23 August 2017 - Views & News

MARKET UPDATE

Sgx Nifty  +28 pts Dow +196.14 pts ,Nsdq +84.35 pts , S&P +24.14 pts‎, Bovespa +1376 pts , Ftse +62 pts , Dax +163 pts , Cac +44 pts , Nikkei  +119 pts now , Crude @ $47.70 brl (-0.13), Brent @ $51.65 brl (+0.07) , Gold @ 1288.92 (-2.08), Silver @ $16.951 (-0.03), Euro @ $1.1761, JPY @ $109.7400, INR @ $64.067

Today's Corporate Action 23rd Aug  Ex Date

BALAJITELE Final Dividend - Rs. - 0.4000

BHEL Final Dividend - Rs. - 0.7800

CENTRUM Dividend - Rs. - 0.0500

DALMIACEM Final Dividend - Rs. - 2.0000

DEEPIND Final Dividend - Rs. - 1.8000

GBLINFRA Consolidation of Shares 

GRANULES Interim Dividend - Rs. - 0.2500

INDIAGLYCO Dividend - Rs. - 1.0000

JOONKTOLL Dividend - Rs. - 1.0000

KCP Dividend - Rs. - 2.0000

KSE Dividend - Rs. - 30.0000

LINCPEN Dividend - Rs. - 3.0000

LOVABLE Dividend - Rs. - 1.0000

MANGLMCEM Dividend - Rs. - 0.7500

MAZDALTD Dividend - Rs. - 7.3000

PIDILITIND Dividend - Rs. - 4.7500

RAIN Interim Dividend - Rs. - 1.0000

RANEHOLDIN Dividend - Rs. - 5.0000

RUPA Dividend - Rs. - 2.7500

SYMPHONY Final Dividend - Rs. - 1.0000

SYMPHONY Interim Dividend - Rs. - 1.0000

TRIDENT Interim Dividend - Rs. - 0.6000

TVTODAY Dividend - Rs. - 2.0000

TOP NEWS

RIL: Expected to start production from ethane based new polyethylene plant in August-2017; positive read through 

Reliance Industries (RIL) is expected to start commercial production from its ethane based new HDPE/LDPE swing plant in August-2017 as per media reports. The plant has a production capacity of 0.6mmt. Positive read through for RIL.

DLF: Board meet on August 25 to review the status of the proposed rental arm stake sale to GIC (Rs12000 crore deal), if deal goes through it will be positive development for the company (finance cost will go down materially), stock to be in focus 

OTHER NEWS

Healthcare Global: to set up 12 new hospitals in 18 months - positive read through for the stock

Healthcare Global Enterprises (HCG) plans to set up a dozen new hospitals over the next 18 months. HCG plans to expand its network of cancer care centres to about 30 from 21 now, and will add few more IVF clinic's to its existing network. IVF clinics contributes one tenth of HCG's total revenues. It recently acquired a facility in Kenya’s capital, Nairobi, and is scouting for more facilities in Africa and the Middle East.

L&T: To sell some non-core businesses to become more nimble, management commented at 72nd AGM

Larsen & Toubro (L&T) hopes to monetise at least two to three non-core businesses as the engineering major hopes to bag at least one large order in the defence division.“We are redefining our core businesses. There are some businesses which are simple, small, some very competitive, and some where we lose money. So we’ve identified those and we hope at least two-three such businesses may find their rightful place elsewhere as part of much bigger companies,” chairman A.M. Naik told reporters on the sidelines of the 72nd annual general meeting (AGM). This was Naik’s last AGM as chairman of the group, as he will step down from his executive roles on 1 October but will continue as the non-executive chairman. Replying to a query of a shareholder on whether L&T would consider listing its defence business, Naik said, “We want to first grow the defence business and take it to a Rs10,000-15,000 crore size which we hope to achieve in the next five years.”

Automobiles: Industry experts expect domestic passenger vehicle industry to maintain healthy growth rate (expect 7-9% growth in FY2018 as against 9% growth reported in FY2017). Positive read thru but stock prices largely factor a similar growth rate

Shoppers Stop will sell food, books online by the next fiscal – positive read thru

Shoppers Stop will sell food and books online by the next fiscal in a stage-gated digital journey that begins this fall. Following up on its scheduled introduction of omni-channel web operations in October, Shoppers Stop would take its grocery mart HyperCity and book-and-toy store Crossword online in the next fiscal. Shoppers Stop’s e-commerce venture will fully link the 80 offline departmental stores with the online platform, integrating specialised formats such as MAC, Estee Lauder, Clinique and Bobbi Brown by October. There are at present 19 HyperCity stores in 10 cities, and 50 Crossword outlets in 15 cities. Both the retail formats operate as subsidiaries of Shoppers Stop.

Visa Steel: Operations at its Kalinganagar unit to return to normalcy, stock to be in focus .

