}

Friday, 30 June 2017

30 June 2017 - Views & News

MARKET INSIGHT

Nifty is likely to open on a negative note based on the global cues. Support for the day is placed at 9470 levels and if breaks then further downside expected. 

Nifty Spot Levels 

Support  9473 – 9341 
Resistance  9560 - 9600

GLOBAL MARKET

· Wall Street fell sharply on Thursday with the S&P 500 and Dow industrials on track for their worst daily drops in six weeks as investors continued a recent move out of technology shares.

· The CBOE Volatility index , the widely followed barometer of expected near-term stock market volatility, rose as high as 15.16, its highest level in six weeks.

· The Dow Jones Industrial Average fell 167.7 points, or 0.78 percent, to 21,286.91.

MARKET UPDATE

Sgx Nifty  -46 pts Dow -167.58 pts ,Nsdq -90.06 pts , S&P -20.99 pts‎, Bovespa +220 pts , Ftse -37 pts , Dax -231 pts , Cac -98 pts , Nikkei -239 pts now , Crude @ $44.95 brl (+0.02), Brent @ $47.51 brl (-0.02) , Gold @ 1246.80 (+1.00), Silver @ $16.614 (+0.02), Euro @ $1.1441, JPY @ $112.0000, INR @ $64.795

Today's Corporate Action 30th June  Ex Date

HEROMOTOCO Final Dividend - Rs. - 30.0000
JSWENERGY Dividend - Rs. - 0.5000
TATACOFFEE Dividend - Rs. - 1.5000
TATACOFFEE Special Dividend - Rs. - 0.2500

TOP NEWS

ALERT - Grasim Industries, Aditya Birla Nuvo: Private equity firm values financial services arm of AB Nuvo at Rs35000 crore (significantly higher than our valuation of Rs20000 crore) – positive for Grasim Industries
PremjiInvest (Indian private equity firm) has invested an estimated Rs700 crore to buy a 2.2% stake in Aditya Birla Capital (formerly Aditya Birla Financial Services, holding company of the financial services business of AB Nuvo, a subsidiary of Grasim) as per media reports. The proposed transaction values ABCL at Rs32000 crore. In our SOTP based valuation for Grasim, we had valued financial services business at Rs20000 crore which is much below the valuation given by the private equity firm. The development is positive for Grasim Industries.

Banking Sector; JP Associate, Ultratech:  The sale of cement assets of Jaiprakash Associates (JAL) and Jaypee Cement Corporation (JCCL) to UltraTech Cement for Rs 16,189 crore has been concluded. With this a part of debt of JAL and JCCL would be transferred from stressed account to AAA rated company – Positive read thru for banks (like ICICI, AXIS, Yes Bank etc), JP Associates and Ultratech.

 Auto: Transport buses (buses for transport of 10 or more persons) to attract tax of 43% under GST (15% cess over GST rate of 28%) as compared to current tax rate of about 27.8%; negative read thru for Ashok Leyland, Eicher Motors and Tata Motors

Oil and Natural Gas Corp (ONGC) and Hindustan Petroleum Corporation (HPCL) merger is likely to get cabinet approval by August-2017 as per the media reports - positive read through for ONGC

 Interglobe Aviation (Indigo) has submitted a letter of interest to the government to acquire the international airline operations of Air India and Air India Express – Sentimentally positive for Interglobe Aviation (Indigo)

 Thomas Cook India acquires Kuoni's destination management network for Rs 125 crore; the acquisition is funded through internal accruals and is valued at 5x its PBT – positive read through for Thomas Cook India as acquisition make TCIL a global outbound tourism player…(detail in other news)


OTHER NEWS

ITC’s packaged food business posts 13 per cent revenue growth in FY17 – positive read through for ITC
ITC’s stated leadership ambition in India’s packaged foods business inched a step closer to reality last year, with a 13 per cent increase in sales closing the revenue gap between cookies giant Britannia and Nestle. In ITC’s latest annual report its packaged food business revenue in 2016-17 increased to Rs 8,036.4 crore from Rs 7,097.5 crore the year before, compared with Britannia’s revenue of Rs 8,684.39 crore (Rs 7,947.9 crore the year before). Nestle India had clocked sales of Rs 9,223.8 crore last fiscal (it follows Jan-Dec fiscal). ITC, therefore, appears to be on course to realise its leadership goal by overtaking both Britannia and Nestle in the foods business over the next 2-3 years. The revenue growth would be brought about by the accelerated introduction of new products, and entry into 7-8 newer categories. The company plans to introduce about 40 new food products in the next one year — a record for ITC — and has recently started selling premium chocolates and coffee. It is the market leader in packaged flour and premium cream biscuits, and the second-largest player in snacks and instant noodles.

Thomas Cook India acquires Kuoni's destination management network for Rs 125 crore; the acquisition is funded through internal accruals and is valued at 5x its PBT – positive read through for Thomas Cook India as acquisition make TCIL a global outbound tourism player
Thomas Cook India (TCIL) has finalised the acquisition of a significant part of Switzerland-based Kuoni's global destination management specialists. The acquisition is seen as a part of its growth strategy with growth in Indians outbound travel plans. The price of the deal is Rs 125 crore and the valuation is about 5 times profit before tax and has been funded entirely from Thomas Cook’s internal accruals.
With this acquisition TCIL is become global player in outbound tourism with a business in Hong Kong to a leading Asian travel business with footprint across 22 countries -- from Australia, South east Asia, China, south and Eastern Africa, middle east and north American continent
. 
 BHEL has signed technology collaboration agreement with Kawasaki Heavy Industries Ltd, Japan,  for the manufacture of stainless steel coaches and bogies for Metro Rail; Positive read thru  

Reliance Industries (RIL) has applied for license from Petroleum and Explosives Safety Organisation for home delivery of motor fuel as per the media reports - positive read through for RIL

Real Estate Sector: The government has notified GST rate for construction of real estate at 18% as against 12% announced earlier. However, the rate of 18% would now be charged on two-thirds of under-construction property value which is expected to be same as 12% on the entire value of property announced earlier. The development is neutral read thru for real estate sector.

KEC International, Ujaas Energy, Indosolar, Websol and Gujarat Borosil to be in focus- Tamil Nadu government to set up Rs 2,350 crore ultra mega solar photovoltaic power park and will establish the 500 MW power park on EPC basis.

Interglobe aviation: IndiGo has expressed an interest to buy the international business of Air India and has told the government it is open to buy the entire operation of the Air India if demerging international business is not possible. The development is positive read thru for Interglobe aviation.

ITC’s non-cigarette FMCG sales cross $2-billion mark in FY17 – positive read through for ITC
As per ITC’s Annual Report for FY2017, the cumulative sales of ITC’s non-cigarette FMCG brands has crossed the $2-billion mark in the fiscal ending March 2017, at Rs 14,000 crore growing by 16 per cent over the previous year. This includes ITC's 25 FMCG brands spanning packaged food, personal care, education and stationary products, apparel, agarbatti and safety matches. While ITC's packaged food business is already profitable, the other FMCG businesses are yet to become profitable. The foods business is expected to be the majority contributor to its goal of achieving a turnover of Rs 1 lakh crore from its non-cigarette FMCG businesses by 2030.

