Bank of Research

Sugar decontrol: We need policy action, not committees

2012-01-31T08:58:00.000+05:30

Sugar decontrol: We need policy action, not committees

Do we need yet another committee on sugar decontrol? The issue has been discussed threadbare: at least two committees had earlier pushed to free the industry from controls. States set the minimum price that should be paid to farmers growing sugarcane. Before elections, incumbent governments try to sweeten the deal for farmers by pushing for high cane rates. In years of glut, when sugar prices fall, mills delay payments.

After years of creeping reform, even today mills are forced to sell 10% of their output to states at pre-determined prices for the public distribution system. India needs a more efficient system than quotas to get sugar to the poor. Many mills, funded by sugar cooperatives controlled by politicians, are too small to operate efficiently. Surely, more than 650 mills are too many to crush 20 million tones.

The industry needs to run along commercial lines to get in shape. Cane growers and local mills enjoy a symbiotic relationship with each other. Neither can do without the other. India does not allow mills to grow cane, and our cooperative rules work against the interests of farmers.

These controls should go. Mills should be allowed to own plantations, as they are in Brazil. Farmers' groups should be allowed to set up companies to operate sugar mills. These steps will create synergy from cane to the finished product.

How should sugarcane be priced? Ultimately, the price of cane depends on the price at which sugar and derivatives like molasses and alcohol can be sold. If state governments scrap the politically-motivated advisory price that they set for cane, a more rational pricing policy, based on the final output, can evolve.

The domestic price of sugar and its derivatives should be controlled by imports in a lean season and exports during a glut. Variable import duties and export taxes should replace the trade caps and bans that we now have.

With greater pricing freedom, fewer controls and state support, weaker mills will fold and consolidation will take place, creating economies of scale. The time for talk is over; the government must implement decontrol now.

Stocks in action for the day: SBI, PNB, Glenmark, Coal India, Edelweiss.

2012-01-31T08:52:00.001+05:30

Market Outlook: Indian Markets are expected to open higher tracking positive cues from Asian markets while investors will keep a close eye on earnings of leaders which would drive the market sentiments. Technically market is in selling mode and can slide down to around 5000 zones.

Results Today: ICICI Bank, PNB, NMDC, Siemens, Titan, Crompton Greaves, TVS Motors, Dabur Industries, IDBI Bank, Central Bank of India, Jagran Prakashan, Mahindra Holidays, Century Textiles, Shoppers Stop, Union Bank of India, Aban Offshore, City Union Bank, Delta Corp, PTC India, HCL Infosystem, Firstsource Soln, Subex, KEC International , Blue Dart, IPCA Labs, Financial Technologies, Berger Paints, DCM Shriram Consolidated, Usha Martin and Welspun Projects.

Global Markets: It was a show of resilience on Wall Street even as it closed flat. European markets closed sharply lower while Asia is in the green. The Dow reversed a triple digit decline towards the close even as all three indices ended in negative territory.

Global events to watch:

ü The Employment Cost Index is expected to rise to 0.4 % for the fourth quarter. Meanwhile the S&P Case Shiller Home Price Index is expected to contract by 0.4% while consumer confidence is expected to rise to 68.

Global indices Update @ 8:

Dow Jones : 12653 (-06.74)

NASDAQ : 2811 (-04.61)

Nikkei 225 : 8827 (+34.33)

Hang Seng : 20320 (+160.0)

SGX CNX Nifty : 5142 (+37.00)

Gold (USD/t oz.) : 1739

Nymex Crude (F) : 99.41

INR / 1 USD : 49.50

TECHOUTLOOK : Support for Nifty is at 5050 resistance at 5160.

Call for the day:

Buy Tata Global SL 94 Target 106-110.

Sell Crompton Greaves SL 136 Target 125.

Sell Glenmark SL 316-318 Target 300.

Stocks in action for the day: SBI, PNB, Glenmark, Coal India, Edelweiss.

Reliance Industries buyback will open tomorrow.

Mark-to-market forex losses affected pharma major Glenmark's third quarter performance. The net profit almost halved to Rs 86.5 crore. The EBITDA also took a hit, falling 23% YoY.

Essar Oil's wait to exit CDR has been delayed for a few more days. Lenders okayed the proposal but have failed to reach a consensus on compensation to lenders.

After several failed attempts, Starbucks announced its India entry. The company inked a 50-50 joint venture with Tata Global Beverages and outlined an initial investment of Rs 400 crore.

Power producers have sought the government's intervention to ensure cheaper coal for their use. At the recent meeting with the Prime Minister, power producers sought the removal of 5% customs duty and 5% CVD on imported coal. They also sought removal of the 26% profit share for coal mining, arguing that it will put an extra burden on coal prices.

SBI says it has the government's nod for further capital infusion. The government will infuse up to Rs 7,900 crore via preferential allotment share issue.

Punjab National Bank's board has approved the issue of preferential shares to the government and hopes to raise upto Rs 1,285 crore via the issue. The board expects to get shareholders nod on March 20.

3i Infotech's shareholders have approved raising funds via share issue.

Lupin gets the USFDA's tentative go ahead for the generic Glumetza.

The Economic Times reports that the Coal Ministry has rejected Reliance Powers Sasan mine mortgage plan.

BG will club the Mahanagar gas deal with Gujarat Gas stake sale, reports the Economic Times.

And the Times of India reports that Coal India has cut prices and the company's revenue may take a hit.

KNR Constructions receives two orders from GVK worth Rs 675 crore.

Electrotherm (India) board approves reference to CDR cell.

TECHOUTLOOK : Support for Nifty is at 5025 resistance at 5063.

2012-01-24T09:17:00.001+05:30

Market Outlook: Markets are expected to open higher tracking positive Asian markets while investors will closely watch the outcome of RBI monetary policy review, due later today. Reserve Bank of India is likely to keep policy rates unchanged, even as inflation and economic growth rate have eased. However, RBI could spring a surprise with a cut in the cash reserve ratio (CRR) to ease liquidity pressure on the system, which may also reduce funding costs for the industry.

Ahead of RBI credit policy, banking stocks are showing strong under current and are bouncing back after every small dip. Bank Nifty is gaining strength since last few weeks and has major resistance at 9950 while a fall below 9000 can reverse the current uptrend.

Results today - Cairn India, Biocon, Nelco, Lupin, Ceat, Yes Bank, Grasim, Indraprastha Gas, MRPL, Arvind, Eclerx, Edelweiss Financial, Indiabulls Power, Indiabulls Real, Nilkamal, 3i Infotech, HMT, Kalindee Rail, Zensar Tech, GIC Housing, Ajanta Pharma, 20 Microns, Everest Industries, Godavari Power and Ispat, Granules, Greaves Cotton, Indian Metal and Ferro, Kirloskar Brothers, Kirloskar Brothers Investment, Maral Overseas, Nocil, Oudh Sugar, Prism Cements

Global events to watch:

 Day One of Two of the of Federal Open Market Committee meeting.

Global indices Update @ 8:

Dow Jones : 12708 (-11.66)
NASDAQ : 2784 (-02.53)
Nikkei 225 : 8798 (+15.70)
Hang Seng : 20110 (+167.4)
SGX CNX Nifty : 5059 (+7.50)
Gold (USD/t oz.) : 1675
Nymex Crude (F) : 99.65
INR / 1 USD : 50.24

TECHOUTLOOK : Support for Nifty is at 5025 resistance at 5063.

Call for the day:

Sell JSW Steel with a stoploss of Rs 641 for targets of 624 & 618.

Stocks in action for the day: Shri Lakshmi Cotsyn, HUL, Exide, Essar Oil.

RBI macro economic report -Domestic growth moderating more than expected -Growth likely to be below potential in FY12 -Domestic growth to recover at a modest pace in FY13 -Inflation has begun to fall in line with projection-Decline in food inflation likely to reverse -Policy to take into account downturn in growth -Inflation, inflationary expectations remain high -India's near-term growth outlook has deteriorated -Current account deficit to widen during the year -Fall in primary food Inflation expected to be short-lived -Core inflation, exchange rate important for future rate actions -Banks high SLR holding give scope for liquidity infusion -Additional liquidity instruments can be considered -Liquidity deficit needs to be addressed in calibrated manner EGoM on Gas to meet on February 18 -EGoM to finalise new gas allocation -EGoM on UMPP's rescheduled to

February 21 Cabinet: -Likely to take up Cairn -Vedanta nod on Tuesday -Likely to take up UIDAI funding proposal on Tuesday

DGH says RIL , BP to start production FM satellite fields in 2015-16 -Bhagyam will be ramped up to 25,000 BPD -Biggest highlight in 2012 will be Bhagyam production

RIL, BP to come up with some solutions for D6 this year

Sterlite Industries says -Aim to start mining at Balco coal block by FY13 end -In talks with govt for buying more stake in Balco

Govt sources say -May soon finalise duty on imported power equipment -Heavy Industries, power ministry consensus on level playing field -Level playing field between domestic manufacturers, importers -Domestic manufacturers like BHEL, L&T, Alstom Projects set to benefit
-Power ministry has moved draft cabinet note for discussion -Decision likely within the next fortnight

HUL puts its prime land in Bangalore on the block

Exide Industries enters into technical collaboration with East Penn USA

Essar Oil announces increase in gas reserves and resources at Raniganj CBM Block

Shri Lakshmi Cotsyn board to consider issue of warrants to promoters, non promoters on Jan 31st

In F&O Ban - ABG Shipyard and Alok Textiles

Stocks in action for the day: Tata Power, Jet, RIL, Godrej Cons, Aptech

2012-01-23T09:01:00.000+05:30

Market Outlook: Indian markets is expected to open flat and trade week ahead of below market expectations on RIL earnings. The 12 crore-share buyback aimed at boosting investor confidence in the stock is unlikely to allay concerns over the poor results.

Results today: L&T, GAIL, Maruti, Idea Cellular, Sterlite Industries, Kotak Mahindra Bank, Colgate, Federal Bank, Geometric, Jyothy Labs, DB Corp, Shree Cements, Torrent Pharma, Coromandel International, Ashoka Buildcon, Onward Technologies, Cera Sanitaryware, Electrosteel Castings, KPIT Cummins, Lakshmi Machine Works, Pheonix Mills, RPG Life, Vardhaman Textiles

Global Markets: Today most of the Asian markets shut on Chinese New Year. China, Hong Kong, Singapore, Korea and Taiwan markets shut today.

Global events to watch:

ü IMF Managing Director Lagarde speech in Berlin on global challenges in 2012.

Global indices Update @ 8:

Dow Jones : 12720 (+96.56)

NASDAQ : 2786 (-01.63)

Nikkei 225 : 8782 (+15.70)

Hang Seng : 20110 (+167.4)

SGX CNX Nifty : 5064 (+6.00)

Gold (USD/t oz.) : 1668

Nymex Crude (F) : 98.09

INR / 1 USD : 50.32

TECHOUTLOOK : Support for Nifty is at 5020 resistance at 5075

Call for the day:

Weak RIL earnings may erase some of their recent gains in the week : Sell RIL

Buy Titan Sl 186 Target 202-205

Stocks in action for the day: Tata Power, Jet, RIL, Godrej Cons, Aptech

RIL Q3 (QoQ) (cr - crore, vs - versus) -Net sales up 8.4% at Rs 85135 cr vs Rs 78569 cr -PAT down 22% at Rs 4440 cr vs Rs 5703 cr -Total expenditure up 12% at Rs 80420 cr vs Rs 71694 cr EBITDA down 26% at Rs 7285 cr vs Rs 9844 cr -EBITDA margin at 8.6% vs 12.5% RIL on share buyback -RIL board okays share buyback of Rs 10,440 cr -Board approves buyback at up to Rs 870/sh -Buyback up to Rs 12 cr shares via open-market -Buyback up to 3.6% of equity Mukesh Ambani says -Global nature of biz, weak economic condition hit Q3 -Delivered reasonably robust results despite challenges -To invest prudently in future growth engines Aptech stake sale hits a roadblock: Sources -Board not convinced on bid price & bidder plans.

Steel Authority of India Limited (SAIL) will be in focus on expansion and capacity addition in its Rs.70,000-crore programme. The company also plans to shift its focus to increase the share of value-added products from 39 per cent to around 55 per cent in the next two years.

Adani Port and Special Economic Zone Ltd (APSEZ) the company has been denied security clearance to participate in an auction to build a fertilizer loading berth at the Union government-controlled Vizag port in Andhra Pradesh.

United spirits results too disappointed the street, with Q3 net profit of nearly Rs 48 crores versus Rs 130 crores a year ago. Meanwhile, revenue stood at Rs 1,967 crores. The shareholders have approved raising foreign currency convertible bonds (FCCBs) worth USD 175 million and green shoe option of USD 50 million.

Jet Airways registered a net loss of Rs 101 crore which was lower than expectations due to higher other income. However, low margins signal that operational weakness continues despite Q3 being seasonally strongest. Also watch out for Zee Entertainment and Ultratech Cement.

FMCG giant Hindustan Unilever changed to its management committee and appoints Hemant Bakshi as executive director of its home and personal care division after current head Gopal Vittal quit.

Coal India has been asked to cut sales via e-auction. The coal minister says that the company has been asked to first meet power companies' needs.

Ramky Infrastructure Ltd., through a step down subsidiary, has signed a concession agreement with the National Highways Authority of India (NHAI) for a Rs 1,033.65-crore road project (a tollway) in Karnataka. The company, through concessionaire company Hospet Chitradurga

Karnataka Bank Ltd recorded a growth of around 86.71 per cent in net profit due to the increase in the spread and due to the strong credit growth. It recorded a net profit of Rs 72.05 crore in the third quarter of 2011-12 as against Rs 38.59 crore in the corresponding period of the previous fiscal, recording a growth of 86.71 per cent.

The production target for world's largest coal producer Coal India (CIL) is likely to be fixed at 464 million tonnes (MT) for 2012-13 financial year.

Godrej Consumer will issue 16.7 million shares to Baytree Investments and will raise Rs 685 crores via the share sale. Baytree Investment is an indirect wholly-owned arm of Temasek. The company will buy 60% stake in Chile's Cosmetica Nacional.

ONGC & RIL will be in focus on reports a possible technical partnership between ONGC and Reliance Industries-BP could be in the offing.

Aptech board on grounds of low valuation -Manipal Universal's offer below Rs 105/sh, Carlyle back bid around Rs 108/sh -Rakesh Jhunjhunwala likely to re-look at stake sale -Bidders yet to be communicated board's response

Godrej Consumer -Acquired 60% stake in Chile's Cosmetica Nacional-Plan to up stake to 100% in 3-5 years in Cosmetica Nacional -Cosmetica Nacional has turnover of USD 36 million

Godrej Consumer -To raise Rs 685 cr via share sale to Baytree -To issue 16.7 m shares to Baytree investments -Baytree investment is indirect wholly-owned arm of Temasek

Coal Minister says - Coal India asked to cut sales via e-auction -Asked Coal India to 1st meet power companies' needs

SEBI allows call auction in pre-open session for IPOs (This will hugely curb big spike on day 1 of listing) Call auction session will be for 60 minutes on 1st day listing Call auction session will be between 9 am to 10 am -Pre-open session to be allowed for companies relisting as well Other

Adani group agrees for 25% stake in proposed LNG Terminal in Gujarat - ET

Tata Power in talks to acquire 15% stake in Dubai's MEC Coal - ET

TECHOUTLOOK : Support for Nifty is at 4920 resistance at 5000.

2012-01-18T08:56:00.001+05:30

Market Outlook: Indian markets are expected to open flat and trade in negative terrain on the back of mixed action seen on the Asian counter. Back to domestic space all eyes are on credit policy on January 24, a word on the street is the RBI will leave interest rates unchanged as it continues its hawk eye view on inflation.

Results Today : JSPL, Mindtree, NIIT, Bajaj Finserv, Bajaj Finance, Raymond, Tata Coffee, Agro Tech Foods, Infotech Enterprises, Manali Petro, Premier, Sudar Garment

Global Markets: The US markets ended higher but off their best levels as weakness in financials offset earlier optimism following a handful of better-than-expected global economic news and a successful Spanish debt auction. The S&P 500 rose 5 points to finish at 1,293.67, briefly hitting the psychologically-important 1,300 level earlier in the session. Asia trading mixed; Hang Seng up, Straits Times down

Global events to watch:

ü U.S. Producer price index for December.

ü U.S. industrial production for December

Global indices Update @ 8:

Dow Jones : 12482 (+60.01)

NASDAQ : 2728 (+17.41)

Nikkei 225 : 8481 (+14.77)

Hang Seng : 19609 (-17.95)

SGX CNX Nifty : 4964 (-08.00)

Gold (USD/t oz.) : 1647

Nymex Crude (F) : 101.17

INR / 1 USD : 51.06

TECHOUTLOOK : Support for Nifty is at 4920 resistance at 5000.

Call for the day:

Sell ICICI Bank SL 795 Target 760-750.

BUY Cairn India SL 325 Target 385-400 (Positional call)

Stocks in action for the day: Airlines in action, Cairn India, Kingfisher, Essar Oil.

FDI in aviation cleared: -Proposal for 49% FDI in aviation to be sent for cabinet approval Aviation Minister says -Met Pranab Mukherjee to discuss sector issues -Govt to give funds to Air India to pay pilots -GoM on Air India to meet next week -To move cabinet note on 49% FDI by carriers -Investment by foreign carriers will help local airlines -GoM to consider companies recommendations to allow direct ATF Imports

Cairn, ONGC's production ramp up at Rajasthan anytime now-No comments on FPO as department of divestment considering other options -Concerns on large under-recoveries -Expecting to get remunerative prices in excess of USD 55/barrel -At a discussion level stage with Conocophillips -ONGC final dividend to be decided in Q4

RINL may soon get rights to mine iron ore in Rajasthan: Rashtriya Ispat Nigam Ltd (RINL) is poised to obtain its first iron ore mining lease in Rajasthan for relatively low-grade magnetite and may form an equity-linked joint venture with Andhra Pradesh Mineral Development Corporation (APMDC) in February for a high-grade haematite reserve in Andhra Pradesh.

Mahindra Satyam has signed an agreement with Intertek, a US-based testing, inspection and certification services, to work smart grid-focused testing and engineering activities.

Tata Consultancy Services reported 23% year-on-year rise in second quarter consolidated net profit at Rs 2,887 crore, helped by continued demand for outsourcing services and said the deal pipeline remains strong. Revenue for October-December quarter jumped 37% from a year ago to Rs 13,204 crore,

RBI allows unlisted cos to hedge commodity price risk: Banks authorised to deal in foreign exchange can grant permission to unlisted companies to hedge price risk on import/export in respect of any commodity (except gold, silver, platinum) in the international commodity exchanges/markets, according to the Reserve Bank of India.

Housing finance company, DHFL has posted a net profit of Rs 75 crore for the quarter ended December 2011, up 21 per cent from Rs 62 crore in the corresponding year-ago period.

