Wednesday, Aug 24 - Morning brief for the stock market

Stocks To Watch: Hindalco, Cairn, Cipla, Lupin, Shriram EPC
Wednesday, Aug 24 - Morning brief for the stock market:
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BIG PICTURE
* PM writes to Anna Hazare; ready to table Jan Lokpal Bill on speaker OK
* Moody's Investors Service cuts Japan sovereign credit rtg to Aa3 (var)
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TOP EVENTS TODAY
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* Apr-Jun earnings to be detailed by: MphasiS, Thiru Arooran Sugars.
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* Annual General Meet of: Apar Industries, Asian Hotels (East), Bafna Pharmaceuticals, Can Fin Homes, Eclerx Services, Forbes & Co, India Cements
Capital, Loyal Textile Mills, Mawana Sugars, Ramsons Projects, Vintron Informatics.
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* Board Meetings of:
+ Venus Remedies to consider issue of fully convertible warrants to
promoters and allotment of equity shares on conversion of FCCBs.
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INDICATORS (previous session)
* NSE provisional net buy/(sale) in bln rupees, Aug 23: FII (1.00), DII 3.03
* Institutional net buy/(sale) in bln rupees, Aug 22: FIIs (7.66), MF 1.37
* FII NSE futures net buy/(sale) in bln rupee, Aug 23: index 4.88, shr 1.48
* Sensex 16498.47, up 156.77 points; Nifty 4948.90, up 50.10 points
* Crude: $85.44/bbl; Rupee: 45.63/$1; Gold: $1853.30/ounce; 10-yr yld: 8.2608%
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OUTLOOK
* Shares are seen opening slightly weak today as Asian indices erased early gains, but late recovery seen on short covering ahead of August futures expiry on Thursday.
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GLOBAL STOCK MARKETS
* US: US indices surged 3-4%, as weak economic data rekindled hopes that the Federal Reserve will take steps to stem deterioration in growth.
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* ASIA: Indices registered mild gains today on weak overseas cues. Sentiment was hurt by lower than estimated economic data released in the US Tuesday and
Moody's Investors Service downgrading Japan's sovereign debt rating. .
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IPO WATCH

* TD Power Systems has allotted over 1.3 mln shares to five anchor investors at 256 rupees each, the lower end of the price band of its 2.27-bln-rupee issue.
. Vaswani Industries has reached an agreement with Securities Exchange Board Of India to revive its IPO and plans to issue bonus shares. (ET)
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SECTOR NEWS

* AUTOMOBILE: Sonalika group in talks to acquire Italian tractor manufacturing firm to set up a base in Europe. (BS)
Audi India launches sport utility vehicle Q5 priced at 351.3 mln rupees, ex-showroom Mumbai. (FE)
* BANKING: RBI Deputy Governor Gokarn has said RBI is watching for signs of moderation in domestic demand.
Government not keen on state-owned companies securing bank licenses under the proposed new banking licences norms. (ET)
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* BUSINESS PROCESS OUTSOURCING: The outsourcing arm of Essar group, Aegis, aims to get listed on stock exchanges between FY12 and FY15. (FE)
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* CAPITAL GOODS: Volvo Construction Equipment plans to manufacture excavators of up to 30 tn capacity in India. (BS)
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* COMMODITIES: Jute industry under Competition Commission of India lens for alleged cartelisation. (BS)
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* ECONOMY: C. Rangarajan, chairman of the Economic Advisory Council, wants the Planning Commission to stop allocating funds to central ministries, says
it should be left to finance ministry. (ET)
India may reduces loans from the World Bank, as it is running risk of exceeding the borrowing limit from the global lender in the next three years.(BS)
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* FERTILISER: Chemicals and Fertiliser Minister, M.K. Alagiri, has opposed the plan to raise urea prices by 10% and decontrol fertiliser prices from the
next fiscal. (BL)
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* FMCG: Italian company Artsana SPA to manufacture toiletries and nursing products in India for its baby care brand Chicco. (ET)
Super-Max Personal Care plans to launch some of its products in India. (BL)
Indian biscuit makers such as Parle Products, BRITANNIA INDUSTRIES are looking at tie-ups in overseas markets to beat rising domestic competition.
(Mint)
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* GOVERNMENT: Centre has no immediate plan to allow foreign retail investors to directly purchase equities in Indian stock markets. (BL)
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* INFLATION: RBI expects headline inflation to slow down during Nov-Dec on base effect
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* INFORMATION TECHNOLOGY: NASSCOM "sees no reason" to revisit industry growth target of 16-18% for 2011-12 (Apr-Mar).
Accenture is planning to acquire residential and commercial mortgage processing service provider Zenta. (FE).
* PHARMACEUITICAL: Japanese firm Takeda in talks to acquire CIPLA and LUPIN. (ET)
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* POWER: Power companies can avail of duty exemption on imports of power equipment before getting mega power project certificate. (BS)
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* STEEL: The Central Empowered Committee has suggested sale of more than 25 mln tn of iron ore inventory lying unused be sold in the Karnataka. (ET)
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STOCKS
* ALLAHABAD BANK: Has sought 10 bln rupees of capital infusion from the government in 2011-12 (Apr-Mar) to maintain a capital adequacy ratio of
12.5%.
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* ALLCARGO GLOBAL LOGISTICS: To foray into hospitality, real estate and ports sectors under its master brand 'Avashya'. (ET)
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* BANK OF BARODA: To review credit and deposit targets for 2011-12 (Apr-Mar) after October.
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* BL KASHYAP & SONS: Employees Provident Fund Appellate Tribunal has stayed an order against the company for alleged provident fund payment default.
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* BLUESTAR INFOTECH: Is planning to set up a 100-seat delivery centre in the US. (BL)
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* CAIRN INDIA: Executive Director and Chief Financial Officer Indrajit Banerjee has resigned.
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* COAL INDIA: Is planning to adopt turnkey model for development of 21 washeries for beneficiation of 165 mln tonnes of raw coal in the second phase.(BL)
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* CUPID: Has received a 14.89-mln-rupee order from health ministry. .

