Equity Research Report Ways2Capital 31 july 2017

Last week the Indian Benchmark Index Nifty made a new record high of 9982 on the last trading day and closed at 9966

Last week the Indian Benchmark Index Nifty made a new record high of 9982 on the last trading day and closed at 9966. The Domestic Institutional Investors continued buying as the quarterly numbers by most of the Companies were impressive. The Benchmark Index Nifty has shown 5 digit figure in last week. Nifty made a high of 10011 and closed at 9965 on Tuesday trading session. Investors remained cautious ahead of FED two days policy Meeting Outcome. Although Fed keep rate Unchanged which move the market in bullish trend, Market remained highly volatile ahead of F&O Expiry and Profit booking did’nt rule out at point of time, but overall, market traded bullish and as of now any downfall would be an opportunity for traders to go long in the market. Breaching 10040 would force Nifty to see 10100-10246 levels ahead. Nifty has made a all-time high of 10026.The index opened at 9993 and closed at 10025 after making a low of 9944. However the Index is not able to sustain it’s crucial 10040 level which will decide the bullish trend of Nifty for upcoming week. Nifty Closed The July Expiry Above 10000 levels & Up By Almost 5% On the back of Q1 Earning Optimism, Smooth GST Roll Out, Good Monsoon, RBI Rate Cut Hopes, Forced P-Note FNO Short Covering & Supportive Global Cues it may move the market towards bull side. The Significance Support for Nifty is 9967-9886 and Strong Resistance for index is 10100-10168 levels for upcoming week.
BANK NIFTY : - Bank Nifty also made a record high of 24461 last day and closed at 24421.HDFC Bank closed at 1735.10, up by 1.88% from its previous day’s close after the announcement of its June quarter result. Bank Nifty achieved the psychological 25000 mark in last week ’s trading session and market drifted down due to profit booking during the week. Again Bank Nifty closed near 5 day’s moving average which is presently at 24740 levels. Yes bank gained 6.44% after announcing its quarterly results.Indus Bank by 2.43%, ICICI Bank by 1.91% were among the top movers in the Banking Index in last weeks trading sessions. Indian banks are most at risk in South and South-East Asia. We agree that many banks in India remain undercapitalised and continue to lack sufficient loan-loss provisions. Moreover, the government has appeared reluctant to increase capital injections into the PSU banks, despite the limited ability of these to access equity markets for the much-needed capital," the credit rating agency Moody’s said. Time and Price action Suggest the Bank Nifty need to Sustain the 24900 crucial level for further up move towards 25120-25240 levels. On the Flip side Sustaining below 24900 levels may drag the index towards 24780-24660 levels I near term



NSE - WEEKLY NEWS LETTERS
? TOP NEWS OF THE WEEK

FDI up 23% at $10 billion during April-May: Nirmala Sitharaman - Foreign direct investment inflows into the country increased 23 per cent in the first two months of the current fiscal from a year ago, commerce and industry minister Nirmala Sitharaman said in a written reply to the Lok Sabha on Monday. The cumulative foreign direct investment in April-May was $10.02 billion, or about Rs 64,524 crore, compared with $8.12 billion, or about Rs. 52,289 crore, a year earlier. The minister said the government has put in place an investor-friendly policy for FDI and except for a small negative list most sectors are open for 100 per cent FDI. "The policy on FDI is reviewed on an ongoing basis to ensure that India remains attractive and investor friendly destination… The government has taken a number of FDI policy reforms which are not only bold but historic," Sitharaman said. In 2016-17, the foreign fund inflows aggregated at $60.08 billion, or about Rs 3,86,885 crore, the minister told Parliament.

India Inc's overseas investment plunges 46% to $1.12 billion - Direct investments by Indian firms abroad plunged by 46 per cent to USD 1.12 billion in June this year, according to the RBI data. They had invested USD 2.07 billion in their overseas ventures in June last year. In previous month, May 2017, the investment figure stood at USD 1.26 billion. The investments made last month were a mix of issuance of guarantees (USD 370.11 million), loans (178.80 million) and equity (USD 568.34 million). The prominent investors overseas in June included Indian Oil investing a combined USD 284.28 million in a joint venture and fully owned subsidiary in Mayanmar and Singapore respectively.

