WEEKLY EQUITY MARKET REPORT -27 JAN TO 31 JAN 2015

INDIAN BENCHMARKS rose nearly 4% led by comments from International Monetary Fund and ECB stimulus which pushed markets to mark fresh record closing high. International Monetary Fund (IMF) on 19 January 2015, announcing India's economy will be world's fastest- growing major economy in the year through March 2017, the European Central Bank (ECB) announcing a massive new bond-buying program on 22 January 2015.

Further, Finance Minister Arun Jaitley will present his first full-year budget on February 28 for the 2015/16 fiscal year, a government official said on Wednesday. February 28 is a Saturday. The parliament session will begin on February 23 and will continue till March 20. The new fiscal year begins on April.
The INDIAN BENCHMARKS surged 1,156.95 points or 4.11% to settle at 29,278.84, while CNX Nifty jumped 321.80 points or 3.77% to settle at 8,835.60, a record closing high for the index.

GLOBAL MARKET CHASE

ASIAN STOCKS average rose to a near one-month high on Friday as investors' risk appetite was buoyed after the European Central Bank unveiled a bond-buying scheme to help revive the region's economy and stave off deflation.

U.S. STOCKS index futures poised for a higher opening at the Wall Street on Friday.

EUROPEAN STOCKS rose in early trade, enjoying their best two-week rally in five years, as investors cheered the European Central Bank's decision to buy government bonds.

WEEK AHEAD

In the coming week, trend in global markets, Q3 results of India Inc., outcome of Federal Reserve's meeting, elections in Greece, investment by foreign portfolio investors (FPIs), the movement of rupee against the dollar, and crude oil price movement will dictate trend on the bourses in a truncated trading week.
The stock markets will remain closed on Monday, 26 January 2015, on account of Republic Day. The market may remain volatile next week as traders roll over positions in the futures & options (F&O) segment from the near month January 2015 series to February 2015 series. The near month January 2015 derivatives contract expire on Thursday, January 29, 2015.
On global front, In US, the Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on Tuesday, 27 January and Wednesday, 28 January 2015. In its last meet in December 2014, FOMC had based on its assessment, judged that it can be patient in beginning to normalize the stance of monetary policy.

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INDIAN EQUITY MARKET WRAPUP -30 JAN 2015

INDIAN BENCHMARKS fall 1.6 pct; banks, Coal India slump
INDIAN EQUITY BENCHMARKS slumped after earlier hitting their seventh record high in the past eight sessions as lenders slumped after Bank of Baroda reported a big fall in earnings, while Coal India fell further on the government's stake sale.. The S&P BSE Sensex and CNX Nifty ended 1.68%-1.60% lower each.
                                                                                                                                    
·HCL Tech surges as Q2 nos beat the street on all counts.
·BOB Q3 net profit plunges; Asset Quality Worsens.
·Andhra Bank reports strong Q3 earnings.
·ICICI Bank Q3 disappoints; Asset quality worsens.
·Dabur India Q3 consolidated net profit up 16% (YoY).

The crucial resistance for Nifty is now seen at 8950 and above this 9015. Support for the immediate term is now placed at 8785 and next support will be 8705.

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TOP CORPORATE NEWS -30 JAN 2015

·Coal India drops over 3% on offer for sale
Shares of Coal India slipped over 3% to Rs363.70 on NSE in opening moves to Rs362 levels, after the government’s offer for sale (OFS) opened for subscription today.
Coal India OFS to open today; sale floor price set at Rs358/Share (retail investors to get 5% discount on discovered price) – Attractive price for investors given the improving volume growth outlook, healthy balance sheet and high dividend yield.
·Igarashi Motors open offer priced at Rs307.92/share
Igarashi Motors open offer priced at Rs307.92/share (10% discount to CMP Rs337); sentimentally negative. lgarashi Electric Works Limited, Japan and MAPE Advisory Group Private Limited have agreed to buy the entire stake of 97.9% held by Blackstone Capital in Agile Electric Sub Assembly Private Limited (Igarashi Promoter) which has triggered the open offer.
·HCC spurts 16% as higher execution led to earnings growth
Shares of Hindustan Construction Company ( HCC)  rallied 16% to Rs33.80 on NSE after reporting a five-fold jump in standalone net profit at Rs27.1 crore for the quarter ended December 31, 2014 (Q3), on the back of a higher turnover. The stock opened at Rs31.90 and hit a high of Rs34.30 on NSE. The infrastructure major had posted a net profit of Rs 5.4 crore for the corresponding quarter a year ago.
·SKS Micro Finance rallies in volatile markets post Q3 nos
SKS Micro Finance applies for small bank license—positive for long term though lower than expected earnings for Q3FY15 could lead to weakness in stock price.SKS Microfinance Q3FY15 Profit growth falls short of estimates.SKS Microfinance reported a profit of Rs41.05 crore for Q3FY15 (up 92% YoY) though it was down 28% QoQ and was short of market estimates.
·Bharti Airtel falls 2% on stake sale plans to Kotak Bank
Shares of Bharti Airtel falls 2% to Rs368.80 on NSE on plans to sell 19.39% stake in its payment banking venture to Kotak Mahindra Bank – Positive for Kotak Bank as well as Bharti Airtel
Bharti Airtel announced that it’s wholly owned subsidiary Airtel M Commerce Services Limited (AMSL) is seeking to convert its existing Prepaid Payment Instrument license into a Payments Bank license to be issued by the Reserve Bank of India.
·Tata Motors to raise Rs7,500 crore via rights issue
Tata Motors management has proposed a rights issue to the tune of Rs7,500 crore. Proceeds from the issue will be utilized to fund a portion of the ongoing capital expenditure, increase investments in subsidiaries to support future growth opportunities and partly to de-leverage the balance sheet and build financial flexibility.
·Government to infuse funds into stalled road projects
The road ministry has proposed to allow road developers to borrow additional funds from the NHAI required to complete stalled projects at a rate lower than that offered by banks. The move if implemented will help the execution of stalled projects which were unable to complete owing to want of funds and banks unable to lend additional loans. The development is positive for the road sector especially players like IRB Infrastructure, IL&FS Transportation, Ashoka Buildcon, Sadbhav Engineering among others.
·SpiceJet board approves up to $243 mn share sale plan
SpiceJet said that its board has approved selling shares worth up to Rs15 billion ($242.6 million) in the company, following a deal between its current majority owner and a co-founder leading a rescue plan.
Ajay Singh, who helped found the airline in 2005, agreed this month to buy a controlling stake from billionaire majority owner Kalanithi Maran's Sun Group in a bid to turn around the money-losing airline.

