The key benchmark indices may fall tracking weak global stocks after a recent sharp surge with indices scaling more than 25 month closing high backed by expectations of good fourth quarter result by India Inc and heavy foreign fund inflows. Meanwhile, the government will unveil data on some wholesale price indices for the year through 27 March 2010 viz. the food price index, the primary articles index and the fuel price index at about 12:00 IST today, 8 April 2010.
Asian stocks fell for the first time in six days on Thursday after Japanese machinery orders unexpectedly dropped and U.S. consumer credit slumped more than economists forecast. The key benchmark indices in China, Hong Kong, Indonesia, Japan, South Korea and Singapore fell by between 0.03% to 0.79%. But Taiwan's Taiwan Weighted rose 0.13%.
There was zero economic growth in the euro region from October through December, the statistics office said yesterday, after previously reporting a 0.1% expansion.
The European Central Bank will flesh out on Thursday a revamp of its lending rules to help ease the financial squeeze on Greece, while keeping euro zone interest rates at a record low 10%. the focus will remain squarely on what President Jean-Claude Trichet has to say on the subject after the bank's monthly meeting.
US stocks slipped on Wednesday after a senior Federal Reserve member said policy makers should start raising rates to 1% soon and Greek debt concerns. In economic data, mortgage applications ticked up just 0.2% last week as a spike in mortgage rates clipped demand for refinancing. Another report showed consumer borrowing fell by $11.5 billion in February, much weaker than the $500 million gain expected.
The Dow Jones fell 72.47 points or 0.86% to 10,897.52. The Nasdaq declined 5.65 points or 0.23% to 2431.16 and the S&P 500 fell 6.99 points or 0.59% to 1182.45.
The U.S. government will encourage China, India, Brazil and other fast-growing markets to buy more American goods as part of its bid to double exports in five years, Under Secretary for International Trade Francisco Sanchez said on Wednesday.
Close home, the Reserve Bank of India will have to further tighten monetary policy on 20 April 2010 if prices continue to rise, as expected, from 9.89% headline inflation in February, the chief statistician said on Wednesday. The Reserve Bank of India (RBI) will review its monetary policy on 20 April 2010. Sen, however, declined to specify what policy actions were required, saying it was for the central bank to decide.
The four-month spell of wholesale price inflation above the RBI's perceived comfort zone of 5% prompted the central bank in March to unexpectedly hike its key lending rates by 25 basis points.The Reserve Bank last month warned of inflationary pressures from higher capacity utilisation and rising commodity and energy costs.
Sen said WPI inflation in March was likely to be higher than February's 9.89%, partly due to a low base effect. Headline inflation could start easing from April when the base effect starts wearing off, he added, noting that food price inflation has already started moderating. The inflation for the month of March 2010 will be announced by the government on 12 April 2010. The food price index rose an annual 16.35% in the 12 months to 20 March 2010, above the previous week's reading of 16.22%. Fuel inflation rose 12.75%in the same period from the previous week's 12.68% rise. Sen said non-agricultural inflation was still accelerating.
Stock-specific action may rule the roost in the near term based on expectations of Q4 March 2010 results. IT bellwether Infosys kickstarts the reporting season on 13 April 2010.
The BSE Sensex vaulted 7,819.27 points or 80.5% in the year ended March 2010 (FY 2010) helped by heavy purchases by foreign institutional investors. As per data from the stock exchanges, foreign institutional investors (FIIs) bought stocks worth a net Rs 14,792.31 crore in March 2010. Indian companies raised over Rs 47,800 crore through public offers during the fiscal 2009-2010, following buoyant secondary market.
Global credit rating agency Standard & Poor's, last month, revised the outlook on India to stable from negative due to improved government finances.
The forecast for the southwest monsoon for 2010 is the next major trigger for the market. Good rains this year after last year's drought will boost farm output and rural incomes. But another monsoon failure will add to inflationary pressure which in turn may hamper the current strong economic rebound. The June-September monsoon season is important for India as about 60% of the country's farmlands are rain-fed and more than half of the workforce is employed in the agriculture sector.
Tokyo-based Research Institute for Global Change has predicted normal monsoon rains in India for the current year. Agriculture secretary P K Basu said in a media interview on Monday, 5 April 2010, that early signs indicate normal monsoon rains this year. The Indian Meteorological Department (IMD) issues a monsoon forecast, usually in the second half of April after considering weather observations in different parts of the world and extrapolating statistical data.
A weakening El Nino is a positive sign for the monsoon, Ajit Tyagi, director general at the India Meteorological Department, said on 18 March 2010. The cyclical heating of the Pacific Ocean known as El Nino will continue to fade, US forecasters said last month. The weather event, which occurs every four to seven years, brings more rain to South America and less precipitation to Asia.
Meanwhile, abnormally hot weather and lower than expected rains are reportedly raising the spectre of India facing another water shortage in the coming kharif season, said a senior official of the Indian Meteorological Department, the country's weather forecasting agency. Rains have been 66% lower than normal in March. Temperature has been 4 to 7 degrees above normal, making it the hottest March in almost a decade report said.
The key benchmark indices registered small gains in what was a highly volatile trading session on Wednesday, 7 April 2010. The market attained its highest closing level in more than 25 months. The barometer index BSE Sensex fell below the psychological 18,000 level after racing above that level in early afternoon trade. The BSE 30-share Sensex rose 28.65 points or 0.16% to 17,970.02, its highest closing level since 19 February 2008 on that day.
As per provisional figures on NSE, foreign funds bought shares worth Rs 338.78 crore and domestic funds sold shares worth Rs 23.43 crore on Wednesday.
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Thursday, April 8, 2010
DAILY NEWS ROUNDUP -APRIL 8, 2010
Reliance Industries has implemented and commissioned 1MW solar Photo Voltaic power plant at Thyagaraj Stadium in Delhi. (BL)
NTPC is planning to enter into large volume contracts for coal supply. (BL)
Cabinet to take SAIL disinvestment proposal today. (BS)
NTPC to build power plant in Bangladesh. (BS)
Indian Hotel Company may scout for acquisitions for expanding operations overseas in the near future. (BL)
M&M raises utility vehicle prices by up to Rs26,100. (ET)
JSW Steel has earmarked a capex of Rs70bn for CY11. (ET)
National Pharmaceutical Pricing Authority has slapped a notice on Piramal Healthcare for selling its 10-ml pack of Pred Acetate without getting regulator’s prior approval. (BS)
Canara Bank may consider raising funds through QIP this year. (BL)
Andhra Bank total business grows 29% yoy in FY10. (BL)
Emami to set up power plant in Ethiopia. (ET)
NHPC would commission a 700MW project during FY11. (BL)
Kingfisher Airlines set to float US$100mn GDR issue. (BL)
Natco Pharma launches Bendit, drug for the treatment of Chronic Lymphyocyctic Leukemia. (BL)
BGR Energy bags an order worth Rs990mn from PowerGrid. (BL)
Moser Bear commission solar farm in Maharashtra. (BL)
JK Paper to expand capacity, invest Rs15bn. (BL)
Nestle to offer more ‘Indianised’ products. (ET)
Essar Energy may launch the biggest ever IPO by an Indian company as early as next week to raise US$2.5bn. (ET)
Blackstone group invest Rs2.25bn in Jagran Media. (BL)
Ackruti City plans to raise Rs2.5bn for its proposed real estate venture capital fund. (BS)
The government is expected to take a decision on the proposal to ban FDI in tobacco products. (ET)
Government is likely to set up a committee of Group of Minister to take a final decision on divesting stake in BSNL. (BS)
India has set up a panel to specify audit norms for all communication networks. (ET)
Tea output rises 23%, exports up 11% in Jan-Feb 2010. (BL)
NTPC is planning to enter into large volume contracts for coal supply. (BL)
Cabinet to take SAIL disinvestment proposal today. (BS)
NTPC to build power plant in Bangladesh. (BS)
Indian Hotel Company may scout for acquisitions for expanding operations overseas in the near future. (BL)
M&M raises utility vehicle prices by up to Rs26,100. (ET)
JSW Steel has earmarked a capex of Rs70bn for CY11. (ET)
National Pharmaceutical Pricing Authority has slapped a notice on Piramal Healthcare for selling its 10-ml pack of Pred Acetate without getting regulator’s prior approval. (BS)
Canara Bank may consider raising funds through QIP this year. (BL)
Andhra Bank total business grows 29% yoy in FY10. (BL)
Emami to set up power plant in Ethiopia. (ET)
NHPC would commission a 700MW project during FY11. (BL)
Kingfisher Airlines set to float US$100mn GDR issue. (BL)
Natco Pharma launches Bendit, drug for the treatment of Chronic Lymphyocyctic Leukemia. (BL)
BGR Energy bags an order worth Rs990mn from PowerGrid. (BL)
Moser Bear commission solar farm in Maharashtra. (BL)
JK Paper to expand capacity, invest Rs15bn. (BL)
Nestle to offer more ‘Indianised’ products. (ET)
Essar Energy may launch the biggest ever IPO by an Indian company as early as next week to raise US$2.5bn. (ET)
Blackstone group invest Rs2.25bn in Jagran Media. (BL)
Ackruti City plans to raise Rs2.5bn for its proposed real estate venture capital fund. (BS)
The government is expected to take a decision on the proposal to ban FDI in tobacco products. (ET)
Government is likely to set up a committee of Group of Minister to take a final decision on divesting stake in BSNL. (BS)
India has set up a panel to specify audit norms for all communication networks. (ET)
Tea output rises 23%, exports up 11% in Jan-Feb 2010. (BL)
Wednesday, April 7, 2010
DAILY NEWS ROUNDUP -APRIL 7, 2010
NTPC's plan to enter nuclear power generation business might take off soon, with the government planning to allocate a site for the development of 2X700mw capacity to the proposed NTPC-NPCIL JV. (FE)
NTPC plans to borrow Rs200bn in financial year 2010-11, 70% of which has already been tied up, as it quadruples generation capacity. (BS)
