Mar 12, 2014
Indices 11-Mar 10-Mar % Chg. Major Indices 11-Mar 10-Mar % Chg. FII's & DII's in equity Rs.Crs
S&P BSE SENSEX 21,826 21,935 -0.49% CAC 40 Index 4,350 4,371 -0.48% 11-Mar Buy Sell Net
S&P CNX NIFTY 6,512 6,537 -0.39% DAX Index 9,308 9,266 0.46% FII' Investments 4407 2935 1471
S&P BSE MID CAP 6,703 6,723 -0.29% Dow Jones Industrial Avera 16,351 16,419 -0.41% DII's Investments 1050 2382 -1332
S&P BSE SMALL CAP 6,665 6,663 0.02% FTSE 100 Index 6,686 6,689 -0.06% FII's contribution to the total turnover 42%
Nasdaq Composite Index 4,307 4,334 -0.63% DII's contribution to the total turnover 19%
BSE Sectoral Indices
S&P BSE REALTY 1,424 1,393 2.24% Major Asian Indices 11-Mar 10-Mar % Chg. FII's in Derivatives Rs.Crs
S&P BSE POWER 1,634 1,623 0.69% Hang Seng 22,270 22,265 0.02% 11-Mar Index Fut Index Opt Stock Fut Stock Opt
S&P BSE IT 9,303 9,290 0.14% Nikkei 225 15,224 15,120 0.69% Net 145 528 -588 -133
S&P BSE TECk 5,105 5,106 -0.01% Seoul Composite 1,964 1,954 0.48% OI 14651 50750 33905 2620
S&P BSE FMCG 6,568 6,586 -0.27% SSE Composite Index (Sha 2,001 1,999 0.11% Chg.OI 4.6% 1.5% 1.1% 17.2%
S&P BSE PSU 5,918 5,940 -0.37% Taiwan Weighted 8,702 8,665 0.43% FIIs' contribution to the total Derivatives turnover 32%
S&P BSE BANKEX 13,756 13,827 -0.51%
S&P BSE CONSUMER DU 6,095 6,128 -0.55% Commodities (MCX) 11-Mar 10-Mar % Chg. Futures (NSE) 11-Mar 10-Mar % Chg.
S&P BSE OIL & GAS 9,125 9,178 -0.58% Aluminium (31MAR2014) 106 107 -1.22% USDINR 26-MAR-2014 61.18 61.08 0.16%
S&P BSE CAPITAL GOOD 11,458 11,532 -0.64% Copper (30APR2014) 403 414 -2.72% EURINR26-MAR-2014 84.65 84.72 -0.09%
S&P BSE AUTO 12,704 12,786 -0.64% Crude (19MAR2014) 6,130 6,178 -0.78% JPYINR 26-MAR-2014(100 59.29 59.15 0.24%
S&P BSE HEALTHCARE 10,096 10,197 -0.99% Gold (5APR2014) 30,228 30,123 0.35% FTSE100 (21-MAR-2014) 6680 6733 -0.79%
S&P BSE METAL 8,934 9,252 -3.44% Silver (5MAY2014) 45,860 45,973 -0.25% S&P500 (21-MAR-2014) 1874 1879 -0.25%
Company LTP Chg % Chg Company LTP Chg % Chg
Domestic Market View
DLF 178 7 3.9 TATASTEEL 343 -21 -5.8 Markets to continue the negative trend with a
TATAPOWER 82 3 3.7 HINDALCO 117 -5 -4.0
GRASIM 2824 74 2.7 SSLT 179 -5 -2.9 The Indian markets after five days of rally showed
IDFC 115 3 2.6 GAIL 370 -11 -2.9 some profit booking and ended lower in last
session. Today, the start of the crucial data heavy
INDUSINDBK 478 9.0 1.9 MARUTI 1752 -49 -2.7
day is likely to be soft and the markets will
continue to remain under pressure tailing weak
Company LTP Chg % Chg Company LTP Chg % Chg
global cues. The traders will be concerned with
Reliance Infra 425 20 4.9 Tata Steel 344 -20 -5.5 India’s merchandise exports falling for the first
Tata Power 82 3 4.1 Crompton Greav 146 -7 -4.6 time in eight months and set to miss its export
DLF 178 7 3.9 SAIL 57 -3 -4.2
target for the fiscal with exports moving into the
negative zone in February 2014. Traders will also
IDFC 116 3 3.1 Hindalco Inds 117 -4.5 -3.7
be eyeing the December IIP and Consumer Price
Mahindra & Mah Fin 281 8 2.7 SSLT 178 -6.7 -3.6 Index (CPI) data, which will be released later in
the day. While, the IIP is expected to remain
