CORPORATE NEWS 21-DEC-2018

Government set to pump Rs2,345cr into Air India
The Government has sought Parliamentary approval to infuse Rs2, 300cr into Air India after a failed bid to sell off the airline in May. The Rs2, 300cr is an addition to the Rs27, 000cr already infused into the airline operator over a span of a decade. The cash-strapped airline has been running on taxpayer bailouts and has not made money for more than 10 years.  Air India was set to be sold along with its debt of $5bn. However, the company found no takers so the Centre ambitious plans of privatizing the national airline came to a halt. Hence the Modi government took a decision to turn around the airline.

Sun Pharma secures USFDA approval for Elepsia

Sun Pharma said that its epilepsy drug Epilepsia XR has been approved by the USFDA. This is a New Drug Approval. EPILEPSIA is a novel formulation of Levetiracetam 1000mg and 1500mg and is indicated for adjunctive therapy in the treatment of partial onset seizures in patients 12 years of age. The drug is developed by Sun Pharma Advanced Research Company (SPARC). Sun Pharma has in-licensed this drug from SPARC in July 2016. Epilepsia XR had secured a USFDA approval in March 2015, however, due to compliance issues at Halol, Sun Pharma received a complete response letter (CRL) in September 2015. With the Halol clearance received in June 2018, this drug was expected to get a USFDA approval soon.

Aurobindo Pharma gets USFDA approval for Potassium Chloride ER tablets

Aurobindo Pharma has received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Potassium Chloride extended-release tablets, 8 mEq (600 mg) and 10 mEq (750 mg).
Potassium Chloride Extended-Release tablets, a generic version of Upsher-Smith  Klor-Con Extended-Release tablets, will be launched in January 2019. The approved product has an estimated market size of ~$60mn for the twelve months ending October 2018, according to CQ VIA.

Indiabulls Real Estate sells a stake in 2 projects in Gurugram

Indiabulls Real Estate shares were up 1% in early morning trade on Friday as the company announced in a BSE press release that it has signed a deal with subsidiaries owned by The Blackstone Group L.P., a globally renowned real estate private equity investor. The deal was signed so that IndiaBulls Real Estate could divest up to 50% stake in two office assets in Udyog Vihar, Gurugram, aggregating 784,000 sq.ft. Leasable office space.

Bosch announces the suspension of manufacturing operations at Bidadi plant for two days

Leading technology and auto ancillary company, Bosch Limited (Bosch), part of the Robert Bosch Group, announced that it was suspending manufacturing operations at its Bidadi (Karnataka) plant for two days i.e. December 28 and 29, 2018. The move is aimed at adjusting production with market demand. The company mentioned in its release to stock exchanges that the suspension was due to the fact that volumes at the plant had reduced due to a reduction in customers requirement. It also mentioned that there was no financial impact on account of the proposed suspension of operations. Bosch has a total of 8 manufacturing plants in India.

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MARKET WRAP UP 12-DEC-2018

Closing Bell: Bulls take charge on D-Street as Sensex ends 629 pts higher; Nifty above 10,700.

Bulls took charge right from the word go and consistently traded in the green. But intense buying in the last hour helped the market end on an even stronger note. The Nifty, not only managed to clock 10,700, but also closed above this mark.  Buying was visible across all sectors, with maximum gains seen among automobiles, metals, banks, infrastructure and consumption names. In the broader market, the Nifty Midcap index ended 3 percent higher.  At the close of market hours, the Sensex closed up 629.06 points or 1.79% at 35779.07, while the Nifty rose 188.40 points or 1.79% at 10737.60. The market breadth was positive as 1,882 shares advanced, against a decline of 645 shares, while 139 shares were unchanged. Hero MotoCorp, Bharti Airtel, and Indiabulls Housing gained the most, while Dr Reddy  Laboratories, and Bharti Infratel lost the most. 

