25 March 2010 Morning Market Updates

March 2010 Morning Updates 08:57
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Today market will open slightly negative but chances to recover immediately.As today is the expiry of March contracts in derivative segment, there is a possibility of volatility.
Recommendations :
Follow Buy calls in improving market trend and v.v.
Buy Aptecht above 174 close sl 169 Target 183
Buy ONGC above 1080 sl 1064 Target 1096
Buy Powergrid above 109 sl 107 Target 112
Buy Glenmark above 248 sl 241 Target 259

Book profits in short M&M Ref.22/03 Trail sl 1068 T3 1028
Hold Short DLF Ref.23/03 Trail sl 305 T3 289
Hold Short ICICIBank Ref.23/03
IDFC Ref.23/03 Trail sl 161 T3 155
Sell Wipro sl 724 Target 712
Sell Herohonda below 1905
Sell Hindalco below 168 sl 172 Target 162
Sell JPAssociat below 146 sl 149 Target 143 / 141
Sell Jisljaleqs below 936 sl 950 Target 914 Positional
Sell Sail below 237
Sell Sesagoa below 441
Stocks in News :
Zain board approves sale of African assets to Bharti: Agencies
Due diligence on Zain asset sale to Bharti complete
Zain asset sale to Bharti to be signed in next few days
-Documentation process for deal underway
-Will take a few days to close deal
-Bharti formal announcement expected on Thursday
-Bharti ties up financing for acquisition of Zain Africa BV
-Entire financing of USD 8.3 billion for Zain successfully tied-up
-Financing over-subscribed
-Major international banks to underwrite total amount
Tech Mahindra – AT&T deal
AT&T International buys 8.07% in Tech Mahindra via off-market transaction
Had board 'observer' without voting rights in Tech Mah in the past
Agreed accomplishing objective not dependent on board representative
Cannot comment on hiking stake in Tech Mahindra
-AT&T management exercised this option as per 2005 agreement
-USD 35 million will be spread between Tech Mahindra & BT
-Deal occurred on account of expiry of agreement
-Exposure with AT&T will increase in next few months
-AT&T will not have board representation on Tech Mah board
-No other such option agreements with other clients
IPO Updates :
Goenka Diamond (closes tomorrow)
-Total subscription at 1.65 times (X)
-QIB 1.06X, NII at 7.36X, retail 0.036X
Intrasoft Technologies (closes tomorrow)
-Total subscription at 0.57 X
-QIB at 0.88X, NII at 0.72X, retail 0.048X
NTPC setting up 1,000 mw merchant power capacity
-Power secy says: govt priority towards covering power deficit
-Company eligible under electricity act to sell merchant power
-To pursue merchant power sale plan with govt
Alok industries
-Raises Rs 400 crore via QIP issue; Issue priced at Rs 23.32/share
-Alok industries was looking to raise between Rs 350-460 crore
-Proceeds to be used for debt repayment, capacity utilisation
Kingfisher airlines
-To more than double fleet strength
-Deliveries of new aircraft expected to start from 2012
-Finance Ministry rules out rolling back service tax on airline travel
-Praful Patel met from last to ask for roll back: sources
10% service tax imposed on air travel in budget 2010-11
From the Oil Ministry ;
-Euro-IV petrol to cost oil companies 41 paise/litre more
-Euro-IV diesel to cost oil companies 26 paise/litre more
-See FY11 fuel sale revenue loss at Rs 7,000 crore
-Necessary to take hard decisions on fuel prices
-FY10 fuel sale revenue loss seen at Rs 45,000 crore
-PSUs to invest Rs 14,000 crore/year on refinery upgrade
Indage Vintners:
-HC has granted a stay of 15 days while considering the petition of winding up filed by a few creditors
-To submit payment schedule post CDR
-Likely to discuss CDR on March 26
Payment schedule relates to unpaid employees, lenders
Piramal Health :
-I-pill to fit in strategically in company's OTC vertical
-Evaluating market strategies for i-pill
-I-pill to continue to be market leader in contraceptive space
-Existing distribution channel will help grow i-pill brand
-Company scouting for more acquisitions in OTC segment
Dr Reddys Labs (DRL) update:
-Albany Molecular Research & Sanofi Aventis US Unit seeking preliminary injunction to block Dr Reddy’s from selling generic version of Allegra D
-In September AMRI sued DRL saying the generic infringed patents relating to the manufacturing process of the drug
Board meetings today:
-AstraZeneca - consider a proposal for augmenting the Company's existing manufacturing facility.
-BSEL Infra - analyse scheme of Demerger of various segments like hospitality & international projects
-Henkel India – results
-Channel Guide - consider issue of QIB
-Birla Power - Raising of funds by issue of GDRs/ADRs/FCCBs (CMP Rs 3.5)
Other stocks and sectors that are in news today:
-Power Grid plans FPO in September.
-Unitech under ED lens over 2G licences.
-Apollo Hospitals to add 2,000 beds by 2010-11 – PTI
-Bayer drags Cipla to court over Patent infringement of cancer drug – ET
-Bosch settles wage dispute at Bangalore plans
F&O cues:

Total Futures Open Int up by Rs 1731 crore
Total Options Open Int down by 1168 crore
Nifty up 0.4%, total Nifty Open Int up 9%
Stock Futures shed 1.25 crore shares in Open Int
Nifty Open Int PCR unchanged at 1.67
Nifty Put sheds 13.3 lakh shares in Open Int
Nifty Call sheds 7.5 lakh shares in Open Int
Nifty April 5000 Put add 7.2 lakh shares in Open Int
Nifty April 5200 Put add 6 lakh shares in Open Int
Nifty April 5300 Call add 4.2 lakh shares in Open Int
Nifty April 5400 Call adds 3.5 lakh shares in Open Int
FIIs in F&O on March 23
Net buy Rs 579 crore in Nifty Futures
Nifty Futures Open Int up by 1,10,378 contracts
Net sell Rs 79 crore in Nifty Options
Nifty Options Open Int up by 31234 contracts
Net sell Rs 101 crore in Stock Futures
Stock Futures Open Int up by 1472 contracts
Market cues:

FIIs were net buyers of USD 59.5 million in equities on March 22
NSE F&O Open Int was up by Rs 562 crore at Rs 1,33,084 crore
As per provisional data of March 23, FIIs were net buyers of Rs 360 crore, while DIIs were net sellers of Rs 73.4 crore in cash markets. FIIs were net buyers of Rs 392 crore in F&O.
US Market Updates :
Yesterday,Dow Jones closed more than 50 points lower at 10,836, the S&P 500 shut shop at 1,168, while the Nasdaq closed at around 2400. Volatility spiked with the VIX surging more than 7% in its sharpest hike since February. Volume was once again light, with declines outpacing the advances.

The US stocks snapped a two-day winning streak after Fitch cut its rating on Portugal by one notch and warned that another downgrade could be on the way.
P&G, Verizon and Merck were the biggest percentage decliners on the Dow while bank stocks like Bank of America and Citigroup were the only gainers among 10 key S&P sector indexes.
 

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