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Wednesday, 30 November 2016

30 November 2016 - Views & News

MARKET INSIGHT

Markets are likely to open on flattish note. The pullback in the Nifty can extend towards 8257 – 8337 (50% & 61.8% retracement level of the previous fall) if the index manages to close above 8200. On the downside 8100 – 8055 will act as support in the near term.

Nifty Spot Levels

Support 8100 – 8066 – 7974
Resistance 8200 – 8257 - 8337

Market Update

Sgx Nifty -1 pts ‎Dow +23.70 pts ,Nsdq +11.11 pts , S&P +2.94 pts , Bovespa -1870 pts , Ftse -27 pts , Dax +37 pts  , Cac +41 pts , Nikkei  +35 pts now , Crude @ $45.37 brl (+0.14 ), Brent @ $46.38 brl (-1.86) , Gold @ $1191.20 (+0.40), Silver @ $16.71 (-0.03), Euro @ $1.0648, JPY @ $112.5100, INR @ $68.6550

GLOBAL MARKET UPDATE:

• US stocks edged higher on Tuesday as an upbeat outlook from UnitedHealth lifted health insurers, though a sharp drop in oil prices weighed on energy shares and limited the advance.
• US stocks had their worst performance in nearly a month on Monday after hitting record highs last week. Also helping to boost sentiment on Tuesday was data that showed the US economy grew more quickly than initially thought in the third quarter for its best performance in two years.
• Oil prices dropped about 4 percent on signs that leading oil exporters were struggling to agree on a deal to cut production ahead of an OPEC meeting on Wednesday.
The Dow Jones industrial average rose 23.7 points, or 0.12 percent, to 19,121.6.

Today's Key Result 30th Nov

Balkrishna Inds,Castex Tech,Gspl,Gvk Power,Man Infra,Net 4 Ind,Punj Llyod,Ratnamani Metal

TOP NEWS

Torrent and Lupin gets USFDA approval for gNuvigil; company shall start promoting the product in US shortly – Positive for Torrent and Lupin; Mylan, Natco are other players who have received approval from the same product (Mylan has already launched it).

Idea Cellular: Axiata looks to sell its 20% stake in Idea Cellular ………(details in other


MACRO WRAP

Government would announce the GDP data for Q2FY17 today (30th Nov 2016)and as per the consensus estimates GDP is likely to expand by 7.5% versus 7.1% in the previous quarter

FUND RAISING

Eros International Media to consider funds raise
The Board of Directors of Eros International will meet on December 02, 2016, to consider and approve the proposal to raise funds through issue and offer of secured / unsecured, redeemable, non convertible Debentures on public / private placement basis, in one or more tranches.

PTC India Financial Services to allot 8.02 crore equity shares to PTC India Limited at a price of Rs38.50 per share (CMP = Rs 38.2)

STRONG RESULT

Triveni Engineering & Industries reported strong Q2FY2017 due to higher realizations
·         Triveni reported three fold  jump in net profit to Rs 68 crore in Q2FY2017 due to higher sugar prices YoY and improved performance of distillery business
·         EBITDA at Rs 122.9 crore vs. Rs 58.1 crore YoY with EBITDAM expanding 500bps to 18.2% in Q2FY2017
·         Total income up 49.7 percent at Rs 675.5 crore versus Rs 451.3 crore (YoY)

OTHER NEWS

Idea Cellular: Axiata looks to sell its 20% stake in Idea Cellular ………(details in other news)
As per media report, Axiata is looking to sell its 20% stake in Idea Cellular as the Malaysian company believes the Indian telecom provider’s valuation will remain subdued for at least the next three years given the likelihood of a pricing onslaught stemming from the entry of Reliance Jio Infocomm.

The Ramco Cements: COMPAT stays penalty order of Rs258.63 crore by CCI – Positive read thru for the stock
The Competition Appellate Tribunal (COMPAT) has stayed the order of Competition Commission of India (CCI) regarding imposing of penalty of Rs258.63 crore with the conditions that 1) the company within one month from 21st Nov 2016 to deposit 10% of the penalty in the registry of the tribunal in the form of fixed deposit for a period of six months duration and 2) the company to pay the balance amount of penalty with interest at 12% per annum from the date of CCI’s order in case the company’s appeal is dismissed.

Hindustan Construction Company: The Board of Directors’ meeting will be held on 2nd Dec 2016 to consider the offer and issue of Equity Shares representing 24.44% of the expanded capital and also Optionally Convertible Debentures (OCDs) on Preferential Basis to be allotted collectively to the individual Lenders, pursuant to implementation of the RBI S4A Scheme as agreed by the Lenders in their Joint Lenders Forum.

Airtel, Brookfield in talks for Bharti Infratel stake sale
As per media report, Brookfield Asset Management has submitted the highest bid for a 51% stake in Bharti Infratel and started talks with the company’s promoters Bharti Airtel. Brookfield’s bid beat consortium which comprises U.S.-based KKR, Blackstone and Canada Pension Plan Investment Board. Bharti Infratel had a market value of about $10 billion and a 51% share will be valued at about $5 billion.

Idea Cellular: Axiata looks to sell its 20% stake in Idea Cellular
As per media report, Axiata is looking to sell its 20% stake in Idea Cellular as the Malaysian company believes the Indian telecom provider’s valuation will remain subdued for at least the next three years given the likelihood of a pricing onslaught stemming from the entry of Reliance Jio Infocomm.

