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Opening Bell 31 May

Opening Bell 31 May
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First Published: Tue, May 31 2011. 09 04 AM IST
Updated: Tue, May 31 2011. 09 04 AM IST
New Delhi: It seems like the rest of Europe are going to bail out Greece again. That’s rubbing off positively on Asian stocks on Tuesday. Here’s a list of things to know before trading starts:
Stock markets in Japan and South Korea are up by more than 0.5% each on bargain hunting and positive cues from the Euro zone. The Nikkei at 9,571 is up 0.70%.
While markets in the US were closed on Monday, it has to be seen if the positive global cues will percolate into gains for Indian stocks. Key companies in the benchmark indices - ONGC, IOC, Reliance Capital and Reliance Communications have declared weak March quarter earnings. However, the negative cues can be outweighed if GDP numbers come in better than expectations.
India’s March quarter GDP numbers will be released today. Economists surveyed by Bloomberg, on an average, are expecting a GDP growth of 8.2% in the January-March quarter.
Camlin has entered into a joint venture agreement with Japan’s Kokuyo Co. Kokuyo Co, through its wholly-owned subsidiary Kokuyo S&T Co Ltd, will acquire close to 51% stake in the JV in three tranches. Camlin’s enterprise value has been pegged at Rs 700-730 crore, nearly twice its estimated sales in 2010-11.
Tata Communications is expecting its loss-making South African JV, Neotel, to turn operationally profitable in the current financial year. For the year ended 31 March, Tata Communications reported a net loss of Rs854 crore, of which Rs 551 crore was on account of Neotel.
McLeod Russel India Limited is looking to invest $6 million in Africa to upgrade its factories and enhance production capacity. Out of $6 million, $2 million is likely to be invested in Uganda and $4 million in Rwanda.
Sun Pharmaceutical Industries is also planning to invest Rs 450 crore for capacity expansion and up-gradation of existing plants in the current fiscal. The amount also includes investments planned for Taro facilities.
With the government insisting on altering the royalty clause, Vedanta is likely to renegotiate the Cairn India valuations. According to reports, Anil Agarwal promoted Vedanta Resources might renegotiate the offer price if Cairn India accepts the ministerial panel’s suggestions on royalty issues.
The empowered group of ministers is likely to discuss the controversy surrounding the fall in gas production from Reliance Industries’ KG D6 blocks. With Essar Steel approaching the high court on gas cuts, there are expectations that the EGoM might discuss the matter when it meets on 9 June. Read more...-
Higher subsidy burden led to a contraction in ONGC’s net profit. ONGC reported a 26% drop in fourth quarter net profit to Rs 2,791 crore. ONGC had to pay a fuel subsidy compensation of Rs 12,136 crore in March quarter. In the same period of 2009-10 it paid a fuel subsidy of Rs 4,999 crore.
Indian Oil Corporation also reported a 30% drop in March quarter profits to Rs 3,905 crore. Higher revenue-loss on the sale of diesel, kerosene and domestic LPG products led to a fall in profits.
ADA group companies Reliance Communications and Reliance Capital also reported weak earnings. Reliance Communications profits slumped by 65% in March quarter due to high interest costs and low average revenue per user. Reliance Capital reported a 33% drop in 2010-11 profits to Rs 291.18 crore. According to the management, one time provisioning of Rs 183.70 crore led to a contraction in Reliance Capital’s profits.
Nalco, on the other hand, reported a 31% jump in 2010-11 profits to Rs 1,069.3 crore. Higher aluminum prices and greater realizations helped the company report robust growth in profits. Read more...
Finally, researchers in found that older drugs are more effective in combating diabetes than the newer ones. They also found that older drugs have fewer side effects and are often cheaper than the new ones. Read more...
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First Published: Tue, May 31 2011. 09 04 AM IST
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