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Thursday, February 11, 2016

Hoping to stay afloat! Indices to open weak


Action is at bottom a swinging and flailing of the arms to regain one's balance and keep afloat. - Eric Hoffer
 
The market is trying hard to maintain some balance. Though it manages few spikes intra-day and pares some losses, the indices are finding it hard to even close in the green. US Fed Chair Janet Yellen said what the market wished to hear. In her testimony said the Fed expects that with gradual adjustments in the monetary policy stance, economic activity will expand at a moderate pace in the coming years and that labour market indicators will continue to strengthen. Yellen says going by the strength in the US labour market, Fed was primed for 'gradual rate hike path' to achieve its two per cent inflation target.
 
The outlook is a weak start again. The Nifty has breached previous low of 7240 and has also closed below the same. We expect that index will shift to new zone on the downside and unless some bottom fishing happens aggressively, Nifty could slide towards 6889 in the near term.
 
Heavy-weight results are on tap including SBI, Tata Motors, ONGC, Coal India, Bharat Heavy Electricals Ltd, Hero Motocorp, Essar Shipping, Ashok Leyland, Bank Of India, BEML, 3I Infotech, Amtek Auto, A2Z Infra Engineering and Coffee Day Enterprises.
 
Asian markets are playing catch up on the downside as they opened after a break. Hong Kong is down over 3%, South Korea’s Kospi has dropped over 2%.
 
US markets closed in the red. The Dow Jones Industrial Average lost 99.64 points, or 0.6%, to end at 15,914.74 - its fourth straight day of declines. This marks the blue-chip index’s longest period of declines since Aug. 18 to Aug. 25. Weakness in Walt Disney Co., which hit a 52-week low, and IBM cut about 50 points from the Dow industrials. The S&P 500 index finished unchanged at 1,851.86.
 
Materials and Energy sectors led the losses, following a drop in oil prices. Only two of the S&P 500’s 10 sectors closed in the green: Healthcare was up 0.9% and Technology gained 0.4%. The S&P 500 is down 9.4% year to date. The Nasdaq Composite index advanced by 14.83 points, or 0.4%, to settle at 4,283.59.
 
Finland-based Nordea Fund acquired over 17 lakh equity shares of Reliance Infrastructure for Rs. 75.16 crore through an open market transaction. 
 
Bharti Airtel is in talks to merge its wholly-owned Sri Lanka unit into Dialog Axiata in a likely share-swap deal, two people familiar with the matter said.
 
Mylan NV said that it has agreed to buy Swedish pharmaceutical company Meda AB for US$7.2 billion in cash and stock.
 
Mukesh Bansal, who was handling the commerce and advertising operations at Flipkart, quit on Wednesday after a two-year stint.
 
Bansal would, however, be an advisor to the company, Flipkart said in a statement.
 
Some e-commerce companies will shut down in the next few months, Future Group’s Kishore Biyani was quoted as saying on Wednesday.
 
State Bank of India: SBI, the largest lender in the country, will announce its financial results on February 11 for the third quarter ended December 31, 2015. IIFL forecasts the bank's standalone net profit for Q3 FY16 to soar to Rs. 3,347.2 crore, growing at a rate of 15% yoy; however, it is likely to dip 13.7% qoq.       

Tata Motors: Tata Motors will announce its Q3 numbers today. IIFL forecasts the company’s net profit for Q3 FY16 to decline to Rs. 3,341.9 crore, at a rate of 6.7% yoy and 877.6% qoq.

Ambuja Cements: Ambuja Cements, major cement producing company in India, reported standalone net profit of Rs.109.96 crore for the quarter ended December 31, 2015, registering decline of 66.54% yoy.

Cipla: Cipla , global pharmaceutical manufacturers, reported consolidated net profit of Rs.343.20 crore for the quarter ended December 31, 2015, registering growth of 4.68% yoy, but decline of 20.42% qoq.

Petronet LNG: Petronet LNG reported standalone net profit of Rs.178.39 crore for the quarter ended December 31, 2015, registering growth of 9.85% yoy, but decline of 28.31% qoq.

Mercator: Shipping and logistics company Mercator said it has sold its Singapore bulk cargo business to three investors for a token amount of three Singapore dollars.

Shipping Corporation: Shipping Corporation of India Ltd posted a net profit of Rs. 596.60 mn for the quarter ended December 31, 2015 as compared to Rs. 313.50 mn for the quarter ended December 31, 2014.

