}

Friday, 19 January 2018

19 January 2018 - Views & News

MARKET INSIGHT

Nifty is likely to open on a positive note based on the global cues. One need to check for 10780 levels and if breaks then some downside expected for the day.

Nifty Spot Levels

Support 10782 - 10666 
Resistance  10887 - 10948

GLOBAL MARKET

•The Dow Jones industrial average fell on Thursday as investors assessed the possibility of the government shutting down at the end of the week.
•Congress needs to pass a spending bill by the end of Friday to avoid a government shutdown. Historically, a government shutdown has led to a short-term pullback in the stock market.
•The 30-stock index closed 97.84 points lower at 26,017.81 after falling 168.33 points at its session lows.

RESULTS TODAY

ATUL, BLISSGVS, CDSL, DWARKESH, GANGOTRI, GNA, HCLTECH, HDFCBANK, HDFCLIFE, ICICIPRULI, IDFCBANK, ITC, JMFINANCIL, JPASSOCIAT, JUBLFOOD, JUBLFOOD, KANSAINER, KIRLOSENG, KOTAKBANK, MARALOVER, NIITTECH, PCJEWELLER, RELIANCE, TATAELXSI, TECILCHEM, TEJASNET, VSTIND, WIPRO

TOP NEWS

ALERT: GST Council: According to the latest meet of GST council, there are few changes with respect to the GST rates. Below are some of the changes to be effective from 25th January, 2018.

Key takeaways and beneficiary

Wonderla Holidays: GST council has reduced GST rate on services by way of admission to theme parks, water parks, joy rides, merry-go-rounds, go-carting and ballet, from 28% to 18% - positive for Wonderla Holidays and Adlabs Entertainment

Infrastructure: 1) GST rate on construction of metro and monorail projects from 18% to 12%. 2) To reduce GST rate (from 18% to 12%) on the Works Contract Services (WCS) provided by sub-contractor to the main contractor providing WCS to Central Government, State Government, Union territory, a local authority, a Governmental Authority or a Government Entity, which attract GST of 12%. Likewise, WCS attracting 5% GST, their sub-contractor would also be liable @ 5%. Positive for EPC players like Gayatri Projects, Sadbhav Engineering, L&T, KNR Constructions

Oil & Gas: GST tax rate on domestic LPG by private companies has been cut to 5% from 18% earlier - positive read through for Reliance Industries. However, United States has imposed an anti-dumping duty on polyester staple fiber imports from India as per media reports – marginally negative for Reliance Industries.

Oil Field Services: Reduces GST to 12% in respect of mining or exploration services of petroleum crude and natural gas and for drilling services in respect of the said goods. Positive for Aban Offshore, Dolphin Offshore Enterprises

GST Rate will be increased to 5% from Nil on Rice bran oil - sentimentally negative for Marico, however the company is expected to pass it on to the consumers

GST Rate will be increased to 12% from 5% on Cigarette filter rods - sentimentally negative for cigarette companies like ITC, Godfrey Phillips

GST Rate will be reduced to 0.25% from 3% on Diamonds and precious stones - positive for PC Jewellers and Titan

To reduce job work services rate for manufacture of leather goods and footwear to 5% - positive for Relaxo Footwear and Bata India

GST Rate will be reduced to 12% from 18% on drinking water packed in 20 litres bottles - positive for Tata Global Beverages and Varun Beverages

GST Rate will be reduced to 12% from 18% on sugar candies – marginally positive for ITC

Jain Irrigation: GST rate for drip irrigation system including laterals, sprinklers to be reduced from 18% to 12%. Positive for Jain Irrigation.

Agro Chemicals: GST rates on Pesticides and Phosphoric acid reduced from 18% to 12%. Positive for Dhanuka Agri, PI Industries, Insecticides, Rallis, Coromandel International amongst others.

Automobiles: The GST council has completely abolished the cess of 15% levied earlier on ambulance. Positive for Force Motors.

ALERT: Biocon: announces a global partnership with Sandoz (division of Novartis Inc) to develop, manufacture and commercialise multiple biosimilars in immunology and oncology space – Positive for Biocon; collaboration further strengthens  Biocon’s position in biosimilars space. We have a positive view on the stock and it is one of our preferred pick in the large-cap pharma space.
Under the terms of agreement, both companies will share responsibility for end-to-end development for biosimilars pipeline and will have equal cost + profit sharing arrangement globally. Sandoz will be responsible for commercialisation in the US, Canada and EU region while Biocon will have commercialisation rights for Rest of the World markets (includes Japan).

Torrent Pharma: acquires US based Bio-pharm Inc, a generic pharmaceutical and OTC company - Positive read thru.
Bio-Pharm Inc is involved in R&D and manufacturing of oral solutions, suspensions and suppositories.  Torrent also gets a USFDA approved manufacturing facility along-with 10 approved ANDAs, 10 ANDA’s under review and 17 under development stage. Positive for Torrent pharma as the acquisition provides company with new capabilities along with manufacturing and R&D presence in US.

Maruti Suzuki: to strengthen its presence in the compact car segment with the launch of the new Swift; company expects much higher demand with launch of refreshed variant: Positive....(details in other  news)

Mahindra & Mahindra: Subsidiary Mahindra 2 wheelers aims to curtail losses to sub 1 billion levels in FY2018 from 4.71 billion in FY 2018- Positive read thru. ....(details in other  news)
  
Alembic Pharma: to have a board meeting on Jan 23, 2018 to consider buyback – Stock to remain in focus.


