Indian stock market and companies daily report (January 08, 2014, Wednesday)
January 8, 2014, Wednesday, 06:43 GMT | 01:43 EST | 11:13 IST | 13:43 SGT
Indian Markets are expected to open today with a positive bias tracking positive opening in the SGX Nifty and most of the Asian markets.
After moving notably higher in early trading on Tuesday, US stocks remained firmly in positive territory even though buying interest waned by the end of the trading session. The early strength on Wall Street was partly due to bargain hunting following the pullback seen over the first few trading days of the New Year, with the Nasdaq and the S&P 500 rebounding after closing lower for three consecutive sessions. Buying interest was also generated by the release of a report from the Commerce Department showing that the U.S. trade deficit narrowed by much more than anticipated in the month of November. The report showed that the trade deficit narrowed to $34.3bn in November (compared to expectation of $39.9bn). Meanwhile, the European markets ended Tuesday's session in positive territory as investor sentiment received a boost from the dip in Eurozone inflation and the decline in German unemployment.
Back home, the Indian markets fell for a fifth consecutive session, failing to maintain early gains amid weak global cues and selling by foreign funds. IT stocks led the declines as investors awaited Infosys' quarterly results due later this week for direction.
The trend deciding level for the day is 20,748 / 6,177 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 20,859 – 21,025 / 6,210 – 6,257 levels. However, if NIFTY trades below 20,748 / 6,177 levels for the first half-an-hour of trade then it may correct 20,582 – 20,471 / 6,130 – 6,097 levels.
RBI releases report of the Committee on Comprehensive Financial Services
RBI has released report of the Committee on Comprehensive Financial Services. To achieve financial inclusion committee recommends that by 1st Jan 2016, all Indians above 18yrs should have full service bank accounts, access to electronic payment point within 15mins of walk, credit to GDP ratio to reach 10% and total term life insurance (sum assured) to GDP ratio to reach 30% at each district level. Other key recommendations include Adjusted Priority Sector Lending target of 50% as against current requirement of 40%, differential provisioning norms at each asset class level, creation of payment banks with restriction to hold up to `50,000 in deposit per customers. The committee further recommends only two categories of NBFC’s - one for core investment companies and another for all other NBFCs.
NMDC reports sales volumes for 3QFY2014
NMDC has reported 39.1% yoy growth in sales volumes at 7.4mn tonnes (above our estimate of 7.2mn tonnes) for 3QFY2014. Strong growth in dispatches indicates increase in production from some of the secondary steel-makers which were shut or running at low capacity utilization over the past few quarters on the back of lower product prices. However, effective September, sponge/steel prices have continued to rise. We now expect NMDC to surpass our FY2014 annual sales volumes estimates of 28.6m tonnes. However, until it reports 3QFY2014 results, we maintain our Accumulate rating on the stock with a target price of `151.
Economic and Political News
- Assocham seeks OilMin support for natural gas pipeline project
- Country's road regulator likely by next month
- Curbs on gold imports to stay, at least till March: Mayaram
- Set up national green regulator for industrial projects: SC
- Govt bats for 50% foreign investment in e-commerce
- L&T bags power transmission contract in Saudi Arabia
- ONGC-OIL pay $2.47bn to Videocon Group
- JSW Steel promoter hikes stake in company
- SpiceJet to buy $4bn Boeing jets