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Hot Market News & Trends
MARKET UPDATE - HOT FROM THE PRESS
* ECONOMY : 6 core sector industries grew by 6% in Dec 09 vs 5.3% in Nov on back
of robust growth in crude oil, electricity and cement production
* NTPC : may face punitive action from the govt for delaying the development of
coal blocks allotted to its for captive use
* OIL COS : Minister of State for Petroleum says Indian oil cos have been
mandated to double their gas production in the next five years
* SBI : eyes acquisitions in South-East Asia, particularly in Indonesia
* SHREE CEMENTS : planning to expand its base outside Rajasthan.. toying with
idea of entering foreign shores, especially Africa, with a manufacturing base
* LUPIN : plans to set up three new manufacturing facilities with invt of Rs2bn
* DLF : sells its 15-acre property in a Bangalore suburb for Rs1.2bn as it
decides not to go ahead with its mall project
* MARUTI : to invest Rs17bn to produce additional 250k cars annually in a second
line at its Manesar factory which will be operational by April 2012
* TIME TECHNO : plans to acquire an industrial packaging co in Europe at an invt
of Rs1.1-1.3bn
* HDIL : plans to launch its second QIP issue this week to raise Rs20bn
Corporate News – Industry trends
– Oil and Natural Gas Corporation and Hinduja Group are at loggerheads over a
stake in an Iranian gas field, with the London-based group seeking half of the
40% interest assigned to India but the state-owned company willing to concede
only one-fourth; Hindujas want the stake in Phase-12 (SP-12) of the giant South
Pars gas field to be split equally between its subsidiary Ashok Leyland Projects
Services and ONGC Videsh, the overseas arm of ONGC. (BS)
– The finance ministry’s proposal to merge commodity futures regulator
Forward Markets Commission (FMC) with the Securities & Exchange Board of
India has been put on the backburner. It met with opposition from the consumer
affairs department. (BS)
– Hindustan Zinc, the largest producer of zinc in India, had astounding result for
the quarter-ended December 2009. The company benefited largely from the
recent rally in zinc prices and higher revenue from by-products. Hindustan Zinc’s
net profit more than tripled, even though net sales only doubled during the third
quarter of FY10. (ET)
– Asian Paints, India’s largest paints company, surprised the market by reporting
an exceptional growth for the quarter ended December 2009 with strong
demand for decorative paints enabling the company to report a robust
performance. The consolidated net profit swelled three times to Rs1.98bn
against an estimated rise of 130%. The consolidated revenues also posted a
healthy growth of 22.5% against an expected increase of 15%. (ET)
– State Bank of India (SBI) is looking at acquisitions in South East Asia,
particularly in Indonesia where it acquired a bank way back in 2006, bolstered
by Indian companies interest in stepping up operations there. (DNA)
– State-run mining giant NMDC’s net profit has declined 40% to Rs8.6bn in the
third quarter ended December 31, 2009; The company had net profit of Rs14bn
in the December quarter of 2008; net sales of the company declined 32% to
Rs1,587bn for the third quarter of this financial year. (BS)
– After a brief lull, mobile operators have started clashing over the fee paid for
spectrum (airwaves ), with Vodafone claiming Tata Teleservices and RCOM
were underpaying the government, a charge denied by the two companies. (ET)
– Lupin Ltd, one of the fastest-growing generic drug companies globally, is
planning to set up three new manufacturing facilities at an investment of Rs2bn;
These will come up in Indore before the end of 2010-11, It would take the total
of their manufacturing units to 11. (BS)
– Piramal Healthcare is reviewing its plans to set up a new unit to make codeine,
the basic chemical used to produce best-selling cough syrups brands Corex and
Phensedyl, besides some pain killers, a top company executive said. (ET)
– Shree Cements is planning to expand its base outside of Rajasthan, besides
increasing the capacity at its Rajasthan plant. The company is also toying with
the idea of entering foreign shores, especially Africa, with a manufacturing base.
(BS)
– Infosys product division, which markets Finacle banking solutions, has received
orders from 20 regional rural banks for implementation of Core Banking
Solution. (BS)
– The Khorakiwala family, promoters of the troubled pharma company Wockhardt,
has sold nearly 18 acres of land at Mulund for Rs2bn to a city-based developer,
Runwal Group, and a real estate fund. (ET)
– Unlike 2005, when the country’s private refiners were late in producing Euro-III
compliant fuel, this time the private sector has taken a lead, with Reliance
Industries Ltd (RIL) becoming the first Indian refinery to produce Euro-IV
compliant diesel. (BS)
– The Petroleum Minister, Murli Deora, has written to the Finance Minister,
Pranab Mukherjee, to consider setting up a fund that will aid domestic public
sector companies in acquiring oil and gas assets overseas; “Competition in the
overseas market is tough, and to establish a strong footing apart from quick
decisions, huge investments are required. There is also a need to have a
strategy. A focal point is required to pursue such acquisitions,” official sources
said. (BL)
– New York-based India Equity Partners is set to acquire a 25% stake in IL&FS
Education and Technology Services (IETS) for little over Rs1.4bn. IETS is an
education and cluster development initiative of Infrastructure Leasing & Financial
Service (IL&FS).
Economic/Regulatory development
– The government’s war on food prices has seen marginal success so far. Retail
prices of sugar dipped 6% after the government announced a slew of measures
on January 13. Prices of grain and pulses have remained unchanged; Ex-mill
sugar prices, however, jumped back by Rs100 for every quintal in the last four
days to Rs3,900 a quintal, after correcting by Rs400 since January 13. (BL)
– The government is considering an across-the-board increase in excise duty in
Budget 2010-11, as it faces pressure to withdraw fiscal stimulus measures in the
wake of a 16-year-high fiscal deficit of 6.8% in the current financial year. (ET)
– Empowering India’s 500 million plus mobile users, the country’s telecom
regulator Trai has decided to set up an online customer redressal mechanism,
providing a platform for dissatisfied consumers to express their complaints
against their service providers. (ET)
International trends
– The US confectionery giant Kraft is preparing to tap the bond markets to raise
as much as £7bn to help finance its £11.9bn takeover of the British chocolate
maker Cadbury, say media reports. (BS)
– General Motors Co expects to sell about 2mn vehicles in China in 2010, a level
it didn’t expect to reach for at least another two years, said Kevin Wale, the
company’s top executive in the nation. (BS)
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