Trade news.: April 2010

Friday, April 16, 2010

Posco, the third-largest shareholder in Macarthur Coal Ltd.

Emerging-market bond funds received an unprecedented $1.8 billion in the past week, lifting 2010 inflows to a record, on speculation central banks will raise interest rates, according to EPFR Global. Posco, the third-largest shareholder in Macarthur Coal Ltd., said it supported Peabody Energy Corp.’s revised A$4.1 billion ($3.8 billion) cash offer for the Australian producer in the absence of a higher bid.
Malaysia’s Senai-Desaru Expressway Bhd. plans to restructure 1.46 billion ringgit ($456 million) of Shariah-compliant bonds to avoid becoming the country’s biggest Islamic-debt defaulter in more than two years. Google posted quarterly sales and profit that trumped Wall Street expectations on Thursday, boosted by a rebounding advertising market. The search giant's net income was $1.96 billion, or $6.06 per share, in the first quarter, up 38% from $1.42 billion from the same period last year. The yen and the dollar strengthened as prospects Greece will struggle to rein in the euro region’s widest budget deficit spurred demand for safer assets. Blackstone Group LP and other private-equity firms are accelerating sales of junk bonds and leveraged loans to pay themselves dividends in a sign the market for the riskiest debt may be overheating. Inflation touched a 17-month high of 9.9% in March spurred by an all-round increase in prices, mounting pressure on the central bank to raise key policy rates in the monetary policy review next week. Domestic air traffic was up 21.8 per cent in March 2010 on a y-o-y basis. For the fourth time in two months, state-owned oil retailers have raised ATF prices, this time by 3.2 per cent, in step with rise in global oil rates. Tata Motors sold 101,712 vehicles globally in March 2010, registering a growth of 39 percent over the corresponding month last year. GMR Infrastructure has initiated the sale of shares to overseas institutional buyers to raise up to USD 250 million (about Rs 1,100 crore). Viceroy Hotels has said that JP Morgan India Property Mauritius Company will pick up a 49 per cent stake in its Bangalore-based subsidiary for Rs 74 crore. Nitin Fire Protection Industries Ltd has raised its stake by 9 per cent in Dubai-based New Age Company to 49 per cent. Dewan Housing Finance (DHFL) plans to raise up to Rs 5,000 crore in the current fiscal to support its expansion plans besides meeting the capital adequacy needs. Castrol India’s net profit rose by 53.60 per cent to Rs 117.2 crore for the quarter ended March 31. Mangalore Refinery and Petrochemicals Ltd (MRPL) will double offtake of crude oil from Cairn India's Rajasthan fields to 0.4 million tons this fiscal. Videocon Group is keen to set up a 1,000 MW thermal power project in Punjab with an investment of Rs 5,000 crore. SAIL is in talks with South Korean steel major Posco and Japan's Kobe Steel for technology tie-ups to jointly set up steel plants.
Promoters of MCX Stock Exchange have sold part of their holdings and reduced the capital of the bourse to fall in lines with Sebi rules and pave the way for the launch of its stock trading platform. Japan’s JFE is in advanced talks to buy a small stake in JSW Steel. Triveni Engineering has decided to shut its loss making rural retail business. Nifty April contracts ends the Day down by 52.30 points at a premium of 3.70 points in April contracts and adding OI by 0.8%. Nifty VIX at 21.58% compared to 20.14% previous Day. Nifty OI PCR at 1.228 compared to 1.277 the previous day. Nifty active puts sees addition of 0.94 Lakhs and calls sees addition of 21.58 Lakhs over the Day. Highest OI in Nifty calls seen at 5200 April strike and puts at 5400 April strike. Long build up during the day seen in UNITECH, PIRHEALTH, TITAN & CUMMINSIND etc over the day. Short build up was seen in LICHSGFIN, MCDOWELL-N, CANBK, CROMPGREAV, VOLTAS, INDIAINFO, YESBANK, ICICIBANK, HCC, FORTIS, PETRONET, ABIRLANUVO, EKC & RELIANCE etc over the day. Long unwinding and short build up seen from FII side during the day. Marginal short build up seen in stock futures from FII side. Nifty options was seen to be bought from the FII side.

China’s economic growth accelerated to the fastest pace in almost three years.