Coal India: Coal India, the largest coal miner in India, will announce its Q3 results today. IIFL forecasts the company’s net revenue for Q3 FY16 to rise to Rs. 19,003 crore, growing at a rate of 7% yoy and 8.6% qoq.

MOIL: The company will invest Rs.620 mn for setting up a 10.5MW solar power project for captive use for mines in Madhya Pradesh and Maharashtra.

ACC: ACC Ltd posted a net profit after taxes, minority interest and share of profit of associates of Rs. 1023.90 million for the quarter ended December 31, 2015 as compared to Rs. 3262.20 mn for the quarter ended December 31, 2014.

Ruchi Soya Industries: The company’s standalone revenue stood at Rs. 8,185.29 crore, up by 41.68% yoy and 44.82% qoq.

DFM Foods: DFM Foods Ltd, maker of packaged snacks, reported standalone net profit of Rs. 6.59 crore for the quarter ended December 31, 2015, registering growth of 111.22% yoy.

Tata Global Beverages: The company’s consolidated revenue stood at Rs. 2,081.47 crore, down by 2.78% yoy but up by 2.31% qoq.

Sequent Scientific: Sequent Scientific  will announce its Q3 numbers today. IIFL forecasts the company’s net revenue for Q3 FY16 to soar to Rs. 177 crore, growing at a rate of 58% yoy and 11.3% qoq.

Shipping Corporation of India: The company’s standalone revenue stood at Rs. 987.04 crore, registering decline of 6.21% yoy and 9.03% qoq.
 
Kalpataru Power: Kalpataru Power Transmission, power plant major, reported standalone net profit of Rs.38.11 crore for the quarter ended December 31, 2015, registering decline of 7.03% yoy and 7.09% qoq.

AXISCADES Engineering Technologies: The company’s consolidated revenue stood at Rs. 97.65 crore, up 16.92% yoy and 2.01% qoq.

Asahi India Glass: Asahi India Glass Ltd, leading integrated glass company, reported standalone net profit of Rs. 25.53 crore for the quarter ended December 31, 2015, registering growth of 124.54% yoy and 13.97% qoq.

Engineers India: The company’s standalone revenue stood at Rs. 368.37 crore, down by 7.52% yoy and 18.24% qoq.
 
Glaxosmithkline Pharma: Glaxosmithkline Pharma reported standalone net profit of Rs.79.90 crore for the quarter ended December 31, 2015, registering growth of 76.38% yoy, but decline of 16.81% qoq.

Lakshmi Vilas Bank: Lakshmi Vilas Bank, one of India’s fast growing banks, announced reduction in the base rate from the earlier rate of 10.70% p.a. to 10.55% p.a.

Results: SBI, Tata Motors, ONGC, Coal India, Bharat Heavy Electricals Ltd,Hero Motocorp,Essar Shipping, Ashok Leyland, Bank Of India, BEML, 3I Infotech,Amtek Auto, A2Z Infra Engineering, Coffee Day Enterprises, Compucom Software, Diamond Infosystems, Dynacons Technologies, Ajmera Realty & Infra, Bafna Pharmaceuticals, Bgr Energy Systems, Bliss Gvs Pharma, Chennai Petroleum Corporation, Educomp Solutions, Hindustan Motors, Hinduja Ventures, Icra, Indraprastha Gas, I G Petrochemicals, IL&FS Transportation Networks, Indian Bank, Intellivate Capital Ventures, Jammu & Kashmir Bank, JMT Auto, Jaiprakash Power Ventures, Jaypee Infratech, Jubilant Foodworks, Liberty Shoes, Emami Infrastructure, Excel Industries, Gammon Infrastructure Projects, Hathway Bhawani Cabletel & Datacom, Natco Pharma, National Aluminium Co, NCC, Network, Novartis India, Oriental Bank Of Commerce, Page Industries, Pennar Industries, Prism Cement, Rajesh Exports, BGR Energy, Rupa & Company,Voltas and Wheels India.
 
Global Data: Chinese New Year CNY, National Foundation Day JPY, Eurogroup meeting EUR, Consumer Inflation Expectation (Feb) AUD, RICS Housing Price Balance (Jan) GBP, M2 Money Supply (YoY) (Jan) CNY, New Loans (Jan) CNY, Consumer Price Index (YoY) (Jan) CHF, Consumer Price Index (MoM) (Jan) CHF, 30-y Bond Auction GBP, Unemployment Rate (MoM) (Nov) EUR, Continuing Jobless Claims (Jan 29) USD, Initial Jobless Claims (Feb 5) USD, New Housing Price Index (YoY) (Dec) CAD, New Housing Price Index (MoM) (Dec) CAD, Fed's Yellen testifies  USD, EIA Natural Gas Storage change (Feb 5) USD, 30-Year Bond Auction USD, Food Price Index (MoM) (Jan) NZD, RBA's Governor Glenn Stevens Speech  AUD, Foreign investment in Japan stocks (Feb 5) JPY, Foreign bond investment (Feb 5) JPY
 
Trends in FII flows: The FIIs were net sellers of Rs.7.51 bn in the cash segment on Wednesday. The domestic institutional investors (DIIs) were net buyers of Rs.1.96 bn as per the provisional figures released by the NSE.
 