Company LTP Chg % Chg Company LTP Chg % Chg subdued, CPI inflation may cool off month-on-
Birla Corp 255 19 8.1 Wockhardt 441 -22 -4.7
month basis. There will be some buzz in the
power companies using renewable energy, as the
Kirloskar Oil Engines 179 11 6.4 Crompton Greav 146 -7 -4.6
Chairman of Planning Commission Montek Singh
Engineers India 177 11 6.4 Alembic Pharma 251 -12 -4.4
Ahluwalia has stressed on lifting of the
Gujarat Gas 245 14 6.2 Aurobindo Phar 488 -20 -4.0 restrictions on renewable energy. Aviation stocks
Gujarat Pipavav 83 5 5.9 Blue Dart 3220 -129 -3.9 too will be in action, as the low-cost carriers
SpiceJet and IndiGo have kicked off yet another
Company LTP Chg % Chg Company LTP Chg % Chg
round of price war in the sector.
Dalmia Bharat 246 41 20.0 STAR FERRO 21 -2 -9.7 The Asian markets have made mostly a negative
GNRL 113 16 17.1 Steel Exchange 55 -6 -9.5
start led by the Japanese index which is down by
over two percent amid concern that China’s
Aarti Inds 124 16 14.7 Sunflag Iron 19 -1 -5.8
economy may be faltering.
OCL India 187 20 11.9 Syncom Form-$ 6 0 -5.2
Rollatainers 163 15 9.9 PTC India Fin 13 -1 -5.1
Domestic Market Overview
Benchmarks snap five days gaining streak ahead of IIP and CPI data
Snapping five days gaining streak, Indian equity benchmarks ended Tuesday’s session in the red with cut of
around half a percentage point, as investors opted to book some profit ahead of IIP data for the month of
January to be announced on Wednesday, which is likely to extend its contraction of -0.6 per cent in December to
-1.10 per cent in January. Traders also awaited consumer price inflation numbers, which is expected to ease at
8.10 per cent in February, as compared to 8.79 per cent registered in the month of January.
Indian equity benchmarks failed to extend their initial gains and entered into red terrain after the economy
received a sudden jolt, as the country’s merchandise exports declined once again after a span of seven months.
Exports came down by 3.67% at $25.68 billion in February compared to $26.66 billion in the same month last
year significantly weakening chances of meeting the export target of $325 billion in the present fiscal. Though,
trade deficit for February narrowed to $8.13 billion compared to $9.92 billion recorded in January. It was $14.12
billion in the same period last year. Meanwhile, imports were at $33.81 billion compared to $36.49 billion month-
on-month. They were down 17% on a y-o-y basis. Oil imports for Feb were at $13.7 billion as against $14.13 y-
Markets continued reeling under pressure as Indian rupee, after hitting a seven-month high of 60.5925 earlier in
the session, fell marginally and was trading at 60.87/88 at the time of equity markets closing versus its previous
close of 60.85/86 after government sources said plans for inclusion in a global bond index have been put on
hold. Sentiments also remained dampened after shares of metal companies remained under pressure for
second day in a row after LMEX, a gauge of six metals traded on the London Metal Exchange (LME), hit seven-
month low on February 10, 2014, after latest data showed China's exports slumped in February 2014.