NIIT ltd: Board approves liquidation of Netherlands-based subsidiary, NIIT Antilles NV. Liquidation to have a positive impact of approximately Rs 10 crore on the financials of the company, stock to be in focus

MORE NEWS

Tower cos can cut energy cost by 40% using green tech

Idea seeks DoT’s nod for merger with Vodafone

Infy board blaming Murthy to hide own failure: Ex-CFO

Tax dispute: Delhi HC halts 2nd arbitration by Vodafone

Murthy to address investors to take on board 

TaMo took unanimous decision to stop Nano: Mistry

UC Browser under govt scanner over data leaks

GMR lines up Rs 16,000 crore for Delhi airport upgrade

Essar Oil deal done, hurdles stay for group's steel, power firms

RBI hikes foreign investment limit in Eris Life to 49% from existing 24%

Apex Frozen Foods IPO subscribed 40% on first day

Qatar deposits $7 billion in July to offset crisis outflows

Enforcement Directorate mulls selling Mallya's shares in UB

FSSAI plans food safety index to measure performance of States 

Keeping a watch on Infosys share price: SEBI Chairman

Ashok Leyland, IIT Madras sign MoU 

LIC Housing Finance looking to boost lending to affordable home segment 3

Poland's Medicover AB picks up 22% stake in Maxcure Hospitals

Eros Worldwide offloads 1.17 cr EIML shares to pay debt

RBI moves forward to battle rupee flood

Govt eases environmental clearance rules for solar power projects

Around 100 brokers under lens for helping shell companies

Essar Oil minority shareholders to earn more on shares tendered during 2015 delisting

DCM Shriram Industries Q1 net profit at Rs32.58 crore

PM Narendra Modi tells CEOs to help boost agricultural economy

India’s foreign reserves at record high: DBS

IRL impact: Hindustan Copper Ltd decides no more exclusive foreign partners

L&T to sell some non-core businesses to become more nimble

Micro-finance institutions’ loan portfolio increases 26 pc in Q1 to Rs 35,000 cr

Bank strike impacts Rs 22,000 cr business, some ATMs go dry

RIL mulls entry into power storage business with BP

Name & shame default strategy stepped up as NPAs mount

22 August 2017 - Views & News

MARKET INSIGHT

Markets are likely to open positive. Nifty is expected to breach the recent low of 9685 & head towards the short term target of 9600 and 9850-9884 will now act as a key resistance zone.

Nifty Spot Levels

Support 9685 – 9600 – 9543

Resistance  9850 – 9884 - 9947

GLOBAL MARKET

• The S&P 500 ended up slightly on Monday after two days of declines, though simmering tensions between the United States and North Korea kept investors on edge and a drop in oil prices weighed on energy shares.

• Investors began to turn their focus to the Jackson Hole meeting of Federal Reserve Chair Janet Yellen and other global central bankers, due to start later this week.

• The United States and South Korea began long-planned joint military exercises on Monday, heightening tensions with North Korea, which called the drills a "reckless" step toward nuclear conflict.

• The Dow Jones Industrial Average rose 29.24 points, or 0.13 percent, to 21,703.75.

 Results Today: 

AGRODUTCH, AHLUCONT, CARERATING, GATI, MAYURUNIQ, MORARJEE, MUKANDENGG, MUKANDLTD, PRICOLLTD.

TOP NEWS

Lupin: Gets Establishment Inspection Report (EIR) for Aurangabad plant – Sentimentally positive for Lupin.

Lupin receives EIR for Aurangabad plant which contributes ~2-4% of sales. Similar clearance for Indore (Unit -2) and Goa plant are awaited which would mean regulatory hurdles at key plants is behind.

Westlife Developers: McDonald’s snapped its franchise agreement with Connaught Plaza Restaurants Ltd (CPRL), which operates 169 Mcdonald outlets in north and east India - sentimentally positive for Westlife Developers (operates McDonald stores in West and South India) as it could be appropriate tie up for the US brand to continue its operation in north and east India

Oil & Gas: Upstream PSUs will get an input tax credit on production of value added products; marginally positive for ONGC and Oil India

Upstream oil and gas companies can avail an input tax credit on goods and services tax paid only on the value added products that are manufactured and covered under GST. Marginally positive for upstream PSUs (ONGC and Oil India) as value added products accounts for small portion of their production while oil and gas (outside the levy of GST) production accounts for majority of the production .

OTHER NEWS

Branded apparel: market in India may swell to Rs 2,50000 crore by 2020; top brands from Russia, Brazil and Japan are looking to enter lucrative market through appropriate  tie-up _ positive read through for Arvind and Aditya Birla Fashion

ONGC: Board of directors approves acquisition of government's 51.11% stake in HPCL; positive read through for ONGC.

Oil and Natural Gas Corp's (ONGC) board of directors has given in-principal approval to acquire government's 51.11% stake in Hindustan Petroleum Corp (HPCL). Positive read through for ONGC.

Bank of India: Bank of India is contemplating to cut its savings bank and other deposits rate – Sentimentally positive

Tata Motors: To invest Rs 4,000 cr in the domestic business; targeting to return to profitability; positive read thru

Tata Motors will invest more than 40 billion rupees ($625 million) in the India operations to boost sales of its passenger and commercial vehicles as it looks to return to profit. The company has committed to invest 25 billion rupees in its passenger vehicles unit, and will pump in more than 15 billion rupees in its commercial vehicles business this year and annually over coming years. Tata Motors has been trying to turn around its loss-making domestic unit by modernising products, improving efficiency, cutting costs and streamlining its organisation and supplier base. It has decided to reallocate resources and realign priorities to strengthen the operations which would add Rs 1,500 crore resulting in swift turnaround.

Indian Hotels: plans capex of Rs3,000 crore over the next 5 years; waiting for 3 clearances to develop Sea rock property – long term positive for the stock

Indian Hotels Company has assigned a capex of Rs3,000 crore for the next five years, of which Rs300 crore has been allocated for next year. With plans of having 21 new properties between the Taj and Ginger brand of hotels, the company is raising a Rs1,500- crore rights issue to reduce its debt levels and also use the proceeds for refurbishing and developing new and existing properties. About two-three more clearances are required for Sea Rock and the next one is going to be environmental clearance for the property. The company is hoping to get all approvals in the near future.

