Indices may get nervous at higher levels as the result season gets underway. India WPI numbers are expected.
The good news is that India's economic growth rate will overtake China in 2015 to become the world's fastest growing major economy, the IMF and World Bank have stated in separate forecasts. IMF sees 7.5% growth next year while World Bank sees India’s growth at 7.9%. The IMF-World Bank spring meetings in Washington is underway and Finance Minister Arun Jaitley is there along with RBI Governor Raghuram Rajan.
India's growth acceleration is being driven by business-oriented reforms and improved investor sentiment and that growth could reach 8 per cent in fiscal year 2017-18 on the back of significant acceleration in investment growth, the World Bank says.
The outlook is a positive start. Indices may get nervous at higher levels as the result season gets underway. India WPI numbers are expected. EU interest rate scenario will also be watched. Market will also react to CPI numbers which were lower in March at 5.17%. Sugar stocks could be in focus as Food Minister Ram Vilas Paswan will brief media about sugarcane arrears issue.
The 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.
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 PSUs including IOC, National Fertilizers, MMTC, Hindustan Copper and ITDC for stake sale to achieve current fiscal's disinvestment target of Rs 41,000 crore, according to reports.
Department of Disinvestment is planning to divest 5-15% government stake in these state-owned companies. While 10% stake each would be diluted in Engineers India Ltd, NALCO, NMDC and Indian Oil Corporation.
About 15% stake would be up for sale in National Fertilizers Ltd, Hindustan Copper Ltd, India Tourism and Development Corp, State Trading Corp and MMTC, says report.
Without further fiscal reforms, the Indian government may find it difficult to sustain the increase in public investment spending, according to a report, titled "India's Fiscal Roadblocks Could Stall Infrastructure Progress," Standard & Poor's Ratings Services said ."Although India's budgetary performances have strengthened in recent years, its hard-won fiscal improvements could yet unwind because of a financial or commodity shock," said Standard & Poor's credit analyst Kim Eng Tan. "Subsidy spending is one key source of weakness, despite fuel-subsidy reforms in 2014. Another constraint is the heavy government debt."
ONGC, OIL and BPCL is planning to invest $6 bn 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."We will be investing another $6 bn by 2019 to develop Rovuma Area-1 field," Pradhan said.
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 Chhattisgarh.
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.
Fitch Ratings has affirmed Indian Oil Corporation Ltd's (IOC) Long-Term Foreign-Currency Issuer Default Rating (IDR), its senior unsecured rating and ratings on its outstanding senior unsecured debt at 'BBB-'. The Outlook is Stable.
Indag Rubber was locked at the 20% upper limit at Rs. 1,066 on the back of strong Q4 performance. The company reported a solid 50 percent jump in Q4FY15 net profit at Rs. 9.48 crore when compared with Rs. 6.34 crore in the corresponding quarter a year ago. Total income too was up over 18 percent to Rs. 65.79 crore from Rs. 55.68 crore.
HDFC ended flat at Rs 1303 on the back of RBI nod for raising $ 500 million via the ECB (External Commercial Borrowings) route.
RPP Infra Projects jumped 1.2 percent to Rs. 152 on the back of winning a fresh order worth Rs. 46.53 crore from Hindustan Prefab, an Government of India Enterprise.
Shriram EPC zoomed over 12% to Rs. 44.10 after the company's board approved conversion of the funded interest term loan to the maximum of Rs. 313 crore of the CDR Lenders into equity shares of the company.
Larsen & Toubro gained 2% at Rs. 1,801 after the company signed a Memorandum of Understanding (MoU) with AREVA for Jaitapur Nuclear Power Project.
Sequent Scientific scaled to a fresh 52-week high at Rs. 668 after the company announced that it allotted 11 lakh warrants to Pronomz Ventures LLP, a Promoter Group entity, at Rs. 475 on 11 April 2015. The stock finally ended at Rs. 651, up 17 percent.
Reliance Industries too extended its winning run, and was up another 2% at Rs. 922. The stock has rallied nearly 12% in the last five trading sessions. Media reports stated that the company has discovered massive gas reserves at MJ-1 block in its KG-D6 basin.
Sun Pharmaceutical Industries stock ended 3% higher 1% at Rs 1148.The company has announced that the Allotment Committee of the Board of Directors has approved the following at their meeting held on April 10, 2015 allotted 334,956,764 (Thirty Three Crore Forty Nine Lakh Fifty Six Thousand Seven Hundred and Sixty Four) equity shares of Re. 1 each to the shareholders of erstwhile Ranbaxy in the ratio of 8 (eight) equity shares of Re. 1 each of the Company for every 10 (ten) equity shares of Rs. 5 each of erstwhile Ranbaxy held. After allotment, the total number of issued and paid up equity shares of the Company has aggregated to 2,406,120,674 of Re. 1 each.
Hester Biosciences has continued its winning run into the tenth straight trading session.The stock has hit 5% upper circuit at Rs 681.In the process, the stock has surged by nearly 63 percent in the last ten trading sessions.
Firstsource Solutions Ltd stock closed 4% higher at Rs 34 after report said that the company is looking at Organic & Inorganic growth.
India will overtake China as the fastest growing emerging economy in 2015-16 by clocking a growth rate of 7.5% on the back of recent policy initiatives, pick-up in investments and lower oil prices, the International Monetary Fund said.
