Thursday, February 3, 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 mkts: Nikkei down; major mkts shut today, while US markets end mixed despite good job report. Overall markets are still weedy and may see selling pressure near 5480. The support for the Nifty is at 5360 and resistance at 5500.

Results Today: Ambuja Cement, ACC, Cummins India, IRCON Intl, Motherson Sumi, Whirlpool

Global events to watch

Þ Jobless Claims

Þ Productivity and Costs

Þ ISM Non-Mfg Index

Þ Weekly Bill Settlement

Þ Monster Employment Index

Global indices Update @ 8:

Dow Jones : 12041 (+01.81)

NASDAQ : 2749 (- 01.63)

Nikkei 225 : 10432 (- 24.58)

Hang seng : 23908 (+426.0)

SGX CNX Nifty : 5432 (+00.00)

INR / 1 USD : 45.63

Stocks in action for the day: M&M, Tecpro, Delta Corp, ACC, Alok Inds, HUL, Essar, Tata Steel...

Ashok Leyland: -January total sales at 7,711 units versus 7,871 units (YoY) -January exports at 831 units versus 411 units (YoY)

SEBI bars 39 entities from accessing capital markets -Banned entities belong to Pabari-Parikh,Walmiki Shah Grp SEBI says -39 entities manipulated volumes, prices in illiquid stocks -Stocks include LGS, Spectacle, Goldstone, Gemstone, Well Pack

Oil Secretary says: -High crude prices to adversely impact oil cos -No disruption in crude supply from Iran-Solution to Iran oil payment issue likely in few days -In talks with Russia for further co-op in oil, gas operations

Delta Corp says: Casino operations at Casino Royale have resumed. The administrative tribunal has issued an ad interim stay against home department order on Delta Corp’ appeal.

HUL sets Rs 500 billion sales target by 2015 Hindustan Unilever has set a target to more than double its turnover in just four years to 500 billion in a plan that industry experts find far too ambitious. The country`s largest consumer goods company, which took more than 75 years to almost touch the 200-bilion sales mark, has drawn up a plan called `50 by 15` to increase its annual sales to 500 billion by 2015, a senior company official said on condition of anonymity. Market experts ET spoke to say the target is unrealistic. ``Multinationals do these exercises all the time as part of long range planning. These are called BHAGs, or Big Hairy Audacious Goals, in multinational parlance,`` said an ex-CEO of a consumer products company. ``They often do more harm than good,`` he added. Hairy or not, the goal is big and looks audacious coming as it is in the middle of rising food prices and reports of diminishing consumer confidence.

Essar plea dismissed, REpower can ally with new partners REpower Systems AG would be able to ally with new partners for wind turbines as the Bombay High Court has dismissed Essar Group`s plea challenging the German turbine maker`s decision to terminate a technology licensing pact between the two companies. Essar Group plans to appeal against the court order, the company said in an e-mail statement, while REpower, controlled by wind turbine maker Suzlon Energy welcomed the verdict. ``Of course, we are happy with the court`s decision in favour of REpower. Nevertheless, we are well aware that this is only a step forward in the first instance of the process,`` REpower`s chief executive officer Andreas Nauen said in a response to a query by ET.

Mercator Lines to invest Rs 2-2.5 bn on coal mine in Indonesia Mercator Lines, the HK Mittal-controlled shipping-to-mines major, will invest about 2-2.5 billion in developing a coal mine in the Batuah region of Kalimantan province in Indonesia as part of its strategy to increase its presence in the high-margin mining industry. The Mumbai-based company will invest via a JV with an Indonesian firm PT United Coal to develop the infrastructure for the mining project, while the ownership of the mine will continue to remain with the Indonesian company, said people familiar with the development. When contacted, chairman H K Mittal said: ``We already own four coal mines in Indonesia and are keen to build our ownership here.`` Total reserves in the Indonesian mines owned by Mercator Lines is about 70 million tonnes and the company plans to raise the total deposits to 100 million tonnes.

Tata Steel to raise USD 500 mn Tata Steel is trying hard not to dilute the promoter`s stake and yet raise money for its long-term needs. The company plans to raise USD 500 million (Rs 22.9 billion) by issuing bonds, preferably perpetual bonds. Sources close to the development told Business Standard that plans to raise the money had been firmed up. ``The company has decided to go for perpetual bonds, as they are treated as equity capital and yet there is no dilution in the promoter`s shareholding,`` a source said. A perpetual bond has no maturity date and is usually marked by interest payment through the life of an investor. However, the interest rates on such bonds are very high and have to be serviced `forever`. Another official privy to the fundraising plan said, ``Yes, there are plans to raise USD 500 million, through a bond issue.`` The company may launch the issue in the next three to six months.

NTPC plans to be 75 GW company by 2017 National Thermal Power Corporation (NTPC) should strive for inclusive growth by giving top priority to society. Along with this growth, it should utilise a strategic mix of options to ensure fuel security for its fleet of power stations, said KC Venugopal, Union minister of state for power. The minister, who visited the NTPC office here on Wednesday, was briefed on the activities of the company by its chairman and managing director Arup Roy Choudhury and functional directors. NTPC plans to become a 75-GW company by 2017 and envisages to have an installed capacity of 128 GW by 2032 with a well diversified fuel mix comprising 56% coal, 16% gas, 11% nuclear energy, 9% renewable energy and 8% hydro power-based capacity.

Mercator Lines to invest Rs 250 crore to develop coal mine in Indonesia to increase its presence in the mining industry (ET)

Unitech promoters repaid debt of Rs 89 crore to the investors from whom they had borrowed about Rs 250 crore by pledging their shares (BS)

Cement companies may hike cement prices by Rs 5-10 per bag due to rising raw material prices (BS)

SAIL in the process of expanding its dealership network to increase its domestic sales and the steel usage (FE)

HCC bags Rs 345 crore EPC order from Gujarat Government’s undertaking Sardar Sarovar Narmada Nigam for construction of a 57 km canal (FE)

NALCO has hiked its aluminium prices by nearly 5% or Rs 6000 to around Rs 1,21,000 a tonne in sync with the rising global prices (FE)

BHEL is planning to enter into manufacturing of the high end (CFBC) boilers & looking for a technology partner (FE)

Bajaj Hindusthan borrowed a Rs 400 crore via a loan to refinance its maturing debt (Mint)

Natco Pharma likely to take on German Healthcare giant Bayer AG (DNA)

Alok Industries to setup a new unit at Silvassa for an estimated cost of Rs 1000 crore (BL)

Nitco has bought a 100 acre land costing Rs 500 crore plans to build luxurious villas in Alibaug (HT)

California Software has signed a Master Agreement with the buyer ALTEN EUROPE, SARL for the sale of the outsourced Product Development Business of Calsoft for Rs. 100 Crores

Tecpro Systems receives coal handling plant packages worth Rs 208.6 crore from Lanco Infratech

M&M promoter stake has fallen to a low of 22.76% below the crucial level of 26% mark preferred by most of the promoters (DNA)

Maxx mobile plans to raise Rs 800 crore through IPO in the next nine months (TOI)

IOC says time not right to further hike petrol prices: NewsWire18


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