Friday, 29 December 2017

29 December 2017 - Views & News


PSU Banks: Capital infusion into some weaker banks - Sentimentally Positive for banks like United Bank, Dena Bank, Bank of Maharashtra etc. 
As per media reports the government is likely to immediately infuse about Rs 10,000 crore in six state-run lenders, including United Bank of India, Dena Bank and Bank of Maharashtra, over the next few weeks. These six lenders are under stress and immediate infusion is to help them maintain the required regulatory capital. This amount will come from the Indradhanush Plan, where around Rs 18,000 crore is still left - Sentimentally Positive for banks like United Bank, Dena Bank, Bank of Maharashtra etc. 

BSE Ltd: SEBI approves convergence of stock and commodity bourses from October 2018; positive
SEBI has approved convergence of stock and commodity bourses with effect from October 2018. This should allow BSE and NSE to launch commodity products trading on their platforms and MCX to launch trading of equity stocks on their platform:

NBCC: added to Nifty Midcap 50 Index – Sentimentally positive

Lupin: receives USFDA approval for generic Dovonex Scalp Solution – Positive

Aurobindo Pharma: gets USFDA nod for Fondaparinux Sodium injection, positive read-thru

Alkem Labs: gets USFDA nod for Triamcinolone Acetonide topical cream, positive read-thru

Banking Sector: Reserve Bank of India (RBI) turns down request to extend deadline for restructuring of debt of second list of defaulters – Banks to carry NPAs on this books and possibly make further provisions in some of the bad loans; near term negative

Tata Global Beverages:  The company has sold its stake in joint venture firm Estate Management Services Private Limited for a consideration of Rs120 crore; the strategy is to focus on branded business – positive read through
Reliance Industries: RJIO to acquire wireless infrastructure assets from RCom; positive read through for RIL, also for Reliance Communications lenders

Reliance JIO (RJIO), subsidiary of Reliance Industries (RIL), has signed definitive agreement to acquire specific assets (under four categories - Towers, Optic Fibre Cable Network, 4GSpectrum and Media Convergence Nodes) of Reliance Communications (RCom) and it's affiliates. These assets are expected to significantly contribute towards large scale roll out of wireless and fibre to home and enterprise services by RJIO. The acquisition is subject to government and regulatory approvals, consent from all lenders and release of all encumbrances on the said assets among other conditions. The company has not disclosed the transaction value. View: Positive read through for RIL and also positive for Reliance communications lenders and bond holders, as post the deal closure company will able to pay off its debts, the positive rubs off affects was already seen in the stock price , which was more than doubled in the last one week. 


Banking and Financial: SEBI Board approves various norms to address key issues in BFSI space There will be a cap on cross holding of mutual fund houses. A sponsor of a mutual fund or its associates cannot hold more than 10% in any other asset management company or have a board seat. UTI AMC promoters have to bring down holding to 10% in next one year. Each of the UTI shareholders SBI, PNB, BOB, LIC will have to down their stake . Securities receipts can now be listed & traded. This is a positive move because it will make security receipts, which are held by banks, more liquid and lead to better price discovery in bad loan sales by lenders. Credit rating agency cannot hold more than 10% in Other credit rating agencies.

Bank of Baroda: BoB has executed a share purchase agreement (SPA) with UniCredit SpA, the AMC and the Trustee, the bank said in a stock exchange notice. Pursuant to the SPA, the bank will become the sole shareholder of the AMC and the Trustee company and the sole sponsor of the Baroda Pioneer Mutual Fund. The joint venture was formed in 2008. According to the AMC’s Web site, the company operates out of 40 locations in India and managed quarterly average assets of about ₹11,023 crore for the month ending August 2017 - Sentimentally positive

Subros: Rating agency ICRA has reaffirmed it’s A+ ratings for Subros’s NCD and Bank limits while its has revised the outlook  from Stable to Positive. Also it has re-affirmed the A1+ ratings on Company’s commercial paper program. Positive                

Indian Oil Corporation (IOCL): To start production of 2nd generation ethanol by using surplus crop residues and other biomass as feedstock in the state of Haryana. The capacity of the proposed plant would be 100kilo litres per day and the ethanol would be used for blending with petrol - sentimentally positive for IOCL.

Oil India Ltd (OIL): Has made two hydrocarbon discoveries in the Dumduma Petroleum Mining Lease (PML) in the upper Assam basin and the wells are under production testing stage currently as per media reports – sentimentally positive for OIL.

TCS: stated to vigorously defend against US lawsuit on alleged anti-American bias – stock to remain in focus
TCS said it will vigorously defend its position in the United States after a District Court in California expanded the anti-discrimination lawsuit into class action against the company over termination of American employees. The lawsuit against TCS was filed in 2015 by an American worker, who had alleged that TCS favoured workers of South Asian origin in the US. 

Ambani to Ambani's rescue! Jio to buy RCom assets 
Govt introduces bill to amend IBC in Lok Sabha
Telcos gross revenue dips 7% in July-Sep 2017
No proposal to reconsider Air India privatisation: Govt
India's first bitcoin trading app launched
NITI Aayog working on policy to cut oil bill by $100 bn
L&T wins Rs 1k cr deal to maintain 5 mn smart meters
Sebi eases FPI norms; allows listing of security receipts by ARCs
Govt withdraws monthly LPG price hike order
BoB to acquire 51% stake in two JVs from UniCredit
Sebi eases investment threshold for REITs to 50%
Firms to face action for WhatsApp leak of financial details: Sebi
Consider e-message for refunds, share allotments: Sebi to firms
SEBI relaxes entry norms for foreign portfolio investors
‘Explosion of data requires higher processing power’
SEBI restricts rating agency monopoly
SEBI caps cross-shareholding in mutual funds at 10%
Renewable energy sector adds 12 GW capacity in Jan-Nov 
Industry, farmers reject draft contract farming Act  
Tata Steel appoints i-banks for $2 billion rights issue to be launched in January
Sun Pharma’s US eye drug filing reason to cheer but cautiously
IOB to sell Rs600 crore worth exposure in Bhushan Steel
Govt to push ahead with banking reforms in new year
Reliance Jio to acquire mobile business assets of RCom
Increasing automation, Infosys spat disrupted India's IT industry
Denial of info for lack of Aadhaar breach of RTI Act: CIC
IndianOil to start production of biomass-based ethanol
ASCI pulls up HUL, Dabur, Uber, others for misleading ads
CPRL opens closed outlets, McDonald’s flags food safety flaws
Sebi eases rules to get FPIs from more nations
IBC amendment bill to bar wilful defaulters tabled
About 25% jobs in BFSI likely to vanish in five years

Thursday, 28 December 2017

28 December 2017 - Views & News


Nifty is likely to open on a positive note based on the global cues. Support for the day is placed at 10420 levels and if breaks then downside can be expected for the day.

