Morning Brief

Stocks To Watch: Ranbaxy, Reliance Ind, SBI, Kingfisher Air

Wednesday, May 11 - Morning brief for the stock market:

BIG PICTURE

* EGoM on fuel defers Wed meet; may now convene on May 17 or May 18 (NW18)

TOP EVENTS TODAY

* Jan-Mar, 2010-11 (Apr-Mar) earnings to be detailed by:

ABB, Apollo Tyres, ARSS Infrastructure, Asian Granito, Arshiya International, Akzo Nobel, BF Utilities, Bhagwati Banquets, Deepak

Fertilizers, Grasim Industries, ICRA, JMC Projects, ITI, Ispat Industries, Kernex Microsystems, Kothari Sugars, Mcnally Bharat Engineering, Morarjee Textiles, Pioneer Embroideries, PTL Enterprises, Ruchi Infrastructure, SAL Steel, Sirpur Paper, Super Forgings, Sumeet Industries, TIPS Industries, Tanla Solutions, United Nilgiri, Usha Martin Education, Usha Martin, Venky's (India), and WS Industries.

* Annual General Meet of: Stovec Industries.

* Board Meetings of:

+ Asian Oilfield to mull oil, gas exploration JV with Oleum Energy.

+ Priyadarshini Spinning to mull fund-raising via share, warrant issue.

+ Rasoya Proteins to consider stock-split.

+ Usha Martin Education to mull fund raising options.

INDICATORS (previous session)

* NSE provisional net buy/(sale) in mln rupees, May 10: FII 250.2, DII 1,308.6

* Institutional net buy/(sale) in bln rupees, May 9: FIIs 2.43, MF (1.03)

* FII NSE futures net buy/(sale) in bln rupee, May 10: index 6.66, shr 1.53

* Sensex 18,512.77, down 16.19 points; Nifty 5,541.25, down 9.85 points

* Crude: $103.88/bbl; Rupee: 44.75/$1; Gold: $1,516.9/ounce; 10-yr yld: 8.2808%

OUTLOOK

* Share indices may open positive on firm cues from overseas equities, but selling on every rise may limit the upside. Corporate earnings will keep action stock specific.

GLOBAL STOCK MARKETS

* US: Stocks ended up on Tuesday as robust earnings' forecasts by companies boosted investor sentiment.

* Asia: Asian indices were up in early trade as a rise in oil and metal prices boosted commodity shares and a weakening of the yen pushed of

exporters' shares.

IPO WATCH

* Galaxy Surfactants Ltd has set a price band of 325-340 rupees a share for its initial public offering of 5.93 mln shares, which opens on May 13.

* Power Finance Corp's 229.55-mln-share follow-on public offer received a tepid response on the first day, as just 9% of the issue got subscribed Tuesday.

SECTOR NEWS

* AUTOMOBILE: Heavy Industries minister Praful Patel seeks to rollback stiffer import duty on cars assembled from completely knocked down kits, asking for a two-year relief. (ToI)

Duty Entitlement Pass Book, the duty neutralisation scheme for exporters is likely to get extended for nine months. (ToI)

* DIVESTMENT: The government expects to raise half of the year's targeted divestment mop-up from stake sales in POWER FINANCE CORP, STEEL AUTHORITY OF INDIA, OIL AND NATURAL GAS CORP, and HINDUSTAN COPPER.

* EXCHANGES: National Stock Exchange has deferred decision on inducting brokers on the board. (BS)

* GOVERNMENT: Multilateral funding agency World Bank has approved a $150 mln loan to India under the National e-Governance Plan.

The Central Board of Excise and Customs is against reduction in customs duty on crude oil, as the government may lose 230 bln rupees from the move. (ToI)
Union cabinet is set to discuss proposal to allow foreign direct investment in limited liability partnership firms. (ToI)

* OIL & GAS: State-run oil marketing companies seek oil minister Jaipal Reddy's support to raise petrol prices by 5-6 rupees a litre after the government deferred the Empowered Group of Ministers' meet on fuel pricing. (ET)

The government's move to divert gas supply from RELIANCE INDUSTRIES' KG-D6 field to power and fertiliser plants has hit output at Essar Steel and Jindal Ispat. (ET)

* POWER: Four Gujarat government-owned power distributors will increase tariffs by 10 paise per unit from May 1 on account of higher Fuel Price and Power Purchase Adjustment charges

* PRIVATE EQUITY: Mumbai-based Svasti Microfinance Pvt Ltd has raised 45 mln rupees from BlueOrchard Private Equity Fund for expanding its branch operations and developing loan products for low-income customers.

* REAL ESTATE: The Ministry of Housing and Urban Poverty Alleviation has sought the Ministry of Law's approval to change the Real Estate Draft Bill to central legislation. (BS)

* REGULATORY: SEBI is investigating into irregularities in several initial public offerings of the past one year that resulted in heavy losses to investors.

* RETAIL: Reliance Retail has reported total loss of 3.51 bln rupees in 2010-11 (Apr-Mar). (FC)

* TELECOM: State-owned Bharat Sanchar Nigam and MAHANAGAR TELEPHONE NIGAM may get 25-30 bln rupees subsidy from the Department of Telecommunications. (BS)

* TEXTILES: The government has extended the anti-dumping duty on import of viscose filament yarn, commonly known as viscose rayon yarn, from China till Feb 24.

