Stock Market Updates For March 3rd, 2014..

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Corporate News/Results Corner

Auto sales numbers continues to remain sluggish; Bajaj Auto and Hero Motocorp to report numbers today – Tata Motors seerevival in passenger car segment and TVS posted decent 7% growth – Positive in short term for Tata Motors and TVS

Domestic car sales for Maruti Suzuki India Ltd rose marginally by 1.8% from a year ago to 99,758 units in February. The sales werepropped up by the new Celerio compact car. Since its launch on 6 February, Maruti has sold more than 20,000 units of the model—India’sfirst automated manual transmission car. Helped by the Celerio, sales in the company’s compact car segment increased 19% over a yearago. Sales in other segments, however, declined.
Hyundai Motor India Ltd, sold 34,005 units in February, nearly unchanged from 34,002 units a year ago. Exports at the local arm of theKorean unit declined 39.5% from a year ago to 12,500 units.

Tata Motors Ltd, however, snapped its streak of declining passenger car sales in the past several months. The company shipped 11,325units of passenger vehicles to its dealers in February, up 6% from a year ago. The volumes were driven by a 16% increase in passenger Car sales, which reported growth after 18 months.

Sales of three-wheelers, four-wheelers and commercial vehicles contracted 11.4% to 39,338 units at Mahindra, and sales of passenger Vehicle sales, which include SUVs, dropped 10% to 19,308 units.

Sales at Toyota Kirloskar declined 20% to 11,284 units.

On back of the newly launched fourth-generation City model, Honda Cars India Ltd saw its sales increase more than twofold to 14,543units from 6,510 units a year ago. The local unit of the Japanese car maker overtook Tata Motors Ltd as the fourth largest car maker in India in 2013.

The EcoSport continued to push sales momentum at Ford India Pvt. Ltd. The company sold 6,799 units in February, up 51% from a yearago.

HMSI’s domestic sales grew by 44% at 3,28,521 units for February, 2014. TVS Motor Company’s total sales grew by 7% in February to1,77,662 units.

We believe the auto sales numbers are positive in short term for Tata Motors and TVS Motors.

Economic and Other News

Safeguard duty on import of chemical used by pharmaindustry

India has imposed a safeguard duty on import of a chemicalused by pharmaceutical and dye industries for 15 months toprotect domestic producers. The Finance Ministry imposed thesafeguard duty on Sodium Nitrite (the chemical) followingrecommendation for the same by the Directorate General ofSafeguards (DGS). Safeguard duty is a WTO-compatibletemporary measure that is brought in for a certain time-frame toavert any damage to a country’s domestic industry from cheapimports.

World News

China Manufacturing PMI eases to 48.5 in February – HSBC

An index measuring manufacturing activity in China came in with ascore of 48.5 in February, the latest survey from HSBC and MarketEconomics revealed. That was in line with forecasts and downfrom 49.5 in January.Among the individual components of the survey, both output andnew orders contracted for the first time since July. Payroll numberswere slashed at the fastest rate since March 2009, and there wasa solid reduction of output charges.

South Korea Manufacturing Sector contracts in February – Market

An index measuring activity in South Korea’s manufacturing sectorcame in with a score of 49.8 in February, the latest survey from Market Economics revealed. That’s down from 50.9 in January, andit marks the first contraction since September. Among theindividual components of the survey, new orders were largelyunchanged, while the employment sector saw mild expansion.Backlogs were down.

Market Trend

NIFTY – CMP 6276
Synopsis
Nifty opened with a positive bias & buying on dips waswitnessed leading the InÞx to finally close 0.6% positive.
Going forward, Till Nifty holds 6225, it can move upto 6303zone where it will face high resistance.
If Nifty breaks 6225 support zone, then 6160-6170 would beretested.
Daily Momentum is in positive territory while Weeklymomentum is in negative indicating choppy price action athigher levels.

Bank Nifty – CMP – 10764

Synopsis

Bank Nifty opened with a positive bias & buying on dips waswitnessed leading the Index to finally close 0.6% positive.
Going forward, till it holds 10600, it can move upto 10950 zonewhere it will face high resistance.
If breaks & sustains below 10600, would fall upto 10400-10350.
Daily Momentum is in positive territory while Weeklymomentum is in negative indicating choppy price action athigher levels.

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