* ESCORTS: Company is scouting for new location for its second plant, rules out Maharashtra for locations citing that the state is way too expensive. (FE)
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* FEDERAL BANK: Has sought Reserve Bank of India's approval to open a banking unit in Dubai International Financial Centre by December end.
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* GTL INFRASTRUCTURE: In talks for debt restructuring worth 100 bln rupees, investors ask for cut of nearly 30% in debt level for acquiring stake. (ET)
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* HINDALCO INDUSTRIES: Delays financial closure of the 78 bln rupees Aditya Aluminium refinery project due to uncertain market conditions. (BS)
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* HINDUSTAN CONSTRUCTION CO: IT solutions subsidiary, Highbar Technologies tiesup with SAP to launch Highbar CloudConnect, will serve the small and medium enterprises in India. (FE)
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* HINDUSTAN PETROLEUM CORP: Has sought more land from Maharashtra government to set up a new refinery with with the capacity of 9-15 mln tn per annum. (BS)
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* INDIAN METALS & FERRO ALLOYS: plans to spend 66 bln rupees over five years to set up 1320 MW power plant in Odisha. (BS)
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* L&T FINANCE HOLDINGS: Finds inclusion in BSE 500 index replacing Nagarjuna Fertilisers and Chemicals. (
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* LGS GLOBAL: Has approved raising funds through equity and debt.

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* MAHANAGAR TELEPHONE NIGAM: Has raised 5 bln rupees from various banks to repay debts and meet operational expenses. (PTI)
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* OBEROI REALTY: Brings in Samsung C&T Corp on board for its high-rise luxury project at Worli in Mumbai. (DNA)
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* ORIENTAL BANK OF COMMERCE: May trim credit growth target for 2011-12 (Apr-Mar) to 18% from 19% set earlier.
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* PIRAMAL HEALTHCARE: Research firm IIAS says company's non-core investments in realty, financial services and telecom not in investor interest. (ET)
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* PUNJAB & SIND BANK: Has raised deposit rates by up to 100 bps.

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* RELIANCE CAPITAL: Unit Reliance Portfolio Management to raise over 15 bln rupees to invest in real estate projects. (ET)
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* RELIGARE ENTERPRISES: Promoter Singh brothers raise 14 bln rupees debt from Standard Chartered, the funds could be used for the growth plans of the
company. (BS)
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* RELIGARE TECHNOLOGIES: Has teamed up with BHARTI AIRTEL using FORTIS HEALTHCARE as its knowledge partner to offer 24x7 medical assistance on phone to mobile phone users.(BL)
* RENAISSANCE JEWELLERY: Has completed acquisition of Ajit Garments.

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* ROHIT FERRO-TECH: Has started production at its sixth furnace at Haldia from Monday.
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* SHIPPING CORP OF INDIA: Has taken delivery of one offshore vessel.

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* SHRIRAM EPC: Has received a 6.4-bln-rupee solar power plant order.

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* STATE BANK OF INDIA: Head says hopeful of rights share issue this year, no plans to launch fixed rate home loan scheme.
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* SUPREME INDUSTRIES: Has denied reports of stake sale by promoters.
Japan's Kaneka Corporation is eyeing a minority stake in the company. (BS)
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* TATA MOTORS: Has launched variant of hatchback vehicle 'Vista' with base price 388,000 rupees ex-Delhi.
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* TALWALKARS: High rentals leads company to cut FY12 gymnamsium addition plan to 35-40 from 65 estimated in April. (Mint)
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* TITAN INDUSTRIES: Plans to enter into silver watches and helmets. (FE)
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* UCO BANK: Is looking at selling a portfolio of non-performing assets to improve asset quality and reduce provision requirements.
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* UNION BANK OF INDIA: Expects the government to infuse 3.5 bln rupees capital in Oct-Dec.
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* UNITED BREWERIES: May lose market share as Andhra Pradesh government, from Sept 1, has decided to source beer based on consumer preferences against earlier policy of placing orders in line with national market share. (ET

21st Aug 2011:

Nifty for the time since 2008 dropped down below 4800 levels. Sensex in its intraday movement dropped down below 16000 for the first time since 2010. Gold made its new high. Reliance Ind lost its position in market cap since it gained above the position after peeping ONGC. Coal India after its recent listing peeped RIL ind in the market capitalization.

There’s always a day after the darkness. Finally the bears got control of the market and some how managed to touch the Nifty at 4800 levels. Nifty had its very good support at 5200 levels from where it had bounced back several times in the past, but the panic selling could not help the Bulls to control the market. Finally we are at 4800 levels. Now what……

After all the downgrade in the near past, India has been on the down ward journey at par with the global markets. Last week we saw markets collapsed nearly 2.5%. Continuing its trend index lost another 6 % in the current week.

All the index closed down in red. Bankex lost nearly 9%. CNX IT lost more that 8%. Auto 4.7%, Reality 9%. Power index lost 5.3%. Oil and Gas 3.7%. Mid cap index tanked 7% while small cap Index lost 9%. Banks were hit harder then any other stocks on the brousers. Tata Motors lost 16.5%. Relcapital and Rcom closed down 16.5% & 14% respectively . Idfc closed down 13%. Ivrcl was one of the major looser from the lost which closed down 28%, Jet lost 23%. Educomp after the raid in its offices collapsed 23%. In the Tyre sector Apollo Tyre closed down 20% on week on week basis. Renuka lost 17% while HOEC 18%. In the Banking sector ICICI Bank lost 12%. Hindalco 12%. In the midcap and small cap sector, Clarus Finance after its superb rally lost 58% in a single week. Den Networks tanked 39% while KSoil lost 36%.

