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Tuesday, 25 April 2017

25 April 2017 - Views & News

MARKET INSIGHT

 Markets are likely to open positive. 9300-9340 will be the initial target area to watch on the upside. From a medium-term perspective, 9500-9550 will be the target area to watch out for. On the flip side, 9100-9040 continues to act as a crucial support zone for the Nifty.

Nifty Spot Levels

Support 9150 – 9088 – 9020
Resistance 9274 – 9310 - 9385

GLOBAL MARKET

• US stocks rallied on Monday, tracking a relief rally that swept through Asian and European markets, after centrist candidate and market favourite Emmanuel Macron won the first round of the French presidential election. 
• Pro-EU Macron is expected to beat right-wing rival Marine Le Pen in a deciding vote on May 7 according to polls, which were mostly right about the first-round results.
• The Dow Jones Industrial Average rose 216.13 points, or 1.05 percent, to 20,763.89.

MARKET UPDATE

‎Dow +216.13 pts ,Nsdq +73.30 pts , S&P +25.49 pts , Bovespa +628 , Ftse +150 pts , Dax +406 pts , Cac +255 pts , Nikkei +73 pts now , Crude @ $49.29 brl (+0.06), Brent @ $52.16 brl (+0.04) , Gold @ 1278.67 (+1.17), Silver @ $18.005 (+0.073), Euro @ $1.0865, JPY @ $109.6400, INR @ $64.430

Today's Corporate Action 25th Apr  Ex Date

SANOFI
Final Dividend - Rs. - 50.0000

Today's Key Result 25th Apr

Wipro (Cons 2092 cr -6% Yoy Time-After Mkt) Canfin Homes,ICICI Prud,Idfc Bank,Int Paper,Kewal Kiran,Lic Housing,M&M Fin,Swaraj Eng,Welspun India,Zee Learn

TOP NEWS

Sun Pharma: Taro gets USFDA approval for felbamate oral tablets; an anticonvulsant used in the treatment of epilepsy – Positive for Sun Pharma.

Lupin gets USFDA nod for Estradiol Norethindrone Acetate, an oral contraceptive – Positive for Lupin.

Strides Shasun: USFDA inspection at the API Facility of the Company at Cuddalore completed with Zero 483 observations – Positive for Strides Shasun

Arvind launches its ready-to-wear brand (athletic leisure wear) in Gujarat,Karnataka and plans to scale up in other states in the coming months – positive read thru for Arvind as this is in line with its strategy to concentrate on branded apparel space rather than fabric business…(detail inother news)

Passenger vehicle players expect strong demand from cab aggregators; expect the contribution to double in the next three years; positive read thru for Maruiti Suzuki, M&M and Tata Motors …(detail in other news)

Rubber board to focus on increasing rubber productivity; aims to fully meet the rubber demand domestically as against current rate of 70%; production boost will keep rubber prices soft; positive for tyre makers such as Apollo Tyres, JK Tyres, Ceat and MRF ….(detail in other news)

Maruti Suzuki to launch the new 3rd generation Dzire on 16th May 2017.  Positive …(details in other news)
 OTHER NEWS

Emami plans to push ‘HE’ as a power brand; expects it to break even over the next 2-3 years – positive read through for the stock
Emami is planning to develop its men’s grooming brand ‘HE’ as its sixth power brand. Emami is in “investment” mode (with regard to the HE brand). The company will continue to come up with “unique” and innovative offerings under the brand. The idea is that HE stands out in an otherwise me-too market. The company sees lot of potential in the men’s grooming category and expects the brand to break even in another 2-3 years after attaining certain scale in the domestic market. The five other brands marketed globally are Navratna, Fair and Handsome, Boro Plus, Zandu and Kesh King. Some, such as Fair and Handsome and Boro Plus, have wider product offerings for the overseas market. They feature geography-specific differentiations, while keeping the brand similar to the one that is marketed in India.

