Stock Market Updates For February 25, 2014

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Corporate News/Results Corner

As per media reports, Jaiprakash Associates is in talks to sell stakes in 2 cement
plants. Short term positive for Jaiprakash Associates.

As per media reports, Jaiprakash Associates is in talks to sell its 74% stake in two cement
joint ventures with SAIL and Associated Cement Companies(ACC) for ~Rs 29bn. JPA is
looking to sell its stake in subsidiaries Bhilai Cement and Bokaro Cement with a total
capacity of ~4 million tonnes. The stake sale is part of the group’s plan to trim its debt by
25% from the current levels before the end of the current fiscal year. We believe this will
help the company in reducing its debt as well as interest cost and is positive in short term
for the company.

Economic and Other News

Raghuram Rajan sees no disruption to economic policies due to polls

RBI governor Raghuram Rajan has said he believes India is likely to continue with its
major economic policies irrespective of the government at the Centre after the upcoming
general elections. “My sense is if there is a stable coalition post-election, no matter which
persuasion it is, the broad policies will continue,” Rajan said. “There may be difference in
details but they are all for passing the Goods and Services Tax, all for a number of actions
that the current government is taking.”

World News

Euro Area January Inflation Revised up to 0.8%

Consumer prices in the Eurozone increased at a faster pace in January than estimated
earlier, but the rate of inflation remained unchanged from the December level, revised
figures released by Eurostat showed. The harmonized index of consumer prices (HICP)
rose 0.8% YoY in January, which was unchanged from the December growth rate. The
preliminary estimates were for a 0.7% growth in January. At the same time, core inflation,
which excludes energy, food, alcohol and tobacco, rose to 0.8% from 0.7% in December, in
line with the initial estimates. Inflation has stayed below the European Central Bank’s target
of ‘below, but close to 2% for the twelfth consecutive month.

China Leading Index Rises 1.2% – Conference Board

A leading index measuring economic activity in China jumped 1.2% in January, the latest
report from the Conference Board, standing at 283.4. That follows the 0.8% increase in
December and the 1.3% gain in November. The coincident index, which monitors current
economic activity, was up 0.2% to a score of 257.0. That follows the 1.5% jump in
December and the 1.0% increase in November.

Market Trend

NIFTY – CMP 6186

Synopsis

¸ Nifty opened with a flat to negative bias & buying on dips was witnessed leading the
Index to finally close 0.5% positive.

¸ Going forward, Post a positive opening around 6210, it can move upto 6240 zone
where it will face high resistance.

¸ If Nifty is not able to cross 6240, support zone of 6130-6140 would be retested.
¸ Daily Momentum is in positive territory while Weekly momentum is in negative
indicating choppy price action at higher levels.

Bank Nifty – CMP – 10683

Synopsis

¸ Bank Nifty opened with a flat to negative bias & buying on dips was witnessed
leading the Index to finally close 1.3% positive & tough 10700 zone as advised
yesterday.

¸ Going forward, Post a positive opening around 10750, it can move upto 10820 zone
where it will face high resistance. .

¸ If Bank Nifty is not able to cross 10820, support zone of 10400-10450 would be
retested.

¸ Daily Momentum is in positive territory while Weekly momentum is in negative
indicating choppy price action at higher levels.

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