Losses on sale of diesel at government-controlled rates have hit a record Rs 14.57 a litre, sending state-owned oil companies scrambling for ways to cover mounting losses. Indian Oil Corp, Hindustan Petroleum and Bharat Petroleum are losing Rs 435 crore/ day as they are made to sell diesel, domestic LPG and kerosene below cost to keep inflation under check.

Dishman Pharmaceuticals and Chemicals said its Switzerland-based subsidiary Carbogen Amcis has acquired Creapharm Parenterals for an undisclosed amount

Kingfisher Airlines Ltd the company has told its creditors that the company is likely to receive support in form of equity infusion by end-March, said two bankers familiar with the matter.

Reliance Infrastructure Ltd the company has decided to merge its five subsidiaries - Reliance Energy, Reliance Energy Generation, Reliance Goa and Samalkot Power, Reliance Infraventures and Reliance Property Developers - with itself while demerging the container business of Reliance Infrastructure Engineers.

NMDC Ltd India's largest iron ore producer and exporter confirmed acquisition of a 50 percent equity stake in Perth-based gold and base metals exploration company Legacy Iron Ore Ltd. for a consideration of A$18.89 million.

Lanco Infratech Ltd the company has missed its quarterly repayment of loan raised for its 1,200-mw imported coal power project at Udupi in Karnataka as the poor health of state distribution companies is taking a toll on power utilities.

Marico Ltd the FMCG firm said it is looking at acquisitions worth up to Rs 1,000 crore both in the domestic and overseas markets as part of its strategy to maintain a growth of 26-27 per cent in the coming years.

In a major blow to the Ruias-led Essar Oil, the Supreme Court rejected the company’s 125 per cent sales tax deferment benefit claim on its investment in the Vadinar refinery project. The company will now have to fork out at least Rs 6,300 crore in sales tax to the Gujarat government.

Maruti Suzuki India Ltd, the country’s top car maker, raised prices of all its models on Tuesday, sending its shares up as much as 11 per cent, as investors rallied behind the company after months of falling sales appeared to have levelled in December.

National Stock Exchange said it will exclude Deccan Chronicle Holdings and Everest Kanto Cylinder from its futures and options segment. The contracts won’t be available after the March series expires.

Oracle India to increase focus on Govt projects

Stocks in action for the day: Subex, NCC, Dewan Housing, SBI, HCL Tech

2012-01-17T08:48:00.001+05:30

Market Outlook: Indian markets are expected to open with a flat positive note backed by recover attempts seen in the Asian counters. All eyes are on TCS and HCL Technologies ahead of their quarterly results due later today. he software exporters are expected to report a bump in margins, aided by a weak rupee, while eking out revenue growth to meet expectations in an uncertain business environment. Asian shares inched higher and the euro stayed above a 17-month trough on Tuesday as investors focused on economic data from China to gauge the impact of the euro zone debt crisis on global growth.

Results Today : TCS, HCL Tech, VST Industries, Camlin, Chambal Fertilisers, Automotive Axles, Blue Star Infotech, Electrotherm India, Kajaria Ceramics, Maharashtra Scooters and Zee News

Global Markets: The US markets were closed yesterday, therefore no key takeaways. However, in data to watch out for in the US today, empire state manufacturing index is expected to rise to 10.50 for January. European markets closed slightly higher in a choppy session, with weakness in banks after a mass credit downgrade of euro zone countries offset by a rise in defensives, such as pharmaceuticals.

Global events to watch:

ü Empire State index for January.

Global indices Update @ 8:

Dow Jones : 12422 (-48.96)

NASDAQ : 2710 (-14.03)

Nikkei 225 : 8447 (+69.13)

Hang Seng : 19296 (+284.0)

SGX CNX Nifty : 4901 (+04.00)

Gold (USD/t oz.) : 1655

Nymex Crude (F) : 99.83

INR / 1 USD : 51.65

TECHOUTLOOK : Support for Nifty is at 4840 resistance at 4920.

Call for the day:

Buy South India Bank SL 22 Target 24.5-25.

Stocks in action for the day: Subex, NCC, Dewan Housing, SBI, HCL Tech

The Telecom Regulatory Authority of India (TRAI) has suggested Rs 20 crore as the entry fee for pan India unified licence.

Infosys is looking at increasing its focus on the insurance sector in the coming months, a top official of the company said.

The Government of Singapore has acquired a 1.09% stake, now worth about Rs2,500 crore, in Reliance Industries (RIL).

Tata Motors Ltd after the global vehicle whole sales rose an annual 27 percent in December, the company said in a statement on Monday, driven by strong sales of its passenger cars and luxury Jaguar Land Rover vehicles.

A Group of Ministers (GOM) is likely to recommend import of jet fuel (Aviation Turbine Fuel or ATF) on a case by case basis. At its meeting here the inter-ministerial group is also likely to discuss a proposal to allow foreign airlines to pick up equity in domestic airlines.

ONGC Tripura gets green nod for transmission leg: In a move that may remove part of the hurdles before commercial generation from the upcoming 2 X 363.3 MW gas-based power station of ONGC Tripura Power Company (OTPC), the Union Government has recently granted forest clearance for larger part of the Palatana (Tripura) - Silchar (Assam) leg of the transmission project, according to sources.

RINL bags Steel Minister's trophy again: Rashtriya Ispat Nigam Ltd (Visakhapatnam Steel Plant) has bagged the prestigious “Steel Minister's Trophy” (for its performance in the year 2009-10) for being the best integrated steel plant in the country. This is the second time RINL has won this award.

India's exports rose for the first time in five months, encouraging the government to reaffirm that it would achieve its $300-billion target for the year. Exports in December grew 6.7% to $25 billion over the previous month

South Indian Bank, the Thrissur (Kerala)-headquartered old generation private sector, has reported a 36 per cent increase in net profit at Rs 102 crore in the three-months ended December 31, 2011, against Rs 75 crore in the corresponding period last year.

Aided by a 32 per cent growth in net interest income, ING Vysya Bank's net profit grew 44 per cent during the third quarter of this fiscal compared with the corresponding quarter of last fiscal.

Software services provider Tata Elxsi reported an 84% jump in net profit to Rs.10.3 crore for the third quarter ended December 31. It had posted a net profit of Rs5.6 crore for the October-December period of 2010

Maruti Suzuki Hedges 80% of Yen Exposure on Behalf of Key Vendors. Maruti Suzuki had obtained special permission from the Reserve Bank of India (RBI) to buy forex cover on behalf of its vendors in June 2011.

GAIL Ltd the state-run company is in talks to buy liquefied natural gas (LNG) from suppliers, including Macquarie Energy, which has a share in the U.S.-based Freeport LNG project.

Market regulator Securities and Exchange Board of India (Sebi) has imposed a fine of Rs 5 lakh on India Infoline Securities alleging that the brokerage house had carried out synchronized trades in the shares of Asian Star Company for the period October 10, 2008 to November 20, 2008.

State Bank of India said that the government has approved a capital infusion of Rs.6,000-8,000 crore in the bank by March 31, a step that would help the lender to enhance its business.

Magma Fincorp reported a lower growth in profit of Rs.13.9 crore during the third quarter of 2011-12, down 59% from Rs.32.7 crore in the same quarter last year, due to change in business strategy and accounting policy. The fall in profit is also a consequence of MTM loss of Rs.5 crore on forex exposure.

The diversified Adani Group has zeroed in on Andhra Pradesh to set up a deep-water port with a proposed investment of $1 billion, as part of its plans to touch a cargo handling capacity of 200 million tonnes (mt) by 2015.

Govt Closer to Imposing Duty on Imported Power Tools.

Stocks in action for the day: Subex, NCC, Dewan Housing, SBI, HCL Tech

2012-01-17T08:48:00.000+05:30

Technical Outlook: Nifty support seen near 4820 and resistance at 4880

2012-01-16T09:12:00.001+05:30

Market Outlook: Indian markets are to expected to open with a negative note backed by sentiments on the European downgrades. Indian sentiments to remain cautious backed by global news. Markets will only stabilise once there is clarity on macroeconomic issues like growth, inflation, interest rates and deficit.

Results Today - ING Vyasa Bank, Dawn Housing, Automotive Stamping, Magma FinCorp, Motilal Oswal Financial Services, Reliance Industrial Infra, South Indian Bank, Tata Elxsi, Tata Investment Corp.

Downgrades: Credit ratings agency Standard & Poor downgrades nine eurozone countries. Stripping France and Austria of their coveted AAA status. They have downgraded France one notch to AA+ from AAA while Spain has been downgraded two notches to 'A' from 'AA-'. Italy lost two notches to 'BBB+' from 'A'. Portugal too lost two notches to BB from BBB-. They said that the long-term outlooks on France, Italy, Spain, Portugal is negative while the outlook on Germany long-term ratings is stable.

Global Markets: The US markets bounced off their lows on Friday, but still ended in negative territory. Despite the day's losses, stocks still posted a gain for the week. Meanwhile, US markets will remain shut today on account of Martin Luther King day. And on economic data front, the trade deficit totaled USD 47.8 billion, widening in November to its largest in five months. Meanwhile, preliminary January consumer sentiment index rose to 74. European markets too closed lower on Friday.

Global events to watch:

ü US Holiday : Martin Luther King Jr Day.

ü Bond, Equity market closed.

Global indices Update @ 8:

Dow Jones : 12422 (-48.96)

NASDAQ : 2710 (-14.03)

Nikkei 225 : 8374 (-128.6)

Hang Seng : 19039 (-165.0)

SGX CNX Nifty : 4845 (-41.00)

Gold (USD/t oz.) : 1641

Nymex Crude (F) : 98.85

INR / 1 USD : 51.43

Technical Outlook: Nifty support seen near 4820 and resistance at 4880

Stocks in action for the day: SpiceJet, OIL, RIL, IL&FS Investment, CMC.

Telenor, Unitech spar over JV valuations, Unitech calls Rs 600 crore valuation should we worth 20 times more - ET Unitech says: CNBC-TV18 exclusive-Continue to object to Uninor's proposed Rights issue-Company does not require rights issue-Telenor has arbitrarily declined SBI funds-Believe debt funding is still the best option for Uninor-Rights issue being heard by an Arbitration panel-Punjab & Haryana HC order to allow rights issue conditional on the outcome of Arbitration

CMC Q3FY12 -Consolidated net profit at Rs 41.4 crore vs Rs 45.4 crore (YoY) -Consolidated net sales at Rs 396 crore vs Rs 273 crore (YoY) -PAT at Rs 41.3 crore, up 27% QoQ-Margins at 16.2% vs 14.7% -Company added 1,474 employees and 21 clients in Q3

CEA revises gas requirement for Indian power projects-Seeks immediate allocation of 21.80 mmscmd Recommendation sent to Power Ministry on January 6 -EGOM likely to meet and finalize gas allocation schedule-Gas requirement for projects commissioned by March-6.4 mmscmd for Rel Power Samalkot by March 2012 additional 3.2 mmscmd for Dec 2012 -2 projects of GVK dropped due to gas uncertainty

IL&FS Investment Managers buys 9.4% in Indiabulls worli property for Rs 200 crore

Govt mulls hike in urea prices ahead of state elections - ET

Cash strapped UB group plans to list W&M overseas - ET

DGH says govt can't stop RIL from recovering D6 costs - ET

RIL plans to pick up 26% stake in leading cable operator including MSO - BS

DCB postpones its Rs 150 crore QIP plans to June - BS

Oil India (OIL) in talks to buy 25% stake in Shale Gas for USD 200 million - Mint

2 key executives of SpiceJet quit even as airline plans to expand - Mint

F&O Ban: Aban Offshore, ABG Shipyard, Gitanjali Gems, Punj Lloyd and Ruchi Soya

Vodafone plans Indian listing despite regulatory uncertainties

GOM meeting on ATF import & FDI next week (PTI)

Govt may slash subsidy on Dap and Potash Fertilisers

Technical Outlook: Nifty support seen near 4800 and resistance at 4900

2012-01-12T08:51:00.001+05:30

Market Outlook: Indian markets are to expected to open flat and trade with the direction resulting from the key data releasing today. Investors are keenly awaiting IIP data due today which would direct the market trend going forward. Big boy Infosys declares its numbers today. Dollar revenues are expected to come in towards the lower end of the guidance at about 3.37% sequentially. Margins are expected to gain by about 200 basis points. Also, expect Nov IIP near to 1.6% -2.0 vs minus 5.1% in October.

Results Today: Infosys, HDFC, TTK Prestige, DCB, Geojit BNP Paribas, Gruh Finance, Sanghi Industries

Global Markets: The US markets ended near session highs, but still closed narrowly mixed, as worries over the Eurozone and declines in the energy sector limited gains. On economic data front, US economy expanded at a moderate pace in late November and December as consumer spending picked up, according to the Federal Reserve's latest beige book report. Meanwhile, weekly mortgage applications gained in the first week of 2012.

Global events to watch:

ü Weekly jobless claims are expected to come in slightly higher at 375,000.

ü Retail sales may rise to 0.4% for December.

ü Business inventories is expected to come in at 0.5%

ü The ECB will hold a policy meeting today. The committee is expected to keep interest rates on hold at the historic low of 1%, and hold back on further action, despite growing calls for the bank to resort to quantitative easing. The meeting happens as calls for the central bank to take further action to solve the euro zone debt crisis increase.

Global indices Update @ 8:

Dow Jones : 12462 (+69.78)

NASDAQ : 2695 (-06.85)

Nikkei 225 : 8447 (+25.62)

Hang Seng : 19151 (+147.6)

SGX CNX Nifty : 4849 (-24.00)

Gold (USD/t oz.) : 1648

Nymex Crude (F) : 101.48

INR / 1 USD : 52.22

Technical Outlook: Nifty support seen near 4800 and resistance at 4900

Call for the day:

Buy Bajaj Auto SL 1435 Target 1475.

Sell ABG Shipyard SL 393 Target 385.

Stocks in action for the day: Infosys, Thomas Cook, SBI, Titagarh Wagons.

Govt sources say -Decision on ATF direct import to be taken in next 3-4 days-Vijay Mallaya met DFGT officials on ATF Import issue-3 options being considered on direct import of ATF-Oil Ministry not in favor of direct import of ATF-Oil Ministry feels PSU's to be impacted by direct ATF import

FM says-Difficult to meet FY12 fiscal gap target of 4.6%

FM on farm sector-Reforms must in agriculture pricing-Seek rationalization of different subsidies-Seek decentralization of handling of food grains-Tax exemptions to cooperative societies-States remove mandi & purchase tax on dairies

Hilton says -JV's with Oberois and DLF have been a good experience-Economic situation was different when DLF JV was launched-Remain in great terms with DLF-Will be in talks with DLF if it re-enters hospitality-Expect to have 50 hotels in next 5 years-Strategy to work with multiple partners in India-Will grow in India via Management contracts

Thomas Cook puts India arm on the block - ET (Thomas Cool PLC this week pledged its entire holding with RBS)

SBI cuts processing fees for home loan by half to garner a larger market share - ET

Steel, cement and power companies oppose Coal India 's new pricing policy - ET

Reliance Communications in loan talks with China's CDB - reports

Titagarh Wagons plans foray into shipbuilding - DNA

Goldman Sachs says IRB Infra masked aircraft buy, management says there is no reason to disclose, will complain to SEBI - DNA

In F&O Ban: Aban Offshore, ABG Shipyard, Punj Llyod, Ruchi Soya and Gitanjali Gems

Genus Power board approves restructuring proposal

Technical Outlook: Nifty support seen near 4720 and resistance at 4760

2012-01-09T09:00:00.001+05:30

Market Outlook: Indian markets are to expected to open lower tracking weak Asian markets. Investors are keenly awaiting for Q3 quarterly results and IIP data this week which would direct the market trend for the week.

Global Markets: The US markets closed mixed on Friday, as even a strong government employment report was not enough to offset ongoing worries over the Eurozone debt crisis. However, all three major averages logged strong gains for the shortened trading week. And on economic data front that came on Friday, non-farm payrolls jumped 200,000 in December, according to the labor department, pushing the jobless rate to a near three-year low of 8.5%. The European markets too closed mixed as optimistic US data could not completely offset concerns about EU debt crisis.

Global events to watch:

 U.S. consumer credit for November.

Global indices Update @ 8:

Dow Jones : 12359 (-55.78)
NASDAQ : 26474 (+4.36)
Nikkei 225 : 8390 (-98.36)
Hang Seng : 18371 (-221.3)
SGX CNX Nifty : 4750 (-33.00)
Gold (USD/t oz.) : 1609
Nymex Crude (F) : 101.08
INR / 1 USD : 52.78

Technical Outlook: Nifty support seen near 4720 and resistance at 4760

Call for the day:

Sell JP Associate Sl 53 Target 45-46.
Buy GAIL SL 375 Target 395.

Stocks in action for the day: Vakrangee, Orchid Chem, OM Metals, IOB, Reliance Power

Sun Pharma , CMD Dilip Shanghvi says -Invests in small pharma companies in personal capacity -Companies have huge growth potential; need support to grow-Investments have no conflict of interest with Sun Pharma -May look at product sharing with Sun Pharma in future

JK Lakshmi Cement says: -No cement price cuts seen in Himachal Pradesh yet -Might witness increase in demand in next few months -Plan to hike capacity to 10 mt by end of next year

Vakrangee Software Q3FY12 QoQ -Net sales up 9% at Rs 341 crore versus Rs 312 crore -PAT up 6% at Rs 17 crore versus Rs 16 crore -Total Exp up 8% at Rs 301 crore versus Rs 278 crore -EBITDA up 25% at Rs 65 crore versus Rs 52 crore -EBITDA Margin at 19.1% versus 16.7%
Sterlite set to bid for remaining Balco stake: Vedanta Group aluminium refiner Sterlite is expected to shortly make a formal proposal for acquiring the Government's residual stake in aluminium major Balco.

5 solar power units to be set up in AP: Anjani Power Generation Private Ltd will set up four solar power units in Andhra Pradesh. Each of the units will have a capacity of 5 MW

Commercial vehicle maker Man Force Trucks announced its foray into the bus segment and said the company is eyeing a 50 per cent jump in overall sales at 6,000 units this year.

Srei Infra to launch debt fund thru MF route: Srei Infrastructure Finance Ltd plans to launch an infrastructure debt fund through the mutual fund route. The debt fund is likely to be launched in the next fiscal

German auto component-maker Continental will invest over Rs 800 crore in India over the next two years to strengthen its operations here,

In a major breather, GMR Infrastructure, which is building Maldives' largest airport, the Male International Airport will now be able to collect airport development (ADC) and insurance charges from this month.

State-run power producer National Thermal Power Corposration (NTPC) plans to foray into power distribution across the country in a big way.

The UK-based bus manufacturer Optare Plc’s shareholders have given approval for Hinduja Group-owned Ashok Leyland and associates to increase their stake to 75.1 per cent in it.

