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Monday, 20 November 2017

20 November 2017 - Views & News

MARKET UPDATE

Sgx Nifty  +5 pts  ‎Dow -100.12 pts ,Nsdq -10.50 pts , S&P -6.79 pts, Bovespa +925 pts , Ftse -6 pts , Dax -53 pts , Cac -17 pts , Nikkei -100 Pts now , Crude @ $56.58 brl (-0.13), Brent @ $62.73 brl (+1.37) , Gold @ 1293.66 (-0.75), Silver @ $17.267 (-0.03), Euro @ $1.1732, JPY @ $112.0400, INR @ $64.915

Today's Corporate Action 20th Nov Ex Date

AMARAJABAT Interim Dividend - Rs. - 2.0000
ASTRAL Interim Dividend - Rs. - 0.2500
GRANULES Interim Dividend - Rs. - 0.2500
JOSTS Right Issue of Equity Shares 
LALPATHLAB Interim Dividend - Rs. - 1.5000
SEQUENT Interim Dividend - Rs. - 0.2000
SONATSOFTW Interim Dividend - Rs. - 3.7500
TIDEWATER Interim Dividend - Rs. - 75.0000
TRITURBINE Interim Dividend - Rs. - 0.4500
YASHCHEM Interim Dividend - Rs. - 0.3500

TOP NEWS

ALERT: Cement Sector: Ban on petcoke usage as fuel in North India to curb pollution to negatively impact cement companies – Negative as would mena higher power & fuel cost; hardest hit would be Shree Cement, Ultratech and JK Lakshmi

ALERT: Sensex Index Rejig:  Yes Bank and IndusInd Bank would replace Lupin and Cipla in Sensex Index with effect from 18th December 2017 – positive for Yes bank and IndusInd

ALERT: Automobiles: Discounts jump to 20% in commercial vehicles segment; negative read thru for Tata Motors; Ashok Leyland and EIcher Motors…(Details in other news)

ALERT: Logistics Sector: The logistics sector will soon get the infrastructure status, which would help the segment raise funds at competitive rates and boost external trade as per media reports. Positive for Container Corporation of India, Gateway Distriparks, Allcargo among others

Wipro: Share buyback offer to open on 29th November – the impressive buyback program will support the modest valuation multiple in near term, however we are cautious on its revenue trajectory (continuously lags from its peers) – advice investors to tender the shares in the buyback
Wipro announced its Rs11,000 crore buyback offer will open on 29th November and end on 13th December. Wipro is buying back over 34.4 crore shares (7.1% of total equity shares) at Rs 320 per share.

Infosys: Share buyback offer to open on 30th November – Higher payout in terms shares buyback/dividend (expects to pay-out up-to 70% of the FCF going ahead) to provide support to the stock– advice investors to tender the shares in the buyback, guaranteed acceptance ratio is around 25% , but we belive the final acceptance ratio  will be much higher.
Infosys said its Rs13,000 crore buyback offer will open on 30 November and end on 14 December. Infosys is buying back over 11.30 crore shares at Rs 1,150 per share. Share buybacks would improve EPS and return surplus cash to shareholders.

Sun Pharma: As per media reports, USFDA has completed the inspection of Sun Pharma’s Baska unit and issued form 483 with one observation – Positive for Sun; await conformation from the Company; focus will now be on Halol plant resolution.

Biocon: gets Establishment Inspection Report (EIR) from the USFDA for its Bangalore facility (inspected between 25th May 2017 – 3rd June 2017). The FDA has classified  the outcome as Voluntary Action Indicated (VAI) and the EIR states that the inspection is closed – Positive for Biocon; VAI indicates no further escalation of Form 483 to Warning letter/Import Alert; no filing approvals shall be affected.

Strides Shasun: Eris Lifescience acquires Strides Shasun’s domestic business for Rs 500 crore, in an all cash deal (transaction involves only domestic brands of Strides which generated sales of Rs 181 crores in FY2017). Proceeds from the transaction would be used to pay down about Rs 400 crore in debt – Neutral read thru.

Vadilal - The promoters of the company India’s oldest icecream brand, may be looking to exit the company; promoters hold 65% stake in the company and are looking at valuation of Rs600crore (i.e. ~Rs925crore for 100% stake; current market cap is Rs740crore) –stock will be in focus

Ashok Leyland: Subsidiary Hinduja Leyland Financial eyes strong 35% income growth in FY18; may consider fund raising next year; positive

Maruti Suzuki: Toyota, parent Suzuki to introduce electric vehicles in India in 2020; positive read thru

L&T: has won a major order worth Rs8,650 crores to build Mumbai Trans Harbour Link; Positive…(Details in other news)

Jain Irrigation Systems: Fire at warehouse of dehydration unit – no material adverse impact expected
On Saturday, fire broke out in Onion dehydration warehouse of Jain Farm Fresh Foods, subsidiary of the company. The production facilities were not at all impacted. The fire has resulted in loss or damage of certain quantity of finished dehydrated onions and packing material. The whole warehouse building is also destroyed. Total value of damage is ascertained. As per management, this fire and consequent damage is not expected to have any material adverse impact on company’s operation.

OTHER NEWS

Moody’s upgrades ratings of Indian oil PSUs; sentimentally positive
Moody’s has upgraded foreign currency issuer rating for IOCL, BPCL, HPCL and Petronet LNG to Baa2.  For ONGC, foreign currency issuer rating has been upgraded to Baa1 from Baa2 – sentimentally positive for IOCL, BPCL, HPCL, Petronet LNG and ONGC. 