Infosys takes $1 million settlement amid visa allegations
In a statement, New York Attorney General Eric T. Schneiderman announced that Infosys would be paying a million dollars after an investigation into the firm’s abusive practices. According to the allegations by New York State, Infosys illegally obtained foreign workers through the B-1 visa and got them to take jobs that Americans had previously done.

Wipro and Hewlett Packard Enterprise (HPE) to deliver consumption based IT for customers
HPE and Wipro announced a new global go-to-market agreement to provide joint customers with on-premises IT infrastructure at flexible consumption-based pricing. This collaboration will leverage HPE’s Flexible Capacity and Wipro’s infrastructure-as-a-service offerings to address the increasing customer demand for consumption based IT.

MORE NEWS

Banks consortium concludes largest asset resolution
MRP of products sold online mandatory from 2018
DIPP revamping mfg, industrial policy: Sitharaman
Axis has exposure to 8/12 RBI named accounts
UltraTech acquires Jaiprakash group cement business
RBI to remain open on July 1 to facilitate transactions
Govt to strengthen NCLT for speedy resolution of stressed assets
Centre plans to integrate GST with PAN
Sebi chief cautions MFs on NPA spillover
Fund raising via QIP hits eight-year high; banks lead
IndiGo wants Air India's overseas business
Rs 10,000-cr bad debt: SBI moves NCLT against Electrosteel
Crisil buys 8.9% CARE stake held by Canara Bank
RBI directive on withdrawals, transfers by payment banks
IndiGo wants Air India's overseas business
ICICI Bank-led consortium complete Rs. 16,189-cr Jaypee-UltraTech deal
1.6 lakh new businesses register on GSTN in 4 days
Bankruptcy proceedings: NCLT to rule on Jyoti Structures on Monday
IRDA identifies 6 insurers to take over Sahara India Life Insurance
Indian money in Swiss banks at Rs4,600 crore, a record low
Tata Steel subsidiary Tinplate seeks to undertake business on its own
Reliance Jio unveils new Asia-Africa-Europe submarine cable system
GST implementation will remain a challenge for government: Asian Development Bank
P-note investments hit seven-month high of Rs 1.81 lakh crore in May
Moody's gives China-backed AIIB a triple-A credit rating
Sebi cautions MFs on debt fund play
Sebi slaps Rs 26 lakh on individual in unauthorised investment advisory case
Spice to re-enter phone race, forms JV with China's Transsion
Rupee crumbles to 1-mth low on capital outflow fears
ED attaches Radisson Blue hotel in NSEL case

STOCK IN NEWS

  • Samsung invests $1.9 bn in US ahead of Moon visit 
  • Jaypee acquisition led by desire to straddle entire country: KM Birla 
  • IndiGo wants Air India's overseas business 
  • Kesoram Industries, has bought back its heavy chemicals and spun pipes businesses that it sold in 2015-16. The businesses have been bought back for around Rs 400 crore from Camden Industries. 
  • JSW Steel proposes Rs 2,100-cr iron ore, coal slurry pipeline in Karnataka 
  • Vedanta makes $3-bn bet to re-energise biggest oilfield 
  • Premji Invest picks 2.2% stake in Aditya Birla Capital 
  • DHL invests Rs 100 cr in expansion of Delhi gateway; aims to double exports 
  • 3Apollo LogiSolutions raises Rs 485 cr from Piramal; expects GST to aid biz 
  • ICICI Bank-led consortium completes Rs 16,189-crore asset resolution 
  • Fourth generation Honda City cars cross sales milestone of 2.5 lakh units 
  • Rs 10,000-cr bad debt: SBI moves NCLT against Electrosteel

Thursday, 29 June 2017

29 June 2017 - Views & News

MARKET INSIGHT

Markets are likely to open flat to positive. However, yesterday Nifty has broken 9500 on closing basis which indicates that short term trend has turned down. Key level on the downside will be 9200. Any attempt of minor degree bounce is likely to face resistance near 9560- 9600 with major hurdle at 9700.

Nifty Spot Levels

Support 9450 – 9341 – 9280
Resistance  9560 – 9617 - 9709

GLOBAL MARKET

US stocks ended higher after Wall Street propelled by financial and technology stocks led a broad market rebound. The benchmark S&P 500 index scoring its biggest one-day percentage gain in about two months.
The Dow Jones Industrial Average rose 143.95 points, or 0.68 percent, to 21,454.61

MARKET UPDATE

Sgx Nifty +37 pts Dow +143.95 pts ,Nsdq +87.79 pts , S&P +21.31 pts‎, Bovespa +342 pts , Ftse -46 pts , Dax -23 pts , Cac -5 pts , Nikkei +85 pts now , Crude @ $44.80 brl (+0.06), Brent @ $47.68 brl (+0.01) , Gold @ 1250.57 (+1.47), Silver @ $16.778 (+0.05), Euro @ $1.1384, JPY @ $112.3800, INR @ $64.522

Today's Corporate Action 29th June  Ex Date

CENTUM Final Dividend - Rs. - 3.0000
EASTRED Final Dividend - Rs. - 0.5000
GULPOLY Final Dividend - Rs. - 0.3000
HDFCBANK Dividend - Rs. - 11.0000
NUCLEUS Buy Back of Shares 
NUCLEUS Final Dividend - Rs. - 5.0000
SKPSEC Buy Back of Shares 
STRTECH Final Dividend - Rs. - 0.7500

TOP NEWS

Amtek Auto: Along with private equity funds, Bharat Forge and Sona Koyo Steering are in race to acquire strategic stake in Amtek Auto from Banks – Sentimentally positive for Amtek Auto which is among the first few troubled accounts to go thru the Insolvency proceeding leading to change in promoters/strategic investors; in case of Bharat Forge and Sona Koyo a lot would depend on valuations of the stake and the control that can be exercised over Amtek assets (we do not advise rushing to Buy these stocks).

Ashok Leyland sees short-term blips in MHCV sales due to GST transition; Negative read thru for MHCV players (Ashok Leyland, Tata Motors, Eicher motors).
Ashok Leyland expects short-term moderation in medium and heavy commercial vehicle (M&HCV) sales due to the impact of GST transition. The fleet operators are expected to  defer their purchases owing to uncertainty around GST. Also the manufacturers would align their production and inventory as per GST requirements. Ashok Leyland MHCV sales have already declined 30% for April and May 2017 and we expect June 2017 sales to remain in the declining trend . Negative.

RCF: The Government of India has announced to sell a 5% stake (2.75 crore equity shares) in RCF through the OFS (offer for sale) route. The floor price for the same has been fixed at Rs 74.25 per share (which is at 7% discount to last closing price) . Further company is offering a discount of 5% ( to the cut off Price) to retail investors with 20% of the shares on sale reserved for retail category. The share sale would be done on 29-30 June 2017 through a separate window on the stock exchange. Stock to remain in focus.

