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Reports India

Indian stock market and companies daily report (March 12, 2014, Wednesday)

March 12, 2014, Wednesday, 05:40 GMT | 01:40 EST | 10:10 IST | 12:40 SGT
Contributed by Angel Broking

The Indian Markets are expected to open in red tracking negative opening trades in SGX Nifty and most of the Asian markets.

After initially showing a lack of direction, US stocks moved mostly lower over the course of the trading day on Tuesday. The weakness on Wall Street came as traders cashed in on the recent strength in the markets amid a relatively quiet day in terms of corporate and economic news. Concerns about the outlook for the global economy may also have weighed on the markets following yesterday's disappointing Chinese trade data. Meanwhile, European markets remained mostly flat on Tuesday as traders remain cautious amid tensions in the Ukraine and signs that China's economic growth has slowed

Despite firm global cues, Indian markets fell moderately on Tuesday as investors booked profits following five days of consecutive gains.

Markets Today

The trend deciding level for the day is 21,872 / 6,523 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 21,973 - 22,1 19 / 6,552 - 6,592 levels. However, if NIFTY trades below 21,872 / 6,523 levels for the first half-an-hour of trade then it may correct 21,726 - 21,626 / 6,483 - 6,454 levels.

Coal India workers to strike for three days

Coal India workers are likely to go on a 3-day strike from March 13, 2013 to protest for higher demand of wages. The strike will have an estimated impact in production and dispatches by 4mn tonne of coal. Coal India's production could be short of its target of 482mn tonnes by 17mn tonnes for FY2014. We seek more clarity on this event. Until then, we maintain our Accumulate rating on the stock with a target price of Rs.290.

Continued decline in imports leads trade deficit to narrow further to USD8.1bn in February 2014

According to provisional data released by the commerce ministry, the trade deficit for February 2014 has come in at USD8.1bn as against USD9.9bn in the previous month and USD14.1bn in February 2013. The trade balance has continued to improve and this can be attributed to a steep contraction in imports even amidst decline in export growth. Imports have been contracting for the ninth straight month as a result of deterioration in domestic demand as well as curbs on gold imports.

Exports reported de-growth of 3.7% as compared to growth of 4.2% in the previous month and 2.3% in February 2013. Nevertheless, the steep contraction in imports by 17.1% during February 2014 as compared to growth of 2.9% in February 201 3 has more than offset the decline in exports and narrowed the trade deficit to a 5-month low. The import compression is mainly aided by 23.5% lower non-oil imports in February 2014 as compared to a year ago as the domestic demand environment remains sluggish on account of slowdown in the economy. At the same time, gold and silver imports came in 71.4% lower as against a year ago impacted by the linking of gold imports to exports. Oil imports reported decline of 3.1% at USD13.6bn in February 2014 as compared to USD14.1bn during February 2013.

Cumulatively, in the April to February period of FY2014 the trade deficit stands at USD128bn ie almost 29% lower than USD179.9bn in the corresponding period of the previous year. We continue to maintain our CAD estimate for FY2014 at about 2.0% of GDP as compared to 4.8% of GDP in the previous fiscal year.

Bharti Airtel to hike fixed line broadband rates from April

Bharti Airtel's has hiked the charges of fixed-line broadband services from next month, by up to 40% in certain plans. Due to an increase in input cost, the rent will be revised from Rs.250 to Rs.349 with effect from April 17, 2014. In another communication to a customer, the company mentioned that from April 23, the rental will be increased fromRs.850 to Rs.949. The company also plans to increase minimum speed of broadband to 512 kilobit per second from 256 kbps. As per the company, tariff rationalisation is a continuous process and a function of market dynamics. This price revision of broadband plans is due to increasing input costs that have a direct impact on the final prices. Bharti Airtel is the second largest provider of fixed line broadband service with ~1.39mn customers, according to TRAI data for December month. We maintain our Neutral rating on the stoc

Economic and Political News

- Government puts global bond index plan on hold

- EC questions railway FDI proposal

- No headway in India-US civil N-deal

Corporate News

- MFs send second letter to Maruti opposing Gujarat Plant

- No violation in Jet deal, Etihad tells Sebi

- Unitech sells 10 acres of land for Rs.130cr to repay debt

- Reliance Cement plant becomes operational in Rae Bareli

- KEC international's 7acre plot in thane is likely to be purchased by Tata Housing for Rs.210cr