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Reports India

Indian stock market and companies daily report (June 12, 2014, Thursday)

June 12, 2014, Thursday, 06:49 GMT | 01:49 EST | 10:19 IST | 12:49 SGT
Contributed by Angel Broking

Indian markets are expected to start on a flat note today following flattish start to SGX Nifty. Meanwhile most of the Asian indices are trading negatively after US stocks dropped by the most in three weeks.

US stocks moved mostly lower over the course of the trading session on Wednesday as renewed concerns about the outlook for the global economy weighed on the markets. According to a World Bank report, global economy is expected to grow by 2.8% in 2014 compared to its previous forecast for 3.2% growth citing poor weather in the US, financial market turbulence and the Ukrainian crisis. At the same time, the World Bank left its growth forecasts for 2015 and 2016 broadly unchanged at 3.4% and 3.5%, respectively.

Back home, Indian markets ended a choppy session modestly lower on Wednesday as investors fretted over valuations and the global economic outlook. Investors also awaited retail inflation data for May and factory output for April both due on Thursday for further direction.

Markets Today

The trend deciding level for the day is 25,525 / 7,639 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 25,685 - 25,895 / 7,688 - 7,750 levels. However, if NIFTY trades below 25,525 / 7,639 levels for the first half-an-hour of trade then it may correct 25,314 - 25,155 / 7,577 - 7,528 levels.

JLR registers strong retail volume growth in May 2014

Jaguar and Land Rover (JLR) recorded a strong retail sales growth of 19.6% yoy in May 2014 to 38,831 units. The volumes grew at a very strong rate across the globe, with China, North America, UK and Asia Pacific regions witnessing a robust growth of 53%, 19%, 15% and 11 % yoy respectively. Jaguar sales posted a growth of 5% yoy to 6,450 units led by strong momentum in F type sales. Land Rover sales surged strongly by 23% yoy to 32,381 units, driven by continued ramp-up of the new Range Rover and the new Range Rover Sport and sustained momentum in Evoque sales.

We expect headwinds in the standalone business to continue in the near term due to weak macro-economic environment which is expected to continue impacting domestic volumes. Nevertheless, we expect JLR to sustain its strong performance driven by continued momentum in the global luxury vehicle market and aided further by the strong product launch pipeline and the success of the newly launched models. We retain our Accumulate rating on the Tata Motors stock with an SOTP based target price of '496.

Economic and Political News

- Rubber Industry asks to correct Inverted Duty in the Budget

- Exports rise 12.4% in May in sharpest rise in 6 months

- India set to grow at 5.5%: World Bank

Corporate News

- RCom expands 3G services to 18 circles

- Futu re Retail to raise Rs 2,000 cr through issue of shares

- VE Commercial Vehicles to launch dozens of new vehicles under PRO Series