Thursday, 10 June 2010

BOR: Market Outlook: Nifty will have positive opening today

Market Outlook: Nifty will have positive opening today on account of strong global cues. Nifty has supports at 4970-5000 and resistances are at 5150-5200.

Global Events to watch for today:

Þ Retail Sales

Þ Consumer Sentiment

Global indices Update @ 8:

Dow Jones : 10.172 (+273.2)

NASDAQ : 2218 (+59.86)

Nikkei 225 : 9733 (+02.00)

Hang seng : 19894 (+261.6)

SGX CNX Nifty : 5128 (+38.00)

INR / 1 USD : 46.98

Stocks in action for the day : Videocon, Spicejet, StanChart, NTPC, BHEL, HCC, HUL, HDIL, Jet Airways...

All eyes on next EGoM meet on fuel price issue likely on June 17: PTI

Listing of Standard Chartered IDR today, issue price at Rs 104 ((Last traded at pound 16.49, translates into Rs 1129.60; 10 IDRs represent one share, so translates into Rs 112.96 as listing price))

Videocon in talks with Korea`s SK Telecom for offloading 26% stake: Videocon Telecommunications has started talks with Korea`s Sun Kyung (SK) Telecom to sell a 26% stake, the latest attempt by it to bring in a foreign partner for its fledgling mobile phone services. The founding Dhoot family wants Rs 36 billion from the sale, valuing Videocon Telecommunications at a little over Rs 130 billion (USD 3 billion), an executive with direct knowledge of the development told ET. But analysts are of the view that this may be asking for too much. VideoconTelecommunications has also been linked to a buyout by Mukesh Ambani`s Reliance Industries, whose board is believed to have recently authorised its re-entry into the telecoms space following the peace deal between the Ambani brothers.

Sun TV's Maran looks to buy stake in SpiceJet: Sources: SUN TV promoter Kalanidhi Maran is looking at picking up a stake in SpiceJet, reports CNBC-TV18 quoting sources. Maran, souces say, is looking to pick up the stake from WL Ross and India Asset Recovery Fund (IARF) and the deal is likely to be sealed in a few days. WL Ross and IARF will convert bonds in tranches to avoid open offer and this will start in a few days' time. On full dilution the WL Ross and IARFstake will be at 34.9%. FCCBs worth USD 80 m were issued to WL Ross and IARF. WL Ross alone was issued bonds worth USD 68 m while IARF was issued bonds were USD 12 m, both at a conversion price of Rs 25/ share. Among other stakeholders, one promoter Ajay Singh and his family hold 10% while Goldman Sachs holds around 6%. The other promoter, the Kansagra Family holds 12%, however over 50% of these shares are pledged.

RIL looks to acquire shale gas assets of US` Pioneer Reliance Industries (RIL) is considering buying a stake in shale gas assets owned by Pioneer Natural Resources, two people with knowledge of the matter said. Pioneer, based in Irving, Texas, and said last month that it expected to announce a JV for its Eagle Ford shale gas assets in the second quarter. Reliance, which acquired a stake in shale gas areas in the US from Atlas Energy in April for USD 1.7 billion, is joining Royal Dutch Shell and Exxon Mobil to buy unconventional gas reserves, anticipating that prices for the cleaner-burning fuel will recover. Shale-gas deposits were not considered worth tapping before Houston billionaire George P Mitchell pioneered new extraction techniques in the 1990s.

RIL eyes gas JV with US firm Two months after Reliance Industries bought a 40% stake in US-based Atlas Energy`s Marcellus Shale gas operations for USD 339 million, the Mukesh Ambani-led company has now set its eyes on a joint venture withPioneer Natural Resources . The Texas-based Pioneer had said last month that it expects to zero in on a partner for its Eagle Ford shale gas assets by the end of June. Pioneer Natural Resources has about 3.10 lakh acres in the Eagle Ford region in south Texas. It tested its first successful well in last October and the second one in January this year.

Honda to ramp up production of Activa by 300 units per day Honda Motorcycle & Scooter India (HMSI), the market leader in the scooters segment with over 50% share, is increasing the manufacturing capacity of its popular model Activa by 300 per day in a bid to reduce the five-month long wait period for the vehicle. ``We currently manufacture 2100 Activas per day at our plant Manesar plant in Haryana that will go up to around 2400 Activas per day,`` said Sharad Pradhan, regional head-west of HMSI. An Ahmedabad based dealer of HMSI two-wheelers, Punjab Honda, said that there was a high demand of more than 3000 Activas per month in the city and that it has been struggling to meet demand.

