Stock Market Updates For March 5th, 2014…

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Corporate News/Results Corner

Reliance Jio and Bharti Infratel sign tower sharing pact. Positive for Bharti Infratel from medium to long term perspective.

Reliance Jio (telecom arm of Reliance Industries) has signed a Master Services Agreement under which it will utilize the telecom tower infrastructure of Bharti Infratel to launch services. The pricing would be at arm’s length, based on prevailing market rates. As per sources, Reliance Jio is likely to launch its 4G services by September this year starting from Delhi and Mumbai. Bharti Infratel has over 82,000 telecom towers, which includes ~35,000 of its own towers and the balance from its 42% equity interest in Indus Towers. The deal has been partially factored in and is positive for Bharti Infratel from medium to long term perspective.

Economic and Other News

Interest rates hiked on some small savings schemes

The Finance Ministry has raised interest rates on some of the small savings scheme. The new rates will be applicable from April 1. Interest rates on 1-, 2-, and 3-year term deposits will now be 8.4% as against 8.2, 8.2 and 8.3% respectively. Similarly, 5-year term deposits will now have 8.5% rate of interest against 8.4% currently. Interest rate on 5 years recurring has also been revised. Investment in 10-year NSC on or after April 1 will earn you 8.8% rate as against 8.7%. However, there is no change in interest rates on five years National Saving Certificates (NSC) and Public Provident Fund.

World News

Japan’s Wages Rise for First Time in 22 Months in Abe Boost

Japan’s salaries increased for the first time in almost two years in January as companies boosted pay for part-timers, aiding Prime Minister Shinzo Abe’s effort to end 15 years of deflation. Base pay excluding bonuses and overtime rose 0.1% from a year earlier, the first gain in 22 months, the labor ministry said in Tokyo today. Overall pay fell 0.2%, the first drop in three months.

China retains 7.5% growth target for 2014

China set a 7.5% target for economic growth in 2014, a pace that may make it more difficult to achieve the leadership’s goals of curbing credit risks and stemming the pollution choking the nation’s biggest cities.

Market Trend

NIFTY – CMP 6298
Synopsis

Nifty opened with a positive bias & witnessed buying on dipsleading the Index to finally close 1.1% positive.
Going forward, Till Nifty holds 6295, it can move upto 6360-6370 zone where it will face high resistance.
If Nifty breaks 6295 support zone, then 6230-6220 would beretested.
Daily Momentum is in positive territory while Weeklymomentum is in negative indicating choppy price action athigher levels.

Bank Nifty – CMP – 10929

Synopsis

Bank Nifty opened with a positive bias & witnessed buying ondips leading the Index to finally close 2.7% positive.
Going forward, till it holds 10900, it can move upto 11,200zone where it will face high resistance.
If breaks & sustains below 10900, would fall upto 10600-10550.
Daily Momentum is in positive territory while Weeklymomentum is in negative indicating choppy price action athigher levels.

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