}

Wednesday, 31 May 2017

31 May 2017 - Views & News

MARKET INSIGHT

Nifty Spot Levels

Support 9550 – 9500 – 9400

Resistance  9638 – 9700 - 9780

GLOBAL MARKET

US stocks inched lower on Tuesday, with the S&P 500 retreating slightly from a record, as weakness in the energy and financial sectors outweighed gains in technology shares.
Dow Jones   fell 50.81 points, to 21,029.47, the S&P 500 lost 2.91 points, to 2,412.91 and the Nasdaq Composite dropped 7.01 points, to 6,203.19
Oil prices fell to keep U.S. crude below the $50 a barrel mark on concerns output cuts by the world's big exporters

MARKET UPDATE

Dow -50.81 pts ,Nsdq -7.00 pts , S&P -2.91 pts‎, Bovespa +201 pts , Ftse -21 pts , Dax -30 pts , Cac -26 pts ,  Crude @ $49.61 brl (-0.05), Brent @ $52.19 brl (-0.02) , Gold @ 1261.89 (-0.21), Silver @ $17.359 (-0.06), Euro @ $1.1172, JPY @ $110.8400, INR @ $64.635

Today's Corporate Action 31st May  Ex Date

PAPERPROD Dividend - Rs. - 3.0000
SANWARIA Interim Dividend - Rs. - 0.0500

Today's Key Result 31 May

Castrol 

TOP NEWS

MCSI rebalancing with effect from close of May 31: Key gainers – Largecaps: ICICI Bank, REC, Indian Oil Corp;  Key gainers -- Smallcap: Avanti Feeds, Endurance Tech, Divi’s Lab, Dr Lal, Birla Corp, L&T Info

Aurobindo & Glenmark in focus: USFDA approves first generic version of Strattera (atomoxetine) to treat attention-deficit/hyperactivity disorder (ADHD) in pediatric and adult patients. Aurobindo, Glenmark, Apotex Inc & Teva Inc have received approval; Strattera had sales of ~ $ 850 mn (~Rs 5500 crores) in US – Positive for Aurobindo & Glenmark.

Petronet LNG and Gujarat Gas Limited has signed non-binding MoU to explore dispensing and marketing of LNG at CNG stations of Gujarat Gas Limited – positive for Petronet LNG


Petronet LNG (PLNG): Indian Oil Corporation (IOCL) as per media reports is planning to increase its contracted volume of LNG at PLNG’s Dahej terminal by additional 1mmt (IOCL currently has 1.5mmt of capacity booked at PLNG’s Dahej terminal) – positive for PLNG as this would further boost volume visibility for PLNG.

OTHER NEWS

Nestle launches iron fortified Maggi noodles – long term positive
Nestle India launched iron fortified Maggi noodles aimed at iron deficient (anaemic) people in the country. The company believes that with 2.5 billion portions of Maggi Masala noodles consumed annually in India, it will have a major impact.

Eveready to form JV with McLeod Russel India
Eveready plans to enter into a joint venture with tea growing firm McLeod Russel India for development of the packet tea business through a separate entity. The joint venture, if finalised, will bring their skills of marketing and distribution to focus and develop the packet tea business.  The alliance will enable McLeod to have direct access to the Rs 10,000 crore packet tea market.

 

Tata Motors (Jaguar Land Rover) cuts select model prices by up to Rs 10.9 lakh in India to pass on benefit of lower tax under GST; Neutral
Tata Motors-owned Jaguar Land Rover (JLR) has reduced prices of select models by up to Rs 10.9 lakh from immediate effect to pass on benefits of new tax rates under GST expected to be rolled out in July. The estimated price reduction post GST will be up to 12% and will vary from state to state on a model-wise basis. JLR move is in line with other luxury players such as Mercedes who have announced price cuts to pass on benefits of lower tax rate under GST

Jindal Polyfilms is in advanced negotiations to acquire the European operations of DuPont Teijin Films for $300 mln

Jindal Steel and Power announced that a minor fire broke out at an under-construction ancillary unit at the company's plant in Angul, Odisha, but operations at the plant were not affected - Neutral

Aditya Birla Fashion plans to trim Forever 21 to turn the label profitable – positive read thru
ABFRL will downsize and right size the Indian franchisee outlets of US brand Forever 21, in changes aimed at turning the label profitable by the end of this fiscal. ABFRL will open more economically viable Forever 21 stores. There are 17 Forever 21 stores in the country, a majority of which are in the range of 15,000 sq ft to 20,000 sq ft. ABFRL plans to roll out about 15 new 8,000 sq ft to 12,000 sq ft stores this fiscal and will also resize two of the existing stores, which are much bigger in size. This is in line with ABFRL’s target of turning Forever 21 positive in FY18. It is going to come both through some of the levers on the margin side as well as the rapid expansion and the right business model through new stores.

Banking Sector: As per media reports the Banks have urged RBI to relax S4A norms and allow them to spread losses arising out of such restructuring to be spread over several quarters. The Bankers have demanded that S4A should be permitted even if sustainable portion of the debt is under 50% so that speedy resolution of stressed asset can take place – Neutral read thru, however in case of any such relaxation given by RBI it can be a booster for NPA resolutions.  

IOCL is in talks with Gujarat State Petroleum Corporation (GSPC) to pick up stake in its upcoming Mundra LNG terminal (which is expected to get completed in FY2018).

Oil marketing companies (OMCs – IOCL, BPCL and HPCL) as per media reports will have to bear an additional burden of Rs95 crore for procuring ethanol with the introduction of GST – largely neutral for OMCs given small amount of additional duty burden

Oil and Natural Gas Corporation (ONGC) has submitted its final views on merger with Hindustan Petroleum Corporation (HPCL) to oil ministry and has favored vertical integration with HPCL as per media reports. ONGC expects that merger with HPCL will fast track its plans for an entry into fuel retailing business. However, in the recently held analyst meet ONGC management has restrained from providing any update on the progress of merger of HPCL with ONGC and have mentioned that the decision has to be taken by the government and oil ministry.