Sarda Energy operations restored at iron ore mine which were suspended on march 7 due to naxal attack – positive read thru

GoI orders private LPG producers to sell LPG only to OMCs (IOCL, BPCL and HPCL)
As per the media reports, GoI has ordered private LPG producers (like Reliance Industries) to supply their entire LPG production to OMCs (IOCL, BPCL and HPCL). The private retailers of LPG would have to source their requirements through imports. We do not see any material impact from this move.

Bajaj Auto to launch “V12”; a 125 cc motorcycle based on the V platform; positive read thru
Bajaj Auto will extend the “V” motorcycle range in India and is planning to launch the new 125cc variant of the V15, christened as the “V12”. V12 will be priced at around Rs 56,000. The motorcycle is expected to be launched officially sometime in early December, 2016.The new V12, similar to the V15, will feature metal from the Indian Navy's first aircraft carrier, INS Vikrant, that served the nation for decades. V12 will enable the company to gain market share in the mid motorcycle (125 cc) segment where it has relatively lower presence.   
 Suzuki Motor Corp gears up for the early 2017 commissioning of the Gujarat Plant’s first phase for supply to Maruti Suzuki.
In order to reduce the waiting periods for the two models – Vitara Brezza and the Baleno, Suzuki Motor Corp (Maruti Suzuki’s parent company) is gearing up for an early 2017 launch of the first phase of the new Gujarat Plant with an initial capacity of 250,000 cars a year. The company expects the capacity to be exhausted in 2 years time frame and hnce has firmed up its plan for a 2nd phase with a capacity of 250,000. With this the total investments in the Gujara plant stands at Rs 5800 cr.  

Government is evaluating to  cut subsidy on Phosphate and Potash (P&K) fertilizers if MRP quoted by the manufacturers  is found unreasonable
Government is probing the cost data of fertilizer companies and plans to restrict or stop subsidy to those firms which have fixed maximum retail price (MRP) of the soil nutrients unreasonably high. if in case any company is found mis using the subsidy mechanism, the government may exclude any grade/grades of fertilisers of a particular company or the fertiliser company itself from the NBS scheme. Further the Government has removed the minimum production criteria for SSP (single Super Phosphate), which is a low cost indigenous substitute for  DAP (Di-ammonium phosphate). This makes the SSP manufactureres eligible for subsidy under the NBS scheme. 

MORE NEWS

Fitch lowers GDP growth forecast to 6.9% from 7.4%
Note ban may hugely benefit home loan seekers 
State-run banks' bad loans over Rs 6 lakh crore
Malaysia's Axiata may hang up on Idea Cellular stake
Dec 30 may remain the last day for old note deposits
Govt to hold auction to identify buyers for 3 SAIL units
'Rs 4,00,000 crore debt risks being written off'
Consumers, exports power US 3rd quarter economic growth
Finmin invites suggestions for Budget 2017-18
200 'high-risk' drug firms come under Indian regulator lens
28% citizens yet to deposit old currency in bank: Survey
Tata Power calls EGM to remove Cyrus Mistry
China agrees to import basmati rice from 14 major Indian mills
Gross NPAs of PSBs jump nearly Rs 80,000 cr in Jul-Sep  
Lok Sabha passes IT Act amendment to tax unexplained deposits
Consumer durable retailers go slow on fresh inventory
Sell domestic LPG only to PSU oil firms: Govt to producers
Lower lending rate key to Make in India campaign: Jindal 
RBI expected to cut rates ‘aggressively’: SBI study 
Pfizer to withdraw Corex syrup, extend line to new products
RBI pressed into service to ease Rs500 note shortage
RBI rate cut likely in December monetary policy review
Flipkart valuation slashed by Morgan Stanley for 4th time in 9 months
Reliance Jio’s entry, spectrum sale boost tower industry’s growth: Indus Towers
Swiss watchmaker Breitling said to be considering a sale
Rs8.44 trillion deposited in banks as demonetisation reaches halfway mark
'Indian equity market poised for double digit returns in 2017'
BSE Sensex back on track to finish at 26,316.34, NSE Nifty settles at 8,114.30
Poorly planned urbanisation pattern may impose USD1.8 tr cost by 2050: Study
Govt approves 6 new SEZs for IT, biotech
CSB set to sell stake to Fairfax at right price
South Asia looks closely at demonetisation drive
Inflation is expected to moderate further: Dun & Bradstreet
Govt keen on proper discussion on GST Bills in Parliament
Sebi puts in place disclosure norm for InvITs
UK government denies handwritten note on Brexit is policy

STOCK IN NEWS

• Morgan Stanley trims Flipkart value by 38% to $5.58 billion
• Off-highway business keeps Balkrishna in fast lane
• Tata Steel may lose a high margin business with sale of speciality business
• Tata Power calls EGM to remove Cyrus Mistry
• MCL lines up Rs 20,000 crore investments for power, coal, infra development
• 35 million online recharges done over last few days, says Paytm
• Lupin to launch sleep disorder drug in US
• RIL's Only Vimal DEO2 technology bags US patent
• Jet Airways sharpens international focus with new gateways in Europe, Singapore
• Natco gets USFDA nod for anti-sleep tablets
• Fitch lowers GDP forecast to 6.9% post cash crunch 

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