STOCKS

* ACC, AMBUJA CEMENTS: Holcim Group will not merge the two companies; will explore opportunities to improve footprint, efficiency. (BL)

* ADANI POWER: Aims to double generation capacity to 3,960 MW in the current financial year and sell at least three-quarters of the electricity through long-term agreements. (ET)

* APAR INDUSTRIES: Templeton Emerging Markets Group's private equity fund, Templeton Strategic Emerging Markets Fund III has invested $17.8 mln in the company.

* ASIAN PAINTS: Is investing 10 bln rupees in phase I of its new Khandala paint unit, which it expects to commission by end of 2012-13 (Apr-Mar).

* BHARAT HEAVY ELECTRICALS: Company, five others in race for NTPC's 180-bln-rupee order for supply of boilers and turbine generators. (Mint)

* BHUSHAN STEEL: Plans to start coal production from its Australian subsidiary Bowen Energy's mines in the next three-four years. (DNA)

* CAIRN INDIA: Government defers decision on Cairn-Vedanta deal yet again; Cairn Energy expects to get mandatory approvals by May 20. (var)

* COAL INDIA: Coal minister has asked the company to make its rehabilitation and resettlement policy for land acquisition more "attractive".

* DR REDDY'S LABORATORIES: Launches neutropenia drug pegfilgrastim in India.

* ELDER PHARMACEUTICALS: Jan-Mar consolidated net profit grew 3.3% to 173.6 mln rupees while net sales increased 60% on year to 3.03 bln rupees.

* EID PARRY: Parry Nutraceuticals is expanding its over-the-counter range of nutritional supplements. (BL)

* GOLKONDA ENGINEERING: To invest 400 mln rupees in cable business.

* INDIAN OVERSEAS BANK: Has raised its BPLR by 50 bps to 14.25%.

* INDIA SECURITIES: Its board has approved allotment of shares after Madras High Court sanctioned the scheme of amalgamation of Essar Telecommunications Holdings Pvt Ltd with the company.

* IVRCL ASSETS & HOLDINGS: Has achieved financial closure for the 17.06-bln-rupee Sion-Panvel state highway project in Maharashtra, by tying up with nine banks for funds.

* JUBILANT LIFE SCIENCES: Has earmarked capital expenditure of 5 bln rupees in the current financial year, and aims to achieve additional revenues of 12 bln rupees by 2012-13 when it will start using its full capacity.

* KINGFISHER AIRLINES: Mumbai International Airport warns of putting the company on the cash-and-carry basis if it fails to clear dues worth 1.1 bln rupees by May 25. (var)

* KRBL LTD: Pegs India's 2010-11 (Apr-mar) basmati exports to have fallen 2.2% to 3.13 mln tn due to lower demand from Europe and Saudi Arabia.

* MARICO: Has ended talks to buy majority stake in Australian cookie maker Unibic Biscuits India arm. (ET)

* MARUTI SUZUKI: Will house its design centre at its 10 bln-rupee facility in Rohtak and disengage from Suzuki Motors in designing. (FC)

* MCNALLY BHARAT: Janhit Seva Trust has reduced stake in the company to 2.40% from 12.05% by selling 3 mln shares to three promoter companies.

* NTPC: The Association of Power Producers has moved the Central Electricity Regulatory Commission to seek termination of additional power purchase agreements worth 38,000 mw signed by the company. (var)

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* POWER FINANCE CORP: Says government likely to invite bids for the Tamil Nadu Ultra Mega Power Project by July-end. (FC)

* RANBAXY LABORATORIES: Jan-Mar consolidated net profit fell 68.3% on year to 3.04 bln rupees, but beats estimates.

* RELIANCE INDUSTRIES: And partner Hardy Oil and Gas Plc have relinquished

nearly 25% of the exploration area in the D9 block of Krishna-Godavari basin,

to get an extension of six months for exploring the block. (NW18)

Three top executives AN Sethuraman, Shankar Adawal, and V Balasubramanium to face trial on charges of possessing classified government documents. (PTI)

* ROYAL ORCHID HOTELS: The Supreme Court has given approval to the company to build a new hotel in Vadodara. (ToI)

* SEAMEC LTD: Reported Jan-Mar net loss of 248.8 mln rupees, compared to 287.2 mln rupee loss recorded in the same period a year ago.

* SHASUN PHARMACEUTICALS: Said its Pondicherry unit staff have resorted to an illegal strike, but did not give more details.

* SHREE RENUKA SUGARS: Jan-Mar consolidated net profit fell 73.5% on year to 594 mln rupees.

* SKS MICROFINANCE: Plans to raise 50 bln rupees in 2011-12 (Apr-Mar) through bank loans, non-convertible debentures, and securitisation of loans.

* SOBHA DEVELOPERS: FY11 net profit increased 33% to 1.8 bln rupees, net sales increased 31% to 14.5 bln rupees.

* STATE BANK OF INDIA: Has hiked deposit rates by 75-225 bps with effect from Thursday. Has also hiked Base Rate by 75 bps to 9.25% and BPLR by 75 bps to 14%.

* STATE BANK OF MYSORE: Has revised its prime lending rate by 50 bps to 14.25%, and Base Rate by 50 bps to 9.5% with effect from Wednesday.

* TRIVENI ENGINEERING: Expects its sugar output for the current season ending September to be 420,000 tn, marginally higher than last year's production of 417,000-418,000 tn.

* VISHAL RETAIL: Plans to change its name to V2 Retail Ltd and enter real estate business. (PTI)

* WALCHAND PEOPLEFIRST: Has approved 10-for-1 stock split.