Nifty Spot Levels

Support 10426 – 10329 
Resistance  10552 – 10644 


Sgx Nifty  +18 pts Dow +28.09 pts ,Nsdq +3.09 pts , S&P +2.12 pts‎, Bovespa +364 pts ,Ftse +28 pts , Dax -2 pts , Cac +4 pts , Nikkei +10 pts now , Crude @ $59.57 brl (-0.07), Brent @ $66.44 brl (+0.00) , Gold @ 1291.20 (-0.20), Silver @ $16.745 (-0.01), Euro @ $1.1899, JPY @ $113.2100, INR @ $64.1100


US stocks were little changed on Wednesday, as gains in the technology sector offset losses in energy and helped keep major indexes nearly flat.
The Dow Jones Industrial Average rose 15.81 points, or 0.06 percent, to 24,762.02.
Oil prices dipped after hitting a near two-and-a-half-year high in the previous session, pushing down the S&P energy index by 0.4 percent.

Today's Corporate Action 28th Dec Ex Date 

SHALPAINTS Right Issue of Equity Shares 


ALERT - Banking Sector: The government on Wednesday cut the interest rate on small savings schemes, including public provident fund (PPF), national savings certificate (NSC) and Kisan Vikas Patra, by 0.2 percentage points for the January-March quarter. Interest rates in the five-year Senior Citizens Savings Scheme, however, has been retained at 8.3%. - Positive for banks in terms of attracting more share of deposits at lower rates; however the firming up of bond yields due to concerns related to possible fiscal slippage would continue to be a drag on public sector banks.

Fortis Healthcare: Daiichi Sankyo has alerted regulatory bodies and the stock exchanges against any potential stake sale in the hospital chain – Fortis Healthcare, indicating that such a transaction would violate a Supreme Court order – negative for Fortis Healthcare

Mahindra & Mahindra: Plans slew of launches in automotive segment in 2018 to boost volumes; positive….(details in other news)

Granules India: Get USFDA nod for allergy drug , Cetirizine hydrochloride (10mg) tablet, positive read-thru

Alkem Labs: Get USFDA nod for anti-Dyslipidaemia combination, Ezetimibe &Simvastatin (10mg) tablet, positive read-thru

Aurobindo Pharma: Company’s arm Aurolife pharma LLC get USFDA nod for anti-Anxiety drug , Lorazepam (0.5-2 mg) tablet, positive read-thru

Dr Reddy: Get tentative USFDA nod for Sapropterin Dihydrochloride (100 mg) tablet, positive read-thru

·         Star Cement: It received Rs 158.82 crore as capital investment subsidy from Central government – Sentimentally positive (was expected) 


Quess Corp: In view of NCLT approval, as part of demerger scheme Quess Corp acquires two subsidiaries of Manipal Integrated Services Pvt (MIS) – 60% stake in Golden star Facilities (GSFS) and Services and 100% equity in Master Staffing Solutions; further it will acquire additional stake of 10% in GSFS by way of transfer of shares upto Rs 5 crore – positive read through for the stock

Oil India Limited (OIL): Moody's has lowered baseline credit rating for OIL to baa3 from baa2 due to weakening credit metrics given its acquisition of Russian assets in 2016 and share buyback plan in 2017 - negative read through for OIL.

L&T: wins order valued at Rs1125 crore across various business segments; positive
Metallurgical & Material handling business bagged orders worth Rs 710 crore and other segments won orders worth Rs 415 crore.

Axis Bank: Market regulator, SEBI has issued directions to Axis Bank w.r.t leakage of unpublished price sensitive information. Axis Bank is to conduct an internal inquiry into leakage of unpublished information. – Neutral read thru

Apollo Tyres: To set up greenfield plant in Andhra Pradesh; to expand capacity in Chennai; positive read thru
Apollo Tyres will invest Rs 525 crore for setting up a Greenfield plant in Andhra Pradesh plant. It is also planning to double capacity at its facility in Chennai, as the company seeks to consolidate leadership position in the truck and bus radials and the passenger cars tyres segment in the domestic markets.  Positive

Mahindra & Mahindra: Plans slew of launches in automotive segment in 2018 to boost volumes; positive
In order to boost auto segment volumes, Mahindra will launch its Multi purpose vehicle codenamed Mahindra U321(Toyota Innova rival) during the Q1FY2019. It will then be followed by a new compact crossover vehicle (codenamed S201) based on Ssangyong Tivoli which will get new 1.5L petrol and diesel engines. Also, Mahindra-owned Ssangyong brand will launch the all-new Rexton in India during the second half of CY2018 and will be assembled to avoid high import duty. Apart from the launches in the diesel/petrol segment, M&M will also launch electric avatar of Mahindra KUV100.

TCS: faces US trial in anti-American bias case – this kind of lawsuit has earlier been filed on other IT companies - sentimentally negative read-thru
A federal judge in Oakland, California rejected a request from TCS to dismiss a 2015 lawsuit accusing it of violating anti-discrimination laws by favoring South Asians. In a further setback for the company, the judge also expanded the case into a class action on behalf of American workers who lost their jobs at TCS offices in the U.S. because they hadn’t been assigned to any of its clients.

Automobiles: Government to spend Rs 437 crore to push electric vehicles for public transport system in 11 cities; positive
Central Government will provide Rs 437 crore subsidy to 11 cities under the Faster Adoption and manufacturing of Electric Vehicle (FAME) scheme. The move will see launch of electric buses, taxis and three-wheelers in 11 cities. The cities include Delhi, Ahmedabad, Bangalore, Jaipur, Mumbai, Lucknow, Hyderabad, Indore and Kolkata, plus two cities – Jammu and Guwahati under special category.

