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Reports India

Indian stock market and companies daily report (June 18, 2014, Wednesday)

June 18, 2014, Wednesday, 05:39 GMT | 00:39 EST | 09:09 IST | 11:39 SGT
Contributed by Angel Broking


Indian markets are expected to open flat tracking flat opening in SGX Nifty and most of the Asian markets.

After coming under pressure at the start of trading on Tuesday, US stocks moved modestly higher over the course of the trading day. Traders initially reacted negatively to some troubling economic data but selling pressure waned as traders looked ahead to the Federal Reserve's monetary policy announcement Wednesday afternoon. The Fed is widely expected to announce another $10 billion reduction in the pace of asset purchases, but traders are likely to focus more on the language of the accompanying statement and the outlook for interest rates. Meanwhile, European stocks moved higher on Tuesday, trimming weekly losses amid strength in the automotive sector. With the European Central Bank announcing stimulus measures earlier in June, analysts expect the region to sustain modest economic growth this year.

Indian shares erased early declines to end sharply higher on Tuesday, as oil prices eased and RBI Governor Raghuram Rajan said India is better prepared to deal with any shocks on the external front. Also, Finance Minister Arun Jaitley said the government is committed to take measures which will positively impact the GDP and result in higher growth than expected.


Markets Today

The trend deciding level for the day is 25,391 / 7,593 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 25,677 - 25,832 / 7,676 - 7,721 levels. However, if NIFTY trades below 25,391 / 7,593 levels for the first half-an-hour of trade then it may correct 25,235 - 24,949 / 7,548 - 7,465 levels.


Cipla in US $14mn deal with Sri Lankan distributor firm

Cipla acquired around 60% stake in a Sri Lankan company for US $14mn through its wholly-owned subsidiary to market its products in that country. Cipla wholly owned subsidiary Cipla (Mauritius) has signed a definitive agreement with the company's existing Sri Lankan distributor of 60% stake in new company which will market Cipla's products in Sri Lanka. With this acquisition, the company is looking at emerging economies to fuel its growth, however, the current acquisition is not a large deal compared to its earlier acquisition made in South Africa. The company has completed the acquisition of South African pharma company Cipla Medpro last year for about '2,707 cr. We maintain our buy on the stock, with a target of Rs.480.


Economic and Political News

- DTH industry appeals to FinMin for relaxation on multi-layered taxation

- Deadli ne for states to implement 'food security' may be extended

- Proper food management to help ease price rise: RBI

- India watching Iraq, economy prepared to deal with shocks: Rajan


Corporate News

- Adani in talks to raise $2.5 bn via QIP, foreign loans

- Cipla buys 60% stake in Sri Lankan company for $14 million

- Coal quality issue between NTPC, CIL may be resolved soon

- Australia delays decision on Adani's $15-bn coal project

- Cairn gets environmental nod to raise oil production