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27/04/2015

Tremors in the market!

Nature unleashed its fury over the weekend with a massive earthquake rocking Nepal on Saturday. After shocks continued in some parts of India too even as Prime Minister Narendra Modi assured absolute help to Nepal. Reports state Indian companies operating in Nepal have not seen any major impact on their operations.

The outlook is a flat to positive start. Global cues are upbeat for now. US indices clocked marginal gains on Friday. Asian markets are up with Nikkei gaining half a percent while Hong Kong's Hang Seng index is up over a percent. China's Shanghai index is up almost 2%. Globally, the US Federal Reserve monetary policy meeting could keep investors on tenterhooks while futures and option (F&O) expiry and a truncated week could bring in the swings.

This week, the next batch of quarterly corporate results, investment activity of FIIs, movement in local currency and global markets will determine the near term trend on the domestic bourses. ICICI Bank, Maruti and JSW Energy results will be in focus.

Results preview: Maruti Rev Rs. 13,578cr (12.2% yoy), PAT Rs. 1,006cr (25.7% yoy)

Trading ideas (Time period: 1-3 days)

Bharat Forge (BUY, above Rs1,200, Target Rs1,250, SL Rs1,175): It had been on a declining curve since first week of April, which had seen the stock getting back to the long-term support line which also coincides with the support of its 100-DMA. Also, the stock has registered a breakout from four-day reversal pattern. Last week it had formed a hammer candlestick pattern, which brought the selling pressure to an end. Thereafter, it witnessed consolidation four trading session before breaking out on Friday. Moreover, stock is sustaining above the previous breakout point confirming strength in the current upmove. (Duration 5 days)


Derivative strategies (Time period: Till expiry)

Buy Fut Adaniports Apr below 319 with SL of 314 for target of 329
Lot size: 1,000
Remarks: Net maximum profit of Rs10,000 and net maximum loss of Rs5,000.



Corporate Snippets

Mahindra Finance is likely to hold up to 50% stake in the proposed Payment Bank, for which a group entity has applied for a license from RBI. (BS)

JSPL is looking to invest about Rs200bn in its power business to take the generation capacity to 8,600 MW in the next five years. (BS)

Titan Company plans to open 60 new 'Titan Eye Plus' outlets during the current fiscal as part of an aggressive expansion strategy for the prescription eyewear products and sunglasses. (BS)

Goodyear is looking at India with 'renewed interest', expecting to grow significantly in the country which is one of its biggest markets in Asia. (BS)

PT Essar Indonesia, part of Essar Steel is planning to increase production, target new demand areas, introduce value-added products and expand capacity. (BS)

In a bid to boost its landline business Bharti Airtel will be launching unlimited voice calling schemes for its broadband customers. (ET)

Tata Motors has planned a passenger car product line-up till 2020 and will launch two new cars every year. (BL)

NTPC signed up power purchase agreements (PPAs) for phase one of 250 MW of the 1,000 MW ultra mega solar power project planned in Andhra Pradesh and outlined its plans to develop 3,000 MW of solar power generation capacity during 2015-16. (BL)

The Oil Ministry has rejected Reliance Industries’ (RIL) latest arbitration notice challenging the government decision to take away 814 sq km of its KG-D6 gas block, saying it was misconceived and untenable in law. (BL)

A major corporate battle has erupted at United Spirits Ltd (USL), with the company asking UB Group Chairman Vijay Mallya to resign from the USL board, following allegations of fund diversion from USL to UB Group entities.(BS)


Economic Snippets

Delayed summer and unexpected rains brought the country's peak power deficit down to 3.2 % in March, according to official data.(BS)

In a bid to push labour reforms to improve ease of doing business and boost the 'Make in India' programme, Labour Ministry will push three bills for Cabinet approval next week including on small factories, provident fund and prohibition of child labour.(BS)

Passenger car exports from India declined 1.66 % to 5,42,082 units in 2014-15 due to challenges in traditional overseas markets like Europe, Sri Lanka and Algeria.(BS)

