Monday, Jul 25 - Morning brief for the stock market

Stocks To Watch: RIL, JB Chemicals, Balrampur Chini, Kingfisher

Monday, Jul 25 - Morning brief for the stock market:

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BIG PICTURE

* DIPP mulls further revision of WPI base year to 2010-11 from 2004-05 (FE)

TOP EVENTS TODAY

* Nifty companies detailing Apr-Jun earnings:

+ NTPC (net profit seen at 21.16 bln rupees, up 15% on year)

+ Reliance Industries (net profit seen at 57.6 bln rupees, up 19% on year)

+ Sterlite Industries (net profit seen at 15.5 bln rupees, up 53% on year)

* Apr-Jun earnings to be detailed by: Balaji Amines, Bank of India, Bank of Maharashtra, Easun Reyrolle, Edserv Softsystems, Chemplast Sanmar, Coromandel Engineering, Dhanlaxmi Bank, Edelweiss Capital, Energy Development Co, Geometric, GI Engineering Solutions, Graphite India, HeidelbergCement India, HSIL, Indbank Merchant Banking Services, India Gelatine & Chemicals, Jindal Cotex, JMD Telefilms, Jyoti Structures, Mastek, Oriental Bank of Commerce, Patni Computer Systems, Peninsula Land, S.E. Investments, SIL Investments, Supreme Industries, Visaka Industries, VLS Finance, Welspun Projects, Zee News, Zenith Exports.

* Annual General Meet of: Chemplast Sanmar, Coromandel Engineering Co, Edelweiss Capital, Geometric, Graphite India, JSW Steel, JB Chemicals & Pharmaceuticals, Jyoti Structures, Mahindra Holidays & Resorts India, Money Matters Financial Services, NHC Foods, Nicco Parks & Resorts, Krishna Ventures, Rajratan Global Wire, V-Guard Industries, Visaka Industries, Zee News.

INDICATORS (previous session)

* NSE provisional net buy/(sale) in bln rupees, Jul 22: FII 4.45, DII 2.43

* Institutional net buy/(sale) in bln rupees, Jul 21: FIIs (1.72), MF 2.06

* FII NSE futures net buy/(sale) in bln rupee, Jul 22: index 6.41, shr 0.97

* Sensex 18722.30, up 286.11 points; Nifty 5633.95, up 92.35 points

* Crude: $99.87/bbl; Rupee: 44.35/$1; Gold: $1,601.3/ounce; 10-yr yld: 8.3142%

WEEKLY SECTORAL OUTLOOK

* AUTO:

* BANKS: Firm; RBI policy action may weigh on sentiment.

* CAPITAL GOODS: Rangebound; BHEL, Siemens earnings eyed.

* CEMENT:

* FMCG:

* IT: Rangebound; HCL Technologies in focus.

* OIL:

* PHARMACEUTICALS:

* STEEL:

* TELECOM:

OUTLOOK

* Local share indices are seen opening weak, trailing Asian markets, on concerns over a likely debt default in the US as the nation's lawmakers failed to reach a deal on raising its debt ceiling over the weekend.

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GLOBAL STOCK MARKETS

* US: Indices ended up on Friday as strong corporate earnings lifted sentiment.

* ASIA: Equities were weak today as US lawmakers failed to come to a debt deal over the weekend, raising concerns that the nation will be unable to raise its $14.3 trln debt ceiling by Aug 2.

SECTOR NEWS

* AUTOMOBILE: Volvo to introduce corporate luxury sedans in India next year. (BS)

* AVIATION: Air India Chairman Arvind Jadhav said lack of direction and procedural delays hurting the carrier. (FE, Sat)

Air India looking at the sale and leaseback route to acquire 27 Boeing 787 planes in order to cut its debt. (Mint)

The Board of Reconstruction of Public Sector Enterprises plans to bring Air India under its wing. (Mint)

* BANKING: Deutsche Bank set to appoint Anshu Jain as co-CEO. (ET)

* COMMODITIES: Allegations of chemical contamination in rapeseed meal and soymeal exports to China threaten to affect India's exports worth 6 bln rupees

* DEFENCE: Foreign Investment Promotion Board says non-defence foreign companies can invest in the sector up to the 26% sectoral foreign direct investment cap. (FE

* ENERGY: Shut down of about 50 iron ore mines in Karnataka to hit supplies to steel companies. (ET)

Rashtriya Ispat Nigam set to get approval from the government to mine iron ore in Bhilwara, Rajasthan. (ET)

Coal ministry likely to make norms more stringent for bidding for new blocks. (BS)

* ENVIRONMENT: Prime Minister Manmohan Singh says to soon form national environment body to grant industry clearances. (FE)

* FMCG: L'Oreal SA plans to invest 5 bln rupees to expand its operations in India. (ET)

* GEMS & JEWELLERY: The domestic industry is likely to touch 2.13 trln rupees by 2015, according to a study by Assocham. (BL, Sat)

* GOVERNMENT: The government will buy back around 70 bln rupees of fertiliser bonds Jul 22-29.