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SENSEX RETREAT AFTER HITTING NEW PEAK OF 29,844 IN EARLY TRADE

Indian equity shares retreated after hitting new record highs in early trade on emergence of fresh selling in FMCG, consumer durables, metal and banking sector stocks amid mixed Asian cues.

The BSE Sensex continued its record setting spree and hit a new peak of 29,844.16 and the NSE Nifty inched towards the 9,000-level in early trade today on robust fund inflows and sustained optimism over the upcoming Budget.
The 30-share index rose 162.39 points or 0.54 per cent to hit a new peak of 29,844.16 (intra-day), breaking its previous record of 29,786.32 touched on January 28.
In the previous ten sessions, the Sensex had recorded a massive rise of over 2,346 points or more than 8 per cent.
Stocks of realty, power, IT, capital goods, PSU and oil & gas sectors led the rise.
The gauge had touched an intra-day high of 8,985.05 in yesterday’s trade.
Emergence of fresh selling in FMCG, consumer durables, metal and banking stocks dampened the trading sentiment. Among them, FMCG index was down 0.56 per cent, followed by consumer durables 0.31 per cent, metal 0.25 per cent and banking 0.07 per cent.
Japan's Nikkei stock average rebounded about 1 per cent in early trade, a day after shedding 1.1 percent to mark its biggest one-day drop in two weeks.

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INDIAN EQUITY MARKET OUTLOOK -30 JAN 2015

INDIAN BENCHMARKS are likely to open on a positive note as the global cues look supportive with SGX Nifty trading 41.00 points lower.  
Events for the day:
Coal India Offer for sale opens today.      
FURTHER,  Results on January 29, 2015.
ICICI Bank, BoB, Andhra Bank, HCL Technologies, Tech Mahindra, Siemens, Dabur India, Berger Paints, Tata Global, Monsanto India, IFCI, Adani Enterprises, JSW Steel, Thermax, NTPC, Engineers India, PVR, SPARC, eClerx Services.
Trend in FII flows: The FIIs were net buyers of Rs 1723.77 cr in the cash segment on Thursday while the DIIs were net sellers of Rs. - 1680.09 cr, as per the provisional figures released by the NSE.

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INDIAN EQUITY MARKET WRAPUP- 29 JAN 2015

INDIAN BENCHMARKS higher; NSE posts 10 straight sessions of gains
INDIAN EQUITY BENCHMARKS gained 0.4 percent, rising for a tenth consecutive session, its longest winning streak since September 2007, as shares of capital goods firms rose ahead of the fiscal budget next month and oil retailers benefited from a slump in crude prices. The S&P BSE Sensex and CNX Nifty ended 0.41%-0.43% higher each.

·OBC Q3 disappoints; Asset Quality Worsens

·Asian Paints Q3 below estimates; Consolidated net profit at Rs368 cr

·Dr Reddys Lab consolidated Q3 net profit at Rs575 crore

·HDFC Q3 Profits In-Line with Estimates

·Sesa Sterlite Q3 consolidated net profit down 15% (YoY)

The crucial resistance for Nifty is now seen at 8995 and above this 9050. Support for the immediate term is now placed at 8835 and next support will be 8755.

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TOP CORPORATE NEWS - 29 JAN 2015

