BP Equities_Morning Wealth_05th_May, 2015 -

 2nd Feb , 2011 Morning Wealth
BP WEALTH
Tuesday,05thMay, 2015
Nifty Futures
Resistance
Support
Indices (NSE)
Level 1
Level 2
Level 3
8,440
8,480
8,520
8,340
8,300
8,240
Close
Pts. Chg
% Chg
Nifty
8,332.0
150.5
1.8
Nifty Future (May
8,381.4
122.4
1.5
Nifty Future (June)
8,412.7
127.7
1.5
18,501.3
163.2
0.9
CNX100
8,389.9
150.0
1.8
CNX500
6,873.4
123.8
1.8
CNX Midcap
12,948.6
259.0
2.0
Indices (BSE)
Close
Sensex
27,490.6
479.3
1.7
BSE-100
8,470.7
149.1
1.8
BSE-200
3,486.2
61.1
1.8
BSE-500
10,889.4
192.6
1.8
Mid Cap
10,549.4
133.1
1.3
Small Cap
11,169.7
225.6
2.0
Sectoral Indices
Close
BANKEX
21,231.2
200.3
1.0
CAPITAL GOODS
REALTY
POWER
OIL & GAS
METAL
16,656.5
1,612.5
2,137.0
9,527.1
9,952.1
137.5
39.4
41.8
323.6
151.1
0.8
2.5
2.0
3.5
1.5
CD
10,566.6
188.9
1.8
AUTO
18,619.2
284.7
1.6
TECK
5,899.3
103.4
1.8
10,585.9
7,765.9
16,567.6
17.3
174.9
158.5
381.1
0.1
1.7
2.1
2.4
0.5
Bank Nifty
IT
FMCG
HEALTHCARE
VIX
Exchange
Advance
Pts. Chg
Pts. Chg
Decline
% Chg
% Chg
Unchg
BSE
1,951
831
113
NSE
1,204
324
52
Volume
Rs (in cr)
NSE Cash
BSE Cash
NSE F&O
Net Inflows/
Outflows (Rs in cr)
FII
DII
Buy
5,105.8
1,253.9
% Chg
16,351.1
-36.0
2,467.0
1,69,386.5
-5.0
-73.0
Sell
5,045.3
1,107.1
Net
60.5
146.8
Intraday Nifty Outlook
Index failed to sustain below the downsloping trendline which is drawn connecting the previous two trough. After consolidating around the 200 DEMA index
has started moving up which is a bullish signal for short term trend. RSI has
formed positive divergence with price which is a bullish signal. Going ahead
index is expected to continue its pullback towards 8440-8520 while support
comes at el will call for some respite towards 8360-8440.
Corporate News
Future-Bharti merger to lead to further consolidation in retail
The Future Retail-Bharti Retail merger is expected to lead to further consolidation in the $500-billion retail sector, which is starved of funds. Indian retailers
have always found peculiar problems regarding funding — lack of depth in Indian markets for the segment and global retailers staying away due to policy
issues and trouble in their own markets. "Consolidation is long awaited. While
new international firms are yet to come in, existing ones have gone away. It is a
question of who blinks first," said Rachna Nath, leader, retail, PricewaterhouseCoopers (PwC) India. Carrefour of France had exited and Britain's Tesco is
treading slowly. US-based Walmart is only in cash-and-carry operations. Consolidation began when Aditya Birla Group bought out south-based Trinethra
Super Retail for its foray into the segment, in 2007. Kishore Biyani's Future Retail recently bought Bengaluru-based Nilgiris supermarkets to strengthen its
footfold in the south. Sanjay Badhe, a consultant here, says its too early to comment. "Most of them are making losses. There could be some natural synergies
but I cannot see these," he said. (Source: Business Standard)
Shriram Transport: Earnings estimates downgraded
Shriram Transport Finance (STFC)’s consolidated numbers for the March quarter were impacted by a sharp rise in non-performing assets (NPAs) of its equipment finance subsidiary. The gross NPA of its equipment finance business (five
per cent of overall assets under management) jumped from 2.9 per cent in the
December quarter to 15.7 per cent in the March quarter. Consolidated net profit
fell 73.3 per cent over a year to Rs 84 crore. The bad news does not end here.