BHEL along with two of its other JV partners are expected to commence work on the Rs25bn Integrated Coal Gassification Combined Cycle power plant at Vijayawada in Andhra Pradesh in June 2010. (BS)
BHEL’s Tiruchy unit plans to increase the R&D spend by 73% to Rs4bn. (BS)
Tata Steel reported 18% growth in sales to 6.17mt during the fiscal 2010, against 5.23mt in the same period last year. (BL)
IOC refineries have achieved overall capacity utilization of 102% during 2009-10. (BL)
Wipro plans to exit its babycare and vanaspati business. (BS)
Wipro Technologies, the global IT services business of Wipro, announced that it has signed a partnership agreement with Philips to offer Blu-ray middleware and solution development services around Philips' developed Blu-ray technology. (BL)
Malvinder and Shivinder Singh stepped down from the board of Religare Enterprises to focus on the group’s healthcare business, handing over charge of the financial services firm to the family’s trusted aide Sunil Godhwani. (ET)
Godrej Consumer Products acquired the Indonesian household product maker PT Megasari Mamsur, as well as its distribution arm, PT Intrasari Raya for Rs12bn in an all cash deal. (BS)
Jindal Power, an arm of JSPL, raised Rs100.6bn loan for its 2,400MW Tamnar power project in Raigarh, Chhattisgarh. (BS)
Unitech has formed a panel of five board members to push the demerger of its non-core business into a separate entity. (ET)
In a bid to expand its haircare portfolio, Kolkata-based Emami is test-marketing a few products, including a shampoo, in Andhra Pradesh. (BS)
ACC plans to ramp up its annual production capacity to 30mtpa by the end of this financial year through brownfield projects. (BS)
ICRA Online, the wholly-owned subsidiary of ICRA, has partnered with the UK-based IDEAcarbon to offer carbon rating services in India. (BL)
Suzlon secured an order from the Gujarat State Fertilizers & Chemicals to set up, operate and maintain an 18MW wind energy project at Adodar in Porbandar district. (BL)
Punj Lloyd bagged two orders worth Rs2.4bn for a processing unit and setting up offsite facilities at the Mangalore Refinery. (FE)
Simplex Infrastructures secured orders worth Rs21.7bn during fourth quarter of 2009-10 fiscal. (FE)
NMDC will be added to the FTSE All-World Index and FTSE All-Emerging Index effective from the start of trading on April 13, 2010. (FE)
Reliance Power will soon start generating revenues from the sale of electricity as it has started commercial operations of its first unit at Rosa Power Project in Uttar Pradesh. (BS)
Ruchi Group has signed a pact with Japanese conglomerate Mitsui to form a JV company for setting up steel service centers across the country to cater to automotive, white goods and construction sector. (FE)
Coal India plans to invest Rs60bn in foreign acquisitions this financial year and is currently evaluating 10 overseas proposals that include five proposals for equity infusion. (BS)
Coal India’s profit after tax jumped 300% to Rs83bn last year, compared to Rs20bn during 2008-09. (BS)
Coal India plans to step up its focus on value addition and plans to invest US$480mn in setting up 20 washeries with a capacity of 111.1mt over the next two to three years. (BL)
Essar Oil plans to lay a 160-km pipeline from Durgapur to Kolkata to transport gas from its CBM blocks to consumers in West Bengal. (BS)
Dish TV plans to expand its subscriber base to 10mn in one year from 7mn today. (BS)
Temasek Holdings Pte is seeking stakes in Indian power producers, including GMR Group, as they double capacity to meet demand. (BS)
Sponge iron industry in Chhattisgarh plunged into raw material crisis as production in nearly half the units had been suspended after disruption in the supply of iron-ore from Orissa. (BS)
DTH subscribers are likely to double in the next 2 years, up from 20mn at present. (BS)
The online auction system for third generation (3G) and broadband wireless access (BWA) spectrum will prevent firms from placing unrealistic bids. (BS)
Private and cooperative sugar mills have appealed to the Centre to reconsider its decision on extending duty-free import of raw sugar for bulk consumers till April 30, 2011. (BS)
Data released by TRAI, in the quarter ended December 2009, indicated a rapid increase in the subscriber base from rural areas. (BS)
The government is planning to link domestic coal prices to the gross calorific value of the product, a step which may lead to an increase in prices of the fuel. (BS)
The biofuel industry is finding it tough to remain in business, with both government pricing and raw material availability working against them. (BS)
In its endeavour to make the public issue process more efficient, SEBI has proposed to reduce the time between the closure of the issue and listing to 12 days from May 1. (BS)
India and the US on Tuesday set up a Cabinet level economic partnership forum that is expected to encourage massive investment by US companies in Indian infrastructure, while the US will want to be reciprocated by deeper financial sector reforms. (FE)
NTPC plans to borrow Rs200bn in financial year 2010-11, 70% of which has already been tied up, as it quadruples generation capacity. (BS)
BHEL along with two of its other JV partners are expected to commence work on the Rs25bn Integrated Coal Gassification Combined Cycle power plant at Vijayawada in Andhra Pradesh in June 2010. (BS)
BHEL’s Tiruchy unit plans to increase the R&D spend by 73% to Rs4bn. (BS)
Tata Steel reported 18% growth in sales to 6.17mt during the fiscal 2010, against 5.23mt in the same period last year. (BL)
IOC refineries have achieved overall capacity utilization of 102% during 2009-10. (BL)
Wipro plans to exit its babycare and vanaspati business. (BS)
Wipro Technologies, the global IT services business of Wipro, announced that it has signed a partnership agreement with Philips to offer Blu-ray middleware and solution development services around Philips' developed Blu-ray technology. (BL)
Malvinder and Shivinder Singh stepped down from the board of Religare Enterprises to focus on the group’s healthcare business, handing over charge of the financial services firm to the family’s trusted aide Sunil Godhwani. (ET)
Godrej Consumer Products acquired the Indonesian household product maker PT Megasari Mamsur, as well as its distribution arm, PT Intrasari Raya for Rs12bn in an all cash deal. (BS)
Jindal Power, an arm of JSPL, raised Rs100.6bn loan for its 2,400MW Tamnar power project in Raigarh, Chhattisgarh. (BS)
Unitech has formed a panel of five board members to push the demerger of its non-core business into a separate entity. (ET)
In a bid to expand its haircare portfolio, Kolkata-based Emami is test-marketing a few products, including a shampoo, in Andhra Pradesh. (BS)
ACC plans to ramp up its annual production capacity to 30mtpa by the end of this financial year through brownfield projects. (BS)
ICRA Online, the wholly-owned subsidiary of ICRA, has partnered with the UK-based IDEAcarbon to offer carbon rating services in India. (BL)
Suzlon secured an order from the Gujarat State Fertilizers & Chemicals to set up, operate and maintain an 18MW wind energy project at Adodar in Porbandar district. (BL)
Punj Lloyd bagged two orders worth Rs2.4bn for a processing unit and setting up offsite facilities at the Mangalore Refinery. (FE)
Simplex Infrastructures secured orders worth Rs21.7bn during fourth quarter of 2009-10 fiscal. (FE)
NMDC will be added to the FTSE All-World Index and FTSE All-Emerging Index effective from the start of trading on April 13, 2010. (FE)
Reliance Power will soon start generating revenues from the sale of electricity as it has started commercial operations of its first unit at Rosa Power Project in Uttar Pradesh. (BS)
Ruchi Group has signed a pact with Japanese conglomerate Mitsui to form a JV company for setting up steel service centers across the country to cater to automotive, white goods and construction sector. (FE)
Coal India plans to invest Rs60bn in foreign acquisitions this financial year and is currently evaluating 10 overseas proposals that include five proposals for equity infusion. (BS)
Coal India’s profit after tax jumped 300% to Rs83bn last year, compared to Rs20bn during 2008-09. (BS)
Coal India plans to step up its focus on value addition and plans to invest US$480mn in setting up 20 washeries with a capacity of 111.1mt over the next two to three years. (BL)
Essar Oil plans to lay a 160-km pipeline from Durgapur to Kolkata to transport gas from its CBM blocks to consumers in West Bengal. (BS)
Dish TV plans to expand its subscriber base to 10mn in one year from 7mn today. (BS)
Temasek Holdings Pte is seeking stakes in Indian power producers, including GMR Group, as they double capacity to meet demand. (BS)
Sponge iron industry in Chhattisgarh plunged into raw material crisis as production in nearly half the units had been suspended after disruption in the supply of iron-ore from Orissa. (BS)
DTH subscribers are likely to double in the next 2 years, up from 20mn at present. (BS)
The online auction system for third generation (3G) and broadband wireless access (BWA) spectrum will prevent firms from placing unrealistic bids. (BS)
Private and cooperative sugar mills have appealed to the Centre to reconsider its decision on extending duty-free import of raw sugar for bulk consumers till April 30, 2011. (BS)
Data released by TRAI, in the quarter ended December 2009, indicated a rapid increase in the subscriber base from rural areas. (BS)
The government is planning to link domestic coal prices to the gross calorific value of the product, a step which may lead to an increase in prices of the fuel. (BS)
The biofuel industry is finding it tough to remain in business, with both government pricing and raw material availability working against them. (BS)
In its endeavour to make the public issue process more efficient, SEBI has proposed to reduce the time between the closure of the issue and listing to 12 days from May 1. (BS)
India and the US on Tuesday set up a Cabinet level economic partnership forum that is expected to encourage massive investment by US companies in Indian infrastructure, while the US will want to be reciprocated by deeper financial sector reforms. (FE)
Tuesday, April 6, 2010
INDIAN INDICES TO EXTEND GAINS
Headlines for the day:
Green nod sought for projects worth Rs60,000 cr
Air India board to discuss international base plan
Biocon buys out Cuban firm in JV, hopes to break even in 5 yrs
Events for the day:
Major corporate action
Ex-date for dividend of Wyeth
Ex-date for interim dividend of Arss Infrastructure Projects
For more events, log on to Sharekhan.com
Listing of equity shares of Persistent Systems Ltd
Results: GM Breweries
Pre-market report
Global signals
The European markets will resume today after a long weekend, as it was closed on Friday and Monday.
