Wednesday, Jul 6 - Morning brief for the stock market

Stocks To Watch: Reliance Infra, Kingfisher, Idea, Coal India

Wednesday, Jul 6 - Morning brief for the stock market:

TOP EVENTS TODAY

* Annual General Meet of: HDFC Bank, Sterling Tools.

INDICATORS (previous session)

* NSE provisional net buy/(sale) in bln rupees, Jul 5: FII 8.26, DII 8.98

* Institutional net buy/(sale) in bln rupees, Jul 4: FIIs 11.85, MF 1.12

* FII NSE futures net buy/(sale) in bln rupee, Jul 5: index (6.35), shr (1.58)

* Sensex 18,744.56, down 69.92 points; Nifty 5,632.10, down 18.40 points

* Crude: $97.02; Rupee: 44.47/$1; Gold: $1,512.20/ounce; 10-yr yld: 8.3425%

OUTLOOK

* Key domestic share indices are likely to open flat amid tepid cues from overseas markets, and will trade in a thin band due to lack of local triggers and on renewed concerns over Eurozone's debt situation, dealers said.

GLOBAL STOCK MARKETS

* US: Stocks ended mixed on Tuesday after a choppy session as investors turned cautious after last week's upside, and as concerns over economic growth regained focus after Moody's Investor Service cut Portugal's credit rating to junk.

* ASIA: Key Asian markets were mixed in choppy trade, with financial shares losing ground mirroring the fall in US peers. Eurozone debt concerns persisted as Moody's Investor Service slashed Portugal's credit rating to junk.

IPO WATCH

* National Building Construction Corp to launch its 900-mln-rupee initial public offer in October. (HT)

SECTOR NEWS

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* ASSET MANAGEMENT: Joint Managing Director of National Stock Exchange Chitra Ramakrishna, and ING Vysya Bank's Managing Director Shailendra Bhandari are frontrunners for the post of chairman at UTI Asset Management Co. (FE)

* AUTOMOBILES: Hero Motorcorp to focus on markets such as Latin America, Africa and South East Asia taking its first step towards emerging as a global player after splitting with Honda. (ET)

German car-maker Audi reports 100% rise in sales for first half of the calendar year 2011. (ET)

Fiat India has undergone a restructuring of its board with two directors leaving, three joining and another three getting extra responsibilities. (FE)

* AVIATION: State-carrier Air India has sent the government a bill of 12.22 bln rupees for VVIP flights. (DNA)

India's plan to develop and modernise airports in 35 cities other than the four metros has hit a roadblock even as domestic airlines continue to buy more aircraft. (Mint)

* BANKS: The Reserve Bank of India has reiterated that banks' investments in liquid schemes of mutual funds should remain capped at 10% of their net worth as on Mar 31 of the previous year. The banks have to comply with this requirement within six months. (NW18)

* BROKERAGES: Karvy Computershare has entered into a definitive pact to acquire majority stake in Bahrain Shares Registering Co.

* CONSUMER GOODS: Samsonite is eyeing sales of 15 bln rupees by 2013 and plans to add 25 stores every year mainly in tier I and II cities. (ET)
Samsonite India is re-jigging its footwear pricing strategy by having a separate sub-brand with price points below 3,000 rupees to make its brand of shoes more affordable for the Indian market. (BL)

* CORPORATE: Rising input prices, higher interest rates and limited ability to pass on higher costs to end-users appear to be pushing mid-size Indian companies into corporate debt restructuring. (BL)

Corporate India to report profit growth in "lower teens" for Apr-Jun. (DNA)

* COTTON: The Directorate General of Foreign Trade has barred 178 companies from further export of cotton in the marketing year ending September.

* ECONOMY: India is likely to end 2011-12 (Apr-Mar) with fiscal deficit of 5.2% of gross domestic product, overshooting its target by 600 bln rupees, HDFC BANK said.

* ENERGY: The government is planning to cap sale of subsidised cooking gas cylinders to each household in a phased manner. (BS)

* ENTERTAINMENT: Actor Shah Rukh Khan acquires 26% stake in the Indian franchise of KidZania as Comcraft Group scouts for a significant minority investor to add value to the project. (ET)

* HOSPITALITY: UK's hospitality firm Whitbread will invest 5.35 bln rupees in India by 2020 to fund its hotel business. (ET)

* INFORMATION TECHNOLOGY: The government will shortly impose hefty penalties on business process outsourcing firms that compromise on data privacy of individual customers. (ET)

Publisher Mcmillan Group plans to sell its Indian technology solutions and business process outsourcing firm MPS. (ToI)

* INFRASTRUCTURE: Prime Minster Singh is expected to review progress of key infrastructure sectors like power and coal today. (FE)

* PENSION: A government committee has proposed bringing in the postal department, telecom companies, pension fund managers, fast moving consumer goods companies and third party corporate agents to sell pension products. (BS)

* RAILWAYS: With projects stuck due to paucity of funds and other reasons, the Union Budget for 2012-13 may not see any new railway projects. (FE)

* REAL ESTATE: Tata Housing Development Co has forayed overseas with an 850,000 sq ft residential-cum-commercial, public-private-partnership project in Maldives.

High-end residential property prices are heading for a 20-25% fall mainly in Mumbai and Delhi-National Capital Region. (FC)

* PETROCHEMICALS: Haldia Petrochemicals will save 3.5 bln rupees as the government has waived duty on naphtha. (BL)

* TELECOM: British Telecom will invest 78 mln pound sterling over a year in Asia and hire more than 150 people over three years. (ET)

Vodaphone's minority partner in India, Analjit Singh, may take over as the chairman of the group's Indian operations after the exit of Essar from the venture. (BS)

Bharat Sanchar Nigam is mulling a revival in the fortunes of seven of its manufacturing facilities through tie-ups with private telecom players. (PTI)

STOCKS

* BAJAJ FINSERV: Is planning to raise around 7.50 bln rupees through various options including private equity. (BS)

* BCC FINANCE: Shareholders have approved 3-for-1 bonus share issue.

