}

Thursday, 31 August 2017

31 August 2017 - Views & News

MARKET INSIGHT

Markets are likely to open negative. Nifty has multiple resistances in the zone 9915 – 9925. If it manages to break above the zone then it can go higher towards 9965 – 10041. However, if it fails to sustain above the resistance zone then it can drift lower towards 9818 – 9740 in the near term.

Nifty Spot Levels

Support 9818 – 9740 – 9685
Resistance  9925 – 9965 - 10041

GLOBAL MARKET

• US stocks rose on Wednesday after stronger-than-expected U.S. economic growth outweighed concerns about escalating tensions between the United States and North Korea and uncertainty in the aftermath of Hurricane Harvey.
• Gross domestic product was revised higher to show a 3.0 percent annual growth rate in the second quarter, due partly to robust consumer spending as well as strong business investment.
• The Dow Jones Industrial Average rose 27.06 points, or 0.12 percent, to end at 21,892.43.

TOP NEWS

Wonderla Holidays: inaugurates 2 new rides in Kochi including India's first reverse lopping roller coaster; with this total rides at Kochi park stands at 57 – positive read through for the stock as it will help to improve footfalls at Kochi park in the near term……(8:57 am)

Crompton Greaves Consumer Electrical: Looking a controlling stake in Surya Roshni Ltd for its lighting division along with private equity players like Warbug Pincus and Bain Capital. Surya’s consumer electric division consists of LED and conventional lighting, fans and other appliances which reported sales of Rs 1,349 crore in FY17. We believe it is positive for Crompton Greaves Consumer Electrical…….(8:50 am)   

 Aditya Birla Capital: the demerged company from Grasim which holds controlling stake in financial services businesses of the group, would be listed tomorrow (sep 1). The demerger and listing of financial services business under one umbrella was  part of the group restructuring exercise and was aimed at unlocking value for shareholders. – We expect the company to list in the range of Rs165-180/share which would be 12-15% premium to recent large transaction where Azim Premji Trust invested Rs700 crore for 2.2% stake in the company – View: Quality company with controlling stake in Aditya Birla group’s asset management, insurance and lending businesses is good investment opportunity for long term investors.

Maruti Suzuki: likely to launch petrol version of Vitara Brezza later this year; to introduce facelift in 2018; positive ……(details in other news)

Schaeffler India: Schaeffler to merge three Indian entities into a single firm Schaeffler India; merger ratios positive for Schaeffler India; positive….(details in other news)

Banking Sector: The RBI has said that banks will have to set aside 50 per cent of debt the moment a company is referred to the National Company Law Tribunal as part of the insolvency process - Negative read thru as this move will impact banks earnings even though most have provided for 25-30 per cent only. In the event of a resolution, banks will typically need to take a haircut as well.The provision costs would continue to increase for the rest of FY18 though the extent could vary among banks.


OTHER NEWS

Biocon Limited: said that the USFDA has notified its partner Mylan that it will take more three months to review application for Trastuzumab 351(K). Target action date will be 3rd December 2017.   As per the company spoke person this extension will have no impact on anticipated timetable for commercialization of this product in USA.  Neutral Impact on stock.

Maruti Suzuki: likely to launch petrol version of Vitara Brezza later this year; to introduce facelift in 2018; positive 
Maruti Suzuki is expected to launch petrol version of its compact SUV Vitara Brezza later this year. It will also launch refreshed version in 2018. The facelift will get a new grille, redesigned bumper at the front and back, and a new design for the tail-lamps as well. The car is expected to get a host of updates inside too, including a seven-inch touch screen infotainment system compatible with Apple CarPlay and Android Auto, flat bottom steering wheel and new air-conditioning controls.  Brezza stormed Maruti into leadership position in SUV space and introduction of petrol variant would enable to further ramp sales. 

Thomas Cook (India): has entered into a strategic partnership with Euronet Worldwide to introduce significant additional benefits on its unique prepaid travel cards — The Thomas Cook Borderless Prepaid multi-currency and One Currency card in India (covers  eight global currencies in one card with benefits of emergency cash) – positive read through for Thomas Cook India’s travel and travel related services business.

Branded Apparels: India’s apparel exports continue to remain volatile and un-encouraging with the global apparel trade not showing any signs of uptick amid subdued demand trends in the key importing countries – negative for apparel exporting companies such as SP Apparels and marginally negative for companies such as Arvind, Raymond and Aditya Birla Fashion

RIL: To raise Rs2,500 crore through NCD to refinance existing debt; neutral read through 
Reliance Industries (RIL) is expected to raise Rs2,500 crore through non convertable debentures (NCD) to refinance its existing debt as per media reports - Neutral read through for RIL.

Schaeffler India: Schaeffler to merge three Indian entities into a single firm Schaeffler India; merger ratios positive for Schaeffler India; positive
German auto component major Schaeffler AG announced plans to merge its three group firms in India to create a Rs 3,570 crore single entity supplying parts for automotive and industrial applications. As part of the plan, two group firms, INA Bearings India Pvt Ltd (INA India) which is engaged in manufacture of engine, transmission and chassis componenets and bearings and LuK India Pvt Ltd (LuK India) which is engaged in manufacture of clutch systems, flywheels and transmission systems will merge with listed entity Schaeffler India Ltd which manufactures roller bearings. As part of the merger, Schaeffler India will issue 10 equity shares to shareholders of INA India, for every 65 equity shares held (Schaeffler India networth is 1,567 cr as against INA networth of 241cr).  It will also issue 10 equity shares to shareholders of LuK India, for every 35 equity shares held (LuK networth is RS 314 cr as against 1,567 cr of Schaffler) Schaeffler India will increase its outstanding equity shares to 31.26 million with the issue of 14.64 million new equity shares. Post the merger, promoter group holding in Schaeffler India will be 74.13%. At present, the promoters hold 51.33% in Schaeffler India and 100% in both INA India and LuK India. As per management, the merger will strengthen group's position and leverage superior technology, quality and innovation to deliver solutions to customers. The merger is subject to shareholders and regulatory approvals and is expected to take approximately 12 months in the ordinary course. 