Oil ministry targets to double oil production from nomination blocks through implementation of new EOR policy 
Oil ministry as per media reports is expected to formulate a new enhanced oil recovery (EOR) policy for nominated oil and gas blocks given to ONGC and Oil India. Under the new EOR policy the oil ministry will monitor the progess of EOR implementation for augmentation of oil and gas production for nomination blocks. If the oil ministry is not satisfied with the progess of EOR implementation then it will auction EOR contracts to private players to monetise oil and gas production from aeging nomination blocks. Oil ministry targets to double oil production from nomination blocks through implementation of EOR techniques under new policy
  
MORE NEWS 

CSO mulls online data collection for IIP
Niti Aayog proposes total privatisation of Air India
Gold imports shrink 13.5% to $27.4 bn in FY17
Don’t believe rumours, GST roll-out on July 1: Adhia
'India waiting with open arms for German investments'
'India e-education mkt to be worth $1.96 bn by 2021'
Jet Airways Q4 net profit at Rs 23 crore
PNB cuts MCLR by 0.05% for select maturities 
NSE 'unfair access' probe reaches critical stage
PFC in the red as NPAs rise 300%
Govt firm on e-platform plan despite chemists strike
Steel makers may benefit from low ore prices: Icra
Sebi puts in place disclosure norms for issuance, listing of green bonds
L&T Construction bags orders worth Rs 5,146 crore
TRAI rules on tariff assessment in a month, says R S Sharma
Monsoon to stay active for next four days over South, NE
Tata Global recovers from losses; posts ₹84-cr profit in Q4
2 panels to give inputs on investments, e-commerce
Centre makes upward revision in 2016-17 horticulture output 
M&M net profit jumps 20% to Rs. 725 cr
Coal available aplenty, yet thermal plants face ‘shortage’ 
Hindalco Q4 profit rises 25% to Rs503 crore
Adani’s Australian coal project on track after royalty agreement
Environment ministry panel defers clearance to 600 MW Tawang power project
RBI to issue new pink-green one rupee notes
IDFC Alternatives eyes deals in stressed thermal power sector
Jet Air Q4 Net nosedives to Rs 23 cr on low fare, fuel cost
Tourism, Culture ministries make Aadhaar mandatory for beneficiaries
Potential of e-com exports for MSMEs at $26 billion: Report
USL to start selling properties previously owned by Mallya
Cox & Kings to demerge forex division into a separate financial services company
Monsoon on time raises hopes for bumper harvest
RBI meets top bankers on NPA resolution
ONGC favours vertical integration with HPCL
Phone war pain goes beyond RCom’s sibling spat

STOCK IN NEWS

 • The control and management of debt-ridden automobile component maker Amtek Auto might slip out of the hands of its current promoters as they seek large investments in the company to bring down debt.
Moody's downgrades RCom on account of weak performance, 'fragile' liquidity
Apollo, Everstone eyeing stake in Catholic Syrian Bank post Fairfax deal
Piramal Finance enters auto space, invests Rs 565 cr in two component cos
Cox & Kings demerges forex biz, to launch NBFC for travel, student loans
Eveready to form JV with McLeod Russel for packet tea business
JLR slashes select model prices by up to Rs 10.9 lakh to offer GST benefits
Adani's Carmichael coal mine seals royalty pact with Queensland govt
After positive Q4 results, Power Grid plans capex of Rs 25,000 cr for FY18
RCom assures lenders that it will reduce its Rs 25,000 cr debt by Sept 30
Nestle India launches iron-fortified Maggi noodle for anaemic people

Tuesday, 30 May 2017

30 May 2017 - Views & News

MARKET INSIGHT

Markets are likely to open weak. Nifty to extend beyond the short-term target of 9655 and head towards the medium-term target of 9850. On the flip side, 9530-9500 is a key support area to watch out for.

Nifty Spot Levels

Support 9547 – 9500 – 9400
Resistance  9638 – 9700 - 9780

GLOBAL MARKET

US markets were closed yesterday.
Asian Market: Japan markets trading weak.

MARKET UPDATE

Sgx Nifty -22 pts ‎US Mkt Clsd , Bovespa -324 pts , Ftse Clsd , Dax +26 pts , Cac -4 pts , Nikkei -77 pts now , Crude @ $49.96 brl (+0.16), Brent @ $52.58 brl (-1.23) , Gold @ 1266.87 (+0.11), Silver @ $17.397 (+0.07), Euro @ $1.1129, JPY @ $111.1800, INR @ $64.519

Today's Corporate Action 30th May  Ex Date

DISHMAN Amalgamation 

Today's Key Result 30th May

Hindalco( 491 cr +38% Yoy Res During Mkt) M&M (651 cr +12% Yoy Res During Mkt) Alok Inds,Amtek Auto,Andrew Yule,Asian Granito,Aurion Pro,Axiscade,Beml,Berger Paints,Bgr Energy,Bombay Burmah, Chemfab Alkali,Db Realty,Delta Corp, Finolex Cable,Gitanjali Gems,GMR Infra,Hcl Info,Heg,Hercules Hoist,Jbf Inds,Jyoti Structure,Lokesh Machine,Mtnl,Mawana Sugar,Mercator,Moil,Monnet Ispat,Nahar Spin,Natco Pharma,NHPC,Nitin Fire., Oricon Ent,Ponni Sug,Ramco Cement,Rec Ltd,Simplex Infra,ARC,SAIL,Tata Global,Thermax,Ttk Prestige,Ttk Health, Ucal Fuel,Unichem Lab,Vakrangee,Wabco Ind,Zf Steering

TOP NEWS

Agri Sector: Acreages under kharif planting is gaining pace with early trends indicating to a increase in sowing of cotton, pulses and oilseeds. As per the Agriculture Ministry data, till May 26, kharif planting increased by 11% YoY to  69.16 lakh hectares on account of timely onset of the South-West monsoon…. Positives for Dhanuka Agritech, PI Industries, Insecticides India, kaveri seeds among others.