20/04/2015

Reliance upbeat, indices to trade in a band

The indices are finding it difficult to approach previous highs. Results are pouring in and there are no major surprises as yet. Reliance Industries’ record profit and high GRM appears to be mostly factored in by the street. However, some bounce is likely to be seen at open. TCS and Mindtree failed to attract buying interest and saw weakness post their results. Remember, both the companies had guided about the weakness in advance. This week will see March eight infrastructure industries data besides numbers from Infosys, HDFC Bank, HCL Tech, Wipro and Cairn India.

The outlook is a flat start. Nifty could well consolidate after a decline of 2% last week. Reliance is likely to outperform after the oil and gas major posted consolidated profits of Rs6381 crore, 8.5% higher (YoY) as against Rs5881 crore. The standalone profits also swelled to Rs6240 Crore as against Rs5631 Crore. Meanwhile, U.S. stocks declined sharply on Friday as a confluence of intensifying Greek default fears and new stock-market regulation from China kept investors on edge.


Trading ideas (Time period: 1-3 days)

Arvind Apr Futs (SELL, below Rs274, Target Rs262, SL Rs280): Arvind on the daily chart has been displaying weakness since last few trading sessions, unable to carry momentum at higher levels following a recovery since last week of March. For last three weeks, the stock has failed to cross the resistance of its 10-DMA which also coincides with the resistance of its down ward sloping trendline. The daily RSI has also given a breakdown which also indicates weakness. (Duration 5 days)


Derivative strategies (Time period: Till expiry)

SELL Fut ApolloHosp April Above 1330 with SL of 1355 for target of 1300/1285
Lot size: 250
Remarks: Net maximum profit of Rs 12500 and net maximum loss of Rs 6250.


Corporate Snippets

Coal India, which is facing constraints in evacuation infrastructure, is planning to realign its logistics management of railway rakes to increase evacuation by additional 5-8%. (ET)
A consortium led by US private equity firm Advent International Corp. is set to buy the consumer products business of Crompton Greaves for up to $350mn. (ET)
Buoyed by diesel price decontrol, Reliance Industries will reopen all its 1,400 petrol pumps this fiscal. (ET)
Honda Cars India has hiked prices of its entry level car Brio and compact sedan Amaze by up to Rs.800 to offset change in cost structure following tax rationalization in the Budget. (BS)
Oil and Natural Gas Corp has agreed to take over a part of the abandoned assets of the western offshore Tapti gas field from its joint venture partnersReliance Industries and BG once output falls to zero. (BS)
Coming under pressure from the domestic steel sector, NMDC slashed iron ore prices by up to 20% for the remaining days of the current month. (BL)
Glenmark Pharmaceuticals is set to receive an infusion of Rs.9450mn from Temasek Holdings (Private) Ltd, the investment arm of the Singapore government. (BL)
Oil India said it has commissioned a 54 MW wind energy project in Gujarat and Madhya Pradesh. (BL)
NTPC Limited has launched a single-window system to deal with the procurement needs of the power plants across the country in place of a plant-wise tender process being practiced so far. (BS)
Maruti Suzuki India continued its hold on the country’s car market in 2014-15 with its models Alto, Swift, Dzire and WagonR retaining the top four positions. (BL)
Jet Airways, which plans to enhance its services on the US routes, may ask its strategic investment partner Etihad to return two of its Boeing-777 planes which are currently on lease with the Gulf-based carrier. (BL)

Economic Snippets

The all India weighted average rainfall between March 1 and April 15 was 96.6mm, more than double the normal of 47.8mm. (ET)
The Department of Telecom may soon come out with a policy structure for machine-to-machine communications, as it expects this mode of connectivity to increase digital pe*******on which is in line with the objectives of Digital India. (BS)
Power regulators have made a strong pitch for delegation of power of Civil Courts to them for ex*****on of their own orders as a decree of court. (BS)