Surya group plans major investment in state The Surya Group of Companies is planning major investments, including setting up steel and cement plants along with a power plant, in Karnataka. The company had said it is looking at various funding options, one of which could be private equity (PE). Besides, the group is also investing Rs 1 billion on pipe and bulb plants in the state. Arvind Bansal, deputy managing director (operat-ions and corporate management), Surya Roshni toldBusiness Standard, the company is planning a steel plant with a capacity of 6 million tonnes per annum in Karnataka.

NTPC-BHEL JV aims to produce 5000MW equipment BHEL Power Projects on Thursday said it has submitted a detailed project report about the company`s work to the ministry of heavy industry and public enterprises. ``NTPC BHEL Power Projects (NBPPL) presented a Detailed Project Report (DPR) covering total scope of work to manufacture 5,000 MW capacity equipment a year,`` a company statement said. The report would work as a guideline for capital investment of Rs 60 billion to become a 5,000 MW company in the field of power generating equipment, it said.

Jet Airways -Carried 8.69 lakh revenue passenger in May 2010 (up 41% YoY) -Domestic load factor for may stood at 82.5% ((10% increase MOM)) -International seat factor stood 80.3% (up 5% YoY)

Bombay HC dismisses govt regulation on TDR Policy, cuts FSI back to 1, to benefit HDIL, DB

Realty, negative for other Mumbai based realty companies

Whirlpool of India, Sri Adhikari Brothers to be included in T2T Segemnt

Board meet today: Dish TV: restructuring of subsidiary

HUL: Board meet today on buyback of shares

LIC, 4 Banks likely to invest in Videocon ((Mint))

Eli Lilly said to be looking to Clinical Trial opportunities in India ((DNA))

HCC looking to sell 20%-30% in Infra Subsidiary ((DNA))

Network 18 to do away with cross-holdings – BS

Indian ADRs: Sterlite up 6%, Tata Comm up 5.6%

Wednesday, 9 June 2010

BOR: Market Outlook: Indian markets will have flat to positive opening today

Market Outlook: Indian markets will have flat to positive opening today on the back of mixed action seen on the global peers. Overall the trend is till intact up but there could be some exhaustion in it’s upmove and the market could stall around 5150-5200 levels. Support for Nifty at 4967-4892

Global Events to watch for today:

  • International Trade
  • Jobless Claims

Global indices Update @ 8:

Dow Jones : 9899 (- 10.73)

NASDAQ : 2158 (- 11.72)

Nikkei 225 : 9469 (+30.50)

Hang seng : 19565 (- 55.86)

SGX CNX Nifty : 5017 (+09.50)

INR / 1 USD : 46.98

Stocks in action for the day : R-Power, PowerGrid, Fortis Healthcare, Voltas, EIL, Orbit Corp, Essar Oil, HDFC Bk…

HDFC Bank to fix new base rate around 6%: Sources: Starting July 1, the banking industry will replace the prime lending rate with a new base rate. The introduction of the new base rate however looks set to see some stiff competition between banks. While most PSU banks are likely to follow leader SBI and go with abase rate around 8%, HDFC Bank may go with a base rate of as low as 6%,

Zain success holds key to Bharti's future growth: Bharti Airtel’s stock has seen a sharp movement in the past two trading sessions that followed the announcement of the closure of its mega acquisition of Zain Africa. After losing as much as 4% on bourses soon after the announcement on Tuesday, the stock dramatically recovered the next day. At the end of the trade on Wednesday, it gained nearly 6% even as the broader market remained more or less flat.

R-Power, Indonesia`s Sugico ink pact to acquire coal mines Anil Ambani-owned Reliance Power has signed a share-sale agreement with Indonesia`s Sugico Group to acquire three coal mines in a transaction that will involve a series of production-linked milestone payments. Reliance Power`s wholly-owned subsidiary, Reliance Coal Resources, will make an upfront payment of Rs 5 billion (USD106 million) for acquiring the mines. The balance payment will be paid in a staggered fashion depending on the mines meeting certain production targets. If all production-linked targets are met, the total value of the deal will be USD 1.6 billion.

Andrew Yule to foray into specialty teas Andrew Yule & Co is making a foray into the designer specialty tea segment to spruce up its margins in the current fiscal. These teas, which can fetch Rs 7,000 - Rs 15,000 per kg in the international market will be sold at high-street departmental stores like Harrods. A team from Harrods is now in Kolkata to hold talks with Andrew Yule for sourcing these exclusive designer teas for their store in London. On Wednesday, the company launched three new teas from its Darjeeling tea estate, Mim-Himalayan Delite (Darjeeling organic green tea), Mim Darjeeling organic tea and Mim Darjeeling specialty designer teas.

