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Tuesday, 30 August 2016

30 August 2016 - Views & News

MARKET VIEW

Markets are likely to open Positive. The index has strong resistance in the zone of 8660 – 8680, above which the bulls will dominate. On the way down, the bears need to break the crucial support zone of 8540 – 8518 to gain momentum.

Nifty Spot Levels

Support 8580 – 8540 – 8518
Resistance 8640 – 8683 - 8711

MARKET UPDATE

Sgx Nifty +17 pts ‎Dow +107.59 pts ,Nsdq +13.41 pts , S&P +11.34 pts ‎, Bovespa +894 pts , Ftse Clsd , Dax -43 pts  , Cac -17 pts , Nikkei  -21 pts  now, Crude @ $47.00 brl (+0.02), Brent @ $49.26 brl (-0.66) , Gold @ $1326.70 (-0.40), Silver @ $18.93 (+0.06), Euro @ $1.1191, JPY @ $101.8600, INR @ $67.1763

GLOBAL MARKET UPDATE

• Financial and commodity-sector stocks led the S&P 500 higher in a low-volume session on Monday after consumer spending rose for a fourth straight month, pointing to a pick-up in US economic growth.
• The US Commerce Department said that consumer spending, which accounts for more than two-thirds of US economic activity, rose 0.3 percent last month after a 0.5 percent gain in June.
• The Dow Jones industrial average rose 107.59 points, or 0.58 percent, to 18,502.99.

Today's Corporate Action 30th Aug  Ex Date

CHENNPETRO Dividend - Rs. - 4.0000
HSIL Dividend - Rs. - 4.0000
IONEXCHANG Dividend - Rs. - 3.0000KKCL Final Dividend - Rs. - 1.5000OFSS Dividend - Rs. - 100.0000
PPAP Dividend - Rs. - 1.0000SHARDA Final Dividend - Rs. - 6.2500
UBL Dividend - Rs. - 1.1500
VGUARD Stock  Split From Rs.10/- to Rs.1/-

‎Today's Key Result 30th Aug 

Cox & King,Cromp Greaves, Goodyear, Whirlpool
Srcs-Cogencis Est Net 
TOP NEWS

Bharti Airtel cuts data tariff sharply (especially on pre paid (packs) in preparation of Reliance Jio launch of services – Negative; concerns related to intensified competition led realization pressure on telecom operators would result in de-rating of the telecom stocks

V-Guard Industries- Stock split on 30th August, 2016 (record date) in ratio of 10:1. The stock will turn ex-stock split on August 30.

ZEEL says in advanced stage of discussion for sale of TEN Sports – Positive; sports has been a loss making unit for Zee
ZEE entertainment agreed that it is in advanced stage of discussion for sale of its sports business (TEN Sports). It also disclosed that owing to confidentiality provisions, the company is unable to comment on specific details or timelines. ZEEL's sports business, housed under TEN Sports brand, consists of 5 channels.

MACRO WRAP

RBI annual report indicates improving economy
The Reserve Bank of India (RBI)'s annual report indicates that the reform measures, passing of crucial bills by the Government and reduction on the number of stalled projects (dwon from 592 to 404 projects) are key positives. It has indicated that slower investment pick up and low capacity utilization are concerns. Inflation worry remains as it is at the higher range for RBI which needs to come down before further rate cuts can happen.

 OTHER NEWS

Tyre industry: Natural rubber and crude oil prices dip 9-13% in last two months; positive for Apollo Tyres, Ceat, JK Tyres and Balkrishna Industries
Domestic natural rubber prices have fallen to Rs 130 from Rs 140-142/kg levels witnessed in mid-July. Also, crude oil prices have declined 13% from the June peak levels. Also, the natural rubber prices can dip further given the increased tapping post monsoon and lower international prices (international rubber prices are currently trading at Rs 108/kg). Decline in the raw material prices is positive for Apollo Tyres, Ceat, JK Tyres and Balkrishna Industries.

TD power wins contract for exports of generators-railway application; positive
TD power has won contract for supply of 45 railway application generators from a major multi-national company for installation in North America. The supplies under this order would be completed between January 2017 &April 2017. Company expects volume growth from this business in future.  

Ashoka Buildcon Q1FY2017 Results: Company reported only standalone financials - Standalone net profit down by 33% YoY Ashoka Buildcon reported only standalone financials for the Q1FY2017. The company's standalone total income declined by 2% YoY to Rs477 crore as against Rs498 crore during Q1FY2016 (included Rs13 crores dividend income from subsidiaries). The company's standalone operating margins declined by over 400BPS YoY to 14.3% for Q1FY2017 as against 18.3% for Q1FY2016 which led to 26% YoY decline in EBITDA to Rs68 crore. Further, lower other income and higher effective tax rate led to 33% YoY decline in its standalone net profit to Rs31 crore. The company will be holding a conference call today (30th August) post which we will update about other developments. Ashoka Buildcon has secured a Rs946crore contract from the National Highways Authority of India for two/four-laning of the Rajgunj-Chas-Jharkhand/West Bengal border on an engineering, procurement, and construction basis .