09/04/2015

Moody’s mood change to uplift sentiment

India has grown faster than similarly rated peers over the last decade due to favorable demographics, economic diversity, as well as high savings and investment rates, says Moody’s. The rating agency just affirmed the Government of India's Baa3 issuer and senior unsecured ratings and changed the rating outlook to positive from stable. Moody's has also affirmed India's P-3 short-term local currency issuer rating. The driver for the rating outlook change is Moody's view that India's policymakers are establishing a framework that will likely allow India's growth to continue to outperform that of its peers over the medium-term; and improve India's macro-economic, infrastructure and institutional profile.

Moody's decision to revise the ratings outlook to positive from stable is based on its view that there is an increasing probability that actions by policy makers will enhance the country's economic strength and, in turn, the sovereign's financial strength over coming years. Indian equity indices, which ended higher on Wednesday, could see a spurt at start. Resistance could set in soon as investors will remain cautious ahead of the earnings season.


Trading ideas (Time period: 1-3 days)

APL Ltd (BUY, above Rs465, Target Rs483, SL Rs457): APL has been sustaining above its multiple moving averages since last two weeks and moving sideways, indicating positive bias. In yesterday’s trade, it advanced by ~3% which suggests that the stock has resumed its earlier upmove. Moreover, on the daily charts, the stock is on the verge of breaking out above the neckline of its inverted head & shoulders pattern. Also, the stock continues to trade above the support of its rising trendline. (Duration 5 days)


Derivative strategies (Time period: Till expiry)

Buy FUT Orientbank Apr above 203 with SL of 200 for target of 210
Lot size: 1000
Remarks: Net maximum profit of Rs7,000 and net maximum loss of Rs3,000.


Corporate Snippets

To charges that its new 'Airtel Zero' platform violated net-neutrality, Bharti Airtel said this new offering for application providers was open, non-discriminatory and imposed no difference in speed or price between players. (BS)

DLF filed an appeal before Securities Appellate Tribunal against capital market watchdog Sebi's order slapping Rs260mn penalty on it for indulging in "fraudulent and unfair trade practices". (BS)

Mahindra & Mahindra has acquired 450 acres land at Cheyyar in Thiruvannamalai district in Tamil Nadu to set up a greenfield automobile plant. The company would invest about Rs40bn in this plant in two phases. (BS)

The Aditya Birla Group is working on a restructuring plan to bring all its retail verticals under Pantaloon Fashion & Retail in a move to unlock value and accrue synergy benefits for the business. (BS)

Oil and Natural Gas Corporation has reversed a seven-year decline in its crude oil production, showing a marginal increase in output in 2014-15. (BS)

Essar Power Gujarat Ltd, an Essar Power subsidiary on 23% more electricity generation at its 1,200-MW Salaya Power Plant during 2014-15. With 63% plant load factor, the company generated 6,609mn units of electricity. (BL)

Auto components maker Rane Group has sold a six-acre land parcel in Chennai for Rs750-800mn. (BL)

Srei Equipment Finance proposed to raise up to Rs2.5bn through a public issue of redeemable non-convertible debentures with an option to retain oversubscription of additional amount up to Rs5bn. (BL)

Vedanta Group company Sesa Sterlite Ltd said the company has completed the merger of its subsidiary Sterlite Infra with itself. (ET)

Jet Airways welcomed the decision of the US Federal Aviation Administration (FAA) to restore India's aviation safety ranking to category 1, which paves the way for the airline to expand its operations in the US market. (ET)

NTPC is planning to acquire a plant with up to 4,000 MW capacity for about Rs200bn. The company is in talks with two-three firms, including stranded projects of private companies, and they are at advance stages. (ET)

E-retailer Snapdeal.com has bought online mobile recharge firm Freecharge for an undisclosed amount in a bid to boost its reach in the fast-growing mobile transactions business. (BS)

Power Grid Corp said the call to implement the proposed Rs30bn undersea power transmission link has to be taken by Sri Lanka. (BS)


