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Wednesday, 2 August 2017

2 August 2017 - Views & News

MARKET UPDATE

Sgx Nifty  -3 pts Dow +72.80 pts ,Nsdq +14.81 pts , S&P +6.05 pts‎, Bovespa +595 pts , Ftse +51 pts , Dax +133 pts , Cac +33 pts , Nikkei  +43 pts now , Crude @ $48.77 brl (-0.39), Brent @ $51.44 brl (-0.03) , Gold @ 1267.12 (-5.48), Silver @ $16.668 (-0.09), Euro @ $1.1810, JPY @ $110.4400, INR @ $64.066

Today's Corporate Action 2nd Aug  Ex Date

AEGISLOG Final Dividend - Rs. - 0.3500
AMBUJACEM Interim Dividend - Rs. - 1.6000
ASAHIINDIA Dividend - Rs. - 1.0000
AVTNPL Final Dividend - Rs. - 0.2000
BOROSIL Final Dividend - Rs. - 25.0000
BRIGHTBR Final Dividend - Rs. - 2.0000
CAPITALT Dividend - Rs. - 1.5000
CREST Final Dividend - Rs. - 0.5000
FOMEHOT Dividend - Rs. - 1.0000
GESHIP Final Dividend - Rs. - 6.5000
GODREJIND Dividend - Rs. - 1.7500
GPPL Final Dividend - Rs. - 1.8000
GRPLTD Dividend - Rs. - 10.0000
GSKCONS Dividend - Rs. - 70.0000
HIKAL Dividend - Rs. - 0.6000
IBULHSGFIN Interim Dividend - Rs. - 9.0000
INEOSSTYRO Dividend - Rs. - 4.0000
KAIRA Dividend - Rs. - 5.0000
LEHIL Dividend - Rs. - 0.5000
NBVENTURES Dividend - Rs. - 1.0000
NESTLEIND Interim Dividend - Rs. - 15.0000
PAGEIND Final Dividend - Rs. - 25.0000
PANAENERG Dividend - Rs. - 5.5000
PRAJIND Dividend - Rs. - 1.6200
SHK Dividend - Rs. - 1.7500
ULTRAMAR Dividend - Rs. - 4.0000
ZODIACLOTH Dividend - Rs. - 1.0000

Today's Key Result 2nd Aug

Lupin ( Cons 474 Cr -46% Yoy Res During Mkt) Bata Ind (54 Cr +8% Yoy) Edelweiss Fin  ( Cons 183 Cr +31% Yoy)
Emami Ltd (70 Cr +25% Yoy) Pnb ( 323 Cr + 6 % Yoy) Voltas ( Cons 160 Cr +2 % Yoy ) Capital First,Daichi Karkaria,Dilip Buildcon, Godrej Prop,Igarshi Motor,Ingersol Rand,Kaya Ltd,Kec Int,Lakshmi Elect, Magma Fin,Mahindra Holiday,Narayana Hrudayala,Ponni Erode,Reliance Infra,Sical Logistics,TBZ,Uco Bank,Vst Inds,Wockhardt,Zf Steering 
TOP NEWS

Cummins India: Parent raised guidance, stock to be in focus
Cummins India’s parent Cummins INC. has reported its Q2CY17 earning on August 1st , overall India revenues including JV increase by 5% YoY to $431 mn. Cummins Inc has raised overall India business guidance by 0-3% from earlier flat growth. Though, for the segment serviced by listed Cummins India, guidance remain unchanged at 5% YoY growth. The tailwinds in the guidance change was led by lower decline in truck market to 12% from 15% earlier.  

Bharti Airtel: May Sell 3% Stake In Infratel, stock to be in focus
As per media news, Bharti Airtel  is considering selling a 3% stake in its telecom tower company Bharti Infratel to institutional investors, the stake sale is aimed at reducing net debt. The paring of stake may happen as early as this month. The 3%  stake that Bharti Airtel is considering to dilute is valued at around Rs 2,236 crore as per the current market price. Bharti Airtel holds 61.6 percent in the telecom tower company.

Textile: Exporters of garments and made ups like bedsheets and towels will continue to get rebate on certain state levies for three more months as in the pre-Goods and Services Tax (GST) regime, positive read thru for Trident, Welspun india and others

PNB board has approved Raising of Capital upto total of Rs. 3000 Crores by way of Equity issue(FPO/QIP/Rights etc.) subject to regulatory approval – Positive read thru

Hero Motocorp July 2017 dispatches up strongly by 17% YoY to 623,269 units; marginally ahead of estimates. The double digit growth for the month is attributable to re-stocking of inventory post the GST roll out by dealers. Positive 

Tata Motors – Jaguar Land Rover July 2017 US retail sales down 4% YoY; Numbers below estimates; Negative for Tata Motors….(details in other news)

Lupin gets USFDA approval for gLidex ointment, used for relief of skin diseases causing inflammation. Lidex ointment had US sales of $ 40 mn (~Rs 250 crore) and also received nod for cholesterol drug rosuvastatin calcium tablets - stock to remain in focus.

Voltas eyeing Sharp India plant; stock to in focus  
Voltas Limited which is the market leader in the domestic room air-conditioner segment is evaluating a potential buyout of Sharp India's inverter technology AC manufacturing plant in Pune. Invertor AC's are energy efficient and represent the future. With many Indian rivals gradually shifting focus to this niche vertical and moving away from old technologies, Voltas is looking to boost in-house or indigenous manufacturing & technological capabilities in the vertical rather than relying on outsourcing. Hence, their interest in Sharp India's plant which suits their requirements. Voltas is currently conducting due diligence on the Sharp India plant for the proposed buyout. Positive for Voltas as it will help company to expand its product portfolio in the growing Inverter AC market. Currently the Inverter AC market share is 15% of the overall market which is expected to increase to 40% in next few years.  

