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

===========

* 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.

FII’s got all the power’s

Yes, I think the only reason the Indian markets are growing is just because of the Foreign Institutions. 2 weeks back Indian markets corrected nearly 8-9% from 5600-5200 levels when FII’s were Net sellers and the Domestic funds kept on buying in the market. Now when the FII’s have again turned buyers in the market, Indian Equity have bounced back again. Suddenly there is spurt in the volumes, but STIL NOT CHANGE IN THE FUNDAMENTAL OF INDIA. Now the FII’s have turned back Net buyers and see where Nifty is now. We are back to 5600 levels. That proves that the Indian markets are nothing without the foreign markets.

Nifty bounced from the low of 5195 to make a high of 5705 but corrected a bit on the last of the week. Nifty which bounced back from its over sold zone closed at 5627 after facing resistance at the trendline. After four unsuccessful attempt, Nifty finally close above 5600 levels and advanced its rally to make a high above 5700 levels.

Last time I had mentioned about the Head and Shoulder pattern breakout, but was still not convinced about the pull back as there was still no change in the fundamentals of India. Real estate markets are going bad to worse, Bank rates are going up, and Inflation is high but still the Indian markets have rallied.

SBI rallied the most in the banking stocks, it gained almost 6%, Relcap surged 8%, while Hindalco 8.5%. Ril Ind lost nearly 4% on the last day of the trading session. Acc & Bharti Air closed down 2% on week on week basis. Ranbaxy lost 1.5%. In the midcap Jubilant Ind gained 20%, punjlyod was up 16% while the expansion news fired the Bata Ind stock which closed higher by 15%. GTL continued its downtrend, which lost 12%, Sterling bio was another stock which tumbled down 8%. On the other side Midcap Index gained 3.4% and Small cap Index surged 3.8%.

Nifty after a 8 long trading session cooled off a bit after facing resistance at its 61.8% retracement levels. Retracement levels take from the high of 5908 and low of 5195. Nifty rallied from the low of 5195 to make a high of 5705. Nifty faced resistance at its long time trendline. Nifty spot crossed above its 100DMA and 50DMA and surged higher. Nifty close above the trendline will give it push again and nifty can go higher till 5800 levels

Thursday, Jun 30- Morning brief for the stock market

Stocks To Watch: Oracle Financial, Shriram Transport, steel cos

BIG PICTURE

* Greek parliament approves 5-year austerity plan; to vote again Thu

* India, US to jointly deal with high inflation, capital flows volatility (ET)

TOP EVENTS TODAY

* Annual General Meet of: Energy Products India, Graviss Hospitality, Gujarat Cotex, ICSA (India), Jalan Metallurgical, Nu Tek India, Mehta Housing Finance, Oberoi Realty, Pacific Industries, Parichay Investments, Petronet LNG, Ramkrishna Forgings, Reliance Industrial Infrastructure, Spentex Industries, Sobha Developers, Shree Ram Mills, Sterling Biotech, TCPL Packaging and Zydus Wellness.

* Board Meetings of:

+ Advanta India to consider details of FCCB issue.

+ Indian Bright Steel Co to consider share issue on preferential basis.

+ JIK Industries to consider allotment of shares to bondholders on conversion.

+ Luminaire Technologies to consider transfer of shares tendered under the

open offer in the name of Vandana Cloth Centre.

+ Lords Chloro Alkali to consider the preferential allotment of shares..

INDICATORS (previous session)

* NSE provisional net buy/(sale) in bln rupees, Jun 29: FII 6.69, DII (2.40)

* Institutional net buy/(sale) in bln rupees, Jun 28: FIIs 10.16, MF 1.07

* FII NSE futures net buy/(sale) in bln rupee, Jun 29: index 7.28, shr (0.52)

* Sensex 18693.86, up 201.41 points; Nifty 5600.45, up 55.15 points

* Crude: $94.77/bbl; Rupee: 44.86/$1; Gold: $1,509.90/ounce; 10-yr yld: 8.3183%

OUTLOOK

* Domestic indices may open positive today as Greece's Parliament passed the nation's austerity plan. Trade is likely to be volatile on the last day of expiry of June futures contract.