Finance Minister Pranab Mukherjee is to meet corporate bigwigs on Aug 1 to allay fears on reforms and growth. (ET, Sat)

The finance ministry is exploring the option of introducing tax deducted at source or TDS in the service sector to stem tax evasion. (ET, Sat)

* INSURANCE: The Insurance Regulatory and Development Authority may set a timeline for life insurance companies to list their shares. (var, Sat)

* INVESTMENT: Future Ventures has acquired additional 30% stake in Amar Chitra Katha, taking its stake in the company to 56%.

* MEDIA: UTV's broadcasting arm UTV Entertainment Television set to launch a Bollywood entertainment channel in mid-August. (BS)

* OIL: Government has said India is yet to officially hear from Iran on stopping crude oil supplies if the dispute over payments remains unresolved. (

* PORTS: Chennai Port Trust is likely to move coal and iron ore to the nearby Ennore port following a directive from Madras High Court. (BL, Sat)

* POWER: Nuclear Power Corp is in talks with consortium of 12 European banks to raise 4 bln euros ($5.7 bln) to fund its proposed 10,000 MW nuclear power plant at Jaitapur in Maharashtra. (FE, Sat)

Power ministry has begun a process to review the existing competitive tariff bidding guidelines. (FE)

Companies looking to set up plants in special economic zones may be exempted from the positive net foreign exchange norm. (BL)

* PRIVATE EQUITY: IDFC Private Equity has invested 1.5 bln rupees in GVR Infra Projects.

* REAL ESTATE: The draft of new land acquisition bill has proposed a higher 20% stake for the farmers from the sale of acquired land. (ET)
Emami Group and Sheth Developers to jointly develop residential complex at Dadar in Mumbai; total investment seen at over 1 bln rupees. (ET)

* REGULATORY: Foreign institutional investors' pre-earnings buying spree under SEBI lens. (PTI)

* RETAIL: A Committee of Secretaries has approved a proposal to allow 51% foreign direct investment in multi-brand retail.

Future Group has sought tie-ups for home retail and electronics business. (CNBC-TV18)

Slowdown in volume growth, margin pressure, and falling consumer discretionary spending likely to weigh on Apr-Jun earnings of the companies. (FE)

* TAX: Finance ministry to soon announce new accounting regime for taxation purposes. (FE)

* TELECOMMUNICATION: The Telecom Commission has recommended a scheme for creating National Optical Fibre Network--costing 200 bln rupees—for providing broadband connectivity to panchayats

The Telecom Regulatory Authority of India may bring the 120-bln-rupee

mobile value added service market under its regulation. (FE, Sat)

Kapil Sibal says 2G spectrum scandal a result of internal intense rivalry among the companies in the sector; government functioning under shadow of fear. (ET)

Department of Telecommunications may allow spectrum sharing among operators. (DNA)

STOCKS

* AKZO NOBEL INDIA: Is planning its biggest paint plant in India, make an acquisition, and will tap the mid-market segment for faster growth. (DNA, Sat)

* APOLLO HOSPITALS ENTERPRISE: To invest 16 bln rupees to add 3,000 beds in next three years. (BS, Sat)

* ASHOK LEYLAND: Joint venture with Nissan Motor Co has started production of its first light commercial vehicle, Dost.

* AXIS BANK: May consider raising Tier-I capital in 2012 and has sought modifications to the in-principle approval given by Reserve Bank of India for acquiring Enam Securities.

* BALRAMPUR CHINI MILLS: Posts net loss of 198.6 mln rupees in Apr-Jun, compared with a net profit of 111.3 mln rupees last year.
To draw up major expansion plans on deregulation of the industry. (DNA)

* BHARTI AIRTEL: Has raised call charges by 20% in some circles due to falling margins and high 3G auction bids.

* CADILA HEALTHCARE: In talks to acquire brands and manufacturing facility of Biochem Pharmaceuticals for around 3.0-4.5 bln rupees. (ET)

* CANARA BANK: May hire 3,000 personnel in 2011-12. (BL, Sat)

* COAL INDIA: Has said that delay in receipt of environmental clearance for mining projects has stalled investment decision on 67 new projects and delayed expansion of ongoing projects. (ET, Sat)

* CONTAINER CORP OF INDIA: Plans to start ocean freight carrier service along with TRANSPORT CORP OF INDIA. Will start trial operations for non-vessel operating common carrier service in six months on India-Singapore route. (DNA, Sat)

* CROMPTON GREAVES: HDFC MF ups stake in the company to 5.77% from 4.76%

* EMAMI: Group company Emami Biotech to invest 5.5 bln rupees to expand edible oil refinery capacity in next two years. (BL, Sat)

* GATEWAY DISTRIPARKS: Apr-Jun net profit rises 46.6% on year to 222.87 mln rupees; net sales soars 60.5% to 601.19 mln rupees.