The US stocks rose on Monday, the first trading day on the Wall Street after government data last week showed the economy added the largest number of jobs in three years, boosting hopes the recovery was accelerating.
In today's trade, the Asian markets were trading on a mixed note. At the time of writing this report, SGX Nifty was trading 22 point higher. The Hang Seng is closed today i.e. April 6, 2010.
Indian markets
After the yesterday's rally in the US markets and the positive signals that are coming from the global markets, the Indian stocks are likely to open higher. For Nifty, 5400 and for Sensex, 18000 are the psychological levels. As the investors have pushed the Indian shares and the rupee to multi-month highs expecting a sustained earnings and economic growth, if the FIIs flow continues the market may extend more gains.
Commodity cues
In the commodity space, the crude oil prices posted gains, with the Nymex light crude oil for the May series advanced by $1.75 per barrel, whereas in the metals space, the Comex Gold for the May series rose by $7.80 and the Comex Silver for the May series was up by $0.29 to a troy ounce respectively.
Daily trend of FII/MF investment in equities
On April 05, 2010, FIIs were the net buyers of the Indian stocks to the tune of Rs1484.20 crore, whereas the domestic mutual funds, on March 30, 2010, were the net sellers of the stocks to the tune of Rs100.20 crore.
Green nod sought for projects worth Rs60,000 cr
Air India board to discuss international base plan
Biocon buys out Cuban firm in JV, hopes to break even in 5 yrs
Events for the day:
Major corporate action
Ex-date for dividend of Wyeth
Ex-date for interim dividend of Arss Infrastructure Projects
For more events, log on to Sharekhan.com
Listing of equity shares of Persistent Systems Ltd
Results: GM Breweries
Pre-market report
Global signals
The European markets will resume today after a long weekend, as it was closed on Friday and Monday.
The US stocks rose on Monday, the first trading day on the Wall Street after government data last week showed the economy added the largest number of jobs in three years, boosting hopes the recovery was accelerating.
In today's trade, the Asian markets were trading on a mixed note. At the time of writing this report, SGX Nifty was trading 22 point higher. The Hang Seng is closed today i.e. April 6, 2010.
Indian markets
After the yesterday's rally in the US markets and the positive signals that are coming from the global markets, the Indian stocks are likely to open higher. For Nifty, 5400 and for Sensex, 18000 are the psychological levels. As the investors have pushed the Indian shares and the rupee to multi-month highs expecting a sustained earnings and economic growth, if the FIIs flow continues the market may extend more gains.
Commodity cues
In the commodity space, the crude oil prices posted gains, with the Nymex light crude oil for the May series advanced by $1.75 per barrel, whereas in the metals space, the Comex Gold for the May series rose by $7.80 and the Comex Silver for the May series was up by $0.29 to a troy ounce respectively.
Daily trend of FII/MF investment in equities
On April 05, 2010, FIIs were the net buyers of the Indian stocks to the tune of Rs1484.20 crore, whereas the domestic mutual funds, on March 30, 2010, were the net sellers of the stocks to the tune of Rs100.20 crore.
Monday, April 5, 2010
FOLLOW UP - KOLTE PATIL
OUR FREE CALL KOLTE PATIL HAS GIVEN @55.00 ON 1.04.2010 AND TODAY ITS MADE UPPER CURCUIT CMP: 67.70..NOW WE ARE REQUESTING TO BOOK FULL PROFIT AND EXIT FROM THIS STOCK.
Sunday, April 4, 2010
DAILY NEWS ROUNDUP -APRIL 5, 2010
Maruti Suzuki raised prices from Rs1,000 on the A-Star to Rs9,000 on the SX4 with immediate effect. (BS)
SBI has extended its teaser home loan plan till April 30. (BL)
JSW Steel plans to expand the manufacturing capacity at its Vijayanagar plant in Karnataka from current 10mn tons to 16mn tons with an investment outlay of US$5-6bn over a period of three years. (FE)
Bajaj Auto reported a 85.12% jump in its motorcycle sales at 244,828 units in March. (BS)
JSW Steel plans to invest around Rs250bn in expanding the capacity of its Bellary plant in Karnataka by 6mn tons to 16mn tons in next 3 years. (BS)
Max New York Life gives 4% stake worth Rs4bn to Axis Bank for just under Rs800mn as part of a 10-year exclusive distribution agreement. (ET)
ONGC plans to sell gas from its C-Series field at US$5.5 per mBtu, a 30% premium over the rate at which RIL sells gas produced from its KG-D6 gas block. (BS)
NTPC has been drawing water from a canal in Chhattisgarh for the last 11 years without any agreement, reported the Comptroller and Auditor General. (BS)
CanvasM, a JV between Tech Mahindra and Motorola plans to launch 6,000 new indigenously developed applications for mobile phones. (BS)
BHEL will invest Rs6.9bn to set up a new piping plant at Thirumayam and expand its boiler division. (ET)
BHEL plans to invest Rs750mn in its Bangalore-based divisions to augment its manufacturing capacity from 15,000MW to 20,000MW by 2011-12. (BS)
Media report suggest that Reliance Industries may not renew a contract to import Iranian crude oil from this financial year. (FE)
M&M is in negotiations to buy a majority stake in Reva, or enter into a strategic alliance with the electric car maker for an investment of ~Rs1bn. (ET)
Reliance Capital is in talks with Swiss Re for a proposed foray into health insurance. (ET)
Promoters of Patni Computer are in discussions with international and local firms in a fresh attempt to sell their stakes. (ET)
Drug major AstraZeneca has been ordered to pay attorney’s fees by a US court to Dr Reddy’s Laboratories for bringing a "frivolous" and "baseless" patent infringement suit against the latter. (BS)
Foreign lenders to Wockhardt have succeeded in stalling the debt-ridden pharmaceutical company’s attempts to sell its nutrition business to Abbott Laboratories. (BS)
Ambuja Cements has produced 1.9mn tonnes in March 2010 as against 1.7mn tonnes in the same month last year. (FE)
Tata Power plans to offload its holdings worth nearly Rs17bn in the group’s telecom ventures at cost price as on March 31, 2009. (TOI)
Union Bank of India plans to raise retail term deposit rates by 25 to 50 basis points with effect from Monday. (BS)
Promoters of Bank of Rajasthan have sought more time to file objections to the capital markets regulator’s order charging them with violations of a number of rules. (BS)
ITC has entered the cigar manufacturing business marking its entry into the most sophisticated form of tobacco consumption. (BS)
NMDC raises base ore prices by 34-56%. (BS)
Reliance Infrastructure’s arm completes construction of the first 600MW unit of the Haryana government’s Rajiv Gandhi Khedar Thermal Power Plant in Hisar. (BS)
Welspun-Gujarat is close to buying a majority stake in a Saudi Arabia-based company with an annual manufacturing capacity of 0.3mn tonne of pipes, primarily for the oil and gas industry. (TOI)
Nalco achieves metal production of 4.31 lakh tons in 2009-10, against 3.61 lakh tons last year. (BS)
Nalco is mulling to undertake its third phase expansion envisaging an investment of Rs60bn. (BS)
The Maldives government has shortlisted GMR, consortia of Reliance Infrastructure and GVK Airport Developers to take over Male airport. (BS)
Norwegian Statoil and Brazil's Petrobras quit ONGC’s K-G basin gas block over government delays in approving their participation in the deepwater acreage. (BS)
SAIL, JSW and Essar increased prices of the commodity by up to Rs2,500 per ton. (ET)
Emami looking to buy Amrutanjan, says Emami Chairman. (TOI)
Jet Airways and Gulf Air enters into a code-share agreement which will come into effect from April 12. (ET)
International Finance Corporation, the private financing arm of the World Bank, is expected to pick up about 10% stake in Cholamandalam DBS Finance for Rs1bn. (BL)
Sanofi-Aventis allows Sun Pharma to sell cancer drug. (TOI)
Cinemax aims to touch at least 140 screens nationally and is targeting revenue of Rs2bn this year. (ET)
Dishman Pharma’s SEZ project to finally take off after a delay of over 4 years. (ET)
Marico plans to shut its health & wellness brand Kay0061 Life within a month. (FE)
Gitanjali to cut its presence in US jewellery market. (BS)
Torrent Power begins power distribution in Agra. (BS)
Reliance Life Sciences plans to launch its biosimilar drug to stimulate red blood cell production in Europe within a year. (ET)
Indage Vintners files an application with a division bench of the Bombay High Court challenging an order of a single judge that directed the company to wind up operations. (ET)
HeidelbergCement has earmarked Rs8bn for acquisition of mid-size companies in India as it plans to double annual capacity to 6 mt in the next two years. (ET)
Liberty Shoes plans to open 60 outlets, including 10 overseas stores, this fiscal. (BS)
Government may eventually give a financial lifeline to Air India by pumping more funds into the carrier rather than divesting a stake to a strategic investor. (BL)
The DIPP has virtually turned down the proposal of the Department of Pharmaceuticals to cap FDI in the pharma sector at 49% stating that apprehensions about the industry were misplaced. (ET)
The finance ministry proposes to tighten the FDI regime in the country. (BS)