GLOBAL STOCK MARKETS

* US: Indices ended up on Wed after Greece approved a five-year austerity plan. The US Federal Reserve's decision to cap debit-card transaction fee at 21 cents, lower than that proposed earlier, also supported the upside.

* ASIA: Most markets rose today as Greece passed the nation's five-year austerity plan, moving a step forward to get the bailout package from the International Monetary Fund and the European Union.

SECTOR NEWS

* AUTOMOBILE: Japanese auto major Toyota to hire 2,000 employees in India this year in a move to bolster its market share by launching small cars. (ET)

Toyota to recall over 110,000 hybrid vehicles in the US, Japan, and Europe due to faulty transistors in electrical power control boards. (ET)

* AVIATION: The union law ministry has given an opinion that the aviation ministry has supremacy over the Airport Economic Regulatory Authority. (HT)

* BANKING: Banks have made it mandatory for companies to pay a commitment fee on loans that are not drawn on time; fee is anywhere between 0.25-1.00% of the sanctioned amount. (FC)

* BROKERAGE: Angel Broking has laid off around 2,000 employees in the past six months in order to cut costs. (FE)

* CORPORATE: RBI reiterated an Indian company can transfer or sell its stake in an overseas joint venture to another Indian company without its approval.

* ECONOMY: Prime Minister Singh said his government is committed to annual economic growth rate of 9-10%.

* ENERGY: Australia set to implement the minerals resource tax on exports of coal and iron ore; 22.5% resource tax likely from Jun 2012. (DNA)

* INFORMATION TECHNOLOGY: Hewlett-Packard in talks to license its webOS mobile software. (Bloomberg)

* INFRASTRUCTURE: Tata Realty and Infrastructure Ltd is planning to bid for the Navi Mumbai international airport development and other airports in Pune and Nagpur. (Mint)

* INSURANCE: The General Insurance Corp of India has seen claims of 4 bln rupees from the earthquake in Japan. (ET)

* LAW: The Union cabinet may approve amendments to the law on benami property today. (ET)

* MUTUAL FUND: Securities and Exchange Board of India plans to cap the expiry of a mutual fund license to just one year from the date of issue in order to prevent funds with poor finances from entering the market. (ET)

* OIL AND GAS: Competition Commission of India is probing an alleged cartel by state-owned oil companies in bio-diesel purchase.

Maharashtra government has cut value added tax on diesel and kerosene by 200 bps each.

Maharashtra government to face revenue loss of 14 bln rupees due to the cut in value added tax on diesel and kerosene. (DNA)

Brihanmumbai Municipal Corporation has scrapped octroi on liquefied petroleum gas cylinders. (ToI)

* PHARMACEUTICAL: Bristol-Myers Squibb Co signs agreement with Matrix Laboratories to expand access to anti-retro viral drug Reyataz. (BL)

* REGULATOR: Securities and Exchange Board of India is keeping a close watch on companies that have announced buy back of shares frequently. (BS)

* TELECOM: Vodafone Plc in talks with partner Analjit Singh and other investors on who would pick up the 1.5% stake in its Indian venture. (BS)

STOCKS

* ACKRUTI CITY: Has raised 3 bln rupees from Future Capitals NBFC arm, STATE BANK OF INDIA, and ICICI BANK by mortgaging two fully-built commercial buildings in Mumbai. (ET)

* APTECH: Has got dividend of 503 mln rupees from its Chinese venture.

* CAIRN INDIA: The deal between parent Cairn Energy and Vedanta Resources is listed on the Cabinet Committee on Economic Affairs' meeting agenda today.

* CANARA BANK: Will raise its Base Rate and Benchmark Prime Lending Rate by 25 basis points each to 10.25% and 14.25%, respectively, from Friday.

* COMMERCIAL ENGINEERS & BODY BUILDERS CO: Received an order worth 42.5 mln rupees in Apr-Jun from LARSEN & TOUBRO.

* FERRO ALLOYS CORP: Has declared a lock out at its chrome plant.

