Friday, 17 April 2015

A flat start likely for Indices

A flat start is likely for the Indices. Global Indices all ended marginal down, Dow Jones down 0.04% at 18107.77, Nasdaq down 0.06 percent at 5007.79. S&P 500 down 0.08 percent at 2104.99. NYSE was down 0.01 percent at 11169.75

Tata Motors and could see gains as the Rs. 7,500-crore rights issue opens today and closes on May 2. Attention is now on Reliance. Though crude oil prices fell, no major change was seen in demand for petroleum products, which means product spreads have increased leading to better GRMs. Reliance Industries could well report one of its best GRM in Q4. Recent movement in the stock seems to suggest that the street is speculating on whether RIL can clock a net profit close to the Rs.6000 mark.

IT companies continue to disappoint to some extent. TCS saw substantial drop in net profit for Q4 after it rewarded staff with a one-off bonus. Overall weakness and cross currency issues also weighed on the performance.

Tata Consultancy Services announced that it will pay employees a Special Reward or one-time bonus to mark the 10th anniversary of the company’s initial public offering in 2004.Globally all employees who have completed at least one year of service will be eligible for the special bonus payment. Each employee will be given a reward equivalent to one week’s salary for every year of service completed at TCS. For the company, the total consideration for this Special Reward to employees to mark ten years of listing on India’s largest stock exchanges will be Rs 2,628 crore.

Thursday, 16 April 2015

A higher opening is likely for the Indices

A higher opening is likely for the Indices. Global cues are by and large positive. Dow rose 0.42% while S&P 500 gained 0.51%. Nasdaq added 0.68%. Asian markets were trading mixed. Japan's Nikkei is down while Hong Kong's Hang Seng index is up. Rupee is seen firming up as reports indicate banks may be selling  dollars following its weakness against the euro. At the same time PSUs are expected to buy dollars which will prevent any undue appreciation in the Indian currency.

As the result season kicks in, attention will be on tech companies today. Q4 is typically a soft quarter for Indian IT companies as client’s freeze their IT budgets for the calendar year and its allocation. Discretionary expenditure is weak but accelerates from Q1 onwards. At the broader level, the business environment for offshore vendors is gradually improving with demand from key markets of US and Europe remaining fairly strong. But all that will be reflected in the current quarter (Q1). All eyes are on TCS which declares its Q4 results tommorow

Governor Raghuram Rajan will be attending G20 Finance Ministers and Central Bank Governors meetings and World Bank Spring Meetings 2015 at International Monetary Fund, Washington DC. The Prime Minister Narendra Modi meanwhile is touring Canada.

Sun Pharmaceutical Industries Ltd. and the Technion – Israel institute of technology announced that their respective subsidiaries have entered into an exclusive worldwide research and license agreement.

Wednesday, 15 April 2015

A marginal opening likely for Indices

A marginally higher opening is likely for the Indices. Dow rose 0.33% while S&P 500 gained 0.16%. Nasdaq was up 0.22%. Asian indices are mixed with Japan's Nikkei 225 index flat and Hong Kong's Hang Seng index marginally higher. China's Shanghai index is also subdued.

IMF and the World Bank have stated in their reports that India's economic growth rate is likely to overtake China in 2015 to become the world's fastest growing major economy.The  IMF-World Bank spring meetings in Washington is underway and Finance Minister Arun Jaitley is there along with the Governor of Reserve Bank of India, Raghuram Rajan.

According to the World Bank, India's growth acceleration is being driven by business-oriented reforms and improved investor sentiment and that growth

Global warming coupled with changes arising out of an evolving El Nino may have combined to cause the heavy spells of unseasonal rain which have devastated crops in many parts of India since late February, a leading meteorologist has said.

Government has shortlisted various Public Sector Units including NMDC for stake sale to achieve current fiscal's disinvestment target of Rs. 41000 Crores.

ONGC, OIL and BPCL is planning to invest $6 billion in developing a giant gas field off the Mozambique coast and converting the fuel into LNG for export to nations like India, Oil Minister Dharmendra Pradhan reportedly said. ONGC Videsh Ltd, Oil India Ltd and a unit of Bharat Petroleum Corp Ltd (BPCL) hold 30% interest in Rovuma Area-1.

Bharat Heavy Electricals Limited (BHEL) has successfully commissioned another 600 MW thermal unit in Chhattisgarh. The unit was commissioned at Dainik Bhaskar Power Limited (DBPL)’s upcoming 2x600 MW thermal power project located at Dhabra in Janjgir Champa District of Chattisgarh.

Axis Bank has cut its base rate by 20 basis points to 9.95%, according to a media report. The bank has also decreased retail deposit rates by 25 bps across maturities.

India's largest car-maker by volume, Maruti Suzuki is planning to outdo its rivals by planning a double-digit growth in the new financial year. The company has reportedly set a target of 10-11% growth, which will require it to sell close to 1.3 million units in this financial year, according to media reports. 