Truck sales rose 99.3% in March to 33,619 units, compared with 16,868 units during the same month last year. (BS)
Bankers are likely to urge the RBI not to hike its key rates and mandatory cash requirement in its April policy. (ET)
Foreign exchange reserves dipped US$1.15bn during the week ended March 26 to touch US$277bn. (ET)
The Government is likely to consider extending export sops selectively after a detailed analysis following evidence that a strong recovery in the external sector was underway. Most of the sops given to exporters to tide over the global slowdown, including the ones announced earlier this week, are valid only till March 31, 2010. (ET)
More than a dozen foreign entities, which invest in shares of Indian companies using the Mauritius route, are planning to move the Authority for Advance Rulings (AAR) for clarity on the issue of tax liability in India. (ET)
Uttarakhand has demanded 1,000MW of free power from the Centre for shelving the 480MW Pala Maneri and 381MW Bhaironghati projects. (BS)
Primary food inflation was up 16.35% yoy for the week ended March 20, after hitting a four-month low of 16.22% in the preceding week. (BS)
Mutual fund industry's average assets under management fell 5% in March as banks and corporates withdrew from funds to feed their year-end liquidity needs. (BL)
Imports during February up 66% yoy to US$25bn. (BL)
PSU oil refiners' fuel loss may touch Rs900bn. (BL)
TRAI set to deliver recommendations that could permanently alter the structure, pricing and methodology for spectrum allocation; it could also pave way for M&As which, according to an April 2008 guideline, are not allowed till early 2011. (TOI)
SBI has extended its teaser home loan plan till April 30. (BL)
JSW Steel plans to expand the manufacturing capacity at its Vijayanagar plant in Karnataka from current 10mn tons to 16mn tons with an investment outlay of US$5-6bn over a period of three years. (FE)
Bajaj Auto reported a 85.12% jump in its motorcycle sales at 244,828 units in March. (BS)
JSW Steel plans to invest around Rs250bn in expanding the capacity of its Bellary plant in Karnataka by 6mn tons to 16mn tons in next 3 years. (BS)
Max New York Life gives 4% stake worth Rs4bn to Axis Bank for just under Rs800mn as part of a 10-year exclusive distribution agreement. (ET)
ONGC plans to sell gas from its C-Series field at US$5.5 per mBtu, a 30% premium over the rate at which RIL sells gas produced from its KG-D6 gas block. (BS)
NTPC has been drawing water from a canal in Chhattisgarh for the last 11 years without any agreement, reported the Comptroller and Auditor General. (BS)
CanvasM, a JV between Tech Mahindra and Motorola plans to launch 6,000 new indigenously developed applications for mobile phones. (BS)
BHEL will invest Rs6.9bn to set up a new piping plant at Thirumayam and expand its boiler division. (ET)
BHEL plans to invest Rs750mn in its Bangalore-based divisions to augment its manufacturing capacity from 15,000MW to 20,000MW by 2011-12. (BS)
Media report suggest that Reliance Industries may not renew a contract to import Iranian crude oil from this financial year. (FE)
M&M is in negotiations to buy a majority stake in Reva, or enter into a strategic alliance with the electric car maker for an investment of ~Rs1bn. (ET)
Reliance Capital is in talks with Swiss Re for a proposed foray into health insurance. (ET)
Promoters of Patni Computer are in discussions with international and local firms in a fresh attempt to sell their stakes. (ET)
Drug major AstraZeneca has been ordered to pay attorney’s fees by a US court to Dr Reddy’s Laboratories for bringing a "frivolous" and "baseless" patent infringement suit against the latter. (BS)
Foreign lenders to Wockhardt have succeeded in stalling the debt-ridden pharmaceutical company’s attempts to sell its nutrition business to Abbott Laboratories. (BS)
Ambuja Cements has produced 1.9mn tonnes in March 2010 as against 1.7mn tonnes in the same month last year. (FE)
Tata Power plans to offload its holdings worth nearly Rs17bn in the group’s telecom ventures at cost price as on March 31, 2009. (TOI)
Union Bank of India plans to raise retail term deposit rates by 25 to 50 basis points with effect from Monday. (BS)
Promoters of Bank of Rajasthan have sought more time to file objections to the capital markets regulator’s order charging them with violations of a number of rules. (BS)
ITC has entered the cigar manufacturing business marking its entry into the most sophisticated form of tobacco consumption. (BS)
NMDC raises base ore prices by 34-56%. (BS)
Reliance Infrastructure’s arm completes construction of the first 600MW unit of the Haryana government’s Rajiv Gandhi Khedar Thermal Power Plant in Hisar. (BS)
Welspun-Gujarat is close to buying a majority stake in a Saudi Arabia-based company with an annual manufacturing capacity of 0.3mn tonne of pipes, primarily for the oil and gas industry. (TOI)
Nalco achieves metal production of 4.31 lakh tons in 2009-10, against 3.61 lakh tons last year. (BS)
Nalco is mulling to undertake its third phase expansion envisaging an investment of Rs60bn. (BS)
The Maldives government has shortlisted GMR, consortia of Reliance Infrastructure and GVK Airport Developers to take over Male airport. (BS)
Norwegian Statoil and Brazil's Petrobras quit ONGC’s K-G basin gas block over government delays in approving their participation in the deepwater acreage. (BS)
SAIL, JSW and Essar increased prices of the commodity by up to Rs2,500 per ton. (ET)
Emami looking to buy Amrutanjan, says Emami Chairman. (TOI)
Jet Airways and Gulf Air enters into a code-share agreement which will come into effect from April 12. (ET)
International Finance Corporation, the private financing arm of the World Bank, is expected to pick up about 10% stake in Cholamandalam DBS Finance for Rs1bn. (BL)
Sanofi-Aventis allows Sun Pharma to sell cancer drug. (TOI)
Cinemax aims to touch at least 140 screens nationally and is targeting revenue of Rs2bn this year. (ET)
Dishman Pharma’s SEZ project to finally take off after a delay of over 4 years. (ET)
Marico plans to shut its health & wellness brand Kay0061 Life within a month. (FE)
Gitanjali to cut its presence in US jewellery market. (BS)
Torrent Power begins power distribution in Agra. (BS)
Reliance Life Sciences plans to launch its biosimilar drug to stimulate red blood cell production in Europe within a year. (ET)
Indage Vintners files an application with a division bench of the Bombay High Court challenging an order of a single judge that directed the company to wind up operations. (ET)
HeidelbergCement has earmarked Rs8bn for acquisition of mid-size companies in India as it plans to double annual capacity to 6 mt in the next two years. (ET)
Liberty Shoes plans to open 60 outlets, including 10 overseas stores, this fiscal. (BS)
Government may eventually give a financial lifeline to Air India by pumping more funds into the carrier rather than divesting a stake to a strategic investor. (BL)
The DIPP has virtually turned down the proposal of the Department of Pharmaceuticals to cap FDI in the pharma sector at 49% stating that apprehensions about the industry were misplaced. (ET)
The finance ministry proposes to tighten the FDI regime in the country. (BS)
Truck sales rose 99.3% in March to 33,619 units, compared with 16,868 units during the same month last year. (BS)
Bankers are likely to urge the RBI not to hike its key rates and mandatory cash requirement in its April policy. (ET)
Foreign exchange reserves dipped US$1.15bn during the week ended March 26 to touch US$277bn. (ET)
The Government is likely to consider extending export sops selectively after a detailed analysis following evidence that a strong recovery in the external sector was underway. Most of the sops given to exporters to tide over the global slowdown, including the ones announced earlier this week, are valid only till March 31, 2010. (ET)
More than a dozen foreign entities, which invest in shares of Indian companies using the Mauritius route, are planning to move the Authority for Advance Rulings (AAR) for clarity on the issue of tax liability in India. (ET)
Uttarakhand has demanded 1,000MW of free power from the Centre for shelving the 480MW Pala Maneri and 381MW Bhaironghati projects. (BS)
Primary food inflation was up 16.35% yoy for the week ended March 20, after hitting a four-month low of 16.22% in the preceding week. (BS)
Mutual fund industry's average assets under management fell 5% in March as banks and corporates withdrew from funds to feed their year-end liquidity needs. (BL)
Imports during February up 66% yoy to US$25bn. (BL)
PSU oil refiners' fuel loss may touch Rs900bn. (BL)
TRAI set to deliver recommendations that could permanently alter the structure, pricing and methodology for spectrum allocation; it could also pave way for M&As which, according to an April 2008 guideline, are not allowed till early 2011. (TOI)
WEEKLY NEWSLETTER- APRIL 4 , 2010
After making new 52-week highs the main indices have yet again struggled for direction amid lack of follow-through buying. This has happened despite FII inflows having been positive and stable global markets. Economic reports, both local as well as global point to acceleration in the recovery process. Among the pressure points include high unemployment in the US and fiscal mess in Europe. Also, Japan continues to grapple with deflation and China is facing a potential bubble.