Other news of the day:
 
ITC unveiled three projects, two integrated consumer goods manufacturing unit at Howrah and an IT Park at Rajarhat near Kolkata, involving an investment of Rs30bn. (ET)
 
Tata Motors (including JLR) reported a 16% increase in global wholesales at 93,355 units in January. JLR sales were up 25% YoY while passenger vehicle sales were up 14% YoY. (BL)
 
NHPC is in talks with private firms such as Jindal Power, Lanco Infratech and Nagarjuna Construction to take over 4,600 MW of hydro power projects in Sikkim and Arunachal Pradesh. (ET)
 
Kalyan Jewellers announced its foray in the e-commerce segment and will offer gold and diamond jewellery on Flipkart. The products will be available from February 12, the company said in a statement. (BS)
 
MOIL will invest Rs620mn for setting up a 10.5MW solar power project for captive use for mines in Madhya Pradesh and Maharashtra. (BL)
 
Vodafone launched 4G in Mumbai on 1,800 MHz. (BS)
 
Britannia Industries is gearing up for a full-fledged play in the estimated Rs850bn Indian dairy market as part of its overall strategy to be a total food company. The company will seek board approval within a couple of months for its expansion in the dairy segment, which could entail a minimum investment of Rs3bn in the initial phase. (BS)
 
The Centre’s tax revenue had touched Rs10.66tn by January 31 or 73.5% of the full-year target. (BL)
 
IRDA chairman T S Vijayan said the caps and commissions and remunerations being given to insurance brokers will remain. However, the upper limit can be determined after taking the feedback from various stake holders. (BS)
 
India and Australia agreed on enhancing cooperation in clean coal technology, renewable power and LNG in a bid to meet the burgeoning demand for cheap and environment-friendly energy in one of the fastest growing emerging economies.  (ET)

Grey Market Premiums


Issue Name
Price Band
Grey Market Premium
Kostak Price
(Minimum Application)
Kostak Price
(Rs. 2 Lac Application)
Teamlease Services Limited
785 to 850
235 to 240
500 (Last Sauda)
--
Quick Heal Technologies
311 to 321
45 to 50
600 to 625
--
 

India can use Australian expertise in rooftop solar: Goyal



The union minister of state for new and renewable energy, Piyush Goyal, has emphasized the need for technology transfer for efficient expansion of renewable power in India. Speaking at a round table on renewable energy challenges for grid integration at the University of New South Wales (UNSW), Sydney, Australia, Goyal said India can use Australian expertise in rooftop solar as almost a third of Australian homes in some states are using rooftop solar. Additionally, Australian expertise in scheduling and forecasting solar generation to enable grid integration would be welcomed by Indian companies. Goyal also advocated for utilizing Australian technologies for efficient renewable power and grid integration in India and technology transfer through strong educational and research collaboration between Australian (e.g. UNSW) and Indian organizations (like National Institute of Solar Energy (NISE). He stressed the need for Australian technology to be affordable. It is crucial for the prices of renewable energy to be comparable to coal based thermal power to be viable in India. He said that India is interested in benefitting farmers through usage of solar technologies to optimize gas usage for fertilizer production and recycling processes for rice husk technologies. The Minister also highlighted that in view of land availability challenges in India; renewable technologies which reduces land requirement would be welcome. He further said that cost challenges can be met through ‘Make in India’. This will help in achieving the ideal combination of Indian manpower and Australian innovation.

'Worsening asset quality to affect PSBs' credit profiles'



Worsening asset quality will affect the credit profiles of public sector lenders, which may require higher capital infusion from the government, rating agency Crisil said.

"Intensifying asset quality problems at PSBs have the potential to impair their credit risk profiles and necessitate significantly higher capitalisation of PSBs either through government infusion or relaxation of regulatory capital norms," it said in a report.

Public sector banks (PSBs) account for as much as 85 per cent of the banking sector's weak assets, reported PTI.

