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Reports India

Indian stock market and companies daily report (June 06, 2014, Friday)

June 6, 2014, Friday, 06:14 GMT | 01:14 EST | 09:44 IST | 12:14 SGT
Contributed by Angel Broking

Indian markets are expected to open on a positive note following positive start to SGX Nifty which is trading up by 0.5%. Most of the Asian indices though are trading mixed ahead of the US Labor Departments report on employment.

US stocks showed strong move to the upside over the course of the trading day on Thursday lifting the Dow Jones and the S&P 500 to new record highs. The strength on Wall Street partly reflected a positive reaction to new stimulus measures announced by the European Central Bank. The ECB announced its decision to cut its benchmark interest rate by 10bp to 0.15% and also lowered its deposit rate to negative 0.1%. Additionally, ECB President Mario Draghi announced a package of additional initiatives to stimulate the economy and said the bank is preparing to start buying asset-backed securities. Meanwhile, traders largely shrugged off a report from the Labor Department showing a modest rebound in initial jobless claims which rose to 31 2,000 (expected 310,000) in the week ended May 31.

Back home in India, BSE Sensex and Nifty surged to a fresh closing high on Thursday, despite mixed global cues, on continued optimism about a revival in the domestic economy. Trading on Friday is likely to be driven by reaction to the Labor Departments report on employment situations, which is expected to show an increase of about 215,000 jobs in May following the addition of 288,000 jobs in April.

Markets Today

The trend deciding level for the day is 24,903 / 7,440 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 25,161 - 25,302 / 7,519 - 7,564 levels. However, if NIFTY trades below 24,903 / 7,440 levels for the first half-an-hour of trade then it may correct 24,762 - 24,504 / 7,395 - 7,316 levels.

Blue Star Ltd. Concall takeaways

- EMPPACS segment revenue declined by 11.9% owing to challenging macro environment where no investments were declared in the commercial real estate segment. The company saw lower inquiries in the quarter and order finalizations were down.

- In Cooling Products segment, the company witnessed flat growth owing to delay in summer and inflationary pressures. Company witnessed good demand for the cold storage business especially from Pharma, Restaurant, and Food Processing.

- The company has guided for Cooling Products margins to be in the range of 9-9.5% for FY201 5 while MEP margins at 6-6.5%.

- Company still has Rs.175cr of legacy order left which will be executed in the 1HFY2015.

- The company expects the debt to be lower by Rs.100cr in FY2015.

- We have a Positive view on the Stock.

Economic and Political News

- Economy to grow by 6.2% in 2014-15: E&Y

- Jaitley commits to boosting agriculture

- Govt to announce new gas price by July 1

- DoT may reconsider bar on spectrum sharing for 3G services

- Bond yield falls to over four month low

- India achieves 12.95% of renewable energy potential

Corporate News

- Suzlon bags Rs.750cr order from ReNew Wind Power

- Airtel ties up with Tigo, Zantel for mobile money transfer

- Pi ramal acquires 10% stake in Shriram City for Rs.790cr

- Videocon Telecom ties up with Huawei for 4G rollout

- Wockhardt recalls 8,712 bottles of hypertension drug in US market

- DoT rejects Vodafone request to extend licences in 7 circles

- LIC lowers stake in TVS Motor to 3%

- Mahindra launches Rs.XUV500 Sportz at Rs.13.68 lakh