Infra- L&T & RInfra set to bag orders worth Rs1300crore each for two packages for Mumbai Metro line 2B. NCC, Tata Projects, JMC Projects, J Kumar Infra, Simplex Infra and CHEC are lowest bidder for one packages each as per media report. Positive for all infra listed companies mention above.  

Tractors:  CRISIL expects tractor sales to grow by ~ 12% to 6.5 Lakh units for FY2018; Positive read thru for M&M, Escorts
The tractor sales for FY2018 are expected to reach 6.5 lakh units as per a report by CRISIL as against 5.8 lakh units for FY2017, translating in to a 12% growth. Factors to drive the tractor volume are prospects of a successive normal monsoon, declining interest rates and farm loan waivers by states. However a 12% growth for FY2018 is largely factored in the assumptions. Positive read thru for tractor players including M&M, Escorts.


Govt to sell 3.7 crore shares in Hindustan Copper via OFS, floor price at Rs64.75 per share (CMP at Rs70.6), stock to be in focus

OTHER NEWS

Oil & Gas: OMCs increase dealer’s commission on petrol and diesel; neutral read-thru
The oil marketing companies (IOCL, BPCL and HPCL) have increased dealer commissions by up to 45% for petrol and 60% for diesel as the dealers were incurring losses due to the implementation of daily price revision for petrol and diesel. Neutral for oil marketing companies.

ITC: Food division launches biscuit 'enriched' with native Indian cow milk to enhance biscuit portfolio; focus continues to enhance non-cigarette portfolio, positive read thru
ITC Foods today announced the launch of a biscuit variety "enriched" with native Indian cow milk. The Sunfeast NaatMaad Paal biscuits are enriched with native Indian cow milk and fortified with the goodness of eight essential vitamins, iron and calcium. It will be priced at Rs 10 for 83 gm and will be available at all retailers, modern format and topend general trade in Tamil Nadu.

Global Offshore: The company’s subsidiary has sold one of its vessels M.V.Shergar at a loss in view of the adverse conditions prevalent in the industry. Stock to be in focus.

IT: H-1B visa application from Indian IT companies down 15% YoY, neutral read-thru 
Indian IT companies have been cutting back as protectionist rhetoric grows in their major market. Indians filed fewer H-1B petitions. There were over 2,47,000 petitions from Indians in 2017, down from over 3,00,000 in the previous year.

Media: Advertisers to spend Rs 24K crore during this festive season, positive read-thru
India Inc will spend Rs 24,000 crore on advertising, marketing and promotion during the festive season, starting August, 10% more than what they spent same season last year. The festive season contributes about 40% to the overall advertising expenditure every year. It would be positive for companies like ZEEL, INOX Leisure, as advertisers were cautious for the past 7-8 months owing to demonetisation and transition to the GST.

Telecom: TRAI asks all telcos to submit tariffs online
The telecom regulator has asked all carriers to submit from August 1 their tariff plans online, besides filing their hard copies, and is likely to put all such rates in the public domain by year end, in efforts aimed at more transparency and efficiency. Tariff filing has been a bone of contention among rival telcos. Reliance Jio had complained to the regulator that Bharti Airtel, Idea Cellular and Vodafone India were arbitrarily giving specialised offers to retain customers moving out to other carriers.

Tata Motors – Jaguar Land Rover July 2017 US retail sales down 4% YoY; Numbers below estimates; Negative for Tata Motors
·  Jaguar Land Rover July 2017 US retail sales at 9,081 units declined 4% YoY tracking a decline in the US Car sales for the month.
· Jaguar sales for the month declined 7% YoY while Land Rover sales too declined 3% YoY attributable to weak demand scenario.


MORE NEWS

Govt to sell 4% in Hindustan Copper tomorrow
Snapdeal's first investor Glass backs founders
Tech Mahindra re-appoints Gurnani as MD & CEO
Rupee hits 2.5-mth high on RBI rate cut hopes
Cochin Shipyard IPO subscribed 92% on Day 1
RBI MPC meet begins; experts expect 0.25% rate cut
JSW Steel quarterly profit falls 44%, but beats estimates
Bankers see red as insurance IPOs get bunched up
Marico falls 6% from record high on disappointing Q1 results
Ashok Leyland records 14% growth in total sales in July 2017
Sensex ends at record high of 32,575; auto stocks vroom
Oil, financials get European shares off to firm start in August
SoftBank Vision Fund may invest up to $2 b in Flipkart
Manufacturing PMI drops to its lowest in more than eight years at 47.9 in July
SIS IPO subscribed 1.34 times on Day 2
Godrej Consumer Q1 results knocked down by GST and Indonesia
Siemens Q3 Result: Tepid order flow but strong profit growth
 Apple revenue rises 7.2% as iPhone shipments beat expectations
Sebi bans MGH Project from capital markets
Companies and financial institutions mop up close to Rs 56,000 crore by way of fund raising through equities
Reliance Jio tactics will have telcos' revenues falling 10% this fiscal
IndiGo's record Q1 profit fails to amuse Rakesh Jhunjhunwala; ace investor grills management
Nifty scrip HDFC Bank returned 23,934% since birth of index
Flipkart completes eBay India merger
Timken India set to acquire ABC Bearings
Sharif Brother to Carry Tarnished Pakistan Political Dynasty

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