Oil and Natural Gas Corporation (ONGC): is expected to soon seek shareholders nod to raise Rs25,000 crore to fund acquisition of government's 51.11% stake in Hindustan Petroleum Corp (HPCL).

NTPC: Signs a term loan agreement for Rs 3,000 crore with ICICI Bank for partially funding its capital expenditure.

Inox Wind: Bags 100 MW project from Adani Green Energy. The capacity was won under the round 1 of SECI bids for wind power projects connected on the central grid. The project is scheduled to be executed over the next 6-9 months and will be executed on a turnkey basis.  

 MORE NEWS

Aim of demonetisation was not to confiscate money: FM
Almost all denotified notes back in the system: RBI 
Government notifies e-way bill, exempts some items
Aadhaar data kept only on own secure servers: UIDAI
NDB approves $1.4 bn loan for India, China, Russia
US economy grew 3 per cent in Q2: Commerce Dept 
Investor plaint on brokers: Sebi disposes of case agst NSE
Bird Group interested in acquiring AI's ground handling biz
Wipro gets shareholders approval for Rs 11,000-cr buyback proposal
BSE's 'compulsorily delisting' plan runs into legal hurdle
Govt extends OBC creamy layer to PSUs, financial instts
Govt rules out cutting taxes on petrol, diesel
Govt to tighten import norms for steel products
G-Sec yields have remained sticky despite RBI’s rate cut
Flipkart increases paid up capital to be a GST Suvidha Provider
India may see low plant load factor until 2018-19, says study
Agri Ministry wants tax exemption for FPOs 
NTPC OFS gets tepid response from institutional investors 
Govt to appoint transaction advisers for Air India disinvestment
RIL to raise Rs2,500 crore via debentures
Aditya Birla Capital to be listed on 1 September
Aurobindo Pharma in talks to buy Shreya Life Sciences’s Russia business
Persistency ratios show life insurers struggle to keep policyholders on board
Economic activity to expand 7.3 pct this fiscal: RBI
RBI annual report: Nearly 8 lakh pieces of fake notes detected in FY17
DIPP approves 2 FDI proposals in single brand retail sector
Moody’s cuts foreign currency deposit ratings of IDBI Bank
Schaeffler to merge three Indian entities into a single firm
Battle for India’s $45b gold industry has begun
L&T sees $28b golden goose in defence contracts
Deadline for Aadhaar will be extended till Dec 31: Govt to SC
Cabinet nod for ordinance to hike cess on luxury vehicles
BI readies 2nd list of bankruptcy candidates, mostly infra companies

STOCK IN NEWS

1. Green light for 25% GST cess makes automakers see red
2. Drug distributors push for cap on margins
3. Saab to tie-up with Adani to build Gripen fighter in India
4. L&T sees $28-billion golden goose in defence orders
5. Era Infrastructure insolvency case to be heard by larger Bench
6. Govt mops up Rs 9,100 cr through NTPC share sale
7. Indian refiners surge as Hurricane Harvey hits US operations
8. BlackBerry's all-touch, water-proof flagship device to launch in October
9. Adani's Carmichael coal project moving at slow pace: Australian minister
10. Wipro gets shareholders approval for Rs 11,000-cr buyback proposal
11. Ramdev's Patanjali to launch 'Divya Jal' to take on Bisleri, Aquafina
12. Inox Wind bags order for 100 MW project from Adani Green Energy in Gujarat
13. Zydus Cadila gets USFDA nod for drug used to reduce risk of strokes

Wednesday, 30 August 2017

30 August 2017 - Views & News

MARKET UPDATE

Sgx Nifty  +65 pts Dow +56.97 pts ,Nsdq +24.06 pts , S&P +2.06 pts‎, Bovespa +313 pts , Ftse -64 pts , Dax -177 pts , Cac -47 pts , Nikkei  +124 pts now , Crude @ $46.27 brl (-0.17), Brent @ $51.54 brl (-0.08) , Gold @ 1313.72 (-5.18), Silver @ $17.357 (-0.06), Euro @ $1.1974, JPY @ $109.9000, INR @ $64.015

Today's Corporate Action 30th Aug  Ex Date

GAELFinal Dividend - Rs. - 0.8000
JKLAKSHMI Dividend - Rs. - 0.7500
KKCL Final Dividend - Rs. - 1.5000
MSL Bonus issue 1:1
MYSORPETRO Dividend - Rs. - 1.0000
ORBTEXP Final Dividend - Rs. - 0.6000
PIIND Final Dividend - Rs. - 2.5000
SHREYANIND Dividend - Rs. - 1.5000
STHINPA-B Dividend - Rs. - 1.5000
YUKEN Dividend - Rs. - 1.0000

TOP NEWS

Cabinet meeting on review of GST rates: Likely losers could be automobiles as government to consider raising cess on large cars/SUV’s from current 15% to 25% today -- Sentimentally negative for M&M, Maruti (though news on expected lines). Second, the govt could again review GST on tabacco products (possible lowering for employment intensive biddis and further hike for cigarettes) – Negative for ITC, GTC etc.

Banking Sector: As per media reports the Reserve Bank of India (RBI) is readying to release a second list of loan defaulters that may contain some 30-40 companies (which may include Videocon, Castex Technologies, Visa Stee and JSPL). Most of the companies are said to be from the infrastructure and power sectors and in each case, the debt level varies between Rs 3,000 crore and Rs 50,000 crore - Sentimentally positive for Banks.

