The Indian markets are expected to open with positive bias tracking mixed cues from Asian markets. Asian markets edged lower in limited holiday trade on Monday after weaker-than-expected US jobs data hit market sentiment while rising inflation in China also weighed on investors.
The US markets after moving sharply lower at the open, stocks saw continued weakness throughout the trading day on Monday. A negative reaction to Friday's monthly jobs report weighed on the markets, generating broad based selling pressure. The sell-off seen at the start of trading came as traders finally had an opportunity to react to the Labor Department's monthly jobs report, which was released while the markets were closed on Friday.
The Indian benchmark indices started the week with their biggest single day fall in a fortnight as investors chose to tread cautiously ahead of the results season and the Central Bank’s policy review scheduled for next week. The weak job data from US, announced last Friday also dampened investor sentiment.
Markets Today
The trend deciding level for the day is 17,276/5,250 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17,353 – 17,485/5,272 – 5,310 levels. However, if NIFTY trades below 17,276/5,250 levels for the first half-an-hour of trade then it may correct up to 17,145 – 17,068/5,212 – 5,190 levels.
Tata Steel reports its 4QFY2012 production and sales numbers
Tata Steel reported its 4QFY2012 production and sales volume numbers. The company's 4QFY2012 crude steel production grew by 2.6% yoy to 1.8mn tonnes and its sales volume grew by 3.3% yoy to 1.7mn tonnes. For FY2012, the company's crude steel production and sales volume increased by 3.9% and 3.4% yoy to 7.1mn tonnes and 6.6mn tonnes, respectively. Thesenumbers are broadly in-line with our expectations. We recommend Accumulate on the stock with a target price of Rs.503.
BGR receives LOA for NTPC 2X660MW supercritical boilers
BGR Energy (BGR) announced that it has received letter of award (LOA) from NTPC for the supply of 2X660MW supercritical boilers to be set up at Solapur, Maharashtra. BGR had emerged as the L-1 bidder in NTPC’s bulk tender for the supply of 11X660MW supercritical boilers on February 29, 2012, for which it is to be awarded six units of supercritical boilers. LOAs for other sites are expected to be received over the next few weeks.
The order is valued at Rs.1,855cr, implying a rate of Rs.1.4cr/MW, which seems to be the result of aggressive bidding and is expected to put pressure on margins going forward, in our view. We maintain our Sell recommendation on the stock with a target price of Rs.274.
HCC JV bags Rs.162cr project from North Frontier Railway
HCC, in a joint venture (JV) with Coastal Projects, has bagged a project worth Rs.162cr from North Frontier Railway to develop a rail tunnel between Kambiron Road and Thingou station in Imphal, Manipur. HCC is the lead partner with 60% share in the JV (HCC’s share is Rs.97cr). The project will be completed in 28 months. We maintain our Neutral view on the stock.
Economic and Political News
- Bank deposit growth rate falls despite higher interest rates
- Imports of sensitive items up 43% during April-January
- India, Qatar sign initial pact for cooperation in the energy sector
- India's 2012-13 cotton output may fall to 32.3mn bales: Report
Corporate News
- L&T commissions 40MW solar plant of Reliance Power in Rajasthan
- Panel recommends green nod to NTPC's coal project in Orissa
- Glenmark gets U.S. nod for generic contraceptives
- Reliance, BP set to kick off imported LNG marketing
Stock market
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