Mindtree Board approves Rs 270 crore buyback plan, at Rs625 (17.7% higher than last closing price) – stock to be in focus
Mindtree will buy back up to 43.2 lakh shares, comprising 2.5% of the total paid up equity share capital at a price of up to Rs 625 per equity share, which is 17.7% higher than last closing price. The buyback program have neutral impact on earnings, though will increase the payout ratio for the year. Promoters have option to participate in the buyback program.

Aurobindo Pharma gets US FDA nod for Norethindrone Acetate oral tablets, stock to be in focus

Godrej Industries to raise Rs400cr through Godrej Agrovet through public offer; the other key details are awaited – value unlocking in agrovet; positive read through for Godrej Industries 

Fortis Healthcare Gets Shareholders' Nod To Hike FII Holding Limit To 74% Of Paid-up equity capital – positive read through for the stock

OTHER NEWS

 TVS Motors ties up with Abans Auto to launch 3-wheeler in Sri Lanka; positive

TVS Motor Company announced a partnership with Abans Auto, a leading distributor in Sri Lanka, to launch its 200 cc passenger three-wheeler TVS King in the island nation. The TVS King will be priced at 6,91,850 Lankan Rupee and will be retailed across Abans Auto’s over 200 showrooms and appointed dealers in strategic locations in Sri Lanka. Furthermore, Abans Finance will provide finance schemes to the customers of TVS Motor Company at affordable rates in order to facilitate sales. Positive

Bajaj Auto launches Pulsar NS160 to strengthen presence in premium motorcycle space; positive read thru
Bajaj Auto has launched the Pulsar NS160 motorcycle in dealerships at a price of Rs 1.18 lakh, on road- Mumbai. According to the Executive Bajaj dealership in Mumbai, the company has started delivering the motorcycle to the dealerships. The motorcycle is powered by a 160.3cc, single-cylinder, oil cooled, four-stroke engine that churns out 15.2 hp of power and 14.6 Nm of torque mated to a 5-speed gearbox. The suspension setup comprises of telescopic forks at front and a monoshock unit at the rear. The motorcycle gets disc brake at front and drum brake at the rear

Reliance Industries Limited’s (RIL) KG basin block production may decline as three of its producing wells are close to end of their production cycle as per the media reports. RIL is also working on extending the life cycle of the wells until the production can be replaced by new wells – marginally negative for RIL. 

Government of India will start first auction under open acreage licensing program from 01-July-2017 and the auction will be held twice a year (i.e. next auction is likely to be in December-2017) as per the media reports – sentimentally positive for upstream companies especially ONGC and Oil India.

Wipro: Locals form over 50% of workforce in U.S.
Over the past six months, the company hired over 1,600 employees by attracting and nurturing local talent to drive innovation and help transform clients’ businesses into digital enterprises. Wipro stated that locals now form over 50% of its workforce in the United States. During FY17, 3,000+ locals joined the company and currently it has a workforce of over 14,000 in the USA.

Tata Motors-Volkswagen partnership for platform sharing likely to be called off; Negative read thru for Tata Motors
Within just over three months of signing a co-development agreement, the partnership between Tata Motors and Volkswagen Group has run into rough weather, with differences over the use of platform and doubts related to business viability. In March this year, Tata Motors, Volkswagen Group and Skoda had announced an alliance for the joint development of products with the first roll-out expected in 2019. The two companies were exploring using Tata Motors' AMP(Advanced Modular Platform) with VW technology, especially electronics, for products meant for emerging markets in order to gain a significant cost advantage over VW's MQB-A platform. However, the proposal has turned out to be expensive and there is a realisation that the business  proposition of such a collaboration is not as attractive as it was assumed earlier.

Car makers enhance discounts as GST rollout nears; negative read thru for car players Maruti and M&M
Cash discounts on a host of cars are now higher in the countdown to the goods and services tax (GST) with dealers looking to offload as much inventory as possible ahead of July 1, 2017. Although input tax credit is available on transition inventory, trade channels are unclear on the processes for claiming these benefits and are liquidating stocks. Discounts on Maruti Alto which were running at close to Rs 30,000, are now higher at Rs 35,000-40,000. The Maruti Swift can now be had at a price that is 25,000 less than at the start of the month, while the WagonR is now cheaper by Rs 30,000-32,000. Discounts on a Mahindra Scorpio have been raised to 35,000-37,000 during the last week from Rs 30,000 at the end of last month. Dealers are also trimming prices for products like the XUV 500, which will become significantly cheaper post-GST.

Aviation Sector: The cabinet gave in-principle approval for divestment of Air India. A group of ministers will now look into the quantum, mechanism, debt and other issues of divestment. Aviation stocks Interglobe aviation, spicejet, jet airways (India) to remain in focus.

MORE NEWS

Banks to lobby RBI to go easy on provisioning
Daiichi moves NCLT to block Fortis demerger
Local companies, global PEs in race for Amtek
Printing of Rs 200 currency notes begins
FinMin starts notifying provisions of GST acts, amends rules
Govt bites bullet on AI, gives nod for stake sale 
Govt stitches rescue plan for Tata, Adani power plants
TCS reclaims most valued company status; RIL slips
Petya ransomware attack: JNPT, other Indian firms affected
Sebi proposes to ease foreign investors' compliance burden
Interest pushes up telcos' auction payout to Rs 3 lakh cr in 10 yrs
RBI panel to review Rs 10,000-cr debt soon
Sebi tweaks OFS norms to encourage employees' participation
Commodity markets turn bearish as prices fall
Discoms sitting on Rs. 2,000-cr dues to wind energy players
Govt launches Open Acreage Licensing; eases oil, gas exploration regime 
RIL refinances $2.3 bn loans to cut interest cost
CBI takes over Rs. 500 cr online ponzi scam probe
Everstone bakes plan to grab a slice of North Indian market
Ind-Ra notes low coal stocks at power plants 
Aadhaar-PAN linking mandatory from 1 July, govt notifies rules
 Anil Ambani’s summer asset sale expands, foreign banks approach NCLT on RCom
 AU Small Finance Bank IPO subscribed 18% on Day 1
Blackstone exits Jagran Prakashan holding firm, sells stake to promoters
ADB issues Rs14 billion rupee-linked bonds
India needs own path to implement global banking norms: Y V Reddy
EPF wage ceiling: Finance Ministry yet to decide on hike to Rs 25,000 per month
China economy improves in Q2 but deleveraging poses risks: Survey
Reliance Jio files 54 global patents in FY17, reveals Reliance Industries
Nifty cracks below 9,500, down 20 points
RBI on alert as foreign stake in AU nears 49%
India's largest container port disrupted by global cyber attack
Rupee edges lower by 2 paise to 64.55 a dollar
Assess demand first to make CIL’s $1 billion investment plan work

