Monday, January 9, 2012

Indian stock market and companies daily report (January 09, 2011, Monday)


Indian markets are expected to open in red taking cues from gap down opening in most of the Asian markets and negative closing in most of the global markets on Friday. The Indian markets ended flat to modestly high on Friday, reversing early declines, as European stocks rose and expectations of an interest rate cut this month heightened.
Globally, most of the US and European markets closed lower on Friday traders shrugged off another upbeat U.S. employment report amid continued concerns about the ongoing European debt crisis, stocks turned in a lackluster performance during trading. Selling pressure in global markets was also generated by news that Fitch Ratings downgraded Hungary to junk status. Adding to the concerns, ECB said overnight deposits by European commercial banks reached a new record high of EUR455.3bn. The markets this week be closely watching out from IIP numbers and Infosys results which will be released on January 12, 2012. Infosys result is expected to set tone for the upcoming result season.

Markets Today
The trend deciding level for the day is 15,861 / 4,750 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 15,888 – 15,926 / 4,757– 4,766 levels. However, if NIFTY trades below 15,861 / 4,750 levels for the first half-an-hour of trade then it may correct up to 15,823 – 15,796 / 4,740 – 4,733 levels.

NTPC gets back three de-allocated coal blocks
The Coal Ministry has given back three coal blocks to NTPC Ltd. The ministry had taken back these blocks last year as the company had failed to develop them within the stipulated period. All the blocks have been given back on the condition that they would be developed within two years, failing which they would be again taken back by the Coal Ministry. At the CMP, the stock is trading at P/BV of 1.6x its FY2013 estimates. We maintain our Buy recommendation on the stock with a target price of `200.

Idea challenges fresh liquidated damages imposed for two circles
Idea Cellular has approached telecom tribunal TDSAT against the government’s move to impose additional liquidated damages on it for not meeting roll-out obligations in two circles – Haryana and Maharashtra. The contention of the telco is that when the main penalty for these two circles has already been set aside by the tribunal, there is no point in imposing the additional penalty. The main penalty had been set aside on December 5. The counsel appearing for Idea also said that DoT has imposed penalty on it without serving a show cause notice, thereby denying it an opportunity to present its case in a proper manner. TDSAT has directed the DoT to file reply on Idea's plea by Wednesday. It has also asked DoT not to take any action against the operator. We maintain our Neutral recommendation on the stock.

Economic and Political News
- 9% growth in 12th Plan a challenge, says Montek Singh
- Proposal for Japanese FDI in DMIC project gets MEA nod
- Fiscal deficit may be more than projected, says Pranab Mukherjee

Corporate News
- Ashok Leyland Stile and Partner unveiled
- After Kingfisher, AI Express, DGCA raps other carriers
- JSPL commissions new unit, capacity rises to 917 MW
- GMR Infra issues debentures worth `250cr to GMR Airports
- Mundra UMPP's first 800MW unit starts production

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