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Reports India

Indian stock market and companies daily report (March 25, 2014, Tuesday)

March 25, 2014, Tuesday, 04:21 GMT | 00:21 EST | 09:51 IST | 12:21 SGT
Contributed by Angel Broking

The Indian Markets are expected to open on a flattish note tracking mixed opening in Asian markets.

US markets moved mostly lower over the course of the trading session on Monday. The downturn by the markets was partly due to the release of a report from Markit Economics showing that its reading on U.S. manufacturing activity fell by more than expected in March. Markit EconomicsRs. flash estimate of its manufacturing purchasing managers index for March came in at 55.5, down from 57.1 in February. Markit and HSBC released a separate report earlier in the day showing that the Chinese manufacturing sector fell deeper into contraction territory in March. The manufacturing purchasing managers index for China came in at a seasonally adjusted 48.1, representing an eight-month low.

Indian markets hit fresh record highs on Monday, with banks leading the rally, as investors bet big on a pro-reform government at the Centre after the general elections starting on April 7. Also it is widely expected that the RBI will keep interest rates on hold when it reviews monetary policy on April 1.

Markets Today

The trend deciding level for the day is 21,986 / 6,562 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 22,144 - 22,233 / 6,613 - 6,643 levels. However, if NIFTY trades below 21,986 / 6,562 levels for the first half-an-hour of trade then it may correct 21,897 - 21,739 / 6,532 - 6,481 levels.

Election Commission recommends to keep gas price hike on hold

The Election Commission (EC) has ordered deferment of an increase in gas prices that was to take effect from April 1, 2014. EC stated that the decision on quantum of increase in gas price should be decided by the new government that will be formed after the general election. Reliance Industries and ONGC were likely to be key beneficiaries of increase in gas price. Hence, these stocks are likely to react negatively in the short term due to EC order. We await further clarity on the matter. Until then, we maintain our estimates and ratings on the stocks.

Bharti Airtel to offer digital TV services on smartphones

According to media reports, Bharti Airtel is set to launch Digital TV services on mobile phones this week, offering consumers live content from over 150 channels on the go, which could significantly push up data consumption on its networks and consequently data revenue. Bharti Airtel is expected to launch a free app - Pocket TV - on Google Play next week, and a month later, on App Store (for iOS platform), which will give access to the service. However, customers will have to subscribe to the service by paying Rs.60 a month, and the service will be restricted to existing Airtel Digital television subscribers. Customers will be able to watch unlimited television on the go but will have to pay additional charges for data consumed through the mobile phone. The company added that the service was propelled by 400% increase in mobile TV viewership on its networks in FY2013, with sports and news getting most traction. This move could lead to increase in data consumption on mobile phones for all operators as customers owning a Vodafone or Idea mobile connection can view television on the mobile phone, as long as they have an Airtel Digital connection at home. Bharti Airtel will become the latest among digital television providers to offer TV on the mobile phone. Its competitors including Dish TV and Tata Sky with an estimated ~12mn and ~11mn plus customers each, respectively, have launched TV on the go at comparable prices last year. Currently, we maintain our Neutral rating on the stock.

BHEL wins Rs.3,000cr order from NTPC

BHEL has received an order worth Rs.3,000cr from NTPC for supply of steam generators in Odisha for an upcoming power project. BHEL will supply 2x800 MW steam generators with super critical parameters to NTPC for the project at Darlipali in Odisha. The scope of work includes design, engineering, manufacture, supply, erection, testing and commissioning of the steam generators and auxiliaries. The key equipment for the contract will be manufactured at BHEL's Trichy, Ranipet, Bhopal, Hyderabad and Bangalore plants. We maintain Neutral rating on the stock.

JPA to sell its stake in Bokaro cement plant

Jaiprakash Associates has signed an agreement to sell its 74% stake in a cement manufacturing unit in Bokaro to Dalmia Cement for Rs.69.74/share (i.e. Rs.690cr). In addition to the equity investment, Dalmia Cement will also take over around Rs.250cr of debt of the plant. The deal values the cement manufacturing unit in Bokaro at Rs.1,150cr. The proceeds of the stake sale will help Jaiprakash Associates in its plan to cut the Rs.55,000cr debt on its books. The company plans to slash its debt by Rs.15, 000cr by March end and has already sold two hydro-electric plants to achieve the target.

Economic and Political News

- CACP recommends moderate increased in MSP of kharif crops

- FinMin to hire external monitors to oversee disinvestment

- Investment into Indian shares through P-Notes surged to US$28bn in February, 201 4

- Railways set to achieve revised freight loading target

Corporate News

- ACC likely to buy Jaypee's stake in two cement JVs with SAIL

- Bank of India to sell Rs.900cr assets to ARCs in trhe current quarter

- Engineers India wins US$40mn overseas contract

- Financial Technologies to sell Rs.72.9cr worth shares to Golden Oak

- GAIL signs MoU with Chubu Electric Power, Japan

- Reliance Power commissions third unit of Sasan UMPP

- Supreme Infrastructure gets Rs.618cr order

- Tata Power's Rs.2,000cr rights issue to open on March 31, 201 4