Friday usually fine! Flat start for indices

What you risk reveals what you value. - Jeanette Winterson
 
Fridays have usually been cheerful for the indices despite the subdued sentiment which prevails broadly. The Indian equity market breached a three-day losing streak and ended higher after a bounce in crude oil prices. We won’t debate on why higher crude prices should benefit  but that seems to be the only plausible explanation for recent upmove. The budget session of Parliament Budget session of Parliament will begin from February 23. The Union Budget will be presented on February 29. Finance Minister Arun Jaitley expects that the opposition parties will "see reason" and the Goods and Services Tax (GST), which is held up in Rajya Sabha.
 
The indices are set to open on a flat note. Investors may choose to take risks at lower levels given the speed at which stocks come tumbling down intra-day. The next hurdle for the Nifty is seen at 7570 hurdle which support should set in around the 7480 levels. Results will continue to flow on tap today are Lupin, Bosch, Cadila Healthcare, Carborundum, Cox & Kings, Deepak Nitrite, Divi’s Lab, Eicher Motors, Elgi Equipments, Radico Khaitan and Tata Power among others.
 
Asian markets are not exuding confidence for now. Nikkei has lost over a percent while China's CSI300 is marginally lower. Hong Kong's Hang Seng is up 0.7% while South Korea's Kospi is flat. US stock indices finished with modest gains on Thursday after swaying in and out of the positive territory throughout the session. Dow gained 0.5%,  S&P 500 rose 0.2% and Nasdaq was flat up 0.1%. Crude-oil futures reversed early gains and settled 1.7% lower at $31.72 per barrel. Initial jobless claims rose to 285,000 in the last week of January but remained at a low level. Any number below 300,000 is considered a sign of a strong labor market.
 
The productivity of US businesses fell at a 3% annual pace in the fourth quarter, marking the biggest decline since the start of 2014. Orders for goods manufactured in US factories slid 2.9% in December, the Commerce Department said. Investors will be closely watching Friday’s non-farm payrolls data for clue about the state of the US economy.
 
With increase in technology spending estimated by global technology analysts, NASSCOM expects the double digit growth story to continue in FY2017. The IT-BPM industry export revenue is expected to grow by 10-12 per cent in FY2017 reaching revenues of USD 119-121 billion.
 
Releasing the guidelines on steel overcapacity cut, China has decided to cut crude steel capacity by 100 - 150 million tonnes within next 5 years. The Chinese cabinet said today that the steel prices have tumbled to multi-year lows and debt of Chinese steel companies have shot up. This move aims at combating this situation. 
 
The Minister of State for Finance, Jayant Sinha, stressed upon the priority to provide the universal pension security including income security, health and life insurance to the people at large. He said that he believed in the philosophy to empower Indians with tools and knowledge to take ownership of their own retirement. 
 
Honda is recalling an additional 2.2 million Honda and Acura vehicles, according to reports. Report says that the recall is a big chunk of the 5 million additional vehicles to be repaired for Takata inflator problems that U.S. safety regulators announced last month.
 
Gold futures advanced on Thursday, as sustained weakness in the US dollar and safe haven demand for the yellow metal lifted prices to their highest level since late October.
 
Among stocks to watch: 
 
Tata Steel: Tata Steel Ltd, Indian multinational steel-making company, reported consolidated net loss of Rs.2,127.23 crore for the quarter ended Q3FY16. The company’s consolidated revenue stood at Rs. 28,039.02 crore, down by 16.63% yoy.
 
Lupin: The pharma company will announce its Q3 numbers today. IIFL forecasts the company’s net profit for Q3 FY16 to plummet to Rs. 428.6 crore, at 28.7% yoy, bu to rise 4.8% qoq.
 
Reliance Infrastructure: RInfra announced the signing of Share Purchase Agreement with Birla Corporation, the flagship Company of the M P Birla Group in relation to 100% sale of its subsidiary Reliance Cement Company Private Limited.
 
Cairn: The Petroleum Ministry on Thursday told the Delhi High Court that its empowered committee of secretaries (ECS) has decided against granting permission to Cairn India to export crude oil from its Barmer oil & gas block in Rajasthan.
 
Oil & Natural Gas Corporation: ONGC said that it would soon finalise the revised cost estimate for the development of its K-G basin discoveries.
 
Tata Power: The company will announce its Q3 numbers today. IIFL forecasts the company’s net revenue for Q3 FY16 to soar to Rs. 10,074 crore, at 14.4% yoy and 5.6% qoq.
 
Fortis Healthcare: Fortis Healthcare has announced that its Board of Directors have approved the acquisition of a 51% economic interest in Fortis Hospital Ltd (FHTL), a subsidiary of the Religare Health Trust (RHT).
 
Tata Teleservices: Tata Teleservices registered a net loss of Rs. 79.6 crore vs Rs. 155.7 crore qoq.Total income of the company declined 0.6% to Rs. 742 crore for the quarter ended December 31, 2015 vs Rs. 747 crore for the quarter ended September 30, 2015 while other income was reported at Rs. 11.1 crore vs Rs. 25 crore qoq.
 
Tata Motors: Tata Motors launched Signa range of commercial vehicles for haulage and construction segments.
 
Thomas Cook (India): The company reported consolidated net loss of Rs. 13.53 crore for the third quarter ended on December 31, 2015-16. 
 
Torrent Pharmaceuticals: The company’s consolidated revenue stood at Rs. 1,539 crore, up by 31.76% yoy but down by 8.99% qoq.
 
Gillette India: The company’s standalone revenue stood at Rs. 508.38 crore, up by 1.99% yoy and 5.53% qoq.
 
