Friday, December 23, 2011

TECHOUTLOOK : Support for Nifty is at 4800 resistance at 4720.

Market Outlook: Indian markets are expected to open in a positive terrain tracking constructive sentiments seen on global counters. Asian markets are closely watching France GDP data due today. We believe market are not out of woods hence any rally should be used for booking profits.

Global Markets: US shares moved higher on the session Thursday on strong domestic economic numbers. Stronger than expected jobless claims, leading indicators and consumer confidence triggered the bullish buying on the trading day. At the close of US trade, the Dow Jones Industriaal Average added 61.91 points or 0.51% to 12,169.65, the S&P 500 gained by 0.83% or 10.28 points at 1,254 and the Nasdaq Composite index advanced 0.83% or 21.48 points to 2,599.45.

Global events to watch:

· Investors are awaiting France's GDP on Friday.

Global indices Update @ 8:

Dow Jones : 12169` (+61.91)

NASDAQ : 2599 (+21.48)

Nikkei 225 : 8395 (-64.82)

Hang Seng : 18574 (+196.3)

SGX CNX Nifty : 4772 (+19.00)

Gold (USD/t oz.) : 1614

Nymex Crude (F) : 99.60

INR / 1 USD : 52.78

TECHOUTLOOK : Support for Nifty is at 4800 resistance at 4720.

Call for the day:

Buy Orchid Chemical SL 136 Target 148-150.

Buy Spicejet SL 15.30 Target 18.50.

Stocks in action for the day: MBL Infra, Orchid Chem, RComm, Patni.

RBI flags deteriorating loan portfolios of banks: Risks are rising for the banking sector even as credit growth slowed and slippages outpaced credit growth, said the RBI's Financial Stability Report (FSR) covering the last six months.

Birla Corp allowed to remove 70,000 t of limestone from Rajasthan unit: The Rajasthan High Court has granted a partial relief to Birla Corporation Ltd – the flagship of M.P. Birla Group – by allowing it to remove 70,000 tonnes of already excavated limestone from the mining area at its Chanderia unit in Rajasthan.

Phaneesh Murthy, CEO, iGate-Patni says: -Looking at merging Patni with iGate -If delisting goes through, will aim to begin merger by December 2012 -May do away with the ‘Patni’ name eventually -US companies may increase ITbudgets by 1-2% -BFS may see a decline, which will impact the overall industry -H1B problem may impact numbers -Will complete integration with Patni By December 2012-Reached level of USD 28 million cost saving per year -Investing USD 50-60 million in FY13 -Will add 4000 employees in 2012 -Pricing for similar services may be cut aggressively -Postal ballot for delisting to be completed by Jan 1st week -Price may be an issue for delisting -Could bring stake down to 74% in delisting doesn’t go through -Paying USD 70 interest on debt taken for Patni -Will bring down debt within 5-6 years

HDFC Bank raises NRE fixed deposit rates to 9% effective Friday -Raises NRE fixed deposit rates to 9% from 3.8%

Govt may pledge SU-UTI assets to cut deficit -Govt holdings: ITC - 11.54%, Axis Bank - 23.58% & L&T - 8.27% -Govt may borrow Rs 50,000 crore by pledging land, shares to narrow budget deficit (BS)

After 3G, now 2G telecom companies write to government -2G telcos oppose move to charge additional fee for 1.8 Mhz -Reliance Comm, Tata Tele, Uninor, Videocon write to Kapil Sibal -MTS, HFCL Infotel & STel write to Kapil Sibal -DoT cannot violate existing license conditions -Valid legal contracts cannot be changed unilaterally -Fee for 1.8 Mhz over 4.4 MHz for GSM-Fee for 2.5 Mhz over 2.5 MHz for GSM Bharti, Vodafone, Idea to move TDSAT on 3G order: Sources-Telcos will seek stay on DoT order banning 3G ICR -ICR: Intra-Circle Roaming -DoT may impose Rs 50 crore penalty per circle -Bharti won 3G in 13 circles, Vodafone in 9, Idea in 11 -Bharti, Vodafone, Idea paid Rs 30,000 crore for 3G spectrum -Telcos to challenge decision on several grounds
-3 telcos have sought refund if 3G roaming cancelled -3 telcos await DoT order on 3G roaming bar
-3G Intra-Roaming Ban -Bharti Airtel declines to comment on ban of 3G intra-circle roaming
-Vodafone declines to comment on ban of 3G intra-roaming -Idea not received any communication from DoT yet

DK Mittal says -Expect minimum of Rs 3,000-4,000 crore capital infusion in SBI -SBI capital infusion before March 31, 2012 -Amount to be allocated in 3rd supplementary -DK Mittal is financial services secretary

Punj Lloyd forays into Kenya market with a road project worth Rs 286 crore

Airlines may get to import jet fuel directly, bypassing IOC; move to save Rs 2500 crore yearly on airlines (BS)

Lanco Infra files Rs 200 crore claim for Anpara delay under the advanced loss of profit policy (BS)

Orchid Chemicals gets USD 1.5 million payment from Merck for drug development collaboration (ET)

FCCB payout may put pressure on Reliance Communications for tower stake sale; company confident of meeting debt obligations (ET)

Reliance Infra plans Rs 500 crore fresh equity for BSES (BS)

MBL Infra bags projects worth Rs 315.8 crore

NHAI to launch bond issue of Rs 10,000 crore to part finance projects (FE)

GVK Power & Infra to sell stake in its Australian unit to raise USD 500 million (FE)

Hindustan Motors enters Bangladesh markets for producing taxis; JV with local group for assembly

unit near Dhaka (BS)

Valiant Communication to buyback upto 10 lakh shares at a maximum price of Rs 18/sh (CMP: 12.30)

Piramal Lifesciences board meet today on scheme of arrangement for demerger of NCE Research unit of Piramal Lifesciences into healthcare

F&O ban: ABG Shipyard, Gitanjali Gems, Ruchi Soya

House panel calls for review of all contracts of RIL KG-D6 block (Reports)


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