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Indian stock market and companies daily report (March 06, 2013, Wednesday)

Contributed by Angel Broking

The Indian market is expected to open in the green today mirroring positive opening trades in the SGX Nifty and most of the Asian markets.

After showing a strong upward move in early trading on Tuesday, US stocks continued to perform well throughout the session. The strength on Wall Street reflected a positive reaction to news from overseas as well as an upbeat report on US service sector activity. The European markets ended TuesdayRs.s session in positive territory. The markets were able to build on the positive performance of the Asian markets, after China maintained its economic growth target at 7.5% for 2013, while lowering its inflation target to 3.5% from previous yearRs.s 4%. The European markets also received a boost from the better-than-expected retail sales report from the Eurozone and the smaller-than-expected decrease in the service sector.

Meanwhile, Indian shares joined a global rally in equities on growing hopes that the Reserve Bank of India will cut interest rates later this month and that other major central banks across the globe would decide to keep monetary policy loose at meetings this week.


Markets Today

The trend deciding level for the day is 19,084/ 5,766 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 19,224 - 19,304 / 5,809 - 5,833 levels. However, if NIFTY trades below 19,084/ 5,766 levels for the first half-an-hour of trade then it may correct up to 19,003 - 18,863 / 5,741 - 5,698 levels.


ICICI Bank receives capital repatriation of $100mn from UK subsidiary

ICICI Bank has received capital repatriation of US$1 00mn (Rs.550cr) from its UK subsidiary, in-line with the ManagementRs.s guidance of consolidation in the overseas operations. The UK subsidiary had a strong CAR of 31.5% as of 3QFY2013, which would remain strong even after the repatriation. The repatriation would also marginally improve the already strong capital adequacy of ICICI Bank at 19.5%, (tier-I capital ratio at 13.5%), apart from slightly aiding its return on equity. We maintain our Buy recommendation on the stock with a target price of Rs.1,302.


KFA lenders complicate Diageo deal; may sell pledged USL shares

As per media reports lenders to Kingfisher Airlines (KFA) have indicated they may sell 2% of USL shares pledged with them as collateral either in the market or at a higher price to outsider to recover the funds they have lend to the company. If the lenders donRs.t release the 2% stake, then the UB group will be forced to find extra shares in order to complete the deal. This could complicate the deal as 98% of the promoter (UB group) stake of 27.5% in USL is pledged. Although, the recent development is a minor setback for the USL-Diageo deal we expect the deal to go through. The deal has already got the requisite approvals from SEBI and CCI. We maintain a neutral view on USL.


Economic and Political News

- Current account deficit biggest concern: Chief Economic Adviser Rajan

- Financial burden on Food Bill wouldnRs.t be huge in FY2014: K V Thomas

- High inflation prompting more gold buys: RBI


Corporate News

- Alembic Pharma gets US nod for antidepressant tablets

- Coal India sets 492 MT production target for FY2014

- DLF Board to meet tomorrow to consider share sale

- Dr ReddyRs.s launches anti-SRE drug in US

- M&M faces temporary disruption in production at its Nashik plant

- ONGC, Oil India may bid for Mozambique gas stake