Monday, Jun 20

Stocks To Watch: Reliance Infra, Reliance Comm, TCS, Cadila, retail

Monday, Jun 20 - Morning brief for the stock market:

BIG PICTURE

* Pranab says RBI's monetary measures if "extended" may hurt growth

* RBI Chakrabarty says to hike rates more if needed to curb inflation

* IMF cuts US 2011 econ growth forecast to 2.5% vs 2.8% earlier

TOP EVENTS TODAY

* Jan-Mar earnings to be detailed by Bimetal Bearings.

* FY11 earnings to be detailed by Prime Focus.

* Annual General Meet of: Kew Industries, LG Balakrishnan & Bros, Responsive Industries, and State Bank of India.

* Board Meetings of: Prime Focus, RPP Infra Projects, and Xpro India Prito to consider dividend.

+ Nelcast to consider stock split.

+ Abirami Financial Services to mull making loans to and invest in

bodies corporate and to provide guarantees and securities.

INDICATORS (previous session)

* NSE provisional net buy/(sale) in bln rupees, Jun 17: FII (3.90), DII (0.353)

* Institutional net buy/(sale) in bln rupees, Jun 16: FIIs (4.23), MF 0.446

* FII NSE futures net buy/(sale) in bln rupee, Jun 17: index (2.99), shr (1.38)

* Sensex 17870.53, down 115.35 points; Nifty 5366.40, down 30.35 points

* Crude: $93.01/bbl; Rupee: 44.86/$1; Gold: $1,539.10/ounce; 10-yr yld: 8.27%

WEEKLY SECTOR OUTLOOK

* AUTO: Seen tailing broad market.

* BANKS: Seen weak on expected margin dip after RBI rate hike.

* CAPITAL GOODS: Seen range-bound with a slightly weak bias.

* CEMENT: Seen under pressure on monsoon, SFIO probe.

* FMCG: Seen range-bound tracking broad market.

* INFORMATION TECHNOLOGY: Seen down on global growth worries.

* OIL: State-owned oil retailers seen up; Reliance Ind may hit new lows.

* PHARMACEUTICAL: Seen trading in a range with downward bias.

* STEEL: May slip on slower industrial growth.

* TELECOM: Seen weak on global economic worries.

OUTLOOK

*Share indices are likely to open flat to slightly up tailing gains in most overseas markets on hopes European officials may reach a consensus on financial aid to debt-laden Greece.

GLOBAL STOCK MARKETS

* US: Indices ended mixed on Friday, with the Dow Jones and S&P 500 indices ending firm on news that France and Germany agreed on a deal to support the debt-ridden Greece.

* ASIA: Key Asian markets were trading slightly higher on hopes European officials would manage to chart out a mutually agreeable deal on rescuing debt-ridden Greece as France and Germany showed inclination to support the same.

SECTOR NEWS

* AVIATION: Air India has not paid May salaries to its 33,000 employees and 7,000 casual workers. (Mint, Mon)

* CAPITAL GOODS: BHARAT HEAVY ELECTRICALS, LARSEN & TOUBRO, NTPC plan to recruit 4,000 employees to take their staff strength to over 50,000 by March. (BL, Sat)

* CHEMICALS: Denmark-based Hempel plans to set up a plant in Maharashtra to manufacture paints with an investment of 1 bln rupees. (BL, Sat)

* CORPORATE: Market capitalisation of the Tata group has overtaken that of Reliance Industries and Reliance ADAG group put together. (PTI, Mon)

* ECONOMY: IMF cuts global 2011 econ growth forecast to 4.3% vs 4.4% earlier.

IMF keeps India 2011 econ growth forecast unchanged at 8.2%.

GDP base may be shifted to 2011-12 (Apr-Mar). (ET, Mon)

* ENERGY: Petroleum ministry has pulled up GAIL (INDIA) and oil retailers for bidding to get gas pipeline projects when gas availability is uncertain. (NW18)

The government wants to increase the exposure norms of Indian banks to fund power sector. (Mint, Mon)

* EXPORT: The government Friday notified the extension of Duty Entitlement Pass Book scheme for exporters by three months to Sep 30.

* FMCG: Companies are tightening advertising and marketing spends to maintain margins. (PTI, Mon)

* HEALTHCARE: UK's Actis plans to sell its 80% stake in Gujarat-based Sterling Hospitals. (var, Mon).

* INDUSTRY: Land acquisition for Posco's steel project in Gobindpur and Dhinkia villages in Odisha has been postponed due to stiff resistance from villagers. (BS, Mon)

* MONSOON: India Meteorological Department says monsoon reaches parts of eastern Uttar Pradesh and Vidarbha while covering entire Bihar, Jharkhand, and Odisha.

* POLICY: A two-member committee set up by the West Bengal government may allow corporates to acquire up to 5 ha without seeking the government's permission. (ET, Sat)

* PUBLIC SECTOR: Cabinet to soon take up the proposal of granting conditional 'Maharatna' status to BHARAT HEAVY ELECTRICALS and GAIL (INDIA). (HT, Sat)

* REAL ESTATE: ICICI Venture Funds Management Co plans to raise 7.5-10.0 bln rupees for its second real estate fund, the India Advantage Fund. (var, Sat)

* REGULATORY: SEBI may finalise takeover rules by June-end; trigger point for making an open offer may be raised to 25% from the current 15%. (HT, Sat)

SEBI says merchant bankers, underwriters, and registrars to an issue need not take the prior approval before effecting a change in their constitution or status.