Global Market Overview
Asian markets conclude Tuesday’s trade in green
The Asian markets concluded Tuesday’s trade in green with Hong Kong closing flat, as an early rally fuelled by
bargain hunting fizzled out in the afternoon. China’s yuan and money market rates fell after exports shrank last
month, indicating the central bank may take measures to support trade and curb interest arbitrage. Japan’s
economy grew at a slower pace than initially thought in the last quarter of 2013, underscoring concerns about
the pace of recovery under Prime Minister Shinzo Abe’s policy blitz. The fresh figures will turn the focus onto
Bank of Japan policymakers as they start a two-day meeting, with speculation they could unveil further monetary
easing measures to counter a possible slowdown from a sales tax rise next month. The Bank of Japan board
has decided by a unanimous vote to leave the bank’s policy target unchanged while noting weaker exports and
slightly higher business investment and factory output. Japan’s Economy Watchers Current Index fell to a
seasonally adjusted 53.0, from 54.7 in the preceding month.
US markets fell in a light day of economic data release
The US markets ended lower on Tuesday, as investors appeared to take a pause in a day light on economic
data releases and concern of faltering Chinese economy. On the economy front, US wholesale inventories rose
0.6% in January, while wholesale sales fell by 1.9%. At January’s sales pace, the inventory-to-sales ratio rose to
1.20 months from 1.18 in December. Inventories of durable goods rose 0.4% in January, and inventories of
nondurables increased by 0.8%. Small-business sentiment slumped in February, on concerns over sales, the
economy and employment driving the downturn. The National Federation of Independent Business stated that its
small-business index dropped 2.7 points to 91.4. Six components fell, one rose, and three were steady. The
index hasn’t been over 100 since 2006.
The Dow Jones Industrial Average lost 67.43 points or 0.41 percent, to 16,351.25, the Nasdaq Composite was
down by 27.26 points or 0.63 percent, to 4,307.19 while the S&P 500 dropped 9.54 points or 0.51 percent, to
close at 1,867.63.
(OI in '000 Shares) Future Chg Spot Chg Prem / Total Open Interest
11-Mar (%) 11-Mar (%) Disc 11-Mar Chg (%)
NIFTY 6545 -0.34 6512 -0.39 33 21412 2.1
CNXIT 9857 -0.02 9829 0.19 28 38 0.4
BANKNIFTY 12109 -0.35 12043 -0.54 66 2377 -1.5
Increasing OI, Increasing Delivery Qty & Increasing Price in Stock Futures (Open Interest in '000 Shares)
Symbol Total OI Del Qty Cash Market Prev Increase Spot Fut Spot Fut Prem /
11-Mar % Chg. 11-Mar % Del. % Del. Del Qty (Rs.) (Rs.) Chg (%.) Chg (%.) Disc
ONGC 8711 13% 4,643,110 75% 63% 1,058,864 323 321 1.0% 1.3% -2.6
CESC 846 9% 147,458 34% 22% 70,682 485 488 1.2% 1.4% 3.5
HINDUNILVR 6132 6% 1,424,158 69% 68% 231,095 560 564 0.6% 0.6% 3.8
HEXAWARE 8014 6% 938,238 24% 31% 540,705 158 158 2.6% 2.2% -0.1
BANKINDIA 10970 5% 1,720,298 17% 15% 529,128 203 204 2.2% 2.3% 1.3
MRF 38 5% 5,283 31% 24% 2,518 20786 20942 0.6% 1.4% 155.8
IBREALEST 22468 5% 2,260,114 18% 15% 1,217,169 55 55 0.4% 0.5% 0.4
COLPAL 359 4% 32,363 63% 61% 810 1327 1337 0.7% 0.7% 10.0
