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Reports India

Indian stock market and companies daily report (April 09, 2014, Wednesday)

April 9, 2014, Wednesday, 05:41 GMT | 00:41 EST | 10:11 IST | 12:41 SGT
Contributed by Angel Broking


Indian markets are expected to open in green tracking positive opening trades in SGX Nifty and flat opening in most of the Asian markets.

In spite of subdued buying interest was somewhat subdued, US stocks moved mostly higher over the course of the trading day on Tuesday. While the major averages all closed in positive territory, the Nasdaq outperformed its counterparts. The Nasdaq advanced 0.8% to 4,113, while the Dow edged up 0.1% to 16,256 and the S&P 500 rose 0.4% to 1,852. Bargain hunting likely contributed to the strength on Wall Street, with traders picking up stocks at reduced levels following the recent pullback. However, traders seemed somewhat reluctant to make any significant moves as they wait for the latest earnings season to get underway. Meanwhile, European stocks fell for a second session on Tuesday, hurt by a potential breakdown in relations between Russia and the West over Ukraine.

Indian markets were closed on Tuesday for public holiday.


Markets Today

The trend deciding level for the day is 22,341 / 6,690 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 22,484 – 22,625 / 6,730 – 6,765 levels. However, if NIFTY trades below 22,341 / 6,690 levels for the first half-an-hour of trade then it may correct 22,200 – 22,057 / 6,655 – 6,615 levels.


MSIL considering recall of Swift Dzire over faulty fueltank

According to media reports, Maruti Suzuki (MSIL) is contemplating a recall of around 100,000 units of Swift Dzire which has already being sold to customers or are forming part of the inventory at dealer end. According to reports, the problem pertains to loose-fitting fuel cap which can lead to fuel loss through evaporation and odour leaking into the cabin. MSIL has not yet finalized on the decision to recall the car and is still investigating the matter. In the event the company decides to recall Dzire, it would be one of the largest recall exercise undertaken by MSIL besides recall of A-Star model in FY2011. We would await more clarity from the company on the proposed recall exercise and associated costs involved. Nonetheless, we maintain our Accumulate rating on the stock with a target price of Rs.2,119.


Reliance Jio, RCom ink deal to share infrastructure

Reliance Jio Infocomm and Reliance Communications (RCom) have signed an agreement for sharing RCom's intra-city optic fiber infrastructure, the third cooperation pact between two companies. Under the terms of the agreement, Reliance Jio Infocomm will utilise RCom's nationwide intra-city fiber network for rolling out its 4G services across the country. The agreement is based on arm's length pricing at prevailing market prices. RCom’s intra-city optical fibre network extends to nearly 500,000 fibre-pair kilometres across the top 300 cities and towns in India. While the companies did not disclose the financial terms of the agreement, as per media reports RCom is expected to get ?5,000 crore over the next 16 years (licence period) from the deal. This is based on the rough estimate of the total fibre and the prevailing market prices. Reliance Jio, which holds 1800MHz spectrum across 14 circles and 2300MHz across 22 circles, plans to launch services by October or December this year. In addition to telecom services, the company is planning to offer TV channels on its 4G broadband network. We maintain our Neutral rating on RCom.


Economic and Political News

- IMF projects FY14 growth at 4.6%

- More than 70% chances of El Niño this year: Meteorologists

- India likely to see weak economic growth: OECD


Corporate News

- Sun Pharma-Ranbaxy deal under CCI lens

- Suzlon's German arm ties up euro 850-mn loan

- Canada invites Coal India to explore mining opportunities

- Rajasthan discoms challenge compensatory order for Tata UMPP

- IFB Agro approves buying of business of Nurpur Gases Pvt. Ltd.

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