Overseas investors have pumped nearly Rs 6,500 crore in the market, including stocks and bonds, in the first week of the New Year. Between January 2 and 6, FIIs purchased equities and debt securities worth a gross amount of Rs15,168 crore. However, they also sold shares and bonds worth Rs8,674 crore in the same period, translating into a net investment of Rs6,494 crore , according to information available with market regulator Sebi.

Facing a resource constraint Railways has come up with a draft policy which seeks increased private participation and opens the doors for foreign direct investors for expanding its network. It has proposed six PPP models for project execution that includes creating railway connectivity on private land.

Kingfisher Airlines is downsizing. Over the next few months, the airline may cut its fleet from the existing 64 planes as it struggles to stay afloat.

The finance ministry is likely to get about Rs9,000 crore extra in the next budget if the government restructures centrally sponsored schemes as recommended by an expert committee.

Tata Power said the first 800 MW unit of the Mundra Ultra Mega Power Project (UMPP) has started power generation.

India’s cement manufacturing capacity may go up to 479 million tones by the terminal year of the 12th Plan, ending 2017, despite the existing over-capacity scenario, as per projections made by a Planning Commission Working Group on the sector.

Reliance Power gets access to 2 NCL blocks, company to benefit over Rs 6000 crore

Finance Ministry to infuse fresh Rs 1400 crore in Indian Overseas Bank (IOB) as Capital Support

OM Metals Infraprojects Consortium in talks with developers to develop Bandra plot worth Rs 800 crore

Orchid Chemical approves merger of Orchid Research Labs Ltd with Self
Gail to replace JP Associates in Sensex from today
Stocks in F&O Ban - Ruchi Soya and Gitanjali Gems
Oilmin Seeks Cabinet Nod for Cairn-Vedanta’s $8.5-b Deal
AV Birla Group eyes Lafarge's S-Africa biz

TECHOUTLOOK : Support for Nifty is at 4610 resistance at 4700.

2011-12-30T09:04:00.001+05:30

Market Outlook: Indian markets are expected to open in positive backed by positive cues from Asian and global markets.

Global Markets: US markets closed higher after positive data on US home sales and employment lifted investor sentiments. US weekly jobless claims jumped to 381,000 from the multi-month low of 366,000 posted for the previous week. It remained under the key 400,000 level for the fourth straight time, boosting sentiment. Pending US homes sales for November increased by 7.3%, much higher than the 0.6% increase that had been generally expected.

Global events to watch:

No Global Events For Today.

Global indices Update @ 8:

Dow Jones : 12287` (+135.6)
NASDAQ : 2613 (+23.76)
Nikkei 225 : 8427 (+28.99)
Hang Seng : 18479 (+81.33)
SGX CNX Nifty : 4706 (+36.00)
Gold (USD/t oz.) : 1560
Nymex Crude (F) : 100.02
INR / 1 USD : 53.35

TECHOUTLOOK : Support for Nifty is at 4610 resistance at 4700.

Stocks in action for the day: Networth Stock, BPCL, Mundra Port, DRL, GTL

Chennai Port Trust rejects Mundra Port bid to develop container terminal: The Chennai Port Trust has rejected the bid of the Mundra Port and Special Economic Zone to develop the Rs 3,700-crore mega container terminal project at Chennai port on the ground that revenue share of 5 per cent offered by the company was too low. The company was the only bidder for the project.

Aditya Birla group to invest $500 m in VSF plant in Turkey: The Aditya Birla group intends to invest $500 million over the next five years to set up a viscose staple fibre plant in Turkey.

The Tata Group has identified housing, education and EPC in the future to drive growth. It is targeting Rs 10,000 crore revenues by 2015 from EPC company Tata Projects, and aims to be one of India’s top three housing developers with Tata Housing. It forayed into the education space with Tata Interactive Systems.

ONGC plans urea plant in Tripura: State-owned Oil and Natural Gas Corporation (ONGC) on Thursday said they were planning to set up hydrocarbon-based urea fertiliser plant in Tripura after completion of Rs 3,950 crore power project at Palatana in South Tripura district.

OMC’s (BPCL, IOC, HPCL) may raise petrol prices by Rs 2.25/litre from Jan 1

India's second-largest drug-maker Dr Reddy's Laboratories Ltd on said it has launched its pain and inflammation relief cream 'Supamove' in the Indian market.

Godrej Properties sells 49% in Gurgaon project for Rs 45 cr: Realty firm Godrej Properties said the company has raised Rs 45 crore by selling 49 per cent stake in its arm to private equity firm Sun Apollo.

Union Bank of India has reduced its Base Rate by 10 basis points from 10.75 per cent to 10.65 per cent, with immediate effect.

NTPC board okays over Rs 18,000 cr for 2 thermal projects: NTPC Ltd has informed BSE that the board of directors of the company on Wednesday accorded the investment approval of Rs 15166.19 crore for the Kudgi super thermal power project (3 X 800 MW) in Karnataka.

NHAI Mops Up Rs 24,000 cr on Day 2 of Bond Issue : National Highways Authority of India (NHAI) has mopped up approximately Rs 24,000 crore at the end of the second day through its tax-free secured redeemable non-convertible bonds. Till late evening, QIBs have put in some . 16,000 crore, HNIs around Rs 7,000 crore and retail investors around Rs600 crore.

State-owned Steel Authority of India (SAIL) and Japan’s Kobe Steel will invest Rs1,500 crore in an equal joint venture plant in West Bengal to make 0.5-million tonnes of iron ore nuggets annually.

Finance Corp, National Thermal Power Corp and Rural Electrification Corp are likely to launch medium- to long-term infrastructure bonds in the first week of January to raise Rs 3,000-5,000 crore each.

Amidst all the noise of land acquisitions delaying highway projects, the National Highways Authority of India (NHAI) is inching closer to acquiring a record 10,000-12,000 hectares in the current fiscal. This is the largest ever land acquisition in a year by the highways regulator.

The Securities and Exchange Board of India has suspended the certificate of registration of broking firm Networth Stock Broking for a period of one month for allegedly violating the code of conduct for stock brokers in the matter of GG Automotive Gears.

India’s biggest lender, the State Bank of India, disbursed Rs 1,000 crore less in home loans during the year to November as home sales plummeted across top cities because of high home prices and growing interest rates.

The Reserve Bank of India bought back bonds worth Rs 8,109 crore of the Rs 12,000 crore it was supposed to buy back through the open market operation.

The government is looking at borrowing around Rs 40,000 crore more to make up for the shortfall in revenue receipts and poor disinvestment realization in the current fiscal.

The finance ministry has eased lending norms for the warehousing sector in a preemptive move to meet the massive requirement of storage capacity for the effective implementation of the Food Security Bill. Under the new norms, the National Bank for Agriculture and Rural Development (Nabard) can fully refinance bank loans given out for construction of warehouses at a low 8% interest rate.

Balaji Telefilms Ltd has informed BSE that the Company has entered into binding business transfer agreements on December 29, 2011 to sell its Media Education business and its Mobile content production business for a consolidated consideration of Rs. 8.37 crores

Three Chinese companies are part of consortiums that have bagged Rs 1,800-crore worth of five contracts awarded by state-owned Hindustan Copper to raise its production four-fold to 12 million tonnes over the next five years.

American depository share holders of Mahindra Satyam may face 42% withholding tax in India reports the Hindu Business Line.

Rural Electrification Corporation has cut its foreign currency convertible bond issue size to USD 500 million from USD 1 billion, reports the Business Standard.

IL&FS likely to invest Rs 200 crore in Indiabulls Infra Estate for an 8% stake, reports the Hindu Business Line

Finance Ministry sources says that there is a possibility of NPA norms for textile companies being eased. However, there is no question of debt restructuring for the beleaguered sector. The final eased NPA norms for textile companies are expected by mid-January.

Air India’s board yesterday gave the go ahead to issue preference shares worth Rs 7500 crore to its lenders.

Citigroup Global Markets Mauritius Pvt Ltd has sold 25.55 lakh shares of the Fortis Healthcare hospital chain in the stock market for Rs 22 crore.

The US health regulator has granted approval to Lupin to market generic Fenofibrate tablets, a cholesterol lowering drug, in the American market.

The government is considering capital support to the IDBI bank to boost its capital.

GTL Infrastructure Rejigs Top Management
F&O Ban: Ruchi Soya

Stocks in action for the day: GSPL, Reliance Power, M&M, Adani Ent.

2011-12-29T09:03:00.001+05:30

Market Outlook: Indian markets are expected to open in a negative terrain tracking unconstructive sentiments seen on global counters. Investors will closely watch weekly inflation data as well as F&O expiry due today.

Global Markets: US shares closed negatively backed by renewed concerns over the situation in Europe weighed on global markets.

Global events to watch:

• U.S November pending home sales data.
• Chicago PMI data for December.
• U.S weekly jobless claims numbers.

Global indices Update @ 8:

Dow Jones : 12151 (-139.9)
NASDAQ : 2589 (-35.22)
Nikkei 225 : 8357 (-66.39)
Hang Seng : 18334 (-184.0)
SGX CNX Nifty : 4681 (-23.00)
Gold (USD/t oz.) : 1556
Nymex Crude (F) : 99.58
INR / 1 USD : 53.21

TECHOUTLOOK : Support for Nifty is at 4675 resistance at 4745.

Call for the day:

Sell TataSteel SL 350 Target 335.

Stocks in action for the day: GSPL, Reliance Power, M&M, Adani Ent.

GSPL to tie up funds for Mehsana-Bhatinda line in January: Gujarat State Petronet Ltd (GSPL) a Gujarat Government-owned GSPC Group company — plans to achieve financial closure for the 1,670-km Mehsana (Gujarat)-Bhatinda (Punjab) gas grid in January.

Reliance Power begins generation at 300-MW Rosa unit: Reliance Power Ltd has commenced generation at the first of the two 300 MW units that make up the second phase of the company's Rosa Project in Uttar Pradesh.

India and Japan have agreed for a dollar swap agreement of USD 15 billion to help the troubled Indian rupee, Asia's worst performing currency this year. The move will help India stabilise its currency. India will have access to funds from Bank of Japan, which it can return at a later date.

Sebi Bans 3 Bankers, 7 Cos for IPO Violations: Sebi has sought to punish three merchant banks, including Punjab National Bank’s merchant banking arm, and seven recently-listed firms and their promoters, accusing them of misusing IPO proceeds, performing shoddy due-diligence process, and aiding promoters to prop up prices on listing day. The seven firms are: Bharatiya Global Infomedia, Tijaria Polypipes, Taksheel Solutions, RDB Rasayans, Onelife Capital Advisors, Brooks Laboratories and PG Electroplast. Almondz Global Securities and Atherstone Capital, besides PNB Investment Services, have been told not to take up new assignments.

Subex, a provider of business support systems for communications service providers, plans to raise $135 million through QIP, FCCB, GDR and ADR for repaying its debts.

Reliance Industries is in ‘advanced talks’ with American defence giant Raytheon to create a homeland security joint venture.

The government may reverse the decision to sell its stake in sick PSU Scooters India due to lack of buyers. The heavy industry department will soon send a proposal to reverse the decision to the Prime Minister Office.

The coal ministry will hold a meeting with coal block holders next month to take stock of the progress in development of mines allocated for captive use.

Auto major Mahindra & Mahindra said it will increase the prices of its recently launched international car XUV500 by at least Rs 30,000 from January 1 on the back of higher raw material costs and the rupee fall.

Adani Enterprises Ltd (AEL), the country's largest coal importer-turned-domestic private mine developer-cum-operator (MDO), has, apparently, shelved plans to buy cargo ships for coastal shipping of coal and opted to hire a logistics service provider (LSP) instead.

The Reserve Bank of India (RBI) said on Wednesday it has decided to extend period of short sale in government securities from existing five days to a maximum of three months effective Feb 1.

Real estate developers DLF and Hubtown have sold an IT SEZ that they coown in Pune to private equity fund Blackstone for Rs.810 crore. DLF has a 67% stake in the joint venture company that owns the 1.8-millionsq ft SEZ in Pune’s Hinjewadi area.

India's GMR Infrastructure said that Petronas Power, a unit of Malaysian state-run oil company Petronas, will pay S$50 million for a 30% stake in unit GMR Energy (Singapore) Pte Ltd

Glenmark Pharmaceuticals has received approval from Drug Controller General of India (DCGI) to conduct phase III trials for Crofelemer, aimed at treatment of acute diarrhoea in adults.

The GTL board will meet today to consider corporate debt restructuring.

The Government will shortly write to Sterlite, a Vedanta Group company, asking it to submit a formal plan to buy the remaining Government stake in Balco.

US-based Walt Disney will launch an offer for delisting shares of media and entertainment firm UTV Software Communications from Indian bourses on January 16 next year.

Promoters of Lanco Infratech Ltd have informed the exchanges that they have pledged additional shares by creation of encumbrance in favour of ICICI Bank and Infrastructure Development Finance Company Ltd (IDFC).

Fertiliser stocks will be in focus after the government is a step away from finalizing a new policy for attracting investments in the urea sector.

Maharashtra cabinet cleared a textile policy that aims to bring in investment of around Rs 40,000 crore and create employment for 11 lakh people. It provides for 12.5% interest subsidy and 10% capital subsidy for new co-operative and private sector textile units in cotton growing belts of Vidarbha, Marathwada and North Maharashtra.

Cash-starved microfinance institutions (MFIs) are queueing to raise foreign currency loans in the new year. SKS, Share, Bandana and Ujjivan plan to raise up to $10 million each in the coming months.

IDBI Bank Raises NRE Deposit Rates up to 9.5%
3i Infotech’s board has passed a resolution to seek corporate debt restructuring.
Tata Motors has cut the price of Aria under its 'anniversary offer.'
Crisil downgrades DLF's debt programmes

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

2011-12-23T09:33:00.000+05:30

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)

Indian markets are expected to open higher

2011-12-21T10:35:00.001+05:30

Market Outlook: Indian markets are expected to open higher backed by positive Asian market which rose on strong economic data emerging from US and Germany However, concerns over Eurozone economic debt crisis still weighs on investors minds.

Global Markets: U.S markets closed higher backed by strong jump in the nation’s housing starts, improving German business data and a better Spanish bond auction. On economic data front, housing starts surged to a one and a half year high in November and permits for future construction were the highest since March 2010 as demand for rental apartments rose. Housing starts jumped 9.3% to a seasonally adjusted annual rate of 685,000 units.

Global events to watch:

· U.S. Home sales

· U.S. weekly mortgage applications data.

Global indices Update @ 8:

Dow Jones : 12103` (+337.3)

NASDAQ : 2603 (+80.59)

Nikkei 225 : 8453 (+117.3)

Hang Seng : 18403 (+323.7)

SGX CNX Nifty : 4650 (+83.00)

Gold (USD/t oz.) : 1627

Nymex Crude (F) : 98.01

INR / 1 USD : 53.02

TECHOUTLOOK : Support for Nifty is at 4505 resistance at 4676.

Call for the day:

Buy Ranbaxy SL 384 Target 400-405.

Sell Oracle SL 1930 Target 1830.

Stocks in action for the day: Shriram Trans, Infosys, Oracle, Ranbaxy.

Infosys’ BPO division has signed a definitive agreement to acquire Australia-based Portland Group for A$37 million (Rs195.44 crore)

Oracle to in focus: Parent company down 8% post disappoint results

NDTV block deal (14.1% equity changed hands yesterday) -Oswal Green Tech acquires 14.1% stake in NDTV (Formerly known as Oswal Chemicals) -Oswal buys stake from Merrill Lynch Cap & Nomura Mauritius

India’s largest consumer goods maker Hindustan Unilever has appointed Om Prakash Bhatt, the former chairman of State Bank of India, as an independent director on its board.

The Union Government has ruled out the imposition of a customs duty on imported solar modules.

Infrastructure Development Finance Company Ltd has raised a total of Rs 538.08 crore from approximately 2.7 lakh investors through the first tranche of its “Long Term Infrastructure Bonds”

Ashok Leyland and its associate companies will increase their stake in the British bus maker Optare plc to 75.1 per cent

Lenders approve GTL rejig, ICICI to transfer stake: After a long delay, CDR cell has approved the restructuring package for GTL and its group companies. The promoter has agreed to bring personal guarantees worth Rs 2,500 crore which will be kept as a security for the lenders to restructure the total debt of Rs 16,000 crore.

Power utilities in AP mull extra levy for industrial consumers: Power utilities in Andhra Pradesh have proposed an expensive power purchase charge (EPPC) scheme for industrial consumers. This is under consideration of the State Energy Regulatory Commission.

Media reports suggested that Ranbaxy Ltd has reached a settlement with the U.S. Food and Drug Administration while setting aside $500 million to address its potential liability from a separate U.S. Justice Department investigation.

Cabinet clears Lok Pal, PM in, CBI out: Taking the Opposition and civil society head on, the UPA government cleared a Lok Pal Bill that would bring the Prime Minister under the corruption ombudsman's purview. But, it segregated certain areas, including foreign affairs, national security, atomic energy, space, etc, which the Lok Pal will not be able to investigate. The Central Bureau of Investigation (CBI) will remain under the government’s overall control.

Delhi court is likely to decide today whether or not to take cognizance of CBI’s third charge sheet arising out of investigation in the 2G scam case against Essar Group and Loop Telecom promoters and three companies.

Mobile customer additions rose for the third consecutive month in November as mobile operators Airtel, Vodafone, Idea and a few others added a total of 6.68 million customers to the country’s GSM user base as per the Cellular Operator’s Association of India (COAI).

Attributing the current cash crunch in the system to advance tax payouts by companies, the Reserve Bank said that it will announce another tranche of government bond buyback scheme to ease liquidity constraints.

Srei Infrastructure Finance has decided to raise up to Rs.500 crore through a public issue of infrastructure bonds.

The Reserve Bank of India has cut banks’ net open position limits in currency trading by as much as 75% for some, and at least by half for most of the top traders, in its attempt to end speculation on the rupee.

The government said it will spend Rs 800 crore for the Sixth Economic Census to be conducted from April to November 2012 to update the data on industrial activity across the country for better microlevel planning and policy formulation.

Tata Motors that announced plans to up output of light commercial trucks from its Pantnagar plant by up to 90,000 vehicles per year from early 2012.

Billionaire investor Rakesh Jhunjhunwala is likely to sell his Aptech stake via auction.

