New York: 11:47 || London: 16:47 || Mumbai: 20:17 || Singapore: 22:47

Reports India

Indian stock market and companies daily report (December 05, 2013, Thursday)

December 5, 2013, Thursday, 05:46 GMT | 00:46 EST | 10:16 IST | 12:46 SGT
Contributed by Angel Broking

Indian markets are expected to open today with a positive bias tracking positive opening in SGX Nifty and flat opening in most of the Asian markets.

With a mixed batch of economic data leading to some uncertainty about the outlook for the Federal Reserve's stimulus program, US stocks showed a lack of direction throughout the trading day on Wednesday before closing roughly flat. The choppy trading on Wall Street came as traders weighed upbeat jobs and housing data against a disappointing reading on service sector activity. The strong private sector job growth increased the focus on Friday's monthly jobs report from the Labor Department, which could have a significant impact on the outlook for the Fed's asset purchase program. Meanwhile, the European markets finished in the red for a fourth consecutive session on Wednesday as stronger than expected U.S. private sector employment data fueled fears that the Federal Reserve will begin tapering its stimulus measures soon.

The Indian markets continued to move lower on Wednesday amid concerns that improving U.S. economy may prompt the U.S. central bank to pare its monthly pace of bond buying soon. Investors are expected to take cues from US economic data, with reports on third quarter GDP, weekly jobless claims, and factory orders scheduled to be released today.

Markets Today

The trend deciding level for the day is 20,749 / 6,173 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 20,824 - 20,938 / 6,197 - 6,233 levels. However, if NIFTY trades below 20,749 / 6,173 levels for the first half-an-hour of trade then it may correct up to 20,634 - 20,559 / 6,138 - 6,114 levels.

Hindalco Management meet update

We met the management of Hindalco to get an update on the company's operations and the expansion projects. Key takeaways from the interaction were:

1) The company expects production of 300-350kt of alumina from Utkal refinery in FY2014 and 1mn tonne in FY2015. In case of Mahan smelter the company aims to produce 60kt in FY2014 and over 200kt of aluminium in FY2015.

2) The cost of alumina at Utkal is estimated to be US$180/tonne when fully stabilized and the cost of aluminium from Mahan is estimated to be US$1,600/tonne without using captive coal.

3) The capex guidance for FY2014 is Rs.6,000cr and for FY2015 it's Rs.5,000cr. The company has spent Rs.3,000cr of calex during 1HFY2014.

4) The grade of bauxite available for the Utkal refinery is 42% alumina content and a very low silica content of 1.5% which will help reduce consumption of caustic soda by ~60% compared to its existing bauxite mines.

5) The trial run of Aditya smelter is likely to complete by end of FY2014.

6) The company states that it's consolidated debt is likely to decline post FY2015.

Mphasis - 4QFY2013 (CMP: Rs.401/ TP: Rs.455/ Upside: 13%)

Mphasis is slated to announce its 4QFY2013 results today. We expect the company to record revenues of US$269mn, up 1% qoq, aided by growth from direct channel business. In INR terms, revenues are expected to come in at Rs.1,696cr, up 10% qoq. EBITDA margin is expected to inch up by ~100bp qoq to 19%. PAT is expected to be at Rs.210cr. We currently maintain our Accumulate rating on the stock with a target price of Rs.455.

Economic and Political News

- Maharashtra to form sugar cane control board

- Discoms propose tariff hike for industrial consumers

- Restrict surplus coal transfer within end-use sector: Chaturvedi panel

Corporate News

- US FDA tells Wockhardt to evaluate its plants

- Jyothy Labs readies war chest for acquisitions

- Wipro shuts down PC biz