There were some gainers also in the way. Hero Honda gained 7%. Jubilant Foods gained 19%,VIP Ind 10% and Kwality Dairy 7%. Rm Mohite after its loosing steak from 200 odd levels to 60 levels, bounced back to 135 levels which gained nearly 23% in a week.

Chart 1 is the chart for Nifty. In the chart we can clearly see that the Nifty nose dive below 5200 levels. It somehow managed to close above the 4800 levels. Sensex closed marginally above 16000 levels. On Friday there was a gap down opening in the Nifty and in the chart we have seen a Doji kind of a pattern in the charts. It’s not exactly a Doji Pattern, but the candle stick suggests that the Indices can bounce back from a current rally as the candle stick was made after a wide gap. That the bounce back could be for a short run only. I am not sure about the fall below this level. Its seems that the markets are going bad to worse. Chart suggests that there could be no stopping in the markets. Investors are still advised to stay away from the mkt.

14th Aug 2011: Mother of all support is now the big time resistance level.

Finally the Nifty closed below 5200 levels. After so many attempts by the Bears, finally they got success.

Once more of the Monday carnage. Investors were in mayhem whether to hold on to their positions of book losses into their long positions. Monday, stocks of Japan, Hong Kong, South Korea and Taiwan were bleeding red. Dalaal Street dropped down more those 500 points. Trading came to a halt for some time in Korea’s junior index, while Israel paid the price of a historical friendship when its sovereign bonds, guaranteed by the US, were downgraded by S&P. Next day was just the copy of the previous day.

Rupee drops to its 6 week low after RBI said that the downside risks to growth may have gone up following the US rating cut. S&P cautioned that it could lower the sovereign ratings of countries like India, Japan and Malaysia, which are still to recover from its economic meltdown of 2008. According to the S&P Fiscal capacities of Japan, India, Malaysia, Taiwan and New Zealand have shrunk relative to pre 2008 levels. S&P have already downgraded US debt rating from AAA to AA+. It takes a minimum of nine years for a country to regains its AAA rating.

S&P downgraded its rating on the US by a notch to AA+ with a negative outlook. The rating agency stated that they felt that the political system of the economy has become less stable and that budget cutting announced earlier will not be enough.

S&P in July had stated that $4 trillion in cuts over a decade will be required if US were to have its AAA rating. On August 2 the policy makers agreed to enforce $2.4 trillion in spending restriction over the next 10 years. US have $14 trillion of debt and even after the deal last week it is anticipated to add another $7 trillion over the decade. As per the S S&P analysis the US Debt to GDP ratio will rise to 74% by year end, 79% in 2019 & will hit 85% in 2021. Rating cut lead to fall in the crude prices also. Crude collapsed nearly 10% within just two trading sessions. Some analyst expects commodities to continue its down trend.

Food inflation accelerated to its highest in 3 months. Experts feel that the inflation rose to its highest levels in last 3 months due to the excess rain that cut down the transportation. But I really do not understand when without the monsoon also the inflation was at almost at is high and after the rains also it’s the same.

June’s Headlines IP growth of 8.8% was insignificantly above market expectation of 5.5%, this suggests the RBI may hike rates by another 25-50bps. Yoy IIP (Index of Industrial Production) growth accelerated to 8.8% in May 2011 from the 7.4% recorded a year earlier and an upward revised 5.9% in May 2011 (from 5.6% earlier). Looking at the sectoral components, mining IIP grew at 0.6% yoy, electricity IIP at 7.9% and manufacturing IIP at 10.0%.

Indices lost more than 2.5% in a week. Midcap and Small cap index lost 1.5-2.5%. IT index was the major looser. IT index lost 8.4%, Metals also lost 6%, and Reality Index too lost more than 4%. Auto Index was the only gainer in the lot which gained 2.7%.

M&M gained the most in the week +13%, Hero Honda 6%, Acc, Kotak, Maruti, Bajaj Auto gained in the range of 4-5%. After the fertilizer policy Chambal gained 12%. In the midcap lot Bombay Dyeing gained 6.1%, EID Parry 6.2%, Bata India 9.7%.

In the losers Sterlite Ind lost 12%, Tata Power and Reliance Power both lost more that 11%, Infosys lost 8.2 and TCS closed down 10.4%. Relcap lost 11.2% and T. Steel tanked nearly 11% while Tata motors post results lost 10%. Aban sinked 9.5%. In the mid caps, Apollo tyre lost 11.5%, Sterling Biotech closed down 12%. Alok Ind 9%, Strides 8.8%, Nav Bharat Venture 8.6%, Rolta 8.4%.

In the last week I had mentioned that Indian markets are looking heavy and we may see Nifty at 4800 levels after the close below 5200 levels for two consecutive days. Nifty closed at 5072.95, in the intra week trading session nifty made a low of 4946 and a high of 5200 levels. Nifty opened the week below its 5200 levels, which was suppose to be its strongest support. Nifty bounced back from its low and tried closing above 5200 levels but could not sustain and lost nearly 2.5% in a week. Chart 1.

I had mentioned about the break of the Inverted Head and shoulder pattern formation in the last week. This triggered the sell off in the Indian markets with the global meltdown due to US downgrade. But everything said and done the rally in the Indian markets did not suggest that the India markets were in a good position. Inflation and corruption still remains the major concern in the Indian markets. Nifty had closed down below its retracement levels.

From the chart 2. Downside the retracement level comes at 4986 which is 138.2% retracement levels from the high of 5745 and a low of 5195.90. Nifty closed above its 123.6% retracement levels.

This suggests that Indian markets are still not safe haven to invest. Investors are advised to stay away for some more time. In a hurry investors are tend to make mistake. Markets are not going to go anywhere. If the US problem deepens then when we might the same stocks at a much cheaper price.

Sat: 06th Aug 2011: THIS IS NOT THE FIRST TIME IT HAPPENEND…

BUT THE READERS OF INFORMED INVESTOR WERE ADVICED MANY TIMES IN THE PAST..

In the last article also I had mentioned about the FII’s flow driving up the Indian markets and that was the only reason the Indian markets have been surging from the 5200 levels to 5700 odd levels. And now the FII’s flow have turned negative, Indian markets are falling like a dead pin. It was mentioned earlier also that there is no change in the FUNDAMENTALS OF INDIA, still the markets are rising. So finally there had to be some end to it.

US' Institute for Supply Management's manufacturing index tested 50.9, and UK's Market Economics/The Chartered Institute of Purchasing & Supply's index touched 49.1. HSBC manufacturing Purchasing Managers' Index for Brazil tumbled to 47.8 in July from 49.0 in June, and that for China fell to 49.3--its lowest since Mar 2009.

Weak manufacturing data from India and other major economies clearly shows that global growth is slowing down. And Reserve Bank of India's willingness to sacrifice growth to control inflation (in near term) will further weaken sentiment.

US may have managed to avid default, but the economy is moving from bad to worse despite the QE2. Markets are worried about various issues, including the weak US economy, European debt problems and the risk of increasing inflation in India. The debt battle arose when the Treasury dept said that if the govt debt ceiling of $14.29 trillion wasn’t raised by Tuesday, the US would not have enough money to pay its bills.

Gold Prices short up yet another new record high on Thursday after the European central bank President said that the bank would continue to buy bonds in response to a deepening euro zone debt crisis. Gold hit a record $1678 an also made a fresh records in Euro.

Global markets crashed on Friday, making it a once of the worst intra day correction in the recent times. Crude tanked to make its 5 month low. Indian markets too followed the same. On the start of the trading day on Friday Indices opened in red with almost 3% down.

Indian markets started the week on the negative bias. Indices corrected nearly 5% in a week. Last week Nifty had closed below its 50DMA and continued to slide down. In my last article I had mentioned about the Inverted Head and Shoulder pattern which broke and the market start its downward journey since then. On the last day of the trading session of this week markets opened in deep red. Nifty opened below 5200 levels but some how managed to close above the same.

Real Estate, banking and IT stocks fell down the most. ADAG once again closed deep in Red. Mining ban in Karnataka triggered panic selling in the Steel stocks.

I have been consistently talking about the importance of the 5200 levels. This was the 4^th time the Nifty have tested the same since June 2010. This week also the Nifty tested the strength of 5200 levels but some how managed to close above the same. Also in the past I had mentioned about the Fibonacci Levels also. On Thursday Nifty closed below its 23.6 retracement levels and on Friday touched its start point also. Further downside is possible if the Nifty closes below the 5200 levels for 2 consecutive days. Sensex close below 17400 is bad for the markets.

Technically, our markets have gone very weak now. Two consecutive closes below the 5200 levels can take the Nifty to 5050-4800 levels. Nifty will face resistance at 5350-5400 levels.

Past Performance of the calls on Nifty

This was nt the first time i have written about the FII's flow in the Indian market and about the importance of 5200

all the very best.....

Vishal has sent you a link to a blog:
FII’s got all the power’s
Blog: Technical chart
Post: FII’s got all the power’s ( July’03 2011 )
Link: http://technicalsvishaldangaich.blogspot.com/2011/07/fiis-got-all-powers.html

Vishal has sent you a link to a blog:
Mon 11th: Nifty resistance 5750
Blog: Technical chart
Post: Mon 11th: Nifty resistance 5750
Link: http://technicalsvishaldangaich.blogspot.com/2011/07/mon-11th-nifty-resistance-5750.html

Vishal has sent you a link to a blog:
Only FII's money drowe the mkt up.
Blog: Technical chart
Post: Sun: 17th July 2011
Link: http://technicalsvishaldangaich.blogspot.com/2011/07/normal-0-false-false-false.html

Vishal has sent you a link to a blog:
Sun 31st: Where are the Good News…
Blog: Technical chart
Post: Sun 31^st July 2011: Where are the Good News…
Link: http://technicalsvishaldangaich.blogspot.com/2011/07/where-are-good-news.html

Friday, Aug 5 - Morning brief for the stock market

Stocks To Watch: Coal India; GVK Power; Tata Chemicals, Realty cos

Friday, Aug 5 - Morning brief for the stock market:

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BIG PICTURE

* Dow Jones Industrial Average index, crude oil down 4%, Nasdaq falls 5% as the US stares at prospects of another recession. (var)

* RBI Subbarao says aim to bring down inflation to 5% in medium term

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TOP EVENTS TODAY

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* Nifty companies detailing Apr-Jun earnings:

+ Cipla (net profit seen 2.73 bln rupees, up 6% on year)

+ Ranbaxy Laboratories (net profit seen 1.91 bln rupees, down 41% on year)

* Apr-Jun earnings to be detailed by: Aarti Industries, Aban Offshore, Advani Hotels & Resorts (India), Bhagyanagar India, Bombay Burmah Trading Corp, Bosch, BPL, Burnpur Cement, Britannia Industries, Carborundum Universal, Cinemax India, Compuage Infocom, DCM, Dharani Sugars & Chemicals, Escorts, Gangotri Textiles, Garware Wall Ropes, Goldyne Technoserve, Great Eastern Shipping Co, HB Stockholdings, Hind Rectifiers, Hindustan Oil Exploration Co, Hindustan Organic Chemicals, Kayton Trade & Finance, IL&FS Transportation Networks.

* Annual General Meet of: Advani Hotels & Resorts (India), Automobile Corp, Banswara Syntex, Great Eastern Shipping Co, Indian Hotels Co, Mount Everest Mineral Water, Neuland Laboratories, Hind Rectifiers, JL Morison India, Madhusudan Securities, Sandesh, Tata Coffee, Technofab Engineering, Trent, Venky'S (India).