HEADLINES OF THE DAY

Ramco wins order: Ramco Systems has secured deal from a leading adversary air (ADAIR) services provider to the US defence forces, to manage its fleet of fighter aircraft used for highly complex training fleet and defence contract requirements. Rating Agency CARE Ratings has reaffirmed CARE A1+ rating on Shree Cements' Commercial Papers of Rs 300 crore. Torrent Power has ought a nod from Gujarat regulator to hike tariffs so that it could offset under-recoveries. The company said that the tariff hike will help it recover Rs 275 crore. ACC Board Grants Nod to set up a greenfield integrated cement plan at Ametha. Zydus Wellness to acquire Heinz India: Shares of Zydus Wellness gained 2 percent on Wednesday after company received CCI approval for acquisition of businesses of Heinz.

The crucial resistance for Nifty spot is now seen at 10880 and above this 10960 Support for the immediate term is now placed at 10620 next support will be 10500.

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CORPORATE NEWS 03-DEC-2018

HUL's food & refreshment biz to get a 'boost' as board approves GSK Consumer merger deal

The board of Hindustan Unilever (HUL) has approved the scheme of amalgamating the company and GlaxoSmithKline (GSK) Consumer Healthcare Ltd (GSKCH), subject to further approvals.

The transaction is an all-equity merger with 4.39 shares of HUL being allotted for every share in GSKCH, implying a total equity value of Rs31, 700cr for 100% of the latter. This merger includes the totality of operations within GSKCH, including the selling contract to distribute GSKCH’s OTC and Oral Health products (Crocin, Eno, and Sensodyne) in India.

L&T Construction bags orders worth Rs1,127cr;

Larsen & Toubro (L&T) said its construction arm has won orders worth Rs1,127cr across two of its business segments.

In the metallurgical and material handling business, the company bagged contracts worth Rs755cr, the company said in the filing.

An order has been secured from Hindustan Zinc Ltd for the construction of a 1.5 MTPA Lead Zinc Beneficiation Plant at R D Mines, Rajasthan, thereby continuing to build customer confidence and leadership position in this segment, the company added.

RCom spurts 15% after subsidiary clears payment of corporate guarantee to DoT

Shares of Reliance Communications were trading 15% higher on Monday after a media report said that the company’s arm Reliance Realty has a cleared Rs1, 400cr corporate guarantee to the Department of Telecommunications (DoT) in line with the Supreme Court (SC) directive.

The completion of the payment paves the way for Reliance Communication’s pending spectrum sales to Mukesh Ambani’s Reliance Jio, an ET report said. On Friday, the SC has asked the DoT to clear the company's spectrum sale to Reliance Jio Infocomm on a corporate guarantee of Rs1, 400cr.

Ashok Leyland stock tanks nearly 5% as November volumes disappoint

Ashok Leyland Limited (ALL) reported 9% yoy volume decline (13% mom volume decline) for the month of November 2018. Total sales were 13,121 units in November 2018 vs. 14,457 units in November 2017 and 15,149 units in October 2018. The volume number missed BloombergQuint poll estimate of 14,000 units for October 2018. The volume decline came on a strong base of November 2017 (volume growth of 51% yoy, 12% mom). The stock is trading nearly 5% lower at the lowest point of the day so far.

Sun Pharma dives 7% on report of likely re-opening of insider trading case

Shares of Sun Pharma plummeted 7% in Monday’s morning session after a media report said that the Securities Exchange Board of India (Sebi) is likely to re-open an insider trading case against the company.

As per a PTI report, the update comes after the market regulator received an application that claims various irregularities by the company, its promoter Dilip Shanghvi, and others. The managing director of the company Dilip Shanghvi and nine other entities, in August 2017, settled an insider trading probe on payment of Rs18 lakh towards settlement charges.

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CS OPENING BELL 20-NOV-2018

NIFTY SPOT DOWN 30 @10730

SENSEX SPOT DOWN 79 @35693

BANK NIFTY FUTURES DOWN 92 @26221

HAPPY TRADING!

