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Friday, 31 March 2017

31 March 2017 - Views & News

MARKET INSIGHT

Indian markets are likely to open on a negative note based on the global cues. Support for the day is placed at 8475 levels and if breaks then further downside expected.

Nifty Spot Levels

Support 9100 – 9019
Resistance 9218 - 9300

GLOBAL MARKET

• Wall Street gained on Thursday, led by financial shares, after data showed US economic growth was stronger than previously reported last quarter, helped by robust consumer spending, and the tech-heavy Nasdaq set a record closing high.
• The energy sector rose for a third straight day, supported by stronger oil prices and a 8.8-percent gain for ConocoPhillips.
• The Dow Jones Industrial Average rose 69.17 points, or 0.33 percent, to 20,728.49.

Market Update:

Sgx Nifty +24 pts
‎Dow +69.17 pts ,Nsdq +16.80 pts , S&P +6.93 pts , Bovespa -262 pts , Ftse -4 pts , Dax +53 pts  , Cac +20 pts , Nikkei +103 pts now , Crude @ $50.27 brl (-0.08), Brent @ $53.01 brl (-0.08) , Gold @ 1242.70 (-2.30), Silver @ $18.142 (-0.06), Euro @ $1.0683, JPY @ $111.1900, INR @ $64.830

Today's Corporate Action 31st Mar  Ex Date

ASHARI Bonus issue 4:1
INFRATEL Interim Dividend - Rs. - 12.0000
SFCL Amalgamation 


TOP NEWS

ALERT: As per media reports, Lupin, Cipla, Cadila are in fray to acquire  the respiratory drugs portfolio of Novartis AG. The portfolio of brands on offer could fetch as much as $500 million in a sale. Novartis portfolio includes top-selling brand TOBI Podhaler, a drug prescribed for symptomatic relief to patients suffering from cystic fibrosis, a genetic lung disorder. The brands are sold in as many as 60 countries by Novartis  - Long term positive for the company who would acquire (win the bidding) as respiratory drugs portfolio are likely to be the next big revenue generators.

Dilip builcon: The company has received letter of Award from NHAI for four laning from Nalagampalli to AP/Karnataka border under NHDP-IV on EPC mode. The project cost is Rs503.1 crore having length of 47.7km which is to be completed in 24 months. The development is positive for Dilip Buildcon.

FUND RAISING


Bank of India to raise Rs 204 crore by issuing shares to LIC on preferential basis at Rs116.8 per share
OTHER NEWS

JMC projects has secured new orders for commercial and residential projects worth Rs1058 crore; positive for Kalpataru Power

IRB Infrastructure: The company’s board has approved acquisition of 34% stake in its subsidiary Aryan Infrastructure Investments (presently IRB holds 66% stake) from promoter and promoter group entity making it wholly owned subsidiary of the company. Neutral read thru for IRB Infrastructure.

Hero Motocorp offers discounts upto Rs 12,500 to clear inventory of BS3 vehicles; to impact profitability in Q4FY17; stock price already factoring higher discounting impact
Hero Motocorp is offering huge discounts to clear the BS3 vehicles inventory after the Supreme Court has banned the sales of such vehicles after 31st March 2017. Hero is offering rebate of Rs 12,500 on its scooters, Rs 7,500 on premium bikes and Rs 5,000 on entry level mass market motorcycles. Hero has about 10-12 days of inventory and is offering higher discounts as it has limited scope of diverting the inventory to export markets. Also as per the company, converting BS3 vehicles to BS4 is cumbersome process and involves additional costs such as logistics and assembly line expenses apart from the cost of material required to be fitted to comply with BS4 regulations and is preferable to clear the inventory thru higher discounts. Given the higher discounting, we expect Hero’s profitability to be impacted in Q4FY17.   

Maruti Ciaz to be sold through Nexa outlets from April 1, 2017.
Maruti Suzuki India mid-size sedan Ciaz will be sold through its premium channel Nexa from April 1, 2017. Nexa has 250 outlets across India and covers around 95% of the cities. With Ciaz joining Nexa family, contribution from the premium retail chain is expected to be more than 15% of total sales by the end of 2017-18.

M&M considers entry of Ssangyong utility vehicles and introduction of electric vehicles in US, China; positive read thru
Mahindra aims to enhance its investments and presence in the U.S. and Chinese markets through its South Korean auto unit, Ssangyong Motor Co. Ssangyong is expecting to decide by mid year on a plant to build in Chinese market whereas for a U.S. entry would take at least three years. Ssangyong had in October 2016 signed an initial joint-venture agreement with China’s Shaanxi Automobile Group Co., the country’s fourth-largest maker of heavy-duty trucks by output. Mahindra is considering introducing high-end electric vehicles made by its Italian affiliate Pininfarina in the U.S. and China.  