Telecom: DoT suggests cutting GST on telecom services to 12% - positive read-thru
The telecom department has suggested the finance ministry that GST on telecom services be lowered to 12% against the existing 18%. Trai favoured reduction of licence fee and universal service obligation levy, cut in spectrum usage charges (SUC) and relaxation in spectrum payout terms, in view of the debt burden on telecom companies.


Small savings schemes’ interest rates cut by 20 bps
Daiichi asks regulators to block Fortis stake sale
Govt plans to borrow extra Rs 50,000 cr in Jan-March 
Vedanta to buy majority stake in Japan's AvanStrate
Arun Jaitley meets panel members to discuss budget
Hunt for next bitcoin to spark wilder crypto swings
Sebi orders Axis Bank to probe results leak 
Lok Sabha passes bill for GST cess hike on luxury cars from 15% to 25%
L&T's construction arm wins orders worth Rs 1,125 cr
USFDA accepts Sun Pharma's new eye drug application
S&P puts Indian banks in 'Group 5' with Italy, Spain, UAE
National Insurance IPO deferred to next financial year
Sebi notifies norms allowing REITs, InvITs to issue bonds
Oil soars, Brent crude hits $67/bbl for first time since mid-2015
Moody’s lowers OIL’s baseline credit rating to baa3
DLF concludes stake sale in rental arm to GIC for Rs 9,000 cr
SEBI may put 10% cross-shareholding cap in mutual funds
ED attaches assets worth Rs. 177 cr in NSEL money laundering case
Aurobindo gets USFDA nod for deep vein thrombosis drug 
‘RBI to cut rates by 25 bps in April to signal lower lending rates’ 
Govt signals fiscal slippage in 2017-18
Bitcoin holds near $16,000 as proxy stocks add to advances
Air Deccan, Air Odisha join hands to save costs
Barclays takes $1.3 billion one-time hit from US Tax Bill
DoT suggests cutting GST on telecom services to 12%: Manoj Sinha
Lower cotton prices revive hope for spinning mills
Insolvency: Sebi to ease compliance norms
Bharatmala a big play for investors, but goal ambitious: Icra
China Q4 economic trends point to slowdown in 2018, says survey
Delhi government, Maruti Suzuki sign pact to develop driving tracks
NBFCs retail credit growth seen at 16-18% in FY18: Icra
Suzlon opens first offshore Met unit in Arabian Sea
Shoppers Stop to engage personal shoppers
Toyota Kirloskar Motor expects better growth
India is the largest LPG importer
No GST on Viability Gap Funding disbursement
REITS, InvITs allowed to issue bonds via bourses


1. Star Cement received Rs 158.82 crore as capital investment subsidy from Central government.
2. Quess Corp acquired Master staffing solutions and 60 percent stake in Golden Star Facilities and Service.
3. Riddhi Siddhi board approved proposal to de-list shares of the company. Promoters set the offer floor price at Rs 510 apiece.
4. SEBI asked Axis Bank to conduct inquiry on leak of unpublished price sensitive financial information within three months.
5. Kolte Patil’s Pune township signed Rs 193 crore agreement with KKR.
6. SBI board approved raising up to Rs 8,000 crore through tier-1 bonds by March.
7. United Bank raised Rs 100 crore through tier-1 bonds.
[28/12, 09:24] S. Paul - Sharekhan Hosur: 1. Star Cement received Rs 158.82 crore as capital investment subsidy from Central government.
2. Quess Corp acquired Master staffing solutions and 60 percent stake in Golden Star Facilities and Service.
3. Riddhi Siddhi board approved proposal to de-list shares of the company. Promoters set the offer floor price at Rs 510 apiece.
4. SEBI asked Axis Bank to conduct inquiry on leak of unpublished price sensitive financial information within three months.
5. Kolte Patil’s Pune township signed Rs 193 crore agreement with KKR.
6. SBI board approved raising up to Rs 8,000 crore through tier-1 bonds by March.
7. United Bank raised Rs 100 crore through tier-1 bonds. 

Wednesday, 27 December 2017

27 December 2017 - Views & News


The Nifty is likely to open on flattish note. Nifty has surpassed 10500 mark on closing basis yesterday. In terms of wave structure the index has gone into the wave extension on the upside with short term target of 10860. . On the other hand, swing low of 10426 will be the key support to watch out for.  

Nifty Spot Levels

Support 10426 – 10329 – 10280

Resistance  10545 – 10644 - 10700


US stocks declined on Tuesday as Apple and shares of its parts suppliers weakened on a report of soft iPhone X demand, which pulled technology shares lower.
According to Taiwan's Economic Daily, citing unidentified sources, Apple will slash its sales forecast for its flagship phone in the current quarter to 30 million units, down from what it said was an initial plan of 50 million units.
The Dow Jones Industrial Average fell 7.85 points, or 0.03 percent, to 24,746.21.
Most markets around the world, including parts of Europe and Asia, were shut on Tuesday.


Reliance Communications (Rcom): announces debt recast plan to reduce its Rs45,000 crore debt significantly to less than Rs6000 crore by monetization of its wireless business and real estate assets. Post recast it would emerge as pure enterprise service providers and completely exit B2C telecom services business. The ambitious plan has been appreciated by the street and the stock has already reacted to the news. View: Since the company will exit from the ongoing strategic debt restructuring (SDR) programme, the banks will have to classify it as NPA in Q3 FY18E and may have to provide for the exposure. The path would not be so simple and smooth given the scale of debt and number of parties (lenders) involved with divergent interest. However, the stock could further get rerated as the resolution kicks in. Also note that the development is positive for banks especially SBI, ICICI Bank who have large exposure to ADAG group (including Rcomm).

Dishman: As per media reports, Dishman’s molecule Crenolanib (used to treat leukemia) has received fast track approval from the USFDA – Positive for Dishman; Stock to remain in focus.

Dr Reddy: launches Melphalan Hydrochloride Injection, generic of Alkeran (melphalan hydrochloride) Injection used in the treatment of certain types of cancer as it received approval from the USFDA – Positive for Dr Reddy; Market size for the drug is ~Rs 685 crore.

Automobiles: The discounting for commercial vehicles has increased to 15-20% levels from 7-12% earlier, as per media reports. The increased discounting is on account of OEM’s efforts to clear off year end inventory. Negative for Tata Motors, Ashok Leyland, Eicher Motors.

