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Wednesday, 28 September 2016

28 September 2016 - Views & News

MARKET VIEW

Markets are likely to open flat to negative on the back of weak Asian markets. The Nifty continues to make lower top, lower bottom - indicating downtrend in the short term. An immediate resistance for the Nifty is at 8560, whereas the immediate support lies at 8690      
                  
Nifty Spot Levels

Support 8642 – 8595 – 8570
Resistance 8760 – 8820 - 8848

GLOBAL MARKET UPDATE

• Consumer and technology stocks, including Amazon, led gains on Wall Street on Tuesday, while a perceived win by Democrat Hillary Clinton in Monday's first presidential debate gave broader support to equities.
• Following the first of three presidential debates on Monday, Republican candidate Donald Trump vowed to hit Clinton harder after she put him on the defensive.
• Oil prices plunged 3 percent as hopes for a deal to cut output faded at major producers meeting in Algeria.
• The Dow Jones industrial average rose 0.74 percent to end at 18,228.3 points.

TOP NEWS

Lupin, Torrent Pharma, Cadila, Mylan, Sun considering bids for Bayer’s $1 billion dermatology business  - Long term Positive for company who successfully wins the bid as dermatology business is high margin and will aid  US growth of that company.

Motherson Sumi - RBI raises foreign Investment limit in Motherson Sumi from 24 percent to 30 percent  - sentimentally positive for the stock

Aurobindo gets approval from the USFDA for zoledronic acid injectable; used to treat some bone diseases – Positive for Aurobindo

Cipla aims to reach $1bn India sales through tie-ups and new launches  - Long term positive for Cipla; management guides for 13-15% sales growth for over long term period for domestic business (which had sales of Rs 5100 crores in FY16).
Cipla is planning to reach a billion dollar sales mark in India, backed by new drug launches from its own research labs and a slew of partnerships with multinational and Indian drug firms. Cipla’s current market share is 4.9% compared to Sun Pharma’s 8.7% and Abbott’s 6.23%. Cipla has stepped up launch plans in areas like respiratory, dermatology, cardiovascular and urology, which will help speed up its India growth. 
IL&FS Transportation has received in-principle approval for registration of “IL&FS Transportation Investment Trust” as Infrastructure Investment Trust from SEBI. The Company will act as the Sponsor of Trust once it is registered. The development is positive for the stock.

Ashoka Buildcon: SBI, Maquarie may sell 39% stake in Ashoka Concessions – Positive read thru for Ashoka Buildcon

Ahluwalia Contracts: construction work to be stopped at International convention centre and police headquarter in Patna – Sentimentally negative


  OTHER NEWS
 Moody’s upgrades Tata Motors’ rating on continued strong of JLR; positive
Moody’s Investors Service has upgraded Tata Motors Ltd’s (TML) corporate family rating to Ba1 from Ba2. It has also upgraded the company’s senior unsecured instrument ratings to Ba1 from Ba2, on the company’s continued strong performance led by its UK subsidiary, Jaguar Land Rover Automotive Plc. The development is positive for Tata Motors.

Tata Motors enters Bolivia commercial vehicle market 
Tata Motors forayed into the Bolivian commercial vehicle (CV) market with the launch of three products in the South American country. Tata Motors has signed a distribution agreement with local partner Bolivian Auto Motors. Tata Motors has launched three commercial vehicles in the Bolivian market - Tata SuperAce Petrol, Tata Xenon Petrol and Tata LPT 613 truck. 
In a restructuring exercise, M &M buys out European two wheeler subsidiary company for Euro 26.3 mn (Rs 197 Cr); Neutral
Mahindra & Mahindra has announced to acquire the European two-wheeler subsidiary company of Mahindra Two Wheelers Ltd (Mahindra two wheelers is also a subsidiary company of M&M) for a consideration of euro 26.3 million (about Rs 197 crore). M&M will acquire 14.9 million equity shares representing  100 % of share capital of Mahindra Two Wheelers Europe Holdings (MTWL-Europe), which in turn holds stake in Peugot Motorcycles SA. The acquisition will facilitate improved focus on the two wheeler business of M&M.