* FORBES & CO: Arm Forbes Bumi Armada Offshore has got a 7-year contract from OIL & NATURAL GAS CORP for a floating-production-storage and off-loading vessel.

* INDIAN BANK: To raise $1 bln via medium term notes by mid-July. (BL)

The bank will file a draft red herring prospectus for its proposed follow-on public offer in a month. (BS)

* ITC: Has acquired 26% stake in a joint venture with Espirit Hotels to build a luxury hotel in Hyderabad; stake valued at 450 mln rupees. (ET)

Ramky Group plans to set up a $100 mln integrated waste management complex in technical tie-up with ITC. (var)

* LANCO INFRATECH: Promoter L. Madhusudhan Rao has increased his stake in the company to 4.7749% from 4.5500% earlier.

* MEDIAONE GLOBAL ENTERTAINMENT: Plans to raise up to 1 bln rupees through a follow on public offer of shares.

* NEYVELI LIGNITE: The finance ministry has revived talks with the coal ministry to divest stake in the company. (ToI)

* OIL AND NATURAL GAS CORP: Company board to file a red herring prospectus with the Securities and Exchange Board of India for its 115 bln rupees follow-on public offer. The FPO issue will hit the markets in three weeks from filing the RHP. (BS)

* ORACLE FINANCIAL SERVICES: Former officials have bid for the company's services business; deal in final stages of evaluation. (ET)

* SHRIRAM TRANSPORT: Orix Corp of Japan is in talks with US-based TPG Capital to buy the latter's 20% stake in Shriram Transport Finance Co, for close to 30 bln rupees. (Mint)

* VIDEOCON INDUSTRIES: Has received approval from its shareholders to raise up to 10 bln rupees through equity.

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.

June' 26: Sensex once again above 18000

Last time when I had written the article Nifty was trading well above the 5350 levels. In the Intaweek Nifty made a low below the 5200 levels and once again we are back to 5500 levels. Isn’t that too fast recovery, when nothing has been changed in the fundamentals of India. Its just the games which FII play. Till Wednes FII remained net seller in the Indian Equity market while DII kept on buying, since Thursday FII have changed their mood and are net Buyers and the markets have also changed its way.

It was the repeat of the usual Black Monday’s this week but the reason of something different. This time the Indian government is in talks with the Mauritius to sign the tax treaty. Fears were there that the double taxation treaty between the India and Mauritius may be renegotiated after which FIIs would need to pay capital gains tax on their equity investments in India. Approx 40% of the FII holdings in India companies, estimated at about $280bn, is believed to have been routed through Mauritius. News sparked panic selling in the Indian markets, Sensex in its intraday trading session collapsed more that 500 points but close nearly 360 points down.

Major Indices, Nifty & Sensex surged nearly 2% each. IT index jumped 2.7%, Cap Goods surged 1.5%. But Realty Sector continued its downtrend and closed down more that 4.5%. In the Frontline stocks Hero Honda gained the most 7.7%, Hdfc closed up by 4.5% on week on week basis. ACC 5%, M&M 4.2% & Bajaj Auto 3.7% Wipro 3.5%. Ril Infra lost 8%, Cairn 5.1%. DLF lost 3.4%, while Dr Reddy closed down 3.8%. Maruti is trading after making its 52 week low closed down 4.1%.

One, crude oil has gone down; two, a bailout for Greece seems to be happening, and three, there is a strong covering of short positions made when news of tax treaty with Mauritius had come. Concerns over Greece's debt crisis abated as on Thursday the International Monetary Fund and the European Union agreed to support the nation if it

implements further austerity measures such as tax hikes and spending cuts.

Rumours of the Selling of the Pledge shares continued in the market. Orchid was one of the script that has seen one of its very volatile trading week. In the Intra week trading session the script made a high and low of 265-215. Selling in Skumar, Shree Ashtvinayak, GTL infra, Havells, Alstom, Unitech continued.

