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Reports India

Indian stock market and companies daily report (July 21, 2014, Monday)

July 21, 2014, Monday, 05:34 GMT | 00:34 EST | 10:04 IST | 12:34 SGT
Contributed by Angel Broking


Indian markets are expected to open on a positive note with tracking positive opening on SGX Nifty along with positive global cues.

U.S. stock indices ended on a positive territory on back of bargain hunting as traders seemed to shrug off the geopolitical concerns that contributed to the weakness seen in the previous session. European stocks clawed back from early losses due to situation in Ukraine and Russia tensions flare.

Back home, Indian indices Sensex and Nifty ended positive territory due to better-than-expected quarterly earnings and also market sentiment improved somewhat after Finance Minister Arun Jaitley said the government is aiming to resolve the issues hampering GST roll out within this year.


Markets Today

The trend deciding level for the day is 25,599 / 7,648 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 25,756 - 25,871 / 7,701 - 7,738 levels. However, if NIFTY trades below 25,599 / 7,648 levels for the first half-an-hour of trade then it may correct 25,484 - 25,327 / 7,611 - 7,559 levels.


Wipro to buy Canadian firm Atco's IT services business for US$195mn:

Wipro Ltd has agreed to buy information technology (IT) services business of Canadian logistics and utilities firm Atco Ltd for US$195mn. The deal, which comes less than a year since Wipro bought US-based Opus Capital Markets Consultants Llc for US$75 million, is one of the company's largest acquisitions in recent years, and comes bundled with a 10-year, US$1.1bn outsourcing contract with Atco.

The outsourcing contract—one of the largest ever for Wipro—is expected to result in annual revenue of about US$112mn. The company has traditionally had a strong position in the utilities space in Europe and this engagement provides momentum to its business in Canada and Australia. In 2008, Wipro bought the IT arm of Citigroup in India for US$127mn that gave it access to a US$1bn outsourcing contract from the company. The energy and natural resources business has easily been Wipro's fastest growing business division over the past two-three years, at a time when the company has continued to lag larger rivals in the key banking and financial services sector that contributes nearly 30-40% to revenues for India's US$1 18bn IT industry.

The acquisition would aid the company's revenues to increase by 10.4% and 13.6% in FY2015 and FY2016 respectively. On the net profit, we expect the net profit to increase by 8.3% and 10.2% yoy respectively. Thus the new FY2015E and FY2016E EPS stands at '34 and '41.5 respectively. We maintain a buy with a target price of Rs.715.


Economic and Political News

- Govt says no hike in LPG or kerosene prices

- Investment proposals worth Rs 80,000 cr for electronics sector

- FDI in Railways: Cabinet likely to take decision this week

- Modi seeks stronger economic ties with Latin America


Corporate News

- FIIs up stake in Reliance Industries to 7-yr high at about 20%

- Bajaj Fin to exit construction equipment finance biz

- Suzlon plans to set up manufacturing plant in Brazil

Stock Market Forum