Markets may open positive in line with global cues.

On the macro front, the Oct 15 food inflation which was announced yesterday came in at a staggering 11.43 per cent against 10.6 per cent last week. The primary article inflation too came in higher at 11.75 per cent against 11.18 per cent last week. This seriously raises some alarming signs, on the inflation front and RBI’s not so successful rate hike measures

In conclusion, we expect the markets to remain largely positive for the day on the back of renewed optimism coming from the euro leaders’ efforts to fight the debt crisis there. However our very own macro concerns on the inflation front may prove to be a serious headwind to this rally.

Corporate News

Country's largest gold loan company Muthoot Finance reported 88 per cent increase in profit at a little over Rs 215 crore, driven by a massive 110 per cent jump in revenues, for the second quarter ended September 30, 2011. It had posted a net profit of Rs 114.48 crore in the same period last fiscal. Amid soaring gold prices, the net sales of the Kerala- based company during the reporting quarter rose to Rs 1,098.41 crore compared to Rs 523.65 crore in the year ago period. The EPS stood at Rs 5.80 compared to Rs 3.67 per share in the year-ago period.

According to a top company official, state-run Power Grid Corporation (PGCIL) is aiming at a 30 per cent increase in revenue from its telecom business in the current fiscal. Power Grid, which entered the telecom business a few years back, has a telecom network of about 21,000 km optic fibre cable providing connectivity to all the metros, major cities and towns, besides presence in some remotest areas. Last year, the company had netted Rs 187 crore from the telecom business out of the total revenue of Rs 8,388 crore. Power Grid which has over one lakh towers has so far leased 800 towers and has floated tenders for another 30,000.

State-owned Fertilizers and Chemicals Travancore (FACT) plans to set up five plants in joint ventures at an investment of nearly Rs 6,000 crore. The Kerala-based company has invited expressions of interest (EOIs) seeking partnerships with other public sector undertakings (PSUs) to establish five plants with an annual capacity of more than 38 lakh tonne per annum. Giving details about the expansion plan, FACT said it intends to set up a ammonia-urea complex at Cochin division with an estimated investment of Rs 4,500 crore. The proposed complex will consist of an ammonia plant of capacity 2,000 tonnes per day (TPD) and a urea plant of 3,500 TPD.

USFDA has approved the first generic versions of Zyprexa and Zyprexa Zydus, used for treating schizophrenia and bipolar disorder, to be made by Dr Reddy's Laboratories (DRL) and others. Generic olanzapine tablets will be manufactured by DRL and Teva Pharmaceuticals USA, and the Generic olanzapine orally disintegrating tablets will be manufactured by Apotex, DRL and Par Pharmaceuticals, according to USFDA. Olanzapine, which is currently being marketed under the brand Zyprexa by Eli Lilly, is seen having sales of $5.3 billion worldwide with nearly half of it from the US alone. Schizophrenia is a chronic, severe, and disabling brain disorder. About 1 per cent of Americans are said to be suffering from this illness. Schizophrenia is a chronic, severe, and disabling brain disorder. About 1 per cent of Americans are said to be suffering from this illness.

Uttarakhand Jal Vidyut Nigam Limited (UJVN), the state-run hydropower company which is venturing into gas-based power sector, would form a joint venture (JV) with GAIL to set up two power plants in Uttarakhand. A total of Rs 2,500 crore is proposed in the two power plants at Kashipur and Haridwar towns. The majority of the power from these power plants would be sold to Uttarakhand through a long-term power purchase agreement (PPA).

Corporate Action