SEBI tightens insider trading, delisting norms

The Indian equity market is likely to open flat today. Global cues, meanwhile, are positive with the US markets ending slightly negative. European market closed with minor gains on upbeat data from Euro. Asian markets to be trading mixed.

Today’s Headlines

1) Wall St Edges lower as Fed minutes offer few clues on rates

2) SEBI tightens insider trading, delisting norms

3) Coal Ministry prepares draft norms on block allocation

4) FIIs hike stake in Infosys to 42.67% in Jul-Sep quarter

5) Stocks in news: SBI, DLF, HSIL, Indiabulls Securities

6) Fitch rates NTPC's proposed USD 2-bn notes secure

7) Stake in HDFC Bk intact; credit growth @ 20% in 5 yrs: HDFC

Read detail analysis report here:- http://www.rrfinance.com/reserch/MorningBell/Eq_MorningBell.pdf

Debt Market Key Headlines

1) Overseas investors have pumped in about Rs 13,000 crore in the Indian debt market so far this month, endorsing the country's growth potential and political stability. This takes the total investment in the debt market to around Rs 99,000 crore so far this year.

2) A host of foreign investors and funds will be meeting corporate leaders in India next month, the first time since the global financial crisis, and signifying changing perception about the country's growth potential.

Read detail analysis report here:- http://www.rrfinance.com/reserch/MorningBell/Db_MorningBell.pdf

Commodity Key Headlines

1) Natural gas shoots up on chilly U.S. weather forecasts

2) Crude gains on talk of OPEC action, U.S. supply report weighs

3) MCX Silvermic February contract rises

4) Crude Oil price slump hurts India rubber farmers

5) India to have 20lakh tonne surplus Sugar in 2014-15: ISMA

6) Cotton: Market intervention efforts strengthen on fall in prices

Read detail analysis report here:- http://www.rrfinance.com/reserch/MorningBell/Cm_MorningBell.pdf

Tata Motors to launch two car models every year till 2020

The 50-share Nifty index is expected to open flat on Thursday following muted trend seen in other Asian markets. Tracking the momentum, the index is expected to retest its crucial psychological support level of 7850-7870 in trade today. Stocks in news are Reliance Industries, Hindustan Zinc, SAIL, Tata Steel, Tata Motors, ONGC, DLF, TVS Motors, GCPL, Deepak Ferrilizers, Venus Remedies, Dr Reddy’s Lab and Jindal Saw.

Today’s Headlines

1) Tata Motors to launch two car models every year till 2020.

2) TVS Motor launches Scooty Zest; eyes 18% market share.

3) Empays Payment Systems mulls to raise $10 million to expand business in India and overseas.

4) Damodar Valley Corp to suspend power supply to Madhya Pradesh.

Currency Market Headlines

1) India’s rupee rose to the highest level in three weeks on speculation the government’s efforts to cut the budget deficit will draw more funds from overseas.

2) Brazil’s central bank has eased rules on reserve requirement for a second time this quarter in a bid to boost credit in a slowing economy.

3) The pound strengthened as the Bank of England said two policy makers wanted an interest-rate increase this month, marking the first split on rates in more than three years and the first under Governor Mark Carney.

Read full report here:- http://www.rrfinance.com/reserch/MorningBell/Cr_MorningBell.pdf

Key Headlines

1) Foreign institutional investors (FIIs) have poured a record amount of money into the Indian debt market with year-to-date inflows of $13.7 billion, higher than inflows of around $12.04 billion into the equity market. There is a lot of demand for Indian bonds from foreign investors because yields are quite attractive for carry trade and the rupee has also been stable.

2) Indian 10 year yields have remained elevated at around 8.8%, more attractive than the yields on the 10-year US treasury bonds at around 2.5%, even after factoring in a possible depreciation of the rupee.

Read full story here:- http://www.rrfinance.com/reserch/MorningBell/Db_MorningBell.pdf

Index is expected to head down but should be able to recoup losses!

The 50-share Nifty index is expected to open flat on Wednesday following muted trend seen in other Asian markets. Tracking the momentum, the index is expected to head down but should be able to recoup losses later in the day and retest its crucial level of 7900. Stocks in news are Bharti Airtel, Arvind, HDFC Bank, Eros International, GAIL, Just Dial, Ashok Leyland, Karur Vysya, Wipro, NTPC and Ranbaxy.

Today’s Headlines

1) Petrol cars gain on diesel-run variants on narrowing price gap between the two fuels.

2) Starbucks to raise authorized capital to Rs 350 crore.

3) Government plans to merge all state-run hydropower firms; thermal projects may be transferred to NTPC.

