Corporate News

Petroleum consultant Gaffney, Cline & Associates has confirmed the presence of oil & gas in two offshore blocks in Reliance's KG basin-D3 and D9. (BL)

Suzlon Energy has successfully renegotiated financial covenants and amended key terms of the bank loan facilities it had taken for acquiring REpower Systems AG and Hansen Transmission. (BS)

Aditya Birla Group may not buy L&T stake in Ultratech Cement. (ET)

Tata Motors may have to infuse funds to bridge JLR pension gap. (ET)

R-Power in talks with Australian mining firm BHP Billiton and Rio Tinto for setting up a coal mining joint venture. (ET)

Tata Motors has concluded an agreement for amending its bridge loan, extending the final maturity of US$1bn by 18 months upto December 31st, 2010. (BL)

JSW Steel plans to raise US$1bn via QIP and a FCCB issue. (BS)

Datacom and Sistema Shyam Teleservices have short listed Wipro, Tech Mahindra and IBM for an IT outsourcing contract worth US$150mn each. (ET)

The 1,000MW NTPC-Simhadri Unit III will be ready by Nov 2010. (BS)

SAIL plans to nearly double it capital expenditure to Rs100bn in FY10. (BL)

Satyam may downsize overseas operations and terminate lease contracts. (BL)

Aditya Birla Group Company to set up 10mn tons captive port at Chudamani. (BS)

Novartis has revised the open-offer price for its shares to Rs450 from Rs351 to buy back an additional stake of up to 39%.(BS)

Finance Ministry mulls special audit of Satyam accounts. (FE)

US FDA to review Ranbaxy corrective plan. (FE)

Government to allow UBI, Dena Bank and Bank of Maharashtra to tap market to boost their capital base. (ET)

Dewan Housing Finance Corporation (DHFL) is planning to issue non-convertible debentures (NCDs) worth up to Rs10bn in July to meet its credit disbursal targets for the current financial year. (BS)

Spice Group is diversifying into financial services with plans to start businesses which will deal with asset reconstruction, remittances, over-the-counter exchange and fixed income products. (BS)

The consortium led by GMR Infrastructure Ltd has won the 181km Hyderabad-Vijayawada highway project to be executed on a BOT basis. (BL)

Coromandel Fertilisers Ltd has signed a JV with Soquimich European Holdings BV, Netherlands, a subsidiary of SQM, Chile, for setting up 15,000 tons water soluble fertilisers plant at Kakinada in Andhra Pradesh. (BL)

Siemens Ltd plans to invest Rs2.7bn to triple capacity of its steam turbine manufacturing facility in Vadodara, Gujarat. (BL)

Religare to acquire Maharashi Housing Development Finance Corporation to foray into home finance business. (ET)

Ericsson bags order worth US$500mn from Unitech Wireless to supply and manage all network equipments for its three telecom circles. (ET)

Source: Indiainfoline.com

Intraday Trading Calls for 29th May

Stock Market India may open flat to positive but remains flat. A positive closing expected.

Today's Intraday Stock Tips / Trading Calls (Keep strict Stop Loss for Each Trade):

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
GMR INFRA	Buy Above	164.20	168.30	172.00
	Sell Below	161.70	158.40	155.00
HIND OIL EXPLO	Buy Above	137.60	142.25	148.00
	Sell Below	134.60	130.55	126.00
SELAN EXPLO	Buy Above	178.50	183.75	190.00
	Sell Below	175.35	171.55	167.00
REL POWER	Buy Above	180.75	184.65	190.00
	Sell Below	178.40	173.40	168.00
NAGARJUNA CONSTRUCT	Buy Above	127.20	131.60	136.00
	Sell Below	125.10	122.15	118.00
TATA STEEL	Buy Above	386.70	394.55	405.00
	Sell Below	379.40	371.55	362.00
SESA GOA	Buy Above	165.65	171.55	178.00
	Sell Below	163.40	159.45	155.00

Buy Selan Exploration (530075) CMP Rs. 177/- Very Short Term Target Rs. 225/-.

