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?