Fertiliser: The government will introduce DBT of fertiliser subsidies in five more states- Positive for fertiliser companies such as Chambal fertilisers, Coromandel International,RCF, GNFC and GSFC.  
The government will introduce DBT of fertiliser subsidies in five more states, including Punjab and Haryana in Dec-2017. In Oct-17 the DBT facility for fertiliser subsidies was rolled out in 14 states and Union Territories (UTs). DBT is likely to reduce the time lag in subsidy payments and cut the working capital burden on companies.

Ashok Leyland: Subsidiary Hinduja Leyland Financial eyes strong 35% income growth in FY18; may consider fund raising next year; positive
Hinduja Leyland Financial, subsidiary of Ashok Leyland is expecting around Rs 2,000 crore income by end of FY2018 as against Rs 1,486 crore in FY2017. Almost 40% of its portfolio is commercial vehicles, about 10%  each in two-wheelers, loans against propety and three wheeler lending and the rest in used vehicles and other segments. It also finances tractors and construction equipment. It aims to end FY2018 with Rs 20,000 crore of asset under management, from around Rs 10,000 crore last year. The company may consider fund raising early next year, though the details are to be approved. The funds would be raised to meet growth requirements.

Automobiles: Discounts jump to 20% in commercial vehicles segment; negative read thru for Tata Motors; Ashok Leyland and EIcher Motors
Truck, bus manufacturers and their dealers are shelling out steeper discounts. Some major players camouflage discounts in offering freebies and spare parts for those fleet owners opting out for three to five years’ annual maintenance contracts (AMC). The price discounts on commercial vehicles gained momentum during the last three-four years. In fact, discounts were offered to the tune of Rs 3 lakh to Rs 5 lakh per vehicle to strike lucrative deals and gain market share. Increased levels of discounting despite turnaround in CV cycle is alarming and would impact the profitability of CV players viz Tata Motors, Ashok Leyland and Eicher Motors.

Maruti Suzuki: Toyota, parent Suzuki to introduce electric vehicles in India in 2020; positive read thru
Maruti’s parent Suzuki Motor Corporation (SMC) finalised an agreement with compatriot Toyota Motor Corporation (TMC) to introduce electric vehicles in India around 2020. As per the agreement arrived at, Suzuki will manufacture electric vehicles for the Indian market and will also supply some vehicles to Toyota. Toyota will provide technical support in this venture. Apart from batteries, electric motors and major components for electric vehicles will be procured locally. The companies will also undertake a comprehensive study of activities for widespread acceptance and use of electric vehicles in India which include setting up of charging infrastructure, training of personnel for after-sales service and systems for appropriate treatment of end-of-life batteries. 

Automobiles: Passenger vehicle exports under pressure as GST refunds get stuck up: Negative for PV exporting companies however Maruti likely to have limited impact
PV exports from India have been impacted by GST as manufacturers are unable to file claims since July 2017 and the pending receivable amount has crossed over Rs 1,000 crore. As per the media report, under the current GST system of making payments upfront and then claiming input tax credit refund is not functioning properly and this has resulted in accumulation of GST credit, which in turn has led to stretched working capital cycles for auto manufacturers. While export focused PV players like Volkswagen and Ford have been severely impacted; Maruti is unlikely to have material impact as exports contribute about 6% of overall sales. Morever the company is currently facing capacity constraints and any pressure on exports will free up capacity which can be diverted to domestic  market.

Raymond: aims to double FMCG turnover to Rs 1,000 crore in 3-4 years – positive read through for the stock
Raymond is sharpening its focus on FMCG business as it plans to double turnover to Rs 1000 crore over the next three-four years. The company will take the Park Avenue range of men's grooming products to global markets like West Asia, Bangladesh and Nepal to begin with and then to Sri Lanka, Bhutan and Myanmar in the second phase. It has a strong presence in the Rs 1,500 crore-men's deodorant category, with Park Avenue garnering a share of 10-11 per cent and KS enjoying a market share of 4-5 per cent. 

TVS Motor: expects demand in South India to revive; to expand distribution reach; positive
TVS Motors is banking on rural buying in south India to sustain its double-digit growth momentum and plans to invest Rs 600 crore to expand its product range and distribution network. TVS Motor’s two-wheeler sales grew 14% in H1 FY2018, exceeding the market rate. With good rains in Karnataka over the last couple of months, fairly decent rain in Tamil Nadu in October and hopefully in November, the strong demand in rural areas of South India will come back in Q3FY2018. The company added 150 dealers in H1FY2018 and currently has 4,200 dealers/sub-dealers. 

L&T: has won a major order worth Rs8,650 crores to build Mumbai Trans Harbour Link; Positive
L&T’s heavy civil infrastructure business vertical has won a major order worth Rs 8,650 crore from MMRDA for the construction of Mumbai Trans Harbour Link (MTHL. The project involves construction of a 21.8km bridge connecting Mumbai mainland with Navi Mumbai.

Electrical consumer sector: IFB Industries Mirc Electronic and Whirlpool  to be in focus- Government looks to cut GST on white goods; positive
The government is now looking to reduce goods and services tax (GST) on consumer durables like washing machines and refrigerators from the current level of 28% as part of the next round of rationalisation. While the move is expected to help push demand in the sector, amid repeated complaints of a slowdown and excess capacity. Positive

Indian Oil Corporation (IOCL):  Has opened India’s first electric vehicle (EVs) charging station at a petrol pump in Nagpur in collaboration with Ola (online cab aggregator). The market for electric vehicle is at nascent stage in India but the step seems in right direction as Indian government aims to make India 100% EV nation by 2030 – sentimentally positive for IOCL.

Bharti Airtel: Entered into a partnership with Ericsson for 5G technology
Ericsson announced it has partnered with Bharti Airtel for 5G technology for the India operations. As part of the partnership with Airtel, Ericsson will work with Bharti Airtel on creating a strategic roadmap for evolution of the network to the next-gen 5G technology.