WWW.CAPITALSTARS.COM+919977499927

CS NIFTY FUTURES (NOV ) OVERVIEW

TREND BEARISH

RES2: 10880

RES 1:10800

SUP1:10550

SUP2:10300 

CS BANK NIFTY FUTURES (NOV ) OVERVIEW

TREND BULLISH

RES 2: 26800

RES 1: 26450

SUP1: 26100

SUP2: 25800 

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CORPORATE NEWS 16-Nov-2018

M&M to hike price of Marazzo from January 1, 2019

Mahindra & Mahindra Ltd. (M&M), part of the $20.7 bn Mahindra Group, announced that effective January 1, 2019, it will increase the price of the Marazzo by Rs30,000-40,000.

According to Veejay Ram Nakra, Chief of Sales and Marketing – Automotive Division, Mahindra & Mahindra, “As mentioned at the launch, the price of Marazzo was an introductory one. Effective January 1, 2019, we will be taking a price hike on the Marazzo, after a reasonable period of 4 months from its launch.”

Telecom stocks surge; Vodafone Idea jumps 14%

The BSE Telecom index surged 4% in today’s session. Bharti Airtel has contributed a 30-point gain in the telecom sector. Vodafone Idea is the highest contributor adding 9 points followed by Infratel contributing 3 points.

The Vodafone Idea (VIL) stock surged 14% on the BSE. The telecom company is looking for sale of its fibre assets, combined with the Rs25, 000cr equity fund raising, to improve its balance sheet and ensuring adequate capex to defend its position in the cut-throat competition against Reliance Jio and Bharti Airtel.

Yes Bank drops 6% after OP Bhatt steps down from CEO search panel

Shares of Yes Bank declined nearly 6% after the bank said that OP Bhatt has tendered his resignation from his duties as an external expert of the search and selection committee for the new CEO.

Former SBI chairman, OP Bhatt, has resigned from the panel set up by the private sector bank to scout for MD and CEO Rana Kapoor’s successor. Bhatt, the external expert on the Search and Selection Committee (S&SC), has resigned with "immediate effect" as "there may be a potential conflict of interest," the bank said in the BSE filing.

Biocon/Mylan launch Semglee in UK

Biocon’s commercial partner Mylan has launched Semglee, an approved biosimilar of insulin glargine in the UK. Insulin Glargine is sold by its innovator Sanofi under the brand Lantus; Glagrine is a long-acting basal insulin indicated for the treatment of diabetes.

Biocon/Mylan will compete with Lilly and Boehringer, who launched their Lantus biosimilar as Abasaglar in UK in 2015.

Biocon and Mylan received an EMA approval for Insulin Glargine in March 2018. It also has approval for this biosimilar in Australia. Semglee has been submitted in the US and Canada for regulatory approval, while company expects to submit this drug for approval in several other key emerging markets soon.

Glenmark gets final approval for gAubagio, eligible for shares 180 day exclusivity

Glenmark Pharma has received final USFDA approval for Teriflunomide tablets, 7mg/14mg . This is a generic version of Aubagio tablets, 7mg/14mg of Sanofi-Aventis.

Company has said that Glenmark was one of the first ANDA filers on Aubagio tablets with a paragraph IV certification, and hence, it is eligible to get shared 180-day generic drug exclusivity for this drug.

As per IQVIATM sales data, Aubagio tablets had annual sales of ~$1.6bn for the 12 month period ending September 2018.

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CORPORATE NEWS 29-OCT-2018

Tata Power gains ~13% on Q2FY19 results, favorable SC judgment

Shares of Tata Power were trading 13% up in the afternoon session on a rally caused by a favorable judgment of the Supreme Court (SC) on the Power Purchase Agreements (PPA) as well as upbeat Q2FY19 numbers.

The company reported a favorable result for Q2FY19 with EBITDA and net profit coming in higher than consensus estimates (after adjusting for exceptional items). Revenue grew by 6.7% yoy to Rs7,333cr (expectation Rs7,626cr). EBITDA stood at Rs1,726cr, down 4.5% yoy against estimates of Rs1,590cr. EBIDTA margin fell by 275bps yoy to 23.5%. Net profit stood at Rs426cr against an expectation of Rs386cr.

