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Reports India

Indian stock market and companies daily report (November 20, 2012, Tuesday)

November 20, 2012, Tuesday, 04:01 GMT | 23:01 EST | 08:31 IST | 11:01 SGT
Contributed by Angel Broking

The Indian market is expected to open in green tracing positive cues from SGX Nifty and major Asian indices backed by upbeat U.S. housing data and increasing confidence that a U.S. budget deal would be reached to avoid the fiscal cliff problem.

The U.S. market moved sharply higher on Monday following a constructive meeting on the fiscal cliff along with a continued recovery witnessed in the housing market. The U.S. housing report showed that existing home sales rose by 2.1% to an annual rate of 4.79mn in October 2012 from a downwardly revised 4.69mn in September 2012. Additionally, as per the National Association of Home Builders, index of homebuilder confidence rose for the seventh consecutive month in November 2012, reaching a new six-year high. The European markets finished in the green on Monday, rebounding from the weakness of the previous three trading sessions.

Meanwhile, the domestic markets moved sideways before ending little changed on Monday as investors adopted a cautious approach ahead of the winter session of parliament that would begin on Thursday wherein the key economic agenda for the session includes amendments to Insurance Bill, Banking Regulation Bill and Direct Tax Code. Moreover, the markets would await today's meeting of Eurozone finance ministers on Greece in Brussels seeking a plan to bridge a financing gap created by a two-year extension of Greece's bailout program, while settling a dispute with the International Monetary Fund on the same.

Markets Today

The trend deciding level for the day is 18,327/ 5,571 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18,398 - 18,458/5,593 - 5,615 levels. However, if NIFTY trades below 18,327/5,571 levels for the first half-an-hour of trade then it may correct up to 18,268 - 18,1 97/5,550 - 5,528 levels.

Coal India's November production slips slightly

Coal India has stated that its production during 3QFY2013 may see some slippage as Nilam cyclone and festivals affected its mining activity during November. The company had set a production target of 125mn tonnes for 3QFY2013. For FY2013, it has set a target to produce 464mn tonnes production, compared to 436mn tonnes produced in FY2012. Our estimate for FY2013 production stands lower than company's target at 458mn tonnes and hence, we maintain our estimates currently. We maintain our Neutral rating on the stock.

Sadbhav Engineering bags Rs.720cr road contract

Sadbhav Engineering has been declared as successful bidder for four laning of Rajsmand - Bhilwara Section of NH-758 under NHDP Phase IV in the State of Rajasthan on DBFOT (Toll) basis. The estimated total project cost is '720cr which includes a grant of ~'266cr and has a concession period of 30 years. We believe it is positive for the company and maintain Buy rating on the stock with a target price of '182.

Economic and Political News

- India to join ambitious trade agreement of 16 nations

- GoM on drug pricing policy to meet Wednesday

- Mumbai records maximum growth in retail rent globally

- Steel ministry seeks iron ore mines in UP for RINL

- Govt decides to deallocate coal mine jointly given to 3 firms

Corporate News

- Dr Reddy's launches Sildenafil tablets in U.S.

- PTC India to raise US$40mn from IFC

- Karnataka Bank raises '250cr through tier-II bonds

- Infosys launches new solution for Japanese companies

- HMSI recalls 1 1,500 CBR250R motorcycles due to faulty brakes