As far as India is concerned, things appear to be quite benign. And, though inflation remains a big worry along with its adverse fallout on interest rates, the policymakers are likely to be pro-active enough to prevent significant mishaps. The immediate catalyst for our market, as also for global equities will be the latest quarterly numbers and guidance from corporates for the coming quarters.
The markets are looking for further improvement in the earnings outlook. Therefore, any material disappointment on this front may lead to some cooling though there is no need to panic as such. The bias remains in favour of the bulls but some concerns prevail on valuations, which may keep the market in a limbo for a while before the bulls recharge the rally. So, it is going to be testing times and we would urge you to stay on sidelines before the clouds clear up a bit more.
As far as India is concerned, things appear to be quite benign. And, though inflation remains a big worry along with its adverse fallout on interest rates, the policymakers are likely to be pro-active enough to prevent significant mishaps. The immediate catalyst for our market, as also for global equities will be the latest quarterly numbers and guidance from corporates for the coming quarters.
The markets are looking for further improvement in the earnings outlook. Therefore, any material disappointment on this front may lead to some cooling though there is no need to panic as such. The bias remains in favour of the bulls but some concerns prevail on valuations, which may keep the market in a limbo for a while before the bulls recharge the rally. So, it is going to be testing times and we would urge you to stay on sidelines before the clouds clear up a bit more.
WEEKLY STOCK TO WATCH
1.Buy Raymond
2.Buy Sintex Industries
3.Buy Hero Honda
4.Buy Indiabulls Real Estate
5.Buy SBI
2.Buy Sintex Industries
3.Buy Hero Honda
4.Buy Indiabulls Real Estate
5.Buy SBI
Wednesday, March 31, 2010
FREE CALL :- KOLTE PATIL DEVELOPERS
Investors with short-term trading perspective can buy the stock of Kolte-Patil Developers. The stock is in an intermediate-term uptrend since last March. Following a short-lived correction last June, the stock has been moving sideways with an upward bias. Formation of higher troughs and higher peaks over the last six months is a positive from the intermediate-term perspective. The recent correction in the stock from its January peak halted just above its intermediate-term uptrend line as well as its 200-day exponential moving average.
The stock is also halting at the 38.2 per cent retracement of its uptrend from March 2009 lows, which denotes strength. The 10-day rate of change oscillator is just moving up towards the zero line while the 14-day relative strength index is poised at 49 indicating that this could be the beginning of a short-term up-move in the stock. The current up-move in the stock that commenced on Monday has the potential to take the stock price higher to Rs 58 or Rs 62 in the near-term. Investors can buy the stock with stop at Rs 54.5.
The stock is also halting at the 38.2 per cent retracement of its uptrend from March 2009 lows, which denotes strength. The 10-day rate of change oscillator is just moving up towards the zero line while the 14-day relative strength index is poised at 49 indicating that this could be the beginning of a short-term up-move in the stock. The current up-move in the stock that commenced on Monday has the potential to take the stock price higher to Rs 58 or Rs 62 in the near-term. Investors can buy the stock with stop at Rs 54.5.
DAILY NEWS ROUNDUP -APRIL 1, 2010
Reliance Power plans to re-finance Rs150bn loan. (ET)
L&T has bagged an order of Rs5.6bn from Cognizant Technolgies to construct its IT campus development project in Chennai. (BL)
Videocon, Elcoteq call off stake sale negotiations. (ET)
Ericsson wins a US$1.3bn deal from Bharti Airtel. (BL)
L&T bags order worth Rs11.26bn. (BL)
GAIL to invest Rs60bn on 1,000km pipelines in FY11. (ET)
Sun TV promoter Maran is talking to hedge fund Wilbur Ross to buy its entire 30% stake in SpiceJet. (BS)
India has offered Kuwait stakes in ONGC and IOC plants. (BS)
GMR Infra may tie-up funds for its Rs21.9bn Hyderabad-Vijaywada highway project. (ET)
Indraprastha Gas to borrow debt of Rs10bn for expansion. (BS)
Nirma to merge Nirma Consumer Care with itself. (BS)
Essar Group to decide on buying refineries from Shell by June 2010. (BS)
Areva T&D bags order worth Rs700mn from BHEL. (BL)
Kalpataru Power Transmission subsidiary JMC projects in consortium with SREI Infra, has won a contract from NHAI. (BL)
Hindustan Dorr-Oliver bags orders worth Rs2.68bn. (BL)
Purvankara Projects ties up with Mexico’s Homex for projects in affordable entry level housing segment. (BL)
IRB Infra ties up with several banks to funds its projects. (BL)
Aditya Birla Retail has closed 39 stores including 2/3rd of its outlets in Gujarat. (ET)
Direct tax collections are set to fall short by Rs300bn of the revised target in FY10. (ET)
India’s net earnings from trade in services are headed for a first fall in nine years. (ET)
Himachal Pradesh and Uttarakhand lose tax-haven status. (ET)
February export rose 34% yoy, clocking gains for the four straight month. (ET)
FDI up 15% yoy in February to US$1.72bn. (ET)
Banks get two more years to meet IFRS norms. (ET)
Service tax levy on railway freight deferred to July 1st 2010. (BL)
L&T has bagged an order of Rs5.6bn from Cognizant Technolgies to construct its IT campus development project in Chennai. (BL)
Videocon, Elcoteq call off stake sale negotiations. (ET)
Ericsson wins a US$1.3bn deal from Bharti Airtel. (BL)
L&T bags order worth Rs11.26bn. (BL)
GAIL to invest Rs60bn on 1,000km pipelines in FY11. (ET)
Sun TV promoter Maran is talking to hedge fund Wilbur Ross to buy its entire 30% stake in SpiceJet. (BS)
India has offered Kuwait stakes in ONGC and IOC plants. (BS)
GMR Infra may tie-up funds for its Rs21.9bn Hyderabad-Vijaywada highway project. (ET)
Indraprastha Gas to borrow debt of Rs10bn for expansion. (BS)
Nirma to merge Nirma Consumer Care with itself. (BS)
Essar Group to decide on buying refineries from Shell by June 2010. (BS)
Areva T&D bags order worth Rs700mn from BHEL. (BL)
Kalpataru Power Transmission subsidiary JMC projects in consortium with SREI Infra, has won a contract from NHAI. (BL)
Hindustan Dorr-Oliver bags orders worth Rs2.68bn. (BL)
Purvankara Projects ties up with Mexico’s Homex for projects in affordable entry level housing segment. (BL)
IRB Infra ties up with several banks to funds its projects. (BL)
Aditya Birla Retail has closed 39 stores including 2/3rd of its outlets in Gujarat. (ET)
Direct tax collections are set to fall short by Rs300bn of the revised target in FY10. (ET)
India’s net earnings from trade in services are headed for a first fall in nine years. (ET)
Himachal Pradesh and Uttarakhand lose tax-haven status. (ET)
February export rose 34% yoy, clocking gains for the four straight month. (ET)
FDI up 15% yoy in February to US$1.72bn. (ET)
Banks get two more years to meet IFRS norms. (ET)
Service tax levy on railway freight deferred to July 1st 2010. (BL)
BULLS(M)ARCH AHEAD TO BID FAREWELL TO FY 2010
Where monetary tightening by the Reserve Bank of India’s (RBI hiking the repo and reverse repo by 25 basis points each) and deepening crises in Euro zone — Greece’s debt problems and Fitch Ratings downgrading Portugal's sovereign credit outlook— had a sobering effect on the market in the month, there were panoply of positives that the market can rejoice on. And the long list included — the surge in manufacturing and services activity in February, rise in exports for the third month straight in January 2010, record auto sales, strong index of industrial production (IIP) reading for January (16.7% year-on-year growth) combined with encouraging Q4FY 2010 advanced tax payouts by the top Indian corporates, food inflation contained at its four-month low (16.3% year on year) and Standard & Poor’s upgrading India’s outlook from ‘negative’ to ‘stable’.