Ashoka Buildcon: SBI, Maquarie may sell 39% stake in Ashoka Concessions – Positive read thru for Ashoka Buildcon
Ashoka Buildcon may see value unlocking in its subsidiary, Ashoka Concessions as SBI and Macquaire have plans to put their 39% stake in the company on the block as per media reports. SBI and Macquaire had picked up the stake in the company, in which parent Ashoka Buildcon holds 61% stake, in a deal valued at roughly Rs 2,500 crore about 3 year back. As per media reports they have already kick-started the process to sell stake and have approached potential suitors. Some sovereign wealth and pension funds overseas, keen to invest in India are reportedly looking to take over the stake.

ARSS Infrastructure projects JV bags order of Rs135 crore – Positive for the stock
ARSS Infrastructure projects has bagged order of Rs.135.45 Crores for Soil investigation, design of bridges, execution of earth work. minor bridges, major bridges, RUBs, extension of FOB, Staff Quarters and other service buildings, supply or ballast and other miscellaneous works in Lajkura-Raigarh section in connection with the construction of 4lh line between Jharsuguda - Bilaspur in favour of its Joint Venture named "ARSS-SJPS (JV)" by South Fast Central Railway, Bilaspur.

Ahluwalia Contracts: construction work to be stopped at International convention centre and police headquarter in Patna – Sentimentally negative for Ahluwalia Contracts
Ahluwalia Contracts (India) have received letter from Building Construction Department (B.C.D.) Patna, for stop of construction of International Convention Centre (ICC) and Police Headquarter Bhawan, Patna as per order of Hon'ble National Green Tribunal (NGT), Eastern Zone Bench, Kolkata. The Hon'ble NGT has directed that Patna Master Plan was not yet approved and the approval of the master plan is mandatory requirement under MOEF Notification in respect of constructions with built-up area of 20000 sq. mtrs. or more. The said order shall be applicable to all construction activities in the city of Patna and its adjacent areas where the city is proposed to be expanded and the company is expecting that the matter will be resolved soon by the State Govt.

Usha Martin: The Central Bureau of Investigation has carried out searches at three locations in connection with a case of alleged cheating against mining firm Usha Martin with regards to lease for an iron ore to it in Jharkhand in 2005 as per media reports. The development is negative for the stock.

ICRA expects two wheeler industry to grow 10-12% in FY2017 led by improved rural sentiments due to a better monsoon and government employees pay hikes. The two wheeler industry has reported a robust 17% growth in April to August 2016 and we have built in 15% growth for the industry in our estimates.

NIIT, acquired the business of Bangalore-based start-up Perceptron Learning Solutions Pvt Ltd. This acquisition aims to bring together complementary technology platforms and capabilities of NIIT and Perceptron, enabling NIIT to further accelerate its Digital Transformation initiatives – StackRoute, digiNxt, and Training.com.

Coal India buy back from 3rd of October to 18th of October; to buy back 1.7% shares at Rs 335 per share – positive  
Coal India’s buyback offer will open on October 3 and remain open till October 18. CIL is looking to buy back 10.90 crore shares (1.72% of total outstanding shares) at Rs 335 (CMP-Rs332) a share totalling Rs 3,650 crore. In this process, 15% shares to be bought back has been reserved for retail shareholders. This buyback will be open to all existing shareholders as on record date of September 9, on a proportionate basis. The buyback funds will be met out of fixed deposits lying with the banks and investments in mutual funds made by the company.

Balaji Telefilms board approves amalgamation of Bolt Media and demerger of the film production undertaking of Balaji Motion Pictures
The Board of Directors of Balaji Telefilms (BTL) approved the composite scheme of arrangement and amalgamation among BTL, Balaji Motion Pictures (BMPL), Bolt Media (Bolt) and their respective shareholders and creditors, for the demerger of the business and the business interests of BMPL in the film production undertaking into BTL and the amalgamation of Bolt with BTL. Post demerger, BMPL will focus on the business of film distribution.

Mphasis declares dividend of Rs20 per share for FY16 (company has Rs145 per share as cash in books)
The company has informed BSE that the Board of Directors of the Company at its meeting held on September 27, 2016, approved the recommendation of a dividend of Rs.20 per Equity Share of Rs. 10/- each for the financial year ended March 31, 2016. The dividend, if declared at the ensuing Annual General Meeting of the Company, will be paid within 30 days of the Annual General Meeting.

Lanco Infratech going thru a major restructure of its power assets to divest stake to strategic investor  
Lanco Infratech is close to completing a major restructure of its power assets. The process is likely to be completed by November-December this year. The restructured entity will bring together the diversified infrastructure company’s several power assets under one umbrella, so that Lanco can then divest a stake to a strategic investor, with which it is at advanced stage of parleys. The restructure and divestment, which the consortium of lenders is closely monitoring, will help Lanco to bring down the debt of about Rs 7,000 crore at its holding company. The rest of the debt will be at the special purpose vehicle (SPV) and subsidiaries levels.

Mindtree releases next generation of ATLAS managed services Platform
Mindtree announced the availability of the next generation of ATLAS, its output-based managed services framework. Adding to the existing rich functionality, this new generation allows users to have greater transparency and a holistic view into the interworking of their application infrastructure, including performance metrics, optimization and analytics

MORE NEWS

Reliance to double capacity of thermal plants
QIPs all set to make a Rs 12,000-crore comeback
Niti Aayog plans to turn nation into 'blue economy'
Coal India to e-auction 20 million tonnes of coal for all
Sebi chief calls for common BRICS bond market
Ambani, ONGC face 18% cut in natural gas price
Reliance Jio call drops due to its under-preparedness: Airtel 
Spectrum fees leave no money in shareholders' pockets
India jumps 16 spots on Competitiveness Index
Global trade growth to be just 1.7% in 2016: WTO
Sebi, finmin chalk roadmap for commodity market
Coal India's share buyback to commence on October 3
Maha Cabinet clears two Metro corridors worth Rs 25,525 cr
Reliance Life, General Insurance listing in pipeline
TRAI calls meet as incumbents allege norm violation by RJio
MCX hikes transaction charges, waives off membership fee
HUDCO raises Rs. 1,300 cr via private placement of bonds 
SEBI to consult stakeholders on algo rules: Chairman
NSEL-FTIL merger: Next hearing on Nov 24
Cochin Port attracts new business through coastal shipping 
Moody's upgrades Tata Motors' rating on continued strong performance
Reliance Com sees debt falling three-quarters in a year
Sebi nudges mutual fund industry to advertise direct plans
High stakes for India’s $84 billion airwave auction after Vodafone’s cash infusion           
Sensex slips for 3rd day in a row, ends 71 pts down at 28,223.70
GS cuts Q4 crude oil price forecast by $7 on supply glut
744 NGOs under scanner for FCRA violations
Reliance Defence aims to export naval, military equipment
Delta plans regional-jet purchase for up to $2.3 billion: Report
1.6 cr calls still failing everyday between Airtel and us: Rel Jio
‘Anmol effect’ has brought good luck to R-Cap shares
Microsoft using AI to empower people, transform world
MFs hold back cash as equity market sees correction
RPower to double capacity; plans 400mw solar unit
ELSS, mid&small-cap funds outperform indices
3 associate banks okay SBI amalgamation scheme

STOCK IN NEWS

• Lanco Infratech to sell 1,200-mw Anpara power project after restructure nod
• Lupin, Torrent zero in on Bayer's biz
• Coal India's share buyback to commence on October 3
• Indonesia's Go-Jek acquires Bengaluru startup Pianta for talent
• Trai calls telcos' meet to discuss allegations against Jio
• ONGC board vertically split over compensation
• M&M to buy European 2-wheeler subsidiary
• Steel firms gear up for another hike in prices
• Tata Motors Finance to transfer business to Tata Motors subsidiary
• Bayer sets up technology lab at Vapi for euro 2 million
• Accomplished virtual merger of Reliance Communications, Jio: Anil Ambani
• Multiplex screens to cross 3000 by 2019: ICRA
• NIIT Ltd acquires Bengaluru-based ed-tech startup Perceptron
• Will try to trim RCom debt by 75% in 12 mths: Anil Ambani
• Endurance technologies Ltd- issue opens on Wednesday October 5 closed on Friday October 7.price band 467- 472. Minimum bid 30 shares . Minimum application amt rs 14160.

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