Stock Market Updates For February 26, 2014…


Corporate News/Results Corner

Airport regulator asks GMR to stop collecting UDF and also reduce the PSF from 1st April, 2014. –ve in the Short to medium termfor GMR Infrastrcture
The airports regulator Airports Economic Regulatory Authority (AERA) has ordered GMR’s Hyderabad airport to stop collecting userdevelopment fee (UDF) from next fiscal from both domestic and international passengers. Further the airports regulator has asked theGMR Hyderabad airport to bring down the passenger service fee to Rs 130 per passenger from the existing Rs 200 a passenger from April1. As per the order on its website, Passenger Service Fee (PSF) will now comprise only of the security component of Rs 130/- perembarking passenger with effect from April 1, 2014 and there will no facilitation component in the PSF . We believe this ruling to benegative for GMR Infrastructure in short to medium term.

Economic and Other News

PE investments in India up 74% in Q4’13; highest in 6 years:PwC
Private equity firms invested $2.12bn on 76 deals in India duringthe October-December quarter, up 74% YoY, says a PwCreport. The investments exceeded the $2bn mark for the firsttime in 6 years.The IT and ITeS sector emerged as the leader in terms of valueand volume during the period, said PwC MoneyTree India, aquarterly study, based on data provided by Venture Intelligence.

World News

U.S. Consumer Confidence deteriorates amid concerns aboutoutlook
With consumers expressing concerns about the short-term outlookfor business conditions, jobs, and earnings, the ConferenceBoard’s report showing that U.S. consumer confidence hasdeteriorated by more than expected in February. Consumerconfidence index fell to 78.1 in February from a downwardlyrevised 79.4 in January. Economists had been expecting the indexto edge down to 80.1 from the 80.7 originally reported for theprevious month.

China’s $12 trillion corporate debt pushes up refunding costs,drives mergers
China’s corporate debt has hit record levels and is likely toaccelerate a wave of domestic restructuring and trigger moredefaults, as credit repayment problems rise. Chinese non-financialcompanies held total outstanding bank borrowing and bond debt ofabout $12tn (120% of GDP) at the end of last year according toS&P’s estimates. Growth in Chinese company debt has beenunprecedented. A Thomson Reuters analysis of 945 listed mediumand large non-financial firms showed total debt soared by morethan 260%, from 1.82tn yuan ($298.4bn) to 4.74tn yuan($777.3bn), between December 2008 and September 2013.

Market Trend

NIFTY – CMP 6200
Nifty opened with a positive bias & buying on dips waswitnessed leading the Index to finally close 0.3% positive.
Going forward, Till Nifty holds 6170, it can move upto 6230zone where it will face high resistance.
If Nifty breaks 6170 support zone, then 6130-6140 would beretested.
Daily Momentum is in positive territory while Weeklymomentum is in negative indicating choppy price action athigher levels.

Bank Nifty – CMP – 10666

Bank Nifty opened with a flat to negative bias & traded range bound between 10620-10750 for the entire day, finallyclosing 0.2% negative for the day.
Going forward, Post a positive opening around 10580, it canmove upto 10810 zone where it will face high resistance.
If breaks & sustains below 10580, would fall upto 10300-10250.
Daily Momentum is in positive territory while Weeklymomentum is in negative indicating choppy price action athigher levels.

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