Wednesday, February 2, 2011

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

Market Outlook: Indian markets are expected to open on positive note taking fresh cues from the global counters. Asian markets trading higher; Hang Seng, Nikkei gain, while Wall St hits multi-year highs; Dow climbs above 12K mark. Overall markets are still weedy and may see selling pressure near 5480. The support for the Nifty is at 5360-5260 and resistance at 5500.

Results today: Bharti Airtel, Hero Honda, Jet Airways, Voltas, Wockardt, Great Offshore, Essar Shipping

Global events to watch

Þ MBA Purchase Applications

Þ Challenger Job-Cut Report

Þ ADP Employment Report

Global indices Update @ 8:

Dow Jones : 12040 (+148.2)

NASDAQ : 2751 (+51.11)

Nikkei 225 : 10470 (+196.0)

Hang seng : 23855 (+372.3)

SGX CNX Nifty : 5489 (+65.00)

INR / 1 USD : 45.81

Stocks in action for the day: Airlines space, SpiceJet, Maruti Suzuki, Tata Steel, RComm, RIL, NMDC, Guj Ambuja

Tata Steel FPO shares (5.7 cr) hit the market today (FPO priced at Rs 610 and CMP at Rs 631)

Airlines may hike airfares as fuel prices rise: Airline companies are likely to raise airfares as oil marketing companies have hiked prices of air turbine fuel by 3.5% on Monday. Aviation analysts see an increase of 5-7% in ticket prices due to the rise in oil prices. Crude prices eased to $92 a barrel on Tuesday. Airlines, which raised fares last month by 100-200 on increased fuel costs, are watching the situation very closely.

NMDC Q3 (cr -crore, vs - versus) -Net profit up 81% at Rs 1,518 cr Vs Rs 837 cr (YoY) -Net sales up 65% at Rs 2,621 cr vs Rs 1,588 cr (YoY) -OPM at 76.9% vs 67.9%

Gujarat Ambuja Exports Q3 YoY -Revenue up 47.6% at Rs 649.7 cr vs Rs 440.2 cr -PAT up 173.3% at Rs 28.7 cr vs 10.5 cr -EBITDA margin 7.3% vs 5.9% -Consumption of raw material up 52.2% at Rs 503.5 cr vs Rs 330.9 cr

DCM Shriram Consolidated Q3 YoY -Revenue up 14.4% at Rs 977.2 cr vs Rs 854 cr -Net Loss Rs 4.4 cr vs Net Profit Rs 24.7 cr -EBITDA Margin 4.6% vs 11.7% -Input costs such as cost of coal/ carbon material putting pressure on margins

Parab Drugs Q3 YoY -Revenue up 29.8% at Rs 151.5 cr vs Rs 116.7 cr -PAT up 33.2% at Rs 12.5 cr vs Rs 9.4 cr -EBITDA Margin 20.9% vs 20.5%-Consumption of raw material up 45.6% at Rs 124.6 cr vs Rs 85.6 cr

Nakoda Q3 YoY -Revenue up 36.5% at Rs 381.3 cr vs Rs 279.3 cr -PAT up 36.8% at Rs 9.3 cr vs Rs 6.8 cr -EBITDA Margin 5.3% vs 5.3% -Consumption of raw material up 56.5% at Rs 142.7 cr vs Rs 91.2 cr

Filatex India Q3 YoY -Revenue up 17.4% at Rs 126.9 cr vs Rs 108.1 cr -PAT up 23.8% at Rs 5.2 cr vs Rs 4.2 cr -EBITDA Margin 9.1% vs 8.5% -Consumption of Raw Material up 25.3% at Rs 104.5 cr vs Rs 83.4 cr

Unitech sources: -Suspect 'malafide intent' on rush to sell pledged shares -Raised Rs 178 crore via debentures; promoter shares collateral -Ample notice not given by lenders to promoters -'Lenders didn’t provide for even 1 minute of banking hours' Delhi HC stayed lenders from selling pledged promoter shares on Sunday -Company promoters had offered to prepay entire Rs 178 crore -Will prepay 50% this week, rest by next week -Outstanding debentures worth less than Rs 250 crore -Utilising promoter treasury in MFs, FDs to repay

RIL says -Would like to evaluate all options; includings it role as JV partner -Would like to evaluate whether it can bring incremental value For Atlas -RIL writes to Atlas Energy over its displeasure on Chevron deal -RIL Holdings writes to Atlas management on January 10 on Chevron Deal -Why Atlas did not gauge RIL interest in company level transaction -Atlas choose to do company level transaction with runners-up in JV process -Atlas undertook JV auction to select JV partner; Chevron was runner-up -RIL has substantial financial resources -RIL is most natural & obvious potential transaction partner for Atlas-Atlas Management had conveyed this to company during JV egotiations -Why Atlas relied on Jefferies advice on going with Chevron -Jefferies told that Chevron will make the highest bid for Atlas Energy