In the month the Sensex swung 1,355 points while Nifty moved 394 points. Sensex and Nifty touched their two-year high of 17793 and 5329 respectively. The BSE bellwether ended the month 1,098 points (6.27%) higher at 17528 and the NSE benchmark posted gains of 327 points (or 6.64%) to close at 5249.
Of the 13 sector indices on the BSE all posted gains except BSE PSU that ended 1.91% lower. With the global economy looking up, commodities were the first to gain. This saw BSE Metal post the highest gains (up 9.58%). BSE Bankex (up 8.48%) was at second spot and Indian pharmaceutical and device makers set to benefit from the passage of US Healthcare Reform bill led BSE Health Care (up 8.45%) occupy the third spot.
As mad as a March hare stocks were Sintex Industries (up 23.76%), Chennai Petroleum (higher 20.33%) and Gujarat NRE Coke (20.15% up). The stocks that received max bashing for the month were public sector utilities NMDC (down 31.86%) and Rashtriya Chemicals and Fertilisers (slid 14.33%) and sugar major Balrampur Chini (12.48% lower).
Foreign institutional investors (FIIs) were the net buyers all through March, buying stocks worth Rs19,087 crore, whereas domestic institutional investors (DIIs) were the net sellers shedding Rs3,325 crore worth of shares in the month.
The coming months will see Domestic indices witness lot of volatility on Q4 earnings and guidance, auto sales numbers, cements production figures, export numbers, IIP numbers and inflation figures. However, most anticipated event for the month — RBI’s quarterly monetary policy review scheduled on April 20, 2010 — along with global signals will play instrumental role in deciding the market’s course.
In the month the Sensex swung 1,355 points while Nifty moved 394 points. Sensex and Nifty touched their two-year high of 17793 and 5329 respectively. The BSE bellwether ended the month 1,098 points (6.27%) higher at 17528 and the NSE benchmark posted gains of 327 points (or 6.64%) to close at 5249.
Of the 13 sector indices on the BSE all posted gains except BSE PSU that ended 1.91% lower. With the global economy looking up, commodities were the first to gain. This saw BSE Metal post the highest gains (up 9.58%). BSE Bankex (up 8.48%) was at second spot and Indian pharmaceutical and device makers set to benefit from the passage of US Healthcare Reform bill led BSE Health Care (up 8.45%) occupy the third spot.
As mad as a March hare stocks were Sintex Industries (up 23.76%), Chennai Petroleum (higher 20.33%) and Gujarat NRE Coke (20.15% up). The stocks that received max bashing for the month were public sector utilities NMDC (down 31.86%) and Rashtriya Chemicals and Fertilisers (slid 14.33%) and sugar major Balrampur Chini (12.48% lower).
Foreign institutional investors (FIIs) were the net buyers all through March, buying stocks worth Rs19,087 crore, whereas domestic institutional investors (DIIs) were the net sellers shedding Rs3,325 crore worth of shares in the month.
The coming months will see Domestic indices witness lot of volatility on Q4 earnings and guidance, auto sales numbers, cements production figures, export numbers, IIP numbers and inflation figures. However, most anticipated event for the month — RBI’s quarterly monetary policy review scheduled on April 20, 2010 — along with global signals will play instrumental role in deciding the market’s course.
Tuesday, March 30, 2010
DAILY NEWS ROUNDUP-MARCH 31, 2010
Bharti Airtel closes deal to acquire most of African assets of Kuwait’s Zain Telecom. (ET)
Government intends to review the allocation of gas produced from Reliance Industries’ KG-D6 field. (BL)
NMDC plans to increase iron ore prices by 70% for both domestic and export markets. (BS)
Hero Honda declared an interim dividend of Rs80 per share. (ET)
Hero Honda is looking to set up a Rs20bn manufacturing plant in Himachal Pradesh. (BS)
ITC has tied up with La Aurora to sell a mint based cigar in India. (ET)
Tata Motors sells 20% stake in Telcon to its JV partner Hitachi for a sum of Rs11.6bn. (ET)
Tata Motors reduced its debt by Rs15bn as a large section of its bond holders opted for conversion of bonds into share before maturity. (ET)
M&M is merging its two tractor JVs in China into a single entity. (BL)
GAIL has commenced supply of 0.33mmscmd of gas to Maruti’s Manesar plant. (BL)
Bank of Baroda raised US$350mn by way of 5.5 years senior unsecured bonds. (ET)
Crompton Greaves acquired a UK based company Power Technology Solutions for Rs2.04bn. (BS)
Jet Airways deposited Rs1.37bn in the Bombay High Court in relation with Sahara case. (ET)
Omaxe Ltd to raise Rs8bn through QIP. (BS)
JSL raised Rs2.5bn via sale of shares to qualified institutional buyers. (ET)
Pyramids Saimira to sell all businesses and investments to pay up Rs5.8bn high cost debt. (FE)
Bridgestone a Japanese Tyre major to invest Rs26bn at Chakan in Maharashtra. (BS)
Retail investors could be offer up to 10% discount on the issue price for future government disinvestments. (BS)
Rupee touched a 19-month high to 44.97 against the dollar. (BS)
Service tax on railway freight deferred by 3 months to July 1, 2010. (BS)
The telecom ministry has cleared all nine telecom companies to participate in 3G auction scheduled to commence on April 9. (ET)
Implementation of number portability has been postponed by three months to June 30. (ET)
RBI has released guidelines on how banks must classify capital in their balance sheets to ensure uniformity in reporting. (ET)
Cement prices are likely to increase by Rs7 from tomorrow. (ET)
Government intends to review the allocation of gas produced from Reliance Industries’ KG-D6 field. (BL)
NMDC plans to increase iron ore prices by 70% for both domestic and export markets. (BS)
Hero Honda declared an interim dividend of Rs80 per share. (ET)
Hero Honda is looking to set up a Rs20bn manufacturing plant in Himachal Pradesh. (BS)
ITC has tied up with La Aurora to sell a mint based cigar in India. (ET)
Tata Motors sells 20% stake in Telcon to its JV partner Hitachi for a sum of Rs11.6bn. (ET)
Tata Motors reduced its debt by Rs15bn as a large section of its bond holders opted for conversion of bonds into share before maturity. (ET)
M&M is merging its two tractor JVs in China into a single entity. (BL)
GAIL has commenced supply of 0.33mmscmd of gas to Maruti’s Manesar plant. (BL)
Bank of Baroda raised US$350mn by way of 5.5 years senior unsecured bonds. (ET)
Crompton Greaves acquired a UK based company Power Technology Solutions for Rs2.04bn. (BS)
Jet Airways deposited Rs1.37bn in the Bombay High Court in relation with Sahara case. (ET)
Omaxe Ltd to raise Rs8bn through QIP. (BS)
JSL raised Rs2.5bn via sale of shares to qualified institutional buyers. (ET)
Pyramids Saimira to sell all businesses and investments to pay up Rs5.8bn high cost debt. (FE)
Bridgestone a Japanese Tyre major to invest Rs26bn at Chakan in Maharashtra. (BS)
Retail investors could be offer up to 10% discount on the issue price for future government disinvestments. (BS)
Rupee touched a 19-month high to 44.97 against the dollar. (BS)
Service tax on railway freight deferred by 3 months to July 1, 2010. (BS)
The telecom ministry has cleared all nine telecom companies to participate in 3G auction scheduled to commence on April 9. (ET)
Implementation of number portability has been postponed by three months to June 30. (ET)
RBI has released guidelines on how banks must classify capital in their balance sheets to ensure uniformity in reporting. (ET)
Cement prices are likely to increase by Rs7 from tomorrow. (ET)
HARDENING RUPEE SNAPS 4 - DAY STRAIGHT GAINS
Today's major news
The Reserve Bank of India revives foreign currency convertible bond buyback scheme for three months
IL&FS Transportation lists at premium
The Securities and Exchange Board of India may get power to monitor the use of initial public offer funds
Click here for more stories
Global signals
As of writing the European markets were trading flat with London Stock Exchange’s FTSE 100 trading 0.07% lower.
All the major Asian indices—from Kospi to Nikkei to Hang Seng—closed higher except the Sensex that ended 0.68% down. SGX Nifty closed 62 points lower.
US stock futures point to a higher start for Wall Street, as Apple and Verizon stocks are in focus.
Indian indices
On speculation that the hardening of the rupee could hit the revenues of information technology (IT) companies, the IT stocks went down and along went the market breaching its four-day-long gains.
On mildly tepid global equities, the Sensex opened seven points down, but turned up, and barely half hour into the trade touched the day’s high—72 points higher than its previous closing. Though the index traded positive in the first half it kept inching down. In the second half, the appreciation in the Indian rupee began to play out pressuring IT stocks and pushed the market 153 points down. At finishing line the Sensex quoted at 17590, 121 points lower. The Nifty closed the session 40 points lower at 5262.
Market sentiment
Advancing shares outnumbered trailing ones. On the BSE, 1,691 stocks advanced against 1,098 trailed. Ninety four stocks closed unchanged.
Sectoral & stock screening
Stronger rupee continued to hit IT counter with BSE IT down by 2.19%. BSE Tech, down 1.62%, was second from the bottom. BSE Realty posted gains of 1.42% followed by BSE PSU that surged 0.80%.
On stocks’ front, Hindustan Copper was the star stock of the day posting gains of 8.25% followed by Corporation Bank that surged 7.88% and Bank of India that rose 5.28%. Among losers, Educomp Solutions slid the most by 3.27%, followed by Shriram Transport that fell 3.21% and Lupin that shed 3.10%.
Viewing volumes
Steel maker Ispat Industries was the most actively traded share with over 0.63 crore shares changing hands on the BSE followed by wind turbine maker Suzlon Energy (0.42 crore shares), public sector undertaking NMDC (0.42 crore shares), India’s second largest realty major Unitech (0.35 crore shares) and Industrial finance company IFCI (0.33 crore shares).
The Reserve Bank of India revives foreign currency convertible bond buyback scheme for three months
IL&FS Transportation lists at premium
The Securities and Exchange Board of India may get power to monitor the use of initial public offer funds
Click here for more stories
Global signals
As of writing the European markets were trading flat with London Stock Exchange’s FTSE 100 trading 0.07% lower.
All the major Asian indices—from Kospi to Nikkei to Hang Seng—closed higher except the Sensex that ended 0.68% down. SGX Nifty closed 62 points lower.
US stock futures point to a higher start for Wall Street, as Apple and Verizon stocks are in focus.
Indian indices
On speculation that the hardening of the rupee could hit the revenues of information technology (IT) companies, the IT stocks went down and along went the market breaching its four-day-long gains.
On mildly tepid global equities, the Sensex opened seven points down, but turned up, and barely half hour into the trade touched the day’s high—72 points higher than its previous closing. Though the index traded positive in the first half it kept inching down. In the second half, the appreciation in the Indian rupee began to play out pressuring IT stocks and pushed the market 153 points down. At finishing line the Sensex quoted at 17590, 121 points lower. The Nifty closed the session 40 points lower at 5262.
Market sentiment
Advancing shares outnumbered trailing ones. On the BSE, 1,691 stocks advanced against 1,098 trailed. Ninety four stocks closed unchanged.
Sectoral & stock screening
Stronger rupee continued to hit IT counter with BSE IT down by 2.19%. BSE Tech, down 1.62%, was second from the bottom. BSE Realty posted gains of 1.42% followed by BSE PSU that surged 0.80%.
On stocks’ front, Hindustan Copper was the star stock of the day posting gains of 8.25% followed by Corporation Bank that surged 7.88% and Bank of India that rose 5.28%. Among losers, Educomp Solutions slid the most by 3.27%, followed by Shriram Transport that fell 3.21% and Lupin that shed 3.10%.
Viewing volumes
Steel maker Ispat Industries was the most actively traded share with over 0.63 crore shares changing hands on the BSE followed by wind turbine maker Suzlon Energy (0.42 crore shares), public sector undertaking NMDC (0.42 crore shares), India’s second largest realty major Unitech (0.35 crore shares) and Industrial finance company IFCI (0.33 crore shares).
Monday, March 29, 2010
DAILY NEWS ROUNDUP- MARCH 30,2010
ACC plans to process non-degradable waste materials like disposed water bottles, polythene and other waste materials to make cement at its Bargarh plant in western Orissa. (BS)
GVK Power acquired 9.5% additional stake in GVK Gautami Power Ltd from the Hyderabad-based Nagarjuna Construction Company. (BL)
Hindustan Unilever announced that it sold its remaining 49% stake in Capgemini Business Services (India) Ltd to Cap Gemini SA as part of an agreement signed in October 2006. (BS)
L&T bagged Rs14bn order from IOC for supply of a 4.17mtpa FCC (fluidised catalytic cracker) reactor regenerator project for IOC's fuel refinery at Paradip, Orissa. (BL)
Ranbaxy has entered into a pact with US-based Pfenex Inc for developing biosimilars. (BS)
Japanese drug-maker Daiichi Sankyo, which owns 64% stake in Ranbaxy Laboratories Ltd, has finally firmed up plans to de-list the firm from the stock exchanges. (FE)
Colgate Palmolive has acquired the remaining 25% of share capital that it had in CC Health Care Products Pvt Ltd. (FE)
SAIL signed a 50:50 JV agreement with Shipping Corporation of India to primarily take care of SAIL’s shipping needs by owning and operating ships. (BL)
Promoters of Unitech raised their stake in the real estate company to 45% from 43.84%. (BL)
Havells India plans to increase its marketing spend by over 40% to Rs1bn by next fiscal and enhance its overseas retail footprints, starting with Africa. (ET)
GMDC plans to invest Rs4.8bn in the next two financial years to generate 81MW of wind energy at two different places in the Gujarat. (BL)
Punj Lloyd sold its entire stake of 19.43% in Pipavav Shipyard to its co-promoter, SKIL Infrastructure, for Rs6.6bn through an inter-se promoter transfer. (BL)
Nagarjuna Construction Company secured new orders aggregating Rs9.7bn, including a deal from Nagarjuna Oil Corporation Ltd. (BL)
IVRCL secured a mandate to execute four projects worth Rs8.7bn, covering canal system modernization and three water supply projects. (BL)
Sanofi-Aventis, the world’s third largest drug maker, has approached a US court against Wockhardt for challenging the patents of Allegra (fexofenadine hydrochloride), one of the largest selling anti-allergic drugs in the world. (BS)
Indoco Remedies entered into a long-term drug supply pact with Aspen Pharmacare, the largest pharmaceutical manufacturer in Africa and one of the top 20 generics manufacturers in the world. (BS)
Suven Life Sciences secured a product patent from the European Patent Office for its New Chemical Entity meant for the treatment of neurodegenerative diseases. (BL)
Kalanithi Maran, promoter of Sun TV, and the promoters of Spice-Jet are sparring over the price being offered for a majority stake in the budget carrier. (ET)
SKIL Infrastructure, promoter of Pipavav Shipyard, has made an open offer to acquire 20% stake in the company for Rs8.2bn, at Rs61.5/share. (BS)
MTNL has abandoned its bid to buy out Zambian telco Zamtel as BSNL too has backed out from the deal. (ET)
The Supreme Court rejected the central government’s plea to allow Lafarge, the French mining giant, to resume limestone mining in Meghalaya. (BS)
The country's crude oil import increased by 13.2% in February to 10.67mt over the corresponding period last year. (BL)
The government got Rs99.3bn from its follow-on offer of NMDC shares and Rs136.2bn from divestment in NHPC, OIL, REC and NTPC, leaving it short by Rs14.5bn for its year’s disinvestment target of Rs250bn. (BS)
India has signed an agreement for Rs105bn official development assistance from Japan, which includes Rs16.5bn for the second phase of Delhi mass rapid transport system project, Rs44.2bn for the dedicated rail freight corridor and Rs29.3bn for Chennai metro. (BS)
RBI has allowed Indian companies to buy back Foreign Currency Convertible Bonds, under both the automatic route and approval route until June 30. (FE)
Four-laning of National Highway 40, which connects Shillong, capital of Meghalaya, with Guwahati, is expected to commence in 2010. (BS)
The Centre has fixed a target of Rs46bn under the Mahatma Gandhi National Rural Employment Guarantee Scheme for 2010-11, a growth of close to double the amount spent during 2009-10. (BS)
Union Coal Minister said coal blocks would be allocated on the merit of the proposed power projects, including ‘likeability’ of production, within the current XIth Plan. (BS)
A Gartner study indicates that the domestic BPO market is expected to grow at 25% in 2010 to touch US$1.2bn by 2011. (BS)
The new Companies Bill will give SEBI the powers to look into the end-use of Initial Public Offerings. (BL)
The Finance Secretary said that the government will borrow Rs2.9trn, 63% of its gross requirement, in the first half of 2010-11. (BL)
The Government on Monday cleared 23 FDI proposals worth Rs23.3bn including that of the Pune-based auto components maker Bharat Forge. (BL)
Setting a positive tone for Prime minister Manmohan Singh’s visit to Washington DC to attend the April 1213 Nuclear Security Summit, US Ambassador Timothy J Roemer has announced the finalization of a pact with India on re-processing US-origin spent nuclear fuel, a critical step that will enable the two countries to implement their nuclear deal. (FE)
GVK Power acquired 9.5% additional stake in GVK Gautami Power Ltd from the Hyderabad-based Nagarjuna Construction Company. (BL)
Hindustan Unilever announced that it sold its remaining 49% stake in Capgemini Business Services (India) Ltd to Cap Gemini SA as part of an agreement signed in October 2006. (BS)
L&T bagged Rs14bn order from IOC for supply of a 4.17mtpa FCC (fluidised catalytic cracker) reactor regenerator project for IOC's fuel refinery at Paradip, Orissa. (BL)
Ranbaxy has entered into a pact with US-based Pfenex Inc for developing biosimilars. (BS)
Japanese drug-maker Daiichi Sankyo, which owns 64% stake in Ranbaxy Laboratories Ltd, has finally firmed up plans to de-list the firm from the stock exchanges. (FE)
