Market Strategy - Jan 11 2016

8K Miles Software Services: The company registered a revenue growth of 21% in the quarter ending December. The Net Profit of the company stood at Rs. 11.3 crore in FY16 Q3 as compared to Rs. 8.7 crore in Q2 and Total Income at Rs. 74 crore FY16 Q3 Vs Rs. 61.1 crore in Q2.
 
Bharat Forge: Bharat Forge announced plans to set up an integrated auto component hub in Nellore, Andhra Pradesh at an investment of INR 1,200 crore. The project is likely to create 3,000 jobs.
 
Reliance Industries Ltd, ONGC: RIL has challenged the jurisdiction of the Justice A.P. Shah Committee and has decided not to cooperate in the resolution of the natural gas dispute with ONGC, reports a business daily.
 
Sobha Ltd: The real estate company has achieved new sales of 8.06 lakh square feet (sft) in third quarter of FY16 valued at INR 478.30 crore with an average realisation of INR 593.20 per sft.
 
Reliance Infrastructure: Birla Corp has emerged as the frontrunner to acquire Reliance Infrastructure's cement business, reports a business daily. Birla Corp is currently the only potential buyer engaged in advanced commercial negotiations with Anil Ambani-promoted Reliance Group, adds the financial newspaper.
 
Sintex Industries: The company has posted Q3 net profit at Rs. 1,800.97 mn for the quarter ended December 31, 2015 as compared to Rs. 1,620.38 mn for the quarter ended December 31, 2014.
 
Lanco Infratech: Lanco Infratech Ltd has that a Subsidiary of the Company, Lanco Kondapalli Power Limited has successfully declared Commercial Operations Date (COD) for its expansion capacity of 371 MW (Phase III B Project) with effect from January 09, 2016.
 
Hindustan Zinc Ltd: The company is planning to invest Rs. 8,000 crore in the next 3-5 years, according to reports.
 
Ashok Leyland Ltd: The company has received an order for 680 Vehicles and Spare Parts, worth US$ 50 mn. from the Ministry of Local Government, Public Works and National Housing, Government of Republic of Zimbabwe.
 
Ricoh India: The company has partnered with Siemens to offer digital lifecycle management software. 
 
Sterlite Tech: Sterlite Grid, India’s largest private developer of independent power transmission systems has received the Letter of Intent (LoI) to commission power evacuation infrastructure in Odisha for local power projects. 
 
IFCI: IFCI Ltd has reduced its benchmark rate, IFCI Benchmark Rate (IBR)" from 12% p.a. to 11.70% p.a. with monthly rests. 
 
Spice Mobility Ltd: Spice Mobility Ltd has announced that Spice Digital Limited (SDL) has acquired 22.54% equity stake in Sunstone Eduversity Private Limited, a Company incorporated for the purpose of engaging in the line of education business.
 
Glenmark Pharmaceuticals: Glenmark Pharmaceuticals S.A. (GPSA), a wholly owned subsidiary of Glenmark Pharmaceuticals Ltd India, has announced the discovery and initiation of IND-enabling studies for a novel clinical development candidate, GBR 1342. 
 
Sun Pharmaceuticals: Sun Pharmaceuticals arm gets USFDA approval for generic of Naftin, as per media reports.
 
Ashoka Buildcon: The company has announced regarding the acquisition of stake in Jaora-Nayagaon Toll Road Company Private Limited. Ashoka Concessions Limited (ACL) has received transfer of 4,23,03,800 (which is 14.74% of share capital of JTCL) equity shares of Rs. 10 each fully paid up from SREI.
 
Inox Wind Ltd: Gujarat Industries Power Company Ltd has informed BSE that the company has issued Letter of intent (Lol) dtd. December 31, 2015 to Inox Wind Ltd., Noida, U.P. State, for installation of 26 MW Wind Energy Farm Project at Rojmal Site, Dist: Amreli, Gujarat, on EPC basis, with Operation & Maintenance Contract for twenty years. The said Wind Energy Farm Project is scheduled to be completed by December, 2016.
 
