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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

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