Arvind launches its ready-to-wear brand (athletic leisure wear) in Gujarat,Karnataka and plans to scale up in other states in the coming months – positive read thru for Arvind as this is in line with its strategy to concentrate on branded apparel space rather than fabric business
Arvind Limited announced the launch of its ready-to-wear brand which will be available across its 50 stores in Gujarat and Karnataka to begin with. The ready-to-wear brand called Arvind, which will have clothes under three categories of "work, leisure and ceremonial," will be available at the company's "The Arvind Store" across Gujarat and Karnataka before expanding to its 170 stores across 100 cities. The brand consists of products which offers athletic leisure as a trend along with a technologically enabled bi-stretch super light outwears in both formal and ceremonial categories. The company is looking at a turnover of Rs 100 crore in the next 3-5 years in a $10 billion organised retail brand market which is growing at a rate of 15-16 per cent year on year

Unitech: The Supreme Court would attach Unitech’s property if the company fails to deposit the interest amount due to 39 homebuyers of its Vistas project in Gurugram by 9 May as per media reports. Negative read thru for the stock.

Maruti Suzuki to launch the new 3rd generation Dzire on 16th May 2017.  Positive
Maruti Suzuki will launch the new 3rd generation Dzire on 16th May 2017.The new vehicle will undergo a generation change as and will have a host of new features like projector headlamps, DRL as well as safety features like ABS, EBD, dual front airbags as standard. The new version of the compact sedan is based on the Baleno's platform which makes it 85 kg lighter for the petrol versions and 105 kg lighter for the diesel trims compared to the outgoing version. The launch of the upgraded version will boost the sales help gain market share in the segment. Positive

Maruti Suzuki SUV “Vitara Brezza” overtakes M&M Bolero to become the top selling SUV; waiting period points at sustained demand; positive read thru for Maruti Suzuki
Maruti Suzuki compact utility vehicle “Vitara Brezza” has manged to evolve as the best selling product in the utility vehicle segment in FY17 . Brezza sold 1,08,640 units as against Bolero volumes of  69,328 units. Further, a waiting period of about 4-5 months for Brezza points at sustained volumes going ahead. Positive read thru  

Biocon to consider bonus issue in its board meeting on 27th April 2017 (Thursday).

Rubber board to focus on increasing rubber productivity; aims to fully meet the rubber demand domestically as against current rate of 70%; production boost will keep rubber prices soft; positive for tyre makers such as Apollo Tyres, JK Tyres, Ceat and MRF
Rubber Board is bringing more rubber untapped areas into production by grouping farmers under ‘Tappers Bank’, which works more like a self-help group. The Board has launched this on a pilot basis, and 60 rubber-producing societies were identified for it. The Board is seeking to achieve the current rubber demand of around 10 lakh tonnes by producing domestically as against the current production run rate of 7 lakh tonnes. Increased rubber production will keep the domestic prices under check and is positive for tyre players. 

Passenger vehicles: Small cars taxation under GST would be marginally higher (28% tax) as against current rate of 27-27.5%. Luxury cars (above 2000 cc) would be taxed at marginally lower rate of 43% as against current levy of 44.5%. However, mid size cars upto 1500 cc are taxed at 38.5% and would continued to be taxed at same level under the GST. Neutral read thru as any increase/decrease is marginal and is likely to be passed onto the end consumer.

Passenger vehicle players expect strong demand from cab aggregators; expect the contribution to double in the next three years; positive read thru for Maruiti Suzuki, M&M and Tata Motors
The demand from cab aggregators mainly Uber and Ola accounts for 8-10% of retail passenger vehicle sales and is expected to double in by FY 2020 as per media sources. Carmakers are gearing their organisations towards capitalising on this growth opportunity, a clutch of them creating separate verticals with dedicated teams. Models such as Maruti’s WagonR, Ritz, Dzire, Tata’s Zest and Bolt, Mahindra’s Xylo and Verito have made the most of this growth. While the idea of shared mobility gives volumes growth, it also helps sell base variants or slow moving models that don’t enjoy much traction with individual buyers. Positive read thru.

Heritage Foods to enter into Joint Venture with an European dairy firm
Heritage Foods Limited (HFL) announced that it is in the process of entering into a Joint Venture (JV) with an European dairy firm for manufacturing and marketing yogurt in India. Being the leading player in curd segment, the company is going to launch varied products in Yogurt market, by tying up with its international partner. In continuation to this, the company is going to launch new products very soon in beverages segment. This will further strengthen the current large portfolio of value added products. The negotiations are in the final stage with an European company and will be finalised in a month. The company aims to achieve $ 1 billion in the next five years from now.
  