Expect Indian growth to pick up in 2017, 2018: IMF - With global economic recovery remaining on track on the back of better performing emerging economies, growth in India is expected to pick up further in 2017 and 2018, the IMF has said. Growth in India is forecast to pick up further in 2017 and 2018, in line with the April 2017 forecast," the International Monetary Fund said in its latest World Economic Outlook report on Monday. "Pick-up in global growth anticipated in the April World Economic Outlook remains on track," the IMF report said. "While activity slowed following the currency exchange initiative, growth for 2016 -- at 7.1 per cent -- was higher than anticipated due to strong government spending and data revisions that show stronger momentum in the first part of the year," it said, referring to India's demonetisation measure as well as to the base year revisions in GDP calculations made by the Central Statistics Office. "Inflation in advanced economies remains subdued and generally below targets; it has also been declining in several emerging economies such as Brazil, India and Russia," it added.

GDP at the low end of plan panel projections during 2012-14: Niti Aayog - India has performed worse than the "policy logjam" scenario in the first two years of the 12th Five-Year Plan (2012-17) based on the old GDP series, on the basis of which the 12th Five-Year projections were made, says Niti Aayog in its rather late appraisal of the Plan that came to an end on March 31, 2017. However, as per the revised GDP series, the economic growth in the country stood at 5.6 per cent, 6.6 per cent, 7.2 per cent and 7.6 per cent, respectively, in the first four years of the 12th Plan, it said. Under the new methodology, the base year has been changed from 2004-05 to 2011-12 and more reliable sources of data has been used for the corporate sector, financial corporations and local bodies and autonomous institutions. The GDP is now measured at market prices (broadly equivalent to consumer prices) instead of factor costs (broadly equivalent to producer prices) in conformity with international standards. "When measured at factor cost, the real GDP growth under the old methodology turns out to be 4.5 per cent in 2012-13 and 4.7 per cent in 2013-14. Because the 12th Plan projections were based on the old series, it may be reasonably concluded that at least in 2012-13 and 2013-14, India has performed worse than the 'policy logjam' scenario," the Aayog has said in the appraisal document.

RBI may decrease repo rate by 25 bps: ICRA - RBI’s Monetary Policy Committee (MPC) is likely to decrease the repo rate by 25 basis points (bps) at its upcoming policy review on August 2017, according to ICRA. There is a less likelihood of further rate cuts in the second half of FY18, said the agency. Naresh Takkar, Managing Director and Group CEO, ICRA said, “With the CPI inflation easing below the 2% floor of the inflation target band in June 2017, a reasonably favourable progression of the monsoon and kharif sowing so far, and limited evidence of a knee-jerk rise in prices following the imposition of the goods and services tax, there is a high likelihood that the MPC would vote to reduce the repo rate by 25 bps in their upcoming meeting.” CPI inflation in India stood at 1.54% in June 2017 against 2.18% in May 2017 and below the market expectations which was at around 1.7%.
The drop in inflation was largely followed by a decrease in vegetable prices (-16.5% yoy) and pulses (-21.9% yoy), excluding these two items, the inflation stood at 3.9%. Along with this, food price index also dropped to 2.1% on YOY in June 2017 after falling in 1.1% in the last month.

133 companies owe over Rs 3,39,704 crore to exchequer: Arun Jaitley - A total of 133 companies with outstanding dues of Rs 500 crore or more under direct and indirect taxes owed over Rs 3,39,704 crore approximately to the exchequer as on March 31, 2017, the government said today. In a written reply to the Rajya Sabha, Finance Minister Arun Jaitley said, "The number of companies with outstanding corporate tax dues of Rs 500 crore or more is 132 as on March 31, 2017, involving total dues of Rs 3,38,098 crore." Jaitley further said there is one case of service tax in which the amount due is Rs 1,606.26 crore (and an equal amount of penalty). The minister, however, added that out of the outstanding corporate dues, Rs 2,45,480 crore were not realisable. Elaborating, Jaitley said the outstanding corporate dues not realisable include demand covered by stay (Rs 1,20,604 crore), no asset or inadequate assets for recovery (Rs 84,469 crore) and company under liquidation (Rs 30,532 crore), among others. The higher value cases are monitored regularly and all possible steps are being taken for speedy recovery, he added. .


? TOP ECONOMY NEWS
RBI’s Monetary Policy Committee is likely to decrease the repo rate by 25 basis points at its upcoming policy review on August 2017, according to ICRA. There is a less likelihood of further rate cuts in the second half of FY18, said the agency.

The Ministry of Housing and Urban Affairs has asked state governments to form a real estate regulatory authority immediately. At the same time, the Ministry has also requested to assign the task of Appellate Tribunal to any existing Tribunal where such a system has not been put in place. As per the Real Estate Regulation Act , all existing and new projects must be registered with the regulator by July 31. The developers who fail to register under the new Act will attract a penalty of 10% of the project cost.

The Finance Minister Arun Jaitley on Monday introduced a bill in Lok Sabha to amend the Banking Regulation Act 1949. Once enacted into law, the Banking Regulation (Amendment) Bill 2017 is expected to replace the ordinance issued by the centre in May 2018. The measure allows the RBI to initiate insolvency resolution process on specific stressed assets.

The country’s foreign exchange reserves stood at USD 389.059 billion, rose by USD 2.681 billion, as on July 14, because of an increase in foreign currency assets , as per the Reserve Bank of India data. While in the previous week, the reserves had marginally dropped by USD 161.9 million to USD 386.377 billion. According to the RBI data, Foreign Currency Assets, increase by USD 2.677 billion to USD 364.908 billion.

Indian banks taking 12 of the country's largest defaulters to bankruptcy court under a central bank directive, will need to make additional provisioning of at least 180 billion rupees ($2.8 billion), India Ratings and Research said.

The government collected a total Rs 2,35,307.75 crore last fiscal by way of a host of cesses, including those of education, Swachh Bharat, Krishi Kalyan and other surcharges, Parliament was informed.



? TOP CORPORATE NEWS -
ITC Limited Q1FY18 standalone results for the quarter were largely in-line with street estimates. Revenue for the quarter came in 0.6% lower than the estimated figure of Rs. 13877 crore. EBITDA for the quarter came in 0.3% lower than the estimated figure of Rs. 3757 crore. And lastly, net profit for the quarter came in 0.9% lower than the estimated figure of Rs. 2583 crore.

ICICI Bank Limited Q1FY18 results came in mixed versus street estimates. NII for the quarter came in 2.9% below the street estimates of Rs.5758 crore. And, lastly net profit for the quarter came in 2.2 % higher than estimated figure of Rs. 2005 crore. NII for the quarter saw 8.4% yoy increase to Rs.5590 crore vs Rs.5159 crore in Q1FY17.This was largely due to marginal increase in interest earned by 1% to Rs.13459 crore in Q1FY18.

Oil and natural gas corporation Limited Q1FY18 standalone results for the quarter registered a miss versus consensus estimates. Revenue for the quarter came in 5 % lower than the estimated figure of Rs. 20087 crore. EBITDA for the quarter came in 27 % higher than the estimated figure of Rs. 9674 crore. And lastly, net profit for the quarter came in 11.5 % lower than the estimated figure of Rs. 4387.9 crore.

Idea Cellular's Q1FY18 consolidated results for the quarter registered a miss versus street estimates. Revenue for the quarter came in 1.4% higher than the estimated figure of Rs. 8050 crore. EBITDA for the quarter came in 3.6% lower than the estimated figure of Rs. 1945 crore. And lastly, net loss for the quarter came in at Rs. 815 crore against the estimated loss of Rs. 750 crore.

Glenmark pharmaceuticals Limited Q1FY18 consolidated results for the quarter registered a beat on street estimates. Revenue for the quarter came in 3.5 % higher than the estimated figure of Rs. 2284 crore. EBITDA for the quarter came in 41.8 % higher than the estimated figure of Rs. 462 crore.And lastly, net profit for the quarter came in 29.7 % higher than the estimated figure of Rs. 257 crore.

Dr. Reddy's laboratories Q1FY18 standalone results for the quarter registered a miss versus street estimates. Revenue for the quarter came in 4.1 % lower than the estimated figure of Rs. 3383 crore. EBITDA for the quarter came in 60.1 % lower than the estimated figure of Rs. 601 crore. And lastly, net profit for the quarter came in 79.1 % lower than the estimated figure of Rs. 282 crore. Dr. Reddy's laboratories standalone revenue for the quarter came in at Rs. 3248.9 crore, registering 2% yoy increase. This was aided by rise in global generics revenue by 3% yoy to Rs.2748 crore.

Maruti Suzuki India Limited Q1FY18 standalone results for the quarter came in mixed versus street estimates. Revenue for the quarter came in 13.3% higher than the estimated figure of Rs. 17449 crore. EBITDA for the quarter came in 6.5% lower than the estimated figure of Rs. 2494 crore. And lastly, net profit for the quarter came in 6.7% lower than the estimated figure of Rs. 1669 crore.


HCL Technologies reported consolidated results for the quarter registered a beat on street estimates in terms of operating profit and bottomline. Revenue for the quarter came in 0.34 % lower than the estimated figure of Rs. 12191 crores. EBITDA for the quarter came in 13.05 % higher than the estimated figure of Rs. 2383 crores. And lastly, net profit for the quarter came in 8.17 % higher than the estimated figure of Rs. 2043 crores. HCL Technologies’ consolidated revenue for the quarter came in at Rs. 12149 crores, registering 5.8% QoQ decline. This was driven by decrease in revenue from Software services and Business process outsourcing services by 9.2% yoy and 8.9% yoy, respectively.

Federal Bank Q1FY18 results reported miss versus street estimates. The NII for the quarter came in 6% below the street estimates of Rs.852 crore. Lastly, net profit for the quarter also came in 16% lower than the street estimates of Rs.251 crore. NII for the quarter increased 15% yoy to Rs.801 crore in Q1FY18 vs Rs.692 crore in Q1FY17. This was backed by equal increase in interest earned to Rs.2324 crore in Q1FY18 vs Rs.2013 crore.

Bharti Airtel's Q1FY18 consolidated results for the quarter beat consensus estimates on Net profit. Net profit for the quarter came in 42% higher than the estimated figure of Rs. 435 crore. Revenue for the quarter came in line with the estimated figure of Rs. 22028 crore. Also, EBITDA for the quarter came in 2.1% higher than the estimated figure of Rs. 7600 crore.

Hero Motocorp's Q1FY18 standalone results for the quarter registered a miss versus street estimates. Revenue for the quarter came in 6.6% higher than the estimated figure of Rs. 8080 crore. EBITDA for the quarter came in 0.2% lower than the estimated figure of Rs. 1299 crore. And lastly, net profit for the quarter came in 2% lower than the estimated figure of Rs. 933 crore.

Zee Entertainment's Q1FY18 consolidated results for the quarter registered a miss on street estimates in terms of bottomline. Revenue for the quarter came in 2.5% higher than the estimated figure of Rs. 1503 crore. EBITDA for the quarter came in 10.4% lower than the estimated figure of Rs. 481 crore. And lastly, net profit for the quarter came in 24.7% lower than the estimated figure of Rs. 334 crore.

Bharti Infratel's Q1FY18 consolidated results for the quarter were largely in-line with street estimates. Revenue for the quarter came in line with the estimated figure of Rs. 3504 crore. EBITDA for the quarter came in 2.6% higher than the estimated figure of Rs. 1535 crore. And lastly, net profit for the quarter came in 5.7 % higher than the estimated figure of Rs. 628 crore. Bharti Infratel consolidated revenue for the quarter came in at Rs. 3524 crore, registering 9.8% yoy increase.


? TOP BANKING AND FINANCIAL NEWS OF THE WEEK
When Moody's Investors Service polled market participants in Hong Kong recently, 70 percent picked India's banking system as the most vulnerable among seven countries in South and Southeast Asia. As another earnings season rolls on, the weaknesses of Indian lenders -- depleted capital levels in state-run banks and an inability to shed soured corporate debt even in non-state-controlled ones -- are once again obvious. What's not as apparent, though, is an quadrifurcation of Indian banking.

Indian banks are most at risk in South and South-East Asia, and being under-capitalised, they lack sufficient loan provisioning, says a Moody's poll. It said the government has appeared reluctant to increase capital injection into PSU banks despite the limited ability of these lenders to access equity markets for the much-needed capital. Earlier this month, Moody's polled 210 market participants on some of the industry's most pressing credit issues. "Indian banks are most at risk in South and South-East Asia. We agree that many banks in India remain undercapitalised and continue to lack sufficient loan-loss provisions. Moreover, the government has appeared reluctant to increase capital injections into the PSU banks, despite the limited ability of these to access equity markets for the much-needed capital," the Moody’s polls said.

Banks hoping to escape steep provisions on loans referred to bankruptcy court, apart from the 12 companies that the Reserve Bank of India recently mandated for the insolvency process, are set to be disappointed. The central bank will soon direct lenders to set aside 50% of bad debt as soon as a referral happens, and 100% if the tribunal orders liquidation, taking a heavy toll on finances already marred by provisioning requirements on non-performing assets.

Veteran banker Aditya Puri said initiating insolvency proceedings is not the "best solution" to fight the bad loan issue and advocated using the recently introduced law only in cases of wilful default. As far as going to insolvency courts is concerned, that's not the best solution. Ideally, we should be able to help him to breath, and only if he is a wilful defaulter we opt for insolvency court," Puri told the HDFC BankBSE -0.75 %'s annual general meeting.

Amid majority of farmers stopping loan repayments, a Punjab government-appointed expert panel will meet bankers for the first time here on July 25 to seek suggestions on debt waiver. The meeting between the panel on loan waiver and bankers assumes significance as Congress led government was facing mounting pressure to implement the debt waiver, a key poll promise. The expert panel will meet representatives of several banks here in connection with the debt waiver issue, a senior official of the Punjab National Bank said.

For Quick Trial – 08962000225
Or mail us here: info@ways2capital.com or visit http://www.ways2capital.com/free-trial.php
Contact 0731-6626222
Toll Free – 1800-3010-2007
Give a Missed Call for Free Trial - 09699997717
For Reports And Tracksheets - http://www.ways2capital.com/downloads.php


Contact Details

Company Name: ways2capital
Issued By: ways2capital
Phone: 0731-6626222
Address: 515,516 Shagun Arcade Vijay Nagar
City: Indore
State: Madhaya Pradesh
Zip: 452001
Country: India
Website: Visit the website

Keywords : Accurate Stock Tips, Shares Tips,

by ways2capital (a month ago!)

Latest Press Releases

Text My Main Number Announced Major Shift of US Businesses toward Landline Texting

Global Department Stores Retailing 2015-2020: Ken Research

Global M-Health Device Market : Latest Research

Global Zinc Selenide Market Professional Survey Report 2017 to its Products Forecast – RAIN G..

Diesel Fuel Injection Systems 2017 Development, Trends, Share, Growth, Research and Market An..

Global Soil Testing, Inspection, and Certification Market Size, Status – ALS Ltd, Assure Qual..

Silicon Carbide Ceramics 2017 Annual Growth Value, Market Trends, Developments & Opportunities

5.1% CAGR Anticipated for Demineralized Whey Powder Ingredient Market During 2017-2027

Acoustic Wall Panels Market Forecasts, Size, Share, Regional Outlook 2017 to 2022

Rehm goes India

Remove this press release ?

Due to extra work required to remove the press-releases we have started charging $1.99 for press release removal.

Your press release will be removed in 24 hours, once the payment has been received.

Search Press Release
e.g. Business, Computer, etc.