}

Friday, 29 July 2016

29 July 2016 - Views & News

MARKET VIEW

Indian markets are likely to open on flattish note based on global market. The bias for the market is positive as long as holding 8489 levels

Nifty Spot Levels 

Support 8630 – 8595
Resistance 8700 - 8750

MARKET UPDATE

Sgx Nifty -2 pts ‎Dow -15.82 pts ,Nsdq +15.17 pts , S&P +3.48 pts ‎, Bovespa -185 pts , Ftse -29 pts , Dax -44 pts  , Cac -26 pts , Nikkei  -57 pts , now, Crude @ $41.02 brl (-0.12), Brent @ $42.70 brl (-0.77) , Gold @ $1342.50 (+1.30), Silver @ $20.22 (+0.02), Euro @ $1.1082, JPY @ $104.7600, INR @ $67.0350

GLOBAL MARKET UPDATE

Wall Street edged higher on Thursday as investors looked beyond disappointing earnings from Ford and bought shares in Apple, while Alphabet surged after the bell following its quarterly report.
A report by the US Labor Department showed that the number of people claiming unemployment benefits rose more than expected to 266,000 for the week ended July 22.
The Dow Jones industrial average edged down 0.09 percent to end at 18,456.35 points.

Today's Corporate Action 29th July  Ex Date

BRITANNIA Dividend - Rs. - 20.0000
CONTROLP Final Dividend - Rs. - 2.0000
DCMSHRIRAM Dividend - Rs. - 0.8000
FEDERALBNK Dividend - Rs. - 0.7000
IL&FSTRANS Dividend - Rs. - 2.0000
IVC Dividend - Rs. - 1.2000
LAKSELEC Dividend - Rs. - 8.0000
SIMPLXREA Dividend - Rs. - 1.0000
SKIPPER Dividend - Rs. - 1.4000
TCPLPACK Dividend - Rs. - 7.3500
ZUARIGLOB Dividend - Rs. - 1.0000

Today's Key Result 29th July

Icici Bank ( 2240 Cr - 25 % Yoy Time - During Mkt )
L&T ( Cons 793 +31% Yoy Time - After Mkt)
Alembic Pharma ( 100 Cr + 44% Yoy)
Godrej Consumer ( 254 Cr +28% Yoy)
Pidilite ( 270 Cr + 20 % Yoy)
Upl Ltd ( Cons 342 Cr + 25 % Yoy)

Aditya Birla Money, Alkyl Amines, Asahi Songwon, Astra Micro, Binani Inds, Ccl Prod, Chola Inv, Cromp Greav Cons Elect, Dr Lal Pathlab,Elgi Equip, Gabriel Ind, Harr Malayalam, Heritage Food,Hester Bio, Indoco Rem, Ion Exchange, Ktk Bank,Kec Int,Kokuyo Camlin, Munjal Showa, Ncl Inds,Nestle, Nirlon,Pudumjee Pulp,Pvr Ltd, Religare Ent, Rico Auto, Shopper Stop, Sun Pharma Advance, Thiru Chem, Uniphos Ent, Vst Till
Srcs-Cogencis Est Net 

TOP NEWS

Reliance Infrastructure – Brookfield has emerged the frontrunner to take over the entire portfolio of 11 road projects of Reliance Infrastructure for an EV of Rs8000 crore as per media news. Both sides have entered into exclusive negotiations and are hoping to sign a definitive sale agreement by next month. The development is positive read thru for Reliance Infrastructure.


STRONG RESULT

CEAT Ltd results - ahead of estimates
Standalone revenue grew 3% to Rs 1,455.8 cr coming ahead of our estimates of Rs 1385 cr. Operating margins declined 290 bps yoy to 12.7% coming in line with our estimates of 12.6%. EBIDTA at Rs 185 cr dipped 16% but was ahead of our estimates of Rs 175 cr. Net Profit at Rs 96 cr was ahead of our estimates of Rs 84 cr. Also, share of profits of Joint ventures at Rs 10.3 cr as better than our estimates of Rs 3 cr. The net profit at consolidated level stood at Rs 104.1 cr which was ahead of our estimates of Rs 86.7 cr.

Tamil Nadu News Print (TNPL) registered strong operating performance in Q1FY2017. The revenues grew by 16.6% on back of strong production and sales of paper and paperboard production. The OPM improved by 275BPS yoy to 22.6% and the operating profit grew by 33%yoy to Rs168.4crore and the PAT grew by 33%yoy to Rs69.5crore. The stock has already seen a decent run-up in the recent past.

WEAK RESULT

GSFC reported a weak set of numbers for Q1FY17. The top line declined 5% YoY to Rs 1082.1 Cr. The revenues from the industrial products segment were lower while fertiliser sales were marginally up. The EBITDA margins contracted 480 BPS YoY to 9%, while the EBITDA was down 37% YoY. On the back of a higher finance cost (Rs 17.9 Cr, up from Rs 4.2 cr as of Q1FY16), the PAT also declined 54% YoY to Rs 46.30 cr.

Ador Welding reported a weak result – PAT declined sharply to Rs 1.34 crore Q1FY2017 against Rs 5.6 crore in Q1FY2016. Higher raw material cost along with decline in revenue pressurized operating margin and the resulted into weak bottomline.

OTHER NEWS

Kesoram Industries plans Rs600 crore capex for tyre, cement divisions – Positive read thru for the stock
Kesoram Industries is planning to spend around Rs600 crore on capital expenditure in FY2017. The company has lined up an investments of Rs350 crore for strengthening its tyre business while about Rs250 crore will be pumped in for its cement division. The Rs600 crore capex would be over and above the Rs500 crore that was already booked for work-in-progress.

JaiPrakash Associates - JP Associates failed to pay principal of Rs33.33cr and interest Rs2.92cr on its NCDs as per media reports. Negative for the stock.

 STOCK IN NEWS 
  • Muthoot Finance Q1 net rises 48% to Rs 270 crore on retail demand 
  • Monsoon advance travel bookings surges by 2.8 times: MakeMyTrip 
  • Japan legal claim threatens Tata assets in UK: Report 
  • Aptech Banking & Finance Academy ties up with Geojit BNP Paribas 
  • NDMC to implement 7th Pay Commission despite financial crunch 
  • Nexa outlets to account for 15% sales by 2020: Maruti 
  • Lloyds plans 3,000 jobs cull, fresh branch closures after Brexit shock 
  • Sun Pharma, Almirall enter pact for psoriasis novel biologic 
  • Kirloskar Ferrous to acquire pig iron plant of VSL Steels 
  • L&T Infotech, GE Digital announce global strategic partnership

Thursday, 28 July 2016

28 July 2016 - Views & News

TOP NEWS

Alert: GST - Consensus are building on the clearance of GST bill; Cabinet removed the controversial one percent manufacturing tax from the constitutional bull (key demand of opposition) – positive for GST beneficiary stocks / sectors
In a positive push for the Goods and Services Tax (GST) Bill, the Cabinet gave green signal to GST Constitutional Amendment Bill. The Cabinet has removed the controversial one percent manufacturing tax from the Constitutional Bill, which was one of the demands of the Opposition, led by Congress.

Sun Pharma and Almirall enter into a License Agreement on the development and commercialization of tildrakizumab for psoriasis in Europe; Sun to receive upfront payment of $50 mn(~Rs 335 cr) – Positive for Sun
Sun Pharma will be eligible to receive development and regulatory milestone payments and, additionally, sales milestone payments and royalties on net sales, the terms of which are confidential. Sun Pharma will continue to lead development of tildrakizumab for other indications, where Almirall will have right of first negotiation for certain indications in Europe. Additionally, the license agreement has a provision for possible co-promotion agreement at some point in the future, subject to certain conditions.


