MARKET OUTLOOK 8TH APRIL, 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 ended slightly lower on Tuesday, reversing course late in the session as strength in the dollar offset optimism about deal news.

Dow Jones	17875.4	-5.4	-0.03%
Dow Futures	17785.0	-20.0	-0.11%
Hangseng	25764.0	+488.4	+1.93%
Nikkie	19723.4	+82.9	+0.42%
SGX Nifty	8745.0	+18.0	+0.21%

 

• Asian stocks climbed toward a nine-month high, led by Hong Kong shares, and the dollar weakened before the Bank of Japan decides policy and the Federal Reserve releases minutes of its March meeting. Crude oil fell ahead of U.S. inventory data.
• Hong Kong is up by 2 % as it was close on last three trading days however China was open. It’s more of a catch up by index
• Market is expected to open on positive note and likely to remain range bound during the day.
• CCEA allowed the FDI limit to 49% from 35.07% in Glenmark
• Dr Reddy has filed three 505(b)(2) NDAs with USFDA. Though there is no immediate financial benefit, it is positive for long term growth of the company.
• CCEA has given the nod for qualified institutional buyers to infuse fresh equity of up to 7% in Aurobindo. The existing FII shareholding is at 27.32%.
• SBI, HDFC Bank and Lakshmi Vilas Bank have Cut Lending Rate By 15 bps whereas ICICI has cut rates by 25 bps.Marginal positive for NBFC and Housing finance co which borrow from banks
• The Union government on Tuesday cleared amendments to the Real Estate (Regulation and Development) Bill, 2013, paving the way for legislation on regulators for the sector. Developers, both in residential and commercial sectors, will be required to register their projects with the regulatory authorities to be set up and will have to mandatorily disclose all information regarding the promoters, project, layout plan, schedule of development works, land status and status of statutory approvals.
• Supreme Court Rejects Kingfisher's Plea Challenging Rs 372 Cr TDS Demand
• Supreme Infrastructure has bagged a Rs 207-crore contract from National Highways Authority of India for widening a road in Punjab.
• RBI Monetary Policy – Institution Desk: The Reserve Bank of India (RBI) kept key rates unchanged after its monetary policy review today. Going forward, the RBI has conditioned monetary policy action on four bases: a) Transmission of recent policy rate cuts by commercial banks, b) Evolution of inflation pressure, c) Fiscal measures to ensure better supply, and d) Normalisation of the US monetary policy. The central bank expects retail inflation to ease to ~4.0% by August 2015, before moving up to 5.8% by the end of FY16. Further, real GDP growth is projected at 7.8% in FY16, up from 7.5% in FY15. Amalgamating the RBI’s stance with our assessment, we maintain the central bank will pause in 1HFY16 before considering further rate cuts. In case, the monsoon turns out to be normal, the government delivers on its FY16 capital spending target and the US Federal Reserve postpones its rate hike to next year, the repo rate may be cut by another 50bps to 7% by the end of FY16. If these conditions are not met, the case for rate cut weakens.
• REC – OFS Note: REC Offer for Sale Note: Rural Electrification Corporation (REC), incorporated in 1969, is a leading public institution primarily involved in the financing of T&D and generation projects across India. Promoters of the company (Government of India) holds 65.64% stake implying 34.36% public holding. REC proposes to sell an aggregate of 4.94 cr shares representing 5% of the total share capital of the company.  The offer for sale opens today at a floor price of Rs 315 and the issue size is of Rs.1556 cr. As much as 20% of the offer size would be reserved for retail investors, who can bid for shares worth Rs.2 lakh. They would be offered shares at 5% discount to issue price. At the floor price of Rs 315 the share is offered at at P/E of 5.7x and 5.05x its FY15E and FY16E EPS and 1.28x and 1.08x its FY15E and FY16E BVPS

 

• Result Announced

GM Breweries

Result is ok