Infra: Strong operating performance by Sadbhav Engg and Gayatri Projects confirms our positive stance on mid-sized construction & engineering companies (see results in detail in the Investment Call section)

ADAG group stocks continue to tunble on news of loan default – Negative sentiments to prevail in Rel Comm, Rel Power, Rel Infra, Rel Capital

L&T wins orders worth Rs5146crore across business segments of Power T&D (Rs2780crore), Water effluent treatment (Rs1292crore), Communication business (Rs221crore), Building & Factories (Rs534crore) and Metallurgical and Materials (Rs319 crore); positive…..(9:20am)  
  
MORE NEWS 

RCom seeks government's help for telecom sector
India loses global market share in 61 export items
Order book of 50 road cos may touch Rs 1L cr: Crisil
Oil India reports 96 per cent drop in the fourth-quarter profit
Crude oil upside capped at $55 as Opec disappoints
Labour reforms will create quality jobs: Bandaru Dattatreya
L&T Q4 net profit up 29.5% , announces 1:2 bonus
World Bank cuts India's growth estimates in FY18 to 7.2%
Sebi cracks the whip on p-notes
Mukesh Ambani invests Rs 12K cr in gas pipeline firm RGTIL
IDBI Bank mulls action under bankruptcy code in 10 cases
Pharma funds worst sectoral performers in a year
Solar panel equipment to attract 5% GST: Adhia
Tata Power Solar revenue doubles to Rs. 2,262 cr
Cess to yield Rs. 55,000 cr in first 9 months of GST rollout
Pradhan to take up input tax credit issue with Finance Minister 
PowerGrid net up 22% at Rs. 1,916 cr in Q4
Escorts posts 3-fold rise in net profit
Sun Pharma shares plunge nearly 12% on bleak FY18 forecast
Reliance Industries eyes 10% market share in fuel retail
GST likely to cool retail inflation by up to 50 bps: economists
ONGC looking to aggressively expand acreage under exploration
Fitch downgrades IDBI Bank, keeps outlook stable
Cement demand growth to recover to 4-5% in FY18: ICRA
New coal policy to benefit private independent power plants: ICRA
GST will help in evolving India as tax-compliant society: Arun Jaitley
Tech Mahindra sounds warning, says Trump’s visa policies will damage the IT sector
Sebi to narrow P-note route, proposes $1,000 fee on each investor
Merkel Signals New Era for Europe as Trump Smashes Consensus
Margins improve for gold loan companies
Pricing freedom for ONGC small fields in the pipeline
Govt should overrule protests on AI privatisati

STOCK IN NEWS

1. India Power Corp to lift generation capacity
2. Road EPC companies set for 15% topline growth in FY18: Crisil
3. Mukesh Ambani invests Rs 12,725 cr in gas pipeline firm RGTIL
4. GST: Tata Steel can sell Kalinganagar products beyond Odisha
5. Hiranandani mulls JV worth Rs 3,000 crore
6. RCom shares, bond continue to tumble amid debt concerns
7. Dabhol impairment pulls NTPC's profit down 25%
8. KVB to raise Rs 760 cr via rights issue, price fixed at Rs 76 a share
9. Indian oilseeds fall to multi-year lows on supply

Monday, 29 May 2017

29 May 2017 - Views & News

MARKET INSIGHT

The Nifty is likely to open flat. Nifty is into new orbit where it can face resistance at 9700 level. The support for Nifty is at 9500 level.

Nifty Spot Levels

Support 9532 – 9470 – 9400
Resistance  9634 – 9700 - 9780

GLOBAL MARKET

US stocks ended mixed on Friday ahead of the long holiday weekend. The S&P 500 and Nasdaq eked out record closing highs, and the S&P 500 posted a seventh straight session of gains, said a Reuters report.
The US market will be closed on Monday for Memorial Day, it said.
The Dow Jones Industrial Average ended down 2.67 points, or 0.01 percent, to 21,080.28.

MARKET UPDATE

‎Dow -2.07 pts ,Nsdq +4.94 pts , S&P +0.75 pts , Bovespa +858 pts , Ftse +29 pts , Dax -19 pts , Cac -0.52 pts , Nikkei +15 pts now , Crude @ $49.91 brl (+0.11), Brent @ $52.63 brl (+0.12) , Gold @ 1268.11 (+0.11), Silver @ $17.387 (+0.06), Euro @ $1.1174, JPY @ $111.2300, INR @ $64.533

Today's Corporate Action 29th May  Ex Date

YESBANK Dividend - Rs. - 12.0000

Today's Key Result 29th May

Auropharma Bhel BPCL L&T Power Grid A2Z Infra,Aban,Bajaj Elect,Balmer Lawrie, Bel,Camson Bio,Camson Seeds,Coal India,Dcm Shriram,Dreding Corp,Energy Develop,Escorts,Gayatri Proj,Gillander, GSFC,Gujarat Flouro,Harr Malayalam, ILFS&Transport,Jagran,Jp Associate,Jp Power,Jubliant Food,KCP Sugar,Kirloskar Elect,Majestic Auto,Man Infra,Majestic Auto,NH,NHPC,NTPC,OIL,Renuka Sug,Rpp Infra,Sonata Soft, Tfci,Tidewater,TNPL, Ugar Sug,UJAAS,Yuken  AlphaGeo, BanariSug, BEL, BHEL, BIL, BPCL, Brooks, CerebraInt, CLLimited, Coal India, CUB,  DSKulkarni, Dynamatech, EDL, EKC, Escorts, GNFC, GreenPly, GSFC, GuficBio, GujCarb, GujFluoro, IL&FS Trans, Jagran, JindalSaw,  KRBL, Lambodhara, Lovable, LT, Manpasand, Max India, MMTC, Naukri, Nesco, Powergrid, Purvankara, Rana Sugar, Riddhi SIddhi Gluco, Ruchi Soya, Sadbhav, ShilpaMedi, SJVN, SundrmBrak, Suprajit, Talbros, TFCIL, TGBHotels, TNPL, VardmnPoly

TOP NEWS

Indian Oil Corporation (IOCL): Government is planning to sell a 3% stake in IOCL to fetch around Rs6400 crore as part of its disinvestment plan for FY2018 as per media reports  - Negative read thru (expected to come at discount to market price); we have already downgraded our stance to neutral from positive on the stock.

Hindustan Petroleum Corporation Limited’s board of directors have recommended issue of bonus shares in the ratio of 1 equity shares for every 2 existing equity shares subject to approval of the shareholders.