ITC: Karnataka High Court had deemed Health Ministry notification with respect to 85% pictorial warnings on cigarette packs as unconstitutional and on 15th December the court had made it clear that the 40 percent pictorial health warning rule would remain in force; However, certain individuals & NGOs have filed Special Leave Petitions against this judgment, along with a prayer for stay of the judgment – sentimentally negative for ITC (Karnataka contributes about 10-12% of ITC’s cigarette sales)

Rico Auto: Government to invite fresh bids worth Rs 4,000 cr for pod taxis (automated electric pod cars to be used as advanced public transport system); Positive read thru…(details in other news)

NBCC: to offer eligible employees 25,16,013 equity shares of face value Rs 2/- under OFS. This has come after the last week news of CBI investigating CMD of company for corruption charges. Though the street has taken the news in its stride, we believe that it could lead to some underperformance in the near term.


Pidilite Industries: The company has approved buyback of 50 lakh equity shares (10% of total number of shares) at price of Rs1,000 each (8% premium to current market price) for aggregate amount of Rs500 crore – positive read through for the stock

Rico Auto: Government to invite fresh bids worth Rs 4,000 cr for pod taxis (automated electric pod cars to be used as advanced public transport system); Positive read thru
India's first pod taxi project has moved a step closer to reality after a high-level panel recommended inviting fresh bids for the same conforming to the strictest safety standards on the lines of those prescribed by an American body. The projected Rs 4,000-crore pod taxi scheme also known as Personal Rapid Transit (PRT) will be executed on Delhi-Gurgaon pilot corridor (12.30 km) from Delhi-Haryana border to Rajiv Chowk in Gurgaon on a PPP (public-private partnership) basis. The first phase will be linking the 70-km stretch from Dhaula Kuan in Delhi to Manesar in Haryana. Rico Auto Industries will manufacture pod taxis and the development is positive.

Prataap Snacks: The company launched 'Rich Feast', the new umbrella brand for the Sweet Snacks catego – positive read through for the stock as launch of sweet snack was considered one of key revenue driver in near to medium term

Power Sector: Government unlikely to scrap customs duty on import of solar panels
The government appears to have turned down a plea by the Ministry of New and Renewable Energy (MNRE) to scrap import duty on solar panels imposed last year. The renewable energy ministry had backed the demand by solar developers that such equipment should continue to be exempted from duty. This would mean developers getting equipment from overseas having to pay levies that add up to about 10%, possibly reversing the decline in solar tariffs in successive auctions in the past three years unless power producers choose to absorb the extra cost. However, developers that quoted tariffs based on a zero-duty calculation in past auctions may get some relief.

Yes Bank: The private sector lender announces the acquisition of more than 5% stake in One Point One Solutions Limited ('OPOSL') - Neutral read thru

63 Moons Technologies: Sebi slaps fine on FTIL for changing name to 63 Moons Technologies
Sebi said 63 Moons Technologies did not seek approval from stock exchanges before changing its name from FTIL and imposed a fine of Rs1 lakh. The change in name was effected last year amid Financial Technologies (FTIL) coming under the scanner for the NSEL fiasco.

Ortel Communication: plans to transfer broadband biz to a wholly owned subsidiary
Ortel Communications plans to transfer its broadband business to a wholly owned subsidiary Ortel Broadband. The company intends to transfer its broadband business to this entity at a future date subject to final approval of the Board of Directors and after receiving other requisite approvals. The objective behind such transfer is to have a special focus on Broadband Business with a dedicated management team to drive growth.

Automobiles: Andhra Pradesh state plans sops to attract Rs 30,000 crore of investments in the electric vehicles industry
Andhra Pradesh is seeking to attract Rs 30,000 crore of investments in the electric-vehicles industry through a raft of incentives that would include capital subsidies to automakers and charging-equipment manufacturers. Andhra Pradesh proposes to offer concessional land and power, complete state GST reimbursements, and special incentives for battery manufacturing to draw investments in the electric-vehicle space. Andhra Pradesh proposes to set up an electric vehicle park with plug-and-play infrastructure for manufacturing units to start production. 


Pidilite Industries’ Board approves buy back of upto Rs 500 crore at Rs 1,000 per share via tender route.
Reliance Communications announces exit from SDR framework with zero write-offs to lenders; to reduce debt by Rs 25,000 crore.
ITC says certain individuals and NGOs have filed petition against high court ruling on cigarette warning.
Yes Bank acquires 5.62 percent in One Point One Solution under Anchor investor portion.
NBCC to sell 25,16,013 shares via OFS to employees.
Srikalahasthi Pipes’ QIP closes; Issue price fixed at Rs 360.5 which is at discount of 5 percent to the floor price.
IDBI Bank to terminate rating engagement with Moody’s for MTN program.
Punjab & Sindh Bank approves raising funds via share issue.
Prestige Estates to acquire 66.66 percent in group company -- Prestige Projects -- for Rs 324 crore.
[27/12, 09:32] S. Paul - Sharekhan Hosur: • US stocks declined on Tuesday as Apple and shares of its parts suppliers weakened on a report of soft iPhone X demand, which pulled technology shares lower.
According to Taiwan's Economic Daily, citing unidentified sources, Apple will slash its sales forecast for its flagship phone in the current quarter to 30 million units, down from what it said was an initial plan of 50 million units.
The Dow Jones Industrial Average fell 7.85 points, or 0.03 percent, to 24,746.21.
Most markets around the world, including parts of Europe and Asia, were shut on Tuesday. 

Tuesday, 26 December 2017

26 December 2017 - Views & News


The Nifty is likely to open weak. On the weekly chart the index has formed a bullish outside bar for the last week, which reinforces the bulls. On the higher side, 10700 & 10860 will be the key levels from short term perspective. 

Nifty Spot Levels

Support 10426 – 10329 – 10280
Resistance  10545 – 10644 - 10700


Sgx Nifty (10534) +19 pts (Nifty Fut 10505) US Mkt Clsd,Nikkei -24 pts now , Crude @ $58.61 brl (+0.20), Brent @ $64.73 brl (+0.00) , Gold @ 1278.40 (-0.70), Silver @ $16.40 (-0.03), Euro @ $1.1872, JPY @ $113.2900, INR @ $64.0210


US market was closed on Monday on occasion of Christmas.

Asian markets were mixed early in the Tuesday session in what's likely to be light, holiday-week trading.

Today's Corporate Action 26th Dec Ex Date

JINDWORLD Stock  Split From Rs.10/- to Rs.5/-


Indraprastha Gas Limited (IGL): Received PNGRB grant to develop CGD network in Karnal district (Haryana state); positive read through for IGL 
IGL has received letter of intent from Petroleum and Natural Gas Regulatory Board (PNGRB) for grant of authorization to IGL for development of city gas distribution (CGD) network in the geographical area (GA) of Karnal district (Haryana state). We have already highlighted in our FNA dated September 05, 2017 that IGL is likely to win CGD license for Karnal district – positive read through for IGL.

Housing  Finance: National Housing Board (NHB) amends risk weight rules for housing loans - Positive read thru for housing finance companies
NHB amends rules by reducing risk weight to 35% from 50% earlier for loans disbursed after 1St  August 2017, however this is applicable for loans between Rs30 Lakh to Rs75 lakh and LTV between 75% to 80%. Additional category for loans above Rs75 lakh has been created for LTVs below 75% where risk weight has been reduced to 50% from 75% earlier. The second measure includes calculation of LTV on outstanding loan basis, this helps in ensuring that the loans that become relatively riskier during the loan life cycle get relatively higher risk weight age across brackets dynamically, and hence helps in becoming more conservative while calculating capital adequacy ratio.

PSU Banks: The finance ministry has asked public sector banks (PSBs) to look at rationalising their domestic and overseas branches as part of the reform process to strengthen their financials. The banks have been advised to pursue closure of loss making domestic and international branches as part of capital saving exercise. - Sentimentally positive

HDFC Ltd: India's largest mortgage lender HDFC Ltd and its British joint venture partner Standard Life Investments are planning to raise Rs 4,000 crore by selling a 10% stake in asset management company HDFC Mutual Fund, valuing it at Rs 40,000 crore - Sentimentally positive

Cormandel International: To acquire Bio pesticide business of EID Parry for Rs 338 Crore; also aims to enter developed markets of US and Europe; Positive…..(details in other news)

Tech Mahindra: Acquires further 32.07% stake in Comviva Technologies – stock to remain in focus
Tech Mahindra said it has acquired additional 22.14% stake in Comviva Technologies from Bharti Group for Rs226.9 crore. Further, the company is in the process of buying another 9.93% stake in Comviva from Westbridge Ventures for a consideration of Rs101.75 crore in cash, which is likely to be completed in this month. Post this, Tech Mahindra will hold 99.17% stake in Comviva.

Gujarat Gas: Hikes industrial gas prices; positive read through as it would help it maintain margins
Gujarat Gas Limited has hiked industrial gas price to ~Rs2.57/scm from ~Rs2.5/scm due to increase in the Asian spot LNG prices as per media reports – positive read through for Gujarat Gas as the price hike would help it retain its margins given industrial segment accounts for 70% of its overall gas sales volumes.

Reliance Industries: Reliance JIO subscriber base reaches 160million; positive read through for Reliance Industries
Reliance Jio, subsidiary of Reliance Industries, has reached subscriber base of 160million (asp per media reports) compared to subscriber base of 138.6million in Q2FY2018. Moreover, Reliance Industries aims to be among the top 20 companies in the world and become a leading provider of clean energy with increased focus on renewable energy  – positive read through for Reliance Industries. 

Tata Motors: targets to regain over 55% share in the domestic MHCV truck markets; to invest Rs 1500 Crore in new product development; Positive…..(details in other news)


Tata Motors: targets to regain over 55% share in the domestic MHCV truck markets; to invest Rs 1500 Crore in new product development; Positive
Tata Motors hopes to regain market share of more than 55% in the medium and heavy commercial truck segment from around 51% as of March 2017. During the Post GST period (July – November) the company has outperformed the industry registering a growth of 34% as against the industry growth of 32%. Also a strong demand in the construction and mining segment as resulted in a 50% share in the tipper segment.   the company is investing ₹1,500 crore in new product development, and tooling and towards sustenance in manufacturing plants across CV segments. Also, product portfolio is being revamped catering to the value, performance and premium truck buyers  with a well-defined turnaround strategy, the company is confident of regaining its market share and maintaining its leader ship position.

Larsen & Toubro: gets Delhi Expo Centre phase-I contract for Rs 2,790 crore.

BHEL: bags Rs 672 cr order from Railways; positive
BHEL has  bagged Rs 672 crore order for electrics for 25KV AC mainline EMU trains from Indian Railways against international competitive bidding. The company’s scope of work in the order envisages design, manufacture, supply, installation and commissioning of IGBT-based propulsion systems and other equipment for MEMU trains. The order has been placed on BHEL by Rail Coach Factory, Kapurthala.  

Cormandel International: To acquire Bio pesticide business of EID Parry for Rs 338 Crore; also aims to enter developed markets of US and Europe; Positive.
Coromandel International has signed a term sheet to acquire the Bio-Pesticides business from E.I.D. Parry through a slump sale. The transaction is valued at Rs 338 crore. which includes purchase of Bio-Pesticides business of E.I.D. Parry together with its R&D unit, captive plantations and its wholly owned subsidiary Parry America, Inc. The bio-pesticides business is engaged in the manufacture and marketing of neem based Azadirachtin technicals and formulations, plant extract based bio-stimulants. The company has manufacturing facility and a Research and development center in Tamil Nadu. The acquisition provides Coromandel to gain entry in to bio pesticides segment, provides access to the developed markets of United States and Europe, enhance its presence globally addressing multiple crop and consumer segments and provide integrated pest management solutions. Also the acquisition will strengthen the company’s R&D as combined capabilities of both the businesses with diverse specialization on agro chemicals and biologicals would help coromandel in delivering new products which can offer unique positioning in the market. 

M&M: Plans to introduce 650cc bike under BSA brand; positive    
Mahindra two wheelers plans to introduce a 650 cc motorcycles under BSA brand. M&M, through its subsidiary Classic Legends, had in October 2016 acquired the famous British motorcycle brand, BSA Company.   The BSA brand is expected to help the company enter the premium motorcycle market in India and enable it to venture into new international markets. BSA has presence in Japan, Singapore, Malaysia, the US, Mexico and Canada. BSA could help M&M enter the fastest growing motorcycle segment in the country, the mid-capacity motorcycle category (bikes with engine sizes of between 250cc and 750cc). 

Wipro: invests $2.05 million in Imanis Data – stock to remain in focus
Wipro said it has invested $2.05 million in Imanis Data (formerly Talena). Wipro has made a strategic investment of $2.05 million in this tranche, taking total investment to $4.05 million. The transaction has been done through cash and note conversation. Wipro said it has acquired minority stake of less than 20% on a fully diluted basis. Imanis was founded in 2013 and is headquartered in Delaware, US.

Havells India: repositions Standard as a ‘value for money’ brand, eyes tier II to V markets. Positive
Havells India is repositioning Standard as a youth-centric brand in city markets and as a “value for money” proposition eyeing tier-II to V markets. Apart from switchgear, modular switches and wires, Standard’s portfolio now includes fans and water heaters (geysers). It contributes around Rs400 crore to Havells India’s Rs6,000 crore turnover. Havells intends to increase the product categories over the next one year. In fact, the company has tried to ensure that Standard and Havells do not cannibalise one another. Of the 2,500-odd distribution network that Standard has, nearly 80 per cent of it does not deal with the mother brand. Although on a smaller base, Standard has seen a near 22 per cent CAGR over the last three to four years and turnover doubled during this period. In order to bring in economies of scale, Standard will use Havells’ manufacturing facilities. The latter’s plants have a separate production line installed for Standard.

Eicher Motors (Royal Enfield): is likely to launch an upgrade of the Thunderbird 500 cruiser bike.  The new motorcycle would be launched in the 500 CC segment and named as Thunderbird 500X. It would have a new handle bar, upgraded seats, blacked-out alloy wheels, and tubeless tyres. Positive as it would help to push the sales of the motorcycle.

Welspun Corp: secures an order for the supply of 1.24 lakh MT pipes – positive
Welspun Corp announced that it has received an order for the supply of 1.24 lakh MT pipes. With the addition of these orders, the Company has current order book of 11.98 lakh MTs valued at Rs 7,400 crore.

Rico Auto Industries: The National Company Law Tribunal has approved the amalgamation of the Uttarakhand Automotives Limited, (wholly owned subsidiary) with Rico Auto Industries. This is unlikely to have any impact on the financials of the company.


Divestment: Govt may target some profitable PSUs
IOC, BPCL top suitors, but GAIL seeks ONGC merger
PFRDA looks at ways to allow minors open NPS account
RBI may extend pause on rate cut as oil prices firm
Government starts safeguard duty probe on solar cells
Patanjali inks Rs 671 cr pact for Chhattisgarh food unit
Aditya Birla, Piramal-Bain, Shree make aggressive bids for Binani Cement
2G verdict: STel to move Supreme Court, seek compensation
Firm domestic coking coal price upsets steel sector
Nine partner countries on radar for 2nd 'Make in Odisha' conclave
Individual insolvency regime to be operational in phased manner
Sebi may ask companies to inform bourses as soon as loan default occurs
Dilip Buildcon gets board approval to raise Rs. 600 cr 
Cotton prices seen holding firm in 2018 on slow arrivals 
SEBI plans to revisit directive on loan default disclosure
FPIs net outflow from equities at Rs. 7,300 cr in Dec so far
Offshore India funds, ETFs register $565 mn inflows in Nov
Sebi board to finalize norms for advisers, rating agencies
Reliance Industries aims to be among world’s top 20 firms
Govt starts safeguard duty probe on solar cells
Indian airlines to induct over 900 planes by 2025
Code for pharma marketing practices may be enforced soon
Only 1.7% citizens paid income tax in AY 2015-16, says official data
Gems and jewellery exports contract 4.8 pc in April-November
SAIL may return to profit next year, says Steel Secretary Aruna Sharma
Finance Ministry asks PSBs to rationalise overseas, domestic branches
1,110 more FPIs register with Sebi, indicates rising interest in capital market
HDFC M-cap of Rs 8.52 L cr is 2nd only to Tatas
DoT unlikely to tinker with licence fee, spectrum charge
E-comm market may cross $50b in 2018
Trai inputs to DoT on NTP by January-end, says chairman


1. BHEL gets Rs 672 crore order from Indian Railways.
2. CBI files corruption charges against NBCC chairman.
3. Larsen & Toubro gets Delhi Expo Centre phase-I contract for Rs 2,790 crore.
4. Tata Power wins mining license project in Kamchatka province in Russian Far East.
5. EID Parry to hive off its bio-pesticides business to Coromandel on a slump sale basis for Rs 338 crore.
6. Religare unit to divest its entire 50 percent holding in Bartleet.
7. Thyssenkrupp to have 50 percent stake in Tata Steel joint venture for six years.
8. Bharat Financial completes the third securitisation, sells loan portfolio worth Rs 653 crore.
9. Suzlon to sell its stake in Shanay and Saroja to Skeiron renewable energy for Rs 280 crore.
10. GVK Power unit wins bid for 17,06,300 tonnes coal.
11. Tech Mahindra to acquire 32.07 percent stake in Comviva Technologies for Rs 328.65 crore.
12. Dewan Housing Finance approves additional investment of Rs 16.33 crore in Social Worth Technologies.
13. Lumax Auto says tax department conducting search at group’s locations.
14. SEBI revokes shell company status on Prakash Industries.
15. Welspun Corp receives an order for the supply of 1.24 lakh MT pipes.
16. Jindal Poly’s Netherlands subsidiary to issue 2.6 lakh shares to a third-party investor.

Friday, 22 December 2017

22 December 2017 - Views & News


Nifty is likely to open on a flattish note based on the global cues. Support for the day is placed at 10380 levels and if breaks then further downside expected.

Nifty Spot Levels

Support 10380 – 10270
Resistance  10494 - 10564


Sgx Nifty  +16 pts Dow +55.64 pts ,Nsdq +4.40 pts , S&P +5.32 pts‎, Bovespa +1766 pts , Ftse +78 pts , Dax +40 pts , Cac +33 pts , Nikkei +21 pts now , Crude @ $58.18 brl (-0.18), Brent @ $64.64 brl (+0.08) , Gold @ 1270.60 (+0.00), Silver @ $16.20 (-0.03), Euro @ $1.1861, JPY @ $113.3100, INR @ $64.0100


Wall Street's main indexes rose on Thursday as investors were hopeful that lower corporate tax rates would allow companies to spend additional capital on dividends, new projects and wages, which could give a boost to the overall economy.
The two chambers of the U.S. Congress approved a $1.5-trillion tax bill this week that would slash corporate tax rates to 21 percent from 35 percent.
A separate report showed a jump in the number of Americans filing for unemployment benefits last week, but the underlying trend in jobless claims remained consistent with a tightening labour market.
The Dow Jones Industrial Average rose 55.64 points, or 0.23 percent, to 24,782.29.

Today's Corporate Action 22nd Dec Ex Date

KUSHAL Interim Dividend - Rs. - 0.5000
PREMPIPES Stock  Split From Rs.10/- to Rs.5/-


ALERT: Sun Pharma: started recalling 2 batches of Riomet (metformin hydrochloride) Oral Solution voluntarily from US market due to microbial contamination. According to a notification put up by US FDA on its website, the recall was under Class-II classification, Sentimentally negative for the stock

ALERT: Reliance Infrastructure: enters into agreement with Adani Transmission to sell its entire integrated Mumbai Power Business; positive…..(details in other news)

ALERT: IT sector: Accenture: Q1FY18 result: Beat estimates, strong FY2018 revenue growth guidance - positive read-thru for Indian IT
For Q1FY18, Accenture revenues were up by 12%YoY in reported terms and 10% in CC term to $9.5 billion, well above the guided range ($9.1 - $9.35 billion). This was mainly driven by strong demand for its digital, cloud and security-related services, which make up 55% of total revenue. Operating profit margin (OPM) improved by 140BPS QoQ to 15.6% in Q1FY2018.During the quarter, bookings were at $10.0 billion, constitute of consulting bookings of $5.9 billion and outsourcing bookings of $4.0 billion. Accenture expects net revenues for the Q2FY2018 to be in the range of $9.15 billion to $9.40 billion. The management has revised its FY2018 revenue growth guidance to 6-8% from 5-8% on a CC basis.

ALERT: TCS: wins record $2.25 billion Nielsen outsourcing contract - positive
TCS has won a $2.25 billion outsourcing contract from television ratings measurement company Nielsen. The deal marks the renewal of TCS’s engagement with Nielsen, which first awarded a $1.2 billion, in 2007. In 2013, the deal size was more than doubled to $2.5 billion and extended by three more years until 2020. Under the $2.25 billion contract, TCS is assured of $320 million in business from Nielsen every year, beginning 2017 through 2020, $186 million in annual revenue from 2021 through 2024 and $139.5 million in 2025.

FMCG: According to the industry reports, warehousing cost for consumer durables is set to halve, while that for fast-moving consumer goods (FMCG) would fall by 25-30 per cent on back of implementation of GST, consolidation and tax benefits; this would help them to see better margins in the coming years – positive read through for consumer goods companies (especially for companies like HUL, Britannia Industries, Dabur India and Emami, who has large presence Pan India). 

Maruti Suzuki: Expects to launch first electric car by 2020 and to also set up some charging stations once sales begin. Maruti Suzuki’s parent Suzuki Motor Corporation has partnered with Toyota Motor Corporation to produce electric vehicles for the Indian market by 2020. Suzuki is also setting up a lithium-ion battery manufacturing unit in Gujarat which will be used for electric vehicles. Positive.

Aurobindo Pharma gets US FDA nod for Valsartan (Diovan), positive read-thru

Maruti Suzuki: to launch the upgraded version of Swift in India in January 2018 – Positive…..(details in other news)

Dilip Buildcon: The company has been awarded two new EPC projects valued at Rs. 517.81 Cr. by Ircon International Limited which is to be executed in 24 months. Positive for the stock.


HDFC Ltd: Housing Development Finance Corp. Ltd (HDFC) announced the sale of two subsidiaries focusing on real estate brokerage and online property classifieds to Quikr India Pvt. Ltd for a total of Rs350 crore. HDFC Realty Ltd operates the brokerage business, while HDFC Developers Ltd owns the HDFC Red platform for online real estate classifieds. HDFC said this is an all-stock deal, with the mortgage lender taking a minority stake in Quikr India. - Positive read thru

Aarti Industries: Board approved buyback of 8.2 lakh shares representing 1% of share capital at price of Rs 1,200- positive read through for the stock

Maruti Suzuki: to launch the upgraded version of Swift in India in January 2018 – Positive.
Maruti Suzuki shall be launching the upgraded version of its hatchback Swift in India in January 2018. The car would be based on the company’s Hearttect platform which would make it more lighter than the existing model. The new Swift would be available in both the 1.2 liter petrol engine and 1.3 liter diesel engine. The diesel engine would come with SHVS (mild hybrid technology) which has a claimed fuel efficiency of 32 kmpl

Reliance Infrastructure: enters into agreement with Adani Transmission to sell its entire integrated Mumbai Power Business; positive
Reliance Infrastructure has signed definitive binding agreement with Adani Transmission to sell its entire integrated assets in power generation, transmission and distribution in Mumbai at a total deal value of Rs 13,251 crore. The deal value comprises of Mumbai Power Business valued at Rs 12,101 crore and approved regulatory assets of Rs 1,150 crore. In addition, regulatory assets under approval estimated at Rs 5,000 crore and net working capital on closing estimated at Rs 550 crore is to flow directly to Reliance Infrastructure amounting to total consideration value of ~ Rs 18,800 crore. Proceeds received from the above transaction are to be utilized entirely for debt reduction making the company net cash surplus to the tune of ~ Rs 3,000 crore.

Canara Bank: Canara Bank said it will offload 4 percent stake in its housing finance subsidiary Canfin Homes Ltd (CFHL). - Sentimentally positive

Thomas Cook India: It has approved further investment of Rs. 1crore in the equity shares of TC Forex Services Limited (formerly known as Tata Capital Forex Limited), a wholly owned subsidiary of the Company by way of subscription to its Right Issue – positive read through for the stock

Dalmia Bharat: Murli Industries’ committee of creditors approves resolution plan submitted by Dalmia Bharat’s subsidiary – positive read thru for Dalmia Bharat.
The committee of Creditors of Murli Industries approves the resolution plan submitted by Dalmia Bharat’s subsidiary Dalmia Cement. Following the receipt of requisite approvals, the resolution plan provides for payment of Rs402 crore which is 1.7 times higher than the determined liquidation value. Murli Industries has an integrated cement manufacturing plant with an installed capacity of 3MT in Maharashtra along with a captive thermal power plant of 50MW. Positive read thru for Dalmia Bharat.

