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Wednesday, 31 August 2016

31 August 2016 - Views & News

MARKET VIEW

Markets are likely to open Flattish note. Bias for market is positive; Nifty has started making higher top and higher bottom, it has also finally broken out from the recent consolidation phase. An immediate resistance for the Nifty is at 8788 whereas the Index now has a strong support at 8640 levels
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Nifty Spot Levels

Support 8711 – 8640 – 8595
Resistance 8788 – 8850 - 8900

MARKET UPDATE

Sgx Nifty -3 pts ‎Dow -48.69 pts ,Nsdq -9.34 pts , S&P -4.26 pts ‎, Bovespa -34 pts , Ftse -17 pts , Dax +113 pts  , Cac +33 pts , Nikkei  +152 pts  now, Crude @ $46.18 brl (-0.17), Brent @ $48.37 brl (-0.89) , Gold @ $1314.80 (-1.50), Silver @ $18.70 (+0.02), Euro @ $1.1150, JPY @ $102.9000, INR @ $67.0313

GLOBAL MARKET UPDATE

• Apple Inc was the largest weight on US stock indexes on Tuesday after antitrust regulators ordered the company to pay about USD 14.5 billion in back taxes to the Irish government, but gains in bank shares partly offset the decline.
• US consumer confidence rose to an 11-month high in August, with households more upbeat about the labor market.
• Bets on a bottoming out of bond yields have given support to bank stocks of late.
• The Dow Jones industrial average fell 48.69 points, or 0.26 percent, to 18,454.3

Today's Corporate Action 31st Aug  Ex Date

AHMDSTE Dividend - Rs. - 0.7500GANECOS Dividend - Rs. - 1.2000
GENUSPOWER Dividend - Rs. - 0.2500GULFOILLUB Final Dividend - Rs. - 4.0000
HINDCOMPOS Dividend - Rs. - 1.0000MALLCOM Dividend - Rs. - 2.0000MARUTI Final Dividend - Rs. - 35.0000
ONGC Final Dividend - Rs. - 3.2500
PHOENIXLTD Final Dividend - Rs. - 0.4500

Today's Key Result 31st Aug 

Bpcl( Est Net 2148 Cr -10% Yoy)  Abfrl,Ansal Prop,Gvkpil, Hathway Cable,Llyod Elect,Mcx,Sadbhav Eng,United Brew Ltd  Srcs-Cogencis Est Net 

TOP NEWS

Ultra Tech  Cement got approval to hike FII investment limit to 30% from an earlier of 24% - Sentimentally positive

Reliance Jio partners with Videocon- In the run up towards the launch of its services, Reliance Jio  has partnered  with Videocon, more clarity on pan India  Jio launch and strategy will emerge from Reliance  AGM on 1st September 2016.

Kotak Mahindra Bank: RBI gives nod to Canada Pension Investment Board to increase its holdings in Kotak Mahindra  Bank from 5% to 10% - Positive for Kotak Mahindra  Bank.

Steel prices are likely to go up by Rs 2,000-2,500 a trillion (as per reports) starting September with a sharp rise in raw material cost and signs of a revival in demand, positive of steel manufacturers, along with Ratnamani Steel and Pipes.

Sugar – According to International Sugar Organisation (ISO) the global sugar market, which after five years slipped into a deficit in 2015-16 (Oct-Sep), is likely to post a deeper deficit in 2016-17; this would result in further surge in the global sugar prices – positive for sugar companies (including Balrampur Chini and Dhampur Sugar) as surge in the domestic sugar prices would add-on to earnings.

