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Indian stock market and companies daily report (March 14, 2013, Thursday)

Contributed by Angel Broking

Indian markets are expected to open marginally in the red tracking SGX Nifty, which too is currently trading marginally lower by ~0.1%. Major Asian indices have had a mixed opening. While the Hang Seng is trading lower by ~0.8%, Shanghai and Nikkei are trading marginally in the green.

US stocks moved modestly higher on Wednesday after recovering from an early move on the downside. The Dow ended the day slightly higher, recording its first nine-day winning streak since November of 1996 and setting another new closing record high. Before the start of trading, the Commerce Department released a report showing a strong jump in retail sales in February, although the increase was largely due to higher gas prices. Most of the European markets were down on Wednesday.

Meanwhile Indian markets extended declines for a third day in a row, weighed down by renewed concerns about a slowdown in China and uncertainty over EuropeRs.s economic outlook. The Indian markets will keenly await the WPI numbers, which are to release during the day.


Markets Today

The trend deciding level for the day is 19,404/ 5,862 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 19,470 - 19,578 / 5,883 - 5,914 levels. However, if NIFTY trades below 19,404/ 5,862 levels for the first half-an-hour of trade then it may correct up to 19,297 - 19,231 / 5,831 - 5,811 levels.


TTMT global sales dip sharply in February 2013

The global sales of Tata Motors (TTMT) reported a sharp decline of 22.4% yoy to 98,837 units primarily due to the poor performance by the domestic passenger (down 68.5% yoy) and medium and heavy commercial vehicle (down 45% yoy) segments. While, global commercial vehicle sales posted a decline of 10.2% yoy; global passenger vehicle volumes fell significantly by 32.8% yoy.

Jaguar and Land Rover (JLR) recorded a healthy 10% yoy (down 7% mom) growth in overall wholesale volumes to 35,485 units; however, it was slightly below our expectations of 36,500 units. The growth during the month was impacted largely due to the weeklong holidays in China on account of the New Year (holidays fell in January in 2012). Jaguar sales posted a robust 68% yoy (10.3% mom) growth, which was ahead of our estimates, led by the model year 2013 vehicles - XF Sportbrake, XF AWD and smaller engine variants of XF and XJ. Land Rover sales registered a modest growth of 1.3% yoy (10.6% mom) largely due to the holidays in China which impacted the overall deliveries. While deliveries of Evoque stood at ~ 10,800 units (down 8.5% mom); the new Range Rover dispatches stood at ~4,000 units (flat mom).

We retain our positive view on JLR and expect the company to sustain its growth momentum driven by Evoque and new product launches (Range Rover, Range Rover Sport, Jaguar XF Sportbrake and AWD and smaller engine variants of XF and XJ models). We maintain our Accumulate rating on the stock with an SOTP based target price of ?326.


BGR Energy pulls out of Rs.800cr contract with NTPC

BGR Energy has pulled out of a contract worth Rs.800cr, for supply of power equipment to NTPCRs.s proposed 1,600 MW Darlipali project in Odisha. The company pulled out since the project got delayed on account of non-availability of various clearances.

NTPC was supposed to provide BGR Energy with the Notice of Authorization to start the work on the contract. However, NTPC is yet to receive the requisite land for the project due to non-availability of various clearances. We maintain Neutral on the stock.


Economic and Political News

- Delinking of environment and forest clearances gets SC nod

- World Bank to lend $5 bn for poverty eradication

- Indirect tax collections rise by 20% in Apr-Feb


Corporate News

- Apollo Global Management to sell 11 % stake in Dish TV

- MRPL retracts Haldia PetChem buyout plan

- SC disposes petitions to free up Tata TeleservicesRs. GSM spectrum

- Wave Infra to invest Rs 500 cr in affordable housing