Colgate Palmolive has acquired the remaining 25% of share capital that it had in CC Health Care Products Pvt Ltd. (FE)
SAIL signed a 50:50 JV agreement with Shipping Corporation of India to primarily take care of SAIL’s shipping needs by owning and operating ships. (BL)
Promoters of Unitech raised their stake in the real estate company to 45% from 43.84%. (BL)
Havells India plans to increase its marketing spend by over 40% to Rs1bn by next fiscal and enhance its overseas retail footprints, starting with Africa. (ET)
GMDC plans to invest Rs4.8bn in the next two financial years to generate 81MW of wind energy at two different places in the Gujarat. (BL)
Punj Lloyd sold its entire stake of 19.43% in Pipavav Shipyard to its co-promoter, SKIL Infrastructure, for Rs6.6bn through an inter-se promoter transfer. (BL)
Nagarjuna Construction Company secured new orders aggregating Rs9.7bn, including a deal from Nagarjuna Oil Corporation Ltd. (BL)
IVRCL secured a mandate to execute four projects worth Rs8.7bn, covering canal system modernization and three water supply projects. (BL)
Sanofi-Aventis, the world’s third largest drug maker, has approached a US court against Wockhardt for challenging the patents of Allegra (fexofenadine hydrochloride), one of the largest selling anti-allergic drugs in the world. (BS)
Indoco Remedies entered into a long-term drug supply pact with Aspen Pharmacare, the largest pharmaceutical manufacturer in Africa and one of the top 20 generics manufacturers in the world. (BS)
Suven Life Sciences secured a product patent from the European Patent Office for its New Chemical Entity meant for the treatment of neurodegenerative diseases. (BL)
Kalanithi Maran, promoter of Sun TV, and the promoters of Spice-Jet are sparring over the price being offered for a majority stake in the budget carrier. (ET)
SKIL Infrastructure, promoter of Pipavav Shipyard, has made an open offer to acquire 20% stake in the company for Rs8.2bn, at Rs61.5/share. (BS)
MTNL has abandoned its bid to buy out Zambian telco Zamtel as BSNL too has backed out from the deal. (ET)
The Supreme Court rejected the central government’s plea to allow Lafarge, the French mining giant, to resume limestone mining in Meghalaya. (BS)
The country's crude oil import increased by 13.2% in February to 10.67mt over the corresponding period last year. (BL)
The government got Rs99.3bn from its follow-on offer of NMDC shares and Rs136.2bn from divestment in NHPC, OIL, REC and NTPC, leaving it short by Rs14.5bn for its year’s disinvestment target of Rs250bn. (BS)
India has signed an agreement for Rs105bn official development assistance from Japan, which includes Rs16.5bn for the second phase of Delhi mass rapid transport system project, Rs44.2bn for the dedicated rail freight corridor and Rs29.3bn for Chennai metro. (BS)
RBI has allowed Indian companies to buy back Foreign Currency Convertible Bonds, under both the automatic route and approval route until June 30. (FE)
Four-laning of National Highway 40, which connects Shillong, capital of Meghalaya, with Guwahati, is expected to commence in 2010. (BS)
The Centre has fixed a target of Rs46bn under the Mahatma Gandhi National Rural Employment Guarantee Scheme for 2010-11, a growth of close to double the amount spent during 2009-10. (BS)
Union Coal Minister said coal blocks would be allocated on the merit of the proposed power projects, including ‘likeability’ of production, within the current XIth Plan. (BS)
A Gartner study indicates that the domestic BPO market is expected to grow at 25% in 2010 to touch US$1.2bn by 2011. (BS)
The new Companies Bill will give SEBI the powers to look into the end-use of Initial Public Offerings. (BL)
The Finance Secretary said that the government will borrow Rs2.9trn, 63% of its gross requirement, in the first half of 2010-11. (BL)
The Government on Monday cleared 23 FDI proposals worth Rs23.3bn including that of the Pune-based auto components maker Bharat Forge. (BL)
Setting a positive tone for Prime minister Manmohan Singh’s visit to Washington DC to attend the April 1213 Nuclear Security Summit, US Ambassador Timothy J Roemer has announced the finalization of a pact with India on re-processing US-origin spent nuclear fuel, a critical step that will enable the two countries to implement their nuclear deal. (FE)
MARKET AT TWO - YEAR HIGH
Today's major news
Expanded index of industrial production (IIP) basket from April data
Larsen & Toubro bags Rs1,400-crore order; the stock surges 1.43%
Soros and Kaiser in race to buy 4% stake in BSE
Click here for more stories
Global signals
Mining and banking stocks pushed European market higher today. As of writing, FTSE 100 was up by 0.17%.
Asian indices had a mixed outing—Shanghai Composite, Straits Times and Hang Seng closed higher while Jakarta Composite, Kospi and Nikkei posted losses.
US stock futures point to a higher start for Wall Street. Investors are looking forward to data related to February personal income and consumption that will be declared later in the day.
Indian indices
Indian markets rose to their highest level since February 2008 on firm global markets and buying in consumer durables and fast moving consumer durables.
On firm global leads, Sensex opened almost flat, merely 6 points lower, but soon turned positive to touch the day’s as well as two-year’s high of 17793. Nifty also touched its two-year high of 5329 in afternoon trades. However, some of these gains were trimmed towards the close with the Sensex quoting at 17711, 67 points higher at finishing line. The Nifty closed the session 21 points higher at 5303.
Market sentiment
Despite trading green all through the day and the indices hitting their two-year high trailing stocks outnumbered advancing scrips. Around 62% of stocks on the BSE trailed vis-a-vis 34% advancing. Around 2% scrips traded unchanged.
Sectoral & stock screening
Information technology (IT), Tech and public sector unit (PSU) were the three sectors that were down—BSE IT 1.74%, BSE TECk 1.33% and BSE PSU .01%. Consumer durables (CD) index was up by 1.97% — the most for any sector —followed by fast moving consumer goods (FMCG) counter that advanced 1.05%. Other sectors were up less than a percent.
LIC Housing Finance was the star stock of the day, up by 8.57%, followed by Glenmark Pharma that was up by 5.19% and Nestle India up 4.91%. On losers’ list, NMDC was down by 4.56%, followed by Torrent Power that fell 4.02% and Punj Lloyd that shed 3.86%.
Viewing volumes
Ispat Industries was the most actively traded share with over 0.57 crore shares changing hands on the BSE followed by public sector undertaking NMDC (0.41 crore shares), India’s second largest realty major Unitech (0.35 crore shares), wind turbine maker Suzlon Energy (0.34 crore shares) and Industrial finance company IFCI (0.32 crore shares).
Expanded index of industrial production (IIP) basket from April data
Larsen & Toubro bags Rs1,400-crore order; the stock surges 1.43%
Soros and Kaiser in race to buy 4% stake in BSE
Click here for more stories
Global signals
Mining and banking stocks pushed European market higher today. As of writing, FTSE 100 was up by 0.17%.
Asian indices had a mixed outing—Shanghai Composite, Straits Times and Hang Seng closed higher while Jakarta Composite, Kospi and Nikkei posted losses.
US stock futures point to a higher start for Wall Street. Investors are looking forward to data related to February personal income and consumption that will be declared later in the day.
Indian indices
Indian markets rose to their highest level since February 2008 on firm global markets and buying in consumer durables and fast moving consumer durables.
On firm global leads, Sensex opened almost flat, merely 6 points lower, but soon turned positive to touch the day’s as well as two-year’s high of 17793. Nifty also touched its two-year high of 5329 in afternoon trades. However, some of these gains were trimmed towards the close with the Sensex quoting at 17711, 67 points higher at finishing line. The Nifty closed the session 21 points higher at 5303.
Market sentiment
Despite trading green all through the day and the indices hitting their two-year high trailing stocks outnumbered advancing scrips. Around 62% of stocks on the BSE trailed vis-a-vis 34% advancing. Around 2% scrips traded unchanged.
Sectoral & stock screening
Information technology (IT), Tech and public sector unit (PSU) were the three sectors that were down—BSE IT 1.74%, BSE TECk 1.33% and BSE PSU .01%. Consumer durables (CD) index was up by 1.97% — the most for any sector —followed by fast moving consumer goods (FMCG) counter that advanced 1.05%. Other sectors were up less than a percent.
LIC Housing Finance was the star stock of the day, up by 8.57%, followed by Glenmark Pharma that was up by 5.19% and Nestle India up 4.91%. On losers’ list, NMDC was down by 4.56%, followed by Torrent Power that fell 4.02% and Punj Lloyd that shed 3.86%.
Viewing volumes
Ispat Industries was the most actively traded share with over 0.57 crore shares changing hands on the BSE followed by public sector undertaking NMDC (0.41 crore shares), India’s second largest realty major Unitech (0.35 crore shares), wind turbine maker Suzlon Energy (0.34 crore shares) and Industrial finance company IFCI (0.32 crore shares).
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