Maharashtra to Scrap 94 Tenders In 14 Irrigation projects, negative for Jain Irrigation (though Jain’s Irrigation management says scrapping Of irrigation projects by Maha Govt won’t affect biz)

In a major decision, Maharashtra government today decided to scrap 94 tenders in 14 irrigation projects in the Konkan and Nashik divisions which are under the Anti-Corruption Bureau's scanner, This includes 81 various works related to Gosi-Khurd irrigation project in Vidarbha region, which has seen a massive cost escalation in last 35 years. Addressing reporters at Mantralaya, Water Resources Minister Girish Mahajan said the total cost of the scrapped tenders is about Rs. 3,295 crore

OTHER NEWS

TCS and GE join hands to reduce gas turbine manufacturing cost
TCS announced that it has developed an innovative digital solution to reduce the manufacturing cost and time of gas turbines in collaboration with General Electricals (GE). The digital solution will analyze temperature at various points on the metal turbine parts as they are assembled and cooled, allowing operators to know when the next operation can be performed, reducing wait time between operations and improving quality monitoring.

Info Edge (India) invests additional Rs 17.3 crore in Canvera
Canvera.com has raised Rs 20 crore in Series B funding led by existing investor Info Edge (India) Ltd. Info Edge has invested Rs 17.3 crore in the company while the remaining Rs 2.7 crore is coming from new investors and certain existing investors. Prior to this investment, Info Edge had a 49% stake in Canvera, for a total investment of Rs 90.1 crore (as of 25th May 2016). With this investment, Info Edge has invested Rs 107.4 crore in the company since 2012, when it made an initial investment of Rs 35 crore.

COAL INDIA: Submitted an application to the National Institute of Mines (Instituto Nacional de Minas) of Government of Mozambique to surrender prospecting licences awarded to its wholly-owned subsidiary Coal India Africana Limitada since mining would be "technically not feasible" in the licence areas

AVIATION: Domestic airlines no longer need prior government approval to enter into international code share pacts with foreign carriers, with the Directorate General of Civil Aviation relaxing the requirements in this regard, positive for Aviation players like Indigo, Spice jet stc

Road Sector – Government panel clears 16 highway projects for bidding – Positive read thru for the sector
A government panel cleared for bidding 16 highway projects totaling 622km worth Rs7456 crore in 11 states as per media reports. Of the total number of projects, 13 would be executed in EPC mode, 2 in hybrid annuity mode and 1 in BOT mode. The detailed project reports of the projects are complete and the contracts can be put up for bidding. The news is positive read thru for the sector which comprises companies like IRB Infrastructure, IL&FS Transportation, L&T, Ashoka Buildcon, Sadbhav Engineering, KNR Construction, Gayatri Projects, MBL Infrastructure among others.

The Phoenix Mills – The company is looking to sell stakes in a clutch of projects housed in a Island Star special purpose vehicle as per media reports. The company is in talks with several PE investors to divest a minority stake in the SPV. The SPV primarily houses a mall in Bengaluru valued at around Rs1000-1200 crore. The development is positive read thru for The Phoenix Mills.

DLF – DLF shortlists bidders for stake sale in rental arm – positive read thru for the stock
DLF has shortlisted bidders for stake sale in its rental arm and has allowed access to virtual data room and vendor diligence reports as per media reports. The company expects to receive binding, updated bids in the form of marked up shareholder agreements once the shortlisted bidders complete their due diligence. The stake sale is expected to leave DLF in funds, enabling it to substantially lower its debt. The development is positive for DLF.

IL&FS Transportation – The CFO of the company, Mr. Dilip Bhatia in a telephonic interview with media said that the company will monetize three to four of its mature assets by creating an Infrastructure Investment Trust over the next six to nine months. The move will help the company to reduce debt substantially at the consolidated level. The development is positive read thru for ITNL.

