}

Wednesday, 25 January 2017

25 January 2017 - Views & News

MARKET INSIGHT

Markets are likely to open on a positive note, we now maintain our bias up both on Nifty as well as the Banknifty. The intraday target above 8461 comes to 8510 initially and thereafter 8542 levels. The positional target on the upside comes to 8654 levels. The stop loss for the intraday should be below yesterday’s swing low i.e. 8398 levels, whereas, for the positional traders it should be below 8327 levels.

Nifty Spot Levels

Support 8398 – 8351 – 8327
Resistance 8510 – 8542 - 8601

GLOBAL MARKET & INTERNATIONAL DATA UPDATE

The S&P 500 and Nasdaq set record highs on Tuesday in a broad rally led by financial and technology stocks.
The advance comes as quarterly earnings season heats up and investors become optimistic that clarity on President Donald Trump's economic policies will be forthcoming.
Trump signed two executive orders on Tuesday to move forward with construction of the controversial Keystone XL and Dakota Access oil pipelines, rolling back key Obama administration environmental actions in favor of expanding energy infrastructure.
The Dow Jones Industrial Average rose 112.86 points, or 0.57 percent, to 19,912.71.

Market Update:

Sgx Nifty +33 pts ‎Dow +112.86 pts ,Nsdq +48.01 pts , S&P +14.87 pts , Bovespa +91 pts , Ftse -0.84 pts  , Dax +49 pts  , Cac +8 pts , Nikkei  +288 pts now , Crude @ $52.96 brl (-0.22 ), Brent @ $55.44 brl (+0.21) , Gold @ $1208.40 (-2.40), Silver @ $17.11 (-0.07), Euro @ $1.0728, JPY @ $113.9300, INR @ $68.1450

Today's Corporate Action 25th Jan  Ex Date

HYDIND Interim Dividend - Rs. - 10.0000
MINDTREE Interim Dividend - Rs. - 2.0000
TRIDENT Interim Dividend - Rs. - 0.6000

Today's Key Result 25th Jan

APL Ltd, AroGranite, Arvind, Ashok Leyland, Asian Tiles, Birla Money, Blue Star, Chola Fin, Coromandel, Exide Ind, IBRealEst, IBVentures, IDFC Bank, IIFL, Indian Bank, IRB, Karur Vysya, Kotak Bank, Kirlos Eng, Maruti, Oberoi Reality, Orbit Exp, Raymond, Saregama, Suprem Ind, Tata Elxsi,UPL, VRL Log, Wipro

TOP NEWS

Bhel bags order worth Rs1360cr from Powergrid. It scope is to set up 800kv 6000mw HVDC between western grid and southergrid. Positive

Japanese auto-component maker JTEKT Corporation is set to buy out Indian partner Sona Group’s 25% stake in Sona Koyo Steering Systems for Rs 575-625 crore as per media sources. JTEKT is believed to have offered Rs 115-125 per share (current CMP of Rs 73) which is more than 50% premium over its current capitalisation. The Indian promoter owns 25.28% of the joint venture company while the Japanese company owns 20.1%. Positive for Sona Koyo Steering

As per industry experts, the passenger vehicle industry is expected to grow by  10% in FY17 (as against 9% growth in 9MFY2017) which implies a double digit growth in Q4FY2017. Positive for PV players such as Maruti Suzuki, M&M and Tata Motors

Bhushan Steel- JSW Steel has submitted a bid of Rs 25,000 crore for acquiring Bhushan Steel.  The deal would include taking over the debts of Bhushan Steel, which were Rs 44,477.90 crore in 2015-16, at a substantial discount. Positive for Bhusan Steel

As per the media reports, ONGC expect to produce additional gas of around 3.3mmscmd from its existing fields with help of GSPC’s infrastructure (ONGC has recently acquired entire 80% stake of GSPC in KG-OSN-2001/3 block). ONGC gas production in Q2FY2017 stood at 63.1mmscmd and thus ONGC could see around 5% increase in gas production. Positive for ONGC

KM Sugar Mills to consider increase in capital from Rs20cr to Rs24cr; preferential allotment of 2 crore shares in one or more trenches and raising of funds up to Rs100crore through preferential allotment (@ Rs50 per share, which at premium of 66% from current market price); the raising of fund is largely to set up a sugar refining facility at Ghana – positive read through for the stock 


STRONG RESULTS

Swaraj Engines reported robust operating results for Q3FY17.  Topline grew 47% yoy mainly driven by volume growth. Operating margins improved 280 bps to 14.9% led by operating leverage.  Net profit grew 83% yoy to Rs 15.3 cr

Supreme Petrochem Q3FY2017 results: Strong operating performance – Positive read thru for Supreme Industries (parent company)
Net revenue increased to Rs 764 crore in Q3FY2017 from Rs 681.4 in Q3FY2016, an increase of 12.2% YoY. EBITDA margin improved by 50BPS YoY to 7.7%. Consequently, net profit increased by 23.8% YoY to Rs35.4 crore.

PNB Housing posted strong results for Q3 FY17 with PAT up 53% YoY at Rs 138 cr as its Net interest income (NII) registered a growth of 40 % to Rs 264.50 crore
The PAT growth was helped as PNB Housing wrote back provision for contingencies of Rs 24.50 crore, created in previous years, in order to maintain the gearing ratio as per NHB guidelines. Asset quality continued to be strong with the gross non performing assets (GNPA) at 0.37 % and Net NPA (NNPA) at 0.27%.

Greenply Industries: Earnings and revenue ahead of consensus estimates (net profit Rs19 crore, revenue Rs358 crore)
The company reported an earnings decline of 31.6% YoY to Rs24 crore for Q3FY2017 which was ahead of consensus estimates (Rs19 cr). The company’s revenue declined by 13.8% YoY due to demonetization impact on its MDF business (revenues down 26% YoY). However, gross margins expanded over 400BPS YoY led by better product mix and fall in raw material prices. Further higher ad expenditure and other expenditure led to lower operating margins (down 196BPS YoY).

FUND RAISING

Airtel gets board nod to raise up to Rs 10,000 cr through NCDs
Bharti Airtel has received its board approval to raise up to Rs 10,000 crore through non-convertible debentures. The development comes within fortnight of Reliance Jio announcing additional investment Rs 30,000 crore in its network taking the cumulative investment in its business to over Rs 1.9 lakh crore.

 OTHER NEWS

BASF plans to launch 5 rice crop protection products in India - Positive read through for the stock
BASF   has introduced crop protection solutions for rice in India as it seeks to increase its share in the country and Asia-Pacific’s crop protection market. BASF will introduce five products this year including two fungicides and two herbicides, which will be launched in the first quarter of 2017 while another molecule will be launched in the later part of this year.

Organised jewellers will enjoy 35% -40% of domestic gold market by 2020 – positive read through for PC Jewellers, Tanishq, Kalyan Jewellers
According to a World Gold Council report - India's gold market: evolution and innovation, the organised jewellers will enjoy 35% -40% of the domestic gold market by 2020. In 2015, national chains – including Tanishq and Malabar Gold and Diamonds – accounted for around 7% of the market, while regional chains accounted for around 23%. These organised retailers have introduced sophisticated advertising and sales campaigns, effective inventory management systems and domestic and international brands, and have raised standards within the industry. The WGC report adds that the direction of travel is clearly towards the sector becoming more organised. International buyers, for example, have strict procurement policies that rule out many of the smaller workshops. And the orders from overseas and domestic organised retailers are often large; manufacturers need to be a certain size to be able to process these orders.

ITC to consider appointment Of Mr.Sanjiv Puri as CEO On Jan 27, 2017; likely to split role Of Executive Chairman Between Chairman & CEO w.e.f Feb 5
Tata Motors aims to be the third largest Car maker in India by March 2019. The company expects the recent products - Tiago and Hexa and the upcoming compact SUV (to be launched in 2017) coupled with other new launches to help the company increase its market share which currently stands at 5.1%. Positive read thru

Kotak Mahindra sells 2.1% in South Indian Bank for Rs 60 crore, the shares were offloaded at an average price of Rs 21.2 per share – Neutral read thru

Inox Leisure emerges as top bidder for SRS Cinemas acquisition
As per media report, Inox Leisure Ltd has emerged as the highest bidder for SRS Cinemas, the multiplex business of SRS Ltd. Inox has offered close to Rs225 crore for the theatre chain. The company is currently inspecting the assets of SRS Cinemas, which operates 62 multiplex screens across 22 cities in India

 MORE NEWS

James Hogan to step down as Etihad CEO
Japan's Nippon Paper set to buy Plus Paper Foodpac
CBI court remands 9 accused to judicial custody in KFA loan default case
Ankur Khanna quits as CFO of AirAsia India
Impose tax on cash withdrawal above Rs 50,000, panel on digital payments suggests PM Modi
Tata Sons’ Director Amit Chandra denies Cyrus Mistry allegations
Supreme Court rejects government plea to postpone BCCI case hearing by two weeks
Cyrus Mistry seeks legal waiver at NCLT
Idea Cellular moves HC against Trai penalty of Rs 950cr
Kapurs likely to steer away from Sona Koyo
New round of capital infusion for PSBs soon
Kotak Mahindra sells 2.1% in South Indian Bank for Rs 60 crore
Muthoot Microfin to raise Rs 130 crore from Creation Investments
Coal India to allow buyers to lift coal within three years under e-auction
Lupin launches Ortho-Cyclen tablets in US
Ajanta Pharma denies alert from USFDA, says supply is on
CBDT tightens screws on shell companies
'Unknown sources’ make up 69% of parties’ income
Nabard allowed to raise ₹20,000 cr for crop loans
BASF enters crop protection for rice with three products
BookMyShow acquires MastiTickets
OYO checks into more premium category
Lupin launches Ortho-Cyclen tablets in US
A start-up that offers group discount programme
PepsiCo goes for digital transformation
Apollo Sugar to double network to 100 clinics
ITC to split Chairman’s post
US President Trump speaks with PM Modi over phone, says WH press secretary
71% of donations to political parties from unknown sources
JSW bids Rs 25,000 cr for Bhushan Steel
Note ban squeezed gold demand to 650-750 tonnes: WCG
We are re-engineering our costs: D Shivakumar, chairman & CEO, PepsiCo
AirAsia India opts for leasing via tender route
CBI charge sheet opens way for Mallya extradition
Minimum import price on steel short-term step: Govt
Weathermen divided on El NiƱo
Snapdeal in talks with SoftBank to raise funds at lower valuation
Flipkart’s new CEO has his work cut out in the wake of top-level exits
US seeks enhanced India market access after Trans-Pacific Partnership pullout
Sanjiv Puri to be named ITC CEO, chairman's post may be split
CBI charges Vijay Mallya with fraud, criminal conspiracy
Actis in talks to promote new renewable energy platform, after Ostro success
Alibaba lifts forecast as new ventures bolster e-commerce
Ashok Leyland finance arm raises Rs250 crore through rights issue
Income-tax dept issues norms to determine residency status of companies
Inox emerges as top bidder for SRS Cinemas acquisition

 STOCK IN NEWS 
  • BookMyShow acquires Hyderabad-based MastiTickets
  • Pharma industry wants Budget to offer clarity on tax structure
  • Sun Pharmaceutical Industries is looking to sell its US subsidiary, Ohm Laboratories, as it looks to consolidate its operations in its biggest overseas market, according to a television report.
  • Ruias stake in Essar Steel to fall to 44% 
  • Sebi probes takeover code violations at United Spirits
  • Vedanta's power sales up 8% on commissioning of new units 
  • SAIL enhances rail production capacity to 2 mtpa 
  • Lupin gets USFDA nod for generic anti-depressant tablets
  • Siemens announces receiving order worth Rs 366 crore from ONGC

No comments: