Nifty Eyes 8150; SBI Tanks 5%, Auto & Oil Stocks Lead

Bussing stocks11:55 am Exclusive: Speaking to CNBC-TV18 from the sidelines of Pune Inc Conclave Power Minister Piyush Goyal said demonetization has huge advantages. It will take India to digital banking and make it a cashless society.

He said the government will use the money from demonetization to pump prime economy.

When asked what one should expect from the Union Budget on February 1, Goyal said ‘Good things’. He said: “The Finance Minister over the last three Budgets – July’14, Feb’15 and Feb’16 has consistently worked on a series of measures. He focused on a sustainable framework for India’s development.”

FM Arun Jaitley never tinkered with rates, minor changes but looked at structural improvements, so that India could move towards and economy, which like China sees 2-3 decades of high-level growth, said Goyal.

11:45 am Sameer Nair Group CEO of Balaji Telefilms says that new shows have a much lower margin and hopes to have 10 shows on air by FY17 end.

TV business gross margin is likely to be up 25 percent by this fiscal year, he believes.

The plan now is to get next releases of movies in the next fiscal year, he says, adding that film business will likely book profit in FY18.

Balaji Telefilms will look to air new shows on Sony, Sun TV and Doordarshan.

11:30 am Exclusive: The demonetization move by the government on November 8 seems to have put the buzzing FMCG sector on a pause mode.

Industry sources told CNBC-TV18 that top FMCG companies like HUL , Nestle India , ITC, as well as Dabur are adopting a ‘wait and watch’ mode with regards to new product launches and may defer new launches of high-end, premium products by one-two quarters.

They would look at geography specific launches to minimise the impact of demonetization, say sources, adding that the worst hit categories are luxury chocolates, premium cookies and ice-creams.

Nestle, ITC may defer launches in premium chocolate, confectionery & cookies space, and HUL, Dabur may defer product launches in premium personal care space, say industry sources.

The market has recovered from early weakness but the Nifty is almost nearing 8150. The 50-share index is up 6.80 points at 8121.10 and the Sensex is up 21.34 points at 26337.68. About 1457 shares have advanced, 652 shares declined, and 112 shares are unchanged.

Bharti Airtel, Cipla, Hero MotoCorp, BHEL and Bajaj Auto are top gainers while ICICI Bank, Wipro, TCS and Axis Bank are losers in the Sensex. SBI is down 5 percent intraday on Monday after RBI increased cash reserve ratio (CRR).

India is proving to be immune from the heavy selling in global emerging market debt, as Prime Minister Narendra Modi’s clampdown on undeclared cash has sparked expectations of a rate cut and pushed issuers to take advantage of low yields.

Indian Railways Finance Corporation, NTPC, Vedanta Resources, Exim India and Axis Bank all rushed to print rupee notes last week to access cheaper funding.

“The debt market is very compelling,” said Killol Pandya, head of fixed income at Peerless Funds Management. “Issuers that were otherwise going to banks are approaching the bond market as banks are yet to cut lending rates.”

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Results to watch out for! BEML, SpiceJet, Bata India in focus

Top Results Today CapitalHeightThe results that are expected today are BEML, SpiceJet, Bata India, Indo Count Industries, Hathway Cable & Datacom, Navkar Corp,Balaji Telefilms, Shilpa Medicare, Tide Water Oil India, Uflex, Borosil Glass Works, Godawari Power And Ispat, RCL Foods.

Stock Commentary:

SpiceJet Ltd ended at Rs 64.2, up by Rs 2.6 or 4.22% from its previous closing of Rs 61.6 on the BSE. The scrip opened at Rs 61.5 and touched a high and low of Rs 64.5 and Rs 60.55 respectively. A total of 4145018(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs 3860.46 crore.

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Sensex, Nifty to Open On a Flat Note

Dalal Street CapitalHeightThe outlook is a flat start as the December series begins with a heavy build-up of short positions. Asian markets opened in the green with commodities leading the charge as the yen hits 113 to the US$. The Japanese Nikkei stock index has entered a new bull market as exporters benefit from the falling yen. The Nikkei has risen from levels of sub 15000 on Brexit day to over 18000 today, which is further seeing flows unabated as investors chase higher returns in developed markets.

The demonetization drive is coming under severe criticism from the Opposition parties with former Prime Minister Manmohan Singh terming it as a ‘monumental failure’ in its implementation.

The Finance Minister shot back citing a litany of scams that had emerged during the previous government’s rule. One thing is for sure. The demonetization has sent most calculations awry – be it GDP growth, tax collections or the serpentine queues waiting for their money in cash form. The rupee continues to struggle breaching its Aug 2013 lows and is flirting near the 69 per dollar mark.

Foreign investors are net short 3,086 contracts in the index futures. The rollovers were better than anticipated at 61 pc but much lower than the three-month average of 75 pc. A strong earthquake rattled Central America raising concerns of tsunami waves. Oil prices moved higher ahead of next week’s crucial OPEC meet.

Nifty saw sub 8000 expiry as foreign selling kept the pressure on financial stocks even as metals outperformed. With the worst November series since 2013 we now head into the last series of 2016 with pessimism more out of shock & perception rather than actual. Domestic flows continue to be strong with retail & institutions buying aggressively. For today expect pull back in auto, banks & IT while profit booking in Metals & Pharma may be on the cards.

Among the stocks to watch are:

Sun Pharma: The US drug regulator has found seven breaches of manufacturing standards at Sun Pharmaceutical Industries Ltd’s formulations plant in Mohali, Punjab, following a recent inspection.

SpiceJet: SpiceJet will announce its Q2 numbers today.

Vardhman Textiles: The board of the company has approved buyback proposal for up to Rs 720 crore.

Suven Life Sciences: The company on Thursday reported a net profit of Rs 26.6 crore against Rs 25 crore in the corresponding quarter last year.

Aurobindo Pharma Ltd: Aurobindo Pharma is scouting for acquisitions in Europe to gain a foothold in the market, as per media reports.

Reliance Industries: A flash fire broke out at Reliance Industries’ Ltd refinery complex at Moti Khavdi near Jamnagar on Thursday in which some contract workers were injured, the company said.

Wipro: The company has informed bourses that it has granted 5,000 Restricted Stock Units under Restricted Stock Unit Plan 2007 effective November 1, 2016 to its identified employee.

Khaitan (India): The company has infomed bourses that it has submitted an application for reference to the Board for Industrial and Financial Reconstruction (BIFR) as it has become a sick industrial company pursuant to the provisions of Sick Industrial Companies (Special Provisions) Act, 1985 (SICA).

Jindal Poly Films: Jindal Poly Films reported a consolidated net profit of Rs 77 crore for the September quarter, lower than the Rs 99.9 crore in the year-ago period.

Talwalkars Better Value Fitness: The management has decided to demerge gym business, thereby transferring gym business of TBVFL to TLL, in the interest of maximising overall shareholder value.

TCS: Tata Consultancy Services is rethinking how it appraises its over 3,70,000 employees after scrapping the Bell Curve model.

Sterlite Technologies: Sterlite Technologies on Thursday informed bourses that CrisilBSE -1.33 % has upgraded the Long term credit rating to ‘CRISIL AA-/Stable’ from ‘CRISIL A+/Watch Developing’ and Short term credit rating have been upgraded to ‘CRISIL A1+’ from ‘CRISIL A1 /Watch Developing’.

LT Foods: The company has inked a 51:49 joint venture with Kameda Seika, to sell rice-based snacks in India.

Natco Pharma: Natco Pharma has received final approval from the US health regulator for generic version of Budesonide capsules used for treatment of active Crohn’s disease for the American market.

YES Bank: The bank announced a partnership with Gujarat State Road Transport Corporation (GSRTC) to digitise payment of bus tickets for its customers.

Results Today:  BEML, SpiceJet, Bata India, Indo Count Industries, Hathway Cable & Datacom, Navkar Corp,Balaji Telefilms, Shilpa Medicare, Tide Water Oil India, Uflex, Borosil Glass Works, Godawari Power And Ispat, RCL Foods.

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Balaji Telefilms’ board meeting on November 25, 2016

Balaji Telefilms LtdBalaji Telefilms Ltd. has informed BSE that a Meeting of the Board of Directors of the Company is scheduled to be held on November 25, 2016, inter alia, to consider, take on record and approve, the Unaudited Standalone and Consolidated Financial Results of the Company and Limited Review Report by Statutory Auditors for the quarter and half year ended September 30, 2016.In this connection, in terms of the Code of Conduct adopted by the Company for prevention of insider trading in the securities of the Company pursuant to the provisions of Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015, the trading window of the Company will be closed for trading in the Company�s equity shares for Directors / Designated Employees from November 18, 2016 to November 27, 2016 (both days inclusive).Source : BSE

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