Marico raised prices of its Parachute and Saffola products in the range of 3.5-8.0% in July 2016 (in-line with management commentary; factored in our estimates) in wake expected increase raw material prices; going ahead price increase will depend upon the surge in raw material prices and competitive intensity and hence would not have any substantial impact on the sales volume – neutral for the stock

Divis Laboratories to invest 500 crores to set up a new API facility at Kakinada in Andhra Pradesh, which is expected to be operational in the later part of 2017-18, will be funded through internal accruals – Positive for Divi’s

Tata Motors to focus on new product launches; platform sharing and vendor consolidation to improve performance of India Operations; positive:
Tata Motors will focus on reducing the number of platforms used in manufacturing passenger vehicles and increase platform sharing to drive down costs. The company will look at ways to remove inefficiencies among its component suppliers to drive down costs. The company will conduct an audit of the vendors and aims to reduce the number of vendors (it currently has 1,300 component suppliers in both passenger and commercial vehicle segment).  Also the company plans to phase out old legacy products and introduce new products across segments and aims to be amongst the top  three players in the passenger vehicle markets 

MORE NEWS

SWIFT discloses more attacks on banks by hackers
Indian economy to grow at 7.8% in 2016-17: Survey
Oil and Gas Ministry seeks uniform taxes on LPG
Black money: 300% rise in I-T Dept raids, seizures
GST, reforms to boost India's growth: FM to US CEOs
Chile breaks Dubai's record of solar power at low cost
Govt approves Rs 7,457 cr highway projects in 11 states
Chinese firms invested $2.3 billion in 3 months in India
EU crackdown on multinational tax deals
Need to provide more capital to PSBs to deal with NPAs: RBI
Green panel clears SAIL's Rs 5,419-cr modernisation plans
Sebi warns investors about schemes offering prize money
Rcom evaluating options regarding 700 MHz spectrum
Sebi asks commexes to register traders for price dissemination service
Business Line
DLF shortlists bidders for stake sale in rental assets arm
Trade unions stick to Sept 2 strike, reject govt’s wage hike 
EU orders Apple to pay up to 13 bn euros tax to Ireland 
NTPC Koldam hydro project achieves 107% capacity utilisation
RCom to offer 300 minutes of 4G calling at Re 1
Oil prices rise as dollar comes off 2-week high
Govt to amend norms for fixing drug prices
BSE 500, mid-cap indices scale record high
India-US nuclear deal: Time to yield concrete results, says John Kerry
Aircel Cellular moves SC against Madras HC decision on spectrum charge
Moody’s concerns could thwart GMR’s stock from take off
Our focus area is small and medium sector: Microsoft’s Pramanik           
Airtel, Vodafone, Idea cut tariff, bundle plans ahead of Reliance Jio entry
Sensex jumps 440 points on global cues, corprate earnings; Nifty hits 16-month high
RBI allows foreign investors higher holding in Ultra Tech
Indian rupee gains 15 paise to close at 67.03 against US dollar
Industry pitches for 18% GST, exemptions for e-comm players
India, US sign logistics pact to cement defence ties
IOC raises oil import from Iran to 5 MT for FY'17
Offshore funds, ETF witness over $5b net outflows
Cipla gets USFDA nod for generic anti-depressant drug
India-Myanmar scale up ties in China's shadow

 STOCK IN NEWS 

• Tata Motors will focus on reducing the number of platforms used in manufacturing passenger vehicles and increase platform sharing to drive down costs.
• Tata Motors lines up new vehicles; to phase out legacy products
• Maruti launches Swift variant priced upto Rs 6.86 lakh
• Airtel, Vodafone, Idea cut tariff, bundle plans ahead of Reliance Jio entry
• M&M to continue selling 1.99 ltr engine SUVs in NCR
• Green panel clears SAIL's Rs 5,419-cr modernisation plans
• Indian Oil Corp raises oil import from Iran to 5 MT for FY'17
• Cipla gets USFDA nod for generic anti-depressant drug
• The U.S. agreed to “look into” India's concerns about Obama administration's move to increase fee for H1B and L1 visas.
• Mukesh Ambani to announce Reliance JIO 4G commercial launch on September 1.
• Canada Pension Plan hikes stake in Kotak Mahindra Bank.

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