New York: 07:18 || London: 12:18 || Mumbai: 15:48 || Singapore: 18:18

Reports India

Indian stock market and companies daily report (January 07, 2014, Tuesday)

January 7, 2014, Tuesday, 07:39 GMT | 02:39 EST | 12:09 IST | 14:39 SGT
Contributed by Angel Broking

Indian markets are expected to open flat today tracking flattish start to SGX Nifty. Most of the Asian indices though are trading in the positive zone.
US stocks ended mostly lower on Monday, extending the pullback witnessed in the last week. The weakness on Wall Street was in reaction to a report from the ISM which showed that activity in the US services sector unexpectedly grew at a slower rate in December. According to the ISM, non-manufacturing index edged down to 53.0 in December from 53.9 in November. A separate report from the Commerce Department however, showed that US factory orders rose by better-than-expected 1.8% in November following a revised 0.5% decrease in October.
Meanwhile, Indian shares fell for a fourth straight session on Monday, with weak global cues and disappointing service sector data weighing on the markets. According to a data released by Markit Economics and HSBC Bank revealed that the Indian services sector contracted for the sixth successive month in December, The seasonally adjusted purchasing managersRs. index dropped to 46.7 from 47.2 in November. Trading on Tuesday is expected to be impacted by the release of a report on the US trade balance in the month of November. Economists expect the trade deficit to narrow to US$39.9bn.
Markets Today
The trend deciding level for the day is 20,808 / 6,195 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 20,893 - 21,000 / 6,221 - 6,250 levels. However, if NIFTY trades below 20,808 / 6,195 levels for the first half-an-hour of trade then it may correct 20,702 - 20,616 / 6,166 - 6,141 levels.
L&T bags various worth Rs.2,962cr
L&T's buildings and factories business has bagged new orders worth Rs.1,555cr. This includes a major turnkey order from an information technology major for the construction of two technology centers in Bangalore. It also includes a turnkey order for infrastructure development of three government medical colleges at Cuttack, Sambalpur and Behrampur in Odisha. In the water & renewable energy business, L&T has bagged new orders worth Rs.726cr from the Tamil Nadu Water Supply and Drainage Board. The power transmission & distribution business has bagged various orders worth Rs.258cr which includes an order for supply, erection, testing and commissioning of a 400 kV double circuit transmission line from Transmission Corporation of Andhra Pradesh. The company has also received additional orders from various ongoing projects in metallurgical & material handling, heavy civil and transportation infrastructure businesses worth Rs.423cr. We continue to maintain our Buy rating on the stock with a target price of Rs.1,237.
Ashok Leyland to launch 18 truck variants in CY2014
Ashok Leyland plans to launch 18 truck models under its new brand Captain in CY2014. The company has invested about Rs.600-Rs.700cr in the development of the new platform through which it plans to introduce various range of medium and heavy commercial vehicles going ahead. The Captain series will be rolled out from the company's Pantnagar facility and will be available in the 16T to 49T category in various types such as tippers, tractors and haulage vehicles. Ashok Leyland also intends to export the vehicles to Middle East, Latin America, Africa and South East Asian countries in the CKD form. While, we believe that new launches enable the company to register strong growth and are the primary growth drivers amid increasing competition in the sector; given the current slowdown in demand we do not see a significant impact of the new launches on company's performance. We maintain our Neutral rating on the stock.
Economic and Political News
- Services PMI continues downward spiral in December 2013, declines to 46.7
- Global IT spending to reach US$3.7trn in 2014: Gartner
- Companies may issue debt to non-residents as bonus, says RBI
- No proposal to raise subsidized LPG cylinder quota: Oil Secretary
- CAG can audit accounts of private telecom companies: Delhi HC
Corporate News
- Bl ue Star to invest Rs.1 50cr in new facility in South
- NMDC Oct-Dec iron ore output at 7.3mn tonne, up 37% yoy
- Zydus Cadila may launch pentavalent vaccine in 2015
- BHEL completes power transmission sub-station at Raichur
- IL&FS Engg. bags Rs.84cr order for Gurgaon metro rail