Monday, May 9 - Morning brief for the stock market

Stocks To Watch: Reliance Ind, PFC, SKS Micro, Piramal Healthcare
Monday, May 9 - Morning brief for the stock market:
.
.
BIG PICTURE
* Top economic adviser to Prime Minister cuts India's economic growth estimate for 2011-12 (Apr-Mar) to 8.5% citing inflationary pressures. (var, Sat)
.
.
TOP EVENTS TODAY
* Nifty companies detailing Jan-Mar earnings:
+ Hindalco Industries (Net profit seen at 5.95 bln rupees, down 10% on year)
+ Hindustan Unilever (Net profit seen at 4.53 bln rupees, down 22% on year)
* Jan-Mar, 2010-11 (Apr-Mar) earnings to be detailed by: Adani Power, ARSS Infrastructure Projects, Aurobindo Pharma, Bharat Bijlee Ltd, Gokul Refoils
and Solvent, Graphite India, Hathway Cable & Datacom, Hindustan Oil Exploration Co, Indian Bank, Indosolar, Kwality Dairy (India), Logix Microsystems, Mandhana Industries, Mundra Port and Special Economic Zone, Panasonic Home Appliances India Co, Pradip Overseas, Parekh Platinum, PTC
India, Sundaram Brake Linings, Supreme Infrastructure India, SRF, Thangamayil Jewellery, Thiru Arooran Sugars, Ruby Mills, Vakrangee Softwares, Vardhman
Acrylics, Whirlpool of India, and Zuari Industries.
* Board Meetings of:
+ Alka Securities Ltd, to consider fund raising.
+ Supreme Infrastructure India to mull issue and allotment of non-convertible, redeemable preference shares and investment in arms and other companies.
* Annual General Meet of: Federal-Mogul Goetze (India) and Ranbaxy Laboratories.
.
.
INDICATORS (previous session)
* NSE provisional net buy/(sale) in bln rupees, May 6: FII (6.55), DII 10.18
* Institutional net buy/(sale) in bln rupees, May 5: FIIs (6.23), MF 2.11
* FII NSE futures net buy/(sale) in bln rupee, May 6: index 8.96, shr 7.74
* Sensex 18518.81, up 308.23 points; Nifty 5551.45, up 91.60 points
* Crude: $97.18/bbl; Rupee: 44.7900/$1; Gold: $1,491.6/ounce; 10-yr yld: 8.1741%
.
.
OUTLOOK
* Domestic share indices may open slightly up, amid mixed cues from overseas equity markets, led by extended short covering. However, selling may emerge at
higher levels as crude oil prices have slightly rebounded to over $98 a bbl.
.
.
WEEKLY SECTOR OUTLOOK
* AUTOMOBILE: Seen down on likely fuel price hike.
* BANKS: May rise on bargain buying and fall in crude oil prices.
* CAPITAL GOODS: Sentiment mixed; industrial production data eyed.
* CEMENT: Seen rangebound with a weak bias, tracking the broad market.
* FMCG: Seen in range tracking broad market.
* INFORMATION TECHNOLOGY: To trail broad market and remain rangebound.
* OIL & GAS: May rise on hope of fuel price hike.
* PHARMACEUTICAL: May gain on expectation of robust Jan-Mar earnings.
* STEEL: Seen positive post recovery in market on Friday.
* TELECOM: Seen weak with BHARTI AIRTEL likely to recover.
.
.
GLOBAL STOCK MARKETS
* US: Shares ended up Friday as better-than-expected payrolls data for April eased concerns that higher fuel prices may slowdown US economic recovery.
* Asia: Indices were mixed today as better-than-expected jobs data from the US boosted investor confidence in world economic recovery, but a fall in shares
of Japan's Chubu Electric Power Co dragged down power shares.
.
IPO WATCH
* Reserve Bank of India asks Tamilnad Mercantile Bank to list shares via an initial public offering. (ET, Sat)
.
.
SECTOR NEWS
* AUTOMOBILE: Mercedes, BMW, Audi, Land Rover, and Renault to soon hike vehicle prices by up to 1 mln rupees in India. (ET)
* AVIATION: Aviation Secretary Nasim Zaidi says sector needs $30 bln investment over the next 15 years to keep up with demand. (ET, Sat)
Air India pilots call off 10-day strike after government agreed to reinstate dismissed pilots, acknowledge their union, and addressed
complaints. (var, Sat)
Competition Commission of India asks all low-cost airlines to explain fare hike in last 10 days. (BS, Sat)
Air India's delay in joining the global airline grouping Star Alliance is costing the airline 15-20 mln rupees a day in revenue. (DNA)
.
