}

Thursday, 14 December 2017

14 December 2017 - Views & News

TOP NEWS

ALERT: Tata Communication: To transfer surplus land to Hemisphere Properties which will be subsequently listed, positive read-thru (value unlocking for the existing shareholders, land parcel value at around Rs 280 per share)
The board of Tata Communications approved demerger of around 773 acres of surplus land to a separate company and listing it subsequently. The land will be transferred to an SPV (special purpose vehicle) created for the purpose 'Hemisphere Properties India Ltd', which will apply for listing of shares. Existing shareholders of Tata Communications will get one share in Hemisphere Properties for every one share they current hold in Tata Communications

Glenmark: Announced that it met its primary clinical endpoint in a Phase 3 study evaluating the safety of Ryaltris. Glenmark plans to submit the company's first new drug application (NDA) to the FDA for Ryaltris for the treatment of patients with seasonal allergic rhinitis (SAR) in the first quarter of 2018 – Positive for Glenmark; we believe that the investments made in the Company's robust R&D pipeline will continue to produce a variety of new and innovative treatment options.

Rico Auto: Has entered into a joint venture agreement with Ultra Fairwood PTE Limited for manufacture of POD (autonomous electric vehicle to be run on dedicated tracks) for personal rapid transport and group rapid transport. Both the companies will hold a 50% stake in the JV company. Positive read thru.

Mahindra & Mahindra: Mahindra Overseas Investment Company (Mauritius) Ltd (MOICML), a wholly owned subsidiary of M&M has sold 64,50,000 shares representing 5% of the Share Capital of CIE Automotive S.A. at an average gross price of Euro 23.50 per share, aggregating Euro 151.58 million. Post the sale MOICML’s shareholding in CIE Automotive S.A. would come down to 7.435%. The sale proceeds would be utilized for for part re-payment of MOICML’s debt and/or for declaration of Dividend. Positive

Manpasand Beverages: RBI increases Manpasand Beverages’ FII limit to 49 percent from 24 percent and allows further FII buying - positive read through for the stock.

Oil & Gas: Oil marketing companies (OMCs - IOCL, BPCL and HPCL) have marginally increased the price of diesel and petrol by around Rs0.2/litre to Rs0.3/litre in the last few days despite sharp jump in the oil price to $65/bbl and adoption of daily auto fuel pricing mechanism mainly due to Gujarat state elections - negative read through for OMCs 

Maruti Suzuki: To take a price hike of up to 2% across its product portfolio effective January 2018 to offset the impact of the rising input costs - Positive

IndusInd Bank: RBI imposes penalty of Rs3 crore for non-compliance with income classification norms – Sentimentally negative for IndusInd

Corporation Bank: The Reserve Bank of India (RBI) has imposed prompt corrective action (PCA) against it in view of high non-performing loans and put restrictions to raise capital, extend loans and pay dividend - Negative read thru 


OTHER NEWS

Indian Hotels: Real estate developers, budget hotel chains, private equity and sovereign wealth funds and anyone who doesn't own or operate five-star hotels will not be able to bid for the management rights of the Taj Mahal Hotel in New Delhi; Also global hotel chains who are not yet present in India do not stand a chance as bidders too – Sentimentally positive for Indian Hotels as the clause will reduce the number of bidders in the list and Indian Hotel’s probability of winning the bid stands high due to its lean balance sheet

MEP Infrastructure: MEP Sanjose Mahuva Kagavadar Road, a subsidiary of the Company, has achieved the Milestone One for the project of Four Laning of Mahuva to Kagavadar of NH-8E in Gujarat on Hybrid Annuity Mode under NHDP Phase IV, as per the Concession Agreement. The Authority has paid the first Milestone payment of 20% of the physical progress for the project on 12th December 2017, which is 79 days ahead of the scheduled date for the milestone. Positive read thru for the stock.

PVR: Signs deal to add 16 more 4DX screens by 2019 – positive for the stock
PVR will increase the count of its 4DX screens to 21 by investing around $11 million (Rs70 crore) in the next two years. PVR signed a deal with South Korea’s CJ 4DPLEX at Cine Asia 2017 to add 16 more screens as it is ramping up offering in the premium segment in metro markets. As per management, the average ticket price at 4DX could be higher in the range of 2.5x-3x as compared to standard screen’s average ticket price. The new screens will come to existing metro markets and smaller locations such as Ludhiana and Chandigarh.

IT & ITES: Government to expand BPO subsidy scheme – positive read-thru for TCS as it has set up operation under this scheme 
To promote rural business process outsourcing (BPO) scheme, the ministry of electronics and IT will soon list its services on the government e-marketplace portal (GeM). The National BPO Promotion Scheme was flagged off soon after the Modi government came to power in 2014 and had an outlay of almost Rs 500 crore.

