Id - sheth_jg@yahoo.com
We also advice you to be cautious as there will be settlement issue
As long as Nifty stay above the level 5330 its first support we remain highly bullish.On the upside Nifty faces a first resistance 5560 and crossover this can take to 5650
On the downside the first and immediate support Nifty finds between 5300 - 5325 break of which can create panic and we test the level of 5110 which is hard for the nifty to break in today trade.
Our view.. we are bullish as long as Nifty trades above 5330 for short term... for a target only for clients
US recession, if any is likely to hit chinese markets more than Indian markets as the later is more dependant on US exports. Two key events to ponder on in the coming week are
1. RBI meet on 29 Jan to decide on the credit policy. Though market players expect a 25 basis point cut, the stock market is unlikely to go down in case of no change. We expect a 25 basis point cut is on the cards due to the widening rate gap between India and US.
2. Fed meeting on 30 Jan will dictate the global financial market direction. Majority sections of the market are expecting a 25 basis point cut while the rest, a 50 basis point cut.
Stock in News
Gayatri Projects Ltd has set up a new holding company — Gayatri Infra Ventures Ltd (GIVL) by combining all its build-operate-transfer projects. The company is looking at diluting 50% equity in the new company. Discussions are ongoing with few Private Equity players to offload the stake at a good valuation. The stock closed at Rs 530 on Friday.
Dr Reddy's Laboratories Ltd posted an unexpected net loss for the December quarter as it wrote off $60 million of costs for its underperforming German unit (Beta Pharm)and saw revenues decline.The company hopes to perform better in the fiscal year beginning in April on improved sales of generics in India and Russia, and on a turnaround in its German business.
Growth in the next fiscal should be helped by the launch of a generic version of GlaxoSmithKline's Imitrex tablets in the United States in the December quarter. The company reported a consolidated net loss of 847 million rupees for its fiscal third quarter compared to a net profit of 1.88 billion a year ago.
Tata Group firm Voltas is looking at inorganic route to grow and plans to acquire new businesses in electro-mechanical and services space.The electro-mechanical projects and services business presently contributes around 55-60 per cent to the company’s total revenues.
News Snippets:
Reliance Industries is all set to enter into building an engineering, procurement and construction services (EPC).
Seven promoters of Reliance Energy including Anil Ambani have raised their stake in the company by 2.37% to 35.66%.
ONGC to hire a deepwater rig for 2.3 meter water depth.
Punjab National Bank plans to raise Rs15bn before end-March to fund business growth.(BL)
Kingfisher Airlines to buy around 40 Airbus planes in a deal worth about 5bn Euros
CERC has adopted the Rs2.33296 per unit tariff quoted by Reliance Power for the 4,000MW Krishnapatnam power project in AP.
The Chhattisgarh Govt has cancelled the contract awarded to CMEC and has awarded the same to BHEL for a 600MW thermal power plant in Korba district.
Dr Reddy’s and US based Mylan are among six generic-drug makers to be sued by Forest Labs and Merz Pharma to block sales of lower-cost copies of the Namenda Alzheimer’s treatment
Reliance Industries plans to invest in the petrochemical sector of Poland
SBI has received the US central bank’s approval to set up a new branch in New York.
Standard Chartered Bank is in talks with at least two leading Indian groups to sell its mutual fund business
Welspun Gujarat is in talks to acquire Remi Metals Gujarat
Nicholas Piramal India has signed a research agreement with France’s Pierre Fabre Laboratories
GMR Infrastructure has bagged a 300-MW hydropower projects in Nepal
HDFC Bank will set up over 250 new branches in next 2-3 months
GSPC Pipavav Power Co has signed a Rs20bn loan agreement with Rural Electrification Corporation
Jet Airways may invest US$8-10mn in its cargo airline by June 2008
ICICI Venture will partner with the Indian Express Group for its Express Towers property
Tata Motors is planning to provide loans for the Nano either through Tata Motors Finance (TMFL), a wholly owned subsidiary, or existing financing channels
ICICI Securities aims to raise up to US$1bn through a pre-IPO placement of shares
PTC plans US$1bn fund to acquire coal mines
ADAG firm signs US$100mn gaming deal with exclusive for three-years with Manchester United Football Club
Voltas is planning for acquisitions in its electro-mechanical projects and services business with a view to accelerate growth
Ultratech Cement has decided to acquire the 0.5mn ton Kankesanthurai cement plant in Jaffna that has been closed for more than 17 years.