STOCK IN NEWS

Govt will divest 5% stake in RCF with floor price set at Rs 74.25 per share
Oil ministry is working on developing Gas Trading Hub
Godrej Industries to sell 400cr worth of shares in Godrej Agrovet IPO
• L&T: Westinghouse to resume designing on $20bn N-Plants
• Amtek auto - Bharat Forge, Sona koyo, blackstone in race to buy all or parts of group co’s
• Fortis Healthcare gets shareholders' nod to hike FII holding limit to 74% of paid-up Eq Capital
• US says to reopen H1B Visa premium processing 'As work loads Permit'
HPCL to raise 500mn$ through dollar bonds
• With the arrival of the monsoon season, major domestic airlines have announced special fares starting as low as Rs 699.
• Private sector lender Axis Bank has raised Rs 3,500 crore by issuing debt securities on a private placement basis. 
• Mindtree approves buyback up to Rs 270 Cr for 43.2 lakh shares at maximum Rs 625 per share

Wednesday, 28 June 2017

28 June 2017 - Views & News

MARKET INSIGHT

Markets are likely to open weak on back of weak global clues. Nifty is sitting at a very crucial juncture, as long as 9500 holds on closing basis the short term outlook remains positive. On the flip side, breach of 9500 on closing basis would turn the short term outlook in favor of the bears.

Nifty Spot Levels

Support 9473 – 9430 - 9341
Resistance  9555 – 9615 - 9709

GLOBAL MARKET

The tech-heavy Nasdaq led a broad Wall Street decline on Tuesday with stocks falling more sharply after a healthcare bill was delayed in the US Senate, raising fresh questions about President Trump's domestic agenda.
US Federal Reserve Chair Janet Yellen said she does not believe there will be another financial crisis for at least as long as she lives, thanks largely to reforms of the banking system since the 2007-09 crash.
Data showed consumer confidence for June rose more than expected, which could bolster the Fed's case for another rate hike this year.
The Dow Jones Industrial Average fell 98.89 points, or 0.46 percent, to 21,310.66.

MARKET UPDATE

Sgx Nifty -31 pts Dow -98.89 pts ,Nsdq -100.53 pts , S&P -19.69 pts‎, Bovespa -512 pts , Ftse -12 pts , Dax -99 pts , Cac -37 pts , Nikkei -34 pts now , Crude @ $43.84 brl (-0.40), Brent @ $46.59 brl (+0.12) , Gold @ 1249.94 (+3.04), Silver @ $16.659 (+0.07), Euro @ $1.1341, JPY @ $112.2100, INR @ $64.476

Today's Corporate Action 28th June  Ex Date

ELNET Dividend - Rs. - 1.4000
ENGINERSIN Buy Back of Shares 
INDIANHUME Final Dividend - Rs. - 2.4000

TOP NEWS

Fortis' diagnostic arm SRL Diagnostics may be listed on bourses by August 2017 as part of scheme of demerger from its parent company – sentimentally positive for Fortis Healthcare

Motherson Sumi Systems Board has approved issue of bonus shares. The company has fixed 7th July 2017 as record date for purpose of the bonus issue. Sentimentally Positive.

OTHER NEWS

BHEL bags 15 MW solar photovoltaic plant order on EPC basis in Gujarat. This will be BHEL's first ground-mounted Solar PV project in Gujarat. The company is presently executing over 180 MW of ground-mounted and rooftop Solar PV projects across the country.  

Retail sector - Single-brand retailers may get relief in 30% sourcing norm – positive for long term
There may be relief in sight for some top global retailers as the government plans to ease local sourcing norms for companies such as Marks & Spencer (M&S), H&M and Ikea, which also buy products from Indian manufacturers for global supplies. Foreign single-brand retailers need to meet 30% local sourcing norms to operate their own stores in the country , although the rule was tweaked to give some of them, such as those in technology-related businesses, time up to eight years to fulfill the necessary requirements. But with companies such as Ikea and H&M repeatedly petitioning for a relaxation, the Centre is currently looking at the possibility of giving credit to single-brand retailers that source from India for their international operations.

Textile sector - India's garment exports may hit $20 billion in FY18 – positive for companies like Trident, Arvind, KKCL, SP Apparels, Orbit Exports
As per media reports, India's garment exports are expected to register a 15-18 per cent growth to touch USD 20 billion during the current fiscal following improved market conditions in US and other markets. Due to the world recession and heavy competition from China, Bangladesh and Vietnam, India could not fulfill the export target for the year 2016-17. However, there has been a growth in export to the tune of 13 per cent in dollar terms, in the last 5-6 months. This has been mainly due to the favourable special apparel package announced in July 2016.

Fitch has affirmed its Long-Term Issuer Default Ratings at BBB- while maintaining its negative outlook on eight Indian banks ( including SBI, BoB, PNB, BoI, Canara Bank, Axis Bank, ICICI Bank) – sentimentally negative

Tourism industry - The tourism boards of countries such as Israel, Jordan, UAE and Australia are among those wooing Indian visitors with new measures and incentives, buoyed by a surge in outbound travel from the South Asian nation – positive for outbound tourism and related companies such as Cox & Kings and Thomas Cook India

Ashok Leyland to focus on core commercial vehicles; to tap LCV and export markets more effectively; positive read thru
Ashok Leyland will continue to provide thrust to the core business of commercial vehicles and build a portfolio of profitable segments. It plans to sharpen the light commercial vehicle (LCV) strategy as a slew of products are already in the pipeline. international business will be a very important lever of growth for the company, as the company has planned assembly units at various locations (new bus plants planned in Africa in 2017-18). it will focus on improving the network on cost effective basis particularly in North, Central and Eastern regions targeting improvement in market share in these regions. With focus on technology, It is expecting to reap the benefits of the latest Intelligent Exhaust Gas Recirculation (iEGR) which it has developed for emerging markets like India, for next few years.

MORE NEWS

Ransomware 2.0 blitzes several Indian, European cos
Govt to set up 'war room' to deal with GST issues
IMF cuts US growth forecast to 2.1% for 2017-2018
NITI Aayog proposes break up of Coal India into 7 cos
Russian oil giant Rosneft hit by 'powerful' cyber attack
BofA-ML pegs over 15% credit growth this fiscal
EU slaps Google with 2.42 billion euros fine 
New AS may hit banks' lending to infra, realty firms
Trading tips via SMSes: Sebi seeks RBI, Trai help to prevent such scams
Liberty House in talks to buy beleaguered ABG Shipyard
M&M's tractor business turns more fertile than SUVs, CVs
India's apparel exports to set new record at $20 billion in FY17-18
Govt makes fresh attempt to revive IDBI Bank
MSME Ministry inks pact with SAP India, Intel, HMT
L&T Construction bags orders worth Rs. 2,552 cr
Germany and France to lead post-Brexit EU in further integration 
Suzlon Energy approves allotment of 79.70 lakh shares on FCCB conversion
BHEL wins 15 MW solar PV plant order in Gujarat
US FDA unveils steps to expedite generic drugs availability in the market
ILFS Fund exits Indiabulls’ Worli project for Rs358 crore
Piramal Enterprises to raise up to Rs500 crore via NCDs
ONGC gets green nod for exploratory drilling in KG basin
BSE, NSE to launch F&O contracts in ICICI Pru Life, four others
Dena Bank plans Rs1,800 crore fund raise via QIP
Software testing complete, ready for smooth GST rollout: GSTN
ICEMA cuts construction equipment growth rate to 5% due to GST
India’s tea exports may go up, prices to improve: ICRA
NPPA gets GST ready; releases ceiling price of 761 medicines
Sun Pharma, NIV join hands to fight zika, chikungunya, dengue
SpiceJet is world’s top airline stock
RBI on alert as foreign stake in AU nears 49%
GST: Implementation advantage for larger companies
Market in a consolidation mode over GST launch

