Market Insight - Dow, Dow Futures, Hangseng, SGX Nifty & Nikkei 28 Feb 17

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 fell Tuesday after the first congressional testimony of new Fed Chairman Jerome Powell raised new worries that interest rates may climb more than expected.

• Dow

25,410.0

-299.2

-1.2%

• Dow Futures

25,444.0

15.0

0.1%

• Hangseng

30,912.6

-356.1

-1.1%

• Nikkei

22,309.1

-80.8

-0.4%

• SGX Nifty

10,501.5

-60.5

-0.6%

Asian stocks slipped early Wednesday, but losses were restrained despite the sharp pullback in U.S. stocks after Federal Reserve Chairman Jerome Powell comments to Congress.

Nifty is expected to open with gap down and likely to witness selling pressure during the day.

HDFC QIP floor price set at Rs 1,824.63 apiece. Panel will consider QIP issue price on March 5.

Cipla partnered with Roche Pharma India to create greater access to key medicines.

DLF’s subsidiary emerged as the highest bidder for 11.76-acre Gurugram land at Rs 1,500 crore.

Kridhan Infra acquired 31.5% stake in Vijay Nirman.

Sadbhav Infrastructure Projects declared lowest bidder for Rs 1,047 crore NHAI order.

Larsen & Toubro to sell up to 2% stake, in L&T Infotech to achieve the minimum public shareholding.

Bharat Forge completes divestment of its shareholding in Alstom Bharat Forge Power to GE.

ABC India receives order of Rs 142cr from BHEL for Multimodal Transportation of Export Project Cargo.

Atlas Cycles manufacturing activity at Sonepat unit has been temporarily suspended may be closed after re-assessing the situation

Reliance Industries may shut down KG basin’s MA Field by Oct on falling output.

BPCL In talks to sell stake in Bina refinery. National oil firms of Oman, Kuwait, Abu Dhabi may buy upto 24% stake.

A consortium of Dalmia Bharat and Bain Piramal Resurgence Fund emerged the top bidder for Binani Cement, trumping UltraTech Cement, with a Rs 6,700-crore offer that will see banks getting all their money back, challenging the assertion that bankers will face losses in every bankruptcy resolution case.

Singaporean sovereign wealth fund GIC has agreed to invest around Rs 2,600 crore in real estate firm Prestige Estates' subsidiary Exora Business Park for a consideration of up to 40% stake.

Institution Desk - Automobile Sales Estimate–February 2018- Monthly Sales Estimate- Sales Expected To Remain Strong: We expect automobile sales in February 2018 to remain buoyant as they will continue to benefit from the low base caused by demonetisation last year, although YoY growth numbers will not entirely mirror the preceding month’s trend, considering that February 2017 was a month of recovery across segments. Besides, the lesser number of despatch days available for original equipment manufacturers (OEMs) in February 2018 to supply various models to their dealers will cause a MoM decline in sales volume. The effect of a low base will taper going forward as sales had started gaining momentum from February 2017 after a steep drop post demonetisation. In the two-wheeler space, we expect mid-teen YoY double-digit growth momentum. We expect market leader Hero MotoCorp to report 12% sales growth while TVS Motor Company is likely to register close to 18% growth supported by strong exports and three-wheeler sales. Bajaj Auto’s launch of Discover bike model will aid two-wheeler sales while its three- wheeler and export volume continues to do well. In the passenger car segment, we expect market leader Maruti Suzuki India to report 8% YoY growth in sales, backed by the popularity of last year’s launches.

Market Insight - Dow, Dow Futures, Hangseng, SGX Nifty & Nikkei 23 Feb 17

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 were higher after the close on Thursday, as gains in the Oil & Gas, Basic Materials and Industrials sectors led shares higher. 

Dow

24,962

+165

+0.7%

Dow Futures

25,107

+94

+0.4%

Hangseng

31,299

+333

+1.1%

Nikkei

21,814

+78

+0.4%

SGX Nifty

10,404

+18

+0.2%

Asian equities rebounded on Friday as comments from a Federal Reserve official eased worries that the central bank might raise rates more aggressively this year, while the safe-haven yen held on to its gains amid heightened volatility across markets.

