Markets always tend to be interesting with something or the other happening all the time. Our Morning Mantra is released before the opening bell and it includes the market commentary along with Corporate & Global news for the day.
U.S. stocks rose on Thursday as investors were hopeful that lower corporate tax rates would allow companies to spend additional capital on dividends, new projects and wages, which could give a boost to the overall economy.
Asian shares were mostly higher in early Friday trade, tracking moderate gains made on Wall Street as investors stateside considered the effects of lower corporate taxes
Market is expected to open on flattish note and likely to witness range bound session.
The Reserve Bank of India in its latest edition of the Financial Stability Report has noted that while the stress in the banking sector remains elevated, it appears to be bottoming out. The banking regulator also noted that the private sector banks at the end of September 2017 registered significantly higher increase in their gross non-performing assets as compared to their state-run peers. The RBIs stress test – an indicator of the resilience of the banking system has indicated that under the baseline scenario, the GNPA ratio of all banks may increase from 10.2% in September 2017 to 10.8% by March 2018 and further to 11.1% by September 2018.
Tech Mahindra announced a partnership with global management consulting firm Gao Feng Advisory Company to set up a joint Artificial Intelligence (AI) lab in Shanghai. The lab will work in the areas of futuristic digital technologies including AI chatbot Services, smart process automation, Neuro-linguistic programming (NLP), image recognition and processing, Machine Learning (ML) and Predictive Analytics.
Hero MotoCorp unveiled three new bikes, 125cc Super Splendor, 110cc Passion PRO and 110cc Passion XPRO, which will be launched in a phased manner starting next month.
Canara Bank Proposes To Offload 4% Stake In Can Fin Homes
Navin Fluroine Has announced capex of Rs.115cr for Contract manufacturing. The production will start from Jun 2019
Aarti Industries Limited has approved: The buyback of up to 8,20,383 equity shares of face value of Rs.5/- representing upto 1% of the total number of Equity Shares of the Company at a price of Rs.1200/- for an aggregate amount of up to Rs. 98.45cr. Record Date as January 5, 2018 for the purpose of Buyback of Equity Shares.
HDFC to sell 100 percent stake in HDFC Developers and HDFC Realty to Quikr for a total consideration of Rs 355 crore.
SRS to sell its SRS Value Bazaar business for Rs 32 crore to Spencer’s Retail.
Zee Media starts TV news channel for UP, Uttarakhand.
HIL started operations at its plant in Andhra Pradesh.
Information Technology Sector Update- Guidance Upper-end Revision Likely; Tax Reform Benefits Exaggerated?: Accenture reported a strong set of numbers for 1QFY18 (Y/E August) with revenues of US$9.5bn, a YoY increase of 10%/12% in local currency/USD terms (organic growth was 6.5% in local currency terms). This breached the higher end of its guidance. The growth was broad-based across verticals and geographies and included double-digit growth in four out of its five operating groups and two of its three geographic regions in local currency terms on YoY basis. Of particular interest was the growth in Financial Services - up 11% - which was broad-based across banking, capital markets and insurance. Indian companies have been largely witnessing strength in insurance. For FY18, Accenture narrowed its revenue growth guidance range to 6%-8% in local currency terms from 5%-8% given at the end of 4QFY17, and hinted at revision of its upper end of the band post 2QFY18 considering the strong demand.
Credit Cycle - Thematic Report- Credit Recovery To Be An Uphill Climb: We are witnessing signs of an uptick in bank credit growth in India. We expect credit growth to pick up to around 12%-13% in FY19, after a couple of years of single-digit growth. Against this backdrop, we have assessed as to what are the likely drivers of credit growth. Firstly, as we had highlighted in our earlier report: Credit Growth Decoded the share of the banking sector in the flow of resources had declined on account of disintermediation by the corporate bond and commercial paper market. This was partially on account of better transmission of lower interest rates by the market when compared to bank-lending rates. However, now with interest rates having bottomed out, and in all probability likely to edge up on declining liquidity and higher inflation, we expect some of the credit demand to return to the banking system. Secondly, rising commodity prices are likely to push up working capital demand for credit.
