}

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



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