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:
.
.
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)
.
.
TOP EVENTS TODAY
.
* Apr-Jun earnings to be detailed by: MphasiS, Thiru Arooran Sugars.
.
* 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.
.
* Board Meetings of:
+ Venus Remedies to consider issue of fully convertible warrants to
promoters and allotment of equity shares on conversion of FCCBs.
.
.
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%
.
.
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.
.
.
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.
.
* 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. .
.
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)
.
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)
.
* BUSINESS PROCESS OUTSOURCING: The outsourcing arm of Essar group, Aegis, aims to get listed on stock exchanges between FY12 and FY15. (FE)
.
* CAPITAL GOODS: Volvo Construction Equipment plans to manufacture excavators of up to 30 tn capacity in India. (BS)
.
* COMMODITIES: Jute industry under Competition Commission of India lens for alleged cartelisation. (BS)
.
* 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)
.
* 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)
.
* 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)
.
* GOVERNMENT: Centre has no immediate plan to allow foreign retail investors to directly purchase equities in Indian stock markets. (BL)
.
* INFLATION: RBI expects headline inflation to slow down during Nov-Dec on base effect
.
* 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)
. .
* POWER: Power companies can avail of duty exemption on imports of power equipment before getting mega power project certificate. (BS)
.
* 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)
.
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%.
.
* ALLCARGO GLOBAL LOGISTICS: To foray into hospitality, real estate and ports sectors under its master brand 'Avashya'. (ET)
.
* BANK OF BARODA: To review credit and deposit targets for 2011-12 (Apr-Mar) after October.
.
* BL KASHYAP & SONS: Employees Provident Fund Appellate Tribunal has stayed an order against the company for alleged provident fund payment default.
.
* BLUESTAR INFOTECH: Is planning to set up a 100-seat delivery centre in the US. (BL)
.
* CAIRN INDIA: Executive Director and Chief Financial Officer Indrajit Banerjee has resigned.
.
* 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)
.
* 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)
.
* FEDERAL BANK: Has sought Reserve Bank of India's approval to open a banking unit in Dubai International Financial Centre by December end.
.
* 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)
.
* HINDALCO INDUSTRIES: Delays financial closure of the 78 bln rupees Aditya Aluminium refinery project due to uncertain market conditions. (BS)
.
* 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)
.
* 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)
.
* INDIAN METALS & FERRO ALLOYS: plans to spend 66 bln rupees over five years to set up 1320 MW power plant in Odisha. (BS)
.
* L&T FINANCE HOLDINGS: Finds inclusion in BSE 500 index replacing Nagarjuna Fertilisers and Chemicals. (
.
* LGS GLOBAL: Has approved raising funds through equity and debt.

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

.
* RELIANCE CAPITAL: Unit Reliance Portfolio Management to raise over 15 bln rupees to invest in real estate projects. (ET)
.
* 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)
.
* 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.

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

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

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