U.S. stocks rose on Thursday as investors were hopeful that lower corporate tax rates would allow companies to spend additional capital on dividends, new projects and wages, which could give a boost to the overall economy.
Dow
|
Dow
Futures
|
Hangseng
|
Nikkei
|
SGX
Nifty
|
24782.3
|
24802.0
|
29436.1
|
22860.2
|
10462.5
|
+55.6
|
+24.0
|
+69.0
|
-5.9
|
+8.0
|
+55.6
|
+0.10%
|
+0.24%
|
-0.03%
|
+0.08%
|
Market is expected to open on flattish note and likely to witness range bound session.
The Reserve Bank of India in its latest edition of the Financial Stability Report has noted that while the stress in the banking sector remains elevated, it appears to be bottoming out. The banking regulator also noted that the private sector banks at the end of September 2017 registered significantly higher increase in their gross non-performing assets as compared to their state-run peers. The RBIs stress test – an indicator of the resilience of the banking system has indicated that under the baseline scenario, the GNPA ratio of all banks may increase from 10.2% in September 2017 to 10.8% by March 2018 and further to 11.1% by September 2018.
Tech Mahindra announced a partnership with global management consulting firm Gao Feng Advisory Company to set up a joint Artificial Intelligence (AI) lab in Shanghai. The lab will work in the areas of futuristic digital technologies including AI chatbot Services, smart process automation, Neuro-linguistic programming (NLP), image recognition and processing, Machine Learning (ML) and Predictive Analytics.
Hero MotoCorp unveiled three new bikes, 125cc Super Splendor, 110cc Passion PRO and 110cc Passion XPRO, which will be launched in a phased manner starting next month.
Canara Bank Proposes To Offload 4% Stake In Can Fin Homes
Navin Fluroine Has announced capex of Rs.115cr for Contract manufacturing. The production will start from Jun 2019
Aarti Industries Limited has approved: The buyback of up to 8,20,383 equity shares of face value of Rs.5/- representing upto 1% of the total number of Equity Shares of the Company at a price of Rs.1200/- for an aggregate amount of up to Rs. 98.45cr. Record Date as January 5, 2018 for the purpose of Buyback of Equity Shares.
HDFC to sell 100 percent stake in HDFC Developers and HDFC Realty to Quikr for a total consideration of Rs 355 crore.
SRS to sell its SRS Value Bazaar business for Rs 32 crore to Spencer’s Retail.
Zee Media starts TV news channel for UP, Uttarakhand.
HIL started operations at its plant in Andhra Pradesh.
Information Technology Sector Update- Guidance Upper-end Revision Likely; Tax Reform Benefits Exaggerated?: Accenture reported a strong set of numbers for 1QFY18 (Y/E August) with revenues of US$9.5bn, a YoY increase of 10%/12% in local currency/USD terms (organic growth was 6.5% in local currency terms). This breached the higher end of its guidance. The growth was broad-based across verticals and geographies and included double-digit growth in four out of its five operating groups and two of its three geographic regions in local currency terms on YoY basis. Of particular interest was the growth in Financial Services - up 11% - which was broad-based across banking, capital markets and insurance. Indian companies have been largely witnessing strength in insurance. For FY18, Accenture narrowed its revenue growth guidance range to 6%-8% in local currency terms from 5%-8% given at the end of 4QFY17, and hinted at revision of its upper end of the band post 2QFY18 considering the strong demand.
Credit Cycle - Thematic Report- Credit Recovery To Be An Uphill Climb: We are witnessing signs of an uptick in bank credit growth in India. We expect credit growth to pick up to around 12%-13% in FY19, after a couple of years of single-digit growth. Against this backdrop, we have assessed as to what are the likely drivers of credit growth. Firstly, as we had highlighted in our earlier report: Credit Growth Decoded the share of the banking sector in the flow of resources had declined on account of disintermediation by the corporate bond and commercial paper market. This was partially on account of better transmission of lower interest rates by the market when compared to bank-lending rates. However, now with interest rates having bottomed out, and in all probability likely to edge up on declining liquidity and higher inflation, we expect some of the credit demand to return to the banking system. Secondly, rising commodity prices are likely to push up working capital demand for credit.
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