​”Trump: The King of Debt”

​”Trump: The King of Debt”

*Trump: The King of Debt*

U.S. bombing in Afghanistan is very confusing and putting lots of question about Trump’s policies.

Because, nobody was thinking or not on radar. And Trump given a surprise to investors by dropping the “Mother of All Bombs”.

So, people are talking again on falling treasury yields, stocks tied to Infrastructure and tax reform are stalling and even the Maxican peso has wiped out most of it’s losses. And North Korea might be working on anthore nuclear test. Trump, responded on North Korea, said: “North Korea is a problem. The problem will be taken care of.” So again, North Korea warns to regime that, “It’s ready for war, if they choose”. So, investors are worried on rising fears.

But after all, he wants to keep lower interest rates, $1t Infrastructure development. So probably, those agendas are not today in his priorities.

So, where are we headed???

As India prospective; we are much near to face GST from June, UP is Mr Modi’s baby now. Banks are flooded with cash after demonetization. And government pushing implementation of electronic payments system which will be increase direct tax collection. Which will provide funding to big infrastructure projects, rail projects.

After GST implementation, government will try to get clearance on Land Bill, Labor Laws Bill, which will provide more comfortable path to FDI and push to Make in India progress and creating jobs. As a government part they need to increase spending on educations and skills developments also as faster.

So as per my personal opinion, this might be a great chance to buy, let stocks come down, wait for settling all dust arounds, and enter for good stories based stocks. In fact, 200 to 300 points in Nifty50 might be get nominal effect  for 5 to 10 years prospects or lesser than that.

So, still firmly believing as earlier, Nifty50 may cross 10K by August 2017, holding my view.

Kind Regards,

Atul Vitha

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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

Asian equities mixed with Nikkei posting gains despite regional tensions

*Asian equities mixed with Nikkei posting gains despite regional tensions*

Asian equities were mixed in Monday trade despite heightened geopolitical tensions after a missile strike on a Syrian airfield last Friday ordered by President Donald Trump and a move by the U.S. military to send an aircraft carrier group near the Korean Peninsula in response to recent provocations by North Korea.

Trump said the strike targeted an airbase responsible for launching a chemical attack in northeast Syria earlier last week. The attack was launched while Trump was hosting Chinese President Xi Jinping at his Florida resort.

North Korea responded to the strike by stating that it was a justification for its own nuclear weapons program, adding that it had to protect itself against Washington’s “reckless moves for a war”. In turn, a U.S. Navy strike group is expected to move near the western Pacific Ocean and close to the Korean peninsula following North Korea’s multiple nuclear missile test launches this month.

The news did not weigh on Japan’s benchmark Nikkei 225 index, which bounced 0.77 percent. The ASX 200 was higher by 0.58 percent.

The Kospi was down by 0.52 percent, with China-exposed stocks pressured following heightened tensions in the Korean peninsula. PBOC weakens the Yuan reference rate to 6.9042 against the USD from 6.8949 a day earlier.

*China Press: China economic growth may stabilise at a slower pace in Q2 2017* https://t.co/IQ0fTZoeT2

*MEDIA PICKS*

*==HOME FRONT==*

* Violence mars by-elections in Srinagar LS, MP Assembly seats (PTI)

* EC cancels TN Assembly bypoll over use of money power (PTI)

* Militants attack police station in Kulgam distt of Jammu & Kashmir (PTI)

* Will talk less, work more: Goa CM Parrikar (PTI)

*==FOREIGN AFFAIRS==*

* China offers concessions to avert trade war with US (FT)

* Trump removes McFarland from national security role (FT)

* US ramps up pressure on Russia over Syrian conflict (FT)

* EU considering excluding UK from trade talks before Brexit (FT)

* State of emergency in Egypt after church bombings kill 44 (var)

*==BUSINESS AND ECONOMY==*

*INDIA-RELATED*

* US FDA exempts some pdt of Divi Lab’s Vizag unit from import alert (Cogencis)

* India extends $4.5-bln line of credit to Dhaka for infra projects (Cogencis)

* Neuland Labs gets 2 observations from US FDA for Hyderabad unit 1 (Cogencis)