OTHER NEWS

Tech Mahindra:  Acquire 17.5% stake in Altiostar for $15 million, stock to be in focus
Tech Mahindra announced it will acquire 17.5% stake in US-based telecom software development company Altiostar Networks for USD 15 million in a cash deal. Altiostar Networks is a US Corporation with presence across six countries in Europe, Asia Pacific and Latin American regions. This is a portfolio investment from Tech Mahindra Ltd (TML) in the nascent but promising and fast-growing virtualised Radio Access Networks space. TML though its wholly owned subsidiary Tech Mahindra (Americas) Inc is investing an amount of USD 15 million in return for a 17.5% stake  in Altiosta.

Maruti Suzuki: to strengthen its presence in the compact car segment with the launch of the new Swift; company expects much higher demand with launch of refreshed variant: Positive.
Maruti Suzuki has announced to launch the new version of its popular hatchback Swift, at the upcoming auto expo in February 2018. The company has commenced the bookings for the new Swift, which is based on Suzuki's 5th generation HEARTECT platform. The car will be available in both Petrol (1.2 Litre engine) and Diesel engine (1.3 litre engine). The new Swift is many notches up in styling, features, ride quality, pick-up, interiors. The new swift is likely to be priced starting Rs 5.10 lakhs for petrol version and Rs 5.9 lakhs for the diesel version. Maruti Suzuki shall manufactured at the company’s plant in Gujarat, where it has tweaked the production to meet the demand. The outgoing version of the Swift clocked monthly sales of around 15000 units and expects much higher demand for the refreshed model

Mahindra & Mahindra: Subsidiary Mahindra 2 wheelers aims to curtail losses to sub 1 billion levels in FY2018 from 4.71 billion in FY 2018- Positive read thru.
Mahindra Two wheelers, a subsidiary of M&M is trying to re-invent itself and come back on the growth path. Initially it aims to reduce its losses for FY2018 to sub Rs 1 billion levels (from Rs 4.71 billion in FY17). As a part of cost rationalisation, several employees from the two wheeler business have been absorbed in other lines of businesses. Also, The company has reduced spends on major marketing events, advertising etc. Instead, it is using the digital space more and working with dealers in their catchment areas for promotional events. Also the company has decided to move away from the highly competitive commuter segment, and concentrate on niche product categories. As such there is no cost of new product development for the mass segment which would result in huge cost reduction.  

Tata Motors: aims to address 95% of the passenger vehicle market by 2020 from current 60%; plans a strong new product pipeline – Positive.
Tata Motors expects to address 95% of the passenger vehicle (PV) market by 2020, up from 60% currently. The company has planned multiple product launches in segments where it currently doesn't have a presence. The company has a strong product pipeline in place from 2019 which includes a premium SUV, codenamed Q5 based on the Land Rover platform. This will be followed by a premium hatchback to compete with Suzuki Baleno competitor, code-named X451, Q4 of 2019, and, a mid-size sedan codenamed X445 that will be pitted against the Honda City to be coming in Q1 of 2019. Secondly, the company also plans to rationalise the number of platforms from the current six to two by 2020. This would allow it to reduce complexity, use common parts and, hence, cut costs by at least 18-20%

MRF: Commences supplies of nose wheel tyres for Indian airforce fighter aircraft; positive read thru
MRF achieved a significant milestone with the commencement of supply of nose wheel tyre for the Indian Air Force’s fighter aircraft. MRF has been supplying main wheel tyre for SU 30 MKI, the most advanced fighter aircraft group in the IAF fleet. Similarly, indigenisation of nose wheel tyres for SU 30 MKI was also taken up by MRF and after successful field trials, the company is gearing up to supply the nose wheel tyres for the fighter aircraft.

MORE NEWS

GST Council slashes rates on 29 items to zero per cent 
US, EU, Japan object to India raising Duty on electronics
Bharti Airtel Q3 net profit slumps over 39% YoY
Tech Mahindra to pick up 17.5% stake in Altiostar
Banks have only themselves to blame: RBI dy guv
Government to consider hike in sugar import duty
Court orders issuance to Mallya and18 others
Govt working on centralised bidding to reduce cost of electricity
RIL to spend another $23 bn on Jio over next 3-4 years, says Moody's
L&T Finance Holdings plans to raise Rs 40 bn via QIP, appoints four bankers
Hindustan Zinc Q3 profit declines 4% to Rs 22.3 bn on higher expenses
MCX gets Sebi's approval for deliverable futures contract in brass
Apple to pay $38 bn in foreign cash taxes
‘India will need $125 bn to fund renewables dream’
Global digital health VC funding up 42% at $7.2 b 
‘Six more months needed to recover from demonetisation’
Ultratech Cement Q3 profit falls 23% on raw material price rise
Suven gets product patents in China, Sri Lanka
GST Council approves changes to composition scheme
Airbus handed A380 lifeline with $16 billion Emirates order
Adani Ports Q3 profit up 19.51% at Rs1,001 crore
Hindalco’s Aleris acquisition bid may face competition from Vedanta
Infosys’s struggles with M&A deals a test for new CEO
SBI wary of selling bad loans to ARCs
E-Way Bill: Penalty clause on non-compliance to be implemented by March 1
Government’s fiscal consolidation plan likely to continue: Report
India Ratings projects economic growth at 7.1% next fiscal
Yes Bank ties up with Amplus Energy Solutions
GST Council discusses making return filing process simpler
Govt eyes 20 m foreign tourists by '20, to double Fx earnings
Zinc Fortification in Indian Soils, to Supplement Zinc Deficiency in Human Body
FinMin banks on airwave sale for revenue in FY19
IndiGo, Jet among dozen bidders for RCS hinterland routes

  STOCK IN NEWS 

1.RBI hikes foreign investment limit in Healthcare Global to 100 percent from 24 percent earlier.
2.Alembic board to consider buyback of shares on Jan. 23.
3.Biocon enters into a global partnership with Sandoz to develop, manufacture and commercialise multiple biosimilars in immunology and oncology.
4.Savita Oil Technologies to consider share buyback on Jan. 23.
5.Torrent Pharma acquires U.S.-based generic pharmaceuticals Bio-Pharma Inc.
6.Tech Mahindra to acquire 17.5 percent shares of Altiostar on a fully diluted basis.