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INDICATORS (previous session)

* NSE provisional net buy/(sale) in bln rupees, Aug 4: FII (2.54), DII 3.16

* Institutional net buy/(sale) in bln rupees, Aug 3: FIIs (8.01), MF 0.234

* FII NSE futures net buy/(sale) in bln rupee, Aug 4: index (6.36), shr (1.58)

* Sensex 17693.18, down 247.37 points; Nifty 5331.80, down 73.00 points

* Crude: $86.63/bbl; Rupee: 44.54/$1; Gold: $1,656.2/ounce; 10-yr yld: 8.4021%

OUTLOOK

* Share indices may fall around 2% at open following the sharp sell-off in global equities, but most market participants do not expect indices to make a new 2011 low.

GLOBAL STOCK MARKETS

* US: Share indices plunged 4-5% on Thursday, slipping to two-year lows, as growing crisis in the US and Eurozone fuelled worries that the global economy may re-enter a recession.

* ASIA: Share indices may fall around 2%, following the sharp sell-off in global equities, but most market participants do not expect indices to make a new 2011 low.

IPO WATCH

* Duplex Industries has sought Securities and Exchange Board of India approval to raise up to 1.25 bln rupees through an initial public offering of shares.

SECTOR NEWS

* AVIATION: Air India is losing 6 bln rupees every month, according to the government.

The Cabinet Committee on Economic Affairs has approved further equity infusion of 12 bln rupees in Air India.

* FERTILISER: Government has approved revival of five closed units of Fertilizers Corp of India and three units of Hindustan Fertilizer Corp.

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* FOOD PRODUCTS: Mother Dairy may raise milk prices by up to 2 rupees a ltr across segments in the later part of the year due to rise in costs.

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* INFORMATION TECHNOLOGY: Pune-based Druva Software to raise $10 mln from Nexus Venture. (ET)

Sequoia Capital invests additional $8 mln in Prizm Payment. (Mint)

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* INFRASTRUCTURE: Finance ministry decides to cut lock-in period for foreign portfolio investments in infrastructure bonds to 18 months from 36 months. (Mint)

India Infrastructure Finance Co sets guarantee limit at 6 bln rupees for a single entity and at 12 bln rupees for a group in proposed guarantee fund. (FC)

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* INSURANCE: Insurance Regulatory & Development Authority finalises asset- liability management, stress test norms for equities investment by insurance companies. (ET)

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* INVESTMENT BANKING: ICICI Securities in investment banking pact with Collins Stewart Hawkpoint. (Mint)

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* OIL: Finance Minister Pranab Mukherjee says the government is moving in the direction of decontrolling diesel prices.

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* POWER: Private equity fund Kohlberg Kravis & Roberts, promoters of Avantha Power to invest $120 mln in company. (ET)

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* REAL ESTATE: Bombay High Court upholds constitutional validity of service tax levy on renting of commercial property. (ToI)

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* TELECOM: Department of Telecom may award 2G spectrum in Delhi to Uninor, Tata Teleservices only after reviewing allotment process. (ET)

STOCKS

* ADANI ENTERPRISES: A bulk carrier carrying 60,000 tn coal for the company sinks off Mumbai coast. (Bloomberg)

* AXIS BANK: To raise $240 mln through sale of US commercial paper. (BS)

* CEAT: Defers plan to shift non-radial tyres plant from Mumbai's Bhandup factory. (FE)

* COAL INDIA: To revive Talcher unit of National Fertiliser in a consortium with RASHTRIYA CHEMICALS AND FERTILISERS and GAIL INDIA. (

* COROMANDEL INTERNATIIONAL: Along with TATA CHEMICALS, ZUARI INDUSTRIES, Indian Farmers' Fertiliser Co-op and Indian Potash Ltd to import muriate of potash at $470 per tn until Dec and $530 per tn during Jan-Mar. (BL)

* ENGINEERS INDIA: To revive Ramagundam unit of Fertilizers Corp on a consortium with National Fertiliser.

* FINANCIAL TECHNOLOGIES: NSE removes company's trading software product ODIN from watch list, to permit it to launch new products.

* GITANJALI GEMS: Will convert foreign currency convertible bonds worth $3 mln at 220 rupees per share.

* GRASIM: Could see borrowing costs rise to 9-10% from current 6% as company gears to raise 25 bln rupees from the markets. (ET)

* GTL: Persuades Syndicate Bank not to invoke pledge on promoter's shares offered as collateral, in talks to restructure debt. (Bloomberg)

* GVK POWER: Along with partner BHP Billiton to part sell stake in Indian oil and gas blocks to a another company. (Mint)

* IG PETROCHEMICALS: Plans to invest 2.25 bln rupees in a new unit.

* INDIAN HOTELS CO: Reported a 509.91% on year jump in Apr-Jun net profit at 203.1 mln rupees while sales rose 12% to 3.69 bln rupees.

* MICRO TECHNOLOGIES INDIA: Has set up a manufacturing unit in Himachal Pradesh to meet growing demand for information technology security devices.

* MMTC: Company's gold imports in July were down 58% on year to 10.75 tn, while silver imports during the month slumped 79% on year to 25.5 tn.

* MUKAND: Production at its steel facility at Hospet in Karnataka has been affected by the ban on iron ore mining in the region. (

* MYSORE PETRO CHEMICALS: Has restarted operations at its Raichur plant, which was closed since Jun 21.

* OBEROI REALTY: Drops plans to develop hotel property in Goa. (Mint)

* RELIANCE INDUSTRIES: Government has said the company produced 31% less oil and gas than projected from its blocks in Krishna-Godavari basin in Apr-Jun.

* RESURGERE MINES AND MINERALS INDIA: Will enter into pacts with the governments of Maharashtra and Nagaland for iron ore and coal mining, respectively.

