}

Thursday, 29 December 2016

29 December 2016 - Views & News

MARKET INSIGHT

Markets are likely to open on weak note and can remain volatile due to scheduled expiry in derivatives. Intraday resistance will be 8040-8100 and the support levels on the way down are 8020-7970. However, as long as the Index trades below 8275, the current pull-back will turn out to be just a counter-trend rally. The bears will be back in action if the Nifty breaks down below the low of 7893.

Nifty Spot Levels

Support 7992 – 7940 - 7893
Resistance 8084 – 8130 - 8155

GLOBAL MARKET & INTERNATIONAL DATA UPDATE 

• US stocks fell in low volume on Wednesday in a broad decline triggered in part by a sharp drop in home resales. 
• Contracts to buy previously-owned US homes fell in November to their lowest level in nearly a year, a sign that rising interest rates could be weighing on the housing market.
• The Dow Jones Industrial Average fell 111.36 points, or 0.56 percent, to 19,833.68

TOP NEWS

Banking Sector – RBI extends loan repayment window by another 30 days for loans up to Rs 1 crore – Positive read thru
In addition to 60 day grace period provided by RBI (on 21st November 2016) for repayments of loans up to Rs 1 crore, it has further been decided by RBI to give additional 30 days for repayment of such loans taking the total grace period to 90 days.

NSE files IPO draft papers with  Sebi, existing shareholders may offer 20-25% shares to public for estimated Rs 10,000 crore. Postive read-thru for IFCI (Hold 4.4% stake in NSE along with associate company)

Cadila acquire’s six brands (Deca-Durabolin, Durabolin, Sustanon, Multiload, Sicastat and Axeten) from Indian unit of  Merck Sharpe and Dohme (MSD) for an undisclosed amount – Positive for Cadila; acquisition will strengthen Cadila’s portfolio in key segments like wound management and cardiovascular therapies.

JMC Projects, secures new orders worth over Rs 1,457 crore, positive read-thru (also positive for Kalpataru Power Transmission)

Reliance communication: Minority shareholders demands company to buyback their stake, some PE and Hedgefunds unhappy with Brookfield deal, stock to remain in focus 
OTHER NEWS

Hindustan Unilever launching a bouquet of Ayurvedic products to counter Patanjali and try to grab a space for himself in emerging Ayurvedic product segment – positive for HUL
Hindustan Unilever (HUL), is launching around 20 products — toothpaste and skin cream to soaps and shampoos — under its existing Ayurveda brand Ayush. Ayush was launched in 2001 as a premium brand but had lost momentum by 2007. Now, the positioning will be mass market — price points between Rs 30 and Rs 130. HUL's personal care business accounts for nearly half its sales and 60% profits, mainly due to a large portfolio of premium products. Herbal products account for 6-7% of HUL's personal products segment. But growth in this sub-segment is twice as fast as the segment average.

TVS Motors gets patent for auto hybrid transmission system; positive read thru

TVS Motor Co has been granted an Indian patent for automatic hybrid transmission (AHT) system for two-wheelers. The invention is related to a system involving a combination of a fixed speed transmission mechanism (FSTM) and a continuously variable transmission mechanism (CVTM). Due to design constraints, the transmission system of current two-wheelers provide only with the CVTM which cannot be transformed into a hybrid transmission system. A hybrid system would ensure high transmission efficiency at all operating speeds. Positive.

Ashok Leyland has launched the Oyster brand of bus (with a seating capacity of 33 people) in the Saudi Arabia markets. This is the 3rd product launch by the company in the Saudi markets.  Positive

Tata Motors to launch a new compact sedan – Kite 5 based on the successful Tiago platform. Positive read thru
Tata Motors plans to launch the new compact sedan – Kite 5 based on the Tiago’s platform by February / March 2017. The car is likely to be priced between Rs 4.5 to Rs 5.5 lakhs (ex showroom Delhi) and would be offered in both 1.2 litre petrol and a 1.05 litre diesel engine. Kite5 is likely to garner encouraging response given the strong sales of Tiagio (Tiago monthly sales stand at about 6000 units)

IRB Infrastructure: The company receives Letter of Award for Kishangarh to Gulabpura project (had already announced preferred bidder for project on 9 Dec) – Neutral for the stock
The company has received Letter of Award from NHAI for 6 laning of 90kms Kishangarh to Gulabpura section of NH 79A and NH79 in Rajasthan on Toll basis. The estimated project cost is Rs1530 crores while the company has offered premium of Rs186.3 crore. The concession period of the project is 20 years including construction period of 910 days. The company had already announced that it has emerged as the preferred bidder for the said project on 9th December. The development is neutral read thru for the stock.

