Equity report ways2capital 30 march 2015

Page 1


TECHNICAL VIEW MOVING AVERAGE 21 DAYS

50 DAYS

100 DAYS

200 DAYS

NIFTY BANK NIFTY

8660 19031

8471 18799

8096 17209

8817 19225

NIFTY PIVOT REPORT DAILY

R2 8809

R1 8553

PP 8425

S1 8297

S2 8042

WEEKLY

R2 9609

R1 8873

PP 8505

S1 8137

S2 7401

MONTHLY

R2 11387

R1 9581

PP 8678

S1 7775

S2 5969

BANK NIFTY PIVOT REPORT DAILY

R2 19349

R1 18569

PP 18179

S1 17789

S2 17009

WEEKLY

R2 21356

R1 19338

PP 18328

S1 17319

S2 15301

MONTHLY

R2 27832

R1 21928

PP 18976

S1 16024

S2 10120

NSE EQUITY DAILY LEVELS COMPANY NAME

R3

R2

R1

PP

S1

S2

S3

ACC ALBK

EQ EQ

1676 109

1619 103

1584 100

1561 96

1526 94

1503 90

1445 83

AMBUJACEM ASIAN PAINT AXISBANK BAJAJ-AUTO BANKBARODA BANKINDIA

EQ EQ EQ EQ EQ EQ

261 830 591 2091 175 214

255 805 566 2049 167 205

253 792 556 2034 164 202

250 780 541 2007 159 197

247 767 531 1992 156 193

244 755 516 1965 152 188

238 730 491 1923 144 179


BHEL BHARTIARTL CIPLA COALINDIA DLF DRREDDY GAIL GRASIM HCLTECH HDFC HDFCBANK HEROMOTOCO HINDALCO HINDUNILVR ICICIBANK ITC INDUSIND BANK INFY JINDALSTEL KOTAKBANK LT M&M MRF MARUTI ONGC ORIENTBANK RANBAXY RCOM RELCAPITAL RELIANCE RELINFRA RPOWER SSLT SBIN SUNPHARMA TATAMOTORS TATAPOWER TATASTEEL UNIONBANK

EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ

254 412 718 376 164 3606 406 3746 999 1351 1057 2718 137 925 330 336 914 2368 168 1361 1805 1239 40479 3838 331 220 856 64 452 855 456 59 206 278 1067 539 81 341 169

243 401 711 369 161 3545 395 3684 986 1331 1045 2680 134 899 325 331 901 2299 163 1338 1769 1219 39780 3770 323 213 834 62 439 840 445 58 198 273 1044 571 79 330 163

238 396 708 367 160 3515 391 3652 978 1320 1039 2663 133 889 323 329 896 2255 160 1329 1757 1209 39412 3746 318 209 821 61 431 833 439 57 194 269 1032 561 78 323 159

233 390 705 363 158 3484 385 3623 972 1311 1033 2642 132 873 320 326 888 2229 158 1315 1734 1199 39081 3702 314 207 811 60 427 825 434 56 191 267 1021 549 76 319 157

227 385 702 360 156 3454 381 3591 964 1300 1027 2625 130 863 318 324 883 2186 155 1306 1721 1189 38713 3678 309 203 798 58 419 818 427 55 186 264 1009 538 75 312 153

222 380 699 356 155 3423 374 3561 959 1291 1021 2603 129 847 314 321 875 2160 153 1292 1698 1180 38382 3635 306 200 789 57 414 810 422 55.28 184 262 998 527 73 308 151

211 369 693 350 152 3362 363 3499 945 1271 1010 2565 126 821 309 317 862 2091 148 1270 1662 1160 37683 3567 297 194 766 55 402 795 411 53 176 257 975 504 71 296 146