Virinchi Technologies Ltd: The Board of the company has approved the proposal to Lease the Building owned by M/s Virinchi Technologies Limited, situated at pothaipally, Hakimpet to M/s. Vivo Bio Tech Ltd on such terms and conditions as may be agreed, subject to approval of shareholders by postal ballot.
 
Results: Alankit, Excel Castronics, Genomic Valley Biotech,Jasch Industries, Mercury Metals, Siddha Ventures, Welcure Drugs & Pharmaceuticals and Yuvraaj Hygiene Products.
 
Global Data: Coming-of-Age DayJPY, ANZ Job Advertisements (Dec)AUD, M2 Money Supply (YoY) (Dec) CNY, New Loans (Dec) CNY, Industrial Output Cal Adjusted (YoY) (Nov) EUR, Real Retail Sales (YoY) (Dec)  CHF, Sentix Investor Confidence (Jan) EUR, Housing Starts s.a (YoY) (Dec) CAD, Labor Market Conditions Index (Dec) USD, Bank of Canada Business Outlook Survey CAD, 3-Month Bill Auction USD, 6-Month Bill Auction USD, Fed's Lockhart speech  USD, Bank lending (YoY) (Dec) JPY, Current Account n.s.a. (Nov) JPY, Trade Balance - BOP Basis (Nov) JPY
 
Trends in FII flows: The FIIs were net sellers of Rs. 12.36 bn in the cash segment on Friday. The domestic institutional investors (DIIs) were net sellers of Rs.10.04 bn as per the provisional figures released by the NSE.
 
Other news in the media:
 
Reliance Industries has disputed the one-man AP Shah Committee constituted by government to decide on the firm's KG gas dispute with ONGC, saying the panel has no legal basis and only arbitration can decide on such disputes, as per the contract. (BS)
 
Hindustan Zinc is planning to invest Rs80bn over the next 3-5 years to increase its ore and finished metal production. (ET)
 
Bharat Forge announced plans to set up an integrated auto component hub in Nellore in Andhra Pradesh and said it will invest Rs12bn and create 3,000 jobs. (ET)
 
Lanco Kondapalli Power Limited, a subsidiary of Lanco Infratech, has operationalised a 371 Mw unit of Kondapalli Power Project at Vijayawada in Andhra Pradesh. (BL)
 
Ashok Leyland Ltd has received a US$50mn worth order for vehicles and spare parts from the Government of Zimbabwe. (BS)
 
Ricoh India Ltd is planning to set up a data centre and business zones in India with an investment of around Rs3bn in the next two years. (ET)
 
DLF said that it would begin handing over flats in its 1,830-apartment residential complex in Bengaluru, after a division bench of the Karnataka High Court dismissed a public interest litigation against the project. (BL)
 
Maruti Suzuki will launch a compact sports utility vehicle Vitara Brezza next month. (BS)
 
IVRCL, has bagged two drinking water supply project contracts valued Rs3.5bn from Karnataka government agencies. (BS)
 
As many as 40 domestic and multinational financial giants, including Citigroup, Barclays and ICICI Bank, have sought to partner India Post for its upcoming payments bank, Union Minister said. (BS)
 
Indian companies raised a record Rs4,760bn in 2015 through private placement of corporate bonds to meet business needs amid weakness in the equity markets. (BL)
 
Gross earnings of South Eastern Railway (SER) in the first 9 months of this current fiscal has gone up by 8.76% to Rs91.7bn compared to its earnings in the same period last year. (ET)
 
Railway Minister described the Kolkata-New Delhi railway corridor as the most "congested" in the country and said collaboration with several countries is being done to revamp the network. (BS)
 
The Cabinet is likely to approve by the first week of February a new power tariff policy with focus on clean energy, better regulation of discoms and faster roll out of investments, Power Minister has said. (ET)