MORE NEWS

Deadline to link Aadhaar with PAN, bank account extended till March 31 
India’s current account deficit doubles to 1.2% of GDP 
Reliance Jio likely to be worth as much as US' Sprint
RBI imposes restrictions on Corporation Bank
Indian bizmen to transfer $128 bn to next gen: Karvy
RBI imposes Rs 3 crore penalty on IndusInd Bank
Banks, insurance cos under lens for inflated tax credits
Divestment activity to continue in March quarter
Indian promoted fintech company gets listed on NASDAQ
NSE to auction investment limits for Rs 7,300-cr corp bonds
SAIL says board approved JV with ArcelorMittal for automotive steel
Orchid Pharma gets USFDA nod for ANDA for schizophrenia drug
Future Group may list home furnishing arm on Friday
First low-cost airline ready for second take-off
Income-Tax dept conducts surveys at Bitcoin exchanges across country
Supreme Court allows use of petcoke by cement industry
Daily trading turnover on BSE’s India INX crosses Rs. 1,700 cr
‘Buyers of Tata Motors’ cars are far younger and wealthier’ 
Spending on agri R&D alleviates poverty substantially: Study
ADB lowers India’s GDP forecast for FY18 to 6.7%
India in talks with Indonesia for refineries, LNG plants
Vijay Mallya assets freeze order in UK courts until April 2018
GST Network simplifies returns filing process
Flipkart completes buyback of employee stock options worth $100 million
India’s CAD more than doubles to $7.2 bn in Q2, says RBI data
Turning hawkish on India as inflation zooms past RBI target
GST led to 12 percent rise in cost of solar projects, says AISIA
South Korea bans its banks from dealing in Bitcoin
Banks yet to pay CITs Rs 25 cr for note ban period, says CLA
Maruti cars to cost up to 2% more from 2018
New high: 122 IPOs raised Rs 70K cr in 2017
Banks to take another 23 firms to NCLT for insolvency
SC stays Centre’s takeover of Unitech


Wednesday, 13 December 2017

13 December 2017 - Views & News

TOP NEWS

Grasim Industries, Century textiles & Industries: Grasim to manage and operate 25,000 TPA VFY capacity of Century Textiles – positive read thru for Grasim Industries
Grasim is expected to receive ‘Right to manage & operate’ 25,000 TPA Viscose Filament Yarn business of Century Textiles for a period of 15 years. The ownership of assets will remain with Century textiles. The payment involves commuted royalty sum of Rs600 crore, refundable security deposit of Rs200 crore and net working capital at closing estimated at Rs165 crore. Grasim is expected to benefit from this arrangement as limited capacities are available in the market and organic expansion is not feasible. The combined business will have capacity of 46,300 tonnes with FY2017 revenue of Rs1701 crore and EBITDA of Rs393 crore (23% margin). Although current Grasim’s VFY business has 28% margins leaves scope for further improvement in margins for combined business. Positive read thru for Grasim.

Branded Retail and Textiles: India Cotton output seen at three-year peak on higher crop area – positive read through for textile/home textile/branded apparel companies like Arvind, ABFRL, Raymond, Trident, Welspun India as their margins are expected to rise in FY2019 due to lower cotton prices
Cotton output in India may increase to a three-year high as a rise in the crop area this year offsets damages caused by pests in some key states. Production will probably climb to 37.7 million bales of 170 kilograms (375 pounds) each in 2017-18 from 34.5 million bales a year earlier. The area under cotton this year climbed to 12.2 million hectares (30.2 million acres), a three-year high, from 10.85 million hectares.

Reliance Industries: Plans to launch an IPO for its telecom arm (Reliance Jio) in late 2018 or early 2019 as per media reports – positive read through for Reliance Industries as it would help in value unlocking and also indicates that its telecom business is likely to turn profitable much earlier than street expectations. 

Reliance Industries: Reliance Jio, subsidiary of Reliance Industries,  added 7.34million subscribers in October-2017, taking its market share to 12.4% as compared to 11.72% in September 2017 as per media reports – positive read through for Reliance Industries.  

Ashok Leyland: launches west African headquarters in Ivory Coast; introduces 4 new models; commences delivery of 3,600 vehicles through Road Transport Development fund in ivory coast- positive (details in other news)

Bharti Airtel: Warburg Pincus to buy 20% stake in Bharti Airtel's DTH arm for $350 million – positive
Bharti Airtel said Warburg Pincus will buy up to a 20% stake in the Bharti Airtel's direct-to-home arm for $350 million. Bharti Airtel will sell 15% stake in Bharti Telemedia Ltd, while the remaining 5% will be sold by another Bharti entity. Once the deal closes, Airtel will own 80% stake in the DTH unit. Bharti Telemedia, which operates under the brand Airtel TV, has about 14 million subscribers and revenue of about $550 million.

Hero Motocorp: Gains market share in motorcycles led by revival in entry motorcycles due to strong rural demand; revival in rural markets to maintain growth momentum; positive read thru (details in other news)

Havells India Ltd: plans new facility in Rajasthan to make consumer durables such as air conditioners, refrigerators, TV and washing machine etc, positive


NBCC: has secured new business valuation of $23 million (Rs 150crore) for social housing units in Mauritius.