Nifty is expected to open on flattish note and likely to witness sideways move during the day

We saw meaningful correction after a long time mainly driven by both domestic and international factors. We see the correction mode can continue in March series as well and Nifty may be in the range of 10100 to 10600.

Ministry of commerce has recommended Anti Dumping duty on Dimethyl acetamide (DMAC) originating from China. Balaji Amines is one of the party to initiate the application.

Axis Bank has asked its president and chief information officer Amit Sethi to resign. Sethi’s exit followed a complaint from a whistleblower regarding the functioning of the bank’s technology department, which he headed, said two sources familiar with the development. 

Fortis Healthcare to be out of F&O if it does not declare quarterly results by March 1.

Adani Transmission received letter of intent for one inter-state transmission project in Rajasthan.

Federal Bank: Board approved buying 26%  stake in Equirus Capital.

Dilip Buildcon bagged engineering, procurement, and construction project worth Rs 157 crore from Karnataka government.

The JSW Group has emerged as the highest bidder for Jaypee Infratech, offering a little over Rs 9,900 crore to banks amid claims from homebuyers that they should be considered on par with financial lenders in the resolution plan for the company. 

UltraTech Cement leading the race to take over Binani Cement

Institutional Desk - V2 Retail- NOT RATED- Management Meet Update- Plans Aggressive Expansion:  V2 Retail (VRL) recently to get an update on its business and the organised value retailing industry in Tier-2 and Tier-3 cities in northern and eastern regions of India. VRL reported flattish YoY revenue growth for 3QFY18  as the base was high (because of demonetisation) in the corresponding quarter last year (56% YoY growth in 3QFY17). The management attributed the 17% decline in same-store sales growth (SSG) to a very strong base quarter, Durga Puja being in 2QFY18 this year (typically contributes about 40% to revenues in 3Q), reduced marriage days, delayed and subdued winter, and heightened competitive intensity from both national and regional players entering its markets (Tier-2 & 3 cities). However, EBITDA grew 31% YoY and EBITDA margin expanded 360bps on YoY basis on the back of: (1) Increased cash payment to vendors which helped it to cut purchase costs by ~2%-3%. (2) Input tax credit.  (3) Higher margin on imported goods. (4) Opportunistic buying of stock from its vendors at much lower prices. (5) Higher software-related costs in the base quarter which have not been repeated. VRL indicated its highly aggressive plan of profitable expansion. While we have no rating on VRL currently, we believe it is a vehicle to play the consumption theme of a large expanding ‘Middle India’ whose purchasing power and aspirations are on the rise. It is focused on physical store driven expansion by CAGR of 40% over the next four to five years.
(11:19) arvind research: have u got insight?

Market Insight - Dow, Dow Futures, Hangseng, SGX Nifty & Nikkei 16 Feb 17

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.

US: Wall Street surged on Thursday to notch its fifth straight session of gains, led by Apple and other technology stocks as investors shrugged off recent inflation worries that sent the market into a sell-off at the start of the month.

Dow

25200

+307

+1.2%

Dow Futures

25252

+18

+0.1%

Nikkei

21700

+235

+1.1%

SGX Nifty

10583

+34

+0.3%

Asian equities extended their recovery from two-month lows into a fifth day on Friday as the Wall Street market volatility gauge fell, while the U.S. dollar was undermined by various worries including rising inflation.

Market is expected to open flattish note and likely to witness sideways movement during the day.

Yes Bank to consider proposal to raise funds via debt securities or on private placement basis on Feb 20. It has necessary approvals to borrow/raise funds upto Rs 20,000 cr in 1 or more tranches.

Indoco Remedies granted EU FMP Certification for Goa plant III

Future Consumer has raised Rs200 crore from UK based CDC Group plc, through non- convertible debentures (NCDs) to finance capex, long-term working capital and support the growth of the business. 

