Morning Update 10th Apr, 2017

BIG PICTURE
* Israel signs $2 bln missile deal with India
* India extends $4.5-bln line of credit to Dhaka for infra projects
TOP EVENTS TODAY
* Board Meetings:
 + Cybermate Infotek to consider issue of shares
 + Hindustan Composites to approve issue of shares by way of bonus shares

INDICATORS

* NSE provisional net buy/(sell) in bln rupees, Apr 7: FII (2.62), DII 4.15
* Institutional net buy/(sell) in bln rupees, Apr 6: FIIs 4.4, MF 0.90
* FII NSE futures net buy/(sell) in bln rupee, Apr 7: index (5.09), shr 5.63
* Sensex 29706.61, down 220.73 points; Nifty 50 9198.30, down 63.65 points
* Crude: $52.24/bbl; Rupee: 64.28/$1; Gold: $1,257.30/ounce; 10-yr yld: 6.8186%

WEEKLY SECTOR OUTLOOK

* AUTOMOBILE: Seen rising; Maruti Suzuki in focus
* BANKS: Seen volatile ahead of Jan-Mar results; econ data eyed
* CAPITAL GOODS: Seen rising; L&T, BHEL eyed
* CEMENT: Seen up on demand revival, price hikes
* FMCG: Seen mixed as headwinds remain; HUL in focus
* IT: In narrow range; market to eye Jan-Mar result, FY18 guidance
* METALS: To follow broader market's trend
* OIL: State-owned fuel retailers seen strong
* PHARMACEUTICALS: Seen subdued as strong rupee weighs
* TELECOM: Range-bound movement likely

OUTLOOK
* Domestic shares are seen volatile today, tracking the trend in global equity markets and ahead of Jan-Mar corporate earnings announcements.

GLOBAL STOCK MARKETS
* US indices ended slightly down on Friday on account of weaker-than-expected March jobs data and US air strikes on Syria.
* Most Asian indices were down today, tracking the trend in US shares Friday. The Nikkei though was strong as a weak yen against the dollar pushed shares higher in Japan.

SECTOR NEWS
* AUTOMOBILE: The Supreme Court has extended stay on the Competition Appellate Tribunal's order, which had found 14 automakers guilty of indulging in unfair market practices.
The Supreme Court-appointed Environment Pollution (Prevention and Control) Authority has moved the court, seeking to stop sale of Bharat Stage-IV compliant vehicles from April 2020.
Ford Global Technologies, a part of Ford Motors, has received an Indian patent for an invention related to a hybrid electric vehicle.

* BANKING: The Reserve Bank of India has started groundwork to introduce wholesale banks, which could fund the infrastructure sector and small, medium and corporate businesses, and also act as market makers for corporate bonds.
* CORPORATE: Vijay Mallya has filed an appeal in the Securities Appellate Tribunal against an order of the Securities and Exchange Board of India, barring him and six others from the securities market.
The income tax department has asked Cairn Energy to pay dues of 102.47 bln rupees by Jun 15. It has also raised an interest demand of around 14 bln rupees asking Cairn why a penalty should not be imposed.

* ECONOMY: The government is likely to seek an approval from the Cabinet by the end of the month to put in place a mechanism that would replace the Foreign Investment Promotion Board.
The cap of 65,000 for H-1B visas for the financial year 2017-18 (Apr-Mar) has been breached within four days of the opening of the window to apply.
The finance ministry may request the Securities and Exchange Board of India to extend the August deadline for public sector banks to meet 25% public float norm.

* EXCHANGES: The Securities and Exchange Board of India is yet to give its approval for the appointment of Vikram Limaye as managing director and chief executive officer of the National Stock Exchange.

* FINANCE: Axis Finance will consider issuance of non-convertible debentures worth 22 bln rupees at its board meeting on Tuesday.

* INSURANCE: Reinsurer Lloyd's started its India operations with the launch of the first branch on Wednesday.

* METAL: The government is mulling imposition of minimum import price on certain aluminium products to protect the domestic industry.

* POWER: State-owned power companies NTPC, POWER FINANCE CORP, and RURAL ELECTRIFICATION CORP, among others, are likely to issue masala bonds of around $1 bln in London markets in the next few months.

* PHARMACEUTICAL: The National Pharmaceutical Pricing Authority has issued preliminary notices to several drug manufacturers citing 613 cases of sale of essential medicines above the ceiling price in January.

STOCKS
* APOLLO TYRES: Formally inaugurated its sixth global tyre manufacturing unit in Hungary.