* NPPA issues notices to several cos for overcharging 613 drugs Jan (Cogencis)

* Central bank to mull Wed raising 5.83 bln rupees via share issue (Cogencis)

* Madhucon Projects JV gets 5.8-bln-rupee orders in Maharashtra (Cogencis)

* Axis Finance board to Tue mull raising 22 bln rupees via NCDs (Cogencis)

* SBI-led lenders sells Kingfisher Villa to JMJ Group vice chairman (Cogencis)

* Cosmo Films to start new speciality polyster production line FY19 (Cogencis)

* Odisha Mining Corp invites bids for excavation of chrome ore (Cogencis)

* Telangana, Andhra Pradesh truckers end strike after talks with govt(Cogencis)

* Bharat Electronics gets 8-bln-rupee sales tax demand notice (Cogencis)

*FROM OVERSEAS*

* Secret recording implicates Bank of England in Libor (BBC)

* Wonga data breach ‘affects 245,000 in UK’ (BBC)

* Huishan Dairy dream sours for China tycoon Yang Kai (FT)

* Singapore’s DBS to boost private banking in London (FT)

* New evidence in Shell corruption probe (BBC)

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

Crude spikes, dollar slightly weaker as US fires dozens of missiles at targets in Syria

*Crude spikes, dollar slightly weaker as US fires dozens of missiles at targets in Syria*

Crude prices spiked, the dollar weakened slightly and markets fell in Asia on Friday and stock futures in the U.S. turned negative after the U.S. fired dozens of cruise missiles into Syria.

The missile strikes happened as President Donald Trump hosts Chinese President Xi Jinping at his Mar-a-Lago resort in Florida.

A U.S. military official told NBC that 59 tomahawks had been fired, which hit an airfield near Homs. The missiles hit aircraft and infrastructure including the runway, NBC reported. There is no word on casualties yet, but no people were targeted, the official told NBC.

In a statement, Trump said he had called for the military strike in response to a chemical attack in a rebel-held area in northern Syria. The strike also comes after Trump had said earlier in the day that “something should happen” with Syrian President Bashar al-Assad following the attack that had killed at least 70 people.

The dollar index traded at 100.550, after recording a three-week high at 100.77 earlier in the morning. On the energy front, Brent crude futures rose 1.6 percent at $55.77 a barrel while U.S. crude added 1.72 percent to settle at $52.58.

“Oil prices have naturally reacted to the U.S. bombings of Syria. It is their wont to rally on news like this, but they have always fallen back,” said John Kilduff, founding partner of Again Capital.

“The fact is that oil infrastructure is rarely damaged, and the petrodollars are the spoils of war — neither side wants to kill the ‘petro-goose.’ If anything, this airstrike sets back ISIS and makes Middle East oil supplies more secure, not less,” Kilduff said.

U.S. futures fell after the news with Dow Jones futures down nearly 100 points and S&P 500 futures off around 13 points, while Nasdaq futures eased almost 28 points. The U.S. 10-year yield hit a low of 2.289 percent, the lowest level since Nov. 22 when the 10-year yielded as low as 2.287 percent.

*MEDIA PICKS*

*==HOME FRONT==*

* Shiv Sena members heckle aviation minister, say MP be allowed to fly (var)

* Congress reaches out to CPI for anti-BJP alliance (ET)

* Probe agency files case vs former Haryana CM in land allotment case (IE)

* SC reserves order on charges against BJP leaders in Babri Masjid case (IE)

* Shunglu panel report indicts Kejriwal govt for abuse of power (IE)

* Jayalalithaa’s ‘coffin’ used as campaign prop by Panneerselvam (NDTV)

* PM Modi says development only mantra to change lives for better (PTI)

* Woman journalist attacked in Delhi park (ToI)

* Flood-like situation in J&K, Jhelum above danger mark in Srinagar (ZEE)

* Avalanche buries army post in Ladakh, 2 soldiers rescued, 3 missing (NDTV)

* Swaraj hopeful of permanent member spot in UN Security Council (PTI)

*==FOREIGN AFFAIRS==*

* Postmortems confirm chemical attack on Syria, says Turkey (The Guardian)