4) OPPI asks Department of Pharmaceuticals to make Uniform Code of Pharmaceutical Marketing Practices a statutory code.

Read detail analysis report here:- http://www.rrfinance.com/reserch/MorningBell/Eq_MorningBell.pdf

Debt Market Key Headlines

1) Foreign institutional investors (FIIs) have poured a record amount of money into the Indian debt market with year-to-date inflows of $13.7 billion, higher than inflows of around $12.04 billion into the equity market. There is a lot of demand for Indian bonds from foreign investors because yields are quite attractive for carry trade and the rupee has also been stable.

2) Indian 10 year yields have remained elevated at around 8.8%, more attractive than the yields on the 10-year US treasury bonds at around 2.5%, even after factoring in a possible depreciation of the rupee.

Read technical analysis report here:- http://www.rrfinance.com/reserch/MorningBell/Db_MorningBell.pdf

Currency Market Today’s Headlines

1) The dollar rose against major peers as a report showed housing starts reached the highest level in eight months, adding to evidence the U.S. economy is gaining traction.

2) The cost of living in the U.S. climbed in July at the slowest pace in five months, indicating price pressures remain limited even as the economy picks up.

3) The pound dropped to a four-month low versus the dollar after a report showed U.K. inflation slowed more in July than economists forecast, giving the Bank of England extra room to delay raising interest rates.

Read technical analysis report here:- http://www.rrfinance.com/reserch/MorningBell/Cr_MorningBell.pdf

Foreign institutional investors (FIIs) continued their buying spree

Market scaled fresh lifetime highs, but surrendered most of the gains on profit-booking towards the end of the week on IMF report about slowdown in Indian economy due to "international factors".

Both the bellwether indices, Sensex and Nifty, failed to maintain their all-time highs despite sustained capital inflows. Brokers attributed the rally to investor hopes of a stable government after the forthcoming general elections and economy returning to high growth path. The Reserve Bank of India (RBI), at its April 1 policy meet, left the short-term lending rate, or repo, unchanged at 8 percent and cash reserve ratio at 4 percent. Brokers said the RBI's decision was largely in line with investor expectations and failed to have any major immediate effect on the market.

Foreign institutional investors (FIIs) continued their buying spree, acquiring shares worth a net Rs 5,124.66 crore during the week, including the provisional figure of April 4, as per SEBI data. Realty, consumer durable, metal, pharma, refinery and IT counters attracted good buying interest while FMCG, banking and capital goods stocks suffered losses. Bank stocks fell after the Reserve Bank of India (RBI) clarified that the option for spreading the mark-to-market losses over the three quarters ended on March 31, 2014 and no further extension was allowed,

Key Global Events

Japan investment in Southeast Asia surges amid China slump - Japanese companies' investments in Southeast Asia surged last year to almost three times the amount invested in China, after relations between Beijing and Tokyo soured in 2012 and Chinese labour costs rose; a government agency of Japan said on Friday.

Payrolls Rose in Most U.S. States in March, Led by Florida - Florida led the nation with a 22,900 increase in payrolls, followed by North Carolina with 19,400 more jobs, figures from the Labor Department showed today in Washington. Ohio registered among the biggest declines in joblessness. Gains in hiring will probably help lift consumer confidence and spur household spending, which accounts for almost 70 percent of the economy. The Federal Reserve, in its latest Beige Book review of regional conditions, said the labor market was “generally positive.”

Fortnightly Headlines

1) JSW Steel in talks to buy Welspun unit: reports.
2) Welspun chairman BK Goenka denied that talks were currently on.
3) GlaxoSmithKline Pharma Q1 net profit at Rs965.40 mn.
4) Lok Sabha Elections: Sixth phase to begin on Monday.
5) First process patent granted to Insecticides (India).
6) SAIL Durgapur adds 1-MT refining capacity new Ladle Furnace.
7) Alstom awarded contract by BHEL for the 2x660 MW Banharpalli coal power plant.
8) Liberty Shoes FY 2014 profit zooms 166%.
9) BJP-led NDA will favour India's business interest: Narendra Modi.
10) Glenmark has received from Sanofi already USD 50 Mn as an upfront payment in FY2011-12.
11) Reliance Industries Ltd has posted a net profit of Rs. 56310 mn for the quarter ended March 31, 2014 as compared to Rs. 55890 mn for the quarter ended March 31, 2013.
12) Infosys Senior VP Nithyanandan Radhakrishnan resigns.
13) Tata Sons plans to raise funds.

Read detail analysis report here: -  http://www.flixya.com/blog/5745361/Foreign-institutional-investors-FIIs-continued-their-buying-spree