Stock in News

Moody's downgrades outlook on Tata Steel from stable to negative.

Anant Raj Industries plans to set-up 16 hotels in four and five-star category in NCR by 2010.

Educomp acquires 70.5% stake in a Canada-based e-learning company Savvica.

Pantaloon Retail receives shareholders approval to raise Rs12.6bn.

Hotel Leelaventure has earmarked Rs22bn in next three years for developing hotels.

DLF Assets, a privately held company promoted by DLF promoters, plans to raise US$2bn in Singapore through listing as a Real Estate Investment Trust.

Maruti Suzuki India is planning to set up JV with Japanese component Futaba Industrial Company for making exhaust system components for its cars.

GAIL plans to borrow Rs70bn in the next four years to partially fund its capex.

BPCL plans to submit a US$350mn non-binding bid to acquire 10% in a Congo oil field.

Gati has postponed the launch of its dedicated freighter service from its original plan of Sept 15 to mid October.

Crompton Greaves has won bid to distribute and bill power in three major divisions in Nagpur.

Aditya Birla Nuvo expects revenues of Rs17bn from its textiles and garments businesses in the current fiscal.

PSL has bagged $17mn contract from UK based Fusion Provida.

SBI is likely to merge its seven associate banks with itself by March 2009.

Orient Express Hotels has rejected Tata Group’s offer to forge a strategic alliance.

IOC is eyeing an annual turnover of Rs20bn from non-fuel retail in next five years.

Kirloskar Brothers is planning to buy a steel casting company to strengthen core operations.

ITC is planning to set up a third food factory in Bangalore.

Trent is scouting for partnerships with premium apparel brands.

Hikal Technologies, a 100% subsidiary of Hikal, is setting up a contract research and development facility at the International Biotech Park in Hinjhewadi, Pune.

Fund Activity:

FIIs were net buyers of Rs233.8mn (provisional) in the cash segment on Tuesday and the local institutions pulled out Rs2.33bn. In the F&O segment, foreign funds were net sellers of Rs5.47bn.

On Monday, FIIs were net sellers to the tune of Rs2.67bn in the cash segment. Mutual Funds were net sellers of Rs2.04bn on the same day.

Stock News

On a larger front……….
Goldman Sachs & Co initiated coverage on the country's steel industry and gave it an “attractive” rating. The report said that the access to high-quality, low-cost iron ore reserves offers Indian steel companies an edge over regional and global peers. It also said that the robust steel prices will be sustained as demand momentum remains buoyant enabling global steel producers to pass on the costs from tight raw material and freight markets.

HSBC Holdings Plc raised its ratings on India to “overweight” from “underweight” meaning that investors should hold more of the nation's stocks than the representation in the benchmark indices. The report stated that India offers the lowest earnings volatility in global emerging markets, a number of interesting structural growth stories like consumption, infrastructure, telecommunications and service outsourcing. It also said that the economy should be fairly resilient to a US slowdown.
The Centre for Monitoring the Indian Economy (CMIE) raised its GDP forecast for FY08, from 9% to 9.1%. The RBI and government are confident of an 8.5% growth.

Index changes…
Indian Petrochemicals Ltd (IPCL) will be amalgamated with RIL. Hence, from October 5, 2007, there will be changes in the indices on which it is included.

Nifty: IPCL will be replaced by realty firm Unitech.

BSE 100 / BSE 200: IPCL will be replaced by realty firm DLF Ltd.

BSE 500: Sun Pharma Advanced Research Co Ltd to replace IPCL

Company specific …………
RIL was in the news. It secured government approval to sell natural gas. It is also the world's largest polyester maker and this week expectations were high that the acquisition of the assets of Malaysian-yarn maker Hualon Corp will help boost fabric exports.

ABG Shipyard, the country's biggest shipbuilder outside government control, said it plans to add four dockyards to repair vessels as demand for sea transport increases.

SBI plans to raise Rs 10,000 crore in a share sale this year but is yet to decide on whether to sell stock to the public or target only existing investors.

Indian construction company Gammon India faces criminal charges after an overpass being built by it in Hyderabad collapsed.

L&T said it won a Rs 762 crore order jointly with Germany's Outotec GmbH.

The state-run electric power transmission company Power Grid Corporation of India, witnessed a stupendous response to its IPO. The issue is aimed at meeting the capital requirements for the implementation of 15 identified transmission projects and for general corporate purposes.

Diamond Cables announced that they have secured orders for 2750 transformers.

IPCA Labs announced that it has acquired Australian Dossier Registration Company.