·Allahabad Bank plans to raise Rs1000 crore via preferential allotment
Allahabad Bank is planning to raise up to Rs1,000 crore through issue of equity shares to government on a preferential basis. The bank has decided to convene an EGM on March 10 to get approval of shareholders for the preferential allotment.
·Induslnd Bank announces launch of Chelsea Brand Credit Card
Induslnd Bank has partnered with Chelsea Football Club to launch a Co-Brand Credit Card, the first of its kind in the Indian market. Induslnd Bank strongly believes in providing innovative solutions to its customers. In recent times, football has seen a surge in viewer ship in the Indian Subcontinent, with Chelsea having a large fan base in India. With this partnership, IndusInd Bank hopes to provide Indian Chelsea fans a strong sense of connect and affilliation with the globally popular football club.
·Gateway Distriparks consolidated Q3 net profit at Rs54 crore
After Initial Public Offering by Snowman Logistics Limited ('SLL', a Subsidiary Company till September 08, 2014), the Group’s shareholding in SLL has reduced to 40.41%. Hence, SLL is treated as an Associate Company with effect from September 09, 2014.The excess of the Group share of net assets of SLL over the cost of investment as on September 09, 2014 (the date on which SLL ceased to be a subsidiary), amounting to Rs2,853.75 Lacs, has been treated as Capital Reserve and is netted off against the carrying value of Investment.
·Intellect Design wins two XCelent Awards
Intellect Design Arena's iGTB division, provider of the world's first complete Global Transaction Banking platform, are delighted to announce that Celent, a research and consulting firm, has awarded iGTB's Receivables Management & Corporate Banking eXchange ( CBX) with XCelent Awards in the 'Advanced Technology' and 'Breadth of Functionality' categories. The awards were announced by Celent in their recently published report titled, Integrated Receivables Vendors: Celent ABCD vendor view.
·HDFC Q3 Profits In-Line with Estimates
Net profit at Rs1425.49 crore vs Rs1277.71 crore (YoY).Total Income at Rs 6882.52 crore vs Rs6030.93 crore (YoY)HDFC reported net profit of Rs1425.5 crore, a growth of 11.6% YoY (up 18.4% YoY ex-deferred tax liability).The income from operations increased by 13% YoY, supported by 14% YoY growth in the loan book (including loans sold). Asset quality remains healthy as gross NPAs were at 0.69% similar to that in Q2FY15.  The reported spreads expanded to 2.31% from 2.29% in Q2FY15.
·Dr Reddys Lab consolidated Q3 net profit at Rs575 crore
Dr Reddy’s Lab has reported a moderate performance in Q3FY2015, as reflected in net sales rising by 8.8% YoY to Rs3843 crore on the back of 21% jump in its Pharma Services and Active Ingredients (PSAI) segments. The company recorded a 9% decline in Russian business, which is facing currency depreciation. Ex-Russian business from Emerging Markets grew by 51%. Revenue from Indian grew by 11% while US business posted a 4% growth during the quarter. Gross profit margin declined by 237Bps YoY to 58.2% but operating profit margin declined by 286Bps YoY to 20.2%
·RIL, BP to invest Rs6,000 crore by 2016; stk up
Reliance Industries Ltd (RIL) rose over 3%, touching to Rs934.25, on reports that the firm and its partner BP plc of UK will invest about Rs 6000 crore by 2016 to improve gas recovery in KG-D6 block.
According to reports, Reliance Industries (RIL) and its partner BP plc of UK will invest about Rs6000 crore by 2016 to help sustain and improve recovery from the two main gas fields in the eastern offshore KG-D6 block.
·Alstom T&D tanks 7% on sharp drop in Q3 earnings
Shares of Alstom T&D India dropped over 7% to Rs505 on NSE after the company reported a sharp drop in its earnings YoY (86% down) to Rs2.6 crore in Q3FY2015 compared to Rs19 crore for Q3FY2014, on 10% decline in revenue and depressed gross margin. This is much below street estimate; hence could react negatively in the trade.

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INDIAN EQUITY MARKET OUTLOOK - 29 JAN 2015

• INDIAN BENCHMARKS are likely to open on a cautious note as the global cues look mixed with SGX Nifty trading 13.00 points lower.  

              Results on January 29, 2015

• Ashok Leyland, Asian Paints, HDFC, HCC, Trent, SSLT, Dr Reddy's Labs, OBC, Shriram City Union, ICRA, Gateway Distriparks, IDFC, IIFL Holdings, SKS Microfinance .             
• FURTHER,  Snowman Logistics' Q3 net up 156%.
• Zee Entertainment launches Zee World in South Africa.
• RIL, BP to invest about Rs6000 cr to improve gas recovery.
• Trend in FII flows: The FIIs were net buyers of Rs 1723.17 cr in the cash segment on Wednesday while the DIIs were net sellers of Rs.  -1292.7cr, as per the provisional figures released by the NSE.

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CS ROCKING PERFORMANCE OF THE DAY - 28 JAN 2015

STOCK FUTURES:

FUTURES INTRADAY

PREMIUM FUTURES

TITAN  FUTURES BUY  CALL 3  TGT

NIFTY FUTURES:

NIFTY FUTURES BUY  CALL SL TRIGERRED

OPTION:

RECLTD  330  CALL  BUY  CALL  3  TGT

TITAN  410  CALL  BUY  CALL  2 TGT (BOOKED AT 12.8)

OPTION PREMIUM:

STOCK CASH:

STOCK CASH INTRADAY:

BF UTILITIES SELL CALL 1 TGT

ROLTA INDIA  BUY  CALL  SL TRIGERRED

STOCK CASH PREMIUM:

TUBE INVESTMENTS  BUY  CALL  3  TGT

RECLTD   BUY  CALL  2  TGT

TITAN INDUSTRY BUY CALL 2 TGT

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INDIAN EQUITY MARKET WRAPUP - 28 JAN 2015

INDIAN EQUITY BENCHMARKS hit a record high for a sixth consecutive session before succumbing to profit-taking as blue-chips, including lenders, rose on hopes the U.S. Federal Reserve could take a dovish stance in its post-meeting statement later in the day. The S&P BSE Sensex fell 0.04% and CNX Nifty ended 0.04% higher.
·Aban Offshore Q3 consolidated net up 62% (YoY)
·Sintex Industries reports strong Q3 earnings
·Ranbaxy Q3 earnings losses widen
·Adani Power Consolidated Q3 net loss at Rs429 crore
The crucial resistance for Nifty is now seen at 8995 and above this 9055. Support for the immediate term is now placed at 8830 and next support will be 8755.