China’s economic growth accelerated to the fastest pace in almost three years in the first quarter, adding pressure on Premier Wen Jiabao to sever the yuan’s peg to the dollar and raise interest rates. Gross domestic product rose 11.9 percent from a year earlier. Six banks have been hired by Agricultural Bank of China to arrange the Hong Kong portion of what may be this year’s largest initial public offering, according to seven people familiar with the matter. Singapore is looking forward to “good” growth this year, Prime Minister Lee Hsien Loong said after the island’s economy expanded in the first quarter at the fastest pace since at least 1975. U.S. homebuilder bonds have recovered to levels last seen before credit markets seized up as investors gain confidence that the economic recovery is strong enough to prevent borrowers from defaulting. Goldman Sachs Group Inc., JPMorgan Chase & Co. and their biggest rivals would be forced to wall off derivatives trading operations from their commercial banks under a measure to be introduced by Senate Agriculture Committee Chairman Blanche Lincoln, a congressional aide said. According to a report from the National Conference of State Legislatures released on Wednesday, states will have to find a way to close an $89 billion budget gap before their 2011 fiscal year begins in July. The rupee has been one of the best performing currencies among emerging market economies in the first quarter of 2010. The government has backed SEBI’s decision to bar 14 insurance companies from issuing new unit-linked schemes or products. Indian economy is seen growing at a faster pace in FY’11 than earlier expected, supported by a global recovery, domestic demand and a double-digit expansion in factory output. Solar power scheme has attracted proposals worth Rs.2.29 lac crore. Infosys has bagged a USD150 million order from Microsoft Limited.
Godrej Consumer is planning to bring products of Kinky and Keyline in India. Ranbaxy Limited is voluntarily recalling two consignments of one of its antibiotics from the US market. Strides Arcolab has received USFDA approval for anit-nausea drug. ABB has bagged Rs.63 crore order from Haryana Vidyut Prasaran Nigam. Nifty April contracts ends the Day down by 14.20 points at a premium of 6.65 points in April contracts and adding OI by 1.1%. Nifty VIX at 20.14% compared to 20.04% previous Day. Nifty OI PCR at 1.277 compared to 1.292 the previous day. Nifty active puts sees addition of 9.72 Lakhs and calls sees addition of 13.81 Lakhs over the Day. Highest OI in Nifty calls seen at 5400 April strike and puts at 5200 April strike. Long build up during the day seen in INFOSYSTCH, CNXIT, TATACHEM, ROLTA, PATELENG, TCS & CENTURYTEX etc over the day. Short build up was seen in PFC, STER, PUNJLLOYD, YESBANK, SAIL, IDFC, MRPL & SYNDIBANK etc over the day. Long unwinding and marginal short build up seen from FII side during the day. Short covering and marginal long build up seen in Stock futures from the FII side. Nifty options was seen to be bought from the FII side.

European governments offered debt-

European governments offered debt- plagued Greece a rescue package worth as much as 45 billion euros ($61 billion) at below-market interest rates in a bid to stem its fiscal crisis and restore confidence in the euro. China’s trade deficit is likely to be only temporary and surging import costs may fuel inflation, bolstering the case for a stronger yuan. A surplus may return this month, according to the government and analysts from Bank of America-Merrill Lynch and ANZ Banking Group Ltd. The cost of protecting Asia-Pacific corporate and sovereign bonds from default fell as a proposed rescue package for Greece helped calm investors, boosting risk appetite, according to traders of credit-default swaps. South Korea’s economy will expand this year at the fastest pace since 2006, and probably grew 1.6 percent in the first quarter, as the global recovery spurs demand for the nation’s products. The luxury Peninsula hotel chain plans to open properties in China and India, where expanding economies and rising consumer wealth promise demand for high-end lodging, said Clement Kwok, chief executive officer of owner Hongkong & Shanghai Hotels Ltd. Tenaga Nasional Bhd., Malaysia’s biggest power producer, rose to its highest level in almost two years after JPMorgan Chase & Co. increased its earnings and share price estimates on a strengthening ringgit and economy. China is softening its recent muscular global posture, muting criticisms of the U.S. at a time of delicate negotiations with Washington and simmering economic troubles at home. Energy providers Mirant Corp. and RRI Energy Inc. said that they are combining in a $1.61 billion stock-swap deal, renaming the company and creating a utility powerhouse that will become one of the nation's largest independent power producers. The combined company, which will have a market capitalization of about $3.1 billion, will be called GenOn Energy. It will bring together roughly 24,650 megawatts of electric generating capacity, operations from coast to coast and have total revenue of $4.13 billion, based on full-year 2009 figures. The Government is looking at disinvestment in public sector undertakings across the services sector. The Finance Ministry has identified 28 different PSUs for public issue. J P Morgan expects FY’11 inflows in debt and equity to be the highest. Government may have to step in to settle the issue between SEBI and IRDA. Banks are exploring options to lend below the base rate. RIL has bought 21% of US-based Atlas Energy’s Shale gas holdings and 40% of north-eastern gas field. Tata Steel and NMDC will team up to develop the latter’s two steel projects in Karnataka and Chhattisgarh. Tata Motor is planning to sell part of its shareholding in Tata Cummins, a JV with Cummins. SEBI has approved IPO of Glenmark’s generic arm. NHPC is seeking approval for 10,000MW projects. Spicejet has rejected ADAG offer of Rs.40-45 per share. Nifty April contracts ends the Week up by 58.10 points at a premium of 3.15 points in April contracts and adding OI by 0.7%. Nifty VIX at 18.44% compared to 17.62% previous Week. Nifty OI PCR at 1.394 compared to 1.194 the previous week. Nifty active puts sees addition of 1.58 Cr and calls sees addition of 51.89 Lakhs over the Week. Highest OI in Nifty calls seen at 5400 April strike and puts at 5200 April strike. Long build up during the week seen in PETRONET, TATATEA, GVKPIL, VOLTAS, MRPL, GSPL, LICHSGFIN & STER etc over the week. Short build up was seen in TRIVENI, SESAGOA, DRREDDY, RENUKA, BHARTIARTL etc over the week. Short covering and long build up seen from FII side during the week in Nifty futures Short build up seen in Stock futures from the FII side. Good addition in Nifty options seen during the day from the FII side.