Bhushan Steel Limited, which is setting up a 1.5mn ton steel plant at Meramundali in Dhenknal district, has closed down two of its four sponge iron making kilns following public agitation over pollution
Bharati Shipyard Limited is focusing on building rigs with its plans to construct Rs6bn greenfield shipyard at Usagaon in Maharashtra
IFCI has put on sale the Goa and Thane units of Vishawa Steels to recover debt
Aditya Birla Group is picking up 5% stake in Core Projects & Technologies, for Rs135m
Shipping Corp to partner PSUs in manufacturing ship engines
HCC plans to partner with European companies in the engineering and design space as part of its plans to transform itself from a construction company to an integrated infrastructure player
BPL is exploring fund raising options to start services in 22 circles in the next two years
Private equity firm Red Fort Capital plans to invest about Rs27bn in real estate by 2009, including acquisition of 2,500 acres of land in over 20 cities across the country
Lupin is planning to acquire a mid-sized branded formulation company in the US
Philip Morris International is in talks with Godfrey Philips India(GPI) to manufacture and market marquee cigarette brand Marlboro through GPI’s facility
Tata group plans to buy a stake in a high-tech unit of Germany’s Deutsche Telekom
GMR Infrastructure will bid for the modernization of Prague airport in Czech.(ET)
Jagson Airlines will start operations as a scheduled regional carrier in about three months
HCL Technologies has signed a MoU with four colleges in Bangalore, as part of its Campus to Corporate career development programme to develop the next generation of corporate community
Alembic to foray into US and European markets
NY based hedge fund BlackRock Inc has acquired the 40% stake held by Merrill Lynch in mutual fund DSP Merrill Lynch Fund Managers
Dutch brewer Heineken is set to buy UK-based Scottish & Newcastle’s (S&N) 37.49% stake in Vijay Mallya’s United Breweries.
Essar Steel to build a jetty at Hazira as its existing port facilities are unable to handle expansion pressure.
Volvo is taking a plunge into the used-truck market, similar to its competitors Tata Motors and Ashok Leyland.
Cipla to consider launching generic Tenofovir Disoproxil Fumarate, an HIV/AIDS drug, if Gilead Sciences does not challenge the decision to overturn its patent on the drug.
JSW group is close to roping in foreign partners for its Rs20bn plate mill project and Rs16bn shipyard at Ratnagiri in Maharashtra.
JSW group is planning to build a deep sea port in West Bengal.
Economic News
Gross tax revenue collections are likely to surpass the Rs6,000bn mark in 2007-08.
The government will discuss the 5,000-hectare restriction on building multi-product SEZs at the eGoM meeting, scheduled for Feb 4.
The proposed fourth commodity exchange, planned by Indiabulls and MMTC, may start functioning by November.
Sugar export may increase up to 3mn tons in 2007-08, according to National Federation of Cooperative Sugar.
RBI has asked NBFCs to obtain its prior approval for setting up subsidiaries, joint ventures and representative offices abroad.
Insurance companies will be allowed to invest in bonds floated by developers of SEZs, with IRDA giving its nod to broaden the definition of infrastructure.
The Government’s draft on gas allocation policy will be ready in the next couple of weeks.
21 oil and gas operators including BP, ENI, BG, Cairn, RIL and ONGC have decided to form a joint pool of scarce equipment and services to save cost.