Thursday, 18 January 2018

18 January 2018 - Views & News

MARKET INSIGHT

Markets are expected to open positive. Technically, Nifty has formed a bullish outside bar in yesterday’s session. On the way up Nifty has crossed the high of 10782 and the rally can extend further upside. From short term perspective 10860 will be the key level with potential to stretch higher. On the flip side, yesterday’s low of 10666 will now act as a crucial support.

Nifty Spot Levels

Support 10666 – 10597 - 10566
Resistance  10860 – 10918 - 11000

GLOBAL MARKET

•Wall Street's main indexes rose on Wednesday as investors' expectations for higher earnings lifted stocks across sectors.
•More than three-quarters of the 36 S&P 500 companies that have reported so far have topped earnings estimates, according to Thomson Reuters I/B/E/S.
•The Dow Jones Industrial Average rose 270.7 points, or 1.05 percent, to 26,063.56.

RESULTS TODAY

ADANIENT, ADANIPORTS, BHARTIARTL, CYIENT, DBCORP, DEEPAKNTR, HINDZINC, JUBLINDS, KIRLOSIND, KKCL, MASTEK, PARAPRINT, ULTRACEMCO, YESBANK, ZENSARTECH

TOP NEWS

ALERT - Banking sector: As per media sources, Govt. may allow increase in the FDI Limit in Public Sector Banks (PSBs) to 49% from the present 20% and allow 100% FDI in Private banks (Pvt. Banks currently have 49% FDI investment cap under automatic route which can go up to 74% with Govt. approval route) – A big sentimentally positive if the move is indeed carried out as this will relieve onus on Govt to dip into taxpayer’s money to bail out ailing PSBs while allowing Growth capital for efficiently run PSBs. Allowing higher cap on Private banks may see increase in appetite for Pvt Banks, and top banks like HDFC Bank, ICICI and Axis etc. may see immediate benefit

Ashok Leyland: enters into a partnership arrangement with Phinergy for electric commercial vehicles – Positive….(details in other news)


PNB Housing Finance: The HFC gets RBI nod for $500 million masala bonds which are rupee-denominated bonds sold in offshore capital markets. The bonds must have a minimum original maturity of three years, rising to at least five years for deals over $50 million, and coupon rates must be no more than 300 basis points over the government curve. – Positive read thru


Varun Beverages: The board has approved to acquire franchisee rights for PepsiCo India's previously franchised sub-territory in the State of Bihar. Upon completion of this acquisition, company will be a franchisee for PepsiCo products across 20 States and 2 Union Territories of India – positive read through as this will further strengthen Varun Beverages presence in India.

OTHER NEWS

Jubilant FoodWorks: As per the shareholding pattern declared on exchanges, during December 2017, Mr. Radhakishan Damani (an ace investor) through his company Derive Trading And Resorts Private Limited, has acquired 1.1% stake in the company – positive read through

Ashok Leyland: enters into a partnership arrangement with Phinergy for electric commercial vehicles – Positive.
Ashok Leyland has signed a Letter of Intent with Phinergy based in Israel for a partnership to work towards development of electric vehicles. Phinergy of Israel has developed solutions for the use of Aluminium Air Batteries for Electric Vehciles and other applications, which have a good potential in India in the light of transition to electric vehicles. With Ashok Leyland, Phinergy will tailor this technology to meet high-energy requirements of commercial vehicles in India. Further Ashok Leyland plans to develop prototypes using Phinergy’s technology on different platforms for various CV applications

Automobiles: Truck freight rates decline 3-4% for December 2017; however expected to stabilize once the E-Bill is introduced from Feb 1,2018
The freight rates for commercial vehicles declined by around 3-4% for December 2017 given the oversupply of trucks on back of heavy discounting and pre buying ahead of the mandatory air conditioning norms. January 2018 is likely to see flat freight rates due to uncertainty of implementation of E way bill from February 1,2018. However we expect the freight rates to stabilize once the E-Bill is introduced and freight transport smoothens.

Reliance Industries (RIL): Along with its partner BP has started seeking customers to sell gas from their R-series field (expected to start production in 2020 and reach peak level of 30-35mmscmd in two years) as per media reports. Reliance Industries (RIL) and its partner BP will sell gas through India Gas Solutions (IGS is a 50:50 JV between two companies) – long term positive for RIL. 

Transformers and Rectifiers (India) Ltd: The company has received the order for 53 units of transformers amounting to Rs 126 crores from U.P. Power Transmission Corporation. With this order order book stands increased to Rs 1,030 crores; positive

IDBI Bank: The Securities and Exchange Board of India (Sebi) had conducted an inspection into irregularity in the share-trading of SIL and into the possible violation of various provisions by IDBI Bank and has disposed the case against IDBI Bank – Sentimentally Positive

Yes Bank: The bank has announced that it will mobilise USD 1 billion by 2023 and USD 5 billion till 2030 for financing solar energy projects in India – Sentimentally positive

Ashoka Buildcon: receives completion certificate for its Mudhol Nipani road project (entitled to receive annuity). Positive for Ashoka Buildcon.

Axis Bank: In a surprise move, Axis Bank hiked its lending rates by a marginal 0.05 percent across all tenors.- Positive Read thru as albeit small, the hile will help protect it's margins.

JSW Holdings, Binani Industries: JSW group has emerged as the highest bidder for Binani Cement (subsidiary of Binani Industries) with a bid worth Rs5,900 crore as per media reports. Positive read thru for JSW Holdings and Binani Industries.