Tuesday, 27 June 2017

27 June 2017 - Views & News

MARKET INSIGHT

Markets are likely to open flat. On the downside 40 DMA 9500 is a major support to watch out for. As long as bulls manage to defend that level on closing basis the bullish outlook remains intact. On the higher side, 9600-9620 is a key hurdle zone from near term perspective.

Nifty Spot Levels

Support 9560 – 9500 - 9430
Resistance  9620 – 9709 - 9788

GLOBAL MARKET

The S&P 500 and the Dow were slightly higher on Monday but gains were muted by a fall in technology stocks which nudged the Nasdaq lower as investors turned to more defensive sectors.
Technology stocks, which have been under pressure as investors worry about stretched valuations, hit a session low in late afternoon trading.
Data on Monday showed new orders for key US-made capital goods unexpectedly fell in May, with non-defence orders excluding aircraft - a closely watched proxy for business spending plans - dropping 0.2 percent.
The Dow Jones Industrial Average was up 39.35 points, or 0.18 percent, to 21,434.11.

MARKET UPDATE

Sgx Nifty +33 pts(9625) (Nifty fut 9592) Dow +14.79 pts ,Nsdq -18.10 pts , S&P +0.77 pts‎, Bovespa +1100 pts , Ftse +22 pts , Dax +37 pts , Cac +29 pts , Nikkei +62 pts now , Crude @ $43.41 brl (+0.03), Brent @ $46.13 brl (-0.03) , Gold @ 1244.13 (-2.27), Silver @ $16.547 (-0.02), Euro @ $1.1183, JPY @ $111.8700, INR @ $64.431

Today's Corporate Action 27th June  Ex Date

APOLLOTYRE Dividend - Rs. - 3.0000
FCH Final Dividend - Rs. - 2.6000

TOP NEWS

ALERT: Banks could face 60% haircut on 12 large accounts under NPA as per Crisil report – Negative read thru for public sector banks, ICICI Bank, Axis Bank; rough estimates suggest that banks might have to set aside Rs80,000 crore for provisions/write off of they take 60% haircut on 12 large accounts gone bad

Can Fin Homes board approves stock split, Rights issue – Positive read thru
Can Fin Homes board has approved sub-division of equity share of face value of Rs.10 into equity shares of face value of Rs.2 each, subject to regulatory and other approvals. It has also approved issue of shares on Rights basis upto Rs.1000 Crore – Positive read thru for as rights issue at present valuations will be book value accretive and add to the Tier 1 Capital; stock split will be sentimentally positive

Maruti Suzuki likely to hit 2 million sales mark by H2FY20 as against earlier target of FY20 end; new target implies 10% CAGR growth in next three years as against earlier 8.5% CAGR; positive read thru……(detail in other news)

Nocil is expected to sell its entire 4.81% stake in Navin Flourine for a consideration of Rs 140 Crs. The company already has a strong cash position of around Rs 120 Crs. Positive for the stock as there could be possibility of a buyback and a special dividend for Nocil.

Aurobindo’s Unit VII completes USFDA inspection without any observations – Positive for Aurobindo.

Natco Pharma and Dr Reddy get USFDA approval for Azacitidine Powder (gVidaza); used to treat Myelodysplastic Syndrome – Positive for Natco & Dr Reddy.

FMCG Sector - GST rollout - Companies say retailers refusing to buy fresh stocks; retailers want consumer firms to protect margins – will have short term impact on Q1 and Q2 sales of FMCG companies unless more clarities emerge on implementation of GST….(details in other news) 
OTHER NEWS

Pincon Spirit to set up 2 new plants in West Bengal for manufacturing of rice bran oil – will help in driving the company’s FMCG business; positive read through for the stock
Pincon Spirit will set up two new plants in West Bengal at a total cost of about Rs. 50 crore. It will have a production capacity of 200 mt per day. Of the total production, 50 per cent will be for captive use of Pincon rice bran oil brand sales across India, while the rest will be for bulk supplies to corporate buyers. The board has also approved setting up of a polythylene terephthalate bottle (PET) manufacturing plant at Asansol with a tentative cost of Rs. 20 crore.

Banking Sector: The Reserve Bank of India asks banks to do 50% provisions for loans being referred to the bankruptcy courts -  negative read thru
RBI told banks to set aside at least 50% of the loan amount as likely losses for all cases referred to the insolvency process. The regulator also said that provisioning should be 100% in those cases that don’t get resolved in the initial mandatory period for loan restructuring and instead are forced into liquidation -  Negative read through. While the market was  expecting liberal provisioning norms after RBI ordered  banks to start insolvency proceedings against the country's top 12 defaulters. There is also a worry that with bankruptcy courts as yet untested, many cases may not get resolved in the stipulated time and be headed for liquidation, which could double the provisioning for the next fiscal year as well, stretching out bank's woes. The saving grace here is that the RBI has allowed that Banks can spread the provisions across four quarters from June 2017 till March 2018. The indebted dozen account for 25%, or Rs 2.5 lakh crore, of the total bad loans in the banking system. Banks have indicated that provisioning on these accounts is now in the range of 30-40% and thus they will need another Rs 30,000-50,000 crore by the end of this fiscal year.

Trent - Tata-Tesco JV to open 50 retail stores, distribution centre in Hyderabad – positive read through for Trent
Trent Hypermarket, a 50:50 joint venture between Tata and British retailer Tesco, plans to open 50 retail stores in Hyderabad in the next 2-3 years apart from setting up a distribution centre. The expansion is part of the 200 stores planned for Mumbai, Pune, Hyderabad and Bengaluru. The retailer currently has 45 stores across these cities. The company has identified a 70,000 sft space for its distribution centre that will cater to the Hyderabad market. It already has two distribution centres that cater to Mumbai-Pune and Bengaluru stores.