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TOP CORPORATE NEWS - 28 JAN 2015

·Ajanta Pharma Q3 net profit up 36% (YoY)
Ajanta Pharma has announced the following Unaudited Standalone results for the quarter ended December 31, 2014 . Net Profit of the company rose by 35.70% to Rs84.71 crore Vs Rs62.42 crore (YoY).
Total Income increased by 20.97% to Rs368.84 crore Vs Rs304.88 crore (YoY).Ajanta Pharma also informed that the Board of Directors of the Company at its meeting held on January 28, 2015, has approved sub-division of nominal value of equity shares of the Company from Rs5 each to nominal value of Rs2 each and consequential amendment to the Memorandum of Association and Articles of Association, subject to approval of Members of the Company to be taken by postal ballot.
·JP Power likely to default on payments for convertible bonds
Jaiprakash Power Ventures said it was likely to default on payments for convertible bonds worth $200 million due on February 13 this year, as it could not generate enough revenue from its operations.
Jaiprakash, which has been weighed down by debts and a sharp downturn in the performance of the Indian power sector, said in a statement on Wednesday the company was confident of its ability to pay its dues under the bonds by March 31, 2016.
·GMR Infra arm raises funds via bonds
GMR Infrastructure announced that its subsidiary, Delhi International Airport has successfully raised US$288,750,000 in the international bond market. DIAL has entered into a Purchase Agreement to issue and allot US$288,750,000 in principal amount of 6.125% senior secured fixed rate notes due 2022. The proceeds from the Notes will be used to refinance one of the current outstanding External Commercial Borrowing ( ECB).
·Cyient secures prestigious 2014 Supplier Innovation Award
Cyient announced that it was awarded the 2014 Supplier Innovation Award at the annual supplier event held in East Hartford, Connecticut, USA and hosted by the Global Engineering Sourcing Group of Pratt & Whitney, a division of United Technologies Corporation. This is the third win and second consecutive time when this honour was bestowed on Cyient.
·Maruti Suzuki to dedicate capacity of 100,000 at its Gurgaon plant
Maruti Suzuki aims to dedicate a capacity of up to 100,000 at its Gurgaon plant to a new light commercial vehicle (LCV). Likely to be called the ‘Super Carry’, the LCV will be launched in the April-June quarter.
According to industry, the Super Carry would first be launched with an 800 cc diesel engine, and a CNG variant powered by a 1.2 litre engine next year. For the first year, Maruti has provided a production target of 80,000 LCVs to suppliers, which indicates a monthly volume of nearly 7,000. Positive for the stock.
·Symphony to launch new air cooler for Indian market
Symphony Limited to launch new air cooler specially for Indian market: Positive for the company.The Company has come out with new range of cooler with capacity of 4,6,10 and 12 tonne which will be largely used by small industries, larges houses and also commercial complex’s. Currently it will be imported from Mexico, post April 2015 it will be full manufactured in India with technical expertise from Impco (Wholly owned subsidiary of Symphony limited).
·McNally to consider fund raising via preferential allotment
McNally Bharat Engineering Company has announced that a meeting of the Board of Directors of the Company will be held on February 02, 2015, to consider a proposal for raising Equity Capital through Preferential Allotment Basis.
·MBL Infrastructures led consortium bags NHDP project
MBL Infrastructures announced that a consortium led by the Company has been awarded the following NHDP Project on EPC basis -Rehabilitation and upgradation of Pundibari to Baxirhat (WB/ Assam Border) section of NH-31 from km 77 to 816 of NH-31 in state of West Bengal to two lanes with paved shoulders under NHDP - IV on EPC basis, worth Rs279.85 crore, with a construction period of 2 years.

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SENSEX, NIFTY CONSOLIDATE; SBI, TCS & SUN PHARMA GAIN 1%

The Market surged higher as the Sensex is up 91.43 points or at 29662.47. The Nifty is up 38.20 points at 8948.70. foreign institutional investors were net buyers in Indian equities worth Rs 954 crore on Tuesday, as per provisional stock exchange data.

Maruti, Coal India, HDFC, Sun Pharma and TCS are top gainers in the Sensex. Among the losers are Tata Motors, Bharti Airtel, Sesa Sterlite, Tata Steel and Bajaj Auto. 

The rupee was trading lower at 61.45 to the US dollar compared to previous close of 61.41.

Sun Pharma has gained over 1%, however, Cipla has declined nearly 1% on profit-booking and Dr Reddys Lab is up 0.8% ahead of its Q3 results which will be released tomorrow.
Capital goods shares L&T and BHEL witnessed profit taking after gains in the previous session. L&T and BHEL were down 0.4% each.
Bharti Airtel has declined over 2%. Bharti Airtel has commissioned Nokia Networks to expand its 4G presence to six new circles. 

Shares of Maruti Suzuki India (MSIL) were trading higher by 2% at Rs 3,748, extending its previous day’s 2% gain on NSE, after broking firms reiterate “BUY” recommendation on the stock with a target price by up to Rs 4,300 per share.