SEBI has directed companies to dematerialise their entire promoter shareholding by Sep 30.

* RETAIL: The government has reached a consensus to allow foreign direct investment in multi-brand retail, but with stiff riders. (BS, Sat)

* TAX: Finance Secretary Sunil Mitra said the total tax refund target for the 2011-12 (Apr-Mar) is seen at 1.05 trln rupees.

* TELECOM: CBI is examining new set of documents to determine Essar Group's holding in Loop Telecom. (ET, Mon)

CBI is likely to probe dual technology policy and the way it was implemented by former telecom minister A. Raja. (FE, Mon)

STOCKS

* ACKRUTI CITY: Private equity firm Milestone Capital Advisors has invested 1 bln rupees in one of the company's residential projects. (Mint, Sat)

* APOLLO HOSPITALS ENTERPRISE: Group may hive off its pharmacy business into a separate entity in 18 months. (HBL, Mon)

* ARVIND: Plans to add two new overseas brands to its portfolio in 2011-12 (Apr-Mar). (BL, Sat)

* BHARAT HEAVY ELECTRICALS: Its electronics division has won a 620-mln-rupee turnkey contract from Karnataka Power Corp to set up a 5-MW solar power plant. (BL, Sat)

* CADILA HEALTHCARE: Its indirect subsidiary Zynesher Pharmaceuticals USA LLC signs pact to buy assets of US-based Nesher Pharmaceuticals Inc.

* GRASIM INDUSTRIES: And BOMBAY DYEING AND MANUFACTURING CO have been dragged to Competition Commission of India for allegedly abusing their dominant position. (FE, Mon)

* GREAT EASTERN SHIPPING CO: Has sold and delivered its 1989-built Suezmax crude carrier Jag Lakshya' to the buyers.

* IDBI BANK: Has raised deposit rates in two maturities by 25 basis points each, but has maintained a status quo on loan rates "for now".

* INFRASTRUCTURE DEVELOPMENT FINANCE CORP: To raise at least 1 bln rupees through 25-month bonds.

* LANCO INFRATECH: May go slow on expansion of its Andhra Pradesh gas-based power plant due to domestic gas supply shortage. (BS, Sat)

* MANAPPURAM GENERAL FINANCE& LEASING: Is planning a non-convertible debenture issue in July. (HBL, Mon)

* MAX INDIA: Has got board approval for acquisition of 16.37% stake in Max Healthcare Institute from Warburg Pincus group for 1.4 bln rupees.

* NATIONAL ALUMINIUM CO: Is planning to acquire up to 30% stake in a coal supplier in Indonesia. (FC, Mon)

* NHPC: Is looking at submitting a revised detailed project report for two of its projects in Myanmar by Dec. (Mint, Sat)

* NTPC: Coal ministry may warn the company that two more of its coal blocks may be de-allocated if not developed immediately. (PTI, Mon)

* OIL AND NATURAL GAS CORP: Cabinet has approved the merger of the company's Russian arm with Sistema promoted Bashneft and Russneft. (ET, Mon)

* PSL: Plans to enter the port construction business and invest up to 5 bln rupees in building a jetty at the Kandla port in Gujarat. (ET, Sat)

* RELIANCE COMMUNICATIONS, RELIANCE INFRASTRUCTURE: To be excluded from the Sensex from Aug 8. SUN PHARMACEUTICAL INDUSTRIES and COAL INDIA to replace the shares in the index.

* RELIANCE INDUSTRIES: Is believed to have hired STATE BANK OF INDIA, Bank of America, and Citigroup, among others, to raise around $1.1 bln debt. (PTI, Sat)

* RELIANCE POWER: Company's Krishnapatnam ultra mega power project is facing hurdles because of several reasons. (var, Mon)

* SIEMENS: Acquires 16% stake in US-based solar power company Semprius. (BL)

* SPICEJET: Kal Airways Pvt Ltd, one of the promoters, has pledged 20.70 mln more shares of the company on Jun 3.

* STANDARD INDUSTRIES: In pact with Peninsula Mega City Development to develop 62.25 acres of land near Ghansoli in Navi Mumbai.

* TATA CONSULTANCY SERVICES: Income Tax department has asked the company to pay 6.56 bln rupees relating to the assessment year 2007-08. (FE, Sat)

* TATA MOTORS: Chairman Ratan Tata has said that by 2020 the company should be "more mature". (PTI, Mon)

* TATA STEEL: Company's joint venture Tata Steel Minerals Canada in pact to develop New Millenium Iron Corp's direct shipping iron ore project in western Labrador and north-eastern Quebec. (BL, Sat)

* TIMKEN INDIA: US parent is likely to make an open offer for 20% shares of the company. (DNA, Mon)

* UNION BANK OF INDIA: Chairman and Managing Director M.V. Nair says high interest rates may pressure credit offtake in 2011-12 (Apr-Mar) and the bank may revisit its credit growth target for the year, if necessary.

* VISAGAR POLYTEX: Gets shareholders' approval to issue up to 446,400 warrants at 112 rupees each.

* WIPRO: Promoter Rishad Premji, son of Chairman Azim Premji, sold 260,000 shares of the company at an aggregate value of 110.28 mln rupees.