Friday, 28 October 2016

28 October 2016 - Views & News


Indian markets are likely to open on a negative note based on the global cues. 8550 level will act as a strong support for the day.

Nifty Spot Levels

Support 8595 – 8550
Resistance 8656 - 8700

Market Update

Sgx Nifty -21 pts ‎Dow -29.65 pts ,Nsdq -34.24 , S&P -6.39 pts‎, Bovespa +423 pts  , Ftse +28 pts , Dax +7 pts  , Cac -1 pts , Nikkei  +91 pts  now, Crude @ $49.70 brl (-0.02), Brent @ $50.47 brl (+0.49) , Gold @ $1270.40 (+0.90), Silver @ $17.63 (-0.01), Euro @ $1.0898, JPY @ $105.2300, INR @ $66.8675


• Strong growth data out of Britain prompted the biggest daily sell-off in government debt for months and pushed yields on the world's benchmark bonds higher on Thursday, as expectations eased for a Bank of England interest rate cut.
• The bond sell-off gained momentum in the United States after upbeat jobless claims data pointed to another robust nonfarm payrolls number next week. 
• The Dow Jones industrial average fell 29.65 points, or 0.16 percent, to 18,169.68.

Today's Corporate Action 28th  Ex Date

GOLDLINE Stock  Split From Rs.10/- to Rs.1/-MINDTREE Interim Dividend - Rs. - 3.0000
Today's Key Result 28th Oct

Bajaj Auto, Bajaj Holdings, Bharat Fin, Carborandum Univ, Century Tex, ColPal, Dish TV, Eicher Motor, GIC Hsg, Grasim, HCL-Infy, IDFC, Inox Wind, JM Fin. Jub Inds, Kansai Nerolac, Marico, Nestle Ind, NTPC,SPARC, TTML, Uniphos, UPL, VEDL


GMR Infrastructure: GMR wins arbitration against Government of Maldives; gets compensation of USD270 million – Positive for the stock

“GMR Male" International Airport Limited (GMIAL), a subsidiary of GMR Infrastructure Limited, announced that it has been awarded compensation of approximately US$ 270 million by the 3 member international arbitral tribunal. The compensation covers the debt, equity invested in the project along with a return of 17% and also termination payments and legal costs. The compensation is net of taxes that GMIAL may be required to pay in the Maldives. The development is positive for GMR Infrastructure.


 Pricol reported strong set of numbers in Q2FY2017. Topline grew 36% yoy to Rs 333 cr driven  by new product launches and increased share of supplies to customers. Operating margins almost doubled from 6% in Q2 FY2016 to 11.8% in Q2FY2017 driven by cost control and productivity improvement measures. Net profit for the quarter grew to Rs 19.6 cr as against Rs 2.8 cr in the corresponding quarter last year

Road development sector: Highways ministry to ask for 57% raise in budgetary allocation – Positive read thru for the sector
The Ministry of road transport and highways will ask for budgetary allocation of Rs91,000 crore for 2017-18, up 57% from the current year’s outlay. The road ministry would also seek permission to allow NHAI to borrow up to Rs59,000 crore from the markets for 2017-18 which is the same in the current fiscal. The development is positive read thru for road development sector including companies like IRB Infrastructure, IL&FS Transportation, Ashoka Buildcon, Sadbhav Engineering, Gayatri Projects, KNR Constructions among others.

Government decides to factor in indexed imported coal prices into new UMPPs; positive for the sector
New ultra mega power projects (UMPPs) based on imported coal may be insulated from uncertainties in fuel costs, with the power ministry deciding to factor in indexed imported coal prices into tariff for such plants. The ministry has agreed to use an index of prices of imported coal from Indonesia, South Africa and other coal exporting countries for calculation of electricity tariff from such plants. The ministry has agreed to provide for the escalation clause in bid rules. This will safeguard companies against unexpected changes in fuel costs that have adversely impacted the existing UMPPs based on imported coal.