Most Asian stocks fell, led by Japanese and South Korean exporters

The number of Americans filing new claims for unemployment rose to 460,000 last week from a revised 442,000 the previous week, the Labor Department said Thursday morning. Economists surveyed by Briefing.com had expected 435,000 claims, on average.
Continuing claims, a measure of those Americans who have been receiving benefits for a week or more, fell to 4,550,000 from 4,681,000 the previous week. Economists surveyed by Briefing.com thought continuing claims would fall to 4,630,000. Most Asian stocks fell, led by Japanese and South Korean exporters, as Goldman Sachs Group Inc. downgraded Canon Inc. and the won strengthened. Commodity and consumer-staple companies gained. China may post its first trade deficit in six years after a surge in imports of commodities and consumer goods, weakening U.S. arguments that the nation is keeping its currency undervalued to gain an advantage. The 3G spectrum auctions process will begin today. Food inflation for the week ended March 27, 2010 stood at 17.7%. Life insurance companies see 18% growth in total premium income in FY’10. Tea production in the country grew by 18% in February, 2010 compared to the same period last year. The Government has cleared Rs.16000 crore FPO of SAIL. Tata Steel and NMDC will team up to develop the latter’s two steel projects in Karnataka and Chhattisgarh. Aban Offshore has bagged an order worth Rs.716 crore from Brunel Shell. Private equity firm CX Partners has bought an 8% stake in Monnet Ispat for Rs.150 crore. Emaar MGF is expected to come up with an IPO in the next 90 days. ACC expects demand for cement to rise by 10% in FY’11. The company has also planned a capex of Rs.1300 crore. Essel Group will invest about Rs.500 crore in the next 5-7 years to expand education portfolio. Aurobindo Pharma has received final approval from the US health regulator for an anti-depressant drug. HEG plans to raise Rs.400 crore by issue of equity shares. Hero Honda may increase prices on account of high raw material cost. Maruti Suzuki is facing demand increase and the capacity is limited, as of now, to meet this increase in demand. Jagran Prakashan is in talks with Mid-day for a stake purchase. Nifty April contracts ends the Day down by 77.35 points at a discount of 2.85 points in April contracts paring OI by 1.1%. Nifty VIX at 19.92% compared to 17.32% previous Day. Nifty OI PCR at 1.263 compared to 1.317 the previous day. Nifty active puts sees addition of 12.59 Lakhs and calls sees addition of 29.47 Lakhs over the Day. Highest OI in Nifty calls seen at 5400 April strike and puts at 5200 April strike. Long build up was seen in LITL, ESSAROIL, IFCI, VIDEOIND, VOLTAS & ROLTA etc over the Day. Short build up during the Day seen in SAIL, WELGUJ, FORTIS, INDIAINFO, HINDALCO, HDFC & JINDALSAW etc over the Day. Long unwinding was seen in Nifty futures from the FII side. Marginal short build up seen in Stock futures from the FII side. Nifty options was seen to be bought from the FII side.

Asian stocks gained, driving the MSCI Asia Pacific.