Monday, 13 April 2015

A higher opening likely for Indices

A higher opening is likely for the indices as investors will want to pay more attention to stock-specifics rather than take an overall view on the market. Global cues are mixed. US indices were mostly higher. Japan's Nikkei 225 is down while Hong Kong's Hang Seng index is trading higher. China's Shanghai index is also up almost a percent.

ACC, TCS, RIL and IndusInd Bank are some of the major companies announcing quarterly numbers this week. We expect Banking sector performance in Q4 FY15 to be a mixed bag with most private banks continuing to report strong growth and earnings while PSU banks reporting another soft quarter market by sustained pressure on margin and asset quality.

Prime Minister Narendra Modi said the government plans to institute a "rational framework" for acquisition of land without causing distress to farmers and other landowners. Government agencies are reportedly lining up nearly Rs 40,000 crores of bonds in the next few months, but the yields may be lower by as much as a one-and-a-half percentage points, thanks to falling interest rates and rising investor appetite for such bonds. Government's present venture, NITI Aayog completes 100 days on 11th April, 2015, from its inception as a ‘Think Tank’ of the Government to taking steps in liaising with States while fostering the spirit of cooperative federalism.

Infosys plans to put in place a new incentive structure to reward its sales superstars in a bid to retain key personnel amid a scramble to win large outsourcing deals and regain industry-level growth rates, a report stated.

Maruti Suzuki aims to again outpace the local market in the new financial year with double-digit sales growth. Company's local unit of Japan's Suzuki Motor, which sells one in every two cars in the country, has internally set a target of growing 10-11% by selling 1.29 million to 1.30 million vehicles in the local market in the year that began on April 1, people with knowledge of the plan said. It aims to manufacture 1.39 million to 1.44 million units, including for exports, says a report.

HDFC Ltd has got RBI clearance to raise up to $ 500 mn (about Rs 3,100 crore) as External Commercial Borrowing (ECB) to fund its business growth.

HDFC Ltd also announced a reduction in its Retail Prime Lending Rate (RPLR) by 20 basis points, with effect from April 13, 2015. This reduction would benefit all customers. The company has received an approval from RBI to raise external commercial borrowing (ECB) of up to USD 500 million. The said approval is valid for a period of 6 months.

Friday, 10 April 2015

A higher opening likely for Indices

A higher opening is likely for the Indices whixh may be facing resistance a bit too soon. Global cues are mostly positive. Dow Jones added 0.31%, S&P 500 rose 0.45% while Nasdaq ended half a percent higher. Asian markets are mixed. Japan's Nikkei 225 is in the red while Hong Kong's Hang Seng index and China's Shanghai index are trading marginally higher.

A swinging day in a narrow band may see action shifting to side counters. Greece is back in the news and for the right reason perhaps. It has made a crucial payment to the International Monetary Fund. Athens said the 460 million euros ($497 million) payment has been scheduled.

China has moved to prop up its struggling iron ore industry by slashing taxes, potentially expanding a global glut and undermining a strategy by mega miners to drive out high-cost competitors, says a report. Brazil's Vale and Australian miners Rio Tinto and BHP Billiton have sought to drive out higher cost and less efficient miners in China, to make way for a flood of new production.

Hyderabad special court has announced a 7-year term for Satyam's chief Ramalinga Raju, along with a fine of Rs. 25 lakh, after he was found guilty in one of India's largest corporate scandal, Rs. 14,000-crore Satyam Computers scam in 2009. CBI found all accused guilty of conspiracy and criminal charges in the Satyam scam case. All 10 accused have been convicted of almost all charges, said prosecutor K. Surender outside the court. Raju has been faced charges of forgery, criminal conspiracy and breach of trust.The CBI, who is handling the case, claimed that Satyam scam caused Rs. 14,000 crore loss to Satyam shareholders. Satyam Computers has since been liquidated and the entity now merged with Tech Mahindra.

SBI has revised the interest rate on bulk deposits after the RBI decided to maintain status quo on policy rates.

Thursday, 9 April 2015

A higher opening likely for Indices

A higher opening is likely as 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. US indices ended with marginal gains reacting to minutes from Federal Reserve meeting which hinted the Fed was on track for an interest rate hike this year. Dow rose 0.15%, the S&P 500 added 0.27% and Nasdaq closed 0.8% higher.  Asian indices are mostly trading in the green.

Reliance may remain in focus after it hit upon a very significant gas discovery in the MJ-1 field of the KG-D6 basin.

Prime Minister Narendra Modi, said that supporting the small entrepreneurs of India is the biggest way to help the Indian economy grow and prosper. Speaking at the launch of the Pradhan Mantri MUDRA (Micro Units Development and Refinance Agency) Yojana in New Delhi, the Prime Minister expressed confidence that within a year’s time, major banks would also adopt the MUDRA model. 

Wednesday, 8 April 2015

A higher opening likely for Indices

A higher opening is likely for the Indices. 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%

Following 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%.

Reliance Industries recent gas discovery MJ-1 in KG-D6 block may hold 1.4 trillion cubic feet of gas resources, according to reports. Report said that MJ-1 may hold contingent resource of between 0.988