MARKET OUTLOOK 20th 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 fell Thursday, pulling back a day after the Federal Reserve’s cautious stance on interest rates spurred strong gains.

Dow Jones	17959.0	-117.16	-0.65%
Dow Futures	17885.0	-104.00	-0.58%
Hangseng	24419.2	-49.66	-0.20%
Nikkie	19486.8	+10.19	+0.05%
SGX Nifty	8639.5	+15.50	+0.18%

 

• U.S. stocks fell Thursday, pulling back a day after the Federal Reserve’s cautious stance on interest rates spurred strong gains.
• Market is expected to open on flattish note but may advance during the day.
• Axis Bank cuts deposit rates by up to 0.25%
• FTSE changes from 20th March : New additions - Bosch, LIC hsg, Marico, Pidilite, Britannia, Bajaj finserv
• BHEL has won an order for setting up a 120 MW Hydro Electric Project (HEP) in the state of West Bengal, against International Competitive Bidding.
• Force Motors said its promoters have acquired more than 100,000 shares of the company from the open market, thereby increasing their stake to over 60%. 
• China's quality watchdog has asked Jaguar Land Rover to recall Range Rover Evoque SUVs, following a media report which said the vehicles used faulty gearboxes. (ET)
• JSW Steel has expressed interest in the 4,004 acres earmarked for Korean steel major Posco's seemingly doomed mega project in Odisha. 
• RBI allowed Zicom Electronic Security Systems to raise the limit of investment by NRIs and persons of Indian origins to up to 24% of the company's paid up capital. Existing FII holding is 1.8%
• Coal India Ltd is likely to miss its output target of 507 million tonnes by over 10 MT in the current fiscal on account of various delays at the level of states in operationalising mines. (ET)
• Rajesh Exports Ltd, has bagged an export order worth Rs 1,265 cr of designer range of gold and diamond studded jewellery and medallions from UAE-based Al Sultan Jewellery. The order is to be completed by May 31, 2015.
• LIC has picked up 9.9% stake in rating agency CARE for about Rs428 cr. LIC acquired 28,82,136 shares of the company through a bulk deal.
• Brand Allen Solly from Madura Garments owned by Aditya Birla Group is eyeing a turnover of Rs 1,000 cr in FY16 and Rs 800 cr in FY15.  It will be adding 50 new stores across India in FY16.
• Aurobindo Pharma gets tentative approval from USFDA for Lacosamide Tablets. It is under patent drug having sales of ~$600 mn. Patent expiry is in CY22. Sentimentally positive however nothing immediately
• Private banks like Axis bank, HDFC Bank, ICICI Bank to increase service charges and penalties. ICICI Bank will charge Rs100 more for non-maintenance of average monthly balance in metros and Rs50 more in semi-urban areas.
• US Monetary Policy: Fed Unlikely To Hike Rates In 2015– Institution Desk: As expected, the US Federal Reserve (Fed) dropped the word ‘patient’ from its statement after the policy meeting on 17-18 March 2015, but this does not imply its impatience. Our analysis of the Fed’s communications since December 2008 reveals that this is for the ninth time it has changed/updated its guidance on interest rates. Taking into account the reality, the FOMC (Federal Open Market Committee) lowered inflation and economic growth projections (versus its December 2014 forecasts) along with the unemployment rate. This implies that the FOMC expects more slackness in the labour market currently compared to three months ago. More importantly, the FOMC substantially pared its rate hike projection path with as many as 13 members (up from 8 in December 2014) expecting the Federal funds rate to stay <=1% by 2015-end, while 11 participants (up from only four in December 2014) expecting it to be <=2% by 2016-end. The FOMC stressed that while a rate hike is unwarranted at its next meeting scheduled on 28-29 April 2015, all rate decisions at subsequent meetings will be data-driven. This fits well in line with our assessment that the Fed is likely to postpone rate hike to 2016.