MORE NEWS

HUL Q3 profit jumps 28% YoY to Rs 1,326 crore 
Direct tax mop-up jumps 19% to Rs 6.89L cr this fiscal
PFRDA relaxes withdrawal norms under NPS
Satyam case: PWC moves SAT ​against SEBI ban 
India to auction 55 oil and gas exploration blocks
Bitcoin slumps to $10,000, half its peak price
Sri Sri's FMCG brand Tattva to open 1000 stores
Centre mulls permitting 100% foreign investment in private banks
JFE-JSW, ArcelorMittal, Vedanta to bid for Bhushan Steel
RITES files draft papers with Sebi to raise Rs 6 billion via IPO
Jubilant Life Sciences Q3 net surges 80% to Rs 2.12 bn on robust sales
Ashok Leyland signs pact with Israel-based Phinergy for electric CVs
BofA Q4 net slumps on $2.9-bn tax charge, adjusted income beats estimates
Govt cuts 2017/18 additional market borrowings to Rs 20K cr
Adani group to invest Rs.750 cr in West Bengal
JB Chemicals & Pharma gets European GMP approval for Gujarat facility
Huge opportunity to export LNG to India, China: IEA chief
India to be $5 trillion economy in 8-9 years: Suresh Prabhu 
Govt to auction 55 oil, gas exploration blocks on Thursday
Tata group hires EY to explore sale of oil and gas business
Amalgamation scheme: Tata Power shareholders’ meet on 19 February
Sensex crosses 35000 as govt moves to contain fiscal deficit
Srei reports 56% jump in Q3 net profit at Rs105 crore
Amber Enterprises IPO fully subscribed on Day 1
Sugar processors undermine margins to meet payments to cane farmers
Fitch downgrades outlook on Adani Transmission to negative
Xiaomi claims responsibility of WhatsApp ‘obsolete’ error problem
Bharti Infratel Q3 net profit drops 6% to Rs 585 crore
Trai to meet telcos on January 23 to chart out 2018 agenda
 All 14 types of Rs 10 coin valid, legal tender: RBI
HSBC InvestDirect Securities settles case with Sebi
Israel and India join hands to boost defence ties
Israel PM speaks of hard power, praises India on ease of doing biz
New licencing system for contract staffing firms on cards
HPCL’s 51.11% stake sale to ONGC may fetch moderate gains

  STOCK IN NEWS 

•Banks: Government mulls allowing 100 percent FDI in banking. (CNBC TV-18)
•Varun Beverages to acquire franchisee rights for Pepsico India in the state of Bihar.
•PNB Housing Finance gets RBI nod for $500 million masala bonds.
•Adani Power gets 49 percent stake in 600 MW Korba West Power.
•TCS expands partnership with Shure Inc to establish global development center.
•Ashoka Buildcon receives completion certificate for its Mudhol Nipani road project.
•Pitti Lamination starts commercial operations at its Aurangabad plant.
•Premier Explosives announces successful test firing of PSOM-XL strap-on motor.
•Piramal Enterprises explores re-entry into Indian formulations business as Abott non compete expires this year

Wednesday, 17 January 2018

17 January 2018 - Views & News

MARKET INSIGHT

The Nifty is likely to open on flattish note.  Nifty has formed Engulfing bear candle on the daily chart. These observations reveal that there is scope for a consolidation in the market before the Nifty stretches further on the upside. From near term perspective 10597-10566 will act as a key support zone. On the other hand, recent high of 10782 will now pose as a crucial hurdle beyond which wave extension can be expected on the upside. Overall short term target of 10860 remains intact with reversal tightened to 10500.

Nifty Spot Levels

Support 10640 – 10597 – 10552
Resistance  10782 – 10860 - 11000


GLOBAL MARKET

 •Wall Street paused its rally on Tuesday, weighed down by weakness in General Electric shares and as lower oil prices dragged down the energy sector.
•The CBOE Volatility index , a widely followed measure of market anxiety, rose to a more than 1-month high of 11.66.
•The Dow Jones Industrial Average fell 10.33 points, or 0.04 percent, to 25,792.86.

Today's Corporate Action 17th Jan Ex Date

FIBERWEB Bonus issue 1:1
SINGER Stock  Split From Rs.10/- to Rs.2/-
SJVN Buy Back of Shares 

RESULTS TODAY

ADANIPOWER, ADANITRANS, DCBBANK, HINDUNILVR, INDOTHAI, INFRATEL, JUBILANT, JYOTHYLAB, MINDTREE, PODDARMENT, SREINFRA, STRTECH, TATASPONGE, TIRUMALCHM, ZEEL

TOP NEWS

Sun Pharma: gets a license to sell the generic version of Linzess (Linaclotide capsules – used to treat bowel conditions) in US from Feb 01, 2031(subject to USFDA approval) or earlier under certain circumstances, after settling patent litigation – Sentimental Positive for Sun Pharma.

Reliance Industries (RIL): As per media reports, the company is believed to have declared 30% higher refining capacity for its export oriented Jamnagar refinery to 35.2mtpa from capacity of 27mtpa of petroleum planning and analysis cell (PPAC). We highlight here that refiners carry out de-bottlenecking activities for capacity expansion. We will wait for clarity from management post Q3FY2018 results to incorporate higher throughput from increased capacity - positive read through for RIL.

GAIL: Renegotiated long-term LNG deal with Gazprom; positive read through
GAIL India (GAIL) has successfully re-negotiated the pricing and volume of LNG to be supplied under the 20-year contract by Russia’s Gazprom. The LNG supply is scheduled to start from Q2CY2018. GAIL has not provided the fine details of revision in the pricing terms and volume offtake (initial contract was signed in 2012 to supply 2.5mtpa of LNG on discharge-ex-ship basis) – positive read through for GAIL. 