Cadila & Torrent Pharma: As per media reports, Cadila and Torrent pharma are evaluating potential merger between the companies. However, both the companies have strongly denied it.

 V-Guard Industries Ltd: completes acquisition of 49.43% of equity shares of GUTS Electro-Mech Ltd; neutral read thru

Mcnally Bharat: received an order for work of EPC of 8 MTPA capacity Coal Handling Plant (CHP) with allied infrastructural facilities and Operation & Maintenance (O&M) of the CHP for initial two years and Supervision & Handholding for one year at Manoharpur Coal Mine of Odisha Coal and Power Limited (OCPL) for a value of Rs. 514 Crores. Positive read thru.

Blue Star: wins orders worth Rs500 crores – Positive

It has won Mechanical, Electrical & Plumbing (MEP) orders of more than Rs500 crores from various customers. These orders include Rs 145 crores order from Sands Infiniti, a 4.2mn sq ft IT Park Project in Kochi Smart City, Rs 160 crores order from My Home Group in Hyderabad for a green building project In Hitec city and Rs 157 crores order from Ritz-Karlton in Mumbai for a mixed-use (Hotel-Residential) project, a 62 storey building. 

HCL Infosystems: to distribute Apple products in India, positive read-thru

HCL Infosystems will distribute Apple products, including the iconic iPhone, in the Indian market.The company had said in July that it was in discussions with the US-based tech giant to distribute its products in India. In a regulatory filing, HCL Infosystems said it has signed an agreement for "distribution of iPhone and other Apple products" with Apple India, a confirmation of which it received today. It had signed a non-disclosure agreement with Apple India on December 23, 2016 and had expressed interest in taking up distribution of Apple products in India.

Bharti Airtel: Plans to launch bundled 4G smartphone at Rs 2,500 before Diwali to counter Jio, stock to be in focus

  

MORE NEWS

ONGC board approves HPCL takeover

Ruias shave off 67% of Rs 1.05 trillion group debt

Hong Kong clocks 40% increase in trade with India

SBI offers up to 100% processing fee waiver on loans

Govt gets Rs 42K cr tax so far in first filing under GST

EOL deal bans Ruias from re-entering oil refining

BSE to delist 200 companies from Wednesday

Tata Power enters electric vehicle charging segment

Essar Oil completes sale of assets to Rosneft-led consortium for $12.9 bn

NCLT mulls taking insolvency petition against Era Infra to larger bench

Infosys ADR holders complain to Sebi

US wants greater access to Indian agri market via tariff cuts

 USFDA makes 2 observations at Laurus Labs' Parawada unit

Indian Energy Exchange gets SEBI nod for IPO

MFIs need upto Rs 11,000 cr over next three years: Report 

Exxon, Shell, Total, RIL lead line-up to explore oil in India 

Aurobindo Pharma gets USFDA nod for HIV drug

Industry wary over government’s new pharma policy

Capital Float raises $45 million in series C led by Ribbit Capital

Govt all set to hike GST cess on luxury cars, via ordinance

NTPC seeks shareholder nod to raise Rs15,000 crore via bonds

IHCL faced ‘near-death experience’ due to acquisitions: Cyrus Mistry office

Retail inflation to be well within RBI’s 2-6 per cent target: BofAML

India consumer confidence sees largest dip in APAC: Mastercard

Boost clean energy, reduce emission or see economy dip: Piyush Goyal

Tata Motors to invest Rs 4K cr to speed up sales in India

Pai flays Sikka for blaming Murthy to cover up his 'bad performance'

Honda Motorcycle eyes to sell 6 million units in FY17-18

  

STOCK IN NEWS

1. NCLT mulls taking insolvency petition against Era Infra to larger bench

2. New Essar Oil owners focus on assets growth

3. Tata Motors to fuel business with Rs 4,000-crore investment

4. Jute Corporation looks to tie up with Patanjali

5. After Essar Oil sale to Rosneft, Ruias to pare 67% of Rs 1.05 lakh cr debt

6. 250-cc Yamaha Fazer 25 launched at Rs 1.28 lakh, to hit road next month

7. ONGC board approves HPCL takeover, constitutes panel to examine acquisition

8. HCL Infosystems to distribute iPhone, other Apple products in India

9. Visa Steel suspends Kalinganagar operations as raw material supplies stop

10. Tata Power enters electric vehicle charging segment

11. NTPC to raise Rs 15,000 cr via bonds; seeks shareholder approval

12. Tata's Indian Hotels to raise up to Rs 1,500 cr via rights issue

13. Tata Motors to pump in Rs 4k cr in FY18 to boost car, truck sales

14. Mahindra & Mahindra vehicles to get smarter with Android Auto

15. Tata Motors launches AMT-equipped Tiago at Rs 4.79 lakh

21 August 2017 - Views & News

MARKET UPDATE

Sgx Nifty  -6 pts Dow -76.22 pts ,Nsdq -5.39 pts , S&P -4.46 pts‎, Bovespa +737 pts , Ftse -63 pts , Dax -38 pts , Cac -32 pts , Nikkei  -84 pts now , Crude @ $48.72 brl (+0.06), Brent @ $52.86 brl (+1.83) , Gold @ 1288.83 (-2.77), Silver @ $16.908 (-0.092), Euro @ $1.1755, JPY @ $109.3500, INR @ $64.095

