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Tuesday, 28 February 2017

28 February 2017 - Views & News

MARKET INSIGHT

Markets are likely to open positive. Nifty has fallen back towards lower end of the medium term rising channel. Thus 8900-8880 is a key support zone on closing basis. The larger trend remains positive. On the higher side, last week’s high of 8982 will be the key hurdle to watch out for.

Nifty Spot Levels

Support 8860 – 8826 – 8783
Resistance 8982 – 9000 - 9080
GLOBAL MARKET

• US stocks ended slightly higher on Monday and the Dow closed at a record high for a 12th straight session, as President Donald Trump said he would make a "big" infrastructure statement on Tuesday.
• Trump, who met with state governors at the White House, also said he is seeking what he called a "historic" increase in military spending of more than 9 percent, while he said his administration would be "moving quickly" on regulatory reforms.
• The comments came ahead of Trump's first address to a joint session of Congress Tuesday evening.
• The Dow Jones Industrial Average was up 15.68 points, or 0.08 percent, to close at 20,837.44.

Market Update

Sgx Nifty -5 pts ‎Dow +15.68 pts ,Nsdq +16.59 pts , S&P +2.39 pts , Bovespa Clsd , Ftse +9 pts , Dax+18 pts  , Cac -0.06 pts , Nikkei  +115 pts now , Crude @ $54.07 brl (+0.04), Brent @ $56.45 brl (+0.03) , Gold @ 1254.05 (+0.60), Silver @ $18.33 (+0.02), Euro @ $1.0584, JPY @ $112.7500, INR @ $66.703

Today's Corporate Action 28th Feb  Ex Date

BPCL Interim Dividend - Rs. - 19.5000

TOP NEWS

As per the media reports, ONGC may acquire government’s 51.1% stake in HPCL followed by an open offer to buy additional 26% from other shareholders of HPCL. The entire deal is likely to be valued at around Rs44,000 crore ($6.6 billion) and thus valuing HPCL at Rs562/share (in-line with CMP of Rs560). Although the exact deal structure for payment of Rs44,000 crore is not available yet but the share swap agreement between GoI, ONGC and HPCL shareholders would be the crucial thing to watch out in the likely deal.  

OMCs to bear merchant discount rate till 31-March-2017 – do not see significant negative impact on marketing margin of OMCs as digital sales through debit cards account for small portion of volumes. OMC agrees to bear merchant discount rate (MDR) charges till 31-March-2017. We do not expect any significant negative impact on marketing margin and earnings of OMCs as BPCL had clarified in its Q3FY17 earnings conference call that  MDR charges would be applicable only on purchase of petrol and diesel through debit cards while majority of their sales volume through digital mode comes from loyalty programs and credit cards on which OMCs would not be liable to bear MDR charges.

Grasim, Aditya Birla Nuvo, Idea Celluar: Idea-Vodafone deal to be revealed with Grasim-AB Nuvo voting – Positive read thru for Grasim, Aditya Birla Nuvo and Idea Cellular
The Kumar Mangalam Birla group is expected to announce the merger of Idea Cellular and Vodafone India at the same time as it sends out voting notices to shareholders of Grasim and AB Nuvo on their merger in the first week of March as per media reports. The group officials expect concerns of Grasim’s shareholders over Nuvo’s exposure to Idea will be mitigated with the announcement. The development is positive read thru for Grasim, Aditya Birla Nuvo and Idea Cellular.

As per the media reports, Odisha government is likely issue a notice to IOCL for payment of Rs1,485 crore related to VAT for Paradip refinery for the period of Nov-2015 to Dec-2016. We highlight here that payment of VAT by IOCL would mean one time negative impact of Rs2/sh on PAT.   

 OTHER NEWS

Maruti Suzuki further strengthens lead in the passenger vehicle segment; Maruti’s 8 models appear in top 10 selling vehicles In January 2017; positive
Maruti Suzuki (MSI) strengthened its leadership position in the domestic passenger vehicle market in January 2017, with 8 of its models featuring in the top 10 selling brands. The company had 6 models on the top 10 selling passenger vehicles (PVs) list in January 2016. The 8 models featuring in the list were Alto, Swift Dzire, Wgon R, Swift, Celerio, Baleno, Vitara Brezza and Omni. 

V-guard has allotted 8,71,766 equity shares having face value of Rs 1 each to the employees who have exercised the stock options under ESOS 2013. Out of the above shares 80,900, 7,36,245, & 54,621 equity shares were allotted at Rs 1, 48.50 & 99.90 each respectively.  This would amount to 0.29% dilution to current equity base of Rs 3,021.94 lac

Airtel scraps roaming charges on incoming calls, data
Bharti Airtel announced that customers of its network will enjoy free incoming calls/SMS while on national roaming and there will be no premium on outgoing calls, starting April 1, 2017. Airtel's move to lift roaming charges comes in the wake of intense competition in the telecom sector after the entry of Reliance Jio.

Entertainment Network India (ENIL) buys 21 new frequencies in FM auctions
Radio Mirchi, FM brand housed under Entertainment Network India, bought 21 radio frequencies under the second batch of the Phase III of FM radio auctions this year. ENIL, a part of the Times Group, spent a total of Rs 51.3 crore to acquire the new frequencies. These frequencies are expected to become operational towards the end of 2017-18, and will increase the company’s footprints to 64 cities from 43 at present.

MORE NEWS

 'Airtel rolls out 2 aggressive plans to take on Jio prime'
Daiichi moves to block Fortis stake sale again
Nine bank unions to go on strike on Tuesday
Biyani sees no future in speciality retail formats
More layoffs likely as manufacturing sales shrink
JSW group to foray into aviation business
Sebi, RBI discuss monitoring foreign investors in real time
Govt mulls permitting sale of non-food items under FDI policy
Idea-Vodafone deal to be revealed with Grasim-Nuvo voting
Bitcoin firms form self-regulatory body for transparent growth
Buzz on HPC becoming part of ONGC
Lenders get majority stake in GMR's Chhattisgarh unit
Airtel announces free national roaming from April 1
India is among the most open economies, says Jaitley 
KKR leads the race for stake-buy in Bharti Infratel, says Sunil Mittal
Rich Indians taking EB-5 visa route as US shuts down H-1B
Zydus arm gets USFDA nod to sell anti-viral drug
Lupin arm in pact to distribute anti-depressant drug in Japan
NSE algo trading: Sebi begins audit of 15 brokers over unfair access
LIC's total premium income grows 12.43% in nine months of FY17
Coal India units agree to buy back shares, but ratchet up valuations
RIL market cap crosses Rs4 trillion
Agricultural income outside India will be taxable in India
Tata Sons, Docomo to settle $1.17 bln legal dispute, reports Nikkei
IMF says sanctions on Iran dampening economic sentiment
Providence to sell 3.33% holding in Idea Cellular
Telenor India buy won't affect Airtel's financial position: S&P
Odisha govt to issue notice to IOC for payment of dues
Worked hard on cleansing of market, UK Sinha
Govt to employ third party to study arsenic content in rice
‘Mergers would be the least desirable option’
LIC: Bumper equity crop, but bad loans rising too
E-comm crisis unfolds: Vendors fear payment dela

STOCK IN NEWS

1. Quess Corp looks at managing airports, health services
2. Chinese stent maker enters India after NPPA caps prices
3. Lenders get majority stake in GMR's Chhattisgarh unit
4. Declaring war on roaming, says Sunil Mittal as Airtel competes against Jio
5. Providence to sell 3.3% of Idea Cellular stake in block deal
6. Growth in Indian Pharma exports revives in the third quarter
7. After premium sanitary ware, HSIL shifts focus to consumer products
8. ENIL and Sun TV spend big bucks in FM phase 3 batch 2 auction
9. ONGC may acquire HPCL in Rs 44,000-cr deal
10. Idea-Vodafone deal to be revealed with Grasim-Nuvo voting

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