Thursday, Jun 16

Stocks To Watch: ONGC, Ashok Leyland, ITC, Century Textiles, HCC

Thursday, Jun 16 - Morning brief for the stock market:

BIG PICTURE

* Top bankers have warned the government that if it doesn't resume economic reforms at the earliest, the current slowdown may turn into a slump. (ET)

TOP EVENTS TODAY

* Reserve Bank of India to release mid-quarter review of monetary policy for 2011-12 (Apr-Mar) at 1200 IST. The central bank is widely expected to hike repo rate by 25 basis points to 7.50%, and keep Cash Reserve Ratio unchanged at 6%.

* Board Meetings of:

+ ADF Foods to consider warrant issue to promoters on preferential basis.

+ Indo Asian Fusegear to review scheme of arrangement.

+ LGS Global to consider preferential issue of warrants.

INDICATORS (previous session)

* NSE provisional net buy/(sale) in bln rupees, Jun 15: FII (1.71), DII 1.41

* Institutional net buy/(sale) in bln rupees, Jun 14: FIIs (3.73), MF 0.43

* FII NSE futures net buy/(sale) in bln rupee, Jun 15: index (4.58), shr (5.13)

* Sensex 18132.21, down 176.42 points; Nifty 5447.50, down 53.00 points

* Crude: $95.36/bbl; Rupee: 44.76/$1; Gold: $1,526.20/ounce; 10-yr yld: 8.3977%

OUTLOOK

* Share indices are seen opening down 1% tailing the fall in overseas markets and on caution ahead of the Reserve Bank of India's mid-quarter policy review.

GLOBAL STOCK MARKETS

* US: Equities declined Wednesday as the swelling debt crisis in Greece fuelled global economic growth concerns. Also, weak economic data added to the losses.

* ASIA: Key markets were sharply down today as investors fretted over a possible default by debt-laden Greece and a slowdown in the growth after disappointing US economic data.

IPO WATCH

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* Government gets bids from at least nine merchant bank for National Buildings Construction Corp's initial public offering of shares.

* Multi Commodity Exchange's 6.43-mln-share issue gets the highest grade 5/5 by rating agency CRISIL.

SECTOR NEWS

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* AVIATION: India has signed an agreement with Washington to purchase ten C-17 Globemaster-III transport aircraft. (ET)

* BANKING: Moody's may cut rating of large French banks because of their investments in Greece. (ET)

Small Industries Development Bank of India's Apr-Jun advance tax payment 750 mln rupees.

Asian Development Bank has approved a $300 mln loan for upgrading state highways in Madhya Pradesh.

* CEMENT: The Serious Fraud Investigation Office is looking into allegations of cartelisation against ULTRATECH CEMENT, AMBUJA CEMENTS, and ACC. (ET)

* ENERGY: State-run oil companies have raised jet fuel prices by average 1,431 rupee per kL from today.

Russia has rejected India's request for tax breaks on investments made by ONGC Videsh in Imperial Energy and Sakhalin-I. (ET)

* EXPORTS: India's services exports in April was worth $11.47 bln and its services imports were worth $6.89 bln.

* INFRASTRUCTURE: The roads ministry has sought government nod to spend 600 bln rupees for upgradation of 15,000 km of national highways. (ToI)

Future Group's arm plans to set up 12 large-scale logistics parks across nine cities in the next five years. (BS)

* PORTS: Essar Ports is in talks for a project in Sault Ste Marie, Ontario, Canada. (DNA)

* REGULATORY: The corporate affairs ministry will crack down on 12 public listed companies that provided wrong information in annual reports. (Mint

* SEBI: Has asked rating agencies to implement a standardised system for rating symbols and definitions to make it easier for investors to understand.

* STOCK BROKING: Some top brokerages have started laying-off middle and junior-level staff as trading volumes on exchanges plunge. (ET)

* SUGAR: Centre will take call on whether to allow more sugar exports in the next 10 days over and above the 500,000 tn already allowed.

* TAX: Union Law Minister M. Veerappa Moily has suggested Finance Minister Pranab Mukherjee to completely overhaul the tax administration. (BS)

* TELECOM: Malaysian telecom company Maxis holds overwhelming presence in the joint venture that controls 35% of Aircel and is supposed to represent the

Indian shareholding interest as per laws. (ET)

A government panel set up to examine security threat from 15 forms of communication--including Gmail, BlackBerry services, and Skype--has recommended

no services be banned on the ground that it cannot be monitored. (ET)

Former Telecom Minister Dayanidhi Maran flouted Telecom Regulatory Authority of India's rules to give license to Aircel. (HT)

STOCKS

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* AMAR REMEDIES: Shareholders approve GDR, FCCB, or QIP issue and sale of factory land and building at Surat and Dehradun. (

* ASHOK LEYLAND: Approves 1-for-1 bonus share issue.