  MORE NEWS

Naik recalls takeover bids from Ambanis, Birla
SBI to start using blockchain for smart contracts, KYC
IRP nod must for recovering from defaulter's a/c: NCLAT
I-T slaps criminal charges under anti-black money Act
China to join India's International Solar Alliance
Royal Enfield unveils Interceptor, Continental GT 650
Wipro BPS unit hits 2020 target of $1 billion
Toxic assets: Soon, ordinance to block defaulters from bidding
Govt may grant infrastructure status to logistics sector
India moves up one notch to 126 in per capita GDP terms, says IMF data
Budget deficit may rise in FY18 but will improve in years ahead: Moody's
Govt seeks Rs 13,000-cr surplus from RBI
Govt not to sell Cairn Energy shares to recover Rs 10,247-cr tax
FPIs infuse over $2 bn in equity markets so far this month
Plea against Govt's stake sale in Dredging Corpn 
SAIL to diversify product range
Domestic stainless steel production to touch 3.6 mt by year-end
‘Digital payments are making financial services more affordable’ 
India’s global exchanges await the ‘GIFT’ of rupee futures trade
Goldman Sachs sees four 2018 Fed rate hikes as US growth gains
NSE SME to touch 100 mark, 50 IPOs likely in next 6 months
Sebi chief says norms for IRPs soon
Eris to buy Strides Shasun’s India branded business for Rs500 crore
Telecom Commission to consider IMG recommendations next month for final nod
ArthaKranti’s banking tax not singularly superior, says NIPFP report
Black money: Swiss Parliamentary panel paves way for automatic information exchange with India
India’s holdings of US government securities jump to $145 bn
Automobile exporters under pressure as GST refund gets stuck
Urban Ladder sets time line for profitability, IPO
Real estate awaits return of FDI wave
Discounts jump to 20% in commercial vehicles segment
Canada protests India’s imposition of 50% levy on import of yellow peas
Trai likely to back Reliance Jio’s cashback offers

Friday, 17 November 2017

17 November 2017 - Views & News

MARKET INSIGHT

Nifty is likely to gap up opening on Friday after Moody's Investors Service upgraded India’s sovereign rating to Baa2 from Baa3 and changed the outlook to stable from positive.

Nifty Spot Levels

Support 10183 – 10089

Resistance  10300 - 10368

MARKET UPDATE

Sgx Nifty  +46 pts ‎Dow +187.08 pts ,Nsdq +87.08 pts , S&P +21.02 pts, Bovespa +1685 pts , Ftse +14 pts , Dax +70 pts , Cac +35 pts , Nikkei +385 Pts now , Crude @ $55.22 brl (-0.04), Brent @ $61.38 brl (+0.02) , Gold @ 1279.37 (+0.67), Silver @ $17.074 (+0.01), Euro @ $1.1778, JPY @ $113.0300, INR @ $65.220

GLOBAL MARKET

• Asian shares rose on Friday as strong US earnings and a step forward in the US Congress on tax reform brightened the mood, even though investors noted that many more hurdles must be passed to reach a final deal on tax cuts.
• MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.1 percent while Japan's Nikkei gained 0.9 percent, extending its recovery from a near three-week intraday low hit the previous day.
• Wall Street's main indexes rose sharply on Thursday, boosted by strong gains in Wal-Mart and Cisco following their earnings.
• The S&P 500 advanced 0.82 percent to turn positive for the week, a day after hitting a three-week low, while the Nasdaq Composite added 1.3 percent to a closing record high of 6,793.29.

Today's Corporate Action 17th Nov Ex Date

CUPID Interim Dividend - Rs. - 2.0000
HGS Interim Dividend - Rs. - 2.5000
INGERRAND Interim Dividend - Rs. - 3.0000
MASFIN Interim Dividend - Rs. - 1.5000
SUNTV Interim Dividend - Rs. - 2.5000
TAKE Interim Dividend - Rs. - 0.3000


RESULTS TODAY

AICHAMP, FACT, JENSONICOL, JMTAUTOLTD, KALYANIFRG, KARMAENG, MAYURUNIQ, SALZERELEC, SCHAND, ZODIACLOTH

TOP NEWS

ALERT: Moody’s has upgraded India’s sovereign rating to Baa2 from Baa3 with stable outlook. The rating upgrade is driven by reforms undertaken by the government that would result in strong growth in the economy over the longer term – View: Positive for equities; but more importantly, it would ease pressure on bond yields and fixed income should rally (especially gilt funds and dynamic bond funds). The move will also result in appreciation of the rupee and is sentimentally negative for exporters like IT Services, Pharma and stocks like Arvind Limited, Va Tech, AIA Engg among others

Petronet LNG: Plans to build small plants to liquefy natural gas from isolated gas fields and sell the gas to trucks and buses as per media reports; prima facie seems positive but execution remains key
Petronet LNG plans to build small plants that will liquefy natural gas from gas fields, which have limited access to pipeline infrastructure in the country as per media reports. The company will then sell the gas to trucks and buses as part of its strategy to explore LNG as auto fuel. Prima facie the development seems positive for Petronet LNG but as of now there are no details about the capex involved for setting-up of liquefaction plants, potential demand for LNG as auto gas and which are the gas fields Petronet LNG targets to tap.

Petronet LNG: RBI increases Foreign Portfolios Investors limit in Petronet LNG Ltd to 49% from 30% - sentimentally positive for Petronet LNG.

Banks, Housing Finance Companies: Cabinet has approved increase in carpet area of houses eligible for interest subsidy under the Credit Linked Subsidy Scheme (CLSS) for the Middle Income Group ( MIG) under Pradhan Mantri Awas Yojana ( PMAY). For MIG I, the existing carpet area of 90 sq mt (968.752 sq ft) will be increased to 120 sq mt ( 1291.668 sq ft.) and instead of 110 sq mt (1184.03 sq ft) for MIG II category, it will now be 150 sq mt ( 1614.585 sq ft). These changes will be effective Jan 1, 2017, the date when it was initially implemented.- Positive read thru as this will increase the ambit of the subvention scheme and is positive for loan offtake. the move makes the affordable housing scheme accessible to many people living in urban areas now

Ashok Leyland: To acquire 4.68% stake in Hinduja Leyland Finance Ltd for Rs 225 cr; positive….(details in other news)

CESC: UPERC declined to approve Chandrapur project long term PPA; sentimentally negative for CESC
The Uttar Pradesh Electricity Regulator (UPERC) has decline to approve 200MW bilateral long term PPA between Dhariwal Infra (100% subsidiary of CESC) and Noida Power (49.6% associate company of CESC). It has asked Noida Power to procure power via competitive bidding process. We believe the cancellation of the long term PPA to be negative for CESC as the losses in the Chandrapur power plant would increase. Currently we have a Buy rating on the stock with a SoTP price of Rs 1165 in which Rs 61 is contributed from Chandrapur plant in our valuation. 

Cox & Kings: SSG Capital Management has acquired 34.42% stake in Cox & Kings subsidiary Prometheon Holdings (UK) Ltd for valuations of 800mn Dollar ( Rs5,179 crore, Enterprise Value) to provide an exit for existing investor – Rohatyn group, which is at premium to its acquire price – stock will be in focus 

OTHER NEWS

Ashok Leyland: To acquire 4.68% stake in Hinduja Leyland Finance Ltd for Rs 225 cr; positive
Ashok Leyland: To acquire 2,04,92,676 shares of Rs.10/- each constituting 4.68% in the paid-up share capital of subsidiary Hinduja Leyland Financial Ltd at a price of Rs.110/- per share. The share purchase will amount to outflow of about Rs 225 cr.  Hinduja Leyland Finance is the captive financing arm and provides loans to CV customers of Ashok Leyland.  Consequent to the above, the Company's shareholding in HLFL will increase from 57.22% to 61.90%. Positive

M&M: To launch 350 cc motorcycle "Java"  in March 2019 for Indian market
Mahindra will launch Jawa 350cc motorcycle in India by March 2019. will be positioned against Royal Enfield Bullet. 400cc four-stroke single cylinder, however, both will still carry the 350 badge. Since two-strokes are banned in India, we are likely to get the single cylinder unit which makes 26 hp and 32 Nm of torque. While the bike will top out at 120 kmph.

Road Sector: NHAI is looking to raise funds by issuing bonds to senior citizens and pensioners as per media reports. NHAI board cleared the delegation of powers to the Expenditure Finance Committee to approve projects worth Rs2000 crore on its own. It also discussed the proposal of launching a Rs7000 crore masala bond issue in two tranches at the London Stock Exchange. Positive read thru for the sector including companies like IRB Infrastructure, KNR Constructions, Sadbhav Engineering, Ashoka buildcon among others.

Real Estate: Carpet area of affordable homes raised – positive read thru for sector (Godrej Properties, Puravankara Projects, Ashiana Housing, among others)
The Union Cabinet increased the carpet area of affordable houses eligible for interest subsidy under the Credit Linked Subsidy Scheme for the Middle Income Group under the Pradhan Mantri Awas Yojana. Under the MIG I category of CLSS, the carpet area will be increased up to 120 sq metre from 90 sq metre and for MIG II it is increased to 150 sq metre from 110 sq metre. The decision will be retrospectively implemented effective from January 1, 2017. Positive read thru for the realty sector involving companies like Godrej Properties, Puravankara Projects, Ashiana Housing, among others

Cochin Shipyard: The company will begin work on its Rs970 crore International Ship Repair Facility today as per media reports. Positive read thru for the stock.

HPL Electric Power & Genus power: stock to remain in focus- Government to push prepaid, smart meters in universal electrification drive; positive  
Prepaid and smart meters are going to get greater thrust from the government as India moves towards the target of achieving universal household electrification as part of the Saubhagya scheme by end of next year. The government is planning to provide prepaid facility for electricity where the consumer can recharge for as small an amount as Rs 50.  Prime Minister launched the Saubhagya scheme to electrify four crore un-electrified households in the country by December 2018. The scheme has an outlay of Rs 16, 320 crore, including budgetary allocation of Rs 12,320 crore.

STOCK IN NEWS

1. Ashok Leyland to acquire 4.68 percent stake in Hinduja Leyland Finance at Rs 110 per share, valued at Rs 225.42 crore. Increases stake to 61.9 percent.
2. RBI said FPI limit In ICICI Lombard increased to 49 percent from 24 percent.
3. RBI said FPI limit In Edelweiss Fin increased to 49 percent from 40 percent.
4. RBI said FPI limit In Petronet LNG increased to 40 percent from 30 percent.
5. JSW Energy to be out of F&O from February series.
6. Bank of Baroda to consider raising up to Rs 6,000 crore through a QIP, Rights Issue on Nov. 21.
7. Vascon Engineers to sell Mumbai division of its subsidiary GMP Technical Solutions for Rs 18 crore in a slump sale.
8. Mercator aims to begin oil production by H1 2018 at Cambay basin oil block.
9. PVR to acquire minority stake in U.S. based luxury restaurant-and-theater company iPic.