ABB India: wins Rs 134 crore order from Indian Railways for traction equipment; positive
ABB India has won an order worth Rs 134 crore from Indian Railways to supply traction equipment for electric locomotives, manufactured by Chittaranjan Locomotive Works (CLW). Currently, around 42% of the entire Indian rail network is electrified and has a target to electrify its rail network by 2020. ABB has supplied traction equipment to CLW for several years and is a major supplier of traction system for rolling stock manufacturers around the world.

Steel Strips Wheels Limited: The company informed the bourses that it has secured export orders for 32,000 Wheels for Truck & Trailer, positive read-thru

Infosys Limited: The company informed that the company’s wholly owned subsidiary, Skava has joined HPE-driven Cloud28+ to offer new hybrid cloud retail solutions

Indian Hume Pipe Limited: The company informed the bourses on Thursday that it has secured three work orders aggregating to Rs.257.26 crore from Bengaluru Water Supply and Sewerage Board under Atal Mission for Rejuvenation and Urban Tranformation (AMRUT).

SRS Limited: The company informed the bourses on Thursday that it has signed an MOU with 'Spencer's Retail Limited' to sell the SRS Value Bazar business at an enterprise value of Rs.32 crore. Positive for SRS and CESC ltd to be in focus  (spencer retail holding company)

Navin fluorine International Ltd: The board has approved a capital expenditure of Rs.115 crores towards creating additional CGMP capacity and associated infrastructure at Dewas facilities. We see this is a positive development for the company.

Zee Media:  launches Zee Uttar Pradesh Uttarakhand, positive read-thru
The Zee Media group has announced the launch of Zee Uttar Pradesh-Uttarakhand. The network is re-entering the Uttar Pradesh and Uttarakhand market after 2014.The network had a channel with the same name earlier which was renamed as Zee Sangam in 2014 and later in 2015, the channel was again renamed as India 24x7. This year, India 24x7 was rebranded as Zee Hindustan.With this, Zee Media has now 14 channels that include Zee News, Zee Hindustan, WION, Zee Business, Zee 24 Taas, Zee 24 Kalak, Zee 24 Ghanta, Zee MadhyaPradesh-Chhattisgarh, Zee Rajasthan, Zee Punjab-Haryana-Himachal, Zee Kalinga News, Zee Bihar-Jharkhand and Zee Salaam.The new channel was announced in an event in Lucknow where Uttar Pradesh Chief Minister Yogi Adityanath, Uttarakhand Chief Minister Trivendra Rawat, yoga guru Baba Ramdev, Rajya Sabha MP Subhash Chandra, Deputy Chief Ministers of UP Keshav Prasad Maurya and Dinesh Sharma, former UP chief minister and Samajwadi Party chief Akhilesh Yadav, Rajya Sabha MPs Amar Singh and Vivek Tankha were present as special invitees


All 2G accused, including Kanimozhi & Raja, acquitted
Sebi revives proposal on loan default disclosure
India needs to strengthen RBI's independence: IMF
UIDAI's conditional nod to Airtel for eKYC till Jan 10
JPMorgan 'breached anti-money laundering regulations'
US jobless claims increase more than expected
AI can infuse $957 bn into Indian economy
2G verdict: Telcos, investors may move arbitration courts to seek damages
SGX move could trigger diplomatic row between India, Singapore
Canara Bank to sell 4% stake in Canfin Homes
BOJ keeps monetary policy steady; aims to achieve 2% inflation target
Sun Pharma recalls two batches of diabetic drug from US market
HDFC Capital creates $1 bn war chest for low-cost housing
CBI to appeal against 2G case verdict acquitting all accused
FRDI Bill: ‘Govt committed to protecting interests of depositors in public sector banks’
Govt may raise import duty on wheat
Recap, IBC will help clean up bank balance-sheets: RBI
Electric vehicles will be made based on customer survey: Maruti
Govt proposes Rs. 23,450-cr scheme for rooftop solar 
Carlyle Group acquires stake in Visionary RCM Infotech
India assures contracts for local solar panel makers in govt projects
Black money: India, Switzerland ink deal for data sharing from 1 January
Lodha Developers looking to raise up to $1 billion via IPO
Lenders put Jaypee Group firm PPGCL up for sale
Azim Premji Trust sold 2.73% stake in Wipro in share buyback offer
Trai directs Aircel to submit report on subscriber port-out in 6 circles
India’s financial sector facing considerable challenges: IMF
Narendra Modi Cabinet clears auction of 680 FM channels in 236 cities; set to raise Rs 1,100 crore
Reliance Jio and COAI differ over mobile connectivity project in Naxalism affected regions
Air India’s operational profit rises to Rs 215 crore in 2016-17
Removal of stockholding limits to ease sugar prices: Ind-Ra
2G verdict: ED to appeal acquittal of 19 accused
Airtel board okays terms of Tata Tele deal
RBI warns of further NPA woes
RInfra sells Mumbai power business to Adanis for Rs 18.8k cr
SBI report suggests bonds for bail-in of banks


1. HDFC to sell 100 percent stake in HDFC Developers and HDFC Realty to Quikr for a total consideration of Rs 355 crore.
2. Navin Fluorine to spend Rs 115 crore for the expansion of its Current Good Manufacturing Practice capacity at its Dewas facility.
3. Dalmia Bharat says creditors approves resolution plan for subsidiary Murli Industries.
4. VIP clothing to allot 1.65 crore shares at Rs 26 each via rights issue.
5. Gitanjali Gems denies claims of insolvency.
6. Canara Bank plans to sell 4 percent stake in Can Fin Homes. The bank will hold 26 percent stake after the sale.
7. Wipro: Promoter holding increased to 74.33 percent after completion of buyback.
8. Zee Media starts TV news channel for UP, Uttarakhand.
9. 3i Infotech alloted 10.6 lakh shares against conversion of FCCBs.
10. SRS to sell its SRS Value Bazaar for Rs 32 crore to Spencer’s Retail.
11. Aarti Industries to buy back 8.2 lakh shares (1 percent) at Rs 1,200 each.
12. HIL started operations at its plant in Andhra Pradesh.
13. Indian Overseas Bank: RBI rejects notes to account on asset divergence.