Market Ahead:
Expect a mercurial week ahead of RBI meet and result from biggies:
RBI is likely to continue with its tight money policy for some time as various measures are already in place to curb the inflation rate. The week on week inflation did cooled off from its highs off 11.91% to 11.89% (two ticks) but still it is way above the RBI's leeway of 5.5%.
By June, the street was expecting 50 basis points (bps) in Repo with a CRR hike as well. But in the last few weeks the sentiment in the markets has changed and it is anticipating RBI to increase only Repo by 25 bps (which is already been discounted).
RBI keeping the rates steady would certainly induce positive sentiment in the market. On the other side, RBI hiking both the Repo and the CRR can result into huge sell-off in the coming days.
F&O expiry and Q1 results:
High volatility is expected in the markets ahead of FnO expiry of the July, 08 series and results of some stock market biggies including many companies from the Nifty and Sensex. Investors & traders will keep their finger crossed for some biggies in the intemperately beaten down sectors like Banking and Capital goods.
Companies which would be watched carefully will be ICICI Bank, Reliance Infrastructure, ONGC, HDFC Bank, L&T, Cairn India, NTPC,Mahindra & Mahindra and Tata Motors among others.
Oil can play a spoilsport:
Oil after topping out at $147.8 per barrel has calmed down for some time at $120 levels, falling over 17% during the last two week. This has been backed by concerns of weakening demand in the largest economy in the world, increase in oil inventory and the greenback gaining against the Euro. However a supply disruption by Dolly or a geopolitical tension between Israel and Iran can surge the price once again. Oil has a good back up at $120, if it breaks that level it would further add to the upward movement in the markets.
Global Market:
Orders for U.S. durable goods unexpectedly rose in June, and sales of new homes were higher than forecast, easing concern that the economic slowdown will worsen. A private report showed consumer sentiment rose from a 28-year low. Morgan Stanley economists have raised their forecast for Q2 GDP growth to 2.4% from 2.2% after the durable-goods report. The important data to watch in the US next week is July Dallas Fed manufacturing survey, June Chicago Fed Midwest manufacturing index, July consumer confidence & advance Q2 growth estimate by the government on July 31.
Monday, July 28, 2008
28-07-2008 Market Ahead:
Market Ahead:
Expect a mercurial week ahead of RBI meet and result from biggies:
RBI is likely to continue with its tight money policy for some time as various measures are already in place to curb the inflation rate. The week
on week inflation did cooled off from its highs off 11.91% to 11.89% (two ticks) but still it is way above the RBI's leeway of 5.5%.
By June, the street was expecting 50 basis points (bps) in Repo with a CRR hike as well. But in the last few weeks the sentiment in the markets
has changed and it is anticipating RBI to increase only Repo by 25 bps (which is already been discounted).
RBI keeping the rates steady would certainly induce positive sentiment in the market. On the other side, RBI hiking both the Repo and the
CRR can result into huge sell-off in the coming days.
F&O expiry and Q1 results:
High volatility is expected in the markets ahead of FnO expiry of the July, 08 series and results of some stock market biggies including many
companies from the Nifty and Sensex. Investors & traders will keep their finger crossed for some biggies in the intemperately beaten down
sectors like Banking and Capital goods.
Companies which would be watched carefully will be ICICI Bank, Reliance Infrastructure, ONGC, HDFC Bank, L&T, Cairn India, NTPC,
Mahindra & Mahindra and Tata Motors among others.
Oil can play a spoilsport:
Oil after topping out at $147.8 per barrel has calmed down for some time at $120 levels, falling over 17% during the last two week. This has
been backed by concerns of weakening demand in the largest economy in the world, increase in oil inventory and the greenback gaining against the Euro.
However a supply disruption by Dolly or a geopolitical tension between Israel and Iran can surge the price once again. Oil has a good back up at
$120, if it breaks that level it would further add to the upward movement in the markets.
Global Market:
Orders for U.S. durable goods unexpectedly rose in June, and sales of new homes were higher than forecast, easing concern that the economic
slowdown will worsen. A private report showed consumer sentiment rose from a 28-year low. Morgan Stanley economists have raised their
forecast for Q2 GDP growth to 2.4% from 2.2% after the durable-goods report.
The important data to watch in the US next week is July Dallas Fed manufacturing survey, June Chicago Fed Midwest manufacturing index, July
consumer confidence & advance Q2 growth estimate by the government on July 31.