* STATE BANK OF MYSORE: Has hiked its Base Rate and Benchmark Prime Lending Rate by 50 basis points each to 15.00%, respectively.

* STEEL AUTHORITY OF INDIA: May raise 5 bln rupees via 10-year, 15-year bonds next week.

SAIL to revive Sindri unit of Fertilizers Corp along with National Fertiliser Ltd.

* TATA STEEL: Will invest 7 mln pounds sterling in its Hartlepool plant in UK to expand welding and material handling operations.

* UFLEX: Posted 59% on-year growth in consolidated net profit at 960.9 mln rupees and 64% on-year jump in net sales at 11.25 bln rupees for Apr-Jun.

Thursday, Aug 4 - Morning brief for the stock market:

Stocks To Watch: JSW Steel; Jet Airways; Reliance Infra; BL Kashyap

BIG PICTURE
* European Central Bank monthly policy meet today, which investors will eye for steps to combat the Eurozone debt crisis; Spain set to auction bonds worth 3.5
bln euros even as bond yields hit 14-year highs. (var)
* Government to view investments from Mauritius, Cyprus, Cayman Islands akin to those in sensitive sectors; to seek three-level identification of investment
origin. (FE)
* Gold December futures hit record high of $1,675.90/ounce. (var)
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TOP EVENTS TODAY
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* Apr-Jun earnings to be detailed by: 20 Microns, Adani Power, Allsec Technologies, Alkyl Amines Chemicals, Astral Poly Technik, Cummins India, Bombay Dyeing & Mfg Co, Dhunseri Petrochem & Tea, Diamond Power, Educomp Solutions, Emco, Ester Industries, Harita Seating Systems, Hindustan Motors,
Indian Hotels Co, Jai Corp, JBF Industries, JCT Electronics, LCC Infotech, Lotus Eye Care Hospital, Mukta Arts, Mundra Port and Special Economic Zone,
OnMobile Global, Precot Meridian, Salona Cotspin, Samtel Color, Savera Industries, Sterling Tools, Tinplate Co of India, Uflex, Wheels India, Zicom
Electronic Security Systems.
* Annual General Meet of: Allsec Technologies, Ashok Alco Chem, Astral Poly Technik, Banaras Beads, Bengal & Assam Co, Bombay Dyeing & Manufacturing Co, Cummins India, Dhunseri Petrochem & Tea, DLF, Hindustan Motors, Microsec Financial Services, OnMobile Global, Rishabhdev Technocable, Samtel Color, Standard Industries, Tamilnadu Jai Bharath Mills.
* Board Meetings of:
+ Jhaveri Weldflux to consider proposal of reduction of capital.
+ Muthoot Capital Services to consider share allotment on rights basis.
+ Neo Corp International to consider opening of $25 mln GDR Issue.
+ Resurgere Mines & Minerals India to consider acquisition of a mine.
* Listing of:
+ Inventure Growth & Securities. Issue priced at 117 rupees per share.
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INDICATORS (previous session)
* NSE provisional net buy/(sale) in bln rupees, Aug 3: FII (8.70), DII 4.22
* Institutional net buy/(sale) in bln rupees, Aug 2: FIIs (0.83), MF (0.19)
* FII NSE futures net buy/(sale) in bln rupee, Aug 3: index (13.54), shr (1.83)
* Sensex 17940.55, down 169.34 points; Nifty 5404.80, down 51.75 points
* Crude: $91.93/bbl; Rupee: 44.31/$1; Gold: $1,663.4/ounce; 10-yr yld: 8.4200%
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OUTLOOK
* Share indices may open slightly down on subdued global cues, but short covering may help them recover later, with dealers seeing resistance for the Nifty at 5450.
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GLOBAL STOCK MARKETS
* US: Indices ended marginally higher on Wednesday snapping an eight-day losing streak on the back of strong corporate earnings.
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* ASIA: Equities rose today, with Japan's Nikkei index rising 1% as the country's government intervened to curb the rise in the yen against the dollar.
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SECTOR NEWS
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* BANKING: RBI panel for hiking deposit insurance cover to 500,000 rupees from 100,00 rupees. (Mint)
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* CEMENT: Jammu & Kashmir Cements Ltd to double production capacity to 1,200 tn per day. (BL)
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* CORPORATE: Indian companies raised $3.3 bln via external commercial borrowings and foreign currency convertible bonds in June versus $2.65 bln in May.
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* GOVERNMENT: The government will introduce the anti-graft Lokpal Bill in the Lok Sabha today.
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* HOME LOANS: RBI panel recommends option to let borrowers switch between floating and fixed rates at least once during the tenure of the loan. (FE)
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* POWER: Growth in India's electricity generation rose to an over four year high of 12.5% in July due to sharp jump in nuclear and hydel generation.
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* REAL ESTATE: Central Information Branch, which has access to Annual Information Returns, to watch high value deals in metros. (FE)
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* RETAIL: The government plans to carefully calibrate the policy on allowing foreign direct investment in multi-brand retail to protect all sectors.
Tesco plc expresses difficulty in complying with conditions stipulated by the committee of secretaries for 51% foreign direct investment in sector. (BS)
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* STEEL: Essar Group to invest $750 mln in Zimbabwe Iron & Steel Co. (var)
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* STOCK MARKET: National Stock Exchange allows derivative trading in Coal India, Delta Corp, Dhanlaxmi Bank, Gujarat Fluorochemcials from Aug 5. (var)
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* TELECOM: Income Tax Department alleges that Tatas, Essar and Anil Dhirubhai Ambani Group used 'front' companies to acquire 2G spectrum licences. (ET)
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* TEXTILES: Banks likely to recast loans to companies, on a case-to-case basis, due to weak domestic demand and ceiling on cotton yarn exports. (Mint)
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STOCKS
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* ACROPETAL TECHNOLOGIES: Promoter group intends to increase stake in the company by up to 5%.
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* ATLANTA: Has received a highway order worth 9-10 bln rupees from the Bihar State Road Transport Corp.
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* AXIS BANK: International Finance Corp may provide $100 mln debt to the bank for on-lending to Indian companies' projects relating to climate change.
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* BHARTI AIRTEL: Plans $1.2 bln capex in Africa for FY12; expects margins to improve in the continent.
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* B L KASHYAP AND SONS: Asked to pay 5.93 bln rupees in Provident Fund dues and penalties, company charged for evasion of PF payment. (ET)
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* DABUR INDIA: Has launched a range of carbonated fruit-based drinks.
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* FINEOTEX CHEMICAL: Arm Fineotex Malaysia has acquired majority stake in some specialty chemicals units.
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* GTL: In talks to secure ICICI Bank's approval to merge arm GTL Infrastructure with itself. (ToI)
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* HINDUSTAN MOTORS: West Bengal govt to issue notice to company for misstating sale value of land, end use of funds. (BS)
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* INDO AMINES: Will form a subsidiary in Malaysia and invest 2.5-5 mln rupees in its share capital.
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* JET AIRWAYS: To get 1.35 bln rupees in cash and share of profit as part of Bandra-Kurla Complex land development deal with Godrej Properties. (ET)
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* JRI INDUSTRIES & INFRASTRUCTURE: Plans preferential issue of 630,000 shares.
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* JSW STEEL: Shuts two blast furnaces at Vijaynagar plant due to ban on iron ore mining in Karnataka's Bellary region. (Mint)
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* LANCO INFRATECH: To develop Gare Pelma II coal block in Chhattisgarh, set up 2,000 MW power plant.
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* PANTALOON RETAIL: Plans to induct foreign partner in subsidiary's 'eZone' business post lifting of FDI cap in multi-brand retail. (BS)
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* RAYMOND: To stop selling Manzoni brand, closed four of five exclusive outlets. (Mint
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* RELIANCE INFRASTRUCTURE: Maharashtra Electricity Regulatory Commission has allowed the company to recover 23.16 bln rupees tariff differential from
consumers.
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* SUNDRAM FASTENERS: To foray into manufacturing wind turbine components; to invest 1.5 bln rupees to expand auto component manufacturing capacity. (FC)
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* TATA STEEL: Will use the 50.5 bln rupees raised from sale of its entire 26.67% stake in Riversdale Mining for capital expenditure in new projects.
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* UNITED BANK OF INDIA: Has raised its Base Rate and Benchmark Prime Lending Rate by 35 basis points each to 10.60% and 14.85%, respectively.
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* VOLTAS: Puts five company-owned residential flats in Mumbai for sale.
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* WOCKHARDT: Company seeks Bombay High Court okay to sell nutritional products business to Danone. (BS)
Some lenders who have filed a winding-up petition against company may resist the sale of nutritional products business to Danone.

