Thursday Apr 7 - Morning brief for the stock market

Stocks To Watch: Cairn India, GVK Power, Idea, Maruti Suzuki

Thursday, Apr 7 - Morning brief for the stock market:

BIG PICTURE

* Revenue secretary Mitra says IFRS not conducive for taxation purposes (FE)

* ADB lowers GDP forecast to 8.2% on high crude oil prices (Var)

TOP EVENTS TODAY

* Government to detail primary articles inflation for week to Mar 26

* Oct-Dec earnings to be detailed by: GM Breweries.

* Annual General Meet of: KSB Pumps.

* Board Meetings of:

+ Enrich Industries, to consider increase in authorized share capital.

+ Surya Pharmaceutical, to consider allotment of share on warrants conversion.

INDICATORS (previous session)

* NSE provisional net buy/(sale) in bln rupees, Apr 6: FII 5.28, DII (5.31)

* Institutional net buy/(sale) in bln rupees, Apr 5: FIIs 3.01

* FII NSE futures net buy/(sale) in bln rupee, Apr 6: index (1.17), shr (3.05)

* Sensex 19612.20, down 74.62 points; Nifty 5891.75, down 18.30 points.

* Crude: $108.83/bbl; Rupee: 44.16/$1; Gold: $1,455.10/ounce; 10-yr yld: 7.9870%

OUTLOOK

* Local equities are likely to see a flat opening today as suggested by SGX CNX Nifty April futures, with downside, if any, seen limited as buying may emerge on every dips.

GLOBAL STOCK MARKETS

* US share indices ended up on Wednesday, with the Dow Jones Industrial Average index closing at a 28-month high helped by gains in Cisco Systems.

* Key Asian indices were flat to marginally weak in early trade today, but Japan's Nikkei rose on bargain buying after falling for the last two sessions.

SECTOR NEWS

* AUTOMOBILE: Italy's Maserati drives into India with 12-15 mln rupee cars.

Hero Group is likely to develop a motorcycle of below 40,000 rupees to retain its market share in entry-level segment. (DNA Money)

* ECONOMY: Standard and Poor's sees India's gross domestic product growth at 8.3% in 2011-12 (Apr-Mar); S&P says outlook on long-term India sovereign credit rating table.

* ENERGY: The Cabinet Committee on Economic Affairs has cleared a proposal to set up a National Clean Energy Fund.

* FARM: Food Corp of India will soon seek the government's approval for fresh equity infusion of 100 bln rupees and a 50-bln-rupee bond issue.

Cabinet panel OKs 50 rupee per 100 kg bonus on wheat minimum support price.

* INFORMATION TECHNOLOGY: Genpact has acquired US-based information technology services company Headstrong Corp for $550 mln in an all-cash deal.

* INFRASTRUCTURE: Road ministry has formed a committee on setting up an electronic toll collection system on the highways of India.

* PORTS: Freight traffic handled by major ports in the country rose a paltry 1.6% in the year ended March to 569.91 mln tn.

* PRIVATE EQUITY: Investments by PE firms in Indian companies surged nearly 55% on year in Jan-Mar, according to research firm Venture Intelligence.

* TAXATION: OIL AND NATURAL GAS CORP, STATE BANK OF INDIA, RELIANCE INDUSTRIES India's top tax-payers in 2010-11 (Apr-Mar).

The income tax department has slapped the Employees' Provident Fund Organisation with a tax demand of 70 bln rupees for failing to tax premature withdrawals. (ET)

The Income Tax Department has imposed 20-bln-rupee tax claim on 15 foreing institutional investors for not disclosing all their investments. (BS)

STOCKS

* BALRAMPUR CHINI MILLS: Says bought back 184,366 shares on Apr 6.

* BHARAT HEAVY ELECTRICALS: Paid 28 bln rupee as tax in 2010-11 (Apr-Mar) as against 18.7 bln last year.

* BHARAT PETROLEUM CORP: the 6-mln-tn Bina refinery in Madhya Pradesh will start commercial production in coming weeks. (BL)

* CAIRN INDIA: Ministerial panel is now expected to take decision on Vedanta's $10-bln deal to acquire majority stake in the company only after the ongoing assembly elections in various states.

* CHANDNI TEXTILES ENGINEERING: To mull 10-for-1 stock split Apr 15.

* ESSAR SHIPPING PORTS & LOGISTICS: To complete the spin off of its shipping arm next month. (DNA Money)

* GVK POWER & INFRASTRUCTURE: Is talking to financial investors including private equity majors 3i, Actis and Macquarie to raise $1.5 bln for acquiring Australia's Hancock Coal. (ET)

* IDEA CELLULAR: Telecom ministry to impose 3-bln-rupee penalty on the company for holding more than 10% stake in two mobile companies in six regions of the country. (ET)

* INDIAN HOTELS CO: Is eyeing revenue of $2 bln in the next four to five years on high growth in room inventory and bounce back in average room rates.

* INFINITE COMPUTER: To mull share buyback Monday.

* JYOTHY LABORATORIES: Gets a line of credit worth 6 bln rupees from ICICI Bank to fund HENKEL INDIA LTD acquisition. (Mint)

* MAHINDRA & MAHINDRA: Is planning to foray into premium car segment by launching Ssangyong vehicles. To shift Boeing unit, which it acquired in Australia, to Bengaluru. (BS)

* MARUTI SUZUKI INDIA: Is recalling 13,157 diesel engine cars of its Swift, Dzire and Ritz models for a faulty connecting rod bolt.

* MAHARAJA SHREE UMAID MILLS: Said it will receive 5.81 bln rupees on sale of its stake in ANDHRA PRADESH PAPER MILLS to US-based International Paper Co.

* NEYVELI LIGNITE: 2010-11 power generation 17.88 bln units.

* OIL AND NATURAL GAS: Paid 85 bln rupees as corporate tax 2010-11 (Apr-Mar) as against 63 bln rupees paid last year.

To outsource gas production activities at some of its isolated wells in KG basin to other companies on a production sharing basis. (PTI)

* RADICO KHAITAN: Will market Japan-based Suntory's Yamazaki and Hibiki brand of whiskies in India, brands to hit market by July. (ET)

* RELIANCE INDUSTRIES: Paid 42 bln rupee as tax in 2010-11 (Apr-Mar) as against 31 bln rupees last year.

Fertiliser companies have asked Reliance industries to compensate for the losses arising out of the shortfall in supply of gas from KG-D6 basin. (BS)

* RELIANCE INFRASTRUCTURE: Honeywell India's former president Anil Gupta is expected to join Reliance Infrastructure as the president of infrastructure division. (ET)

* SANTOWIN CORP: To mull raising up to $198 mln via FCCB, GDR.

* SATYAM COMPUTER SERVICES: Supreme Court has ordered status quo till Friday on the 6.17-bln-rupee demand raised by the Income Tax Department on the company.

Relisting on US bourses likely to take 6-8 months. (Mint)

* SHIV-VANI OIL & GAS: Approves raising up to 5 bln rupees via QIP.

* STATE BANK OF INDIA: Paid 61.6 bln rupee as tax for 2010-11 (Apr-Mar) as against 65.6 bln last year.

Government appoints Pratip Chaudhuri as new Chairman of the bank.

* STEEL AUTHORITY OF INDIA: Paid 24 bln rupees as tax in 2010-11 (Apr-Mar) as against 33 bln last year.

* TATA STEEL: Paid 28 bln rupees as tax in 2010-11 (Apr-Mar) as against 18 bln rupees last year.