AUROBINDO PHARMA: Is in talks to buy the Russia business of Mumbai-based Shreya Life Sciences in a deal potentially valued between $80 mln and $100 million -- Neutral

RBL BANK: Samara Capital and Norwest Venture Partners have sold 36 lakh shares and 60 lakh shares, respectively, in the bank through bulk deals on the National Stock Exchange at 515 rupees apiece – Negative read thru; such huge offloading by anchor investors leads to supply overhang on the stock (at least in the near term)


MRF to set up plant in Gujarat at an outlay of Rs 2,000 cr; targets Rs 22,000 cr turnover by FY2020 (industry leading topline CAGR of 14%); positive…  (details in other news)

OTHER NEWS

Tata Motors to launch Tiago Wizz limited edition later this year; positive

Tata Motors will launch compact hatchback Tiago Wizz Limited Edition. The car will come with black roof and a spoiler, dual tone wheel covers with red accents, roof rails, blacked out on B-pillar and Wizz limited edition badge at the back. Inside the cabin, the car will have 22 utility spaces, power windows, dual tone interiors with piano black accents and red accents on the air conditioner vents. Also  it gets Harman infotainment system compatible with Bluetooth, Juke car App, navigation and it also gets remote central locking with flip key. The car will have two driving modes - Eco and City. Under the bonnet, Tiago Wizz limited edition will remain the same as the existing model.

MRF to set up plant in Gujarat at an outlay of Rs 2,000 cr; targets Rs 22,000 cr turnover by FY2020 (industry leading topline CAGR of 14%); positive

MRF Ltd is targeting a turnover of Rs 22,000 crore by 2020 and is also setting up a new plant in Gujarat at an outlay of around Rs 2,000 crore. The Gujarat plant is expected to go on stream by 2020 with construction activities planned to begin soon. MRF will make the entire range of tyres-two wheelers to off-the-highway vehicle tyres at Gujarat plant. Apart from the vehicle makers, the company will also target the replacement market. Recently, the company also launched its premium range of tyres under the brand PERFINZA which has achieved the distinction of being the first tyre made by any Indian company to be approved by a leading global luxury car manufacturer.

Tuesday, 29 August 2017

29 August 2017 - Views & News

MARKET INSIGHT

 Markets are expected to open weak post fresh missile test by North Korea. Nifty crossed 20 DMA but couldn’t stay in the higher territory. 9947 will be crucial hurdle in near-term. The short term bias remains bearish with 9740 as crucial support. 

Nifty Spot Levels

Support 9850 – 9740 - 9685
Resistance  9947 – 9988 - 10041

GLOBAL MARKET

• The S&P 500 and Dow ended little changed on Monday, with energy and bank shares lower as Tropical Storm Harvey crippled the US energy hub in Texas, while tech and healthcare gave a light boost to the Nasdaq.
• US crude futures fell 2.5 percent to USD 46.68 per barrel over concerns that the refinery shutdowns could trigger an increase in crude inventories.
• Investors sought safe-haven assets, with gold rising to its highest in nearly 10 months.
• The Dow Jones Industrial Average fell 5.27 points, or 0.02 percent, to close at 21,808.4.

MARKET UPDATE

Sgx Nifty  -41 pts Dow -5.27 pts ,Nsdq +15.55 pts , S&P +1.19 pts‎, Bovespa -57 pts , Ftse -5 pts , Dax -44 pts , Cac -24 pts , Nikkei  -110 pts now , Crude @ $46.77 brl (+0.20), Brent @ $51.60 brl (+0.04) , Gold @ 1322.59 (+7.29), Silver @ $17.467 (+0.02), Euro @ $1.1965, JPY @ $108.7200, INR @ $63.903

: Results Today: 

CUBEXTUB, DTIL, GEECEE, GUJAPOLLO, HITECHCORP, HMT, JHS, KEI, MINDAIND, NEXTMEDIA, SIL

TOP NEWS

Alert: Bajaj Finance, HPCL and UPL to be included in NIFTY50 Index with effect from 29th September 2017 – Positive read thru for Bajaj Finance, HPCL and UPL. While Tata Power and Tata Motors DVR will be excluded from the index- Negative.


Ashok Leyland: aims to expand defense business 6-8 times; aims Rs 5,000 cr revenues over next 4-5 years; positive……(details in other news)


OTHER NEWS

L&T: wins orders worth Rs1,975 crores; positive
The construction arm of L&T won orders worth Rs 1,975 crores comprising of Rs1,331 crores (Power T&D segment) and Rs 644 crores (Other business segments). Power T&D segment received orders from Middle East for turnkey construction of substations and cable feeders and in the domestic market, it won rural electrification contract from Jharkhand Bijli Vitran Nigam Ltd. under the Deendayal Upadhyay Gram Jyoti Yojana. Orders from Other business segments include construction of Convention Centre in Ranchi, Jharkhand and an EPC order from Metro-Link Express for Ahmedabad Metro Rail Project – Phase I

Ashok Leyland: aims to expand defence business 6-8 times; aims Rs 5,000 cr revenues over next 4-5 years; positive
Ashok Leyland has set goal of expanding the defence business 6-8 times, clocking an annual turnover of ₹5,000 crore. The company is bullish on the expected new orders and on some of the newer segments it has ventured into (tracked vehicles, armoured vehicles and special-role vehicles) . Ashok Leyland is focussing on being a complete land-mobility solution provider to the Army, including armoured vehicles, tracked vehicles and superstructures mounted on mobile platforms and expects the size of the addressable market to grow up to ₹12,000-13,000 crore per year in the next 4-5 years from current size of 2, 000cr. Positive 

Nestle India: reduced milk and other products prices to pass on GST benefits; likelihoods to enter new categories in the coming years - positive read through 
Nestle India has reduced the prices of its milk products by 8 per cent and cereals and sauces by 1-2 per cent to pass on GST benefits.The company, at the meet, also indicated that it is evaluating an entry into categories such as petcare and water in India.