Expect a mercurial week ahead of RBI meet and result from biggies:
RBI is likely to continue with its tight money policy for some time as various measures are already in place to curb the inflation rate. The week
on week inflation did cooled off from its highs off 11.91% to 11.89% (two ticks) but still it is way above the RBI's leeway of 5.5%.
By June, the street was expecting 50 basis points (bps) in Repo with a CRR hike as well. But in the last few weeks the sentiment in the markets
has changed and it is anticipating RBI to increase only Repo by 25 bps (which is already been discounted).
RBI keeping the rates steady would certainly induce positive sentiment in the market. On the other side, RBI hiking both the Repo and the
CRR can result into huge sell-off in the coming days.
F&O expiry and Q1 results:
High volatility is expected in the markets ahead of FnO expiry of the July, 08 series and results of some stock market biggies including many
companies from the Nifty and Sensex. Investors & traders will keep their finger crossed for some biggies in the intemperately beaten down
sectors like Banking and Capital goods.
Companies which would be watched carefully will be ICICI Bank, Reliance Infrastructure, ONGC, HDFC Bank, L&T, Cairn India, NTPC,
Mahindra & Mahindra and Tata Motors among others.
Oil can play a spoilsport:
Oil after topping out at $147.8 per barrel has calmed down for some time at $120 levels, falling over 17% during the last two week. This has
been backed by concerns of weakening demand in the largest economy in the world, increase in oil inventory and the greenback gaining against the Euro.
However a supply disruption by Dolly or a geopolitical tension between Israel and Iran can surge the price once again. Oil has a good back up at
$120, if it breaks that level it would further add to the upward movement in the markets.
Global Market:
Orders for U.S. durable goods unexpectedly rose in June, and sales of new homes were higher than forecast, easing concern that the economic
slowdown will worsen. A private report showed consumer sentiment rose from a 28-year low. Morgan Stanley economists have raised their
forecast for Q2 GDP growth to 2.4% from 2.2% after the durable-goods report.
The important data to watch in the US next week is July Dallas Fed manufacturing survey, June Chicago Fed Midwest manufacturing index, July
consumer confidence & advance Q2 growth estimate by the government on July 31.
28-07-2008 Corporate News/ : Announcements
28-07-2008
Corporate News/ : Announcements
Chennai Petro pipeline to cost Rs 700 cr instead of Rs 65 cr : Circumstances have forced Chennai Petroleum Corporation Ltd (CPCL) to abandon a Rs 65.4-crore project and think of a Rs 700-crore alternative.Crude oil for CPCL’s 9.5-million-tonne refinery at Manali, north Chennai, needs to be brought to the Chennai port and piped down to the refinery. Today, a decades-old, 30-inch pipeline connects Chennai Port to CPCL’s Manali refinery, in north Chennai. For over three years now, CPCL has been planning to replace the pipeline with another 42-inch one.
NMDC-CMDC to speed up work at Chhattisgarh mine: NMDC-CMDC Ltd, the joint venture between State-run National Mineral Development Corporation and Chhattisgarh Mineral Development Corporation (CMDC), has decided to expedite work on Deposit Number 13 of the Bailadila mines in Chhattisgarh.
NTPC plans 2,000 mw N-power unit: Joining the growing list of companies trying to tap the opportunity that is bound to arise out of a possible Indo-US nuclear deal, NTPC has drawn up plans to enter nuclear power generation by setting up a 2,000 megawatt (mw) project. In a report submitted to the Ministry of Power, NTPC, which has one-fourth of India’s installed power capacity, said it would operationalise the project within the next decade in two phases of 1,000 mw each.
RIL arm set to supply gas to 52 cities: RIL, which is set to become the single-largest gas producer in the country once its Krishna-Godavari gas hits full production, may also become the largest gas distributor soon with operations in 52 major cities. Reliance Gas Corporation (RGCL), a subsidiary of RIL, has emerged as the sole entity to submit expression of interest (EoI) for these cities. The company would have an exclusivity over gas distribution in these cities for five years as per the gas distribution policy.
ONGC keen to restart exploration on Kochi-Konkan coast : Oil and Natural Gas Corporation is to restart its oil exploration on the Kochi-Konkan coast in the near future. Earlier in 2004, ONGC had made exploration along the coast by deploying two rigs although it did not generate the desired results.
Reliance Power to borrow $4 b for new projects : Reliance Power Ltd, the power generation company of Anil Ambani group, said the company has received approval from the Reserve Bank of India to borrow $4 billion as external commercial borrowing in order fund two mega power projects. The large sum would be utilised for constructing two ultra mega power projects, each having 4,000 MW capacity. The plants would be located in Sasan, Madhya Pradesh and Krishnapatnam in Andhra Pradesh .
Exide to invest Rs 180 cr on capacity expansion : Exide Industries Ltd will invest Rs 180 crore towards capacity expansion of both automotive and industrial batteries in this fiscal.
Zensar to set up facilities in Pune, Hyderabad : Zensar Technologies is setting up facilities, each with 300 seats, one at the EON SEZ in Pune and another in Hyderabad. Zensar, is being set up at EON, an SEZ for IT and ITeS in Kharadi, and is expected to be ready by August this year. EON is an SEZ spread over 45 acres and has four blocks, of which two are functional. The facility in Hyderabad is expected to be operational by February 2009. Both the 300-seater facilities would initially start with IT services and may extend them to its BPO services later.
Corporate News/ : Announcements
Chennai Petro pipeline to cost Rs 700 cr instead of Rs 65 cr : Circumstances have forced Chennai Petroleum Corporation Ltd (CPCL) to abandon a Rs 65.4-crore project and think of a Rs 700-crore alternative.Crude oil for CPCL’s 9.5-million-tonne refinery at Manali, north Chennai, needs to be brought to the Chennai port and piped down to the refinery. Today, a decades-old, 30-inch pipeline connects Chennai Port to CPCL’s Manali refinery, in north Chennai. For over three years now, CPCL has been planning to replace the pipeline with another 42-inch one.
NMDC-CMDC to speed up work at Chhattisgarh mine: NMDC-CMDC Ltd, the joint venture between State-run National Mineral Development Corporation and Chhattisgarh Mineral Development Corporation (CMDC), has decided to expedite work on Deposit Number 13 of the Bailadila mines in Chhattisgarh.
NTPC plans 2,000 mw N-power unit: Joining the growing list of companies trying to tap the opportunity that is bound to arise out of a possible Indo-US nuclear deal, NTPC has drawn up plans to enter nuclear power generation by setting up a 2,000 megawatt (mw) project. In a report submitted to the Ministry of Power, NTPC, which has one-fourth of India’s installed power capacity, said it would operationalise the project within the next decade in two phases of 1,000 mw each.
RIL arm set to supply gas to 52 cities: RIL, which is set to become the single-largest gas producer in the country once its Krishna-Godavari gas hits full production, may also become the largest gas distributor soon with operations in 52 major cities. Reliance Gas Corporation (RGCL), a subsidiary of RIL, has emerged as the sole entity to submit expression of interest (EoI) for these cities. The company would have an exclusivity over gas distribution in these cities for five years as per the gas distribution policy.
ONGC keen to restart exploration on Kochi-Konkan coast : Oil and Natural Gas Corporation is to restart its oil exploration on the Kochi-Konkan coast in the near future. Earlier in 2004, ONGC had made exploration along the coast by deploying two rigs although it did not generate the desired results.
Reliance Power to borrow $4 b for new projects : Reliance Power Ltd, the power generation company of Anil Ambani group, said the company has received approval from the Reserve Bank of India to borrow $4 billion as external commercial borrowing in order fund two mega power projects. The large sum would be utilised for constructing two ultra mega power projects, each having 4,000 MW capacity. The plants would be located in Sasan, Madhya Pradesh and Krishnapatnam in Andhra Pradesh .
Exide to invest Rs 180 cr on capacity expansion : Exide Industries Ltd will invest Rs 180 crore towards capacity expansion of both automotive and industrial batteries in this fiscal.
Zensar to set up facilities in Pune, Hyderabad : Zensar Technologies is setting up facilities, each with 300 seats, one at the EON SEZ in Pune and another in Hyderabad. Zensar, is being set up at EON, an SEZ for IT and ITeS in Kharadi, and is expected to be ready by August this year. EON is an SEZ spread over 45 acres and has four blocks, of which two are functional. The facility in Hyderabad is expected to be operational by February 2009. Both the 300-seater facilities would initially start with IT services and may extend them to its BPO services later.
Saturday, July 26, 2008
26-07-08 Corporate News/ : Announcements
26th July 2008
Corporate News/ : Announcements
Pantaloon offers 1:10 bonus with differential rights: Pantaloon Retail approved a proposal to give shareholders one bonus share with different voting and dividend rights for every 10 held. The new shares called Class B shares will get 5 per cent more dividend than ordinary shares and would be entitled to one vote for every 10 held.
R-Infra plans four JVs with Shanghai Electric: Reliance Infrastructure, which plans to set up a $3-billion joint venture with Shanghai Electric Power Co to make power equipment in India, is setting up four more joint ventures with the Chinese partner to offer a range of third-party services to power utilities in India. The services to be offered in the domains of technical and design support, operations and maintenance, after-sales services and erection of power equipment would involve a combined investment of $400-600 million and generate up to 400 jobs.
ONGC to enter nuclear mining: Oil and Natural Gas Corporation, plans to enter uranium mining in alliance with public-sector Uranium Corporation of India, aiming to tap the business opportunity from nuclear fuel shortage in Asia's third largest economy. ONGC is aligning with Uranium Corporation as the latter is the only entity allowed to undertake uranium mining in India, and has the power to allot mining leases .
Reliance Industries Ltd Q1 Net up 13%: Reliance Industries Ltd has reported a 13 per cent increase in net profit for the first quarter ended June 2008, as it was able to sell its products at higher prices and also because of doubling of export sales. It has reported a net profit of Rs 4,110 crore or earnings per share (EPS) of Rs.28.3 for the quarter ended June 2008, against Rs 3,630 crore, or EPS of Rs 25, in the year-ago period. Turnover in the first quarter of fiscal 2009 increased 41 per cent to touch Rs 41,805 crore against Rs 29,721 crore in April-June 2007.
R-Power raises $1 bn from three Chinese banks: Reliance Power (R-Power) plans to set up 28,000 mw of power plants in India, has secured $1 billion (or around Rs 4,200 crore) funding from three Chinese banks for the Sasan ultra mega power project (UMPP) in Madhya Pradesh.The fund raised from China Exim Bank, Chinese Development Bank and China Export & Credit Insurance Corporation (Sinosure) will help R-Power to achieve financial closure of the Sasan plant, which is projected to have an investment of Rs.15,000 crore.
GACL in Rs 600-cr JV with Dow Chemicals: Gujarat Alkalies and Chemicals (GACL) has formed a joint venture for setting up a Rs 600 crore plant at Dahej with Dow Chemicals, a US based multinational. The new joint venture company is registered as" DOW-GACL Solvdenture.
Tata Motors developing electric car, host of green cars: Tata Motors is developing an electric car, besides a host of eco-friendly, hybrid, bio-fuel and compressed-air run cars.
Corporate News/ : Announcements
Pantaloon offers 1:10 bonus with differential rights: Pantaloon Retail approved a proposal to give shareholders one bonus share with different voting and dividend rights for every 10 held. The new shares called Class B shares will get 5 per cent more dividend than ordinary shares and would be entitled to one vote for every 10 held.
R-Infra plans four JVs with Shanghai Electric: Reliance Infrastructure, which plans to set up a $3-billion joint venture with Shanghai Electric Power Co to make power equipment in India, is setting up four more joint ventures with the Chinese partner to offer a range of third-party services to power utilities in India. The services to be offered in the domains of technical and design support, operations and maintenance, after-sales services and erection of power equipment would involve a combined investment of $400-600 million and generate up to 400 jobs.
ONGC to enter nuclear mining: Oil and Natural Gas Corporation, plans to enter uranium mining in alliance with public-sector Uranium Corporation of India, aiming to tap the business opportunity from nuclear fuel shortage in Asia's third largest economy. ONGC is aligning with Uranium Corporation as the latter is the only entity allowed to undertake uranium mining in India, and has the power to allot mining leases .
Reliance Industries Ltd Q1 Net up 13%: Reliance Industries Ltd has reported a 13 per cent increase in net profit for the first quarter ended June 2008, as it was able to sell its products at higher prices and also because of doubling of export sales. It has reported a net profit of Rs 4,110 crore or earnings per share (EPS) of Rs.28.3 for the quarter ended June 2008, against Rs 3,630 crore, or EPS of Rs 25, in the year-ago period. Turnover in the first quarter of fiscal 2009 increased 41 per cent to touch Rs 41,805 crore against Rs 29,721 crore in April-June 2007.
