Tuesday 7 April 2015

Indices to open positive

Two rate cuts have taken place this calendar year but the transmission and impact of the same is yet to seen.Indices will take off from where they left on Monday with the Nifty moving closer to the 8700 mark. 

Bombay-Stock-Exchange-Building
Two rate cuts have taken place this calendar year but the transmission and impact of the same is yet to seen. The central bank is expected to stand pat with the interest rates; however it can indicate an inclination to reduce interest rates provided that inflation moderates further. In this respect, retail inflation during February grew 5.37%, the third consecutively monthly rise. Unseasonal rainfall in many parts of the country has given birth to the threat of rise in food inflation, which restricts the RBI’s maneuverability on the interest rate trajectory. It seems the central bank will take a pause after the two unscheduled cut in the repo rates this year. Meanwhile, market participants expect RBI to tinker with the liquidity tools, wherein the consensus is calling for some cut in the CRR.
The outlook is a smart start. Indices will take off from where they left on Monday with the Nifty moving closer to the 8700 mark. Should a rate cut come, the market will treat it as a pleasant surprise and surge. Global cues are upbeat for now. US market closed in the green.  Dow Jones and S&P added 0.66% while Nasdaq gained 0.62%. Asian indices are trading higher. Nikkei 225 and China's Shanghai index are trading ~0.7% higher.
The government is planning record asset-sale plan for the current fiscal on Wednesday, seeking to raise about Rs 3,500 crore this fortnight from the divestment of stakes in Rural Electrification Corp. Ltd (REC) and Power Finance Corp. Ltd (PFC), a report stated.
Nineteen companies are set to tap the capital market through initial public offerings in the next couple of months, to raise about Rs. 12,000 crore, says a report.  In fact, VRL Logistics will announce its IPO details later in the day.
Business activity in the Indian private sector economy expanded for the eleventh consecutive month in March. The HSBC India Composite PMI Output Index fell marginally from 53.5 in February to 53.2 in March, indicating a marked rate of growth. Whereas manufacturing production expanded at an accelerated pace, services activity growth moderated.
Finance Minister Arun Jaitley said that taxation regime remains a challenge and that both the direct and the indirect taxation rates need rationalisation. He said that India is not a tax haven and all taxes due must be paid, in a veiled reference to all entities who have stashed their money overseas. He also hinted towards the Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015, that was tabled by him in the Lok Sabha last month saying that "India is not so vulnerable that every legitimate demand can be termed tax terrorism."
The government is planning to explore strategic sale and listing of subsidiaries of firms to unlock value.  A report stated that the government may go for stake sale in some hotels and non-strategic firms. At present, there are 121 subsidiaries of 169 CPSEs.
There are reports that Dilip Shanghvi Family & Associates are in talks to buy 30% stake in ABG Shipyard for around Rs 2000 crore. L&T is also in race to acquire a stake in ABG Shipyard, says report.
Bajaj Auto declared their sales volume for the month of March 2015. The reports suggest another weak monthly sales of Bajaj Auto, as sales went down  18% at 2.5 lakh as against 3.04 lakhs in March 2014. The sales of motorcycles dipped 22% and stood at 2.09 lakh units as against 2.70 lakh units in the last year's corresponding period. 
HDIL stock ended 25% higher at Rs 128.Report said that Real estate developers in Mumbai and Delhi are staring at a piling inventory 
SML Isuzu stock was locked at the 20% upper circuit at Rs. 1,415 after company reported 32 per cent jump in monthly vehicle sales for the month of March 2015 on a year-on-year basis. The counter witnessed trades of around 9,500-odd shares, and there were pending buy orders for over 12,000 shares on the BSE.
Gokaldas Exports stock ended 20 per cent upper circuit at Rs. 52.50 on entering into a Share Sale Agreement with Silver Spark Apparel, Robot Systems Private and Gautam Chakravarti towards sale of entire shareholding in Robot Systems Private to Silver Spark Apparel. 
Kitex Garments soared 20% to Rs. 656 on the back of stellar performance in the March quarter. The company reported 80% jump in Q4 net profit at Rs. 41.63 crore for the quarter ended March 2015 when compared with Rs. 23.13 crore in the corresponding quarter a year ago. Total income rose by 29.5 per cent to Rs. 158.03 crore from Rs. 122.10 crore during the same period.
KEC International ended 2% up at  Rs. 85 after the company announced that it has secured new orders of Rs. 1,565 crore in its transmission & distribution and cables businesses.
Force Motors stock ended 8% higher to Rs 1,528 after company reported 18% yoy total vehicles sales at 3,771 units in the month of March 2015.
Torrent Pharmaceuticals ended 4% higher to Rs. 1,246, also a fresh life-time high on reports that the company has received US FDA approval for generic drug Exforge.
Aurobindo Pharma has scaled to hit a fresh 52-week high after the company received final approvals from the US FDA to manufacture and market Sildenafil Injection
Ramky Infra zoomed over 10% to Rs. 45.80 on securing fresh work orders worth Rs. 829 crore.
J.Kumar Infraprojects ended 1% higher to Rs. 713 on bagging fresh orders worth Rs. 367.31 crore from MMRDA & MCGM.
Fiem Industries ended 7% higher at Rs 686 on the back of new order wins

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