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INDIAN EQUITY MARKET OUTLOOk - 28 JAN 2015

• INDIAN BENCHMARKS are likely to open on a cautious note as the global cues look mixed with SGX Nifty trading 20.00 points lower . 

             Results on January 28, 2015

• Sintex Industries, Alstom T&D, Ranbaxy Lab, Aban Offshore, Pidilite Industries, Havells India, Torrent Pharma, Emami, Welspun Corp, Ajanta Pharma, Adani Power, Adani Ports, Just Dial.
• FURTHER, Airtel to expand 4G in six more circles; inks pact with Nokia.
• CMC-TCS deal gets no-objection from BSE, NSE.
• Johnson to buy 25.74% stake in Hitachi via open offer.
• Trend in FII flows: The FIIs were net buyers of Rs 953.51 cr in the cash segment on Tuesday while the DIIs were net sellers of Rs. -783.34 cr, as per the provisional figures released by the NSE.

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INDIAN EQUITY MARKET WRAPUP - 27 JAN 2015

INDIAN BENCHMARKS surge to record high for 5th straight session
INDIAN EQUITY BENCHMARKS hit a record high for a fifth consecutive session after a deal that could open the door for U.S. companies to build nuclear reactors in the country boosted firms expected to benefit such as Larsen & Toubro. The S&P BSE Sensex and CNX Nifty ended 1.00% and 0.85% higher each.                                                                                                                             
·Union Bank Q3 nos disappoints; Asset Quality Worsens
·Maruti Suzuki Q3 below street estimates
·Godrej Properties Q3 consolidated net profit up 26% (YoY)
The crucial resistance for Nifty is now seen at 8945 and above this 8985. Support for the immediate term is now placed at 8810 and next support will be 8750.

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TOP CORPORATE NEWS - 27 JAN 2015

·ONGC invests Rs22,500 crore in redevelopment projects

ONGC investing Rs22,500 crore in redevelopment projects to add capacity of 16.7 million tonnes of oil and 56 billion cubic metres of gas. It made 16 discoveries on new sources of output in 2014-15.

Positive for ONGC.

·Rajesh Exports aims to foray into Gold Finance Biz

Rajesh Exports has announced that a meeting of the Board of Directors of the Company will be held on February 09, 2015, to form a Division for foraying into Gold Finance Business, by utilizing its Existing retail network of 81 retail showrooms and to apply for Permissions and the required licenses for foraying into the Gold Finance Business.

·Nutraplus gets allotments advice for 3.5 acres land

Nutraplus Products India announced that the Company has received allotment advice for 3.5 acres land at Saykha Industrial area, GIDC, Dahej, Dist. Bharuch. Company is taking necessary steps to take possession and register the plot its name.

·Ashoka Buildcon completes refinancing debt of Rs324 Crore

Ashoka Highways (Bhandara) Ltd, Which executes the Project to carry on the business of construction, operation, maintenance of Chattisgarh/Maharashtra Border Wainganga Bridge of NH -6 in the State of Maharashtra under NHDP Phase IIIA on Build, Operate and Transfer (BOT) basis, has completed refinancing of its debt of Rs324 Crore with ICICI Bank Ltd. After refinancing the interest cost has been reduced to 11.50% p.a. resulting in a saving of 1.50% p.a. and extension of repayment period – positive for the stock.

·Wipro wins Rs900 crore Irish bank IMS contract

Wipro has won a $150 million (Rs900 crore) IT outsourcing deal from the Allied Irish Banks (AIB), one of the big four commercial banks in Ireland. Company will provide infrastructure management services (IMS), data centre and hosting services to AIB over five years. Its provide a gateway to participate in other IT deals including the Bank of Ireland contract that's coming up for renewal later this year.

·Maruti Suzuki Q3 below street estimates

Maruti Suzuki Q3FY2015 Results: Operating margins beat estimates; however lower other income results in a net profit below estimates. Maruti Suzuki (MSIL) continued to report strong traction in volumes and reported a 12.4% YoY growth in volumes for the quarter which led to a 15.4% growth in revenues for the company to Rs12,576 crore.The gross margins for the company expanded by 114BPS  which helped in a 30BPS QoQ operating margin expansion to 12.7% and higher than our expectation of 12.5%. Operating profit grew 17.6% YoY to Rs1,593 crore.

·Max India set for mega corporate restructuring

Max India board approves Corporate Restructuring plan to vertically split the company throught a demerger, into three separate listed companies, to give investors specific and undiluted access to its diverse lines of businesses, provide sharper focus to each underlying business, and unlock shareholder value. The Board also approved divestment of its clinical research business.

·Supreme Infra rises on plans to issue shares to QIBs

Supreme Infrastructure India said that the Investment committee of the company at its meeting held on January 23, 2015, decided to issue and allot 36.06 lakh equity shares of face value Rs10 each to eligible qualified institutional buyers ( QIBs) at a price of Rs277.39 per equity share (including a premium of Rs267.39 per equity share), aggregating approximately Rs100.03 crore.

Shares will be alloted to QIBs at a premium of 2.18% over the ruling price.