* Chinese media says Beijing should answer India “blows with blows” (ToI)

* Philippines President Duterte orders troops to South China Sea reefs (AFP)

* Devin Nunes to step down from US House Russia probe (FT)

* US President Trump drops Steve Bannon from National Security Council (RTR)

* Nikki Haley gets heckled at Global Women Summit in New York (NDTV)

* Myanmar leader Suu Kyi denies ethnic cleansing of Rohingya Muslims (AFP)

* Explosion at St Petersburg building, no one injured (RTR)

* Islamic State group kills 33 men in Syria (AP)

* Thai king endorses new military-backed constitution (AP)

*==BUSINESS AND ECONOMY==*

*INDIA-RELATED*

* RBI leaves repo rate unchanged at 6.25% (Cogencis)

* Reverse repo adjusts to 6% as LAF corridor narrowed (Cogencis)

* RBI says FY18 CPI outlook challenging due to broad-based pressures(Cogencis)

* RBI says demonetisation effect on growth short-lived, modest (Cogencis)

* Parliament OKs GST bills; Rajya Sabha junks Opposition amendments (Cogencis)

* HUL job cuts, extent of layoffs could be between 10% and 15% (ET)

* State-run oil companies plan to review fuel rates daily (ET)

* Australia likely to start supplying uranium to India from this year (ET)

* Government unlikely to challenge Supreme Court liquor ban (BS)

* RBI allows banks to invest in REITs, InvITs (Cogencis)

* RBI sees inflation averaging 4.5% in Apr-Sep, 5% in Oct-Mar (Cogencis)

* RBI Patel says farm debt waiver undermines honest credit culture (Cogencis)

* India services PMI improves to 51.5 in Mar from 50.3 Feb (Cogencis)

* Govt extends deadline to link bank accounts to PAN to Jun 30 (Cogencis)

* Source says govt plans to divest at least 5% in Coal India by Aug (Cogencis)

* Oil minister says expect roadmap on oil PSUs integration in FY18 (Cogencis)

* Apax Partners to set aside $1 bln to bet on PM Modi’s reforms (ET)

* Coal secy says aim to give all local coking coal to steel cos 2020(Cogencis)

* Dealers say cement cos up prices by 15-20 rupee/50 kg in Delhi-NCR(Cogencis)

* BSNL earmarks 43-bln rupee capex for FY18, plans 75,000 WiFi sites (ET)

* Dealers say cement price up 15-25 rupee in Bengal, Odisha, Bihar (Cogencis)

* HUL’s parent co Unilever announces share buyback worth 5 bln euros(Cogencis)

* ReNew Power plans IPO to raise up to $600 mln (ET)

* Idea offers 10 GB data for 100 rupees for postpaid users for 3 mos(Cogencis)

* USDA pegs India Aug to Jul 2018 cotton crop 35.9 mln bales, up 4% (Cogencis)

* Official says no rain-related damage to wheat crop in north India (Cogencis)

* HPCL, Rajasthan agree on fincl plan for project (Cogencis)

* SEBI survey shows bk deposits top choice for India retail investors(Cogencis)

* Saudi Aramco interested in buying shr in PSU mega refinery project(Cogencis)

* RJio to withdraw 3-month free ‘Summer Surprise’ offer on TRAI push(Cogencis)

* TRAI says new quality norms for cellular services soon (PTI)

* Toyota says to recall 23,157 cars in India over Takata airbag issue (RTR)

* Will auction Aamby Valley if money not deposited, SC tells Sahara (PTI)

* Toyota recalls 23,157 units of Corolla Altis in India (PTI)

* Jet introducing 15-20% variable pay for senior management (BS)

* ADB scales down India’s FY18 growth estimate to 7.4% (BS)

* Maruti Suzuki MD says entry of new players will help co emerge stronger (BS)

* Google.org offers grants worth $8.4 mln to four NGOs in India (PTI)

*FROM OVERSEAS*

* US weekly jobless claims fall by 25,000 in week ended Apr 1 (RTR)

* JP Morgan CEO Dimon says US exceptional, but ‘something is wrong’ (WP)

* BP cuts CEO’s pay package after shareholder backlash (RTR)