OTHER NEWS

Ashok Leyland: launches west African headquarters in Ivory Coast; introduces 4 new models; commences delivery of 3,600 vehicles through Road Transport Development fund in ivory coast- positive
Ashok Leyland has set up its west African headquarters in ivory coast. The facility comprises of the Regional Marketing Office, Genuine SpareParts Warehouse, Training Centre and 12 fully-equipped Workshop Bays. As per the company, the facility furthers its commitment to the Road Transport Development Fund and will serve as a central location for the Francophone region. Ashok Leyland has unveiled four products in the new geography - Captain, Boss, Hawk and Mitr. A total of 3600 vehicles had been ordered under the Road Transport Development Fund (Ivory Coast) and the company has commenced the deliveries of the same to the  customers.

Ashok Leyland: to invest Rs 400 crore over the next two years in developing new products in the LCV segment, including left-hand-driving trucks to tap the potential export markets in Gulf countries and Africa. Positive  

Bajaj Auto: launches the Black Pack edition of its popular Pulsar range - Pulsar 150, Pulsar 180 and Pulsar 220.  Bajaj Auto has launched the Black Pack edition to mark 1 crore unit sales of Bajaj Pulsar motorcycles worldwide. The Bajaj Pulsar Black Pack edition comes with white alloy wheels along with new decals. Besides, the new Bajaj Pulsar Black Pack edition also offers satin chrome exhaust cover and the rest of the motorcycle is in black.

NMDC: NMDC transfers Bailadila Iron Ore deposit 13 in favor of NMDC-CMDC (NCL, 51:49 JV) as per clause of the JV agreement. NCL has planned to start the mining operations in FY2019 and the production would meet the requirement of Chhattisgarh based sponge iron industries and other domestic steel makers. Neutral read thru for NMDC.

Hero Motocorp: Gains market share in motorcycles led by revival in entry motorcycles due to strong rural demand; revival in rural markets to maintain growth momentum; positive read thru
A revival in the entry-level bike segment has helped Hero MotoCorp grow its share of the motorcycle market marginally amid intense competition. The entry segment accounts for 59% of the overall motorcycle market in India. Sales of entry bikes (75-110cc), had dropped after demonetisation. However, the sales began to recover in FY2018 led by recovery in the rural volumes. Hero’s sales in the segment grew 10% at 3,299,849 units in April-October 2017, while the overall segment grew 7% at 4,489,912 units. The company improved its market share marginally by 100 basis points to 51% from 50% in the year-ago period, driven by its popular models such as Splendor and Deluxe.

Interglobe Aviation: The company has received proposal of offer for sale by the sellers Acquire Services (79.5 lakh shares, 2.07% of equity capital of the company) and IGE (32.4 lakh shares, 0.84% of equity) on 13th and 14th December through a separate, designated window of BSE and NSE. The proposed selling of shares is likely to put pressure on stock price on the designated days.

Punj Lloyd: The company has received two orders viz. laying and construction of Steel Pipeline worth Rs276 crore awarded by Gail and Upgradation of Yargi-Kalewa EPC road worth Rs1177 crore awarded by NHAI. Positive for Punj Lloyd.

Infosys: to offer back-office service on Tradeshift platform – positive read-thru
Infosys said it would offer business process management expertise in finance, accounting and procurement domains on Tradeshift's cloud-based platform. Tradeshift connects about 8 lakh buyers and suppliers in countries across the world over on its platform.

NTPC: in talks to purchase three power plants in Bihar

Indian Oil Corporation (IOCL): Minor fire broke out at fluid catalytic cracking (FCC) unit of IOCL’s 15mmt Paradip refinery. The company has said that all the units at the refinery are working normally – neutral for IOCL. 

MORE NEWS

Industrial output growth slows to 3-mth low in Oct 
Religare gets NCLT nod to merge 11 entities with itself
'Infra sector to attract $12-13 bn investment via NIIF'
Aadhaar compulsory for AMCs' clients from Jan: BSE
$42b manager fears bubble in world's biggest stocks
Indian telecom subscriber base dips to 120 cr in October
Aion-JSW frontrunner to acquire Monnet Ispat
Inflation jumps to 15-month high, IIP slows to 2.2%
IndiGo promoters offloading Rs 1,245-cr shares thr OFS
Overall India M&A value declines 12% to $56 bn in 2017
Adani Power gets over 174.84 acres of land from Jharkhand govt
NSE awaiting Sebi's approval to launch commex derivatives: Limaye
IDBI Bank to sell 30% stake in NEGIL to exit non core business
SEBI mulls reducing listing time to four days
ONGC seeks access to data room to fix HPCL acquisition price
SEBI plans discussion paper on MF expense ratio
US, India spar over developing country status at WTO
Govt issues norms for wind power procurement
RIL said to plan Reliance Jio IPO after $31 bn spending spree
WTO talks in Buenos Aires on brink of collapse
Indian economy to grow at 7.2% in 2018, says UN report
Retailers’ association writes to RBI seeking revision of MDR
Tata Communications’s 15-year wait to spin off land assets nears end
Infrastructure sector to attract $12-13 bn investment via NIIF: Economic Affairs Secretary S C Garg
Equity IRR for 1st set of toll-operate-transfer highways seen at 12-13%, says Crisil report
1,800 crore digital payment transactions likely in FY 2018, says KJ Alphons
BHEL commissions coal-fired power plant in Indonesia
Airtel to sell 20% stake in DTH arm to Warburg Pincus
 ‘Allocations for rural and urban infrastructure could rise’
Rs 10K crore tax demand on IT firms set aside
Rising crude oil takes fizz out of equities

Tuesday, 12 December 2017

12 December 2017 - Views & News

MARKET INSIGHT

The Nifty is likely to open weak. Nifty 10330-10360 is an immediate resistance zone where the bounce can subside. Unless Nifty takes out the level of 10410 the up move is unlikely to develop into a larger rally. The index however can form a distribution before starting next leg down.

