}

Monday, 29 August 2016

29 August 2016 - Views & News

MARKET VIEW

Nifty is likely to open on a weak note based on the global cues. The crucial support for Nifty is at 8490 level. 

Nifty Spot Levels

Support 8540 – 8518 – 8489
Resistance 8620 – 8683 - 8728

GLOBAL MARKET UPDATE

 • US stocks ended modestly lower after a volatile session on Friday, having bounced between gains and losses as investors wrestled with the likely timing of a US interest rate hike following comments from top Federal Reserve officials.
• Yellen told a gathering of central bankers from around the world in Jackson Hole, Wyoming, the US economy was nearing the central bank's goals of maximum employment and price stability but that future hikes should be "gradual".
• The Dow Jones industrial average fell 53.01 points, or 0.29 percent, to 18,395.4. 

TOP NEWS:

Govt to consider scrapping policy for commercial vehicles – Positive Ashok Leyland, Tata Motors and CV auto anci companies like Gabriel, Jamna Auto
Government will finalise the draft policy for scrappage of Medium and heavy commercial vehicles (MHCV) which are older than 15 years. The Government will be ready with a draft scheme in 15 days which would then be sent to Finance Ministry. Incentives to the tune of Rs 2-3 Lakh on new vehicle purchase would be provided in the Budget for the owners who opt for scrappage scheme. As per Government estimates, the policy is likely to cover 12-15 lakh MHCV vehicles. The policy would trigger strong demand for new MHCV (MHCV industry current size is 3 lakh units). Positive for Ashok Leyland, Tata Motors and CV related ancillary players such as Jamna Auto, Sundram Fasteners and Gabriel

Seeds Industry form association to put pressure on govt – Postive read thru
Post the Monsanto withdrawing its plans for GM seeds in India, major seed companies have formed Federation of Seed Industry of India (FSII), which includes ten companies like Monsanto India, Bayer Corp Science, Syngenta to name a few. The FSII wants the government to allow the market to set the price of GM seeds rather than any other regulatory mechanism. This if approved can be a positive for seed companies.

Tyre imports from China grow by 40% in Q1 – Negative for domestic tyre companies
Chinese imports of truck and bus radial (TBR) tyres to India has grown over 40% in Q1FY17 compared to imports during the June quarter last year. According to the industry, Chinese imports now form 35% of the TBR replacement market. In TBR imports, China's share is around 96%. The continued growth in imports from Chinese players is continuing to impact domestic CV players Apollo Tyres, JK Tyres, and Ceat

FUND RAISING

KSK Energy Ventures   board approves raising funds up to Rs 5,000 via issue of securities

OTHER NEWS

M&M has launched DiGiSense, a technology solution that connects M&M vehicles, tractors, trucks and construction equipment to the cloud.  This technology provides data such as route planning, delivery tracking, vehicle utilisation reports, trip optimisation, alerts and machine hour operations and geo fencing. DiGiSense empowers fleet operators, drivers, dealers and service teams to access vital information about their vehicles, trucks, tractors or construction equipment on a real time basis from the driver's seat and afar.

L&T - management expects IDPL restructuring by March and sees big gun orders worth Rs 4,300 crore in next 2-3 months; also widening export focus to Southeast Asia and Africa – positive read thru
Larsen & Toubro - The management expects to finish restructuring of L&T Infrastructure Development Projects Limited (IDPL) by March next year and sees big gun orders worth Rs 4,300 crore coming in within next 2-3 months. L&T management has enhanced focus on Southeast Asia and Africa to make up for the slowdown in West Asia, as low crude oil prices continuing to weigh on investment plans of oil-rich nations. Overseas orders now account for a third of the company's order inflow, up from 10-12 per cent a few years ago. L&T has identified new markets including Tanzania, Kenya, Ethiopia, Uganda, Mozambique and Algeria in Africa and Malaysia, Vietnam, Indonesia in Southeast Asia  

JBF Industries  Q1FY2017 results weak : Net profit declined 49.7% (YoY) to Rs 9.8 crore while sales grew by 4.7% YoY to Rs 941 crore. EBITDA declined by 32.5% YoY to Rs 67.3 crore and EBITDA margin contracted to 7.2% against 11.1%.  

