TOP CORPORATE NEWS

·        United Bank plans to raise Rs 1,000 cr via QIP

United Bank of India plans to raise up to Rs. 1,000 crore through a qualified institutional placement or rights issue this fiscal.

                                                                                                        

·        Tata Steel to seek shareholders' nod for raising Rs 14k cr

Tata Steel will seek shareholders nod to raise up to Rs 14,000 crore through privately placed debt securities in domestic as well as global markets. This will be in addition to the Rs. 575 crore it aims to raise by issuing equity shares on a preferential basis to the government Rs. 275 crore and to the Life Insurance Corporation of India Rs. 300 crore.

·        Infosys up 2.4%, may bag US Treasury office deal

Shares of Infosys up as much as 2.4 percent on hopes of getting US Treasury office deal. US government is likely to give 3 IT deals worth USD 1.4 billion this year. These deals include US Treasury office, work & pensions and patent office.

·        Just Dial jumps 4%, brokerages overweight on it

Shares of Just Dial  jumped over 4 percent. Both HSBC and Barclays have overweight rating on the stock with target price of Rs 1900 and Rs 2000 respectively.

INDIAN BENCHMARKS ended marginally lower

INDIAN EQUITY BENCHMARKS have ended marginally lower as the Wholesale Price Index (WPI) has accelerated with Sensex and Nifty swinging between negative and positive zone. WPI inflation in May touched its highest level since December 2013 at 6.01 percent versus 5.3 percent in the previous month.

Further, ONGC may raise its stake in Cairn India's prolific Rajasthan oil fields as a condition for agreeing to allow the Anil Agarwal-group firm operate the block after expiry of contractual period. Central Bank of India rose 2.16% after the bank has fixed issue price of Rs 81.83 per share for preferential allotment of shares to LIC.

The crucial resistance for Nifty is now seen at 7550 and above this 7640. Support for the immediate term is now placed at 7485 and next support will be 7450.

IIP AND CPI DATA UPDATE

IIP DATA (Index of industrial production)

IIP data is a simple index which provides information about the growth of different sectors of our economy like mining, electricity, Manufacturing & General. The IIP index reflects the growth in India’s industrial activity and excludes all kinds of services.

·         April IIP stood at  3.4% vs -0.5% in March. 

CPI DATA (Consumer Price Index)

The CPI measures the change in the price of goods and services from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.

·         May CPI stood at 8.28% vs 8.59% in April.

TOP CORPORATE NEWS

·        Zee Entertainment up 6.5%, RBI allows 100% FII investment

Shares of Zee Entertainment Enterprises gained as much as 6.5 percent after the Reserve Bank of India allowed 100 percent investment by foreign institutional investors.

                                                                                                        

·        Metal shares gain after positive China signals

Metal shares such as JSW steel, Jindal steel, Tata steel firmed up on hopes of improvement in export demand after encouraging manufacturing data from China which recorded its fastest growth in May. China's official PMI of manufacturing activity in May was up at 50.8, a five-month high, compared with 50.4 in March.

·        Eicher Motors jumps after robust motorcycle sales in May

Eicher Motors jumped 4.39% after the company reported 86% rise in total motorcycle sales to 25,011 units in May 2014 over May 2013.

·        Cox & Kings sells camping business for Rs 892 crore

Cox & Kings has exited the camping business in Europe, selling the segment held by its subsidiary to French travel company Homair Vacances for about Rs 892 crore. Cox & Kings said it would use the proceeds to retire a portion of its Rs 4,200 crore debt before maturity.

INDIAN BENCHMARK open on a positive note.

INDIAN BENCHMARK open on a positive note. Rate-sensitive sectors such as banking and realty will be in focus ahead of RBI’s Monetary Policy review today. Tata Motors reported 24% decline in total vehicle sales to 37,525 units last month.

FURTHER, The Indian Overseas Bank IOB plans to raise a little over Rs10bn through a Qualified Institutional Placement (QIP), public issue, rights issue, preferential issue. Bharti Airtel is poised to conclude a much-anticipated deal to sell its towers in Africa in seven days, which could help the world's fourth-largest telecom operator rake in as much as US$3 bn and help reduce debt

Trend in FII flows: The FIIs were net buyers of Rs 2977cr in the cash segment on Monday while the DIIs were net sellers of Rs. 148cr, as per the provisional figures released by the NSE.

INDIAN BENCHMARKS end flat… await Modi's cabinet

INDIAN EQUITY BENCHMARKS came off their day's highs to end flat, amid a volatile trading session, as investors turned cautious ahead of key cabinet portfolios that are likely to be announced post Shri Narendra Modi's swearing-in ceremony as the 15th Prime Minister of India later this evening.

Further, India Cements reported Rs 30.56 crore standalone net loss for the January-March quarter on lower income and higher finance costs. Muthoot Finance's fourth quarter net profit fell 17.7 percent year-on-year to Rs 181 crore on lower income.

The crucial resistance for Nifty is now seen at 7500 and above this 7560. Support for the immediate term is now placed at 7250 and next support will be 7200.

   NEWS TO WATCH:

Watch out for the quarterly earnings of Bharat Forge, Dish TV, JP Associate, UBL, JSW Steel, STC India, PFC, Oil India on 27^TH May 2014

CS PERFORMANCE MESSAGE

STOCK FUTURES:

FUTURES INTRADAY:

VOLTAS LTD FUTURES SELL CALL 3 TG

HIND PETRO FUTURES BUY CALL 3 TG

RCOM FUTURES BUY CALL 3 TG (BOOKED AT 149.65)

BHEL FUTURES BUY CALL 2 TG (BOOKED AT 283.50)

JINDAL STEEL FUTURES BUY CALL 1 TG

PREMIUM FUTURES:

IRB INFRA FUTURES BUY CALL 3 TG

BHEL FUTURES BUY CALL 2 TG (BOOKED AT 292.50)

NIFTY FUTURES:

BANK NIFTY FUTURES SELL CALL 3 TG

NIFTY FUTURES SELL CALL 3 TG

NIFTY FUTURES BUY CALL 3 TG

OPTION:

BHEL 270 CALL BUY CALL 3 TG

CROMPTON GREAVES BUY CALL 2 TG

AXIS BANK 1900 CALL BUY CALL 1 TG

OPTION PREMIUM:

BHEL 270 CALL BUY CALL 1 TG

STOCK CASH:

STOCK CASH INTRADY:

IBREALEST SELL CALL 3 TG

IRB INFRA BUY CALL 3 TG (BOOKED AT 218)

HINDPETRO BUY CALL 2 TG

STOCK CASH PREMIUM:

JP ASOCIATE BUY CALL 1 TG

BHEL BUY CALL 1TG