Stock In News:
Tech Mahindra Ltd: IT services firm Tech MahindraBSE 1.19 % said it has set up a global development centre in partnership with Alstom transport, a manufacturer of rail technology.
Infosys Ltd: Infosys, India's second-largest information technology (IT) services company, on Wednesday, said it continued to see weakness in client spending throughout the current quarter ending March 31, 2014
(Q4), and the company might only be able to meet the lower end of its annual revenue growth guidance for FY14, said media reports.
Reliance Industries Ltd: RIL has refuted allegations by the Aam Aadmi Party (AAP) that oil ministers Mani Shankar Aiyar and S Jaipal Reddy were removed because they did not favour the company, saying the "malafide propaganda" was "factually incorrect."
Ranbaxy Laboratories Ltd: Ranbaxy Laboratories Ltd is in talks with at least two companies on sourcing ingredients for a generic version of AstraZeneca Plc's heartburn pill Nexium, a person with direct knowledge of the matter said, after a U.S. ban on shipments from a plant in India.
SAIL: Steel Authority of India Ltd has requested the government to direct Coal India arm Bharat Coking Coal to transfer the surface rights of its coal mine in Jharkhand to the steel PSU so that it can adhere to the committed schedule for development of the block by April next year.
Tata Motors Ltd: Tata Motors Ltd.-owned Jaguar Land Rover (JLR) on Wednesday reported a 14% increase in global sales in February at 30,487 units. The company's sales were up 44% in the China region, 12% in North America, 16% in Asia Pacific and 1% in Europe, JLR said in a statement.
Hero MotoCorp Ltd: The Competition Commission has rejected allegations of unfair business practices against HeroMotoCorp related to an earlier dealership in Karnataka.
Coal India Ltd: Coal India Ltd said its officers will go on a three-day strike from Thursday to demand for a settlement of pay-related issues, in a move that could cut some of its 1.5 million tonnes-per-day output and tighten domestic supplies.
Chettinad Cement & Anjani Portland: Chettinad Cement Corporation is set to acquire controlling interest in Anjani Portland Cement by entering into a share purchase agreement with the promoters of the latter
Nifty News:
Indian markets are expected to trade in a range on Thursday following muted trend seen in other Asian markets. The key support for the index is around 6,461 levels.
"The Nifty is expected to trend up till 6600 in the next couple of days. In this period the key support will be at 6461 and resistance will be at 6540," said Somil Mehta, Senior Tech Analyst (Equity) at Sharekhan.
"The Nifty has been forming higher tops and higher bottoms; it has also closed above the previous swing's high which is a positive sign for the market. The short-term bias remains positive for a target of 6600 with
reversal at 6200," he added.
Mehta is of the view that the medium-term outlook remains positive as the index has started forming higher tops and higher bottoms on the weekly chart and the momentum indicator has given a positive cross-over.
Pre-market: Nifty seen opening flat; may retest 6500 levels
(Source: Economic Times)The 50-share Nifty index is expected to open flat on Thursday following muted trend seen in other Asian markets. Tracking the momentum, the index is expected to retest its crucial psychological level of 6500 in
trade today.
At 07:30 a.m., Nifty India stock futures in Singapore were trading 0.50 point higher at 6553.50, indicating a flat opening on the domestic market.
Markets will also react to IIP data and CPI data which came out post market hours on Wednesday. The industrial output entered positive territory and recorded a 0.1 per cent growth in January, while CPI
inflation eased to 8.1 per cent y-o-y in February from 8.8 per cent in January, better-than-expected.
After contracting for three months in a row, IIP for the time period from April 2013 to January 2014, now stands at 0% versus 1% Year-on-year, said a PTI report.
The markets ended on a flattish note as profit booking was witnessed in the banking sector, except for ICICI Bank which managed to end in green on Wednesday.
Sensex ended up 29.8 points at 21,856.22, while Nifty ended up 5 points at 6516.90.
"The upside momentum in Nifty would continue to remain intact as long as 6400 is held as a support in the coming sessions," GEPL Capital said in a note.
"If any correction is seen then it has immediate support at 6485 and below that 6400 is the next support level to watch out for," added the note.
The brokerage firm is of the view that in the immediate term it may retest 6550 and beyond that scale higher till 6600 if 6480 is held as a support else there may be further decline till the next support level of 6400 levels.
Overnight, US stocks ended flat as investors grappled with the evolving situation in Ukraine but shrugged off concern over weakness in China's economy.
"The EU agreed a framework for its first sanctions on Russia since the Cold War, a stronger response to the Ukraine crisis than many had expected and a mark of solidarity with Washington in the effort to make Moscow pay for seizing Crimea," Reuters reported.
The Dow Jones industrial average fell 11.17 points or 0.07 per cent, to 16,340.08, the S&P 500 gained 0.57 points or 0.03 per cent, to 1,868.2 and the Nasdaq Composite added 16.144 points or 0.37 per cent, to 4,323.332.
