RBS: News headlines -India Morning Meeting Notes | 17 M arch 2011

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News headlines
Oil & Gas
􀀟 Cairn, Vedanta may extend April 15 deadline for deal (Economic Times)
􀀟 Oil above $98 amid Mideast clashes, Japan crisis (Economic Times)
􀀟 Reliance Inds margins may rise after Japan quake – Emkay (Economic Times)
􀀟 India seeks 36% hike in oil supplies from Nigeria (Economic Times)
􀀟 Essar eyes Shell's stake in 4 Nigerian oil fields (Economic Times)
Banks
􀀟 HDFC sole Indian firm among world's most ethical companies (Economic Times)
􀀟 SKS Microfinance to explore banks for funds (Economic Times)
􀀟 Banking Licence norms still some time away as panel to look into RBI draft (Economic Times)
Pharma
􀀟 Wockhardt, Biocon allowed to raise Insulin prices by 18% (Economic Times)
􀀟 Hindustan Antibiotics to invest Rs4mn to double IVF capacity (Economic Times)
􀀟 India makes strong pitch for pharma exports to China (Economic Times)
Commodity
􀀟 Hind Zinc pays Rs9.95bn as advance tax (Economic Times)
􀀟 Cairn head says sees Vedanta deal done by April 15 (Economic Times)
􀀟 Tata Steel plans Rs15bn perpetual bond sale (Business Standard)
Consumer
􀀟 Jyothy Lab acquires 15% stake in Henkel (Economic Times)
􀀟 P&G cuts sanitary napkins, diapers prices (Economic Times)
􀀟 Nestle to selectively hike price and cut weight of chocolates (Economic Times)
􀀟 High amount of lead in Indian paints: Scindia (Economic Times)
Retail/ Real Estate
􀀟 Parsvnath Developers to sell stake in SPV to PE fund for over Rs1bn-1.5bn (Economic
Times)
IT & Telecom
􀀟 Telecom: Lower penetration may affect new services (Economic Times)
􀀟 Security agencies unsatisfied with RIM's interception solution (Economic Times)
􀀟 Vodafone launches 3G services in Uttar Pradesh (Economic Times)
􀀟 Spectrum burden not more than 1% of revenue: Trai (Economic Times)
􀀟 Idea, BSNL, Etisalat subscribers face maximum call drops: Govt (Economic Times)
􀀟 Telecom gear makers to feel Japan supply squeeze (Economic Times)
􀀟 GPS systems increasingly vulnerable to jamming (Economic Times)
Power, engineering & infrastructure
􀀟 Coal India negotiating long-term contracts to rein in price volatility (Economic Times)
􀀟 Orissa blames Centre for rising cost of thermal power, to become power surplus by 2012
(Economic Times)
􀀟 GEI Industrial wins Rs450mn orders (Economic Times)
􀀟 GMR, GVK, JSW in race for Rs30bn Tadadi port (Business Standard)

􀀟 Siemens ups presence in Metro rail projects (Business Standard)
Automobiles
􀀟 BMW raises capacity at Chennai unit (Economic Times)
􀀟 Hero's new identity costs Rs1bn; new name and logo on products (Economic Times)
􀀟 TVS plans India's cheapest motorcycle (Business Standard)
􀀟 Hero Honda promoters raise Rs2bn by pledging shares (Business Standard)
􀀟 Toyota Kirloskar will invest Rs3bn to ramp up production (Business Standard)

FII DERIVATIVES STATISTICS FOR 17-Mar-2011

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FII DERIVATIVES STATISTICS FOR 17-Mar-2011
	BUY		SELL		OPEN INTEREST AT THE END OF THE DAY
	No. of contracts	Amt in Crores	No. of contracts	Amt in Crores	No. of contracts	Amt in Crores
INDEX FUTURES	57746	1583.89	78422	2149.59	467900	12783.60	-565.70
INDEX OPTIONS	220650	5947.32	193743	5263.10	1900461	51755.42	684.23
STOCK FUTURES	40525	1071.85	46754	1247.46	1130759	27703.04	-175.61
STOCK OPTIONS	12288	333.65	10196	279.98	42509	1121.50	53.66
						Total	-3.42

 

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News Update: Kotak Sec, : March 17, 2011

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Economy News
4 The banking sector is bracing itself for a rate hike of 25 basis points in the
mid-quarter review of the RBI scheduled for Thursday. The RBI has so far
hiked rates seven times during the last one year and pushed its repo rate
(the rate at which it provides liquidity to banks) to 6.5%. (BL)
4 All special economic zones (SEZs) cleared when Kamal Nath was
commerce minister have come under the finance ministry scanner. Apart
from the tax issues, the finance ministry is looking into whether the
approvals meet all policy parameters or not. Officials said a large number
of big SEZs were cleared during this period, including those belonging to
the Adani group, Reliance, GMR and GVK. (BS)
4 Exports of Indian teas to Egypt remain almost suspended ever since the
outbreak of political crisis in the North African nation, negatively
affecting the tea shipments from the country, according to export
sources. The current turmoil in other north African and Gulf countries
such as Libya and Yemen is also impacting indirectly the Indian tea
shipments, according to the trade sources and the Upasi. (BL)

FII & DII trading activity on NSE and BSE as on 17-Mar-2011

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FII trading activity on NSE and BSE on Capital Market Segment

The following is combined FII trading data across NSE and BSE collated on the basis of trades executed by FIIs on 17-Mar-2011.

FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores) Category Date Buy Value Sell Value Net Value FII 17-Mar-2011 1546.32 2674.93 -1128.61

Domestic Institutional Investors trading activity on NSE and BSE on Capital Market Segment

The following is combined Domestic Institutional Investors trading data across NSE and BSE collated on the basis of trades executed by Banks, DFIs, Insurance, MFs and New Pension System on 17-Mar-2011.

DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores) Category Date Buy Value Sell Value Net Value DII 17-Mar-2011 1044.93 612.86 432.07

 

 

 

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State Assembly Elections - ballot battle: vote for change likely : Edelweiss

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Four states and one Union Territory (UT) are up for assembly polls in April 2011. The Congress Party (in alliance with other parties) is in power in Tamil Nadu, Assam, and Puducherry, while Left parties are in the saddle in West Bengal and Kerala. The main opposition party at the center—BJP—however, has little presence in these states. Together, these four states and one UT contribute a significant 116 seats to the Lok Sabha and, therefore, the election outcome in these states will be crucial in shaping trends in general elections in 2014. 

n  Anti-incumbency factor seen in major states

In most states, the anti-incumbency factor is significant, which is in contrast with the previous assembly elections in Bihar, Orissa, and Gujarat where incumbents were reelected with resounding victory. Historically, Tamil Nadu and Kerala have seen two major parties forming the government alternately. In West Bengal, where the Left Front is in power for the past 33 years, anti-incumbency is a major factor this time. Accordingly, the Congress with its allies is likely to form government in Kerala and West Bengal and lose power in Tamil Nadu; however, in Assam and Puducherry it is likely to retain power. What is important to note is that the Congress forming government in four out of five assemblies cannot necessarily be attributed to its appeal, but could be a result of anti-incumbency (e.g. Kerala) or strong performance by its ally (e.g. West Bengal).

n  Litmus test for Congress on inflation, governance issues

The Congress-led UPA government at the Center has drawn flak on issues like corruption, persistent inflation, and lack of strong leadership, which has negatively impacted the party’s image. In this context, the upcoming state elections, the first since these problems surfaced, will be a gauge of how accountable voters hold the Congress Party for poor governance. Opinion polls in some of the states suggest that issues of persistent inflation and corruption are high on the minds of voters.

n  Left Front could weaken further

Elections, particularly in West Bengal and Kerala, will be crucial for the Left Front, as it has always enjoyed strong presence in these states and is currently in power there. In fact, the Left’s influence over national politics largely emanates from its strong political base in these two states, which together contribute 81 seats to the Lok Sabha.  However, prospects of the Left Front look weak in the forthcoming state elections. In West Bengal, multiple failures (Nandigram, Singur) have hurt the Left Front, while in Kerala uncertainty regarding the leadership and anti-incumbency factors will go against Left parties. Ergo, the likelihood of the Left Front losing ground is high.

In the forthcoming state elections, while Congress would be tested on the issues of corruption and governance; it (along with its allies) is likely to retain power in Assam and Puducherry and gain power in West Bengal and Kerala (at the cost of Left Front). The likely weakening of Left Front would in turn weaken the Left parties-led Third Front at the center. Overall, the assembly elections, most likely, would only strengthen the Congress-led UPA alliance at the center.

