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.