MARKET OUTLOOK: Market is expected to open on positive note and likely to remain firm during the day

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 recorded the biggest gain in more than a month as expectations for a rate hike were pushed back following disappointing data on retail sales.

Dow Jones	17895.2	+259.8	+1.47%
Dow Futures	17792.0	+230.0	+1.31%
Hangseng	23887.2	+89.3	+0.38%
Nikkie	19265.1	+273.9	+1.44%
SGX Nifty	8871.0	+64.5	+0.73%

 

• Asian stocks rose, following a rebound in U.S. shares, after an unexpected drop in American retail sales strengthened the case for keeping interest rates lower for longer in the world’s largest economy.
• Market is expected to open on positive note and likely to remain firm during the day
• Reliance Infrastructure has decided to monetise its cement business to fund the acquisition of Pipavav Defence and Offshore Engineering, which it is acquiring for Rs 2,082 crore.Reliance Cement, a fully-owned subsidiary of Reliance Infra, is in talks with two international cement companies, Heidelberg and Italcementi, and has offered a 50 per cent stake in the company. The prospective joint venture partner will also fund the company's cement capacity expansion - estimated to rise from five million tonnes per annum (mtpa) to 15 mtpa by 2018. (BS)
• IIP came at 2.6% vs exp 0.7% and MoM 1.7%
• CPI inflation came at 5.37% vs exp 5.21% mom 5.11%. Marginally ahead but should not have any impact
• In a major relief to the NDA government, the Congress extended its support to pass the long- pending Insurance Laws (Amendment) Bill, 2015 in the Rajya Sabha on Thursday even as a number of Opposition parties staged a walkout .Stocks like Max India, Bajaj Finserv, Exide Industries, Reliance Capital will be in focus.
• Blackstone Group is in advanced talks to buy a stake of about 40% in DLF's Cybercity in Gurgaon, a business district with 10.37 million square feet of office space. (ET).
• HSIL board of directors fixed the issue price at Rs 400 a share for QIP lower than the current market price of Rs 444 and the floor price of Rs 412.53. 
• Glenmark Pharmaceuticals Ltd received approval for generic Salmecort MDI inhaler used for management of asthma and pulmonary disease from Russia's Ministry of Health. 
• GSFC has secured the approval of central government for increasing production of neem-coated urea to 100% from the current 35%. (ET)
• Adlabs IPO revised price range to Rs 180-215 from Rs 221-230. IPO extended till 17th march.
• Tata Motors JLR Retail Sales came at 28,689 Units Vs 30,487 Units (YoY) 
• CBI sources said eight corporate houses are under the scanner: DLF Limitless Developers Pvt Ltd, HDFC Bank, Glenmark Pharmaceuticals Ltd, Modril India, Prime Living, NovaLead Pharma, IndusInd Bank and Kakardi British Realty.
• The Securities Appellate Tribunal (SAT) will announce today its order on DLF's plea against SEBI ruling that barred the realtor and its six top executives, including Chairman K P Singh, from markets for three years.
• Sarla Performance Fibers Ltd – Plant visit: We went for plant visit of Sarla Performance. Plant was running at full capacity and the plant manufactures all value added variety of polyester and Nylon yarn for international Brands. Management is down to earth and innovative. Company has also set up plant in US and is in process of ramping up its production. Last qtr the US plant was running at 20% capacity with 2 customer. Company has started supply to one more customer in Q3 and Trial Production for 4th customer is on. Key story in the company is scale up of US Plant to 70-80% capacity which can be possible in FY16. Based on our rough estimates, we believe that the company can do EPS of Rs 52 and Rs 65 in FY16 and FY17 and at current price share is trading at 7.4 and 6 PE respectively. Outlook Positive
• CPI-IPI Tracker- Economy Update- CPI Inflation Edges Up, But IPI Grows Faster- Institution Desk: Although Consumer Price Index (CPI) inflation was slightly above consensus estimate in February 2015, industrial production index (IPI) grew faster than expected in January 2015. Within inflation, core inflation continued to subside for the ninth consecutive month. This was because of higher headline inflation being largely driven by food prices. On the IPI front, not only January 2015 growth was more than expected, the growth number for December 2014 was revised upwards and the contraction in October 2014 was lower than previously estimated. Although the primary driver of IPI was the manufacturing sector, details showed that the growth in manufacturing activity was not broad-based as more than 50% of sub-industries grew at a slower pace compared to January 2014. Going forward, we believe that headline and core inflation numbers are likely to stay largely unchanged. Further, we expect IPI to grow more than 3% in February 2015. The latest overall data does not change our view on the Reserve Bank of India’s (RBI) rate move next month. We continue to believe that the repo rate will be kept unchanged. In fact, rate cut is likely to materialise only in the second-half of FY16, provided the US Federal Reserve postpones rate hike (which is our base case scenario).