Asian stocks gained, driving the MSCI Asia Pacific Index higher for the fifth straight day, as investors bet the Federal Reserve will leave the benchmark U.S. interest rate at a record low. Federal Reserve policymakers are worried that the economic recovery may lose steam going forward, despite recent moderate improvements, according to minutes from their recent policy meeting released on Tuesday. Though the latest data suggest an uptick in economic activity, Fed members believe that some sectors of the economy could stifle overall growth, the minutes from the March 16 meeting said. U.S. Treasury Secretary Timothy F. Geithner is putting the Group of 20’s enhanced power to the test as he tries to prod China into revaluing the yuan.
Top Indian steel makers witnessed upto 15% rise in sales in the month of March 2010.
The rupee weakened on RBI intervention after hitting 19 month high levels. The Securities and Exchange Board of India has cut the listing time to 12 days. This order is effective from May 1, 2010. Godrej Consumer Products has acquired an Indonesian company, PT Megasari Makmur Group and its distribution company in Indonesia. Punj Lloyd has bagged orders worth Rs.235 crore. BPCL’s first discovery in Brazil’s offshore basin is capable of producing 15000 barrels of crude daily. This well is jointly managed by BPCL along with consortium partners. Temasek Holdings is in talks to acquire stake in GMR Group. Jindal Power has tied up debt of Rs.10000 crore for its upcoming 2400 MW power plant. GSK Consumer Healthcare will invest Rs.270 crore over the next three years. Essar Group is looking for oil and gas assets in Africa and Southeast Asia. Coal India plans to invest Rs.6000 crore for acquistions. Profit of the company jumped 300% during FY’10. Unitech has appointed E&Y and two other advisors for exploring opportunities for potential restructuring. NTPC plans to borrow Rs.20000 crore in FY’11 to fund its capacity expansion plans.
Spicejet will start its international operations soon as the Ministry has cleared its proposal. Electrotherm is expanding its presence in the southern markets to push its 40-tonne furnace as cost-effective option. Wipro plans to exit baby care and Vanaspathi business. Nifty April contracts ends the Day marginally up by 1.20 points at a premium of 1.10 points in April contracts and paring OI by 1.1%. Nifty VIX at 17.20% compared to 17.17 % previous Day. Nifty OI PCR at 1.286 compared to 1.267 the previous day. Nifty active puts sees addition of 26.92 Lakhs and calls sees addition of 14.67 Lakhs over the Day. Highest OI in Nifty calls seen at 5400 April strike and puts at 5200 April strike. Long build up was seen in ONMOBILE, PFC, ANDHRABANK, VIDEOIND, RELMEDIA, FEDERALBNK, IOB, MLL, RECLTD, MTNL, ISPATIND, GTOFFSHORE, PIRHEALTH, RPOWER etc over the Day. Short build up during the Day seen in BEL, HCLTECH, MCDOWELL-N, CIPLA, PRAJIND, M&M, LUPIN & MCLEODRUSS etc over the Day. Short covering and marginal long build up was seen in Nifty futures from the FII side. Marginal long build up seen in Stock futures from the FII side. Addition in Nifty options seen during the day from the FII side. Bank credit has gone up 16.75% as on March 26, 2010. The SEBI has allowed institutional investors to use the ASBA route for investing in public offerings. The order book of Indian Corporates has doubled in the March quarter compared to the same period last year. Essar Energy may launch an overseas initial public offer of USD2.5 billion. United Spirits is world’s no.2 spirits maker after Diageo. Drug price regulator NPPA has issued a show-cause notice to Piramal Healthcare for selling eye drop without getting the approval from the regulator. The Cabinet is likely to discuss the FPO of SAIL in parliament today.
Bharati Shipyard has marginally hiked its stake in Great Offshore to 49.73%. Oil India is planning to hive off its overseas exploration and production assets into a new subsidiary. Ackruti City Ltd. is looking for immediate funding of Rs.250 crore, in addition to the Rs.1000 crore tied up in December 2009. M&M has hiked prices of its utility vehicles by up to Rs.26100. NTPC is planning of setting up a coal-based power plant in Bangladesh. Redington India Ltd. is looking to acquire companies in Africa and West Asia in the next six to eight months. JSW Steel’s output for the quarter ended March 2010 rose 66%.Blackstone will be investing Rs.225 crore in Jagran Media Network Private Limited. The Government is likely to set up a panel of group of ministers to take call on BSNL divestment. JSW Steel has planned a capex of Rs.7000 crore for FY’11. Emami Group will set up a power plant in Ethiopia. Elecon Engineering has won an order of Rs.89 crore. Nifty April contracts ends the Day marginally up by 11.85 points at a premium of 4.30 points in April contracts and adding OI by 1.0%. Nifty VIX at 17.32% compared to 17.20 % previous Day. Nifty OI PCR at 1.317 compared to 1.286 the previous day. Nifty active puts sees addition of 24.92 Lakhs and calls sees addition of 8.24 Lakhs over the Day. Highest OI in Nifty calls seen at 5400 April strike and puts at 5200 April strike. Long build up was seen in GODREJIND, GAIL, ALBK, EKC, NAGARCONST, HOTELEELA, APOLLOTYRE, GRASIM, AMBUJACEM, PIRHEALTH, IVRCLINFRA & POWERGRID etc over the Day. Short build up during the Day seen in FORTIS, AUROPHARMA, HINDUNILVR, JISLJALEQS, INDIAINFO, VIDEOIND, LITL, GMRINFRA, MTNL, CESC & RELMEDIA etc over the Day. Marginal long unwinding was seen in Nifty futures from the FII side. Marginal short build up seen in Stock futures from the FII side. Marginal unwinding of Nifty options seen from the FII side.

The euro fell for a second day against the yen.

The euro fell for a second day against the yen amid concern Greece and other European countries will struggle to raise funds to repay maturing debt. The pending home sales index posted a surprise jump in February, rising 8.2% to 97.6 from a revised 90.2 in January. Economists expected the report from the National Association of Realtors to have declined by 1%, according to Briefing.com forecasts. A separate report showed growth in the services sector of the economy. The Institute for Supply Management's (ISM) services sector index rose to 55.4 in March from 50 in February, versus forecasts for a rise to 53.6. Any reading over 50 indicates expansion in the sector.
The Bank of Japan may raise its economic assessment and keep policy unchanged tomorrow after its Tankan business survey showed the export-driven recovery is gaining momentum. Steel consumption rose 7.6 per cent to 56.32 million tonne (mt) in 2009-10 as against 52.35 mt in the year-ago period, on account of rising demand from sectors, including automobiles, white goods and construction. Sebi revises timeline for filing financial results, whereby, listed companies will now have to submit audited quarterly results within 45 days from the end of the relevant quarter.
Bicon arm has entered into an agreement to acquire the 49% equity stake held by CIMAB SA in Biocon Biopharmaceuticals Pvt. Ltd. (BBPL), post which BBPL will become a wholly owned subsidiary of the company. Uttam Galva Steels has increased the prices of its products by Rs 6,000 per tonne. Essar Oil’s promoter entities will consolidate their holdings in the company by way of transfer of shares among themselves later this month. Welspun Gujarat Stahl Rohren is learnt to be in talks to buy a tad over 50 per cent stake in the Saudi Arabia-based Aziz Pipe Company for an estimated Rs 260 crore. L&T has bagged an order worth Rs 1,060 cr from GSPC. United Breweries (Holdings), a promoter of Kingfisher Airlines, has pledged 5.1 million shares in the carrier as on March 30, or about 1.9 per cent of its equity. Era Infra Engineering has forayed into power transmission and distribution (T&D) business. McNally Bharat Engineering has bagged a project worth Rs 827 crore for infrastructure development works at the 500 MW Satpura power station. Aegis Logistics has acquired Shell Gas (LPG) India. Opto Circuits buys NS Remedies for USD 1.5 mn. Oil India has USD 2.5 bn of cash available for overseas acquisitions. Reliance Big Entertainment has said it will acquire 50 per cent stake in the England-based gaming firm Codemasters, possibly for up to $150 million. Nifty April contracts ends the Day up by 59.10 points at a discount of 2.5 points in April contracts and adding OI by 6.5%. Nifty VIX at 17.17 % compared to 17. 62% previous Day. Nifty OI PCR at 1.267 compared to 1. 194 the previous day Nifty active puts sees addition of 46.68 Lakhs and calls sees addition of 11.99 Lakhs over the Day Highest OI in Nifty calls seen at 5400 April strike and puts at 5200 April strike. Long build up was seen in JISLJALEQS, BAJAJ-AUTO, ALBK, BHUSANSTL, SYNDIBANK, NAGARCONST, DENABANK, SINTEX, ORIENTBANK, GODREJIND, IBREALEST, PRAJIND, BALRAMCHIN, ANDHRABANK, HDIL, DLF, RENUKA, TATASTEEL, IDBI, INDIAINFO, VIJAYABANK & BAJAJHIND, etc over the Day. Short build up during the Day seen in BEL, NOIDATOLL, FORTIS, HINDPETRO, IOC, IDEA HINDUNILVR etc over the Day. Long build up was seen in Nifty futures from the FII side. Long build up seen in Stock futures from the FII side. Addition in Nifty options seen during the day from the FII side.

Asian stocks rose, led by companies reliant on sales in North America

Asian stocks rose, led by companies reliant on sales in North America, as U.S. job reports boosted confidence the global economy is recovering. Former Federal Reserve Chairman Alan Greenspan said there is “a momentum building up” in the U.S. economy and the odds of it faltering have “fallen very significantly.” There is a momentum building up which is really just beginning and it’s got a way to go,” Greenspan said today on ABC’s “This Week” program. He said the U.S. is “on the edge of a significant build-up” in inventories “and that is a self- reinforcing cycle.” US employers added 162,000 jobs in March after losing a revised 14,000 jobs in February, the Department of Labor said Friday. Economists had predicted a gain of 184,000 jobs, according to a consensus of economists surveyed by Briefing.com. Exchange rate fluctuation has inflated India's external debt by $18.7 billion (about Rs 90,000 crore) during the three-month period ending December 31, 2009, according to a data from the Reserve Bank of India (RBI). Finance Minister Pranab Mukherjee expects food prices to start falling with the harvest of winter crop this month and also on the back of imports of essential commodities. Bhel, power sector southern region ( PSSR) catering to the four southern states besides Orissa, Chatisgarh and Madhya Pradesh, bagged new orders worth Rs 1770 core during 2009-10 taking the outstanding orders to Rs 5238 core.
Union Bank of India has said its business is likely to cross the Rs 3 lakh crore mark by this quarter and has projected growth of 25 per cent in loans and deposits in fiscal 2010-11. Emami sets a target of 19% growth rate in sales for its flagship product Navratna oil for 2010-11. Reliance Infrastructure has commissioned the first phase of 1,200-MW Thermal Power Plant by putting 600 MW on stream at Hissar in Haryana. Hindustan Copper is hopeful of getting government’s approval in April for its share sale programme, which is expected to raise Rs. 10,000 crore. Patni promoters are making fresh attempts to sell their stakes to international and local firms. Heidelberg Cement has earmarked Rs. 800 cr for acquisition of mid-sized companies in India. DLF has appointed Goldman Sachs to advise it on the matter of sale of luxury hotel chain, Aman Resorts. NMDC raises base ore prices by 34-56% from April 1, 2010. Nifty April contracts ends the Week marginally up by 9.85 points at a premium of 16.30 points in April contracts and adding OI by 1.0%. Nifty VIX at 17.62% compared to 17.89% previous Week. Nifty OI PCR at 1.194 compared to 1.174 the previous day. Nifty active puts sees addition of 93.57 Lakhs and calls sees addition of 72.55 Lakhs over the Week. Highest OI in Nifty calls seen at 5400 April strike and puts at 5200 April strike. Long build up during the week seen in BGRENERGY, ASHOKLEY, AREVAT&D, PATELENG, NAGARCONST, MUNDRAPORT, VIDEOIND, FORTIS, IFCI, CHENNPETRO, HOTELEELA, AXISBANK, SUNTV, PETRONET, EKC, BAJAJ-AUTO, ESSAROIL, JINDALSAW, GODREJIND, LICHSGFIN etc over the week. Short build up was seen in MUNDRAPORT, DABUR, TECHM, NOIDATOLL, EDUCOMP, MCLEODRUSS, RENUKA, LUPIN, BHARTIARTL, POLARIS, PUNJLLOYD & LITL etc over the week. Short build up was seen in Nifty futures from the FII side. Short build up seen in Stock futures from the FII side. Good addition in Nifty options seen during the day from the FII side.