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SENSEX, NIFTY FIRM; BHEL, L&T GAIN ON INDO-US NUKE DEAL

Shares of Max India surged 11 percent, hitting record high at Rs 505 per share intraday as investors are eagerly waiting for its restructuring plans that will be decided in board meeting today. Media reports suggested that Max India may be heading for 3-way split.
The market continues their gains into the 8th consecutive session. Midcaps are marginally outperforming with a firm advance decline ratio. The Sensex is up 98.92 points at 29377.76. The Nifty up 13.00 points at 8848.60. 

Axis Bank, Cipla, Tata Motors, L&T and HDFC are top gainers while Dr Reddy's Labs, Coal Indi, M&M, Infosys and Hindalco. The likes of BHEL, L&T, Pipavav Defense and Walchandnagar gain on optimism of US & India breaking a 6-year log jam over the civil nuclear deal and separately deepen defense ties.
Indian equities worth Rs 2,020 crore on Friday, as per provisional stock exchange data.          
Capital Goods stocks too are trading higher. L&T has gained over 2% and BHEL is up around 1%.
Among auto stocks, Maruti Suzuki is up around 1.7% ahead of its results due later today while Tata Motors is the lead gainer from the pack and has gained over 2%.  However, Bajaj Auto and Hero Motocorp have declined around 1.9% and 1.1% each.
Pharma stocks are trading mixed. While Cipla has gained over 2%, Sun Pharm and Dr Reddys Lab have declined around 0.9% and 3.7% each.
IT stocks are under pressure in today’s session. Infosys has declined around 2.5% and TCS and Wipro are trading flat. Coal India down 3.2% andHUL down 1.6% are other major losers.

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INDIAN EQUITY MARKET OUTLOOK -27 JAN 2015

• INDIAN BENCHMARKS are likely to open on a positive note as the global cues look slightly supportive with SGX Nifty trading 38.50 points higher. Results on January 27, 2015
• Maruti Suzuki, Union Bank of India, Idea Cellular, Godrej Properties, Titan Company, Karnataka Bank, Amara Raja, GSFC.
• FURTHER, Prestige Estates Q3 net up 23% to Rs99 crore.
• Mahindra to expand renewables business amid govt's clean energy push.
• Tata Motors to launch electric Ace next financial year.
• Trend in FII flows: The FIIs were net buyers of Rs 2019.98 cr in the cash segment on Friday while the DIIs were net sellers of Rs. - 1299.96 cr, as per the provisional figures released by the NSE.

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INDIAN EQUITY MARKET WRAPUP- 23 JAN 2015

INDIAN BENCHMARKS rise to record highs for 4th straight day

INDIAN EQUITY BENCHMARKS rose to a record high for a fourth consecutive session as blue chips such as Larsen & Toubro advanced on hopes of additional foreign investments after the European Central Bank launched a landmark bond-buying stimulus programme. The S&P BSE Sensex and CNX Nifty ended 0.94% and 0.85% higher each.
                                                                                                                                     
·Edelweiss Q3 consolidated net profit up 43% (YoY)
·Colgate Palmolive Q3 net profit surges by 16% (YoY)
·Atul Q3 net profit down 18% (YoY)
·Coromandel Intl net profit up 28% (YoY)

Results on January 27, 2015
Maruti Suzuki, Union Bank of India, Idea Cellular, Godrej Properties, Titan Company, Karnataka Bank, Amara Raja, GSFC.
The crucial resistance for Nifty is now seen at 8880 and above this 8925. Support for the immediate term is now placed at 8805 and next support will be 8750.

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TOP CORPORATE NEWS -23 JAN 2015

·Dish TV jumps 8% on overall strong show in Q3
Shares of Dish TV surged over 8% to Rs81 on NSE led by strong show on all counts, management indicated at inflexion point to turn profitable. Dish TV has delivered strong set of numbers for Q3FY15, with EBITDA margins of 26.8%, improved by 246 bps QoQ. Revenues were up by 6% QoQ, while ARPU at Rs177 increase by 3% QoQ. Net loss for the quarter reduced to Rs2.9 crore and company made a free cash flow of Rs29.8 crore for the quarter.
·Kolte-Patil developers to invest over Rs3,000 cr in 13 new projects
Kolte Patil Developers is planning to invest Rs3,000 to 3,500 crore in 13 new projects in the city. It will develop over six to eight million square feet area in the next three years.
Around 80% of the funds will be raised through internal accruals while rest through construction financé and equity. Currently, the company has a total land bank of 50 million square feet in and around Pune.
·Atul Q3 net profit down 18% (YoY)
Atul has announced the following Unaudited Standalone results for the quarter ended December 31, 2014 (YoY):Net profit fell by 17.67% to Rs53.71 crore Vs Rs65.24 crore (YoY).Total Income increased by 3.12% to Rs630.98 crore Vs Rs611.86 crore (YoY)
·IT Dept orders FMCG MNC’s to pay higher taxes
Income Tax Department order FMCG MNC’s like HUL, P&G, L’Oreal & others like Maruti Suzuki and LG Electronics to pay taxes on advertising, marketing and sales promotion expenses higher than the industry average – negative for large FMCG MNCs.The income-tax department has ordered several MNCs, mostly FMCG companies, to pay taxes on advertising, marketing and sales promotion (AMP) expenses incurred over and above the industry average.
·Clean chit to Srinivasan; Meiyappan, Kundra found guilty
Clean chit to Srinivasan (Chairman of India cement); Meiyappan, Kundra found guilty: Positive for India Cement. Allegation on N Srinivasan for covering-up his son-in-law was not proved due to lack of evidence.
However Supreme Court has came down hard on his vested interests in the Chennai Super Kings, which is owned by his company India Cements. As a consequence, Srinivasan may now be allowed to contest the BCCI presidential elections that are expected to be held shortly.
·Colgate Palmolive Q3 net profit surges by 16% (YoY)
Colgate Palmolive (India) has announced the following Unaudited Standalone results for the quarter ended December 31, 2014 (YoY):Net Profit rose by 15.97% to Rs130.86 crore Vs Rs112.83 crore (YoY).
Total Income increased by 10.83% to Rs1005.67 crore Vs Rs907.35 crore (YoY).
·Bosch new gasoline systems facility in Tamil Nadu
Bosch new gasoline systems facility in Tamil Nadu; positive for the company.Leading component manufacturer, Bosch has inaugurated its new facility in Gangaikondan, Tamil Nadu.The company has invested Rs50 crore on this facility which will focus on gasoline systems for both automotive and two wheelers. The plant will help localise manufacturing and increase cost competitiveness.
·Rico Auto surges 4% on restructure plans
Shares of Rico Auto Industries surged 4% to Rs47.55 on NSE on board meeting to restructure holding in subsidiary companies .Rico Auto Industries (Rico) will be meeting on January 28, 2015 to consider transfer of investments held in subsidiary companies to a newly incorporated subsidiary formed as Core Investment Company (CIC).The board will also consider transfer of Ferrous Auto component business located at Gurgaon & Manesar and also Aluminum auto component business at Sanand to one of its subsidiary companies. Prima facie the move is positive; however further details are awaited.

