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Indian stocks to watch-May 10

Source : REUTERS
Last Updated: Fri, May 11, 2012 18:41 hrs

MUMBAI, May 10 (Reuters) -

GLOBAL MARKETS ROUNDUP

* Asian shares edged higher, though sentiment was weak on mounting worries about the health of Spanish banks while deepening political chaos in Greece seemed to put the country at risk of insolvency and a euro exit.

* U.S. stocks fell for the fifth day in six on Wednesday as investors kept their focus on the turmoil in Europe, but news that Greece will receive its latest debt bailout payment helped cut losses late in the session.

KEY EVENTS TO WATCH

* The automobile industry body releases sales figures for April, with volumes likely to be flat compared with a year. (0530 GMT)

* India's top power producer NTPC Ltd will report March-quarter results. Analysts expect profit to drop 7 percent from a year ago.

* Other Jan-March earnings: Cadila Healthcare, Cipla, Escorts, Jubilant Foodworks , Jain Irrigation Systems and Sintex Industries.

INDIAN STOCKS TO WATCH

FINANCIAL

* India's central bank eased restrictions on the usage of foreign currency deposits on Wednesday, just days after its move to relax the interest rate ceiling on such deposits. The Reserve Bank of India has allowed banks to use funds from foreign currency non-resident deposits as collateral against lending to related local residents.

* A parliamentary standing committee on finance has recommended setting up a coordination mechanism between Securities and Exchange Board of India and the Reserve Bank of India to curb the flow of tainted money in the stock market.(Times of India)

* Vodafone Plc said on Wednesday it is disappointed the Indian government has not proposed changes to address uncertainty over a retrospective tax legislation, and it will take all possible steps to safeguard shareholders interest.

* The latest version of the Companies Bill awaiting Parliament's nod could end the practice of creating treasury stock and remedy the current situation where such stock has voting rights that effectively end up increasing the control of promoters, according to minority shareholder activists. (Mint)

* ICICI Bank raised foreign currency deposit rates by upto 175 basis points, effective May 8. It raised rates for 1 to 2 year tenure by 75 basis points and for 3 to 5 year tenure by 175 basis points.

* Securities and Exchange Board of India has delayed its plan to scrap upfront commission by mutual funds to distributors after sharp industry protests.(Economic Times)

* India's largest micro-lender SKS Microfinance will move its headquarters from Hyderabad to Mumbai. (Economic Times)

* India's Tata Motors Finance Ltd plans to raise at least 2 billion rupees ($37.17 million) via two and three-year bonds at 10.40 percent per annum interest, two sources with knowledge said on Wednesday.

ENERGY/COMMODITIES

* With power utilities across India in financial trouble, the Planning Commission believes a one-shot restructuring can turn the lights back on. But for restructuring to happen, all stakeholders will have to bear some pain, so the commission wants the prime minister's office to push its agenda. (Economic Times)

* NTPC, which reports earnings later in the day, has pushed back the closing date of its 5 million tonne thermal coal tender until May 23, traders said.

* The power ministry plans to take up project developers' concerns about the draft fuel supply agreement (FSA) with the coal ministry soon, a top government official said. (Financial Express)

* Aditya Birla Group, the cash rich conglomerate headed by Kumar Mangalam Birla, has submitted a non-binding bid to buy Australia-listed iron ore producing firm Northern Iron for about $300 million, sources said. (Economic Times)

* Reliance Industries (RIL) raised $2 billion via a 13-year loan to finance goods and services procured from German suppliers as part of its expansion projects.

* India's monsoon rains are expected to arrive nearly on time, a former government forecaster said on Wednesday, adding to hopes of another drought-free year which would enable the major crop producer to continue its liberal export policy.

* Hindustan Petroleum Corp aims to sign its first-ever annual import deal to buy 10,000 barrels per day (bpd) of oil from Azerbaijan's national oil company SOCAR, a source with knowledge of the deal said.

* Mangalore Chemicals and Fertilisers Ltd reported a more than double March-quarter net profit at 208.7 million rupees, net sales of 10.15 billion rupees.

* Reliance Industries invested fresh capital in its retail business last year, a reflection of its belief in the long-term prospects of the business. (Mint)

* In a setback to French power company Alstom SA's joint venture with Bharat Forge Ltd, the Gujarat high court on Wednesday ordered the company to stop construction at the Mundra special economic zone (SEZ) till the Adani group firm got an environment clearance from the Centre. (Mint)

* GMDC has put on hold its plans to set up indigenous coal-based thermal power plants with an estimated investment of 200 billion rupees to generate 4,000 MW. (Business Line)

AIRLINES

* Air India faces continued trouble as 400 agitating pilots failed to report to work for a second day, disrupting flight schedules and leaving passengers stranded across airports in the country. (Economic Times)

TELECOMS

* State-owned MTNL, which provides telecom services in Delhi and Mumbai regions, will offer voluntary retirement scheme (VRS) to about 20,000 employees, as part of its efforts to turn profitable. (Economic Times)

TECHNOLOGY

* India is looking to take the United Sates to the World Trade Organization against the latter's visa fee hike, which discriminates Indian software companies from American firms. (Economic Times)

PHARMA

* India's main drug regulator has not been properly scrutinising some drugs before approving them, and some of its officials are colluding with drug firms and medical experts to circumvent procedure, according to a new parliamentary report.

INDUSTRIAL

* ABB Ltd, power and automation technology major, will invest around 2.5 billion rupees to build new facilities in India to manufacture high-voltage power products and transformers. (Business Line)

OTHER FACTORS TO WATCH

* Indian debt/FX factors to watch

* Australian dollar rises after upbeat jobs data

* Brent rises on Greece bailout payment, technicals

* Foreign institutional investor flows

* For closing rates of Indian ADRs (Compiled by Divya Chowdhury; Editing by Rafael Nam)




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