Keep an eye on DISH TV (532839) CMP Rs. 49/- for today.

GOOD LUCK

Market News

RIL strikes two gas reserves of estimated 20 trillion cubic feet (BS)

Axiata (formerly Telekom Malaysia) mulls open offer to raise stake in Idea (BS)

Swiss Re, the world's second-largest reinsurer, is in talks with Religare Enterprises to form a joint venture to launch a health insurance company in India. (ET)

Infosys eyes US$250mn deals from existing customer British Petroleum. (ET)

Escorts is working on restructuring plan, which includes clean-up of books, launching product and increasing margins. (ET)

Government has evolved a new subsidy-sharing formula to rescue HPCL. (ET)

Tata group is close to finalizing succession plans for Tata Motors and Tata Steel, Prakash telang to be MD of Tata Motors and HM Nerurkar to be the new MD of Tata Steel. (ET)

Tatas to raise US$1bn for the realty arm. (ET)

Cairn India to start production from its Rajasthan fields by next week. (ET)

Tata Motors to extend JLR bridge loan tenure. (ET)

Essar Oil to step up refining capacity to 1mn barrels a day. (ET)

Tata Realty and Infrastructure, a closely-held unit of Tata Sons, plans to invest Rs200bn in core sector projects (BS)

ONGC shelves plans to build a new 15mn ton refinery adjacent to its subsidiary MRPL (BS)

Novartis may revise open offer price to buy back an additional stake of up to 39% in the Indian subsidiary (BS)

GMR ties-up funds for its 1,050MW thermal power project in Orissa (BL)

Corporation Bank to raise Rs10bn in FY10 (BS)

Jaiprakash Associated Ltd receives High Court approval for merger of four group companies with itself (BS)

MRF lifts lockout at its Tamil Nadu factory (BS)

IVRCL Infra gets Rs3bn orders from the Bihar Government for construction-related work (FE)

Simplex Projects has received construction orders worth Rs4bn from various state governments (BS)

Prajay Engineering to increase its authorized share capital (BL)

Godfrey Phillips plans national roll-out (BL)

Hindustan Copper to sell concentrate after the closure of one of its two smelters (BL)

Dena Bank raises Rs1.25bn through perpetual bonds (BS)

UCO Bank has put on hold its plans to raise Rs4.5bn through a FPO (BS)

Gammon Infrastructure has bagged an order worth Rs8.6bn for Godavari Bridge Project. (FE)

Grasim Industries has suspended operation at its viscose staple fibre unit at Nagda in Madhya Pradesh till monsoons. (FE)

Source: indiainfoline.com

Intraday Trading Call for 28th May

Stock Market India may open flat to positive but remains very volatile today.

Today's Intraday Stock Tips / Trading Calls (Keep strict Stop Loss for Each Trade):

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
GMR INFRA	Buy Above	164.60	168.30	172.00
	Sell Below	162.40	159.35	155.00
CUMMINS INDIA	Buy Above	262.70	269.35	278.00
	Sell Below	258.35	253.15	245.00
CHAMBAL FERT.	Buy Above	64.20	66.65	69.00
	Sell Below	63.10	61.20	59.00
REL POWER	Buy Above	180.20	184.65	190.00
	Sell Below	177.20	173.40	168.00
OPTO CIRCUIT	Buy Above	173.55	178.45	184.00
	Sell Below	170.60	166.40	162.00
TATA STEEL	Buy Above	375.60	384.45	392.00
	Sell Below	369.40	362.55	355.00
SINTEX IND	Buy Above	226.75	232.55	238.00
	Sell Below	223.50	218.50	214.00

Short to Med Term Delivery Pick:

Buy Venus Remedies (526953) CMP Rs. 228/- Short Term Target Rs. 270-290/-.

GOOD LUCK

Intraday Trading Calls for 27th May

Stock Market India may open positive and remains positive for the day.