This might have surely been proved to be bad for the Indian markets, But the readers of my blog and Informed investors would have definitely gained a lot. On 14th June and the last article dated 18^th June 2011 in Informed Investor, technical chart of the Nifty was given with a price target ot 5177 in Nifty from the break of 5350 levels. Nifty made a low of 5196 and bounced back. But the bottom line is that the Nifty made a low of below 5200 levels. We could clearly see that the Head and Shoulder (H&S) Pattern was made in the Nifty daily chart pattern.

But the Nifty have bounce back sharply till the end of the week. Nifty made a high of-----5478 & Low of 5196 for the week. The recovery had been too fast. No boubt the H&S patter formation was complete but it did not continue. Nifty bounced back from its over sold zone. Nifty once again took good support at 5200 levels and bounced back. I am still cautious on the recovery of the market. Nifty still have a big resistance levels at 5475-5560 levels.

If we take a new retracement levels from the high of 5944 made on 06^th Apr 2011 and a low of 5196 made on 20^th June 2011 (Green colour). Nifty crossed it 23.60% retracement levels 5375 and closed at its 38.2% levels.

Last weeks call

Sell Acc below 959 SL 963. Made a low of 918.

Sell Andhra bank below 132.80 SL 133.80. Made a low of 127.

Buy Bharti Airtel close above 385 SL 380.Made a high of 398.

Sell Cipla below 328 SL 331. Made a low of 310.

Buy Hind Petro above 390.

Wednesday, Jun 22

Stocks To Watch: Idea Cellular, ONGC, TCS, Infosys, NMDC, steel

Wednesday, Jun 22 - Morning brief for the stock market:

BIG PICTURE

* IMD cuts monsoon forecast to 95% of long period average from 98% .

TOP EVENTS TODAY

* Annual General Meet of: Andhra Bank, Dhanlaxmi Bank, Navin Fluorine International, Ramkrishna Forgings.

* Board Meetings of:

+ Tulsyan NEC to consider dividend.

INDICATORS (previous session)

* NSE provisional net buy/(sale) in bln rupees, Jun 21: FII (5.63), DII 4.30

* Institutional net buy/(sale) in bln rupees, Jun 20: FIIs (4.27), MF 3.38

* FII NSE futures net buy/(sale) in bln rupee, Jun 21: index 4.92, shr 2.37

* Sensex 17560.30, up 53.67 points; Nifty 5275.85, up 17.95 points

* Crude: $93.78/bbl; Rupee: 44.84/$1; Gold: $1,547.20/ounce; 10-yr yld: 8.2256%

OUTLOOK

* Local share indices are likely to jump in early session today as fear that Greece may default on its debt may be allayed after its government won a no-confidence vote in the Parliament on Tuesday.

GLOBAL STOCK MARKETS

* US: Shares rallied for the fourth session to end up on Tuesday amid rising hope that Greece will be able to avoid a default on its debt payment in July.

* ASIA: Asian markets soared today as Greece's Prime Minister George Papandreou's government won a no-confidence vote in the Parliament on Tuesday, boosting expectation that the nation will not default on its sovereign debt.

IPO WATCH:

* Tata Autocomp plans to raise 7.5 bln-11.0 bln rupees through an initial public offering in the next two-three weeks. (var)

SECTOR NEWS

* AUTOMOBILES: Renault plans to launch a new hatchback in 2012 that will compete with MARUTI SUZUKI INDIA's Swift. (var)

* AVIATION: Low cost airline IndiGo is close to signing a final agreement with Airbus for purchase of 180 aircrafts. (ET)

* BANKING: Finance minister will meet chiefs of public sector banks on Jul 8 to take stock of the current environment of high lending rates. (BS)

* CHEMICALS: Aditya Birla Group completes acquisition of Columbian Chemicals.

* CLIMATE: India Meteorological Department cuts projection on southwest monsoon rains to 95% of long-period average from 98% earlier.

* COAL: A Group of Ministers on coal has decided to set up a committee headed by Planning Commission member Chaturvedi to look into the no-go area imbroglio. (BS)

* CORPORATE: Tata and Infosys have emerged top two brands in India in a new index. (ET)

SEBI will take a final call on the new takeover code after taking into account the government's view. (ET)

Ministry of corporate affairs has formed a core committee to look at the issue of regulatory overlap in the new Competition Act. (FE)

* ECONOMY: Standard Chartered economist Anubhuti Sahay says weak monsoon rains may erode rural demand, fan inflation.

* EXCHANGES: Forwards Market Commission proposes to come out with uniform transaction charges across exchanges. (BS)

* FINANCE: Government is mulling various options to reduce hedging costs under the proposed Infrastructure Debt Fund in case the money is raised via dollar-denominated bonds.

* GOVERNMENT: West Bengal Chief Minister Mamata Banerjee says she is opposed to forcible land acquisition.

* INDUSTRY: West Bengal Chief Minister and head of All India Trinamool Congress Mamata Banerjee said she was against any kind of forcible land acquisition.

* INFORMATION TECHNOLOGY: TATA CONSULTANCY SERVICES, INFOSYS AND HCL TECHNOLOGIES are in race to acquire banking product software business of UK's Misys. (ET)

* INSURANCE: Companies which have completed 10 years of operations and have strong financials will be allowed to tap capital markets. (var)

* MARKET: Life Insurance Corporation of India has decided to chop off 57 illiquid scrips from its portfolio. (FE)

* MUTUAL FUNDS: SEBI may make it mandatory for asset management companies to disclose the track record of their fund managers while promoting equity-oriented schemes. (Mint)

* PORTS: The regulator of India's major ports has rejected request of port terminals to increase rates and even asked for up to 35% cuts in some cases. (Mint)

* STEEL: PSU Steel makers have agreed to monthly price revision of coal by BHP Biliton for at least 50% of the buy. (HBL)

* TELECOM: Bombay High Court has allowed telecom companies to pay customs and excise duties on imports via credit scrips for an amount up to 10% of exports. (ET)

STOCKS

* AUTOLINE INDUSTRIES: Neither the company nor its promoters are in stake sale talks with the Ruia Group.

* AXIS BANK: Opens representative office in Abu Dhabi.

* BAJAJ AUTO: Partner in small car project Renault has said it may go solo on the project. (ToI)

* BHARTI AIRTEL: Tower subsidiary Bharti Infratel has begun exploratory talks with merchant banks for advice on a possible public listing.

* GAIL INDIA: Is looking to expand rapidly in city gas distribution and related pipeline infrastructure business. (BS)

* GREAT OFFSHORE: The company's board has approved a contract to Pinky Shipyard for building three support vessels, which are to be delivered by 2013.

* HDFC BANK: May buy 1% stake in Bombay Stock Exchange at 375 rupees a share through the preferential allotment route. (ET)

* HINDUSTAN PETROLEUM CORP: Over the weekend, leakage in the company's pipeline carrying diesel from a ship at Mundra port in Gujarat resulted in a "minor" oil spill, which was brought under control "soon".

* IDEA CELLULAR: CBI has closed its investigations into the company after it found nothing wrong in the way it was allocated spectrum. (ET)

* INDIAN OIL CORP: Plans to raise $500 mln from overseas markets for its expansion.

* ING VYSYA BANK: Raises Base Rate by 25 basis points to 9.70% with immediate effect.

* KINGFISHER AIRLINES: Plans to add 72 aircraft to its fleet by 2015-16 (Apr-Mar), up from 67 planned earlier.

* MYSORE PETRO CHEMICALS: Shuts Raichur catalyst unit for maintenance for three weeks.

* NMDC: May acquire controlling stake in a coking coal mine from a Russian group. (ET)

* OIL AND NATURAL GAS CORP: Is in talks with BG Group and Italy's Eni to sell stake in its block in Krishna-Godavari basin. (Reuters)

* RASHTRIYA CHEMICALS AND FERTILISERS: Upcoming presidential elections in Ghana may upset plans to set up a $1 bln urea factory in the country. (Mint)

* RELIANCE INDUSTRIES: Differs with partner Niko Resources on potential of satellite discoveries around its KG-D6 block. (FC)

* STATE BANK OF INDIA: Cuts 2011-12 (Apr-Mar) credit growth estimate to 16-19% from 19-20% earlier. Witnessing some slowdown in corporate lending.