BHARATFORG 2367 3% 890,969 50% 63% 154,054 391 394 1.1% 1.1% 2.5
APOLLOTYRE 18024 3% 2,863,402 34% 36% 1,342,542 130 131 2.2% 2.1% 0.7
Increasing OI, Increasing Delivery Qty & Decreasing Price, (Open Interest in '000 Shares)
Symbol Total OI Del Qty Cash Market Prev Increase in Spot Fut Spot Fut Prem /
11-Mar % Chg. 11-Mar % Del. % Del. Del Qty (Rs.) (Rs.) Chg (%.) Chg (%.) Disc
GSKCONS 10 15% 12,311 68% 65% 990 4096 4119 -2.7% -2.8% 23.3
SUNPHARMA 7378 15% 2,713,187 72% 62% 929,634 580 584 -2.8% -2.6% 3.8
TATASTEEL 17781 13% 4,536,050 41% 26% 3,055,480 344 345 -5.6% -5.6% 1.0
AUROPHARMA 12342 8% 812,727 21% 18% 111,358 487 490 -4.0% -3.8% 3.1
TATACHEM 1682 7% 187,545 28% 33% 47,205 286 288 -0.1% -0.1% 2.2
APOLLOHOSP 211 6% 100,579 67% 64% 1,923 855 861 -2.0% -1.9% 5.8
SSLT 24184 4% 2,810,717 52% 48% 954,168 178 179 -3.3% -3.5% 0.8
JPASSOCIAT 67328 4% 12,086,840 19% 13% 4,968,128 49 49 -2.3% -2.3% 0.3
DIVISLAB 710 4% 108,288 59% 52% 7,978 1374 1383 -0.1% -0.1% 8.7
HINDZINC 12406 4% 1,367,566 70% 70% 365,848 117 118 -2.9% -2.7% 0.5
Open Interest Break-up
(Rs. in Cr.) 11-Mar 10-Mar Change in OI % Chg
INDEX FUTURES 17,067 16,888 179 1.06
INDEX OPTIONS 92,584 91,323 1,261 1.38
TOTAL INDEX 109,651 108,211 1,440 1.33
STOCK FUTURES 36,181 35,659 522 1.47
STOCK OPTIONS 12,062 10,970 1,091 9.95
TOTAL STOCKS 48,243 46,629 1,614 3.46
GRAND TOTAL 157,894 154,840 3,054 1.97
FII's 101,925 99,796 2129 2.13
Others 55,969 55,044 925 1.68
In a bid to repay its debt, realty major Unitech has sold almost 10 acres of land in Bangalore and Mysore for about Rs 100-130 crore. These land
parcels were non-core assets for the company.
Rajshree Sugars & Chemicals has reported the operational data of Unit-I, Unit-II and Unit-III of the company’s sugar factories for the month of
February 2014. The company’s Unit-I located at Varadarajnagar in Theni district has crushed 50,158 MTs of cane in month of February compared
to 66,849 MTs cane crushed in corresponding month previous year. The sugar production stood at 4,547 MTs compared to 7,723 MTs while sales
stood at 2,610 MTs compared to 2,884 MTs in the same month previous year. The unit has produced 1,872 MTs of molasses in the month of
February 2014 while consumption & sales stood at 2,663 MTs. It has generated 28.23 lakh units of power, captive consumption stood at 20.08 lakh
units while export to grid stood at 8.15 lakh units.
In order to rationalize operations, Nucleus Software Exports has closed down its step-down subsidiary by the name of VirStra i-Technology
(Singapore) with effect from February 19, 2014. The name of the Company has been struck off and published in the final gazette notification issued
by Accounting and Corporate Regulatory Authority, Singapore. Earlier, the company had incorporated a wholly owned subsidiary (WOS) named
‘Nucleus Software Australia’ on February 03, 2014. The company is incorporated with a view to tap the business potential in Australia Region.
Industrial Development Bank of India (IDBI) has reportedly sold 17.36 lakh shares of S Kumars Nationwide through the open market route. The
shares were sold on an average price of Rs 3.03 valuing the transaction to Rs 52.61 lakh.