Today's Corporate Action 21st Aug  Ex Date

COMPEAU Dividend - Rs. - 1.0000

FEL Dividend - Rs. - 0.2000

FELDVR Dividend - Rs. - 0.2400

FLFL Dividend - Rs. - 0.8000

GOCLCORP Dividend - Rs. - 1.6000

HGS Interim Dividend - Rs. - 2.5000

JAYSYN Dividend - Rs. - 0.3000

MALLCOM Dividend - Rs. - 2.0000

MINDAIND Final Dividend - Rs. - 1.0000

SPHEREGSL Dividend - Rs. - 0.5000

SUNILHITEC Final Dividend - Rs. - 0.0750

SUNTV Interim Dividend - Rs. - 2.5000

SWISSGLA ividend - Rs. - 2.0000

TOP NEWS

Alert: Infosys:  Announces Rs13,000 crore share buyback at Rs 1,150 per share (buyback of close to 11.3 crore shares or 4.9% of existing equity share capital). The buyback offer is inline with management earlier indication of distributing Rs 13,000 crore to shareholders in FY18.  The offer price is at a premium of 24.5% to last closing price of Rs 923. The buyback will result in improvement in the return ratio (RoE), though there will be minimal impact on the EPS. We view this development as Neutral read-thru for the stock, however it is a good opportunity for the small investors to tender their shares in the offer on the back of good acceptance ratio and better exit level.  

View - the buyback offer is in line with management earlier indication of distributing Rs 13,000 crore to shareholders in FY18.  The offer price is at a premium of 24.5% to last closing price of Rs 923. Overall acceptance ratio is 4.9%, however for retail investors holding less than Rs 2lakhs (15% of the buyback amount reserved for retail investors, in this case it is Rs1950 crore and 1.7 crore shares. As per annual report 2017, as on march 31st 2017 retail holding less than Rs2 lakhs stood at 2.9 crore shares. So, if 100% of the retail participate in the buyback offer, the acceptance ratio will be close to 58%, in the case of lesser numbers of participation the acceptance ratio will go up further. It’s a good opportunity for small investors to cash out of Infosys (acceptance ratio of close to 58% for retail investors with holding of less than Rs2 lakh). The current ugly tussle between board and founders coupled with colossal task to find Dr Sikka replacement would affect financial performance and act as drag on the stock over the next few quarters.

Reliance Capital: Reliance Nippon Life, subsidiary of Reliance Capital, files draft prospectus for initial public offer (IPO) – Sentimentally positive for Reliance Capital (see it as one of the steps planned to unlock value for shareholders)

Banking Sector: As per media reports, the Reserve Bank of India (RBI) has identified 40 large defaulters as the next lot of firms where banks will push for an early resolution. Along with the 12 cases where bankruptcy proceedings have already started, these would account for 60-65% of the NPAs clogging the banking system – Sentimentally positive for banks

Automobiles: Truck sales to remain flat to slight negative in FY2018 due to emission and GST transition issues; negative read thru for Ashok Leyland, Tata Motors and Eicher Motors as we have factored mid single digit growth……(details in other news)

IOCL: Odisha government to restore some tax benefits for Paradip refinery; positive read through 

Odisha government has agreed to restore some of the tax incentives (including Rs700 crore per annum interest free loan) for IOCL's 15mmt Paradip refinery. The state government had earlier withdrawn the 11 years sales tax deferment benefit given to the refinery in February-2017. Positive read through for IOCL.

Laurus Labs: USFDA issues two observations for Vizag unit – Sentimentally negative

Laurus labs completed USFDA inspection at its two API facilities (Unit – 1&3) in Vizag with two observations which are procedural in nature (no data integrity issues were observed in the inspection).

HDFC Ltd: HDFC Life files DRHP with SEBI for IPO of 29.9 cr shares. HDFC will sell a 9.55% stake, while Standard Life will divest a 5.42% stake in the issue. The company shall not get any proceeds from the IPO, but could value HDFC Standard Life at Rs 46,500-47,000 crore ($7.2 billion) – Positive read thru

OTHER NEWS

United Breweries: is targeting 25% market share in niche imported beer segment by launching products from Heinken basket -positive read through for the stock

United Breweries(UBL) is targeting to capture 25 per cent share in imported beer market in India in the next 18 months by introducing global brands from the portfolio of its promoter Heineken NV. The  company has introduced in India five brands -- Sol, Edelweiss, Affligem, Dos Equis and Desperados -- from Heineken's stable in select cities like Delhi, Mumbai and Hyderabad. Further it plans to sell these brands in Goa, Gurgaon, Chandigarh and Pune in near future.

ICICI Bank: Cuts interest rate on savings deposit by 0.5% to 3.5% for deposits below Rs 50 lakh – positive read thru

Bank of India: Plans to sell bad loans worth Rs 3,169 crore to clean up its balance sheet. The sale comprises 67 accounts with a principal balance of about Rs 3,169.08 crore - Neutral read thru 

Banking Sector: As per media reports government and RBI are in talks to shore up public sector banks (PSB) capital due to higher provisioning burden - positive read thru for PSB

Automobiles: Truck sales to remain flat to slight negative in FY2018 due to emission and GST transition issues; negative read thru for Ashok Leyland, Tata Motors and Eicher Motors as we have factored mid single digit growth
As per Ashok Leyland, Truck sales growth may remain flat or slide down slightly this year as implementation of BS-4 emission norms and Goods and Services tax has hit the demand. The volumes fell by 20% yoy in April to July 2017. After a steep sales drop, the company is witnessing volumes picking up from August 2017 with positive influence from good monsoon and other macro indicators. Flat sales projection is lower than our expectations of mid single digit growth of 4-5%. Negative

Tata Motors: to introduce AMT variants of Tigor and Nexon; aims for double digit growth in PV; Positive read thru

Tata Motors is betting big on automated manual transmission (AMT) to boost sales of its passenger vehicles (PVs), expecting 50% of the product portfolio to have the technology in future. In addition to the top end variant of Tiago, the company has introduced the AMT in the mid variant as well and is targeting to increase the sales of Tiago by 10%.  (The average monthly run rate of Tiago stands at 5000 units) . Tata Motors plans to launch AMT-equipped version of compact sedan Tigor in the next three to four months, while upcoming compact SUV Nexon will have it before the end of the ongoing fiscal. For FY2018,  the company is targeting to outgrow PV industry and report double digit growth. Positive. 

