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Friday, February 14, 2014

Positive start, caution likely

Don't fall in love with someone who says the right things, fall in love with someone who does the right things.- Robert Tew

There is not much left to say after the Lok Sabha saw a new low as two MPs from Andhra Pradesh used pepper spray on fellow MPs while another brandished a sharp object to create panic in Parliament. Lok Sabha Speaker Meira Kumar suspended 18 MPs from Andhra Pradesh for rest of the session.

In the Rajya Sabha, the government tabled the mid year economic review which stated that high inflation rate is the biggest risk to growth outlook and the headline wholesale price inflation (WPI) needs to be brought below 6%.

The Wholesale price inflation data to be released today is expected to show some moderation. "The recent structural reforms undertaken by the Government are likely to place the economy on a higher potential growth path, from where acceleration to a higher growth trajectory can occur reasonably quickly, once global recovery gains momentum and cyclical upturn strengthens," the mid-year review added.

The opening is set to be positive. Investors will stay a bit cautious ahead of the vote-on-account next week. Some results will cause the usual swings in counters. Telecom companies will remain in focus. The government garnered ~ Rs61,100 crore from the auction of 900-MHz and 1,800-MHz spectrum. The Centre will get Rs 18,296.32 crore (as first instalment) this financial year, about 61 per cent higher than the Budget target of Rs 11,343 crore, said MF Farooqui, secretary, Department of Telecommunications was quoted as saying.

The Dow gained more than 60 points, while the S&P 500 rose 0.6%. The Nasdaq gained almost 1%, logging its sixth straight day of gains The government reported that retail sales unexpectedly fell in January but this did not dampen sentiment for the day.

The Bharatiya Janata Party will emerge as the front-runner in the upcoming general election, according to the Times NOW-C Voter national poll projection unveiled on Thursday. The latest pre-poll survey predicts a big surge for BJP from the last election, taking the seat count for the National Democratic Alliance that it leads to 227, just 55 short of a simple majority. That compares with 159 Lok Sabha seats for NDA in 2009.

SEBI has stated that a person can't be an independent director in more than seven companies and cannot accept stock options from them. Sebi also made it mandatory for companies to disclose CEO compensation.

Oil & Natural Gas Corporation Ltd has posted a net profit of Rs. 71259.70 mn for the quarter ended December 31, 2013 as compared to Rs. 55627.20 mn for the quarter ended December 31, 2012. .

The government has tabled the mid-year economic review in the Rajya Sabha.The government has pegged FY14 GDP growth at 5%, expecting economic recovery to pick up in coming quarters.

Sun Pharmaceutical Industries Ltd has posted a net profit after taxes and minority interest of Rs. 15310.90 mn for the quarter ended December 31, 2013 where as the same was at Rs. 8813.00 mn for the quarter ended December 31, 2012.

Shares of Coal India was down 3% at Rs260 after the company has posted a net profit after taxes, Minority Interest and Share of Profit / (loss) of Associates of Rs. 38940.90 million for the quarter ended December 31, 2013 as compared to Rs. 43951.10 mn for the quarter ended December 31, 2012.

Shares of IOC was down 5% at Rs244 after the company posted a net loss of Rs. (9614.50) mn for the quarter ended December 31, 2013 as compared to net profit of Rs. 33319.60 million for the quarter ended December 31, 2012.

Worldwide sales of smartphones to end users totaled 968 mn units in 2013, an increase of 42.3 percent from 2012, according to Gartner, Inc. Sales of smartphones accounted for 53.6% of overall mobile phone sales in 2013, and exceeded annual sales of feature phones for the first time.

