Stocks to watch

Equities are seen higher on Tuesday tracking a rebound in Asian peers as bargain hunters scoured the market after five days of losses. However, rising inflation and high oil prices will keep investors uncertain about the outlook.

Shares of oil marketing companies could find comfort in the government’s dual strategy of fuel price hikes and duty cuts. So, even if the retail petrol and diesel prices are increased, a duty cut would make the net increase marginal. Petroleum Minister Murli Deora is schedule to meet Finance Minister P Chidambaram later today on this issue, having already deliberated on it with Prime Minister’s Economic Advisory Committee Chairman C Rangarajan, reports The Economic Times. Crude oil was up at $133/barrel following supply concerns.

The dollar continued to trade firm at 42.85 up 0.10 paise against the rupee on Tuesday. The rupee ended at 42.73/74 per dollar on Monday. This will help IT stocks to inch upwards.

Warburg Pincus-controlled WNS holdings is working on an out-right acquisition firm Firstsource Solutions, in which ICICI Bank holds 26.8 per cent stake. WNS is looking to buy out ICICI Bank’s stake and mop up shares held by some other private equity investors. The scrip ended or 2.75 lower at Rs 40.7 on the BSE.

The proposed deal between Reliance Communication and MTN may involve open offer by the South African telco to the shareholders of RCOM. The broad contours of the deal, on which both parties began exclusive talks on Monday, may result in a transfer of Anil-Ambani’s two-third equity stake in RCOM to MTN shareholders, against his acquisition of around one-third equity in the foreign company. Shares of Reliance Communications ended 5.08 per cent lower at Rs 543.20.

Tata Consultancy Services has won a $100 million five-year contract with NXP Semiconductors. The $6.3-billion Netherland-based company, founded by Philips, is among the top 10 semiconductor companies.

Kirloskar Electric has mounted a bid to acquire Germany’s Lloyd Dynamowerke based on an estimated enterprise valuation of around $100 million. The share ended 5.45 per cent lower at Rs 183.10.

Omaxe is entering into power generation by forming a joint venture with Isolux, a Spanish firm, reports DNA Money. The company plans to set up a 150 mw unit at Ennore near Chennai. The company is expected to hold 51 per cent stake in the joint venture, with Isolux holding the rest.

HTMT Global will be taking over a mortgage-specific company in the UK soon, reports DNA Money. The company is expected to invest over $150 million for this foray into Europe.

Results today: Bajaj Electricals, Deepak Nitrite, Emco, Jindal Steel & Power, Neyveli Lignite, Opto Circuits and Tata Coffee