Morning Update 6th Apr, 2017

BIG PICTURE

* Cabinet OKs setting up railway regulator; may start ops in 4-5 mos

TOP EVENTS TODAY

* First bi-monthly monetary policy resolution for 2017-18 (Apr-Mar), by the Monetary Policy Committee.

* Jan-Mar earnings to be detailed by: GM Breweries, Prime Securities

* Board Meetings:

+ GM Breweries, to consider dividend.

+ Premier Synthetics, to consider issue of shares on preferential basis.

+ Stylam Industries, to mull fund raising through pref issue of securities.

INDICATORS

* NSE provisional net buy/(sell) in bln rupees, Apr 5: FII 3.40, DII (1.94)

* Institutional net buy/(sell) in bln rupees, Apr 3: FIIs 5.84, MF 1.96

* FII NSE futures net buy/(sell) in bln rupee, Apr 5: index 6.35, shr (2.91)

* Sensex: 29974.24, up 64.02 points; Nifty 50: 9265.15, up 27.30 points

* Crude: $51.15/bbl; Rupee: 64.8700/$1; Gold: $1,248.5/ounce; 10-yr yld: 6.6507%

OUTLOOK

* Domestic shares are likely to remain in a range, tracking weak trend in most global markets and on caution ahead of the Reserve Bank of India’s monetary policy, due later today.

GLOBAL STOCK MARKETS

* Key US share indices ended lower Wednesday, erasing gains made earlier in the day, as the minutes of the US Federal Reserve’s March meeting indicated it might begin unwinding its massive $4.5 trln balance sheet before the end of the year.

* Most Asian equity markets were weak in early trade, tracking overnight losses in the US, as they were weighed down by the US Federal Reserve’s plan to trim its balance sheet.

IPO WATCH

* The initial public offering of publisher S. Chand & Co is likely to open in the third week of April, sources said.

* The initial public offering of the UTI Mutual Fund is likely as key stakeholders, including STATE BANK OF INDIA, have come on the same page, sources said.

SECTOR NEWS

* AUTOMOBILES: The Gujarat government has expressed confidence that General Motors’ Halol plant will witness a “peaceful” transition for its workers moving to the company’s Talegaon plant by May 15.

* BANKING: The ban on cash transactions of more than 200,000 rupees a day will not apply to withdrawals from banks, post office savings accounts and cooperative banks, the Central Board of Direct Taxes said.

The proposed merger of AXIS BANK and KOTAK MAHINDRA BANK has no government backing and neither bank has approached the Centre with a plan, sources said.

* CORPORATE: Microfinance institution Spandana Sphoorty Financial has raised over $100 mln worth of equity capital from a Kedaara Capital-led consortium, and $170 mln debt capital from three private banks on Friday.

* ECONOMY: Finance Minister Arun Jaitley moved a bill in Lok Sabha to amend the National Bank for Agriculture and Rural Development Act to increase the authorised capital of NABARD by six times to 300 bln rupees.

The government has collected about 23 bln rupees in taxes through the Pradhan Mantri Garib Kalyan Yojana, the second income disclosure scheme announced after demonetisation.

The government is considering further relaxing foreign direct investment rules in the retail of food products to make it even easier for top foreign retailers to invest in India.

* INFRASTRUCTURE: The government has notified infrastructure status to the affordable housing sector, paving the way for easier access to institutional credit to the sector.

The Centre is unlikely to fund the upkeep of roads if state governments denotify national highways as urban or district roads to comply with Supreme Court ban on sale of liquor near highways, sources said.

* PHARMACEUTICALS: The government has said pharmaceutical companies must conduct a bioequivalence study for a drug to secure approval from the regulator to manufacture a generic medicine.

The government may shift the National Pharmaceutical Pricing Authority and the Department of Pharmaceuticals to the health ministry from the Ministry of Chemicals and Fertilisers, sources said.

* SUGAR: The government, which on Wednesday allowed duty-free import of 500,000 tn raw sugar, has imposed a number of conditions on imports that traders say would be tough to meet.

* TELECOMMUNICATION: Aircel, RELIANCE COMMUNICATIONS and BHARTI AIRTEL did not meet Telecom Regulatory Authority of India’s various quality norms for 2G services in multiple licence areas for the quarter ended December.

STOCKS

* BALMER LAWRIE & CO: Plans to divest stake including management participation in Transafe Services to revive its joint venture logistics arm.

* BHARAT HEAVY ELECTRICALS: Has added capacity of 45,274 MW in the utility segment during the 12th Five-Year Plan period ended Mar 31, higher than target of 41,661 MW.

* BHARTI AIRTEL: Its promoter firm Indian Continent Investment has settled an alleged insider trading case after paying 217,000 rupees towards settlement charges to Securities and Exchange Board of India.

* BOSCH: Is working on a technology that would help vehicles meet the Bharat Stage-VI emission standards, which will come into effect from April 2020.

* BRAHMAPUTRA INFRASTRUCTURE: Had received an order worth 448 mln rupees from the government of Assam for construction of a residential complex at Rehabari, Guwahati.

* CAPITAL FIRST: Has raised 7 bln rupees through the issuance of two sets of bonds.

* COAL INDIA: Is actively looking to acquire coking coal assets in Australia, a senior company official said.

* EDELWEISS FINANCIAL SERVICES: Subsidiary Ecap Equities has signed an agreement to buy 100% stake in financial technology company Alternative Investment Market Advisors.

* FORCE MOTORS: Its total sales in March were 4,362 units, down 8.4% on year.

* INDUSIND BANK: Plans to raise 10 bln rupees by issuing Basel-III compliant bonds.

* MAHINDRA & MAHINDRA: It has launched a new compact tractor model ‘Mahindra JIVO’ in Gujarat and Maharashtra, at a starting price of 390,000 rupees from Apr 25.

The company plans to start selling electric buses next year in India.

* MAJESTIC RESEARCH SERVICES AND SOLUTIONS: It has received a contract from the United Nations Industrial Development Organisation to conduct a survey covering 200 auto ancillary firms across the country.

* MULTI COMMODITY EXCHANGE: The exchange Wednesday launched futures contracts of refined, bleached, and deodorised palmolein.

* NTPC: Will require 186.5 mln tn of coal to fire its power plants in the current financial year started April, up 8.7% on year from 171.6 mln tn in 2016-17.

* PHOENIX MILLS: Canada Pension Plan Investment Board will invest as much as $250 mln in Island Star Mall Developers, a unit of the company.

* POWER FINANCE CORP: Its wholly-owned subsidiary PFC Consulting has transferred Kohima-Mariani Transmission Project ‘North Eastern Region Strengthening Scheme’ to KALPATARU POWER TRANSMISSION on Mar 31.

* REPCO HOME FINANCE: The board of Repco Home Finance will on Tuesday consider raising 2.72 bln rupees through the issuance of non-convertible debentures maturing in seven years.

* SEAMEC: It has entered into a contract to provide “SEAMAC III” vessel to Kreuz Subsea Technologies Pte for $775,000, to undertake a job in Mumbai High.

* SHANKARA BUILDING PRODUCTS: Which listed on bourses at a premium of 18.5% on Wednesday, will focus on strengthening its position in south India and improve footprint in Maharashtra.

* VEDANTA: Parent Vedanta Resources plans to spend $10 bln over the next three years across its businesses, of which $8 bln is earmarked for Indian operations, said group Chairman Anil Agarwal.

Kind Regards,

Atul Vitha

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