What India's Stocks Market Will Watch - Jun 27

[K.Karthik Raja]

What India's Stocks Market Will Watch - Jun 27
Friday, Jun 27 - Morning brief for the stock market:

BIG PICTURE
* Chidambaram says inflation to start easing in couple of months (CNN-
IBN)
* S&P sees India FY09 GDP growth slowing to 7.8% from 9.0% year ago
(NW18)
* Finance adviser says RBI can take more steps if needed (NW18)
* Trade minister says inflation at peak; expects moderation in 2
months (NW18)

TOP EVENTS TODAY
* Nifty company to detail earnings for the year ended March:
+ Unitech (Jan-Mar net seen at 4.84 bln rupees, up 35.57% on year)
* Earnings for the year ended March to be detailed by: Ganesh Housing,
Gujarat State Petronet, IFB Industries, Insecticides India, Indo Asian
Fusegear, Kernex Microsystems, KPR Mill, Omax Autos, Shri Shakti LPG,
Shetron, and Shree Ashtavinayak Cine Vision among others.
* Annual general meet of: Albright & Wilson Chemicals India, IBN18
Broadcast,
KEC International, Plethico Pharmaceuticals, Praj Industries, Thomas
Cook
India, and Zylog Systems among others.
* Wholesale Price Index inflation rate for the week to Jun 14 to be
detailed by
commerce and industry ministry. According to a NW18 poll, inflation
rate is
seen rising to 11.18% from 11.05% a week ago.

INDICATORS (previous session)
* Institutional net buy/(sale) in mln rupees, Jun 25: FIIs (1,036),
MFs 3,247.
* Sensex 14421.82, up 201.75 points; Nifty 4315.85, up 63.20 points.
* Other markets: Crude:$139.02/bbl; rupee:42.68;gold $914.50/ounce;10-
yr
yld:8.61%.
.
.
OUTLOOK
* Seen 2%-3% down on sharp fall in overseas markets; inflation data
eyed.
.
.
GLOBAL STOCKS MARKETS
* US shares tumbled 3% Thursday, as crude oil prices touched a new
record high
and Goldman Sachs recommended that investors should sell bank shares
on fears
of more write-downs related to the sub-prime mortgage market.
.
* Key Asian markets were sharply down today tracking the overnight
fall on
Wall Street amid concerns that high fuel prices would hurt economic
growth
and corporate profits.
.
.
SECTOR NEWS
.
ALUMINIUM: National Aluminium Co and the Tata group are all set to ink
a
joint venture agreement to set up a $3 bln aluminium smelter and power
plants
in South Africa. (FE)
.
BANKING: Indian Banks' Association is likely to nominate K.
Ramakrishnan,
chairman and managing director of Andhra Bank, as its chief executive
officer. (NW18)
.
INFORMATION TECH: Citigroup is believed to be restructuring its India
back-office operations valued at around $1 bln in a bid to cut down
costs and
also monetise some of these assets.
.
CHEMICALS: ICICI Ventures-owned RFCL is set to acquire the 3.5-bln-
rupee
Italian company, Carlo Erba SPA. (ET)
.
ECONOMY: Adviser to Finance Minister P. Chidambaram says Reserve Bank
of
India has the option to take more monetary steps, if needed, to curb
inflation.
(NW18)
.
ENERGY: Lanco group said it has plans to foray into wind energy with
an
initial investment of nearly 5 bln rupees. (BL)
.
EXCHANGES: Multi Commodity Exchange, which launched carbon credit
futures
recently, said it will not accept delivery of credits granted for
forestry
and HFC-23 projects because of disputes over validity of these
projects. (NW18)
Power Exchange India has opened its membership, and is likely to
start
operations within the next few months. (NW18)
.
FERTILISER: Union Cabinet has approved new potash and phosphate
pricing
policy. (NW18)
.
SHIPPING: Union Cabinet has approved Cruise Shipping Policy, which is
likely to attract global cruise operators and boost the domestic
leisure
tourism business. (NW18)
Private equity and venture capital investors have lined up funds
in
excess of $2 bln to invest in India's maritime infrastructure and
logistics.
(MINT)
.
STEEL: Government says steel companies can hike prices after July if
input
costs rise. (NW18)
Essar Steel Holdings has withdrawn its offer to buy outstanding
shares of
U.S. steel company Esmark, citing a "supposed understanding" between
Esmark
employees' union and Russian firm OAO Severstal. (NW18)
.
TRANSPORTATION: Government exempts rented vehicles used for carrying
goods
from service tax. (NW18)
.
.
STOCKS
* ACC: Swiss cement major Holcim is increasing its stake in ACC
through open
market purchases in an attempt to get majority ownership of the
company. (ET)
.
* BHARAT HEAVY ELECTRICALS: Has got a 5.06-bln-rupee order for
refurbishment
and upgradation of onshore drilling rigs and supply of new rig
equipment from
OIL AND NATURAL GAS CORP.
.
* BROADCAST INITIATIVES: HDIL Infra Projects makes open offer to
acquire
additional 20% stake in the company. (NW18)
.
* CANARA BANK: Plans to hike sub-BPLR loan rates to protect its net
interest margins from the impact of recent monetary policy measures.
(NW18)
.
* HINDUSTAN CONSTRUCTION: Axis Bank has picked up 2.5% stake in the
company's subsidiary, Lavasa Corp, for 2.5 bln rupees. (Var)
.
* HOTEL LEELAVENTURE: Plans to enter the mid-market segment by 2013.
(FE)
.
* ITD CEMENTATION: Has emerged as lowest bidder for the 20-bln-rupee
Kolkata
airport modernisation project. (NW18)
.
* HT MEDIA: Has acquired a stake in Mumbai-based real estate company
Sun
Mantri Realty Ltd. (BL)
.
* INDIAN OVERSEAS BANK: Has cut its loan growth target for the current
financial year to 17%-18% from 20%-22% projected earlier. (NW18)
.
* ITC: Has exited from the greeting cards business segment. (BL)
.
* INFOSYS TECHNOLOGIES: Plans to offer training programmes to clients
at its
campus in Mysore. (NW18)
.
* KESORAM INDUSTRIES: Expects to increase its tyre production capacity
to 734
tn per day by Dec 2009, against 252 tn per day at present. (NW18)
.
* LIC HOUSING FINANCE: Has floated a subsidiary to sell financial
products
including home loans, mutual funds and insurance policies. (BL)
.
* MAHARASHTRA SEAMLESS: Is in the race to acquire an Indonesian iron
ore
mining company for around 3 bln rupees. (ET)
.
* NATIONAL ALUMINIUM CO: Has resumed normal operations at its Angul
plant in
Orissa after a week-long production disruption due to coal shortage.
(NW18)
.
* OIL & NATURAL GAS CORP: Government has approved $437 mln investment
by ONGC
Videsh in exploratory blocks in Trinidad, Tobago and Brazil. (NW18)
.
* RELIGARE ENTERPRISES: Is proposing to raise 10.75 bln rupees through
a
combination of either Global Depositary Receipt or other modes of
overseas
issue. (BS)
.
* STATE BANK OF INDIA: Will hike benchmark prime lending rate by 50
bps to
12.75% from Friday. It may also hike deposit rates by 25 bps in the
3-5
year tenure. (NW18)
.
* SUN PHARMACEUTICAL INDUSTRIES: Its subsidiary has exercised the
option to
acquire all shares held by controlling shareholders of Israel-based
Taro
Pharmaceuticals Industries Ltd.
.
SUZLON ENERGY: Repower North China Co Ltd, a joint venture in which
Suzlon
Energy-controlled REpower Systems AG holds majority stake, wins order
to supply 24 wind turbines from a Chinese company. (NW18)
.
* TATA STEEL: Plans to restructure the group's operations in 12 months
to
unlock value. (NW18)
Consolidated 2007-98 (Apr-Mar) net profit at 123.5 bln rupees and
net
sales at 1.3 trln rupees. (NW18)
.
* UCO BANK: Has received Finance Minister P. Chidambaram's approval to
come
out with a follow-on public share issue. (NW18)
.
.