Monsanto  has approached the Delhi high court against a Competition Commission of India (CCI) order that rejected its challenge against probing the role of the company’s top officials for anti-competitive practices
The company has challenged CCI’s order of 26th July and objected to a probe of its officials while claiming that such a probe could only be allowed if a company does not comply with orders. The CCI order had asked the seed company to cooperate with the investigation initiated against its officials.

L&T Technology Services, an arm of L&T, has received the approval of SEBI for IPO. The IPO could unlock value for L&T – positive read thru  
According to media sources, the IPO size of L&T Technology Services is estimated to be in the range of Rs 750-1,000 crore. The company, which provides innovative engineering as well as research and development services across sectors, has revenues worth nearly $500 million.

Coal India’s subsidiary Coal Videsh is looking for acquiring coking coal assets  in South Africa. The company’s Board has approved signing of a memorandum of understanding (MoU) with the South Africa government-controlled African Exploration Mining and Finance Corporation (AEMFC).   
eClerx board approves Buyback of equity shares
eClerx approved a proposal for Buyback of equity shares of the company, for an aggregate amount not exceeding Rs. 234 Crores at a price not exceeding Rs2,200 per share. At maximum Buyback price, the buyback translates into approximately 1,068,182 Equity Shares of the Company, representing about 2.6% of the total paid up equity share capital of the Company

Wipro and Stibo Systems Partner for Master Data Management Solutions
Wipro and Stibo Systems announced a partnership, that will see the two companies collaborate to offer Master Data Management (MDM) solutions. This partnership is aimed at building trust-worthy data foundations to help joint customers derive accurate insights as they embrace digital transformation

Ajanta Pharma gets USFDA tentative approval  for generic of Relax tablet; used to treat migraine headaches – Positive for Ajanta

MORE NEWS

Shah Committee report on RIL-ONGC by Aug 31
Australian Commonwealth Bank to shut down India ops
Indo-UK free trade pact likely soon: Sitharaman
Ratan Tata, Vijay Kelkar and Nandan Nilekani to set up a microfinance firm 
Airtel cuts 4G price by up to 80% to check Jio effect 
ZEE in discussion with suitors for sale of sports biz
Infra giants return to highways sector
Birla plans to exit low-margins business in India, abroad
Inflation leaves no room for rate cuts, says Rajan
RBI balance sheet up 12.3% at Rs 32.43 lakh cr in 2015-16
Tata Sons reaches for the sky, infuses more funds in Vistara, Air Asia
Shree Renuka Sugars to exit Brazil partially to reduce debt
Indian Oil Q1 net rises 31% on improved margins from petrochem business
DLF Q1 profit doubles on sale of DT Cinemas
Pharma pricing body moves to recover money overcharged by firms 
Mallya deliberately didn’t disclose full assets: banks to Apex court
With Harvard University, Tata’s JLR hopes to soon steer fleet of driverless cars
Gautam Adani’s Carmichael mine project upheld by Australian court
SBI pushing for Jyoti Structures takeover by Dubai’s Amin Group
Goldman Sach subsidiary sells stake in Max Ventures
The biggest challenge in implementing Sebi’s algo curbs could be Sebi
L&T Technology Services gets Sebi clearance for IPO
Reliance Jio pre-launch offer now available on Sony, Videocon phones             
RBI concerned over weak monetary policy transmission
FSDC's sub-committee discusses global, domestic developments
Government defers mega spectrum auction by 2 days to October 1
PACL case: Sebi puts on sale properties across 192 districts
NHAI awards Rs1,646-cr contract to Ashoka Buildcon, Ramky Infra
Plea to RBI, Sebi to stop SBT-SBI merger
KNPP Unit-2 synchronised with southern grid
Jaitley wants Indo-US trade on firmer footing
India bids for Chinese investments in tourism
Prospects for Fed rate hike to drive mkt sentiment
Offshore funds, ETF witness over $5b net outflows

 STOCK IN NEWS 

1. Monsanto moved to Delhi High Court against CCI order
2. Zee Entertainment Enterprise Ltd  is looking to sell its sports channel Ten Sports for an undisclosed amount.
3. IDBI Bank said it has cut its stake in rating agency CARE to 3.40 per cent from 6.12 per cent.
4. MEP Infra gets NHAI toll collection contract in Jharkhand
5. Dr Reddy's launches Nitroglycerin tablets in the US
6. Airtel cuts data prices, launches innovative packs for pre-paid users
7. Aurobindo, Intas seek to boost Europe business with Teva bid
8. Oswal group initiates sale of NDTV stake at 3.5 times returns
9. Road Ministry: Awards Contract Worth Rs 700 Cr To Ramky Infra and 946 Cr Contract To Ashoka Buildcon
10. Ajanta Pharma: Gets Tentative US FDA Nod For Eletriptan Hydrobromide Oral Tablets
11. Relief for Adani as Australian court dismisses plea challenging mine approval

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