Bajaj Electricals: The company has received an order worth Rs 391 crores from Transmission Corporation of Telangana to be completed in 18 months. Its scope of work includes supply, erection, testing & commissioning of 400KV QMDC line on turnkey basis; positive

Bharat Petroleum Corporation Ltd (BPCL): plans to invest Rs 18,000 crore to add 19mmt of refining capacity by 2022 as per media reports - Long term positive for BPCL.

Nava Bharat Ventures: To form a Special Purpose Vehicle in Singapore at an investment of $11 million, stock to be in focus

Sasken Technologies: Partners with PTC for collaboration in Internet of Things segment

INOX Wind : As per media reports, Russia’s Rosatom State Atomic Energy Corp. is eyeing an investment in INOX’s wind turbine manufacturing business to gain control over the supply chain in India’s wind power sector. This will help Rosatom to rein costs and offer competitive tariffs in India’s wind power space; positive read through

MORE NEWS

Essar to announce closure of $13B Rosneft deal today

RCom and Aircel creditors may challenge NCLT order

Defaulters owe 27% of total amount to SBI alone

322 infra projects see cost overrun of Rs 1.71 lakh cr

Aadhar may soon become compulsory for stock trades

Forex reserves may hit $400 bn by Sept: Morgan Stanley

McDonald's likely to challenge NCLT's Bakshi order

Govt gears up to list IRFC, IRCTC by January

Two fixed deposit holders take JP Associates to NCLT

Situation not alarming, monsoon to improve: IMD

FPIs pull out Rs 7,344 cr from equities in Aug, flee to safe haven assets

HDFC Standard Life, 2 govt insurance firms file for IPOs worth Rs 20K cr

Finished steel exports surge 64% in July yoy, imports up42%

India pitches $350-m investment ideas to Taiwan electronic makers

Honda Cars gets eco clearance for Rs. 1,577-cr expansion project in Rajasthan 

'June quarter profit of Nifty 50 cos reflects underlying weakness in economy' 

Bank unions threaten to strike work on Tuesday; services may be hit

'Steps taken to strengthen economic ties with SE Asian nations'

Sebi to chart out long term cyber security plans for markets

Defence firms eye billion-dollar chance for ‘made in India’

3 insurance companies file IPO papers in 3 weeks, may fetch Rs20,000 crore

Indian Oil to invest Rs52,000 crore on Paradip refinery

Gland Pharma investors weighing 74% stake sale to Fosun in alternative plan

Govt plans to offload more SUUTI stocks separately this year

Mahindra & Mahindra tries out options to regain grip in utility vehicle space

NCLT must treat home buyers at par with banks: Assocham

GST to enable brand licensing industry to grow in India

NPA resolution not to liquidate companies, but to help save them: FM Arun Jaitley

Bankruptcy code can help deepen bond markets: Tyagi

NPA resolution: RBI chief calls for recapitalisation of banks

18 August 2017 - Views & News

MARKET UPDATE

Sgx Nifty  -58 pts Dow -274.14 pts ,Nsdq -123.19 pts , S&P -38.10 pts‎, Bovespa -617 pts , Ftse -45 pts , Dax -60 pts , Cac -29 pts , Nikkei  -173 pts now , Crude @ $46.95 brl (-0.14), Brent @ $50.81 brl (-0.05) , Gold @ 1293.73 (+1.33), Silver @ $17.026 (-0.02), Euro @ $1.1716, JPY @ $109.3400, INR @ $64.199

Today's Corporate Action 18th Aug  Ex Date

BLUECHIPT Dividend - Rs. - 1.5000

GMM Interim Dividend - Rs. - 0.7000

INDIGO Dividend - Rs. - 34.0000

IOC Final Dividend - Rs. - 1.0000

JUBLFOOD Dividend - Rs. - 2.5000

KIRLOSIND Dividend - Rs. - 20.0000

KPRMILL Dividend - Rs. - 0.7500

KSCL Interim Dividend - Rs. - 3.0000

L&TFH Dividend - Rs. - 0.8000

LUDLOWJUT Dividend - Rs. - 2.5000

NATCAPSU Final Dividend - Rs. - 1.0000

PURVA Dividend - Rs. - 2.2500

RELCHEM Dividend - Rs. - 1.0000

SIYSIL Dividend - Rs. - 15.0000

SURYALAXMI Dividend - Rs. - 1.0000

TOP NEWS

Tourism: Terror attack in Barcelona will halt the performance of the business and will reduce the tourist attraction in European countries – negative read through for Cox & Kings (especially for Meininger business) and Thomas Cook India

MCX: SEBI asks the exchange to place auditor’s report before board, take appropriate action (involved in treasury mismanagement) – stock to remain in focus …..(details in Other news)

Liquor: Half the liquor outlets remain shut post the highway liquor ban, liquor industry feels the pinch – negative for liquor companies (especially large companies such as United Spirits, United breweries and Radico Khaitan, which has pan India presence)

More than half of 30,000 liquor vendors have shut downed their shops on April 1 after the Supreme Court banned sale and serving of alcohol within 500 metre of state and national highways. Industry had initially expected most liquor shops and bars to either relocate or reopen in few months. But now expects the situation to normalise by next year. On the positive note, the top court last allowed authorities to de-notify state and national highways passing through municipal limits to let liquor vends along highways in cities and towns resume business.