Economic Snippets

Indian Railways’ earnings jumped 12.2% to Rs1,578bn in 2014-15, against Rs 1,407bn in the year-ago period. (BS)

Income Tax collections are expected to fall short by an estimated Rs 90bn because of a huge hortfall in the overall TDS mop up in the just concluded 2014-15 fiscal. (BL)

The government has allowed pharmaceutical companies to hike rates of 509 essential medicines used for treating various ailments like diabetes, hepatitis and cancer by 3.84% with effect from April 1. (BS)

08/04/2015

Positive start! Market to remain in a range

The RBI, on expected lines left key rates unchanged. But RBI governor’s assertion that there was no reason banks could not cut rates saw quick action from leading banks. Post monetary policy review, SBI and HDFC Bank cut their base rate from 10 per cent to 9.85 per cent, ICICI Bank effected a cut from 10 per cent to 9.75%.

The outlook is a positive start but indices may fail to sustain their gains. Banks will remain sideways but participation may be seen in other sectors. The broader indices may remain in a range with global cues also remaining unsure. The Dow and S&P 500 lost a few points while Nasdaq too ended marginally lower. Asian markets are mostly flat but Japanese stocks are moving higher with Nikkei up over half a percent. Hang Seng is up over 2%. Indian rupee inched lower, as Reserve Bank of India decided to maintain status quo with the interest rate trajectory. The repo rate and the cash reserve ratio remains unchanged at 7.5% and 4% respectively. The central bank has opted to take a pause after hiking interest rates twice this year. RBI is buying time to assess the inflationary pressures and the impact of the unseasonal rains this year on food prices.


Trading ideas (Time period: 1-3 days)

Britannia (BUY, above Rs2,250, Target Rs2,330, SL Rs2,210): Britannia has been consolidating at the top after a strong rally from July 2014 to first week of March 2015. From last three weeks, it is moving sideways between Rs2,100 and Rs2,240. However, in recent phase of consolidation, the stock found support yet again at the lower-end of the trading range and staged a pullback in last week’s trade and broke on the upside yesterday. Since it is an uptrending stock, traders should always use any phase of consolidation and pullback from it to build longs. (Duration 5 days)


Derivative strategies (Time period: Till expiry)

Buy Fut EXIDEIND April Above 185 with SL of 180 for target of 192/196
Lot size: 2000
Remarks: Net maximum profit of Rs 22000 and net maximum loss of Rs 10000.


Corporate Snippets

The coal ministry has once again allowed Coal India to revert to the old system, removing the cap on e-auction volumes with effect from April 2015. (BS)

Reliance Industries' most significant recent gas discovery MJ-1 in KG-D6 block may hold 1.4 trillion cubic feet of gas resources, roughly half of the reserves in the block's main gas fields. (ET)

Glenmark Pharmaceuticals has received the final approval from the United States Food and Drug Administration for sale of drugs meant to prevent post-menopause osteoporosis. (BL)

Hindustan Construction Company announced opening of share sale to qualified institutional investors at a price of Rs 30.98 apiece. (BS)

Century Plyboards (India) Ltd has set up a timber processing unit in Laos for import of raw material into India. This is the company’s second unit overseas. Earlier, it had established such a unit in Myanmar. (BL)

Supreme Infrastructure India has bagged a Rs2.07bn contract from National Highways Authority of India for widening a road in Punjab. (ET)

Dr Reddy's Laboratories and its subsidiary, Promius Pharma announced filing of three new drug applications with the US Food and Drug Administration. (BL)

SpiceJet withdrew from the Delhi High Court one of its pleas seeking orders to DGCA not to de-register its three Boeing 737 aircraft leased from an Irish firm, saying it has arrived at a settlement with the foreign entity. (ET)

United Spirits has withdrawn all of its brands from the Royal Challengers Bangalore team for the Indian Premier League T-20 cricket championship. (BS)