Wednesday, Aug 3 - Morning brief for the stock market:

Stocks To Watch: DLF; SBI; JSW Ispat; Reliance Infra; Wockhardt
Wednesday, Aug 3 - Morning brief for the stock market:
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BIG PICTURE
* Moody's assigns negative outlook to US, retains AAA sovereign rating (var)
* US Congress approves debt ceiling limit hike, spending cut bill (var)
* Indonesia to stop mineral exports from 2014, to consider levying higher export duty in run-up to 2014 (var)
* Govt says no plan to link General Provident Fund rate to EPF
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TOP EVENTS TODAY
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* Nifty companies detailing Apr-Jun earnings:
+ Bharti Airtel (consol net profit seen 15.31 bln rupees, up 9% on quarter)
* Apr-Jun earnings to be detailed by: Ceat, Deep Industries, Federal-Mogul Goetze (India), Fiem Industries, Himatsingka Seide, Hindustan Copper, Jindal
Drilling and Industries, IG Petrochemicals, Kirloskar Electric Co, Oberoi Realty, OCL India, Maharashtra Seamless, S Mobility, Standard Chartered, Swaraj Engines, Technocraft Industries, Tide Water Oil Co (India), Trident, TVS Srichakra, United Spirits.
* Annual General Meet of: Arihant Superstructures, Everonn Education, HOV Services, Kirloskar Electric Co, Lloyds Metals and Energy, New Delhi Television,
PAL Credit and Capital, Precision Wires India, Swaraj Engines, Tata Steel, TVS Srichakra.
* Board Meetings of:
+ Indian Bright Steel Co to consider allotment of 3.55 mln shares.
+ LGS Global to consider merger of Ybrant Digital with self.
+ Ram Kaashyap Investment to consider $150 mln fund raising plan.
+ SVC Resources to consider opening of GDR issue.
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INDICATORS (previous session)
* NSE provisional net buy/(sale) in bln rupees, Aug 2: FII (2.02), DII 1.40
* Institutional net buy/(sale) in bln rupees, Aug 1: FIIs (1.57), MF (1.60)
* FII NSE futures net buy/(sale) in bln rupee, Aug 2: index 14.09, shr (4.08)
* Sensex 18109.89, down 204.44 points; Nifty 5456.55, down 60.25 points
* Crude: $93.79/bbl; Rupee: 44.27/$1; Gold: $1641.90/ounce; 10-yr yld: 8.4328%
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STOCKS OUTLOOK
* Share indices are seen opening 1% lower today, with the Nifty likely to slip below 5400 due to sharp sell-off in US and Asian markets.
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GLOBAL STOCK MARKETS
* US: Wall Street slumps over 2% on Tuesday on poor consumer spending data and concerns the country may not be able to escape a rating downgrade despite
passing the debt limit plan.
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* ASIA: Indices fell 1-3% today, mirroring Wall Street losses as disappointing US June consumer spending data fuelled worries about global recovery.
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SECTOR NEWS
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* AVIATION: Government has approved equity infusion of 5 bln rupees in the cash-strapped national carrier Air India.
Kingfisher, Jet Airways to move out from New Delhi airport's T3 terminal. (ET).