Maruti Suzuki: is likely to benefit from implementation of Seventh pay commission recommendations (which include salary hikes and payment of arrears to Government employees and defense personnel) and targets to sell 2 lakh vehicles in FY2018 (constituting 12% of sales)

Reliance Infra: Greenko in talks with Reliance Infrastructure's for Mumbai power business for $2 billion (Rs10,000-13,000crore); stock to be in focus

Bank of India: As per media reports BoI will complete sale of 29.96% stake in STCI Finance by month-end, the deal is expected to earn ~Rs626 crore for Bank of India – Positive read thru for BoI

Banking: Consortium of lenders lead by Punjab National Bank look forward to sell 51% stake in Jindal India Thermal Power (JITPL), the company’s gross debt to lenders stands at Rs5902 crore – Neutral Read thru

 MORE NEWS

World's 1st diamond futures bourse opens in India
Promoters may take part in Infosys share buyback 
Greenko eyes R-Infra's Mumbai power biz for $2 bn
Govt sanctions over 2.17 lakh houses for urban poor
EPFO diverting money to riskier bonds to earn more
Trai seeks views on sale of 5G services spectrum
The cost of clean water is $150 bn a year: World Bank
Tata Teleservices plans to invest Rs 4,000 cr in listed arm
Centre to divest up to 10% stake in NTPC for Rs 13,800 cr
IDBI Bank looks to exit early from NSE
GST to have positive impact on states' finances: Ind-Ra
Lenders of Jaypee Power seek bids for 30% stake dilution to recover debts
Reliance Capital shareholders to get 1:1 stock of home finance arm
L&T Construction bags orders worth Rs. 1,975 cr
NSE now eyes mega Rs.10,000-cr IPO by Feb-Mar next year
 ACC, BoB & Tata Power to move out of Nifty 50 wef Sept 29 
Despite sharp cuts by PSU banks, foreign banks command lowest MCLR
Dr Reddy’s faces class action suit in US court
Iron ore stockpiles swell on imposition of export duty
RBI may consider linking bank loans to repo rate
NSE adds Bajaj Finance, HPCL, UPL Ltd to Nifty 50, removes 4 stocks
Insolvency case: IRP verifies claims of over Rs44,498 crore against Bhushan Steel
SSG Capital Management in talks to buy stake in Emco Ltd
L&T Finance among India’s five most valuable NBFC firms
Gilead to buy Kite Pharma for promising cancer therapies in $12 billion deal
Over 36 lakh businesses file GST returns so far
Fringe benefits availed by employees liable to GST
DLF looking at Mumbai, Bengaluru to build commercial assets
Appetite for telecom spectrum only by early 2019, says COAI
Brexit talks face 'very big gap' as new round begins
Sensex makes 155-pt gain on easing Indo-China tension
Startups can raise 100% funds from foreign investors
 Essar Steel lenders want to bring in new investors; Tata, JSW keen

STOCK IN NEWS

First tender for coal utilisation scheme fails with zero bids
SBI scans Jaypee Infratech, Amrapali home loan exposures
Boeing offers to set up production facility for F/A18 aircraft in India
Government gets security details from 12 smartphone firms
Mahindra launches new tractor brand Trakstar from Gujarat arm
Tata Teleservices plans to invest Rs 4,000 cr in listed arm
Steel companies fear spike in iron ore prices after SC order
Royal Enfield starts commercial production at its new facility near Chennai
CPCL to invest Rs 1,495 cr to create BS-VI fuel for automobile industry
Coal India's profits may fall 9% post wage negotiation
Infosys founders will participate in Rs 13,000-crore share buyback
After Rs 8,900-cr stake sale to GIC, DLF might not launch REITs

Monday, 28 August 2017

28 August 2017 - Views & News

MARKET INSIGHT

 The Nifty is likely to open on positive note followed by Asian markets. The support for Nifty is at 9790 level and resistance at 9880 mark.

Nifty Spot Levels

Support 9791 – 9740 – 9685

Resistance  9884 – 9947 - 9988

GLOBAL MARKET

 • US stocks rose slightly on Friday, lifted by high-dividend-paying stocks, after Federal Reserve Chair Janet Yellen stayed silent on monetary policy in a much-anticipated speech.
• Interest-rate sensitive sectors such as telecommunications , up 0.8 percent, and utilities , up 0.3 percent, rose as Yellen's speech did not comment on the path of interest rate hikes for the central bank, which sent US Treasury yields lower.
• The Dow Jones Industrial Average rose 30.27 points, or 0.14 percent, to end at 21,813.67.

 Results Today 

8KMILES, AGARIND, AMDIND, ANIKINDS, AURIONPRO, BAGFILMS, CAMLINFINE, DTIL, GAL, IL&FSENGG, MOLDTECH, MOLDTKPAC, NARMADASUG, PRAKASHSTL, RAJSREESUG, SURYALAXMI, TIJARIA, VISHNU

TOP NEWS

DLF: GIC to acquire 33.3 percent stake in DLF rental arm for Rs 8900 crore - Positive read thru in terms of deleveraging of balance sheet; however, the valuations of rental subsidiary is below expectations.

Lux Industries: registered strong performance in Q1FY18 with 43% revenue growth and margin expansion; revenues expected to grow in mid-teens and margin expansion to sustain – positive read through for the stock
Lux Industries registered strong operating performance in Q1FY2018 with revenues growing by 43%yoy to Rs260.1crore and the OPM improving to 12.4 (up by 150BPS yoy); the company is focusing on maintaining 12-15% growth in FY2018 as GST will help the shift to branded space and also margin expansion will sustain due to commissioning of new facility.

Tata Motors: Targets to regain 3rd position in the domestic passenger vehicle industry over the next 1-2 yrs by focusing on new product launches and strengthening distribution network. The company has already reached 5th position from 8th spot two years ago and aims to continue outpacing industry growth. Further, The company plans to reposition its small car Nano as an electric car in order to improve sales. Positive.


OTHER NEWS

Automobiles: The Cabinet may consider issuing an ordinance this week to increase the cess on mid- size, large cars and SUVs to 25% from 15% under the GST regime at present. This would increase the overall tax burden from 43% to 53% (28% GST and 25% cess). Sentimentally negative for M&M, Maruti and Tata Motors. However the tax rate of 53% is similar to tax under the pre GST regime (pre GST tax was about 49-51%) and is unlikely to have significant impact on sales. Also, OEM are likely to take price increases to pass on marginal increase in the tax rate. 