ICICI Bank zooms ~11.5% as asset quality improves in Q2

Shares of ICICI Bank zoomed nearly 11.5% on the NSE and are among the top Nifty 50 gainers in today’s session. NII stood at Rs6, 417.5cr as against Rs5, 709.1cr, up 12.4% yoy. The beat on estimates was mainly on the back of low provisions and better NII growth.

The bank's Q2FY19 standalone revenue came in at Rs18, 262cr, reflecting a decline of 2.7% yoy.

The bank has reported a net profit of Rs909cr in Q2FY19, (which is above consensus estimates of Rs730cr) vs. Rs2, 058.19cr yoy.

Non-interest income, excluding treasury income was Rs3, 191cr in Q2FY19 compared to Rs2, 993cr yoy.

Natco Pharma to consider share buyback

Natco Pharma has said that it will consider the buyback of shares on November 05, 2018, when it releases its Q2FY19 numbers. The shares of the company have fallen by ~30% over the past 12 months. Since March 2018, its shares have been trading in a range-bound manner.

The company has seen record profits in FY18 due to the launch of generic Copaxone; further, gTamiflu has boosted profitability and has strengthened its balance sheet.

Generic of Copaxone will still be driving profits in FY19E and H1FY20E; however, competition is expected in H2FY20E, which may erode profitability. This has put the stock under pressure as investors do not see earning visibility beyond FY20E.

Dr. Lal PathLabs receives NCLT-New Delhi approval to acquire Delta Ria

Dr. Lal PathLabs has received an approval from the National Company Law Tribunal's (NCLT) New Delhi bench for the merger of Delta Ria and Pathology with self. Despite the development, the company’s shares dropped 2% in the late morning trade on Monday.

However, the company is yet to receive an approval from NCLT-Ahmedabad, it said in a press note to exchanges after market hours on Friday.

USFDA issues two observations at Granules’ Virginia facility

Granules India’s wholly-owned US subsidiary Granules Pharmaceuticals Inc., has completed USFDA inspection from 22-26 October, 2018. At the end of the inspection, US regulator has issued two form 483 observations. This was a pre-approval inspection, intended for the ANDAs filed by Granules Pharmaceuticals, Inc.  It is however not clear for which ANDA this inspection was performed.

This facility is located at Chantilly, Virginia, USA, and is involved in development and manufacturing of Finished Dosages. The company has said that it will respond to the observations within this week.

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CORPORATE NEWS 15-OCt-2018

Dr. Reddy’s gets final approval for gAggrenox

Dr. Reddy’s Lab has received final USFDA approval for Aspirin and Dipyridamole Extended-Release tablet. This is a generic copy of Boehringer Ingelheim Pharma’s drug Aggrenox, which is used to lower the risk of stroke in people who have had a mini-stroke or stroke due to a blood clot.

Teva had launched the generic of this drug in July 2015 and there are seven more generic companies who have final USFDA approval to make copy of this drug (Sandoz, Barr, Par, Cadila, Amneal, ANI pharma and Sun Pharma). Dr. Reddy’s will become ninth generic manufacture.

IndusInd Bank drops after Q2FY19 earnings

IndusInd Bank stock dropped 2% after announcement of Q2FY19 numbers. The net profit which has improved by 4.5% yoy to Rs920cr against Rs880.1cr yoy was below consensus estimates. The higher provisioning of Rs275cr made on certain infra assets related to IL&FS led to lower profits.

NII has improved by 21% yoy to Rs2,203.3cr against Rs1,821cr in the corresponding quarter previous year.

GNPA for Q2FY19 stood at 1.09% against 1.15% qoq, which has declined by 6bps qoq.

HUL slips 3% despite PAT rising 19.5% in Q2FY19

Shares of Hindustan Unilever (HUL) slipped 3% during afternoon session despite of reporting strong numbers for the second quarter (Q2) of FY19.

