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Wednesday, December 12, 2012

Daily News Roundup - Dec 12 2012

Jaguar Land Rover, exploring an opportunity to start production in Saudi Arabia, has signed a letter of intent to begin a feasibility study. (BL) Mahindra & Mahindra will increase prices of its vehicles by over 1% across various models in January to offset rising input costs. (BL) ITC is willing to invest nearly Rs30bn in Bengal over the next four years. (BBL) Videocon Industries announced a new discovery of light hydrocarbons in a well, which is a part of a concession area of Sergipe Alagoas ultra deep water basin in Brazil. (BL)

12-12-12: Good start, eye on IIP

"Production is not the application of tools to materials, but logic to work" - Peter F. Drucker The date 12.12.12 may not enthuse many as it marks Chaudas Amavasya, considered an inauspicious day. Thankfully, the stockmarkets have a mind of their own and looks like the global tailwinds may propel the Indian indices to a better start. The Index of Industrial Production data for October will be keenly watched given the contraction in September. Headwinds of course continue with the Standard & Poor's again warning that India still faced a downgrade possibility in its sovereign rating to junk grade. On the other hand Moody’s felt the country's growth prospects for 2013 have improved.

IPO Grey Market Premiums - Bharti Infratel, PC Jewellers

Company Name
Offer Price
Kostak Price
(Rs. 1 Lac
(Rs. 2 Lac
700 to 750
155 to 160
P. C. Jeweller
125 to 135
Rs. 5 Discount to Retailers
6 to 7
Rs. 600 to 650
Min. Application : 90 Shares
210 to 240
Rs. 10 Discount to Retailers

Min. Application : 50 Shares

Crude ends higher for first time in six sessions

Prices remain choppy and weak throughout the day Crude oil prices ended higher for first time in six sessions on Tuesday, 11 December 2012 at Nymex. Prices remained weak and choppy throughout the day but moved higher at the end. A weak dollar helped put a brake on the drop in prices during intra day trading. On Tuesday, light and sweet crude oil futures for light sweet crude for January delivery closed higher by $0.23 (0.3%) at $85.79/barrel. Prices had shed almost 4% in previous five trading sessions.

Bharti Infratel IPO gets muted initial response

Receives bids for 72.67 lakh shares The initial public offer (IPO) of Bharti Infratel received bids for 72.67 lakh shares till 16:00 IST on first day of the bidding for the IPO today, 11 December 2012. The issue was subscribed 0.05 times. The issue closes on 14 December 2012. The company is issuing 14.62 crore equity shares of face value of Rs 10 each in the price band of Rs 210 to Rs 240 per share. Along with the fresh issue, there is an offer for sale of 4.26 crore equity shares by existing shareholders viz. Compassvale, GS Strategic, Anadale, Nomura, and Fabrikant HK Trading. There is a discount of Rs 10 per share for retail investors.

CARE IPO subscribed 40.29 times

Gets bids for 24.65 crore shares Investors made a beeline for the initial public offer of credit rating agency Credit Analysis & Research (CARE). The IPO received bids for 24.65 crore shares till 16:00 IST on the last day of the bidding for the IPO today, 11 December 2012. The IPO was subscribed 40.29 times. The IPO price band is set at Rs 700-Rs 750. The IPO comprises of offer for sale of share by existing shareholders and therefore the company will not get any funds from the IPO. The selling shareholders are offering 71.99 lakh equity shares of face value Rs 10 each. The offer constitutes 25.22% of the post-offer paid-up equity share capital of the company.

Market may open higher on firm Asian stocks

The market may open higher on firm Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 17.50 points at the opening bell. Asian stocks gained on Wednesday, 12 December 2012, amid sustained optimism for an agreement on upcoming US tax hikes and spending cuts, ahead of the conclusion of a Federal Open Market Committee that may see it undertake more asset buying. Closer home, the Central Statistical Organization (CSO) will unveil industrial output data for October 2012 today, 12 December 2012. Industrial production is seen expanding 4.7% in October 2012, as per the median estimate of a poll of economists carried out by Capital Market. Industrial production declined 0.4% in September 2012.