IndiGo has announced a bonus for its pilots and cabin crew for the fifth consecutive year. Pilots and crew will receive five percent of their annual salary as a bonus along with the April month pay. (BS)

Suzuki Motorcycle India Pvt Ltd, a subsidiary of, Suzuki Motor Corporation, Japan, on Tuesday launched the Gixxer SF, priced at Rs. 83,439 (ex-showroom, New Delhi). (BL)

The Government has fixed floor price of Rs. 315 for selling over 49.3mn shares of Rural Electrification Corporation on Wednesday. Post disinvestment, Government’s shareholding will come down to 60.64% from 65.64%. (BL)


Economic Snippets

The Reserve Bank of India is considering allowing companies to raise rupee debt offshore, , noting strong demand for such debt following issues by Asian Development Bank and International Finance Corp. (BS)

India's wheat production is likely to decline by 4-5% in the current crop year from the initial estimates of 95.76mn tons due to unseasonal rains, Agriculture Minister Radha Mohan Singh said. (BS)

Amendments to the Real Estate (Regulation and Development) Bill, 2013, were approved by the Union Cabinet. The Bill paves the way for the creation of a regulator to protect home buyer interests as well as ensure accountability and transparency. With the amendments the provisions of the Bill are also applicable to commercial real estate. (BL)

All diesel vehicles more than 10 years old and petrol vehicles more than 15 years old will be taken off the roads in the National Capital Region, the National Green Tribunal ordered. (BS)

01/04/2015

Don’t get fooled by randomness!

The indices may have ended flat on Tuesday after twisting and turning through the day. But that does not take away the fact that the Sensex and Nifty managed to post their best fiscal year gain since FY10. In fact, the recent subdued days saw higher delivery of shares, so much so that March delivery-based buying hit a two-year high. Counters which fell from their recent 52-week highs were in demand.

The outlook is a flat to negative start. The indices may be cautious ahead of a long weekend. Markets are closed on Thursday and Friday and will not be able to react to global cues and data till Monday. Investors may prefer to wait and watch ahead of the results season before immediately committing fresh capital. Global cues are also subdued. US indices closed in the red. Dow Jones fell 1.11%, S&P shed 0.88% and Nasdaq dropped 0.94%. Energy shares were among the biggest drags as crude oil fell. The Asian markets are mixed, the Hang Seng index in Hong Kong was up by half a percent after Chinese manufacturing activity in March were better than expected.



Trading ideas (Time period: 1-3 days)

Hindustan Uniliver (BUY, above Rs877, Target Rs912, SL Rs860): On the daily chart, the stock has formed a Bullish Harami candlestick pattern near the critical support of its 200-DMA. However in order to unfold bullish momentum stock needs to surpass immediate resistance of Rs877. The daily RSI entered into over sold territory near 35. mark last week and has been indicating positive divergence but buy confirmation is likely to emerge on a move past 45. All these factors suggest that risk reward remains favorable for initiating long positions above Rs877. (Duration 7 days)


Derivative strategies (Time period: Till expiry)

Buy FUT Cesc Apr above 615 with SL of 598 for target of 640-650
Lot size: 1000
Remarks: Net maximum profit of Rs35,000 and net maximum loss of Rs17,000.


Corporate Snippets

Hindustan Construction Co Ltd said it has bagged a contract worth Rs3.92bn from the Ministry of Road Transport and Highway for 4-laning of a road. (BS)

Larsen & Toubro (L&T) has been awarded a contract valued at Rs14.32bn by the Ministry of Defence for the design and construction of seven Offshore Patrol Vessels (OPVs) for the Indian Coast Guard (ICG). (BS)

State Bank of India (SBI) said that they have received board approval to divest up to 10% of its stake in SBI Life Insurance. (BS)

Schwing Stetter and Gulf Oil Lubricants India Ltd (a Hinduja Group Company) have inked an agreement to market co-branded lubricants for Schwing Stetter customers across the country. (BL)

Successful spectrum bidders, including Bharti Airtel, Idea Cellular and Vodafone, have made over Rs70bn towards upfront payments -- a move that will help the government narrow its fiscal deficit target for the fiscal. (ET)

Pidilite Industries said it will invest up to Rs1bn in Nina Waterproofing Systems in which it plans to have 70% equity stake. (ET)² NMDC said it has commenced trial production at its over Rs 6bn Biladila plant in Chhattisgarh. (ET)

Reliance Industries Ltd and Myanma Oil and Gas Enterprise (MOGE), an enterprise of the Government of Myanmar, have signed production sharing contracts for two offshore blocks (M17 and M18). (BS)

Twelve SpiceJet pilots who quit last year have withdrawn their resignation after the airline resumed timely payment of salaries, it claimed. (BS)

Biotechnology firm Biocon Ltd could file a prospectus for a share listing for its research services business arm Syngene International within the next two months. (BS)

Videocon D2H, the satellite television arm of Videocon Group, will make its Nasdaq debut following the listing of USD325 mn worth of American depository receipts it sold to US-based Silver Eagle Acquisition Corporation. (ET)


Economic Snippets

Locally produced gas in India will cost 8% less during April-September, the government said in a statement, due to a decline in global prices. It will cost about USD5.18/mmbtu on a net heat value basis compared with USD5.61/mBtu now. (BS)

Indian millers have bought up to 80,000 tonne of Australian wheat in recent deals, three trade sources said, the biggest such imports in five years as unseasonal rains damage the crop at home. Met warns of more rain in North and central India. (BL)

Aggressive bidding by power producers in the recent coal block auctions will result in under-recovery of fuel cost ranging from 39 paise to Rs 1.02 a unit for them for 25 years, according to a study. Consumers, however, stand to benefit, with a tariff reduction of almost 1% as early as in 2016-17. (ET)

31/03/2015

Silk Street! Smooth start, swings seen

Just when the market was running out of patience, the markets world over seem to have got a fresh lease of life. Expectations of monetary policy easing and infrastructure spending improvement in China have topped headlines as even as China unveiled details of its “New Silk Road” plan to boost trade and economic relations with Eurasia and Africa. The indices were anyways waiting for a reason to rise after being subdued for around 8 days.

The outlook is a smooth start with the Nifty managing to bounce back before touching its 200-DMA. The Bank Nifty too has staged a smart recovery. The 8540 level will be watched on the upside as it is the 100 DMA. Profit booking could set in later in the day. Stocks like ICICI & HDFC Bank will see action after they cut rates. Colgate Palmolive India could smile as it considers third interim dividend today. State Bank of Mysore will also consider interim dividend today. VHCL Industries may consider issue of bonus shares today. EGMs for the day include Canara Bank, Vesuvius India and ZF Steering Gear India. Data awaited for the day includes core sector growth for February and government finances.


Trading ideas (Time period: 1-3 days)

SKS Microfinance (BUY, above Rs455, Target Rs475, SL Rs445): SKS Microfinance is in a strong uptrend since August 2013. It is moving higher with the support of its 100-DMA, wherein every decline is met with buying interest. Since last 10 weeks, the stock has been going through period of consolidation between Rs470-400 after a strong rally. This consolidation eventually took shape of a bullish triangle. After yesterday’s trade, the stock is on the verge of breaking on the upside. Any kind of consolidation in an uptrending stock tends to break on the upside. (Duration 5 days)


Derivative strategies (Time period: Till expiry)

Buy FUT IOC Mar above 357 with SL of 345 for target of 377-380
Lot size: 1000
Remarks: Net maximum profit of Rs23,000 and net maximum loss of Rs12,000.


