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Indian Markets are likely to witness another dull day after a lacklustre Monday and Tuesday, though volatility is not ruled out. Midcaps are likely to outshine largecaps though broad based rallies cannot be expected given the macro economic scenarion. Expectations on the budget are likely to start building up and Textiles, Infrastructure, Power and IT sectors are likely to benefit from the same. FDI in Cable TV and more sops to agriculture sector are in the pipeline.
Crude closed at $100 per barrel for the first time ever. Wall street lost all the gains to end the negative zone with Dow Jones losing 11 points to close at 12,377 and Nasdaq closing at 2,306 down 15 points. Zurich-based Credit Suisse, Switzerland's second-biggest bank, today announced a USD 2.85 billion in writedowns blaming on the credit turmoil. After hours Hewlett-Packard declared street beating results and raised the outlook.
Japanese markets are currently trading down 77 points on the weak global cues. We beleive Japanese markets have already bottomed out just below 13,000 levels 10 days back. We do not expect big losses in Japanese markets in the coming days.
Govt in a surprising move today extended tax sops to exporters covering transport and storage of goods. Taxes will be refunded back to the exporters. Logistics companies are likely to benefit from this move. Gateway Distriparks, Container Coporation, Patel Integrated Logistcs are few listed players in this segment.
Reuters reports that government is likely to levy 10 percent export tax on Iron Ore exporters, courtesy powerful Steel Industry lobbying. Sesa Goa is likely to take the hit. Rupee hits a 5-month low on shortage of dollars, in conjunction with other International currencies against the greenback(USD). IT Stocks started looking up with midcap stocks picking up steam. Though IT Stocks tried to come back many times in the last 4-5 months, many a time turned out to be one day wonders. This time weak Rupee is working to their advantage.
OnMobile Global surprised the street with better than expected listing on the bourses. Bang Overseas Ltd & Shriram EPC Ltd are listing on BSE today. On the IPO front REC(Rural Electrification Corporation), the govt. owned power finance corporation subscribed in the first 30 mins of its opening.
Stock in News -Nagarjuna Constructions, Polaris, Indus Indbank, BEML, L&T, Punj Lloyd and many more are the stocks in news today.
Nagarjuna Constructions is likely to sell its stake in subsidiaries NCC
Infrastructure Holdings Ltd and NCC Urban Infrastructure Ltd to PE Firms in the next 2 years.
Orderbook of BEML(Bharat Earth Movers limited) is expected to cross Rs.4,000-crore mark in the current fiscal, compared to the current order book of Rs.3,200 crore
Anil Ambani-led Reliance Power complained to market regulator SEBI about the possibility of a manipulation of its stock price immediately on its listing on February 11.
Mint reports that the central intelligence unit of Indian customs here has launched a series of cases alleging import duty evasion by nine infrastructure firms including listed firms like Punj Lloyd, Era Constructions, Gammon India and Maytas Infra Pvt. Ltd.
Polaris Software Lab has entered into a strategic partnership with City Networks, a software and services developer for the treasury, securities and derivatives markets. Under the agreement, Polaris will provide product development and support services to City Networks.
CNI Research Ltd has signed a consulting agreement with Wakabayasbi Fund, LLC, a Japanese limited liability company, a corporation formed under the laws of the Japan. The agreement is for liaison of capital funding and institutional relationship (non exclusive in India and overseas). The alliance would improve the topline of CNI Research Ltd.
Larsen and Toubro bagged a contract worth $431 million as part of an upgrade of two of Kuwait's three refineries for environment-friendly products.
ET reports one of the country’s largest banks, Canara Bank is reportedly eyeing an Indonesian bank to expand its international footprint.
Private sector bank IndusInd Bank has decided to sell up to 10 per cent of its existing equity capital.
The finance ministry today extended the service tax refund scheme for exporters to three more services : Goods transportation agencies and transport of export consignments by rail containers to sea ports, airports and inland container depots
News Snippets:
- Ranbaxy board approves de-merger of its R&D unit. The swap ratio has been fixed at 4:1.
- Reliance Capital gets RBI approval for ARC business.
- British Gas (BG) picks up stake in ONGC’s two deep water exploration blocks.
- M&M is targeting revenues worth US$3bn over the next ten years from deals in the defense space involving supply of land equipment systems to the armed forces.
- NTPC selects three foreign companies for a 40% stake in its renewable energy JV with ADB.
- Reliance Communications likely to place an order for 5mn set top boxes for its proposed DTH broadcasting venture.
- Bajaj Auto gets High Court approval for the proposed de-merger.
- Bhel and Alstom bids for 740MW gas power project by ONGC Tripura Power Corporation.
- BEML order book to increase by 25% this fiscal.
- Satyam Computers sets up a 350-seater delivery centre in Hyderabad.
- JSW Steel top increase its galvalume steel capacity to 0.6mtpa by October 2008.
- Tata Group invests an undisclosed sum in Singapore-based private jet operator, BJETS.
- UB Group to expand its product basket by launching about 80 wine brands including imported brands this year.
- BEML signs agreements with different companies to manufacture defence equipment in India.
- Bharat Electronics signs MoU with Israel’s defence equipment maker for making missile electronics and missile guiding systems for Indian military.
- Stand-alone tower companies such as Essar Telecom Tower, GTL Infra, Quipo, Xcel Telecom and TowerVision are planning to consolidate their businesses to compete with existing big three tower companies.
- Parsvnath Hotels, a subsidiary of Parsvnath Developers, has formed a JV with Royal Orchid Hotels which will develop ten hotels at an investment of Rs5bn.
- Biocon acquires majority 70% stake in Germany-based AxiCorp Pharmaceuticals for Euro 30mn.
- Patel Engineering in a JV with KNR Constructions has bagged a Rs2.1bn NHAI contract.
- Bhushan Steel sings an agreement with MP Government for setting-up coke and cement plants with an investment of Rs30bn.
- Coal India and IL&FS to form a JV to undertake project development for mine, power and other coal-based projects.
- 3i Infotech plans a JV with Chinese company for servicing its domestic clients.
- Sun TV to launch FM Radio stations in Kerala and Karnataka on February 20th and 21 respectively.
- Government may cut excise and custom duties on petroleum products.
- Rupee hits a 5-month low of Rs39.95 against the US Dollar.
- Large power projects including UMPPs may soon get a total duty waiver for purchasing equipments without going through international competitive biding.
- Railway freight earnings up 12.3% to Rs383bn in April’07-January’08.
- Finance Ministry extends the service tax refund scheme for exporters to include three more services - couriers, goods transport agencies and container transportation by rail.