Gap down for the market today

Indian equity benchmarks are poised to open lower on Monday as markets in Asia succumbed to a severe sell-off as dismal China inflation data fanned further concerns over the health of the world’s second biggest economy, souring risk taking appetite. The CNX Nifty Index futures for January delivery fell by 0.58 per cent or 44 points at 7,560 at 10:26 am Singapore time, a sign that Dalal Street may witness a bearish opening today. Producer prices in China fell for a record 46th month on the trot in December while consumer inflation remained at about half of the government’s 2015 target, signaling further economic weakness in the country’s economy, making global investors jittery. Back home, traders will eye the start of the Q3 corporate earnings season with big names such as TCS, Infosys, Hindustan Unilever, Zee Entertainment and IndusInd Bank set to unveil their December quarter report cards this week. Further, the December consumer and wholesale inflation numbers, and the November industrial output data are due this week, with analysts expecting retail inflation to have accelerated to 5.6 per cent from 5.41 per cent in November 2015, and IIP growth to have slowed to 3.1 per cent from October’s five-year high of 9.8 per cent, on an annual basis. Sentiment this week will continue to be dictated by global developments with China remaining in focus, while movement of the rupee against the dollar and crude oil prices will also influence sentiment at domestic bourses. On Friday, the 30-share Sensex snapped a four-day losing streak, advancing by 82.5 points or by 0.33 per cent to end at 24,934.33 as the China rout that had sucked global financial markets on Thursday erasing as much as USD 4 trillion from equities worldwide last week, eased after the country’s officials scrapped a controversial market circuit breaker system and refrained from a further weakening of the Yuan. However, the Sensex plunged by 1,226.57 points or 4.68 per cent last week on concerns over heightened middle east tensions amidst the Saudi-Iran diplomatic row and worries over China.

Asian markets slid on Monday after China’s December inflation data disappointed traders, raising fresh fears over Asia’s biggest economy. China’s Shanghai Composite fell 0.69 per cent and Hang Seng tumbled over 2.4 per cent after Chinese producer prices plunged 5.9 per cent in December 2015 from the same month a year ago, while consumer inflation stood at 1.6 per cent, compared to the government’s 2015 target of 3 per cent, signaling weak demand in the country’s economy. Japan’s Nikkei 225 fell nearly 0.40 per cent as a stronger yen curbed the lure for exporter stocks. Wall Street sank on Friday, marking the worst week since 2011 as China’s continued depreciation of the Yuan threatened to start a global currency war while signaling that the China slowdown was worse than feared. Traders cast aside a blockbuster December jobs report which showed that employers added nearly 300K jobs while the unemployment rate remained at a seven-year low, lifting the outlook for the world’s biggest economy. Non-farm payrolls in the US climbed by a whopping 292,000 in December, following an upwardly revised 252,000 gain in November and topping expectations of a 200,000 advance. The Dow Jones Industrial Average plunged 1.02 per cent; the Nasdaq Composite dropped 0.98 per cent while S&P 500 fell 1.08 per cent.

Top traded Volumes on NSE Nifty – Vedanta Ltd. 14021580.00, ICICI Bank Ltd. 13094901.00, State Bank of India 11745840.00, Axis Bank Ltd. 11307470.00 and Tata Motors Ltd. 8770370.00.

On BSE, total number of shares traded was 36.52 Crore and total turnover stood at Rs. 3603.62 Crore.

On NSE Future and Options, total number of contracts traded in index futures was 225664 with a total turnover of Rs. 12278.43 Crore. Along with this total number of contracts traded in stock futures were 463811 with a total turnover of Rs. 23676.03 Crore. Total numbers of contracts for index options were 2390129 with a total turnover of Rs. 136395.60 Crore and total numbers of contracts for stock options were 248623 with a total turnover of Rs. 13083.06 Crore.

The FIIs on 08/01/2016 stood as net seller in equity and net buyer in debt. Gross equity purchased stood at Rs. 3654.82 Crore and gross debt purchased stood at Rs. 4342.73 Crore, while the gross equity sold stood at Rs. 4598.80 Crore and gross debt sold stood at Rs. 381.77 Crore. Therefore, the net investment of equity and debt reported were Rs. -943.98 Crore and Rs. 3960.96 Crore.

Anil Ambani announces Rs 5,000-cr naval facility investment

Expanding his defence sector play, Reliance Group Chairman Anil Ambani has announced setting up of a new naval shipbuilding facility with an initial investment of Rs 5,000 crore, said the media report.

