}

Thursday, 24 November 2016

24 November 2016 - Views & News

MARKET INSIGHT

Markets are expected open weak amid continuous selling pressure from FIIs at higher levels. Today being expiry market may remain volatile during the day. In downside market will watch 7911 as crucial support for Nifty and 8175 – 8257 as resistance zone.
Nifty Spot Levels
Support 7974 – 7916 – 7890
Resistance 8060 – 8128 - 8210

 Market Update

Sgx Nifty -14 pts ‎Dow +59.31 pts ,Nsdq -5.67 pts , S&P +1.78 pts‎, Bovespa +31 pts , Ftse -2 pts , Dax -51 pts  , Cac -19 pts , Nikkei  +164 pts now , Crude @ $48.04 brl (+0.08 ), Brent @ $48.95 brl (-0.17) , Gold @ $1186.40 (-2.90), Silver @ $16.39 (-0.09), Euro @ $1.0543, JPY @ $112.6500, INR @ $68.5650

GLOBAL MARKET UPDATE:

• The Dow and the S&P 500 eked out record high closes on Wednesday ahead of the Thanksgiving holiday, helped by gains in industrial stocks, though losses in technology shares limited the advance and weighed on the Nasdaq.
• Industrial stocks also were given a boost by a report that showed a strong jump in orders for durable goods in October due to demand for machinery and other equipment.
• Expectations among investors remained high that the Fed will raise rates in December.
• The Dow Jones industrial average rose 59.31 points, or 0.31 percent, to end at 19,083.18.

Today's Corporate Action 24th Nov  Ex Date

ASTRAL Interim Dividend - Rs. - 0.2000
AUROPHARMA Interim Dividend - Rs. - 1.2500
KUSHAL Interim Dividend - Rs. - 0.6000
NAVNETEDUL Buy Back of Shares
PGHH Dividend - Rs. - 36.0000
PRECWIRE Interim Dividend - Rs. - 1.2500
SANDUMA Interim Dividend - Rs. - 2.0000VIDHIDYE Interim Dividend - Rs. - 0.2000

Today's Key Result 24th Nov

Abfrl,Advance Micro,Escorts fin,Jindal poly,Manpasand Brew,Opto Circiut,Suven Life

TOP NEWS

Zee Entertainment (ZEEL) acquires the general entertainment TV channels (BIG Magic and BIG Ganga) – strengthen ZEEL presence in comedy genre and regional markets (Bihar, Jharkhand and Purvanchal) long term positive
ZEEL has acquired the general entertainment broadcasting business of Reliance Big Broadcasting, Big Magic & Azalia. The TV Broadcasting business of Reliance Group Entities currently comprises two operational general entertainment channels (BIG Magic and BIG Ganga) and 4 other TV licences. BIG Magic is a Comedy channel catering to Hindi Speaking Markets. BIG Ganga is a leading Bhojpuri entertainment channel catering to audiences in Bihar, Jharkhand and Purvanchal.
Deal structure: As a part of the deal, ZEEL will absorb all the debts of acquired entities i.e. RBBL, Azalia and Big Magic to the tune of Rs294.5 crore and issue preference share (6% coupan rate) to the tune of Rs3.9 crore redeemable in three years.  The transaction is expected to close by H2 CY2017.
View: The acquisition will strengthen ZEEL GEC portfolio in comedy genre and also expand its regional portfolio. Also, given the total accumulated loss and CenVAT credit of Rs650crore and Rs60 crore respectively, will  lower the tax incidence. Will get more clarity from the management post our interaction. We maintain our buy rating on the stock.  

Oil India has announced to consider issue of bonus shares on 28-November-2016 – Positive

SBI cuts bulk deposit rate by 120 bps to 190 bps from immediate effect – Positive signals reduction in borrowing cost and better transmission of lower interest rates; sentimentally positive for all banks

Sun in Focus: Sun Pharma’s subsidiary Taro has announced $250 mn (~ Rs 1675 crores) share repurchase  through open market purchases– Positive for Sun; This authorization follows the successful completion of the previous $250 million share repurchase program in August 2016.