Mauritius based PE fund seeks nod to buy stake in Indian Energy Exchange promoted by Financial Technologies India (ET)

F&O Ban: Aban Offshore, ABG Shipyard, Gitanjali Gems, Punj Lloyd, Ruchi Soya

Myiris.com: Mehta Equities take on Orchid Chem, TCS, Opto Circuits Source: IRIS (19-DEC-11)

2011-12-19T15:28:00.001+05:30

Myiris.com: Mehta Equities take on Orchid Chem, TCS, Opto Circuits Source: IRIS (19-DEC-11)

In an interview with Myiris.com, Prashanth Tapse, AVP Research, Mehta Equities gave views on three stocks which were buzzing on Monday, Dec. 19. The same is as follows:

http://www.myiris.com/newsCentre/storyShow.php?fileR=20111219143337043&secID=fromnewsroom&secTitle=From%20the%20News%20Room&dir=2011/12/19

Orchid Chemicals: Orchid Chemicals has been on a downtrend charts since July 2011 on the back of its concerns on FCCB redemption which is due on Feb 2012. To overcome with the above transaction company has now raised USD 100 million debt through external commercial borrowing (ECB) which going forward it will be used to repay the bonds for USD 117 million in February 2012. The differential gap between the total FCCB amount and the ECB raised will be easily met through internal accruals. These ECB terms are better than the interest that is there on FCCB bonds which we are going to repay. The bonds that are currently outstanding are having 7.25% to YTM on a five-year bond, and the rates and tenure both are better than 7.25% and the tenure is longer than five years.

Overall the fundamental scenario stands out to be neutral, while technically charts are reflecting a negative trend with a strong support seen at Rs 106/100 in the near term. Hence we recommend a ``Sell`` call.

Shares of the company declined Rs 13.85, or 10.24%, to trade at Rs 121.40. The total volume of shares traded was 3,607,101 at the BSE (2.27 p.m).

Tata Consultancy Services: Tata Consultancy Services (TCS), India`s biggest exporter of software services by sales reported its plans to make an initial six billion rupees (USD 113 million) investment to set up a new software development center in Nagpur, Maharashtra state. The center will be built in two phases and will house 16,000 employees. We believe that the above plans are to tap the potential demand for outsourcing services going forward in Asian markets. India being the leading outsourcing hub hence TCS takes prior step. Currently TCS has outsourcing services exposure to places like U.S. and Europe- grapple with slow growth, high unemployment and a debt crisis.

Technically TCS has given negative breakout near 1,175 level, and trend continues towards 1105. If breaks one can see 1,045 on short term basis.

Shares of the company declined Rs 6.85, or 0.6%, to trade at Rs 1,136.65. The total volume of shares traded was 99,493 at the BSE (2.28 p.m).

Opto Circuits: Opto Circuits a leading global medtech conglomerate is more active on the counter after long halt. As per over understanding Debtor days are moving on the higher side which is currently 128 days which is above industry standards with Nihon Koden (108 days), Medtronics (89 days) and Boston Scientific (66 days). On overall basis it has export more than 90% of the total sales Rs 15.85 billion (2011). With exposure seen in countries like USA, Europe, South-East Asia, Latin America and the Middle East we see some pressure is building on its future profitability.

Technically 165-170 would be the level for long term accumulation.

Shares of the company declined Rs 8, or 4.1%, to trade at Rs 187.05. The total volume of shares traded was 47,609 at the BSE (2.28 p.m).

Disclaimer: IRIS has taken due care and caution in compilation of data for its website. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.

Thanks & Regards,

Stocks in action for the day: Piramal Life Sciences, Sudarshan Chemical, Ashiana Housing

2011-12-19T10:51:00.000+05:30

Market Outlook: Indian markets are expected to continue the jittering sentiments on Indian economic. Markets are tracking weak Asian markets after Fitch last week warned on a rating downgrade of France and six other European countries.

Global Markets: US stocks finished mixed to lower on Friday after Fitch Ratings said it was sticking with its AAA rating for France but revising its outlook down while warning that downgrades were possible for six other Eurozone countries.

Global events to watch:

 Housing Market Index

Global indices Update @ 8:

Dow Jones : 11866` (-02.42)
NASDAQ : 2555 (+14.32)
Nikkei 225 : 8331 (-70.72)
Hang Seng : 17893 (-369.9)
SGX CNX Nifty : 4579 (-47.00)
Gold (USD/t oz.) : 1590
Nymex Crude (F) : 95.40
INR / 1 USD : 52.81

TECHOUTLOOK : Support for Nifty is at 4550 resistance at 4620.

Call for the day:

Sell Tata Steel SL 375 Target 334.
Sell L&T SL 1100 Target 1030/1020.

Stocks in action for the day: Piramal Life Sciences, Sudarshan Chemical, Ashiana Housing

Piramal Life Sciences has fixed December 26, 2011 as the record date for determining the entitlement of the shareholders to receive the
shares of Piramal Healthcare in the ratio 1:4.

Sudarshan Chemical Industries has entered into an asset purchase agreement with Germany-based Eckart to buy its cosmetic portfolio based on natural mica.

Ashiana Housing has resumed construction work at phase 1 (2.25 lakh square fee) of Ashiana Utsav project at Lavasa. The entire project spans around 6.87 lakh square feet.

All eye on RBI’s mid-quarter review of monetary policy due today...

2011-12-16T09:01:00.001+05:30

Market Outlook: Indian markets are expected to open trade with a positive note tracing global cues while investors all eye on RBI’s mid-quarter review of monetary policy due today. Most say that it is likely to be a pause now and a CRR cut later in March meet. The RBI meanwhile came down on forex speculation with a heavy hand. It has restricted forex open positions of banks, and also restricted companies and FIIs from punting on the rupee even as the currency broke past 54 per dollar.

December Advance tax number indicates slowdown effects as collections from the top 100 companies have gone up nearly 10% despite large companies - Reliance Industries, State Bank of India, Tata Motors and Mahindra & Mahindra - witnessing a fall in third installment.

Advance tax numbers

Infosys pays Rs 754 crore vs Rs 620 crore

Sesa Goa pays Rs 140 crore

YES Bank pays Rs 160 crore Vs Rs 120 crore

ONGC pays Rs 2,924 crore Vs Rs 2,742 crore

Global Markets The US markets eked out their first positive day of the week as traders shifted their focus from Europe's problems and onto some positive US economic news. Major averages finished the day modestly positive after surging by as much as 1% earlier while Asian markets trading firm; Nikkei, Hang Seng up.

Global events to watch: In key data to watch out in the US today, consumer price index is expected to rise to 0.1% in November after seeing a 0.1% contraction in October.

Global indices Update @ 8:

Dow Jones : 11868` (+45.33)

NASDAQ : 2541 (+01.70)

Nikkei 225 : 8401 (+24.56)

Hang Seng : 18080 (+53.69)

SGX CNX Nifty : 4777 (+12.00)

Gold (USD/t oz.) : 1584

Nymex Crude (F) : 93.90

INR / 1 USD : 54.23

TECHOUTLOOK : Support for Nifty is at 4690 resistance at 4780.

Call for the day:

Buy Ambuja cement SL 149 Target 162.

Stocks in action for the day: Rel Capital, Adani Enter, Ambuja Cements.

RBI finally wakes up to check Indian Rupee?-RBI reduces net open position limits for dealers in forex market.

Reliance Industries may have invoked arbitration against the Indian government, but it has at the same time also sought the oil secretary's intervention to resolve pending issues which the company says is coming in the way of increasing gas production at KG-D6..

Major moves in the media business… Reliance Capital is said to be in talks with Bloomberg UTV to buy a majority stake in the company. Meanwhile, Thomson Reuters may buy 20-25% stake in Newswire 18 for around Rs 250 crore.

HMT submits Rs 981 crore revival plan to govt -HMT seeks Rs 320 crore for capex -HMT seeks Rs 135 crore for clearance of old liabilities -HMT seeks Rs 22 crore for 2 years as bridge loan -HMT seeks Rs 365 crore for paying off old Rs 135 crore for waiver on interest rate -HMT has also asked for 1997 or 2007 pay revision -HMT seeks retirement age to be at 60 instead of 58 -HMT to hike tractor production from 10,000 units to 30,000 in 5 years

JSW Steel may slash FY12 capex by half: JSW Steel Ltd proposes to reduce its capital expenditure by over half for the current fiscal and go slow with its capacity expansion.

Drop in RIL's D6 gas output due to fewer wells drilled: The sharp drop in gas output from the Krishna-Godavari basin D6 block gas fields operated by Reliance Industries Ltd (RIL) is due to the operator having drilled lesser number of wells than what was planned.

Falling Rupee Forces Consumer Durable Cos to Raise Prices Again : consumers will pay more for mobiles, TVs and home appliances as the rising value of the US dollar has made imports costlier and forced consumer durable makers to raise prices for the second time in three months.

Adani Enterprises, the flagship of the Adani Group, will invest over $4 billion to develop and mine coal blocks awarded to its various joint ventures with state electricity boards.

The government expects a shortfall of over Rs 2,00,000 crore for power projects being constructed in the coming five years.

The Reserve Bank of India has unleashed a series of measures that will end speculation on the rupee, in a move to arrest its slide without using foreign exchange reserves.

Canadian firm Brookfield Asset Management and Ashok Piramal Group company Peninsula Land have entered into a joint venture to float a Rs 500 crore realty fund.

Rashtriya Ispat Nigam Ltd (RINL), Visakhapatnam Steel Plant, and Power Grid Corporation of India Ltd signed a memorandum of understanding in New Delhi to set up a joint venture for manufacturing transmission-line towers and tower parts.

Indiabulls Real Estate on Thursday approved buyback of its shares through open market at a price not exceeding Rs 75 a share. The realty developer will spend up to Rs 450 crore on the proposed buyback at the prevailing market price, it informed BSE.

Indian Oil Corp has cut prices of aviation turbine fuel by Rs 920 per kilolitre effective December 16. Domestic prices of ATF in Mumbai has been slashed to Rs 64,730.23/ kl from Rs 65,650.27.

Electrotherm (India) Ltd, the Ahmedabad-based induction melting furnace maker, on Thursday announced selling its ductile iron pipe business to the French major Saint-Gobain.

Tata Motors Global Sales Grow 35% in November

Ashwin Dani, vice-chairman of Asian Paints, has joined the board of cement major ACC as an independent director.

IOC cuts domestic Jet fuel prices by Rs 920/kl (Reports)

Reliance Mediaworks plans rights issue of Rs 500 crore in March 2012 – FE

Promoters exit Ambuja Cements by selling 0.79% stake to Swiss major Holcim, pockets Rs 387 crore (TOI)

F&O Ban: Aban Offshore, ABG Shipyard, Gitanjali Gems, Punj Lloyd, Ruchi Soya

Stocks in action for the day: JSW Steel, Ansal Prop, Dunlop, DLF, RIL

2011-12-15T11:22:00.001+05:30

Market Outlook: Indian markets are expected to open negative weak Asian markets while investors will keep a close eye on weekly inflation data due later today. The monthly inflation data released yesterday showed that the rate of price hike has declined marginally to 9.11% in November from 9.73 per cent in the previous month, however still above market expectations.

Global Markets: U.S markets closed negatively backed by European turmoil. Europe's debt crisis is still worsening prompted investors to dump riskier assets and huddle in the safety of the dollar and Treasuries. Further a downgrade by ratings agency Fitch of five major European financial groups, including France's Credit Agricole to A-plus from AA-negative, added to the already euro-negative sentiments. Asian markets trading lower; Hang Seng, Straits Times slip.

Global events to watch:

• Eurozone preliminary manufacturing PMI data.
• U.S. jobless claims
• U.S. industrial production for November.

Global indices Update @ 8:

Dow Jones : 11823` (-131.4)
NASDAQ : 2539 (-39.96)
Nikkei 225 : 8411 (-107.6)
Hang Seng : 17965 (-389.1)
SGX CNX Nifty : 4713 (-51.00)
Gold (USD/t oz.) : 1576
Nymex Crude (F) : 94.88
INR / 1 USD : 53.57

TECHOUTLOOK : Support for Nifty is at 4710 resistance at 4850.

Call for the day:

Sell JSWSteel SL 555 Target 525.

Stocks in action for the day: JSW Steel, Ansal Prop, Dunlop, DLF, RIL

Reliance Industries Ltd after the company has indicated it can surrender a part of the D6 block, in line with the national auditor's report, while government officials are trying to speed up approvals to develop other fields in the block.

Rajesh Exports Ltd after the Bangalore-based leading jewellery exporter and retailer said it plans to invest Rs 6,500 crore to expand its retail chain Shubh Jewelers by opening 550 outlets in the four southern states

Aviation Secretary says -Govt working on new civil aviation policy -New policy to factor in needs of sector over next decade -Have 5 months to complete new civil aviation policy -New policy to encourage private sector investments -Policy to encourage setting up air cargo promotion board

SBI Chairman says -More worried about Kingfisher than Air India -More work needs to be done on Kingfisher Airlines accounts -SBI alone cannot take a call on KFA debt restructuring-KFA debt restructuring needs to be discussed by a bank comm. SBI Head says -Cash infusion worth Rs 3,000-4,000 crore around the corner -Form of govt fund infusion not yet finalized -RBI not to cut rates immediately as inflation high

JSW Steel set to lose Rs 529 cr paid as initial deposit for preferential warrants, due for conversion today – ET (CMP: 529, conversion price was Rs 1210 (Trading at 55% discount)
The promoters are set to loose the up front initial payment of Rs 529 crore, which was paid on June 16, 2010 -This as they will not be converting their warrants owing to price erosion and will not pay the remaining Rs 1,588 crore

UBS official attempted to help Anil Ambani invest in securities against FII norms: Details of an attempt to create an offshore vehicle through which Mr Anil Ambani could invest in securities in India, in breach of foreign institutional investor regulations, have emerged during a tribunal hearing in London, which began this week.

Advance tax numbers - tax officials say -Hindalco pays Rs 200 crore versus Rs 200 crore (YoY) -GSK pays Rs 80 crore versus Rs 90 crore (YoY. M&M Financial pays Rs 103 crore versus Rs 89 crore (YoY).

Loans disbursement by banks picks up: In the latest fortnight ended December 2, banks disbursed loans aggregating Rs 46,377 crore, against Rs 8,570 crore in the preceding fortnight.

JSW Steel to Lose 529-cr Warrant Deposit: JSW Steel, India’s largest private steelmaker measured by domestic capacity, is set to lose over Rs 500 crore paid as an initial deposit for preferential warrants allotted in June last year when they become due for conversion on Thursday at a price which is more than double the current rate.

RInfra Plans to Auction Power Transmission Co: Reliance Infrastructure (RInfra) will auction its power transmission company — Reliance Power Transmission — to raise money and limit its risks in a volatile sector.

Mundra Port and Special Economic Zone Ltd (MPSEZ) has put in a revised price bid to Chennai Port Trust to build a Rs.3,686 crore container-handling facility.

Government has defreezed the bank accounts of debt-ridden Kingfisher Airlines and Air India after the two air carriers made part-payment of their service tax dues.

The Lok Sabha passed the Cable Television Networks (Regulation) Amendment Bill, 2011, making it mandatory for all cable operators in the country to convert from analog to digital transmission in a phased manner by December 2014.

UB group chairman Vijay Mallya has asked the government to expedite decision on a request by Kingfisher Airlines to import jet fuel directly to save local taxes.

Country’s largest lender SBI expressed hope it would get capital infusion of Rs 3,000-4,000 crore from the government this fiscal.

The Union Government proposes to set up a Rs 10,000-crore Electronic Development Fund (EDF) next year, to promote electronic hardware manufacturing in the country.

State-run Indian Overseas Bank may look at borrowing $500 million in the overseas market next year to meet dollar demand from Indian companies.

Tirumala Dairy, the second largest private dairy player in South India, is sewing up plans to set up the country's largest integrated dairy with an investment of over Rs 5,000 crore in the next three to four years.

The Telecom Regulatory Authority of India (TRAI) has initiated legal action against cellular operators for not implementing Mobile Number Portability (MNP) properly. While proccedings have begun against Bharti Airtel, show-cause notices have been issued to others, including Vodafone and Idea Cellular.

Micro-finance bodies unite under common code of conduct
NTPC-BHEL joint venture to begin operations next fiscal
SKF opens Global Technical Centre in Bangalore
L&T commissions 384-MW unit for GMR
DLF is all set to ink a Rs 900 cr Pune SEZ deal with Blackstone
F&O ban: ABG Shipyard, Gitanjali Gems, Ruchi Soya
PM says FDI in retail after March
Finance Ministry now against urea decontrol (FE)
Saint Gobain to acquire Electrotherm 's iron pipes business Rs 950 crore
DHFL board meet today to consider & approve raising of funds via ADR/GDR/FCCB
Indiabulls Real board meet today to consider the proposal of buy back
Vijay Mallya seeks quick decision on Kingfisher plea to import ATF directly to save local taxes (ET)
Worli’s Dunlop house up for sale for Rs 400 crore (TOI)
Ansal Properties free upto 20% of pledged stock to 77.63% - DNA (Alert: promoter had earlier pledged 97.74% of its stake)

Mehta Equities` take on NTPC, Sudarshan Chem and Redington… Source: IRIS (14-DEC-11)

http://www.myiris.com/newsCentre/storyShow.php?fileR=20111214162958043&secID=nchometopst&dir=2011/12/14&secTitle=Top%20Stories.

In an interview with Myiris.com, Prashanth Tapse, AVP Research, Mehta Equities gave views on three stocks which were buzzing on Wednesday, Dec. 14, 2011. The same are as follows:

NTPC:
NTPC, the third largest power generator in Asia with 35,354 mw installed capacity has seen some interest on investors terrain after the news stating that it has signed an agreement with Electricity Generation Company of Bangladesh Ltd for providing operation and maintenance services for 240-mw gas based Siddhirganj power plant near Dhaka. This contract, awarded against international competition, is valued at about Rs 430 million. This is the largest single international order received by NTPC. NTPC has forayed in to becoming an international operation and maintenance operator.

Technically the stock is consolidating at the current levels. There is no clear sign for either side direction for short term trade, if one looks on a fundamental basis the stock is undervalued, Hence investor with long term view.

Shares of the company declined Rs 3.6, or 2.16%, to settle at Rs 163.10. The total volume of shares traded was 141,748 at the BSE.

Sudarshan Chemical:
Sudarshan a leading player in colours & the largest pigment supplier was in action mainly on the back of news stating that the Company proposes to sign an agreement with Eckart. Germany for acquiring of assets relating to the natural mica based pearlescent pigment products for cosmetics and personal care sold under the brand Prestige and Fionac C owned by Eckart, Germany and or its Affiliates. The agreement is proposed to be signed on Dec. 15, 2011 in this regard.

On overall basis we stand neutral on the standalone performance looking at the industrial concerns. Since October 2011 the stock is continuously underperforming mirroring to the overall industrial outlook, hence we advice investors to avoid the counter and revisit as and when trend changes.

Shares of the company gained Rs 14.9, or 2.84%, to settle at Rs 540. The total volume of shares traded was 2 at the BSE.

Redington:
Redington (India) a leading player in the business of end-to-end supply chain management of IT and Non-IT products. Its partnership with Blackberry has been successful and with 3G services being rolled out, sales of these smart phones will drive the future growth of the company. Investors can consider buying Redington India`s stock as the company is expected to benefit from its high-growth-high-margin non-IT for smart phone and consumer durable businesses.

Technically looking at the weekly charts the stock would consolidate at the current level before fresh momentum on either side. The stock has strong support at 70.

Shares of the company gained Rs 0.25, or 0.33%, to settle at Rs 75.80. The total volume of shares traded was 14,464 at the BSE.

Now, a green cess on petrol, cars?

2011-12-14T09:18:00.001+05:30

Buying and running cars and two-wheelers could soon become a costly affair with a Planning Commission working group suggesting a green surcharge of Rs 2 on every litre of petrol, a green cess of 3% of the annual insured value of all private vehicles and a steep urban transport tax to be collected at the time of purchase of private vehicles.

The panel, headed by Delhi Metro chief E Sreedharan, has suggested urban transport tax on purchase of new cars and two-wheelers at 7.5% of the total cost of petrol vehicles and 20% in case of personal diesel cars.

The recommendations, which are guided by the "polluter pays principle", aim to discourage use of private vehicles by imposing higher taxes and also help generate resources to fund public transport projects.

It is estimated that the new surcharge and taxes will help the government generate Rs 235,741 crore in the 12th five-year plan (2012-17) and Rs 22,40,804 crore over 20 years.

It was decided not to impose the green surcharge on diesel considering the fuel's multiple uses and the problems in dual pricing. However, this was offset with the higher urban transport tax on new diesel cars at 20% compared to 7.5% for petrol-driven variants.

The annual green cess of 3% is proposed to be collected through insurance companies. These firms, which collect around 4% of the insured value of the vehicle as annual premium, will now collect 7% and pass on the additional 3% to the government.

With huge investment needed in the urban transport sector which the Centre cannot meet from traditional budgetary sources, innovative financing mechanisms were being explored, an official said. Even public private partnership projects could only partially meet the funding needs, he added.

The resources mobilised from the new surcharge and taxes will be pooled in a dedicated national urban transport fund to meet the growing needs of urban transport.

The working group also suggested dedicated funds at the state and city level through resources like land monetisation, betterment levy, land value tax and hike in property tax. It also recommended imposing congestion tax, a cess on sales tax and hike in parking charges to generate resources for the fund.

Times View: A 'green surcharge' on petrol may seem like a good way of incentivising eco-friendly behaviour, but it's actually not as good an idea as it sounds. For starters, the price of petrol in India already has a massive tax component and adding further to it amounts to over-burdening the consumer. Further, if the idea is to nudge people to use public transport and move them away from private vehicles, it is unlikely to work as things stand. The simple reason for assuming that is that most Indian cities have no public transport infrastructure worth the name. As the metro in Delhi has shown, creating world-class public transport will do more to move people away from private vehicles than trying to force them in that direction without any viable options

TECHOUTLOOK : Support for Nifty is at 4710 resistance at 4850.

2011-12-13T09:37:00.001+05:30

Market Outlook: Indian markets are expected to open negative tracking negative Asian markets as investors turned bearish post the summit meeting which failed to restore investor confidence. We expect the weakness in the markets to prevail and for the Nifty to breakdown below 4700 over the next few sessions.

Global Markets: US markets closed down 1.3-1.5% and major European indices fell between 2-3.5%. The worrying situation is in the bond market in Europe, as bond yields touch all time highs. The Italian 10 year yield is inching close to 7%, and Spanish bond yields are above 6% currently. On the back of the weak cues from the western world, Asian equity markets are trading down. The brief rally post the European Union summit is over, signalling the end of the honeymoon period. Investors are now bracing for a likely EU downgrade as ratings agencies are not satisfied with the outcome of the summit.

Global events to watch:

NFIB small business index for November.
U.S Retail sales for November

Global indices Update @ 8:

Dow Jones : 12021 (-162.8)

NASDAQ : 2612 (-34.59)

Nikkei 225 : 8523 (-130.5)

Hang Seng : 18344 (-231.3)

SGX CNX Nifty : 4883 (-65.50)

Gold (USD/t oz.) : 1663

Nymex Crude (F) : 97.78

INR / 1 USD : 52.59

TECHOUTLOOK : Support for Nifty is at 4710 resistance at 4850.

Call for the day:

Sell Coal India SL 314 Target 280-285.

Buy HCL Tech SL 405 Target 435.

Sell Tata Motor SL 184 Target 165-168.

Stocks in action for the day: RIL , JSW Steel ,Ultra tech, ACC, Unitech,

Mobile operators, including Videocon, Etisalat, Aircel and Idea Cellular, have approached the Telecom Ministry seeking a reduction in their financial bank guarantees in accordance with the licence agreement.

Vijay Mallya has agreed to pay service tax liability to the tune of Rs 15-20 crore to the government by Tuesday morning. The government has agreed to unfreeze Kingfisher Airlines accounts subject to the payment of the liability.

Cement output for the month of November came in at 13.98 million tonne against 11.91MT the previous year.

South Indian Bank is planning to open exclusive corporate finance branches in metro cities to tap potential in corporate sector.

Aditya Birla Group is in negotiations with six thermal coal mine companies in Australia in its search for raw material assets to feed its $5-billion growth programme in aluminum

RBI issues guidelines for banks' investments in non-finance cos: Equity investment by a bank in a non-financial service company would be subject to a limit of 10 per cent of the company's paid-up capital or 10 per cent of the bank's paid-up capital and reserves, whichever is less, according to the Reserve Bank of India.

Tata Teleservices and the Srei group want to reduce their stake in tower company Viom and have held talks with Japan’s Sumitomo and private equity firm TPG Partners.

Unitech has put on hold its plans to demerge the infrastructure vertical indefinitely on account of sluggishness in economy.

Sistema Shyam TeleServices (SSTL), which operates under the MTS brand, has reported a net loss of . 1,009.7 crore for the third quarter ended September 30 on account of increased foreign exchange charges against a net loss of . 494 crore in the year-ago period.

Banks to ‘Focus’ on Essar Loan Accounts: More than Rs. 30,000 crore loan accounts of various Essar Group companies will become ‘focus accounts’ for banks as the Central Bureau of Investigation filed charge sheets against executives including members of the promoter Ruia family for violating telecom licensing rules.

Lok Sabha passed the Life Insurance Corporation (Amendment) Bill 2009: The bill seeks to raise the capital base of the state-owned insurer to Rs 100 crore from 5 crore, bringing it on a par with private insurers, both in life and non-life segments, which are required to have a minimum capital base of 100 crore as per IRDA norms. Cabinet to Discuss Anti-Money Laundering Tweaks, Food Bill and Power Fund Today

Essar group of companies will be in focus following reports of its alleged involvement in the 2G spectrum allocation scam. However, the group denied any involvement.

SBI, NTPC, LIC the PSU's gained the most from tax refunds. SBI, NTPC, Life Insurance Corporation received substantial income tax refunds, which are expected to shore up their bottom lines.

The Singapore Mercantile Exchange (SMX) will launch five contracts for Indian-origin commodity products next year.

BEML the Government-owned company is to hive off its rail business into a separate company to tap the business in rail rolling stock of nearly Rs 1 trillion over the next ten years.

Napo Pharmaceuticals, Inc has announced it has terminated its Collaboration Agreement with Glenmark Pharmaceuticals Ltd.

Tata Power, along with its Norwegian partner SN Power, is scouting for hydroelectric projects in India and Nepal.

Kamat Hotels is set to consider the course of action on outstanding foreign currency convertible bonds. (FCCBs)

GMR Infra has added 384 megawatts to its power grid in Andhra Pradesh

The board of Gati has opened the issue of FCCBs and plans to raise up to USD 22 million

Maharashtra state government is planning to raise duty on captive power plants. If this move comes through, it could affect power companies like RIL , JSW Steel ,Ultra tech and ACC .

Cement output for the month of November came in at 13.98 million tonne against 11.91MT the previous year.

Banks are set to recast loans of textile companies.

Coal India trade unions seek 50% pay hike.

IL&FS bags China expressway project

TCS bags 5-year deal from Call Genie

GMR Bids for Airport Projects in Brazil

Bharti, Tata Comm Told to Pay Fines in 2 Weeks

TECHOUTLOOK : Support for Nifty is at 4830 resistance at 4910.

2011-12-12T09:06:00.000+05:30

Market Outlook: Indian markets are expected to open positive backed by constructive Asian markets. Further investors will keep an eye on the important data to watch out for is the industrial output numbers for October which is expecting a contraction of 1.6% on the back of poor capital expansion. Economic data would be the key driver for market direction.

Global Markets: The US markets closed near their highs, climbing steadily throughout the session, as US consumer confidence report hit a 6-month high and as investors appeared to show relief after the Euro zone's latest plan to solve its debt crisis and the euro leaders agreement to closer fiscal ties. All three indices posted an impressive gain for the second week. Dow closed up 1.5% for the week.

Global events to watch:

Treasury Budget.

Global indices Update @ 8:

Dow Jones : 12184 (+186.5)

NASDAQ : 2646 (+50.47)

Nikkei 225 : 8651 (+114.5)

Hang Seng : 18860 (+274.5)

SGX CNX Nifty : 4908 (+25.50)

Gold (USD/t oz.) : 1713.4

Nymex Crude (F) : 99.34

INR / 1 USD : 52.22

TECHOUTLOOK : Support for Nifty is at 4830 resistance at 4910.

Call for the day:

Sell Sesa Goa SL 178 Target 165.

Buy Coal India SL 310 Target 330/335.

Stocks in action for the day: Kingfisher Airlines, Gail, Sun Pharma.

New FDI norms for pharma: The RBI has notified new FDI norms for pharma sector. The RBI has said that the banks will compensate customers for delays at prevailing rate. It allows issuing equities against capital good imports

CBEC Chairman says KFA has not paid service tax from April-November Will take legal steps against KFA unless it pays service tax

Buyback preparations The government is clearing the decks for the buyback programme and will amend the Articles of Association (AoA)of public sector units for share buybacks. AoA: Articles Of Association Guidelines w.r.t Investment Of Surplus By PSUs To Be Modified GoI Equity To Be Maintained At 51% In All Buybacks EGoM To Approve Share Offers At Buyback Price EGoM To Approve Sale Price In Buyback Or Cross-holdings CCEA Nod Be Dispensed With Ensuring No Breach Of 51% Rule DoD May Sell GoI Stake To LIC, PSBs In Off-market Deals DoD May Sell GoI Stake To State Entities DoD May Sell GoI Stake To SPVs In Off-market Deals Cabinet Note On Disinvestment Has Pre-approval Of FM

Focus on telecom The department of telecom, sources indicate that they, will finalise M&A and exit policy this week. The telecom commission has converged on most M&A and exit policy issues. It will meet on Tuesday to finalise telecom M&A policy

Import duty on equipment? The power ministry has floated draft cabinet note on import duty on equipment. The draft note proposes 14% duty on imported power equipment. Power Min Floats Draft Cabinet Note On Import Duty On Equipment Draft Note Proposes 14% Duty On Imported Power Equipment Draft Note Proposes 5% Import Duty, 5% SAD, 4% CVD SAD Special Additional Duty Heavy Industry Min Not Happy With Proposal Heavy Ind Min Wanted Maira Committee Recommendations Maira Committee Recommended 10% Import Duty, 4% CVD

Focus on Maruti Suzuki: Maruti Suzuki is likely to defer proposed investments in Gujarat as rising interest rates and fuel prices in a cooling economy force prospective buyers to retreat.

Focus on RIL: RIL says that they are looking to buy oil assets in politically stable areas. They want to buy stake in heavy oil producing blocks. They are eyeing further investment in US shale gas.

Kinetic Motor to merge with Kinetic Engineering at a proposed swap ratio of 7.75:1

Shah Alloys board to consider fund raising.

Nestle India: Ex Interim Dividend 27/sh.

Gail signs 20-yr LNG sale, purchase agreement with Cheniere, USA

Power Grid board approves investment worth Rs 692.81 cr

Sun Pharma gets USFDA nod for generic Ultram ER tablets

Tesco puts cash and carry Plans on hold – BS (has franchise with Trent)

F&O Ban: ABG Shipyard, Gitanjali Gems and Ruchi Soya

Stocks in action for the day: Cairn India, GAIL ( India ), Geojit BNP, Dewan Housing, Dish TV.

2011-12-09T08:57:00.001+05:30

Market Outlook: Indian markets are expected to open negative backed by weak Asian markets. Further investors will keep an eye on the crucial EU Summit from which investors are expecting something concrete to come out of which will help to put an end to the region's debt crisis.

Global Markets: The US markets declined to log in sharp losses after Germany rejected some of the EU summit draft measures.

Global events to watch:

Summit of European Union leaders in Brussels.
U.S. trade deficit figures for October
U.S. consumer sentiment for December

Global indices Update @ 8:

Dow Jones : 11997 (-198.6)

NASDAQ : 2596 (-52.83)

Nikkei 225 : 8541 (-122.6)

Hang Seng : 18780 (-327.0)

SGX CNX Nifty : 4883 (-65.50)

Gold (USD/t oz.) : 1719

Nymex Crude (F) : 98.28

INR / 1 USD : 51.77

TECHOUTLOOK : Support for Nifty is at 4850 resistance at 5021.

Call for the day:

Sell ONGC SL 270 Target 259.

Sell Sesa Goa SL 182 Target 165-170.

Stocks in action for the day: Cairn India, GAIL ( India ), Geojit BNP, Dewan Housing, Dish TV.

The service tax department has frozen accounts of state-owned carrier Air India and Kingfisher Airlines for non-payment of services tax dues. Air India has Rs 170 crore in dues while Kingfisher owes Rs 100 crore as service tax liability for the past couple of months.

Fin Min Srcs To Finalize Stamp Duty Act Shortly Uniform Stamp Duty On Capital Mkt Transactions
Stamp Duty Only On Sale Of Assets Alert: Stamp Duty Currently On Sale & Purchase Revised Act May Reduce Transaction Costs By 40%States Will Have To Independently Adopt Act Fin Min Rates Will Only Be Recommendatory

Proposed Stamp Duty On: Delivery Based Client Trading at 0.01%Delivery Based Proprietary Trade at 0.01% CM Segment Delivery Based Client Trade at 0.002% CM Segment Delivery Based Proprietary Trade at 0.001%

State-run explorer Oil and Natural Gas has surrendered an onshore block awarded to it some decade-and-a-half ago in West Bengal, saying the project was not commercially viable.

Vedanta Resources plans to quickly double crude oil output from Cairn India’s Rajasthan block in partnership with the government and expand operations globally to boost India’s energy security

Fortis Healthcare (India) plans to invest up to . 30 crore to set up 50 standalone dialysis centres across the country in the next two years for treatment of patients suffering from kidney failure.

Procter & Gamble Co, Colgate- Palmolive Co and Henkel were fined €361.3 million ($464 million) by French antitrust regulators for fixing the price of laundry soap

Debutants Under Lens for IPO Fund Misuse: A few recently-listed companies, merchant bankers and stock brokers are under the regulatory scanner for the alleged misuse of initial public offering proceeds and price manipulation post-debut on bourses

Merchant power companies will be in focus today after the country's state-owned gas marketing company GAIL ( India ) Ltd has told some merchant power plants that they will have to pay higher prices for gas supplied to them.

Reliance Capital ltd after the financial services firm of the Anil Ambani-led Reliance Group, is in talks with at least three international firms to sell a 26% stake in its general insurance arm, according to reports.

Ajmera Realty has informed BSE that it has acquired 100% stake in Ajmera Biofuel Ltd ("ABL") subject to such approvals, consent, sanctions and permissions as may be required.

IPO mop-up plunges 89% to $1.14bn in Jan-Nov,2011

Essar Oil commissions new unit at Vadinar

Trai to Come Out with Paper on Exit Policy

US Court Restrains Lupin from Selling Generic Drug

Cash-strapped textile mills refrain from bulk cotton buying

Videocon to Set Up Mobile Phone Facility Next Year

DLF eyes three big-ticket sales in 2012

SEZ developers allowed to dilute project equity; Cabinet nod not required after commerce ministry approval.

Dish TV tapping investors for Rs 1,000-cr fund

Geojit BNP Paribas board accepts offer from BNP Paribas to sell stake in JV for Rs 40.5cr

Dewan Housing buys 20 lakh shares of Dhanlaxmi Bank at Rs 59/sh via block deal

HC restrains Wockhardt ’s bondholders from filing anti-suit injunction; co had agreed to pay to FCCB holders in 5 installments (ET)

Amtek India board to consider raising of funds through ECB’s, bonds, warrants.

Kavveri Telecom board to consider increase in FII share upto 35%

F&O Ban: ABG Shipyard, Gitanjali gems and RuchiSoya

In an interview with Myiris.com, Prashanth Tapse, AVP Research, Mehta Equities gave views on two stocks which were buzzing on Thursday, Dec. 8, 2011. The same are as follows:

Sesa Goa: Sesa Goa, a Vedanta group company is active on trader`s counters mainly on the back of its actively participating in Cairn & Vedanta deal. Sesa Goa, along with its subsidiary Sesa Resources, has bought around 1.5 % stake in Cairn India for over Rs 9,360 million, taking its total holding in the oil producer to 20%. The average price of the acquired shares was Rs 325. The average price of the acquired shares was Rs 325. With Sesa Goa holding going up to 20%, Vedanta`s cumulative stake will increase to 30% in Cairn India. Cairn Energy and Vedanta have already agreed to the other condition of Cairn India paying cess and royalty on crude oil produced from its mainstay Rajasthan oilfields. Cairn Energy and Vedanta have already agreed to the other condition of Cairn India paying cess and royalty on crude oil produced from its mainstay Rajasthan oilfields. With on going deal process between Carin India & Vedanta Inc, Sesa Goa plays a vital role in having controlling stake which will gradually reduce cash component in sesa`s books.

Technically the chart is clearly showing a downtrend with a target near to 165-170 levels.

Shares of the company declined Rs 11, or 5.81%, to settle at Rs 178.40. The total volume of shares traded was 709,736 at the BSE.

Nectar Lifesciences: Nectar the leading manufacturer of generic active pharmaceutical ingredients (APIs) is in action on the back of approval for its Cephalasporin Formulations manufacturing facility in Baddi, This approval will facilitate NecLife`s entry into lucrative 27 European Union member states, EEU, South Africa and Middle East markets on account of mutual recognition. Till date, NecLife has filed 27 Drug Master Files (DMFs) and 6 Abbreviated New Drug Applications (ANDAs). Neclife has very ambitious plan of filing over 20 DMFs and multiple ANDAs/EU dossiers in US and EU markets in year 2012. These filings by NecLife will result in robust topline as well as bottomline for the company from year 2013 onwards in view of gestation period for regulatory approvals which take significant time in view of the current pendency.

Technically there is no clear sign for either side direction for short term trade, if one looks nectar on a fundamental basis the stock is undervalued which is trading at P/BV of 0.54 (BV Rs 32), Hence, investor with long term view can buy it with a target of Rs 32-35.

Shares of the company gained Rs 0.4, or 2.31%, to settle at Rs 17.70. The total volume of shares traded was 109,873 at the BSE.

SKS Microfinance: India`s only listed microfinance lender, SKS Microfinance counter opened with a positive sentiments on the back of its announcement that the micro lender has decided to reduce its exposure to microfinance in terms of assets, revenues and profits. It expects this business, which would largely focus on meeting the needs of existing microfinance borrowers, to help derisk operations from microfinance. By March 2013, Company also expects to bring down its exposure to microfinance in terms of assets to 90% from nearly 100% now. In terms of revenue, the exposure will come down to 80% and in profit terms, it will come down further to around 70%.

We believe the above business restructuring process will lead for better sustainability in financial performance. Technically the chart is showing positive signal with a target of Rs 128 on immediately basis.

Shares of the company gained Rs 5.6, or 4.96%, to settle at Rs 118.55. The total volume of shares traded was 231,243 at the BSE.

Stocks in action for the day: Sesa Goa, Britannia, UTV Soft, Moser Baer

2011-12-08T09:05:00.000+05:30

Market Outlook: Indian markets are expected to open negative backed by weak Asian markets. Further investors will keep an close eye on the inflation numbers due later today. Market consensus expect RBI (Dec 16^th) to consider a CRR cut given tight liquidity, hence markets waits for fresh direction

Global Markets: The US markets spiked in the final minutes of trading following a report that the G20 is considering a 600 billion dollars IMF lending program to euro zone, but came off their highs to close flat after the IMF denied the report. Investors are also closely waiting for the key EU summit at the end of the week. Asian markets trading weak; Taiwan Weighted down

Global events to watch:

Consensus estimates indicate a decline in weekly jobless claims to 395,000. Meanwhile, wholesale trade data is expected to rise to 0.4 % in October.
Bank of England interest-rate meeting.
U.S. wholesale inventories for October.

Global indices Update @ 8:

Dow Jones : 12196 (+46.24)

NASDAQ : 2649 (-00.35)

Nikkei 225 : 8635 (-86.88)

Hang Seng : 18974 (-265.8)

SGX CNX Nifty : 5052 (-14.00)

Gold (USD/t oz.) : 1742

Nymex Crude (F) : 101.28

INR / 1 USD : 51.44

TECHOUTLOOK : Support for Nifty is at 4920 resistance at 5100.

Call for the day:

Buy Dabur SL 92 Target 100 (Positional call)

Stocks in action for the day: Sesa Goa, Britannia, UTV Soft, Moser Baer

SAIL gears up to catch up with Tata, JSW Steel in auto, white goods segment: State-run Steel Authority of India Ltd (SAIL) wants to catch up with rivals Tata Steel and JSW Steel in steel supplies to automotive and white goods sectors over the next two years. For this, the company expects its current modernization and expansion drive will help produce the kind of steel used in these sectors.

SKS faces collection problems in West Bengal, Gujarat: SKS Microfinance Ltd, which has been hit by the Andhra Pradesh microfinance crisis, is now facing collection-related problems in parts of West Bengal and Gujarat.

Housing finance regulator National Housing Bank (NHB) said it will raise about Rs 4,500 crore this fiscal to fund housing activities.

Credit Suisse Group cut its earnings estimates for the BSE’s Sensex companies by 7% to . 1,300 for the year ending in March 2013,

The industry ministry has notified the changes in the foreign direct investment regime for the pharmaceuticals sector approved by the union cabinet. Under the new regime, all FDI into Indian pharmaceuticals companies will have to be approved by the government. However, green field foreign investment in the sector will continue to be on the approval rout

Sesa Goa, a Vedanta Group company, acquired a 1.5 per cent equity stake in Cairn India for Rs. 936 crore through a two block deals on the BSE.

Textile Secy Says Met Officials Of Fin Min, RBI, Reps On Debt Restructuring Inter-ministerial Meeting To Discuss TUFS Monitoring TUFS: Technology Upgradation Funds Scheme
No Crisis Situation In Textile Sector; No Major Bank Defaults There Is Reversal In Profits Of Textile Cos During 2011 Will Work With RBI, DFS To Work Out Sol For Working Cap Bk Exposure To Textile Sector Divided Amongst Several Units Seeking Resetting Of Repayment Timing; No Govt Outgo Involved Debt Restructuring For Textile Sector Not A Handout By Govt

Dilip Shanghvi, the promoter of India’s biggest drug maker Sun Pharmaceutical Industries, has bought a minority stake in Natco Pharma for Rs 18.34 crore.

India's largest micro lender SKS Microfinance plans to raise a maximum of 5 billion rupees through a share sale to institutional investors by March 2012,

The cabinet on approved foreign direct investment inflows worth Rs14,250 crore. It allowed American entertainment giant Walt Disney Company, South East Asia, Singapore to take complete control of Mumbai-based UTV Software Communications. The decision increased Walt Disney’s stake in UTV Software communications from 48.02% to 100%.

India’s leading carmaker Maruti Suzuki plans to start exporting select models as completely knocked down (CKD) kits, beginning with its new multi-passenger vehicle Ertiga, which it plans to launch at the Auto Expo in Delhi next month.

The government has given final approval for Cairn Energy's $6.5 billion sale of a majority stake in its Indian assets to Vedanta Resources.

Coal India Ltd the state-run company announced that it had lowered its production target for the fiscal year to 440 million tonnes from 453 million tonnes outlined in its annual plan.

Maruti Suzuki India Ltd the automaker is expected to hike prices from January on account of rupee falling against the US dollar in the recent months.

Britannia Industries Ltd the biscuit maker pink slipped 42 executives in a single day signaling that FMCG companies, faced with soaring costs and hyper-competition, were cracking the whip on under performers.

Kingfisher Airlines Ltd the Hong Kong-based private equity firm, Bravia Capital is said to be eyeing an investment in Kingfisher Airlines.

The Cabinet Committee on Economic Affairs (CCEA) cleared a Rs 8,750 crore package for West Bengal.

Car Cos to Hike Prices by up to 3% as Falling Rupee Weighs Heavy.

Wipro to invest Rs 700-800 cr for second campus in Bengal.

Moser Baer to Invest $1 b in Solar Projects.

NHAI threatens to cancel Delhi-Gurgaon toll road operator's rights.

100% FDI in Single-brand Retail Coming, But with New Riders.

F&O Ban: ABG Shipyard, Gitanjali gems, RuchiSoya.

TECHOUTLOOK : Support for Nifty is at 4980 resistance at 5050.

2011-12-07T15:48:00.000+05:30

Market Outlook: Indian markets are expected to open positive backed by positive Asian markets which rose on hopes that warning of credit rating downgrades by S&P will push European leaders into coming up with a convincing plan later this week at the summit.

Global Markets: The US markets finished positive after it was reported that European leaders would discuss boosting the firepower of the euro zone bailout fund.

Global events to watch:

U.S. consumer credit for October
U.S weekly mortgage applications

Global indices Update @ 8:

Dow Jones : 12150 (+52.30)

NASDAQ : 2649 (-06.20)

Nikkei 225 : 8649 (+74.47)

Hang Seng : 19106 (+164.7)

SGX CNX Nifty : 5059 (+27.00)

Gold (USD/t oz.) : 1733

Nymex Crude (F) : 101.45

INR / 1 USD : 51.39

TECHOUTLOOK : Support for Nifty is at 4980 resistance at 5050.

Call for the day:

Buy Cairn India SL 315 Target 330.

Sell Coal India SL 338 Target 320.

Stocks in action for the day: RIL, IndusInd Bank, DLF, Future Capital.

DHFL Chmn Says: Looking To Raise Rs 500 Cr For DHFL Open To PE Funding, QIP, Rights Issue To Raise Funds Looking To Enter Life As Well As General Insurance Sector In Talks With Prospective Partner For Insurance Foray Eyeing Financial Services Sector As Well Expect FDI Retail Logjam To Resolve Soon FDI In Retail Sector Will Open Newer Avenues For Us
DHFL's Fund Mgmt Arm To Raise `200 Cr For Arthveda Star Fund Fund Focussed On Targeting Mid-income Housing Projects Aim To Procure $1 Bn Assets Under Management In 2-3 Years
Fund Will Invest In Greenfield Residential Projects

Barclays India is likely to exit the retail business that includes mortgages, consumer loans and credit cards with a total asset size of around Rs.3,200 crore.

Government-owned banks have sought to wrest control of part of the cash flows of Kingfisher Airlines that is currently controlled by three of their private sector counterparts.

FM Go-ahead To Foreign Airlines Buying 26% Stake In Indian companies. DIPP Has Floated Draft Cabinet Note On FDI In Aviation.

Axis Bank Plans to Ramp up Retail Biz: Cashing in on rising credit demand from smaller cities, bank aims to increase share of retail loans to 30% from 21% now.

Mumbai-based Industrial Investment Trust ( IITL) has purchased Pantaloon's 26% stake in its insurance joint venture Future Generali Life for Rs 250-300 crore.

Bayer AG's healthcare unit settled trademark infringement cases with Indian drug maker Cipla and Vanuatu-based website operator Archipelago Suppliers concerning the German drug maker's pet products.

Hero MotoCorp Ltd has tied up with Muthoot Capital Services Ltd (MCSL), a division of Muthoot Pappachan Group, to offer instant ‘Need based Financial Services' for its two-wheeler customers.

The Government is in the advanced stages of finalising a ‘Mission Plan' for aluminium to enhance per capita consumption of the metal in India and facilitate better exploitation of bauxite and coal resources.

Drug firm Ranbaxy Laboratories launched a generic version of Caduet, used for treating cardio vascular diseases, in the US market, as part of an agreement with Pfizer

India has imposed antidumping duty on cheap imports of opal glassware from China and the United Arab Emirates for five years.

GAIL India has secured a $100 million loan from Bank of Tokyo-Mitsubishi UFJ to part-finance its pipeline expansion plans.

Praj Industries Ltd the Pune-based bio fuels technology developer and manufacturer of equipment for breweries and distilleries has announced a share buyback, slated to open on the stock exchanges from December 15.

Reliance Industries Ltd plans to offer high speed data services on attractively priced tablets by 2012-end, which will coincide with the worldwide deployment of an advanced technology that it plans to use, reports suggest.

Fertiliser makers have sought creation of a $20-billion sovereign fund to help support acquisition of overseas assets of minerals such as potash and phosphates.

RIL asks for 50% hike in price of fresh D6 gas; govt rules out price revision wants co to re-assess economics of the block (ET)

Indiabulls Real Estate : scheme of arrangement, investors to get 3 shares of power for 1 shares held in Ibull Real estate

Wipro to bring services ops under single unit to bring in greater automation

Govt rejects Coal India ’s demand for paring output target (Reports)

Indus Ind Bank may buy 3-5% stake in Aviva Life (BS)

No Hike in Subsidy on Imported DAP, MoP This Yr.

Govt Rejects CIL's Demand for Paring Output Target .

Cairn-Vedanta Deal Gets ONGC’s NOC, Finally.

Hindalco to invest Rs 25,700 cr more.

Retail FDI Decision on Hold: Pranab to Assure All-Party Meet Today

Govt Panel Suggests Resuming Mining in Western Ghats

EPF Rate may be Slashed to 8.25%.

Dhanlaxmi Bank in pact with LIC for e-payments.

Vedanta to Bid for Coal Blocks.

Biyani Sells Future Capital to Deccan Chronicle for 700cr.

DLF acquires Hilton’s 26% stake in hospitality JV (Reports)

F&O Ban: ABG Shipyard and RuchiSoya.

TECHOUTLOOK : Support for Nifty is at 4800 resistance at 5050.

2011-12-01T10:07:00.001+05:30

Market Outlook: Indian markets are expected to open on a strong foot backed by Asian markets and global market cues. China's central bank cut the reserve requirement ratio for its banks by 50 bps followed with World's six major central banks move to tame a liquidity crunch for European banks by providing cheaper dollar funding has spooked global markets. Indian markets are expected to open with gap up in the early morning session while investors will closely watch weekly inflation data to be released later in the day.

Global Markets: US stocks surged on Wednesday after major central banks agreed to make cheaper dollar loans for struggling European banks to prevent the euro-zone debt woes from turning into a full-blown credit crisis. The Dow posted its best day since March 2009 after the Federal Reserve, the European Central Bank and other major central banks stepped in to head off escalating funding pressures that threaten the key arteries of the world's financial system.

Global events to watch:

Spain and France to hold bond auctions
U.S. jobless claims.
Construction spending for October and ISM manufacturing for November

Global indices Update @ 8:

Dow Jones : 12045 (+490.0)

NASDAQ : 2620 (+104.8)

Nikkei 225 : 8606 (+172.0)

Hang Seng : 18920 (+930.9)

SGX CNX Nifty : 5002 (+159.0)

Gold (USD/t oz.) : 1752

Nymex Crude (F) : 100.63

INR / 1 USD : 52.16

TECHOUTLOOK : Support for Nifty is at 4800 resistance at 5050.

Call for the day:

Sell Dr Reddy SL 1590 Target 1550.

Buy DLF SL 201 Target 220. (Positional Call)

Buy Ranbaxy SL 426 Target 460.

Stocks in action for the day: Reliance Industries, SBI, Dr Reddy, Ranbaxy.

Manufacturing drags GDP growth to 6.9% in Q2: The manufacturing sector grew 2.7 per cent in Q2, lower than the growth rate of 7.8 per cent in the same quarter last year, the mining output declined by 2.9 per cent (growth of 8 per cent in Q2 last year). Agriculture growth slowed to 3.2 per cent from 5.4 per cent in the same quarter last year.

The fiscal deficit for the first seven months (April-October) of the current fiscal has already hit 75 per cent of targeted deficit for the entire year, according to data released by the Controller General of Accounts (CGA)

Public sector oil retailers have cut petrol prices by up to Rs 0.83 a litre effective tonight

Excessive rains, CIL workers’ union strike hit coal production in last 2 months

Reliance Industries plans to issue a USD 1 billion 10-year overseas bond, probably early next year, to fund capital spending and possible acquisitions

State-run banks led by State Bank of India plan to install 40,000 ATMs across the country. The banks will jointly install white-label ATMs, which are not owned by any single bank.

RIL Not to Make Fresh Investments in D6 Block Pending until Arbitration

Private Debt Placements Fall 12% in First Half of FY12

FIIs bid 32% more than the $10-b debt offered for auction, raising hopes of reprieve for sliding rupee.

LIC may be asked to pick up govt stake in PSUs.

Jet Airways -May review low cost carrier strategy to take on IndiGo -Top management meets to explore tiered structure -May look to abandon Konnect strategy of low-fare carrier –Exploring launching LCC instead of low-fare airline-LCC will operate on both domestic, international routes

MphasiS Q4 Net revenue at Rs 1,314 crore versus Rs 1,293.6 crore (QoQ) Net profit at Rs 183 crore versus Rs 194.8 crore (QoQ)

Dealers say -SEBI auctioned Rs 25,300 crore FII gilt investment cap -SEBI auctioned Rs 26,100 crore FII corporate bond limit -SEBI got 395 bids for FII gilt investment cap sale -SEBI got Rs 25,300 crore bids for FII gilt investment cap sale -SEBI got 340 bids for FII corporate bond investment cap sale -SEBI sets 115 bps cut-off on FII gilt investment cap sale -SEBI sets 67 bps cut-off on FII corp bond investment cap sale

RBI Sources -RBI has taken final view on RBS-HSBC deal-Have told RBS it should lock, stock & barrel asset sale -Deal should include sale of retail, wholesale assets

Watson launches Lipitor Generic in US and company in agreement with Pfizer till November 30, 2016

2G Court: Reserves order on RK Chandolia bail plea till Thursday

A2Z Maintainence promoter pledges 7.73% of outstanding equity

Hindustan Dorr gets Rs 170 crore order from ONGC

Spanco transfers power distribution biz to step down subsidiary Spanco Nagpur Discom

HDIL sells off Eveready Industries plot at Turbhe for an Rs 42 crore loss; it had bought for Rs 115 crore

Asset management companies have increased their lending to power generation and transmission companies this year. Overall debt exposure of mutual funds to power sector shot up 35% to around . 1,613 crore between January and October this year. Excluding investments in power finance companies and NBFCs, the mutual fund industry has about 1% exposure to core power generation, transmission and equipment companies as of end-October.

Dr Reddy's Laboratories Ltd after the Central Bureau of Investigation (CBI) issued a notice to the drugmaker seeking details of the tax benefits it had availed during the reign of N Chandrababu Naidu as chief minister in Andhra Pradesh.

Gayatri Projects Ltd after the company has convened a meeting of the board of directors on December 5 to consider the withdrawal of the Draft Letter of Offer dated March 21 filed with the SEBI and stock exchanges on its rights offer and to reconsider its terms.

SKS Microfinance Ltd after the company plans to increase the upper limit of foreign institutional investment in the company. A special resolution to increase the foreign institutional investment limit from 24 per cent to 74 per cent of the paid-up equity shares of the company in line with the regulatory norms would be taken up in the meeting.

The USFDA has given a clean chit to Ranbaxy’s new manufacturing plant at Mohali in Punjab, paving the way for the country’s largest drugmaker to sell drugs in the US from this plant

How to trade in Educomp, Punj Lloyd and Suzlon now? Source: IRIS (28-NOV-11)

2011-11-28T14:58:00.001+05:30

In an interview with Myiris.com, Prashanth Tapse, AVP research, Mehta Equities gave views on three stocks which were buzzing on Monday, November 28. The same is as follows:

Educomp Solutions:

Education solutions provider Educomp is in action for the day mainly on the back of its new program in association with Intel to unveil Class Transformation System under its Smartclass program which includes showcasing of 3D audio visual teaching material using digital technology. Smartclass CTS, a technology-driven initiative of Educomp makes learning more stimulative and interactive using technology-aided learning process.

Technically, the stock has underperformed in last couple of week with a support near 165 levels and rebounded back. Hence, 227 would be immediate resistance which if holds good one can see 250-260 levels in a month or so. We are positive on the stock.

Shares of the company gained Rs 29.6, or 15.8%, to trade at Rs 217. The total volume of shares traded was 2,864,658 at the BSE (2.08 p.m).

Punj Lloyd:

Punj Lloyd, the engineering, procurement and construction major, has come into limelight after it has received a project worth Rs 4,690 million from ONGC in the Bombay High region off Mumbai. The scope of work for the project includes designing, engineering, procurement, fabrication, installation of 122 km of submarine pipeline and modification on existing facilities among others. The project is scheduled for commissioning in May 2013. Following this contract, Punj Lloyd now has an order backlog of Rs 271.8 billion on a consolidated basis.

Technically, the stock has given a positive signal near 46-47 levels. After a long underperformance in the counter, one can see some sort of reversal trend till 52 which currently acts as a short term target. Hence, one can trade the stock with a target of Rs 55, stoploss at Rs 48 in a month or so.

Shares of the company gained Rs 2.45, or 5.24%, to trade at Rs 49.25. The total volume of shares traded was 659,281 at the BSE (2.13 p.m).

Suzlon Energy:

Wind power major Suzlon Energy recently had very bad trading session due to difficult market conditions in Europe and the US. Keeping the global winds not supporting its growth plan, local player Coromandel Wind Energy has inked a pact worth Rs 4,700 million for setting up, operations and maintenance of a 75.6 MW wind power project of the latter company. The plant is located in Rajasthan and will be commissioned in FY 2012-13. The company is well positioned in India, which offsets slow down in other major revenue contributing countries. Suzlon has key presence in some of the weaker markets in Europe like Spain, Romania and Portugal. Europe currently accounts for roughly a third of Suzlon`s global revenue.

We are positive on the business opportunity keeping demand sustenance remains a key monitorable aspect, Technically, 22 has been a major support for the counter and with this price one can really take a long term call on the business which has huge growth potential going forward. Keeping 12 month investment horizon from now one can by far expect 25%-30% return.

Shares of the company gained Rs 1, or 4.48%, to trade at Rs 23.30. The total volume of shares traded was 4,018,092 at the BSE (2.15 p.m).

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.

TECHOUTLOOK : Support for Nifty is at 4680 and resistance at 4800.

2011-11-28T09:54:00.001+05:30

Market Outlook: Indian markets are expected to open on a positive note taking cues from the Asian recovery seen in the morning. We see no near-term positive trigger in sight, amid weak rupee and investor concerns over slow growth of the global economy we feel we are still not out of woods. The near-term outlook remains gloomy as FIIs, the main market movers, have pulled out Rs 6,200.90 crore during nine straight trading days since November 15.

Global Markets: Wall St suffers worst week in 2 months on Europe woes while Asian markets trading firm; Hang Seng, Nikkei up.

Global events to watch:

New home sales are expected to decline to 310,000 in October versus 313,000 the prior month.

Global indices Update @ 8:

Dow Jones : 11231 (-25.77)

NASDAQ : 2441 (-18.57)

Nikkei 225 : 8305 (+145.0)

Hang Seng : 17966 (+277.4)

SGX CNX Nifty : 4772 (+64.00)

Gold (USD/t oz.) : 1708

Nymex Crude (F) : 98.35

INR / 1 USD : 52.25

TECHOUTLOOK : Support for Nifty is at 4680 and resistance at 4800.

Call for the day:

Buy GAIL SL 375 Target 390-400.

Buy AXIS Bank SL 955 Target 995.

Sell Tatasteel near 380-385 Target 365-360.

Stocks in action for the day: Carmakers, Ranbaxy, Fertiliser companies, GAIL, Colgate, Bharati Ship, M&M, Piramal.

GAIL to replace Jaiprakash Associates in Sensex from January 9. -NALCO, Tata Communications to be excluded from BSE-100 Index from January 9 -Colgate, Hindustan Zinc to be included in BSE-100 Index from January 9.

Car companies viz., Maruti, Toyota, GM & Honda may hike prices by up to Rs 25,000 on expensive imports: Carmakers plan to increase prices by up to Rs 10,000 for small cars and up to Rs 25,000 for sedans to offset the impact of weakening rupee on import costs despite the recent slump in sales. Maruti Suzuki, Toyota, General Motors, Honda and Skoda Auto all plan to increase prices within days as the weakening rupee has pushed up costs of their imported components significantly. The rupee has weakened about 17% against the US dollar since January, hitting an all-time low Rs 52.73 last week, forcing carmakers-that import between 10% and 40% of components for different models - to consider price increases.

Ranbaxy Laboratories and the American authorities are inching toward a settlement over the Indian drug maker's regulatory troubles in the world's largest drug market, brightening its prospects of launching the low-cost version Lipitor - the blockbuster cholesterol lowering drug - on schedule in the US next week.

In a bid to mobilize additional resources, the Department of Disinvestment has floated a cabinet note on alternate strategies to disinvestment. Reeling under fiscal strain, the note proposes the use of surplus cash on PSU's balance sheets to meet the fiscal deficit target.

AXA, Bharti and Reliance Industries have mutually agreed to terminate their negotiations on the proposed acquisition by RIL of Bharti's shareholding of 74% in Bharti AXA Life Insurance and Bharti AXA General Insurance.

FDI in retail MM Joshi says -BJP will oppose FDI in retail clearance-Will bring adjournment motion against move if required -Many states slam FDI, no FDI in 25 out of 53 cities?

FIPB rejects Bharati Shipyard 's FDI proposal for defence operations

FIPB -Sends Unitech Wireless FDI proposal to cabinet panel -Okays NDTV proposal for up to 100% foreign equity-Oks Dish TV plan to up telecom equipment operations' foreign equity

Aviation Ministry sources - Kingfisher Airlines halts ATF buys from PSU companies -Kingfisher owes PSU companies Rs 540 crore for ATF-Regulator holding financial audit of Kingfisher Airlines -Kingfisher Airlines grounded 12 of 27 turboprop plane -Kingfisher Airlines buying jet fuel from RIL

Petrol prices may fall by Re 1/litre this week – BS

M&M to mull new merger plan of arm's automotive operations on Tuesday

Piramal Healthcare gets HC nod for scheme of arrangement for demerger of NCE research unit of Piramal Life Sciences into Piramal Healthcare Ltd.

Kanimozhi Bail hearing to continue on Monday

Govt okays 18 FDI proposals worth Rs 2,126 crore

Finance Ministry says PPF investment limit to go up to Rs 1 lakh from this fiscal

Airlines stocks will be in focus today after Friday’s stellar performance. The prime minister met the airline chiefs on Saturday. Sources indicate that four issues were discussed at meet. The issues include high tax on ATF, new ground handling policy, unutilised bilaterals and high airport taxes

Fertiliser companies gained momentum after reports that the government has sought parliamentary approval to allocate additional subsidy of Rs 137.8 billion for fertiliser sales in the current financial year.

Shares of Jet Airways, Kingfisher Airlines and Spicejet surged after reports that the Prime Minister Manmohan Singh has called the heads of all Indian airlines for a meeting on Saturday to discuss ways to help the cash-strapped carriers and to resolve other industry issues.

Subex plans to raise $135 million via qualified institutional placement, preferential issue and or private placement

Godrej Properties is seeking shareholder nod to raise upto Rs 750 crore via for QIP/rights issue.

Mehta Equities` take on retail sector post 51% FDI in multi-brand

2011-11-25T13:44:00.000+05:30

Mehta Equities` take on retail sector post 51% FDI in multi-brand

In an interview with myiris.com, Prashanth Tapse, AVP Research, Mehta Equities, Mehta Group gave outlook on retail sector post 51% FDI in multi-brand and investment strategy on Pantaloon, Shoppers Stop & Trent. The same is as follows:

Sector Outlook

We believe this action could bring in a revolutionary change in Indian retail market where burgeoning middle-class still shops at local, family-owned merchants and we see this revolution will change retail lifestyle. The decision will surely be a boosting trigger to global retail giants like Wal-Mart that is waiting long to tap India`s lucrative retail sector. Currently organized retail or large chains making up less than 10% of the actual potential market. India`s overall retail sector is USD 450 billion and expected to rise to USD 833 billion by 2013 and to USD 1.3 trillion by 2018, at a compounded annual growth rate of 10%. This is driven by the emergence of shopping centres and malls, and a middle class of close to 300 million people which is growing at nearly 2% a year.

This move on one side will help companies to get value investments, while on the other side I call it as a bold move as foreign players have deep pockets to drive themselves towards growth. For Indian`s this proposal will throw millions of small traders out of work in a sector that is the largest source of employment in India after agriculture. But finally with both pro`s & con`s consumer will get better business environment more choices and better prices, which we believe is what India needs.

Investment strategy on Pantaloon, Shoppers Stop and Trent

Shares in retailers jumped today after the government moved to open up the supermarket sector to global giants, a decision seen prompting a flurry of investments and tie-up opportunities for local players. FDI in multi-brand retail would really benefit capital-constrained retailers such as Pantaloon Retail, Shoppers Stop & Trent

Pantaloon:

Pantaloon Retail a flagship company of Future Group, pioneers in catering to the entire Indian retail consumption space. We advise investors to Hold with an immediate target of Rs 245 while on 3-6 month term basis one can see a target price of Rs 280-300.

Shares of the company gained Rs 31.8, or 15.85%, to trade at Rs 232.40. The total volume of shares traded was 2,303,099 at the BSE.

Shoppers Stop:

Shoppers Stop is an Indian department store chain promoted by the leading K Raheja Corp Group. Shoppers Stop retails a range of branded apparel and private label under the following categories of apparel, footwear, fashion jewellery, leather products, accessories and home products. Technically it can test 450+ hence we are positive.

Shares of the company gained Rs 32.5, or 8.73%, to trade at Rs 404.75. The total volume of shares traded was 455,668 at the BSE.

Trent:

Trent is the retail arm of the Tata group. Trent is a retail operations company that owns and manages a number of retail chains in India Trent runs lifestyle chain Westside, one of India`s largest and fastest growing chains of lifestyle retail stores, Star Bazaar, a hypermarket chain, Landmark, a books and music chain, and Fashion Yatra, a complete family fashion store. Technically the stock can move upto 1,200 level; hence we believe Rs 1,200 is a fair value going forward.

Shares of the company gained Rs 79.55, or 8.15%, to trade at Rs 1,056. The total volume of shares traded was 42,006 at the BSE.

Stocks in action for the day: Amtek India, GMR Infra, IGL, SBI, SKS Micro.

2011-11-24T09:27:00.001+05:30

Market Outlook: Indian markets are expected to open weak backed by Global markets and threats of a possible recession in Europe loom nearer. Investors all eyes will be on how the markets reacts on the F&O expiry of today. The ongoing contagion of debt crisis in the Eurozone, lower-than- expected GDP growth in the US and rising dollar value are amongst the primary factors to keep Indian markets under pressure.

Global Markets: U.S markets continued it sell off on weak economic data and ongoing debt concerns from the Eurozone. US weekly jobless claims edged up 2,000 to 393,000. Meanwhile consumer sentiment came in at 64.1 for November, up from 60.9 the month before. Mortgage applications slipped 1.2% in the week ended November 18, after a 10% drop the week before.

Global events to watch:

Germany’s IFO business climate index for November

Global indices Update @ 8:

Dow Jones : 11257 (-236.1)

NASDAQ : 2460 (-61.20)

Nikkei 225 : 8200 (-133.9)

Hang Seng : 17822 (-40.77)

SGX CNX Nifty : 4705 (-18.00)

Gold (USD/t oz.) : 1696

Nymex Crude (F) : 95.92

INR / 1 USD : 52.10

TECHOUTLOOK : Support for Nifty is at 4635 and resistance at 4750.

Call for the day:

Sell GMR Infra SL 21.5 Target 17.50.

Sell Sesa Goa SL 175 Target 161.

Sell SBI SL 1677 Target 1605.

Stocks in action for the day: Amtek India, GMR Infra, IGL, SBI, SKS Micro.

Cyrus Mistry’s appointed Deputy Chairman of Tata Sons. To take responsibility on Ratan Tatas retirement. Cyrus Mistry to takeover as group head by December 2012

Cabinet to decide on raising FDI limit today: the Union Cabinet is likely to take up a proposal of hiking foreign direct investment in single-brand retail to 100 per cent from the current 51 per cent and allowing 51 per cent FDI in multi-brand retail trading.

Muthoot Fincorp ties up with MoneyGram for global money transfer services.

RBI tweaks ECB norms to stem falling rupee: Reserve Bank of India (RBI) directed Indian companies to bring back offshore funds, raised through external commercial borrowings (ECBs) for the purpose of domestic business expenditure. Those funds need to be parked with Indian banks.

JPMorgan Cuts Crude Oil Forecasts for 2012

The Reserve Bank has deregulated interest rate on savings accounts in Regional Rural Banks (RRBs), a move that will fetch better returns for its depositors.

RBI lifts $100 m cap on banks' net forex supply position.

The National Highways Authority of India (NHAI) will soon raise . 10,000 crore through a public debt issue to fund various projects across the country.

Irda Plans to Limit Insurers’ Bank Tie-ups.

Andhra govt rules out help in MFI loan recovery.

Vikram Akula steps down from SKS Micro board.

State Bank of India has decided to waive prepayment charges on home loans linked to both floating and fixed rates for old and new customers.

Lighting companies Philips, Havells and Bajaj Electricals have increased the prices of CFL (compact fluorescent lamp) bulbs by up to 15% due to soaring prices of key raw material.

Severstal, Russia’s second-largest steel company, and NMDC, India’s largest iron ore miner, plan to sign their joint venture agreement for the proposed $3-billion steel plant in Karnataka by December 16.

GMR Infra promoters have pledged additional three crore shares.

Amtek India board has approved a 1:1 bonus issue.

India's biggest private lender ICICI Bank is open to buying loan portfolios of European banks.

Energy major BP has signed a memorandum of understanding (MoU) with Indian Oil Corporation (IOC) to set up a joint venture (JV) company.

RBI: Hikes rates on non-resident (external) rupee deposits Hikes rate on foreign currency non-resident (banks) deposits NRE deposit rate for 1-3 years not to exceed LIBOR +275 bps Caps FCNR deposit rate on all tenures at LIBOR +125 bps FCNR deposit rate cap was at LIBOR +100 bps earlier

Indraprastha Gas (IGL) looking to acquire BG’s 49.75% stake in Mahanagar Gas – ET

Indowind Energy promoters acquires additional 1% stake, up stake to 31.41%

F&O Ban: Gitanjali Gems, Ruchi Soya, Suzlon.

TECHOUTLOOK : Support for Nifty is at 4740 and resistance at 4850.

2011-11-23T13:50:00.000+05:30

Market Outlook: Indian markets are expected to open weak following to the Nervousness and fear are the new trend for global markets. Investors kept going back to the Eurozone and the US markets behaviour, before they took a call as to where to park their money.

Global Markets: US markets were off their worst levels but closed lower in a thin, volatile session with the S&P and NASDAQ logging a fifth-consecutive decline as investors remained cautious over uncertainty in the Euro zone and after a tepid GDP report. The US grew at a slightly lower pace. Its third quarter preliminary GDP came in at slightly lower at 2% versus advanced GDP of 2.5%. Consumer spending came in at 2.3% versus advanced 2.4%. Asia was off to a weak start as investors remained cautious following tepid third quarter US GDP growth and Eurozone debt concerns. Japanese markets are shut on account of Labor Thanksgiving day.

Global events to watch:

European Commission to issue paper on euro bond.
U.S. jobless claims, October personal income, October durable goods orders.

Global indices Update @ 8:

Dow Jones : 11493 (-53.59)

NASDAQ : 2521 (-01.86)

Nikkei 225 : 8314 (-33.53)

Hang Seng : 17905 (-346.0)

SGX CNX Nifty : 4760 (-43.00)

Gold (USD/t oz.) : 1707

Nymex Crude (F) : 97.00

INR / 1 USD : 52.70

TECHOUTLOOK : Support for Nifty is at 4740 and resistance at 4850.

Call for the day:

Sell ONGC SL 255 Target 242.

Buy Kamat Hotel SL 108 Target 122.

Sell SKS Micro SL 112 Target 104

Buy Pipavav SL 55 Target 62-65

Stocks in action for the day: RIL, ONGC, Sugar Stocks, Kamat Hotel. SKS Micro, GTL, Parsvnath, Kingfisher

Cess on air passengers to subsidise airlines flying select routes proposed

Federal Bank plans to infuse Rs 120-cr equity in NBFC

Govt to get tough with RIL on fall in KG-D6 gas output: The government will decide on restricting the expenditure that Reliance Industries Ltd (RIL) is allowed to recover from the investments made in the KG-D6 block in the next three-four weeks. The move has been triggered by RIL’s failure to match the projected gas output in the country’s biggest gas field.

KFA submits new flight plan to DGCA. KFA expects to restore normal operations in 4 to 5 months

The founder-chairman of SKS, India's largest micro finance institution, is likely to be asked to exit the company.

GTL lenders plan to convert debt into equity.

Kamat Hotel: Kamat Hotels (India) Ltd has informed the Bombay Stock Exchange that the company has received a conversion notice from Clearwater Capital Partners (Cyprus) Ltd, the Bondholder, through the Bank of New York, the Principal Paying and Conversion Agent, for the conversion of 6,405 FCCBs into 20,97,993 equity shares of Rs 10 each at Rs 135 per equity share in the capital of the company.

RBI to buy G-Secs worth Rs 10,000 cr under open market operations

RBI eases rules for overseas investors in infrastructure debt funds

ONGC withdraws stake sale prospectus

Ashok Leyland, US company John Deere enter into joint venture to retail construction equipment

Export of 1 mt sugar okayed, no stock cap: The Union government allowed export of a million tonnes of sugar for the 2011-2012 crop marketing year that started in October and also lifted the stock holding limit on the sweetener from November 30.

An expert group, set up by the Planning Commission, has called for an “urgent” reversal of the current position on foreign direct investment in the pharma sector. The panel wants foreign drug multinationals to bring down their stake in the Indian subsidiaries to 49 per cent.

Draft Cabinet note for 26% FDI in airlines by foreign carriers

Myiris.com: How to trade in Force Motors, Kirloskar Oil Engines & Redington?

http://myiris.com/newsCentre/storyShow.php?fileR=20111122144152715&dir=2011/11/22&secID=livenews&code1=&code=

In an interview with Myiris.com, Prashanth Tapse, AVP Research, Mehta Equities gave views on three stocks which were buzzing on Tuesday, November 22. The same is as follows:

Force Motors: Shares of Force Motors jumped 20% to hit the upper circuit limit after company stated that it has almost exited its joint venture with Man Truck & Bus AG by selling 5.58 lakh shares to its German partner for 150 million euros (over Rs 10.50 billion) whereas the current market cap is Rs 7.89 billion at the price of Rs 605.

The JV was made in 2006, between Force Motors and Man Truck & Bus called as-Man FORCE Trucks (MFTPL), to produce heavy commercial vehicles. At the time of formation of the JV, the Indian firm was the majority partner, with an 80% stake. The company became a 50:50 partnership in 2008.

Technically, the stock has shown recovery on charts after touching 450 levels looking at the short-term trend we can expect the stock to touch 730-780 level and if breaches can reach 900 levels.

Shares of the company gained Rs 100.85, or 20%, to trade at Rs 605.15. The total volume of shares traded was 5,209 at the BSE (2.26 p.m., Tuesday).

Kirloskar Oil Engines: After a long stagnation the stock has seen surge in volumes with a average of 4-fold surge over two-week average daily volume which has reflected in jump in the stock price. The stock has decently outperformed in the current volatile markets. Looking at the recent quarter earning the company has performed well against its peers. Topline grew on flat note at Rs 5.78 billion while operating profitable has grown well from 16.3% to 21.27% QoQ basis and PAT margins grew equally from 7.68% to 9.82%, resulting to EPS 3.90 Vs 2.98 QoQ.

Technically, one can expect 152 looking at the surprised pull back.

Shares of the company gained Rs 8.15, or 6.33%, to trade at Rs 137.00. The total volume of shares traded was 1,427,771 at the BSE (2.25 p.m., Tuesday).

Redington (India): The outlook for FY12-13 remains natural on the back of lower spending expected in India, South Asia, Middle East and Africa as overseas business has seen slow growth over a couple of quarters. Redington (India) along with its subsidiaries is in the business of end-to-end supply chain management of IT and Non-IT products.

Technically the stock is negatively biased on the ongoing sentiments from Euro zone and US markets. We expect the stock to test 73 before taking fresh movement, hence we recommend a `Sell` call.

Shares of the company declined Rs 3.6, or 4.32%, to trade at Rs 79.70. The total volume of shares traded was 468,152 at the BSE (2.27 p.m., Tuesday).

TECHOUTLOOK : Support for Nifty is at 4730 and resistance at 4850

2011-11-22T09:00:00.000+05:30

Market Outlook: Indian markets are expected to open flat to higher following Asian markets. Markets are likely to be under pressure as expiry pressures coupled with continuously deteriorating global cues. Sugar stocks will be in focus after the meeting of the Empowered Group of Ministers (EGoM) on Food scheduled for today to decide on granting permission for sugar exports.

Results today: Siemens

Parliament's Winter Session: Here is what's on the agenda

The Lok Pal Bill, 2011: Provides for the establishment of a Lok Pal for inquiring into corruption complaints
The Public Interest Disclosure and Protection to Persons Making the Disclosure Bill, 2010: Seeks to protect whistle-blowers
The Pension Fund Regulatory and Development Authority Bill, 2011: Gives statutory status to the authority
The Judicial Standards and Accountability Bill, 2010: Requires judges to declare assets and lays down judicial standards
The National Food Security Bill, 2011: Seeks to provide food and nutritional security by ensuring access to adequate quantities of quality food at affordable prices
The Mines and Mineral (Development and Regulation) Bill, 2011: Proposes to set up a benefit-sharing regime for mining companies to share profits and royalty

Global Markets: U.S markets closed down backed by spiraling problems of European economy & the lack of progress by American lawmakers in reaching a deficit-cutting agreement spooked U.S markets to close negative. Mean while U.S industry data showed that existing home sales rose unexpectedly to a seasonally adjusted annual rate of 1.4% last month to a seasonally adjusted annual rate of 4.97 million. Moody's states that its credit rating for the US government remains triple-a with a negative outlook. Asia trading flat to negative; Hang Seng down, Nikkei flat.

Global events to watch:

Third-quarter U.S. GDP revision: The US GDP for the third quarter is expected to come in marginally lower at 2.4 % versus 2.5%.
Federal Reserve's FOMC minutes.

Global indices Update @ 8:

Dow Jones : 11547 (-248.8)

NASDAQ : 2523 (-49.36)

Nikkei 225 : 8333 (-14.84)

Hang Seng : 18183 (-42.62)

SGX CNX Nifty : 4806 (+19.00)

Gold (USD/t oz.) : 1686

Nymex Crude (F) : 97.04

INR / 1 USD : 51.71

TECHOUTLOOK : Support for Nifty is at 4730 and resistance at 4850

Call for the day:

Sell SBI SL 1710 Target 1640

Buy Force Motors SL 495 Target 520.

Buy Amtek Auto SL 93 Target 115

Stocks in action for the day: Nitesh Estates, Force Motors, Kingfisher

Federal Bank signs pact with Tata Motors for vehicle financing.

Tata Sons to issue 1:5 bonus shares: Tata Sons, holding company of the Tata Group, plans to raise Rs 202.07 crore through issue of bonus shares. It will issue five ordinary shares of Rs 1,000 each for every one share held in the company.

Reliance Infra commissions transmission line in Gujarat: Reliance Infrastructure has commissioned a 140-km 400 kV double circuit transmission line between Ranchodpura (Vadavi) and Zerda (Kansari) in Gujarat.

FIIs seek preferential treatment from govt: With disinvestment programme yet to pick up steam, foreign institutional investors (FIIs) today sought from the government some kind of preferential treatment for them in the sale of stake in India’s public sector undertakings. A delegation of FIIs, led by JP Morgan, met finance ministry officials — and said their bringing money to the country in dollars was virtually under-recognised, as they continued to be allocated shares on a pro-rata basis as nothing more than qualified institutional buyers (QIBs). They wanted this mechanism to change

FinMin asks Sebi to review MF charges.

FII holding in Everonn drops to 12.17%

Fitch affirms ‘AA’ rating for J&K Bank

Kingfisher turmoil -Rumors of Malvinder Singh likely to invest in Kingfisher Airlines are doing rounds in the market (BS)-DGFT says Kingfisher Airlines ATF plea not received (Mint)

Cabinet note for aviation FDI sent to ministry: Sources -Finance Ministry supports 26% stake for foreign carriers -Finance Ministry also mulls 49% for foreign carriers -Finance Ministry may push for higher stake than what DIPP suggested -DIPP pitched for 26% as it allows special resolution -Civil aviation ministry suggests only 24% for foreign carriers

Maruti Suzuki: Agencies -Do not expect sales volume growth in FY12 -See Indian auto industry sales volumes growing 2-3% in FY12 -Hope to start buying diesel engines from Fiat -Trying to build export market beyond Europe

Force Motors CMP: Rs 501, M-cap: Rs 653 crore -Force Motors to sell stake in JV with German Co MAN for 150 million Euros -Prior to deal, MAN held 50% stake in JV with Force Motors -To sell & transfer: 5.5 crore shares

F&O Ban: Gitanjali Gems, RuchiSoya, Suzlon

Scheme of Arrangement: Jindal Saw F&O contract inclusion w.e.f today

Phoenix Mills converts high cost debt into a lease rental discounting loan worth Rs 575 crore (ET)

JP Morgan Fund buys 45% stake in Nitesh Estates SPV for Rs 204 crore – ET

Zandu Realty in deal with Sheth developers to develop a property in Mumbai (Mint)

Banks ready to cut rate by 2% for GTL; asks the company to bring in 15% of debt as equity to facilitate CDR (FE)

Avantel buy back at maximum price of Rs 70/share (CMP: Rs 52.70)

Amtek Auto buy back at maximum price of Rs 200/sh (CMP: Rs 101.30)

Auditors say Jet Airways needs to raise money to meet its obligations & fund Jet Lite

Tata Sons lines up bonus issue in 5:1 & board also recommends 800% dividend

TECHOUTLOOK : Support for Nifty is at 4850 and resistance at 4935

2011-11-21T09:21:00.000+05:30

Market Outlook: Indian markets are expected to open in a whammy sentiments backed by negative cues from Asian economies as Japan swings to surprise trade deficit in October.

Bills of Expectation: The winter session of Parliament gets under way on Tuesday. Following are some of the important bills expected to come up during the month long sitting:

Lok Pal Bill 2011,
Judicial Standards & Accountability 2011,
Seeds Bill 2004,
Pension Fund Regulatory & Development Authority Bill 2011
The Constitution (108^th Amendment) Bill 2010 as passed by Rajya Sabha

Global Markets: Wall Street closed on Friday mixed in another thin choppy session. Investors were reluctant to commit to the market ahead of the weekend amid ongoing nervousness over the debt talks in Europe and Washington. Major indices closed at their worst levels in almost two months. European markets too hit their six-week closing lows.

Global events to watch:

· U.S. leading indicators for October.

· Federal Reserve's Lockhart to speak.

· The grand deal to keep Greece from default had an unintended consequence.

· Treasury to auction $35 billion in 2-year notes

· U.S. existing home sales for October.

Global indices Update @ 8:

Dow Jones : 11796 (+25.43)

NASDAQ : 2572 (-15.49)

Nikkei 225 : 8365 (-09.48)

Hang Seng : 18125 (-365.2)

SGX CNX Nifty : 4874 (-48.50)

Gold (USD/t oz.) : 1720

Nymex Crude (F) : 97.73

INR / 1 USD : 51.35

TECHOUTLOOK : Support for Nifty is at 4850 and resistance at 4935

Call for the day:

SELL Nifty SL 4935 Target 4850.

BUY L&T SL 1220 Target 1275.

BUY ICICI at lowers with a stop loss of 20 points target 805.

BUY CESC SL 248 Target 269.

SELL SBI SL 1750 Target 1650 (Positional call).

Stocks in action for the day: Kingfisher, Gitanjali Gems, L&T, IFCI, GTL.

Kingfisher :Sahara group likely to invest USD 500-600 million in Kingfisher Airlines – CNN-IBN exclusive -Mallya, Sahara deny bailout deal for Kingfisher Airlines (Agencies) -Govt nudges LIC to buy 10% stake in Kingfisher Airlines valued at around Rs 120-125 crore (BS)

Winter Session: Govt to pursue reforms in higher education

FDI jumps 77% on M&A spree: The latest available data from the Reserve Bank of India show a 77 per cent jump in the FDI in the first half of the current financial year (April-September), compared to what was $19.5 billion the same period a year ago

Bank of India likely to relaunch mutual fund biz by December.

Centre okays Rs 1,600 cr for AP power sector.

RIL gets clean chit for capex till Fy 08 in KG-D6 gas fields: The Directorate General of Hydrocarbon has given a clean chit to Reliance Industries' capital expenditure of $2.5 billion spent up to 2007-08 in developing the KG-D6 gas fields because the CAG's audit has not quantified any loss to the exchequer.

Bobby Pawar set to quit Mudra

Government may turn IFCI debt into equity, make it PSU

Consumption growth short of estimate: The consumption of petroleum products in India is growing at a rate much lower than the conservative projection of 4.58 per cent made for this year by the Petroleum Products Planning and Analysis Cell (PPAC), a wing of the petroleum ministry. In the first six months of 2011-12, consumption grew a mere 3.61 per cent. The trend is much lower than the growth witnessed in recent years and is in line with the global trend.

Banks'-KFA meet: Sources -KFA may not be required to bring additional equity -KFA seeks additional working capital loans of Rs 2,300 crore -Company seeks LCs worth Rs 1000 crore to replace maintenance reserves -KFA to appoint consultant to look into operational issues -SBI Caps to submit report on financial viability in 15 days -KFA allowed to individually negotiate with each lender -Lenders to take call only after both reports submitted

GTL: Sources -ICICI Bank to return 29.5% stake in GTL -ICICI has proposed to transfer Rs 650 crore debt of GTL to CNIL -CNIL: Chennai Network Infrastructure Ltd -Banks to take final decision on November 29

New divestment strategy-Divestment Dept lists new capital market strategy-Aims to raise Rs 46,000 crore in immediate to medium-term

Monetisation of SUUTI portfolio to raise Rs 23,000 crore (Major holding – Axis Bank, ITC and L&T) Raise Rs 17,800 crore via buyback of equity Raise Rs 13,400 crore via strategic cross purchase -Raise Rs 15,000 crore via secondary sales -Divestment strategy prepared by DoD & ICICI Securities -10 PSUs identified for buyback -Buyback size based on 50% capex utilization -Buyback candidates are ONGC, NTPC,SAIL, BHEL,Coal India, OIL -Buyback candidates are Neyveli Lignite, NALCO, Satluj Jal -Buyback would provide Rs 4,300 crore cash to public -Long-term approach suggests holding co structure -Real estate co structure to monetise surplus land -5 companies listed as secondary sale candidates -Stake sale via private placement or on market -VSNL surplus land to be hived off into SPV -Can look at divesting stake in listed PSBs -Can look at divesting stake in insurance companies -PNB, OBC, Canara Bank, Bank Of Baroda likely candidates
-Retain minimum GoI's share at 51% in PSBs -Divestment paper looks to raise total of Rs 91,112 crore -Cross purchase wants NTPC to acquire 5% stake in Coal India & BHEL -Cross purchase wants Coal India to acquire 5% in SAIL -Cross purchase wants NALCO to buy 5% in Hindustan Copper

Exclusion of F&O Contracts w.e.f November 25 (Gitanjali Gems, Great Offshore, Jindal South West Holdings, Kingfisher Airlines, KS oils)

FM panel clears 3 mega infra projects worth Rs 25000 crore including L&T’s Hyderabad Metro of Rs 16000 crore

Govt plans to bring IFCI under its direct control by converting its loan into equity (ET)

Govt sources say cabinet likely to take up retail FDI proposal this week

Cairn India Sources: Expect Home Ministry nod for Vedanta deal next week

Govt seeks to protect KG D6 revenue share; oil ministry may link cost recovery to capacity

utilization after RIL fails to meet gas production targets (Mint)

Govt likely to hike excise duty on diesel cars in the next budget (BL)

IFCI, DCB pull out of corporate debt recast model owing to lopsided structure & favoring big lenders (ET)

Hinduja Foundries plans Rs 125 crore rights issue (CMP: 67)), (M-cap: Rs 192 crore)

Amtek India: Ex bonus issue 1:1

Ex Dividend: Timken India Interim dividend Rs 20/sh

F&O ban: Gitanjali Gems, Ruchi Soya, Suzlon

Power Ministry seeks withdrawal of import duty on coal (FE)

Future group may exit insurance biz with Generali, sell stake to IITL (ET).

TECHOUTLOOK : Support for Nifty is at 4850 and resistance at 5000

2011-11-18T10:03:00.000+05:30

Market Outlook: Indian markets are expected to open in a negative terrain on the back of feebling Asian markets. Europe's funding difficulties intensified, with Spanish borrowing costs hitting levels which might not be sustainable. Mounting concerns on Europe debt will keep Indian markets and global markets under pressure.

Key earnings to watch: HMT.

US Market: U.S markets closes negative backed by turbulent affects of European economy. At the same time U.S economic data reflected positive momentum reflecting in the U.S Consumer spending which is up by 0.5% in October and industrial production 11% to the highest level in a year and a half. US claims for jobless benefits hit a seven-month low last week, while permits for future home construction rebounded strongly last month, bolstering views the economy was gaining traction, initial claims for state unemployment benefits fell 5,000 to a seasonally adjusted 388,000.

Global events to watch:

U.S. leading indicators for October.

Global indices Update @ 8:

Dow Jones : 11770 (-134.9)

NASDAQ : 2587 (-51.62)

Nikkei 225 : 8367 (-112.3)

Hang Seng : 18478 (-339.0)

SGX CNX Nifty : 4890 (-35.50)

Gold (USD/t oz.) : 1722

Nymex Crude (F) : 98.70

INR / 1 USD : 50.72

TECHOUTLOOK : Support for Nifty is at 4850 and resistance at 5000

Call for the day:

Sell HDFC Bank SL467 Target 450.

Sell Sesa Goa Sl 198 Target 180

Buy Orchid Chemical SL 145 Target 180-190 (Short term)

Stocks in action for the day: OMDC, Everonn, HCC, Zee Enter, Rel Infra.

Food inflation eases to 10.63%: Food inflation eased to 10.63% for the week ended November 5 even as prices of agricultural items, barring onions and wheat, continued to rise on an annual basis. Food inflation, as measured by the Wholesale Price Index (WPI), stood at 11.81% in the previous week ended October 29. The rate of price rise of food items stood at 11.41% in the corresponding week of the previous year.

Fitch marks Negative outlook for most telcos in 2012: Fitch Ratings said in a special report released today that the 2012 outlook for most Indian telecommunications operators (telcos) is negative, as the nationally-owned and six private telcos will continue to suffer operating losses. Fitch expects that the fifth- and sixth-largest operators may manage to break even in EBITDA terms in 2012.

Govt to take decision on sugar exports on Nov 21.

FII cap in govt, corp debt raised by $5 bn each: The Finance Ministry increased the investment limit for foreign institutional investors (FIIs) in government securities (G-secs) and corporate bonds by $5 billion each, a move that will enhance capital flows and increase the availability of resources for Indian Corporates. The FIIs can now invest up to $15 billion in G-secs and $20 billion in corporate bonds. The investment limit in long-term infrastructure bonds, however, has been kept unchanged at $25 billion. A notification giving effect to the new FII investment ceilings will be issued by market regulator Securities and Exchange Board of India (Sebi) soon.

Suzlon promoters sell 2 pct in firm: The controlling shareholders in Indian wind turbine maker Suzlon Energy on Thursday sold 37.01 million shares, or 2.08 percent in the company bringing down the promoters' stake to just under 53 percent.

Cabinet likely to discuss commerce ministry note on 51% FDI in multi-brand retail next week

Lupin Acquires Japanese Injectables: Lupin Pharmaceuticals has acquired I rom Holdings or IP, an injectable maker from Japan. Kyowa Pharmaceutical, the Japanese subsidiary of Lupin, will acquire 100 % shares of the company

JSW Energy Ltd after the regulatory authorities have rejected JSW Energy's plea to revise power tariffs because of difficulty in procuring fuel from Indonesia, a decision that analysts said was a setback for other companies seeking higher electricity rates on similar grounds.

HCC Ltd after the company has discontinued three of its verticals - thermal power, ports and hydrocarbons - that were started nearly a year ago. The contribution of these verticals to HCC's current order book of roughly Rs 18,000 crore is insignificant.

Everonn Education Ltd after India's largest technology-enabled education firm, is getting ready to enroll more global marquee investors. Global private equity majors such as Carlyle Group and New York Life Capital Partners are in advance talks with the company to pick up a stake, according to a report.

Reliance Infrastructure Ltd after the company said it has repaid external commercial borrowings worth USD 360 million (about Rs 1,815 crore). These borrowings were raised by the company in November 2006.

Finance Ministry -Sources say Rs 30,000 crore fuel subsidy likely in second budget supplementary -Second budget supplementary to be tabled in winter session -Rs 14,000 crore bank recap also likely in second supplementary

OMDC (Orissa Minerals Development Company): Board to meet consider stock split

MERC rejects JSW Energy’s plea to raise tariffs – Reports

HCC to discontinue thermal power, ports & hydrocarbon verticals (ET)

DoT wing asks to cancel Idea’s overlapping licences (ET)

Zee Entertainment in talks with Time Warner & Comcast corp to expand distribution & presence in USA (DNA)

Road ministry plans to remove cap on number of bidders for EPC projects (FE)

Railways may seek new bids for engine projects (Mint)

GAIL, HPCL ink pact with WB govt for supplying coalbed methane gas (Mint)

Reliance Infrastructure says repaid Rs 1,815 crore overseas debt on Wednesday

Empowered Committee of Secretaries recommends rejecting RIL's bid for two blocks