PNC Infratech: Achieves financial closure in its hybrid annuity project – positive read thru for the stock
PNC Infratech has received the letter dated April 21, 2017 from National Highways Authority of India regarding the achievement of Financial Closure on April 03, 2017 for the project 'four laning / two laning with paved shoulders from 0.00 km to 83.453 km of Dausa-Lalsot-Kauthun section of NH-11 A (Extension) in the state of Rajasthan under NHDP IV, on Hybrid Annuity Model'.

Reliance Industries Limited (RIL) and BP Plc are likely to buy Niko Resources 10% stake RIL’s gas discovery in block NEC-25 as per media reports. The block is expected to have reserves to the tune of 1.032 trillion cubic feet.

Wipro and Demisto Team To Deliver Security as Managed Service
Demisto announced a partnership with Wipro to deliver integrated and automated incident response as a managed service. Wipro's Cyber Threat Management Platform combined with Demisto's solution will provide customers with security orchestration, incident management and interactive investigation capabilities.

TCS launches solution to help retailers integrate payments
TCS has launched 'Merchant Pay' to help retailers seamlessly integrate payments across multiple channels like Aadhaar, credit and debit card as well as phone-based payments through a single interface. Merchant Pay' will allow consumers to transact by using fingerprint and confirming identity at stores that are enabled with this platform.

Infosys in process of adding two new members to board
As per media report, Infosys is in the process of expanding its board of directors by inducting two more members. The company's founders are in the process of submitting their list of candidates to the company's lawyers. Infosys currently has a 10 member board; the company can have up to 15 members on its board after recently amending its Articles of Association.

   MORE NEWS

RIL beats Street again, profit grows 11.54% YoY 
Philips posts seven fold jump in profits in Q1
Jet adds 22 new flights across domestic network
Unitech given stern warning by Supreme Court
'TCS, Infy accounted for only 8.8% of total H-1B visas'
Lankan trade union against IOC's Trincomalee refinery
Govt eyeing neighbours to boost pharma exports
Rel Jio net loss widens to Rs 22.5 cr in Oct-March period
Tata Power may sell cross-holdings over Mundra tariff order
Small funds to complain on IPO allotment to Sebi
Wall Street surges, Nasdaq hits record on French vote result
RIL's oil & gas revenue drops 30.9% at Rs 5,191 cr
Logistics firms see better fleet utilisation under GST
SBI, Credai team up to provide fillip to realty sector 
OIL crude production up 9.06%; ONGC up 3.32% 
Rcom, Aircel get shareholders' approval for merger
Dilip Buildcon bags taxi track construction project at Goa airport 
UltraTech net profit down 11% at Rs. 726 cr
First State Investments hikes stake in Cyient to 9.45%  
NHAI hits the road to woo investors for Rs5,000 crore masala bond sale
ONGC plans $11 billion investment to boost gas production by 30%
FIPB refers Gland Pharma FDI proposal to CCEA for approval
Rupee closes stronger against US dollar
TCS hired 11,500 in overseas markets in fiscal 2016-17
FIPB refers Rs 4,315-cr Gland Pharma proposal to CCEA, clears 6 FDI proposals
Government to auction mines for coal-to-gas, CTL projects in FY18
Armed forces stores suspend sale of Patanjali's amla juice
Insurance companies should give terms & conditions with policy: NDCRC
Rs 1,600-crore booster likely to Incredible India 2.0 campaign
Paswan rules out raising duty on wheat import
Govt extends SIPP scheme for 3 years till March 2020

STOCK IN NEWS 

1. Nasscom says Indian IT firms get 20% of H-1B visas, pay higher wages
2. Reliance Jio net loss widens to Rs 22.5 cr in October-March period
3. Nexus still holding out on merger of Flipkart-Snapdeal
4. Rising commodity prices put pressure on carmakers' margins
5. Tata Power may sell cross-holdings after Mundra tariff order
6. India Inc overseas borrowing rises 11.6% to $1.69 billion in March
7. Reliance lifts Jio investment above Rs 1.9 lakh cr after record year
8. DCB Bank launches share sale to institutions
9. Jet Airways adds 22 new flights across domestic network
10. HCL to acquire US-based firm UFS for Rs 199 cr
11. Maruti seeks to revive compact sedan segment with new Dzire
12. Deposit interest or property may by attached: SC to Unitech
13. TCS, Infosys accounted for only 8.8% of total H-1B visas: Nasscom
14. Heritage Foods open to further acquisition
15. Reliance Communications-Aircel merger gets shareholders' approval.

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