* Unilever restructures after failed Kraft bid (FT)

* Huawei defeats Samsung in patent battle (BBC)

* Iran struggles to expand oil exports as sea storage cleared (RTR)

* 7-Eleven operator to buy US stores from Sunoco for $3.3 bln (RTR)

* Amazon says it will hire 30,000 part-time workers over next year (USA Today)

* Ford to launch plug-in car in China next year, electrify most by 2025 (ET)

* Over 8,000 Uber and Lyft drivers fail Massachusetts background check (var)

* Global air travel demand up in Feb, despite US travel restrictions (ET)

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

*Global Markets Wrap: Thursday, April 06, 2017.*

*Global Markets Wrap: Thursday, April 06, 2017.*

*Asia was in the red, Nikkei drops 0.8%, Kospi falls 0.6%, ASX down 0.3%*

Asian markets fell on Thursday morning, tracking losses on Wall Street after the Federal Reserve released its March Federal Open Market Committee (FOMC) minutes which was viewed as hawkish.

Last month’s FOMC minutes reflected Fed officials’ intention to unwind the central bank’s balance sheet later in the year if economic data continues to hold up.

The Fed currently holds $4.5 trillion in bonds and actions to trim the balance sheet could have a major impact on markets given its magnitude.

Fed Chair Janet Yellen indicated that such a move would be akin to a rate hike.

The Fed warns of “downside risks” to forecasts if “financial markets were to experience a significant correction”.

FOMC Minutes: Balance Sheet To Begin Shrinking This Year; Some Saw Stock Prices At “Quite High” – https://t.co/tbYpmLVvJM

“The reaction here has been quite punchy and it’s interesting that there were no real discussions about a lesser need to hike rates if the balance sheet is also being used as a policy tool – a theme Bill Dudley has been pushing of late,” said Chris Weston, chief market analyst at spread-better IG, in a Thursday note.

Meanwhile, ADP payrolls data showed that 263,000 workers were added in March, higher than market expectations of 185,000. This was also the most number of jobs added since December 2014, suggesting tightening in the U.S. labor market.

Japan’s Nikkei 225 fell 0.81 percent in early trade, with yen strength noted. The Kospi dropped 0.58 percent.

Australian benchmark ASX 200 was lower by 0.32 percent, pressured by its energy and financials sub-indexes.

Traders are also expected to focus on the highly-anticipated meeting between President Donald Trump and Chinese President Xi Jinping, later in the day in Florida.

PBOC weakens the Yuan reference rate 0.03% to 6.8930 against the USD from 6.8906 Wednesday.

In Australia, miner Glencore declared force majeure on coal shipments after Cyclone Debbie hit the northeastern state of Queensland, damaging a railway pass that connected coal mines to ports. Force majeure is typically invoked after events beyond the control of companies, such as natural disasters, occur.

*Economic Data Calendar:*

– China Econ: Caixin PMI Composite 52.1 in March versus 52.6 in February.

– China Econ: Caixin PMI Services 52.2 in March versus 52.6 in February.

– Japan’s March consumer confidence is also on tap.

– Reserve Bank of India’s monetary policy decision due later.

Markets in Thailand and Vietnam are closed for public holidays.

MEDIA PICKS

==HOME FRONT==

* Congress leaders call for Ajay Maken’s removal over ticket distribution(var)

* Govt prepares draft guidelines for accreditation of NGOs (ET)

* AIADMK factions of Panneerselvam, Palaniswami plan reunion (ToI)

* SC dismisses plea to review abatement of appeal against Jayalalithaa (TH)

* Shia body issues fatwa against cow slaughter, backs triple talaq ban (News18)

* Swaraj says attack on Africans “criminal”, cannot be called racial (NDTV)

* Shiv Sena hires chartered flight for MP Ravindra Gaikwad (ET)

* Shiv Sena MP Gaikwad may attend Parliament this week to tell his story (PTI)

* China says Dalai Lama’s Tawang visit will “escalate” border tensions (var)

* Sushma Swaraj warns Pakistan, says entire J&K belongs to India (ZEE)

==FOREIGN AFFAIRS==

* White House chief strategist removed from National Security Council (RTR)