Thursday, 16 November 2017

16 November 2017 - Views & News

MARKET INSIGHT

Markets are expected to open flat to positive. 10100-10089 is a key support zone for the index, where it has halted yesterday. There is scope for a bounce back if bulls continue to defend the support zone. Breach of the support zone on closing basis, however, would be an indication of a deeper cut in the index.

Nifty Spot Levels

Support 10100 – 9994 – 9955
Resistance  10223 – 10344 - 10403

MARKET UPDATE

Sgx Nifty  -8 pts ‎Dow -138.19 pts ,Nsdq -31.66 pts , S&P -14.25 pts, Bovespa Clsd , Ftse -41 pts , Dax -57 pts , Cac -14 pts , Nikkei +109 Pts now , Crude @ $55.30 brl (+0.00), Brent @ $61.84 brl (-0.04) , Gold @ 1279.62 (+1.32), Silver @ $16.987 (+0.01), Euro @ $1.1783, JPY @ $112.7700, INR @ $65.303

GLOBAL MARKET

• US stocks fell on Wednesday as energy sector shares dropped for a fourth straight session, tracking crude prices, while a late run-up was thwarted by concerns over the passage of a tax revamp after Republican senators were critical of the proposal.
• Oil prices fell for a fourth session after data showed an unexpected increase in crude and gasoline stockpiles. 
• The S&P 500 energy sector notched a four-day decline of 4 percent, its weakest such period in 14 months.
• The Dow Jones Industrial Average fell 138.19 points, or 0.59 percent, to close at 23,271.28
Today's Corporate Action 16th Nov Ex Date

AMRUTANJAN Interim Dividend - Rs. - 1.1000
BALKRISIND Interim Dividend - Rs. - 2.5000
BHARATFORG Interim Dividend - Rs. - 2.0000
BRNL Interim Dividend - Rs. - 0.5000
DCMSHRIRAM Interim Dividend - Rs. - 4.0000
GABRIEL Interim Dividend - Rs. - 0.5000
GDL Interim Dividend - Rs. - 3.0000
GMM Interim Dividend - Rs. - 0.7000
HESTERPH Interim Dividend - Rs. - 4.0000
KITEX Interim Dividend - Rs. - 0.7500
MANAPPURAM Interim Dividend - Rs. - 0.5000
MENONBE Interim Dividend - Rs. - 0.5000
NILKAMAL Interim Dividend - Rs. - 4.0000
PAGEIND Interim Dividend - Rs. - 35.0000
ULTRACAB Interim Dividend - Rs. - 0.1000

RESULTS TODAY

AHLUCONT, GATI, HONDAPOWER, MATRIMONY, MOLDTECH, MUKANDENGG, MUKANDLTD, PODDARMENT, SHIVTEX, XPROINDIA

TOP NEWS

Maruti Suzuki: Refreshed S-Cross receives strong response; gets 11,000 bookings in less than 2 months; positive read thru …..(details in other news)

Divis: As per media reports, Health Canada begins inspection of Divi’s Unit – 2 at Vizag – Stock to remain in focus; USFDA has recently lifted import alert for same plant; Unit-1 has a compliant status with Health Canada currently.

OTHER NEWS

IT Sector: Congressional committee votes to raise minimum salary for H-1B holders: - Though India IT companies have been increasing local hires and setting up US delivery centres, the minimum wage hike will have potential impact on their margins
Congressional committee voted to pass a legislation that proposes to increase the minimum salary of H-1B visa holders from $60,0000 to $90,000 and imposes number of restriction on the work visa. The bill now heads to the full House for necessary action.

Emami: is looking at inorganic opportunities in the ayurvedic segment in India as well as abroad and is hoping that its future growth would come from core brands and brand extensions – positive read through for the stock

Maruti Suzuki: Refreshed S-Cross receives strong response; gets 11,000 bookings in less than 2 months; positive read thru
Maruti’s recently launched the 2017 facelift model of S-Cross received an overwhelming response. The single-largest change of all in the new S-Cross is the design, especially at the front, which has been given a makeover and now looks quite European. Customers seem to have accepted this change well with the 2017 Maruti S-Cross has earning 11,000 bookings so in a matter of less than 2 months

Bajaj Auto: Partner KTM to introduce Husqvarna bikes; aims at healthy double digit growth in medium term and double India output; positive read thru 
Bajaj Auto partner KTM (Bajaj has 49% stake in KTM) is aiming to nearly double output from India. It’s looking at making 1.8-1.9 lakh units in India in the next three to five years with the country contributing 45% to its global sales. KTM, which acquired Husqvarna brand a couple of years ago, expects the brand to grow big in India much like KTM.  The new 125-400 range of Husqvarna bikes will be made out of Chakan by end of 2019 and Bajaj Auto is likely to set up two more assembly lines in the coming years. KTM is aiming to sell over 4 lakh units globally in next few years as against 2.4 lakh units expected in 2017. Its production base in India already accounts for 40% of KTM’s global sales at about 95,000 units to 1 lakh units 

PSU Banks: As part of the recapitalisation exercise, the Finance Ministry has asked State-owned banks to submit their board-approved roadmaps for raising funds and strengthening core activities in about a month. - Sentimentally positive

RBL Bank: The company has acquired additional 2.08% stake in Swadhaar FinServe, thereby increasing the shareholding in Swadhaar to 60.48% - Neutral Read thru for RBL bank

Federal Bank: The bank is looking at making a strategic investment in a microfinance enterprise. It is also evaluating opportunities in the asset management business and divest stake in its wholly owned subsidiary FedBank Financial Services- Sentimentally Positive

Automobiles: EESL (Energy Efficiency Services Limited) is likely to hold next round of electric vehicle tendering in the first half of 2018 (March – April 2018) and would be for 10,000 cars. This is positive for  players like M&M and Tata Motors who have already successfully won bids in the earlier tender