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INDIAN EQUITY MARKET OUTLOOK - 23 JAN 2015

• INDIAN BENCHMARKS are likely to open on a positive note as the global cues look slightly supportive with SGX Nifty trading 78.50 points higher.Results on January 23, 2015
• Atul, Colgate-Palmolive, Coromandel Intl, Bharat Electronics, Persistent System, UltraTech, Edelweiss Financial.                               
• FURTHER, Orient Cement Q3 net profit up 36% at Rs31 cr.
• SpiceJet opens bookings beyond March, but no deep discounts yet.
• Essar Ports' Q3 net profit rises 4.6% to Rs98.34 cr.
• Trend in FII flows: The FIIs were net buyers of Rs 592.79 cr in the cash segment on Thursday while the DIIs were net sellers of Rs. - 578.53 cr, as per the provisional figures released by the NSE.

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CS ROCKING PERFORMANCE OF THE DAY-22 JAN 2015

STOCK FUTURES:

FUTURES INTRADAY

HUL FUTURE BUY CALL 3TG

WOCKPHARMA FUTURE  BUY CALL 2TG

RANBAXY FUTURE BUY CALL 2 TG

ITC SELL CALL SL TRIGRRED

PREMIUM FUTURES

TATA MOTORS FUTURE BUY CALL 1TG

NIFTY FUTURES:

OPTION:

RANBAXY BUY 680 CALL 3 TG

TATA MOTORS BUY 360 CALL SL TRIGRRED

OPTION PREMIUM:

SUNPHARMA BUY 900 CALL 1TG

STOCK CASH:

STOCK CASH INTRADAY:

AIAENG BUY CALL 3 TG

GUJARAT STATE FERTILIZERS BUY CALL COST EXIT

STOCK CASH PREMIUM:

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INDIAN EQUITY MARKET WRAPUP- 22 JAN 2015

INDIAN BENCHMARKS surge to record high for 3rd straight day

INDIAN EQUITY BENCHMARKS hit record highs for the third straight day, led by blue-chips, tracking firm trends across the region and on optimism that the government will continue with the reform agenda. The S&P BSE Sensex and CNX Nifty ended 0.41% and 0.37% higher each.
                                                                                                                                     
·Dish TV India Q3 net loss at Rs3 cr (YoY)

·Supreme Industries posts decent volume growth for Q2FY15

·Muthoot Finance Q3 net profit slips 20% (YoY)

The crucial resistance for Nifty is now seen at 8795 and above this 8850. Support for the immediate term is now placed at 8705 and next support will be 8650.

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TOP CORPORATE NEWS - 22 JAN 2015

