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Reports India

Indian stock market and companies daily report (December 24, 2013, Tuesday)

December 24, 2013, Tuesday, 03:16 GMT | 22:16 EST | 07:46 IST | 10:16 SGT
Contributed by Angel Broking

Indian markets are expected to open flat tracking flat to positive opening in most of the Asian markets.

The US markets closed at all-time highs, extending their record run as consumer-spending data reinforced perceptions that the US economic recovery is poised to accelerate in 2014. The strength on Wall Street partly reflected continued optimism about the outlook for the U.S. economy following upbeat remarks by the head of the International Monetary Fund. The Commerce Department also released a report before the start of trading showing that US personal spending increased in line with economist estimates in the month of November by 0.5% following a 0.4% increase in the previous month. The continued spending growth came even as personal income crept up by just 0.2% in November compared to expectations for an increase of about 0.5%. Meanwhile, the European markets finished in positive territory on Monday, adding to the strong rally of the previous session. Investor sentiment received a boost from better than expected US economic data and a strong consumer sentiment report.

The Indian markets rose on Monday, tracking firm cues from Asia and Europe after US GDP data beat estimates and the International Monetary Fund said it expects the US economy to expand at a faster pace next year on the back of falling unemployment, the budget deal and the Federal Reserve's plan to start tapering its massive bond-buying program.

Markets Today

The trend deciding level for the day is 21,123 / 6,290 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 21,186 - 21,271 / 6,312 - 6,340 levels. However, if NIFTY trades below 21,123 / 6,290 levels for the first half-an-hour of trade then it may correct up to 21,037 - 20,974 / 6,262 - 6,239 levels.

Department of Telecom to calculate one-time spectrum fee afresh after auction

The Department of Telecom is planning a re-calculation of the one-time spectrum charge, which has been estimated at about Rs.25,000cr, to be levied on telecom operators after completion of next round of auction. One spectrum fee is the charge operators have been asked to pay for holding additional spectrum. Initially, telecom firms were given 4.4MHz spectrum along with license for Rs.1,658cr for pan-India operations. They were entitled to get another 1.8MHz on fulfillment of certain subscriber-base conditions. Most of the operators were allocated additional spectrum without paying any upfront charges for it. In November last year, the government decided that operators should pay for holding spectrum above 6.2MHz retrospectively, from July 2008 to January 1, 2013 based on market determined price decided in auction. Besides, for spectrum above 4.4MHz operators would have to pay for the period between January 2013 and the expiry of licenses. The rule applied to CDMA players like Reliance Communications, Tata Teleservices for spectrum above 2.5MHz. In its earlier estimates, DoT had included price of spectrum in four cities - Delhi, Mumbai, Kolkata and Rajasthan - based on reserve price fixed by government as there were no bidders. DoT issued demand notice to companies in January but no amount has been recovered yet as most of the telecom service providers have challenged the order before courts and the matter is now sub-judice. GSM operators were asked to pay total of about Rs.23,177cr and CDMA operators were jointly asked to pay ~Rs.3,000cr. We currency maintain our Neutral rating on the Indian Telecom sector.

CBI registers enquiry against Vedanta Chairman regarding HZL stake sale

CBI has registered a preliminary enquiry against Vedanta group Chairman Anil Agrawal in connection with alleged irregularities in the disinvestment of Hindustan Zinc during the period of NDA government. NDA government had sold majority stake in HZL to Vedanta Group before 2004. This event may create hurdles in further divestment in HZL by the government. Until further clarity, we maintain our Buy rating on the stock with a target price of Rs.156.

Economic and Political News

- AAP to form government in Delhi, Kejriwal to be CM

- Cash reserves of 20 PSUs can cut fiscal deficit by Rs.20,000cr: CRISIL

- Had d ecided to keep rates on hold before inflation data: Raghuram Rajan

Corporate News

- Government infuses Rs.200cr capital in Andhra bank

- HCC wins Rs.1,597cr contract in Uttarakhand

- Lanco gets lendersRs. nod to rejig over Rs.7,000cr debt

- ONGC to begin work on urea plant in Tripura next year

- Ultratech-Jaypee Rs.3,800cr deal gets CCI approval