RESULTS TODAY

Airtel stake sale in Infratel credit positive: Moody's
Sebi attaches Mallya co's a/cs, MF units, securities
Ensure GST cuts passed on to consumers: Centre
Demand for quality goods/services up in rural India: SBI
Sebi likely to cut listing time to three days from six
Digital world to create new, highly skilled jobs: Kant
Apple gives limited option to Trai for building DND app
100 Indian firms have invested $17.9 bn in US
Non-farm activities contribute two-third income in rural areas: Paper
Steel Ministry urges FinMin to remove import duty on stainless steel scrap
Rupee surges 21 paise to end at 65.21 on falling crude prices
Airbus inks $50-bn deal to sell 430 planes to US firm Indigo Partners
HMT swings into black, logs Rs. 59 lakh profit in Q2
GSTN utility for exporters to claim refunds gets activated
Infibeam gets RBI nod, eyes B2B payment platform, GeM for big bucks 
Crisil to acquire data analytics firm Pragmatix for ₹56 crore 
NCLAT issues notice to RCom over Manipal Technologies ‘dues’ 
Sebi allows multilateral entities to issue securities in IFSC
Delhi to get BS-VI fuel two years early to tackle pollution
ONGC Videsh’s Q2 profit rises 15% to Rs280 crore on higher production
Value of India M&A deals in 2017 seen at $46.5 bn, $52.8 bn in 2019
Godrej Industries’s Q2 profit rises 53% to Rs95 crore
Airbus seals $50 billion jet deal to outdo Boeing in Dubai
Government wants new MRP on 200 goods amid GST change
Arun Jaitley on Singapore visit to attract investments
Efforts of Railways, CIL bring record growth in coal offtake
Finance Ministry asks PSBs to submit fund-raising roadmap in a month
PM asks Niti to study pulses, oilseeds for self-sufficiency
Tractor firms eye 15.5% sales growth
FMCG cos gear up to pass on tax reduction benefit to consumers
 Advanced analytical tools help identify 3.71L undisclosed A/Cs
TCS bags 5-yr digital contract from Rolls

STOCK IN NEWS

Reliance Communication said it is not making any payment to lenders for time being.
CRISIL to buy entire stake in Pragmatix Services for Rs 56 crore.
NHAI terminates agreement with Atlanta for Gujarat project.
RBL Bank acquired additional 2.08 percent stake in Swadhaar Finserve, increasing its holding to 60.48 percent.
Manaksia Industries to set up wholly-owned subsidiary in India and Tanzania for its agro-commodities business.
ONGC said that Venezuela’s state-run PDVSA is committed to the arrangement with ONGC Videsh.
Seamec approved scheme of demerger of EPC and Vessel division of HAL offshore into itself.
Suzlon eyeing $250 million from stake sale in unit
Federal Bank in the process of divesting 26 percent stake in its fully-owned NBFC arm Fedfinas

Wednesday, 15 November 2017

15 November 2017 - Views & News

TOP NEWS

Laurus Labs: Laurus labs has received Establishment Inspection Report (EIR) from USFDA for its Unit 1 and Unit 3 plants located at Visakhapatnam - Positive for Laurus; we have re-iterated a positive view on the stock (on November 13, 2017).
EIR indicates the closure of inspection. Both the units that manufacture active pharmaceutical ingredients (API) were inspected by US FDA in August 2017 and got two observations which were of procedural in nature.

NBCC: Lenders ask NBCC to develop defaulters' land; positive
Banks and financial institutions have approached NBCC (India) Limited, to develop some of the land assets that have been pledged with them by the promoters of defaulting firms. This comes at a time when the government is pushing the banks to look at faster resolution of stressed assets and also look at all measures before taking a substantial haircut. NBCC would develop these properties and would earn PMC fee of 6-7%. Positive for the NBCC.

Cox & Kings: registered strong operating performance at consolidated level in the Q2FY2018 with OPM margins standing at about 53% in Q2FY18 as against 38% in Q2FY17 (revenues on comparable basis grew by 8%). The adjusted PAT stood at Rs204.0crore as against Rs84 crore in Q2FY17 (grew by 2.5x) largely on account of strong improvement in the operating margins – positive read through for the stock

Tyres: Rubber prices decline 15% in international markets and 7% in the domestic markets in the last two months. Rubber prices are currently at a one year low. Rubber forms about 45% of overall raw material costs for tyre makers. Positive for Apollo Tyres, Balkrishna Industries, Ceat, JK Tyres and MRF.

Camlin Fine Sciences: has entered into a preferred long term supply agreement (till 2025) with global defense company, Lockheed Martin to supply speciality chemicals – Positive; details not available but stock to react positively and this could be game changing event for Camlin Fine Chem


 OTHER NEWS

Road Sector: The government plans to double (upto 10% of project cost as bonus compared to 5% at present) the incentive for contractors finishing their work ahead of schedule to fast track the completion of national highways as per media reports. Positive read thru for the sector including companies like IRB Infrastructure, KNR Construction, Sadbhav Engineering, Ashoka Buildcon among others

Tata Motors: JLR to manufacture Jaguar F Pace in India for local market; positive read thru. 
JLR announced the start of local manufacturing of Jaguar’s first performance SUV, the F-PACE, in India. Available in the Prestige derivative, the locally manufactured 2018 Model Year F-PACE is priced at ₹ 60.02 Lakh (ex-showroom, pan India). Powering the performance SUV are two diesel engine options – a 2.0 L and larger 3.0 L unit. Both engines are the new age Ingenium mills that have been developed by Jaguar for higher fuel efficiency, lower emissions and better power delivery. 