* BANKING: The RBI and the government are unlikely to finalise guidelines for issuing licenses to new banks until parliament approves banking laws
(Amendment) Bill 2011. (HT)
.
* CORPORATE: Ministry of Corporate Affairs has made cost audits mandatory from April, opening operational details of over 10,000 companies in 14
industries to government scrutiny. (ET, Sat)
.
* ENVIRONMENT: Environment minister says he had cleared projects violating green norms under pressure and regrets those decisions. (HT, Sat)
.
* EXPORTS: Commerce Ministry tightens norms on Deemed Export benefit scheme, which could save the exchequer 18 bln rupees annually. (ET, Sat)
.
* GOVERNMENT SPENDING: The Planning Commission has recommended an aggressive cut in spending on subsidies, pension, and defence expenditure in order to mobilise resources for the 12th Five-Year Plan beginning next year. (ET)
.
* IMPORT: RBI has asked banks to monitor any large or abnormal increase in the volume of rough, cut and polished diamond imports. (Mint, Sat)
.
* INFORMATION TECHNOLOGY: UK-based Serco Group in talks to acquire private equity firm Blackstone's 66% stake in the unlisted business processing unit Intelenet Global Services. (ET)
.
* INFRASTRUCTURE: Government is working on a system in which investors in infrastructure debt funds will not be allowed to exit for a few years. (ET,
Sat)
.
* MICROFINANCE: Andhra Pradesh is opposed to the RBI's recent guidelines on the sector and has raised objection. (FC)
.
* MINING: Supreme Court directs panel to probe into land encroachment in 99 Karnataka mines and says that work will stop if the mines are found guilty
.
* OIL & GAS: BG India, RELIANCE INDUSTRIES, and OIL AND NATURAL CORP plan to invest at least $1 bln to arrest the fall in production from Panna-Mukta and Tapti oil and gas fields. (BS)
.
* POWER: Nuclear Power Corp to set up coastal nuclear power plants in phases. (BL, Sat)
.
* REAL ESTATE: Bank credit to commercial real estate has grown 21.4% in 2010-11. (FC)
.
* REGULATOR: SEBI chief UK Sinha says not to reverse rules restricting mutual funds to pay commissions to distributors. (ET, Sat)
.
* RETAIL: Employees working for branded garment sector may not be required to pay 10% excise duty, which was imposed by the government in the Union Budget for 2011-12 (Apr-Mar). (BS)
.
* SHIPPING: Government says bidding for Jawaharlal Nehru Port Trust's fourth terminal will be delayed by at least two months as the Union Shipping
Ministry expects SC ruling on the project only by July. (DNA, Sat)
.
* STEEL: Union steel secretary P.K. Misra expects 30 mln tn of steel-making capacity to be commissioned in the next two years. (ET)
Odisha government to resume acquiring land for Posco's proposed 12-mln-tn steel plant near Paradip from May 18. (ET)
Indian steel companies like TATA STEEL, JSW STEEL, JINDAL STEEL AND POWER, and STEEL AUTHORITY OF INDIA are mulling a consortium for mineral acquisitions overseas. (HT)
.
* TELECOMMUNICATIONS: Delhi High Court defers bail pleas to five officials of telecommunications companies in 2G spectrum allocation scam to today.
(CNBC-TV18, Fri)
Central Bureau of Investigation court to hear Kanimozhi's bail plea in connection with her alleged role in the 2G spectrum scam on May 14. (CNN-IBN,
Sat)
Supreme Court has found grounds for initiating contempt proceedings against Sahara Group chief Subrata Roy for interfering with 2G scam probe.
(var, Sat)
.
* RETAIL: Private equity fund Warburg Pincus in advanced talks to invest 1.5 bln rupees in IndiaMART.COM. (ET, Sat)
Spencer's Retail: May take another 18 months to break even after it expected to break even in FY11. (BS, Sat)
.
.
STOCKS
* ANDHRA BANK: To hike Base Rate by 50 bps to 10% and Benchmark Prime Lending Rate by 50 bps to 14.25% from today.
.
* AMRUTANJAN HEALTHCARE: Sets share buyback price at 900 rupees a share.
.
