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Tuesday, 31 January 2017

31 January 2017 - Views & News

MARKET INSIGHT

Markets are likely to open weak. 8663 & 8700 are very important resistance levels in Nifty. On the lower side, the Nifty has support at 8591 - 8540 levels. The short-term trend is still positive till the Nifty doesn’t close below 8520.

Nifty Spot Levels

Support 8614 – 8542 – 8501
Resistance 8663 – 8741 - 8807

GLOBAL MARKET

• Major US stock indexes posted their largest drop so far in 2017 on Monday as investors worried that a curb on immigration ordered by Donald Trump was a reminder that some of the US president's policies are not market-friendly.
• The CBOE Volatility index or Wall Street's "fear gauge" rose 1.30 points, the most for any day since November 3.
• Stocks fell even as US consumer spending accelerated and a measure of pending home sales rose in December, pointing to sustained domestic demand that could spur economic growth in early 2017.
• The Dow Jones Industrial Average fell 122.65 points, or 0.61 percent, to close at 19,971.13

Market Update:

Sgx Nifty -8 pts ‎Dow -122.65 pts ,Nsdq -47.07 pts , S&P -13.79 pts , Bovespa -1732 pts , Ftse -66 pts  , Dax -132 pts  , Cac -55 pts , Nikkei  -179 pts now , Crude @ $52.65 brl (+0.06), Brent @ $55.33 brl (+0.02) , Gold @ $1197.85 (+0.65), Silver @ $17.14 (+0.02), Euro @ $1.0707, JPY @ $113.7500, INR @ $67.810

Today's Corporate Action 31st Jan  Ex Date

DBCORP Interim Dividend - Rs. - 4.0000
PERSISTENT Interim Dividend - Rs. - 6.0000
SIEMENS Dividend - Rs. - 6.0000

Results Today:31st Jan 

Akzo Nobel, Asahi Song, Bajaj Auto, Bajaj Holding, Bharat Gear, Cadila Health, Capf, Centuryply, Centyry Tex, Dabur, FSL, Genus Power, GHCL, GoldCorp, GTL, HawkinCook, HCL Infy, ICICI Bank, IDFC, IFB Ind, Indigo, IOC, Jai Corp, Jen Bur, JSW Steel, Kansai Nerolac, KEC, KSCL, MahaBank, MHRIL, Mphasis,Nelco, Oil, ONGC, Parry Sugar, Shopper Stop, SRTransfin, Subros, Syndicate Bank, TTK Prestige, Uco Bank,WabcoIndia,Welspun Ind, Wonderla


TOP NEWS

Natco: Court rejects Teva’s patent infringement claims on Copaxone 40 mg injection - Positive for Natco; Natco (in partnership with Mylan) now awaits approval from USFDA for Copaxone

International Natural rubber prices have increased 25% in last one month and are currently trading at a three year high price of Rs 195 per kg due to supply disruptions in the key rubber producing nation Thailand. Tracking the higher international prices, domestic rubber prices have increased 16% in laast one month and are currently trading at Rs 158 per kg. Higher rubber prices is negative for tyre players such as Apollo Tyre, Ceat, MRF and JK Tyre

STRONG RESULTS:

Pincon Spirits posted stellar performance in Q3FY2017 with revenues growing by 31% to Rs311.9crore (revenues of IMFL division grew by 33% and FMCG division revenues grew by 26%) and the PAT growing by 52% to Rs9.3 (OPM improved by 92BPS to 6.8%) in the backdrop tough market condition – positive read through for the stock

V-Mart Retail posted strong performance in Q3FY2017 with revenues growing by 23.3% yoy to Rs326.9crore as against Rs265crore in Q3FY2016. The OPM improved by almost 300BPS to 14.8%, while the net profit grew by 81.3%yoy to Rs27.2crore
  
WEAK RESULT

Shree Cement Ltd Q3FY2017 results – Flattish earnings performance led by weak power division performance
·         The total revenue for the quarter under review grew by 2.2% YoY to Rs1,843 crore on account of 12% YoY growth in cement revenues to Rs1,816 crore. However, the net power division revenue (adjusting for inter-segment revenue) declined by 85% YoY.
·         The company reported flat operating margin YoY at 25.4% on account of higher realization in cement along with lower power & fuel cost (down 20% YoY) and raw material cost (16% YoY). Consequently, operating profit for the quarter grew by 2.2% YoY to Rs469 crore.
·         The interest and depreciation for the quarter grew by 74.5% YoY and 14.8% YoY respectively. PBT for the quarter declined by 5.5% YoY to Rs246 crore. However, lower effective tax rate (4.3% vs 10.2% in Q3FY2016) led to net profit growth of 0.7% YoY to Rs235 crore.
·      Currently, we have Hold recommendation on stock with a price target of Rs18,000. We shall come out with detail note post interaction with management.

OTHER NEWS

Bajaj Auto relaunches Pulsar NS200 starting at Rs 1.16 lakh; positive
Bajaj Auto has re-introduced the Pulsar NS200 with three new colour options at a price tag of Rs 1.16 lakh, on-road Mumbai as per media reports. The company has already started delivering the motorcycle at dealerships The new colours on offer are shades of blue, white and red. The 2017 Bajaj Pulsar NS200 will be powered by the existing 199.5 cc single-cylinder engine with triple-spark technology that develops 23.1 hp of power and 18.3 Nm of torque. The new Pulsar NS200 is likely to have FI (Fuel Injection) technology and the engine compliant to BS-IV emission norms. Relaunch of Pulsar 200 NS will enable Bajaj to gain market share in the motorcycle space.