M&M: Subsidiary Mahindra Agri eyes 2-fold jump in sales at Rs 1,500 cr in FY18; positive.
M&M subsidiary Mahindra Agri Solutions Ltd is expecting its turnover to almost double to Rs 1,500 crore in the current fiscal on new product launches, good monsoon and business acquisition in Europe. Out of total turnover, Rs 500 crore would come from Europe business. M&M recently acquired majority stake in Netherlands-based OFD Holding BV, which is into the fruit distribution business. It also launched an advanced insecticide ‘Tromph’ to be used mainly in rice and cotton crops and aims to have 20% share in this Rs 150 crore segment. Positive

Eicher Motors: 2w – division Royal Enfield, commences its new plant at Chennai (vallam Vadagal) with a capacity of 300,000 units. Positive.
Eicher Motors 2w division (Royal Enfield) started commercial production from its new manufacturing facility at Vallam Vadagal near Chennai with an initial capacity of 300,000 units per annum. The company has planned to invest Rs 800 crore in FY2018 to further expand capacity at the new plant and introduce new products. For FY2018, Eicher is targeting to produce 825,000 units (24% yoy growth).  

Tata Motors: Targets to regain 3rd position in the passenger vehicle industry over the next 1-2 yrs by focusing on new product launches and strengthening distribution network. The company has already reached 5th position from 8th spot two years ago and aims to continue outpacing industry growth. Further, The company plans to reposition its small car Nano as an electric car in order to improve sales. Positive read thru.

Suzlon Energy: CARE upgrades Long Term Rating of Suzlon Global Services to A (Provisional).

Apparels: Abercrombie & Fitch planning to enter Indian market – positive for top apparel companies as tie-up will enhance their product portfolio
US-based youth brand Abercrombie & Fitch is planning to bring its flagship label as well as Hollister to India, joining a host of global top brands that are coming to tap the growing market for global fashion in India. As per media reports, Abercrombie & Fitch is in talks with a host of Indian companies, including Myntra.com, to open standalone outlets of Abercrombie & Fitch and Hollister and to give their online selling rights to the Indian firm.

Future Retail: Future group to focus on small stores to build brand presence – positive as it will boost revenue and margins of the company
Future Group is looking to increase the penetration of its smaller format retail stores in tier II and III cities in a bid to source about 65 per cent of total sales from its private labels in the next five years. Presently, about 35 per cent of the company's sales comes from private label products. Future Retail will open more Easyday stores across the country, and will also increase the number of Heritage and Nilgiri stores in the south. There are about 414 Easyday stores across the country, as well as 120 Heritage and 154 Nilgiri stores in the south.

Heritage Foods: sees boost from value added products – positive read through for the stock.
Heritage Foods Ltd is seeking to increase its business from value added products to 40 per cent from the current 24 per cent. It has charted out a strategy to achieve a turnover of ₹6,000 crore by 2022. The company recently announced a strategic tie-up with French dairy company Novandie for value added products and a proposal to set up a new unit through the venture.

RIL: Demand for RIL’s recently launched 4G feature phone exceeds weekly supply of 5million phones – sentimentally positive for RIL.
Reliance Industries (RIL) has temporarily suspended pre-booking of its recently launched 4G feature phone as the demand for the device far exceeded the target of 5million 4G feature phones per week – sentimentally positive for RIL.

Reliance Industries: and BP plc plans to use a floating production system to bring to production from its MJ-1 gas find in its KG-D6 block. The MJ-1 holds a minimum of 1 Trillion cubic feet (Tcf) of contingent resource – sentimentally positive for Reliance Industries.

 MORE NEWS

Sebi may force MFs to merge schemes in same category
Abercrombie & Fitch planning to enter Indian market
Remove agri from Essential Commodities Act: Niti Aayog
Govt notifies changes in Banking Regulation Act
RIL, BP to use floating system to produce D6 gas find
DLF expects GIC rental arm deal to be concluded by Nov
Middle East giant in talks to buy Sahara's US hotels
EPFO mulls crediting ETF units to PF accounts
PSU banks take action against 5,954 wilful defaulters to recover Rs 70k cr
JSW makes another dash for troubled Italian steel mill
Maruti continues to lead PV market; 7 models in top 10 list
BSE board approves another 5-year term for Ashish Chauhan as CEO
Canadian investors court Bengaluru realtors for tie ups
OIL seeks shareholders' approval to raise 7,000 cr through bonds
Future Group to focus on small stores to build brand presence
New norms for solar power bids to enhance transparency: MNRE
Growth worries spook FPIs, Aug net equity outflow at $2 bn 
Indian Immunological’s herbal product for animals 
Heritage Foods sees boost from value added products
Foreign ownership in BSE–200 rises by 43 bps to 24.93% in Q1 
Petrol price up by Rs6 per litre since July, diesel by Rs3.67
Vodafone flags concerns over further cut in mobile termination charges
Supertech gets green nod for Rs1,130 crore Sports Village project in Greater Noida
Sebi questions fundraising on LinkedIn
 Infosys employees focus on ‘next big idea’, unperturbed by boardroom blues
Trai asks Idea to submit Rs3 crore for overcharging subscribers
India facing problem of severe under-employment, says Niti Aayog
Black money: Swiss panel to discuss info-sharing safeguards with India, others
New highway projects worth Rs 1 lakh crore in Rajasthan: Nitin Gadkari
Vodafone flags concerns over further cut in MTC
No subsidy for sugar mills to begin crushing early
Tata Motors working on alternative plans for Nano: official
FC Investigation: 17,000 dubious firms caught laundering in DeMo net
Diversified portfolio is the best defence against uncertainty

