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Thursday, 30 March 2017

30 March 2017 - Views & News

MARKET INSIGHT

Markets are expected to open to open flat to positive. 8980 – 9000 acts as strong support at current levels. Overall bullish stance will hold in market till support zone holds on closing basis. On the upside 9200 – 9218 will be intermediate resistance area to watch for.

Nifty Spot Levels

Support 9080 – 9019 – 8975
Resistance 9167 – 9218 - 9300

GLOBAL MARKET

• The S&P 500 and the Dow were pressured by declines in financial stocks, while consumer discretionary shares lifted the Nasdaq.
• With an August target date set for a highly anticipated US tax reform bill and the quarter nearing an end, analysts expect the market to trade in a tight range.
• Asian shares edged up to near their highest in two years on Thursday, while the dollar benefited from waning expectations that the European Central Bank was poised to end its easy policy.
• The Dow Jones Industrial Average fell 42.18 points, or 0.20 percent, to 20,659.32s

TOP NEWS

The Lok Sabha passed four GST Bills –positive read through; it would boost sentiments for fragmented product segments where the imple mentation of GST could result in shift of market share from unorganized to organized players such as Building material (tiles, plywood, paints, pipes), auto anci (tyres, batteries, light fittings and other products), branded garments among others

Glenmark reports positive results from Phase 3 trial of Mometasone/Olopatadine (GSP 301) fixed-dose combination nasal spray, used in treating seasonal allergic rhinitis.  GSP 301 is Glenmark’s leading candidate for the company’s first New Drug Application with the USFDA. As of January 2017 the annual value of the US nasal spray market was $1.3 billion – Long term positive for Glenmark.

Alkem Labs gets EIR from USFDA for Ankleshwar API plant (used mainly for internal consumption of API) – Positive for Alkem

Thermax Ltd acquires European company Barite (facility of Weiss Ltd) which is into boiler manufacturing. The acquisition is of strategic advantage to Thermax since it provides additional manufacturing capacity for future expansion and expanding its footprints in Eastern Europe. The amount for acquisition is not disclosed. Positive read thru.

Kotak Mahindra bank launches digital banking service, aims to double customer base in 18 months –Positive read thru in the long term. However, since a wide range of market participants  were anticipating a news about a merger which didn’t materialize, there may be a some kneejerk reaction to the stock.

OTHER NEWS

Reliance Industries LImited (RIL) has completed sale of its 76% stake in Gulf Africa Petroleum Corp (GAPCO) to Total SA. RIL has a announced stake sale in GAPCO in June 2016.

Banking Sector: Banks may get Rs 10k-cr relief for troubled power loans – positive read thru
The Government is set to clear an estimated Rs 10,000 crore relief package for banks, which are facing the prospect of loans to 25 mega power projects turning sour, because promoters are unable to find buyers for their capacity

Dabur announces commissioning of Rs 250 crore manufacturing facility in Assam – positive read thru
Dabur India Ltd announced commissioning of its new manufacturing facility in Tezpur, Assam, the largest manufacturing facility for Dabur worldwide. The plant is set up with an investment of Rs 250 Crore and will manufacture the entire range of Dabur's Ayurvedic Medicines, Health Supplements, Hair Oils, Shampoos, Toothpastes, Skin Care and Home Care products.

Reliance Infrastructure: The company has received NHAI’s consent for its planned Rs3000 crore Infrastructure Investment Fund. The company wants to come out with the issue by the end of April. The InvIT will initially own ten of the company’s road projects representing 770kms of highway projects. The development is positive read thru for the stock.

Reliance Defence and Engineering, Reliance Infrastructure: Reliance Defence to exit CDR this week – positive read thru for both the stocks
The company expects to exit CDR by March 31 as per media reports. The company’s debt worth around Rs6800 crore would have extended maturity period of 18 years with lower interest rate. The lenders would convert Rs650 crore debt to equity at a price above Rs60 per share. Post CDR, Reliance Infrastructure would have 31% stake in Reliance Defence and Engineering. The development is positive read thru for both Reliance Defence and Engineering and Reliance Infrastructure.

L&T- The Madras High Court has restrained L&T Realty Limited from selling its 51% stake in L&T South City Projects to Pragnya Group for Rs190 crore. This is due to petition filied by Aditya Birla Real Estate Fund in the court.  Neutral read thru.

Mahindra Lifespace Developers: The company has sold Napean Sea Road, South Mumbai property upon the terms and conditions approved by the Shareholders. Positive read thru for the stock.

TCS and Siemens jin haonds to deliver plant solutions for Connected Digital Enterprise
Siemens product life cycle management (PLM) software business and TCS have expanded their long-standing partnership to deliver a comprehensive set of plant solutions for enabling the connected Digital Enterprise. TCS will participate in the Siemens MOM Expertise Alliance Center (MEAC), a community of highly skilled and strategic partners providing MOM-specific services to manufacturers. This will further enhance TCS’ ability to provide its current and future customers with high performance MOM solutions to enhance manufacturing operations.


MORE NEWS

Nation now gets ready for GST in next three months
'Walmart okay with selling only Made-in-India goods'
Goods will become slightly cheaper after GST: Jaitley
Rupee enters 64-terrain after 17 months, up 13 paise
SC bans sale of non-BS IV vehicles from April 1
Direct recruitment in government jobs dips by 89%
IATA questions laptop ban on some flights to US, UK
Kotak launches zero-charge digital bank account
RInfra's Rs 3,000-cr InvIT fund gets NHAI approval
Rajya Sabha passes Finance Bill
RIL completes Gulf Africa Petroleum Corporation stake sale
Union MF, BOI Axa explore merger option
Coal India plans private mining consultancy foray
Rel Jio's Prime membership base close to hitting 50 million
EU blocks Deutsche Börse's $14-billion takeover of LSE
DBT leads to Rs. 34,000 cr savings for govt: FinMin
Australian company keen to invest in Adani’s coal mine project 
JP Morgan group pays Rs 2.75 cr, settles case with SEBI
Tube Investments rolls out online bicycle brand
Amul vs HUL ice-cream ad case adjourned to Monday
`8.7 lakh telcom forms non-compliant with norms'
India becomes net exporter of power for the first time
Tata ties up with Alibaba to take Tetley tea bags to China
RBI says all payment systems to remain closed on 1 April
Monsanto termination of Nuziveedu Seeds sub-licence pact illegal: Delhi HC
ITR form made simpler, e-filing of income tax to start from 1 April
Expensive valuations reign in bulls despite India stock markets’ rally
Kyrgyzstan for enhanced business, cultural ties with India
Bharti Airtel beats Reliance Jio, becomes fastest network in metro cities
Scramble to exchange money as March 31 deadline nears
Sensex ends 122 pts higher ahead of F&O expiry, SBI soars
EU drug approval plan triggers worries
Fund flows shore up rupee to 17-mth high of 64.86
Bad debt issues spook steel industry

STOCK IN NEWS

• Heavy discounts likely to dispose of car stock
• While telcos merge, investors rush for tower assets
• Centre approves strategic divestment of three loss-making Sail units
• Tata UK expects mobility of skilled manpower
• Daiichi seeks external auditor to scrutinise Singh brothers' assets
• Supreme Court bans sale of BS-III vehicles from April 1
• Coal India plans private mining consultancy foray
• Reliance Jio's Prime membership base close to hitting 50 million
• RIL completes Gulf Africa Petroleum Corporation stake sale
• Madras High Court restrains L&T Realty stake sale in township project
• Tata Motors launches compact sedan Tigor to take on Swift Dzire
• L&T bags Rs 2,400-crore job orders

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