Maruti Suzuki Targets to sell 3 lakh cars annually with automatic transmission by 2020; realizations to be higher: Positive read thru…..(details in other news)
  
OTHER NEWS

Maruti Suzuki Targets to sell 3 lakh cars annually with automatic transmission by 2020; realizations to be higher: Positive read thru.
Maruti Suzuki India is targeting to sell 3 lakh units of vehicles equipped with different automatic transmission technologies by 2020. Initially the company aims to sell 1.5 lakh vehicles by end of FY2017-18 and then achieve the 3lakh vehicle mark by 2020.Maruti Suzuki currently sells around 94,000  vehicles annually with AGS (automated gear shift), AT (automatic) and CVT (continuously variable transmission). It is counting on the more affordable AGS technology to drive sales growth of cars with automatic transmission. Focus on Automatic transmission technologies would help the company boost sales volumes and gain market share.

M&M: Mahindra & Mahindra is eyeing a capacity of 5000 electric vehicles per month by 2019 from the current capacity of 400 vehicles per month. The company sees the demand for electric vehicles coming from the shared mobility space. 

Reliance Industries Ltd is targeting to double its market share in fuel retail business to 10% in the next two-three years from currently around 5% as per media reports.

Raymond lines up Rs 350 cr for capex & retail expansion. Of the Rs 350 crore, Rs 200 crore will be allocated to manufacturing expansion, both in India and offshore, while Rs 150 crore will go towards retail expansion. This will help ramp up its apparel sale and grow the fabric business over the next few years.  The company is setting up a large suiting manufacturing plant in Ethiopia in Africa that will be operational this year and has also undertaken a significant expansion in Amravati in Maharashtra for cotton fabric. Raymond is also looking to expand its retail presence to about 1,500 stores by 2020 – long term positive

Idea Cellular: Brookfield Asset Management in talks to buy towers of Idea, Vodafone
According to media news, Brookfield Asset Management is in advanced talks with Idea Cellular and Vodafone India to buy the standalone telecom towers business of the two mobile phone companies in a combined deal. The combined enterprise value of the towers is likely to be about $1 billion (Rs 6,454 crore), though the sellers have been pushing for a valuation of over $1.3 billion.

Petronet LNG: India is in formal discussion with Mauritius government to set up of LNG plant in Mauritius as per the media reports. Although the details about capacity and capex of the plant has not been disclosed but Indian government has asked Petronet LNG to send a team to Mauritius to work out modalities of the LNG plant.

MORE NEWS 

Brookfield in talks to buy towers of Idea, Vodafone
Regulators RBI, Sebi step up NSE algo probe
EPFO to invest Rs 20,000 crore in equities in 2017-18
FPIs stay bullish on India, pump in $4 billion in May
RBI guidelines on P2P lending platform likely by July
Various tax slabs under GST worry traders: CAIT
IOC overtakes ONGC, become most profitable PSU
Next big wave of liberalisation in FDI on the cards
Taxing farm income is 'politically challenging', says top economist
AIITEA mulls IT Employees United Front to address job cuts
Coal India's April coal despatch grows 6% to 45 mn tonnes
Maruti Suzuki targets selling 3 lakh automatic cars annually by 2020
Introduce indemnity clauses with suppliers on tax compliance: Expert
India is second most complex tax jurisdiction: Deloitte
CBDT committee to review ‘naming, shaming’ of tax defaulters 
PMO to take a call on imposing customs duty on mobile phones 
Cognizant layoff plea closed in favour of sacked staff: Govt
RCom Q4 loss at Rs. 948 cr on disruptive pricing, competition
Fairfax sells 12.18% stake in ICICI Lombard General Insurance
Adani Power’s Q4 loss widens to Rs4,960 crore after SC decision on compensatory tariff
Raymond to invest Rs350 crore in capex, retail expansion
P-note investments hit 4-month low of Rs1.68 trillion in April
Severe underemployment more serious than unemployment: Niti Aayog
Every deptt should disclose demonetisation details: CIC
GST gains to be ‘far less’ than initially envisioned: Nomura
Poor show by banks, private investors challenge for economy: Arun Jaitley
Government proposes strict norms for registered valuers
ITC Q4 net profit up 12% to Rs 2,669.47 cr
Tech Mahindra Q4 net drops 31% to Rs588 cr
RCom hit by mobile price war
Sugar production may see marginal increase
Patanjali joins traders, industry in demanding lower GST rates

STOCK IN NEWS

1. Ashok Leyland to have three-pronged approach for electric buses
2. GST, monsoon to ensure cement prices remain subdued in near term
3. IOC seeks 2,700 acres to expand Paradip petrochem project
4. Torrent Pharma turns towards Brazil, Germany as share of US biz halves
5. Largely unaffected by visa issue, planning EU expansion: Mphasis
6. IOC overtakes ONGC to become India's most profitable PSU
7. Coal India's April coal despatch grows 6% to 45 mn tonnes
8. DLF's FY17 sales booking dips 63% to Rs 1,160 cr due to slowdown in demand
9. BSNL plans to make satellite phone service accessible to all by 2019
10. Maruti Suzuki targets selling 3 lakh automatic cars annually by 2020
11. NTPC emerges as key off-taker of private solar power projects
12. DLF to see money flow in from GIC stake sale by October
13. L&T Realty, the property development arm of construction and engineering giant L&T, is betting on bigger projects, lower pricing and faster execution to boost its growth. 
14. Adani has to pay royalties for coal mine: Australia state premier
15. Bharti Airtel is offering 1,000 GB free data on select broadband plans

Friday, 26 May 2017

26 May 2017 - Views & News

MARKET INSIGHT

Nifty is likely to open on a flattish to negative note based on the global cues. Bias remains positive for the day as long as nifty holding 9430 levels

Nifty Spot Levels

Support 9430 – 9400
Resistance  9532 - 9600

GLOBAL MARKET

US stocks rose on Thursday, with the S&P 500 and Nasdaq Composite hitting new highs, helped by gains in the consumer discretionary sector after strong reports from Best Buy and other retailers.
Fed officials also proposed a plan to wind down its USD 4.5 trillion of debt securities, including a limit on how much would be allowed to fall off the balance sheet each month.
The Dow Jones Industrial Average was up 78.86 points, or 0.38 percent, to 21,091.28.