* BANKING: RBI has said banks that act as market makers in derivative products must price them independently, and foreign banks must price derivative products locally.
Bank unions threaten all-India strike on Aug 5. (ET)
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* COAL: The group of ministers on coal mining will meet again on Aug 24 to appraise the 'go, no-go' classification of forest areas for mining.
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* CORPORATE: Indian companies invested $2.69 bln in overseas joint ventures and subsidiaries in July, compared with $5.48 bln in June, RBI data shows. (
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* ECONOMY: Chief Economic Adviser Kaushik Basu has expressed confidence that the country's economy will expand by close to 8.5% in 2011-12 (Apr-Mar).
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* MICRO FINANCE: Bhartiya Samruddhi Finance in talks with banks, private equity funds to raise 3 bln rupees. (BS)
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* MINING: Miners want forest department to share responsibility for environmental degradation. (ET)
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* POWER: 20 companies, including Tata, Birla, Essar, Adani and JSW group, have bid to build a 4,000 MW ultra mega power project in Odisha. (ToI)
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* REAL ESTATE: Maharashtra government says 21 of 23 new towers on Navi Mumbai's Palm Beach Road unauthorised. (var)
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* REGULATORY: SEBI has asked bourses to daily send details of all transactions to investors through short messaging service on mobile phones and emails. (N
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* STEEL: South Korean major Posco's memorandum of understanding with Odisha government to build a plant in the state lapses. (BS)
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* TELECOM: Telecom Regulatory Authority of India ask mobile telecom operators to justify hike in call rates. (BS)
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STOCKS
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* ASHOK LEYLAND: Reported 16% on-year growth in total commercial vehicle sales in July at 7,834 units.
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* BANK OF INDIA: Life Insurance Corp of India has raised its stake in the bank by 2.06% to 9.21% via open market transactions.
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* BEML: Has launched its products in Thailand and appointed a distributor.
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* BHUSHAN STEEL: Has secured a $258-mln export finance facility from three banks.
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* COAL INDIA: May not be able to bid for stake in Indonesian mining company as it is yet to get government clearance. (ET)
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* DB REALTY: Adani to pay company 1.5 bln rupees to buy 50% of 1.1-acre plot in Mumbai's Cumballa Hill. (ET, Mint)
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* DLF: To sell Gurgaon plot for 4 bln rupees; Tata Realty, M3M Developers seen bidders. (ET)
Has challenged additional tax demand of 5.46 bln rupees raised by the Income Tax Department for the assessment year 2008-09.
Reported 13% year-on-year decline in Apr-Jun consolidated net profit at 3.58 bln rupees, despite a 21% growth in sales to 24.46 bln rupees.
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* FORTIS HEALTHCARE: May buy Vietnamese hospital in $100 mln deal. (Bloomberg)
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* FUTURE CAPITAL HOLDINGS: Apr-Jun net profit soared to 184.57 mln rupees from 114.32 mln rupees a year ago.
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* GMR INFRASTRUCTURE: Opts out of race to buy Australian mine Bandanna. (ET)
Delhi International Airport Ltd, in which GMR Infra holds over 50% stake, skips interest payment to banks for third month. (FE)
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* GVK INDUSTRIES: Emerges as lowest bidder for 28.15-bln-rupee Madhya Pradesh highway project. (DNA
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* HOUSING DEVELOPMENT FINANCE CORP: Has hiked its Prime Lending Rate by 50 basis points to 16.50%.
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* JSW ISPAT (ISPAT INDUSTRIES): Signs 61.50-bln-rupee debt refinancing deal enabling company to exit a corporate debt restructuring programme. (Reuters)
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* JSW STEEL: West Bengal government chides company over delay in building 10 mln tn steel plant in the state. (BS)
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* KEMROCK INDUSTRIES: Has launched industrial grade carbon fibre.
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* NATCO PHARMA: Seeks India's first 'compulsory' generic licence to sell generic version of Bayer's cancer drug Nexavar. (ET)
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* NMDC: Is likely to acquire two overseas iron ore mines within the next 100 days.
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* OIL & NATURAL GAS CORP: Is revising its policy on marginal fields to improve yield. (BS)
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* PIRAMAL HEALTHCARE: Expects contract research and manufacturing business to grow 20% in 2011-12 (Apr-Mar); Apr-Jun net profit was up 10.5% at 892 mln rupees.
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* PHOENIX MILLS: Raises stake in Bangalore Market City project to 46.4% by acquiring HBS Realtors' 8.6% share. (Mint)
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* POWER GRID CORP OF INDIA: Apr-Jun net profit increased marginally to 7.05 bln rupees, total income grew 10% to 22.02 bln rupees
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* RADICO KHAITAN: To launch 'After Dark' whisky by September, to price it at 400-450 rupees per bottle. (FC)
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* RELIANCE INFRASTRUCTURE: Gets licence to supply power in suburban Mumbai for another 25 years. (ToI)
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* SPICEJET: Plans new routes to connect towns in South India. (Mint)
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* STATE BANK OF INDIA: Tells Parliament it has set up account tracking centres across all its 14 circles to monitor non-performing assets. (PTI)
Government to soon approve merger of State Bank of Hyderabad and State Bank of Patiala with the bank. (FE)
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* TATA METALIKS: To shut Goa plant as iron ore supplies hit. (PTI)
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* TITAGARH WAGONS: Apr-Jun net profit increased to 271.6 mln rupees from 205.8 mln rupees a year ago.
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* WOCKHARDT: Sells nutrition operations, related industrial operation of CAROL INFO SERVICE to Danone for around 250 mln euro.
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