Maruti Suzuki likely to hit 2 million sales mark by H2FY20 as against earlier target of FY20 end; new target implies 10% CAGR growth in next three years as against earlier 8.5% CAGR; positive read thru
As per Maruti Suzuki, it is likely to hit production target of 2 million vehicles on an annualised basis at least two quarters into fiscal 2019 (H2FY2020), powered by demand for new models, almost all of which have become best sellers in their respective categories. Maruti anticipates its production growth to be a minimum of 10% in the coming three to four years. Maruti produced 1.58 million vehicles in fiscal 2017. A 10% annual expansion (expectations are for faster growth) will take output to more than 1.9 million in fiscal 2019 and 2.1million in FY2020. Maruti management states If the market conditions become better as is expected and the economy continues to grow, Maruti will achieve the 2 million figure in late 2019 or early 2020. The new target implies 10% CAGR over FY2017-2020 which is higher than earlier growth of 8.5% CAGR. Positive

Bajaj Auto to launch Pulsar NS 160 next month to fortify presence in premium motorcycle space; positive
Bajaj Auto will launch the Pulsar NS160 next month as per media reports. The company dealerships have started billing for the motorcycle and the Pulsar NS 160 is expected to reach the dealerships by next week. The Pulsar NS160 is powered by a 160.3cc, single-cylinder, oil cooled, four-stroke engine, capable of producing 15.2 hp of power and 14.6 Nm of torque. The engine is mated to a 5-speed gearbox. Pulsar NS160 will be introduced at a price tag of around Rs 80,000 to Rs 85,000, ex-showroom, Delhi and will compete with the likes of Suzuki Gixxer and Honda CB Hornet 160. Positive read thru

FMCG Sector - GST rollout - Companies say retailers refusing to buy fresh stocks; retailers want consumer firms to protect margins – will have short term impact on Q1 and Q2 sales of FMCG companies unless more clarities emerge on implementation of GST
A tussle has erupted between large consumer companies and organised trade just ahead of the introduction of the goods and services tax (GST) on July 1. FMCG companies say that large retailers are refusing to buy fresh stocks starting June 26 till the month ends, while retailers want consumer companies to protect margins. According to the industry, educating over 4.5 million retailers is a significantly big task and there is confusion among the trade about buying fresh stocks now. There will be some wholesalers and retailers who will be out of stock for a while, leading to a shortage of products on shelves. While in the long term, GST is positive, it will take about a quarter for things to settle down. Through May and June, companies have been offering the trade product and cash discounts to push stocks ahead of July 1, saying that managing and evaluating inventory across millions of outlets in the pre-GST and post-GST scenario will be a mammoth task, and also to avoid the same product having two maximum retail prices (MRPs). But despite the step-up in margins by companies, retailers say they had reduced stock by about 25% since they didn’t want to be saddled with unsold stocks on July 1.

Marico launched Set Wet range of beard gel in male grooming space; it is the 3rd new launch by the company in time frame of last 30-45 days (most launches were done in personal care segment) – positive read through for the stock

Raymond firm on India plans with Rs1,400 crore investment – positive read through for the stock; but corporate governance issue remains overhang on the stock
Raymond plans to invest Rs1,400 crore in a phased manner in its greenfield project at Amravati to expand the cotton textile manufacturing footprint. Spread across 500 acres, the project is in line with our strategy to expand the cotton textile manufacturing footprint by creating world-class linen, cotton shirting, denim and garmenting at the newly created Textile Park in Amravati. On the retail side, the company plans to put up 300 Raymond shops and 200 other format shops under Park Avenue and Colour Plus in tier-IV and tier-V cities over the next two years. It currently has 1,100 shops in 450 cities.

Aditya Birla's Fashion & Retail store 'The Collective' plans to diversify into electronics – positive for the long term
Aditya Birla Fashion & Retail’s ‘The Collective’ has plans to diversify into newer categories such as high-end electronics. The Collective retails over 100 brands, including Versace, Armani, and Alexander McQueen, through its eight shops in different cities and e-commerce. It will launch new stores in Hyderabad and Chennai this year besides getting on board more brands like Paul Smith and UK-based brand Farah. It will also launch mono-brand stores of some of its brands like Ted Baker. Ted Baker, Fred Perry and Hackett continue to lead the growth for the company. Sunglasses as a category has grown tremendously and ABFRL sees traction in fashion jewellery. The Collective will also launch Kate Spade jewellery and is in talks with other popular international jewellery brands.
M&M has discontinued the AT (automatic transmission) variant of its leading utility vehicle scorpio with immediate effect citing end of life cycle for the product. This is unlikely to have any material impact of the sales volumes of the company as the AT variant constitute a small share of the total sales.

Government is likely to implement open acreage licencing policy from 01-July-2017 under which oil companies will be allowed to pick their own area for exploration. The existing New Exploration Licencing Policy will come to an end withe introduction of open acreage licencing policy - positive for oil & gas sector especially compannies engaged in upstream business (ONGC, Oil India and Reliance Industries)

Reliance Industries (RIL) and British Petroleum (BP) are likely to award contracts for the development of their R-series project within few weeks as per the media reports - positive read through for RIL.

Reliance Industries plans to raise Rs25000 crore through non convertible debt instruments as per the media reports. The money Lilley to be utilised for investment in its telecom subsidiary Reliance Jio.

Cadila gets USFDA nod for Hepatitis-B Drug Entecavir Tablet – Positive for Cadila.

Sun Pharma in Focus : Mylan gets approval for gGleevec – Negative for Sun.

Glenmark Gets US FDA Nod For Anti-inflammatory Drug, Indomethacin Capsules.

TVS Motors, Eicher Motors (Royal Enfield) to pass on GST benefit to customers; neutral
Two-wheeler makers TVS Motor Company and Royal Enfield will pass on expected benefit of GST to customers by lowering prices of their vehicles. Royal Enfield has reduced prices of its models by up to Rs 2,300 (on-road Chennai) while TVS Motors did not disclose quantum of price cut on its product portfolio. Under GST, most of the two-wheelers will attract a tax rate of 28%, lower than total tax incidence of around 30% at present. 

MORE NEWS

ONGC turns to GSPC’s undersea infra for KG gas output
Lupin founder and Chairman DB Gupta passes away
Italian bank deal lifts European shares; dollar on back foot
India probes dumping of Chinese polyester yarn
Raghuram Rajan was offered RBI dy governor’s post in 2004
Japanese cos invested $4.7 bn last year in India, says envoy
HDFC Life, Max prepare new structure for merger
GST rollout from 1 July, but confusion still persists among auto, FMCG firms
Snapdeal sale to Flipkart delayed due to complex due diligence process
Cargo traffic at 12 major ports up 6 per cent to 114 million tonnes in April-May
SAIL seeks NITI Aayog help to resolve differences with ArcelorMittal
Job market eyes GST booster for over 1 lakh immediate openings
WB clears $250-million loan to train India’s job seekers
NSE co-location case: Sebi wants unlawful gains quantified
Over 60% of bank credit goes to west & south
Activist buys 1% stake in Nestle, asks it to sell holding in L’Oreal
Gold futures fall 1.24 pc on global cues
Govt. defers TDS, TCS under GST to ensure smooth rollout
EU likely to slap 2b euro fine on Google this week
Budget likely in Nov as govt may switch FY to Jan-Dec