Cadila recalls 20,000 bottles of anti-depressant in US – Sentimentally negative for Cadila

 FUND RAISING
 UltraTech Cement proposes To Issue NCDs Worth Rs400 Crore


Media Alert: As per media reports, Sun Pharma’s Mohali plant gets 483 observation form reporting 7 observations. Mohali plant was inspected by the USFDA between 7-16th November 2016. 4 observations are related to laboratory practices; 2 are related to Quality systems and 1 is related to production system of plant. Mohali plant has been under import alert since September 2013, so there will be no impact on fundamentals of the company - Sentimentally negative for sun pharma, however Halol plant inspection and its outcome will be the key monitorable to watch out for. We await for clarity from management on Mohali plant inspection………(9:30 am)

 Media reports: Indian Oil plans to expand Nagapattinam refinery to 15mmt in phases from 1mmt currently at planned capex of USD5.5billion (Rs37,400 crore)………...(8:55 am)
As per media reports, IOCL plans to expand capacity of Nagapattinam refinery (owned by Chennai Petroleum Corporation Limited, which is subsidiary of IOCL) in Chennai to 300000bpd (15mmt) in phases from current capacity of 20,000bpd (1mmt). The first phase would aim at increasing capacity to 120,000bpd (6mmt) and then to 180,000bpd (9mmt) and then to 300,000bpd (15mmt) in the second phase. The company has planned capex of USD5.5billion (Rs37,400 crore) but there is no detail about the timeline of the planned capex.

OTHER NEWS

Zee Media foray into the Radio business, with acquisition of 49% stake in 92.7 BIG FM, long term positive  
Zee Media (ZMCL) approved acquisition of 49% stake in 92.7 BIG FM, the radio broadcasting business of Reliance Broadcast Network Limited (RBNL). RBNL runs the largest network of FM radio channels in India – 45 operational licenses (issued under Phase II and migrated to Phase III) and 14 new licenses (issued under Phase III). The FM channels reaches to 45 cities, 1200 towns and over 200 million people. The transaction is expected to close in the first half of CY2017. ZMCL and Reliance Land Private Limited (“RLPL”) will have a call and put option respectively for balance 51% after expiry of lock-in period from April 1st 2018 to April 1st 2020 (expected). The total deal consideration for the acquisition is Rs1592 crore including the call  option for another  51% stake in VEPL and AMSPL.

Infosys invests in Stellaris Venture Partners
Infosys announced that it has signed a definitive agreement to a Limited Partner investment of INR 31.6 crores from its Innovation Fund in Stellaris Venture Partners. This investment is towards the first close of Stellaris’ fund. Stellaris has built a robust network of successful entrepreneurs and advisors to source, evaluate and mentor the best Indian startups. The investment is expected to complete by December 15, 2016.

Rallis India to acquire additional 26.37% stake in its subsidiary Zero Waste Agro Organics making it a wholly owned subsidiary:
Rallis India has announced to buy an additional 26.37% stake in its arm Zero Waste Agro-Organics for Rs 19.49 crore. Post acquisition, Rallis India's stake will increase to 100% in the subsidiary company. Zero waste Agro Organic manufactures organic compost which is used as input by Rallis.

The Cotton Advisory Board expects the Cotton Production in India for the year 2016-17 to be at 351 lakh bales, higher than the Governments first estimates of 321.2 lakh bales and up 4% from 338 lakh bales produced in 2015-16.

Hero MotoCorp stated that footfalls across its showrooms are improving and have returned to 85% of normal levels with the government taking a slew of measures to improve cash flow in the market post demonetization. In the initial days, the footfalls had fallen drastically to about 25-30% of the normal footfalls and now are seem to be improving.

