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Reports India

Indian stock market and companies daily report (March 28, 2014, Friday)

March 28, 2014, Friday, 05:32 GMT | 01:32 EST | 11:02 IST | 13:32 SGT
Contributed by Angel Broking

The Indian Markets are expected to open flat to positive tracking marginally positive opening in most of the Asian markets.

US markets extended losses for the second day and finished lower Thursday, amid concerns that improving economic indicators might force the Fed to start raising rates sooner than anticipated. The Labor Department released a report showing that initial jobless claims unexpectedly fell to a nearly four-month low to 311,000 in the week ended March 22nd, from the previous week's revised figure of 321,000. Meanwhile, the National Association of Realtors released a report showing that its pending home sales index dropped by 0.8% to 93.9 in February after edging down by 0.2% to a downwardly revised 94.7 in January. The Commerce Department also released a report showing an upward revision to fourth quarter GDP growth.

Indian markets saw further upside to close at fresh record highs on the back of robust capital inflows from FIIs on expectations about the likely outcome of general elections. Data shows that FIIs purchased shares worth nearly Rs.11,700cr thus far in 2014.

Markets Today

The trend deciding level for the day is 22,205 / 6,638 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 22,317 - 22,419 / 6,677 - 6,713 levels. However, if NIFTY trades below 22,205 / 6,638 levels for the first half-an-hour of trade then it may correct 22,103.

RBI extends the transitional period for full implementation of Basel III norms to March 31, 2019

RBI has extended the transitional period for full implementation of Basel III norms upto March 31, 2019 instead of as on March 31, 2018. As a result the full implementation of Basel III in India is now closer to internationally agreed date of January 1, 2019. Also the capital conservation buffer (CCB) scheduled to be implemented from March 31, 2015 would now begin from March 31, 2016 and be fully implemented as on March 31, 2019.The Basel III compliant AT1 instruments issued before March 31, 2019 will now have two pre-specified triggers - a lower trigger at CET1 of 5.5% before March 31, 2019, after which this trigger would be raised to CET1 of 6.125% of RWAs. On the Rs.distributable itemsRs. front RBI has prescribed that the dividend on common shares and perpetual non-cumulative preference shares (PNCPS) to be paid out of the current year's profit only. The move to extend Basel III implementation deadline is positive for Banks (especially PSU banks) as it provides a leeway for Banks already grappled with asset quality stress.

Supreme Court proposes barring CSK from IPL Season 7

Supreme Court (SC) has made a proposal to Board of Control of Cricket in India (BCCI) to bar India CementsRs. IPL franchisee Chennai Super Kings (CSK) from participating in the IPL's season 7 expected to begin on April 16th. The court made this proposal yesterday while hearing a case on match fixing and betting which have taken place during the past IPL seasons. The court had in its proposal to BCCI asked whether CSK and another franchisee of IPL Rajasthan Royals could be barred from taking part in IPL till this case on match fixing is over. The SC also proposed to pass an order barring India Cements officials from getting involved with the functioning of BCCI. SC is expected to pass an interim order on the case today after getting the reply from BCCI. We maintain a Neutral Rating on India Cements.

Lupin- Acquires a company in Mexico Pharmaceutical

Lupin announced the acquisition of 100 % equity stake in Laboratorios Grin, S.A. De C.V. (Grin), Mexico. The acquisition marks Lupin's foray into the high growth Mexican and the larger Latin American pharmaceuticals market. Mexico is one of the fastest growing pharmaceutical markets in the world valued at over US $13.5bn and growing at 9- 10% annually. Incorporated in 1955, Grin is a specialty pharmaceutical company engaged in the development, manufacturing & commercialization of branded ophthalmic products. Grin is a leading ophthalmic player and a trusted brand in Mexico. Laboratorios Grin recorded revenues of approximately $28mn in CY2013 and has over 275 employees. The acquisition will provide a lot of synergies to the company and add to its ophthalmic pipeline. We remain neutral on the stock.

Economic and Political News

- RBI rate hike to push cos over default cliff: India Ratings

- Coal scam: Court fixes May 2 for consideration on charge sheet

- Maharashtra remittances grow 12% from last year, cross US$1 bn

- Rs.ChindiaRs. still vibrant idea: Jairam Ramesh

Corporate News

- Coal India sees production growing 6.7% next fiscal

- Fortis gets into aggresive expansion mode

- Infotech Enterprises to change name to Cyient Ltd

- Reliance MediaWorks delisting exit price fixed at Rs.61 per share

- L&T wins housing contracts worth Rs.1,981cr

- NTPC plans to import 15mn tonnes of coal in FY2015

- ONGC non-tax dole to govt touching Rs.50,000cr this year

- Sadbhav Eng bags Rs.212cr highways project in Rajasthan

- Shriram City's Rs.200cr NCD to open on April 16

- Wipro expands footprint in Scotland

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