* US warns of unilateral action if UN fails to act on Syria (AFP)

* Suu Kyi denies ethnic cleansing of Myanmar minority (BBC)

* US may widen ban of carry-on computers on planes (AFP)

* Russia denies Assad role in Syria chemical attack, says rebels to blame (RTR)

* Islamic State calls US President Trump “stupid idiot” (PTI)

* Suicide bomber kills at least 7 in Lahore, Taliban claims responsibility (IE)

* Days after metro attack, 6 ‘terrorist’ recruiters detained in Russia (AFP)

* Suicide bombers kill 31, injure at least 42 in Iraq, say officers (AFP)

==BUSINESS AND ECONOMY==

INDIA-RELATED

* Jaitley moves GST Bills for consideration in Rajya Sabha (Cogencis)

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

* Centre OKs 50 more days of work under job plan to 8 drought-hit states (ET)

* Govt mulls easing FDI rules for food retail (FE)

* RJio may generate 213-bln rupee revenue for Reliance Ind, says Moody’s (FE)

* India plans high speed diesel pipeline to Bangladesh (ET)

* Time to build new India, exploit resources, says Vedanta Agarwal (ET)

* Govt says India to become 2nd largest steel producer by 2018 (ET)

* SEBI Chief Tyagi to meet investment bankers over primary market reforms (BS)

* Govt moves Bill to up NABARD’s authorised capital to 300 bln rupees (Cogencis)

* Steel min floats proposal to prefer local steel in govt projects (Cogencis)

* Govt says no plans to demonetise 2,000-rupee notes (PTI)

* LIC softens stance on UTI MF public offer (BS)

* Govt may replace drugs & cosmetics Act, draft to be ready in 5-6 mos(Cogencis)

* RBI, SEBI in talks to resolve issues linked to FPI stake in stocks (Cogencis)

* Former RBI dy governor Gandhi sees payments cos consolidating (Cogencis)

* Tata Motors arm JLR Mar US sales up 19% YoY; Land Rover sales lag(Cogencis)

* M&M Mar total production 50,711 units vs 53,196 year ago (Cogencis)

* Aditya Birla Idea Payments Bk gets payments bank licence from RBI (Cogencis)

* Etihad Airways shuts ticketing and reservation offices in India (ET)

* SEBI survey says FDs score big over equities, MFs for investment (PTI)

* Air India ticket sales to US up by 100% after luggage ban (PTI)

* Prabhu says railways to add 1000 MW of solar, 200 MW of wind energy (PTI)

* NTPC FY18 coal requirement seen at 186.5 mln tn, up 9% YoY (Cogencis)

* BJP Swamy for transfer of private cos’ GST Network holding to PSUs(Cogencis)

* SC bench to hear plea on WhatsApp privacy issue on Apr 18 (Cogencis)

* MTNL says mulling sale of real estate assets to pare debt (Cogencis)

* Uttar Pradesh to pay 10 rupees/100 kg extra for wheat procurement (Cogencis)

* Govt says duty-free sugar import for cos with own refining ops (Cogencis)

* Govt extends sops on onion exports by 3 months, till Jun 30 (Cogencis)

* Essar plans 100-bln rupee port in Gujarat (BS)

* First oil from small field award in 4 months, says bid winner (BS)

* Report says Samsung most trusted brand in India (PTI)

* CRISIL says RBI will have to continue inflation vigil in FY18 (ET)

* ICRA says M&As in road sector pick up over easier exit norms (BS)

* ONGC plans up to 650-bln-rupee investment for exploring KG basin (BS)

FROM OVERSEAS

* UK services PMI rises to 55 in Mar from 53.5 in Feb, beats forecast (BBC)

* JP Morgan chief Dimon backs Trump on relaxed bank rules (FT)

* German economy minister says cash must stay, even in digital age (ET)

* French business activity nears six-year high, PMI shows (ET)

* US agrees to ChemChina’s $43-bln takeover of Syngenta (ET)

* BMW workers in UK to strike over pensions (BBC)

* Toshiba’s Westinghouse replaced chairman 2 days before bankruptcy filing (ET)