Asian markets were trading mixed ahead of a batch of key Chinese economic data that may offer clues about the extent of any slowdown "Investors will keep a close watch on Chinese data due at 0530 GMT,
including urban investment, industrial output and retail sales, which will follow a disappointing series of February data in recent days," added the Reuters report.
Japan's Nikkei 225 index was trading 0.08 per cent higher at 14,841.50 and Hong Kong's Hang Seng index was trading 0.13 per cent higher at 21,929.12.
South Korea's Kospi index was trading 0.4 per cent higher at 1,941. China's Shanghai index was trading 1.05 per cent higher at 2,020.
Nifty may touch 6700-6800 levels before polls: Dilip Bhat, Prabhudas Lilladher
(Source: Economic Times)In an interview with ET Now, Dilip Bhat, Joint Managing Director, Prabhudas Lilladher, shares his views on the market and some sectors.
Excerpts:
ET Now: Are we done with the pre-election rally in the market yet, or is there more steam left?
Dilip Bhat: The pre-election rally has really come about a bit too early and the market has really moved up very swiftly and very smartly. It will remain possibly at these elevated levels and you can give and take 100 points here and there.
But in the run-up to the elections, I do not think that there is going to be any major disturbance to that, unless the course is completely derailed by international events, which I do not think that will dominate, as far as the Indian markets are concerned.
So the pre-election rally possibly is going to continue for some more time, but I still believe that most of the things probably are done, though we may still go up to around 6700-6800 levels before the elections.
ET Now: At this juncture, how comfortable would you be, holding on to banking stocks?
Dilip Bhat: In the current rally of the Nifty, which has gone up by almost 200-250 points from the 6250 level, almost 18% to 20% has been contributed by ICICI Bank and 10% further by HDFC Bank. So where the stocks have really run up, as in the case of ICICI Bank and Axis Bank especially, I would prefer to book at least partial profit and stay out of those stocks and at least keep some amount in cash.
So certainly in the banking space, nothing major has changed and it has been a euphoric reaction. Investors should take an advantage of this and try to encash a part of the profits.
ET Now: We have quite a divided view when we talk about the export-oriented themes, particularly pharma and IT, but the general consensus is that earnings growth will be strong over the long term and that one should stay on. What would your view be?
Dilip Bhat: Both IT and pharma, on a long-term basis, certainly deserve a very strong presence in the portfolio, because both the sectors are showing reasonably good growth and especially in IT, the free cash that the companies are generating is significantly good.
Moreover, the ROEs are also pretty good in the IT sector and even in pharma, export is expected to be good and demand is expected to be good. Most of these companies are throwing up a significant amount of
free cash and have reasonably good ROEs. So both the sectors, without any doubt, should be in your portfolio from the long-term perspective.
ET Now: You have come out with a lot of lesser talked about names, which have a strong growth potential. Is there anything that you have looked at, that you think could do very well over the next one year?
Dilip Bhat: Even when the FIIs have put in money, it has been the same select 20-25 stocks from where the money has come in. It is a different story that the markets have started reacting in a slightly different way and there has been broader participation.
However, for these stocks to really move up, there has to be a good follow up support and buying, which is what probably a lot of people are feeling might happen. I am not too sure about that, but coming back to lesser known names, it is better to be a little more cautious at the current levels.
So I would still prefer to play safe with some of the names and will look at maybe something like Apollo Tyres, which is not an unknown name or something like Motherson Sumi, which is still available at a very
reasonable valuation. I would still prefer to go with something like Cummins or Alstom, but otherwise, I would still prefer to be a little more defensive in my approach.
ET Now: What would be your stance on the metals basket, particularly some of the large caps there?
Dilip Bhat: Given what we are hearing about the emerging markets and China, I do not think the metal stocks will have any great time in the near future on a sustainable basis.
Of course, you will have some news as, for instance, iron ore prices may come down, or maybe you get some price hike, but on a sustainable basis, the metal sector will continue to be muted, both in terms of
performance, or in terms of the real price movement, because none of these economies are showing signs of doing really well. So I would prefer to be cautious on the metals.
Maintain targets of around 6680 to about 6700: Mitesh Thacker
(Source: Economic Times)In a chat with ET Now, Mitesh Thacker, Technical Analyst, miteshthacker.com, shares his views on market outlook. Excerpts:
ET Now: How are you approaching trades on the key indices are you light out there and are you heavier on the stock side or are you generally light and waiting for a pullback?
Mitesh Thacker: We have been heavy on the stock side, clearly after the breakout the Nifty did see momentum and typically since last two days has been more of a very range bound kind of consolidation, 6490 has been an area which see index has managed to hold on to in the last two sessions or in case that level breaks may be we will get a dip to about 40-50 points which can be more of profit booking led kind of decline.
We would still be bias on declines for the index but on stocks individually as and when they are giving breakouts we are clearly taking long positions because stocks tend to show more momentum than the index but otherwise you remains positive and I maintain targets of around 6680 to about 6700.
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