Ranbaxy Laboratories, India’s largest pharmaceutical company has recalled some batches of its generic version of cholesterol-lowering Lipitor
drug in the United States after a dosage mix-up was detected. The company voluntarily recalled 64,626 bottles containing atorvastatin calcium
tablets, the generic version of Pfizer Inc's cholesterol fighter Lipitor, after a pharmacist found a 20-milligram tablet in a sealed bottle marked for 10-
Mindtree, a global technology solutions company, will now be providing application support and evolutionary maintenance services to SITA, the
world’s leading specialist in air transport communications and IT solutions, for its new Strategic Finance System (SFS) platform.
NMDC has reported the details of Production/Despatches achieved of 11 months up to February, 2014 and prices of Iron Ore fixed for the month of
March, 2013. The company has achieved production and despatches of iron ore of 26.42 million tonnes and 27.43 million tonnes respectively
(Provisional) up to February 2014.
Aurionpro, a leading provider of expert-level consulting services and software solutions and a Platinum-level member of Oracle PartnerNetwork
(OPN) has achieved OPN Specialized status for Oracle Access Management Suite Plus 11g (OAM).
Reliance Infrastructure’s arm Reliance Cement’s 2-million tonnes per annum (MTPA) plant in Rae Bareli has become operational. In this regard,
the company has spend around Rs 500 crore in the Rae Bareli plant, which would also consume about 6,00,000 tonnes of fly ash annually.
Hinduja Group's flagship company, Ashok Leyland, has begun exporting its multi-utility vehicle (MUV) STiLE. The first export destination is Africa,
as the company wants to increase its footprint in the African market, which will be done gradually.
Tata Teleservices (Maharashtra) (TTML) has reported the subscriber figures as on February 28, 2014. The company’s total subscribers stood at
10,516,868 of which Wireline contributes 773,111, FWT 743,972 and Mobile 8,999,785 subscribers.
Reserve Bank of India (RBI) has increased foreign institutional investors' (FIIs) investment limit in Manappuram Finance to 49% of its paid-up
capital. RBI has notified that FIIs, through primary market and stock exchanges, can now purchase up to 49% of the paid up capital of
Manappuram Finance under the Portfolio Investment Scheme. The company has passed resolutions at the board of directors' level and a special
resolution by the shareholders, agreeing to enhance the limit for the purchase of its equity shares and convertible debentures by FIIs.
Steel Authority of India (SAIL) has hiked flat product prices by 500-750 per tonne for the month of March. The company has also raised long
product prices by 500-1000 per tonne for March.
Indian Oil Corporation (IOC) is planning to invest Rs 3,150 crore for setting up a polypropylene unit in the Petroleum, Chemicals and
Petrochemical Investment Region (PCPIR) proposed at Paradip. The plant is likely to be commissioned by 2017. The polypropylene unit coming up
at the petrochemical complex will be of 0.7 million tonne per annum capacity. IOC is the anchor tenant for the PCPIR project that is expected to pull
investments worth Rs 2.74 lakh crore.
Bannari Amman Spinning Mills’ wholly owned subsidiary - Abirami Amman Mills has inked Memorandum of Understanding (MoU) with
Tamilnadu Government for setting up of a Textile Project near Dindigul, Tamilnadu.
Essar Steel has prepaid Rs 205 crore of loans taken from Axis Bank. The company has prepaid the same by issuing secured redeemable non-
convertible debentures (NCDs) of Rs 10 lakh each aggregating Rs 205 crore to the private sector lender.
HCL Technologies has entered into an agreement with UK-based government firm Student Loans Company (SLC) to offer lending and payments
services. The company’s subsidiary -- HCL Great Britain -- will work with financial advisory services firm Deloitte and banking and management
solutions provider Misys to provide an automated, secure and streamlined customer experience across multiple channels, including digital.
Accentia Technologies has received an approval for the south Asia business plan for its innovative Nirbhaya phones. The board of directors at its
meeting held on March 10, 2014 has approved for the same. Nirbhaya phones is the Safest GSM/GPS based Communication devices developed
specifically for the weaker and vulnerable members of the society in India.
Apollo Hospitals Enterprise is planning to add a cancer care unit to its upcoming Navi Mumbai facility, the project which is under development.
The company will invest around Rs 87 crore for the cancer care unit.
Idea Cellular has entered into a partnership with Gameloft, a global publisher of digital and social games. As per the partnership, Gameloft will
offer quality gaming to more than 130 million subscribers of the country’s third largest telecom operator. Gameloft has popular franchises like
Asphalt, Modern Combat and Real Football under its portfolio. This tie up will enable Idea subscribers to avail games from the Gameloft Game
Store and also through Idea’s mobile portal.
Prime Focus Technologies (PFT), the technology subsidiary of Prime Focus, has signed a definitive agreement to acquire DAX, a leading
provider of cloud-based production workflow and media asset management applications to the entertainment industry for a base consideration of
$9.1 million amounting Rs 56 crore in a uniquely structured performance linked transaction.
Petron Engineering Construction has received Letter of Award (LoA) for Civil Contract at Nagpur Cement Works, Village Tarsa, Tehsil Mauda,
Nagpur district in state of Maharashtra from UltraTech Cement, Nagpur Cement Works unit for a total contract value of Rs 54.70 crore plus service
Andhra Petrochemicals has commenced the production from its plant situated at Visakhapatnam with effect from March 09, 2014. The plant was
shut-down with effect from November 17, 2013 due to non-supply of major raw material Propylene from its supplier Hindustan Petroleum
Ujaas Energy has received an approval for incorporating / establishing wholly / partially owned foreign subsidiaries at different countries outside
India. The board of directors at its meeting held on March 10, 2014, has approved for the same.
Shipping Corporation of India (SCI) has sold its ship - 70T. Bollard Pull, Anchor Handling, Towing & Supply Vessel (AHTSV) OSV ‘SCI-02’ and
delivered to its buyer on March 07, 2014.
Feb trade deficit narrows; records its steepest fall since September 2013
India's trade deficit recorded its steepest fall since September 2013 in the month of February to $8.13 billion from $14.12 billion in the year ago
period and $9.92 in January, led by sharp decline in imports, especially oil and non-oil imports. Signaling that government's efforts at containing
deficit had started reaping benefits, country’s import slid by a steep 17% on Year-on-Year (Y-o-Y) basis. While oil imports were down to $13.7
billion from $14.13 billion in February 2013, non-oil imports too showed a decline of 24.5% to $20.12 billion from $26.65 billion (Y-o-Y) basis.
However, in a jolt to the economy, exports declined once again after a span of seven months. Exports came down by 3.67% at $25.68 billion in
February compared to $26.66 billion in the same month last year, thereby casting doubts over chances of achieving export target of $325 billion for
the present fiscal.
According to data released by the ministry of commerce and industry, cumulative value of exports for the period April-February 2013 -14 grew by
4.79% at $282.78 billion as against $269.86 billion. On the flip side, cumulatively imports during that period slid by 8.65% at $449.79 billion as
against $410.86 billion in the same period last year. Consequently, trade deficit for Apr-Feb period narrowed down to $128.08 billion from $179.93
billion (Y-o-Y), thereby making government's current account deficit target of sub $50 billion by March 2014 more achievable.
India planning to build nearly 200 low-cost airports in next 20 years
The government is planning to build nearly 200 low-cost airports in the next 20 years to expand connectivity to Tier-II and Tier-III cities. Joint
Secretary of Civil Aviation G Ashok Kumar has asserted that the idea to expand low cost airports to meet the demand for air travel.
