What India's Stocks Market Will Watch - Mar 11

[K.Karthik Raja]

What India's Stocks Market Will Watch - Mar 11
Tuesday, Mar 11 - Morning brief for the stock market:

BIG PICTURE
* Chidambaram says to take measures to moderate inflows if necessary
(NW18)
* Govt mulls converting postal insurance corpus to dated securities
(NW18)
* RBI makes transactions via ATMs free of all charges from Apr 1, 2009
(NW18)
.
.
TOP EVENTS TODAY
* Board meetings of:
+ Advani Hotels & Resorts India to consider interim dividend and
issue of
securities to promoters and others.
+ Allied Digital Services to consider funds raising options via
issue of
shares, warrants, or any instrument.
+ Cinemax India to consider business expansion plan.
+ Goodyear India to consider dividend.
+ Jamna Auto Industries to consider allotment of equity shares under
scheme of amalgamation, and formation of subsidiary.
+ Indus Fila to consider proposal for acquisition/merger/
amalgamation
of Tulip Apparels Pvt Ltd.
+ Rain Commodities to consider allotment of equity shares to
promoter.
+ SRF to consider interim dividend.
.
.
INDICATORS (previous session)
* Institutional net buy/(sale) in mln rupees, Mar 7: FIIs 11,069, MFs
(515)
* Sensex 15923.72, down 51.80 points; Nifty 4800.40, up 28.80 points
* Other markets:Crude:$107.90/bbl;rupee:40.48;gold:$973.60/ounce;10-yr
yld:7.61%
.
.
OUTLOOK
* Indian shares are seen down as U.S. and Asian markets weak. A
pullback is
likely if Asian markets recover later.
.
.
GLOBAL STOCK MARKETS
* U.S. ended down for the third straight session Monday on worries
earnings
will be weaker than expected as recession creeps in and credit losses
widen.
Finance shares led the fall.
* Asian indices were mixed as Japanese shares trimmed losses. Markets
in the
region had opened weak on worries over more U.S. credit market losses
as
reports suggested Bear Stearns Cos may lack sufficient capital.
.
.
IPO WATCH
.
Gammon Infrastructure Projects Ltd's 16.55-mln-share initial public
offer was
subscribed 0.64 times at the end of the first day. It will close
Thursday.
(NW18)
.
Software maker Persistent Systems Ltd has deferred plans of a public
float
of shares due to adverse sentiments in the market. (NW18)
.
.
SECTOR NEWS
COMPANIES: Central Board of Direct Taxes says government may consider
reducing corporate tax rates in the Union Budget for 2009-10 (Apr-Mar)
if
compliance goes up "satisfactorily". (NW18)
.
ECONOMY: Government inked pact with Japan for a 70.7-bln-rupee loan,
taking the
total aid to India under the Official Development Assistance during
2006-07
(Apr-Mar) to 85.8 bln rupees, up 21.8% from a year ago. (NW18)
.
REGULATORY: Securities and Exchange Board of India may review its
policy in
respect of participatory notes on concerns over outflow of funds from
foreign
institutional investors since October. (NW18)
Reserve Bank of India says all payments above 10 mln rupees
between
primary dealers, banks, and non-bank finance companies will have to be
done
electronically. (NW18)
.
RETAIL: Mahindra Shubhlaabh Services is close to finalising a joint
venture
with international supply chain retailer for Cash 'N' Carry business
model.
(ET)
.
SUGAR: Government says Uttar Pradesh tops list of sugarcane producing
states
in outstanding cane arrears payable to growers at 11.06 bln rupees in
2006-07. (NW18)
.
TELECOM: Government earned a revenue of 28.4 bln rupees as spectrum
fee until
Jan 31, up 45.6% from a year ago, from mobile operators. (NW18)
.
.
STOCKS
* BAJAJ AUTO: Bajaj Auto Finance may spin off its two-wheeler
financing
business as a subsidiary of BAJAJ AUTO. (ET)
.
* C&C CONSTRUCTIONS: Has won two orders from Himachal Pradesh Road and
Infrastructure Development Corporation Ltd for 2.02 bln rupees. (NW18)
.
* CEAT: In pact with Ashford Infotech for development of its 6.92
acres of
Mumbai land for a consideration of 13 bln rupees. (NW18)
Company says tyre prices are likely to be raised 2-3% in April.
(NW18)
.
* CELEBRITY FASHIONS: Bangalore-based Fibre & Fabrics International to
buy
export unit of company. (ET)
.
* GITANJALI GEMS: Aims 5 bln rupees turnover in two years from
lifestyle arm
Gitanjali Lifestyle that will market lifestyle and luxury products
from
several companies. (NW18)
.
* INDIAN OIL CORP: Will incur a daily loss of 1.8 bln rupees on sale
of oil
products at subsidised rates. (NW18)
.
* LARSEN & TOUBRO: Is shifting its pricing plank to a 'cost plus'
model to
mitigate the impact of rising commodity prices. (NW18)
.
* MARUTI SUZUKI INDIA: Has tied up with Shriram City Union Finance Ltd
to
offer car finance in semi-urban and rural markets. (NW18)
.
* MASTEK: Acquires U.S.-based Systems Task Group for $29 mln. (BS)
.
* NATIONAL ALUMINIUM CO.: Government rules out divestment in the state-
owned
company and said it will soon become a navratna company. (NW18)
.
* OMAXE: Has said it has got clearance from Punjab Pollution Control
Board
for its 16.5-acre housing project in Derabbasi. (NW18)
.
* TATA STEEL: Brazilian miner Vale has settled a 65-66% higher
benchmark for
iron ore fines prices with Corus, a TATA STEEL subsidiary, for the
year
2008-09. (NW18)
.
* TRITON: To buy $260 mln worth U.K.-based information technology and
telecommunication services firm for about 4.8 bln rupees. (ET)
.
* TVS MOTORS: Relaunches 125 cc Flame motorcycle with single sparkplug
technology, months after it found itself in a patent dispute with
larger
rival BAJAJ AUTO. (NW18)
.
* VIDEOCON INDUSTRIES: To invest 60 bln rupees for rolling out GSM
services.
Plans to launch the venture in May. (BS).


K.Karthik Raja
Research Analyst.
www.kences1.blogspot.com