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Tuesday, 25 October 2016

25 October 2016 - Views & News

  MARKET VIEW

Markets are likely to open flat to positive. Nifty has multiple resistances in the zone of 8700 – 8746. As of now, there is no technical evidence of a trend reversal and hence the bias remains negative for the short term. In the near term, 8652 – 8595 levels will act as support whereas 8746 – 8800 levels will act as a stiff resistance.

Nifty Spot Levels

Support 8652 – 8595 – 8555
Resistance 8746 – 8806 - 8848

GLOBAL MARKET UPDATE

• The S&P 500 hit a two-week high on Monday on the back of strong earnings, while a flurry of acquisitions indicated corporate America continues to see untapped value in the market.
• The Dow Jones industrial average rose 77.32 points, or 0.43 percent, to 18,223.03, the S&P 500 gained 10.17 points, or 0.47 percent, to 2,151.33 and the Nasdaq Composite added 52.43 points, or 1 percent, to 5,309.83.
• Asian shares edged higher on Tuesday while the dollar stood firm as upbeat US earnings boosted Wall Street and factory surveys in the United States and Europe boasted their best readings so far this year.

 RESULTS TODAY

Alembic Pharma, Arvind, Bharat Bijlee, Crompton Greaves Consumer, Deep Industries, Delta Corp, Elantas Beck, Federal Bank, Filatex, Gandhi Special Tubes, Geometric, Granules, Gujarat Sidhee, Hexaware Tech, ICICI Prudential ,IDBI Bank, IDFC Bank, IFB Agro, Indiabulls Ventures, Jyothy Labs, Kokuyo Camlin, KSB Pumps, L&T Finance, MCX, Meghmani Organics, M&M Financial, MPS, Ortel Communication, PI Industries, Royal Orchid Hotel, Shakti Pumps, Shemaroo, Shriram Transport Finance, SBM, Symphony, Tata Investment Corporation, Tinplate Company of India, Visaka Industries, Welspun Corp, Zydus Wellness 

Today's Corporate Action 25th  Ex Date

MITL Stock  Split From Rs.10/- to Rs.1/-
VFL Stock  Split From Rs.10/- to Rs.1/-
VKJINFRA Stock  Split From Rs.10/- to Rs.1/-

TOP NEWS

Alert: In a sudden move, the Tata Group announces unceremonious exit of Cyrus Mistry from Chairmanship of Tata sons – Negative for Tata group companies especially Tata Steel which was on verge taking measures to reduce pain from UK operations; also creates uncertainty related to appointment of new chairman and his vision for the group along with possible boardroom tussle with Shapoorji group in future.

Alert: Supreme court dismisses pharma companies plea against NPPA’s 2014 notification to regulate prices of 108 diabetic and cardiac drugs – Negative for Cipla, Dr Reddy, Sanofi, Pfizer etc  as SC has also has asked NPPA to go ahead and collect the pending recoveries (penalty amount) from the pharma companies.

Alert: Idea Cellular reported weak results with 58.5% dip in bet profits sequentially with margin decline of 1.9% to 30.5% in Q2. The competitive intensity is hurting revenue growth and margins of incumbent operators; except Bharti also to react negatively in anticipation of higher than expected weakness as reflected in Idea results.

Glenmark gets USFDA approval for Nystatin and Triamcinolone Acetonide Cream used to treat fungal skin infections and to reduce the inflammation and itching that occurs with the infection.  – Positive for Glenmark

Textile sector - Government plans to conduct road-shows to promote the country's textiles in non-traditional markets like Russia, South America and select countries in West Asia (especially in the countries which are relatively free from turmoil like Saudi Arabia, Kuwait, Qatar and the United Arab Emirates); textile exports remained flat in2015-16 at $40 billion – positive read through for textile companies (including Trident, Arvind and other export oriented textile companies) 

STRONG RESULT

Navin Flourine has reported a strong set of numbers for Q2FY17. The net revenues are up 21% YoY to Rs 183 Cr on the back of an improved demand scenario. The OPM’s for the quarter expanded 130 BPS YoY driven by benefits of operating leverage. Consequently the EBITDA was up 28% YoY to Rs 41 Cr. The company reported an exceptional gain of Rs 27.33 Cr on account of profit on sale of part stake in group companies (Mafatlal Industries and NOCIL).  Adjusting for this the PAT was up 21% YoY. Further, the company has declared an interim dividend of Rs 11 per share (110%) and a special dividend of Rs 7.5 per share (75%) for FY2016-17. The record date for the payment of dividend is fixed at 7th November 2016. 

Rallis India has reported a strong set of numbers for Q2FY17. The consolidated net sales grew strongly by 22% YoY to Rs 548.8 Cr, while the consolidated OPMs remained flat as raw material prices hardened. However the benefits of operating leverage partly negated the impact of the rising input cost. Consequently the EBITDA was up 18% YoY to Rs 104 cr. A lower interest cost and depreciation expense resulted in the consolidated adjusted PAT rising 32% YoY to Rs 65 cr

WEAK RESULTS

GSFC reported a weak set of numbers for Q2FY17. Total income fell 8.6% YoY to Rs 1,657.95 crore for the quarter. The net profit declined 12% YoY at Rs 125.01 crore for the quarter ended September as against Rs 142.14 crore as of Q2FY15.

Idea Q2FY2017 results: Weak quarter
§  Revenues were down 2.0% qoq and up by 7.2% yoy (lowest ever growth reported by the firm). Voice RPM declined by 3.5% qoq to 33.1 paisa. However, data revenues grew by 2.8% qoq.  
§  EBITDA declined owing to lower revenues and higher SG&A expenses. EBITDA declined 7.6% QoQ to Rs2,840.3 crore and margin contracted by 187 Bps to 30.5% in Q2FY2017 on higher operating expenses.
Net profit declined by 58.5% qoq to Rs 91.4 crore

OTHER NEWS

NBVL to sell its stake in a project that is developing power plant in Lao; the deal is profitable and no more funding requirement in future – positive read thru
Nava Bharat Ventures has entered into a “Sale and Purchase Agreement” with Chaleun Sekong Group Sole Co. to sell its stake (70% equity stake) in NPCL which has been developing the 150 MW Hydel Power Project in Lao PDR, for a consideration of US$ 10.15 million (Rs 68 crore). Important to note that the transaction was profitable and NBVL is not required to invest any more.

Adani Petronet (Dahej) Port Pvt (APPPL), a joint venture of Adani Enterprise and Petronet LNG, has received green clearance for the third phase expansion of its Dahej port in Bharuch district of Gujarat that will entail an investment of about Rs 464.32 crore. The third phase expansion will entail raising cargo-handling capacity to 23 mtpa from 11.7 mtpa. positive read thru for Adani Enterprise and Petronet LNG. 

ONGC is considering issuing bonus shares rather than cash dividends as a method of rewarding shareholders, as per media reports. This will be decided during the up coming board meet on 27th of October 2016. Positive read thru. 

Jyothy Laboratories - CARE upgrades long term rating from CARE AA- to CARE AA – positive read through for the stock

Sun Pharma to have a Board Meeting on 10 Nov 2016 to consider proposal for merger of 4 wholly owned subsidiaries with itself – Neutral for Sun Pharma
Bosch India rolls out new products for the non auto sector- positive read thru
Bosch India unveiled a range of connected and smart solutions for diverse industrial sectors to enhance productivity and operational efficiency. The company has  rolled out power tools for the construction, metal and wood working industry and connected solutions for the agriculture sector. 

MORE NEWS

Ratan Tata writes to PM Narendra Modi
Shapoorji and Pallonji to contest Mistry's ouster
NITI supports multiple rates, cess under GST
Ratan Tata seen as adverse to exiting UK biz
RBI calls stakeholders for meet on security breach
PSUs to take over stressed assets: Arun Jaitley
SC to hear if bank defaulters can be made public
Cyrus Mistry removed as Tata group chief, Ratan Tata returns
CCI okays RPG Life's acquisition of Sun Pharma brands
Now, RBI takes charge of monitoring card data breach
Sebi's proposed algo trading rules could cast shadow over bourse IPOs
Reliance Capital posts Rs 253 cr profit in Jul-Sep
Multiple-rate GST will be disastrous: Chidambaram
ONGC to discuss bonus issue on Thursday
Adani Enterprises standalone net down 63% in Q2
MCX to set up disaster recovery centre in Gift City
Idea Q2 profit slumps 88% to ₹92 cr on rising expenses
Micro-insurance agents can sell crop insurance products: IRDAI 
PNB Housing Fin IPO opens on Tuesday
Investments in agriculture, food sectors hit five-year low: study
Sebi finds some more brokers gained unfair access to NSE systems
GSK seeks US approval for potential $1 billion shingles vaccine
JSW Cement capacity expansion by 2018; partners with Australian firm
Microsoft to increase UK prices of enterprise products, citing falling pound
Sensex ends 102 points up, Nifty settles above 8,700
Adani Power net loss narrows to Rs 114 crore in July-September quarter
Embraer reaches $205.5 mn graft settlement with US, Brazil
Cyrus Mistry to move Bombay High Court against his removal
FIs can buy up to 30% stake in Aditya Birla Nuvo
57 borrowers owe banks whopping Rs 85,000 crore
Sebi issues disclosure norms for listed insurance cos
Rupee takes another tumble, falls 3 paise
FIs mull options to shift operations to home country

STOCK IN NEWS

1. Future Consumer Enterprise name changed to Future Consumer
2. Jyothy Labs - CARE upgrades long term rating from CARE AA- to CARE AA
3. Sun Pharma BM on 10 Nov to consider proposal for merger of 4 subsidiaries with itself
4. Nava Bharat Ventures To sell stake in 2 subsidiaries worth $10.15mn 
5. KEC International BM on 27 Oct to consider NCDs up to Rs275cr 
6. Syndicate Bank issued NCDs worth Rs1000cr
7. Capital First BM on 27 Oct to consider issue of NCDs
8. Bharti Defence attempts to get co. regidter as sick unit fell flat: FE 
9. Emami Group  to invest 8500 cxr in cement arm: BS 
10. CCI gives nod to Fortis, SUN Pharma deal 
11. HCL Tech Appoints C Vijayakumar As CEO 
12. RBI Allows FII Limit In Aditya Birla Nuvo To Be Raised From 24% To 30%

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