NSE WEEKLY NEWS UPDATE � Govt to allot coal mines to PSUs After two rounds of auctioning of coal blocks for private companies, the government will on Tuesday allot mines to central and state PSUs. "Allotment of coal blocks to state entities to take place on Tuesday," Coal Secretary Anil Swarup tweeted. The Coal Ministry had earlier received 107 applications from public sector undertakings (PSUs) like NTPC Ltd , Steel Authority of India Ltd (SAIL) , Damodar Valley Corp (DVC) and Neyveli Lignite Corp (NLC) for allocation of 43 coal blocks. The Palma II mine in Chhattisgarh got nine applications, the highest for a single block. "The allotment process for 43 coal mines to government companies started on February 18...Maximum number of applications have been received for Gare Palma sector II coal mine," an official release said. The companies which had applied for Gare Palma II mine in Chhattisgarh include NTPC, Singareni Collieries Co Ltd, Andhra Pradesh Power Generation Corp and Gujarat State Electricity Corp. The government has already garnered over Rs 2 lakh crore by auctioning just 33 blocks, surpassing the Rs 1.86 lakh crore loss estimated earlier by government auditor CAG for allotment of mines without auction. The government is believed to have alloted the three cancelled coal blocks, for which JSPL and Balco had emerged as the highest bidders in the recently concluded auction, to state-owned miner CIL. Parliament last week approved Coal Mines (Special Provisions) Bill, 2015, which forms part of NDA government's reforms agenda, in the nick of time on the last day of the first half of Budget session and the ordinance on this were to lapse on April 5. � RBI allows Sun to transfer Ranbaxy's overseas investments Sun Pharmaceutical Industries has received RBI nod for transfer of overseas investments of Ranbaxy to it and issue its shares to the non-resident shareholders of the latter as part of their USD 4-billion merger deal. In a filing to the BSE, Ranbaxy Laboratories said Reserve Bank of India on Monday gave approval for transfer of overseas investments held by Ranbaxy in its joint venture and wholly owned subsidiaries to Sun Pharma, pursuant to the proposed merger of Ranbaxy with Sun Pharma through a Scheme of Arrangement. The central bank also approved issue of equity shares of Sun Pharma to the non-resident holders of equity shares of Ranbaxy Laboratories, the filing added. The two firms have received nod from the Competition Commission for sale of seven brands to Emcure Pharma to comply with the fair trade watchdog's conditional nod for their merger. In an order issued yesterday, CCI approved the deal with Emcure, which would purchase the 'divestment products' that were ordered to be sold in an earlier direction issued in December last by the Competition Commission of India (CCI). These seven brands were at the core of the CCI's contention that the merger between Sun


Pharmaceutical Industries and Ranbaxy Laboratories was 'prima-facie' in violation of competition laws and therefore the regulator had ordered divestment of those products under its 'conditional' approval to the deal. Despite sale of these products, the merger would create India's largest and the world's fifth largest drugmaker. In December, CCI had directed Sun Pharma to divest all products containing 'Tamsulosin + Tolterodine' which are marketed and supplied under the Tamlet brand name. Similarly, Ranbaxy was directed to divest all products containing Leuprorelin which are marketed and supplied under the Eligard brand name. It also had to divest products such as Terlibax, Rosuvas EZ, Olanex F, Raciper L and Triolvance.

✍ IndiGo heads towards $ 400 mn IPO as air travel booms India's biggest carrier, IndiGo, is preparing to file documents for a stock listing to raise USD 300 to USD 400 million, two sources with knowledge of the plans said, as it looks to cash in on a booming air travel market. IndiGo, owned by hospitality and travel company InterGlobe Enterprises, has remained profitable in the last two years, avoiding much of the turbulence to hit rival Indian carriers. IndiGo has picked Citigroup, Kotak Investment Bank, Morgan Stanley and JP Morgan as lead managers for the listing, with UBS and Barclays also involved, the two sources said. Indigo will file its draft prospectus by the end of May, two sources said. The timing of the market debut itself, however, is not set, a separate source said, and will depend on market conditions. Indigo was not immediately available for comment.

✍ Inox Wind IPO subscribed 18 times The initial public offer of Inox Wind was subscribed 18 times on the last day of the share sale.The IPO received bids for over 43.08 crore shares as against the issue size of more than 2.32 crore shares.The company has allocated shares worth Rs 306 crore to anchor investors. This is the biggest IPO since June 2013.

✍ India's industrial growth rate pegged at 1.8%: ASI The Annual Survey of Industries (ASI) on Tuesday revised the net industrial growth rate to 1.8 per cent for India from 2.8 per cent estimated earlier for 2012-13. The revised estimates of ASI showed gross capital formation grew at a faster pace of 9.8 per cent in 2012-13, against provisional estimates of 9.3 per cent growth without adjusting for inflation. Since the ASI estimates are included in GDP figures, economic growth for the years 2012-13, 2013-14 and 2014-15 is also expected to be revised. The industrial figures given in ASI are in current prices,


while the GDP growth is given in constant prices (adjusted for inflation). Industry grew 2.4 per cent in 2012-13, 4.5 per cent in 2013-14 and is officially projected to grow 5.9 per cent in 2014-15 in the GDP data. India's economy rose 5.1 per cent in 2012-13, 6.9 per cent in 2013-14 and is projected to grow 7.4 per cent in 2014-15 by advance estimates.

✍ CG wins Rs 115 crore order Avantha Group Company CG has bagged a significant order from Power Grid Corporation of India Limited (PGCIL) for the supply of 80 MVAR 765kV Shunt Reactors valued at Rs 115 Crore. The scope of this contract to be executed in 20 months includes design, engineering, manufacture, shop testing, supply, erection testing and commissioning at site, and other associated civil works. These reactors will be installed at PGCIL’s Vemagiri and Srikakulam Sub-stations in the state of Andhra Pradesh and will add to the existing population of over 100 CG made reactors already in commission in PGCIL’s UHV network. This order reinforces CG’s existing leadership in the UHV transmission segment in India and its long standing relationship with the Central Transmission Utility. As rapid urbanisation and industrialisation adds millions of new consumers in the country, a robust UHV infrastructure will be the backbone of the power sector and CG is well positioned to serve the utilities for their future growth plan with its complete UHV range”.

✍ SEBI passes order against 11 cos raising funds from investors The Securities and Exchange Board of India (SEBI) has passed orders against 11 companies that are raising money from a large number of investors without obtaining regulatory approvals SEBI has barred these companies from raising fresh funds, prohibiting their directors from dealing in the securities market and barring them from disposing of any assets until a final order is passed. The companies that have faced Sebi action include Asoka Life Science Ltd, Astha Techno Realty India Ltd, Cell Industries Ltd, Goldmine Food Products Ltd, GSHP Realtech Ltd, Infocare Infra Ltd, Jeevan Suraksha Real Estate Ltd, MARS Agrofarm Developers Ltd, Maxbe Green Provision Ltd, Rista Fisheries and Infrastructure Ltd and Sunshine Hi-Tech Infracon Ltd. The cumulative amount raised by the 11 entities is nearly Rs.110 crore, according to the Sebi orders put up on the website of the regulator.


✍ Opposing views: Govt, RBI remain at odds over Monetary Policy Committee The Finance Ministry may not accept the Reserve Bank of India’s proposal that it should have complete say in the constitution of the Monetary Policy Committee (MPC), according to a media report. The central bank is of the view that since the primary responsibility of controlling inflation lies with it, therefore it should be empowered to constitute the committee, the report added. Earlier this month, the finance ministry and RBI had signed a monetary policy framework to curb inflation. The objective of monetary policy is to primarily maintain price stability, while keeping in mind the objective of growth. The RBI will aim to bring inflation below 6% by January 2016. The inflation target will be 4% for FY17 and all subsequent years. In his budget speech on February 28, Finance Minister Arun Jaitley announced RBI and the finance ministry had agreed to a monetary policy framework including an inflation target of 4% with a band of 2% on either side. But no details on the composition of a monetary policy committee (MPC) were announced due to lack of consensus.

✍ SEBI eases IFSC norms for intermediaries The Securities and Exchange Board of India (SEBI) on Friday allowed any Indian or foreign stock exchange to set up a subsidiary in an International Financial Service Centre (IFSC). SEBI on Friday allowed domestic and foreign stock exchanges and clearing corporations to form a subsidiary to provide their services by having an initial minimum networth of Rs 25 crore and Rs 50 crore, respectively, which could be enhanced to Rs 100 crore and Rs 300 crore over the period of three years from the date of approval. These guidelines may be called the Securities and Exchange Board of India (International Financial Services Centres) Guidelines, 2015. They shall come into force on April 01, 2015. India’s first IFSC is being set up at Gujarat International Finance Tec-City (GIFT City) near Ahmedabad in Gujarat. SEBI said any Indian or foreign stock exchange can form a subsidiary in IFSC where at least 51 per cent of equity capital is held by such exchange and remaining shares should be offered to any other recognised stock exchange, whether Indian or of foreign jurisdiction. Besides, the stock exchange or clearing corporation could hold at least 51% of the paidup share capital and the remaining stake could be offered to any other Indian or foreign stock exchange or clearing corporation. The regulator has also exempted these intermediaries from certain provisions such as the stock exchange not needing to credit 25% of its profits every year to the fund of the clearing corporation which clears and settles trades executed on that stock exchange.


✍ Idea gains 2% on 3G launch in Delhi Idea Cellular has touched a high of Rs. 173 in early trade on the BSE following positive news flow. According to a release issued by the company to the BSE, Idea has launched 3G services in Delhi on the 900 MHz spectrum. The stock is now up 2 per cent at Rs. 173, and around 25,000 shares have been trades so far at the counter on the BSE.

✍ GMR Infra spurts on debt cutting plans GMR Infra jumped nearly 2 per cent to touch a high of Rs. 15.85 in opening trades on plans of reducing debt. According to media reports, GMR Infra plans to raise up to Rs. 4,000 crore over the next one year through divestment of assets and share sale to reduce debt and improve cash flow. The stock is now up 1.3 per cent at Rs. 15.75 and around 98,000 shares have changed hands at the counter on the BSE

✍ Arvind, US Polo to pay settlement amount to RLC With reference to earlier announcement dated October 10, 2013 regarding the Ralph Lauren Corporation USA (RLC) had instituted a suit in the United States District Court, against US Polo Association, USA (USPA) and Arvind Limited, India alleging breach of agreement between Ralph Lauren Corporation, USPA and Arvind Limited on account of non compliance in respect of disclaimers to be printed on USPA products sold in India. Arvind Lifestyle Brands Limited, (ALBL), subsidiary of Arvind Limited, has license to manufacture and market USPA branded products in India. Arvind Ltd has announced that the Parties thereafter got into good faith discussions and agreed to enter into an amicable settlement without admission of liability of any party. Under the terms of the settlement, ALBL and USPA have agreed to pay jointly settlement amount to RLC. As per the settlement Agreement, ALBL shall pay US $3,200,000 in full settlement and satisfaction of the dispute between the Parties

✍ Not now! Union Bank postpones plans to raise funds via QIP issue Union Bank of India has postponed its plan to raise Rs. 1,386 crore fund through qualified institutional placement (QIP) to the next fiscal, according to a media report. In June 2014, Union Bank has already taken the approval of its shareholders for extension of approval for raising capital, the report added. The Bank also plans to raise Rs 2,000 crore capital through


issuance of Additional Tier 1 Bonds. It would be Basel III compliant Tier 1 perpetual bonds, the report further said.

� Good bye India! Few foreign AMCs plan to exit India Many foreign mutual fund houses in India are planning to exit from from the country. The reports have quoted that foreign AMCs that are planning to exit their business from India include JP Morgan Asset Management (India) Pvt Ltd, Deutsche Asset Management (India) Pvt Ltd and Goldman Sachs, according to a report. As of December 2014, JP Morgan Asset Management (India) had average assets under management of Rs. 14,124 crore, Deutsche Asset Management (India) Rs. 22,670 crore and Goldman Sachs Asset Management (India) Rs. 6,832 crore.

� 395 listed companies lack women directors Over 395 listed companies are yet to appoint women directors on their boards as on March 25, even as the SEBI has warned of consequences for non-compliance. "395 of 1,478 listed companies on the National Stock Exchange (NSE) do not have any female representation on their respective Boards as on March 25," according to a data compiled by Prime Database. SEBI vide its circular dated 17th April 2014 has made it mandatory for all the listed companies to appoint atleast one Woman Director on their Board of Directors by 31 st March, 2015 in alignment with the requirement of Section 149 of the Companies Act, 2013, under corporate governance norms. According to Companies Act 2013, all listed companies, and public companies having a paid-up capital of Rs. 100 crore or turnover of Rs.300 crore, should have a woman director on their board. SEBI is very serious on the compliance to these norms and has proactively sought the action initiated to ensure compliance with the aforesaid requirement for the companies that are yet to appoint a Woman Director on their board. These guidelines, part of Sebi's Corporate Governance Code, were issued way back in February 2014 and the initial deadline of October 1, 2014 was extended by another six months. The SEBI warned that there will not be anymore extensions and strict action will be taken against companies who do not appoint at least one woman on its board by the end of March 31, 2015. As per SEBI, nearly one-third of the top-500 listed firms in India do not have any woman member on their Boards yet.


✍ SBI wins ‘Brand of the Year’ Award at The World Branding Awards in Paris State Bank of India won the ‘Brand of the Year’ award in banking in India at The World Branding Awards that took place in Paris, France on March 25th, 2015. The glittering ceremony at the iconic Hilton Paris Opera honored 50 brands from 22 countries. The second installment of the World Branding Awards 2014-2015 had an emphasis on food, beverage, luxury, fashion, lifestyle, hospitality, and service brands. The premiere Awards was held in London last year. The Awards is organised by the World Branding Forum (WBF), a global non-profit organisation dedicated to advancing branding standards for the good of the branding community as well as consumers. It organises and sponsors a range of educational programmes, including collaborations with leading universities and museums. Other national tier winners from Asia included China Telecom; Indosat (Indonesia); NTT Docomo (Japan); SK Telecom (Korea); Pos Malaysia; SMRT (Singapore); and Chunghwa Telecom (Taiwan). Each brand was named “Brand of the Year” in their respective categories. Global winners included Cartier, Club Med, Evian, Gillette, Gucci, Hermès, Hilton Hotels and Resorts, IKEA, L’Oréal, Moët & Chandon, Nike, Prada and UPS.

Top corporate news of the day ✍ UPL is buying a 40% equity stake in Brazilian firm Sinagro group, which is a distributor of farm inputs-crop protection, fertilisers and seeds in the Cerrado region of Brazil. ✍ Grasim Industries has ventured into retailing women garments made of viscose staple fibre. The company’s subsidiary, Birla Cellulose, launched the garment brand Liva, which will be available at 1,000 outlets across 50 cities. Government is likely to exempt oil producers ONGC and Oil India Ltd from payment of fuel subsidy in the fourth quarter ending March 31, a senior Petroleum Ministry official said. ✍ NMDC limited will complete the construction of the 3 million tonnes per annum (Mtpa) integrated steel plant in Nagarnar in Chhattisgarh by 2016. To capture a pie of the flourishing online retail business, Ashapura Intimate Fashion (AIFL) plans to launch its own e-commerce venture in April. The launch will coincide with the launch of physical stores in major cities across the country.


The Taj Group announced the opening of Taj Dubai located in the Burj Khalifa downtown area in Dubai. This hotel has 296 rooms including 2 lavish suites. ✍ SpiceJet plans to lease seven more Boeing 737 aircraft by May while another Rs5bn is expected to be infused by its new owner Ajay Singh next month. Prime Minister Narendra Modi is expected to announce a Rs360bn capacity expansion plan for SAIL's Rourkela steel plant when he inaugurates the modernised unit of the state-owned firm on April 1. ✍ Union Bank of India has deferred its plan to raise Rs13.86bn fund through qualified institutional placement (QIP) to the next fiscal. (BS) ✍ GlaxoSmithKline has reached a deal with the British government to supply a new meningitis B vaccine, following a lengthy stand-off over price with the product's previous owner Novartis. ✍ Strides Arcolab has launched its generic drug Sofosbuvir in India under the brand name 'Virso'. This drug, which is used for Hepatitis C treatment and is shown to have cure rates of around 90%, according to Strides officials. The construction wing of Larsen & Toubro – L&T Construction – has secured orders worth Rs17.11bn during March. ✍ Jet Airways launched daily international flights to Abu Dhabi from Pune, Ahmedabad and Mangalore. To tap into the growing middle class, travel services provider Thomas Cook is working on a model to reach out to its customers by setting up small outlets in high footfall areas such as malls and markets.

In the new mechanism for gas based power plants, the key suppliers GAIL and GSPL would have to fore go 50% of their transmission tariff and 75% of marketing margin in supplying imported R-LNG, said a senior power ministry official.


