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Reports India

Indian stock market and companies daily report (April 11, 2014, Friday)

April 11, 2014, Friday, 05:26 GMT | 01:26 EST | 09:56 IST | 12:26 SGT
Contributed by Angel Broking

Indian markets are expected to open in red tracking negative opening trades in SGX Nifty and most of the Asian markets.

After moving notably higher over the two previous sessions, stocks showed a substantial move back to the downside during trading on Thursday. Technology stocks helped to lead the sell-off, contributing to a particularly sharp drop by the tech-heavy Nasdaq. The sell-off on Wall Street was partly due to profit taking following the rally seen late in the previous session, which reflected easing concerns about the outlook for interest rates. Uncertainty about the impending earnings season may also have generated some negative sentiment, leading traders to look for safer havens. Meanwhile, European markets ended mixed on Thursday, with resource shares coming under heavy pressure after Chinese officials dashed hopes for meaningful stimulus despite poor economic data.

Indian shares ended largely unchanged on Thursday after hitting record highs in intraday trading. Investors remained optimistic after World Bank projected an economic growth rate of 5.7% in fiscal year 2015 for India. However, Indian shares ended flat due to profit-booking.

Markets Today

The trend deciding level for the day is 22,717 / 6,798 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 22,790 - 22,865 / 6,818 - 6,839 levels. However, if NIFTY trades below 22,717 / 6,798 levels for the first half-an-hour of trade then it may correct 22,642 - 22,569 / 6,776 - 6,756 levels.

JLR registers modest growth in March14; FY2014 sales though grows robustly

Jaguar and Land Rover (JLR) registered a modest 2.7% yoy growth in retail sales in March 2014; primarily due to sluggish off-take in old models. The recently introduced models though, continued its strong momentum witnessing a robust performance. Jaguar sales witnessed an impressive growth of 19.4% yoy despite the higher base, led by 23.3% yoy growth in XJ model and incremental sales of the F type model. Land Rover volumes on the other hand stood sluggish as the performance of the older models remained subdued during the month. While Evoque volumes declined 8.3% yoy; Freelander, Discovery and Defender models posted a decline of 8.3%, 7.5% and 4.2% yoy respectively. The new Range Rover sales too remained sluggish and registered a decline of 1.9% yoy. The new Range Rover Sport volumes, however, posted its highest ever volumes led by continued ramp-up in production. Geographically, sales in China, Asia Pacific and US sustained its strong traction and witnessed a robust growth of 28.9%, 23.1% and 10.9% yoy respectively. Sales in Rest of World and Europe though declined sharply by 15.3% and 6.1% yoy respectively during the month.

For FY2014, JLR registered a robust growth of 15.9% yoy to 434,311 units riding on the back of strong momentum in recently launched models. Evoque sales too recorded a healthy growth of 8.2% yoy in FY2014. While, Jaguar sales surged 37.4% yoy; Land Rover sales posted a growth of 11.9% yoy. Geographically, volumes increased across all the regions with China, Asia Pacific and US regions witnessing an impressive growth of 33.7%, 27.7% and 20.2% yoy respectively.

Going ahead, we expect headwinds in Tata Motors standalone business to continue in the near term due to weak macro-economic environment, which is expected to continue impacting the domestic volumes. Nevertheless, we expect JLR to sustain its strong performance driven by continued momentum in the global luxury vehicle market, success of the recently launched models and strong product launch pipeline. We retain our positive view on Tata Motors and recommend an Accumulate rating on the stock with a SOTP target price of Rs.487.

Crompton Greaves wins contract to supply equipment to PGCIL

Crompton Greaves has won a contract from Power Grid Corporation of India (PGCIL) to supply six sub-station automation systems (SAS) in Jharkhand. The value of the contract has not been disclosed. Crompton GreavesRs. automation business unit would supply six sub-stations systems to PGCIL's Govindpur, Manoharpur, Jaduguda, Dalbhumgarh, Jamtara and Rourkela units while its engineering projects division would manage them. The scope of the contract also includes manufacturing and supply of ZIV protection and control relays, automation systems and engineering services. We maintain Buy on the stock with a target price of Rs.200.

Economic and Political News

- Private sector feels India is a difficult place for business: World Bank

- Poll code halts power tariff revision in many states

- Power demand blackout sparks spot price meltdown

Corporate News

- Tata Motors launches new Aria at Rs.9.95lakh

- Pi ramal Enterprises to sell Vodafone stake for Rs.8,900cr

- Tatas may pump Rs.2,000cr more into Tata Tele