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Thursday, 27 October 2016

27 October 2016 - Views & News

 MARKET VIEW

 Markets are likely to open weak. If the Nifty breaks and sustains below 8595, then a move toward 8507 (swing low) is likely. On the upside, 8658 – 8700 will act as a strong resistance. The Index continues to make lower top, lower bottom - indicating downtrend in the short term.

Nifty Spot Levels

Support 8595 – 8555 – 8507
Resistance 8656 – 8700 - 8737

 Market Update

Sgx Nifty -3 pts ‎Dow +30.06 pts ,Nsdq -33.13 , S&P -3.73 pts‎, Bovespa -40 pts  , Ftse -59 pts , Dax -47 pts  , Cac -6 pts , Nikkei  -11 pts  now, Crude @ $49.24 brl (-0.81), Brent @ $49.98 brl (-0.67) , Gold @ $1266.60 (+0.00), Silver @ $17.62 (-0.01), Euro @ $1.0909, JPY @ $104.5900, INR @ $66.8325

GLOBAL MARKET UPDATE

• Apple's results weighed on US stock prices on Wednesday after the technology giant posted its first annual revenue decline since 2001, while oil and gold prices slipped.
• Oil prices bounced off session lows for a time after the U.S. government reported a surprise drawdown in crude inventories, but oil ended lower on growing doubts that OPEC would cut production enough to drain a global oversupply.
• The Dow Jones industrial average rose 30.06 points, or 0.17 percent, to 18,199.33

Today's Corporate Action 27th  Ex Date

ASMTEC Interim Dividend - Rs. - 2.5000
BALFC Interim Dividend - Rs. - 0.5000
ECLERX Buy Back of Shares
HCLTECH Interim Dividend - Rs. - 6.0000
SUNILHITEC Stock  Split From Rs.10/- to Rs.1/-

 Key Results Today:

 ABB, Bajaj Finance, Bajaj Finserve, Dalmia Sugar, Dishman Pharma, Emami, Escorts, Essel Propack, FSL, Force Motors, Glaxo Smithkline, Glenmark, HCC, IFBInds, Infoedge, Inox leisure, Jubilant Life, Kewal Kiran, Kaya, Maruti, MRF, PVR, Tata Elxsi, TechM, Torrent Power, TVS Motor, United Spirits, VRL, Wonderla

TOP NEWS

ALERT: Tata Group: Cyrus Mistry hints at huge potential impairments of close to $18 billion for Tata group – Sentimentally negative for Tata Steel, Tata Motors, Tata Power and other debt laden units in telecomm services business
Erstwhile Tata group Chairman, Mr Cyrus Mistry in its letter to the board post his exit, has indicated at potential USD 10 bn impairment for Steel busniness and overall $18 bn potential impairments for the group, Negative read thru for Tata Steel and sentimentally negative for other Tata group stocks.

Sun Pharma announces US launch of Authorized Generics for Benicar , Benicar HCT , Azor and Tribenzor. All four product put together had recorded sales of US$ 2.5 bn for twelve months ending August 2016. In another development, Sun Pharma to acquire Ocular Technologies, which is developing a product named Seciera. This deal will enhance Specialty Ophthalmic Pipeline of Sun. Seciera is currently in a Phase-3 confirmatory clinical trial for the treatment of Dry Eye Disease, an inflammatory ocular disease – Positive for Sun Pharma

Dr Reddy's Laboratories has entered into a collaboration with Gland Pharma to market and distribute a diverse portfolio of eight injectable ANDAs in the US market –Positive for Dr Reddy; read thru
The portfolio is a mix of filed ANDAs and pending approval by the USFDA and applications that will be filed imminently, and comprises of generic injectables administered in hospitals and clinics in America. Dr Reddy's is developing its injectable business in the US and recently launched Paricalcitol injection.

Fertilisers: The government is planning to implement the  direct benefit transfer (DBT) scheme in the fertilizer sector to provide Rs 75,000 crore annual subsidy to farmers. This is post successful implementation of the pilot program in 16 districts. Further the media reports the government plans to compile all data in the fertilizer sector by next Kharif season and prepare plans for implementing the DBT in fertilizer sector, especially urea subsidy. Positive for Fertilizer sector - players like Chambal Fertilizers, Coromandel International, GNFC, Zuari among others.

STRONG RESULT

Hero Motocorp has reported a strong set of numbers for Q2FY17 with the top line growth of 14.5% YoY to Rs 7,796 crore. OPM’s expanded 150 BPS YoY to 17.6% driven by raw material savings and operating leverage while the PAT is up 28% YoY to RS 1,004 crore. The numbers came in ahead of estimates.

Thomas Cook India (TCI) total revenues grew by 57%yoy to Rs2092.2crore driven by 125%yoy growth to Rs959crore in travel and related services segment, while Human resource and vacation ownership segment revenues grew by above 25% each during the quarter. TCI’s consolidated OPM has improved by 130BPS to 3.3% (but lower 220BPS sequentially) on account of higher contribution of low margin businesses to overall revenues during the quarter. The operating profit grew by 160.1%yoy to Rs68.4crore and the reported PAT stood at Rs20.0crore (as against reported loss of Rs6.8crore in Q2FY2016).