Jefferies told Atlas -RIL may not be interested in acquiring Atlas post Atlas & other shale gas JVs -Jefferies price range much below what RIL paid for JV transaction -Value of Chevron Deal based on Atlas's Marcellus Assets -Marcellus Asset Value at discount to value attributed to RIL JV assets -Questions timing of the deal, which comes soon after JV transaction

SC asks Reliance Communications to deposit 50% increased spectrum usage charge: Sources -Reliance Comm says no additional liability due to SC ruling

DoT - CNBC-TV18 alert -DoT hiked spectrum charges by 1% from April 2010 Reliance Communications says -Company paying increased charge under protest -SC has given interim relief by asking for 50% -Balance 50% to be given as bank guarantee CNBC-TV18 alert: -SC ruling on Reliance Comm same as for Airtel & Vodafone

SAIL – Sources -SAIL raises prices on range of steel products -Price hike between Rs500 - 2000/ton -Price hike due to price rise in iron ore, coaking coal

Delhi HC says -Payments recieved by foreign satellite companies not liable to tax Alert - Ruling pertains to taxability under IT act -IT department argued payments taxable as royalty Alert - Ruling in the case of Hong Kong based AsiaSat Alert - PwC sole advisors for AsiaSat -Domestic Broadcast companies could save upto 10-20% in withholding tax

ONGC says: NW18: -Govt needs to take call on Cairn royalty issue CNBC-TV18 alert: Cairn refused to involve govt in ONGC royalty issue -Govt must resolve royalty issue with Cairn before FPO -Company's FPO likely to be launched on March 15

Shares of Delta Corp were under pressure after the Goa government ordered to shut down two of its offshore casinos. According to the order, the casinos violated Goa Anti-Gambling Act.

ACC’s cement despatches for the month of January 2011 rose to 2.05 million tonnes against 1.91 million tonnes in the same month a year ago. Cement production increased to 2.06 million tonnes from 1.88 million tonnes a year ago.

SpiceJet will launch its regional services from July this year, operating on 16 non-metro routes with Chennai, the capital city of Tamil Nadu, as one of its hubs. The airline plans to have at least three bases, one each in the east, north and South regions, for its operations to smaller cities.

Steel Strips Wheels has bagged an order to export 20,000 wheels per month to Renault, France. The total supplies for next 5 year would be around 1.2 million wheels equivalent to around Rs 190 crores. Steel Strips Wheels reported net profit of Rs 7.72 crores for the quarter ended December 2010 as compared to Rs 2.37 crores in the same quarter a year ago. Total income stood at Rs 165.64 crores from Rs 115.71 crores during the same period.

Glenmark Pharmaceuticals reported consolidated net profit of Rs 109.55 crores for the quarter ended December 2010 against Rs 94.07 crores in the same quarter a year ago. Net sales grew to Rs 750.81 crores from Rs 641.68 crores during the same period.

Phillips Carbon has been looking to acquire Evonik Industries’ carbon black business, say reports. The company plans to grow through acquisitions as well as set up manufacturing facilities overseas.

Maruti Suzuki sold 109743 vehicles in January 2011 as against 95649 vehicles in January 2010. The sales were up 23.8 per cent in A2 and 32.6 per cent in A3 segment. In segment C, company recorded growth of 27.7 per cent.

National Aluminium Company has approved sub-division of shares of face value Rs 10 each into two shares of Rs 5/- each. The company will also issue bonus shares in the ratio of 1:1 i.e. one bonus share for every one existing fully paid-up equity share held.

Bank of India board approves issue of upto 3 crore equity shares for face value of Rs 30 crore through preferential Issue/Right Issue/ FPO/ ADR/GDR

Central Bank has filed papers with SEBI for approval to raise Rs 2500 crore through a rights issue which will hit the market this quarter (ET)

Indian Oil to invest Rs 5000 crore in Koyali refinery in Gujarat from 13.7 mtpa to 18 mtpa refinery (BS)

GVK Power & Infra has emerged as the highest bidder for IDFC projects 1050 MW Dheeru

Powergen Pvt Ltd proposed to be built at Korba Chattisgarh (Mint)

NTPC says got forest okay for captive coal mine in Jharkhand: NW18

Gitanjali Gems board meet today to consider fund raising plans including Issuance of Convertible Bonds/ Equity Shares


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