Tuesday, Jun 28 - Morning brief for the stock market

Stocks To Watch: Cairn India; Artson Engg; Future Ventures; Trent
Tuesday, Jun 28 - Morning brief for the stock market:

BIG PICTURE
* Pranab expects Indian econ to maintain FY11 momentum this yr (NW18)
* Pranab urges states to cut taxes on diesel, kerosene, cooking gas. (NW18)

TOP EVENTS TODAY
* Apr-Jun earnings to be detailed by: Transport Corp of India, and Uni Abex Alloy Products.
* Annual General Meet of: Bata India, Elnet Technologies, Dhandapani Finance, Hotel Leela Venture, Kirloskar Pneumatic, Micro Technologies, Oriental Hotels, Prag Bosimi Synthetics, Surana Corp, Unichem Laboratories, and YES Bank.

* Board Meetings of:
+ Consolidated Finvest & Holdings, to consider dividend.
+ Paraan, to consider allotment of shares and convertible warrants.
+ Velan Hotels, to consider dividend.

INDICATORS (previous session)
* NSE provisional net buy/(sale) in bln rupees, Jun 27: FII 14.47, DII (7.66)
* Institutional net buy/(sale) in bln rupees, Jun 24: FIIs 10.22, MF 0.58
* FII NSE futures net buy/(sale) in bln rupee, Jun 27: index (1.83), shr (3.04)
* Sensex 18412.41, up 171.73 points; Nifty 5526.60, up 55.35 points
* Crude: $90.61/bbl; Rupee: 45.03/$1; Gold: $1,496/ounce; 10-yr yld: 8.2621%

OUTLOOK
* Local indices are seen opening slightly positive today, tracking cues in global markets. The upside may be limited due to profit taking, and trade is likely to be choppy ahead of June futures contracts expiry on Thursday.

GLOBAL STOCK MARKETS
* US: Wall Street ended up on Monday, led by banks, as the new capital rules, issued over the weekend, were not as harsh as expected.
A proposal put forth by French lenders to help Greece avoid a debt default by allowing slower repayment of loans also supported sentiment.
* ASIA: Asian markets gained on hope French and German lenders may allow Greece to rollover 70% of its debt into longer-term bonds, helping the nation to avoid a debt default.

SECTOR NEWS
===========
* AUTOMOBILES: Toyota Kirloskar has forayed into the hatchback market in India with the launch of its Etios Liva car.
All India Motor Transport Congress says freight rates could go up 8-16% if the government does not rollback part of the fuel price hike. (DNA)

* AVIATION: Air India warns the government on likely default in interest payments on foreign loans worth 150 bln rupees. (BS)
The Comptroller and Auditor General is working on a special audit on Air India-Indian Airlines merger. (BS)

* BROKING: The finance ministry has decided to allow foreign direct investment in proprietary trading. (BS)

* CORPORATE: Several Indian companies have begun exploring possibilities to get cheaper loans from China to meet their foreign borrowing obligations.
(PTI)

* ECONOMY: Planning Commission Deputy Chairman Montek Singh Ahluwalia has said fuel price hike would not affect inflation after three to four months.

* GOVERNMENT: India's ambassador to France Ranjan Mathai will be the next foreign secretary.

* INFRASTRCTURE: The Jawaharlal Nehru Port Trust will open bids today for its fourth container terminal. DP World, Port of Singapore Authority, GVK Power and Infrastructure Ltd and Sterlite Industries are among the short-listed bidders. (BL)

* INSURANCE: The Parliamentary Standing Committee on Finance may rule against raising the cap on foreign direct investment in the insurance sector to 49%
from the current 26%. (BS)

* MONSOON: India Meteorological Department has said Jun 27 rainfall 17% above normal; Jun 1-27 rainfall 9% above normal

* PORT: The Jawaharlal Nehru Port Trust will open request-for-proposal bids submitted by five companies to develop the fourth container terminal at the port today.

* REAL ESTATE: The proposed Real Estate Regulation Bill is likely to be delayed as the ministry of housing and poverty alleviation is yet to get the law ministry's opinion. (BS)
Real estate investment and development firm South Asian Real Estate has clinched a deal to buy 100-acre land in Navi Mumbai from Silver Oak. (var)

* STEEL: Karnataka farmers prepare to oppose land acquisition for Posco India's proposed 6 mln tn per year steel plant near Gadag. 275 farmers have
already filed objections with the Industrial Area development Board. (BL)

* SUGAR: Agriculture Minister Sharad Pawar has sought Prime Minister Manmohan Singh's intervention to finalise ethanol pricing and ensure smooth supply in 2011-12 sugar season starting Oct. (BS)
.
* TELECOM: Department of Telecommunications has recommended the Telecom Regulatory Authority of India to review and finalise spectrum pricing by Dec
31 every year. (BS)

STOCKS
======
* ARTSON ENGINEERING: Gets order worth 210 mln rupees.
.
* BANK OF MAHARASHTRA: Has launched a co-branded credit card with SBI Cards and Payments Services Pvt Ltd.

* BIRLA CORP: Has sought environment ministry's nod to increase cement manufacturing capacity at its Chanderia plant by 1.5 mln tn per annum.

* CAIRN INDIA: Vedanta Resources not to pay non-compete fee to parent Cairn Energy; Cairn Energy to sell Indian arm's stake to Vedanta in two tranches of
10% and 30%; 30% stake to be subject to government approval. (var)

* CONSOLIDATED CONSTRUCTION: To raise $100 mln via securities issue.

* DISH TV: Promoter Veena Investments revokes 10.5 mln pledged shares of the company.

* FUTURE VENTURES: Kishor Biyani-led Future group to charge royalty from group firms for use of the brand name. Future Ventures will be the first to pay royalty to the Future Ideas Co, a promoter group entity. (FC)

* OIL AND NATURAL GAS CORP: Says Essar, Great Eastern Energy, and Australia-based Dart Energy have expressed interest in picking a significant stake in the company's coal-bed methane blocks in Bokaro, Jharkhand, and Raniganj. (ET)
.
* RAJAPALAYAM MILLS: Has approved 1-for-1 bonus share issue.
.
* RELIANCE INDUSTRIES: The Comptroller and Auditor General says company was consulted before finalising the draft performance audit on hydro carbon
production sharing contract at KG-D6. (PTI)
.
* RESURGERE MINES: Promoter Subhash Sharma pledges 18.75 mln shares in the company.
.
* SESHASAYEE PAPER: Company finalises plans to expand production capacity from 2.1 mln tn to 5 mln tn a year. (BL)

* STERLITE IND: The National Environment Engineering and Research Institute has not found any excess percentages of arsenic, zinc or fluoride than the
permissible limits in and around Sterlite Industries' Thoothukudi copper smelter plant. The study had been ordered by the Supreme Court. (BL)
.
* SURANA INDUSTRIES: Board authorises company to raise $100 mln via issue of shares. Company may raise funds for expansion.
.
* TECH MAHINDRA: Plans to scale up Africa operations, declared Nigeria as headquarters for business process outsourcing operations in Africa. (
.
* TORRENT PHARMACEUTICALS: Plans to launch 35-40 drugs in Brazil in the next two years. (BS)
.
* TRENT: In talks with Spanish retailer Inditex group to bring one more brand Massimo Dutti to India. (BS)
.
* VISESH INFOTECNICS: Board approves merger of Axis Convergence with the company. The merger to add substantial value to the company.