Apollo Tyres: lines up Rs 4,500-crore overall capex for next two years; to enhance capacity in India and Europe operations
Apollo Tyres has planned a capital expenditure (capex) of Rs 4,500 crore for financial years 2017-18 and 2018-19. The proposed capex includes setting up a new unit in India and expanding the existing facilities in Chennai and Hungary. Apollo is looking to set up a greenfield facility for passenger car tyres, where Apollo is facing capacity constraints. The company expects its greenfield to be ready by 2019-20, which will manufacture, to start with, passenger car tyres. 

Logistics sector: The export of goods in October 2017 declined by 1.2% to USD23.09 billion while imports increased 7.6% during the month to USD37.11 billion. The export-import imbalance is negative read thru for logistics companies like Container Corporation of India, Gateway Distriparks.

HCL Tech: Signs a five year contract with JLT Group
HCL Tech has signed a five–year IT infrastructure services contract with Jardine Lloyd Thompson Group (JLT). As part of the deal, HCL will implement an automated cloud management platform with advanced automation capabilities. HCL will also continue to provide IT service desk services to the company. HCL has been JLT’s infrastructure services partner since 2010, working on the group’s IT systems and processes, which support over 10,000 employees in more than 40 countries.

L&T Infotech: To buy banking solution provider Syncordis S.A. for 15 million euros – stock to remain in focus
L&T Infotech (LTI) would acquire Luxembourg based Syncordis S.A., a leading core banking implementation services provider for 15 million euros. LTI would acquire the firm along with its subsidiaries in France, UK, Luxembourg and India. In addition to the upfront cash consideration, 13.5 million euros may be payable over four to five years and that is contingent on the performance of the entity. Syncordis’ revenue stood at 12.04 million euros in 2016.

Tuesday, 14 November 2017

14 November 2017 - Views & News

MARKET INSIGHT

Markets are expected to open weak. Breach 40 DEMA – 10182 level support on closing basis would turn the structure in favor of the bears from short term perspective. Till then the short term bias remains positive.  

Nifty Spot Levels

Support 10200 – 10130 – 10089
Resistance  10285 – 10344 - 10403

MARKET UPDATE

Sgx Nifty  -7 pts ‎Dow +17.49 pts ,Nsdq +6.66 pts , S&P +2.54 pts, Bovespa +309 pts , Ftse -17 pts , Dax -53 pts , Cac -39 pts , Nikkei +44 Pts now , Crude @ $56.73 brl (-0.01), Brent @ $63.13 brl (-0.01) , Gold @ 1278.06 (-0.34), Silver @ $17.018 (-0.01), Euro @ $1.1665, JPY @ $113.5900, INR @ $65.448

GLOBAL MARKET

• US stock indexes rose on Monday as a sharp drop in General Electric shares was more than offset by gains in high dividend-paying sectors including consumer staples and utilities.
• Investors are closely tracking developments around the tax bill after U.S. Senate Republicans last week unveiled a new plan that differed from the House of Representatives' version.
• The Dow Jones Industrial Average rose 17.49 points, or 0.07 percent, to 23,439.7.

Today's Corporate Action 14th Nov Ex Date

LTTS Interim Dividend - Rs. - 4.0000
SHRIRAMCIT Interim Dividend - Rs. - 6.0000

RESULTS TODAY

3MINDIA, AIAENG, , AMBIKCO, ANANTRAJ, ANDHRACEMT, BANKBARODA, BASF, BATAINDIA, BHUSANSTL, BRFL, CADILAHC, CAPTRUST, CEATLTD, CONSOFINVT, CORPBANK, COX&KINGS, DAAWAT, DBREALTY, DIXON, DSKULKARNI, EICHERMOT, ELGIEQUIP, EROSMEDIA, ESSARSHPNG, FORTIS, GAIL, GANESHHOUC, GAYAPROJ, GITANJALI, GMRINFRA, GODREJIND, GRASIM, GTLINFRA, GULFPETRO, HANUNG, HDIL, HINDCOMPOS, IBREALEST, ICIL, ICSA, IFCI, INDRAMEDCO, INFIBEAM, IPCALAB, ITDC, IVRCLINFRA, JBFIND, JINDALPHOT, JINDCOT, JKIL, JKTYRE, JMTAUTOLTD, JPASSOCIAT, JPOLYINVST, JSL, JYOTISTRUC, KALYANI, KANORICHEM, KARURVYSYA, KNRCON, KOHINOOR, KWALITY, LAKSHMIEFL, MANPASAND, MCDHOLDING, MEP, MERCATOR, MERCK, MOIL, MONNETISPA, MRPL, MTNL, NBCC, NCC, OPTOCIRCUI, ORIENTALTL, PRATIBHA, PROVOGE, PSB, RELCAPITAL, RELIGARE, RUCHISOYA, SAKHTISUG, SEAMECLTD, SHANKARA, SHANKARA, SUNPHARMA, TATAGLOBAL, UNITECH, VIVIMEDLAB, VOLTAMP, WINSOME, ZYLOG.

TOP NEWS

Alert: Britannia Industries, Petronet LNG, Suprajit Engineering, Minda Industries:  has been added in MSCI Global Standard Index – positive read through for the stock

Sun Pharma:  Sun Pharma’s subsidiary Taro gets USFDA nod for Fexofenadine Hydrochloride oral suspension, used to treat seasonal allergy symptoms such as sneezing, runny nose, itchy throat, or itchy, watery eyes - Positive for stock

Bharti Airtel: Plans to sell 3.5% stake in Bharti Infratel of worth $400 million (Rs2,617 crore) at Rs400-415.5 per share - monetising infratel’s stake to reduce its debt position as well as fund for expansion of date networks – stock in focus
Bharti Airtel will sell a stake worth about Rs2,617 crore ($400 million) in Bharti Infratel, according to a deal term sheet. Nettle Infrastructure is offering to sell an about 3.5% stake in Bharti Infratel in a price range of Rs400-415.5 per share (price higher than last stake sell in august 2017). The price range is a 0-3.7% discount to Bharti Infratel’s yesterday closing price. The sale is scheduled to take place today. Bharti has been monetising its stake in Infratel gradually to pare debt, and improve cash flows to fund the investments to expand the 4G-led data network.