HPCL: Government of Rajasthan and HPCL signed agreement to set-up refinery at Barmer; positive read through for HPCL

Rajasthan Government has signed an agreement with Hindustan Petroleum Corporation Limited (HPCL) to set up a joint venture company HPCL Rajasthan Refinery Limited to establish Rs 43,129 crore refinery-cum-Petrochemical Complex at Barmer as per media reports. HPCL will have 74% stake and the state government 26% partnership in the new company. Positive read through for HPCL.

UB HOLDINGS: BSE-NSE to suspend trading in the shares from Sep-8th 2017 due to noncompliance , Entire promoter holding frozen with immediate effect

Mindtree: Buyback starts on August 18 and end on September 1st 2017 ( Buyback price at Rs625 per share, will buyback 2.5% of paid up capital), stock to be in focus

OTHER NEWS

Raymond: Acquires Ansell’s stake in Brand Kamasutra – positive as this will consolidate Raymond’s presence in FMCG Business 

Raymond Group acquires 50% of Ansell stake in JK Ansell Company for 100% ownership of its Sexual Wellness, personal care business under KamaSutra. This acquisition will pave the way for Raymond to further scale up the FMCG Business and unlock the immense potential of Brand KamaSutra globally and will draw synergies across FMCG Businesses that already has JK Helene Curtis, a group company of Raymond. Raymond FMCG Business currently has a strong retail presence through 0.25 million retail outlets including 90,000 pharmacies in the country and exports to South East Asia, Middle East and Africa. 

Tourism: India has registered a growth of over 15.7 per cent in foreign tourist arrivals (56.74 lakh arrivals as against 49.03 lakh in the corresponding period last year) from January to July this year, with many opting for e-visa facility – positive read thru for Thomas Cook, Cox & Kings domestic leisure travel businesses

IOCL: Resumes production at its PE and PP plants; positive read through 

Indian Oil Corp (IOCL) has completed maintenance turnaround at its polyethylene (PE) and polypropylene (PP) plants at Panipat. The plants were shutdown in mid-July for maintenance. PE plant has HDPE capacity of 0.3mmt and LDPE swing capacity of 0.2mmt while PP plant has capacity of 0.6mmt. Sentimentally positive for IOCL.

Maruti Suzuki: Launches the Ciaz – S, a sporty version of its sedan Ciaz with prices starting Rs 9.39 Lakh; Positive

Maruti Suzuki has launched a new variant of Ciaz named as Ciaz S priced at Rs 9.39 Lakh for petrol and Rs 11.55 Lakh (ex showroom Delhi) for diesel variant. T he Ciaz S has been refreshed with a spoiler pack – front, side and a rear underbody plus trunk-lid spoiler, adding a distinctive look and enhancing the aerodynamics of the car. The new variant would further strengthen the position of Ciaz in the passenger vehicle market and could lead to market share gains for the company

MCX: SEBI asks the exchange to place auditor’s report before board, take appropriate action – stock to remain in focus

SEBI has directed MCX to place the audit report findings before its board of directors and take appropriate action against those involved in treasury mismanagement. According to the report, the exchange had invested in schemes with very low corpus (less than Rs 500 crore) which was not in conformity with the policy of the exchange and despite having been earlier warned by the audit committee. The approval notes do not reveal the corpus of the scheme; the details were not shared with the investment committee subsequently.

HDFC Ltd: As per media reports the company is likely to file DRHP for HDFC life today, looks to dilute 15% stake – Positive read thru for HDFC Ltd

Somany Ceramics: Sudha Somany Ceramics, an Associate of Somany Ceramics is setting up a facility in Andhra Pradesh to produce about 5.00 million square meters of vitrified tiles. The same is expected to be commissioned in the last quarter of financial year 2018-19. Positive read thru for the stock.

Infosys: ATP in association with Infosys launches new PlayerZone bringing an enhanced digital experience for players

ATP and Infosys announced the launch of a new 'PlayerZone' app and website. The revamped PlayerZone, allows users to engage with each other and access information across a wide range of operational aspects related to life on Tour. The new app will increase engagement with the next generation of players and provide a central portal of information as players' progress through different stages of their career.

Bharti Airtel: To hold shareholders, creditors meet in September on Telenor merger deal.

Telecom: IMG meeting on telecom postponed to August 22

The Inter-Ministerial Group (IMG) constituted to suggest measures to ease the financial stress in the telecom sector, which was supposed to meet today, will now meet on August 22, and it is likely to come out with the final report on suggestions for the industry on the same day.“The meeting has been postponed to August 22 as some of the members were not available for the meeting on Friday. The IMG was set up on May 16 to work on the stress in balance sheets in the telecom sector, and has been studying balance sheets of the past three years (2014-15, 2015-16 and 2016-17) of telcos. Meanwhile, on its last its meeting on August 11, the IMG had discussed that a policy intervention may not be required as ‘green shoots’ in the telecom sector have started to appear in the first quarter.

 MORE NEWS

Quarterly headline inflation in first half to be between 2-3.5%: RBI

Govt mulls FDI norms easing in print media, construction, retail

Doubling of minimum wages to hit exports, jobs: AEPC

NPPA may lose power to fix drug prices in new policy

Govt extends GST return filing deadline to Aug 28

GTC puts land parcel on the block for third time

Economists expect GVA to grow higher at 6.3-6.5% in Q1FY18

After shell firms, govt looks to weed out defunct LLP firms

Mutual funds pip FIIs in net investments

Moody's upgrades Asia steel industry outlook to stable from negative

Tata Global to introduce ready-to-drink green tea

Grant Thornton: PE funding up 48% to $1.22 billion in July

India hopes to shoot up in World Bank’s ‘ease of doing business’ ranking

Draft pharma policy dilutes powers of pricing regulator

Infra fund to start lending soon, close to finalising investments

Srei Infrastructure arm to hit capital markets to raise Rs. 1,800-2,000 crore

18 PSBs among top 20 banks with highest gross NPA ratios: CARE

Taking aim at China, India tightens power grid, telecom rules

SBI planning IPOs of two regional rural banks in the next one year

South-west monsoon deficit could worsen farm distress

Govt unwilling to let PSU banks skip bond payments, says Fitch

Infosys board to consider first-ever share buyback on 19 August

Airtel to hold shareholders, creditors meet in September on Telenor merger deal

Two-thirds of power utilities bullish on digitisation: Survey

India sees over 15% growth in foreign tourist arrivals

DLF-GIC deal for 40 pct stake in DLF rental arm enters final lap

Crackdown on shell companies: Sebi to take stock next month

Incomplete drought recovery may be the new normal

Revenue dept's probes source of data on black money: Jaitley Insurance cos lead primary market offering

17 August 2017 - Views & News

MARKET INSIGHT

Markets are expected to open flat. Overall technical set up suggests that the short term trend continues to be down. 9935-9960 is a hurdle zone to keep a tab on, where the bounce can subside. A negative daily close would mark completion of the pullback, post which one can look to initiate fresh short position. Overall short term target on the downside is 9600.

Nifty Spot Levels

Support 9830 – 9773 – 9685

Resistance  9935 – 9988 - 10088

GLOBAL MARKET

• US stocks ended slightly firmer on Wednesday but off the day's highs as worries mounted over President Donald Trump's agenda and minutes from the latest Federal Reserve meeting suggested policymakers are worried about weak inflation.

• Indexes lost some ground following Trump's disbanding of two high-profile business advisory councils after two more CEOs resigned from the manufacturing council on Wednesday in response to his comments on weekend violence in Charlottesville, Virginia.

• The Dow Jones Industrial Average rose 25.88 points, or 0.12 percent, to end at 22,024.87.

MARKET UPDATE

Sgx Nifty  -11 pts Dow +25.88 pts ,Nsdq +12.10 pts , S&P +3.50 pts‎, Bovespa +239 pts , Ftse +49 pts , Dax +86 pts , Cac +36 pts , Nikkei  -33 pts now , Crude @ $46.80 brl (+0.02), Brent @ $50.40 brl (+0.04) , Gold @ 1288.50 (+5.60), Silver @ $17.072 (-0.06), Euro @ $1.1774, JPY @ $109.9900, INR @ $64.171

Results Today:

ALKYLAMINE, APCOTEXIND, ASIL, ASPINWALL, DISHTV, ERIS, GOENKA, KHAITANELE, MOTOGENFIN, NIPPOBATRY, ORIENTLTD, PITTILAM, QUESS, QUINTEGRA, SOMANYCERA, UMESLTD, VIMTALABS

TOP NEWS

Apollo Tyres: Plans to nearly double sales volume of its two-wheeler tyres to around two lakh units a month in FY2018. Apollo had forayed into two-wheeler tyres in March 2016 and currently caters to replacement market under the "Apollo Acti"  series of tyres for motorcycles and scooters. Positive

GMR Infrastructure: Entered into definitive agreement to sell 220 MW gas based power plant in Andhra Pradesh for USD 63 million. The company is exploring various commercial options for the plant, which did not generate power since 2013 due to shortage of natural gas. As per the company, the project cost of the plant was USD 90 million (Rs 600 crore). Positive read thru. 

Infosys: board to consider share buyback on August 19, 2017 – positive read-thru

Infosys’s board will consider a proposal to buy back shares at a meeting on August 19. The company plans to pay shareholders up to $2 billion through dividends and share buybacks in FY18. The SEBI has approved Infosys' share buyback and also offered a solution for participation by holders of the company’s ADRs and GDRs. Nearly 17% of Infosys’ shares are held as ADRs and GDRs.

Agri: Fourth advance estimates peg grain output at 275.68 MT for 2017 crop season; higher by 4.01% compared to previous record in 2013-14. Positive read thru for agri-chemical companies – Insecticides, Dhanuka Agritech, UPL amongst others…..(details in other news)

Agri: Government to offer 2% interest subvention on crop loans up to Rs 3 lakh. RBI says short-term crop loans to be available to farmers at 7%. Government to provide 2% interest subvention to PSU & private banks. (Positive for Agri Stocks like UPL, RCF, Escort, M&M, Hero Motocorp Dhanuka, GSFC etc)

OTHER NEWS

L&T: Entered into definitive agreement to divest entire stake in L&T Cutting Tools Ltd to IMC International Metalworking Ltd for Rs174crore. L&T Cutting Tools revenue stood at Rs169.5core (0.15% L&T consolidated revenue) and the deal is expected to complete 90days from signing of share purchase agreement. Neutral read thru.