Power sector -The power ministry plans to set up two funds of $1 billion each to enable alternative financing options for stressed power assets and renewable energy projects. The two funds have been proposed under the ambit of the National Investment and Infrastructure Fund (NIIF).

Coal India will invest around Rs 7,765 crore towards the ongoing projects in FY2017 and Rs 5,069 crore in various projects, including railway infrastructure, super critical thermal power plant and solar power. – positive read thru

Infosys to split business into smaller units
Infosys plans to split its business into smaller units, which will be managed by the company's next rung of management. The smaller units, with revenues between $500 million and $700 million each, could have from a handful to a couple of dozen clients — a structure that would give Sikka and his presidents the ability to zoom in on the particular needs of a particular cluster of clients

GMR Infra wins Goa’s Greenfield Mopa Airport for Rs 3300 crore; positive for GMR infra
GMR Infrastructure Limited 's subsidiary GMR Airports Limited (GAL) has won bid for development and operation of Mopa Greenfield Airport in North Goa. The airport will be built under the BOT (Build Operate Transfer) model. Its total ordersize is Rs 3300 crore.
MORE NEWS

India, US eye bilateral trade worth $500 bn: Report
Aurobindo, Intas in race for $1 billion buyout of Teva UK
Govt may advance Parliament session to approve GST
Forex reserves increases to $367 billion
Crops cover 5 per cent more area than year ago
SFIO widens Mallya probe; top bankers under scanner
$1 bn fund in the works for renewables: Piyush Goyal
Paytm to raise $300 million, valuation pegged at $5 billion
RBI unions write to MPs, state FMs against PDMA
Adani Enterprises promoters pledge shares
REC to seek shareholder nod on September 21 for raising Rs 50,000 crore
Draft vehicle scrapping policy to be ready in a fortnight
NBCC share sale: 8 merchant bankers vie to manage the show
Zee Unimedia eyes ad business from other media outlets, too
To reduce dependence on IPPs, Suzlon to focus on captive customers
Madhya Bharat Agro to launch IPO on Monday
ACC poised to ramp up manufacturing capacity with Jamul, Sindri plants
Centre working to provide farm loans in timely manner: Minister
Sebi mulling relaxed norms for REITs, InvITs, start-ups listing
Trade unions refuse to call off 2 September strike
Flipkart valuation downgraded by Morgan Stanley 3rd time in 6 months
Coal India to spend Rs7,765 crore to increase mining capacity
Tax resolution scheme: CBDT to write to 2.59 lakh taxpayers
NSE to complete delisting process of 140 companies in two months            
India, US set to sign key logistics agreement
Power Grid to electrify 1,000 km of rail tracks on pilot basis
Huawei Reaffirms Commitment to ‘Make in India’ Vision
Insurers to file compliance to investment norms form March
Gold rebounds on jewellers' buying, silver jumps Rs 280/kg
Policymakers plan for 'brave new world' as Fed nears rate hikes
Monsanto lobbies with US lawmakers on Indian norms
Investors have to track share pledging moves
India no exception to external trends in a global economy
Govt moots Rs 1.5kcr security fund for solar projects
Welspun tangle points to quality challenges

 STOCK IN NEWS 

1. Adani Enterprises promoters — Gautam Adani and Rajesh Adani — have pledged an additional 16.5 million shares or 1.50 per cent stake to STCI Finance Ltd.
2. REC to seek shareholder nod on September 21 for raising Rs 50,000 crore
3. Bharti Airtel announced the launch of its 'India with Airtel' bouquet of services offering end-to-end connectivity solutions for foreign companies looking to set up businesses in India.
4. NBCC share sale: 8 merchant bankers vie to manage the show
5. ICRVL eyes Rs 500 crore biz from Boutique Living in 5 years
6. ONGC hires consultant to assess reserves in GSPC KG gas block
7. CIL gets shareholders nod for buyback of 10.89cr shares
8. Infosys to give clearer picture on guidance post Q2
9. CIL to invest Rs 7,765 crore in FY'17 for capex
10. Welspun India hires EY to probe US export lapse
11. Mahindra launches technology platform DiGiSense Lupin gets tentative USFDA nod for generic anti-depressant

No comments: