BUDGET 2014: Next Big Trigger for Markets

The first Budget of NDA is the next big trigger for the Markets. Our Budget expectations are on following lines:–

• Boost to Consumer spending: - The budget should rationalize Direct taxes and reduce Income Tax on Salaried class to boost consumer spending.

• Focus on infrastructure& Power:- The Budget should aim at increasing investments in Infrastructure by Tax Sops and creation of Investment vehicles giving the Government dual benefit  of creating jobs as well as boosting economy. Separate investment vehicles may be created to help cash starved infrastructure developers raise long term capital at competitive rates.

• Positive & Proactive Time Frame for long pending issues i.e. Introduction of GST and introduction of new Direct Tax Code is expected to be announced in the Budget.

• Capital Market Boost by rationalizing Taxation on Investments, increasing amount of investment U/S Sec.80C and increasing thrust on Disinvestment.

• Rationalization of Subsidies and an overall containment of Fiscal deficits.

The Budget is expected to aim to give a boost our economy. After budget announcement, the markets may see acceleration on the positive sentiment and it could lead to re rating of our markets. The downside being limited we expect that investments in diversified MF schemes as well as all class of mid & small cap schemes should give handsome returns to the investors.

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Banks rush to dump their bad loans

The 50-share Nifty index is expected to open higher on Monday following positive trend seen in other Asian markets. Tracking the momentum, the index has immediate support at 7500 and below that 7400 is a crucial support level for Nifty. Stocks in news are SBI, BOB, IOB, Reliance Ind, Infosys, GAIL India, COAL India and NTPC.

Today’s Headlines

1) Anti-lock braking made mandatory in commercial vehicles from April.
2) Banks rush to dump their bad loans, make a beeline to ARCs.
3) Diageo's market share increases to 17%; buoyed by access to the sales network of United Spirits.
4) Cigarette makers urge government to not increase excise duty.
5) 2 senior GAIL officials suspended over Andhra Pradesh pipeline mishap.

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

Technical: Wait & Watch & Good time to Switch

Nifty future has broken its crucial supports of 7640 & 7530. The markets may fall further and Nifty may hover between 7300-7450. At these levels, 7300 is a strong support and can be broken only if there is a very strong negative event.

We reiterate that lower levels will offer an attractive investment opportunity for equities. Immediate market movements are based on risk aversion and escalation in tensions in Middle East. Money is moving from risk assets to safety of gold. The hike in Rail fares has increased fears of inflationary trend & interest rates have moved up by 20 basis points in the last one week.

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Honda Motors' global recall to cover Accord in India!

The 50-share Nifty index is expected to open flat on Wednesday following muted trend seen in other Asian markets. Stocks in news are Idea, TTK Prestige, Tata Steel, Parasvnath Developers, DLF, Reliance Infr, IRB Infra, GMR Infra, EIL and Indian Hotels Company.


Today’s Headlines

1) Honda Motors' global recall to cover Accord in India.
2) Maruti plans big, to launch six cars in the next 5 months.
3) RBI sets time frames for approvals for licenses, fundraising.
4) Arvind Lifestyle to invest Rs 126 crore as capital expenditure this fiscal.
5) JSW Energy keen to acquire Lanco’s Udupi thermal power plant.
6) US company Abraxis Bio Sciences denied patent on anti-cancer drug.

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

The dollar fell for the first time in three days!

1) The dollar fell for the first time in three days versus the yen before data this week economists said will show U.S. output and new home sales slowed, supporting the case for the Federal Reserve to hold rates near zero.

2) The pound was 0.2 percent from the highest level in more than five years against the dollar as data showed speculators increased their bets on its appreciation to the most since 2007.

3) The rupee fell toward a seven-week low on concern a rally in oil prices amid tensions in Iraq will widen India’s trade deficit and spur inflation.

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

Asian Paints keen to expand global footprint

The 50-share Nifty index is expected to open higher on Monday following positive trend seen in other Asian markets. Tracking the momentum, the index is expected to reclaim its crucial psychological level of 7,550 in trade today. Stocks in news are Bank Of India, Railways Stocks, ONGC, Jindal Steel & Power, L&T, Coal India, SAIL, Hindustan Zinc, Gammon Infrastructure, ESSAR Oil, SBT, Emami, United Bank of India, UCO Bank and J Kumar Infra projects.

Today’s Headlines

1) Asian Paints keen to expand global footprint.
2) Ruias get Board nod to de-list Essar Oil from Indian bourses.
3) GCA to be appointed to resolve ONGC-RIL dispute.
4) Operations resume in Bhilai Steel Plant after a week's shutdown.
5) CK Birla group up Rs 270 crore investments in healthcare.
6) United Bank of India to rise up to Rs 1,600 crore to grow lending.

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

Nestle India revamping coffee brand Nescafe!

The 50-share Nifty index is expected to open flat with positive bias on Friday following muted trend seen in other Asian markets. Tracking the momentum, the index is expected to reclaim its crucial psychological level of 7550 in trade today. Stocks in news are Hindustan Zinc, Tata Motors, Cairn India, GMR Infra, Apollo Tyres, Orchid Chemicals, Indiabulls Real Estate, UPL, OIL and RCOM.

Today’s Headlines

1) Hindustan Motors seeks more time for preparing revival plan roadmap.
2) State Bank of India among 24 public sector banks ineligible for Rs 50,000 crore EPFO investments.
3) Nestle India revamping coffee brand Nescafe.
4) PepsiCo to sell packs of beverage and snacks during FIFA World Cup sponsored by Coca-Cola, denies ambush marketing.
5) Heads of Adani, Reliance, Essar, GMR, JSPL, Lanco to meet Arun Jaitley, Piyush Goyal today.

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