Nifty Spot Levels

Support 10270 – 10195 – 10090
Resistance  10360 – 10410 - 10490

GLOBAL MARKET

• US stocks closed higher on Monday as investors prepared for an expected Federal Reserve rate hike later in the week, while stocks rose around the world on continued solid global economic growth indicators.
• Gains in the energy and technology indexes helped boost Wall Street. 
• Oil prices rose, reversing earlier losses, after a North Sea pipeline shut for repairs and investors focused on commodities following the New York blast.
• The Dow Jones Industrial Average rose 56.87 points, or 0.23 percent, to 24,386.03.

RESULTS TODAY

Albert David, Amines & Plasti, Ansal Hsg, Ashapura Mine, Axis CadesEng, Guj Themis, Hind Rectifier, Jindal World, Kabra Extr, Lincoln Pharma, Speciality Restaurant, Talbros Auto, Talwalkars, WPIL.
TOP NEWS

Dr Reddy: gets Establishment Inspection Report (EIR) from USFDA for its Unit-3 formulation plant in Bachupally – Positive for Dr Reddy as it lifts the overhang and will start getting product approvals that were stuck since April 2017; this plant accounted for 50%+ of US sales (no impact on financials as sales were not impacted)

Oil & Gas: Government plans to include shale gas in the definition of petroleum for exploration purpose as per media reports. This would allow private E&P companies to explore shale gas reserves in their oil & gas fields - positive read through for Reliance Industries as it has experience of shale gas operations in the US.  

Tata Motors: Moody's Investors Service, ("Moody's") has affirmed subsidiary Jaguar Land Rover Automotive Plc's (JLR) Ba1 corporate family rating (CFR) and Ba1-PD probability of default ratings well as all Ba1 senior unsecured instrument ratings. The outlook has been changed to stable from positive. The outlook change to stable reflects JLR's deterioration in profitability with Moody's adjusted EBITA margin declining from 10% in Fiscal Year 2015 (FY) to below 4% for the last twelve months period as of September 2017 as well as free cash flow generation turning negative since FY17. Negative read thru for Tata Motors

Tourism: Package tours could become cheaper as the government is looking at a proposal to allow tax credits to tour operators, which will reduce the incidence of the goods and services tax on those booking holidays; The GST Council is expected to take a call on this at its next meeting – Positive read through for Thomas Cook India and Cox & Kings

OTHER NEWS

Tata Motors (JLR): aims for a 25% share of the Indian luxury SUV market and 14% share of the Indian luxury car market by end of FY2018: Positive read thru
Jaguar Land Rover is fast gaining ground in the highly competitive Indian luxury car market. The company is eyeing 25% market share in the domestic luxury SUV market from the current levels of 15-16%. Also JLR is aiming for a 14% share in the luxury car market as against 9% in last year. The company expects new model launches to drive the demand for the cars and is targeting to sell 4,000 to 4,500 units this year translating in to a strong double digit growth.

Asian Paints: The company acquires remaining 49 percent stake in Sleek from Ahuja Family for Rs 50 crore – positive read through for the stock as the company is focusing on gaining good share in unorganised kitchen infra market.

Freshtrop Fruit: The company begins trial production of ready to drink beverages, products to be available by end of FY18 – positive read through for the stock

GNA Axles: Has started commercial production from its two newly installed automated machining lines for rear axle shafts at its unit in Kapurthala, Punjab which will boost revenues going ahead. Positive read thru

L&T Infotech: Completes acquisition of 100% stake in banking solution provider Syncordis SA

Tata Communications: to spin off, list land assets as separate arm – Positive Read thru
Tata Communications Ltd will soon hive its property holdings into a separate company, which will subsequently be listed. The spinoff should take less than a few months as there is in-principle agreement among the parties involved.

Den Networks: ICRA has upgraded the credit rating for the various debt facilities availed by the Company - upgrades Fund based long term rating to A from A-

Oil & Gas: A consortium of ONGC Videsh, Bharat PetroResources (subsidiary of BPCL), Indian Oil and Oil India will receive the license for block 32 in Israel as per Israel's Petroleum Council. As of now there is no detail about hydrocarbon reserve potential for block 32 – sentimentally positive for the companies mentioned above.
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 MORE NEWS


FM Jaitley says India on road to fiscal consolidation
Stake sale in tower cos can cut telecom sector debt
Fuel demand jumps 6.2% in Nov as diesel use recovers
Unitech moves SC against NCLT order on takeover 
Govt considering developing civilian aircraft: Official
Essar Port to complete Rs 830 cr expansion at Vizag terminal
'Real Estate may see investment from financial institutions'
WhatsApp earnings leaks: Sebi summons officials of at least 12 companies
Insolvency row: SBI moves NCLT against debt-ridden IVRCL as deadline looms
Farm debt waivers not favoured by ex-RBI heads
Non-declaration of Bitcoin gains could lead to a minimum of 20% tax
China bank lending hits fresh record after strong credit surge in November
IBC auctions: Stressed unlisted firms may get tax incentives
Government will fully protect public deposits: Jaitley
India Inc garners Rs. 50,855 cr via pvt placement of debt securities 
Investors face difficulty in linking Aadhaar with MF folios 
USFDA nod to arm bodes well from Alembic Pharma 
WTO ministerial begins with moderate hope of outcome
Suzuki’s electric vehicle tie-ups aim to aid Maruti, without the risks
Parliamentary panel split on Air India privatisation
Asian Paints acquires remaining 49% stake in Sleek International
SC to hear Centre’s appeal in Vodafone tax dispute case
India's economy expected to grow at 7.5% in 2018, says Nomura
Retail inflation likely exceeded RBI's 4% target in November
Amazon seller base spikes 80 per cent in 2017
Essar Vizag Terminal to be shut for a week
Videocon loan default 5 times bigger than Vijay Mallya’s Kingfisher; 28 firms have 2 days to pay up
Bond yields jump on fears of inflation spike, Fed rate hike
November marks 217% rise in PE investments, $2.7b exits
RBI net buys USD 852 mn of US currency in October
Developers apprehensive over tax on unsold flats
Govt in talks with Singapore for cruise connectivity: Gadkari

STOCK IN NEWS

1. UCO Bank/ Allahbad Bank sell Jai Balaji loans worth Rs 1500 crore to Edelweiss ARC.
2. Tata Communications to spin off, list land assets as separate arm.
3. Torrent Pharma expanded insulin manufacturing for Denmark headquarterd healthcare company Novo Nordisk.
4. Deepak Nitrite plans to raise up to Rs 150 crore - India Today.
5. GAIL to import 5mt of LNG from US - The Economic Times.
6. Natco Pharma board approves QIP at Rs 937 per share
7. USFDA issues EIR for formulations manufacturing plant - 3 of Divis Lab at Bachupally Hyderabad
8. Freshtrop Fruit begins trial production of ready to drink beverages, products to be available by end of FY18
9. HEG - Ind-Ra has upgraded the credit rating to 'IND A+; Outlook Positive from 'IND A''; Outlook StableDen Networks - ICRA upgrades Fund based long term rating to A from A-

Monday, 11 December 2017

11 December 2017 - Views & News

MARKET INSIGHT

The Nifty is likely to see positive opening followed by Asian markets. The short-term trend remains downwards unless the swing high of 10410 gets taken out.

Nifty Spot Levels

Support 10182 – 10110 – 10033

Resistance  10329 – 10410 - 10490

GLOBAL MARKET

 • US stocks advanced on Friday, buoyed by a solid payrolls report for November that locked in expectations for an interest rate hike from the US Federal Reserve next week and raised optimism about economic prospects in 2018.
• Nonfarm payrolls rose by 228,000 jobs last month amid broad gains in hiring as the distortions from the recent hurricanes faded, Labor Department data showed, topping expectations calling for a rise by 200,000 jobs.
• The jobs data cemented expectations the Fed will raise rates at its meeting next week as traders now see a 96.2-percent chance of a quarter-point hike, according to Thomson Reuters data.
• The Dow Jones Industrial Average rose 117.68 points, or 0.49 percent, to 24,329.16

RESULTS TODAY 

Aarvee Denims, Andrew Yule, APL Apollo Tubes, ARSS Infra, Associated Alcohol, BF Utilities, Centrum Capital, Colgate Palmolive, Lasa Supergenerics, Mawana Sugars, MT Educare, Nandan Denim, PBM Polytex, Repro India, V2 Retail, V2 Retail

TOP NEWS

Hexaware Ltd: Baring Asia to sell 10-15% at 1-5% discount, sentimentally negative (as prospects for potential delisting will diminish)
As per media reports, Baring Asia is looking to sell 10-15% stake in Hexaware Technologies (currently holding 71.25% in the company) through multiple block deals as private equity fund will partly exit from its investment made in Hexaware in 2013 for $260 mn. The deal, which would be made through multiple block deals, is expected to be launched as early as next week. Though the exact pricing is yet to be decided, Baring is likely to raise as much as much as Rs 981.6 crore to Rs 1,472 crore from the transaction. Earlier in September 2017, Hexaware’s management has indicated at potential sale of stake by Baring Asia.

Tata Motors: Group global wholesales for November 2017 up 22% YoY; JLR Numbers marginally below estimates – Negative…(details in other news)

Ultratech: Plans to set up 3.5mtpa integrated cement plant; approves proposal of increasing foreign portfolio investors limits from 30% to 40% - positive read thru for the stock.
The company’s board approved setting up of a 3.5mtpa integrated cement plant at pali, Rajasthan at an investment of around Rs1850 crore. The commercial production from the plant is expected to commence by June, 2020. The board also approved a proposal for an increase in the investment limits by Registered Foreign Portfolio Investors including FIIs from existing limit of 30% of paid up equity share capital upto 40%. Positive read thru for the stock.

Automobiles: Passenger Vehicle makers including M&M, Maruti, Tata Motors amongst others are offering discounts in the range of Rs 35,000 to Rs 100,000 which is higher by 10-15% as compared to December 2016. Traditionally, car makers offer discounts in December to clear off higher channel inventories, but this year the discounts have been attractive due to key points including GST roll out and a soft retail sentiment. Higher discounts are likely to impact the margins. Negative read thru.

Axis Bank: Sharholders approve raising Rs 11,626 crore form marquee investors including Bain Capital. Positive

 OTHER NEWS

Petronet LNG: Protest by fringe parties for construction of Kochi-Mangalore pipeline section as per media reports - sentimentally negative for Petronet LNG
Kochi Mangalore pipeline section, which is being constructed by GAIL, has recently seen protest by some fringe parties as per media reports. Despite the protest, the construction work is going as per schedule and the pipeline section is expected to be completed by December 2018. Any further protest and likely delay in the construction of the Kochi Mangalore pipeline section could result in continuous low utilisation for Petronet LNG's 5mmt Kochi LNG terminal - sentimentally negative for Petronet LNG.


Jyothy Laboratories: The company is planning to raise Rs 400 crore in form loan through bank/ financial institution to exercise the option of redeeming the debentures of about Rs400crore and provide corporate guarantee of Rs 60 crore to one of its subsidiary - raising of debt for redemption of debentures has already been factored in our estimates (no dilution in earnings estimates for FY2018E and FY2019E).

Reliance Industries: Has acquired stake in Dreketi S.A. in Uruguay to strengthen marketing of its petrochemicals in Latin American markets – sentimentally positive for Reliance Industries.

M&M: to provide electric vehicle technology to subsidiary Ssangyong; to enhance EV production in domestic market; positive read thru
Mahindra & Mahindra, a leading player in electric vehicles in the country, has now set eyes on electrification of some of the models of its South Korean arm SsangYong Motor. M&M subsidiary (Mahindra Electric) will sell some of the powertrains and electric parts to Ssangyong. Further as a part of strategy to broaden product portfolio, M&M will get into new technologies with higher power voltage powertrains and higher range products. M&M has earmarked an investment of Rs 600 crore over the next two-three years to expand its electric vehicle production capacity from 500 to 5,000 units a month. M&M will also develop new technologies and come up with infrastructure to produce battery components. The company is looking to ink joint ventures in the field of power electronics and motors. 

Tata Motors: Group global wholesales for November 2017 up 22% YoY; JLR Numbers marginally below estimates - Negative
·         Tata Motors Group global wholesales in November 2017 at 112,473 units is up by 22% YoY.
·         Global wholesales of Tata Motors’ commercial vehicles and Tata Daewoo range for November 2017 were at 40,845 units up by 51% YoY. Global wholesales of all passenger vehicles for November 2017 at 71,628 units grew by 10%YoY.
·         Jaguar Land Rover global wholesales at 54,244 units is up 5% YoY (lower than retail volume growth of 10% YoY).  

Oil & Gas: Oil Marketing Companies (OMCs - IOCL, BPCL and HPCL) has not increased the LPG prices in December 2017 due to elections in Gujarat. OMCs has increased LPG by Rs76.5 per cylinder in last 17 months. Neutral for OMCs as they do not bear subsidy on LPG.

Tata Chemicals: Sanction of scheme of arrangement for the transfer of the business of urea – The national company law tribunal, Mumbai (NCLT) sanctioned the scheme of arrangement between Tata Chemicals and Yara Fertilisers lndia. Tata chemicals sold urea business to Yara for Rs 2,670 crore on slump sale basis. We see this is a positive development for the company.

 MORE NEWS

Bankers stare at Rs 1 lakh crore bad loan bomb ready to explode in next 2 days
Satyam case: SC dismisses ED plea against TechM
Largest automated container terminal opens in China
Thyssenkrupp makes offer to workers for Tata Steel deal
Insolvency: IBBI notifies rules for complaint handling
India to seek solution to food stock issue at WTO
Pay hikes may get fatter after trimming of jobs in 2017
Firms, lenders ask RBI to extend insolvency deadline
Mukesh Ambani drives 45% of India Inc's capex since FY14
FY19 Budget may assume crude oil price at $65/barrel
Banks worried over Air India divestment route
Trade unions to make case for CIL contract workers' 20% wage hike
Coal India to leverage mining expertise for diversification: Centre
SBI changes names, IFSC codes of around 1,300 branches
Central banks buying gold in effort to diversify reserves
India’s ultra-mega solar project to be discussed at France Summit: World Bank
Aadhaar-PAN linking deadline extended to March 31
Mahindra Electric to play key role in SsangYong’s EV drive
Top eight BSE companies add Rs. 57,998 cr to market valuation
Mutual funds log Rs. 1.26 lakh cr inflow in Nov
Oil firms skip monthly LPG price hike for the first time in 17 months
Bitcoin looks like bubble, New Zealand’s central banker warns
Telecom Commission to consider ministerial panel suggestions on 21 December
McDonald’s may appoint new partner for north, east India
Ultratech to set up Rs1,850 crore cement plant in Rajasthan
India wants status quo in food procurement to change for better
Government hints at reviewing rates in top GST bracket
Coal imports rise 40% on restocking demand in November
Patanjali to manufacture solar energy equipment
Airtel to connect over 2100 uncovered villages in North East
Delhi govt cancels licence of Max Hospital
Bank of India to raise `3,000 crore via QIP
Govt takes over Unitech, NCLT allows MCA to appoint 10 directors
Forex reserves jump by $1.2 bn to $401.94 bn
Bids for RCom's spectrum, tower to open this week
Bank of India to raise `3,000 crore via QIP