STOCK IN NEWS

 1. Swiss engineering technology firm ABB launched 180 digital solutions globally that would cover utilities, industries, infrastructure and transportation.
2. DLF expects Rs 13,000 crore infusion post GIC deal
3. DLF seals JV deal with GIC after Rs 8,900-cr stake sale by promoters
4. West Asian giant in talks to buy Sahara's majority stake in US hotels
5. Apollo Hospitals aims to grow private label business in five years
6. RIL, BP to use floating system for production from deepest KG-D6 gas find
7. Maruti Suzuki continues to lead PV market; 7 models in top 10 list
8. Royal Enfield starts production at Vallam Vadagal facility near Chennai
9. Religare Enterprises seeks shareholders' approval to raise Rs 500 cr
10. OIL seeks shareholders' approval to raise 7,000 cr through bonds
11. Nano not to be phased out; Tata Motors to reposition it as electric vehicle
12. Tata Motors eyes third position in passenger car segment
13. Australian court dismisses appeal against Adani's $16 bn coal mine project
14. Capital First has raised Rs 200 crore by issue of NCD's on private placement basis
15. Meghmani Organics has incorporated a wholly owned subsidiary namely, Meghmani Agrochemicals on August 23, 2017
16. REC enters into MOU Maharashtra State Power Generation Co. for extending financial assistance to the tune of 13,000 crore
17. IL&FS plans Rs 6000 crore bond issue to refinance debt – Mint
18. Acme and Inox group looking to exit green projects - Mint
19. CPPIB to call off JV with Kotak group for stressed assets in India - ET

Thursday, 24 August 2017

24 August 2017 - Views & News

MARKET INSIGHT

Markets are likely to open mildly positive. On the higher side, swing high of 9947 is a key level to watch out for. Unless that gets taken off, the short term bias remains in favor of the bears. On the flip side, the swing low of 9740 becomes a key support from short term perspective. Breach of the swing low would confirm larger move on the downside. Overall short term target on the downside continues to be at 9600.

Nifty Spot Levels

Support 9786 – 9740 – 9685
Resistance  9884 – 9947 - 9988

GLOBAL MARKET

• Asian stocks edged up on Thursday, shaking off the risk aversion that gripped financial markets overnight after US President Donald Trump's threat to shut down the government, though the dollar remained sluggish.
• MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.15 percent in early trade.
• Japan's Nikkei pulled back 0.25 percent on a stronger yen.
• Overnight, US stock indexes closed between 0.3 percent and 0.4 percent lower.

MARKET UPDATE

Sgx Nifty  +11 pts Dow -87.80 pts ,Nsdq -19.07 pts , S&P -8.47 pts‎, Bovespa +466 pts , Ftse +0.91 pts , Dax -55 pts , Cac -16 pts , Nikkei  -31 pts now , Crude @ $48.38 brl (-0.03), Brent @ $52.56 brl (+0.03) , Gold @ 1295.97 (+1.27), Silver @ $17.064 (+0.01), Euro @ $1.1815, JPY @ $108.9800, INR @ $64.020

Today's Corporate Action 24th Aug  Ex Date

CHAMBLFERT Dividend - Rs. - 1.9000
IMPAL Final Dividend - Rs. - 6.0000
INDIACEM Dividend - Rs. - 1.0000
KANORICHEM Dividend - Rs. - 1.5000
MARUTI Dividend - Rs. - 75.0000
NITINSPIN Dividend - Rs. - 1.2000
OROSMITHS Stock  Split From Rs.5/- to Rs.1/-
PANAMAPET Dividend - Rs. - 1.0000
SHHARICH Dividend - Rs. - 1.0000
TUBEINVEST Reduction of Capital 
TUBEINVEST Spin Off 

TOP NEWS

Nifty Rebalancing in September 2017: As per media reports, UPL, Bajaj Finance and HPCL likely Nifty inclusions. ACC, Tata Power and Bank of Baroda likely Nifty exclusions, stocks to be in focus

Fortis Healthcare: SRL Diagnostic demerger from Fortis Healthcare companies has been deferred - sentimentally negative for Fortis Healthcare
SRL Diagnostic demerger from Fortis Healthcare has been deferred yet again after the Supreme Court’s order directing promoters Malvinder and Shivinder Singh to maintain the status of shareholding of one of their companies’ in the hospital chain. The National Company Law Tribunal (NCLT) in Chandigarh, expected to make a decision on the demerger, will now hear the matter in early October 2017. 

RIL: Switch to ethane from naphtha for petrochemical plants to add $300million to EBITDA; positive read through 
Reliance Industries Limited's (RIL) ongoing switch to ethane from naphtha as feedstock for its Petrochemical plants in Dahej, Hazira and Nagothane will add around $300million to EBITDA as per media reports. RIL has recently commissioned 1.5mmt ethane import project at Dahej. Positive read through for RIL.

TVS Motors: to set up a new 2wheeler plant in Mysuru with an investment of Rs 1,110 crore.  The company has submitted its proposals to Karnataka state and is likely to be approved shortly. TVS Motors current capacity utilization stands at 80%. Positive read thru

L&T: Schneider emerged as top contender for electric & automation division for Rs15000-17000crore, stock to be in focus……(details in other news)

SPARC: To provide an update on its R&D pipeline today at 4 pm – stock to be in focus.


OTHER NEWS

Britannia: to invest Rs100 crore to revamp cream range – positive read through for the stock
Britannia is planning to invest Rs100 crore for refurbishing its creams portfolio where it has brands like Treat, Bourbon and Pure Magic, enjoying margins at 10 percent compared to the average biscuit margins in other categories.  Creams is a Rs1,800 crore category with brands from all biscuit companies. The first step is to re-stage brands like Treat with new variants and advertising with a Rs50 crore investment and then the rest of the creams portfolio for brands like Bourbon and Pure Magic, which can go up to Rs100 crore.

Infosys: Sebi to conduct fresh probe into Infosys-Panaya deal, stock to be in focus
Sebi will look afresh into complaints of alleged corporate governance-related lapses at Infosys amid a high profile leadership crisis and public spat between founders and top management of the IT firm. Top regulatory sources said Sebi has received several representations regarding the ongoing crisis, including about allegations and counter allegations from various sides. Sebi will conduct a fresh probe into corporate governance complaints against Infosys in connection with the Panaya acquisition. Meanwhile, Infosys Ltd chairman R. Seshasayee may be on his way out even as a chorus calling for the return of co-founder Nandan Nilekani grows louder, five days after CEO Vishal Sikka abruptly resigned and the board blamed founder and promoter N.R. Narayana Murthy,

L&T: Schneider emerged as top contender for electric & automation division for Rs15000-17000crore, stock to be in focus
Schneider Electric SE and Eaton Corp have emerged as the top contenders to acquire Larsen & Toubro’ electric and automation division for Rs 15,000-Rs 17,000 crore. Schneider Electric has teamed up with Temasek, for the buyout while Eaton has re-engaged after their 2011 bilateral discussions with L&T, fell through. As per media report, the two are believed to be far more serious than other potential suitors that included Siemens AG, Swedish- Swiss multinational ABB, Hitachi, Honeywell and few global buyout funds. We believe the focus of L&T to sale non-core assets would be positive and beneficial for its long term strategy.  

V-Mart Retail: has opened two new fashion stores in the state of Uttar Pradesh & Jharkhand – positive read through

Bajaj Auto: Launches an electric starter variant of CT-100; Positive read thru
Bajaj Auto has introduced an electric starter in its commuter segment motorcycle – CT100. The new motorcycle – CT-100 Alloy ES is priced at Rs 41,997 for a limited period and is available across the country. The CT100 Alloy ES has features like the innovative SNS (Spring in Spring Suspension) technology that assists in delivering a comfortable ride quality and is available in 4 colour options. The new variant could improve the company’s sales in commuter segment.

Tata steel: Company eyeing Essar Steel, stock to be in focus
As per media news, Tata Steel is amongst numerous suitors which have reached out to the insolvency resolution professional (IRP) appointed by SBI namely Alvarez & Marsal and expressed preliminary interest in Essar Steel and its assets as per media reports. Many global strategic and financial firms are also keen though the process is at a very early stage with future strategies depending on the final resolution plan approved by the IRP and the committee of creditors involved with the account.

Tata Power: planning to sell noncore assets to trim debt of ~Rs49000crore. Recently it proposed to sell 51% stake of 4000MW Mundra power plant for Re1 to state utility as it was unviable to run the plant. We believe the sale of noncore assets will help Tata Power to reduce its debt. Positive.

 MORE NEWS

Man behind UID wooed to settle unique Infosys row
Consumption, agriculture may help in 6.5% Q1 growth
Chinese co Transsion eyes top slots in Indian mkt
RBI gets govt's go-ahead to print Rs 200 notes 
Fund managers pitch for Nandan Nilekani's return to Infy
RBI to harmonise NBFC regulations: Dy Guv
Sebi to conduct fresh probe into Infosys-Panaya deal
Cabinet fast tracks merger of PSU banks
NCLT initiates insolvency proceedings against Orchid Pharma
Rain deficit widens to 6%, raises crop yield concerns: IMD
MSTC to launch forward trading in niche horticulture products
British banks set to close record 762 branches in 2017
India Inc overseas direct investment plunges 47% to $1.77 bn 
20 lakh businesses have paid GST so far: GSTN Chairman 
Closure of loss-making Bharat Wagon approved
RCap announces Rs. 300-cr employee stock option scheme
DLF board meet on Aug 25 to decide on stake sale in rental arm
India is 3rd-largest importer of Vietnam pepper
Rel Jio Phone pre-booking to start from today for Rs 500
Infosys board under fire for scathing note against Narayana Murthy
Record forex reserves become costly cash pile for RBI
Govt’s proposed pharma marketing rules hit legal roadblock
Reliance Industries to increase naphtha exports by 500,000 tonnes in 2017-18
India grants Pfizer patent for pneumonia vaccine
Tata Steel, Posco express interest in buying Essar Steel
Wage hikes in China bring some jobs and factories back to Japan
GST could increase cost benefits by 5% in 3 years: Retailers
IT Department open to reducing withholding tax for companies
Raghuram Rajan pens book on RBI stint in ‘turbulent times’
Google and Walmart unveil e-commerce partnership
Coke, Pepsi agree to cap sugar in drinks in Singapore
Essar Oil shareholders to get equal price
RIL switches to ethane to boost profit
Indian-origin Guptas sell mining unit Tegeta for 2.97 billion rand

STOCK IN NEWS

1. Jio licence fee, spectrum charges among lowest
2. Shoppers Stop to exit duty-free store business at airports by next quarter
3. Britannia shifts focus to premium cream biscuits
4. Dish TV opposes STAR move to bid for IPL rights
5. RIL project seen bumping up petrochemicals core profit by $300 mn
6. Tata Teleservices says no undue favours to Sivasankaran
7. Tata Power to monetise non-core assets to trim its near Rs 49,000-cr debt

Wednesday, 23 August 2017

23 August 2017 - Views & News

MARKET UPDATE

Sgx Nifty  +28 pts Dow +196.14 pts ,Nsdq +84.35 pts , S&P +24.14 pts‎, Bovespa +1376 pts , Ftse +62 pts , Dax +163 pts , Cac +44 pts , Nikkei  +119 pts now , Crude @ $47.70 brl (-0.13), Brent @ $51.65 brl (+0.07) , Gold @ 1288.92 (-2.08), Silver @ $16.951 (-0.03), Euro @ $1.1761, JPY @ $109.7400, INR @ $64.067