·Dish TV India Q3 net loss at Rs3 cr (YoY)
Dish TV India has announced results for the quarter ended December 31, 2014 (YoY):The Company has posted a net loss of Rs2.87 crore Vs net loss of Rs38.25 crore (YoY).Total Income is Rs729.25 crore Vs Rs622.53 crore (YoY).The life of the Consumer Premises Equipment (CPE) for the purposes of depreciation has been estimated by the management as five years, which as per the management, best represents the period of expected use, and is different from the life indicated by the Schedule II of the Companies Act, 2013. Upto March 31, 2012, in certain cases, the onetime advance contribution towards the CPEs in the form of rental was being recognized over a period of three years from the activation date.
·Indian power sector set for investment of $250 billion says Minister
Power and Coal Minister, Mr Goyal, reiterated that Indian power sector is set for an estimated investment of $250 billion (Rs15 trillion), that includes $100 billion for renewable, $50 billion in T&D, $60-70 billion for power generation. Further, $5-6 billion is set for energy efficiency projects and $20-25 billion investments for associated infrastructure required in replacement of old and out-dated equipments. Positive read through.
·Arvind looks to foray Rs30,000 crore Indian footwear market
Riding high on e-commerce wave, Arvind Ltd is looking to go beyond its core businesses and is readying to foray into the Rs 30,000 crore Indian footwear market in a big way. The company will launch its own footwear brand in coming days.
·Road projects worth Rs50,000 crore to begin in UP by December end
Road projects worth Rs50,000 crore to begin in UP by December end -  Positive for road developers (IRB Infrastructure, IL&FS Transportation, Ashoka Buildcon, Sadbhav Engineering, Gayatri Projects)
Mr. Nitin Gadkari has said in the press conference that road projects worth Rs50,000 crore would be started in Uttar Pradesh by December end. The government might increase the amount by Rs10,000 crore to Rs15,000 crore.
·Govt hardens position in $1 billion dispute against RIL
Government hardened it's position in $1 billion dispute against RIL; negative read through. As per media reports, the government has hardened its position in a $1 billion dispute over the Panna Mukta and Tapti oil and gas fields, alleging the contractors ( Reliance Industries and BG) presented arbitrators with financial statements different from audited accounts, and indulged in heavy exaggeration of tax payments which reduces the state's share of profit. It has also questioned the neutrality of arbitrators in the dispute between the oil ministry and Reliance.
·Sesa Sterlite updates on BALCO's 1200 MW power plant
Sesa Sterlite announced that the Company's subsidiary Bharat Aluminium Company ( BALCO) has received approval of Consent to Operate ( CTO) from the Chhattisgarh State Pollution Control Board and other clearances for starting its Korba's based 1200 MW Power Plant.
·RIL prices $ 1 bn 4.125% Senior Unsecured Notes due 2025
Reliance Industries announced that it has priced a Rule 144A/ Regulation S offering of $ 1 billion 4.125% Senior Unsecured Notes due 2025. The notes have been priced at 240 basis points over the 10-year US Treasury Note, at a price of 98.998 to yield 4.249%. The notes will be denominated in US dollars and will bear fixed interest of 4.125% p.a., with interest payable semi-annually in arrears and shall rank pari passu with all other unsecured and unsubordinated obligations of the company.The funds will be utilized for the company's ongoing capital expenditure.
·Muthoot Finance Q3 net profit slips 20% (YoY)
Muthoot Finance has announced the following results for the quarter ended December 31, 2014 (YoY):Net profit slips by 20.49% to Rs154.44 crore Vs Rs194.25 crore (YoY).Total Income decreased by 10.95% to Rs1069.25 crore Vs Rs1200.75 crore (YoY).

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SENSEX, NIFTY VOLATILE; RIL FALLS FURTHER, ITC MOST ACTIVE

The market continued to consolidate with a positive bias in afternoon trade Sensex rose 13.42 points to 28902.28 and the Nifty advanced 1.45 points to 8730.95. Declining shares outnumbered advancing ones by a ratio of 1538 to 1267 on the BSE .
Reliance Industries and NTPC topped the selling list, falling 2.7 percent each. HDFC, SBI, ITC, ICICI Bank, Hero Motocorp and Maruti were down 0.4-1.5 percent. However, Infosys, Tata Motors, Sun Pharma, Axis Bank, ONGC and Cipla gained 1-3 percent. 

ITC was the most active stock on NSE followed by Infosys, Sun Pharma, Reliance Industries and SBI. Suzlon Energy is going to reduce its debt by selling its German arm, Senvion to US-based PE Centerbridge Partners for 1 billion euros in an all cash deal.

The agri segment witnessed 11% revenue dip with lower soya exports as US witnessed a robust crop. Paper business revenues declined 5% impacted by slowdown in cigarettes & FMCG industries
The rupee traded flat today at 61.64 against a close of 61.63 yesterday, trimming its early gains on mild bouts of dollar demand by importers.

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INDIAN EQUITY MARKET OUTLOOK - 22 JAN 2015

INDIAN BENCHMARKS are likely to open on a positive note as the global cues look slightly supportive with SGX Nifty trading 33.50 points higher.
Results on January 22, 2015
Biocon, Supreme Industries, Prestige Estates, Polaris Consulting & Services, Dish TV, Muthoot Finance, Cairn India.                               
FURTHER,  RIL hits overseas debt market with a $1 billion issue.
CMS wins SBI deal worth Rs255 cr to deploy 2,300 cash recyclers.
TCS to extend its research scholarship programme for five years.
Trend in FII flows: The FIIs were net buyers of Rs 2065.49 cr in the cash segment on Wednesday while the DIIs were net sellers of Rs. -1350.02 cr, as per the provisional figures released by the NSE.

 

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INDIAN EQUITY MARKET WRAP UP-21 JAN 2015

INDIAN BENCHMARKS cracks a century: Nifty rests above 8700

INDIAN EQUITY BENCHMARKS edged higher, hitting a record high for the second consecutive day and gaining for the fifth straight session, as blue-chips rose on hopes of additional monetary policy easing, while strong regional markets also helped. The S&P BSE Sensex and CNX Nifty ended 0.36% and 0.39% higher each.
·FM Jaitley to present FY16 budget on February 28
·ITC Q3: Big Miss on Top line
·Zee Entertainment Q3 results beats estimate
·Mcleod Russel Q3 net profit down 35% (YoY)
The crucial resistance for Nifty is now seen at 8765 and above this 8795. Support for the immediate term is now placed at 8695 and next support will be 8650.

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