MARKET UPDATE

Dow +70.53 pts ,Nsdq +42.23 pts , S&P +10.68 pts , Bovespa -30 pts , Ftse +2 pts , Dax -21 pts , Cac -4 pts , Nikkei -40 pts now , Crude @ $48.94 brl (+0.04), Brent @ $51.33 brl (+0.06) , Gold @ 1257.84 (+4.74), Silver @ $17.188 (+0.07), Euro @ $1.1211, JPY @ $111.7400, INR @ $64.555

Today's Corporate Action 26th May  Ex Date

JKPAPER Dividend - Rs. - 1.5000
PLASTIBLEN Dividend - Rs. - 2.5000
SBIN Dividend - Rs. - 2.6000

Today's Key Result 26th May

 63Moons, AarveeDenim, ACIL, Adhunik, ADSL, AHLWest, Alkem, Ambit, Anuhphr, AsahiInd, AsahiSong, BEML, BirlaCorp, Blue Coast, Cals Ref, CantaBil, Carnatin, Celebrity, CGPower, Coralab, Cox&Kings, Crompton, Divis Lab, DLF, Eros Media, Essar Shipping, Excel Indus, Finolex Ind, Good Year, GujAlkali, HBL Power, HindPetro, IFB Ind, IndHotel, Indoco, Indramedco, IndTerrain, ITC, Jindrill, Kamat Hotel, Kwality, MahSeamles, Mndhana, MGL, NagarFert, NagarOil, Navneet Edu, NBCC, NippBatry, NRBearing, ONGC, Onmobile, OriddaMine, PFC, Rico Auto, SaintGobain, SKFIndia, STC India, SudarsChem, Sun Pharma, SunTeck, Sun TV, Tata Chem, TechM, TechnoTorntPharm, Trent, TV Today, UniPly, VideoInd, Walchannag, Wimplast

TOP NEWS

Dr Reddy’s Srikakulam formulation facility (SEZ) Unit 2 completed successful audit by the USFDA without any observations – Positive for Dr Reddy; Clearance of Srikakulam API facility  & Duvvada still awaited.

Divis: As per media reports Health Canada has said that Divi’s Labs Unit 2 is Non-compliant With Good Manufacturing Practices - Negative for Divis

Fortis Healthcare board approves to enhance ceiling limit for FIIs upto 75 percent – positive read through for the stock

Banking sector: An important meeting between RBI officials, Big investors, ARCs and other stakeholders will be held tomorrow to discuss and decide on further course of action regarding the NPA ordinance and how better implement & achieve NPA resolution – Positive read thru

OPEC led oil production cut extension by 9months to March-2018 - weakness in oil prices on OPEC decision would be negative for upstream companies but positive for refining and marketing companies 
OPEC and non-OPEC oil producing nations have agreed to extend the oil production cut of 1.8mbpd till March-2018 as compared to the initial agreement which was to expire in June-2017. The extension in production cut timeline to balance oil demand and supply is below the street expectations. Any fall in oil price post the OPEC decision would be negative for Upstream PSUs (ONGC and Oil India) and positive for refining and marketing companies (RIL, IOCL, BPCL and HPCL). 

 Glenmark Pharma receives USFDA approval for Olmesartan Medoxomil Tablets  (gBenicar) used to treat high blood pressure. The drug shall be manufactured at Goa plant and has US sales of ~$ 950 mn in US – Positive for Glenmark; stock is up by 1%+. Aurobindo & Lupin are other players who have also received approval for the product recently….(9:29am)

OTHER NEWS

Hatsun Agro products meet highest quality standards for its dairy products; remains one of largest player in the South India dairy market – positive read through for the stock
Hatsun Agro Product has stated that its products including Arokya, branded liquid milk, meet the highest quality standards. The company directly procures milk from over 4 lakh farmers spread across 10,500 villages across South India. Payments to farmers are done in a transparent manner and paid directly into their bank accounts. The company has a modern infrastructure to chill and process the milk with over 10,150 collection centres, 98 chilling centres and 395 bulk coolers and over 2,400 distribution centres with cold chain infrastructure. Arokya Milk and Hatsun Curd are the largest brands in their segments and the company is also known for its flagship Arun Ice Creams, Hatsun branded dairy products and Santosa cattle feed. Hatsun Agro’s products are exported to over 40 countries globally.

Ashok Leyland to focus on other business; truck’s share of business to come down to 50% from 62% currently over the next 3-5 years; positive read thru
Ashok Leyland is focusing on other business to reduce dependence on the cyclical domestic truck sales. Ashok Leyland would ramp presence in the LCV segment (plans to introduce one new product every quarter), export markets (by tapping new geographies) and defence business. The company intends to bring down the share of truck business to 50% over the next 3-5 years as compared to 60-62% currently. In line with the this the company also has plans to ramp up the production of electric vehicles, for which its has earmarked a capex of Rs 500 Crs for FY2017-18.

Infosys announces strategic alliance with HP Inc. to accelerate Digital Transformation for the Enterprise
Infosys and HP Inc. launched joint Retail Point of Sale (RPOS) and Enterprise Device as a Service (DaaS) solutions to help businesses accelerate digital transformation as part of the HP Global System Integrator (GSI) Alliance Program. The joint RPOS solution offers a digital approach across the supply chain, enabling real-time collaboration between shoppers, retailers and vendors at the point of purchase, providing a true omni-channel experience.

Airtel and Idea may launch VoLTE by September to counter Reliance Jio
Bharti Airtel, Vodafone India and Idea Cellular are likely to launch voice over LTE or VoLTE services by the end of September as part of their efforts to upgrade technology and compete better with the new entrant Reliance Jio Infocomm.

MORE NEWS 

GST to allow companies to claim refund
Bankers fear telcos failure can trigger defaults
Opec extends crude oil output cuts by 9 months
Govt may sell 3% in IOC for over Rs 6000 crore
HDFC among top 10 financial services cos globally
RBI allows co-op banks to issue mobile wallets
Trai bars discriminatory tariffs to same set of users
100% FDI in aviation threat to national security: FIA
Public procurement: Industry waits for $650-bn opportunity
Raymond stares at Rs 650-cr loss as Singhanias fight over JK House
L&T, Punj Lloyd plan to tap Rs 2 lakh-cr defence orders
Dr Reddy's SEZ unit completes USFDA inspection for II time
Govt to start selling crop insurance policy at POs, CSCs
Cost of demonetisation: 1.52 mn casual workers in eight sectors lost jobs
Lupin: Long-term US prospects remain positive
PM calls for indigenous manufacture of medical equipment
January-March quarter sees robust M&A deals: EY study
‘Export target of $900 billion by 2020 not feasible’ 
Ashok Leyland’s revenues cross ₹20,000 crore in 2016-17
Videocon shares continue free fall, tank 48% in 4 days
Thyssenkrupp, Tata Steel expect €400-600 million of potential savings after merger
Birla Sun Life AMC changes names of 3 monthly income plans
Rupee strengthens against US dollar on Fed rate signal
IDBI Bank plans to raise more capital as part of its turnaround plan
NPPA fixes price caps for 30 more formulations
India retains world's highest FDI recipient crown: Report
India’s weak risk profile affects investor reward: Fitch unit
Government may trim $900 bn shipments target in FTP review: FIEO
US jobless claims rose slightly to 234,000 last week
Govt’s structural reforms steps in the right direction: UBS
Big corporate firms, PSUs, realtors keen on buying Sahara assets
Cipla’s net loss narrows to Rs 62 cr in fourth quarter
IOC quarterly net jumps 85% on inventory gains, higher margins
Bail granted to five accused in coal case against Jindal

STOCK IN NEWS

1. Ashok Leyland seems in top gear with market share, margin gains
2. Moody's downgrades IDBI bank; lender says govt support continues
3. DLF in talks with global entities in co-work segment
4. Cognizant allays layoff fears, says local hiring to continue as before
5. Vedanta eyes higher aluminium output on strong LME, low alumina prices
6. Idea adds Mumbai circle, completes pan-India 4G rollout
7. Dr Reddy's SEZ unit completes USFDA inspection for second time
8. Ashok Leyland swings back into profit in Q4 as vehicle sales grow
9. Coal India wins tax-cut boost as environmentalists fret

Thursday, 25 May 2017

25 May 2017 - Views & News

MARKET INSIGHT

Markets are likely to open positive. However, today being expiry in FNO segment, we can see volatility during the day. Till 9300 holds on a closing basis, the short-term bias remains positive. On the way up, 9400-9430 is a key hurdle zone to keep a tab on. The overall short-term target on the upside is 9600-9655.

Nifty Spot Levels

Support 9341 – 9307 – 9269
Resistance  9430 – 9505 - 9560

GLOBAL MARKET

Strides Shasun gets USFDA nod for drug used in dementia treatment
[25/05, 10:02] Paul - Sharekhan Hosur: • Wall Street rose, while the US dollar and bond yields fell on Wednesday after Federal Reserve meeting minutes signalled a gradual approach to interest rate hikes, and oil prices dipped on a draw of US gasoline stocks that was smaller than expected.
While the yield curve flattened, the S&P 500 closed at a record high after minutes from the US central bank's May 2-3 policy meeting indicated the Fed would gradually raise rates and wind down its USD 4.5 trillion of bond holdings.
The Dow Jones Industrial Average rose 74.51 points, or 0.36 percent, to 21,012.42.

MARKET UPDATE

‎Dow +74.51 pts ,Nsdq +24.31 pts , S&P +5.97 pts , Bovespa +594 pts , Ftse +29 pts , Dax -16 pts , Cac -6 pts , Crude @ $51.55 brl (+0.19), Brent @ $53.85 brl (-0.09) , Gold @ 1257.84 (+4.74), Silver @ $17.188 (+0.07), Euro @ $1.1231, JPY @ $111.5300, INR @ $64.770

Today's Corporate Action 25th May  Ex Date

ADVENZYMES Stock  Split From Rs.10/- to Rs.2/-
GDL Interim Dividend - Rs - 4.0000
HINDCOMPOS Bonus issue 1:2
HINDCOMPOS Stock  Split From Rs.10/- to Rs.5/-
MERCK Dividend - Rs. - 11.0000
RAYMOND Dividend - Rs. - 1.2500
SINTEX Spin Off 
TRIDENT Final Dividend - Rs. - 0.3000

Today's  Result 25th May

Acrysil, Adlabs, AIAEng, AshokLey, Bajaj Hind, BalKrisInd, Banswara, BF Invest, BFUtility, Bodal Chem, Bosch, Britannia, Butterfly, CIL, Cipla, Concor, Daawat, Delta, Dhampur Sug, DharFin, Disa India, EsabIndia, ExcelCrop, ExpoGas, GarwarPoly, GSPL, Hawkin, HeidelBerg, Heritge Food, HONAUT, HotelLeela, IOC, ITI, JindalPoly, Kalyani Inv, KiriIndus, KSL, LakshmiMil, Liberty Shoe, LuxInd, Manappuram, MEP, Mphasis, NMDC, Page, PhilipCarb, PloyTex, PrismCem, Punjab Chem, RadioCity, Redington, Repco Home, RosselLInd, Salzer, Scooter, Shreyas Shipping, SHristi, Star Paper, Subex, Thomas Cook, Timex, Timken, TPL Plast, Vadilal Ind, VST Tillers, Wabag, WstCstPapr

TOP NEWS

HCL Technologies proposes Rs3,500 crore share buy-back at 17% premium
HCL Technologies announced that it will buy-back shares at Rs1,000 per share, a 17% premium over Yesterday’s closing price of Rs 855. The company is proposing an offer for buy-back of equity shares for cash on a proportionate basis through tender offer process. HCL Tech mentioned Letter of Offer will be to equity shareholders of the company as on record date of 25 May

Maruti Suzuki plans to upgrade engines and introduce AMT in more models; aims at 2 million sales by 2020 (CAGR growth of 9%); positive….(detail in other news)

Petronet LNG (PLNG): An agreement has been reached between government of India, Sri Lanka and Japan to set up a $250million LNG terminal in the west coast of Sri Lanka with a 50:50 joint venture between PLNG and a Japanese company - long term positive for PLNG.


 OTHER NEWS

Maruti Suzuki plans to upgrade engines and introduce AMT in more models; aims at 2 million sales by 2020 (CAGR growth of 9%); positive
Maruti Suzuki India plans to upgrade engines, introduce new platforms and bring in more models with various level of automatic transmissions as it aims to sell two million units by 2020. Maruti currently sells around 94,000 units with AGS (automated gear shift) and aims to increase the contribution to 1.5 lakh units in current fiscal and 3 lakh units by 2020. Maruti is also upgrading the engines in wake of introduction of corporate average fuel efficiency (CAFE) norms.