Increasing stress is also visible in the quantum of strategic debt restructuring and 5/25 structuring being carried out by banks.

Most of the PSBs that have declared their third quarter results reported either dip in profits or net losses, including Punjab National Bank, Dena Bank, Indian Overseas Bank and Central Bank of India, among others, reported PTI.

Over the past 18 months, Crisil has either downgraded or revised its outlook to 'Negative' for nine out of the 25 PSBs that it rates on the back of expectations of worsening asset quality.

In May last year, the rating agency had estimated weak assets in banks to rise to a high of around Rs 5.3 lakh crore or 6.3 per cent of total advances by March 2016.

"However, the deterioration in asset quality in the first nine months of the current fiscal has been faster than expected for various reasons, such as the severe downturn in global commodity prices, inability of the leveraged players to sell assets, and the proactive identification of stressed assets as part of RBI's asset quality review," the report said.

The provisioning requirement of PSBs will increase further and render their pre-provisioning profits inadequate, leading to a significant deterioration in earnings profiles, it said.

The government will have to step in and provide more capital than what was committed under the 'Indradhanush' plan.

"We will be looking out for government announcements for such measures, including in the upcoming Union Budget," it added.

"If that doesn't happen, our threshold of 'high safety category' for PSBs could get lowered," Crisil said.

Under the PSB revamp plan Indradhanush, the government has earmarked Rs 70,000 crore capital infusion in PSU banks over a period of four years.

Of this, Rs 25,000 crore will be infused in FY16 and FY17 each and Rs 10,000 crore in both FY18 and FY19.

Govt urges banks to enhance credit disbursal for sanitation


The Indian Government has said that it has asked banks and micro-finance institutions to enhance their credit disbursal for sanitation to achieve the goal of Swachh Bharat Mission of making India free from open defecation by 2019. Commenting on the issue, Rural Development and Drinking Water and Sanitation Minister Birender Singh told the media, “The Finance Ministry has included water and sanitation as new fields for priority sector lending by commercial banks but this "monumental policy change must translate from intent to action". “There is incentive of Rs 12,000 for construction of a toilet for BPL families but to achieve universal coverage, there is need for easy financing by banks and other financial institutions,” he added. The Minister further added that that since the launch of the mission on October 2, 2014, more than 14.7 million toilets had been constructed in rural areas. The Minister further urged the banks and micro-finance institutions to extend credit for sanitation and water sectors.

Govt to achieve tax revenue target for current fiscal: Adhia



The Indian Government has said that it will achieve the tax revenue target for the current year with larger-than- budgeted indirect tax collections making up for a possible shortfall in direct taxes. As per reports, after two successive years of revising downward the tax revenue target, fiscal 2015-16 which ends on March 31 is likely to see tax revenue target of Rs 14.49 lakh crore being met. Commenting on the issue, Revenue Secretary Hasmukh Adhia told the media, “We are likely to exceed the collection in Indirect Tax by about Rs 40,000 crore in the current year. On the whole, we are optimistic of close to 100 per cent achievement of overall tax revenue target of the year." “The tax collections between April-January show an increase of 33 per cent in Indirect Tax and 10.9 per cent in Direct Tax. Both put together, we have achieved 73.5 per cent of BE target," he added. Last fiscal, the Government had targeted Rs 13.64 lakh crore in tax revenues but at the end of the year it was revised downwards to Rs 12.51 lakh crore.

Bandhan Bank targets growth of 30 pct by 2017-end



Kolkata headquartered Bandhan Bank, which began commercial operations last year has said that it is targeting growth on the deposit as well as credit front by at least 30 per cent by 2017-end. Commenting on the issue, Bandhan Bank Managing Director and CEO C.S. Ghosh told the media, “Our deposits now stand at Rs.7,500 crore of which more than one-third is from retail customers. On the credit front, by March this year, it will reach around Rs 14,000 crore. As a bank, we expect to grow at anything between 30 per cent to 40 per cent in the next financial year in both credit and deposits." “The bank in the current year will continue to reach out more to people targeting 'unbanked sectors' and rural areas. Our total customer base is now around 1.55 crore of which 82 lakh are depositors. We will continue to focus on reaching out to more people with special stress on unbanked sectors and rural customers," he added. The bank also expects to expand its number of branches to 632 by March end this year.