STOCK IN NEWS

 1. Baring looks to sell up to 15 percent in Hexaware; PE firm may opt for multiple blocks deals (ET).
2. Ultratech Cement to set up 3.5 mtpa integrated cement plant at Pali, Rajasthan with investment of Rs 1,850 crore.
3. Delhi Govt cancels license of Max Hospitals Shalimar Bagh.
4. Precision Camshaft to provide corporate guarantee of Rs 149 crore to Bank of Baroda on behalf of subsidiary.
5. Sadbhav Infra signs maintenance contract worth Rs 150 crore with subsidiary.
6. KDDL to invest Rs 20 crore in Ethos.
7. Jyothy Labs to borrow Rs 400 crore and provide corporate guarantee of Rs 60 crore to one of its subsidiary.
8. Tata Chemicals receives NCLT nod for sale of Ure and fertilizer business to Yara Fertilizers India.
9. Punjab Chemicals to raise Rs 150 crore via equity/debt.
10. IL&FS Engineering wins 216 crore pipeline laying contract from GAIL.
11. Power Grid has entered into loan agreement with Asian Infrastructure Investment Bank for $100 million.
12. Govt to sell 67.50 lakh shares in NBCC at a discounted price of Rs 156.12 via OFS to employee. OFS to remain open from Dec. 28 - Jan. 05.
13. CBI books Apollo Pharmacy, a unit of Apollo Hospitals, in a case of cheating and corruption. (PTI)

Friday, 8 December 2017

8 December 2017 - Views & News

MARKET INSIGHT

Nifty is likely to open on a flattish to positive note based on the global cues. Resistance can be seen around 10210 levels and bias remains rangebound for the day.

Nifty Spot Levels

Support 10095 – 10033
Resistance  10210 - 10250

MARKET UPDATE

Sgx Nifty  +15 pts  Dow +70.57 pts ,Nsdq +36.47 pts , S&P +7.71 pts‎, Bovespa -780 pts , Ftse -27 pts , Dax +46 pts , Cac +9 pts , Nikkei +320 pts now , Crude @ $56.60 brl (-0.09), Brent @ $62.20 brl (-0.00) , Gold @ 1249.00 (-4.10), Silver @ $15.75 (-0.05), Euro @ $1.1772, JPY @ $113.1600, INR @ $64.5600

GLOBAL MARKET

• U.S. stocks rose on Thursday as technology stocks regained some of the ground they lost in the past week.
• Wall Street has been eagerly waiting for changes to the tax code, lifting stocks to record highs as they expect most companies will likely pay less in corporate taxes.
• Investors are also weighing the possibility of a government shutdown. If lawmakers fail to craft a deal on spending by the end of the week, the federal government could close until a deal is struck. President Donald Trump.
• The Dow Jones industrial average gained 70.57 points to close at 24,211.48.

Today's Corporate Action 8th Dec Ex Date

SURYAROSNI Dividend - Rs. - 1.5000

TOP NEWS

Mahindra & Mahindra: to hike prices of its vehicles by around 1.5-2% starting January 2018 to pass on the hike in the key inputs – forgings and castings. Positive read thru.

Emami: to acquire 30% stake in Helios Lifestyle; marks the company’s entry in the fast growing online male grooming segment – positive read through for the company as it will Emami to sell its other male grooming products through e-commerce…(details in other news)

Federal Bank: Company gives in principal approval for investment to be done by a strategic investor in its wholly owned subsidiary FedBank Financial Services – Sentimentally positive for Federal Bank

TVS Motors: to launch a refreshed version of Apache RTR 160 soon. The motorcycle will come with a new 160 cc air-cooled, single-cylinder engine, which is capable of delivering more power than the current model. The motorcycle is likely to be priced at ~ Rs 80,000 (ex-showroom) and the exact launch date is awaited. Positive

 OTHER NEWS

Emami: to acquire 30% stake in Helios Lifestyle; marks the company’s entry in the fast growing online male grooming segment – positive read through for the company as it will Emami to sell its other male grooming products through e-commerce
Emami is going to acquire 30 per cent stake in Helios Lifestyle, which owns male grooming brand 'The Man Company'. The Man Company offers premium men's grooming products in Bath & Body, Beard management, Shaving & Perfumes category and are sold online majorly through the company's own website ‘www.themancompany.com’. This investment is in line with the company’s strategy of leveraging online opportunities brought about by rapid digitalisation which is the future and will also help us to be present in the premium end of growing male grooming segment 

Banking: Non-food credit growth in India’s scheduled banks hit the 10.0% YoY, according to fortnightly data available with the Reserve Bank of India. Including food credit, the fortnight recorded a growth of 9.6%, the highest since September 30th last year – positive read thru for Banking sector

Tata Motors (JLR): launched the Range Rover Velar in India priced between Rs 78.83 lakh and Rs. 1.38 crore (ex-showroom Delhi). The new model will be available in three engine options of 2-litre petrol, 2-litre diesel and 3-litre diesel. The Velar fills the gap in the Range Rover portfolio and is positioned in between Evoque and Range Rover Sport. Further the Range Rover Velar would be a fully imported model and the company has received 100% bookings for up  to March next year. Positive

TVS Motors: Acquires a 14.78% stake in electric 2w startup – Ultraviolette Automotive; Positive
TVS Motors has acquired a 14.78% stake in Ultraviolette Automotive  - which is a startup engaged in designing and developing electric motorcycles and battery packs. TVS has bought 6750 shares of Rs 10 each at Rs 7,409 per share. The investment comes in line with TVS Motors efforts to bring in clean energy technology to substitute traditional fuels amid growing concerns over depleting environmental health. Positive.

Tube Investments: to acquire two cycle companies in Sri Lanka – stock to remain in focus
TI Cycles announced that it has signed an agreement for acquisition of a controlling stake (80%) in Creative Cycles & Great Cycles, Colombo, Sri Lanka for an aggregate consideration of $ 3.34 million. This acquisition, likely to be completed by the end of FY2018, will help strengthen and expand the global supply chain for the cycles portfolio of TI Cycles.

Telecom: Telcos to be roped in for smart meter connectivity in Uttar Pradesh and Haryana – positive read-thru for Bharti Airtel & Idea cellular
As per media report, Telecom players (Airtel, Vodafone, Idea and BSNL) are being roped in for providing connectivity as part of the government tender for 5 million smart meters to be deployed across Uttar Pradesh and Haryana. Reliance Jio is out of the picture, as the meter itself does not support 4G. The smart meters tender floated by EESL is divided into two parts — meter procurement and system integration. The system integrators are bringing in Airtel, Vodafone, Idea and BSNL for providing connectivity.

ICICI Bank: ICICI Bank has launched a digital service to allow customers to open a PPF account online. The digital service will enable customers to open a public provident fund (PPF) account instantly and in a completely online and paperless manner – Positive read thru

Havells: ‘Standard’, a well-known brand of Havells, forays into water heater market with launch of five variants; Positive
‘Standard’ brand of Havells has forayed into water heater segment with the launch of technologically advanced and aesthetically designed range. The company has launched five variants in electric water heater market growing at 12% annually. As part of expansion plan under Standard brand, Havells has launched ‘Zoe’ range of switches as well as a new range of ‘Aspida’ Miniature Circuit Breakers (MCBs). In FY2017, ‘Standard’ brand has achieved revenue of ~ Rs 400 crore.

Biocon: Board approves transfer of Biosimilars business by way of a slump sale as ‘Going concern’ to Biocon Biologics India limited, a step down wholly owned subsidiary of the company - Positive for long term as the company plans to monetize the opportunity by listing the subsidiary in future.

MORE NEWS 

Thanks to RBI, swiping your card at the local kirana store might soon become expensive
As new GE CEO goes for revamp of power unit, co plans cutting 12,000 jobs
Jet Airways Q2 net plunges 91%
ArcelorMittal's India JV to get green light next week
After Hours: Maruti now 7th most valuable firm; GAIL spikes 9%
Nifty ends 1.2% higher, Sensex up 352 points; auto, realty indices gain
IRB Infrastructure hits 11-month low; stock dips 7%
Investor flow into equity mutual funds at Rs 20,308 cr in November
Cargill plans a pipeline to transport imported crude edible oil
PepsiCo reshuffles top deck, Mike Spanos to head Asia operations
Tata Motors rolls out electric Tata Tigor for EESL
Amazon Web Services can now deliver cloud services to government clients
L&T shares climb over 2% after unit gets Rs. 1,600 cr order from HPCL
Emami acquires 30% stake in Helios Lifestyle
Sebi may allow mutual funds, portfolio managers to invest in commodities
Videocon d2h merger benefits blindside investors to Dish TV’s waffling performance
SAP plans to strike tech startup deals from $35 million SAP.iO fund
TVS buys 15% stake in electric two-wheeler startup Ultraviolette
Wassenaar Arrangement agrees to admit India as its new member
RBI holds repo rate: ICICI Bank, HDFC Bank, SBI among top banks lead gains today
Bharti Airtel stock skyrockets over 7% in late trade today, adds over Rs 10,000 crore in market cap
GMR-Megawide short-listed for $250m Philippine airport finance bid
TVS Motor enters super-premium segment, unveils Apache RR 310 at `2.05 lakh
Bitcoin Soars Past $17,000 Mark