Havells India signs MOU with Hyundai Electric & Energy, South Korea; Positive
Havells India and Hyundai Elecric & Energy, South Korea signed MOU yesterday to mutually explore and supply low and medium voltage protection and switching devices. Under the agreement, Hyundai Electric will supply low and medium voltage protection and switching devices to Havells as brand labeling. Hyundai Electric will also grant manufacturing license and technology transfer for low-capacity Magnetic Contractors (MC) and Molded Case Circuit Breakers (MCCB) to Havells and Havells will supply Miniature Circuit Breakers (MCB) & MC to Hyundai Electric.  


OTHER NEWS

Indian Oil Corporation Ltd (IOCL): Targets to commission 0.7mmt polypropylene facility at Paradip by June-2018 at a total capex of Rs3,150 crore. The commissioning of the unit would boost the margin of Paradip refinery – positive read through for IOCL.

ITC:  The company’s home grown chocolate brand Fabelle, which was first launched in Bengaluru 18 months ago as a Fabelle chocolate boutique in its ITC Gardenia hotel, will now be available for sale in smaller formats; the category will also gain the benefit of decline in GST rates to 18% from 28% earlier – positive for ITC’s Non-cigarette FMCG business

M&M: to launch utility vehicle Scorpio facelift
Mahindra is set to roll out a facelifted version of the Scorpio. The 2017 Scorpio gets cosmetic changes on the exterior and the interiors. It gets a redesigned 7-slot grille inspired from the Jeep Compass, chrome accents on fog lamps, silver scuff plate at the bumper. At the rear, it gets refreshed tailgate, parking sensors and a new set of taillamps. In addition, the SUV gets five-spoke alloy wheels and ORVM's with turn indicators. Under the hood, the 2017  Inside the cabin, the Scorpio will get an updated infotainment system that will be compatible with Android Auto and Apple Car Play. Also, the facelift Scorpio will get connected Apps, Ecosense App and a redesigned dashboard. Scorpio is likely to carry the same powertrain as in current generation Scorpio.

JP Associates: The Supreme Court directed the non-institutional directors of the company to appear in person on November 22 and furnish details of their personal assets. negative read thru for the stock.

Infosys: eyeing tie-ups for AI, data analytics
Infosys Ltd is looking to partner with companies that offer data analytics or artificial intelligence (AI) platforms, including IBM, but has no plans to abandon its own Nia platform. Infosys wants to scale up the business model that allows it to sell a cognitive platform that will help its Fortune 500 clients run their businesses more efficiently.

MORE NEWS 

Big tweak in insolvency law on cards
Airtel plans to raise $400 mn from Infratel stake sale
RIL takes corp bond route to cut Rs 2L cr debt
Qualcomm rejects Broadcom's $103 billion takeover bid
October retail inflation touches 7-month high 
Business confidence improves in Q4: D&B
India Inc hopes for more cheer from GST council
Rural roads scheme gets Rs 100,000 crore push
NMDC Q2 net rises 10% to Rs 844 cr, income surges
L&T walks a tightrope as new orders dwindle
Shell to sell part of its Woodside Petroleum stake for $1.7 bn
Shriram General Q2 net surges 150% to Rs 143 cr
EY may be sole transaction advisor for Air India sale
Rupee tanks 26 paise to 65.42/$ 
SpiceJet quarterly net jumps 79% to Rs. 105 cr
Tata Chemicals Q2 net profit up 52% at Rs. 273 cr
Adani Enterprises’ Q2 PAT down 6% to Rs. 59 cr
Global carbon emissions to rise 2% in 2017: scientists 
Eveready-McLeod team up to brew packet tea business
Uber approves SoftBank multibillion-dollar investment offer
Vodafone, Idea to sell standalone tower assets to ATC for $1.2 billion
P&G profit rises 11% to Rs115.56 crore in September quarter
Khadim India to make stock market debut tomorrow
Idea Cellular reports Q2 net loss at Rs1,107 crore
India to overtake Japan to be third largest economy by 2028
Nepal scraps $2.5 billion hydropower plant deal with Chinese company
Government to dispose of 5 lakh tons of pulses buffer stock by March
Reliance Nippon AMC Q2 net profit up 25 pc to Rs 122 cr
October trade deficit may widen to $10.8 billion
Castor seed set to see more correction before recovery
Cotton demand-supply situation favourable for textile firms
Govt seeks interim dividend, but CPSEs may not oblige

STOCK IN NEWS

1. Bharti Airtel offered to sell 3.5 percent stake in Bharti Infratel at Rs 400-415.50 per share 
2. Sun Pharma subsidiary Taro gets USFDA nod for Fexofenadine Hydrochloride oral suspension
3. Tata Teleservices says total mobile subscribers down 7.3 percent to 6,467 lakh in Oct. from 69.8 lakh in Sept.
4. Muthoot Capital to issue 27.27 lakh shares at Rs 605 each via QIP.
5. IOL Chemicals and Pharma to invest Rs 200 crore for expanding manufacturing capacity.
6. Havells India signed a pact with South Korea’s Hyundai Electric for supply of low and medium voltage protection, and switching devices