MCX: Cabinet approves FDI hike in exchanges to 15% for individual companies – Positive for the company

STRONG RESULT

NOCIL Q1FY2017 Results – The company reported 4%YoY growth in revenues for the quarter to Rs192.8 crore. Further lower raw material costs led to expansion in operating margins by 239BPS to 19.0% leading to 19%YoY growth in its operating profit to Rs36.6 crore. Additionally, higher other income (up 75%YoY) and lower interest expense (down 78%YoY) led to 39%YoY growth in its net profit to Rs23.2 crore for Q1FY2017.

OTHER NEWS

Sun Pharmaceutical signs an agreement with RPG Life Sciences  to divest (owned by Sun) seven prescription brands in India for a consideration of INR 41 Crores. The 7 (seven) divested brands include brands used for treatment of respiratory-track infections, urological disorders, cardiovascular diseases and brands in health supplements segment.

Sun Pharma recalls 16000 bottles of bupropion (antidepressant) tablets in US; manufactured at company’s Halol facility – Sentimentally negative.

M&M to set up Mahindra Airways for Aircraft management services

Mahindra & Mahindra has set up Mahindra Airways, a wholly owned subsidiary. Mahindra & Mahindra owns a subsidiary called Mahindra Holdings Ltd which will own the Airways. This will be a unit which will provide management services for aircrafts

Bajaj Auto will introduce products in the both the premium (Pulsar 400 and KTM Husky, V Series) and the commuter segment (upgraded Platina) in FY2017 to boost market share in the domestic motorcycle space.

Dabur India is planning to invest Rs500crore for capacity enhancement and new manufacturing unit in Assam (will require investment of Rs300-350crore); the company would further get benefit from new manufacturing unit in Assam (likely to be operational in early in 2018) – positive read through for the stock

MRPL – Board of directors to meet on August 1 to consider enhancing public shareholding to 25%, OFS or fresh issue likley
Mangalore Refinery and Petrochemicals (MRPL)’s board of directors will meet on August 1 to consider enhancing public shareholding to 25% to comply with SEBI norm. The current public shareholding is 11.42%. There are two options -1) offer-for-sale by ONGC & HPCL or fresh issue of shares. Also the board to consider a proposal to raise Rs 3,000 crore through bond to fund its capital expenditure.

MCX: Cabinet approves FDI hike in exchanges to 15% for individual companies – Positive for the company
Cabinet has approved the hike in FDI limit for individual companies in domestic stock and commodity exchanges to 15% from 5%.  Several single foreign entities with close to 4.75 percent have been waiting for a chance to increase their stake particularly in the Multi Commodity Exchange of India (MCX).

Wipro partners with South Africa’s IDC to create technology access for rural school learners

Wipro announced that it has launched a three-year corporate social investment project in South Africa in partnership with Industrial Development Corporation (IDC) to set up 29 computer laboratories that will benefit 28,000 students from rural areas

MORE NEWS

Cabinet approves amendments to GST bill, removes 1% addl tax 
SBI to refinance Rs 28,000cr in RCOM-Aircel merger
Wall Street ends lower after Fed keeps rates unchanged
RBI slaps penalty on 13 banks for FEMA violations
SBI kick-starts merger ops, appoints external parties
Govt drops plan for Rs 17.5k crore funds for telecom R&D
RPG Life Sciences to acquire Sun Pharma's brands
SBI-Macquire in talks to buy Moser Baer’s power assets
Trade advisory issued against Chinese firms
Govt plans greater role in RBI's debt market operations
Shinzo Abe's $265 bn stimulus plan puts pressure on BOJ to ease
Lok Sabha passes Benami Transactions Amendment Bill
Sahara spurns $1.3 bn new offer for overseas hotels
Bharti Airtel reports 30% less profit at Rs 1,462 cr in Q1
JSW Steel reports highest ever quarterly PAT at Rs 1,109 crore
Analog Devices to buy chipmaker peer Linear for $14.8 bn
India orders four maritime spy planes from Boeing for $1 bn
YES Bank gets SEBI nod for sponsoring mutual fund
Stalled infra projects cause cost overrun of ₹1.6-lakh cr
Dr Reddy’s pins hopes on new molecules to invigorate profits
MRPL board to consider raising public holding to 25%
Apple’s plan to open retail stores in India on track
China’s Fosun to buy Gland Pharma for $1.3 billion
RBI’s forex war chest gears up for uncertainty
Maharashtra govt orders CAG audit of Tata Power, Rel Infra
Bajaj Auto Q1 profit rises 2% to Rs978 crore
RBI asked SBI to rein in CSR spending: Arundhati Bhattacharya
Yes Bank Q1 profit rises 32% to Rs731 crore         
Cabinet hikes limit for foreign investment in markets to 15%
Sensex closes 48 points up in choppy trade, Nifty settles above 8,600
Amtek looking to sell non-core business, stake in overseas companies
China considers crackdown on risky wealth management products: Draft rules
Monsoon to push GDP growth to over 8%: Panagariya
NAREDCO seeks easy bank finance for realtors
China's LeEco to buy US TV maker Vizio for $2b
Canara Bank gets shareholders nod to raise capital
States asked to speed up implementation of e-NAM
Defence PSUs can float JVs with foreign firms

Wednesday, 27 July 2016

27 July 2016 - Views & News

MARKET VIEW

Nifty likely to open on a flatish note, but the Index continues to make higher tops and higher bottoms, indicating that the uptrend will persist in the short term till 8654 level. The Nifty has support around 8570, below which it can drift toward 8540 – 8489 levels.

Nifty Spot Levels Support

8540 – 8515 – 8489
Resistance 8630 -8654 - 8685

MARKET UPDATE

SGX Nifty +9 pts (8594) from last trade 8585, Nikkei +211 pts , Hangseng +63 pts , NOW @6.53am ,
‎Dow -19.31 pts ,Nsdq +12.42 pts , S&P +0.70 pts ‎, Bovespa -89 pts , Ftse +13 pts , Dax +49 pts  , Cac +6 pts ,  Crude @ $42.66 brl (-0.26), Brent @ $44.87 brl (+0.15) , Gold @ $1319.10 (-1.70), Silver @ $19.69 (+0.00), Euro @ $1.0987, JPY @ $104.9100, INR @ $67.3050

GLOBAL MARKET UPDATE

• US stocks were mixed on Tuesday as Federal Reserve policymakers kicked off a two-day interest rate meeting and investors braced for quarterly scorecards from Apple and Twitter.
• Choppy stock trading followed a recent rally to consecutive record highs on the S&P 500 that has stretched price-to-earnings multiples to levels that some investors say presumes that companies will beat second-quarter estimates.
• The Dow Jones industrial average dipped 0.1 percent to end at 18,473.75.