* BHARAT HEAVY ELECTRICALS: Apr-Jun advance tax payment around 5.2 bln rupees as against 4.3 bln rupees a year ago.

* BHARTI AIRTEL: Apr-Jun advance tax payment around 1.7 bln rupees as against 1.8 bln rupees a year ago.

* BOMBAY DYEING: Plans to halve its debts in the next two years. (BL)

* CENTURY TEXTILES: ITC is eyeing the paper and pulp business of the company. (ToI)

* EVERONN EDUCATION: Is entering the 150-bln-rupee school uniform market. (BL)

* GAIL (INDIA): Apr-Jun advance tax payment around 2.5 bln rupees as against 2.8 bln rupees a year ago.

* GODREJ INDUSTRIES: Hopes to expand revenue 10 times over the next 10 years and become an 850-bln-rupee conglomerate. (Mint)

* GRAUER & WEIL INDIA: Approves 10-for-1 stock split.

* GVK POWER AND INFRASTRUCTURE: Is set to purchase two of Hancock Prospecting's thermal coal mines in Australia for around $2.4 bln. (Mint)

* HCL TECHNOLOGIES: Signs a partnership agreement with US-based Epicor Software Corp to implement its Enterprise Resource Planning product Epicor 9.

* HINDUSTAN CONSTRUCTION CO: Central government will soon decide on conditional clearance for the first phase of Lavasa project.

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* ITC: Is eyeing on the paper and pulp business of CENTURY TEXTILES. (ToI) Will prefer a "pair of safe hands" from inside the company to external candidates while choosing its new chief executive. (ET)

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* JAIPRAKASH ASSOCIATES: Plans to foray into aviation with investments of up to 2.5 bln rupees as equity initially.

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* MARUTI SUZUKI: Plans to produce Swift, Dzire, and SX4 models from its Gurgaon plant as strike at the Manesar facility continues. (ET)

* MMTC: Is eyeing stake in Russia's state-owned diamond mining firm Alrosa. (BL)

* NCC: Is set to get a 50-bln-rupee contract from the Krishnapatanam thermal power project. (BL)

* NESCO: Withdraws 10-for-1 stock spilt plan.

* NOVA IRON: Bhushan Steel, which recently bought 22.9% in the company, will very soon come up with an open offer to buy more stake. (DNA)

* NOVARTIS INDIA: Apr-Jun advance tax payment around 100 mln rupees.

* NTPC: Apr-Jun advance tax payment around 3.6 bln rupees as against 2.8 bln rupees a year ago.

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* OIL AND NATURAL GAS CORP: Is in talks with BG Exploration and Production, India, and Italy's ENI to sell up to 30% in its Krishna-Godavari DWN 98/2

block. (BS)

The company's proposed follow-on public offer is likely to get deferred as the government has failed appoint independent directors on its board. (PTI)

* ORICON ENTERPRISES: Allots 11 mln shares to Clearwater Capital Partners Singapore Fund III P Ltd.

* PAE: To mull issue of preference shares to promoters and decide on investment plans for wholly owned subsidiary, PAE Renerables Pvt, on Saturday.

* PFIZER: Apr-Jun advance tax payment around 130 mln rupees.

* PIPAVAV SHIPYARD: Has launched on Sunday two panamax dry bulk carriers to be delivered to Golden Ocean Group in August.

* POWER FINANCE CORP: Apr-Jun advance tax payment around 1.65 bln rupees versus 1.28 bln rupees a year ago.

* POWER GRID CORP: Apr-Jun advance tax 750 mln rupees compared with 600 mln rupees year ago.

* RURAL ELECTRIFICATION CORP: Apr-Jun advance tax payment around 1.5 bln rupees versus 1.3 bln a year ago.

* STANDARD CHARTERED: Apr-Jun advance tax payment around 2.5 bln rupees.

* STEEL AUTHORITY OF INDIA: Plans to raise $400 mln from overseas lenders to part-finance its expansion and modernisation plans. (ET)

Apr-Jun advance tax payment around 3.5 bln rupees as against 3.4 bln rupees a year ago.

* SURANA INDUSTRIES: Plans to invest 79.4 bln rupee to set up a 1.4-mln-tn per year steel making facility at Raichur in Karnataka.

* TANTIA CONSTRUCTION: Allots 2.45 mln warrants to promoters on preferential basis at a price of 84.25 rupees per convertible warrant.

* TATA COMMUNICATION SERVICES: Has bagged an over $50 mln deal from Swisspost. (BL)

* TATA CONSULTANCY SERVICES: Company's small and medium business unit iON has received a contract from Hyderabad's Razi healthcare

* UNION BANK OF INDIA: Apr-Jun advance tax payment around 1.75 bln rupees.

* VARUN INDUSTRIES: Has chalked out a 28-bln-rupees investment plan to set up two new projects in Rajasthan and Karnataka. (BS)

* ZEE ENTERTAINMENT ENTERPRISES: Apr-Jun advance tax around 350 mln rupees.