Friday, Apr 1 - Morning brief for the stock market:

Stocks To Watch: GSK Pharma; Hero Honda; Kalpataru Power

Friday, Apr 1 - Morning brief for the stock market:.

BIG PICTURE

* India Apr-Feb fiscal gap 2.75 trln rupees, down 27% on year.

TOP EVENTS TODAY

* Trade data for Feb to be detailed by commerce ministry.

INDICATORS (previous session)

* NSE provisional net buy/(sale) in bln rupees, Mar 31: FII 33.25, DII (17.17)

* Institutional net buy/(sale) in bln rupees, Mar 30: FIIs 10.43, MF (2.49)

* FII NSE futures net buy/(sale) in bln rupee, Mar 31: index 13.38, shr (4.63)

* Sensex 19445.22, up 155.04 points; Nifty 5833.75, up 46.10 points.

* Crude: $106.72/bbl; Rupee: 44.59/$1; Gold: $1,438.9/ounce; 10-yr yld: 7.9820%.

OUTLOOK

* Local shares are seen opening flat amid subdued global cues. Trade is likely to be thin as market participants may prefer to keep positions light ahead of the weekend.

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GLOBAL STOCK MARKETS

* US: US share indices ended down Thursday after a Federal Reserve official said interest rates might need to rise to slow inflation.

* ASIA: Asian share indices were mixed after an official from the US Federal Reserve said interest rates might need to be raised, while on the other hand, data showed China's manufacturing growth accelerated in March.

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IPO WATCH

* Calyx Chemicals and Pharmaceuticals has sought SEBI nod for 6.83-mln-share issue

* L&T Finance Holdings has sought SEBI nod for a 17.5-bln-rupee issue.

* MCX files draft prospectus for its 6.43-mln-share issue.

* Prime Retail has sought SEBI nod for its 75-mln-share issue.

* Sheetal Refineries sought SEBI approval for a 6-bln-rupee issue.

SECTOR NEWS

* AUTOMOBILE: Japan's Honda Motor Co will temporarily halt production at its Indian facility from May due to parts' supply constraints from Japan. (PTI)

* AVIATION: Government has agreed to offer sovereign guarantee for refinance of a 220-bln-rupee loan raised by Air India to buy new aircraft.

Civil aviation ministry asks domestic airlines to submit a plan of action to implement new ground handling policy. (var)

Air India expects to turn profitable by 2013-14 (Apr-Mar) via financial restructuring. (Mint)

Low-cost carrier IndiGo will buy 300 new engines for its 150 new aircraft from Airbus. (var)

* BANKING: Reserve Bank of India has allowed banks to fix service charges on speed clearing of cheques with value over 100,000 rupees. (PTI)

* CHEMICALS: Chennai-based Sanmar Group exits joint venture Fisher Sanmar by selling around 51% stake in the company to US partner Emerson. (ET)

* CORPORATE: Indian companies raised $1.44 bln through external commercial borrowings and foreign currency convertible bonds in February, sharply down from $2.71 bln raised in January.

* ECONOMY: India Feb CPI industrial workers inflation 8.82% vs 9.30% Jan.

Govt says India Dec end external debt at $297 bln, up 14% since Mar 2010.

* ENERGY: State-owned oil marketing companies hike jet fuel prices by average 915.12 rupees/kL.

French energy company Schneider Electric is in advanced talks to buy majority stake in Delhi-based Luminous Power Technologies. (ET)

* EXCHANGES: NCDEX says integrating spot, futures markets key challenge.

National Stock Exchange has applied for extension of deadline to divest its 6.1% stake in National Commodity and Derivatives Exchange.

* EXPORTS: Government lifts restrictions on export of cotton yarn to tap international markets. (var)

* FINANCE: Task force on direct subsidies for liquefied petroleum gas, fertiliser, and kerosene--headed by Unique Identification Authority of India chairman Nandan Nilekani--has discussed proposed model of cash subsidy with Finance Minister Pranab Mukherjee. (ET)

* GOVERNMENT: Panel appointed to investigate conduct of Commonwealth Games 2010 has uncovered inflated contracts and wasteful expenditure of around 16 bln rupees. (Mint)

* RAILWAYS: To stop transporters from using wagons for short periods, the railways ministry will levy demurrage on chartering companies who do not complete loading within 9 hours and 15 minutes. (Mint)

* REGULATORY: SEBI says foreign institutional investors can invest in bonds of unlisted infrastructure companies.