Japan’s largest manufacturers became the least pessimistic

President Obama unveiled plans to open large swaths of U.S. coastal waters in the Atlantic Ocean and the Gulf of Mexico to oil and natural gas drilling -- a move likely to please the energy industry but upset the administration's environmentalist supporters. Japan’s largest manufacturers became the least pessimistic about the economy since 2008 as a global rebound drove demand for exports. The Tankan index of sentiment rose to minus 14 in March from minus 25 in December, the fourth straight gain, the Bank of Japan said in Tokyo. Asian stocks rose, lifting the MSCI Asia Pacific Index for the fourth time in five days, on higher commodity prices gained and takeover offers in Australia. China’s manufacturing expanded at a faster pace in March, reinforcing an economic rebound in the wake of a record expansion of credit that now risks bubbles in the country’s asset markets. The Purchasing Managers’ Index rose to a seasonally adjusted 55.1 from 52 in February, according to Li & Fung Group, a Hong Kong-based company that releases data for the Federation of Logistics and Purchasing. The bond market is showing California is no Greece. Debt issued by California, the world’s eighth-largest economy, is outperforming Greece’s bonds as funds including Cumberland Advisors say investors are betting the lowest-rated U.S. state’s credit risk has been exaggerated. The cost to protect against California not paying its obligations is the lowest relative to Greece in at least 15 months, according to data compiled by Bloomberg. The April-February fiscal deficit is at 92 per cent of the budgeted estimate of Rs 4.14 lakh cr for the current fiscal. The deficit in the first eleven months of the last financial year was Rs 3.07 lakh crore.
Expanding for the fourth straight month, exports surged by 34.8 per cent in February to $16.09 billion against $11.94 billion in the year-ago. FIIs invest Rs 1.09 lakh cr in stocks in FY10. Government has announced incentives worth Rs 625 cr for exporters of garments, engineering, electronics and agro products as the demand for these items in the western economies is yet to pick up. Grain, cooking oil and sugar prices have dropped by upto a third in March due to better than expected harvests across the world. Direct tax mop-up may fall short of its revised FY10 target by Rs. 30,000 cr.
As part of plans to meet its target under the 11th Five-Year Plan GAIL (India) will invest about Rs 6,000 crore in the next fiscal. L&T has bagged two orders worth Rs 1,017 crore for construction related works. GMR Infra is close to tying up funds for its Rs. 2190 cr Hyderabad-Vijaywada highway project. RBI has permitted Axis Bank to undertake primary dealer business departmentally in the government securities market from April 5. IRB Infrastructure has tied up a Rs 775 crore loan for its road projects. Aventis Pharma’s promoter firm Hoechst GmbH has completed acquiring an additional 10.27 per cent in it. USFDA has accepted Glenmark’s new drug application (NDA) for pain killer oxycodone hydrochloride capsules. Ahluwalia Contracts has received orders worth Rs 425 crore from various clients. Subhash Projects has bagged a power project worth Rs 209.56 cr. Godrej Properties has entered into agreements to transfer 49 per cent equity share in unit Godrej Sea View Properties to HDFC PMS for Rs 55 crore. Abbott has sued Lupin to prevent it from selling a copy of the cholesterol drug TriLipix. Sun TV promoter, Kalanithi Maran, is in talks with hedge fund WL Ross to buy its entire 30% stake in SpiceJet. Nifty April contracts ends the Day down by 12.30 points at a premium of 12.50 points in April contracts and adding OI in all Nifty contracts by 1.2%. Nifty VIX at 19.87 % compared to 19.80% previous day. Nifty OI PCR at 1.166 unchanged over the day. Nifty puts sees addition of 28.69 Lakhs and calls sees addition of 24.71 Lakhs over the Day. Highest OI in Nifty calls seen at 5300 April strike and puts at 5200 April strike. Long build up during the session seen in BGRENERGY, ASHOKLEY, SAIL, TV-18, SESAGOA, CAIRN, VOLTAS, CESC, CROMPGREAV & GTLINFRA. Short build up was seen in NOIDATOLL, LITL, TECHM, POLARIS, TCS, KFA INDIAINFO etc. Short build up was seen in Nifty futures from the FII side. Short build up seen in Stock futures from the FII side. Options writing was seen from the FII side.

Peabody Energy Corp.

