Tuesday, Apr 19 - Morning brief for the stock market

Stocks To Watch: HDFC Bk, CMC, Sesa Goa, Orchid Chem, Modi Rubber

Tuesday, Apr 19 - Morning brief for the stock market:

BIG PICTURE

* S&P has downgraded its credit rating outlook for the US to negative.

TOP EVENTS TODAY

* Jan-Mar earnings to be detailed by: Automobile Corp of Goa, Container Corp, Compuage Infocom, IDBI Bank, Indo Asian Fusegear, Power Finance Corp, R S Software (India), Vesuvius India, and Zee Entertainment.

* Annual General Meet of: Elantas Beck India, Nestle India, and Vesuvius India.

* Board Meetings of:

+ Nestle India Ltd, to consider interim dividend.

+ Oracle Financial Services to consider allotment of securities.

+ Fame India to consider raising of equity share capital through rights issue.

+ Span Diagnostics to consider restructuring of instrument business.

INDICATORS (previous session)

* NSE provisional net buy/(sale) in bln rupees, Apr 18: FII (9.82), DII 6.61

* Institutional net buy/(sale) in bln rupees, Apr 15: FIIs 1.84, MF (3.33)

* FII NSE futures net buy/(sale) in bln rupee, Apr 18: index (557.4), shr (1.83)

* Sensex 19091.17, down 295.65 points; Nifty 5729.10, down 95.45 points.

* Crude: $107.01/bbl; Rupee: 44.45/$1; Gold: $1,491.80/ounce; 10-yr yld: 7.9832%

OUTLOOK

* Local share indices may open down today on weak cues from overseas markets triggered by the Standard & Poor's downgrade of US' long-term credit outlook to "negative" from "stable".

GLOBAL STOCK MARKETS

* US shares ended down on Friday after Standard & Poor's Ratings Service cut the nation's long-term credit outlook to "negative" from "stable". Concerns over the Euro zone debt crisis also weighed on sentiment.

* Asian indices slipped today after Standard & Poor's Ratings Service cut the US' long-term credit outlook to "negative" from "stable". Concerns over the Euro zone's ongoing sovereign debt crisis also weighed on shares.

IPO WATCH

* Paramount Printpackaging sets issue price band 32-35 rupees.

* Joyalukkas India Ltd is waiting for its Jan-Mar earnings before going ahead with its IPO.

SECTOR NEWS

* ACQUISITIONS: Aditya Birla Group buys Swedish pulp maker Domsjo Fabriker for $340 mln.

NewQuest Capital Partners buys Bank of America-Merrill Lynch's Asia non-real estate private equity portfolio; Merrill Lynch Global Private Equity's current Indian portfolio includes DRS Warehousing, PIPAVAV SHIPYARD, Vestas RRB India, and a five-star hotel project special purpose vehicle of Salarpuria Group. (BS)

* AVIATION: Air India plans better connectivity to smaller cities. (var)

* CONSTRUCTION: Gujarat government to spend 90 bln rupees on Narmada canals this year. (BL)

* CONSUMER DURABLES: Royal Philips Electronics to give up control of television business as prices fall. (ET)

* FERTILIZER: Ministry mulls polymer research and development centres in Chennai, Pune. (FE)

* MEDIA: Providence Equity Partners invests 2.6 bln rupees in UFO Moviez India. (BL)

* POWER: Solar power projecys could trip as poor prospects keep financers away. (ET)

Ministry of power to move Cabinet note seeking budgetary support to compensate NTPC for shutting down its Loharinag Pala hydro power plant in Uttarakhand on religious and environment grounds. (BS)

* REAL ESTATE: At least six real estate developers fail to repay bank loans due to shortage of funds and drop in property sales. (Mint)

* REGULATORY: Open offer trigger for sovereign funds may be raised to 20%. (var)

The Reserve Bank of India refuses to endorse NRI businessman C Sivasankaran's sale of nearly 33% stake in Tamilnad Mercantile Bank to Indian and foreign investors; says deal lacked transparency and violated Foreign Exchange Management Act.

* RETAIL: Reliance Retail's fashion apparel business Reliance Trends ties up with Austrialian firm lime door brands to launch Shane Warne sports apparel in India. (FC)

* SCAM: Comptroller and Auditor General blames Prime Minister's Office for not acting against Commonswealth Games chief Suresh Kalmadi. (FE)

* TAX: India to begin talks with Mauritius to review tax treaty. (ET)

* TELECOM: Telecom minister Kapil Sibal asks law minitry to examine a 2006 transaction in which Tata Group exited IDEA CELLULAR by selling its 48% stake to Aditya Birla Group. (ET)

Oarliament's public accounts committee reports on the 2G spectrum scam unlikely during monsoon session. (FE)

* TEXTILE: Aditya Birla Group has acquired Sweden-based pulp company Domsjo Fabriker for $340 mln.

* TRAVEL & TOURISM: US firm Concur acquires minority stake in travel portal Cleartrip for $40 mln. (var)

STOCKS

* AKSHARCHEM INDIA: Promoters make open offer to acquire 20% additional stake in the company at up to 18.50 rupees a share. (BS)

* BANK OF BARODA: Has started operations at 18 branches of the erstwhile Memon Co-operative Bank.

* BHARAT HEAVY ELECTRICALS: Chairman and managing director of its joint venture with NTPC, C P Singh, quits amid differences with promoters. (PTI)

* BHARTI AIRTEL: TO rejig top desk across businesses; revamp aimed at brinding international entities under a single leadership. (ET)

Partners Zoomin.com for photo service for its broadband customers. (BL)

* CALIFORNIA SOFTWARE: Sells outsource product development operations for 1 bln rupees.

* CMC: Posts Jan-Mar consolidated net profit at 439.7 mln rupees as against 443.0 mln rupees last year; Approves 1-for-1 bonus share issue.

* DECCAN CHRONICLE HOLDINGS: SEBI has exempted promoters of the company from making an open offer subsequent to the proposed share buyback offer.

* FORTIS HEALTHCARE: Private equity firm Avigo Capital Partners buys 9.27% stake in the group's medical diagnostics firm Super Religare Laboratories for 1 bln rupees ahead of the latter's initial public offer. (ET)

* GAIL: Moody's says company's US shale gas foray plan "credit negative".

* GUJARAT ALKALIES AND CHEMICALS: To invest 25 bln rupees in joint venture with German spciality chemicals major Evonik-Degussa GmbH to diversify product portfolio and cut dependence on caustic soda. (BL)

* HDFC BANK: Posts Jan-Mar net profit at 11.15 bln rupees as against 8.37 bln last year; Approves 5-for-1 stock split.

* HENKEL INDIA: Henkel Germany's board approves sale of its 50.97% stake in the Indian arm to JYOTHY LABORATORIES. (ET)

* ISMT: Workers' strike at Ahmednagar unit has been called off strike.

* HINDUSTAN DORR-OLIVER: Plans to expand manufacturing capabilities with another base near Pune-Sholapur industrial cluster. (BL)

* HOTEL LEELAVENTURE: Leela Group chairman CP Krishnan Nair said partnering Mukesh Ambani will be considered if there is a hostile takeover threat from ITC. (PTI)

* HSIL: Goes in for brand makeover for Hindware; to invest 1.5 bln rupees in expansion of 'Evok' retail chain. (FC)

* KANORIA CHEMICALS: May enter fine chemicals business, expand Vizag plant. (DNA)

* KEMROCK INDUSTRIES: Raises 750 mln rupees via 12.5% NCDs.

* LUPIN: And MATRIX LABORATORIES recall drugs from the US, the reason cited for former is adulerated presence of foreign tablets. (FE)

* MAHINDRA & MAHINDRA: In talks with Mitsubishi for global tie-up for farm equipment. (ET)

* MODI RUBBER: Unit Modi Tyres Co to be acquired by German tyre maker Continental; financial terms not disclosed. (var)

* NTPC: Company's proposed power plant in Jharkhand could face delays as the coal ministry has referred the matter to a group of ministers.

* OIL & NATURAL GAS CORP: Arm ONGC Videsh may raise stake in Satpayev block to 35%. (var)

* ORCHID CHEMICALS: Reaches out-of-court settlement with Pfizer over the low-cost version of anti-depressant drug Effexor-XR in the US. (ET)

* PERSISTENT SYSTEMS: Jan-Mar consolidated net profit at 331.35 mln rupees, net sales 2.13 bln rupees.

Persistent Systems approves merger of two arms with self.

* PETRONET LNG: Plans new terminal in the East Coast with $1.5 bln investment; looks to double imports as it braces for competition from the

proposed joint venture between RELIANCE INDUSTRIES and BP. (ET)

Amitava Sengupta, director (finance and commercial), quits company's board. (PTI)

* RELIANCE INDUSTRIES: Former Boeing executive Vivek Lall may join as head of company's new division. (Mint)

* RELIANCE INFRASTRUCTURE: Maharashtra Electricity Regulatory Commission rules in favour of KSK Power in offtake dispute with the company; direct Reliance Infrastructure to buy 260 MW from KSK, rejects proposal to terminate power purchase agreement. (DNA)

* RESURGERE MINES: To acquire Maharashtra iron ore mine; Sees total reserves in Maharashtra mine at 47.59 mln tn.

* SESA GOA: The Supreme Court has issued notices to the company and IFCI in the asset buy case of BELLARY STEELS AND ALLOYS.

* SHRIRAM TRANSPORT: Private equity firm in talks with sovereign funds of Singapore and Malaysia to sell its 20% stake in the company and instead buy 14% in Shriram Properties for 4.5 bln rupees. (ET)

* STATE BANK OF INDIA: Breather for bank as RBI seeks clarification on special loans. (FE)

* STATE BANK OF MYSORE: May raise funds via bonds; launches retail sale of gold chains. (BL)

* TATA MOTORS: To open standalone outlets for Nano. (var)

* TATA POWER: Plans to raise up to $400 mln via hybrid capital offer; Appoints Deutsche Bank AG, Goldman Sachs Group Inc, and UBS AG as joint bookrunners.

* VIVIMED LABS: International Finance Corp plans to invest up to $15 mln in the company.

* VOLANT TEXTILE MILLS: Approves 10-for-1 stock split.