Morning Update 07th Apr, 2017

BIG PICTURE

* Parliament passes GST bills; Rajya Sabha junks Opposition amendment

TOP EVENTS TODAY

* Board Meetings:

+ Indiabulls Ventures, to consider issue of shares on preferential basis

+ Pact Industries, to mull long-term fund requirement

+ Shalimar Paints, to mull fund-raising via shares on rights basis

INDICATORS

* NSE provisional net buy/(sell) in bln rupees, Apr 6: FII 1.43, DII (2.06)

* Institutional net buy/(sell) in bln rupees, Apr 5: FIIs 4.81

* FII NSE futures net buy/(sell) in bln rupee, Apr 6: index (9.28), shr (1.68)

* Sensex: 29927.34, down 46.90 points; Nifty 50: 9261.95, down 3.20 points

* Crude: $51.70/bbl; Rupee: 64.51/$1; Gold: $1,253.3/ounce; 10-year yield: 6.7682%

OUTLOOK

* Domestic equities are likely to open on a subdued note tracking weakness in most Asian markets. The indices are likely to remain in a narrow range as investors may avoid aggressive bets ahead of the Jan-Mar corporate earnings from next week.

GLOBAL STOCK MARKETS

* Key US indices came off highs to end with modest gains on Thursday as US President Donald Trump took aggressive stance against Syria and North Korea ahead of the meeting with Chinese President Xi Jinping in Florida.

* Most Asian share indices were weak due to rising geopolitical concerns following the US strikes on Syria, and as President Trump hosts his Chinese counterpart for a key meeting in the backdrop of tensions over North Korea and trade relations.

IPO WATCH

* Clean energy producer ReNew Power plans an initial public offering to raise up to $600 mln after it closed the latest round of funding that valued the company at $2 bln, sources said.

SECTOR NEWS

* AUTOMOBILE: Hyundai Motor India has launched the 2017 model of the Creta sport utility vehicle with advanced technology features in two variants, at a base price of 928,547 rupees, ex-showroom Delhi.

Toyota Kirloskar Motor is recalling 23,157 units of its sedan Corolla Altis in India, as part of the ongoing recall of 2.9 mln vehicles globally for defective air bags.

Honda Motor Co’s Indian arm has become the first two-wheeler subsidiary of the company to achieve sales of 5 mln units in a year.

* CORPORATE: The Supreme Court has refused to extend the Apr 17 deadline for Sahara Group Chief Subrata Roy to deposit 50.93 bln rupees and warned that the court could auction the group’s Aamby Valley property if the payment is missed.

* HEALTHCARE: The government will roll out a revised National Strategic Plan in about a week, to eliminate tuberculosis by 2025.

* OIL AND GAS: Petroleum Minister Dharmendra Pradhan has clarified companies were free to decide on crude procurement from Iran and that the government wouldn’t interfere in such matters.

Saudi Aramco, the world’s largest oil producer, is in talks with the government to acquire stake in the 60-mtpa mega refinery being planned by INDIAN OIL CORP, BHARAT PETROLEUM CORP, and HINDUSTAN PETROLEUM CORP, Petroleum Minister Dharmendra Pradhan said.

* PHARMACEUTICAL: The government has formed a panel of officials from the Department of Pharmaceuticals and the health ministry that would suggest ways to make drugs more affordable.

* TELECOMMUNICATION: The Telecom Regulatory Authority of India will send its recommendations on regulating over-the-top services to the government.

The Department of Telecommunications has flagged a nearly 30% sequential fall in licence fee collections from the industry in the quarter ended March, mainly because a slew of promotional plans hurt revenues of incumbents.

STOCKS

* BHARTI AIRTEL: Has doubled the size of network by installing 180,000 mobile sites in the past two years.

Has terminated the services of its Vice-President Pallab Mitra for alleged violation of code of conduct.

* CAIRN INDIA: With the government extending the contract period for the company’s flagship Rajasthan block, it hopes to account for half of the country’s oil production in 3-4 years.

* CHAMBAL FERTILISERS AND CHEMICALS: One of its urea plants in Kota, Rajasthan, has been shut with effect from Thursday to carry out planned repair and maintenance activities.

* DCB BANK: Is looking to raise as much as 4 bln rupees through a qualified institutional placement in the latter half of Apr-Jun, sources said.

* EMAMI: Has launched its edible oil products under ‘Emami Healthy and Tasty’ brand in northern and western parts of India.

* GAMMON INDIA: National Law Tribunal has approved the transfer of its transmission and distribution undertaking to Transrail Lighting.

* GAMMON INFRASTRUCTURE PROJECTS: Has acquired 24% stake or 24.37 mln shares in Indira Container Terminal for 150 mln rupees.

* GE POWER INDIA: Has received a 2.38-bln-rupee order from GE Power AG to supply 150 MW CFB boiler and electrostatic precipitator components.

* HINDUSTAN UNILEVER: Plans to cut 10-15% jobs, including layoffs and reduction in new hiring, as part of its parent’s global mandate to reduce costs across markets, sources said.

* IDEA CELLULAR: Is offering up to 10 GB data per month at a rental of 100 rupees for post-paid customers.

* INDIABULLS HOUSING FINANCE: Has allotted non-convertible debentures worth 10 bln rupees on a private placement basis.

* JET AIRWAYS INDIA: Is introducing 15-20% variable pay component for its top management to save on its wage bill. This is expected to result in annual savings of 250-300 mln rupees, a source said.

* JINDAL STEEL AND POWER: Suspended operations at its coking coal mine in Australia in March due to heavy rains caused by Cyclone Debbie, forcing it to declare force majeure.

* JSW STEEL: Could spend around $1 bln on capacity addition and acquisition this fiscal and will bid for several iron ore and coking coal mines in upcoming government auctions, a source said.

* MAHINDRA & MAHINDRA: Has unveiled a third new tractor platform in three years called the Mahindra JIVO.

* MANGALORE CHEMICALS & FERTILIZERS: Had provided surety worth 2.25 bln rupees on behalf of ZUARI AGRO CHEMICALS for the latter to import raw material at concessional rate of duty during 2017-18 (Apr-Mar).

* MEP INFRASTRUCTURE DEVELOPERS: Plans to file a draft red herring prospectus for its infrastructure investment trust to raise at least 12 bln rupees, by the end of April, a source said.

* OIL AND NATURAL GAS CORP: Chairman Dinesh Kumar Sarraf has said deregulating gas pricing and marketing rights was necessary for exploration.

* RELIANCE INDUSTRIES: The Telecom Regulatory Authority of India has asked subsidiary Reliance Jio Infocomm to withdraw its three-month complimentary ‘Summer Surprise’ offer.

* SML ISUZU: Has an inventory of 1,800 Bharat Stage-III vehicles, which the company is trying to export or convert into Bharat Stage-IV vehicles.

* UNITECH: A Delhi court has denied bail to the company’s promoters Ajay Chandra and Sanjay Chandra, arrested in a fraud case relating to a Gurugram-based real estate project and sent them to judicial custody for two weeks.

* VEDANTA: Parent Vedanta Resources is firming up its clean energy plans for India, encouraged by the opportunities offered by the country’s growing green economy.

* VOLTAS: Is evaluating a bid for Kenstar, owned by the Videocon group, sources said.

Kind Regards,

Atul Vitha

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