}

Monday, 26 September 2016

26 September 2016 - Views & News

MARKET VIEW

 Indian markets are likely to open weak note following global market, tracking a sharp drop in crude oil prices on Friday after reports suggested that differences between Iran and Saudi Arabia may hurt a decision on output freeze when the Organisation of Petroleum Exporting Countries (OPEC) meets later this week. The support for Nifty is at 8750.

Nifty Spot Levels

Support 8800 – 8785 – 8750
Resistance 8857 – 8888 - 8939

GLOBAL MARKET UPDATE

 • Wall Street retreated on Friday as lower oil prices weighed on energy shares and Facebook and Apple declined, but major indexes still posted gains for the week.
• The Dow Jones industrial average ended down 131.01 points, or 0.71 percent, at 18,261.45.
TOP NEWS

Alert: FMCG – Government cuts import duty on wheat (by 15%) and palm oil (by 5%) – positive for biscuit manufacturers (such as Britannia and ITC) and positive for soap makers such as (HUL, Godrej Consumer Products and others)
·         Import duty on crude palm oil has been reduced to 7.5% from 12.5% earlier, while that of refined palm oil has been reduced to 15% from 20% earlier (Constitutes about 20-30% of overall raw material cost of soap manufacturing companies)
·         Import duty on wheat has been reduced to 10% from 25% earlier, while that on potato has been reduced to 20% from 30% earlier.
View: In backdrop of upward trend in the prices of some of the key inputs (including Palm oil), we believe it’s a right step taken by the government, which will be beneficial for entire FMCG sector. 

Maruti Suzuki to launch Ignis SUV in Q4FY17 and plans to roll out 15 models by 2020 in a bid to outpace the industry; Positive
Maruti Suzuki is planning to launch the a new model Ignis in Q4FY17 and has lined up 15 new models to be launched by 2020. Further the media report mentions that the demand for recent launches – Baleno and Brezza is strong and both the cars have a waiting period of 33 weeks and 27 weeks respectively.  

Supreme court directs RBI, Enforcement directorate and SEBI to probe IFCI’s stake buy in MCX-SX and Satyam – Negative for IFCI and MCX

Dilip Buildcon wins orders worth Rs963 crore for road projects – Positive

Arvind to enter footwear retail segment – Sentimentally negative for Relaxo Footwear (enter of large players to further intensify competition)

Fund raising

L&T to gets shareholder nod to raise Rs6000cr

Rural Electrification Corporation (REC) has received shareholder's nod to raise Rs50,000 crore by issuing non-convertible debentures (NCDs)

 GAIL   gets shareholder nod for private placement of securities

OTHER NEWS

Maruti Suzuki introduces ‘MS Dhoni inspired’ Alto special edition to boost sales
Maruti Suzuki India launched ‘MS Dhoni inspired’ special edition of its small car Alto. The special editions of Alto800 and AltoK10 cars are part of the carmaker’s association with the upcoming movie ‘M S Dhoni — The Untold Story’ which is based on the life of limited over cricket skipper M S Dhoni. The special edition cars will be available for sale at Maruti Suzuki dealerships from the first week of October 2016.The special edition Alto has features like Dhoni inspired sporty seat covers with number “7”, MS Dhoni signature decal and body graphics, high end music system and reverse parking sensors.

Fertilizers sales till August 2016 drop on a YoY basis due to liquidation of channel inventory.
Fertilizer sales, including pesticides, insecticides and seeds for this Kharif sowing season were down on a YoY basis on liquidation of channel inventory, despite positives like a 4% increase in acreages across all crops and a normal monsoon. Sales data till August 2016 shows that  urea sales were down 8.79 % YoY  while those of DAP/MAP (diammonium and mono ammonium phosphate) were down 23.47 % and complexes’ sales dipped 13.48%.
Cairn to spend USD 150mn (Rs1000cr) on 10 exploratory wells in AP
Cairn India will be taking up exploratory and appraisal drilling of ten wells in Palar block at the coast in Nellore district Andhra Pradesh with an investment outlay of USD 150 million. An Expert Appraisal Committee (EAC) under the Ministry of Environment, Forests and Climate Change examined and gave its nod to the proposal under Coastal Regulatory Zone (CRZ) perspective for drilling to Cairn India. The project was granted environmental clearance in 2011. 
Tata Power's plan to sell Indonesian arms hits valuation hurdle; sentimentally negative for Tata Power