Tata Chemicals proposes Rs 250 crore investment in Andhra Pradesh…………….. Positive read through for the stock
Tata Chemicals plans to invest Rs 200-250 crore for the development of nutritional products in Andhra Pradesh. The company signed a memorandum of understanding for the development of Biotechnology-based nutritional products such as Oligosaccharides and other nutritional products with the Andhra Pradesh government on January 28, 2017.

Maruti Suzuki to double premium distribution channel network “Nexa” by 2020; positive read thru
Maruti Suzuki India (MSI) plans to double the number of Nexa outlets to 400 by 2020 fuelled by growing demand. At present, MSI sells premium crossover S-Cross; premium hatchback Baleno and premium urban compact IGNIS through the Nexa channel. MSI plans to launch the new Baleno RS model in February/March 2017 which would be sold thru the Nexa route

Mahindra rolls out upgraded KUV100 at Rs 6.37 lakh to fend off competition
Mahindra launched an upgraded top-end version of its compact SUV KUV100 with additional features priced at Rs 6.37 lakh (ex-showroom, Delhi). The new avatar will be available on the top end K8 variant for Rs 6.37 lakh , at a differential of Rs 13,000 over the existing version. The new K8 variant comes with various features including two options for dual tone exterior colour Flamboyant Red or a Dazzling Silver body with metallic black roof. 

Wipro partners with Tradeshift to increase digitalization and automation
Wipro announced a strategic partnership with Tradeshift, to offer cloud-based Source-to-Pay (S2P) Business Process as a Service (BPaaS) solution. The partnership aims to help customers accelerate digitalization and automation in their procurement, finance and accounting functions.

Dilip Buildcon:  MORTH recalls EPC project in Andhra Pradesh where the company was Lowest bidder – Negative read thru for Dilip Buildcon
Ministry of Road Transport & Highways has recalled the project Rehabilitation and up-gradation of Machilipatnam to Avanigadda section to two lane with paved shoulder in Andhra Pradesh through an EPC basis where the Company had been declared as the successful bidder (L-1) for the project. The project was recalled as the L-1 bid price was higher than the departmental estimate of Rs222.9 crores. The development is negative for Dilip buildcon.

Banking Sector: ICRA has forecasted Bank credit growth to likely remain subdued at 5-6 % in FY17 on back of weak loan demand and competitive rates from debt markets. Deposit growth is likely to ease further to 12% - Sentimentally positive for NBFCs, Neutral for large PSU banks

Zee Entertainment launches 2 new channels for Africa
Zee Entertainment announced the launch of two new channels, Zee Bollymovies and Zee Bollynova, which will broadcast on Africa’s new pay-TV network, Kwes√© TV. The channel aims to become the number one destination for Bollywood on the continent, bringing the latest and best Bollywood entertainment to Africa.

IL&FS Transportation, IL&FS Engineering: The company has received letter of acceptance for bid submitted totaling Rs375 crores for two of its projects in Madhya Pradesh. The company has a JV with IL&FS Engineering for the said project. The development is positive read thru for both the stocks.

 MORE NEWS

Vodafone confirms talks on merger with Idea 
CBI opposes bail pleas of 9 in IDBI loan default case
Idea deal will lead to backdoor listing of Vodafone
RBI removes withdrawal limits on current accounts 
CBI opposes bail pleas of 9 in IDBI loan default case
Telenor joins M&A rush, seeks Aircel-RCom tieup
Piramal to acquire Mallinckrodt for $170 million
Next edition of consolidated FDI policy to come out soon
Strategic sale of NMDC, SAIL units on cards
ATM cash withdrawal limit eased further
Lenders wary of JSW's Bhushan Steel proposal
Fitch downgrades long-term issuer default ratings on BILT to CCC
I-T begins action under Benami Act; attaches 42 assets worth crores
Merger may lead to $1 b in savings for Idea, Vodafone
GMR Kakinada SEZ attracts ₹7,000-cr investments 
HDFC board approves increase in authorised share capital to Rs.350 cr
Reliance Defence bags Rs. 916-cr contract from Defence Ministry
Emami posts ₹140-crore standalone profit in third quarter
HDFC Q3 net profit up 12% to Rs1,701 crore
Govt mulls introducing fixed-cost component in renewable energy tariff
Inadequate imports of paper for new currency notes may have led to cash crunch
Tech Mahindra’s Q3 profit up 14% to Rs856 crore
Grasim consolidated profit up 14% on better VSF realisation
Indian Rupee slides 16 paise against dollar
German consumer group files data suit against WhatsApp
Gold monetisation policy has no lustre, needs changes: IIM-A
Goldman Sachs CEO Lloyd Blankfein takes lead on Wall St. in slamming Donald Trump's travel ban
Indian e-tail industry grew by 12% to $14.5 billion in 2016: Report
RBI sets rupee reference rate at 68.0426 against dollar
Disinvestment goal for FY18 may be raised to garner funds
Higher open interest, new series may add to volatility
Sops to common man, cut in corporate tax on the cards

 STOCK IN NEWS 

1. IDBI-led lenders consortium put 55% stake in GMR Rajahmundry Energy on sale
2. Mahindra launches upgraded SUV KUV100 at Rs 6.37 lakh
3. Reliance Jio free offer violates Trai tariff orders: Vodafone to Delhi HC
4. Piramal to acquire drugs from UK's Mallinckrodt for Rs 1,162 cr
5. SAIL in talks with CIL over coking coal price hike
6. Fitch downgrades long-term issuer default ratings on BILT to CCC
7. Zee launches two new channels in Africa
8. GAIL, HPCL to set up Rs 40,000 cr cracker unit at Kakinada, Andhra Pradesh
9. Reliance Defence bags Rs 916 crore contract from Indian Coast Guard
10. DLF Noida mall in CBRE list of 22 best global retail projects

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