The company has reported a PAT growth of 19.5% yoy to Rs1, 525cr against an estimate Rs1, 440cr.

Revenue growth of 11.1% yoy to Rs9, 234cr was driven by a 10% underlying volume growth.

EBITDA jumped 20% yoy to Rs2, 019cr, in-line with the estimate. The EBITDA margin expanded 162bps yoy to 21.9%.

Oil rises as Saudi Arabia vows to hit back against any sanctions

Oil gained above $72 a barrel as top OPEC producer Saudi Arabia threatened to retaliate against any punitive measures over the disappearance of journalist and government critic Jamal Khashoggi.

Futures in New York climbed as much as 1.9% after posting the biggest weekly loss since May. The Saudi foreign ministry said the kingdom “will respond to any measure against it with an even stronger measure,” which could be read as a veiled threat to use its energy riches as a political tool. The warning came after President Donald Trump pledged “severe punishment” should Saudi Arabia be linked to Khashoggi’s disappearance.

Glenmark Pharma gets USFDA nod for Hydrocortisone Valerate cream

Glenmark Pharmaceuticals Inc., USA (Glenmark) has been granted final approval by the United States Food & Drug Administration (USFDA) for Hydrocortisone Valerate Cream USP, 0.2%, a generic version of Westcort Cream, 0.2%, of Sun Pharmaceutical Industries Inc.

According to IQVIA sales data for the 12-month period ending August 2018, the Westcort Cream, 0.2% market achieved annual sales of approximately $17mn.

Glenmark’s current portfolio consists of 139 products authorized for distribution in the US market place and 60 ANDA’s pending for approval with the USFDA, the company said.

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HIGHLIGHTS OF INDIAN GENERAL BUDGET 2015-16

India's gross domestic product in the fiscal year 2015/16 is expected to grow between 8 and 8.5 per cent, Finance Minister Arun Jaitley said on Saturday when presenting the government's first full-year budget.
Here are the highlights of Jaitley's budget for the fiscal year that begins on April 1.
* Fiscal deficit seen at 3.9 per cent of GDP in 2015/16
* Will meet the challenging fiscal target of 4.1 per cent of GDP
* Remain committed to meeting medium term fiscal deficit target of 3 per cent of GDP
* Current account deficit below 1.3 per cent of GDP
* GDP growth seen at between 8 per cent and 8.5 per cent year on year
* Aiming double digit growth rate, achievable soon
* Expects consumer inflation to remain close to 5 per cent by March, opening room for more monetary policy easing
* Expects to implement goods and services tax by April 2016
* Will need to build additional 100,000 km of road
* Have to keep fiscal discipline in mind despite need for higher investment
INFLATION
* Expects consumer inflation to remain close to 5 percent by March, opening room for more monetary policy easing
POLICY REFORMS
Allocates 346.99 billion rupees for rural employment guarantee scheme in 2015/16 * To bring a new bankruptcy code in 2015/16
TAXATION
* Expects to implement goods and services tax by April 2016
INFRASTRUCTURE
* Will need to build additional 100,000 km of road
* Investment in infrastructure will go up by Rs. 70,000 crore in 2015/16 over last year
* Plans to set up national investment infrastructure fund
* Proposes tax-free infrastructure bonds for projects in roads, rail and irrigation projects
* Proposes 5 ultra mega power projects for 4,000 MW each
* Second unit of Kudankulam nuclear power station to be commissioned in 2015/16
SUBSIDIES
* We are committed to subsidy rationalisation based on cutting leakages
UNIVERSAL SOCIAL SECURITY SCHEME
* Arun Jaitley has proposed the creation of a universal social security scheme for all Indians
EXPENDITURE
* If revenue improves, hope to raise budgeted allocations for rural job scheme by Rs. 5,000 crore in 2015/16

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Sensex surges 197 points, Nifty up 50 points on hopes of growth-oriented Budget

