What India's Stocks Market Will Watch - Jun 3

[K.Karthik Raja]

What India's Stocks Market Will Watch - Jun 3
Tuesday, Jun 3 - Morning brief for the stock market:
.
BIG PICTURE
* PM says cannot subsidise fuel prices endlessly; hints at hike soon
(NW18)
* Oil ministry aide says decision on fuel price hike unlikely before
Wed (NW18)
* Left constituent RSP withdraws from UPA-Left co-ordination panel
(NW18)
.
.
TOP EVENTS TODAY
* Earnings for the quarter and year ended March to be detailed by:
Bhoruka
Aluminium, DLF, GMR Industries, Engineers India, Marathon Nextgen
Realty.
* Annual General Meetings of: ABB, Spice Communications.
.
.
INDICATORS (previous session)
* Institutional net buy/(sale) in mln rupees, May 30: FIIs 2,546.
* Sensex 16063.18, down 352.39 points; Nifty 4739.60, down 130.50
points.
* Other markets: Crude:$127.76/bbl; rupee:42.40/$1; gold:$890.30/
ounce;
10-yr yield:8.09%.
.
.
OUTLOOK
* Seen down tracking overseas markets and amid political uncertainty.
.
.
GLOBAL STOCK MARKETS
* US shares ended down Monday as financial shares dropped after S&P
cut its debt
rating on Morgan Stanley, Merrill Lynch & Co, and Lehman Brothers
Holdings.
.
* Asian indices declined as bank shares dropped amid concerns over the
health
of global financial markets. Japanese exporters like Toyota Motor Corp
also
declined as yen strengthened against dollar.
.
.
IPO WATCH
* Chennai-based Bafna Pharmaceuticals' 6.4-mln-share fixed price
initial public
offer at 40 rupees per share--having a face value of 10 rupees--was
subscribed 4.96 times. (NW18)
.
.
SECTOR NEWS
AUTO: Honda Siel Cars India sold 3,944 cars in May compared with 4,811
units in
the same month last year, a fall of 18% on year. (NW18)
.
AVIATION: Civil Aviation Minister Praful Patel will meet Prime
Minister Manmohan
Singh and Finance Minister P. Chidambaram in a week to seek relief
package for
airlines hit by high aviation turbine fuel prices. (NW18)
.
BEVERAGES: Cafe Coffee Day, a division of Amalgamated Bean Coffee
Trading Co,
hiked coffee prices 8% because of rising input costs. (NW18)
.
DIRECT-TO-HOME: Tata Sky cuts subscription rates; offers bouquet of 90
channels
for 200 rupees a month, against 250 rupees a month earlier. (ET)
.
INSURANCE: Dabur Group plans to foray into general insurance by
setting up a
74:26 joint venture with US' Liberty Mutual Group. (NW18)
.
REGULATORY: Reserve Bank of India has proposed to increase capital
adequacy
ratio for non-deposit taking non-banking financial companies to 12%
with
immediate effect and further to 15% from Apr 1, 2009. (NW18)
.
REAL ESTATE: Maharashtra government hikes floor space index to 4 for
housing
clusters; floor space index for emerging townships near cities likely
to rise
to 1% from 0.5%. (ET)
.
RETAIL: India has slipped to second position among the most attractive
emerging
markets for retail investment, according to a study. (NW18)
Future Group boycotts Cadbury India for giving better deals to
international
retailers who may have larger stakes in global markets. (ET)
.
TAXATION: India has signed a double taxation avoidance treaty with
Luxembourg. (NW18)
.
TELECOM: Vodafone is seeking control of Vodacom, South Africa's
largest mobile
operator, by making an informal offer for stake-owned by Telkom. (BS)
.
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STOCKS
* AKSH OPTIFIBRE: Has signed a pact with Bharat Sanchar Nigam for
providing IPTV
services in 20 cities in India on broadband network of BSNL. (NW18)
.
* AMBUJA CEMENTS: Reported a 1% year-on-year fall in cement sales at
1.51 mln
tn for May; output also declined 1% to 1.49 mln tn. (NW18)
.
* BHARTI AIRTEL: In exclusive three-year arrangement with US' VeriSign
to
jointly develop specific security solutions for Indian companies. (ET)
.
* DECCAN AVIATION: A part of Kingfisher Airlines, will hike fuel
surcharge by
300-550 rupees effective today. Kingfisher Airlines will also hike
fuel
surcharge by similar amount with effect today. (NW18)
.
* ESSAR OIL: Essar Group's plan to buy 50% stake in Kenya Petroleum
Refineries
hit roadblock as Kenyan government, which holds remaining stake, is
not clearing
the deal due to energy security concerns. (Mint)
.
* GAIL: Newly registered 100% subsidiary GAIL Gas will take up city
gas
distribution projects in 17 cities in the first phase. (NW18)
.
* GRASIM and ULTRATECH CEMENT: Cumulatively report May cement sales of
2.66 mln
tn, up 0.8% from a year ago. May output rose 2.5% to 2.70 mln rupees.
(NW18)
.
* JET AIRWAYS: Hikes fuel surcharge by 550 rupees to 2,900 rupees a
ticket for
flights over 750 km. (NW18)
.
* JINDAL STEEL: Plans 50-bln-rupee thermal power plant in Orissa. (BS)
.
* RALLIS INDIA: To re-enter household pesticides business. (ToI)
.
* RIL: Likely to hike price of its benchmark 125 denier partially-
oriented
yarn by 2-3 rupees per 1 kg. (NW18)
.
* RELIANCE INFRASTRUCTURE: Supreme Court says TATA POWER cannot take
coercive
steps to recover 560-mln-rupee energy charges that are to be paid by
Monday.
(Var)
.
* SUJANA METAL: Close to acquiring sponge iron and billet making
units. (NW18)
.
* SANGHVI MOVERS: Plans capital expenditure of 2.5 bln rupees each in
2008-09
(Apr-Mar), and 2009-10. (NW18)
.
* SATYAM COMPUTER: Online and mobile payments firm Upaid Systems has
claimed
damages in excess of $1 bln (42 bln rupees) in lawsuit against
company. (NW18)
.
* SPANCO: Hived-off unit Spanco BPO on a lookout for 1-bln-rupee
knowledge
process outsourcing unit buy. (DNA)
.
* TATA MOTORS: Sold 46,339 vehicles (including exports) in May, up 9%
from a
year ago. (NW18)
Company says acquisition of Jaguar and Land Rover from Ford Motor
Co
complete; David Smith to continue as chief executive officer of JLR.
(ET)
.
* VIDEOCON INDUSTRIES: Arm Datacom to invite bids next week to roll
out 70 mln
global system for mobile communications lines; to invest 120 bln
rupees in next
four years. (Var)
.
* VIPUL: To raise around $150 mln (around 6.3 bln rupees) via private
equity
to fund various projects. (NW18)
.
* ZANDU PHARMACEUTICAL: EMAMI makes open offer to buy up to 20%
additional
equity stake at 7,315 a share. (