* SUGAR: Government may re-impose 60% import duty on sugar from today as India's sugar production is likely to exceed demand. (PTI)

STOCKS

* BAJAJ AUTO: Expects to clock sales volume of 20% in both the two- and three-wheeler segments in 2011-12 (Apr-Mar).

Plans to launch small car, which is likely to take on Tata Motor's Nano, in 2012. (var)

* BAJAJ HINDUSTHAN: Is likely to start commissioning the first of its five standalone coal-based capacities of 90 MW each from Jul-Aug. (BL)

* BALRAMPUR CHINI MILLS: Bought back 447,246 shares on Mar 31.

* BAYER CROPSCIENCE: Has inked a pact to sell around 100 acres land in Thane, received 2.6 bln rupees earnest amount.

* BIRLA MACHINING: Board approves co's merger with BIRLA PRECISION TECHNOLOGIES.

* BROADCAST INITIATIVES: Has filed draft papers for a rights issue of 20.25 mln shares in the ratio of 8 for every 10 held in the company.

* CLUTCH AUTO: Promoter to get 1.25 mln shares on warrant conversion.

* COAL INDIA: Is in pact with the coal ministry under which it is targeting production of 452 mln tn and coal offtake of 454 mln tn in 2011-12. (ET)

* GLAXOSMITHKLINE PHARMACEUTICALS: Supreme Court orders company to pay 710 mln rupees on drug overpricing.

* GMR INFRASTRUCTURE: Macquarie SBI invests 8.93 bln rupees in company's arm GMR Airports Holding.

* GODREJ CONSUMER PRODUCTS: Has completed the merger of Godrej Household Products with self.

* HERO HONDA MOTORS: To announce new export markets, new brand name, and make public terms of separation from Honda Motor Co in less than a fortnight. (FE)

* HINDALCO INDUSTRIES: Has tied up loans worth 78.75 bln rupees from a consortium of lenders for its 359,000-tn Mahan aluminium smelter project.

* JET AIRWAYS INDIA: Plans to use lighter and slimmer economy class seats on domestic routes to shed weight and increase the number of seats. (Mint)

* JK PAPER: Redeems foreign currency convertible bonds worth $5 mln.

* KALPATARU POWER: Gets orders worth 9.5 bln rupees. (

* KINGFISHER AIRLINES: Has allotted 231.87 mln equity shares to lenders and promoters on conversion of preference shares, resulting in decline in promoter holding to 58.6% from 66.3%.

* KREBS BIOCHEMICALS: To issue shares to promoter on preferential basis.

* MIRC ELECTRONICS: The maker of consumer durables under the Onida brand plans to raise prices of air conditioners and television sets by 4-5%. (DNA Money)

* MINDTREE: To announce a new chairman today, likely to be one of the nine founders of the company. (BS)

* NIIT: Future Group and NIIT plan to partner with the National Skill Development Corp to train 7 mln people each over 10 years, where Future Group will enter into a JV with NSDC, and NIIT will invest 2 bln rupees. (ET)

* NTPC: Has commissioned unit 3 of Simhadri super thermal power project, which has capacity of 500 MW.

* STATE BANK OF INDIA: Has extended its special home loan scheme until further review.

TATA MOTORS: Plans to introduce a range of smaller trucks by May-Jun, which will ride on its Prima platform. (DNA Money)

* TATA POWER: To end electricity-supplying agreement with RELIANCE INFRASTRUCTURE from today and divert the power to its own consumer base in Mumbai. (Mint)

* SOBHA DEVELOPERS: May look at monetising more land to raise funds as the company prepares to launch projects in new markets such as the National Capital Region, and Chennai. (DNA Money)

* VADILAL INDUSTRIES: Has increased ice-cream production capacity to 325,000 ltr per day, and expects 40% growth in sales during FY12.

* VIPUL DYE CHEM: Acquires 56% stake in Shree Ambika Naturals.

* WINDSOR MACHINES: Approves reduction in share capital, stock split.

* WS INDUSTRIES: Sells 31,000 shares of arm WS Electric to arm WS Insulators for 387.5 mln rupees.