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Market cues: Asian markets edge down, earnings outlook and more

Oil and Natural Gas Corp could see gains after the government said it raised $2.57 billion in a share auction at an average price of Rs 303.67 a share.

Ford at the Delhi Auto Expo in January, 2012
Ford at the Delhi Auto Expo in January, 2012

Asian shares traded weak on Monday as traders look to technical charts that point to a correction after a run-up in share prices over the past couple of weeks. The run up was due to some positive US economic data. Export-oriented economies rely on US consumption for growth. US Stocks have advanced as more and more Americans signed contracts to buy previously owned homes, jobless claims declined to a four-year low and consumer confidence in the US rose to the highest level in a year.

Kingfisher not shutting down

Cash-strapped Kingfisher Airlines on Sunday refuted speculation that it planned to shut down its operations as a section of pilots have threatened to boycott work without pay and dues being given to them. The development comes after Kingfisher's chief executive Sanjay Aggarwal met pilots on Thursday and sought their cooperation. However, other reports also said that Aggarwal told pilots that if they do not cooperate, then the airline would have to shut shop.

Divestment

The government had filed draft prospectus with Sebi for 10 per cent stake sale in National Building Construction Corporation or NBCC last month and the approval from the market regulator is expected shortly. So far in the current fiscal, the government has raised around Rs 14,000 crore through disinvestment in public sector undertakings (PSUs), against the budgeted Rs 40,000 crore.

Earnings outlook poor: RBI

Faced with poor demand and shortage of working capital, big corporates are not optimistic about improvement in their financial performance in January- March, said a Reserve Bank report. "Major constraints faced by the companies are due to lack of domestic demand, shortage of power and working capital... Though the big-cap companies are optimistic about demand growth in January-March quarter with annual production of Rs 1,000 crore or above, they are very less optimistic about their financial conditions," the RBI report said.

Direct imports of jet fuel

The direct import of ATF by aviation companies will cause a revenue loss of Rs 2,500 crore to the states. Although the Centre has protected their revenues, the move will impact revenues of states," Bihar Deputy Chief Minister Sushil Kumar Modi, who heads a panel of state finance ministers on GST said
Last month, the Centre had allowed debt-laden local airlines to import jet fuel directly,

Hero-Ducati

Iconic Italian motorcycle maker Ducati is up for sale and the world's largest motorcycle maker by volumes, reports say that Hero MotoCorp, might be interested in acquiring the Italian marque. Hero MotoCorp is armed with a $ 1 billion dollar war chest and is keen to expand globally.Currently, Hero MotoCorp is reported to be talking to its bankers to possibly mount a bid for Ducati although other details of this deal remain unknown at this moment

RIL and EIH

Shares of hospitality major EIH surged as much as 15 per cent on Saturday, a day after Mukesh Ambani-controlled Reliance Industries' arm scooped up an additional 3.73 per cent in the company. The stock closed at its highest level since January 2011 - at Rs 98.60, up nearly 10 per cent- after a special 90 minute-trading session on Saturday.


Alfa Laval delisting

Sweden's Alfa Laval may have to shell out more money to delist its Indian arm than what it has set aside. Bids for 10.20 lakh shares, which is the minimum number of shares required for the company's successful delisting, were made up to Rs 3,850 a piece against the floor price of Rs 2,045. If Alfa Laval accepts this price, it will have to pay around Rs 785 crore compared to Rs 417 crore that it had set aside for the delisting. Alfa Laval India's total profits in the past 10 years was Rs 753 crore.

Lupin US launch

Lupin has launched ziprasidone (generic Geodon) in US. The company has a 180-day exclusivity in US. The drug has annual sales of $1.3bn, analysts say. They expect Lupin to generate revenue of $33m and profit after tax of $ 17m through this initiative.