Today's Corporate Action 27th July  Ex Date

BOMDYEING Dividend - Rs. - 0.5000DPL Dividend - Rs. - 4.0000IGARASHI Final Dividend - Rs. - 1.5000
INDOAMIN Final Dividend - Rs. - 0.5000JAYSHREETEA Dividend - Rs. - 1.0000JIYAECO Bonus issue 1:5
LAXMIMACH Dividend - Rs. - 40.0000
MACPLAS Dividend - Rs. - 1.0000MAGMA Dividend - Rs. - 0.8000
NATPEROX Dividend - Rs. - 10.0000
PODDAR Dividend - Rs. - 1.5000
SREINFRA Dividend - Rs. - 0.5000

Today's Key Result 27th July 

Asian Paint ( Cons 520‎ Cr +14% Yoy Time - During Mkt)
Bajaj Auto ( 968 Cr -5% Yoy Time - During Mkt)
Bharti Airtel ( Cons 1131 Cr -27% Yoy Time - After  Mkt)
Hdfc ( 1830 Cr +34% Yoy Time - During Mkt)
Yes Bank ( 694 Cr +26% Yoy Time - During Mkt)
Castrol ( 191 Cr +4 % Yoy)
Dabur ( 299 Cr +15% Yoy)
Jsw Steel ( Cons + 669 Cr)
Shriram Trans ( 399 Cr +24 % Yoy)
Torrent Pharma ( 327 Cr -27 % Yoy)
Adf Foods,Agro tech, Bliss Gvs,Elantas Beck,Gic Housing,International Paper,Lumax Auto, Mang Chem, Nocil,Omax Auto, Rpg Life, Sci, Thangamayil Jewel
Srcs-Cogencis Est Net

Results Today July 27, 2016:-

ABC Bearings
Agro Tech Foods
Asian Paints
Bajaj Auto
Bajaj Holdings
Bajaj Steel
Bharti Airtel
BIL Continental
Bliss GVS
Castrol
Continent Chem
Dabur India
Elango Ind
Elantas Beck
Everest Ind
Fruition Vent
GIC Housing Fin
Govind Poy Oxyg
Greenlam Ind
HDFC
High Street Fil
Indiabulls Vent
Indian Hume
Integra Telecom
Intl Data Mgmt
Intl Paper APPM
Jenburkt Pharma
JSW Steel
Kumaka Ind
Laser Diamonds
Ludlow Jute
Lumax Auto Tech
Mangalore Chem
Morarjee Text
Nidhi Granites
NOCIL
Omax Autos
Orient Bell
Rapicut Carbide
Rasoi
Refex Ind
Rishiroop
RPG Life
S I Capital
Sagar Cement
Schablona India
Shipping Corp
SNL Bearings
South Asian Ent
Southern Magnes
Stanrose Financ
Steel Str Wheel
Sukhjit Starch
Super Spinning
Suryo Food
Thangamayil
Torrent Pharma
TT
Vinyoflex

TOP NEWS

Alert : ITC, Axis Bank & L&T: As per media reports, Government will soon be appointing merchant bankers to sale stake in ITC (holds 11.17%), Axis bank (holds 11.53%) and L&T (holds 8.16%) to start with its divestment plans. The stakes are held via SUUTI, a state-controlled entity that was created at the time of the bailout of the erstwhile Unit Trust of India (UTI) in 2001 - Sentimentally negative for ITC, Axis Bank & L&T

Result Alert (positive): PI Industries Q1FY2017 result: Strong performance across parameters, earnings grew by 46% YoY (further detail in Investment calls)

Result Alert (positive): V-guard reported  an impressive result in Q1FY2017; PAT jumped by 70% YoY to Rs 43 crore, backed by 15% revenue growth and hefty OPM expansion of 243 bps to 11.1%. Below operating line, negligible interest cost (turned debt free recently) boosted the bottomline. We continue to be positive on the stock and shall come up with detail note soon (with upgraded target price) after interaction with the management.

Interglobe aviation, jet airways – Domestic airlines carry 21% more passengers in June – Positive read thru for the stocks
The domestic airlines carried 79.75 lakh passengers in June, a growth of 21%YoY as per data released by Directorate General of Civil Aviation. IndiGo retained its number one position having flown 30.23 lakh passengers with Jet airways coming second having flown 12.96 lakh passengers. The development is positive read thru for the aviation sector especially Interglobe aviation and Jet airways.

Glenmark Pharmaceuticals receives ANDA approval for Potassium Chloride Extended-Release Tablets – Positive for Glenmark

Lupin: As per media reports, Lupin is in discussion with Japan’s Astellas, Shionogi to buy their off patent drug brands – Positive for Lupin (in long run) as it will help lupin strengthen its business in Japan ( by widening product portfolio offering).

STRONG RESULT

Bharti Inftatel Q1FY 17- Good performance.
Bharti infratel posted good results, the revenue grew by 6% yoy, while net earnings posted a strong 71% growth on a yoy basis. The average tower sharing factor is at consistent improvement and stood at 2.2 times. Complying with IND AS requirement, the company started reporting JV share of Indus via Equity method as aganist the earlier method of proportionate consolidation, impacting revenues though net earnings remains unchanged.

Ambuja cement Q2CY2016 result highlights (standalone) – Higher sales price and reduction in cost boosts operating performance

  • The net sales declined improved by 1.9% on YoY basis to Rs2541.2 cr. The increase in sales is on account of higher realizations which was up 4.1%YoY while volumes for the quarter declined by 2.0%YoY.
  • During the quarter operating margin improved 810 basis point YoY on account of higher realization and decline in power & fuel cost (down 18.0%YoY) and freight cost (down 5.7%YoY).  Hence operating profit for the quarter stood at Rs581.3 crore, growth of 57.8% YoY. EBIDTA per tonne for the quarter grew by 61.1% YoY to Rs555.
  •  Company in its Q2CY2016 posted reported net profit of Rs399.5cr (up 76.5% on yoy basis).
  • The stock is not under our active coverage and we do not have any rating on the stock.
 OTHER NEWS 

Maruti Suzuki compact SUV Jimny likely to be made in India, launch in 2017

Maruti Suzuki will manufacture the sub-compact SUV Jimny in India for local as well as export markets. Slated for a 2017 launch, the Jimny is based on the same platform that underpins the Baleno and will also serves as a base for the upcoming Ignis. The car is expected to be manufactured at the company's upcoming plant in Gujarat. The immensely popular Gypsy was based on the 3rd-generation Jimny, albeit with an extended wheelbase which opens up the possibility of the company using the popular Gypsy brand for the vehicle in order to encash on the brand's historical popularity.

Tata Motors, Volkswagen in talks to make small cars

German carmaker Volkswagen is in talks with Tata Motors to partner for a small car development programme. While the talks are in the initial stages, Tata Motors might partially or fully develop a low-cost small car to be later sold under the Volkswagen brand in emerging markets such as India. The German carmaker has repeatedly tried its hand at the compact car segment including a partnership with Japan’s Suzuki Motor Corporation but failed to crack the intensely competitive market. The development if materializes would be positive for Tata Motors given the huge idle capacity it has at the Sanand plant.

Automobiles: Indian auto component industry to grow 5 times by 2026-positive read thru