Lux Group rejigs growth strategy; eyes Rs 2000-crore sales by 2020 through premiumisation, portfolio extension and venturing into new market and geographies
Lux Group has reworked its growth strategy to target youth, and expects to clock Rs 2,000 crore sales by 2020, on the back of premiumisation of its innerwear brands and portfolio extensions. The company is now focusing on the Rs 2,400 crore active wear market offering a casual and alternative line of clothing. Presently there are seven exclusive stores, and in the next year the company plans to open 14-15 more stores. Lux Industries, which has a strong foothold in export markets including Africa, Middle East and some countries of South East Asia, is also looking at expanding its footprint in European and US markets.  

Zensar Technologies to acquire Keystone India
Zensar Technologies has entered into a slump sale agreement with Keystone Logic Solutions to purchase entire undertaking and business of Keystone india on a slump sale basis. The cost of acquisition stands at Rs 132.4 crore and is an all-cash deal. Zensar expects the transaction to be completed by the first week of April.

Tata Motors to merge wholly owned subsidiary TML Drivelines with self; no impact on consolidated earnings; Neutral
Tata Motors is planning to merge its wholly owned subsidiary TML Drivelines with itself. TML Drivelines manufactures axles, gearboxes, crankshafts and Forgings for Tata motors commercial vehicles. Since Tata Motors fully owns TML Drivelines, the merger will have no impact on the consolidated earnings. Neutral for Tata Motors.

TCS collaborates with SATS for smart watch solution
TCS announced that it has collaborated with airport ground handling and food solutions provider SATS to develop a smart watch solution for airport technical ramp operations. The Technical Ramp Smart Watch solution was designed to increase operational efficiency by streamlining on-ground processes and enhancing communication, productivity and safety through technology.

Century Plyboards (India): The company has commenced newly set up production facility “Purbanchal Timber Industries” at Palasbari, Kamrup in Assam. Positive read thru for the stock.

Bharti Airtel: Airtel Money partners TUCKSEE to provide electronic property rate payment for Ledzokuku-Krowor Municipal Assembly (LEKMA)
MORE NEWS

India becomes associate member of IEA
Top Indian pharma cos in fray for Novartis’ brands
Lenders get no takers for Mallya's properties again
BoM hit by biggest financial fraud due to UPI bug
Govt's view on lower tariffs contradicts policy: Trai
Govt considering MIP on some aluminium products
India is running out of time on NPAs: K V Kamath
Vinod Rai says govt may merge two large banks
Kotak Mahindra Bank to raise Rs 5,400 crore of equity
BPCL, ONGC pip Reliance in overseas fundraising
NSE IPO: Algo issue resolution and defreezing of funds needed, say experts
Dividend payout of Rs 6,580 crore announced by Vedanta
Status quo on merchant discount rate: RBI
L&T Hydrocarbon Engg wins ₹4,000-cr worth global orders
Bank staff plan campaign against wilful defaulters from April 20
Auto companies offer discounts up to Rs. 12,500 on BS-III models
PTC India Financial Services sells IEX stake for ₹133 crore
RBI may keep rates unchanged in April; cut 25 bps in August: BofAML
India may ease rules for foreign food retail before November
Yes Bank share offering succeeds, second time around
Future Lifestyle Fashions to raise Rs450 crore by diluting stake in investee brands
Home loan interest rates too high for Indian buyers: Survey
Nifty ends at record high, Sensex rises 116 points on GST push
Toshiba to go ahead with Nuclear plant in Andhra Pradesh: Government
India, South Korea to cooperate on startups, tech transfer
BHEL commissions 2nd unit of Yeramarus plant in Karnataka
Telecom Min rules out special treatment to Voda-Idea merger
Centre seeks ways to revive SAIL
Fitch maintains rating watch status on Tata Stee
Insurance coverage of TB negligible in India
EPFO defers decision to invest more in ETFs

STOCK IN NEWS
1. Maruti Suzuki to sell Ciaz through Nexa showrooms from April 1
2. Kotak Mahindra Bank to raise Rs 5,400 crore of equity
3. BPCL, ONGC pip Reliance in overseas fundraising
4. Ashok Leyland has a plan for riding out the BS-III ban: MD Vinod K Dasari
5. Zensar Technologies to acquire Keystone Logic for Rs 132 cr
6. Tata Motors' Pune wage pact may improve industrial relations: Experts
7. BS-III ban: Medium & heavy vehicles to face the brunt
8. MTNL to offer 2GB data a day, unlimited calls within network for Rs 319
9. HMSI launches new BS-IV compliant Dio scooter at Rs 49,132
10. M&M considers electric vehicles for US, China
11. Vedanta announces interim dividend of Rs 6,580 cr; re-appoints CEO till Aug
12. Petronas Lubricants targets 5% market share in India, make it exports hub
13. PTC India sells its stake in IEX for Rs 132 crore
14. L&T Construction wins orders worth Rs 1,725 crore
15. L&T Hydrocarbon bags orders worth Rs 4,000 crore
16. Aurobindo Pharma gets USFDA nod for HIV treatment drug
17. Dilip Buildcon bags Rs 3,269 crore road projects in Maharashtra

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