RBI raises policy rates; acknowledges emerging risks to growth: Edelweiss,

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The Reserve Bank of India (RBI) raised both repo and reverse repo rates by 25bps each to 6.75% and 5.75%, respectively, in its mid quarter policy review today. The policy statement was sufficiently hawkish, emphasising inflation as the the central bank’s dominant concern. Nonetheless, the policy dilemma of weakening growth and rising inflation was well reflected in the statement. The inflation pressures are becoming broad-based as reflected in the rise in almost all categories of core inflation whereas growth momentum in the economy has dipped due to slowing investment growth. Now, since the policy rates are already higher than neutral rates, further tightening will further hurt investment growth. Hence, any increase in rates may come at the expense of growth. Nonetheless, given the inflationary pressures, RBI is likely to persist with its current anti-inflationary stance. We expect further rate hikes of 50bps in the current calender year.

INDIAN HOTELS -Selling minority stake in the subsidiary: A positive : Edelweiss

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Roots Corporation, a wholly owned subsidiary of Indian Hotels (IHCL), has approved
the investment of INR 1.5 bn in tranches for acquiring equity stake in it by Omega TC
Holdings (Omega), a private limited company incorporated under the laws of
Singapore.

Infinite Computers Solutions: Well Poised for future revenue and earnings growth, Valuations attractive: B P EQUITIES

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Company Overview
Infinite Computers Solutions (India) Ltd is a global service provider of Infrastructure Management
Services (IMS), Intellectual Property (IP) based Leveraged Solutions, and Application Development
& Maintenance (ADM) services, primarily focused on few large clients across Telecom, Media, Technology,
Manufacturing, Energy & Utilities and Healthcare verticals.

NSE, Bulk deals, 17-Mar-2011

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Symbol	Security Name	Client Name	Buy / Sell	Quantity Traded	Wght. Avg.  Price
ACROPETAL	Acropetal Tech Ltd	CROSSEAS CAPITAL SERVICES PVT. LTD.	BUY	4,62,292	110.98
ACROPETAL	Acropetal Tech Ltd	CROSSEAS CAPITAL SERVICES PVT. LTD.	SELL	4,62,307	112.24
ACROPETAL	Acropetal Tech Ltd	FINANCECORP CAPITAL INDIA PRIVATE LIMITED	BUY	4,02,694	114.38
ACROPETAL	Acropetal Tech Ltd	FINANCECORP CAPITAL INDIA PRIVATE LIMITED	SELL	4,02,694	117.10

FII & DII trading activity as on 17th March,2011

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FII & DII Turnover (BSE + NSE)

(Rs. crore)
	FII			DII
Trade Date	Buy	Sales	Net	Buy	Sales	Net
17/3/11	1,546.32	2,674.93	-1,128.61	1,044.93	612.86	432.07
16/3/11	2,233.78	2,368.30	-134.52	1,153.03	826.31	326.72
15/3/11	2,520.63	2,372.35	148.28	1,247.79	680.69	567.10
Mar , 11	26,459.63	25,991.83	467.80	12,173.27	10,639.04	1,534.23
Since 1/1/11   *	141,277.95	157,136.65	-15,858.70	68,192.04	55,639.58	12,552.46

BSE- Other Category-Wise Turnover for 17/03/2011

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(Rs Crore)	Clients
Trade Date	Buy	Sales	Net
17-03-2011	2,217.78	2,182.50	35.29
16-03-2011	2,366.77	2,473.02	-106.26
15-03-2011	2,574.99	2,594.99	-20
Mar , 11	27,220.38	27,681.21	-460.82
Since 1/1/11	1,19,242.53	1,20,078.91	-836.38
(Rs Crore)	NRI
Trade Date	Buy	Sales	Net
08-03-2011	0.90	0.35	0.55
07-03-2011	1.16	0.60	0.56
04-03-2011	0.36	0.63	-0.27
Mar , 11	11.46	9.17	2.29
Since 1/1/11	60.60	48.17	12.43
(Rs Crore)	Proprietary
Trade Date	Buy	Sales	Net
08-03-2011	601.72	599.90	1.82
07-03-2011	647.27	623.45	23.83
04-03-2011	753.12	815.41	-62.30
Mar , 11	7,921.50	7,771.16	150.34
Since 1/1/11	35,337.49	35,541.10	-203.61