Morning Murmur - May 29 2007

Markets opened with a flourish Monday but lost momentum in the afternoon. The strength in the rupee spooked the IT stocks. Apparent intervention by the banks to shore up the dollar did result in Rupee depreciation but that failed to lift the
IT stocks back to the morning levels. The current settlement seems to have run into a wall of 4300 level in the Nifty. The markets are likely to consolidate in the 4200-4300 region. The Rupee-dollar gyrations will be the key driving factor for the markets. We do not advice rolling over to the existing settlement at this point of time.

HONGKONG AUTHORITIES WORRIED

The Hong Kong Monetary Authority, the Chinese territory's de facto central bank, added its voice to the growing chorus of concern about the risk of an asset bubble in China. "Excess liquidity may help create an asset-price bubble in China. The situation is worrying," the monetary authority said in a document it sent to the Legislative Council ahead of a meeting with legislators next week.
The HKMA said while Hong Kong may be affected by fluctuations in the Chinese economy caused by monetary tightening, it believes Hong Kong can withstand the impact on its economy and consumer prices.

DEAL POSSIBILITIES BUOYA AVAYA
Telecommunications-equipment maker Avaya Inc, in the US, is in talks with private-equity and strategic bidders about selling part or all of the company, according to people familiar with the matter, the latest sign that there could be a new round of mergers and acquisitions in the telecommunicationsequipment industry.
The Indian stock hit the upper circuit of 20% on this news.

After Market Hours

Elder Pharmac has entered into an agreement with Cymbiotics of USA for in-licensing arrangement for marketing of their pharmaceutical formulations for Diabetes, Chronic Pain, Skin Care, etc. Rico Auto and Zhejiang Jinfei Co. of China have signed a joint venture agreement for establishing joint venture company in India to manufacture Aluminium Alloy Wheels for two wheelers.
SEBI banned promoters of Adani Group from dealing in stock markets for two years for their involvement in Ketan Parekh securities scam. TCS announces formation of TCS Financial Solutions, a new strategic business unit to consolidate its
financial products business.

During Market Hours

Bharati Shipyard secured an order worth Rs 418 crore for supply of two platform supply vessels from Germany's Man Ferrostaal AG.
Cambridge Technology board approved the acquisition of US based ComCreation Inc. for US $ 3.5 million. Crompton Greaves to acquire Ireland-based Microsol Holdings for an enterprise value of around 10.50 million euro (over Rs 57 crore).
Era Constructions board approved to Issue 55 lakh warrants convertible into equal number of Equity Shares on preferential basis to the Promoter Group and Non Promoter Group.
Glenmark Pharma Swiss subsidiary Glenmark Pharmaceuticals S.A. (GPSA),has completed Phase I clinical trials for GRC 6211 in Europe. GRC 6211 is its lead Vanniloid Receptor (VR1) antagonist compound for a range of pain indications like naturopathic pain, osteoarthritis and urinary incontinence.
Hindustan Zinc cuts zinc prices by Rs 6,600/t to Rs 171300
ICI India has recommended to buy-back its own shares at a price not exceeding Rs 575 per share from minority shareholders through market operations.
Jain Irrigation has signed definitive agreements through a wholly owned subsidiary in Netherlands to acquire 50.01 % of the share capital of Na'anDan Irrigation Systems, Israel for US $ 21.5 mn.

Modison Metals Board to meet on June 04, 2007 to consider stock split.

Northgate Technologies board approves 1:1 Bonus Issue.

OM Metals Infraprojects Board approved to sell/dispose off the shares held by the Company in JV

Companies to a newly incorporated 100% subsidiary & to Hikes FII limit to 49 %.

Omax Auto board approved selling a part of its stake in subsidiary Omax Steels Ltd.