* CEAT: Last week raised prices by 2.0-2.5% across categories and expects margins to improve from Jul-Sep onwards due to fall in rubber prices. (DNA)

* CENTURY TEXTILES: Expansion plan to increase cement capacity is expected to be completed by Mar 2013. (DNA)

* COAL INDIA: Is set to register an average annual growth rate of 4.3% for the current Five-Year Plan period ending Mar 2012. (BS)

Workers of the company have threatened to go on strike protesting a delay in wage increases. (Agencies)

* CONFIDENCE TRADING CO: The company's board has approved 4-for-1 bonus share issue.

* COROMANDEL INTERNATIONAL: Has signed a pact with Qatar Fertiliser Co to import 277,000 tn urea annually from Qatar.

* DMC EDUCATION: Plans to raise 26.7 mln rupees through issue of convertible debentures to DB CORP.

* GUJARAT MINERAL DEVELOPMENT CORP: Environment Minister Jairam Ramesh is against giving forest clearance to the company's Morga-II coal block in Chhattisgarh. (

* HENKEL INDIA: Parent company JYOTHY LABORITORIES' Managing Director K. Ullas Kamath sees company's topline growing 25% in this calendar year. (BS)

* HINDUSTAN UNILEVER: Seeks shareholders' approval to transfer certain assets, liabilities and properties of fast moving consumer goods exports business division of the company to Unilever India Exports. (ET)

* IDBI BANK: Buys 10% stake in upcoming commodity bourse Universal Commodity Exchange for 100 mln rupees. (ET)

* IDEA CELLULAR: Gets relief from a telecom tribunal which restrained the department of telecommunications from imposing a 2.5-bln-rupee penalty. (ET)

Telecom Disputes Settlement and Appellate Tribunal has stayed a 2.5-bln-rupee penalty on the company for holding overlapping licences in five circles.

* INDIAN HOTEL COMPANY: Its plan to construct a luxury hotel and convention centre at the Sea Rock site in Mumbai is facing environmental concerns. (BS)

* INDIAN OVERSEAS BANK: Plans to set up an information technology subsidiary by tying up with an IT company. (PTI)

* INDUSIND BANK: MD and Chief Executive Officer Romesh Sobti has said the bank will build scale of operation without sacrificing on profitability. (BS)

* JINDAL STEEL AND POWER: Has managed to get 4.66% in Australian coal miner Rocklands Richfields after extending the open offer deadline twice. (BS)

* KESORAM INDUSTRIES: Has put its cement expansion on hold in the wake of oversupply in the industry. (BS)

Has embarked on organisational restructuring of its tyre division. (DNA)

* KINGFISHER AIRLINES: The Airports Authority of India has encashed a bank guarantee of 1 bln rupees of the company after it failed to clear airport charges to the tune of 2.50 bln rupees. (FE)

* MIRC ELECTRONICS: To focus on strengthening its existing portfolio and entering newer geographies rather than launch newer ones as it plans to grow its revenues to around 45 bln rupees by 2013. (BL)

* MONNET ISPAT: Coal ministry has warned the company against inordinate delay in developing its Utkal-B2 coal block in Odisha.

* NATIONAL ALUMINIUM CO: Orissa Government has decided to ask the company to spend 100 mln rupees a year towards periphery development activities in order to avail itself of the bauxite reserve in Koraput district. (BL)

* OIL & NATURAL GAS CORP: Is in the process of exiting the South Karnpura block in Jharkhand and filing product sharing contract for four on which it has found gas in viable quantities this year. (ET)

* ORIENT GREEN POWER CO: Has synchronised its 10 MW biomass power plant near Pollachi with the Tamil Nadu grid.

* PVR: Has bought 40% remaining stake in PVR Pictures to make it a wholly owned subsidiary.

* RANE ENGINE VALVE: TRW Automotive has cut its stake in the company to 4.9% from 9.8% earlier.

* RELIANCE INDUSTRIES: Is looking for buyers for its gas transportation and marketing company, Reliance Gas Transportation Infrastructure. (BS)

Has written to Directorate General of Hydrocarbons committing it will immediately start drilling three wells at its D6 basin. (BS)

* RELIANCE INFRA: Has started a pilot project under which real estate developers and builders can apply for power connections online. (HT)

Has sought clarification from the Maharashtra government and Maharashtra State Road Development Corp on issues including viability gap funding for a proposed coastal road in Mumbai. (Mint)

* SANTOWIN CORP: Has started gold exploration operations at its mines in Ghana.

* SATYAM COMPUTERS: Is likely to sign a big global deal with Formula 1 at the Indian Grand Prix scheduled on Oct 30. (BS)

* SONATA SOFTWARE: Sees aggressive US foray boosting its prospects. (DNA)

* TATA CONSULTANCY SERVICES: Promoter Tata Sons has pledged 4.4 mln more shares of the company on Jun 29.

* TATA TELESERVICES (MAHARASHTRA): The company, along with parent Tata Teleservices, has raised $750 mln through external commercial borrowings in May.

* VARUN INDUSTRIES: Has discovered rare earth deposits in 10 blocks in Madagascar with potential reserves of around 267 mln tn.

* WIPRO: Is betting big on Cloud computing, analytics and mobility to deliver a big push to its business in the next three years. (HT)

* YES BANK: Has received approval from shareholders to raise up to $500 mln through qualified institutional placement of shares or private placement of overseas equity instruments.