PESB selects Sanjiv Singh as Indian Oil Corporation's CMD

Vardhman Textiles approved buyback up to Rs720cr at max price of Rs1175 per share (current market price of the company is Rs1038)

Welspun India secures patent for “interactive textile article and augmented reality system” –sentimentally positive for the stock

RCF to set up 1.3 mtpa urea plant in Iran – positive read through for the stock

Monte Carlo - ICRA upgrades long term rating from ICRA A+ to ICRA AA- and reaffirms short term rating of ICRA A1

MORE NEWS
RBI Guv Urjit Patel downplays inflation risk, harps on growth 
COAI voting norms skewed in favour of Airtel, Voda & Idea: Jio
Never received any money from NSEL's profit: FTIL
India's foreign exchange reserves at $369 billion
FinMin may talk to EC before finalising Budget date
Vigilance clearance awaited for new MPC members
GDP growth to top 8 pc on rains, reforms: Panagariya
Govt draws up blueprint to deal with sick PSUs
NITI for 10-yr corporation tax holiday for proposed CEZs
Farmers demand 25% hike in UP sugarcane price
ICICI Bank eyes 5 million transactions via voice-recognition
BSE may launch IPO by fourth quarter of this financial year
ONGC Board approves pact to take stake in GSPC gas block
Exim Bank to raise up to $1.5 bn via bonds this fiscal
PE investment falls for 3rd month; August deal tally at $1bn
63 Moons refutes MCA allegations on shareholder objection
Cotton assn voices concern over lower crop estimate in 16-17
Deutsche Boerse to set IT infra for BSE International Exchange
Uber, Ola services for government officers at special rate
Vedanta Sesa Goa eyes synergistic integration of biz 
Congress CMs to press for 18% GST cap
SC gives one more week to Subrata Roy to surrender
Sebi tightens norms for private equity deals in listed firms
Reliance Jio, Idea ramp up claims over interconnection points
Gross sales at domestic e-commerce firms in October could hit $1.8 billion       
Sebi to beef up cyber security framework for markets
'Substantial rise in CSR spending compared to previous year'
Snapchat debuts recording 'Spectacles,' changes company name
BPCL may look at increasing Kochi refinery capacity to 22 MT
'Domestic paper industry needs Rs 90k crore investment by 2030'
India to tap BRICS to meet pulses shortfall
Life insurers want exemption from new tax regime
MSP hike may induce farmers to expand cultivation area
Domestic demand, consumption may spur private capex
 Amtek under I-T lens for alleged price manipulation
FPIs get direct access to corp bond market

STOCK IN NEWS 
1. L&T Tech realigns focus to reach $1-bn revenue target
2. Tata Steel set for trade union talks in UK
3. RCF ropes in FALAT to set up 1.3 MT urea plant in Iran
4. Cairn to spend $150 million on 10 exploratory wells in Andhra Pradesh
5. Kalyan Jewellers on expansion mode; eyes Rs 13,000 crore business
6. L&T Shipbuilding eyes Rs 9,000 cr orders in 3 years, mostly from Navy
7. Intex eyes Rs 100 crore from handsets exports this financial year
8. Jaguar Land Rover, the iconic British luxury brands owned by Tata Motors, will focus on sourcing parts locally to reduce costs and boost competitiveness in India.
9. Maruti launches Alto special edition dedicated to M S Dhoni
10. Tata Power's plan to sell Indonesian arms hits valuation hurdle
11. Marriott, after the buyout of Starwood, has surpassed the Taj group to become India’s largest hotel chain with nearly 18,000 rooms.
12. Bharti Airtel announced on Friday the launch of a special 4G prepaid data pack that offers “free data&" for 90 days.

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