Morning Update 05th Apr, 2017

BIG PICTURE

* Govt FY17 tax collection 17.1 trln rupees, exceeds target

TOP EVENTS TODAY

* Day One of RBI Monetary Policy Committee’s two-day meeting.

* Board Meetings:

+ Anka India, to consider issuance of warrants convertible into shares.

INDICATORS

* NSE provisional net buy/(sell) in bln rupees, Apr 3: FII 5.34, DII 0.33

* Institutional net buy/(sell) in bln rupees, Mar 31: FIIs 34.89

* FII NSE futures net buy/(sell) in bln rupee, Apr 3: index (0.99), shr 1.56

* Sensex: 29910.22, up 289.72 points; Nifty 50: 9237.85, up 64.10 points

* Crude: $51.03/bbl; Rupee: 65.0200/$1; Gold: $1,258.4/ounce; 10-yr yld: 6.6480%

OUTLOOK

* Domestic equities are seen opening marginally higher tracking positive cues from most global markets. The gains, however, are seen limited on caution ahead of the RBI’s monetary policy meeting starting today.

GLOBAL STOCK MARKETS

* Key US indices ended marginally higher on Tuesday led by a rebound in energy-related stocks, but caution ahead of the upcoming meeting between US President Donald Trump and Chinese President Xi Jinping kept the gains limited.

* Key share indices in the Asian region were higher in early trade tracking overnight gains in the US markets, even as the focus remained on this week’s meeting between the presidents of US and China.

SECTOR NEWS

* CORPORATE: Essar group has entered into an agreement to sell 100% stake in its business process solutions arm Aegis, to Singapore-based private equity firm Capital Square Partners for an undisclosed amount.

* ECONOMY: UK’s Chancellor of Exchequer Philip Hammond said the country is going to start investing in the India-UK fund this year, a sub-fund under National Investment and Infrastructure Fund.

* INFORMATION TECHNOLOGY: US has signalled a major policy shift in the H-1B work visa programme, making computer programmers ineligible for the non-immigrant visas by default.

* INSURANCE: The Insurance Regulatory and Development Authority of India has rejected truck owners’ demands to roll back the hike in third-party motor insurance premium.

* POWER: The proposed 4,000 MW Cheyyur Ultra Mega Power Project in Tamil Nadu, which was to be developed as an imported coal-based power plant, will now use domestic coal, a source said.

* STEEL: The Supreme Court has reserved its order in a case related to the payment of dues worth 10.38 bln rupees by Essar Steel India to the Gujarat government during 2000-2009.

* TELECOMMUNICATION: After selling nearly 10 mln devices in India last year, Lenovo-Motorola combine plans to set up a company-owned factory in India.

STOCKS

* ABB INDIA: The group has acquired Austria-based B&R, a solution provider in the automation of machines, for an undisclosed amount.

* ADITYA BIRLA NUVO: The Aditya Birla Group has received licence from the Reserve Bank of India to start a payments bank, which will be a 51:49 joint venture between the company and IDEA CELLULAR.

* ARSHIYA: Edelweiss Asset Reconstruction Co has restructured its debt worth 13.38 bln rupees which it had brought from most of the lenders to the Arshiya Group.

* ASHOK LEYLAND: Total vehicle sales in March were 18,682 units, compared with 16,702 units a year ago.

* BAJAJ FINANCE: Has slashed the minimum investment size by more than two-thirds to 25,000 rupees from 75,000 rupees to double its outstanding deposit base.

* BHARAT FORGE: Plans to raise $500 mln in an overseas bond sale, sources said.

* CIPLA: Has received approval from the US Food and Drug Administration for its generic of Abacavir and Lamivudine tablets used for treatment of human immunodeficiency virus infection.

* DABUR INDIA: Has completed acquisition of personal, hair care and creams businesses of South Africa based-CTL group of companies.

* DR REDDY’S LABORATORIES: US Food and Drug Administration will inspect the company’s formulation unit in a Special Economic Zone of Srikakulam during Apr 10-14.

* DPSC: Power Trust Corp said it has proposed to sell 326.63 mln shares of 1-rupee face value each of the company, currently known as India Power Corp.