 OTHER NEWS

Sun Pharma to acquire Ocular Technologies, which is developing a product named Seciera. This deal will enhance Specialty Ophthalmic Pipeline of Sun. Seciera is currently in a Phase-3 confirmatory clinical trial for the treatment of Dry Eye Disease, an inflammatory ocular disease
Sun will acquire Ocular Technologies, Sarl (OTS), a portfolio company of Auven Therapeutics (Auven), an international private equity company focused on accelerated development of breakthrough therapeutic drugs. OTS owns exclusive, worldwide rights to Seciera™ (cyclosporine A, 0.09% ophthalmic solution). Sun Pharma will pay Auven US$ 40 million upfront, plus contingent development milestones and sales milestones as well as tiered royalty on sales of Seciera™ as consideration for this acquisition.  The transaction is subject to approval of the US Federal Trade Commission and other closing conditions, and is expected to be completed by end of 2016.

Hero Motocorp to invest Rs 205 crore for 26-30% stake in electric vehicle company Ather Energy Pvt Ltd
Hero Motocorp’s board has approved an investment of up to Rs 205 crore, in one or more tranches, for approximately 26-30% stake Bangalore based Ather Energy Private Limited. Ather is technology start-up engaged in the business of designing and manufacturing smart Electric Vehicles (EV) and associated charging infrastructure. Hero MotoCorp intends to enhance its participation in the EV space by pursuing its internal EV program in addition to partnering with Ather

Gulf Oil Lubricants, Bajaj Auto tie-up for lubricants; positive read thru
Gulf Oil Lubricants India Limited (GOLIL) has entered into a strategic Original Equipment Manufacturer tie-up with Bajaj Auto Limited to manufacture and supply lubricants. Under this tie-up, Gulf Oil will manufacture Bajaj Genuine Oil and distribute these lubricants in Bajaj Auto’s dealer network as well as tap into the bazaar market through Gulf’s dealer network and in rural areas. These lubricants are available in two variants, 10W-30 (for bikes up to 100 cc) and 20W-50 (for bikes above 100 cc).

MORE NEWS

Bourses seek clarification from Tatas on Mistry letter 
Iran gives ultimatum to OVL on gas field development
Tatas staring at $18 bn in writedowns: Cyrus Mistry 
India's goods losing Chinese market: Report
Cabinet may consider advancing Budget to February 1 today
Resolve core issues, not just financials: Industry
Airtel readying 4G bundled offers to take on RJio
I-T dept uncovers tax evasion of Rs 38,000 cr
Hero drives to a record profit of Rs 1,004 cr
Tata Steel UK's speciality steel business sale put on hold
Cabinet to take up divestment proposals today
Over Rs 37,000 cr LIC assets at stake as titans clash in Tata
Govt agencies procure 34,546 tonnes of kharif pulses till October 25
LIC buys over 50% of NBCC shares, invests Rs 1,200 cr
ITC profit jumps 10% in Q2
My removal is unparalleled in corporate history: Mistry
Oil price declines weigh on European markets
Dabur consolidated profitup 5% in Q2 on flat revenues
India, Iran move closer to conclude gas field deal
Navneet acquires Britannica India’s curriculum division
Signs of stabilization emerge at Dr Reddy’s Laboratories
PNB Housing Finance IPO subscribed 57.7% on Day 2
Regulator prescribes relaxed norms for price-capped drugs
Tata Sons dividend payout steady for last decade
RBI urges public to check R500, Rs1000 currency notes carefully
Syndicate Bank Q2 net profit falls 75.2% on bad loans
Sensex ends 255 points down, Nifty settles below 8,620;
India, New Zealand agree to amend tax treaty, boost trade
RBI probably cannot bring down inflation to 4% sustainably
GST Council sets 14% revenue growth as uniform, secular growth rate for all States: Arun Jaitley
Government mulls doing away with 'wireless operating licence'
Mahindra aims to double electric car sales in FY17
Airtel starts overseas roaming scheme with free incoming calls
Sebi orders attachment of bank, demat a/c of Arise Bhoomi
India ranks 13th in protection of minority investors
India is a very important market for Watson: IBM

STOCK IN NEWS

1. Jio entry queers pitch for Airtel data growth
2. Riding on record volumes and favourable raw material prices, Hero MotoCorp on Wednesday reported its best ever quarterly profit of Rs 1,004 crore in the July-September  period, a 28 per cent jump over last year.
3. Tata Steel UK's speciality steel business sale put on hold
4. Ratan Tata's comeback seen as a positive by UK workers
5. ONGC Videsh Farzad B gas discovery: India-Iran gas deal delayed again
6. Tata Steel, JSW to drive coking coal import to a record 46 million tonnes
7. Vodafone fined £4.6 mn for failing UK customers
8. After posting an operating profit of Rs 105 crore, Air India expected to soar higher

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