Idea Cellular to complete its merger with Vodafone in the first half of 2018

SBI has hiked bulk deposit rates by 50-140 bps in a move to align them with retail deposit rates and claims this wouldn’t impact the cost of funds in a significant manner.

Prakash Industries to raise Rs 208 crore from promoters by issuing 1 crore convertible warrants.

Som Distilleries & Breweries announced that it will start its Maharashtra operations from 16 February 2018. The initial launch would start from Nagpur.

Get Ready For Most Cryptocurrencies To Hit Zero, Warns Goldman Sachs

The tumble in cryptocurrencies that erased nearly $500 billion of market value over the past month could get a lot worse, according to Goldman Sachs Group’s global head of investment research. Most digital currencies are unlikely to survive in their current form, and investors should prepare for coins to lose all their value as they’re replaced by a small set of future competitors, Goldman’s Steve Strongin said in a report dated February 5.

While he didn’t posit a timeframe for losses in existing coins, he said recent price swings indicated a bubble and that the tendency for different coins to move in lockstep wasn’t rational. “The high correlation between the different cryptocurrencies worries me,” Strongin told Bloomberg. “Because of the lack of intrinsic value, the currencies that don’t survive will most likely trade to zero.”

Market Insight - Dow, Dow Futures, Hangseng, SGX Nifty & Nikkei 5 Feb 17

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. stock closed mostly lower Thursday after a midday gain faded by late afternoon.

Dow

25521.0

-665.8

-2.54%

Dow Futures

25243.0

-185.0

-0.73%

Hangseng

31963.5

-638.3

-1.96%

Nikkei

22709.0

-565.5

-2.43%

SGX Nifty

10591.0

-127.5

-1.19%

Asian stocks dipped, with technology stocks leading declines after some disappointment with U.S. corporate earnings. Rising pressure on bond yields round the world stirred the Bank of Japan into action to keep rates from getting out of whack with policy targets.

Market is expected to open with gap down and likely to witness selling pressure during the day.  

GAIL places order of Rs 440 crore for 350 kilometers Vijaipur(UP) – Auraiya(MP) spurline and Rs 3,500 crore capex for City Gas Distribution in financial year 2019.

Tata Steel completes completion of 74 % stake in Bhubaneshwar Power for Rs 255 crore.

GMR Infra to acquire 4.15 crore shares (11 %) in GMR Hyderabad International Airport for $76 million

Avenue Supermarts completes acquisition of 4.35 crore in Avenue E-Commerce for Rs 49.2 crore.

Mangalam Organics to buyback 6.10 lakh shares (6.74 % equity) at Rs 230 each.

Aurobindo Pharma gets U.S. FDA approval for Niacin.

Sintex Plastics to issue warrants to promoters aggregating to Rs 600cr

Force Motors Jan'18 Sales improved -Total Sales came at 2667 vs YoY 2353 units (13.3%) and MoM 1921 units (38.8%).

Hero Motocorp Jan'18 Sales above expectations -Motorcycles came at 641501 units vs expectation of 576800 units, YoY 487088 units (31.7%) and MoM 472731 units (35.7%)

Kerala Budget 2018 tax on IMFL (Indian Made Foreign Liquor) increased. Liquor whose cost is up to Rs 400 to charged 200% and above Rs 400 to charged at 210%. Tax on beer increased to 100%. Negative for Alcoholic Beverages companies like Som Distillers, United Spirits, United Breweries.

Institutional Desk - Automobile Sales- January 2018- Monthly Sales Update-Sales Remain Robust On A Low Base: Automobile sales in January 2018 remained strong, with most companies reporting double-digit YoY growth in volume on account of a low base because of demonetisation. Commercial vehicle (CV) sales grew the strongest, followed by two-wheeler and car sales. Tractor sales also posted double-digit growth. Both commercial vehicle (CV) and two-wheeler segments were hit hard following demonetisation and the yearly growth rate reflects the same.