Banking Sector: consortium of 19 public sector banks planning to convert their Rs 10,000 crore loans to Air India into equity – positive read through
A consortium of 19 public sector banks are planning to convert their Rs 10,000 crore loans to Air India into equity resulting in ~40% of Air India’s equity to be held by the consortium. The proposal may take up to six months to finalize. The move will help de-stress banks’ loans and will not only help the state-owned airline to rework its outstanding funds with the banks but also help the banks as stakeholders who can participate at the Board level in Air India’s decision making.

Tata Power to buy stranded power assets in India. It is planning to expand capacity by acquiring numerous underutilized plants instead of investing in expensive new facilities.

Indian Hotels (news came during market hours) - The Delhi High Court on Thursday gave the go-ahead to the New Delhi Municipal Council to proceed with the auction of the Tata Group-run Taj Mahal Hotel on Mansingh Road, dismissing aplea of the group arm Indian Hotels Company Limited (IHCL) against a September 5 verdict – negative for the stock
CESC- RPG group may reorganize power business; sentimentally positive for CESC
RPG group is evaluating the possibility of re-organising its power business facilitation consolidation of generation and distribution units. They have six companies namely Haldia Energy, Dhariwal Infrastructure, Crescent Power, Noida Power, Surya Vidyut and CESC engaged into power business. CESC also has both generation and distribution rights in West Bengal, Uttar Pradesh, and distribution franchisee in Rajasthan.  We believe consolidating the power business may be sentimentally positive for CESC.

Tatas approach sovereign funds to buy Mistry's stake
Set for a long legal battle, Mistry hires top lawyers to take on Tata
GMR wins $270 mn in Maldives arbitration case
Cabinet gives in-principle nod for strategic sale of PSUs
'Tata Steel's UK divestment, JV plan on track'
PNB Housing IPO sees 30 times oversubscription
India looks to cut tariff concessions on Chinese goods
MMTC ties up with banks to sell Indian Gold Coin
US charges 61 in India-based call center fraud racket
Maruti clocks record Rs 2,398-crore quarterly profit
India must rapidly urbanise over next 20 years: Arun Jaitley
Cairn India to invest $100 mn in Rajasthan gas fields
TVS Motor to launch BMW-based platform two-wheeler
Govt to shut HMT tractor unit, pay staff pending dues
Sun Pharma to acquire Ocular Technologies 
PSBs weigh proposal to convert Rs. 10,000 cr loans to AI into equity
Service tax dept to auction Mallya’s aircraft next month
Sugar Control Order extended by 6 months
MRF profit tumbles 14% on weak sales
Over 1,300 fresh FPIs register with SEBI in April-Aug
Rural revival raises its head in demand for automobiles
RBI spells out rules for start-ups to raise ECBs
Tata plea to stall auction of Taj Mahal Hotel in New Delhi rejected
United Spirits Q2 profit up 15.8% to Rs82.54 crore
Qualcomm to buy NXP Semiconductors in $47 billion deal
Hero MotoCorp invests Rs205 crore for up to 30% stake in Ather Energy
Sensex ends 255 points down, Nifty settles below 8,620;
Tech Mahindra Q2 net profit drops 17.5% to Rs 643 cr
JSW Steel posts multi-fold jump in Q2 profit at Rs 726 cr
Tata ousted Cyrus Mistry on trust deficit with biggest shareholder
Growth rebound in US masks demand picture that’s not as bright
Tata needs to be lauded for making Nano: Maruti chief
HUL net jumps 11.54% to Rs 1,095.6 crore
Tata group cos lose over Rs 26k cr in m-cap in 3 days
Tata Motors passenger vehicle sales up 10% in Q2
Srei launches platform for renting, selling equipments
Tata Steel responds to BSE, NSE on 18-b dollar ‘write-down’


1. Hero MotoCorp invests Rs 180 crore in smart scooter-maker Ather
2. Crossed 1 mn unit sales during festive period: Hero MotoCorp 
3. Mahindra acquires BSA Company and signs licencing agreement with Jawa
4. BSNL to reduce its workforce by 7% in 2017-18
5. GMR wins int'l arbitration against Maldives, gets $270 mn payout
6. Ericsson bags up to Rs 3,350 crore network deal from Airtel
7. LIC to infuse capital in Central Bank of India 
8. CARE upgrades Suzlon ratings to Investment Grade BBB

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