Market may edge higher in early trade

Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 13.50 points at the opening bell. Railway Minister Sadananda Gowda will present the final Railway Budget for 2014-15 in Lok Sabha today, 8 July 2014.

Shares of companies whose fortunes are linked to orders from Indian Railways will be in focus on account of Railway Budget today, 8 July 2014.

Mahindra Mahindra announced after market hours on Monday, 7 July 2014, that it would carry out preventive inspection of some parts of its Scorpio Ex variant manufactured between May 2012 and November 2013. This is in keeping with its customer centric approach as well as in compliance with the voluntary code on vehicle recall.

This inspection and necessary part replacement if any, would be carried out with immediate effect and would be done free of cost for Scorpio Lx customers who would be individually contacted by the company/authorised dealers.

This recall is limited only to the Scorpio Lx variant manufactured during the said period and does not affect any other Scorpio variants.

Jaiprakash Associates said that the Finance Committee of the Board of Directors of the company in its meeting on 7 July 2014 decided to close the bid period of qualified institutional placement of shares to qualified institutional buyers, and approved the issue size at $250 million approximately Rs 1500 crore at a price of Rs 70.27 per share (including a premium of Rs 68.27 per share).

Reliance Industries (RIL) on Monday, 7 July 2014, announced that Independent Media Trust (IMT) of which RIL is the sole beneficiary, has completed the acquisition of control of Network 18 Media and Investments (NW18) including its subsidiary TV18 Broadcast (TV18).

Apart from nominees of IMT, Deepak S Parekh and Adil Zainulbhai have been inducted, as Independent Directors on the board of NW18. Mr. Raghav Bahl will continue to be on the Board of NW18 as a Non-executive Director.

With the completion of this transaction, IMT and RIL have become promoters of NW18 and TV18. The open offers to the public shareholders for acquisition of equity shares of NW18, TV18 and Infomedia Press as announced on 29 May 2014 by IMT are in process and the Draft letter of offer has been filed with Sebi for its comments, RIL said in a statement.

Shares of power generation companies will be in focus as Piyush Goyal, (Minister of state for Power, Coal New and Renewable Energy (Independent Charge) in a written reply to a question in the Rajya Sabha on Monday, 7 July 2014, stated that in order to ensure adequate availability of coal, Coal India (CIL) has been impressed upon to enhance production of domestic coal in the country and power utilities have also been advised to enhance import of coal..

The Minister further stated that in addition to above, with a view to monitor coal supplies to Power Utility Sector, an Inter-Ministerial Sub-Group comprising representatives of Ministry of Power, Ministry of Coal and Ministry of Railways has been constituted. This Sub-Group takes various operational decisions for meeting any contingent situations relating to Power sector including critical coal stock position.

Further, CIL has offered all Power Generating Companies drawing coal under Fuel Supply Agreements (FSAs), to lift the coal on as is where is basis with the stipulation that they will make their own evacuation arrangements. This scheme was earlier implemented by the coal companies, has been extended for 2014-15 also. All TPPs including National Thermal Power Corporation (NTPC) having FSA from CIL sources have been informed to lift coal under this scheme by arranging their own logistics for movement from coal offered from various pithead locations. CIL has also offered 1 MT of coal from cost plus mines of Western Coalfields (WCL) through short term Memorandum of Understanding (MoU) as extension of above scheme to power stations of NTPC presently facing critical stock issues arising out of less receipt of coal from other coal companies.

Mahindra Holidays Resorts India signed definitive agreements with the shareholders of Holiday Club Resorts Oy, Finland to initially acquire18.8% of its shares with a right to increase its ownership over a period of two years. This initial acquisition will be completed in a month’s time subject to required regulatory approvals.

Holiday Club Resorts Oy (Holiday Club) is a leading vacation ownership company in Europe with thirtytwo resorts, twenty four of which are located in Finland, two in Sweden and six in Spain (1 in Costa del Sol and 5 in Gran Canaria). Seven of these resorts have spa hotels with indoor water parks, three have golf course and there are five indoor theme parks for children called ‘Angry Birds Activity Parks’, Mahindra Holidays Resorts India said in a statement.

Holiday Club has a membership base of approximately 50,000 families and is a leading leisure brand in Europe. It has an efficient sales and marketing organization in addition to strong core competencies in the design of holiday homes and apartments, spa hotels and resort management. Recently, Holiday Club has also successfully begun selling fractional membership, a concept that has been well received by its European clients, the company said.

The proposed acquisition will enable Mahindra Holidays to make significant inroads into the European markets and to leverage Holiday Club’s expertise in the vacation ownership model, as well as its strong technology platform and talent pool.

Once full ownership is achieved, the combined entity has the potential to become the largest vacation ownership company in the world, outside the United States, the company added.

The current week is a crucial period for Indian financial markets. The Finance Ministry will table Economic Survey for 2013-14 tomorrow, 9 July 2014. Finance Minister Arun Jaitley will present the final Union Budget for 2014-15 in Lok Sabha at 11:00 IST on Thursday, 10 July 2014. After a clear mandate in Lok Sabha elections this year and with BJP perceived as a business friendly party, expectations from the Budget are running high.

There are expectations that the finance minster will announce measures in the Budget aimed at bolstering economic growth. Increase in outlay on infrastructure sector with focus on stricter and time-bound implementation of projects, initiatives towards investments in agriculture and irrigation aimed at easing supply bottlenecks for food-grains, fiscal prudence with roadmap to reduce the fiscal deficit, a roadmap for reducing the subsidy burden and timeline for implementation of the Goods and Services Tax are some of the expectations from the Budget.

Key benchmark indices edged higher for the second consecutive trading session on Monday, 7 July 2014, led by gains in IT and pharmaceutical shares. The barometer index, the SP BSE Sensex, and the 50-unit CNX Nifty, both, hit record high on intraday basis as well as on closing basis on that day. The SP BSE Sensex garnered 138.02 points or 0.53% to settle at 26,100.08, a record closing high.

Foreign portfolio investors (FPIs) bought shares worth a net Rs 198.57 crore on Monday, 7 July 2014, as per provisional data from the stock exchanges.

Asian stocks dropped on Tuesday, 8 July 2014 as earnings guidance from regional tech heavyweight Samsung came in well short of forecasts. Key benchmark indices in China, Taiwan, Singapore, South Korea, Hong Kong, and Japan were off 0.15% to 0.46%. Indonesia’s Jakarta Composite rose 0.85%.

US stocks fell Monday, 7 July 2014, on profit booking after indices hit record high last week.

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Market may edge higher in early trade