* FEDERAL BANK: Fedfina, the non-banking financial arm of the company, is looking to raise 3 bln rupees from private equity investors, sources said.

* GMR INFRASTRUCTURE: Subsidiary GMR Energy has signed a memorandum of understanding to set up a joint venture with Malaysian firm TNB Remaco for power plant maintenance operations in India.

* GODFREY PHILLIPS INDIA: Has not received any proposal to hive off its marketing and distribution divisions.

* HATHWAY CABLE & DATACOM: Has completed the slump sale of its cable television operations to subsidiary Hathway Digital on Friday.

* HERO MOTOCORP: Has closed the financial year ended March with annual sales of 6.66 mln units of two-wheelers, compared with 6.63 mln units in the year-ago period.

* ICICI BANK: The alternate investment arm of the company, ICICI Venture, will invest $20 mln to acquire a significant stake in bakery chain Theobroma, sources said.

* IDBI BANK: Will on Apr 11 hold talks with employees on an ongoing dispute related to revision of wages. A decision regarding a strike proposed by employees of the banks bank on Apr 12 will be taken after the meeting.

* IDFC BANK: Has cut some of its marginal cost of funds-based lending rates for April by 15-40 basis points.

* INDIAN OVERSEAS BANK: Has cut its base rate by 20 bps, effective Saturday, to 9.50%.

* INTERGLOBE AVIATION: IndiGo has introduced 35 flights as part of its summer schedule.

* LUPIN: The Federal Court of Australia has ruled against the company’s Australian arm, Generic Health, in a patent infringement case with Bayer Pharmaceuticals and has asked it to pay an amount of Australian $30 mln.

* MAHANAGAR TELEPHONE NIGAM: Has approached the government with a proposal to monetise surplus land and reduce debt.

* NBCC (INDIA): Has acquired 51% shareholding in Hindustan Steelworks Construction as part of the process to make the latter a subsidiary of the company.

* NMDC: Has kept the prices of iron ore lumps and fines unchanged for April.

* NTPC: Has commissioned its first wind turbine of 2 MW at Rojmal Wind Power Project in Gujarat, with a total project capacity of 50 MW.

* OIL & NATURAL GAS CORP: Its overseas arm ONGC Videsh has revised its proposal to develop Iran’s Farzad-B natural gas block and could invest more than $3 bln in the project. Plans to invest up to 650 bln in its three allotted blocks in the Krishna-Godavari basin.

* RATNAMANI METALS & TUBES: Has got an export order worth $23 mln for supply of carbon steel welded pipes coating.

* RELIANCE CAPITAL: Has initiated talks with likely buyers such as Dalian Wanda Group, TenCent, or even Alibaba to sell its entire 35.1% stake in PRIME FOCUS, sources said.

* RELIANCE INDUSTRIES: Has received environment clearance for expansion and de-bottlenecking of its Dahej petrochemical facility in Gujarat at a cost of 132.50 bln rupees.

* REPRO INDIA: Has received a notice from the president of trade union at the company’s Mahape plant, regarding their decision to go on strike from Saturday.

* SOUTH INDIAN BANK: Has raised around 6.31 bln rupees through rights issue of shares.

* STATE BANK OF INDIA: Has inked a deal with COX & KINGS for the sale of prepaid travel cards in India on a pilot basis.

* STEEL STRIPS WHEELS: Total wheel rim sales in March were 1.27 mln units, up 3.5% from 1.22 mln units a year ago.

* TVS MOTOR CO: Total sales for March rose 10% on year to 256,341 units.

* UJAAS ENERGY: Has received an order from Rajasthan Renewal Energy Corp for design, supply, installation, and commissioning of 850 KW grid connected solar power units in schools and colleges of the state.

* WONDERLA HOLIDAYS: Plans to commission a 400 mln rupees space theme ride based on virtual reality in Hyderabad once various mandatory clearances are secured.

* YES BANK: The balance sheet of its international banking unit in the GIFT City has crossed the $1-bln mark in the financial year ended March.

Kind Regards,

Atul Vitha

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