STOCK IN NEWS 

1.HDFC Ltd will seek shareholders’ approval at the AGM next month to raise up to Rs 85,000 crore through various debt instruments
2.Cadila Healthcare board has approved raising up to Rs 18,500 crore through various financial tool 
3.Grasim 20th July record date for demerger of financial services from Grasim: 7 shares of Aditya Birla Capital ltd for 2 shares of Grasim
4.Nocil board approves to sell 4,71,015 shares of Navin Fluorine worth 141cr
Sterlite tech chosen for kakinada smart city project will supply equipment for command center, CCTV, wifi and other electronic equipment
5.US FDA completes inspection of Aurobindo Pharma's Unit 7 with zero observations: sources
6.IDFC in focus: Vikram Limaye resigns as MD & CEO
7.Loan account of Bajaj Hindustan Sugar will be taken under S4A Scheme
8.Endurance Tech - Crisil upgrades long term rating to AA/Stable from AA-/Postive
9.Mafatlal Industries board approves to sell 1,18,389 shares of Navin Fluorine worth around 33cr
10.JSW Steel BM on June 29th June to consider raising additional funds
11.UCO Bank - ICRA revises on tier II bonds to A+ from AA-
12.Infosys settles with New York Attorney General relating to amount of taxes paid in NY
13.LT Foods inaugurates rice plant at Rotterdam, Netherlands with capacity of 60,000 tonnes
14.SBI, Bhushan steel, Amtek, Jyoti in focus: SBI chooses various consultancy firms for handling loans of Amtek, Electrosteel, Jyoti structures, Bhushan steel
15.HPCL joins talks to buy stake in Russian oil fields
16.SAIl eyes South Africa, Canada for coal import
17.Adhunik metaliks to plead insolvency
18.HDFC seeks shareholders nod for 18000cr fund raising
19.Lupin Founder Desh Bandhu Gupta Passes Away At The Age Of 79
20.From PTI: ONGC Mulls Using GSPC's Undersea Infra To Produce Gas From KG-Basin
21.FieldsSyndicate Bank Gets Shareholders' Nod For Raising Capital Worth `3,500 Cr.

Friday, 23 June 2017

23 June 2017 - Views & News

 MARKET INSIGHT

 Nifty is likely to open on a flattish note based on the global cues. Support for the day is placed at 9600 levels and if breaks then one can see further downside for the day.

Nifty Spot Levels

Support 9600 – 9560

Resistance  9709 - 9750

GLOBAL MARKET

Asian shares baulked at the starting gate on Friday but remained on track for a weekly gain, while crude oil prices pulled away from this week's 10-month lows.MSCI's broadest index of Asia-Pacific shares outside Japan was flat in early trade, and up 0.4 percent for the week.

US economic data on Thursday showed the number of Americans filing for unemployment benefits rose slightly last week, but remained at levels consistent with a tight labour market. Home prices also increased in April more than expected.

MARKET UPDATE

Sgx Nifty +6 pts Dow -12.74 pts ,Nsdq +2.73 pts , S&P -1.11 pts‎, Bovespa +510 pts , Ftse -8 pts , Dax +19 pts , Cac +7 pts , Nikkei +26 pts now , Crude @ $42.87 brl (+0.07), Brent @ $45.28 brl (+0.01) , Gold @ 1252.69 (+3.29), Silver @ $16.567 (+0.05), Euro @ $1.1149, JPY @ $111.2900, INR @ $64.601

Today's Corporate Action 23rd June  Ex Date

STEELCAS Dividend - Rs. - 0.6000

TOP NEWS

Fortis Healthcare – According to media reports Integrated Healthcare Holdings (IHH) of Malaysia has pulled out of its exclusive negotiations with the Singh brothers to acquire a controlling interest in Fortis Healthcare and Fortis Malar which will also house SRL Diagnostics following a group restructuring exercise; IHH was planning to acquire 26% stake in Fortis Healthcare for ~Rs3600crore – negative read through for the stock 

Banking sector: SBI has got mandate from the JLF to take three companies namely Essar steel (debt of Rs 44,000 crore), Bhushan steel (debt of Rs 47,000 crore) and Electro steel (debt of Rs 10,200 crore) to the National Company Law tribunal (NCLT) – Positive read thru for lenders as this decision indicates the urgency with which the banking system is working to resolve the NPL problem. Authorizing SBI removes the hurdle of infighting between the lenders ensuring faster and more meaningful negotiation process.

Maruti Suzuki new Dzire receives 51,400 bookings; commands waiting period between 6 to 8 weeks; strong response indicates sustained volumes; positive (details in other news)

Reliance Industries (RIL) and British Petroleum has withdrawn gas price related arbitration against government of India as per the media reports. We this as a positive development for RIL as it will enable RIL to claim premium pricing for its deep water blocks (in which the two companies are investing Rs40,000 crore).

Mindtree to consider buyback of shares , positive read-thru for the stock, also CafĂ© Coffee day  (CCD) being one of the largest shareholder also to be in focus
MindTree announced it would look at share buyback plan. The company has informed the exchanges the proposal for a buyback would be taken up at the Board meeting on June 28. Note that the IT companies have started opting for share buyback route to reward the shareholders.

Wockhardt settles commercial litigation for Trisenox in London HC by paying Rs 186cr (~23 million Pounds) with Cephalon Inc an affiliate of Teva Pharmaceuticals in UK – Negative for Wockhardt

Indian IT sector: Accenture _Q3FY17 result: Inline performance, digital growth continue to remain strong (long term positive for Indian IT, no major read-thru for near term)
For Q3 FY17, Accenture revenues were up by 5%YoY in reported terms and 7%YoY growth in CC term to $8.9 billion. This was mainly driven by helped by strong demand for its digital, cloud and security-related services (continued double digit growth), which make up more than 50% of revenue (vs 45% in Q2FY2017). Outsourcing grew by 6% yoy, 7% in  CC term, while consulting growth for the quarter was at 4% yoy, 6% on CC term. During the quarter, bookings were at $9.8 billion, representing consulting bookings of $5.2 billion (up 6% yoy) and outsourcing bookings of $4.6 billion (10% yoy). Accenture expects net revenues for the fourth quarter of fiscal 2017 to be in the range of $8.85 billion to $9.10 billion, 5% to 8% growth in CC terms. The management has adjusted its  FY17 revenue guidance from earlier 6-8% to 6-7% on CC basis on account of currency headwinds.


OTHER NEWS

Reliance Infrastructure , Reliance Defence:  To partner with Daher for aerospace components, stock to be in focus
Reliance Defence, a fully owned subsidiary of Reliance Infrastructure Limited, signed a Memorandum of Understanding (MOU) at the Paris Air Show with Daher Aerospace, France, a leading supplier of integrated systems for Aerospace and Advanced Technologies. Daher Aerospace is tier one manufacturer in Aerostructures segment comprising Fuselage Sections and Fairings made of composites as well as conventional metals for Dassault Aviation and other leading global aircraft manufacturers. In India, Dassault has 50% Offset obligation for 36 Rafale aircraft, a contract valued close to € 8 billion. Reliance Defence is a key partner with Dassault Aviation for the largest ever offset program in India. Signing this MOU on the sidelines of the Paris Air Show, Reliance Defence envisages a strategic partnership with Daher with aim to jointly explore opportunities in design and manufacture of composite parts; design and build welded ducts, metal conduits, swaged pipes and cable harness supports; aerostructure components, integrated logistics, airframes/ assemblies and related industrial activities. The new facility with Daher Aerospace fosters a comprehensive defence manufacturing eco system through backward integration under the Government ‘Make in India’ program for indigenous manufacturing of aerospace components.