Mahindra & Mahindra to scale up production of battery packs in India to bring down the cost:
Mahindra & Mahindra has announced the ramp-up of a new facility at Chakan to expand capacity of creating battery packs for its electric vehicles. The move is a part of a strategy to scale up production battery packs India and bring down cost. Currently the company assembles the battery packs in India at its facility in Bengaluru with a capacity of 400-500 units per month, which it plans to scale up to 1000 units initially and then to 5000 units per month with the commissioning of the new facility. Positive read thru.

SBI to sell bad loans worth Rs1,471 crore to ARCs in bid to clean up books – Positive read thru

Bharat Financial Inclusion is evaluating all options for stake-sale and according to the management it is open to complete takeover by a bank or a strategic 10% stake sale – Positive read thru

Inter-ministerial meet on commercial coal mining on May 25, 2017. The government had earlier said it will kick-start private commercial coal mining in the country in FY2018 with the auction of four mines.

Reliance Industries (RIL) has undertaken planned shutdown at polyvinyl chloride (PVC) plant and it is expected to remain shut down for around 3weeks. The plant has a production capacity of 315,000 mt/year.

HDFC Ltd and Max Financial have clarified that they have not received any communication either from the government or regulator for the proposed amalgamation of HDFC Life and Max group entities

Infosys launches Boundaryless Data Lake
Powered by its Information Grid Solution on Amazon Web Services (AWS), Infosys launched Infosys Boundaryless Data Lake for enterprises to improve their operational efficiencies. The solution allows enterprises to leverage the insights it provides to reduce time-to-market, create new revenue models, reduce latency and improve operational efficiencies through near real-time decision making.

MORE NEWS 

Union Cabinet scraps 25-year old FIPB
State oil cos like ONGC, GAIL plan Rs 87K-cr capex
Moody's downgrades China's rating in 30 years
RBI may have Dy Guv from pvt sector for first time
Govt nod to public procurement policy for local goods
Govt hikes sugarcane FRP by 11% for 2017-18 
China cracks down on top brokerages in clean-up effort
UN, WB to enjoy tax exemptions
Make in India gets sourcing push from govt
India cancels 13 Gw coal-based plants; sign of energy transformation: Study
PSBs gain approval to raise capital but investors unsure, says report
IFC to invest up to $40 mn in Kedaara Capital's 2nd cap fund
ArcelorMittal agrees on concessions to seal Rs 5,800-cr JV with SAIL
Reliance Infra InvIT gets SEBI nod; IPO in 2 weeks
I-T unearths 400 benami deals, attaches Rs. 600-cr properties
Strides Shasun gets US FDA nod for dementia drug
BSNL offers satellite phone service to government agencies
Lupin Q4 net profit dips 49.61% to Rs. 380.21 cr 
Bharat Forge Q4 net profit rises 25% to over Rs. 207 cr
HCL Tech to buy back shares at 17% premium for Rs3,500 crore
Azim Premji fund seeks clarity on Snapdeal sale in letter to board: report
Tata Power needs to shed asset overload to drive growth
General Motors India starts discussions with dealers for transition plan
NSE asks brokers to have in place insurance cover for FY18
COAI moves Supreme Court against Rajasthan government order on removal of cell towers
CREDAI seeks abolition of stamp duty on landed property
NHPC working on five hydro power plants in Pithoragarh
Sebi to examine Deloitte’s audit on NSE’s co-location facility
NPA ordinance: PMO tracking RBI progress
Equity market boom drags down commodity futures
Job growth slows, pet schemes yet to build up steam
GST: Industry seeks early relaxation of penalties

STOCK IN NEWS

Videocon: Selling assets to repay debt
Swedish retail giant Ikea won't bank on e-commerce to drive India growth
FIIs/FPIs restricted to buy more shares in Fortis, Claris
Airtel, Voda tried to block Jio entry, Trai tells DoT
Exports, non-auto rebound to add muscle to Bharat Forge's sales
Prabhat Dairy eyes 50% business from B2C products by 2020
PE firm DEG sells shares worth over Rs 222 cr in Equitas
ITC awarded Porter Prize 2017 for Excellence in Corporate Governance
Dish TV post Rs 28 cr Q4 loss, subscription revenue falls 11%
GST: M&M to set up new battery assembly unit near Pune after 12% levy
Sun Pharma to create drug used for treatment of psoriasis, gets USFDA's nod

Wednesday, 24 May 2017

24 May 2017 - Views & News

MARKET INSIGHT

Markets are likely to open flattish, overall short term target for Nifty on the upside is at 9655. For the intraday traders strategy will be to buy in the range of 9385-9395 with stoploss of 9350 for targets of 9440-9480.

Nifty Spot Levels

Support 9370 – 9307 – 9269
Resistance  9440 – 9505 - 9560

GLOBAL MARKET

 • Wall Street edged higher on Tuesday as investors digested President Donald Trump's budget plan, but a drop in consumer discretionary stocks offset a boost from the financial sector.
While Tuesday's economic data was weak, investors appeared relieved that President Donald Trump's first full budget plan was largely as expected.
The Dow Jones Industrial Average was up 43.08 points, or 0.21 percent, to 20,937.91.

MARKET UPDATE

Sgx Nifty +14 pts ‎Dow +43.08 pts ,Nsdq +5.09 pts , S&P +4.40 pts , Bovespa +988 pts , Ftse -11 pts , Dax +39 pts , Cac +25 pts , Nikkei +104 pts now , Crude @ $51.44 brl (-0.03), Brent @ $54.19 brl (+0.01) , Gold @ 1250.81 (-4.69), Silver @ $17.066 (-0.07), Euro @ $1.1179, JPY @ $111.9500, INR @ $64.896

Today's Corporate Action 24th May  Ex Date

DCBBANK Dividend - Rs. - 0.5000
HCLTECH Buy Back of Shares 
HCLTECH Interim Dividend - Rs. - 6.0000

