• Indian stock market and companies daily report (September 24, 2015, Thursday)

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

    The US markets closed flat showing a lack of direction reflecting continued uncertainty about the outlook for U.S. monetary policy following last week's Federal Reserve decision.

    European markets ended in the green led by bargain hunting at lower levels and improvement in market sentiment on account of rebound in shares of Volkswagen after 2 days of sharp declines.

    Indian equities opened lower but recovered during the day on account of positive cues from Europe and comments from Chinese President Xi Jinping that a cheaper currency would not be used to boost exports.

    Markets Today

    The trend deciding level for the day is 25,714 / 7,817 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 26,043 - 26,262 / 7,911 - 7977 levels. However, if NIFTY trades below 25,714 / 7,81 7 levels for the first half-an-hour of trade then it may correct towards 25,495 - 25,1 67 / 7,752 - 7,658 levels.

    RBI eases overseas borrowing rules for domestic companies

    The Reserve Bank of India (RBI) proposed relaxing some of the rules for domestic companies looking to raise funds overseas through external commercial borrowing, a long-anticipated move. The RBI said companies will now be able to borrow up to $50 million in ECBs with 3-year maturities and more than $50 million for 5-year maturities. The previous limits had been around $20 million.

    The RBI also said it would now allow real estate investment trusts and infrastructure investment trusts to raise rupee-denominated funds offshore, a step likely to provide some relief to the cash-strapped real estate sector in India.

    As part of the proposals, the RBI also said it would allow funds raised from ECBs to be directed to additional purposes, including certain infrastructure lending and some overseas direct investments.

    However, the RBI also proposed tightening how much companies can pay to borrow via ECBs, saying it would lower by 50 basis points the current all-in-cost ceiling of 350 bps over 6-month Libor for 3-5 year loans and 500 bps over Libor for above 5 year maturities.

    Bajaj Auto quadricycle (RE60) receives certification under European WVTA regulations; can commence exports

    Bajaj RE 60, India's first internal combustion engine quadricycle, has been certified under the European Whole Vehicle Type Approval (EU WVTA) regulations. The certification will allow Bajaj Auto to export the soon-to-be-launched quadricyle to Europe and other markets that recognise the EU WVTA standard. The certification was done by Bengaluru headquartered TUV Rheinland India, a subsidiary of the Germany-based TUV Rheinland group and a leader in testing, inspection, certification and training.

    The EU WVTA regulations are advanced in terms of stringent environmental standards for exhaust emission, noise emission, electromagnetic radiation and high level of safety requirements for braking, lighting, exterior projection, safety belts and anchorages, etc.

    Given the litigation on introduction of quadricycles in the domestic markets, Bajaj was mulling exporting the vehicle. It can now commence exports given the certification. We currently have Accumulate rating on the stock.

    Economic and Political News

    - Government to simplify foreign loan norms, liberalise FDI policy

    - Government to miss direct tax mop-up target for third year

    - Shipping ministry plans to lease land owned by lighthouses for tourism

    Corporate News

    - Pfizer to sell thane plant for '1 78 crore

    - Elder Pharma plans to sell overseas units

    - Orient G reen Power raises '250 crore

    Contributed by Angel Broking
About us
StockMarketsReview.com provides news coverage, analysis and researches for world stock markets, commodities and currencies. We publish articles provided by experts of leading brokerage and investment companies. At our website investors can find daily, weekly and monthly reports, news, recommendations on the IPOs and fundamental analysis for stocks which are currently traded at the stock exchange.