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Reports India

Indian stock market and companies daily report (August 06, 2014, Wednesday)

August 6, 2014, Wednesday, 05:45 GMT | 00:45 EST | 10:15 IST | 12:45 SGT
Contributed by Angel Broking


Indian markets expected to open on Negative note tracking SGX Nifty and the Asian markets.

U.S. stocks resumed a selloff, wiping out yesterday's rebound and sending benchmark indexes to the lowest levels since May, as energy shares tumbled and concern increased over escalating tensions in Ukraine.

European stocks rose, rebounding from four days of losses, as companies including Credit Agricole SA and Deutsche Post AG reported better-than-expected earnings.

Back home, Indian indices surged as market sentiment was boosted after the Reserve Bank of India (RBI) in its policy review, kept policy rates and cash reserve ratio unchanged while cutting statutory liquidity ratio by 50 basis points.


Markets Today

The trend deciding level for the day is 25,800 / 7,712 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 26,037 - 26,166 / 7,787 - 7,827 levels. However, if NIFTY trades below 25,800 / 7,712 levels for the first half-an-hour of trade then it may correct 25,671 - 25,434 / 7,672 - 7,598 levels.


RBI maintains status quo- Key policy rates unchanged

Reserve Bank of India (RBI) in its third bi-monthly monetary policy meeting on August 5, held the repo rate steady at 8% - as was widely expected. The CRR too was kept unchanged at 4%. However SLR was cut by 50bps from 22.5% to 22% w.ef. from August 9, 2014 in anticipation of recovery in economic activity. In order to enhance the liquidity in the system, RBI has reduced held to maturity cap by 50bps to 24% of NDTL. However this will have limited impact, as banks have higher SLR of 26-28%. RBI will keep a close watch on inflation and considers food inflation and pick-up in demand in the economy as potential risk to inflation. It has reiterated CPI target to 6% by Jan 2016.

The RBI has kept a status quo on key policy rates in line with expectations, but on a positive note has expressed the possibility of rate cuts going forward if inflation continues to decline as per its expectations. The RBI has done a brilliant job in stabilizing our currency and external account, as well as making progress in reigning in inflation expectations and we expect the effective monetary policy to continue aiding the overall economic upturn that is currently underway.


Economic and Political News

- Sugar mills in Uttar Pradesh to suspend cane crushing

- GDP expected to go up to 5.5% in current fiscal: RBI

- Automakers gear up for changes as govt pushes ethanol-blended petrol


Corporate News

- PowerGrid to raise Rs 3,000 cr through private placement of bonds

- SAIL eyes majority stake in Neelachal Ispat

- ABB India working on remote monitoring of solar power plants

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