* AXIS BANK: The Central Bureau of Investigation has registered a case under Prevention of Corruption Act against a former branch manager and two officials of the company's branch in Ahmedabad.

* BHARTI AIRTEL: The company has accused Reliance Jio Infocomm of violating the Telecom Regulatory Authority of India's order stopping the new entrant's Summer Surprise offer and called on the watchdog to take "suitable action".
The company and state-owned Bharat Sanchar Nigam are working with Nokia to transform existing networks to the fifth generation.

* BHARAT ELECTRONICS: Has got sales tax demand notices worth 8.08 bln rupees from the deputy commissioner of commercial taxes in Karnataka.

* BRIGADE ENTERPRISES: Has announced a new housing project on 2.83 ha in Bengaluru.

* CENTRAL BANK OF INDIA: Will consider raising 5.83 bln rupees through the issue of shares at its board meeting on Wednesday.

* COSMO FILMS: The board has approved setting up a new production line for specialised polyester film at Aurangabad in Maharashtra.
The company plans to install a new production line for speciality polyester films by Oct-Dec in financial year 2018-19 (Apr-Mar).
* DIVI'S LABORATORIES: The US Food and Drug Administration has exempted some more of the products manufactured at unit-II in Vishakhapatnam from import alert.

* INDIABULLS VENTURES: Has approved an issue of 38.86 mln shares at 58.40 rupees to Cinnamon Capital.

* JAYPEE INFRATECH: The company's Managing Director Manoj Gaur and three other senior officials have been booked for allegedly cheating an investor.
* JET AIRWAYS INDIA: Plans to start direct flights to Amsterdam and Paris as it intends to deepen its partnership with the Air France-KLM group and Delta Air Lines.

* KOTAK MAHINDRA BANK: Subsidiary Kotak Infrastructure Debt Fund has got a certificate of registration from the Reserve Bank of India to commence operations.

* LARSEN & TOUBRO: Has appointed S.N. Subrahmanyan as chief executive officer and managing director with effect from Jul 1.

* LUPIN: The US Food and Drug Administration will begin inspection of the company's Aurangabad unit from Apr 17.
The Co has received final approval from the US Food and Drug Administration for bupropion hydrochloric tablets, which used for the treatment of major depressive disorder.

* MARUTI SUZUKI: Total vehicle production rose 10.3% on year in March to 153,868 units.

* NEULAND LABORATORIES: Has received a Form 483 with two observations from the US FDA for unit 1 in Hyderabad.

* NMDC: Total iron ore output for 2016-17 (Apr-Mar) was at 34.03 mln tn and sales were at 35.62 mln tn.

* PRAKASH INDUSTRIES: The company's steel production for Jan-Mar rose 16.7% on year to 170,000 tn, while sales were at 169,000 tn.

* RATTANINDIA INFRASTRUCTURE: The Securities Appellate Tribunal has rejected appeal of the company's promoters against SEBI order to revise the open offer price.

* RELIANCE COMMUNICATIONS: Is in the process of letting go of about 260 more employees over the coming months for below-par-performance.

* RELIANCE INDUSTRIES: The Telecom Regulatory Authority of India has said the 'Summer Surprise' offer of the company's telecom subsidiary Reliance Jio Infocomm did not fit into regulatory framework.

* RELIANCE POWER: Will today seal a power purchase agreement with the Bangladesh Power Development Board to get the $1-bln first phase of its proposed power project and liquid gas import terminal in Bangladesh.

* RELIGARE ENTERPRISES: Will sell its entire 80% stake in Religare Health Insurance to a consortium of investors led by True North Managers for an estimated 10.4 bln rupees.

* SOBHA LTD: Promoter Sobha Menon has sold 4 mln shares of the company through an open market transaction.

* STEEL AUTHORITY OF INDIA: Plans to raise 5 bln rupees through the issuance of bonds maturing in five years, and has invited bids from merchant bankers between 1100 IST and 1130 IST on Monday.

* SYNDICATE BANK: Will cut its Base Rate by 10 basis points to 9.50% from Monday.

* TATA MOTORS: Subsidiary Jaguar Land Rover plans to launch 10 new products in India this year as it looks to accelerate sales growth. Co plans to expand its sales and service network to 1,500 by 2019 from the current 700 centres.

* TORRENT PHARMACEUTICALS: Is close to finalising a deal to acquire domestic women healthcare portfolio from Novartis.

Kind Regards,

Atul Vitha

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