MARKET UPDATE
* ECONOMY : FM says political allies not agreeing on easing in FDI limits in
sectors like Retail & Insurance
* RIL : new creditor grp led by PE firm Apollo Mgt expected to reject RIL bid
to pave way for Apollo to merge LB with its Hexion Specialty Chemicals ops
* TATA MOTORS : Feb vehicle sales +58% @ 69k units due to reveval in commercial
vehicles mkt & expanding passenger car portfolio
* CEMENT : cos increase pxs by Rs10-12 per bag in Western India to offset twin
effects of excise duty hike & rise in diesel rates
* VISHAL RETAIL : rpts TPG may takeover the assets of the co & convert it into
a cash-and-carry operation
* OIL PSUs : Prime Minister rules out possibility of a rollback in the increase
of petro & diesel pxs
* BHUSHAN STEEL : MD says to spend $6bn to setup plant in Karnataka
* ONGC : chairman says in talks with Petroleos de Venezuela SA to sell
controlling stake in unit ONGC Mangalore Chemicals
* STEEL : SAIL chairman says Co may hike prices by Rs 600/ton from 1st April
post the hike in excise duties
Corporate News – Industry trends
– Cement companies have increased prices in the range of Rs 10-12 a bag to
offset the twin effects of excise duty hike and rise in diesel rates. (ET)
– Reliance Industries is on the verge of losing its bid for Lyondell-Basell, as it
baulks at rising valuation due to the recovering global economy, but that may
help it focus on the possible acquisition of Canada’s Value Creation. (ET)
– The Tata’s will have to either buy out the 26% stake in its life insurance joint
venture or rope in another partner if Prudential UK buys out the Asian life
insurance business of American International Group (AIG). (BS)
– The Government has decided that telecom companies offering 3G services
will not be allowed to claim tax breaks under Section 80 IA of the Income Tax
Act. This could further queer the pitch for new and foreign players planning to
bid for the auction, expected to begin on April 9. (BL)
– Bhushan Steel will spend Rs280bn to build a 6 lakh tonnes steel plant in the
Bellary region of Karnataka. (DNA)
– Coal India will increase its spending by three-times to Rs98bn in the next
financial year, primarily to part-fund its expansion and acquisition
programmes. (ET)
– GVK Group is likely to take management control of the Bangalore
International Airport (BIAL), five months after buying stakes of L&T and Zurich
Airport to emerge as the airport’s second-highest shareholder. (ET)
– Hindustan Dorr-Oliver (HDO), part of Hyderabad-based IVRCL Infrastructures
and Projects Ltd, has acquired Sheffield-based Davy Markham, a 180-year-old
company involved in design, manufacture and assembly of large equipment
used in mining, power, oil, gas and nuclear sectors. (BS)
– Tata Steel ruled out raising Rs50bn in equity to meet its debt covenants,
which are progressively being reset from the current quarter. (BS)
– Tata Motors saw a 58% growth in sales in February due to the revival in the
commercial vehicles market and its expanding passenger car portfolio. The
company registered vehicle sales at 69,427 units, up from 43,811 units last
February. It has sold 5.67 lakh units so far this fiscal, registering a growth of
28% over the year-ago period. (BL)
– Maruti Suzuki India has increased its investments on various social welfare
schemes by over 5% during 2007-09 periods, according to an internal report.
(FE)
– Texas Pacific Group may take over the assets of the troubled Vishal Retail
and convert it to a cash-and-carry operation that will see the exit of RC
Agarwal. (ET)
Economic/Regulatory development
– Manufacturing output climbed the most in one-and-a-half years in February,
vindicating Finance Minister Pranab Mukherjee’s decision to raise taxes to
prevent excessive demand from fueling inflation. (BS)
– Prime Minister Manmohan Singh said there would be no rollback in the
increased prices of petrol and diesel, saying the economy had the capacity to
absorb the increase without triggering an inflationary spiral. (BS)
– Employees Provident Fund Organisation's (EPFO) key advisory body, finance
and investment committee has recommended 8.5% interest on Provident Fund
deposits for 2010-11, the same return given to subscribers for the past five
years. (Mint)
International trends
– Germany's Merck said it has agreed to buy US biotech tool maker Millipore Corp
in a deal worth about US$7.2bn to boost its laboratory equipment business. The
deal snatches Millipore away from rival bidder Thermo Fischer. (BS)
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