Wednesday, Jun 22

Stocks To Watch: Idea Cellular, ONGC, TCS, Infosys, NMDC, steel

Wednesday, Jun 22 - Morning brief for the stock market:

BIG PICTURE

* IMD cuts monsoon forecast to 95% of long period average from 98% .

TOP EVENTS TODAY

* Annual General Meet of: Andhra Bank, Dhanlaxmi Bank, Navin Fluorine International, Ramkrishna Forgings.

* Board Meetings of:

+ Tulsyan NEC to consider dividend.

INDICATORS (previous session)

* NSE provisional net buy/(sale) in bln rupees, Jun 21: FII (5.63), DII 4.30

* Institutional net buy/(sale) in bln rupees, Jun 20: FIIs (4.27), MF 3.38

* FII NSE futures net buy/(sale) in bln rupee, Jun 21: index 4.92, shr 2.37

* Sensex 17560.30, up 53.67 points; Nifty 5275.85, up 17.95 points

* Crude: $93.78/bbl; Rupee: 44.84/$1; Gold: $1,547.20/ounce; 10-yr yld: 8.2256%

OUTLOOK

* Local share indices are likely to jump in early session today as fear that Greece may default on its debt may be allayed after its government won a no-confidence vote in the Parliament on Tuesday.

GLOBAL STOCK MARKETS

* US: Shares rallied for the fourth session to end up on Tuesday amid rising hope that Greece will be able to avoid a default on its debt payment in July.

* ASIA: Asian markets soared today as Greece's Prime Minister George Papandreou's government won a no-confidence vote in the Parliament on Tuesday, boosting expectation that the nation will not default on its sovereign debt.

IPO WATCH:

* Tata Autocomp plans to raise 7.5 bln-11.0 bln rupees through an initial public offering in the next two-three weeks. (var)

SECTOR NEWS

* AUTOMOBILES: Renault plans to launch a new hatchback in 2012 that will compete with MARUTI SUZUKI INDIA's Swift. (var)

* AVIATION: Low cost airline IndiGo is close to signing a final agreement with Airbus for purchase of 180 aircrafts. (ET)

* BANKING: Finance minister will meet chiefs of public sector banks on Jul 8 to take stock of the current environment of high lending rates. (BS)

* CHEMICALS: Aditya Birla Group completes acquisition of Columbian Chemicals.

* CLIMATE: India Meteorological Department cuts projection on southwest monsoon rains to 95% of long-period average from 98% earlier.

* COAL: A Group of Ministers on coal has decided to set up a committee headed by Planning Commission member Chaturvedi to look into the no-go area imbroglio. (BS)

* CORPORATE: Tata and Infosys have emerged top two brands in India in a new index. (ET)

SEBI will take a final call on the new takeover code after taking into account the government's view. (ET)

Ministry of corporate affairs has formed a core committee to look at the issue of regulatory overlap in the new Competition Act. (FE)

* ECONOMY: Standard Chartered economist Anubhuti Sahay says weak monsoon rains may erode rural demand, fan inflation.

* EXCHANGES: Forwards Market Commission proposes to come out with uniform transaction charges across exchanges. (BS)

* FINANCE: Government is mulling various options to reduce hedging costs under the proposed Infrastructure Debt Fund in case the money is raised via dollar-denominated bonds.

* GOVERNMENT: West Bengal Chief Minister Mamata Banerjee says she is opposed to forcible land acquisition.

* INDUSTRY: West Bengal Chief Minister and head of All India Trinamool Congress Mamata Banerjee said she was against any kind of forcible land acquisition.

* INFORMATION TECHNOLOGY: TATA CONSULTANCY SERVICES, INFOSYS AND HCL TECHNOLOGIES are in race to acquire banking product software business of UK's Misys. (ET)

* INSURANCE: Companies which have completed 10 years of operations and have strong financials will be allowed to tap capital markets. (var)

* MARKET: Life Insurance Corporation of India has decided to chop off 57 illiquid scrips from its portfolio. (FE)

* MUTUAL FUNDS: SEBI may make it mandatory for asset management companies to disclose the track record of their fund managers while promoting equity-oriented schemes. (Mint)

* PORTS: The regulator of India's major ports has rejected request of port terminals to increase rates and even asked for up to 35% cuts in some cases. (Mint)

* STEEL: PSU Steel makers have agreed to monthly price revision of coal by BHP Biliton for at least 50% of the buy. (HBL)

* TELECOM: Bombay High Court has allowed telecom companies to pay customs and excise duties on imports via credit scrips for an amount up to 10% of exports. (ET)

STOCKS

* AUTOLINE INDUSTRIES: Neither the company nor its promoters are in stake sale talks with the Ruia Group.

* AXIS BANK: Opens representative office in Abu Dhabi.

* BAJAJ AUTO: Partner in small car project Renault has said it may go solo on the project. (ToI)

* BHARTI AIRTEL: Tower subsidiary Bharti Infratel has begun exploratory talks with merchant banks for advice on a possible public listing.

* GAIL INDIA: Is looking to expand rapidly in city gas distribution and related pipeline infrastructure business. (BS)

* GREAT OFFSHORE: The company's board has approved a contract to Pinky Shipyard for building three support vessels, which are to be delivered by 2013.

* HDFC BANK: May buy 1% stake in Bombay Stock Exchange at 375 rupees a share through the preferential allotment route. (ET)

* HINDUSTAN PETROLEUM CORP: Over the weekend, leakage in the company's pipeline carrying diesel from a ship at Mundra port in Gujarat resulted in a "minor" oil spill, which was brought under control "soon".

* IDEA CELLULAR: CBI has closed its investigations into the company after it found nothing wrong in the way it was allocated spectrum. (ET)

* INDIAN OIL CORP: Plans to raise $500 mln from overseas markets for its expansion.

* ING VYSYA BANK: Raises Base Rate by 25 basis points to 9.70% with immediate effect.

* KINGFISHER AIRLINES: Plans to add 72 aircraft to its fleet by 2015-16 (Apr-Mar), up from 67 planned earlier.

* MYSORE PETRO CHEMICALS: Shuts Raichur catalyst unit for maintenance for three weeks.

* NMDC: May acquire controlling stake in a coking coal mine from a Russian group. (ET)

* OIL AND NATURAL GAS CORP: Is in talks with BG Group and Italy's Eni to sell stake in its block in Krishna-Godavari basin. (Reuters)

* RASHTRIYA CHEMICALS AND FERTILISERS: Upcoming presidential elections in Ghana may upset plans to set up a $1 bln urea factory in the country. (Mint)

* RELIANCE INDUSTRIES: Differs with partner Niko Resources on potential of satellite discoveries around its KG-D6 block. (FC)

* STATE BANK OF INDIA: Cuts 2011-12 (Apr-Mar) credit growth estimate to 16-19% from 19-20% earlier. Witnessing some slowdown in corporate lending.

Head expects the bank's CAMELS--capital, adequacy, asset quality, management quality, earnings, liquidity and sensitivity--rating issued by the Reserve Bank of India to improve in 2010-11 from the previous financial year.

* TATA MOTORS: Promoter Tata Sons revokes 6 mln pledged shares of the company.

The company has moved Calcutta High Court challenging the legality of the Singur land return act. (ToI)

* VIJAY TEXTILES: To mull sale of stake in the company's Hyderabad information technology park project on Jun 29.

* WOCKHARDT: Launches three new products in three weeks in the US.