Stocks to watch: Tata Steel, JM Financial, Roto Pumps
Equities are seen lower on Tuesday tracking weak global markets as concerns on the long-term implications of the $700 billion bailout plan worried investors.
By ET Online |
MUMBAI: Equities are seen lower on Tuesday tracking weak global markets as concerns on the long-term implications of the $700 billion bailout plan worried investors. Crude also raised its ugly head thus reviving concerns on consumer spending and resurfacing inflation woes.
Oil prices soared to an intra-day high of $130 a barrel on Monday, before easing, in a rally sparked by the expiry of the front-month futures contract and weakness in the US dollar. US light crude for November delivery was down 42 cents at $108.95 a barrel.
The rupee weakened in early trade on Tuesday on concerns of higher oil prices and weak Asian markets. At 9:15 am, the partially convertible rupee was at 45.52 per dollar against previous close of 45.45/46.
Companies developing infrastructure projects can now borrow more from abroad. The government on Monday relaxed external commercial borrowing norms and allowed infrastructure companies to borrow upto $500 million a year for rupee spending in India against $ 100 million at present.
Tata Steel has bought about 7.3 per cent equity stake in Riversdale Mining, which owns coal blocks in Mozambique, for $120.7 million, taking its total stake to 42.3 per cent and further securing coal supplies that are vital to its steelmaking operations globally. The equity stake in Riversdale Mining was bought from the open market. Tata Steel had bought 35 per cent stake in the mining project last year for $100 million.
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JM Financial will underwrite 67 per cent of the rights issue with differential voting power of Tata Motors. This means, the Rs 1,960-crore differential voting rights issue is fully underwritten, as the Tatas, the promoters, have promised to subscribe to their entitlement. The Tatas hold 33 per cent stake. Hyderabad-based IT services firm Infotech Enterprises plans to acquire three companies, which is likely to be in hi-tech and automotive engineering services, this fiscal in the range of $20-30 million each. The company is currently involved in due diligence of a European auto engineering company that it hopes to acquire by December-end.
Sterlite Technologies, part of Anil Agarwal���s Sterlite group, is in advanced discussions to acquire UK-based cabling company Brand-Rex for roughly $55 million, or approximately Rs 250 crore.
Nine of the country���s largest commercial banks including State Bank of India, ICICI Bank and HDFC Bank have exposure of $420 million (Rs 2,000 crore) in the US financial giants which collapsed recently. The government feels banks other than SBI would suffer losses of Rs 600 crore due to the crisis.
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After a lull of two months, cement prices are likely to go up by Rs 3-5 per bag in Mumbai, Delhi-NCR, Gujarat and the southern markets from October 1. Post this round of hike, prices will be hovering around Rs 245-275 per 50 kg bag. Cement prices have gone up by 4 per cent in the past one year. Telecom Italia may pick up 49 per cent stake in Unitech Telecom for around $1.75 billion, say reports.
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Hyderabad-based, Maytas Infra, bagged two orders totaling to Rs 480.67 crore for electrification of Beed & Nanded districts of Lathur Zone, and Ahmednagar district of Nashik Zone from MSEDCL under ���Infrastructure Development Plan���.Roto Pumps bagged Rs 3.6 crore order from Larsen & Toubro for Rajasthan Northern Area Development Project of Cairn Energy India
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