MARKET OUTLOOK- 19th MARCH 2015

Dear Customer,

Markets always tend to be interesting with something or the other happening all the time. Our Morning Mantra is released before the opening bell and it includes the market commentary along with Corporate & Global news for the day.

• U.S. stocks rallied on Wednesday after the Federal Reserve suggested a less aggressive timeline for raising interest rates even as it opened the door for the first hike in almost a decade.

Dow Jones	18076.2	+227.1	+1.27%
Dow Futures	17989.0	+212.0	+1.19%
Hangseng	24397.6	+277.6	+1.15%
Nikkie	19418.4	-126.1	-0.65%
SGX Nifty	8784.0	+91.0	1.05%

• Asian stocks rose, heading for a six-month high, after the Federal Reserve said data suggest U.S. economic growth has moderated and officials indicated interest rates will rise at a slower pace than previously forecast.
• Market is expected to open on positive note and likely to remain strong during the day
• The battle for the control of Mangalore Chemicals and Fertilizers seems reaching a climax, with rival bidderDeepak Fertilisers and Petrochemicals willing to sell its stake in MCF
• Morgan Stanley is now convinced rate hikes won't happen this year. Before Wednesday, most economists were debating whether the Federal Reserve would begin hiking interest rates in June or September. But following the conclusion of its Federal Open Market Committee meeting, the Fed communicated enough concern for the economy that economists now think rates hike are more likely to come later. Some economists were left feeling more emboldened about the calls for a later hike. "Our forecast remains for a September hike, but the risks now appear slightly skewed toward a later liftoff," Goldman Sachs' Jan Hatius said. Morgan Stanley's Ellen Zenter goes much further. Based on her reading of the economic data, which the Fed has said it is dependent on, makes lift off this year unlikely. Positive for Emerging market like India
• Maharashtra State Budget has scraped LBT from 1st Aug 2015. And given priority for completion of Irrigation Project Budget allocation for Irrigation Rs.7200cr
• The government has firmed up a list of PSUs for divestment of minority stakes in the fiscal beginning next month, starting with BHEL as it gears up to raise Rs 41,000 crore through such stake sales in 2015-16.
• Media reports suggest that TPG Capital has put its 20% stake in Shriram City Union Finance on the block and is in talks with several private equity players. As per the current market price, the deal could be valued at around Rs 2,500 crores. ET
• Wockhardt Ltd said the USFDA has not found any issues with respect to data security and control measures at Chikalthana plant in a recent inspection, but suggested continuous voluntary compliance for "desired quality culture".
• The government is likely to give nine coal mines to state-run Coal India Ltd in case the ongoing scrutiny establishes that there was cartelisation in the recent auction for these blocks.
• Ortel Communications is listing today. The issue price was Rs 181
• Debt laden GTL Infra looking for a buyer
• Gujarat Narmada Valley gets notice for `2752 Cr from DoT
• Textile Sector Update – Institution Desk: Indian cotton yarn industry has been facing pricing and demand pressure since the past few months because of falling exports to China. However, the fall in raw material costs (cotton) provides some comfort. The decline in cotton prices was steeper than the fall in cotton yarn prices. Monthly cotton yarn prices (40s count) in India declined 22.5% over January 2014-February 2015. However, monthly cotton prices (S-6 and J-34 varieties) declined 27% over the same period. As per industry experts, stability in cotton yarn prices or rather the decline in the pace of price erosion is likely towards the end of the current cotton season (CS) in July 2015. This is mainly on account of likely return of normalcy in global demand–supply situation and steady domestic demand for cotton yarn. We believe the spinning industry, which registered a dream run for the past two financial years in a row, has started witnessing headwinds since the past couple of quarters. We believe this will continue for a few more quarters in FY16 and revive from 4QFY16 onwards on the back of yarn price stability, improvement in demand and easy availability of finance. Consequently, the capex cycle in textile spinning industry is likely to revive from 4QFY16. We expect the allocation for Technology Upgradation Fund Scheme (TUFS) in FY17E to go up from Rs15bn in FY16. As regards the medium-term outlook, demand for cotton yarn is expected to touch 5.0bn kg by CS19E from 3.8bn kg in CS13.