• Indian stock market and companies daily report (September 22, 2015, Tuesday)

    Indian markets are expected to open flat tracking the SGX Nifty and mixed Asian cues.

    US markets closed in the green as most of the major sectors ended the day showing only modest moves. Investors continue to watch for economic data that could influence the Fed's decision next month.

    European markets bounced back from the weakness at the end of the previous week on bargain hunting and investor relief after the outcome of the Greek election over the weekend.

    Indian markets closed flat led by global cues in the absence of any major domestic triggers.

    Markets Today

    The trend deciding level for the day is 26,1 33 / 7,958 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 26,293 - 26,394 / 8,007 - 8,037 levels. However, if NIFTY trades below 26,133 / 7,958 levels for the first half-an-hour of trade then it may correct towards 26,033 - 25,872 / 7,928 - 7,878 levels.

    IDBI Bank may be given operational freedom

    Indian government is working out measures to reform functioning of state-owned banks. Government has holding in Axis Bank through various government instrumentalities with no interference in operations of bank and the performance of the bank has been commendable. Finance minister Arun Jaitley suggested that government may allow IDBI Bank to follow a model similar to Axis Bank Ltd of greater operational freedom. There is lack of clarity on this issue; hence we maintain Neutral rating on the stock, however development on this front would be positive for the stock.

    Commodity M&As may run into hurdle

    The Centre has asserted that captive mines allotted in the past cannot be transferred under the new mining law. The government's stance is based on the new Mines and Mineral Development and Regulation Act of 2015 (MMDR) that only allows transfer of mining leases in cases where the right to mine has been acquired through an auction. This could mean big-ticket deals such as UltraTech's takeover of Jaypee's cement plants and Lafarge's plan to sell two units to Birla Cement may have to be renegotiated.

    The stand, as explained by Mines Secretary Balvinder Kumar, is expected to block consolidation moves in mineral-dependent commodity sectors such as steel, aluminium and cement. The mines ministry had sought the law ministry's opinion on the issue, especially since the rules for mineral development have a provision for transferring mining rights. The law ministry is clear that the Act's provisions override the rules and the MMDR law is very clearly phrased so that the transferability clause will be applicable only for future mines that would be auctioned.

    Tata Motors to launch SCV passenger vehicle "Magic Mantra"

    Tata Motors plans to launch a new small commercial vehicle (SCV) 'Magic Mantra' next month, thereby expanding product range under its popular public transport vehicle 'Tata Magic'. The new model would be powered by a 40 HP diesel engine as compared to the 16 HP engine in the Tata Magic, thus making it more powerful and capable of going long distances. The company currently sells around 2,000 units per month of Tata Magic range of vehicles in the country. Further, the company has decided to double the warranty on these vehicles to 2 years or 72,000 kilometres as against the current 36,000 kilometres or one year. "Magic Mantra" would further broaden the LCV passenger range for Tata Motors. We currently have Buy rating on the stock.

    Economic and Political News

    - Enhanced southwest monsoon to bring good rains: IMD

    - Indian economy to outpace 7.3% growth of last fiscal: Finance Minister

    - Tamil Nadu commercial tax collections up 6% in 2014-1 5

    Corporate News

    - Infosys bags three-year deal from TOMS Shoes

    - NTPC's '700cr tax-free bonds to open tomorrow

    - Hindalco arm to sell its closed Australian copper mine to Lighthouse Minerals Holdings for A$1 5 million

    Contributed by Angel Broking
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