Mahindra readies break even plan for Peugeot scooters; positive read thru
After restructuring its domestic two-wheeler business, Mahindra & Mahindra has readied a turnaround plan that will help break even the operations of Peugeot Scooters, a company it acquired in 2014, over the next three years. Much like Mahindra Two Wheelers, Peugeot Scooters too will shift its focus to bigger 300cc scooters from 50cc ones, which was its core earlier. The company feels its new strategy to focus more on low-volume, high margin premium products will give it an edge in new markets that it plans to drive into soon. Mahindra & Mahindra owns 51% stake in Peugeot Motorcycle (a.k.a Peugeot Scooters), while the rest is held by PSA Group of France. With new products planned, Peugeot is aiming to achieve at least a double-digit growth every year. 

Partibha Ind Wins Contract Worth `92.2 Cr From Tamil Nadu Water Supply Board – positive read through for the stock

Transformers & Rectifiers bags Rs96cr order from Adani Group for solar power project – positive read thru

NBCC signed MoUs with Rosinformexport of Russia for smart city projects and Dept for International Development of India and ITI - Positive
NBCC has entered into MoU with Rosinformexport LLC of Russia having expertise in ICT/ digital products. NBCC and Rosinformexport shall collaborate to jointly participate in the Smart City projects in India. Also NBCC signed MoU with DFID, India to collaborate to strengthen, develop and promote smart cities, integrated smart railway stations. Further NBCC signed MoU with ITI to jointly carry out DPR for developing ITI land parcel of 30 acres in Electronic city, Bangalore.    

 MORE NEWS

SBI slashes bulk deposit rates by up to 1.9%
Corus buyout based on long-term strategy: Tata Steel
Sebi tightens promoter-investor profit sharing rules
30 banks join app-based national fund transfer system
Indian Oil plans expansion of refinery co-owned by Iran
All property records of Delhi just a click away
RIL takes 1st step to software biz with GE tie-up
Survey on Modi app: 93% support demonetisation
Currency in circulation dips 20% in week ended Nov 18
GST Council meet postponed by a week
Jan Dhan account deposits swell, mobilise Rs 21,000 cr
Central banker missing in action as India escalates war on cash
Report holds Hitachi responsible for debit card data theft
Euro zone manufacturing PMI 53.7 vs 53.3 forecast
SEBI’s start-up boost: allows 200 investors in a scheme
Sun Pharma to buy Russian firm Biosintez
There was no proposal to sell TCS to IBM: FC Kohli
Govt mulls allowing private cars to share rides
Cipla divests stake in US firm Chase Pharma to Allergan
Goldman forecasts deceleration in GDP growth to 6.8% in FY17
Airtel launches India’s first payments bank
RBI governor Urjit Patel keeps a low profile amid note ban
Reliance Capital to sell stakes in radio and TV businesses to Zee Group
Wockhardt gets USFDA warning for violation of norms at UK facility
Reliance Jio fails to hit subscriber base of Airtel, Idea, Vodafone: analysts
BSE Sensex advances 90 points to end at 26,051.81, NSE Nifty finishes at 8,033.30
Morgan Stanley says US Fed rate hike to have negligible impact on Dalal Street
Corporates' credit profiles to improve on sustained economic growth: Moody's
Cabinet gives its nod to buy Dornier surveillance
Digital automation will divide job market: Prabhu
Idea to expand 4G services to 20 circles this fiscal
New UK visa rules for non-EU nationals come in force today
Govt asks NABARD to disburse Rs 21K crore to farmers
Marginal rise in professional tax collection in 2015-16
Re set for record low as funds flee

STOCK IN NEWS

1. Airtel Payments Bank goes live with pilot project in Rajasthan
2. Splendor regains numero uno slot, overtakes Activa
3. Tata Motors calls EGM to remove Mistry, Wadia
4. Sun Pharma's sharpens emerging market focus with $60 mn acquisition in Russia
5. Zee acquires 2 TV channels of Reliance Group; 49% in FM channels business
6. Rs 1 lakh crore shaved off Tata group cos' m-cap since Mistry's ouster
7. Azim Premji-backed FSS plans to raise $250 million
8. Infosys invests Rs 31.6 crore in early stage VC firm Stellaris
9. Tata Steel to commission Gopalpur plant on Nov 30
10. TVS Motor launches app to provide service facility
11. Cipla sells 16.7% stake in Chase Pharma to Allergancut

No comments: