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Reports India

Indian stock market and companies daily report (February 24, 2014, Monday)

February 24, 2014, Monday, 06:34 GMT | 02:34 EST | 11:04 IST | 13:34 SGT
Contributed by Angel Broking

Indian markets are expected to open flat to negative today tracking flat start to SGX Nifty and mixed opening to most of the Asian indices. However, Shanghai Composite index is trading down by more than 2% following reports of property-lending curbs by some banks in China.

US markets ended on a negative note on Friday as investors reacted to another dismal report on the housing sector and signs that the Chinese economy is slowing down. According to National Association of Realtors, existing home sales fell 5.1% in January, lowest in more than a year, as against economistsRs. expectations of a 3.5% drop. Additionally, comments by a top Federal Reserve official that the central bank should continue to reduce the size of its bond-buying program also dampened the investor sentiments.

Meanwhile, Indian markets ended in the green on Friday aided by positive global cues as private survey by Markit pointed to stronger activity in the US manufacturing sector which allayed investor concerns about global growth.

Markets Today

The trend deciding level for the day is 20,625 / 6,122 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 20,675 - 20,751 / 6,141 - 6,174 levels. However, if NIFTY trades below 20,625 / 6,122 levels for the first half-an-hour of trade then it may correct 20,550 - 20,433 / 6,089 - 6,060 levels.

TRAI releases Phase III recommendations

Telecom Regulatory Authority of India (TRAI) has issued its list of recommendations to the Ministry of Information & Broadcasting (MIB), agreeing to most of the proposals put forth by private radio operators. Among its recommendations to MIB, TRAI has agreed to grant licenses for 15 years instead of 10 years from the date of migration to Phase III and fixing the date of migration as March 31, 2015, the day Phase II licenses expire. In its recommendation, TRAI has also suggested to the MIB to change the Phase 3 reserve fee formula (highest bid of Phase 2) to encourage more participation from private players. It has also reiterated its earlier suggestion that far more licenses should be made available by the simple remedy of halving the spacing between two adjoining radio frequencies to 400 KHz instead of 800 KHz. Although TRAI's recommendations are positive for private radio broadcasters, MIB still has to ratify these recommendations before they are finalized.

Coal Ministry de-allocates Tata Steel's mine

PTI reported that Coal Ministry has de-allocated one of Tata Steel's mine in Jharkhand. However, since the mine is unlikely to have major clearances, we do not expect any impact on Tata Steel's financials. We maintain our Buy rating on the stock with a target price of Rs.459.

JSW Steel acquires 50% stake in Vallabh Tinplate

JSW Steel has acquired 50% stake in Vallabh Tinplate for Rs.46cr. The company will acquire 26% stake initially and eventually will raise the stake to 50%. Vallabh Tinplate had a 60,000tpa tinplate manufacturing capacity in Punjab. Since this is a relatively small acquisition for JSW Steel, we do not expect a material impact on JSW Steel on account of it. Hence, we maintain our estimates and Neutral rating on the stock.

NTPC to set up 1,320MW power plant in Bihar

NTPC would develop 1,320MW Kajra thermal power project in Lakhisarai district of Bihar with an investment of ~Rs.9,200cr consisting of two units of 660MW each. A Memorandum of Understanding (MOU) was signed between NTPC, Bihar State Power Generation Company Ltd (BSPGCL) and Lakhisarai Bijlee Company Private Ltd (LBCPL) in this regard. NTPC would have a 74% stake in the project and the rest would be with BSPGCL. Currently, NTPC group has an installed capacity of 42,464MW. We maintain Accumulate rating on the stock with a target price of Rs.146.

Major fire breaks out at Ceat's Bhandup facility

A major fire broke out at Ceat's tyre manufacturing unit in Bhandup on Sunday. According to the reports, the fire broke out around 17:50 hours causing injury to one person. The exact source of the fire; however, is not known yet. We would await more clarity on the quantum of the loss to the plant due to the fire. We maintain our Buy rating on the stock with target price of Rs.324.

Economic and Political News

- Railways starts monetizing its land reserves

- Govt receives 32 applications from companies for 4 coal mines

- Rs.35,000cr undisclosed income detected in last 3 years: Govt

- TN government signs Rs.5,081cr worth MoUs

- Capital allocation for PSUs in interim budget is credit negative: Moody's

Corporate News

- IL&FS Transportati on arm bags roads contract worth Rs.1,348cr in Africa

- Tata Motors to cut vehicle prices by up to Rs.1.5lakh

- Temasek, IDFC to buy CCPS in GMR Infra worth Rs.1,136cr

- L&T Infotech and Tricentis join hands for strategic partnership