Today's Key Result 24th May

Adani Ent, Adani Port, AGC Net, AmaeajaBat, Aptecht, Asahi India,Astar, Bajaj Steel, Bayer Corp, Bharat Forge, Cheviot, Dish TV, Emkay, Forbes, Garwallrop, GujGas, GVKPIL, HCG, Indian Bank, ISFT, Jubilant Ind, Kopran, KSCL, Lupin, Minda Corp,Mukund Ltd, Mukund Eng, Nelcast, PNC Infra, Praj Ind, Religare, Sanghi Ind, Shalimar Paints, Somany Cera, SonaSteer, SPAL, SundrmFast, TalbroAuto, Tata Invest, Timken, TVSSriChak, Wonderla

TOP NEWS

 ALERT: Tata Motors posted better than anticipated results for Q4FY2017. Revenues declined 3% yoy coming broadly in line with our estimates. However, consolidated margins improved 420 bps sequentially to 14% (better than our estimate of 9.5%. JLR margins improved 520 bps qoq to 14.5% (our estimate of 11.2%) driven by higher volumes, reduction in marketing spend and lower forex loss on hedges. Domestic margins improved 200 bps sequentially to 2.7% (our estimate of 0.3%). Give the strong operating performance Adjusted Net Profit at Rs 4,320 cr was significantly better than our expectations of Rs 2,333 cr. Positive.…..(details in Investment calls)

OTHER NEWS

Va Tech Wabag: Has won repeat order from Dangote Oil Refinery Company in Nigeria amounting to ~ Rs 685 crs. Va Tech Wabag’s scope of work includes design, engineering, procurement, supervision of installation and commissioning & testing of an Effluent Treatment Plant with reverse osmosis, demineralisation & condensate Polishing and raw water treatment package.  

MEP Infrastructure: The company has entered into concession agreement with NHAI for its HAM project (four laning of Mahuva to Kagavadar in Gujarat). NHAI has given 15th May 2017 as the appointed date. The development is positive for the stock. We have a positive view on the stock.

JB Chemicals & Pharmaceuticals approves the buy-back of up to 12,50,000 equity shares (1.47% of equity & 3.85% of Equity shares and free reserves) at a price of Rs 400 per equity share.

Mahindra and Mahindra to increase electric vehicles capacity; to introduce more products

Mahindra and Mahindra is building electric vehicles that will cover 300 kms on a single charge -more than double of what it currently offers as it looks to go on an overdrive in the zero-emissions category with new passenger cars and commercial vehicles. M&M plans to enhance the production capacity of electric vehicles from a mere 200 units monthly to over 5,000 units a month over the next two years. It is also working on a modern electric vehicle in partnership with Pininfarina, the Italian car design company that it purchased in December 2015. M&M said that the government's focus on electric vehicles coupled with a lower standard GST rate of 12% (as against 28% for fossil fuel cars) would encourage production of electric vehicles.

Infosys adopts new charter to tackle shareholder concerns
Infosys has adopted a new charter for its board committee that oversees relationships with stakeholders, a move that is seen as a response to the public criticism of some of the company's decisions by several of its promoters. The committee comprises of four independent directors as members - Jeffrey S Lehman (the committee's chairperson), John Etchemendy, Ravi Venkatesan  and D N Prahlad.

TCS iON to launch an integrated cloud based solution for educational institutions
TCS announced the Japan launch of its “TCS iON Education Solution”, an integrated cloud-based solution for academic and vocational institutions. It provides educational institutions an end-to-end solution that streamlines operations and management across the institution and its campuses

T.V. Today Network: migration of three FM radio station to Phase III
T.V. Today Network announced that migration of three FM radio stations of the Company (Delhi, Kolkata and Mumbai) from Phase II to Phase III has completed. The Company has paid migration fee of Rs 71.4 crore.

MORE NEWS

Rs 1K cr from GAIL to make Dabhol an all-yr terminal
JIO plans against TRAI norms: Vodafone to High Court
'Bill to address bankruptcy in financial sector soon'
Cabinet may decide on FIPB abolition  today
Q4 GVA growth in India to drop to 6.6%: D&B
Moody's changes Bharti Airtel's outlook to negative
Radio Mirchi operator ENIL posts 18.6% revenue in Q4
RBI defies SC order, refuses to disclose list of loan defaulters
SFIO developing early warning system to detect corp frauds
India eyeing to become a trillion-dollar digital economy by 2022
Sebi appoints enquiry officer to vet Deloitte's forensic audit on NSE
Irdai to alter insurance policy covers for shops and hotels
Crude oil output dips in April; natural gas production up
‘India-Africa ties a silver lining for global economy’
TVS Logistics keen to expand, focus on packaging segment 
ASK Group to invest Rs. 200 cr in ATS Infra’s project in Noida
Promoters’ ‘share pledges’ down only a bit despite market rally
Govt offers tax concessions to Apple to expand production, says official
Govt to table bankruptcy law for NBFCs, MFIs in monsoon session of Parliament
Videocon shares continue to fall, slump 20% on loan repayment worries
Warren Buffett plan to hold American Express shares revealed amid ads
Jindal Steel Q4 net loss narrows to Rs 100 crore
US-India relationship never been stronger: Trump administration
India proposes RCEP business visa card under mega trade deal
Won't allow companies from country barring Indian firms: Piyush Goyal
Johnson Controls-Hitachi Q4 net profit jumps 90% to Rs 25 cr
GST Animal Farm: Donkeys exempted, horse-trading to invite 12% levy
Telecom firms may pass gains of input tax credit
Govt allows Tesla to manufacture in India without local sourcing
Rupee drops 34p against greenback
Tata Motors registers 16.8% decline in Q4 profit
Sensex pares 205 pts, Nifty 52 pts
Jindal summoned as accused in coalscam

STOCK IN NEWS

 • HDFC Life gears up for IPO as Max merger delayed
Indian M&A deals up 23% to $16 bn in Jan-March even as volumes remain flat
JK Paper lines up Rs 650 crore for investment, capex
Videocon loses one-third of market value after stock slump
Tata Power's renewable energy capacity crosses 2,000 Mw mark
Aditya Birla Fashion partners KVIC, to sell Khadi products
India Inc inks 252 M&A deals worth $15.8 billion in Q1, according to EY
Central Bank of India to raise Rs 6,500 crore in FY18
Essar Shipping adds new vessel to fleet, total capacity increases to 1.6 mt
ASK Group invests Rs 200 cr in first ever commercial project of ATS Infra
Suzuki Motor Gujarat vendor TG Minda announces plant at Mandal