Great Eastern Shipping Company: The company’s consolidated revenue stood at Rs. 947.74 crore, up 7.97% yoy but down 8.29% qoq
 
ABB India:  The company has posted a net profit of Rs. 1294 mn for the quarter ended December 31, 2015 as compared to Rs. 841.60 mn for the quarter ended December 31, 2014.
 
Godrej Consumer Products: Godrej Consumer Products has entered into an agreement with Canon Chemicals Limited, for the acquisition of a majority equity stake in its business in Kenya. Canon Chemicals Limited, a Kenya based company, manufactures and distributes products in the personal and home categories. Its major brand is Valon, a petroleum jelly.
 
Eicher Motors: Eicher Motors will announce its Q3 numbers today. IIFL forecasts the company’s net revenue for Q3 FY16 to soar to Rs. 3,326 crore, at 45% yoy and 6.5% qoq.
 
Talwalkars Better Value Fitness: Talwalkars Better value Fitness Ltd, Integrated in chain of Gyms, fitness clubs and health club, reported consolidated net profit of Rs.5.41 crore for the quarter ended Q3FY16, registering growth of 20.73% yoy.
 
JK Lakshmi Cement: JK Lakshmi Cement Ltd posted a net loss of Rs. 36.70 million for the quarter ended December 31, 2015 as compared to net profit of Rs. 184.80 mn for the quarter ended December 31, 2014. 
 
Sanofi India: The company’s standalone revenue stood at Rs. 568.70 crore, up 11.1% yoy but down 2.92% qoq.
 
Gujarat State Petronet: Gujarat State Petronet Ltd, state-run public sector natural gas transmission company, reported standalone net profit of Rs. 123.47 crore for the quarter ended Q3FY16, registering growth of 39.05% yoy and 13.77% qoq.
 
Hawkins Cookers: Hawkins Cookers Ltd posted a net profit after tax of Rs. 6.6 crore for the quarter ended December 31, 2015 as compared to Rs. 3.1 crore for the quarter ended December 31, 2014. 
 
Whirlpool: Whirlpool of India Ltd, a consumer electronic company, will announce its Q3 results today. IIFL forecasts the company’s net revenue for Q3 FY16 to soar to Rs. 7,480 crore, at 3.7% yoy and 4.8% qoq.  
 
MT Educare: MT Educare, leading education support and coaching service, reported consolidated net profit of Rs.7.84 crore for the quarter ended December 31, 2015, registering growth of 33.79% yoy.
 
Kaveri Seed: Kaveri Seed Company Ltd posted a net profit after taxes, minority interest and share of profit of associates of Rs. 92.304 mn for the quarter ended December 31, 2015 as compared to Rs. 357.860 mn for the quarter ended December 31, 2014. 
 
Mphasis: The company’s consolidated revenue stood at Rs. 1,516.70 crore, witnessing decline of 2.61% qoq but growth of 7.51% yoy.
 
Nitin Fire Protections: The company’s revenue stood at Rs. 387.95 crore, down by 3.05% yoy but down 12.95% qoq.
 
Esab India: Esab India, world's largest supplier of welding and cutting equipment, reported standalone net profit of Rs.4.96 crore for the quarter ended December 31, 2015, registering decline of 2.75% yoy.
 
Other news in the media:
 
Tata Motors launched Signa range of commercial vehicles for haulage and construction segments. (ET)
 
Maruti Suzuki India will launch its smart urban compact car Ignis and premium sports hatchback Baleno RS around the festival season this year. (ET)
 
ONGC has sent an urgent message to Petroleum Ministry, saying the natural gas prices according to a formula approved by the BJP-led government was not viable to develop its KG basin discoveries. (ET)
 
The government told the Delhi High Court its empowered committee of secretaries has decided that Cairn India, the petroleum arm of London-listed Vedanta Resources, cannot be allowed to export excess crude oil production from its Rajasthan oil field (BS)
 
Gurdeep Singh has taken over the charge of Chairman and Managing Director of state-run power generator NTPC. (ET)
 
CIL is planning to acquire coal mines in South Africa in partnership with local government amid falling prices of assets globally. (ET)
 
Zydus Wellness is trying to push its market leading brand Sugar Free beyond coffee cups and tea sips. The company is keen that Indians adopt Sugar Free in their daily life, the myths regarding sugar substitutes notwithstanding, said chief operating officer Tarun Arora. (ET) 
 
Godrej Consumer has acquired a majority stake in Kenya-based Canon Chemicals. Having already acquired other African companies in the last few years, the latest buy is a continuation of the company’s strategy to expand into emerging markets which have higher growth potential. (BL)
 
Leading international insurer, RSA, announced a new seven-year partnership with IT major Wipro Ltd to deliver its IT infrastructure requirements across the UK, Ireland and Scandinavia. (ET)
 
The Budget Session of Parliament will commence on February 23 that will focus largely on the financial business of the government, which will present the General Budget on February 29. (BL)
 
The minister for road transport, highways and shipping, Nitin Gadkari invited suggestions from the auto industry to take ahead the scrappage policy, aimed at replacing 10-year-old vehicles with modern fuel efficient ones that conform to emission standards. (BS)
 
The Government has asked the pension regulator PFRDA to ensure that full range of investment products including alternate investment funds (AIFs) are made available for Indians saving for their retirement. (BL)
 
Prime Minister Narendra Modi is scheduled to inaugurate on Friday the Rs 100 bn gas cracker project in Assam. (ET)
 
In keeping with the Narendra Modi-led NDA government's plan to reach out to people directly, the government has launched a YouTube channel for Finance Ministry.  (ET)
 
The Ministry of Petroleum and Natural Gas plans to extend financial partnerships to startups engaged in the oil sector to give a boost to the 'Startup India' initiative. (BL)