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Reports India

Indian stock market and companies daily report (December 16, 2013, Monday)

December 16, 2013, Monday, 04:57 GMT | 23:57 EST | 09:27 IST | 11:57 SGT
Contributed by Angel Broking

Indian markets are expected to open flat today tracking a marginally weak opening in SGX Nifty.

The US markets after trending lower over the past few sessions, showed a lack of direction throughout the trading day on Friday. Uncertainty about the outlook for the Federal Reserve's stimulus program contributed to the choppy trading on Wall Street. The major averages bounced back and forth across the unchanged line before closing mixed. The European markets ended Friday's session with mixed results, but finished the overall trading week in the red. Investors concerns over when the Federal Reserve will begin tapering its stimulus measures persisted as Fed has its policy meeting on Wednesday this week.

Indian markets hit their lowest level in more than a week on Friday, weighed down by disappointing economic data. The key indexes fell more than a percent each, extending losses for the fourth straight day.

Markets Today

The trend deciding level for the day is 20,758 / 6,179 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 - 20,933 / 6,198 - 6,227 levels. However, if NIFTY trades below 20,758 / 6,179 levels for the first half-an-hour of trade then it may correct up to 20,650 - 20,584 / 6,150 - 6,132 levels.

JLR sustains strong growth in wholesale volumes in November 2013

Tata MotorsRs. (TTMT) global sales continued to remain weak and posted a decline of 19.9% yoy (8% mom) to 81,957 units. The performance continues to be impacted by the ongoing weakness in the domestic commercial and passenger vehicle segments. While, the global commercial vehicle sales witnessed a significant decline of 36.5% yoy (17.9% mom); global passenger vehicles registered a decline of 4.5% yoy largely due to a 41.7% yoy decline in the domestic segment.

Jaguar and Land Rover (JLR) however, sustained its strong performance registering a better-than-expected growth of 15.3% yoy (10.5% mom) to 39,956 units. JLR performance continues to be driven by the strong growth in the Jaguar and Land Rover models backed by the success of the new launches and strong growth across the world markets, specifically in China and the US. Jaguar reported a 7.9% yoy growth to 6,753 units driven by the incremental volumes from the F-type and healthy growth in the XF model. Land Rover sales recorded a robust growth of 17% yoy (13.9% mom) to 33,203 units led by continued momentum in Range Rover Evoque and aided further by the dispatches of the new Range Rover and the new Range Rover Sport.

Going ahead, we expect headwinds in the standalone business to continue in FY2014 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 are building in an ~13% volume CAGR for JLR with an EBITDA margin improvement of 170bp over FY2013-15E, driven by superior product mix and favourable geography mix. We retain our positive view on TTMT and recommend an Accumulate rating on the stock with a SOTP target price of Rs.410.

Economic and Political News

- Commerce Ministry seeks change to duty exemption for SEZ goods

- US bond yields may rise to 4% in 2014

- UP to sign MoUs worth over Rs.15,000 cr

- India's forex kitty swells $4.4 bn to $295.7 bn

- IRCTC tenders for six plants by end of January

Corporate News

- Aurobindo receives USFDA nod for anti-depressant drug

- Essar sells CBM gas at $9.16-11.63; GEECL at $8.46-22.01

- India revenues to touch $1bn in 3-4 years: GE Healthcare

- Nayyar sells more than half his holding in Tech Mahindra for Rs.92cr

- Govt to raise Rs.2,000cr from NHPC disinvestment