G Ashok Kumar further added that non-metro airports presently account for only about 30% of the total air traffic, which is expected to increase to
45% in the next few years. Referring to current issues to Indian aviation industry, Joint Secretary asserted that the industry is facing multiple
challenges including high Aviation Turbine Fuel (ATF) costs, VAT, high landing and other operational costs and falling tariffs. The state
governments are not reducing the Value Added Tax (VAT) and other rates on ATF, he added. Ashok Kumar also announced the fourth edition of
the international exhibition and conference on Civil Aviation-India Aviation 2014. The five-day event, with the theme of enhancing air connectivity of
India, will held on March 12, jointly organised by the Ministry of Civil Aviation, Government of India and the Federation of Indian Chambers of
Commerce and Industry.
Car sales up by 1.39 percent in February driven by excise cut
Showing a positive trend after a few months of contraction, domestic passenger cars sales increased by 1.39 percent to 1.60 lakh units in the
month of February as compared to 1.58 lakh units in the corresponding month last year fuelled by a cut in excise duty.
Total two-wheelers sales also went up by 9.69 percent to 12.20 lakh units in February’2014 against 11.12 lakh units in February 2013. In two
wheelers segment, scooter sales were up by 28 percent to 3.11 lakh units in February against 2.43 lakh units in the same month of last year, while,
motorcycles sales rose 5.39 percent to 8.43 lakh units in reported month from 8 lakh a year ago. However, commercial vehicles segment is still in
negative zone with sales declined by 30 per cent to 47,982 units in the month compared with 68,388 units in February 2013. Three-wheelers sales
were also down 14 percent in February on year-on-year basis.
India to ask US to ease restrictions on exporting gas to non-FTA countries
In order to meet the rising energy needs of the country and to import oil and gas from the US, India is going to ask the US to ease restrictions on
exporting gas to non-FTA countries. At present, India does not have an FTA (free trade agreement) with the US. On the other hand, the gas-
surplus US has allowed conditional export of liquefied natural gas (LNG) from five of its projects to nations with which the US does not have a free
trade agreement, so-called ‘non-FTA’ countries.
India would discuss the issue of LNG exports to non-FTA nations at the Indo-US Energy Dialogue. The US can use five terminals such as Sabine
Pass, Freeport, Lake Charles Exports, Dominion Cove Point LNG and Cameron LNG LLC terminal in Louisiana to export LNG to non-FTA
countries. Indian companies led by state-owned GAIL have already signed agreements with the US firms to buy as much as 3.5 million tonnes a
year of LNG.
India Ratings maintains stable outlook on consolidated finance of state govts
India Ratings and Research has maintained a stable outlook on the consolidated finances of Indian state administrations, which the agency feels
would remain resilient against the backdrop of current economic downturn, despite a marginal increase in the combined deficits of states. The
agency estimates consolidated fiscal deficit of states to increase to 2.3 per cent of GDP in FY14 as against the budget estimate of 2.2 per cent.
However, this is not expected to affect their consolidated credit profile.
Further, the rating agency also has a stable outlook in its rated state-government guaranteed debt programmes and is likely to affirm all other state
government guaranteed debt programmes ratings in FY15. However, the ratings on the Andhra government guaranteed debt programme have
been put on rating watch following the bifurcation of the state.
FDI in service sector plummets by 60% in first nine months of FY14
Foreign direct investment (FDI) into the services sector, which includes banking, insurance, outsourcing, R&D, courier and technology testing and
which contributes over 60% to India's GDP, declined by about 60% to $1.59 billion in the first nine months of this financial year. Total FDI worth
$4.04 billion was received during April-December period of 2012 in the sector.
With the drop in FDI in services, overall foreign inflows in the country slid by 3% to $22 billion during the nine-month period. Investments of $22.78
billion were made in April-December 2012. Meanwhile, other sectors where inflows have declined include construction development, metallurgical
industries and hotel and tourism.
Uncertainty over which government would come to power from the coming financial year is mainly keeping foreign institutional investors (FIIs) on
tenterhooks. Across the globe, foreign investors are eagerly waiting for elections and would take a final call once new government steps in.
http://www.lkpsec.com/news/corporate-news.aspx Source: Reuters, Ace Equity & LKP Research
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