Corporate Snippets

Oricon Enterprises Ltd (OEL) has acquired 70% stake in Oriental Containers Ltd (OCL) from its joint venture partners OC Holding Ltd, Mauritius, at a consideration of Rs1.05bn. With this, OCL has become, OEL's 100% subsidiary. (BS)

Telangana State Power Generation Corporation Limited (TSGenco) has awarded Bharat Heavy Electricals Limited (BHEL) with an EPC (engineering, procurement and construction) order for setting up a 4x270 Mw thermal power plant in the state. Valued at over Rs50bn, the order envisages setting up the power plant at Manuguru in Khammam district. (ET)

Mangalore Refinery and Petrochemicals is seeking a rare cargo of low sulphur fuel oil (LSFO) to meet pollution standards of Karnataka. (BS)

SKS Microfinance said it has has completed securitisation of Rs3.44bn. (BL)

Arvind Ltd said its lifestyle brands subsidiary would pay USD3.2mn to Ralph Lauren to settle a lawsuit the US-based luxury fashion house filed in 2013. (BL)

As part of its restructuring plan, commercial vehicle major Ashok Leyland has divested its entire stake in company's Czech Republic subsidiary Avia Ashok Leyland. The company made a cash realisation of USD10.96mn. (ET)

EID Parry (India) Ltd said that it has divested its entire shareholding of 1,02,222 equity shares of Rs 100 each in Alagawadi Bireshwar Sugars Pvt Ltd for Rs17mn. (BS)

In tandem with the Centre's Make in India campaign, Germany-based automobile components manufacturer Robert Bosch unveiled a series of products developed at Bosch India that look to address various day-to-day challenges using smart applications. (BS)

Godrej group's gourmet food retailer Godrej Nature's Basket plans to launch an e-commerce marketplace soon in the cities where its stores are not present. (BS)

ICICI Bank and HDFC Bank have cut rates by up to 0.25% on high value fixed deposit on select maturities, a move that could be a precursor to lower lending rates. (ET)

GVK Power & Infrastructure is likely to file a draft prospectus for an up to Rs15bn initial public offer (IPO) of its airport unit soon. (BL)

Multi Commodity Exchange (MCX) has sold around 9mn warrants of Metropolitan Stock Exchange (MSXI), earlier known as MCX-SX, worth Rs22mn to IL&FS Financial Services. This is the second such sale of MSXI warrants by MCX to IL&FS this month. (BS)


Economic Snippets

The Karnataka government will not give relaxation in payment of value added tax to any e-commerce company or online marketplaces. (BS)

Aiming to mop up an additional Rs40bn in goods earning, the Railways will increase its freight rates for several commodities including grains, pulses, urea, coal and cement from April 1 as proposed in the Railway Budget 2015-16. (BL)

The master plan for the capital of Andhra Pradesh, coming up in the Vijayawada region is likely to be ready June 2015. (ET)

30/03/2015

Positive start to the week

After days of weak ends, the market is finally looking up for the day. There is nothing extra-ordinary in terms of cues really, but looks like at least the constant fall may be arrested for the time being. Over the weekend, Federal Reserve Chair Janet Yellen said rates would likely start rising later this year though she reinforced her point that the pace of tightening would be gradual and would depend a lot on data.

The outlook is a positive start. The rupee movement will be in focus even as reports state that the telecom auction may keep the dollar flow on. The global cues are more or less positive. US economic growth show a slowdown, dollar saw some weakness and gold lost some of its luster after a rally for over a week. The day will see the AGMs of Alumeco India Extrusion and Bf Utilities. EGMs for the day include Lokesh Machines, Venlon Enterprises, Rajsanket Realty and Systematix Corporate Services among others. Sharon Bio-Medicine could be in action as it considers allotment of equity shares.


Trading ideas (Time period: 1-3 days)

Ashok Leyland (BUY, above Rs69.50, Target Rs73.50, SL Rs67.50): Despite the corrective phase in last three weeks, the stock has managed to sustain above the support of rising trendline and witnessed a gradual recovery in last two trading sessions. It is showing signs of resuming its uptrend after witnessing a period of correction and retracing 23.6% of its upmove. Also, it has been an uptrending stock since 2014, moving along with the support of its rising trendline, which makes it a buy on declines at support. (Duration 5 days)


Derivative strategies (Time period: Till expiry)

Buy Fut UPL April Above 442 with SL of 434 for target of 455/462
Lot size: 1000
Remarks: Net maximum profit of Rs 20000 and net maximum loss of Rs 8000.


Corporate Snippets

Reliance Communications said it has gained capability to provide 4G services across the country on the back of spectrum won by it in the recently concluded spectrum auction. (BS)

Shareholders of Trinetra Cement Ltd have given their consent to the scheme of amalgamation and arrangement between the company and Trishul Concrete Products Ltd with India Cements. (BS)

UPL is buying a 40% equity stake in Brazilian firm Sinagro group, which is a distributor of farm inputs-crop protection, fertilisers and seeds in the Cerrado region of Brazil. (BS)

Grasim Industries has ventured into retailing women garments made of viscose staple fibre. The company’s subsidiary, Birla Cellulose, launched the garment brand Liva, which will be available at 1,000 outlets across 50 cities. (BL)

Government is likely to exempt oil producers ONGC and Oil India Ltd from payment of fuel subsidy in the fourth quarter ending March 31, a senior Petroleum Ministry official said. (BL)

NMDC limited will complete the construction of the 3 million tonnes per annum (Mtpa) integrated steel plant in Nagarnar in Chhattisgarh by 2016. (BL)

To capture a pie of the flourishing online retail business, Ashapura Intimate Fashion (AIFL) plans to launch its own e-commerce venture in April. The launch will coincide with the launch of physical stores in major cities across the country. (BS)

The Taj Group announced the opening of Taj Dubai located in the Burj Khalifa downtown area in Dubai. This hotel has 296 rooms including 2 lavish suites. (BS)

SpiceJet plans to lease seven more Boeing 737 aircraft by May while another Rs5bn is expected to be infused by its new owner Ajay Singh next month. (ET)

Prime Minister Narendra Modi is expected to announce a Rs360bn capacity expansion plan for SAIL's Rourkela steel plant when he inaugurates the modernised unit of the state-owned firm on April 1. (ET)

Union Bank of India has deferred its plan to raise Rs13.86bn fund through qualified institutional placement (QIP) to the next fiscal. (BS)

GlaxoSmithKline has reached a deal with the British government to supply a new meningitis B vaccine, following a lengthy stand-off over price with the product's previous owner Novartis. (BL)

Strides Arcolab has launched its generic drug Sofosbuvir in India under the brand name 'Virso'. This drug, which is used for Hepatitis C treatment and is shown to have cure rates of around 90%, according to Strides officials. (BL)

The construction wing of Larsen & Toubro – L&T Construction – has secured orders worth Rs17.11bn during March. (BL)

Jet Airways launched daily international flights to Abu Dhabi from Pune, Ahmedabad and Mangalore. (ET)

To tap into the growing middle class, travel services provider Thomas Cook is working on a model to reach out to its customers by setting up small outlets in high footfall areas such as malls and markets. (ET)


Economic Snippets

Chhattisgarh would invest Rs95bn to upgrade 44 roads in the state. (BS)

Come April the price of electricity and piped cooking gas should get cheaper, as weak international prices have led the government to reduce the price of domestically produced natural gas by almost 59 cents. The new price will be USD5.02 a unit, on the net calorific value. (BL)

The Centre will work with the state governments to raise the compensation limit for farmers affected by unseasonal rains and hailstorms. As per preliminary report, damage to rabi (winter) crops due to untimely rains is estimated at 18mn hectares across 13 states. The total cultivable area in rabi season is 60mn hectares. (ET)

The long delayed Kundli-Manesar -Palwal (KMP) Expressway in Chandigarh will now will be six-laned instead of earlier planned four-laned, with work on the project set to resume within one month. (ET)

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Tiruchirappalli
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+914312410756

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