Tuesday, 27 December 2016

27 December 2016 - Views & News


Nifty is likely to open on a flattish note based on the global cues as most major markets were closed on Monday for Christmas holidays. Support for the day is placed at 7890 levels.

Nifty Spot Levels

Support 7890 – 7810
Resistance 7952 - 8022

Market Update:

Sgx Nifty +17 pts ‎US Mkt Clsd , Bovespa +683 pts , Ftse Clsd , Dax Clsd  , Cac Clsd , Nikkei  +1 pts now , Crude @ $53.24 brl (+0.22 ), Brent @ $55.16 brl (+0.11) , Gold @ $1135.30 (+1.70), Silver @ $15.85 (+0.08), Euro @ $1.0452, JPY @ $117.2000, INR @ $67.7363


• US markets were closed on Monday on occasion of Christmas.
• Asian stocks were little changed on Tuesday, in thin trade and with little to guide them as most major markets were closed on Monday for Christmas holidays, while the dollar reclaimed some of its losses from Monday.

Today's Corporate Action 27th Dec  Ex Date

GULPOLY  Stock  Split From Rs.5/- to Rs.1/-

Reliance Industries: The telecommunications regulator has asked subsidiary Reliance Jio Infocomm to explain why extension of free voice and data plan should not seen as violation of the rule that promotional offers be limited to 90 days – Sentimentally negative

Alert: Orbit Exports’ board of directors has approved a proposal to issue one bonus share for every share held in the company and also approved reappointment of Pankaj Seth as Managing Director and Chief Executive Officer and Anisha Seth as whole-time director – Sentimentally positive for the stock

Lupin gets USFDA approval for Olmesartan medoxomil tablets, used to treat hypertension – Positive for Lupin

Glenmark gets USFDA approval for tretinoin oral capsules; used to treat leukemia – Positive for Glenmark

Two wheeler sales to decline 15% in December 2016 on weak demand due to demonetization; Major players plan extended plant shut for maintenance, negative for HeroMotocorp, TVS Motor and Bajaj Auto
Given the weak demand due to demonetisation, 2W industry expects sales to drop 15% yoy in month of December.  The situation is worse than November which saw volumes dip by 6%. Major players have planned extended maintainence shutdowns (ranging from 2 to 10 days) to align production with demand.  Hero MotoCorp and TVS  Motors will observe the week-long scheduled production holiday. Honda Motorcycles and Scooters India will observe the longest shutdown period stretching for 10 days. Bajaj Auto will close production operations for two days this week. 

Banking sector: RBI Provides 60-Day Grace Period For Farmers’ Interest Subvention Scheme - positive read through
Reserve Bank of India has allowed that farmers will get a 60-day grace period on loan repayments to be eligible for the government’s interest rate subvention scheme on short-term crop loans taking in account the issues faced due to non availability Of cash. Under the scheme, farmers who repay their loans promptly are eligible for an additional interest subvention of 3% over and above a 2 % subvention available to all farmers.

Shilpa Medicare allots 30.25 lakh shares (~4% stake) to US based private equity fund TA Associates for Rs 570 per share (21.5% discount to closing price on 26 Dec 2016) i.e. ~ Rs 175 crores for the stake. Shilpa Medicare manufactures active pharmaceutical ingredients for drugs used in cancer treatment – Positive for Shilpa Medicare


Jubilant life science shareholder give approval for proposed NCD issue.


L&T wins order worth Rs3039 crore across segments; positive
·         Water treatment- Rs1422 crore EPC order
·         Power T&D- Rs1036 crore electrification order
·         Civil Infra- Rs359 crore EPC order from Inland waterways  
·         Material Handling- supply, erection and commissioning of equipment package at Paradip port worth Rs 222 crore

Noida Toll Bridge, IL&FS Transportation: Allahabad high court prohibits NTBCL from levying toll – negative for both the stocks
Noida Toll Bridge (NTBCL), a special purpose vehicle of IL&FS Transportation has been prohibited by the Allahabad High court from levying toll on its Delhi-Noida facility. However it has not set aside the concession agreement or terminate it. The order says the CAG has been requested to verify the petitioner’s claim on the project cost (As per company the although the project cost was Rs431 crore but with debt, service, interest and principal, it was well in excess of Rs800 crore, the amount which was received by the company). The development is negative for NTBCL and ITNL.

