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Reports India

Indian stock market and companies daily report (June 27, 2014, Friday)

June 27, 2014, Friday, 06:33 GMT | 01:33 EST | 10:03 IST | 12:33 SGT
Contributed by Angel Broking

Indian markets are expected to open on a flat note tracking flat opening in SGX nifty while most of the Asian markets are trading in negative territory.

US stock markets ended the day roughly flat after significant recovery over the course of the trading day on Thursday. The early weakness on Wall Street was partly due to renewed concerns about the economic outlook following the release of a Commerce Department report showing weaker than expected personal spending growth in the month of May which edged up by 0.2% (expectations of 0.4%) after coming in unchanged in April. Meanwhile, European stocks ended the day lower amid heightened regulation in the U.S. for Credit Suisse.

On domestic front, Indian shares fell sharply on Thursday as oil & gas stocks came under selling pressure after the Cabinet Committee on Economic Affairs (CCEA) deferred the decision on gas price hike by three months.

Markets Today

The trend deciding level for the day is 25,131 / 7,515 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 25,241 - 25,419 / 7,549 - 7,604 levels. However, if NIFTY trades below 25,131 / 7,515 levels for the first half-an-hour of trade then it may correct 24,953 - 24,843 / 7,460 - 7,426 levels.

Power ministry approves Rs.12,500cr package of transmission projects

The power ministry has approved Rs.12,500cr package for development of nine high capacity transmission projects. According to ministry statement, these transmission projects will benefit several states such as Haryana, Chhattisgarh, Uttar Pradesh, Madhya Pradesh and Maharashtra, by enabling high capacity 765 KV lines carrying up to 2,100MW each apart from construction of new 765 KV substations. The package of new lines and substations, when commissioned, will ramp up the country's transmission capacity and boost supply across five states. The projects will be set up through international competitive bidding and help evacuate power from central generating stations including NTPC's 660 Mw Sipat, 1,600Mw Gadarwara and private sector's stations like 1,320 Mw Sasan Ultra Mega Project. These nine projects will be commissioned by 2017, helping raise the country's transmission capacity by 28,000Mw to 660,000 Mw over the next three years. The approval of transmission projects is positive development for transmission companies such as KEC International, Kalpataru Power and Jyoti Structures, among others. We maintain Buy on KEC International with a target price of Rs.140.

Ashok Leyland to raise Rs. 700cr through QIP

Ashok Leyland is planning to raise ~Rs.700cr through a qualified institutional placement (QIP). The floor price for the QIP is Rs.34.3 based on the SEBI's pricing formula. Through this the company plans to issue up to 185,200,000 shares. As per the media reports, the proceeds from the QIP would be used for long-term funding requirement, repayment of existing loans, etc. Also, the company is planning to invest Rs.200-250cr on developing new products.

Economic and Political News

- Power ministry approves Rs. 12,500cr package of transmission projects

- Assocham suggests measures to boost agriculture growth

- With truant rains, Guj govt prepares contingency plan for farmers

- State govts get 3 more months to implement Food Security Act

Corporate News

- Telcos with quashed licences to get demand notices of Rs. 2,452cr

- Cognizant wins 7-yr IT services contract from Danish firm

- Coal India yet to sign fuel supply pacts for 4925 MW

- L&T to scale up avionic software biz, acquires Thales software unit in India