Today's Intraday Stock Tips / Trading Calls (Keep strict Stop Loss for Each Trade):

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
GMR INFRA	Buy Above	158.60	163.75	168.00
	Sell Below	156.40	153.10	148.00
IRB INFRA	Buy Above	136.20	141.55	146.00
	Sell Below	133.70	129.55	125.00
SELAN EXPLO	Buy Above	172.80	178.15	185.00
	Sell Below	169.40	165.10	160.00
REL POWER	Buy Above	160.25	164.50	170.00
	Sell Below	158.45	154.35	150.00
TANLA	Buy Above	80.65	84.25	88.00
	Sell Below	79.40	76.45	73.00
TATA STEEL	Buy Above	363.55	371.45	380.00
	Sell Below	358.40	352.25	345.00
TATA SPONG	Buy Above	226.75	232.55	238.00
	Sell Below	223.50	218.50	214.00

Short To Med. Term Delivery Buy:

Buy OMNITECH (532882) CMP Rs. 84/- Short Term Target Rs. 120/-.

GOOD LUCK

Intraday Trading Calls for 26th May

Stock Market India may open positive and remains positive for the day.

Today's Intraday Stock Tips / Trading Calls (Keep strict Stop Loss for Each Trade):

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
GMR INFRA	Buy Above	165.65	170.10	175.00
	Sell Below	163.45	160.20	156.00
IRB INFRA	Buy Above	142.80	148.30	154.00
	Sell Below	140.35	136.45	132.00
OMNITECH (532882)	Buy Above	90.20	93.60	98.00
	Sell Below	88.50	85.35	81.00
CINEMAX (532807)	Buy Above	65.25	68.30	72.00
	Sell Below	63.60	61.15	58.00
ALEMBIC LTD.	Buy Above	45.60	48.75	52.00
	Sell Below	43.50	41.15	39.00
TATA STEEL	Buy Above	370.75	378.45	385.00
	Sell Below	364.65	348.35	340.00
BIOCON (532523)	Buy Above	191.60	196.55	202.00
	Sell Below	189.40	185.35	180.00

Short To Med. Term Delivery Buy:

Buy GMR INFRA (532754) CMP Rs. 165/- Short Term Target Rs. 188-200/-.

GOOD LUCK

Corporate News

Areva T&D has won an order worth Rs1.1bn from the West Bengal State Electricity Transmission Company.(BL)

Crompton Greaves eyes overseas acquisition.(BL)

Cairn India will begin commercial production of oil from the Rajasthan fields by mid-2009 for which sales talks are going on.(BL)

JSL has shelved its US$1.2bn JV project with Indonesia's PT Antam TBK in the southeast Asian country.(TOI)

Bharti Airtel launches low-cost PC.(FE)

Welspun Power and Steel, which had signed the agreement to buy Vikram Ispat 11 months ago completes the takeover of the sponge iron business from Grasim Industries.(TOI)

Satyam has 10,000 excess staff, says Tech Mahindra.(TOI)

HDIL to raise $600m via QIPs.(FE)

Tata Group to invest Rs2k-cr in logistics parks.(FE)

Reliance Capital to offload 26% in its life insurance subsidiary.(FE)

Essar Energy plans to raise a debt of Rs4bn to fund its project to produce gas found on coal beds in its Raniganj block in West Bengal. (BS)

Parsvnath to raise up to Rs25bn through issuance of securities, including Qualified Institutional Placements. (BS)

Era Infra bagged a Rs810mn contract from the Central Public Works Department for development of flats in New Delhi. (BS)

Matrix Laboratories has assigned its right to purchase 1% equity in Astrix Laboratories to Mylan Luxembourg, another subsidiary of Mylan. (BS)

Reliance Retail to add 1mn sq. ft of space; will invest Rs5bn.(Mint)

Ranbaxy Laboratories Chairman, CEO and MD Malvinder Mohan Singh stepped down, within a year of its acquisition by Japanese giant Daiichi Sankyo.(DNA)

BHEL cancels all its overseas acquisitions plans.(Mint)

Tata Housing Development Company has partnered with Micro Housing Finance Corporation to provide easy housing finance to the lower income group for its housing initiative. (BS)

Reliance Infrastructure to raise up to Rs43bn through issuance of 42.9mn equity shares to its promoters. (BS)

I-T authorities have slapped a tax liability of Rs3-4bn on DLF for understatement of income and fund diversion by the company. (BS)

Unitech sells more than a quarter of its launched projects in the first two months of the financial year. (BS)

Aurobindo Pharma expands its partnership with Pfizer Inc for supply agreements of solid dosage and sterile products for a number of emerging markets. (BS)

IOC plans to set up 40 retail outlets and 25 Kisan Seva Kendras in Orissa in 2009-10. (BS)

ONGC approaches the Directorate General of Hydrocarbons seeking permission to retain the Ambe field block, located off the Gujarat coast. (BS)

Dabur to foray into premium skin care. (ET)

ONGC to help fix price of Cairn's crude from Barmer oilfield. (ET)

Reliance Industries and Essar Oil may not buy crude oil that Cairn India will start pumping from Rajasthan in the next few weeks. (ET)

Jharkhand government grants a prospecting licence to Tata Steel for the Ankua iron ore mines. (ET)

Apollo Hospitals received a notice from the Mumbai Enforcement Directorate seeking explanation on the end-use of the GDR issue. (ET)

Sobha Developers to hive off non-realty businesses.(DNA)

CESC to invest Rs80bn in two 1000MW plants.(DNA)

GMR Infrastructure plans to raise US$1bn to fund the next phase of its growth.(DNA)

Source: Indiainfoline.com

Intraday Trading Calls for 25th May

Stock Market India may open positive and remains positive for the day.

Today's Intraday Stock Tips / Trading Calls (Keep strict Stop Loss for Each Trade):

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
MAN INDUSTRIES	Buy Above	50.20	53.45	56.00
	Sell Below	48.60	46.15	44.00
STERLITE TECH	Buy Above	142.25	147.55	152.00
	Sell Below	138.50	134.35	130.00
KARNATAK BANK	Buy Above	142.60	148.15	154.00
	Sell Below	138.35	134.10	130.00
TATA METALIKS	Buy Above	105.20	110.25	116.00
	Sell Below	102.40	97.35	92.00
3i INFOTECH	Buy Above	71.25	73.65	78.00
	Sell Below	69.40	66.45	63.00
TATA STEEL	Buy Above	365.80	372.55	380.00
	Sell Below	361.40	355.35	348.00
IRB INFRA	Buy Above	136.80	141.55	147.00
	Sell Below	134.25	130.55	126.00

Short to Med. Term Delivery Buy:

Buy Indowind Energy (532894) CMP Rs. 28.55/- Short Term Target Rs. 40-45/-.

GOOD LUCK

Investment Pick: Dr.Reddy’s Laboratorie

If one looks at the fourth quarter performance of Dr.Reddy’s Laboratories for period ended 31st march 2009, on a QoQ, one would tend to believe that the company has ended the year on a positive note. A look at the standalone figures of the company for Q4FY09 indicates that QoQ, net sales rose 10% but net profit surged by a whopping 51%. On a YoY, the picture is a but more subdued. Though net sales rose 16%, net profit declined 3.7% at Rs.156.17 crore.

But the picture for the FY09 is not good. On a consolidated basis, it posted a net loss of Rs.917.24 crore for the year ended March 31, 2009 as compared to a net profit of Rs 438.1 crore for the previous corresponding year. This loss is directly attributed to its German company, which has been its profit drainer for some time now. During the year, there have been certain significant changes in the German generics market such as reference price cuts, increased presence of discount contracts, announcement of large sales tender from AOK etc. Due to these adverse market developments, the company tested its carrying value of intangibles and goodwill at the betapharm cash generating unit for impairment. The recoverable value of these intangibles was determined to be the Value-In-Use (“ViU”). The impairment testing indicated that the carrying value of certain product related intangibles was higher than its recoverable value and accordingly, the company has recorded an impairment loss with respect to such intangible assets amounting to Rs.86.24 crore. Additionally, as regards goodwill, the carrying value of the betapharm CGU was also higher than the recoverable amount resulting in a goodwill impairment of Rs.1376.60 crore. The company has stated that this is a one-time non-cash charge in the income statement and incorporates the provisions of applicable accounting standards.