Dr Reddy's Lab announced that they have received USFDA approval for Ranitidine (Zantac).

Lupin announced that they have won Ramipril product patent challenge at the Federal circuit.

BPCL and Videocon Industries Ltd are to acquire a stake in a Brazilian oil exploration company owned by Canada's EnCana Corp.

Reports stated that Essel Propack (Indian maker of laminated tubes and packaging) plans to buy the packaging unit of Alcan Inc.

Tata Steel is supposed to be setting up a 5mn-tonne steel plant in South Africa.

Alchemist announced that they would acquire a majority stake in Kaiser Hospital.

Idea Cellular's board approved a plan to put its wireless towers and other infrastructure into a separate company.

Rallis (agrochemicals company belonging to the Tata group) plans to bid for Japan's Arysta LifeScience Corporation.

Cairn announced that it has secured government approval to build a pipeline.

Bharti Airtel secured a license from Singapore to offer global connectivity.

Reliance Communication announced that they have started blackberry Service in India.

Stocks in news: BPCL, Glenmark, Havells India, Anant Raj

Arihant Foundations to list today

Board meetings:

BPCL and Glenmark on interim dividend
Hazoor Media results
Havells India on QIP/FCCB/ADR/GDR issue

Hutch update:
3 bids and 1 new expression of Int have come for Hutch Essar: Srcs
Bids are said to be from RCL, Vodafone and Maxis: Srcs
Expression of interest is said to be from Qatar Telecom: Srcs
Bids are said to have come in at USD 16-18 billion valuation: Srcs
Sources close to potential bidders deny that bids have been made
Vodafone sources:
Looking at Hutch-Essar acquisition in cash: Vodafone Sources
Have cash in hand, other options available: Vodafone Sources
No need to issue any fresh shares to fund transaction: Vodafone sources
No decision yet on Bharti exit/dilution: Vodafone Sources
Sunil Mittal:
Vodafone has informed us of interest in Hutch-Essar: Sunil Mittal
Bharti awaiting further developments: Sunil Mittal
Yes Bank ups PLR by 50 bps to 13%
PNB may raise corporate lending rates, term deposit rates by 25-75 bps – ET
OBC hikes PLR by 25 bps to 11.75%
BoI raises deposit rates by 25-50 bps across maturities – ET
ONGC strikes oil in Assam – ET Sat (Different from the last 2 gas find)
Actis initiates talks to offload its stake in Punjab Tractors, Durbans likley contenders – BL
NSE bars fresh F&O positions in Parsvnath as 95% of marketwide limit reached (NDTV already in curb)
FIIs can now buy further shares of Anant Raj Industries as holding falls below 24% caution limit
S Kumars board meet on December 30 to consider:
Issue of shares / convertible debentures to promoters via private placement
Demerger of retailing business
NTPC:
Forms JV co Aravali Power
Haryana Power Generation to hold 25% in JV
Indraprastha Power Generation to hold 25%
NTPC owns balance 50%
JV to set up 1500 mw coal based power plant Haryana
RBI approves 26% FDI, 23% FII investment in stock exchanges, depositories
IOC to pay 60% interim dividend for FY07
Reliance to begin oil production from D6 by early 2008: PTI
ONGC wins stake in Libyan block: BL Tues
ONGC Videsh to hold 28% in 1 well, Exxon Mobil 22.3% in 4 wells and Inpex 12.9% in 3 wells: BL Tues
BHEL in talks with US, European nuclear cos, may form JV; invest Rs 500 crore (Rs 5 billon) to expand facilities: BL Tues
Infosys in talks with 10 global banks for Finacle: BL Tuesday
NTPC to get 74% equity in railways captive power unit: DNA Tuesday
Advance Tax: DLF pays Rs 132 crore (Rs 1.32 billion), Parsvnath pays Rs 51 crore (Rs 510 million)
ITC to invest Rs 1540 crore (Rs 15.40 billion) into paper business: DNA Tuesday
Indian Bank’s Rs 800-900 crore IPO to hit the market in January
Some PSU banks considering revoking loans already sanctioned to real estate cos – BS
Railway ministry finalises modalities for opening container traffic to private players – BS
Indo-Asian Fusegear eyeing US acquisition in the range of Rs 100-150 crore – BS
Government moves cabinet note seeking exempting FII investment in real estate IPOs from FDI norms – ET
Government may unwrap uniform excise duty on textiles at 4% - ET
Bilpower close to acquiring power transformer co for Rs 150 crore – DNA
Pioneer Embroideries to enter lingerie segment in first quarter of next year – BL
Kale Consultants bags Portugal airline deal – BL