Dilip Buildcon – upgradation of rating of bank loan (long term and short term) – positive read thru for the stock
India Rating & Research has upgraded the Company's long term Issuer rating and the Long Term rating on its Bank Facilities to ‘IND A' from IND A-'. The Outlook is Stable. The agency has also upgraded the short term rating on DBL's bank facilities to ‘IND A1 from 'INDA2+'.

RIL commissions new PX plant with capacity of 2.2mtpa
Reliance Industries commissioned first phase of its paraxylene (PX) plant at Jamnagar in the state of Gujarat. With the commissioning of plant, RIL’s PX capacity would double to 4.2mtpa (vs 2mtpa currently) and the company would become world’s second largest PX producer (9% share in global PX capacity and 11% share in global PX production).    

Sasken Communication:  Company has fixed January 06, 2017 as the record date for the purpose of buy-back of equity shares
The company has proposed to buy back 29,27,879 equity shares having face value of Rs 10 each at a price of Rs 410 per share (CMP of Rs400) in cash for a total consideration not exceeding Rs 120 crore

JMC Projects, secures new orders worth over Rs 1,457 crore, positive read-thru (also positive for Kalpataru Power Transmission)
JMC Projects has bagged new construction projects worth over Rs 1,457 crore.The company has bagged Rs 454 crore shipyard modernisation project in Goa, Rs 446 crore flyover project in Maharashtra, Rs 282 crore commercial project in Hyderabad, Rs 224 crore residential project in Bangalore, JMC Projects (India) Ltd said in a filing to BSE.The company also bagged educational building project worth Rs 51 crore in Amravati, Andhra Pradesh.

Goa Carbon,  Bilaspur Plant in Chhattisgarh commenced operations from December 27

Pratibha Industries, board to meet on January 04, 2017 to approve the issue and allotment of shares on preferential basis to the lenders of the company under strategic debt restructuring (SDR) scheme.

Reliance communication: Minority shareholders demands company to buyback their stake, some PE and Hedgefunds unhappy with Brookfield deal
As per media reports, a group of private equity (PE) and hedge funds representing minority shareholders of Reliance Infratel Ltd, the telecom tower arm Reliance Communications Ltd (RCom), have demanded that RCom buy their stakes back before going ahead with its majority stake sale to Brookfield Infrastructure Group.The PE funds have invoked a shareholder agreement under which RCom is obliged to buy their stakes back and also seek their approval before a majority stake sale in Reliance Infratel.

IDFC Bank to merge lending divisions, long term postive 
IDFC Bank is planning to merge various lending divisions and  reduce headcount. The bank plans to merge corporate lending and middle market corporate lending into a single division while SME (small, medium enterprises) lending and business banking will also be merged into another division.

STOCK IN NEWS

1. IRB Infrastructure gets LoA from NHAI for project worth Rs 1530 crore 
2. Vindhya Telelink board meeting on January to consider issue of NCDs up to Rs 150 crore
3. JK Tyre approved fund raising up to Rs 1000 crore 
4. Pratibha Industries board meeting on January 4, 2017 to consider issue of shares to lenders under SDR 
5. JMC Projects bags orders in excess of Rs 1457 crore 
6. Sasta Sundar Ventures board meeting on January 5, 2017 to consider merger of certain subsidiaries 
7. Phoenix Mills acquired additional 8.72 percent stake in Island Star Developers 
8. Suyog Telematics gets letter of acceptance from MSRDC for installing BTS equipment on poles along Bandra Worli sea link 
9. Sterlite Technologies aims to more than double order book in 2017 
10. Tata Steel seeks foreign investment for Odisha SEZ Project 
11. Highway Developers cabinet to finalise ways to compensate highway operators for loss of toll
12. FICV order Uncertainty continues; govt undecided over number of development authorities 
13. TVS Motor gets patent for hybrid transmission system

No comments: