The Indian markets are expected to open in red tracking cues from Asian markets which are trading in negative zone reacting to reports which showed that inflation in China grew more than expected raising fears of slowdown in global growth.
The U.S markets showed a lack of direction throughout the trading day on Thursday as investors remained on the sidelines ahead of the long weekend and release of the March jobs report on Friday. As per the U.S. Labor Department data, employment saw continued growth in the month of March, although the pace of job growth came in well below economist estimates. The non-farm payroll employment increased by 120,000 jobs in March against economist’s expectation of 201,000 jobs. However, despite the weaker than expected job growth, the unemployment rate edged down to 8.2% in March from 8.3% in February.
While reaction to the US monthly jobs report is likely to drive trading in the global markets today (U.S. stock markets closed for Good Friday), reports on the U.S. trade deficit, consumer sentiment, and producer and consumer price inflation are likely to be in focus later in the week.
Markets Today
The trend deciding level for the day is 17,492/5,322 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17,547 – 17,609/5,339 – 5,355 levels. However, if NIFTY trades below 17,492/5,322 levels for the first half-an-hour of trade then it may correct up to 17,431 – 17,375/5,306 – 5,289 levels.
Marico to sell 4.8% stake to raise Rs.500cr
Marico plans to sell 4.8% stake to Singapore's sovereign wealth fund GIC and Baring Private Equity India to raise a sum of Rs.500cr. Indivest Pte. Ltd., an investment arm of GIC, will invest Rs.375cr to subscribe over 2.2cr shares, while Baring India Private Equity Fund will invest Rs.125cr to subscribe over 0.73cr shares on a preferential basis, valuing each share of the company at Rs.170. The preferential issue is primarily for funding the acquisition of Paras Pharmaceuticals as well as other capital expenditure and is subject to shareholders’ approval in the EGM scheduled on May 2, 2012. Around two months earlier, the company had bought personal care brands such as Setwet, Livon and Zatak from Reckitt Benckiser, which in turn had acquired these brands from Paras Pharmaceuticals last year. At the CMP, the stock trades at price to earnings multiple of 20.8x FY2014E. We maintain our Neutral view on the stock.
HUL sells Mumbai property to Ajay Piramal Group for Rs.452cr
HUL has sold its one acre sea-facing property at Worli in Mumbai to Ajay Piramal group for Rs.452cr. The property was put up for sale after the company had shifted its training centre from there to its new premises at Andheri. HUL has been trying to sell this property, so as to unlock value from idle assets including real-estate. At CMP, the stock trades at price to earnings multiple of 24.8x FY2014E. We maintain our Neutral view on the stock.
Economic and Political News
- Power Ministry eyes 920,000mn units of electricity in FY2013
- Cotton Association demands removal of ban on cotton exports
- PMO to hasten languishing port projects
- Strengthen recovery mechanism for NBFCs: Finance Ministry
- Government initiates exercise to revise WPI series
Corporate News
- Coal India may import coal to ensure adequate fuel to power firms
- Coal Ministry's nod pending for ONGC's pilot UCG project
- Hindustan Copper plans to raise Rs.1,250cr via ECB
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