Friday, February 4, 2011

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

Market Outlook: Indian markets are expected to open on negative note and trade in the range of 5480- 5560. Asian mkts: Nikkei up 1%; major mkts shut today, while Wall St ends up on Fed's assurance of continued stimulus. Overall Indian markets are still weedy and may see selling pressure near 5550. The support for the Nifty is at 5460 and resistance at 5580.

Results Today: Suzlon, Cipla, Balrampur Chini, Future Capital, Hindustan Copper, JK Sugar, Oracle Finance, Titagarh Wagons

Global events to watch

Þ Monster Employment Index

Þ Employment Situation

Þ Richard Fisher Speaks

Þ Treasury STRIPS

Global indices Update @ 8:

Dow Jones : 12062 (+20.29)

NASDAQ : 2753 (+04.32)

Nikkei 225 : 10550 (+118.6)

Hang seng : 23908 (+426.0)

SGX CNX Nifty : 5525 (- 13.50)

INR / 1 USD : 45.63

Stocks in action for the day: Tata Motors, Cairn India, Karuturi Global, Camlin, Arvind, ACC.

Committee of secretaries meet on February 7 on urea decontrol

Tata Motors finalises export plans for Nano: After Pan India presence for Nano, it is time for Tata Motors to take this product to the export markets. They are looking at the right hand markets like Indonesia and South Africa and would set up local assembly as well Tata Nano will soon be in the global markets. This car will be taken to the right hand markets first which includes Indonesia and South Africa. This will be its phase one, and then the company will take it to the other markets like Thailand, Sri Lanka, Romania, Turkey and Brazil. These are the markets where the company has finalized on going ahead for their export plans. The Pan India Presence came in last year and this year, the focus is to get the numbers right. Currently, the production is to the tune of about 5000 units a month and the company hopes to ram up to about 10000 units by March.

Vedanta to call off deal if Cairn India tweaks royalty pact: Vedanta Resources will terminate the $9.6-billion Cairn-Vedanta deal if Cairn India accepts the oil ministry's conditions such as changing the royalty obligations in the Rajasthan block, three persons with direct knowledge of the matter said. Vedanta has also objected to the ministry proposal to ask Cairn India to accept the government position in cases where the company has initiated arbitration.

Car and bike prices likely to go up again: Car and bike prices may go up again, the second time in the last two months, if finance minister Pranab Mukherjee decides to increase excise duty by 2% in the Budget as the government looks to bring the duty back to pre-slowdown level.

RS Sharma says: -Had suggested Cairn, ONGC, Oil Ministry sit across table together-ONGC nod is required for Cairn Vedanta deal to go through -Contentious issues like cess, royalty should be resolved first -Only issue is interpretation of production sharing contract -Unfortunately Cairn ,ONGC Haven't Met To Resolve Issues -Pre-marketing road shows for FPO on -ONGC FPO on track; will hit markets on March 15

PFC FPO: Sources -Power Ministry to float cabinet note on PFC divestment next week -PFC FPO aims to pick up Rs 7000 crore CNBC-TV18 alert: -PFC divestment 5%, fresh equity 15% -PFC FPO likely in Q1FY12

SAIL says -Decision on FPO merchant bankers early next week -See 'tapering' of coking coal prices in short term -To launch FPO by March-end

RIL says -Plan 5-week maintenance shutdown of Jamnagar unit -Jamnagar Refinery unit to be shut from February 7

NTPC -Delhi HC stay to continue on NTPC boiler tender -Delhi HC to now hear NTPC bulk boiler tender on February 10 =NTPC will not open price bids for the Rs 11,000 crore bulk equipment supply tender (ET) =NTPC has floated bids for 800- Mw bulk supercritical units for Rs 19000 crore (BS)

Cravatex has concluded negotiation to extend the sub license agreement for the use of "FILA" trademark till December 31, 2016 for India, Bangladesh, Pakistan and Sri Lanka. The stock was at Rs 557.55, up 5 per cent on the BSE.

Sun Pharmaceutical has received USFDA approval for generic Razadyne. The drug is indicated in treatment of mild to moderate dementia of the Alzheimer’s type.

Ambuja Cements’ consolidated net profit for the year ended December 2010 stood at Rs 1262.97 crores as compared to Rs 1216.84 crores in the same quarter a year ago. Total income increased to Rs 7637.78 crores from Rs 7332.68 crores in the same period a year ago.

Whirlpool of India reported net profit of Rs 24.10 crore for the quarter ended December against Rs 16.16 crores in the same quarter a year ago. Total income rose to Rs 622.68 crores from Rs 523.43 crores during corresponding quarter a year ago.