Indian Oil Corporation Limited’ (IOCL) Paradip refinery operated at 105% utilization rate with a throughput of 1.3mmt in May-2017 as compared to 58.1% in April-2017 and 96.4% in March-2017 – positive read through for IOCL.

Quess Corp, subsidiary of Thomas Cook India, will be buying remaining 51% stake in Comtel Pro Rs0.5crore; Comtel pro is engaged in the business of providing service in the field of general staffing, training and skill development – positive read through for Quess Corp as the company is focusing in four business vertical of global technology solutions, general staffing, people & services and integrated facility management

Maruti Suzuki new Dzire receives 51,400 bookings; commands waiting period between 6 to 8 weeks; strong response indicates sustained volumes; positive
Maruti Suzuki recently launched new “Dzire” has received 51,400+ bookings and the waiting period on some variants ranges between 6 to 8 weeks. The new Dzire has received major updates in the interior and exterior and gets many new features, some of which are first-in-segment. The new Dzire is based on the HEARTECT platform (a reworked version of the Baleno hatchback) that makes it lighter in weight, than its predecessor. New Maruti Suzuki Dzire is available in a price range between Rs 5.45 lakh for the base variant to Rs 9.41 lakh to the top end trim, ex-showroom, Delhi. Positive read thru

Shriram EPC, bags orders worth Rs165 crore  for water management, first order worth Rs 83.37 crore from the City Corporation Davanagere to improve bulk water supply and is to be completed in 30 months and second order worth Rs 82.56 crore from Tamil Nadu Water Supply & Drainage Board for implementation of Water supply scheme in Hosur Municipal Corporation to be executed within 24 months, positive read-thru

ITC - ITC hopes to make Savlon a Rs 500 crore brand by consumer spends in next 4 years and handwash would be a major contributor of that. The company has also introduced Rs. 5 sachet pack to expand the brand’s presence in the handwash category. Currently, Savlon is a Rs 150 crore brand by consumer spends. Currently, Dettol (Reckitt Benckiser) and Lifebuoy are the leaders in the segment. Savlon has 6.1 per cent share in handwash market compared to over 50 per cent of Dettol and 25-30 per cent of Lifebuoy.

Websol Energy,Indosolar Ltd, Surana Solar, Swelect Energy  stock in focus- Finance Ministry rejects Rs 20,000 crore plan for local solar equipment firms with incentives and subsidies to help them withstand the flood of Chinese imports. The domestic industry is concerned about rising imports of solar equipment, which rose 38 per cent to Rs 21,400 crore in 2016-17, accounting for 90 per cent of the solar cells and modules used by Indian solar developers. The local manufacturer already gets incentivize solar manufacturing under the Modified Special Incentive Package Scheme (M-SIPS).  

Infosys, Imprezzio partner to boost customer service
Imprezzio Inc. says it’s formed a partnership with Infosys to help both companies improve service to their customers. Infosys will help its clients with top-line revenue growth and strategic initiatives by introducing Imprezzio.

Wipro Collaborates with Red Hat for Cloud Application Factory
Wipro announced collaboration with Red Hat, to set up a cloud application factory designed to offer developers a repeatable and rapid methodology for application modernization across public, private, and hybrid clouds. Wipro’s cloud application factory can help drive the strategy, design, and delivery of next generation applications globally, using Red Hat OpenShift Container Platform.

Tata Communications launches private cloud node in Malaysia
Tata Communications has launched three new nodes for its IZO Private Cloud service to support enterprises. The new private cloud nodes in Germany, United Arab Emirates (UAE) and Malaysia enable CIOs to gain unprecedented control over all their applications by creating a truly hybrid, high-performance IT infrastructure.

Tata Motors to save Rs 400 cr on workfoce reshuffle; positive read thru
Tata Motors is set to save Rs 300-400 crore in employee restructuring exercise. The recast of the white-collar workforce has resulted in 1,200-1,300 employees getting reassigned, shifted to other units or asked to leave. The company has also slashed 2,500 positions, by eliminating a plethora of designations, all of which will add to the bottom line. With a focus on speed and accountability, almost 8-10% of white-collar jobs have been cut, lowering numbers by an estimated 700-800 in the past few months. Next the company plans to trim its factory workforce by 10% or 3,000 people.

La Opala,  settles dispute with workers union at its Madhupur plant. Operations to return to normalcy by July 10, positive read-thru

NTPC targets 250 billion unit power generation in FY2018

Reliance Industries (RIL) and British Petroleum (BP) are likely to award contracts for the development of their R-series project within few weeks as per the media reports - positive read through for RIL.

MORE NEWS

SBI to take three steel companies to bankruptcy court
RIL, BP withdraw gas price arbitration against govt
Govt to ignore genuine mistakes in GST initially: Adhia
Provide adequate details in passbooks: RBI to banks
Resolve 55 NPA accounts in six months: RBI to banks
Sinha meets Mittal, Ambani; assures 'corrective steps'
Asset quality pain to continue, GNPAs to rise: ICRA
Banks to take a haircut for insolvency of NPAs
May cut Britain's rating again before Brexit terms: S&P
EPFO ties up with Hudco to enable Rs 2.67 lakh housing subsidy to members
Sebi proposes stricter separation on investment products
Mindtree to consider share buyback
Govt loosens norms for auditor rotation at unlisted companies
Rosneft closes $12.9-b deal with Essar Oil
SEBI puts 25% public float matter back in Govt’s court
Centre facilitates talks between Tata Power, Gujarat
Board to decide on JK House sale plan: Raymond CMD
SAIL disinvestment: SBI Cap engaged as transaction advisor
Glenmark Pharma’s overactive bladder drug gets USFDA nod
Tata Power offers to sell 51% stake in Mundra project for Re1
Indiabulls Real Estate promoter sells shares for Rs662 crore
Altice raises $1.9 billion in year’s second-biggest US IPO
USFDA plans to ease market entry of generic drugs
RBI adds 3 new members to oversight committee for bad loan resolution
Sebi relaxes open offer norms, moves to discourage P-notes
Arvind Panagariya sees action on privatising Air India in 6 months
Centre forced to cut Rs 40,000 cr expenditure, axe falls on food subsidy
US announces $7.5 mn to advance India’s power grid
AI debt unsustainable, should go to private hands: Panagariya
GST to lower overall tax burden over time, says RBI governor
Sensex makes a 136-pt rebound as bad loan fight paces up
Rupee dives to 3-week low of 64.59 against dollar