}

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





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