* GODREJ CONSUMER PRODUCTS: Apr-Jun consolidated net profit up 94% on year at 2.39 bln rupees on strong local and global sales, and recent acquisitions. (

* HERITAGE FOODS INDIA: Has tied up with State Bank of Hyderabad for dairy loans; the collaboration will provide assured supply of milk to company. (BL, Sat)

* ICICI BANK: Has raised rates on some deposits by 25-75 basis points.

* INFOSYS: California-based Union bank has cancelled a $20 mln contract with Infosys to implement its core banking software product Finacle. (FE, Sat)

* IRB INFRASTRUCTURE: Says search conducted by the Income tax authorities at the company's office, sites on Thu and Fri were routine.

* JB CHEMICALS & PHARMACEUTICALS: Will fully exit Russia and Commonwealth of Independent States countries after it sold its prescription drugs business in the region to Dr Reddy's Laboratories for 1.37 bln rupees.

* JSW ENERGY: Plans to add 1,100 MW power generation capacity in 2011-12, which will take its total capacity to 3140 MW. (FE, Sat)

* JSW STEEL: Embarks upon a complete restructuring programme for ISPAT INDUSTRIES. (FC)

* KINGFISHER AIRLINES: The Airports Authority of India may consider issuing notices to the company for non-payment of airport charges worth 2 bln rupees. (PTI)

* LARSEN & TOUBRO: Has decided to close its Chinese subsidiary L&T Wuxi due to falling volumes, rising wages, and cultural differences. (FE)

* LML: The scooter manufacturer expects to re-enter western and eastern India markets by 2011 end and will reach southern market by 2013. (BL, Sat)

* MMTC: Has floated tender to export up to 60,000 tn pig iron in Aug-Sep.

* NIIT: Apr-Jun consolidated profit after tax has risen marginally from last year to 131 mln rupees mainly due to high investments made during the quarter.

* NMDC: M.S. Rana set to be appointed as chairman and managing director of the company. (FE)

* NTPC: Power secretary has asked coal secretary to review de-allocation of five of NTPC's coal blocks and restore them to the company.

* OIL AND NATURAL GAS CORP: Plans to invest 260 bln rupees in putting 50 onshore and offshore fields on production, 49 through in-house efforts and one through service contract. (BS, Sat)

* RELIANCE INDUSTRIES: Government has cleared Reliance Industries-BP deal and will enforce provisions of output sharing contract.

Oil minister has said it can't speculate if KG-D6 output will go up by December.

The joint venture with Australian uranium mining major UXA Resources will begin drilling in the northern territory of Australia in next month. (HT, Sat)

Company has hired over 100 short-term managers for its retail, broadband, and core petrochemical businesses. (ET)

* RELIGARE ENTERPRISES: Investment banking arm Religare Capital Markets to acquire controlling stake in South Africa's Noah Financial Innovation for an undisclosed sum. (ET)

* RESURGERE MINES & MINERALS INDIA: To mull new mine acquisition offer Friday.

* SATYAM COMPUTER SERVICES: Defers salary increments to employees till October. (ET, Sat)

* SESA GOA: Has refuted allegations over an under-invoicing of exports and imports worth over 10 bln rupees. (PTI)

* SHARON BIO-MEDICINE: Dehradun unit has received Canada approval.

* SPICEJET: Is looking to raise funds via share sale. (ET)

* STATE BANK OF INDIA: SBI Life Insurance Apr-Jun net profit rises 26% on year to 1.4 bln rupees. (var)

* SUZLON ENERGY: Has offered to buy the remaining stake of 4.8% in REpower Systems AG for 142.77 euros a share.

* SYNDICATE BANK: Has sought bids for sale of Vertex Spinning's plant and property in Dhar district of Madhya Pradesh.

* TATA MOTORS: Has begun assembling commercial vehicles after it opened a 110-mln-rand CV assembly unit with a capacity 3,650 vehicles/year in South Africa in a joint venture.

Has cut its net debt by 21% to 241.80 bln rupees in 2010-11. (var)

* TATA STEEL: Plans to invest in last-mile rail connectivity and building specially designed wagons. (BL, Sat)

* UNION BANK OF INDIA: Hikes BPLR by 25 bps to 14.5% from today.

* WIPRO: To draw out plans to provide IT services to seeds, fertiliser, agro-chemical bio pharmaceutical, and commodity companies. (FE)