DIPP proposes 100% FDI in marketplace e-tail: Report


E-commerce companies, many of them unicorns (valued at $1 billion or more), could get full foreign direct investment (FDI) if a proposal of Department of Industrial Policy and Promotion (DIPP) passes muster, said a Business Standard report. Press Trust of India reported on Tuesday that the government was considering permitting 100 per cent FDI in the marketplace format of e-commerce to attract more foreign investments. This follows a recent meeting of top officials in DIPP, and the department of economic affairs and corporate affairs. A DIPP official told Business Standard that the proposal to allow FDI in e-commerce marketplace had been in the works for quite some time. It is believed that while DIPP is bullish on permitting no-holds-barred FDI in the sector, finance ministry is yet to give a green light to the proposal. If it does get a go-ahead, online marketplace FDI rules would be a part of the detailed guidelines to be issued soon. At present, while no foreign investment is permitted in e-commerce, there are no rules for those operating in the online marketplace format. Major online players, including Flipkart, Snapdeal, Amazon.in, Shopclues and Paytm, which are funded by marquee international investors, operate as marketplace firms, thereby skirting the FDI hurdle. E-commerce is growing at a fast clip in India. In 2015, the market had risen from USD 5 billion to USD 8 billion. A Goldman Sachs report has projected that e-commerce in India could breach the $100-billion mark by 2020.

State Bank of India, Tata Motors, ONGC and BHEL: Check out the expectations


State Bank of India (SBI), the largest lender in the country, will announce its financial results on February 11 for the third quarter ended December 31, 2015. IIFL forecasts the company’s standalone net profit for Q3 FY16 to soar to Rs. 3,347.2 crore, growing at a rate of 15% yoy; however, it is likely to dip 13.7% qoq.

Tata Motors Ltd, one of the leading automobile companies in India, will announce its financial results on February 11 for the third quarter ended December 31, 2015. IIFL forecasts the company’s net profit for Q3 FY16 to decline to Rs. 3,341.9 crore, at a rate of 6.7% yoy and 877.6% qoq.

Coal India Ltd, the largest coal miner in India, will announce its financial results on February 11 for the third quarter ended December 31, 2015. IIFL expects net profit to increase to Rs. 3,305 crore at 1.9% yoy and 29.9% qoq.

Oil and Natural Gas Corporation (ONGC), the State-run oil and gas major, will announce its financial results on February 11 for the third quarter ended December 31, 2015. IIFL expects net profit to increase to Rs. 4,418.6 crore at 3% yoy; however, it is expected to drop 8.7% qoq.

Bharat Heavy Electricals Ltd (BHEL), the State-run heavy electrical equipment manufacturer, will announce its financial results on February 11 for the third quarter ended December 31, 2015. IIFL forecasts the company’s net profit for Q3 FY16 to surge to Rs. 264 crore, growing at a rate of 24.2% yoy.
Hero MotoCorp, one of India’s leading manufacturers of two-wheelers, will announce its Q3 numbers today.  IIFL forecasts the company’s net profit for Q3 FY16 to jump to Rs. 838.2 crore, growing at a rate of 43.8% yoy and 8.6% qoq.
National Aluminium Company Ltd (NALCO), one of the leading producers of aluminium in India, will announce its Q3 numbers today. IIFL expects net revenue to tumble to Rs. 1,634 crore at 14.3% yoy and 10% qoq.  IIFL expects EBIDTA margin at 9.8%, with a yoy rise of 1.8 bps.

NCC Ltd will announce its financial results on February 11 for the third quarter ended December 31, 2015. IIFL forecasts the company’s net profit for Q3 FY16 to surge to Rs. 48 crore, at a rate of 87.7% yoy and 16.5% qoq.

Ashok Leyland Ltd, one of the leading manufactuers of commercial heavy vehicles in India, will announce its Q3 results today. IIFL expects net revenue to surge to Rs. 4,058 crore at 20.7% yoy; however, it is expected to plunge 17.8% qoq.
Natco Pharma Ltd, one of the leading drug makers in India, will announce its financial results on February 11 for the third quarter ended December 31, 2015. IIFL expects net revenue to surge to Rs. 257 crore at 31.1% yoy and 10.7% qoq.

J Kumar Infrastructure Projects Ltd will announce its financial results on February 11 for the third quarter ended December 31, 2015. IIFL forecasts the company’s net revenue for Q3 FY16 to rise to Rs. 340 crore, at a rate of 12% yoy and 2.7% qoq.

IL & FS Transportation Networks Ltd will announce its financial results on February 11 for the third quarter ended December 31, 2015. IIFL forecasts the company’s net profit for Q3 FY16 to tumble to Rs. 29.3 crore, at a rate of 77.3% yoy and 57.7% qoq.