Peabody Energy Corp., the biggest U.S. coal company, made an unsolicited initial cash proposal to buy Australia’s Macarthur Coal Ltd. for A$3.3 billion ($3 billion) amid surging demand for the fuel in Asia. Most Asian stocks declined amid concerns a rally that took the MSCI Asia Pacific Index to a 10- week high yesterday had overvalued earnings prospects. The board of Dubai World property unit Nakheel, including its chairman, was replaced as the emirate, pushed forward with restructuring its debt-saddled chief conglomerate in an attempt to salvage Dubai's reputation as a regional investment haven. Corporate bonds are rallying for the fourth straight quarter, the longest streak since 2004, extending a record advance as 72 per cent of companies beat analysts’ earnings expectations. Consumers in the U.S. gained confidence in March as the gloom over job prospects began to lift, indicating employment will be central to preserving the recent acceleration in spending. The Conference Board’s confidence index rose to 52.5, exceeding the median forecast of economists surveyed by Bloomberg News, from 46.4 in February, according to figures today from the New York research group. Finance Ministry has decided to defer the levy of 10 per cent service tax on railway freight by three months. Private sector is expected to contribute up to $500 billion for development of the infrastructure sector during the 12th Plan. Nine telcos get the nod to participate in 3G bids. Cement companies may hike prices by Rs. 7 to pass on the rise in input costs. Steel prices are set to rise by Rs 2,000 to Rs 3,000 a tonne from April on the back of a spike in input costs. Bharti Airtel has clinched the deal to buy most of the African operations of Kuwait's Zain for $9 billion, making it the second-largest cellular firm on the continent. Tata Steel's European arm Corus is open to dialogue for strategic tie-ups with investors having sound financials, to rescue its recently mothballed Teesside Cast Products (TCP) plant in England. Crompton Greaves has completed the acquisition of UK-based Power Technology Solutions (PTS) for 30 million pound. Larsen & Toubro has bagged orders worth Rs 1,126 crore for various construction related works. Tata Motors has sold 20 per cent stake in Telcon, its construction equipment joint venture with Japan's Hitachi, to its partner for Rs 1,159 crore. JMC Projects (India) has bagged NHAI's Rohtak-Bawal project. Areva T&D has won a gas substation order worth Rs 70 cr. Jubilant Organosys Ltd has a fixed a floor price of Rs 344.5 per share for its qualified institutional placement (QIP).
Hero Honda has declared a special dividend of 4000% (Rs. 80 per share) to reward shareholders to mark their silver jubilee this year. Tata Motors has reduced its debt by Rs. 1500 cr as bondholders have opted for conversion of bonds into shares before maturity. ITC has tied-up with La Aurora for its cigar business. JSL raises Rs. 250 cr through a QIP issue to part fund its expansion plan. Max India may sell 4% in Max New York Life Insurance to Axis Bank. Abhishek Industries is planning to invest Rs. 2000 cr to double its manufacturing capacity over the next 2-3 years. Omaxe plans to raise Rs. 800 cr through QIP to reduce debt and fund ongoing projects. NMDC is likely to raise iron ore prices by 70%. Nifty April contracts ends the Day down by 44.90 points at a premium of 11.45 points in April contracts and paring OI in all Nifty contracts by 1.6%. Nifty VIX at 19.80 % compared to 18.73% previous day rising by 5.71%. Nifty OI PCR at 1.166 compared to 1.162 the previous day. Nifty puts sees addition of 22.14 Lakhs and calls sees addition of 18.41 Lakhs over the Day.
Highest OI in Nifty calls seen at 5300 April strike and puts at 5200 April strike.
Long build up during the session seen in NATIONALUM, SESAGOA, NAGARCONST, CHENNPETRO, TATAMOTORS, BGRENERGY & UNIONBANK. Short build up was seen in EDUCOMP, CNXIT, OPTOCIRCUI, TECHM, LUPIN, INFOSYSTCH, HCLTECH, ABAN, HEROHONDA, MPHASIS, RENUKA & POLARIS etc. Long liquidation and short build up was seen in Nifty futures from the FII side. Short build up seen in Stock futures from the FII side. Nifty options was seen adding during the day from the FII side.

Japan’s industrial production fell in February

Japan’s industrial production fell in February and the unemployment rate held at the lowest level since March 2009, underscoring an uneven economic recovery that has yet to end deflation. Asian stocks rose, driving the MSCI Asia Pacific Index to its highest level in 10 weeks, after U.S. consumer spending increased for a fifth month and European confidence in the economic outlook improved. UBS AG generated about $2.3 billion of revenue at its fixed-income division in the first quarter as Switzerland’s biggest bank rebuilt the unit following record losses. The Wall Street Journal reported, that Sony Corp. is close to exiting talks to purchase rights to the music catalog of EMI Group Ltd. In 2009, U.S. passenger traffic fell by more than 5%, mostly in response to the recession. The number of domestic and international passengers on U.S. airlines declined 5.3% in 2009 compared to the year before, the Bureau of Statistics reported. Subprime-mortgage securities are rising at an accelerating pace as the U.S. begins to encourage reductions to homeowners’ balances, which may lead to fewer foreclosures and a quicker end to the housing slump. Japan has committed 215 billion yen (Rs 10,535 crore) for six infrastructure projects in India, including Phase II of the Mass Rapid Transport System (MRTS) for Delhi. RBI will sell Rs. 2.87 trillion ($64 billion) of bonds in the first half of 2010/11, 63 percent of its record full-year target, less than market expectations, sending yields down. The Government has approved 23 Foreign Direct Investment (FDI) proposals worth over Rs 2,325.21 crore, including that of auto components maker Bharat Forge. Indian companies saw 16 M&A deals worth $981 million in the mining space in 2009, as per global consultancy firm Ernst and Young. Central Board of Direct Taxes (CBDT) has clarified that a company that makes a notional loss on a forex derivative because of a fall in its value cannot deduct the loss from its taxable income since it still owns the derivative. Gayatri Projects has bagged contracts worth Rs 602 cr from NHAI.
Hindustan Dorr-Oliver has won orders worth Rs 2.67 billion from various sectors.
IVRCL Infrastructures & Projects Limited (IVRCL) Water Division has bagged orders worth Rs 867.57 crores for various infrastructure works. Bharti to sign Zain deal today. The country's largest coal producer Coal India Ltd (CIL) has seen an estimated two-fold jump in profit to Rs 10,616 crore in 2009-10. Hindustan Unilever has exited from BPO firm Capgemini Business Services India by selling its remaining 49 per cent stake to IT consultancy firm Cap Gemini SA for an undisclosed sum. Larsen & Toubro has bagged an order worth Rs 1,400 crore from the Indian Oil Corporation (IOC) to develop reactor for fuel refinery at Orissa. Suven Life Sciences has been issued patent to one of its compounds, which is used in treating disorders like Alzheimer's, Parkinson and Schizophrenia, by the European Patent Office (EPO). Aqua Logistics Ltd’s unit Aqua Logistics HK Pvt Ltd will buy three Hong-Kong based logistics companies. TTK Prestige has commenced production at its Rs 11 crore new plant in Roorkee, Uttarakhand. Havells India will increase its marketing spend by over 40 per cent, to Rs 100 crore, by next fiscal and plans to enhance retail overseas footprints, starting with Africa. Indoco Remedies has entered into a long-term drug supply pact with Aspen Pharmacare, the largest pharmaceutical manufacturer in Africa and one of the top 20 generics manufacturers in the world. Texas Pacific Group (TPG) is set to pick up 20% in Shriram Capital. Essar Shipping has raised Rs. 6000 cr this fiscal for expansion. GMDC will invest Rs. 484 cr, in wind power, over the next two years. Nifty April contracts ends the Day up by 21.85 points at a premium of 15.95 points in April contracts and adding OI by 3.8%. Nifty VIX at 18.73% compared to 17.89% previous day. Nifty OI PCR at 1.162 compared to 1.174 the previous day. Nifty puts sees addition of 21.5 Lakhs and calls sees addition of 22.09 Lakhs over the Day. Highest OI in Nifty calls seen at 5400 April strike and puts at 5200 April strike. Long build up during the session seen in MUNDRAPORT, HINDALCO, ALBK, HOTELEELA, RENUKA, IOB, STER, AMBUJACEM, LICHSGFIN, SYNDIBANK & NAGARFERT. Short build up was seen in DABUR, TATAMOTORS, COLPAL, MPHASIS, INFOSYSTCH, PIRHEALTH, EDUCOMP, PUNJLLOYD, BIOCON & ONMOBILE etc. Long build up was seen in Nifty futures from the FII side. Short build up seen in Stock futures from the FII side. Good addition in Nifty options seen during the day from the FII side.