Eyeing leadership in the Super Sports segment, Bajaj Auto launched the Pulsar Rs. 200 bike, priced at Rs118.5k and Rs130.3k for the non ABS and ABS versions respectively, ex-showroom Maharashtra. ✍ With the production of thermal coal on the rise, the government is hopeful that state-owned Coal India will surpass its 1bn tonne excavation target by 2020. ✍ IRB Infrastructure Developers said it will raise Rs.4.4bn through an issue of shares to institutional investors. ✍ Mahindra & Mahindra has expressed an interest in buying car designer Pininfarina but no deal has been reached yet, the Italian company confirmed. ✍ Ultratech Cement said the Rajasthan High Court has “quashed and set aside” a state government order relating to cancellation of a limestone mine owned by a subsidiary of the company. ✍ Tata Consultancy Services (TCS) launched a smartphone application here that allows users to track, analyse and visualise Twitter conversations about the UK General Election to be held in May. ✍ Emami Ltd has given a new look to a BoroPlus prickly heat powder variant for this summer, which, Besides providing an antiseptic shield against the harsh weather conditions, the product formulation of BoroPlus Ice Prickly Heat Powder also offers cool sensation (BL) ✍ Reliance Industries has countered government's assertion that power plants were lying idle due to fall in output from its KG-D6 fields, saying most of these units were built much before the fields were even discovered. ✍ Gayatri Projects said it has bagged a contract amounting to Rs1.8bn from Hyderabad Growth Corridor Corporation Limited for the road stretch between Shamirpet to Keesara. The Odisha government said it has invited the US-based Alcor Inc and engineering major L&T ✍ Construction Company to discuss their proposals for setting up a helicopter manufacturing and assembly unit.


✍ HDFC Bank said Andhra Pradesh and the newly-formed Telangana stood top on the bank's high-growth avenues and added the regions would see expansion in branch network in the next two to three years. ✍ Sun Pharmaceutical Industries, India's largest drugmaker, announced closure of its merger with Ranbaxy Laboratories and said the integration will deliver synergies worth $250mn (over Rs15bn) in three years State-owned oil and gas explorer ONGC is making an investment of Rs400bn in Krishna-Godavari basin in a phased manner in the next four years. Hiking its stake in Delhi International Airport to 64%, GMR Infrastructure will acquire an additional 10% equity for $79mn from Malaysia Airports Holdings Berhad (MAHB), which is exiting the venture. ✍ Drug major Cipla announced the launch of generic drug Sofosbuvir for treating chronic Hepatitis C under the brand name 'Hepcvir', in India. ✍ Hindustan Construction Company Ltd (HCC) has secured an arbitration award of Rs2bn for the extension of time (EOT) cost claim in Lucknow - Muzaffarpur National Highway Project. ✍ Tata Motors, India's biggest automaker, has secured board of directors approval for an Rs75bn rights issue to fund its on-going and future activities. ✍ Rural Electrical Corporation (REC) said it has already sanctioned financial assistance of Rs57bn to various utilities in the power sector in the ongoing fiscal. India's third-largest IT services exporter Wipro is setting up a "commando force" unit next month that will target clients seeking to speed up automation and do more business online, an executive told Reuters. ✍ Pune-based Praj Industries Ltd (Praj) has signed a memorandum of understanding (MoU) to become a licensee for bio-fuels company Gevo. The agreement is for producing renewable isobutanol at sugar-based ethanol plants.


✍ Gujarat State Fertilizers & Chemicals Ltd (GSFC) said it has lined up an investment of Rs150bn to expand capacity over the next two years. Public sector undertaking Rural Electrification Corporation Limited (REC) has signed a memorandum of understanding with the Telangana State Generation Corporation (Genco) to provide a funding of Rs240bn for the latter's power projects. ✍ Alstom Transport India will supply coaches to Kochi Metro Rail Ltd at a cost that will be lower compared with the ones supplied to other metro projects in the country.

✍ YES Bank is going for a second round of infrastructure bonds to mop Rs10bn for projects in transport and energy. ✍ Educomp Solutions has launched SmartclassOnline, an e-learning platform for students, parents, teachers and the school administration to improve the learning process.


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