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Reports India

Indian stock market and companies daily report (March 31, 2014, Monday)

March 31, 2014, Monday, 05:45 GMT | 00:45 EST | 09:15 IST | 11:45 SGT
Contributed by Angel Broking

Indian markets are expected to open on a positive note today tracking positive start to SGX Nifty and most of the Asian indices.

US markets ended higher on Friday post lackluster performance throughout the session. The positive closing was partially owing to the strong statistics about the consumer spending. The U.S. Department of Commerce said personal spending picked up and rose in February by 0.3% (in line with expectations) as compared to the 0.2% in the previous month. Two new reports raised optimism about the health of the consumer and indicated that consumer attitudes were holding steady. Meanwhile, European stocks ended the week on strong note on the back of encouraging UD data and China's talk of massive spending on infrastructure projects in a bid to jump start the world's second-largest economy.

Back home, Indian markets continued to post fresh record highs aided by supportive global cues and continued buying by FII's on expectations of a Narendra Modi led government at the Centre post elections.

Markets Today

The trend deciding level for the day is 22,296 / 6,681 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 22,408 - 22,475 / 6,718 - 6,740 levels. However, if NIFTY trades below 22,296 / 6,681 levels for the first half-an-hour of trade then it may correct 22,229 - 22,117 / 6,659 - 6,622 levels.

Environmental panel recommends environmental clearance for Coal India's Jharkhand mine

Media reports suggests that The Expert Appraisal Committee (EAC) has recommended environment clearance (EC) for expansion of Coal India subsidiary Central Coalfield's mining project in Jharkhand with certain riders. The conditions include that the colony people are supplied with treated drinking water, sewerage treatment plant be made operational in 300 days and the baseline survey and evaluation of projects for CSR be completed within one year. The proposal was for expansion of Govindpur Ph-II open cast coal mining project from 1.5 million tonnes per annum (MTPA) to 2.0 MTPA of Central Coalfields in district Hazaribag, Jharkhand. This is a positive development for CIL since it is struggling to ramp up its production due to pending environmental clearances. However we await further clarity on the timeline of granting of EC by MoEF and until then maintain our Accumulate rating on the stock with a target price of Rs.313.

Bosch faces labor trouble at its Nashik plant

According to media reports, Bosch India faces a risk of agitation at its Nashik plant. The reports indicate that a section of its employees at the plant have resorted to on an indefinite fast from March 27, demanding an early settlement to the wage revision negotiations. According to reports, the Management has failed to enter into a new wage settlement agreement with the employees even though the previous agreement expired on December 31, 2012. The employee union alleged that the company has been delaying the wage settlement agreement and on the contrary is demanding an increase in production by 8% from the employees. The employees have agreed for a production increase of 4% on the condition that all their demands including a wage hike of Rs.9,800/ month are met. We await more clarity on this front; however, we do not expect a major impact of the strike on company's financials. At the CMP, the stock is trading at 25.7x CY2015E earnings. We maintain our Neutral rating on the stock.

Economic and Political News

- Govt to borrow Rs.3.68lakh cr in first half of 2014-15

- IIP deteriorates on rise in external liabilities in Q2: RBI

- RBI's swap scheme raises external debt to US$426bn Dec-end

- HSBC, RBS see RBI leaving rates unchanged on Tuesday

Corporate News

- After dissolving board, Infosys to have 9 executive officers

- RIL to sell D6 gas at current price from April 1

- Bharti Telecom buys Airtel's shares for Rs.1 72cr, hikes stake

- Legal breather for Cairn India on I-T notice

- IBM to invest US$1 00mn globally for new consulting model