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Thursday, 29 September 2016

29 September 2016 - Views & News

MARKET VIEW

 Markets expected to open positive post OPEC decision on Oil production cut. Today being expiry in NSE derivatives segment, market may show volatility. 8690 on lower side and 8800 on higher side will be key levels to be watched for the day.

Nifty Spot Levels

Support 8690 – 8642 – 8570
Resistance 8800 – 8848 - 8893

GLOBAL MARKET UPDATE

• Wall Street ended higher on Wednesday after an OPEC agreement to limit crude output fueled a rally in oil and more than offset nervousness about a tight race for the US presidency.
• The energy index had its best day since January, climbing 4.34 percent after OPEC sources said the group reached a deal to cut its oil production for the first time since 2008. Oil prices rallied as much as 6 percent.
• The Dow Jones industrial average rose 0.61 percent to end at 18,339.24 points

TOP NEWS

Media Alert: Strides Shasun's chennai facility was inspected by USFDA in August 2016 (which lasted for 3-4 days) and few observations were reported which were routine & minor in nature – Neutral for Strides Shasun as it will not impact fundamentals or numbers of the company.

Cipla freezes increments of top management to cut costs – Positive for Cipla; it will help improve operating margins of business.
Cipla has decided to trim its ballooning employee cost by freezing increments of 300-400 of its top managers as part of the company’s operational revamp. Cipla’s employee cost has trebled in the past four years, mostly because of several senior management hiring. For the first quarter ending FY17, Cipla’s employee cost rose by 11% to Rs 687 crore on a YoY basis. Cipla also reduced its top management team to 6 from 20. Company has also changed salary structure from fixed pay to performance based variable pay, which will be dependent on percentage of targets achieved.
Cabinet gave its nod to a consortium of IOC, Oil India and BPCL buying stakes in two Russian oilfields for a total of USD 3.14 billion.

OPEC agreed to cut oil production for the first time in eight years - crude oil price should be firm; positive for ONGC/OIL and L&T.    
OPEC agreed to cut oil production for the first time in eight years, a surprising move. They agreed to limit production to a range of 32.5 to 33 million barrels a day. We believe the crude oil prices should remain firm here onwards. This will be positive for oil exploration companies like ONGC/OIL.Also positive for L&T as order inflow prospects from middle east will improve again.

JP Associates: The company at its annual AGM approved converting loans, debentures or other borrowings of the company into equity shares in the company. The move will help pave the way for lenders to step in and help in financial restructuring of the company. The development is positive read thru for the stock.

Liberty bid for two Tata Steel UK units worth nearly 100mn pounds; Liberty was a bidder for Tata Steel UK's major assets earlier; positive for Tata Steel

OTHER NEWS

Eros International ties up with UAE’s Phars Film for co-production & distribution of Malayalam movies
Eros International announced its association with UAE’s largest film distribution and exhibition network (Hollywood & Bollywood), Phars Film. The partnership will entail the two companies jointly co-producing Malayalam films along with exploration of theatrical rights between the two entities.

Bank of India to cut base rate by 5 bps to 9.65% on Friday

ICICI Bank: ICICI Prudential Life insurance to list on the exchange today

Max India has received shareholders' approval for merger of Max Life Insurance Company with Max Financial Services and also for the demerger of insurance business for transfer to HDFC Standard Life Insurance Company.

Tata Global Beverages - Tata Starbucks Revenue Up 39% In 2015-16 At Rs 235 Crore; some of the mature cafes are profitable – positive read through for Tata Global Beverages

Delta Corp may buy rummy website ace2three.com for $80-100 million (Rs530-660crore) – positive read through for the stock
Delta Corp is in exploratory talks to buy out a rummy website ace2three.com for approximately $80-100 mn. Delta Corp on its part is keen to structure the buyout via conversion instruments, whereas ace2three.com might insist on a cash component. The deal talks between both sides are still at an exploratory stage, but sources say both companies would like to announce the proposed transaction by mid October. Last fiscal, ace2three.com EBITDA stood at around Rs 100 crore.

Shree Cement: The company will be increasing its capacity from the current 27 million tones to 40 million tones in the next 4-5 years and keep the growth pace as per a media interview by Benu Gopal Bangur, chairman of Shree Cement. The development is positive read thru for Shree Cement.

Cabinet clears stake acquisition in Rosneft assets by BPCL, IOC & OIL worth $3.14bn
The Cabinet today gave its nod to a consortium of IOC, Oil India and BPCL buying stakes in two Russian oilfields for a total of USD 3.14 billion. Indian Oil Corp, Oil India and a unit of Bharat Petroleum Corporation (BPCL) will buy 29.9 per cent stake in Taas-Yuryakh oilfield in East Siberia for USD 1.12 billion and another 23.9 per cent in Vankor oilfield for USD 2.02 billion.

Pidilite Industries ties up Up with WD-40 company for multi-purpose spray in India

MORE NEWS

COAI's 'back door' remark contempt of court: Jio
Alternatives to bank credit de-link GDP: RBI Dy Gov
Sebi allows options trading on commodity exchanges 
Securitisation volumes set to rise this year: Crisil
Cabinet decides to ratify Paris agreement
NSE extends concessional transaction fee in equity derivatives
Wal-Mart in talks to invest $1 billion in Flipkart: Report
Anheuser-Busch to pay US SEC $6 mn to settle India bribery charges
Sebi tightens warehousing norms for commexes
17 sick PSUs set to be closed down
M&M to buy European 2-wheeler subsidiary
ICICI Pru Life to debut in stock market on Sept 29
Jim Yong Kim re-appointed as World Bank President for 2nd five-year term
Cipla to focus more on US; next-gen steps up
RCX to approach SEBI seeking easier norms for regional comexes
Cabinet approves ratification of climate change deal 
‘Banks may have to increase provisioning for bad loans’ 
Sebi nudges mutual fund industry to advertise direct plans
Federal Reserve may change stress tests, capital buffers for US banks: Janet Yellen
Liberty bids nearly £100 million for two Tata Steel UK units: report
Govt to sell 7% stake in Hindustan Copper today
Reliance Jio preferred as secondary SIM, finds mobile user survey           
Sensex snaps 3-day losing streak, ends 69 points up
Srei Infrastructure Finance raises Rs 350 crore via NCDs
India remains a promising market for IPOs: EY
Anand Mahindra warns of 'demographic disaster' sans jobs
IMF chief sees lower US growth, calls trade barriers 'malpractice'
Tax drive offers no absolution, to yield little cash for govt
Govt nod for Rs 2,256 cr project for GST integration
Cabinet clears IOC-OIL-BPCL's Russian stake buy
RBS to pay $1.1b to resolve its US mortgage claims
Reliance Cap hints at listing of more subsidiaries
ONGC board divided on shah panel suggestions

STOCK IN NEWS

1. Walmart in talks with Flipkart for $1-billion investment
2. Balaji Telefilms to consolidate content production business
3. Tech Mahindra rejigs telecom strategy
4. Govt to divest 7% in Hindustan Copper today
5. Liberty House revives Tatas' Scotland's steel factory
6. Britannia eyes wheat import after duty cut
7. JP Associates receives shareholders nod to convert debt into equity
8. DoCoMo files response to Tata's objection to arbitration award
9. Stake sale in DLF arm to be a close contest between GIC & Blackstone
10. Airtel cuts international roaming data charges by 99%

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