PowerGrid may sell 20% stake to raise Rs 80 bn Electricity transmission company PowerGrid Corporation may sell 20% to public that could raise Rs 80 billion, which may be equally split between the government andthe company , said two people familiar with the plans. This share sale will be pursued aggressively, since steelmaker SAIL`s fund-raising plans may be delayed due to compliance issues, they said. The government plans to sell 10% and Power Grid will issue new shares comprising 10% of post-issue capital to raise funds for expansion, which is estimated at Rs 550 billion, they added. The fund-raising target is a calculation based on current market price.

Fortis to raise Rs 27.5 bn via issue of securities The Fortis Healthcare board on Wednesday gave the company the go-ahead to raise Rs 27.5 billion through fresh issue of securities, including shares, and also increased the company`s borrowing limit to Rs 60 billion. The company did not specify the reason for raising fresh funds, but said ``all options to deal with potential investment opportunities have been kept open``. Analysts see this as a possible preparation for a counter bid for garnering more shares in the Singapore-headquartered Parkway Holdings. ``This is an indication for the first step to make a counter offer,`` said Vishal Gandhi, VP Life Sciences & Technology, YES Bank.

Pipavav to build world`s biggest dry dock Eyeing business from domestic and international shipping lines that ply through the busy sea route between Dubai and Colombo, Pipavav Shipyard (PSL) is all set to construct a new dry dock in Gujarat, which is expected to be the world`s biggest dock to undertake repair and maintenance of vessels operating in the region. Roughly the size of seven soccer fields, the dock will be bigger than Hyundai`s in South Korea.

RIL drawing up plans to foray into telecom space The board of Reliance Industries (RIL) is believed to have approved plans to enter the Indian telecommunications sector when the opportunity arises, two persons familiar with the development told ET. India`s largest private sector company is expected to go for only the lucrative corporate bandwidth market, or the business of selling telecom and internet services to companies rather than individuals. It is likely thatthe company could unveil its intent to foray into telecom at its annual general meeting on June 18, the people familiar with its plans said.

Regaliaa Realty lines up Rs 650 mn Chennai-based Regaliaa Realty is planning to invest around Rs 650 million in various hospitality and residential projects. The company, which is currently promoting mid and high-end residential projects, said it would also look at foraying into low-end housing projects.The company has set up 11 services apartments under the brand Homcourt at Nugambakkam here and is planning to add five more in the same location. ``In the next 24 monthsthe company is planning to take total number of service apartments to 100 with an investment of around Rs 150 million,`` said D Sudhakara Reddy, chairman and managing director, Regaliaa Realty.

RINL, NMDC in talks to set up pellet plant Rashtriya Ispat Nigam (RINL), the flagship company of Visakhapatnam Steel Plant (VSP), and NMDC on Wednesday held discussions for setting up a pellet plant through joint venture. The two chairmen and managing directors - PK Bishnoi and Rana Som of VSP and NMDC respectively -took part in the discussions. Transportation of fines in the form of slurry for pellet would reduce dependence on rail apart from reducing the burden on the existing logistics of the Kothavalasa-Kirandol line, VSP said in a press release.

Strides hits big with pfizer deal Strides Arcolab, an Rs 15 billion publicly-held pharma firm based in Bangalore, is reaping the benefits of its outsourcing deal with Pfizer. While the financial terms have not been disclosed, the quantum of the deal is visible from Strides paying in cash for its recent acquisitions. Strides have managed to payout nearly a third of the Rs 8.8 billion which it has to pay for its recent acquisitions. ``This indicates pretty good cash flow from the licensing deal with Pfizer,`` noted an analyst. In March 2010, Strides bought a 50% stake owned by South African generics drug maker Aspen Pharmaceuticals for USD 117 million (around Rs 5.31 billion) and also acquired Aspen`s unit in Brazil for USD 75 million, taking the cost of its acquisition to USD 192 million.

BHEL, Alstom tie-up to jointly bid for Chennai metro State-run BHEL has tied up with French firm Alstom to jointly bid for the Chennai metro project. ``We have signed in-principle agreement with Alstom for the Chennai metro project, but the equity portion is yet to be decided,`` the BHEL Chairman and Managing Director, B.P. Rao, told reporters here on Wednesday.

Parabolic Drugs to raise Rs 2 bn through IPO Parabolic Drugs (PDL), on Wednesday said that it plans to raise up to Rs 2 billion through an Initial Public Offerin g (IPO) that opens for subscription on June 14. The Chandigarh based contract manufacturer of active pharmaceutical ingredients (APIs) and API intermediates, will use the proceeds towards setting up new facilities, capacity expansion of existing ones and repaying debt, a top company official said. ``We plan to raise up to Rs 2 billion from the capital market. A part of the proceeds will go towards financing our capex plans and a part of it will be used to reduce our debt,`` PDL`s Executive Director, Vineet Gupta, told reporters here.

ONGC sees rise in insurance premium for offshore assets Oil and Natural Gas Corporation on Wednesday said it expects insurance premium for offshore assets to rise sharply following an oil leak in the Gulf of Mexico that has been described as the worst in the US history. ``Insurance costs are going to go up exponentially around the world. We anticipate that our insurance premium next year will rise exponentially,`` said R S Sharma, CMD., ONGC.

Sabero's growth prospects appear attractive: The crop protection major, Sabero Organics Gujarat (SOGL), has done exceedingly well on the bourses following its improved financial performance. Its stock has more than doubled in a span of one year, way ahead of the benchmark Sensex performance.

Fortis get shareholders' nod for selling 6.5% stake to GIC: Hospital chain Fortis Healthcare today said its shareholders have approved selling 6.58 per cent stake in the company to Singapore-based private equity firm GIC for Rs 380 crore. The stake sale has been carried through preferential allotment of 2.23 crore equity shares. extra-ordinary general meeting held today approved the allotment of 2.23 crore equity shares of Rs 10 each at a premium of Rs 160 to Lathe Investment Pte Ltd, an affiliated investment vehicle of GIC Special Investment.

Ex-dates: today HDFC Bank : Ex dividend Rs 12/share-ICICI Bank : Ex dividend Rs 12/share-Infotech Enterprise : Ex-Bonus 1:1

Engineers India FPO expected to hit market by July-end, ((Expected to raise Rs 1,100-1,200 crore or 10% dilution)

Lanco group & Edelweiss Capital made a bid in the range of Rs 30-45 crore to acquire Axis Bank's PE firm

Fatpipe IPO extends closing date to June 14 from June 9 and revises price band to Rs 80-85 (versus Rs 82-85)

ACC cement despatches for May at 1.75 million tons versus 1.82 million tons (YoY)

Essar Oil’s holding company Essar Energy included in FTSE 100

Orbit Corp board meet on June 18 to raise Rs 1,000 crore via QIP

Tata Sons increase their stake by 2% in Voltas

ONGC Petro Additions talking to 3-4 foreign players for tie-up ((Lyondell,Ineos,Itochu)): DNA

My take on Raajneeti

I saw this movie last weekend.I liked the acting of everyone .The movie is too fast paced with bodies falling by the wayside .It speeds  faster as the race for power begins.

It is a story which seems to be considerably inspired from the events in India's political landscape.The struggle for power between cousins is akin to what has taken place in one of our States in a party which is basically a regional outfit though it ties up with national parties for the elections.The outright elimination of a strongman of a political party reminds one of the murder of a secretary of an influential tribal leader who got away owing  to  lack of evidence.The sympathy vote which brings the heroine to power is all too familiar with what has happened in this nation & elsewhere in Asia.

The movie is also a modern Mahabharata as stated by the director. The eldest protagonist is a Bhishma like figure as he is unable to do anything as youngsters are hell bent on killing each other to win the race.The Chief Minister gets  bedridden just like Dhritrashtra & is a puppet in the hands of his son.Bharati is Kunti & has three sons- one illegitimate ,Suraj just like Karna ( Surya' son) & two legitimate  sons born after her marriage .The eldest is arrogant & brash & younger one is just like Arjuna who takes action after planning.Now,here,we all know too well who these two seem to be portraying other than the Pandava princes.

Suraj is brought up by the driver just like the charioteer brings up Karna in the epic after they spot him as a baby adrift on the Ganges.Suraj is taken in as a chum by the vile son of the bedridden father.This is like Karna & Duryodhana's bosom friendship.

Katrina Kaif is Draupadi as she loves one brother & is coerced to marry another- all for the cause of politics nah to nab power.There is Bharati's brother, who is the Krishna of this story, always devising strategy   for Bharati's family.Krishna in Mahabharata as also in this tale is a Muhbola bhai ( brother by relation not a natural sibling ) .Krishna is there throughout the movie as if omnipresent.It reminds us that though God was   in the midst  of Pandavas & Kauravas,whatever happened was bound to happen.Maybe,there are lessons for all of us .Krishna is the kingmaker in the film. There is a scene in which ,the younger brother is goaded to kill his rival at point blank range by Krishna.The young fellow replies that as the rival  is unarmed,he does not feel up to it.Krishna says that he should do it as he may not get another chance.This is the five minute Geetopadesh ! Also,the rival is killed when he is out of his bullet proof vehicle  -Karna is bereft of his Kavach Kundala when he is killed.