* BAJAJ ELECTRICALS: Plans acquisitions in the consumer appliances space, to invest between 500 mln rupees and 4 bln rupees. (DNA, Sat)
.
* BHUSHAN STEEL: Jan-Mar net profit at 2.88 bln rupees, against 2.41 bln rupees a year ago.
.
* COAL INDIA: To produce coalmine methane and has selected five mines to set up projects for it. (DNA, Sat)
.
* CRONIMET ALLOYS INDIA: To mull stock spilt on Friday.
.
* CURA TECHNOLOGIES: Jan-Mar net profit at 3.87 bln rupees vs 7.58 bln rupees a year ago.
.
* DALMIA CEMENT (BHARAT): Is evaluating options to buy out cement companies. (BS)
.
* DEEPAK NITRITE: Jan-Mar net profit at 78.15 mln rupees vs 66.13 mln rupeesa year ago.
.
* DEVELOPMENT CREDIT BANK: Hikes Base Rate and Benchmark Prime Lending Rate by 50 bps each.
.
* DHANLAXMI BANK: Nandan Nilekani, chairman of Unique Identification Authority of India acquires 1.2% stake in the bank. (ToI)
.
* EICHER MOTORS: Jan-Mar net profit at 144.8 mln rupees vs 92.3 mln rupees a year ago.
.
* FEDERAL BANK: Jan-Mar standalone net profit at 1.72 bln rupees vs 1.17 bln rupees a year ago.
.
* FIRST WINNER INDUSTRIES: Jan-Mar consolidated net loss at 1.86 mln rupees, against 1.67 mln rupees a year ago.
.
* GODREJ PROPERTIES: Jan-Mar consolidated net profit at 599.86 mln rupees vs 574.96 mln rupees a year ago.
.
* GOODRICKE GROUP: Jan-Mar net loss at 259.5 mln rupees, against 228.0 mln rupees a year ago.
.
* GREAT EASTERN SHIPPING: Jan-Mar consolidated net profit at 107.8 mln rupees vs 1.56 bln rupees a year ago.
.
* GUJARAT CREDIT CORP: Jan-Mar net loss at 2.11 mln rupees versus 0.14 mln rupees a year ago.
.
* GVK POWER AND INFRASTRUCTURE: FY11 consolidated net profit at 1.549 bln rupees vs 1.558 mln rupees a year ago.
.
* HENKEL INDIA: JYOTHY LABORATORIES makes open offer for 20% more stake in the company at 41.20 rupees a share.
.
* HINDOOSTAN SPINNING AND WEAVING MILLS: Bombay High Court approves merger of company with SIRDAR CARBONIC GAS CO.
.
* HINDUSTAN UNILEVER: Has given its highest bonus in recent years to managers, including the leadership team. Senior and mid-level managers have earned bonuses of up to 4 mln rupees and 2 mln rupees, respectively. (ET)
.
* HOUSING DEVELOPMENT AND INFRASTRUCTURE: To seek dismissal of court case on project at Bandra-Kurla Complex, Mumbai.
.
* ICICI BANK: Has hiked Base Rate by 50 bps to 9.25% and Benchmark Prime Lending Rate by 50 bps to 18.00% from Saturday.
.
* INDIAN BANK: Is looking to hire merchant bankers for its planned 610-mln-rupee follow-on issue. (DNA)
.
* INDIAN EXTRACTIONS: To merge Phthalo Colours & Chemicals with self and also exit solvent oil extraction and edible oil business.
.
* INFOSYS TECHNOLOGIES: Chief Financial Officer V. Balakrishnan will takeover as chairman of Infosys BPO. Chief Executive Officer S.D. Shibulal would be the new chief of Human Resources. (FE)
Infosys said negative sentiment about outsourcing in countries such as US, and UK could affect its business prospects. (PTI)
.
* JET AIRWAYS: Plans to bring all its low-fare operations under the Jet Konnect brand and phase out the JetLite brand completely. (DNA)
.
* KESAR ENTERPRISES: Jan-Mar net profit at 99.09 mln rupees versus 38.35 mln rupee loss a year ago
.
* KESORAM IND: Vasavadatta Cement plans 10-bln-rupee investment to set up new plants and capacity expansion at its existing facilities. (FE)
.
* KINGFISHER AIRLINES: Company is waiting for the right time to begin selling global depository receipts to raise around $300 mln. (var, Sat)
.
* KSK ENERGY VENTURES: Jan-Mar net profit at 376.55 mln rupees vs 948.71 mln rupee a year ago.
