider issuance of equity shares of the Bank to the Central Government on Preferential Basis

FDC board meet to consider buyback

Hindustan Motors – Ex-date today for reduction of capital

Listing of Dalmia Bharat Enterprises Limited pursuant to Scheme of Arrangement today

BSE to suspend trading in securities of Pyramid Saimira Theatre and 15 other companies for various regulatory reasons (BS)

Jindal Power plan to raise Rs 7200 crore via IPO

L&T, Kobe Steel form a Rs 60 crore JV for tyre equipment (ET)

i-Gate gets I-T notice for body shopping asked to pay Rs 11 crore as onsite services aren’t exempted from tax (ET)7

Coal India plans to hike its spending by 17% to Rs 4220 crore to expand its production (ET)

TIL to raise Rs 250 crore to part finance its Greenfield project in Kharagpur (FE)

Listing of equity shares of Summit Securities on January 28


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