As per Government’s Automotive mission plan the auto component industry market size and exports will grow by fives times by 2026. Indian auto component industry revenue currently stands at just $40 billion, which is just 2.3 per cent of the total Indian GDP and contributes $11 billion of exports while Global auto component market is pegged to be around $1.75 trillion. The opportunity for auto component players stems from foreign players setting up manufacturing bases in India and increasing localization levels gradually. Also auto component players have been setting up manufacturing bases abroad in order to diversify and tap the export markets.
 Maruti Suzuki compact SUV Jimny likely to be made in India, launch in 2017
Maruti Suzuki will manufacture the sub-compact SUV Jimny in India for local as well as export markets. Slated for a 2017 launch, the Jimny is based on the same platform that underpins the Baleno and will also serves as a base for the upcoming Ignis. The car is expected to be manufactured at the company's upcoming plant in Gujarat. The immensely popular Gypsy was based on the 3rd-generation Jimny, albeit with an extended wheelbase which opens up the possibility of the company using the popular Gypsy brand for the vehicle in order to encash on the brand's historical popularity.
 Tata Motors, Volkswagen in talks to make small cars
German carmaker Volkswagen is in talks with Tata Motors to partner for a small car development programme. While the talks are in the initial stages, Tata Motors might partially or fully develop a low-cost small car to be later sold under the Volkswagen brand in emerging markets such as India. The German carmaker has repeatedly tried its hand at the compact car segment including a partnership with Japan’s Suzuki Motor Corporation but failed to crack the intensely competitive market. The development if materializes would be positive for Tata Motors given the huge idle capacity it has at the Sanand plant.
 Automobiles: Indian auto component industry to grow 5 times by 2026-positive read thru
As per Government’s Automotive mission plan the auto component industry market size and exports will grow by fives times by 2026. Indian auto component industry revenue currently stands at just $40 billion, which is just 2.3 per cent of the total Indian GDP and contributes $11 billion of exports while Global auto component market is pegged to be around $1.75 trillion. The opportunity for auto component players stems from foreign players setting up manufacturing bases in India and increasing localization levels gradually. Also auto component players have been setting up manufacturing bases abroad in order to diversify and tap the export markets. 
Delta Corp has signed leave & license agreement to operate a casino in Gangtok, the company will  ry to get premises casino ready in 3 months – positive read through for Delta Corp 
ONGC, Cairn India demand to reduce CESS on crude oil from 20% (ad-valorem basis) to 8-10% range-the ministry is yet to consider. However, it could act positive for upstream companies (ONGC/OIL/Cairn) if accepted by ministry.   

 STOCK IN NEWS 
  • Educomp divests shareholding in Vidya Mandir Classes 
  • No HC relief to attachment of FTIL bank accounts by EOW 
  • Volkswagen, Tata Motors in talks to make small cars 
  • Docomo case: Tata Sons to deposit $1.17 bn in Delhi HC 
  • Finance ministry rules out strategic sale in IDBI Bank 
  • Domestic air traffic rose 20.81% in June on the back of low fares and peak season demand. 
  • ICICI Bank to discontinue some service pacts with 3i Infotech 
  • Hitachi eyes 10% share of Indian auto batteries in 3 yrs 
  • Emami to invest Rs 300 crore to expand edible oil refinery plant 
  • HCC wins Rs 1,750 crore contract from IRCON



Tuesday, 26 July 2016

26 July 2016 - Views & News

MARKET VIEW

Indian markets are likely to open flat to negative. Given that the Index has given a breakout above 8595, we have revised our short-term and medium-term target to 8750 and 8850, respectively.

Nifty Spot Levels

Support 8595 – 8540 – 8476
Resistance 8654 – 8700 - 8750

MARKET UPDATE

Sgx Nifty -18 pts ‎Dow -77.79 pts ,Nsdq -2.53 pts , S&P -6.55 pts ‎, Bovespa -129 pts , Ftse -20 pts , Dax +50 pts  , Cac +6 pts , Nikkei  -238 pts , now, Crude @ $43.24 brl (+0.11), Brent @ $44.72 brl (-0.97) , Gold @ $1314.60 (-4.90), Silver @ $19.55 (-0.10), Euro @ $1.0991, JPY @ $105.6100, INR @ $67.3537

GLOBAL MARKET UPDATE

• Wall Street declines as earnings take center stage The Dow Jones industrial average dipped 0.42 percent to end at 18,493.06 points and the S&P 500 lost 0.3 percent to 2,168.48.
• US stocks receded from record highs on Monday as oil weighed on energy shares and investors awaited an avalanche of quarterly reports.
• Japanese stocks led losses in Asia markets on Tuesday, dragged by fresh strength in the yen after a local media report indicated the government's highly anticipated stimulus package may not live up to expectations.

Today's Corporate Action 26th July  Ex Date

BERGEPAINT Final Dividend - Rs. - 1.0000BRIGHTBR Final Dividend - Rs. - 2.0000
EMAMILTD Dividend - Rs. - 7.0000
ENIL Dividend - Rs. - 1.0000GATI Final Dividend - Rs. - 1.0000GSKCONS Dividend - Rs. - 70.0000
HAWKINCOOK Dividend - Rs. - 60.0000
JKCEMENT Dividend - Rs. - 4.0000
LLOYDSME Stock  Split From Rs.2/- to Rs.1/-
MCLEODRUSS Dividend - Rs. - 2.0000
MODEX Interim Dividend - Rs. - 0.6000
NITTAGELA Dividend - Rs. - 2.5000
PTL Dividend - Rs. - 1.0000RAUNAQEPC Final Dividend - Rs. - 1.2000

Today's Key Result 26th July 

Maruti (1226 Cr +3% Yoy Time - During Mkt )
Acc ( Cons 255 Cr +91% Yoy Time - During Mkt )
Dr Reddy ( Cons 484 Cr -23% Yoy Time - During Mkt )
Amb Cem ( 335 Cr +48% Yoy Time - After Mkt )
Bharti Infratel ( Cons 634 Cr -10% Yoy Time - After Mkt )
Zee Ent ( 281 Cr +15% Yoy Time - After Mkt )
Ajanta Pharma ( 100 Cr + 20 % Yoy)
Bajaj Finance ( 378 Cr + 37% Yoy)
Bajaj Finserv (529 Cr +38% Yoy)
Idfc ( Cons 184 Cr -28% Yoy)
Karur Vysya ( 140 Cr + 4% Yoy)
Tvs Motor ( 124 Cr + 38% Yoy)
Astec Life, Coromandel Int,Elecon Eng,Excel Inds,Fsl,Idfc Bank,Ingersoll Rand,Mahindra Cie,Niit Ltd, PI Inds,Swaraj Eng,Symphony,Tata Elxsi, Welspun Ind  Srcs-Cogencis Est Net
TOP NEWS

IndusInd Bank: As per media reports IndusInd Bank is in talks to buy 5% stake in Bharat Financial Inclusion at Rs 850/share – Positive read thru

PNC Infratech Limited bags Rs233 crore PWD road project in UP – Positive for the stock
PNC Infratech Limited has been awarded a project involving four laning of Etah to Kasganj road in Uttar Pradesh for a contract value of Rs. 232.91 crore on EPC basis. The company’s order book now stands at over Rs. 5400 crores. The development is positive for the stock. 

SPARC (Sun Pharma Advanced Research) has scheduled a concall on August 4 to take investors through their research folio (both NCE and NDDS) – Positive; transparency to boost investor interest

FUND RAISING

IDBI Bank plans to raise Rs 28,000 cr out of which Rs8000 cr would be raised through equity and Rs 20000 cr via debt

Sintex Industries board meeting on 28 july 2016 to consider rights issue and NCDs worth Rs1000cr
STRONG RESULT

Tata Sponge reported a PAT of Rs 10.53 crore in Q1FY2017, against Rs 6.8 crore in Q1FY2016, despite dip in revenue owing to lower raw material cost and better volume. Power segment has contributed majority of the profit.

OTHER NEWS

Bajaj Auto to ramp up production of “V” motorcycle on strong demand 
Bajaj Auto will ramp up production of motorcycle “V” starting September 2016 to meet demand. “V” which was introduced in March this year has witnessed strong demand with the company already selling 100,000 units of the bike in the last four months. The bike has helped Bajaj Auto to increase its overall market share in the premium commuter 125cc+ segment by 10%

Mahindra & Mahindra plans two-pronged strategy to fuel growth
Mahindra & Mahindra Ltd is devising a two-pronged strategy to strengthen its brands’ presence and also make inroads with its latest range of products this year. The proposed strategy involves both urban and rural markets as it expects strong growth this year, helped by a favourable monsoon and from sales of its new products. As per the company, it would entrench itself (enhance distribution network) in upcountry rural India with existing strong brands like Bolero and Scorpio and make new inroads with brands like TUV 300 and KUV 100. In urban centres, it plans to use the latest portfolio of products to target new range of customers. As per the company FY17 is likely to see strong sales for the company as it would have the benefit of a full year of all the new products launches last year.

