New York: 07:14 || London: 10:14 || Mumbai: 15:44 || Singapore: 18:14

Reports India

Indian stock market and companies daily report (July 09, 2014, Wednesday)

July 9, 2014, Wednesday, 04:39 GMT | 00:39 EST | 09:09 IST | 11:39 SGT
Contributed by Angel Broking

Indian markets are expected to open on a flat to negative note tracking marginally negative opening on SGX Nifty and most of the Asian markets.

The US markets saw further downside during trading on Tuesday after moving mostly lower over the course of the previous session. Caution ahead of the start of earnings season along with lingering concerns about the outlook for monetary policy contributed to the weakness on Wall Street. Moreover, recent upbeat economic data, including last week's strong jobs report, has led to speculation that the Federal Reserve will begin raising interest rates sooner than anticipated. Meanwhile, European stocks too ended the day lower on Tuesday.

Back home, Indian shares fell sharply on Tuesday as investors locked in some profits after recent sharp gains awaiting cues from the upcoming General Budget and industrial production data slated for release on Friday. Also, Modi government's maiden Railway Budget released yesterday weighed on the market.

Markets Today

The trend deciding level for the day is 25,756 / 7,676 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 26,017 - 26,451 / 7,756 - 7,889 levels. However, if NIFTY trades below 25,756 / 7,676 levels for the first half-an-hour of trade then it may correct 25,321 - 25,060 / 7,543 - 7,463 levels.

Railway Budget FY2015

The Railway Budget came in tad below expectation from the stock market point of view. It lacks concrete measures and focuses more on broader vision, ie towards resource mobilization and development projects.

Key Highlights were:    

- Proposed plan outlay of Rs.47,650cr compared to previous Railway Budget's outlay of Rs. 38,267cr

- The allocation is largely towardsr improving safety, amenities and cleanliness. Fare hikes would garner around Rs.8,000cr while market borrowings will amount to Rs. 11,790cr

- Rs.100cr have been earmarked for high speed train project which include allocations towards the development of the Diamond quadrilateral. However, the allocation is far short of the requirement of the project, which is Rs.9 lakh cr. Thus, tapping funds through private investments & foreign direct investments, public private partnership (PPP) and land monetization under consideration.

- 9 routes have been identified for high speed trains (viz: Delhi-Agra, Delhi-Chandigarh, Delhi-Kanpur, Nagpur-Bilaspur, Mysore-Bengaluru-Chennai, Mumbai-Goa, Mumbai-Ahmedabad, Chennai-Hyderabad and Nagpur-Secunderabad ). Efforts will be made to achieve speed of 160-200 kmph for such trains to reduce travel time significantly.

- Ongoing development projects would require Rs.5lakh cr for next ten years. Thus, the Railway Budget's focus was more on execution of old projects rather than announcing new projects. Out of 676 projects announced during the last 30 years, 359 projects worth Rs. 182,000cr remain to be completed

- IT initiatives get a big boost in the Railway Budget: The government plans to revamp the railway Reservation System with greater adoption of technology, and set WI-FI networks at Major Stations and alsoin Select trains. Mobile based Wakeup Calls for Passengers would be introduced

- Augmentation of resources: The Railway Budget has proposed schemes to facilitate procurement of parcel vans and rakes by private parties. Further, it proposed to launch special milk tanker trains, facilitate increased movement of fruits and vegetables in partnership with warehousing corporations and set up private freight terminals based on the PPP model.

- The Railway Budget announced 58 new trains besides extending 11 existing trains and announced 864 additional state-of-the-art EMUs in Mumbai in two years

- Road Over-bridges and under bridges: An outlay of Rs.1785cr has been announced for road over-bridges and under-bridges. This could be a positive for companies like Gammon Infra and JKumar Infra

- Mechanization of loading and unloading: This will increase demand for equipments as a result, equipment manufacturers like BEML will be beneficiaries

- Emphasis on e-ticketing: Issue of 7,200 tickets per minute has been targeted as against 2,000 tickets per minute currently, thus facilitating 120,000 simultaneous users at any point in time.

- 40% increase in allocation for cleanliness: Outsourcing of 50 major railway stations to professional agencies has been announced. This could be beneficial for companies like A2Z maintenance.

- Solar roofing: Solar roofing of the railway stations, railway building and land could be positive for companies making solar panels. However, a majority of the demand is currently being met through imports from China.

- Bio-diesel blending up to 5%: Currently only ~1.4% of biodiesel blending is followed. So 5% blending would increase demand for biodiesel, thereby benefiting companies that makes biodiesel.

Economic and Political News

- India Inc's foreign borrowings fall to $1.46bn in May

- India pays $550mn in oil dues to Iran

- No proposal to hike urea price: Govt

Corporate News

- Siemens bags order worth Rs.52cr from NTPC

- ONGC Videsh raises $2.23bn to refinance Mozambique deal

- Glenmark to launch anti-hypertension drug in US

- Govt plans to sell 5-10% stake in ONGC