Stock Market Updates For March 25th, 2014…

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Corporate News/Results Corner

Gas price hike deferred; uncertainty over timing and quantum increases. Negative for RIL & ONGC

The Election Commission of India has asked the government to defer a hike in gas prices due to start April 1, ahead of next month’s election. The matter is in final stages of hearing in the apex court and arguments will be heard on Tuesday. But a decision is not expected to be arrived very soon. The elections are likely to take place in the months of April and May and hence the gas price hike is unlikely to take place in the near term. The SC decision to defer the gas price hike will further create uncertainty over the timing and quantum of the gas price hike.

Economic and Other News

RBI’s liquidity steps help short-term rates to fall

Despite year-end pressure of banks to meet business targets, short-term corporate bulk deposit rates have softened significantly after the RBI opened several channels to infuse liquidity in the banking system. On Friday, RBI infused Rs 400bn through a 14-day term repo variable rate auction and will infuse Rs 200bn through a five-day repo auction on March 28. Besides, it infused Rs 50bn by repurchasing government securities. The one-year bulk deposit rates, more than 10% in end-February, have softened by 80-90bps, dealers said.

Farmers may be allowed to sell directly to consumers

The finance ministry is drawing up a plan to facilitate direct selling platforms for fruit and vegetable farmers., a move aimed at cutting out middlemen and containing food inflation, which faces the risk of a re-emergence if monsoon falters, a senior finance ministry official said.. The ministry is working out changes in the APMC Act, which governs marketing of agriculture produce, to allow farmers to sell directly to consumers that will save high intermediation costs.

World News

Markit’s U.S. Manufacturing Index falls more than expected in March

Manufacturing business conditions in the U.S. continued to improve in the month of March, as per Markit Economics, although the index of activity in the manufacturing sector fell by more than expected. Markit said the flash estimate of its manufacturing purchasing managers’ index for March came in at 55.5. While a reading above 50 indicates growth, the index was down from 57.1 in February and below economist estimates of 56.5.
Eurozone Private Sector maintains growth momentum

The euro area private economy maintained its growth momentum in March, with activity expanding for the ninth consecutive month, data from Markit Economics showed. The flash composite output index came in at 53.2 in March. However, the score was slightly lower than February’s 32-month high of 53.3 and the expected level of 53.1. The euro area economy continued to enjoy its strongest spell of growth since the first half of 2011 in March, Markit said. Suggesting that activity growth could pick up again in April, new order growth accelerated marginally to the fastest since May 2011.

Market Trend

CNX NIFTY – CMP – 6583

Synopsis

• Nifty opened with a positive bias, almost touched 6600 & closed1.4% positive for the day.
• Post opening, Going forward, Till Nifty holds 6550, it can moveupto 6650-6655 zone where it will face high resistance.
• If Nifty breaks 6550 support zone, then 6510-6480 would beretested.
• Daily as well as Weekly Momentum is in positive indicating buyingsupport on all dips.

Bank Nifty – CMP – 12408

Synopsis

• Bank opened with a positive bias, scaled 11450 zone &finally closed 2.8% positive for the day..
• Post Opening, Going forward, till it holds 12,250, it can moveupto 12,650 zone where it will face high resistance.
• If breaks & sustains below 12,250, would fall upto 11900-11950.
• Daily as well as Weekly Momentum is in positive indicatingbuying support on all dips.

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