Corporate News

Private equity giant Kohlberg Kravis Roberts and Diageo likely to acquire 10% & 14.99%, respectively in United Sprits. (ET)

Amtek Auto has entered into Rs1bn JV (50:50) with Sumitomo Metals, which is part of Sumitomo Corporation of Japan. (ET)

Apollo Tyres has acquired Dutch tyre maker Vredestein Banden for an undisclosed sum. (ET)

Madras HC allows TVS to use Bajaj's patented technology. (BS)

The Tiruchirappalli unit of BHEL has asked its subcontractors to increase their capacity to 50% from the current 32% in order to achieve a turnover of Rs100bn for FY10. (BS)

Indiabulls Real Estate plans to raise US$600mn through qualified institutional placement of equity shares. (ET)

ONGC to float new tender for cancelled rig contract. (BS)

M&M workers call off a 15-day-long 'tool down' strike at Satpur plant in Nashik. (ET)

Maytas Infra wants IL&FS to increase its stake in the Hyderabad Metro Rail Project. (FE)

Coal India board has cleared the draft agreement for the proposed fuel supply agreement with NTPC and other power utilities. (FE)

KS Oils plans to raise Rs4.5bn from a PE companies and promoters. (ET)

Aditya Birla Nuvo will allot 18.5mn convertible warrants to its promoters for Rs10bn. (ET)

MRF has declared lockout at its Arakonam plant in Tamil Nadu, effective from May 17, 2009. (FE)

Tata Motors will give performance-linked wage hikes to its employees in FY10. (BL)

The Switzerland based Oetiker Group, a supplier of clamps for Tata Nano has set up a unit in Patalganga near Mumbai. (FE)

Source: Indiainfoline.com

Intraday Trading Calls for 19th May

Stock Market India may open positive but some profit booking can be seen at higher levels.

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

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
ITI	Buy Above	30.10	33.15	36.00
	Sell Below	28.70	26.25	24.00
GMR INFRA	Buy Above	137.80	142.15	146.00
	Sell Below	135.40	131.20	126.00
EKC	Buy Above	166.40	171.35	175.00
	Sell Below	164.20	160.15	155.00
CAIRN INDIA	Buy Above	217.50	222.45	228.00
	Sell Below	214.35	209.65	205.00
CORE PROJECT	Buy Above	117.50	121.35	126.00
	Sell Below	114.70	110.35	106.00
HMT	Buy Above	53.25	56.15	60.00
	Sell Below	51.70	48.35	45.00
NTPC	Buy Above	211.60	216.75	222.00
	Sell Below	209.40	205.35	200.00

GOOD LUCK

Stock Idea: PFC

A Navaratna PSU, Power Finance Corporation (PFC) reported a steady growth in its standalone net profit for the second quarter ended September 2008. During the quarter, the profit of the company rose 16.69% to Rs.329.33 crore. Operating income for the quarter rose 29.12% to Rs.1584.98 crore, while total income for the quarter rose 30.51% to Rs.1602.11 crore, when compared with the prior year period. The company posted EPS of Rs.2.87 during the quarter, registering 16.67% growth over prior year period.

Net Profit for the current quarter was impacted by exchange loss of Rs.86.06 crore and it also received an income Tax refund of Rs.27.87 crore

PFC had tapped the primary market in 2007 with a Rs.997.19 crore issue. It was priced at Rs85 per share and got listed at Rs.113. Today it is quoted at around Rs.170 levels, which continues to remain a very good deal for the original shareholders even now, even in this market.

The company has plans to raise Rs.300- Rs.400 crore through a bond issue with a green shoe option. This was to have happened in November 08' but it yet to see the light of the day, obviously the market conditions is making PFC do a rethink.

PFC is the dominant investor in the country's power sector, funding about 20% of the projects. PFC has been designated as a nodal agency by the union government for facilitating the development of UMPPs and with six more UMPPs to go, PFC seems to have its work all chalked out! Power is one of the sectors which is expected to get the maximum impetus and irrespective of any slowdown or inflation, the growth of this sector will continue relentlessly. PFC remains a good stock in the portfolio.

Source: www.premiuminvestments.in (By S P Tulsian)