IT Sector: Gartner says global IT spends to touch $3.68 trillion this year – positive read-thru for Indian IT companies
Gartner said that global IT spending is expected to grow 4.5% to $3.68 trillion this year. Projects in digital business, blockchain, Internet of Things (IoT), and progression from big data to algorithms to machine learning to artificial intelligence (AI) will continue to be main drivers of growth. TCS digital business grew 13.9% QoQ in Q3FY2018, while Infosys new services grew 6.4% QoQ.

Symphony: receives patented in South Africa for wall mounted air cooler; also launched 2 new product ranges; positive read thru


 OTHER NEWS

Hindustan Unilever: The Company has received a notice from the Directorate General of Safeguards (DGS), which has been checking to make sure companies are passing on the benefits of lower levies under the goods and services tax (GST) regime to consumers – sentimentally negative for the stock; the notice includes order directing companies reduction in prices or refund of benefits availed to consumers

Tata Motors (JLR): Launches a new range of Range Rover Evoque priced at Rs 50.2 lakhs in India – Positive.
Jaguar Land Rover has launched the 2018 version of its Range Rover Evoque Landmark Edition in India priced at Rs 50.2 lakhs. The new edition of the vehicle hosts enhanced design, desirability and all-terrain capability. The new vehicle is powered by a 2-litre Ingenium diesel engine. It has features such as WiFi hotspot, keyless entry and powered gesture tailgate as standard on all variants. 

Hero Motocorp: Has launched the 2018 edition of Hero HF Dawn priced at Rs 37,400 (exhowroom – Bhubaneshwar) – Positive.
Hero MotoCorp has launched the 2018 edition of its most affordable motorcycle (HF Dawn). The 2018 Hero HF Dawn is currently launched in Orissa at a price of Rs 37,400 (ex-showroom, Bhubaneshwar). The motorcycle has been reintroduced after it was retired in May last year with the onset of BS-IV emission norms. The 2018 Hero HF Dawn comes with a sportier styling and gets  complete blacked out theme and most of the chrome finish have been replaced with all-black elements. Besides this, the motorcycle gets new graphics this time that makes it look significantly different in comparison to the outgoing model.

TCS: signs $690 million deal with Prudential Plc's unit – positive (news was during yesterday’s trading hours)
TCS signed for $690 million deal with M&G Prudential to digitally transform their business and deliver enhanced service for its UK savings and retirement customers. This agreement is over 10 years and covers the support of over 4 million customer policies.

FMCG: Patanjali Ayurved announced its foray into e-commerce by partnering various online players -  Would increase competition for incumbents such as Dabur, Marico and HUL in the online space
Patanjali Ayurved announced its foray into e-commerce for its FMCG items, partnering major players in the space, including Amazon and Flipkart, and targeting over Rs 1,000 crore this year itself. It has partnered eight players, which also include Grofers, Shopclues, BigBasket, 1mg, Paytm Mall and Netmeds, through which its entire range of products would be available online. Besides, it will also expand into new product segments such as bottled water through brand 'Divya Jal' and apparels and footwear under the brand name 'Paridhan' this year. Patanjali is also expanding its retail network in brick and mortar format and has plans to introduce more products in the value based small offering targeting rural customers. It has around 5000 exclusive stores and its products are sold at around 15 to 20 lakh kirana stores and this year it is targeting to cover 50 lakh kirana shop – the foray into the e-commerce space is a well thought out strategy in order to increase its distribution reach. The company had started trial of online sales of its Swadeshi range of products, through its platform www.patanjaliayurved.net on trial basis and got encouraging results as online sales crossed Rs 10 crore during December itself, highest online sales by any FMCG brand in a month. This would definitely increase competition for incumbents like Dabur, Marico, HUL in the long run.

Pioneer Distilleries: The company workers at its Nanded, Maharashtra manufacturing plant go on strike – negative read through for the stock as the strike by workers would hurt the company’s operations

Bajaj Finance: The NBFC has said it will acquire 12.60 per cent stake in mobile wallet company Mobikwik as against 10.83 per cent stated earlier due to a change in conversion price of the compulsory convertible cumulative preference shares – Neutral Read thru

Andhra Bank, SBI: Andhra Bank and State Bank of India have jointly put on the block bad loans worth over Rs 5,000 crore as they look to avoid steep provisioning if these loans don't get resolved by March 31. Andhra Bank has put on the block the 112 accounts with outstanding loans of Rs 3,251, while State Bank of India has done the same for 15 accounts amounting to Rs 1,833 crore – Sentimentally Positive

Grasim Industries: Birla Cellulose, the pulp and fibre business of the aditya birla group has launched its premier international design studio in New York. It is expected to create visibility of Birla Cellulose as a brand and a platform to boost garment exports. Positive read thru for Grasim Industries.

Capacite Infraprojects: India Ratings and Research has upgraded CIL’s long term issuer rating to ‘IND A’ from ‘IND A-‘, while resolving the rating watch positive. The outlook is stable. Positive read thru for the stock.