United Spirits: CSD, the operator of military canteens, has slapped an over Rs 250 crore fine on United Spirits accusing the nation’s largest alcohol maker of violating a pricing agreement, which included extending matching and promotional offers given to other retailers to it as well – sentimentally negative for the stock

Borosil: increases capex post GST, to take up fight against plastic – positive read through from long term perspective

Borosil Glass Works is increasing its capex eight times, from Rs15 crore last year to Rs120 crore on the back of new GST norms for warehousing and distribution. The increase in capex would also get used to enhance its supply chain and logistics post GST. Having acquired local company Hope Ware Table last year for Rs90 crore, it made an entry into the opal glass dinner ware segment. It now has plans of expanding the capacity for the opal glass dinner sets by almost 50 per cent, which would get included in the assigned capex for plant and machinery. Apart from glass products, Borosil entered the small appliance segment about a year ago with products like mixer grinders and rice cookers.

Agri: Fourth advance estimates peg grain output at 275.68 MT for 2017 crop season; higher by 4.01% compared to previous record in 2013-14 - Positive read thru for agri-chemical companies – Insecticides, Dhanuka Agritech, UPL amongst others

Government has raised its estimate on food grain output for the crop year ended June, with good rains facilitating record harvest of wheat, rice, coarse cereals and pulses. The agri ministry’s 4^th advance estimates of major crops pegged food grain production at 275.68 million tonnes, 0.84% higher than the third advance estimate as well higher by 4.01% than the previous record, set in 2013-14. A higher grain outputs points at higher demand for agri-inputs.

IOCL: Petronas may buy stake in IOCL’s 5mmt Ennore LNG terminal

Petronas (Malaysia’s state oil company) has expressed interest to buy stake in Indian Oil Corp’s (IOCL) 5mmt LNG import terminal at Ennore in Tamil Nadu. The under construction Ennore LNG terminal is expected to get completed by mid-2018.

Oil & Gas: EESL and OMCs sign MOUs for distribution of Energy Efficient appliances

Energy Efficiency Services Limited (EESL), under the Ministry of Power, has signed a Memorandum of Understanding (MOUs) with Oil Marketing Companies (OMCs – IOCL, BPCL and HPCL) for distribution of LED Bulbs, LED Tubelights and energy efficient Fans from select retail outlets of OMCs. We believe that these efforts by OMCs are focused to increase non-fuel revenues. 

Piramal Enterprises: subsidiary Decision Resources inc. acquired 100 percent in Context Matters, which is a health economics data and technology company delivering global market access insights into life sciences industry – positive read through for the stock

 MORE NEWS

  

Tatas to scrap all ties with Mistry's group, putting huge money at risk

Infosys board to consider share buyback on August 19

Cabinet approves CGST refund scheme

Cabinet clears India, Sweden MoU signing on IPR

Cairn moves court against capital gains tax order

Tata Motors now eyeing India's EV market: Rajan

Wipro to manage Bangladesh telecom firm's IT services

Trai proposes changes in MNP rules to curb request rejection

Cabinet approves new mechanism to quicken strategic disinvestment

Sebi eases rules for lenders buying stake in distressed companies

Govt forms panel to recast National Mineral Policy 2008

Centre extends anti-dumping duty on Chinese chemical import by 5 years

IDFC PE sells entire 24% stake in Seaways Shipping to promoters

Biocon withdraws applications to sell two cancer drugs in Europe

India-focused offshore funds, ETFs see inflow of $4.6 bn

Petronas keen to buy stake in IOC’s LNG terminal

Cabinet approves raising ₹9,020 cr for Long Term Irrigation Fund 

NSE to introduce seamless corporate announcement filing mechanism

States take over Rs. 2.09 lakh cr DISCOM debt

Solar power sector may face capex pressure, robust capacity addition 

Govt moves to disallow more of Reliance-BP-Niko’s KG-D6 cost

Aurobindo Pharma, Intas in race for Teva’s European assets

Banks pick old, smaller accounts to refer to NCLT

RBI to maintain ‘prolonged pause’ before next repo rate cut: HSBC

Thyssenkrupp says it has no timeline on Tata Steel joint venture deal

42% Indians willing to pay premium for prompt customer service: Report

Farmers to get crop loans at subsidised 7 pct, Aadhaar link a must: RBI

Warren Buffett bids goodbye to General Electric; dumps all stake in the iconic company

Anti-dumping duty likely on a chemical from Canada, China, EU

Alibaba to help SMEs expand their business to global markets

Revenue dept's probes source of data on black money: Jaitley

Sensex climbs 322 pts as geo-political tensions recede

 Tata Power's Q1 output recorded at 12.4 bn units

STOCK IN NEWS

• Infosys buyback gets approval from Sebi

• Corporate employment up 3.5% in 2016-17

• Biocon withdraws applications to sell two cancer drugs in Europe

• Aditya Birla Capital may surpass valuation of Rs 32,000 crore

• Rising commodity prices to take a toll on Q2 results

• Sebi eases rules for lenders buying stake in distressed companies

• In event of IUC cut, Reliance Jio to make twin gains

• Trai recommends changes in MNP rules to curb portability request rejection

• Tata Motors eyes Indian e-vehicle market with great interest: Mukund Rajan

• IDFC PE sells entire 24% stake in Seaways Shipping to promoters

• Cairn UK Holdings moves Delhi HC over capital gains tax demand

• Wipro bags five-year contract from Bangladesh's Grameenphone

• Dairy firms' Q1 profit margins slip on high milk procurement cost

• L&T to sell subsidiary L&T Cutting Tools for Rs 174 crs