Today's Corporate Action 23rd Aug  Ex Date

BALAJITELE Final Dividend - Rs. - 0.4000
BHEL Final Dividend - Rs. - 0.7800
CENTRUM Dividend - Rs. - 0.0500
DALMIACEM Final Dividend - Rs. - 2.0000
DEEPIND Final Dividend - Rs. - 1.8000
GBLINFRA Consolidation of Shares 
GRANULES Interim Dividend - Rs. - 0.2500
INDIAGLYCO Dividend - Rs. - 1.0000
JOONKTOLL Dividend - Rs. - 1.0000
KCP Dividend - Rs. - 2.0000
KSE Dividend - Rs. - 30.0000
LINCPEN Dividend - Rs. - 3.0000
LOVABLE Dividend - Rs. - 1.0000
MANGLMCEM Dividend - Rs. - 0.7500
MAZDALTD Dividend - Rs. - 7.3000
PIDILITIND Dividend - Rs. - 4.7500
RAIN Interim Dividend - Rs. - 1.0000
RANEHOLDIN Dividend - Rs. - 5.0000
RUPA Dividend - Rs. - 2.7500
SYMPHONY Final Dividend - Rs. - 1.0000
SYMPHONY Interim Dividend - Rs. - 1.0000
TRIDENT Interim Dividend - Rs. - 0.6000
TVTODAY Dividend - Rs. - 2.0000
TOP NEWS

RIL: Expected to start production from ethane based new polyethylene plant in August-2017; positive read through 
Reliance Industries (RIL) is expected to start commercial production from its ethane based new HDPE/LDPE swing plant in August-2017 as per media reports. The plant has a production capacity of 0.6mmt. Positive read through for RIL.


DLF: Board meet on August 25 to review the status of the proposed rental arm stake sale to GIC (Rs12000 crore deal), if deal goes through it will be positive development for the company (finance cost will go down materially), stock to be in focus 

OTHER NEWS

Healthcare Global: to set up 12 new hospitals in 18 months - positive read through for the stock
Healthcare Global Enterprises (HCG) plans to set up a dozen new hospitals over the next 18 months. HCG plans to expand its network of cancer care centres to about 30 from 21 now, and will add few more IVF clinic's to its existing network. IVF clinics contributes one tenth of HCG's total revenues. It recently acquired a facility in Kenya’s capital, Nairobi, and is scouting for more facilities in Africa and the Middle East.

L&T: To sell some non-core businesses to become more nimble, management commented at 72nd AGM
Larsen & Toubro (L&T) hopes to monetise at least two to three non-core businesses as the engineering major hopes to bag at least one large order in the defence division.“We are redefining our core businesses. There are some businesses which are simple, small, some very competitive, and some where we lose money. So we’ve identified those and we hope at least two-three such businesses may find their rightful place elsewhere as part of much bigger companies,” chairman A.M. Naik told reporters on the sidelines of the 72nd annual general meeting (AGM). This was Naik’s last AGM as chairman of the group, as he will step down from his executive roles on 1 October but will continue as the non-executive chairman. Replying to a query of a shareholder on whether L&T would consider listing its defence business, Naik said, “We want to first grow the defence business and take it to a Rs10,000-15,000 crore size which we hope to achieve in the next five years.”

Automobiles: Industry experts expect domestic passenger vehicle industry to maintain healthy growth rate (expect 7-9% growth in FY2018 as against 9% growth reported in FY2017). Positive read thru but stock prices largely factor a similar growth rate

Shoppers Stop will sell food, books online by the next fiscal – positive read thru
Shoppers Stop will sell food and books online by the next fiscal in a stage-gated digital journey that begins this fall. Following up on its scheduled introduction of omni-channel web operations in October, Shoppers Stop would take its grocery mart HyperCity and book-and-toy store Crossword online in the next fiscal. Shoppers Stop’s e-commerce venture will fully link the 80 offline departmental stores with the online platform, integrating specialised formats such as MAC, Estee Lauder, Clinique and Bobbi Brown by October. There are at present 19 HyperCity stores in 10 cities, and 50 Crossword outlets in 15 cities. Both the retail formats operate as subsidiaries of Shoppers Stop.

Visa Steel: Operations at its Kalinganagar unit to return to normalcy, stock to be in focus .

NIIT ltd: Board approves liquidation of Netherlands-based subsidiary, NIIT Antilles NV. Liquidation to have a positive impact of approximately Rs 10 crore on the financials of the company, stock to be in focus

MORE NEWS

Tower cos can cut energy cost by 40% using green tech
Idea seeks DoT’s nod for merger with Vodafone
Infy board blaming Murthy to hide own failure: Ex-CFO
Tax dispute: Delhi HC halts 2nd arbitration by Vodafone
Murthy to address investors to take on board 
TaMo took unanimous decision to stop Nano: Mistry
UC Browser under govt scanner over data leaks
GMR lines up Rs 16,000 crore for Delhi airport upgrade
Essar Oil deal done, hurdles stay for group's steel, power firms
RBI hikes foreign investment limit in Eris Life to 49% from existing 24%
Apex Frozen Foods IPO subscribed 40% on first day
Qatar deposits $7 billion in July to offset crisis outflows
Enforcement Directorate mulls selling Mallya's shares in UB
FSSAI plans food safety index to measure performance of States 
Keeping a watch on Infosys share price: SEBI Chairman
Ashok Leyland, IIT Madras sign MoU 
LIC Housing Finance looking to boost lending to affordable home segment 3
Poland's Medicover AB picks up 22% stake in Maxcure Hospitals
Eros Worldwide offloads 1.17 cr EIML shares to pay debt
RBI moves forward to battle rupee flood
Govt eases environmental clearance rules for solar power projects
Around 100 brokers under lens for helping shell companies
Essar Oil minority shareholders to earn more on shares tendered during 2015 delisting
DCM Shriram Industries Q1 net profit at Rs32.58 crore
PM Narendra Modi tells CEOs to help boost agricultural economy
India’s foreign reserves at record high: DBS
IRL impact: Hindustan Copper Ltd decides no more exclusive foreign partners
L&T to sell some non-core businesses to become more nimble
Micro-finance institutions’ loan portfolio increases 26 pc in Q1 to Rs 35,000 cr
Bank strike impacts Rs 22,000 cr business, some ATMs go dry
RIL mulls entry into power storage business with BP
Name & shame default strategy stepped up as NPAs mount