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Monday, 28 November 2016

28 November 2016 - Views & News

MARKET INSIGHT

Indian markets are likely to open on weak note based on global market. The fear of rate hike by US Fed will keep market volatile. The Reserve Bank of India (RBI)’s announcement on additional cash reserve ratio (CRR) too may influence the market sentiment. The support for Nifty is at 8050. 

Nifty Spot Levels

Support 8055 – 8026 – 7976
Resistance 8128 – 8151 - 8210


Result today


Abbot India, Cox & Kings, HFCL, Hind Comps, MGL, Oil, Sadbhav, Timken, Triveni Eng, Valech Eng

GLOBAL MARKET UPDATE:

• Wall Street's three main indexes closed at record highs on Friday, helped by gains in consumer staples and technology stocks as investors hunted for bargains in a post-election rally.
• The three major indexes closed higher for the third week in a row, extending their rally since the US election. The S&P 500 marked its seventh record close since November 8.
• The Dow Jones Industrial Average rose 68.96 points, or 0.36 percent, to 19,152.14.

TOP NEWS

ALERT: RBI announces measures to suck excess liquidity from banking system due to demonitization by hiking CRR (cash reserve ratio; money kept by banks with RBI as percentage of its net deposits) by 100% for net deposits banks got in period from Sep 16 to Nov 11, 2016 – IMPACT: Will suck out Rs3.1 trillion out from banking system so the initial reaction likely to be negative for banks (CRR deposits with RBI do not earn any interest) & NBFCs (wholesale rates could go up); however important step to avoid structural issues and risk of banks. Left with little choice, banks were investing more in govt securities despite plummeting bond yields which raises risk of huge losses on treasury book in case of any event driven spike up in yields at later stage)

ALERT: As per the media reports, Cipla is in talks to sell its animal healthcare unit. Cipla’s move to sell its veterinary business comes in the backdrop of its overall plan to rationalize its markets and portfolio and exit non-core, low-profit businesses – Long term positive for Cipla.

Strides Shasun Pharma enters into an agreement with Moberg pharma, Sweden to acquire ‘ Pediacare’ brand for total consideration of $5 mn plus inventory value at closing. Pediacare is an established paediatric cough, cold and allergy brand with sales of ~ $6 million – Long term positive for Strides Shasun.

Aurobindo: Arrow Generiques, French subsidiary of Aurobindo Pharma, to acquire select assets in France from Teva; amount undisclosed – long term positive for Aurobindo as it will increase its branded product portfolio offering for French market.
Arrow Generiques will acquire the right, title and interest in products Calcium and Calcium Vitamin D3, including the use of the OROCAL trademark. The transaction is subject to the approval of the European Commission. Following receipt of clearances from European authorities, Arrow Generiques will integrate these products with its existing commercial operations in France, and focus on maximizing their potential. Arrow Generiques is a pharmaceutical company with focus on selling generics on the retail and hospital markets in France since 2002.

Honda Motorcycles and Scooters India (HMSI), the country's second largest two wheeler company (having 26% market share) has indicated it will take production cuts in wake of the falling demand post demonetisation. The company has not commented on the quantum of production cut. Other 2W players (Heromotocorp, Bajaj Auto and TVS) have not indicated any such move. 2W demand is most likely to be impacted as about 60-65% of vehicles are purchased on cash. Negative read thru for two wheeler companies but 2W stocks have already corrected by about 10% post the demonetization move.

ARSS Infra, bags order worth Rs51.4 crore in favour of JV by North Central Railway

Dilip Buildcon,  gets letter of award for  2 projects, NH-18 in AP & NH-66 in Maharashtra 
OTHER NEWS 

Manpasand Beverages to set up 4 new plants in next 18 months – positive from long term perspective (company concentrates more on small packs in the range of Rs. 5-10 thus impact would be lower in comparison to other beverage companies)
Manpasand Beverages aims to double its manufacturing capacity and will be setting up four new plants in the country in the next 18 months, out of which one factory will be situated in South where the company has a minimum presence. Currently, the production capacity of Manpasand Beverages is around 1.7 lakh cases per day and the company is planning to double the same in a period of 12 to 18 months. Manpasand Beverages currently operates five manufacturing plants -- two in Vadodara and one each in Varanasi, Ambala and Dehradun.

Maruti Suzuki has launched limited edition version of Wagon R priced between Rs 4.4 lakh and Rs 5.37 lakh (ex-showroom Delhi).The variant (Wagon R Felicity) comes with various features including reverse parking sensors with display and voice guidance, body graphics and rear spoiler. Positive

Ashok Leyland completes acquisition of Nissan’s stake in the three loss making LCV joint ventures
Ashok Leyland has completed the acquisition of Nissan Motor Co.'s stake in three LCV joint-ventures viz Ashok Leyland Nissan-Vehicles Ltd, Nissan-Ashok Leyland Powertrain Ltd and Nissan-Ashok Leyland Technologies Ltd. With all necessary statutory approvals in place the acquisition was completed for a consolidated consideration of Rs 3 paid by Ashok Leyland for all the shares of the three JVs. Ashok Leyland will continue to build, under a licensing agreement, the Dost, Mitr, and Partner LCVs, which are based on Nissan's design, engineering and technology. Servicing and parts availability for customers will be ensured by a technical support arrangement. In addition, the two companies have agreed to continue a deal to procure made-in-India parts for Nissan.

Bharti Airtel, completes the acquisition of the 4.2% stake of Econet Wireless Ltd., in Airtel Nigeria through its wholly-owned subsidiary, Bharti Airtel International (Netherlands) BV. The company has now increased its stake in Airtel Nigeria to 83.2%.

Tata Chemicals gets CCI approval for the sale of Urea and customized fertilizer business to Yara
The Competition Commission of India has approved the acquisition of Tata Chemicals Urea and customized fertilizers business by Yara Fertilizers.   As per the deal announced in August 2016, Tata Chemicals will sell its urea plant in Babrala, Uttar Pradesh, which has an annual capacity of about 1.2 million tonnes for an estimated Rs 2,670 crore.  

L&T Hydrocarbon Engineering to execute deep water project for ONGC; the project was scheduled to commence production by mid-2017 and achieve full capacity of two billion cubic metres of gas per year by end 2017. Positive for L&T

 MORE NEWS

TGBL, Tata Steel pass resolutions to stop Mistry
Watsa close to buying stake in Catholic Syrian Bank
RBI lets banks to park old currency at district chests
Rural economy hit hard as informal lending reduces
Airtel Payments Bank opens 10,000+ A/Cs in 2 days
I-T dept asks IDS declarants to pay tax by Nov 30
RIL seeks access to India's longest LPG pipeline by IOC
E-commerce firms to deduct TCS under GST
India Inc more vulnerable to slowdown than in 2008
Bond yields to rise on incremental CRR
RBI committed to easing pain of honest citizens: Urjit Patel
Cash crisis: Traders' body seek PM Modi's, RBI intervention
Tata Sons reaches out to more shareholders as EGMs approach
SBI records of loans to Adani firms cannot be disclosed: CIC
CPPIB strikes largest deal in logistics space
Notifications will be issued for GST rates: Revenue secretary
Airtel acquires Econet’s stake in Nigerian arm
Economists’ criticism of demonetisation not fact—based: Debroy
Wind sector gasps, seeks breather through extension of sops 
Oil regulator opposes govt’s move to give GAIL the run of Eastern gas grid 
NTPC-BHEL power gear unit finally up, but downsized
Demonetisation move to scorch dabba trading’
Commerce ministry favours ‘restriction free' gold imports
NSE to auction investment limits for Rs22,171 crore govt bonds
Demonetisation to have gains in long run: Chandrababu Naidu
Service tax department to auction Vijay Mallya plane on 28-29 November
Sebi approves Reliance Infra’s InvIT application
RBI takes surprise action to soak up liquidity
Defer Place of Effective Management, remove tax barrier for startups: Nasscom to finance ministry
Jobs will be safe in MSME sector, govt assures workers
95 per cent black money intact in non-currency form: CPI(M) leader Brinda Karat
Going cashless: Rising currency-GDP ratio key impediment
Switch to e-payment at the earliest, Centre tells ULBs
New GST model provides for anti-profiteering measures
Demonetisation among 3 most important economic reforms: Tata
PM's idea of cashless economy unrealistic: Omar
Note ban: ICICI Bank presses into service mobile branches

STOCK IN NEWS

1. Tata Elxsi plans to drive growth through acquisitions
2. Tata Global directors move another resolution to oust Mistry
3. Mobile companies seek 10-yr tax holiday, bat for components makers
4. Airtel Payments Bank opens 10,000+ savings accounts in 2 days
5. RIL seeks access to India's longest LPG pipeline
6. SBI records of loans to Adani firms cannot be disclosed: CIC
7. Mistry, Wadia likely to address shareholders at Tata Steel EGM
8. Demonetisation pulls down jewellery stocks by a fourth
9. IT industry to clock $350 bn revenue before 2025: Nasscom
10. Housing prices unlikely to come down due to note ban: CREDAI
11. Airtel acquires Econet's stake in Nigerian arm
12. SAIL-BSP eyes small mines to meet raw material demand
13. Adani's Carmichael mine in Australia jumps another legal hurdle
14. Tata Motors, Kingfisher owe over Rs 1000 cr each in indirect taxes
15. Tata JLR to create thousands of jobs in UK
16. L&T Hydrocarbon planning stock market listing in 3 years

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