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Reports India

Indian stock market and companies daily report (December 10, 2013, Tuesday)

December 10, 2013, Tuesday, 04:21 GMT | 23:21 EST | 08:51 IST | 11:21 SGT
Contributed by Angel Broking

Indian markets are expected to open in the green tracking SGX Nifty which is trading higher by 0.4%. Most of the Asian markets are trading in the negative territory.

US Markets move modestly higher on Monday over positive data about Chinese trade surplus thereby adding to the strong gains of Friday; however, buying interest remained subdued. Reports on retail sales, jobless claims, and producer prices which are to be released later this week are likely to attract some attention even though the data is not expected to shed much light on the outlook for the Fed's stimulus program. Meanwhile, most of the European markets ended with modest gains amid positive data from China.

Meanwhile Indian markets rallied on Monday after a strong performance by Bharatiya Janata Party (BJP) in assembly elections. BSE Sensex hit a fresh record high in intraday trading on Monday as the BJP's victory in assembly elections, raised expectations of BJP-led NDA's victory in next year's general elections. Market participants perceive BJP's prime ministerial candidate Narendra Modi to be business friendly and thus expect a government formed under his leadership to be reform oriented.

Markets Today

The trend deciding level for the day is 21,364 / 6,375 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 21,446 - 21,565 / 6,404 - 6,445 levels. However, if NIFTY trades below 21,364 / 6,375 levels for the first half-an-hour of trade then it may correct up to 21,245 - 21,163 / 6,334 - 6,304 levels.

SBI receives Govt, approval to raise Rs.9,576cr via QIP

State Bank of India (SBI) has received Govt, of India approval to raise Rs.9,576cr through qualified institutional placement (QIP) during current fiscal, with an overriding condition that Govt.'s shareholding post the QIP should not fall below 58%. Apart from the QIP proceeds, the bank is also likely to receive Rs.2,000cr from Govt, of India as capital infusion in the next few months. As per our estimates, as long as the share price at which capital is raised (both under QIP and preferential allotment to Govt.), is above Rs.1,600, the Govt, shareholding would be maintained at above 58%. We note that the bank's tier-I capital adequacy under Basel-III stood at 8.8% as of 2QFY2014 (excluding for 1HFY2014 profits). As long as the price for capital raising is above Rs.1,600, the dilution would be book accretive for the existing shareholders of the bank and will aid the bank in further enhancing its credit market share going forward. At CMP, the stock trades at 1.2x FY2015E ABV. Given the recent run up in stock price, the potential of further upsides hereon is limited, in our view and hence, we prefer to turn neutral at this point in time.

JSW Steel reported crude steel production numbers for November 2013

JSW Steel reported crude steel production numbers for November 2013 from all the three plants namely Vijayanagar, Salem and Dolvi. The crude steel production for November stood at 1.07mn tonnes and the rolled flat and rolled long production stood at 0.83mn tonnes and 0.14mn tonnes respectively. The production numbers are however, not comparable to the November 2012 numbers since these numbers comprises of the production from the erstwhile JSW Ispat's Dolvi plant which is now merged with JSW Steel. We maintain our Neutral view on the JSW Steel stock.

Cairn discovers more gas prospect in Ravva block

Media reports suggest that Cairn India and its joint venture partners in the oil and gas producing block Ravva on the East Coast have discovered new prospects in the existing fields. The field named L0-110 holds the prospect of 368bcf of recoverable gas and 16mn barrels of condensate. However we await further clarity on the matter of capex requirement, timelines of production etc. and hence until further updates maintain our estimates and Buy rating on the stock with a target price of Rs.380.

Economic and Political News

- Oil Min says regulator nod not needed for CNG stations

- Govt prepares draft policy on surplus coal from captive mines: Minister of State for Coal

- India for expanding trade ties with South American nations: Commerce Secretary Rao

- Consulting DoPT for permanent staff at Serious Fraud Investigation Office (SFIO) : Pilot

Corporate News

- Dabhol power generation restored after supply of 1.4 MMSCD gas from GAIL India

- AHPI plans to take up healthcare industry issues with govt.

- Glenmark launches generic Hydrocortisone Butyrate cream in US

- Sesa Sterlite a step away from resuming mining in Karnataka

- Kulamani Biswal takes over as Director at NTPC