Maruti Suzuki India planning to transport vehicles via inland waterways to save on logistics cost-positive read thru
Maruti Suzuki India is planning to transport vehicles through inland waterways and has inked a pact with the government for this, a move that will help reduce its logistic costs. A Memorandum of Understanding (MoU) has been signed between Inland Waterways Authority of India (IWAI) and Maruti Suzuki India Ltd for transportation of cars through inland vessels. As per expert estimates, Water transportation cost is barely 50 paise a km in comparison to Rs 1 by railways and Rs 1.5 per km through roads.

Road Sector – Nitin Gadkari in Rajya Sabha highlighted that about Rs7 lakh crore would be spent to develop around 50,000km of national highways over the next five years. The development is positive read thru for IRB Infrastructure, L&T, IL&FS Transporation, Ashoka Buildcon, Sadbhav Engineering, KNR constructions, Gayatri Projects among others.

GAIL India is in talks with Russia's Gazprom to delay and renegotiate a 20-year gas purchase deal undercut by low spot prices. Shipments under the deal, initially expected to start in 2018/2019 and prices are linked to crude oil prices which are rising while gas prices are expected to stay subdued for longer. 

MORE NEWS

'India to renegotiate all bilateral investment pacts'
Rajan in RBI would have helped India: Subbarao
Modi govt plans mother of all oil companies 
Merger credit positive for Vedanta: Moody's
Breach of terms led to debt default: Kingfisher
US asks India to eliminate customs duties on ICT products
SBI, IOC link up to empower farmers
Scrapping of inter-state trade tax under scanner
RBI fines BoB, HDFC Bank & PNB for violating KYC norms
Jaitley to meet state ministers to push GST bill
Telecom Commission sticks to its model for calculating SUC
CBDT issues draft norms for taxing buy back of unlisted shares
Sebi to set stringent norms for non-compliant promoters
ED probing 81 FDI cases over Fema violation: Sitharaman
Verizon confirms Yahoo buy; deal valued at $4.83 bn
BSE to begin bonds trading based on clean price mechanism 
MF folio count rises 12.61 lakh to 4.9 cr in June quarter
Rupee drops 27 paise to end at 67.35
M&M chooses TVS & Sons for Chennai dealership expansion
GAIL seeks to defer Gazprom LNG contract
Amtek said to expand asset sale to include all overseas units
New solar projects may benefit from falling component prices
Indian Railways plans to load up more debt than GDP of some nations
Quikr acquires Hiree to boost job listings business           
Sensex gains 292 points to close above 28,000; Nifty settles above 8,630
Govt to soon notify inflation target under framework agreement
Bajaj Corp Q1 profit up 10% to Rs 52.19 cr
India to renegotiate all bilateral investment pacts: Nirmala Sitharaman
RBI imposes penalty of Rs 5 cr on BoB
P-Notes investment hit two-year low in June-end
Oil prices dip on oversupply, economic headwinds
Govt to provide benefits to small tea growers
Algo trades in stagnation mode
RXIL looking to rope in SBI, ICICI as equity partners

STOCK IN NEWS 

1. Telcos install 48,000 towers in 45 days to tackle call drops
2. Maruti planning to transport vehicles via inland waterways
3. Ultratech Cement plans to raise Rs 300 crore via NCDs
4. Cairn-Vedanta merger to happen by 2016-end: Anil Agarwal
5. IDBI Bank plans to raise Rs 28,000 crore via equity, debt
6. Muthoot launches recycling hub in Bengaluru; to open more stores
7. Thomas Cook India inks pact with Matrimony Bazaar
8. Ahluwalia Contracts bags Rs 473 crore construction order

Monday, 25 July 2016

25 July 2016 - Views & News

MARKET VIEW

Indian markets are likely to open on flat note following global markets. The support for Nifty is 8475 below which we can see more weakness.

Nifty Spot Levels 

Support 8515 – 8476 – 8440
Resistance 8570 – 8595 - 8630
MARKET UPDATE

Sgx Nifty +29 pts ‎Dow +53.62 pts ,Nsdq +26.26 pts , S&P +9.86 pts ‎, Bovespa +360 pts , Ftse +30 pts , Dax -8 pts  , Cac +4 pts , Nikkei  +34 pts , now, Crude @ $44.22 brl (+0.03), Brent @ $45.75 brl (+0.06) , Gold @ $1321.90 (-1.50), Silver @ $19.65 (-0.03), Euro @ $1.0967, JPY @ $106.3600, INR @ $67.0813

GLOBAL MARKET UPDATE

Wall Street rose on Friday, clinching the fourth straight positive week for the stock market, boosted by strength in telecom stalwarts AT&T and Verizon.
A US manufacturing report also came in above expectations, building on upbeat data from earlier in the month.
The Dow Jones industrial average rose 53.62 points, or 0.29 percent, to 18,570.85.

Today's Corporate Action 25th July  Ex Date

BHARATFORG Final Dividend - Rs. - 0.5000
EIHAHOTELS Final Dividend - Rs. - 1.0000
ESABINDIA Dividend - Rs. - 1.0000
KTIL Dividend - Rs. - 1.0000
LUPIN$ Dividend - Rs. - 7.5000
NBVENTURES Dividend - Rs. - 3.0000
TCS Interim Dividend - Rs. - 6.5000
VINATIORGA Final Dividend - Rs. - 0.5000
WABCOINDIA Dividend - Rs. - 6.0000

Today's Key Result 25th July 

India Bulls Fin ( Cons 615 Cr + 20 % Yoy)  Can Bank( Loss 20 Cr) Info Edge (52 Cr +81% Yoy)  Asian Granito, Bajaj Corp,Eveready Inds,Ghcl,Hind Oil, Hitachi Home,Kpr Mills, Kalyani Steel,Maharasthra Scooter, Merk ltd,Orient Hot,Pincon Spirit, Shanti Gears, Ster Tech, Texmaco Infra, Trans and Rect Srcs- Cogencis Net Est

Results today: Canara Bank, Indiabulls Housing Finance, Bajaj Corp, Hitachi Home, State Bank Of Mysore, Eveready Ind, Info Edge, Merck, Navin Fluorine, Tata Sponge Iron, Asian Granito, Automotive Stampings, Eimco Elecon, Ganesha Ecosphere, Ghcl, Greenply Industries, HOEC, Jk Paper, K.P.R. Mill, Kg Denim, Maharashtra Scooters, Nelco, Pincon Spirit, Rane Engine Valve, Shanthi Gears, Supreme Petrochem, Texmaco Infrastructure & Holdings, Texmaco Rail & Engineering, Transformers And Rectifiers
TOP NEWS

Glenmark receives ANDA approval for Triamcinolone Acetonide Ointment; used to treat variety of skin disease (eczema; dermatitis; allergies; rashes) – Positive for Glenmark

CESC likely to sign another 150 MW PPA for its Chandrapur based plant; the plant could turn profitable – positive
CESC is close to signing a new 150 MW power purchase agreement for its Chandrapura based Power Plant in Maharashtra, which is currently running in losses due to under utilization of assets. The power plant has already entered into PPA for 100 MW with Tangedco and another 170 MW with Greater Noida. So, if the PPA is signed the plant will be profitable now having PPA in place for 400 plus MW.
View- with this development, the total PPA could be 420 MW and the plant could turn positive and likely to positively impact our sum of the part valuation as we have assigned very low multiple for the stressed plant (chandrapur).

Godawari Power & Ispat rating downgraded to ‘D’ (default status) -- Negative
CARE downgraded long term rating from CARE BBB+ to CARE D and short term rating from CARE A3+ to CARE D. Company failed to pay principal and interest on its NCDs aggregating to Rs23 core 
STRONG RESULT

Havells India reported a very strong earnings in Q1FY2017; PAT grew by 36% YoY
Havells India reported a very strong earnings in Q1FY2017; PAT grew by 36% YoY to Rs 145.6 crore. The revenue grew by 17% YoY to Rs 1,464 crore backed by strong export business (up 25%). Further, operating margin expanded by 90 bps YoY to 13.6% in this quarter and helped operating profit to grow by 25% YoY to Rs 200 crore. Below operating line, better other income helped it further to improve for bottomline performance. In Q1FY2017, the company also generated positive cashflow from operations. Given the strong number, we expect earnings upgrade in the street and the stock should react positively.

Rallis India Q1FY2017: Strong operating margins resulted higher growth in earnings
Revenue for the quarter grew by 7.5% YoY to Rs449.97 crore (net of excise duty), lower other expenses resulted 250 basis point improvement in operating profit. Lower interest cost was negated by high deprecation cost, hence earnings for the quarter grew by 310% to Rs174.2 crore which include Rs158 crore of extraordinary gains from assignment of leasehold land right at navi Mumbai
OTHER NEWS

Hindustan Unilever to launch baby care products under Dove brand – positive read through for HUL (Johnson & Johnson already going through regulatory hurdle)
Hindustan Unilever (HUL) plans to launch a range of baby care products under its Dove brand in the next few months to challenge the dominance of Johnson & Johnson in the Rs 4,000-crore market. Experts feel the baby personal products category has huge potential as it largely remains under-penetrated despite an estimated 26 million children born every year in the country

ITC planning to invest Rs25,000 crore in multiple projects over next 5 years (investment would largely be done through internal accruals as the company has strong cash flows); target revenues of Rs1,00,000 crore from its non-cigarette FMCG business by 2030 – positive read through for the stock

Skipper sets up fifth PVC pipes manufacturing unit in Hyderabad, taking total capacity to 41000 tonnes; positive
Skipper sets up PVC pipes manufacturing unit in Bollaram near Hyderabad. The plant, with an installed capacity to produce 6,000 tonnes per annum of both plumbing and agricultural pipes, will target the entire southern market. The commercial production is all set to begin in the plant set up with an investment of about Rs 10 crore. With the opening of this new plant, the total production capacity of Skipper touched 41,000 tonnes.

Gujarat Fluorochemicals to sell its stake in its JV Xuancheng Hengyuan Chemical Technology, China. Positive

I&FS Engineering Services wins Rs533 crore Nagpur Metro Rail project – Positive for the stock
IL&FS Engineering Services has received Letter of Acceptance from Nagpur Metro Rail Corporation for Rs532.67 crores Nagpur Metro Rail project. The project involves construction of seven Elevated Metro Stations and three At-Grade stations. The project is to be completed in 110 weeks from the date of issue of LOA. The development is positive for the stock.

Ashok Leyland to start assembly operations in Kenya and Bangladesh; to enhance UAE plant capacity
Ashok Leyland has firmed up its plans to strengthen overseas presence as part of its vision to garner one-third of revenues from exports over the next four to five years from the current level of 10%. Ashok Leyland has firmed up plans to set up assembly plant in Kenya with an initial capacity of 3,000 units with an Investment of about $5 million. The company is also planning to open assembly unit in Bangladesh through a strategic JV partner. Further it is also planning to increase the capacity of UAE based bus assembly unit from 4,000 units to 6,000 units per annum.

Oil & gas sector – Govt to start consultation to merge 13 oil companies to create a giant corporation
The government is set to start consultations for an ambitious plan to merge 13 state oil firms to create a giant corporation whose revenue could be comparable to global energy majors. As per media, the oil ministry has begun the process of evaluating the prospects of creating the conglomerate. The entities are all upstream as well as downstream companies (ONGC, IOC, BPCL, HPCL, GAIL, MRPL, Chennai Petroleum, Numaligarh Refinery and Oil India). However, it is in consultation stage only.

STOCK IN NEWS 

  • IOC in talks to buy GSPC's stake in Mundra LNG terminal 
  • Essar Power may sell plants in Gujarat to pare debt 
  • IndoStar Capital to launch housing finance arm soon 
  • Telecom industry has sought a clear cut position on levy of taxes on Value Added Services under the proposed GST regime, says a paper by Assocham-KPMG. 
  • PNB Housing Finance readies IPO, heads to tier 2, 3 cities 
  • RPG Life Sciences targets Rs 1,000-cr revenue in 5 yrs 
  • Cipla told to deposit Rs 175 crore in drug overcharging case 
  • Hindustan Unilever to launch baby care products under Dove brand





Friday, 22 July 2016

22 July 2016 - Views & News

MARKET VIEW

Indian markets are likely to open on flattish note based on global cues. However, the markets have been choppy and seem to be consolidating in the range.

Nifty Spot Levels 

Support 8476 – 8440 
Resistance 8545 - 8595

MARKET UPDATE

Sgx Nifty +7 pts  ‎Dow -77.80 pts ,Nsdq -16.03 pts , S&P -7.85 pts ‎, Bovespa +63 pts , Ftse -29 pts , Dax +14 pts  , Cac -3 pts , Nikkei  -144 pts , now, Crude @ $44.69 brl (-0.06), Brent @ $46.20 brl (-0.97) , Gold @ $1332.90 (+1.90), Silver @ $19.85 (+0.03), Euro @ $1.1032, JPY @ $105.8100, INR @ $67.1775

GLOBAL MARKET UPDATE

Wall Street cooled off on Thursday as disappointing quarterly reports from tech stalwart Intel and from transportation companies stalled momentum in a US corporate earnings season that has been better than feared. 
The Dow Jones industrial average fell 77.8 points, or 0.42 percent, to 18,517.23, the S&P 500 lost 7.85 points, or 0.36 percent, to 2,165.17 and the Nasdaq Composite dropped 16.03 points, or 0.31 percent, to 5,073.90.

Today's Corporate Action 22nd July  Ex Date

ADORFO Dividend - Rs. - 3.5000
BENGALT Dividend - Rs. - 0.5000
NIITTECH Dividend - Rs. - 10.0000
SUPER Dividend - Rs. - 2.5000
UFLEX Dividend - Rs. - 3.2000
WONDERLA Final Dividend - Rs. - 0.5000
ZANMOLTR Dividend - Rs. - 4.0000
Today's Key Result 22nd July 

Axis Bank ( Est Net 1991 Cr +1% Yoy)
Federal Bank ( Est Net 163 Cr +16% Yoy)
M&M Fin(Est Net 130 Cr +21 % Yoy)
Atul Ltd,Equitas Hold,Hinduja Vent,L&T Fin,Parry Inds,Praj Inds,Rallis, Rane Madras, Sanofi Ind,TIL,Vijaya Bank
Srcs-Cogencis
TOP NEWS

ITC Q1FY2017 results – Revenues grew by 8.3%yoy to Rs13253.1crore and the PAT grew by 10% at Rs2384.7crore (in-line with our expectation); the core cigarette business sales volume growth stood at ~3.5% largely in-line with street expectation of 2-4% growth (higher sales of low price regular size cigarettes affected the realisation growth in the backdrop of 5-6% price hikes implemented by the company); the non –cigarette FMCG business grew by 9.5% driven by double digit growth in the foods and personal care segment

RBI allows banks to apply additional 1% of GSecs under LCR – sentimentally positive

The Reserve Bank of India relaxed Basel-III mandated liquidity coverage ratios (LCR) for banks, allowing banks to apply an additional one percentage point of the deposits they currently hold as government bonds under their statutory liquidity ratios (SLR).  Banks can now apply up to 11% of their deposit base held as SLR — or government securities that banks must hold with the RBI — from 10% earlier when calculating their liquidity coverage ratios to meet Basel III requirements.

OTHER NEWS

L&T's hydrocarbon subsidiary won a large gas field project in Saudi Arabia; Positive                                                    
L&T Hydrocarbon-led consortium bags (Rs 10700 crore) $1.6 billion order from Aramco, Saudi Arabia. The contract is for development of second phase of Hasbah Offshore Gas Field situated off the coast of Saudi Arabia. L&T's share in the contract is 60% and the project is scheduled to be completed over three and half years.

BHEL and NHPC entered into a pact for undertaking hydro power projects in overseas markets. As per the MOU, NHPC and BHEL will look after the civil and electro mechanical packages respectively.

Power Grid Corporation has approved 11 projects worth investment of Rs 2,731 crore. Positive for power grid as well as EPC players like Kalapataru, KEC and tower suppliers like Skipper.

Tyre industry: Truck radial tyres imports continue to surge; grow 40% during Q1FY17 impacting domestic tyre players MRF, Apollo Tyres, JK Tyres and Ceat 
Imports of truck and bus radial (TBR) tyres surged 40% during April-June 2016, while those of passenger car radials increased 22%. Dumping of radial tyres has reached unprecedented levels with the Imports reaching 1.5 lakh units a month from an average 1lakh units in fiscal 2016. Imports are increasing at a time when fresh domestic capacity, set up with an investment of Rs 25,000 crore in the past three to four years, is getting commissioned. According to ATMA, capacity utilization of domestic players has now come down to 60-65% from 80-85% in 2014-15. Currently 40% of the replacement demand in TBR industry is being met by imports while domestic capacities are faced with the prospects of ever declining utilization. While the domestic players have applied for imposition of anti dumping duty on tyre imports from China, Central government decision is still awaited.

IL&FS Transportation Networks – The company has filed an application with SEBI to raise funds through an Infrastructure Investment Trusts (InvITs). The development is positive read thru for the stock.
 OTHER NEWS

ONGC should merge with a refiner like IOC: Director
New RBI chief will face stubborn old foe: rural inflation
Sebi may help in govt's recap plans for PSU banks
US warns against devaluation ahead of G20 meet
Corporate debt demand to swell to $62tn by 2020'
RBI relaxes rule for Basel III liquidity coverage ratio
'India's external debt of $474 billion forms 16% of APAC borrowing'
Greenko closes in on SunEdison India assets
ITC posts 10% rise in Q1 profit amid sluggish demand conditions
India link emerges in $3.5-bn forex trading fraud at HSBC
Sebi to finalise options in commodities today
Proposal for mandatory Ulip fund investments into G-Secs dropped
Reliance Jio's 4G rollout in next three months: CLSA
OVL raises $1 billion through dollar bonds for Vankor stake buy
ONGC Videsh arm raises $1 b through unsecured notes 
JSW Energy ready for more acquisitions: Jindal
Hindalco consolidated Q1 net dips 95% to Rs. 44.80 cr 
Gujarat cotton growers sound pink bollworm alert
CII infra panel urges govt to fast-track Kelkar report proposals
Transition from rural to urban will be a key challenge: Debroy
Flipkart, Amazon, Jabong tweak models to fit new FDI rules
HDFC Bank Q1 profit rises 20.15% to Rs3,238.91 crore on higher income
Advanced Enzyme IPO subscribed 4.27 times on Day 2
Cairn India working on merger with Vedanta: Navin Agarwal
State Bank of Bikaner and Jaipur Q1 loss at Rs221.56 crore           
RBI to monitor banks on customer rights
Cairn India Q1 net falls 28 per cent on oil price slump
Silver slips below Rs 46,000, down Rs 1,020/kg on global trend
Japan preparing $190 billion stimulus, govt spending less than half that: Sources
HDFC Bank says ‘comfortable’ with higher bad loans in Q1
L&T Infotech makes weak market debut
India economic growth to remain solid: Reuters poll
Ashok Leyland net profit doubles, revenue up 10%
Little impact of Brexit in long-term: Nasscom

STOCK IN NEWS 
  • Indian firms to raise $5-bn forex loans 
  • Durables makers expect better festive season sales this year 
  • Cairn India to invest in existing projects 
  • Biocon Q1 profit up 34.45% to Rs 166.6 cr 
  • Ashok Leyland to embrace digital, data-driven wave 
  • Lanco makes last-ditch effort to avoid strategic debt restructuring 
  • Kwid and Redi-GO on different growth tracks 
  • Unilever tops sales forecast, but sees markets worsening 
  • Reliance Jio's 4G rollout in next three months: CLSA 
  • Ford Motor Company setting up R&D Centre in Tamil Nadu 
  • OVL raises $1 billion through dollar bonds for Vankor stake buy 
  • Power generation utilities owe Rs 12,028 crore to Coal India 
  • PVR plans to raise up to Rs 250 crore via NCDs.

Thursday, 21 July 2016

21 July 2016 - Views & News

MARKET VIEW

Indian are expected to open flat. 8595 may remain intraday resistance in Nifty and break of same may show 8630 -8654 on upperside. On the downside, 8522-8476 range will act as a support. The bears will be back in action if the Nifty goes below 8476.

Nifty Spot Levels 

Support 8522 – 8476 - 8440
Resistance 8595 – 8654 - 8690

MARKET UPDATE

Sgx Nifty -11 pts ‎Dow +36.02 pts ,Nsdq +53.56 pts , S&P +9.24 pts ‎, Bovespa -120 pts , Ftse +31 pts , Dax +160 pts  , Cac +49 pts , Nikkei  +213 pts , now, Crude @ $44.94 brl (+0.29), Brent @ $47.17 brl (+0.51) , Gold @ $1313.70 (-5.70), Silver @ $19.34 (-0.27), Euro @ $1.1020, JPY @ $107.2300, INR @ $67.1975

GLOBAL MARKET  UPDATE

 Wall Street gained on Wednesday and the S&P 500 and Dow industrials set fresh records, as Microsoft's strong results boosted the indexes and marked the latest sign that US corporate earnings season may be less dour than feared.
The Dow Jones industrial average rose 36.02 points, or 0.19 percent, to 18,595.03.

Today's Corporate Action 21st July  Ex Date

ADORWELD Dividend - Rs. - 5.0000ALKALI Final Dividend - Rs. - 0.4000
BALAMINES Dividend - Rs. - 2.0000CHOLAINV Final Dividend - Rs. - 2.0000
CLARIS Final Dividend - Rs. - 2.0000
DLINKINDIA Dividend - Rs. - 0.7000ELGIEQUIP Dividend - Rs. - 1.0000EMPIND Dividend - Rs. - 4.0000EXCELCROP Dividend - Rs. - 12.5000
EXCELCROP Interim Dividend - Rs. - 11.5000
GABRIEL Dividend - Rs. - 0.7500
HESTERPH Final Dividend - Rs. - 1.1000
KALYANIFRG Dividend - Rs. - 2.0000KANCOTEA Dividend - Rs. - 5.0000KEYCORPSER Dividend - Rs. - 1.0000M&M Dividend - Rs. - 12.0000
MERCATOR Dividend - Rs. - 0.1000
MHRIL Dividend - Rs. - 5.0000NOVARTIND Buy Back of Shares
NOVARTIND Dividend - Rs. - 10.0000PANCARBON Dividend - Rs. - 10.0000PATELSAI Dividend - Rs. - 2.2000QUICKHEAL Dividend - Rs. - 2.5000SOBHA Dividend - Rs. - 2.0000SQSBFSI Final Dividend - Rs. - 20.0000
STAR Dividend - Rs. - 4.0000TATACOMM Dividend - Rs. - 4.3000
ZEEL Dividend - Rs. - 2.2500
Today's Key Result 21st July 

Hdfc Bank (Est Net 3270 Cr + 21% Yoy Time- During Mkt)
ITC ( Est Net 2470 Cr +9% Yoy Time - During Mkt)
Kotak Bank ( Est Net 740 Cr +290% Yoy Time - During Mkt)
Ashok Ley ( Est Net 188 Cr +19% Yoy)
ABB( Est Net  79 Cr +39% Yoy)
Sks Micro ( Est Net 124 Cr +104% Yoy)
Cairn( Cons Est Net 433cr -48% Yoy)
Biocon( Cons Est Net 128 Cr 2% Yoy)
Syngene ( Est Net 64 Cr)
Jsw Energy ( Cons Est Net 364 Cr +31% Yoy)
Chemfab Alk,DB Corp, Gnfc, Heidelberg Cem, IFB Ind, Kirloskar Broth,Motilal Oswal, Rane Brake, Raymond, State Bank Bikaner, Tinplate, Zensar Tech
Srcs-Cogencis
TOP NEWS

Lupin launches generic Ortho Tri-Cyclen Tablets in the US; an oral-contraceptive – Positive for Lupin

VRL Logistics – The promoters of the company have withdrawn plans of regional aviation airline citing regional interconnectivity policy not favorable as per media reports. The issue had been a key hangover on the stock till date. The development is positive for the stock.

Ambuja Cement, ACC – CCEA clears Ambuja proposal to buy 24% stake in Holcim gets nod – Positive for ACC while Ambuja Cements (sentimentally negative for Ambuja due to holding discount); we have buy call on Ultratech and Grasim in cement sector
The Cabinet Committee on Economic Affairs paved the way for Ambuja Cements to acquire 24% stake in its holding company, Holcim (India) which would lead to an outflow of Rs3500 crore from India and be a precursor to reverse merger through a share swap (also given a go-ahead by CCEA). Post the merger ACC will become a subsidiary of Ambuja Cements. Merger proposal will also give synergy benefits to both companies.

Optic Fiber - IT Minister Mr Ravi Shankar Prasad reiterated that under the National Optical Fibre Network project, renamed as BharatNet, the government plans to establish a network infrastructure by connecting all 2.5 lakh Gram Panchayats through OFC. – Positive read thru for optic fiber players like Sterlite Tech, Vindhya Telelinks, Finolex cables and Aksh Optic. 

FUND RAISING 

Ultratech get shareholder nod to Issue NCDs up to Rs9,000 Crore and also  nod to raise FII investment limit to 30% from 24%.

WEAK RESULT

Hindustan Zinc reported a 47% decline in net profit to Rs 1037 crore in Q1FY2017- Negative
Hindustan Zinc Ltd (HZL) reported a 47% decline in net profit to Rs 1037 crore in Q1FY2017. The revenue went down 30% to Rs 2,501.47 crore, due to lower zinc volumes and lower realization at the benchmark metal exchange. Though higher rupee depreciation and higher silver prices partly offset it but the negative operating leverage pushed operating profit down by 33% and reported net profit lower by 47%.

 OTHER NEWS

M&M launches new mild hybrid Scorpio priced up to Rs 14 lakh
Mahindra & Mahindra launched a new mild hybrid version of its new generation Scorpio priced between Rs 9.74 lakh and Rs 14.01 lakh (ex-showroom Navi Mumbai).The new version is equipped with 'Intelli-Hybrid' technology that helps reduce fuel consumption by up to 7% by assisting the engine with electric power during acceleration, automatically switching the engine off while the vehicle is stationary (start-stop) and re-using brake energy, which would otherwise be wasted.

Kitex Garments Ltd Q1FY17-  The company posted 8% growth in revenue and 30% growth in earnings, led by margin expansion for Q1FY17
Reliance Communication – Rcom undertaking restructuring of its business, whereby aims to demerge real estate business and sell the tower business to unlock value and deleverage the company

Shree Cement – Shree Cement to invest Rs600 crore for 3MT grinding unit in Jharkhand – Positive for the stock.
Shree Cement has signed an agreement with the government of Jharkhand to set up a 3 million tone annual capacity cement grinding unit at an investment of Rs600 crore. The company plans to complete the project in two years. The company also plans to invest in Andhra Pradesh and Telangana and was awaiting to get land acquisition issues cleared. The development is positive for Shree Cement.

Dabur India has forayed into the aerated drinks space with Real VOLO drinks that have 20-25% fruit juice content and will be priced at Rs40 for 250 ml bottle/can – new product addition in beverages space is long term positive for the company

Wipro bags IT and Business Transformation contract from Greater Toronto Airports Authority (GTAA)
Wipro announced that GTAA has entered into a seven-year strategic IT and Business transformation partnership with Wipro. GTAA operates Toronto Pearson International  Airport,  the  largest  airport in Canada and the second largest in North America in terms of international  traffic. This partnership will transform airport operations, run an integrated service delivery using airport best practices, create opportunities for joint innovation by adopting emerging technologies, and will position Toronto Pearson to evolve into the world's leading digital  airport.

Power Sector - CCEA has referred a proposal to auction coal linkages for the power sector to a Group of Ministers
The Cabinet Committee on Economic Affairs has referred a proposal to auction coal linkages for the power sector to a Group of Ministers. The policy was to be applicable both for existing power plants already operating with linkages and new power plants. According to the proposal, existing power plants, with power purchase agreements but no coal linkage, will be able to win the auctions on basis of a premium over the Coal India notified price which would be passed on to consumers by reducing existing electricity tariffs. Coal linkages for new power plants are proposed to be auctioned by State governments/State electricity distribution utilities (discoms).

HPCL plans to issue bonus shares of 2:1 (two shares for every one held). The proposal is subject to approval in the next AGM scheduled on 8 September.

STOCK IN NEWS 
  • Govt infusion in banks still short, say Icra & Fitch 
  • SBI and Brookfield Asset Management Inc will form a joint venture (JV) to drive investment into stressed assets. 
  • Axis cuts base rate by 10 bps 
  • CDC invests Rs 1,000 crore in India Infoline Finance 
  • Small finance bank hopefuls queue up for final approval 
  • S&P drops HDFC Bank's Bahrain bonds from watch list 
  • Shree Cement to invest Rs 600 crore in Jharkhand 
  • Ambuja proposal to buy 24% in Holcim gets nod 
  • Jet Airways is unbundling its fares, to allow customers to opt for paying less in lieu of benefits such as lounge access or bonus miles. 
  • Public sector Central Bank of India will raise Rs 1,297 crore by issuing preference shares to the government. 
  • Tata Steel aims to double Indian workforce's productivity 
  • Lanco Infra in discussions with lenders to sell assets 
  • JSPL to move 'appropriate forum' against recovery notice 
  • Telcos invested Rs 4.31 lakh crore in FY15 
  • Lupin launches generic oral contraceptive tablets in US