The S&P BSE Sensex was trading higher by over 190 points on continued capital inflows and increased buying by retail investors ahead of Budget 2015-16 slated to be announced later in the day.
Bulls are hoping "Budget 2015" to be a game changer for the economy and market. All eyes are on the fiscal deficit number. Finance Minister "Arun Jaitley" is expected to remain committed to the path of fiscal consolidation.
At 10.45 am, the S&P BSE Sensex was trading higher by 197.03 points or 0.67 per cent at 29,417.15 and the CNX Nifty was trading up by 49.9 points or 0.56 per cent at 8,894.50.​

Top BSE gainers were Tata Steel, BHEL, HDFC, L&T and GAIL, while the major losers were Hero MotoCorp, Cipla, Wipro, Coal India and Hindalco.
Bank of Baroda, Tata Steel, BHEL, DLF and GAIL were the top five Nifty gainers, while the major losers were HCL Tech, Lupin, BHEL, Hero MotoCorp and Cipla.
Barring auto and healthcare, all other BSE sectoral indices were trading in the green. Among them, realty index was up 2.53 per cent, followed by capital goods 2.01 per cent, power 1.24 per cent and banking 1.22 per cent, while auto index was down 0.11 per cent and healthcare 0.09 per cent.
The Nifty opened 58 points up at 8,903, while the Sensex opened 191 points up at 29,411.
Oil and gas shares are gaining. ONGC is up 1.2%, RIL and GAIL are up 0.4%. 
Metal stocks are trading mixed. While Sesa Sterlite and Tata Steel have gained 1.5% and 1% each, Hindalco is down 

Capital Goods stocks are trading firm. BHEL and L&T have gained around 3% and 2% each. Defence Ministry shortlisted a consortium of Tata Power-Strategic Electronics Division (SED) and L&T for the battlefield management project.  Tata Power is up 1.4%.
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GENERAL INDIAN BUDGET 2015 PRESENTED BY MR. ARUN JAITLEY

This is to inform you that 28-02-2015 is very important day for us because Today is General Budget Presented by Indian Financial Minister "Mr. Arun Jaitley".
It shall be first full year budget presented by the current Government.
The Vibrant new government of Honorable Prime Minister "Mr. Narendra Damodardas Modi" has a lot of expectations riding on it and this budget is expected to be a road map for the economy and what segments would be growth drivers the futures.
Mr. Jaitely has a lot tailwinds that seem to be helping him this year

Reduction in Subsidy bill to the tune of Rs.30,000/- CRS in FY-16 due to fall in Crude prices.Revenue Increase in the tune of Rs.60,000/- CRS in FY-16 due to 4 Consecutive hikes in the Exice Duty.We believe with the fall in Petrol and Diesel Prices, India as a country is saving Rs.48,000/- CRS (0.4% of GDP) which should come back as incremental investment and consumption into the system.

• Fall in Crude Prices should make India a BOP Surplus Economy.
• Falling Interest Rate Regime.
• Investing Private Capital.
• Investments Which will help boost the GDP growth Rate.

The Trade off the face to either focus on :

• Following the fiscal consolidation road map by achieving 3.6% deficit, or work with a 4.1% fiscal deficit number and allocate the extra money to various planned expenditures.

Budget Expectations :

• We Expect the F.M. to take the more aggressive stance and take measures to improve growth
• A 4.1% deficit target to free $20-25 billion for additional plan expenditure.The policy stance highlighted from the allocations to various plan expenditures to act as a catalyst in increasing investment and growth cycle.

Sectors to Outperform in 2015 :

•  Banking and financial service companies
•  Manufactured exports segments such as textiles and auto ancillaries
•   Cyclical and interest sensitive stocks

Infrastructure : EPC, Defense, Renewables, Ports (Infrastructure should outperform now with renewed government focus and investments, despite the recent business problems and struggling balance sheets).
Overall Corporate earnings are expected to grow by around 15-20%. However , mid cap earnings growth are will outperform the broader markets, Which is why despite the current premiums; they are expected to outperform growing forward.

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