Evening Stock Market trading News 07 April



MARKET WRAP
The market was volatile. Key benchmark indices edged higher in early trade. Key benchmark indices trimmed gains after hitting fresh intraday high in morning trade. Key benchmark indices slipped into the red in mid-morning trade. Key benchmark indices extended losses and hit fresh intraday low in early afternoon trade. The Sensex, and the 50-unit CNX Nifty, both, hit their lowest level in more than a week. The Sensex languished in the negative terrain in mid-afternoon trade as European stocks dropped in early trade there. Volatility ruled the roost as key benchmark indices trimmed losses in late trade.
The Reserve Bank of India conducted two term repurchase auctions on Friday, 4 April 2014, to add cash to the banking system. 
On the political front, the Bharatiya Janata Party (BJP) today, 7 April 2014, accused its main political rival, Congress, of driving away investors during its decade in power and promised more business-friendly policies if it wins Lok Sabha polls. In its election manifesto, released today, 7 April 2014, in New Delhi, the BJP attacked the incumbent Congress-led government for using 'tax terrorism' against companies. The BJP said it would provide a non-adversarial administration and simplify the country's complicated tax laws. The BJP said that economic revival will be the party's priority if it comes to power after elections. In its manifesto, the BJP has promised faster infrastructure development, job creation and measures to control inflation. The BJP said that it will bring on board all state governments in adopting the GST, addressing all their concerns. The party also promised a massive low cost housing program.

European market edged lower on Monday, 7 April 2014, as technology shares tumbled following a selloff in America. Key benchmark indices in UK, France and Germany were off 0.46% to 1.07%. A monthly meeting of the Monetary Policy Committee of the Bank of England's (BoE) for monetary policy review is scheduled on Thursday, 10 April 2014.


NEWS UPDATES

Cement stocks in demand
Shares of 11 cement makers rose by 0.10% to 3.05% at 14:57 IST on BSE on consolidation hopes after media reports suggest the world's two largest cement makers, France's Lafarge and Holcim of Switzerland, agreed the terms of a merger. Prism Cement (up 3.05%), UltraTech Cement (up 2.97%), Jaiprakash Associates (up 2.65%), Ambuja Cements (up 2.02%), Switzerland's Holcim unveiled an all-share deal to buy France's Lafarge to create the world's biggest cement maker with combined sales of 32 billion euros. Lafarge and Holcim of Switzerland, agreed the terms of a merger that would reportedly create a company with a market value of around $55 billion. The new entity, worth just under $60 billion, will see 53% shareholder control for Holcim and 47% for Lafarge.

Sun Pharma buys Ranbaxy for $3.2
India’s top drug makers Ranbaxy Laboratories Ltd and Sun Pharmaceuticals Industries Ltd said on Monday that the latter would acquire the former in a deal worth $3.2 billion, creating the world’s fifth largest generic drug maker. Sun Pharma will acquire 100% stake of Ranbaxy in an all-stock deal under which Ranbaxy shareholders will receive 0.8 share of Sun Pharma for every share they hold in Ranbaxy, which has come under regulatory fire from the US Food and Drug Administration (FDA). Ranbaxy is currently owned by Japanese drug maker Daiichi Sankyo Co. Ltd with around 68% stake. After the merger, Daiichi Sankyo will become the second largest shareholder in Sun Pharma.


GMR Infra gains as consortium awarded airport project
GMR Infrastructure rose 5.6% on NSE after the company said that its consortium with Megawide has been formally awarded the Mactan-Cebu International Airport rehabilitation, expansion and operation project. GMR Infrastructure and Megawide Construction will combine their expertise and track record to transform the Mactan-Cebu International Airport into a world-class facility. GMR Infrastructure is a global infrastructure major with interests in airports, energy, highways and urban infrastructure sectors.


RCom, Reliance Jio sign intra-city infra sharing pact
Reliance Jio could use RCom's retail network where it will use consumer touch points to market their products as well as collect bills,  RelianceJio is in discussions with younger brother's Reliance Communications to more pacts to 'co-operate' more. While announcing their third pact today where RCom will share its intra-city optic fiber backbone with Jio, they also said that they will look at more such pacts. These talks which are being held at high levels could be with regards to sharing RCom's retail network where Jio will use the consumer touch points to market their products as well as collect bills.

Godrej Properties to develop township project in Bangalore
Godrej Properties has entered into a partnership to develop a 100-acre township in Bangalore. Godrej Properties Ltd, the real estate development arm of the Godrej Group, has entered into an LLP (limited liability partnership) to develop a residential township project in North Bengaluru, The 100-acre project would offer a potential saleable area of about 9.4 million sq ft. Like other projects, this township would be developed as a profit sharing partnership.

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