.
* LAKSHMI VILAS BANK: To hike Base Rate by 50 bps to 10% and Benchmark Prime Lending Rate by 50 bps to 16.50% from today.
.
* LUPIN: Plans second acquisition in Japan. (BS, Sat)
.
* NETWORK18 MEDIA AND INVESTMENTS: To raise 3 bln rupees via preferential issue of 18.69 secured optionally fully convertible debentures to promoters.
.
* NICCO PARKS & RESORTS: Jan-Mar net profit at 10.90 mln rupees versus 10.80 mln rupees a year ago.
.
* NMDC: Is likely to buy 50% stake in two iron ore mines in Australia this month. (FC)
.
* NOVA IRON: Jan-Mar net loss at 19.00 mln rupees versus 36.33 mln rupees a year ago.
.
* OIL AND NATURAL GAS CORP: Oil ministry is examining a plan to increase ONGC Videsh's power of deciding investments worth up to 30 bln rupees from the current 3 bln rupees. (ToI)
.
* PARSVNATH DEVELOPERS: Chandigarh project in arbitration with Chandigarh Housing Board. (DNA, Sat)
.
* PATNI COMPUTER SYSTEMS: Is set to see top level management exits as iGate starts integration process. (BS, Sat)
.
* PBA INFRASTRUCTURE: To sell entire 49% stake in Aurangabad Jalna Toll Way to Sadbhav Infrastructure Project.
.
* PIRAMAL HEALTHCARE: Jan-Mar consolidated net profit at 2.02 bln rupees versus 1.54 bln rupees a year ago.
.
* PIRAMAL LIFE SCIENCES: To de-merge new chemical unit and merge it with PIRAMAL HEALTHCARE.
.
* POWER FINANCE CORP: Follow-on-public offering price band set at 193-203 rupees per share.
.
* POWER GRID CORP: Likely to finalise a contract for leasing out its tower infrastructure by month-end. (BS)
.
* RELIANCE INDUSTRIES: Has debunked charges that KG-D6 output fell due to non-drilling of an adequate number of wells. (PTI)
Has cut down US lobbying expenses to record low. (BS)
UK's Hardy Oil and Gas Plc will not exercise the option to raise stake in Reliance Industries' operated gas block. (PTI, Sat)
Welspun Maxsteel, ISPAT INDUSTRIES, and Essar Steel move court against company for cutting gas supply to them from today. (BS, Sat)
.
* RURAL ELECTRIFICATION CORP: To sell its first bonds denominated in yen as rupee-denominated finance costs rise. (var, Sat)
.
* SANDU PHARMACEUTICALS: Jan-Mar net profit at 2.12 mln rupees versus 2.28 mln rupees a year ago.
.
* SATYAM COMPUTER SERVICES: PricewaterHouse Coopers has compensated foreign investors in the company with a $ 25.5 mln payout, and will not give domestic investors anything. (HT)
.
* SKS MICROFINANCE: Jan-Mar net loss at 697.68 mln rupees versus 628.93 mln rupees a year ago.
.
* STATE BANK OF BIKANER AND JAIPUR: Hikes Base Rate by 50 bps to 9.25% and Benchmark Prime Lending Rate by 50 bps to 14.25%.
.
* STATE BANK OF TRAVANCORE: Hikes Base Rate by 50 bps to 9.50% and Benchmark Prime Lending Rate by 50 bps to 14.25%.
.
* STERLITE INDUSTRIES: Has cut copper prices by 4% to 457,261 rupees per tn from May 1 valid for this month. (Bloomberg, Fri)
.
* TATA COMMUNICATIONS: Is looking at bringing its retail broadband unit under the ambit of small and medium businesses. (ToI)
.
* TATA ELXSI: To hire 900 more employees in FY12. (BL, Sat)
.
* TATA MOTORS: Company-owned Jaguar Land Rover to build a 700,000-pound petrol- electric hybrid super car that will go on sale in the second half of 2013.
Jaguar to spend $8 bln on new cars in next five years and roll out 40 new models in 60 months. (DNA, Sat)
.
* UNITED BANK OF INDIA: Has hiked Base Rate by 55 bps to 10% and Benchmark Prime Lending Rate by 75 bps to 14.25% from Friday.
.
* VARUN INDUSTRIES: Approves 10-mln-share issue via qualified institutional placement, private placement, and a rights issue of shares.
.
* VISAGAR POLYTEX: To mull bonus share issue today.