Jubilant Foodworks Ltd, a company that runs pizza chain Domino’s, will announce its  Q3 results today. IIFL forecasts the company’s net revenue for Q3 FY16 to surge to Rs. 721 crore, at a rate of 30% yoy and 22.6% qoq.

Indian Bank Ltd, a PSU bank, will announce its financial results on February 11 for the third quarter ended December 31, 2015. IIFL forecasts the bank’s net profit for Q3 FY16 to plummet to Rs. 265 crore, at a rate of 4.5% yoy and 28.3% qoq.

Prism Cement Ltd will announce its Q3 numbers today. IIFL forecasts the company is expected to report a loss of Rs. 12 crore for Q3 FY16.

Union Bank of India Ltd, the PSU lender, will announce its  Q3 financial results  today. IIFL forecasts the bank’s net revenue for Q3 FY16 to drop to Rs. 2,047 crore, at a rate of 3.5% yoy and 2.6% qoq.

Sequent Scientific Ltd, one of leading pharmaceutical companies in India, will announce its financial results on February 11 for the third quarter ended December 31, 2015. IIFL expects net profit to increase to Rs. 7.4 crore at 112.1% qoq. IIFL expects EBIDTA margin at 14%, with a yoy rise of 13.5 bps.

Bank of India, a PSU lender, will announce its financial results on February 11 for the third quarter ended December 31, 2015. IIFL expects net profit to plunge to Rs. 128 crore at 26.1% yoy and 111.4% qoq.

BEML Ltd will announce its financial results on February 11 for the third quarter ended December 31, 2015. IIFL expects net revenue to surge to Rs. 742 crore at 28.6% yoy and 19.4% qoq.

Rupa & Company Ltd will announce its financial results on February 11 for the third quarter ended December 31, 2015. IIFL forecasts the company’s net profit for Q3 FY16 to surge to Rs. 13.6 crore, at a rate of 72.2% yoy; however, it is likely to fall 53.2% qoq.

BGR Energy Systems Ltd, a heavy electrical equipment manufacturer, will announce its financial results on February 11 for the third quarter ended December 31, 2015. IIFL expects net revenue to surge to Rs. 1,016 crore at 2.7% yoy and 22.1% qoq.

Wheels India Ltd, an auto parts and equipment manufacturer, will announce its financial results on February 11. IIFL forecasts the company’s net revenue for Q3 FY16 to increase to Rs. 484 crore, growing at a rate of 1.6% yoy; however, it is expected to fall 6.6% qoq.

Voltas Ltd will announce its financial results on February 11 for the third quarter ended December 31, 2015. IIFL expects net revenue to increase to Rs. 1,004 crore at 5.6% yoy; however, it is expected to tumble 5.6% qoq.

ICRA Ltd, one of the leading rating agencies in India, will announce its financial results  on February 11 for the third quarter ended December 31, 2015. IIFL expects net revenue to increase to Rs. 90 crore at 8.7% yoy and 6.6% qoq.

RBI likely to cut repo rate by 25 bps in April: Nomura


A Nomura report has said that the Reserve Bank is likely to cut the repo rate by 25 basis points (bps) after the Budget, in its policy meeting in April. According to the Japanese brokerage firm, gross value added (GVA) growth has marginally undershot the RBI's 7.4 per cent projection in the financial year 2015-16, supporting the case for a rate cut. Commenting on the issue, a Nomura Official told the media, "In our baseline, we believe the RBI will cut the repo rate by 25 bps in the April policy meeting after the Budget. Beyond that, we expect the RBI to stay on hold and shift its focus to policy transmission." "We expect GDP (market prices) growth to pick up moderately to 7.8 per cent in FY17 (year ending March 2017) from 7.6 per cent in FY16, indicating a slow and steady upcycle," he added. As per reports, the factors that are likely to support growth recovery include low commodity prices, low inflation, wage hikes owing to the forthcoming 7th pay commission and a normal monsoon.

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Tuesday, February 09, 2016

Grey Market Premiums - Feb 9 2017


Issue Name
Price Band
Grey Market Premium
Kostak Price
(Minimum Application)
Kostak Price
(Rs. 2 Lac Application)
Precision Camshaft

186.00
5 Seller
600 (Last Sauda)
--
Teamlease Services Limited
785 to 850
235 to 240
500 (Last Sauda)
--
Quick Heal Technologies
311 to 321
60 to 65
600 to 625
--

Dr Reddy’s Lab, NTPC, Hindalco among 25 Stocks in focus today


NTPC: The Supreme Court on Monday asked the Madhya Pradesh government to defreeze NTPC’s bank accounts and withdraw its notice to cancel registration of its 4,760-megawatt (MW) Vindhyachal Super Thermal Power Plant in the state, reports a financial newspaper.

JK Tyre & Industries: JK Tyre & Industries , leading tyre manufacturers in India, reported consolidated net profit of Rs.110.64 crore for the quarter ended December 31, 2015, registering growth of 20.51% yoy.

NBCC: The company has bagged business worth Rs. 2,525.86 crore (approx) in the last month.

PFC, REC, NHPC: Rural Electrification Corporation (REC) and Power Finance Corp (PFC) may buy Government's shares in NHPC, according to reports. Report says that this move comes as the government had earlier said that it will come out with an alternative strategy to push PSU disinvestment.

Atul Auto: The company’s standalone revenue stood at Rs. 151.70 crore, clocking growth of 8.88% yoy.

Dr Reddy’s Lab: Dr. Reddy's announced that its US subsidiary, Promius Pharma, LLC, U.S.has received approval for Sernivo (betamethasone dipropionate) Spray, 0.05% from the U.S. Food and Drug Administration.

Suzlon Group: The company announced the completion of the Type Testing and Certification of its S111 turbine for 50 Hz and 60 Hz variants.

Wipro: Wipro announced that it has won an IT infrastructure transformation contract from the ASSA ABLOY Group, headquartered in Sweden. ASSA ABLOY is the global leader in door opening solutions.

SRF: The company's total income has decreased from Rs. 1,117.8 crore for the quarter ended December 31, 2014 to Rs. 1,106.6 crore for the quarter ended December 31, 2015.

United Bank of India: The bank received approval for raising Additional Tier - 1 capital under BASEL-III norms up to Rs. 1000 crore. through issuance of Perpetual Debt Instruments in the form of subordinated, non-convertible, non-cumulative, listed, Basel-Ill compliant Additional Tier1 Bonds in the form of Debenture/ Promissory Notes of the face value of Rs. 10 lacs each on private placement basis for inclusion in the Additional Tier1 Capital of the Bank for the purpose of ascertaining the capital adequacy ratios.

Strides Shasun: Strides Shasun, pharmaceutical industry major, reported consolidated net profit of Rs. 58.81 crore for the quarter ended December 31, 2015, registering growth of 112.23% qoq.

GlaxoSmithkline Consumer Healthcare: GlaxoSmithkline Consumer Healthcare, pharma major, reported standalone net profit of Rs.131.85 crore for the quarter ended December 31, 2015, registering growth of 36.76% yoy.

AIA Engineering: The company’s consolidated revenue stood at Rs. 493.07 crore, down 4.13% yoy but up 0.99% qoq.

Polaris Consulting: The Company’s consolidated revenue stood at Rs. 517.58 crore, witnessing marginal decline of 0.02% qoq but clocked growth of 9.02% yoy.

Bombay Dyeing: The company reported its Q3 net loss at Rs.78.1 crore for the quarter ended December 31, 2015 as compared to Rs.65.9 crore for the quarter ended December 31, 2014.

Inox Wind: INOX Wind reported a 2.4% increase in standalone net profit at Rs.103 crore for the third quarter that ended on December 31, 2015.

DB Realty: The company said that it allotted over 7.17 crore redeemable preference shares to three of its subsidiaries pursuant to scheme of amalgamation of Gokuldham Real Estate Development Company.

Monsanto India:Monsanto India Ltd posted a net profit of Rs. 407.60 mn for the quarter ended December 31, 2015 as compared to Rs. 483.40 million for the quarter ended December 31, 2014.

Balrampur Chini Mills: The company’s standalone revenue stood at Rs. 848.88 crore, up 0.85% yoy and 69.41% qoq.

VST Tillers Tractors: The company’s standalone revenue stood at Rs. 151.79 crore, up by 42.25% yoy and 0.56% qoq.

Piramal Enterprises: The company reported a 29% increase in net profit at Rs.322 crore for the third quarter that ended on December 31, 2015.

HCL Technologies: HCL Technologies announced the launch of an Internet of Things (IoT) Incubation Center in Redmond, Washington, USA, designed to leverage Microsoft Azure IoT Suite to accelerate enterprise IoT adoption.

T.V. Today Network: T.V. Today Network, one of India's leading English-Hindi news television networks, reported standalone net profit of Rs. 36.90 crore for the quarter ended December 31, 2015, registering growth of 40.09% yoy.

Phoenix Lamps: The company recorded a fall of 15.7% in its net profit at Rs. 7.42 crore for the quarter ended December 31, 2015 as compared to Rs.8.81 crore for the quarter ended December 31, 2014.

Gail(India): The Tamil Nadu government has asked the Centre to rescind the notification on GAIL gas pipeline passing through the state. Gail India Ltd will announce its financial results today. IIFL forecasts the company’s net revenue for Q3 FY16 to tumble to Rs. 14,080 crore, at a rate of 5.9% yoy and 0.6% qoq.IIFL expects net profit to plummet to Rs. 437.6 crore at 27.6% yoy and 0.7% qoq.

Dr Reddy’s Lab: Dr Reddy’s Laboratories Ltd, India’s second largest pharmaceutical company, will announce its financial results today. IIFL forecasts the company’s net revenue for Q3 FY16 to surge to Rs. 4,093 crore, growing at a rate of 6.5% yoy and 2.6% qoq. IIFL expects EBIDTA margin at 29.2%, with a yoy rise of 6 bps.

Ramco Cement: The company will announce its Q3 results today. IIFL forecasts the company’s net net profit for Q3 FY16 to spurt to Rs. 64.4 crore, growing at a rate of 180% yoy; however, it is expected to fall 53.6% qoq.

SAIL: IIFL forecasts the company’s net revenue for Q3 FY16 to decline to Rs. 9,180 crore, at a rate of 17.3% yoy and 0.8% qoq. IIFL expects EBIDTA margin at -7.6%, with a yoy fall of 18.5 bps.

Motherson Sumi: Motherson Sumi Systems Ltd, one of the leading auto parts and equipment manufacturers, will announce its Q3 results today. IIFL forecasts the company’s net profit for Q3 FY16 to fall to Rs. 312.80 crore, growing at a rate of 23.1% yoy and 9% qoq.IIFL expects net revenue to surge to Rs. 9,401 crore at 2.8% yoy and 2.2 qoq.

MOIL: MOIL Ltd, a mining firm, will announce its financial results today. IIFL forecasts the company’s net profit for Q3 FY16 to fall to Rs. 49 crore, at a rate of 54.6% yoy; however, it is likely to rise marginally.

Hindalco Industries: Hindalco Industries Ltd, one of the leading aluminium producers in India, will announce its financial results today. IIFL forecasts that the company is likely to report a loss of Rs. 159 crore for Q3 FY16. IIFL expects EBIDTA margin at 7%, with a yoy fall of 3.7 bps.

Apollo Tyres: IIFL forecasts the company’s net revenue for Q3 FY16 to decline to Rs. 2,890 crore, at a rate of 6.9% yoy and 3.5% qoq.

Bharat Forge: Bharat Forge Ltd will announce its financial results today. IIFL forecasts the company’s net revenue for Q3 FY16 to fall to Rs. 1,083 crore, at a rate of 9.6% yoy and 3.1% qoq.

Britannia Industries Ltd: Britannia Industries Ltd, one of the leading producers of packaged foods in India, will announce its Q3 results today. IIFL forecasts the company’s net revenue for Q3 FY16 will surge to Rs. 2,336 crore, growing at a rate of 14.9% yoy and 5.8% qoq.

Aurobindo Pharma: Aurobindo Pharmaceuticals, one of India’s leading drug makers, will announce its financial results today. IIFL forecasts the company’s net revenue for Q3 FY16 to rise to Rs. 3,553 crore, growing at a rate of 10.8% yoy and 5.3% qoq.

Govt curtails CIL mine expansion on pollution concerns



The Indian Government has said that it has given green clearance to a subsidiary of Coal India for phase one production expansion of Kusmunda mine in Chhattisgarh to only upto 26 million tonnes per annum (MTPA) instead of 50 MTPA sought earlier. As per reports, the Kusmunda open cast mine, which presently produces 18.75 MTPA of coal of power grade, is operated by South Eastern Coalfields Ltd (SECL) -- the country's largest coal producing company and the flagship entity of state-owned Coal India Ltd (CIL). As per reports, SECL had initially sought green clearance for production expansion upto 50 MTPA in two phases, entailing an investment of Rs 7,612.33 crore MTPA in two phases, entailing an investment of Rs 7,612.33 crore. Commenting on the issue, a senior Environment Ministry official told the media, "Based on the recommendations of the EAC, the ministry has given environment clearance (EC) for expansion of Kusmunda open cast coal mine from 18.75 MTPA to 26 MTPA in mining lease area of 1,449.86 hectare under phase one, subject to certain conditions." “Further, production expansion of the Kusmunda project, located in Korba district, would depend on effective pollution control measures adopted by the company,” he added.