Head expects the bank's CAMELS--capital, adequacy, asset quality, management quality, earnings, liquidity and sensitivity--rating issued by the Reserve Bank of India to improve in 2010-11 from the previous financial year.

* TATA MOTORS: Promoter Tata Sons revokes 6 mln pledged shares of the company.

The company has moved Calcutta High Court challenging the legality of the Singur land return act. (ToI)

* VIJAY TEXTILES: To mull sale of stake in the company's Hyderabad information technology park project on Jun 29.

* WOCKHARDT: Launches three new products in three weeks in the US.

Tuesday, Jun 21:

stocks To Watch: HCL Tech, L&T, Jyothy Lab, SBI, Oracle Financial

Morning brief for the stock market:

BIG PICTURE

* Cyprus tax practitioners weigh options as India-Mauritius tax treaty faces heat (ET)

* Greece asked to OK strict austerity measures for further 12 bln euro loans (var)

TOP EVENTS TODAY

* Annual General Meet of: De Nora India, Goodyear India, Magma Fincorp

* Board Meetings of:

+ Surana Ind to mull funding options for co's expansion projects

+ Great Offshore to consider dividend

INDICATORS (previous session)

* NSE provisional net buy/(sale) in bln rupees, Jun 20: FII (5.13), DII 8.63

* Institutional net buy/(sale) in bln rupees, Jun 17: FIIs (3.63), MF 0.28

* FII NSE futures net buy/(sale) in bln rupee, Jun 20: index 7.89, shr 1.39

* Sensex 17506.63, down 363.90 points; Nifty 5257.90, down 108.50 points

* Crude: $93.26/bbl; Rupee: 45.00/$1; Gold: $1,540/ounce; 10-yr yld: 8.1926%

OUTLOOK

GLOBAL STOCK MARKETS

* US: Bargain buying amid easing concerns over the Greek debt crisis helped US share indices end on a positive note on Monday.

* ASIA: Asian markets were up as worries over Greece's debt crisis eased after Eurozone Chairman Jean-Clause Juncker assured private investors will be part of any second rescue package for Greece, though he was unsure if they would be "enthusiastic".

SECTOR NEWS

* BANKING: All India Bank Employees Association has called a nationwide strikeon Jul 7 to protest the government's banking sector reforms. RBI is likely to allow domestic banks to participate in the proposed infrastructure debt funds through their mutual fund arms. (FE)

* CONGLOEMRATES: Tata Sons raises 2 bln rupees via 3-year bonds.

* ECONOMY: Government of India confirms May consumer price index for farm workers inflation at 9.63% as against 9.11% in April.

* INSURANCE: United India Insurance Co not in favour of allowing banks to sell policies of multiple insurers.

* LEGISLATION: Govt claims broad consensus on Lokpal bill, to meet Anna team again today.

* METALS: Global aluminium production 2.17 mln tn in May, up 110,000 tn from the same period last year, and 60,000 tn higher compared with April.

* OIL & GAS: Oil Minister S. Jaipal Reddy seeks 8 weeks to respond to the Comptroller and Auditor General of India's draft report that alleges his ministry bent rules to favour some private companies.

Government is open to revisit its profit sharing formula for awarding hydrocarbon blocks. (var)

* PRIVATE EQUITY: HSBC Principal Investments, a private equity arm of HSBC Group, has bought minority stake in city-based Avitel Post Studioz Ltd, for $60 mln.

* RETAIL: Government is likely to permit foreign direct investment in multi-brand retail only in the six metro cities. (BS)

* TEA: Major companies have raised tea prices by 5-7 rupees a kg to offset rising input costs. (FE)

* TELECOM: Revenue market share of BHARTI AIRTEL, RELIANCE COMMUNICATIONS and Bharat Sanchar Nigam have declined over 1% in 2010-11 (Apr-Mar). (ET)

A department of telecommunications panel has accepted most of TRAI's recommendations on mergers and acquisitions rules. (BS)

STOCKS

* AXIS BANK: In pact with Life Insurance Corp of India to launch LIC credit cards.

