What India's Stocks Market Will Watch - Jul 7

[K.Karthik Raja]

What India's Stocks Market Will Watch - Jul 7
Monday, Jul 7 - Morning brief for the stock market:
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BIG PICTURE
* Left sets today as deadline for govt's response on India-US nuke
deal. (NW18)
* RBI governor says regulators need more power for crisis control.
(ET, Sat)
* Direct tax collections jump 38.6% in Apr-Jun to 573.7 bln rupees.
(Var, Sat)
.
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TOP EVENTS TODAY
* Annual general meetings of Lok Housing, Punjab Tractors, India
Infoline, and
Educomp Solutions
* Board meetings of Chemfab Alkalis, Euro Ceramics, Himalya
International,
Geodesic Information Systems, Indowind Energy, and Sunil Hitech
.
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INDICATORS (previous session)
* Institutional net buy/(sale) in mln rupees, Jul 3: FIIs (7,025), MFs
2,416.
* Sensex 13454, up 359.89 points; Nifty 4016 up 90.25 points
* Other markets: Crude $143.70/bbl; rupee:43.50/$1;gold $926.20/ounce;
10-yr yield:9.15%.
.
OUTLOOK
* Market: Indices seen opening down today as most Asian markets
trading weak.
Trade is likely to remain choppy eyeing developments on political
front, with
Left parties setting today as deadline for response from the United
Progressive
Alliance on queries regarding the India-US nuclear deal.
.
* Auto: Down this week on high inflation, rising rates.
* Bank: Down this week as more monetary tightening seen.
* Cement: Seen choppy this week; India Cements may outperform.
* IT: Up this week ahead of Apr-Jun earnings.
* Oil: Down this week as crude prices show no respite.
* Pharma: To take cues from broad market this week.
* Steel: Down this week as government steps in to rein in prices.
.
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GLOBAL STOCK MARKETS
* Key Asian indices were mixed in choppy trade today, with shares of
exporters
taking a hit on worries a slowdown in global economies would hurt
demand for
products.
.
.
SECTOR NEWS
AVIATION: UB Group Chairman Vijay Mallya is engaged in talks with two
major
shareholders of SpiceJet to buy the budget carrier in an all-cash
deal. (ET,
Sat)
SpiceJet may spurn Mallya's bid by accepting the proposal of
American
turn around investor Wilbur Ross Junior to bail the budget airline out
of the
current
crisis. (DNA Money, Sat)
Airlines cancel 120 daily flights; negative growth likely in June.
(BL, Sat)
Multi Commodity Exchange to launch futures contract in aviation
turbine fuel
today. (var)
.
CAPITAL MARKET: National Stock Exchange has asked its members to
"satisfactorily
identify" its clients and make an in-person verification before
registering
them. (NW18)
SEBI finds 304 shares, MFs illiquid based on June trade data.
(NW18)
Commodity Transaction Tax may soon be notified to curb prices.
(FE)
.
FAST MOVING CONSUMER GOODS: Companies are mulling another round of
price hike.
(FE, Sat)
UB Group to invest 10 bln rupees on brewing capacity expansion by
20% in
next three years. (var)
.
FOREIGN DIRECT INVESTMENT: Government has cleared 28 foreign direct
investment
proposals worth 13.27 bln rupees. (NW18)
.
HOTELS: Looming fears of an economic slowdown and budgetary
constraints are
driving corporate houses to bargain hard with hotel majors for lower
room
tariff. (NW18)
.
OIL: Private oil companies may have to pay windfall profit tax to
share sector's
subsidy burden. (ET)
.
POWER: Indonesia's proposed move to renegotiate coal contracts is
likely to
impact the future plans of Indian players like Reliance Power and Tata
Power.
(ET, Sat)
.
PHARMA: RANBAXY LABORATORIES, CIPLA, and others to scrap 60 drug
combinations.
(BS)
.
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STOCKS
* BALLARPUR INDUSTRIES: Securities and Exchange Board of India has
passed a
consent order on applications by 33 entities in the matter of
irregularities
in the trading of the company's shares. (NW18)
.
* BIOCON: Is planning to hive off its research & development division
into a new
company. (ET)
.
* BIRLA PRECISION: Raises foreign institutional investor limit to 74%
and
approves fund raising up to 1.5 bln rupees via overseas issue. (NW18)
.
* DABUR INDIA: To focus on over-the-counter products. (ET)
.
* DALMIA CEMENT: June sales 295,000 tn, up 5% on yr; production falls.
(NW18)
.
* ERA INFRA ENGINEERING: Has approved 5-for-1 stock split. (NW18)
.
* ESSAR OIL: In race to acquire 50% stake in Kenya Petroleum
Refineries. (ET)
.
* HINDUSTAN UNILEVER: Has implemented ploughshare mixing technology in
all
soap manufacturing plants to cut costs by 30%. (BS)
.
* IDFC: Set to build pan-India logistics chain, scouting for partners.
(ET)
.
* ITC: Has said higher tax rates, rise in commodity prices, and
spiralling
rentals are hurting different business segments of the tobacco major.
(NW18)
.
* LARSEN & TOUBRO: To spin off four entities in two years. (BS)
.
* LIC HOUSING FINANCE: Genuine demand for houses will continue as
there is large
demand supply gap. (BL, Sat)
.
* PYRAMID SAIMIRA: US-based Regal Entertainment Group and private
equity funds
in talks with company promoters for buying 14% stake. (ET)
.
* RANBAXY LABORATORIES: To start clinical trials of anti-inflammatory
molecule
by the end of the year. (ET, Sat)
Two senior executives, European operations head and global pharma
business
head, quit. (ET)
.
* RELIANCE COMMUNICATIONS: Anil Dhirubhai Ambani group has urged the
market
regulator SEBI to probe the steep fall in the telecom company's share
price.
(Var, Sat)
.
* RELIANCE INDUSTRIES: In talks to acquire downstream assets of
Chevron in
Africa. (ET)
.
* SHRENUJ AND CO: Reserve Bank of India has allowed foreign
institutional
investors to purchase 100% shares in the company under portfolio
investment
scheme. (NW18)
.
* SPICEJET: US-based distress fund may be willing to invest in the
company.
(BS)
.
* TATA MOTORS: Has hiked stake in its supplier Automobile Corp of Goa
by nearly
3% to 40.6%. (ET)
.
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