Results watch: Punj Lloyd, SBI, DLF, Suzlon Energy, Unitech, Aadi Inds, Aarey Drugs, ABC Bearings, ABG Infra, ABG Shipyard, Accel Front, Accurate Trans, ACE Edutrend, ADI Rasayan, ADV Power, Advance Micro, Ahluwalia Const, Aimco Pest, Alchemist Corp, Allcargo Logistics, Alpine Housing, Amrapali Inds, Apple Finance, Arcee Inds, Aries Agro, Aruna Hotel, Arunjyoti Enterprises, Aruna Hotels, Arunjyoti Enterprises, Arvind Intl, Arvind Remedies, Asahi Ind, Ashiana Ispat, Asian Hotels (West), Aurionpro Sol, Auro Lab, Autopal Inds, Autoriders Intl, Avon Corp, Axis Capital, Azure Exim Services, B2B Software, BAG Films, Bajaj Hind, CHD Developers, CESL, Cals Ref, Cosmo Films, CRISIL, Deccan Cements, DEN NETWORK, Educomp Sol, Elder Health, Elder Pharma, Financial Tech, Era Infra, Gayatri Proj, Geodesic, Gitanjali Gems, Gujarat Fluo, Gujarat Metallic, HDIL, Hindustan Oil, Hitech Gears, ICVL Chem, Jayshree Chem, Jindal Poly, IVRCL, Jaihind Proj, KSK Energy, Lakshmi Vilas Bank, Magna Inds, Mahindra & Mahindra, Maxwell Inds, Mcnally Bharat, Monnet Ispat Energy, MTNL, Orissa Minerals Development, Rajesh Exports, Rolta India, Steel Strips, Steel Strp Infra, Surya Pharma, Vardhman Inds, Venkys and Zenith.

Trends in FII flows: The FIIs were net buyers of Rs3.99bn in the cash segment on Thursday, while the domestic institutional investors (DIIs) were net sellers of Rs2.92bn, as per the provisional figures released by the NSE.

In other news in the media:

United Bank of India either deliberately or unintentionally hid bad loans as its automated system to detect payment defaults was non-functional for over 2 years, says a Deloitte audit. (ET)

Infosys is setting out on a major talent hunt in global B-schools, hoping to recruit 200 MBAs in the US, Europe and Asia-Pacific. The move will help beef up its business consulting practice and also intensify its client engagement. (ET)

Reliance Jio Infocomm has entered the voice segment for the first time and bought more airwaves for fourth-generation services, this time in the 1800 MHz band in 14 service areas for around Rs110bn. It has bought five or more MHz in each of the circles, which is a necessity for 4G. (ET)

Bharti Airtel acquired 115 MHz of airwaves in 15 circles in the 1800 MHz band and three circles in the 900 MHz bands for a total of Rs185.3bn. Vodafone India grabbed airwaves in 11 circles in the 1800 MHz band and improved its 900 MHz spectrum holding with a total payout of Rs196bn.

Essar Group’s Aegis is close to acquiring two companies, its chief executive officer said. While one of the targets will be from Britain, the company did not divulge the geographical location of the other firm, which will be in the non-voice category. (ET)

TCS will beat Nasscom's growth guidance of 13-15% for FY15, CEO N Chandrasekaran said. (BS)

Following the Office of Fair Trading of the UK’s directive, United Spirits Ltd would have to sell at least 70% of its scotch whisky subsidiary Whyte & Mackay. It is understood USL is planning to raise about US$800mn through the sale and is close to appointing bankers for the transaction. (BS)

Tilaknagar Industries, maker of Mansion House and Courrier Napoleon brandies, is in the advanced stage of discussion with Tamil Nadu-based Indian made foreign liquor maker Imperial Spirits. (BS)

Days after receiving the draft report from Deloitte on restructuring of state-owned Coal India, Union Coal minister raised questions over the rationale behind the proposal, indicating he would prefer shelving the plan. (BS)

Sun Pharmaceutical Industries has further revised its growth projection to 29% for the year ending March 2014, up from 25% earlier. (BL)

Essar’s Mahan Coal Ltd has received the stage II forest clearance from the Ministry of Environment and Forests for the coal block in Madhya Pradesh subject to conditions. (BL)

A person can’t be an independent director in more than seven companies and cannot accept stock options, according to new rules issued by the SEBI. The SEBI board also made it mandatory for companies to disclose CEO compensation. (ET)

India’s telecom spectrum auction raised Rs611.62bn after 10 days of fierce bidding, falling just short of the amount bid for 3G airwaves in 2010. (BL)

The Union Cabinet has cleared the revised Civil Aviation Authority Bill, incorporating the changes recommended by the standing committee on transport, tourism and culture. (ET)

RBI governor has suggested that the government reduce expenditure on subsidies and raise energy prices, saying such a move will help in the fight against inflation. (ET)

The ministry of rural development will be asking for another Rs10bn to complete the Socio Economic and Caste Census that’s already about three years overdue and is likely to take longer. (ET)