Zhejiang Geely Holding Group signed a binding deal to buy Ford Motor Co.'s

Zhejiang Geely Holding Group signed a binding deal to buy Ford Motor Co.'s Volvo Cars unit for $1.8 billion, representing a coup for the independent Chinese automaker which is aiming to expand in Europe. China Construction Bank Corp., the nation’s second-largest lender, more than doubled profit in the fourth quarter as bad loans declined and lending surged amid a recovery in the world’s fastest-growing major economy. Net income climbed to 20.7 billion yuan ($3.03 billion) from 8.37 billion yuan in the fourth quarter of 2008. Former Federal Reserve Chairman Alan Greenspan’s warning that rising yields on government debt will drive up American borrowing costs is resonating with the world’s biggest bond traders, who say this month’s losses in the market for U.S. Treasuries are just the beginning. The euro strengthened against the dollar for a second day on receding concern Greece’s financial crisis will derail the 16-nation region’s economic recovery. Japan’s retail sales gained at the fastest pace in more than a decade in February as the economic recovery spread to households. Sales rose 4.2 percent from the year earlier. Junk bond sales reached a record this month as rising profits and record low Federal Reserve interest rates foster lending and investment to the lowest-rated borrowers. Companies worldwide issued $38.3 billion of junk bonds this month, passing the previous high of $36 billion in November 2006, according to data compiled by Bloomberg. The Reserve Bank of India will announce the government’s borrowing time table for April to September period today. The government has told the Reserve Bank of India that the norms for approval of new banking licences could be based mainly on the existing policy framework for ownership of private banks. This could be negative for private business houses planning to open banks. The Insurance Regulatory and Development Authority(IRDA) is wanting insurance companies to announce a number of key issues such as future profits from present business, agreements with foreign promoters, among other things, as per a senior IRDA official. Hero Honda plans to set up Rs.2000 crore plant in Karnataka. )
SKIL will buy Punj Lloyd’s 19.5% stake in Pipavav Shipyard. Bhilwara Energy plans to raise about Rs.3000 crore through equity route to fund its four hydro power projects with a total installed capacity of 1083MW. JSL, formerly Jindal Stainless Limited, plans to raise USD50 million via QIB issue. Axis Bank is in talks with Max New York Life to acquire up to 5% stake. BSNL has finalized a war chest of Rs.14000 crore to preserve its market share. Half of this amount will go for investment in mobile network. Tata Steel is planning to raise at least USD500 million via global depository receipts. L&T has won USD82 million contract from Oman to revamp and extend electrical networks. Nifty April contracts ends the Day up by 23.95 points at a premium of 14.95 points in April contracts and adding OI by 8.1%. Nifty VIX at 17.89% compared to 17.05% previous day. Nifty OI PCR at 1.174 compared to 1.229 the previous day. Nifty active puts sees addition of 27.20 Lakhs and calls sees addition of 37.92 Lakhs over the Day. Highest OI in Nifty calls seen at 5300 April strike and puts at 5000 April strike. Nifty VIX at 17.05 from 17.89 in the previous session. Long build up during the session seen in AREVAT&D, BAJAJ-AUTO, PATELENG, VIDEOIND, FORTIS, IFCI, CHENNPETRO, AXISBANK, SUNTV, EKC, PUNJLLOYD, ESSAROIL, IOB, SINTEX, TATACHEM, CENTURYTEX & STERLINBIO. Short build up was seen in COLPAL, BAJAJHIND, SIEMENS, DRREDDY, SESAGOA & JISLJALEQS etc. Long build up was seen in Nifty futures from the FII side. Short build up seen in Stock futures from the FII side. Good addition in Nifty options seen during the day from the FII side.

Outlook & Strategy:

Markets are expected to open the week a positive bias with resistances in Nifty near contract seen around 5330 levels above which 5380 can be tested. Supports seen around 5180-5120 levels for the week. Stocks with a positive bias at the open of the week with further upsides seen are AREVAT&D, BAJAJAUTO & VIDEOIND.

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