The speeches made by the stars in the movie made me realise that our netas use mass hypnosis to abet people to vote for them ! Our magicians could learn all this indrajaal from our leaders as they have perfected the said tricks in election after election .The speech goes on like this ," Aap ( voters -public ) chup khade yeh sab dekh rahe hain -unhone ( rival political party) hamare Sasur/Pita/Pati/Bhai/etal  ko  din dahade maar dala ,aap kab tak aisa hone denge ? " The mesmerised crowd yells back ," Aap aage badho,hum aapke saath hain ".Really,how easily the populace is conned into believing that the said persons sacrificed their lives for the nation ! The politicians have been killed for pursuit of power, by the pursuit of power & of the pursuit of power .The netas believe in self (-) less service !  We  see this happening in our nation so often.

The film depicts what we all knew too well that politicians are ruthless when it comes to power & will stop at nothing to achieve their kursis. No relation is too sacrosanct for this.They believe that ends justify the means.But I am not buying what the younger brother tells the heroine that she will be happy in his home rather than in his cousin's place.This is all subjective thinking.Moreover,he, as also  his cousin pull all stops to seize  power.The same can be said about the Pandavas & Kauravas as they both used deceit during the war.Ultimately, the war ends but how ? With so many casualties & just a few members left -as in the saga of the Kuru clan.Katrina divulges at the end that she is pregnant.So,I guess, that, there may be a sequel in the offing.

Bharati hugs her bahu & tells her," We ( read women ) are the biggest losers in this power game ." Hopefully,the Women's Reservation bill will change that.

Tuesday, 6 April 2010

First Look: 'Raajneeti'

It is the story of Bhaskar Sanyal (Naseruddin Shah), the fire-brand leftist leader, as feared for his single-handed ability to challenge the most powerful of leaders as he was respected for his political integrity. Until one private mistake of his hurtled him into a self-imposed exile and spawned a secret consequence that shook the destiny of the political future of the state.

And of Sooraj (Ajay Devgan) who rose from the backward classes - with anger in his heart and leadership on his mind. And yet, his destiny could never overcome the tragedy of his birth, trapping him in a terrible dilemma, where his loyalty to his friend threatens to destroy his own family. Of Brij Gopal (Nana Patekar), who shunned every political ambition even as he continued to mentor and guide the younger generation of leaders while the battle got bloodier by the day.

It is the story of Prithvi Pratap (Arjun Rampal), heir to a powerful political legacy and impatient to seize the top position. A man with a heart of gold but who is all brawn. A man whose uncontrollable passions bring his family to the brink of political extinction. And of Veerendra Pratap (Manoj Bajpai), whose lunge at the throne was thwarted even as he was within striking distance of it. A man who believes he was born to rule, and who will now stop at absolutely nothing to claw his way back to the top.

Of Indu Sakseria (Katrina Kaif), the princess - beautiful, passionate, arrogant. She had only one all-consuming love. Little did she know that her personal happiness was dependent on the changing electoral fortunes of her love, and that even a slight shift in the faultiness of political negotiation would cause a devastating earthquake in her personal life. And yet, this spirited never-say-die diva rose from the ashes of her tragedy to challenge every contender, over-turning the political future of the state.

Of Sarah Jean Collins (Sarah Thompson), who came from one of the bloodiest and most violent places of earth. Who escaped from there, bruised, hurt, and fell in love with a soul-mate who shared a similar legacy. And her abhorrence for it. And yet, when he was sucked into his destiny, this innocent bewildered girl's private world was thrown asunder.

And, it is the story of Samar Pratap (Ranbir Kapoor), the ultimate outsider. The apolitical conscientious objector, who got reluctantly sucked into the battle-ravaged arena of family rivalry. Only to turn into a master of the craft of political warfare. It is the story of the woman that he loved, and the one that loved and lost him. It is the story of his determined and fierce fight to protect his family. Of the bloodiest of final battles in a war, alien to his character. It is the story of a man's descent into the moral hell that is Indian politics.

It is the story of a fiercely fought election campaign, where money-power and corruption are the accepted norms, and where treachery and manipulation are routinely used weapons. As the personal drama of these conflict-ridden characters unfolds against this gritty backdrop, love and friendship become mere baits, and relationships get sacrificed at the altar of political alignments.

The darkness that rises from their soul threatens to envelope all that they hold precious. Until eventually, in the crescendo of increasing violence, the line between good and evil blurs, making it impossible to distinguish heroes from villains.

'Raajneeti' is the story of Indian democracy. And its ugly underside. It is about politics. And beyond.