New York: 09:39 || London: 14:39 || Mumbai: 18:09 || Singapore: 20:39

Reports India

Indian stock market and companies daily report (June 24, 2014, Tuesday)

June 24, 2014, Tuesday, 06:06 GMT | 01:06 EST | 09:36 IST | 12:06 SGT
Contributed by Angel Broking

Indian markets are expected to open on a positive note tracking positive opening in SGX Nifty and most of the Asian markets.

US stock markets closed almost flat on Friday following mixed economic data as investors kept watch on continued unrest in major oil-producer Iraq. HSBC's preliminary purchasing managers index (PMI) for China, which tracks activity in factories and workshops in the world's second-biggest economy, came in at 50.8 in June, the highest level since November. But Markit Economics said its Euro-zone composite PMI for June slipped to 52.8 points from 53.5 in May, the weakest level since December. Following the report on slowing business activity in Euro-zone and decline in U.K. housing shares on the prospect of changes to mortgage rules, European stocks fell on Monday.

Meanwhile, Indian shares fell for a fourth straight session on Monday, marking their lowest close in last couple of weeks as ITC slumped the most in ten months on tax worries, while concerns over high oil prices feeding inflation continued to weigh on the market.

Markets Today

The trend deciding level for the day is 25,036 / 7,490 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 25,193 - 25,355 / 7,538 - 7,583 levels. However, if NIFTY trades below 25,036 / 7,490 levels for the first half-an-hour of trade then it may correct 24,874 - 24,717 / 7,445 - 7,397 levels.

L& T to sell stake in infra arm for Rs.1,000cr to Canada Pension Plan Investment Board

Larsen & Toubro has signed an agreement with Canada Pension Plan Investment Board (CPPIB) to sell a minority stake in infrastructure development unit IDPL for Rs.1,000cr. As a part of the agreement, the Canadian fund will buy preference shares of L&T IDPL, compulsorily convertible into equity shares by 2018, at a valuation to be determined as per a mutually agreed process. After conversion, CPPIBSH will hold a minority stake in L&T IDPL. The stake sale is a part of the L&T's strategy to deleverage its investment in projects that it is developing under the public-private partnership model.

According to Larsen & Toubro chief financial officer R Shankar Raman, "With its long-term view, CPPIB would be an ideal partner for L&T and will provide growth capital to L&T IDPL to expand its infrastructure development business" The completion of the transaction and receipt of funds is subject to fulfillment of customary closing conditions for transactions of this nature and procuring necessary approvals from relevant government authorities and regulators. We recommend Accumulate on the stock with a target price of Rs.1,750.

Economic and Political News

- India accounted for 5% of global steel production in May

- Give details of 14 projects awaiting clearances: CoalMin to CCL

- Railway fare hike may add up to 50 bps to inflation

Corporate News

- Essar Oil board approves delisting from BSE and NSE

- Canadian pension fund to invest Rs.1,000cr in L&T Infra

- Airtel signs definitive agreement with Loop Mobile