MORE NEWS

Government to deregister 1.20 lakh more companies
Global IT spend to touch $3.68 tn this year: Gartner
Bring oil, natural gas under GST: CII to govt
Citi reports $18.3 billion loss on tax law in Q4
India earned $27 bn from foreign tourism: Minister
India to launch auction for 55 exploration blocks
Sebi to vet Tata Sons bid to go private, evaluate minority interest
Black money stashed in Singapore banks since 2008 now under govt scanner
Patanjali to soon roll out textile portfolio 'Patanjali Paridhan': Ramdev
MCX Q3 net declines 45% to Rs 187 mn on lower volumes
Newgen Software Rs 4.25-bn IPO receives 20% subscription on day one
IndianOil in tie-ups with Israeli firms 
Bajaj Finance to acquire 12.6% stake in Mobikwik
TCS bags $690-million contract from M&G Prudential
‘Expect India’s rank to improve in global IP index’ 
Biscuit manufacturers call for lower GST rate 
Food subsidy bill may swell by 10% in 2018-19 budget
GAIL renegotiates LNG deal with Gazprom
Bayer expects CCI nod by April-May for $66 billion Monsanto deal
Bitcoin falls 20% as fears of cryptocurrency crackdown linger
Baba Ramdev’s Patanjali goes online, ties with Amazon, Flipkart and 6 others
RIL declares 30% higher refinery capacity at Jamnagar plant
After Qatar and Australia, Russia lowers LNG price for India
Higher tax provision caps ICICI Lombard net growth at 5%
Dow Jones Industrial Average hits 26,000 for first time on earnings optimism
GoM on GST Network to meet on Wednesday
Resolution road: ONGC-HPCL deal went through a roller-coaster ride
Four rail corridors to complete 'golden quadrilateral' likely to get nod in budget
Evolution of 5G ecosystem to take 18-24 more months: Rajan S Mathews
Bank of India seeks to exit STCI Finance this fiscal
IOC braces for a green future
Sebi set to issue final order against 5 brokerages involved in NSEL scam

MORE NEWS

•Sun Pharma got a license to sell the generic version of Linzess in U.S. from Feb. 1, 2031 after settling patent litigation.
•Symphony’s wall mounted air cooler patented in South Africa; launched 2 new product ranges.
•SAL Steel informs of closure of corporate insolvency process.
•GAIL, Gazprom sign pact for re-negotiated long-term LNG sale.
•Texmaco Rail considering setting up logistics hub and food park in West Bengal.
•Pioneer Distilleries’ workers at its Nanded, Maharashtra manufacturing plant go on strike.

Tuesday, 16 January 2018

16 January 2018 - Views & News


TOP NEWS

Lupin: plans to come up with regular product launches every 3-4 months and aims to be present across all the major OTC product categories – Positive for Lupin

BSE: The Board of Directors of BSE Ltd has approved the Buyback proposal for purchase by the company of its fully paid-up equity shares from the shareholders at a price not exceeding Rs 1,100 per/share from the open market through stock exchanges. The buyback shall not exceed Rs 166 crore and the maximum Buyback size represents 9.99% of the company’s paid up equity capital -- Positive


Bharat Bijlee : Bharat Bijlee receives ~ Rs 47 crore from MIDC  towards cost of acquisition of land ; positive
Pending execution of an agreement, Bharat Bijlee has received ~ Rs 47 crore from MIDC, the lessor, toward cost of acquisition of a small part of its factory land situated at Airoli, Navi Mumbai. The proposed acquisition is for Airoli to Katai Naka Elevated Road Project

Tech Mahindra: partners Israel's ContextSpace for cybersecurity – positive read-thru
Tech Mahindra said it has partnered with Israeli firm ContextSpace Solutions to develop the world's first global software privacy ecosystem, MyData Shield. Besides, it has also launched 'Tech Mahindra NxT' to power start-ups in Israel, under which it will engage with 20 firms.

OTHER NEWS

Tata Motors: launches branded oils for CV range; positive
Tata Motors launched branded oils for its range of commercial vehicles (CVs) in the domestic market. The product range includes engine oils, gear oils and rear axle oil for commercial vehicles manufactured by Tata Motors for both on and off road applications segment. Launched in four variants, Tata Motors Genuine oil is specially formulated for new generation engines to enhance the performance of its vehicle. ( better mileage, longer aggregate life or protection). 

Larsen & Toubro (L&T): Wins Rs 1,310 crore contracts across business segments; positive
Water & Effluent Treatment Business has won orders worth Rs 631 crore including a contract from Bihar Urban Infrastructure Development Corporation Ltd to lay a new sewerage network and construct pumping stations at Saidpur. The Buildings & Factories Business has won an order worth Rs 340 crore. Besides, its Power Transmission & Distribution Business has bagged orders worth Rs 339 crore.

Chemicals: Government is likely to unveil a policy for 15% blending of methanol in petrol; RCF planning to re-start its Methanol plant -  Positive for RCF, Deepak Fertilizers and GNFC
The Government is planning to introduce a policy by the month end to blend 15% methanol blend in petrol. As the cost of methanol is lower than petrol (Rs 22 per litre), blending is expected to bring down the cost of petrol  and also curb the pollution levels. The move is expected to benefit methanol manufacturers like Deepak Fertilizers, GNFC and RCF.   Secondly, given the increasing demand for methanol and increasing prices, RCF is considering commencing operations at its Methanol plant which was shut down since a year.

Restaurant industry: Barbeque Nation Hospitality has received markets regulator Sebi's approval to raise an estimated Rs 700 crore through initial public offering which comprises of fresh issue of shares worth Rs 200 crore and an offer for sale of up to 61,79,000 equity shares – sentimentally positive for Specialty Restaurants, Jubilant Foodworks

Seamec: The company's Vessel SEAMEC PRINCESS is deployed with L&T Hydrocarbon Engineering for a period of about 19 days. The total value of the Contract would be around US$ 1.26 million. Positive for Seamec.

Tata Motors: Launches the Tiago AMT (automatic) variant in Bangladesh priced at 14.95 lakh taka. The  car will have a 1.2 liter petrol engine and comes with four gear positions-- automatic, neutral, reverse and manual and two drive modes – sports and city. Positive.

Vascon Engineers sold 85% of the units of its new residential project Forest Edge on day one. Positive read thru for Vascon Engineers.

IndiGrid: The Board of Sterlite Investment Managers acting as the investment manager of the trust has approved a distribution per unit of Rs 2.89 per unit for Q3FY2018.

Indian Oil Corporation (IOCL): Has signed an initial pact with Israel's Phinergy Ltd for developing ultra lightweight metal-air batteries, which can be used in electric vehicles (EVs) as per media reports – no near term benefits; sentimentally positive for IOCL .

