Indian markets are likely to open lower Friday as indicated by Nifty
futures on the Singapore index. The Nifty had closed above the key 5,300
mark on Thursday on account of last hour buying. Traders would hope the
50-share Nifty to close above the 5,350 mark today.
"The range will be capped at 5,400 unless we have a decisive breakout. The gap area between 5,220-5,260 is a strong support," independent analyst Sarvendra Srivastava said.
Meanwhile, markets have priced in close to 5 per cent GDP growth in the first quarter ending June 2012. However, analysts have not ruled out a sub-5 per cent print in which case markets may see a selloff. A drastically low GDP may force the Reserve Bank to cut rates though, which may be good news for rate sensitive stocks.
Here are the stocks to track today.
1) Coal India: The company's board will meet today to finalise Fuel Supply Agreements (FSA). The board may agree to higher penalty of up to 40 per cent. In the last meeting, the state-run miner had agreed to coal pool pricing. It had also agreed to contracted quantity of 80 per cent.
2) Indraprastha Gas (IGL): The Supreme Court will continue hearing regulator Petroleum and Natural Gas Regulatory Board's case against IGL today. Earlier, the Delhi High Court has ruled in favour of IGL in the company's dispute with PNGRB. In April, the regulator (PNGRB) had ordered IGL to cut network tariff by around 60 per cent retrospectively from April 2008. The total refund on account of the retrospective nature of the order was pegged between Rs. 900-1,200 crore. IGL had argued that the order would wipe out the company's entire net worth of Rs. 1,500 crore.
3) MTNL: The stock plunged 13 per cent yesterday after 4.2 per cent equity changed hands. Macquarie & JM Financial sold 27.7 lakh & 20.2 lakh shares at Rs. 38 per share while Goldman Sachs bought 31 lakh shares at Rs. 35.9 per share in a separate transaction. The state run telco is likely to get a fund infusion of Rs. 5,000 crore from the government according to market buzz.
4) Tech Mahindra: British Telecom's move to cut its stake in the IT services provider is unlikely to adversely affect revenues. Deutsche Bank expects very little risk to Tech Mahindra's existing portfolio. The investment bank expects BT to contribute 15-16 per cent of combined (Tech Mahindra and Mahindra Satyam) entity revenues.
5) Neyveli Lignite: The CCEA has cleared a 5 per cent stake sale in the company. The offer for sale will be done through the auction process after the EGoM approves a floor price. The company has already begun the process of appointing merchant bankers for the sale.
6) MMTC, NLC, Hindustan Copper, NALCO and Oil India: Sources said approvals for divestment in these state-run firms could follow soon.
7) Sterlite Industries, Hindustan Zinc: Vedanta has received shareholders' nod to raise offer for stake in Hindustan Zinc and Balco.
8) JSW Steel: The private steel major will consider restructuring some businesses on September 1. The restructuring plan includes JSW Ispat.
9) Bosch: It will commence Gujarat operations by early 2013.
10) Karnataka Bank: It has received shareholders' nod to raise authorised capital from Rs. 200 crore to Rs. 300 crore.
(With inputs from agencies)
"The range will be capped at 5,400 unless we have a decisive breakout. The gap area between 5,220-5,260 is a strong support," independent analyst Sarvendra Srivastava said.
Meanwhile, markets have priced in close to 5 per cent GDP growth in the first quarter ending June 2012. However, analysts have not ruled out a sub-5 per cent print in which case markets may see a selloff. A drastically low GDP may force the Reserve Bank to cut rates though, which may be good news for rate sensitive stocks.
Here are the stocks to track today.
1) Coal India: The company's board will meet today to finalise Fuel Supply Agreements (FSA). The board may agree to higher penalty of up to 40 per cent. In the last meeting, the state-run miner had agreed to coal pool pricing. It had also agreed to contracted quantity of 80 per cent.
2) Indraprastha Gas (IGL): The Supreme Court will continue hearing regulator Petroleum and Natural Gas Regulatory Board's case against IGL today. Earlier, the Delhi High Court has ruled in favour of IGL in the company's dispute with PNGRB. In April, the regulator (PNGRB) had ordered IGL to cut network tariff by around 60 per cent retrospectively from April 2008. The total refund on account of the retrospective nature of the order was pegged between Rs. 900-1,200 crore. IGL had argued that the order would wipe out the company's entire net worth of Rs. 1,500 crore.
3) MTNL: The stock plunged 13 per cent yesterday after 4.2 per cent equity changed hands. Macquarie & JM Financial sold 27.7 lakh & 20.2 lakh shares at Rs. 38 per share while Goldman Sachs bought 31 lakh shares at Rs. 35.9 per share in a separate transaction. The state run telco is likely to get a fund infusion of Rs. 5,000 crore from the government according to market buzz.
4) Tech Mahindra: British Telecom's move to cut its stake in the IT services provider is unlikely to adversely affect revenues. Deutsche Bank expects very little risk to Tech Mahindra's existing portfolio. The investment bank expects BT to contribute 15-16 per cent of combined (Tech Mahindra and Mahindra Satyam) entity revenues.
5) Neyveli Lignite: The CCEA has cleared a 5 per cent stake sale in the company. The offer for sale will be done through the auction process after the EGoM approves a floor price. The company has already begun the process of appointing merchant bankers for the sale.
6) MMTC, NLC, Hindustan Copper, NALCO and Oil India: Sources said approvals for divestment in these state-run firms could follow soon.
7) Sterlite Industries, Hindustan Zinc: Vedanta has received shareholders' nod to raise offer for stake in Hindustan Zinc and Balco.
8) JSW Steel: The private steel major will consider restructuring some businesses on September 1. The restructuring plan includes JSW Ispat.
9) Bosch: It will commence Gujarat operations by early 2013.
10) Karnataka Bank: It has received shareholders' nod to raise authorised capital from Rs. 200 crore to Rs. 300 crore.
(With inputs from agencies)