The facility, to be set up at Rambilli along the East Coast near Vizag, would also lead to creation of a multi-tier array of defence ancillaries with further investments of Rs 5,000-10,000 crore and thousands of skilled jobs, he said.

Speaking at the Andhra Partnership Summit after his group signed an MoU with Andhra Pradesh government for the facility, Ambani said it would complement Reliance Group's existing facility at Pipavav in Gujarat and will have a clear focus on building strategic assets for the Indian Navy.

"It is estimated that Indian Navy will spend over Rs 3 lakh crore or nearly Rs 20,000 crore a year on acquisitions and fleet modernisation of submarines and aircraft carriers over next 15 years, creating a huge pipeline of opportunity for the proposed world-class naval facility," he added.

"At an initial investment outlay of Rs 5,000 crore, it will represent the single-largest investment at one location anywhere in Andhra Pradesh," Ambani said.

The diversified group's chairman further said Reliance Group has had a strong business engagement with Andhra Pradesh and it has already invested Rs 15,000 crore and created thousands of jobs in the state across a range of sectors from telecom to power.

Stating that Vizag has for long time been a hub for commercial and maritime activities, Ambani said it has now grown to be one of the busiest harbour cities in Asia and it was ideally suited for the manufacture of strategic assets such as nuclear sub-marines and aircraft carriers.

The billionaire industrialist said one of the most important part of India's policy of a "credible minimum deterrence" is SSBN or a nuclear submarine and the proposed Vizag facility "will play in critical role in complementing this mission and bringing it to fruition".

Besides, it will also further Prime Minister Narendra Modi's Make in India mission in the defence sector, he said.

Mylan introduces Hep C generic drug in India

Mylan Pharmaceuticals, an arm of Mylan N.V. announced that it has introduced its generic drug Harvoni which is a combination of Ledipasvir/Sofosbuvir under the brandname MyHep LVIRTM in the Indian market. Harvoni will be used for treating Hepatitis C infection. It provides a simplified Hepatitis C treatment regimen that removes the need for interferon and ribavirin. The product is also a single-tablet regimen and requires a therapy course of 12 weeks. Commenting on this, Rajiv Malik, President, Mylan said, “MyHep LVIRTM is an important addition to our growing Hepato Care segment in India that gives us the opportunity to offer patients the potential to be cured through a transformative and simplified single tablet, once-daily treatment regimen.”

Domestic & global financial giants set to partner India Post

According to media reports, the country’s Union Minister Ravi Shankar Prasad has said that top global financial & banking companies such as ICICI Bank, Barclays and Citigroup have indicated their willingness to partner India Post for its upcoming payments bank.

“You have only got the in-principle approval, and other aspects like appointing a consultant are on, but already 40 big financial services groups from the country and abroad have evinced interest in a tie-up with the Postal Department,” the Communications and IT Minister said, the PTI reported.

Prasad said that among the financial giants who have sent tie-up proposals include US banking major Citigroup, UK lender Barclays and India’s top private sector bank ICICI Bank.

The Postal Department aims to get India Post operational by March 2017, Prasad said, adding that some of the tie-up proposals entail in areas such as selling insurance, while some seek to provide government-to-citizen and company-to-citizen services.

The Reserve Bank in August 2015 gave an approval to set up payments banks, aimed at promoting financial inclusion through deepening the formal financial system by focusing on transactional banking, with India Post being the only state-run entity in a list of 11 entities that had received the go-ahead.

Hindustan Zinc set to invest Rs 8,000 cr in next 3-5 years

Mining and resources producer Hindustan Zinc Ltd has announced that it plans to invest a mammoth amount of Rs 8,000 crore in the course of the next three-five years as the subsidiary of the Vedanta Group steps up its efforts to expand operations and boost production capacity.

Hindustan Zinc said in a statement that it is planning to boost its existing ore production levels to 14 million tonnes per annum (MTPA) from 9.36 MTPA while it aims at increase its finished metal output levels from the current 0.85 MTPA to 1.10 MTPA.