NTPC has signed Power Purchase Agreement(PPA) with Nepal Electricity Authority (NEA) for supply of up to 160 MW power for the period January 2017 to May 2017 through Muzaffarpur-Dhalkebar transmission line; positive read thru

Kaya’s subsidiary in Middle East (Kaya Middle East DMCC) completes acquisition of 75 percent beneficial interest in Minal Medical Care (located in Dubai) and Minal Specialized Dermatology (based in Sharjah) – positive read through for the stock from long term perspective  

Blue Star Ltd has appointed KPMG India to value its Malaysia, Oman and Qatar subsidiaries as part of a plan to reorganize its overseas business, expand operations and optimize tax. We believe company aims to consolidate, increase its overseas market share and also plans to raise funds in the overseas subsidiary post restructuring. Positive read thru

As per the media reports, Indraprastha Gas Limited (IGL) is considering to waive  off the deposit amount of Rs5,000 on every PNG (piped natural gas) connection and replacing it with a rental of Rs25-50 per month. This move is aimed to increase PNG penetration in NCR region and has to be approved by Petroleum and Natural Gas Regulatory Board (PNGRB).


FPIs may face up to 40% tax on Indian investments
Govt wants a share in your property windfall
China to levy environment tax to fight pollution
Foreign borrowings in Nov stood at $488.49 mn
Nabard sanctions Rs 35k cr loan under Irrigation Fund
Repayment incentive: RBI gives relief to farmers
Service tax mop from Mumbai zone jumps 25.5%
Short-term capital gains tax rate may rise in Budget
Ordinance planned to impose penalty for holding junked notes
Private labels to become a $5-bn business for e-tailers in 2017
NTPC signs 160 MW PPA with Nepal Electricity Authority
Private equity exits cross $10 billion in 2016: Bain & Co
Essar Oil posts record 2,162 crore net profit in FY2015-16
BSE to introduce 6-yr govt bond interest rate futures from Dec 30
PM to take stock of economy at NITI Aayog on Tuesday
India needs globally compatible tax rates: Jaitley 
SEBI forwards complaints against QNet to Karnataka govt
Srei Infra arm plans to raise Rs. 500 cr via NCDs
L&T Construction wins orders worth Rs. 3,039 cr
NTPC total installed capacity rises to 48,028 MW
RIL-ONGC dispute: Justice Singhvi appointed arbitrator
ICICI Bank registers the first case under the bankruptcy code
GMR Enterprises raises Rs220 crore from VTB Capital
Snapchat buys Israeli augmented reality start-up Cimagine
Abertis buys two Macquarie toll road assets for Rs1,000 cr
NBFCs seek more time to classify defaults as NPAs
Not in talks with PayPal on stake sale: FreeCharge
Paytm launches 100-member merchant helpdesk
Behind Ratan Tata-Cyrus Mistry clash, a distinct set of governance rules
OMCs eye over 50% of retail sales in cashless mode by March
Modi eyes real estate assets in drive against graft
Sebi puts in place disclosure norms for REITs
Demonetisation to help allot more funds to welfare scheme: Govt
Nifty slumps to 7-mth low, Sensex tanks 234 pts


1. M&M has brought its South Korean subsidiary, SsangYong, on the road to financial turnaround.
2. Hero MotoCorp, Honda Motorcycle and Scooter India (HMSI), Bajaj Auto and TVS Motor — which together control 90%of the two-wheeler market — will keep their plants shut for up to 10 days for annual maintenance
3. Coal price boom evades Coal India
4. Air fares up 65% on holiday season demand
5. Jet Airways to up capacity by 50% on certain domestic, international routes
6. PVR introduces UPI for transactions at its multiplexes
7. Indian IT will acquire more small firms as they look to bridge digital gaps
8. Despite price hike, Coal India's average price realisation declines in 2016
9. NTPC signs 160 MW PPA with Nepal Electricity Authority
10. L&T Construction wins orders worth Rs. 3,039 cr

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