M&M: Opens bookings for low cost version of Mahindra Mojo UT300 motorcycle (expected to be priced at around Rs 1.5 lakhs); positive
Mahindra two-wheelers is all set to launch a low-cost version of its flagship motorcycle Mojo named as Mahindra Mojo UT300. The bookings for the motorcycle has commenced at select outlets and the deliveries are expected to start by first week of February. The Mojo UT300 has changes as compared to the Mojo which include a carburetor instead of a fuel injection system, conventional telescopic forks at the front and a single silencer instead of 2 in the Mojo. The motorcycle will compete with the likes of the Bajaj Dominar and is expected to be priced around Rs 1.5 lakhs (ex-showroom).

MORE NEWS

India to inspect pharma cos' factories in US
Govt to split Air India into four parts ahead of sale
RBI may revise upwards inflation forecast for the year
Trade deficit touches 3 year high in December 
50K telecom jobs may be axed in next six months
PM promises more reforms, invites Israeli biz
Gold imports surge 72% in Dec on high demand 
Capital expenditure done, Reliance Industries now eyes debt reduction
Rs 500-bn additional borrowing reflected in our forecast: William Foster
NPA disclosure rules: Sebi keen on implementing a revised proposal
Essar Oilfield Services eyes 20% rise in revenues at Rs 3.6 bn in FY19
Invest at least $1 billion into Aircel or go to NCLT, lenders warn Maxis
Mercator restarts coal operations in Indonesia
Kodak may bring crypto coin to India 
JSW Cement sees synergy in Monnet Ispat, Bhushan Steel buyout
IDBI Bank board okays preferential issue of capital to GoI
EDII-incubated startups get Yes Bank funding of Rs.1.16 cr
SBI calls bids to sell Bilpower properties in Baroda
HDFC crosses Rs3 trillion market cap for first time
WPI inflation decelerates to 3.58% in December
Idea Cellular, Vodafone may start operating as one entity from April
Bank of India postpones Rs3,000 crore QIP-issue plan
Govt to break up Air India into four parts to speed up privatisation process
Lupin forays into OTC segment; eyes Rs 300 cr turnover in 5 years
PE investments in realty up 17% in 2017,dips 29% in residential
Coal price hike to impact secondary steel makers, says Icra
Larsen & Toubro wins Rs 1,310 crore contracts; stock down
US auto industry jobs down under Donald Trump
HDFC, ICICI help Sensex to touch new record high, ends at 251 points higher
Fuel prices hit new record; Diesel at Rs 61.74/L, petrol Rs 71.18/L
Railways plans roadmap for three-fold increase in production 

Monday, 15 January 2018

15 January 2018 - Views & News

MARKET INSIGHT

The Nifty is likely to see positive opening. The short-term trend is bullish as the index is making higher top higher bottom formation. The index is likely to inch higher towards the short term target of 10860 in the coming trading sessions. On the way down, 10590-10600 will act as crucial support.  

Nifty Spot Levels

Support 10592 – 10503 – 10404
Resistance  10700 – 10785 - 10860

GLOBAL MARKET

•Wall Street continued its rally on Friday with record closing highs as the fourth-quarter earnings season kicked off with solid results from banks and robust retail sales drove investor optimism about economic growth.
•The S&P 500 and Nasdaq both registered their eight record closing highs out of the first nine trading days of 2018, while the Dow boasted its sixth closing high of the year.
•The Dow Jones Industrial Average rose 228.46 points, or 0.89 percent, to 25,803.19.

RESULTS TODAY

GRANDFONRY, ZEELEARN, GALLANTT, FEDERALBNK, INDIGRID, DELTACORP, GALLISPAT

TOP NEWS

ALERT - IDFC Bank, Capital First: The companies have agreed upon a deal to merge in an all share deal subject to shareholder and regulatory approval. The share swap ratio is 139:10 where shareholders in Capital First will receive 139 shares of the IDFC Bank for every 10 shares held and the swap ratio values IDFC Bank at a discount of 12%. Post-merger, the combined entity of IDFC Bank and Capital First will have an AUM of Rs 88,000 crores; PAT of Rs 1,268 crores (FY 17); and a distribution network comprising 194 branches (as per branch count of December 2017 of both entities) serving more than five million customers across the country. – Positive read thru for Capital First as not only it is better valued in the deal, it will also get to be a bank. 

HDFC Ltd: The HDFC Board has finalised a plan to raise Rs 13,200 crore via QIP and preferential issue. The company will be raising Rs 11,301 crore by issuing 6.43 crore shares at Rs 1,726.05 per share to investors and the rest via Qualified Institutional Payment (QIP) to raise up to Rs 1,896 crore. The investors to whom the shares are proposed to be issued through preferential allotment  include Waverly Pte. Ltd. (3.01 crore shares), OMERS Administration Corporation (1 crore shares) , Silverview Investments Pte. Ltd. (92.69 lakh shares) and Carmignac group  companies (91.40 lakh shares all together) , Azim Premji Trust and PI Opportunities Fund - I (28.96 lakh shares each). - Positive read thru

IRB Infrastructure: Italian road operator Atlantia is in exclusive talks with IRB Infrastructure to acquire its operational road assets portfolio in a $2-billion deal as per media reportsPositive; though the development has not been officially confirmed by IRB mgmt

Granules India: FPI limit hiked to 49 percent from 24 percent earlier, as per RBI’s approval – positive read through for the stock


 OTHER NEWS

Tata Motors: Jaguar Land Rover to recall 8,952 cars over airbag defects in China; Neutral
Tata Motors-owned Jaguar Land Rover will recall 8,952 imported vehicles in China due to defective airbags. Jaguar XF vehicles manufactured between June 19, 2012 and October 1, 2013 would be recalled. As per the company, Gas generators of the airbags may break when airbags open, which will lead to injuries to passengers. JLR will check all the affected vehicles and replace defective parts free of charge. Neutral as JLR would recover the cost of same from vendor. 

Tata Motors: Jaguar Land Rover plans new software hub in Ireland
Tata Motors-owned Jaguar Land Rover (JLR) is mulling a new software hub at Shannon in Ireland as part of its wider plans to invest in electric and driver-less technology. It will research new technologies related to battery-powered cars and automated driving and the new site would "complement" more than 10,000 engineers in the UK . 

Power Grid: REC transfers entire stake in wholly owned subsidiary REC Transmission To Power Grid.

NBCC: Government may use land of sick PSEs for affordable housing
In a bid to provide a big push to affordable housing ahead of the next elections, land available with six loss-making central public sector enterprises has been identified to give momentum to Prime Minister's initiative for the urban poor. NBCC Ltd will develop some of the land under the Pradhan Mantri Awas Yojana. The six CPSEs, including IDPL, HMT, Hindustan Antibiotics and Tungabhadra Steel Products, have about 3,000 acres. A senior government official confirmed the development and said some of the projects would be completed before 2022. NBCC has been appointed as the land management agency to auction the real estate assets of loss-making companies and will get 0.5% of the value realised from such sales as fee, subject to a cap of Rs 1 crore. The agency will determine the current land use and its suitability for industrial, manufacturing or other purpose, according to the guidelines.

Shoppers Stop: The company allotted Rs 179.3 crore shares to Amazon. It has issued of 43,95,925 equity shares of Rs 5 each at a price of Rs 407.8 per equity share, aggregating around Rs 179.26 crore, to Amazon.com NV Investment Holdings LLC – positive read through for the stock

Tata Motors: to showcase new SUV codenamed H5 (based on Land Rover Discovery Sport platform) in upcoming Auto Expo; positive 
Tata Motors is preparing to unveil its new concept SUV that will rival the Jeep Compass. Internally called H5, the new SUV has been testing in the country and is expected to come in five- and seven-seat layouts. The two versions of the H5 will be based on the Land Rover Discovery Sport 550 platform, however, in terms of design, the two will be very different. Tata Motors' new SUV is also likely to share engine options with FCA’s 2.0-litre, four-cylinder MultiJet II diesel engine. However, there will be different states of tune for the two versions - 140hp for the five-seater and 170hp for the seven-seater. New SUVs are likely to be priced close to Rs 13 lakh for the five-seater and about Rs 15 lakh for the base trim of the seven-seater version.

HDIL: HDIL Board approves allotment of Rs 200 crore warrants to promoter at Rs 70.5 per warrant.

Power Grid: Acquired ERSS Xxi Transmission Limited which includes establishment of three new 400kV Substations and associated 400kV transmission lines in the State of Bihar

BHEL: has commissioned a 250 MW thermal power unit at the Barauni Extension project of Bihar State Power Generation Company.

MORE NEWS

Min panel's proposal to end MAT on SEZs under review
C Sivasankaran warns of ‘action’ against Cyrus Mistry
Arun Jaitley launches India’s 1st agro options contract 
Cairn India to invest Rs 37K cr to ramp up production
Govt's new audit clause may give Big 4 a serious jolt
Auto firms to report robust profit growth in Q3
Rails supplied to railways are defect free, says SAIL
NPA disclosure rules: Sebi keen on implementing a revised proposal
Govt working on new schemes for next foreign trade policy to boost exports
Finished steel exports surge 29% in Dec; imports slip 26%
Govt to auction over 9,400 'enemy' properties worth Rs 1tn
P-notes investment declines from Rs 1.31 trn to Rs 1.28 trn in November
Significant competition ahead from pvt sector: CIL chairman
SEBI permits voluntary exit of two exchanges
GDP growth not justifiable unless benefits reach farmers:FM
Doing business rankings based on hard data: World Bank 
Vedanta urges govt to resolve retrospective tax issues
Nine of 10 most valued firms add Rs. 66,619 cr in m-cap
SEBI plans rules for uniform pricing of corporate bonds
Bitcoin fever hits US real estate market
WEF ranks India 30th on global manufacturing index, Japan tops
Govt may drop proposal on self-reporting of income estimates, tax payments
Gold prices hit 7-week high on global cues
HDFC to raise Rs11,104 crore from investors including GIC, KKR
Govt plans review of functioning of independent directors
Facebook might lose $23 bn after announcing changes to News Feed
India needs more inclusive, active social policies, says economist Jean Dreze
Housing and Urban Affairs Ministry seeks three-fold hike in Budget allocation

  STOCK IN NEWS 

1.HDFC’s board approved to raise Rs 13,000 crore by selling shares to institutional investors and QIP.
2.HDIL Board approves allotment of Rs 200 crore warrants to promoter at Rs 70.5 per warrant.
3.Boards of the IDFC Bank Ltd. and Capital First Ltd. approved a merger between the two entities.
4.RBI Approves to hike FPI limit in Granules India to 49 percent from 24 percent earlier.
5.TRAI cuts international interconnect charges to 30 paise per minute.
6.Southern Petrochemicals to shut down its plants for maintenance.
7.Religare Enterprises revises value of health insurance operations over delayed sale to Rs 1,350 crore.
8.Eclerx to consider details of share buyback on Jan. 23.
9.Lasa Supergenerics to consider conversion of unsecured loans into equity at EGM on Feb. 7.
10.Filatex India’s expansion project at Dahej commences trial production.
11.Trigyn Technologies receives multiyear IT services contract worth $1.5 million from IFAD, Rome, Italy.
12.REC transfers entire stake in wholly owned subsidiary REC Transmission to Power Grid.
13.3i Infotech’s U.S. subsidiaries merge together.
14.EXIM Bank declares Venus Remedies and its directors as “wilful defaulters”.