* BIRLA CORP: Company law board has rapped the company for entering capital markets business without clear approval from shareholders. (FE

* BOMBAY DYEING AND MANUFACTURING CO: Plans a turnaround strategy by reducing dependence on real estate and cut debt by half in 2-3 years. (Mint)

* DS KULKARNI DEVELOPERS: Maharashtra government notifies company's Pune project.

* EDUCOMP SOLUTIONS: Has sought shareholders' approval to raise up to $250 mln and restructure $78.50 mln foreign currency convertible bonds.

* EMAMI: Is considering entry into packaged foods and premium toiletries. (DNA)

* GAIL INDIA: The company and Uttarakhand Jal Vidyut Nigam plan to set up two 350-500 MW gas-based power plants in the state.

* GAYATRI PROJECTS: Is planning to sell stake in a 22-bln-rupee highway project in Andhra Pradesh to Megha Engineering. (DNA)

* GODREJ CONSUMER PRODUCTS: Expects to add revenue of over 15 bln rupees in 3-5 years as it leverages synergies from integration of Godrej-Sara Lee. (Mint)

* HINDUSTAN ZINC: Cuts zinc price by 2,300 rupees per tn to 115,600 rupees; cuts lead price by 1,100 rupees per tn to 129,700 rupees.

* HCL TECHNOLOGIES: Signs a five-year contract with Xerox Corp to provide product engineering services.

* INDIABULLS REAL ESTATE: Has been served notice to stop work on its commercial and residential project at Elphinstone Mills in Lower Parel Maharashtra Pollution Control Board. (HT)

* INDIAN OIL CORP: Has held back advance tax payment for Apr-Jun on delay in fuel price revision and uncertainty on subsidy sharing. (BS)

* JYOTHY LABORATORIES: Private equity Apax Partners is close to a deal to buy stake in the company. Broad agreement on price of 330 rupees per share. (ToI)

* LARSEN & TOUBRO: Private equity Capital International is leading a race to buy below 5% stake in arm L&T Finance for around 4 bln rupees. (ToI)

* MAHINDRA & MAHINDRA: Is planning to set up a new plant, probably in Punjab, to make farm equipments. (HBL)

* NAGARJUNA FERTILISERS AND CHEMICALS: Promoters will up their stake by 13% through circuitous route for 300 mln rupees instead of current valuation of 1.75 bln rupees. (ET)

* NTPC: Trading arm has been given the mandate to carry out cross border electricity trade between India and Bangladesh. (HBL)

* NIIT TECHNOLOGIES: To host data centre for Delhi airport cargo complex.

* ODYSSEY CORP: Has entered into film distribution business by acquiring the exclusive theatrical rights of three films.

* OIL AND NATURAL GAS CORP: Plans to invest $7.7 bln to develop its gas fields in KG basin, is scouting for a partner. (ET)

Government has appointed three independent directors on the company's board clearing way for its FPO. (PTI)

*ORACLE FINANCIAL SERVICES SOFTWARE: Cognizant Technology and Capegemini are among bidders in talk to buy financial services business unit of the company. (ET)

* POWER FINANCE CORP: To pay 1.50 rupees per share final dividend.

* SAKSOFT: Has signed a 50:50 joint venture with SOFGEN India called Sofgen Testing Services to offer software testing services in the T-24 core banking space.

* SIEMENS: Mobility unit gets 1.65-bln-rupee order from Delhi Cargo Service Center to set up cargo handling equipment at Delhi airport.

* STANDARD INDUSTRIES: Peninsula Mega City will develop a 62.25 acre land of the company in Navi Mumbai and pay 1.13 bln rupees over five years.

* STATE BANK OF INDIA: 200-bln-rupee rights issue is likely in Oct-Dec.

Head says bank officials will study liquidity before acting on rates.

Looking to increase its focus on improving asset quality, will have one deputy-managing director focussing on non-performing asset management.