Consolidated net sales for FY09 was up 38% at Rs.6790.37 crore. And this surge was mainly on account of launch of the authorized generic version of GlaxoSmithKline’s Imitrex in late November 2008. Growth in North America and Russia also helped the sales. Revenue from global generics business was at Rs.4,980 crore in FY09, up 51%. Revenues from pharmaceutical services and active ingredients increased by 13% to Rs.1,880 crore.

The company spent Rs.409.27 crore on R&D during the year, up 19% over FY08 R&D spend. During the year, the company launched 116 new generic products, filed 110 new generic product registrations and filed 55 DMFs globally.
The company does not foresee any more such write-offs in the future; this was just a one-time blip. It remains a fundamentally good stock; one can accumulate for long term at every decline.

Source: www.premiuminvestment.com (by S P Tulsian)

Corporate News

Infosys plans to raise US headcount by adding 1,000 employees in next 12-18 months. (BS)

Tata Motors to raise US$1bn through ECBs. (BS)

Bajaj Auto and Renault's plans to launch a small car might be delayed owing to branding issues. (ET)

Bajaj Auto to launch low cost car by 2011. (BS)

A division bench of Madras High Court has ruled that the TVS Motors can manufacture and market 125cc Flame in its original form. (ET)

Cairn India to sell Rajasthan crude at a discount of about US$16/bbl to the grade of ONGC's Mumbai High crude oil. (BS)

Maruti Suzuki's share in Suzuki Motor Corp's revenues has risen to 46% in FY09 from 30% in FY08, which will enable Maruti to get more freedom to take key decisions. (ET)

Tata Steel gets nod for Ankua iron ore mine. (FE)

Tata Power has been asked to provide fixed asset as collateral to hedge a Rs80bn foreign exchange loan. (BS)

HCL Tech signs a global outsourcing deal with MTV Networks to develop and support its online media platforms. (ET)

ICICI Bank gets more time to deposit guarantee amount for Maytas' highway project in Tamil Nadu. (ET)

Bharti Airtel to launch sub-Rs8,000 online computers powered by Microsoft and Nivio. (BS)

Reliance Power to invest Rs120bn in Arunachal Pradesh for executing 2,520MW hydro power projects in the next five years. (FE)

Reliance Capital is planning to list Reliance Life Insurance by divesting 26% in the company. (ET)

DLF is close to sell off its subsidiary DLF Wind Power to French Company Eole-Res for Rs10bn. (FE)

Dr Reddy's is moving all its drug R&D assets to its wholly-owned subsidiary Aurigene, effective July 1. (BS)

Ranbaxy acquires entire range of skin care and lifestyle products of Ochoa Labs. (BS)

Patel Engineering has bagged an order worth Rs7bn. (BS)

Bata India plans to open 240 stores in three years. (ET)

The Enforcement Directorate has sent a notice to Apollo Hospitals on charges of possible FEMA violations. (ET)

Areva T&D bags order to build a 400KV sub-station at Kharagpur. (BS)

Parsvnath to invest Rs1.3bn in developing an IT park in Gurgaon. (BS)

MRF to shift tyre production temporarily from its facility in Tamil Nadu to its Medak factory in Andhra Pradesh. (BS)

Coal India may raise prices to offset wage pressure. (BS)

MMTC to import 12.5mn tons of coal for NTPC. (BS)

Opto Circuits gets approval to sell its products in Brazil. (BL)

Pfizer has acquired rights to 60 products of Aurobindo Pharma. (BL)

Source: indiainfoline.com