Reliance Power - RNRL Merger Implications
Monday, July 05, 2010
Indian equities settled flat on Monday with negative biased. At the close, the benchmark 30-share index, BSE Sensex lost 19.51 or 0.11% at 17,441.44, while the broad based NSE Nifty closed flat with a decline of 1.20 points or 0.02%, at 5,235.90.
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
5/7/2010 517356 ACI Infocom SANJAY AGARWAL HUF B 150000 30.20
5/7/2010 517356 ACI Infocom MANOJ P LUNKAR S 55000 30.20
5/7/2010 500034 Bajaj Auto Fin BAJAJ FINSERV LIMITED B 2116900 471.90
5/7/2010 500034 Bajaj Auto Fin BAJAJ HOLDINGS AND INVESTMENT LIMITED S 2116900 471.90
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
05-JUL-2010,FIEMIND,Fiem Industries Limited,PRIMORE SOLUTIONS PVT.LTD,BUY,73408,175.33,-
05-JUL-2010,SELMCL,SEL Manufacturing Company,AKASH SECURITIES PRIVATE LTD,BUY,311991,60.00,-
05-JUL-2010,SELMCL,SEL Manufacturing Company,SAFFRON FINANCE LIMITED,BUY,777657,60.84,-
05-JUL-2010,FIEMIND,Fiem Industries Limited,PRIMORE SOLUTIONS PVT.LTD,SELL,78944,174.68,-
05-JUL-2010,POLARIS,Polaris Software Lab Ltd,ORBITECH LIMITED,SELL,749364,184.42,-
05-JUL-2010,SELMCL,SEL Manufacturing Company,AKASH SECURITIES PRIVATE LTD,SELL,311991,60.73,-
05-JUL-2010,SELMCL,SEL Manufacturing Company,SAFFRON FINANCE LIMITED,SELL,777657,60.38,-
05-JUL-2010,SUNFLAG,Sunflag Iron And Steel Co,CHARANJIV DHAWAN,SELL,1000000,29.15,-
05-JUL-2010,TNPL,Tamil Nadu Newsprint ,GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD,SELL,499235,114.00,-
Today's major news
Arston Engineering bags order; the stock closes 3.36% lower
Consolidated Construction Consortium builds on new orders; the stock ends 2.92% higher
Four Soft inks pact with Aries Global; the stock closes 1.53% lower
Turnover declines sharply due to nationwide strike
Nifty July 2010 futures were at 5,246, at a premium of 10.10 points compared to spot closing of 5,235.90. Turnover in NSE's futures & options (F&O) segment was Rs 35,803.72 crore, much lower than Rs 64,641.19 crore on Friday, 2 July 2010. The turnover declined sharply due to a nationwide strike called by opposition parties to protest against the government's decision to raise fuel prices.
ANNUAL REPORT 2009-2010
I am happy to present on behalf of the Board of Directors, the 64th
Directors' Report for the year ended March 31, 2010, along with the Balance
Sheet and Profit and Loss Account for the year.
The key benchmark indices edged marginally lower in lacklustre trade, with volumes hit by a nationwide strike called by opposition parties to protest against the government's decision to raise fuel prices. Banking stocks shrugged off an unexpected hike in key policy rates by the Reserve Bank of India, which was announced after trading hours on Friday, 2 July 2010. But, PSU OMCs, realty, metal stocks fell. Index heavyweight Reliance Industries (RIL) was flat. Reliance Natural Resources (RNRL) slumped following an unfavorable swap ratio for its merger with group company Reliance Power (RPower). RPower jumped.
Aster Silicates Ltd.
112 to 118
7 to 7.50
230 to 240
28 to 29
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162 to 175
6 to 7
Shareholders of RNRL will get one share of Reliance Power for every four shares held by them, the board of directors of both the companies decided, while approving the merger of RNRL with RPower. (BL)
Ranbaxy Laboratories transfers its research division for new drugs to Japan’s Daiichi Sankyo. (ET)
Tata Motors' CV sales rise 33% YoY in June. (BL)
Reliance Power is likely to apply to the government for allocation of natural gas. (BS)
GAIL (India) is in the process of laying a 2,500km natural gas pipeline covering Karnataka, Kerala, Tamil Nadu and Maharashtra at a cost of Rs100bn. (BL)
Uflex is all set to make forays into Africa with its state-of-the-art plant in Egypt starting production this month. (ET)
Glodyne Technoserve has completed the acquisition of the US-based technology company DecisionOne from its shareholders for US$104mn.(ET)
Strides Arcolab has convened an extra-ordinary general meeting on July 23 to seek approval from shareholders for raising equity worth nearly US$100mn. (ET)
Crisil has upgraded the debt instruments of ICICI Bank to ‘stable’ from ‘negative’. (ET)
SREI Infra in talks to raise PE fund up to Rs46bn. (BS)
Marico to rejig Kaya Clinic outlets to cut losses. (BS)
General Motors plans to file its nearly US$20bn IPO in mid-August. (BS)
The RBI hikes reverse repurchase rate to 4%, from 3.75% and Repurchase rate is increased to 5.5%, from 5.25%. (ET)
Prime Minister Manmohan Singh says the government is working towards a regulatory and policy framework, which will be attractive enough to absorb investments worth US$120bn in the aviation sector by 2020. (BS)
The Finance Ministry indicated that the revised Direct Taxes Code draft may stick to denying tax sops to special economic zones. (BS)
Mutual funds industry witnesses the worst ever fall in assets under management in June 2010. (FE)
The government has ruled out to roll back increase in fuel prices, even as opposition National Democratic Alliance (NDA) called for an all-India bandh today (July 5, 2010) to protest the price hike and rising inflation.
"No question of roll-back," Finance Minister Pranab Mukherjee told reporters, when asked whether the government could review its June 25, 2010 decision of raising prices of petroleum products.
Meanwhile, NDA Working Chairperson L K Advani after a meeting of its leaders, said, "This may be the first time in the history of India's politics that almost all political parties will participate in the Bharat Bandh."
The government last month raised prices of petrol, diesel and kerosene by Rs3.50, Rs2 and Rs3 a litre, respectively and increased the rate of cooking gas by Rs35 a cylinder.
Bullion metals cough up substantial weekly losses
Bullion metal prices ended mixed on Friday, 02 July 2010 at Comex with gold prices ending little higher but silver prices dropping. Prices seesawed for the entire day as and lacked much direction in thin trading ahead of the long holiday weekend.
Crude registers first weekly loss in a month
Crude oil prices ended lower on Friday, 02 July 2010 at Nymex. Prices fell as uncertainty and fears about the health of the U.S. economy came in focus again as traders mulled over a mixed jobs report and a steeper-than-expected drop for factory sales.
"Politics is for the present, but an equation is for eternity." Albert Einstein.
The nationwide ‘Bharat Bandh’ is not expected to change the political equation. In the worst case scenario, it may paralyse normal life. So, expect lower turnouts in offices, schools and other institutions. As far as markets are concerned, trading volume may take some hit and lead to some volatility. Given the uncertain global scenario we expect the overall mood to be cautious ahead of the corporate earnings.
The key benchmark indices swung between gains and losses in early trade after the Reserve Bank of India after trading hours on Friday, 2 July 2010, hiked key interest rates by 25 basis points to tame inflation. Interest rate sensitive banking stocks rose while realty stocks fell after the rate hike. Reliance Natural Resources (RNRL), slumped due to unfavorable swap ratio for its merger with group company Reliance Power (RPower). RPower surged.
Investors with medium-term perspective can consider investing in the stock of Gujarat Narmada Valley Fertilizers Company (Rs 114.2). In late 2008, the stock found support at Rs 50 and started to trend upwards.
While trending upward, the stock emphatically penetrated key resistances at Rs 80, Rs 90 and Rs 105. However, after recording a 52-week high at Rs 135 in January 2010, the stock had been on a medium-term downtrend until it found support at Rs 105 in late May this year.