“As the company celebrates its Golden Jubilee year, it is all set to invest another Rs 8,000 crore in the coming 3-5 years on expansion of its mines and smelting operations”, Hindustan Zinc Ltd (HZL) said, which in 2016 completes 50 years of existence.

“When we acquired HZL as part of government's disinvestment programme in 2002, our focus was to make India self-sufficient in zinc. We are very proud that by adopting latest environment friendly technology, large investment in capacity expansions and continuous exploration, HZL is able to increase production five-fold and yet have reserves for another 30 years”, Anil Agarwal, Vedanta Group Chariman said.

HZL which was acquired by Sterlite (now called Vedenta) in 2002 produces 474 MW of captive thermal power and 274 MW of wind energy.Hindustan Zinc set to invest Rs 8,000 cr in next 3-5 years

8K Miles Consolidated Q3 Results

8K MILES SOFTWARE SERVICES LTD. (8KMILES) - FINANCIAL QUARTERLY

FIGURES IN RS CRORE	DEC-2015	SEP-2015	JUN-2015	MAR-2015	DEC-2014
REVENUE	74.05	61.09	50.56	42.30	34.47
OTHER INCOME	0.00	0.01	0.08	0.29	0.00
TOTAL INCOME	74.05	61.10	50.64	42.59	34.47
EXPENDITURE	48.70	39.94	34.76	29.75	23.66
OPERATING PROFIT	25.35	21.16	15.88	12.84	10.81
INTEREST	0.08	0.02	0.00	0.23	0.08
PBDT	25.28	21.13	15.88	12.61	10.74
DEPRECIATION	5.80	5.45	3.54	2.92	2.09
PBT	19.48	15.68	12.34	9.69	8.65
TAX	4.29	3.65	2.68	1.83	1.93
NET PROFIT	15.19	12.03	9.66	7.86	6.72
NET PROFIT AFTER MINORITY INTEREST	11.27	8.74	7.22	6.27	5.38
EPS (RS)	10.34	8.14	6.72	6.06	5.36

Bajaj Corp Q3 Results

FIGURES IN RS CRORE	DEC-2015	SEP-2015	JUN-2015	MAR-2015	DEC-2014
REVENUE	213.16	208.19	219.10	236.17	205.79
OTHER INCOME	8.13	7.47	6.81	7.54	6.66
TOTAL INCOME	221.29	215.65	225.91	243.71	212.45
EXPENDITURE	157.11	155.21	164.50	173.79	158.40
OPERATING PROFIT	64.18	60.44	61.41	69.92	54.05
INTEREST	0.01	0.01	0.01	0.06	0.01
PBDT	64.16	60.44	61.40	69.87	54.05
DEPRECIATION	1.12	0.97	1.00	1.06	1.08
PBT	63.04	59.47	60.40	68.81	52.97
TAX	13.45	12.69	12.89	14.39	11.13
NET PROFIT	49.59	46.78	47.51	54.42	41.84
EPS (RS)	3.36	3.17	3.22	3.69	2.84

Goa Carbon Q3 Results

GOA CARBON LTD. (GOACARBON) - FINANCIAL QUARTERLY

FIGURES IN RS CRORE	DEC-2015	SEP-2015	JUN-2015	MAR-2015	DEC-2014
REVENUE	89.80	78.78	79.95	57.56	20.64
OTHER INCOME	2.48	0.74	-1.66	4.71	1.75
TOTAL INCOME	92.28	79.52	78.29	62.27	22.40
EXPENDITURE	89.58	77.61	76.17	67.27	25.55
OPERATING PROFIT	2.70	1.91	2.11	-5.00	-3.15
INTEREST	3.42	6.08	1.08	0.86	4.22
PBDT	-0.71	-4.17	1.04	-5.85	-7.38
DEPRECIATION	0.48	0.46	0.46	0.42	0.41
PBT	-1.19	-4.63	0.58	-6.27	-7.79
TAX	-0.29	-1.67	0.20	1.35	-2.61
NET PROFIT	-0.90	-2.96	0.38	-7.62	-5.18
EPS (RS)	-0.99	-3.24	0.41	-8.34	-5.65