Softech Infinium Solutions has launched its online education portal for its customers globally. The stock was at Rs 11.75, up 0.77 per cent on the BSE. It touched a high of Rs 12.20 and low of Rs 11.08 in trade so far.

D.B Corp plans to expand its operations in Maharashtra in Marathi language. The company publishes 7 newspapers across 13 states in India. The stock was at Rs 256.80, up 0.78 per cent on the BSE. It touched a high of Rs 261.65 and low of Rs 250 in trade so far.

Jai Corp reported net profit of Rs 23.99 crores for the quarter ended December 2010 against Rs 15.59 crores in the same quarter a year ago. Net sales rose to Rs 113.64 crores as compared to Rs 97.83 crores in the same period previous fiscal.

Great Offshore’s net profit stood at Rs 1.83 crore for the quarter ended December 2010 against Rs 28.09 crores in the same quarter a year ago. The company’s revenues stood at Rs 194.66 crores as compared to Rs 199.18 crores during the same period a year ago.

Wockhardt’s consolidated net profit climbed to Rs 141.67 crores for the quarter ended December against loss of Rs (181.23 crores in the same quarter previous fiscal. Net sales were at Rs 950.80 crores from Rs 889.33 crores.

Mundra Port and Special Economic Zone has fixed February 15, 2011 as the record date for the purpose of payment of Interim Dividend on equity shares for the financial year 2010-11.

Motherson Sumi reported consolidated net profit of Rs 106.37 crores for the quarter ended December 2010 as compared to Rs 74.88 crores in the same quarter previous fiscal. Total income increased to Rs 2155.39 crores from Rs 1819.63 crores during the same period.

California Software Company has signed a master agreement to sell its outsourced Product Development Business to Alten Europe. The sale includes all its tangible and intangible assets and head counts for a consideration of about Rs 100 crores.

Voltas reported net profit of Rs 70.55 crores for the quarter ended December against Rs 75.69 crores in the same quarter a year ago. Net sales stood at Rs 1039.28 crores from Rs 990.48 crores in the same period previous fiscal.

Gitanjali Gems is all set to buy assets of Italy based jewelery company, DIT Group SPA, which is engaged in manufacturing, marketing and sale of jewels and owns a few reputed brands. The acquisition would help Gitanjali Gems to have access to DIT’s Italian technologies and creativity, the company announced to the exchanges.

Mercator Lines, the HK Mittal-controlled shipping-to-mines major, will invest about Rs 200-250 crore 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.

ACC- Ambuja Cement merger likely in the next 6-8 months (DNA)

Reliance Power’s Sasan project gets a go ahead for its carbon credit valued at over Rs 2,000 crore (HT)

CBI lawyer says Swan, Unitech given preference during telecom licence allocation

Andhra Bank hikes base rate by 50 bps to 9.5% effective Saturday

APL Apollo increases the price of its products by 8-9% in wake of higher input cost

Bajaj Hind has made repayment of an aggregate amount of US$ 133.006 million, including the redemption premium of USD 33.434 million (outstanding was USD 99.57m)

Lens on Rs 214 crore loan from DB Realty to TV channel Kalaignar majority of which is owned by family members of DMK party chief M karunanidhi (ET)

Arvind set to ink deal with French women’s brand Elle for clothing and fashion accessories (ET)

Aegis scouts for more acquisitions in Africa and Europe to expand its global footprint but shall stay from Indian cos (ET)

Whirlpool set to invest Rs 125 crore on new product development, marketing and enhancing infrastructure the next fiscal (ET)

Karuturi Global acquired 58% stake in Florista India through a share swap deal (BS)

Camlin inks pact with Japanese based Zebra pen & pencils manufacturer Zebra co Ltd (BS)

Jet Airways to repay around Rs 1,000 cr of debt each fiscal & also looking to prepay some of its high cost rupee debt (Mint)

Nalco may invest around Rs 700 crore for picking up stake in Hindustan Copper Ltd (Mint)

Coal India aims to include Indian Railways as a stakeholder in the project to ensure smooth delivery of imported coal to the power stations (BL)

L&T Infra to raise Rs 400 crore through bonds which will open on February 7 (BL)

Housing project proposals witness 50% drop in the city on account of lukewarm response to the real estate market (DNA)

Indian companies eye USD 4 billion generic opportunity as blockbuster drugs losing patent protection in the USA over 2011-2012 (TOI)

SAIL bids for Mongolian coalfield with reserves of over 6 billion tonnes of coking & thermal coal may setup a plant (HT)

Shyam Star Gems Ltd has made an open offer to acquire 13.9 lakh shares at a price of Rs 18/sh (FE).


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