R-Power raises $1 bn from three Chinese banks: Reliance Power (R-Power) plans to set up 28,000 mw of power plants in India, has secured $1 billion (or around Rs 4,200 crore) funding from three Chinese banks for the Sasan ultra mega power project (UMPP) in Madhya Pradesh.The fund raised from China Exim Bank, Chinese Development Bank and China Export & Credit Insurance Corporation (Sinosure) will help R-Power to achieve financial closure of the Sasan plant, which is projected to have an investment of Rs.15,000 crore.
GACL in Rs 600-cr JV with Dow Chemicals: Gujarat Alkalies and Chemicals (GACL) has formed a joint venture for setting up a Rs 600 crore plant at Dahej with Dow Chemicals, a US based multinational. The new joint venture company is registered as" DOW-GACL Solvdenture.
Tata Motors developing electric car, host of green cars: Tata Motors is developing an electric car, besides a host of eco-friendly, hybrid, bio-fuel and compressed-air run cars.
Friday, July 25, 2008
July 25th Market News
25th July 2008
Corporate News/ : Announcements
Exide to double OEM supplies by Fy10: Exide Industries plans to double its supplies to automobile makers in 2009-10 to 5 million units. The rise in supply is seen following a slew of agreements with original equipment makers for passenger cars, most of which will hit the roads in 2009-10.
Bilcare, MeadWestvaco acquire US pharma firm: Bilcare Ltd and US-based MeadWestvaco Corp (MWV) have jointly acquired pharmaceutical packaging company International Labs of St. Petersburg, Florida. The acquisition will leverage capabilities for adherence-promoting pharmaceutical packaging and streamline the supply chain.
RIL gas case adjourned :The division bench of the Bombay High Court on Tuesday adjourned the case between Mr Mukesh Ambani promoted Reliance Industries Ltd and Mr Anil Ambani led Reliance Natural Resources Ltd till Wednesday over the sharing of natural gas from the Krishna-Godavari gas fields, located of the Eastern seaboard. The division bench directed the matter to be placed before the Chief Justice of the Bombay High Court, who will decide which bench should hear the final argument in the case.
Adjustment in Futures and Options contracts of INDIA INFOLINE LTD. on account of Sub-division of share: INDIA INFOLINE LTD has announced Stock split in the ratio of 10:2 to the equity shareholders of the company .The record date announced by the company for this purpose is August 18, 2008, based on which the Exchange has fixed August 08, 2008 as the ‘Ex-date’.Thus, the Final adjustment factor for the Stock Spilt in this case would be 5.The adjusted market lot will be arrived at by multiplying the old market lot by the adjustment factor (5).Change in Positions held: The adjusted position will be arrived at by multiplying the old position by the adjustment factor (5).
Corporate News/ : Announcements
Exide to double OEM supplies by Fy10: Exide Industries plans to double its supplies to automobile makers in 2009-10 to 5 million units. The rise in supply is seen following a slew of agreements with original equipment makers for passenger cars, most of which will hit the roads in 2009-10.
Bilcare, MeadWestvaco acquire US pharma firm: Bilcare Ltd and US-based MeadWestvaco Corp (MWV) have jointly acquired pharmaceutical packaging company International Labs of St. Petersburg, Florida. The acquisition will leverage capabilities for adherence-promoting pharmaceutical packaging and streamline the supply chain.
RIL gas case adjourned :The division bench of the Bombay High Court on Tuesday adjourned the case between Mr Mukesh Ambani promoted Reliance Industries Ltd and Mr Anil Ambani led Reliance Natural Resources Ltd till Wednesday over the sharing of natural gas from the Krishna-Godavari gas fields, located of the Eastern seaboard. The division bench directed the matter to be placed before the Chief Justice of the Bombay High Court, who will decide which bench should hear the final argument in the case.
Adjustment in Futures and Options contracts of INDIA INFOLINE LTD. on account of Sub-division of share: INDIA INFOLINE LTD has announced Stock split in the ratio of 10:2 to the equity shareholders of the company .The record date announced by the company for this purpose is August 18, 2008, based on which the Exchange has fixed August 08, 2008 as the ‘Ex-date’.Thus, the Final adjustment factor for the Stock Spilt in this case would be 5.The adjusted market lot will be arrived at by multiplying the old market lot by the adjustment factor (5).Change in Positions held: The adjusted position will be arrived at by multiplying the old position by the adjustment factor (5).
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