The management could declare loans worth another Rs 400 crore as NPAs in
the coming quarters in the equipment finance business. This could again lead to
a surge in the gross NPA ratio of this subsidiary to about 30 per cent. STFC
also plans to infuse Rs 100 crore to shore up the net worth, as well as tier-I ratio
of its equipment finance subsidiary. Some analysts though believe STFC might
need to add more capital in the subsidiary. “We believe STFC will have to infuse more capital into the subsidiary to maintain a tier-1 above 10-11 per cent
till recovery gathers pace,” say analysts at Religare Capital Markets. They have
trimmed the equipment finance subsidiary’s value from Rs 88 per share earlier
to Rs 10 per share of STFC. The subsidiary’s NPAs have increased due to delayed government payments over the past 12 to 18 months. Delay in pick-up in
infrastructure activity has impacted payments from contractors. (Source: Business Standard)
Glenmark gets tentative USFDA nod for generic psoriasis cream
Glenmark Pharmaceuticals has received tentative approval from the US health
regulator for generic Calcipotriene cream, used for the treatment of plaque psoriasis. It said in a statement that Glenmark Pharmaceuticals Inc, USA, a subsidiary of the company, has been granted tentative approval by the United
States Food & Drug Administration (USFDA) for Calcipotriene cream, 0.005 per
cent. The product is the therapeutic equivalent of Danish pharma firm Leo
Pharma A/S Dovonex’s topical cream of the same strength, it added. “Glenmark
will market this product upon receiving final approval of its Calcipotriene cream,
0.005 per cent, abbreviated new drug application (ANDA),” the company said.
The patents listed for Dovonex cream are scheduled to expire on June 9, 2015,
it added. According to IMS Health sales data, for the 12-month period ending
March 2015, Dovonex annual sales stood at around $92.8 million, it added.
Dovonex is indicated for the treatment of plaque psoriasis. Glenmark currently
has 97 products authorised for distribution in the US market and 67 abbreviated
new drug applications (ANDAs) are pending approval from the USFDA, the
company said. (Source: Business Line)
Ashok Leyland April sales rise 43% to 8,435 units
Hinduja Group flagship company Ashok Leyland today reported a 43 per cent
jump in total sales at 8,435 units for April against 5,897 units in the same month
last year. Sales of its heavy and medium commercial vehicles increased by
44.79 per cent at 6,549 units in April against 4,523 units in the year-ago period,
the company said in a filing to the BSE. Light commercial vehicle sales also
rose 37.26 per cent and stood at 1,886 units against 1,374 units in April last
year. (Source: Business Line)
Bajaj Auto bike sales down 5% in April
Bajaj Auto has seen motorcycle sales decline by 5 per cent in April 2015 in
comparison to April 2014, even as overall sales rose one per cent. The Punebased motorcycle major had sold 2,85,791 bikes last month against 2,99,636
units in April 2014. On the back of 58 per cent growth in three-wheeler sales,
and higher export numbers, Bajaj Auto’s total sales stood at 3,36,274 units versus 3,31,529 units in the same month of last year. Three-wheeler sales stood at
50,483 units (31,893 units). On the export front, the company’s sales rose 7 per
cent to 1,61,598 units, making this the second highest-ever export sale during
any April. (Source: Business Line)
BP WEALTH
Morning Wealth
Economy
Nifty Top 5 Gainers
Close
ONGC
BAJAJ-AUTO
CIPLA
M&M
HCLTECH
Nifty Top 5 Losers
Pts. Chg
% Chg
328.4
24.4
8.0
2,087.9
139.3
7.2
673.7
37.7
5.9
1,202.5
57.5
5.0
919.8
39.3
4.5
Close
Pts. Chg
% Chg
TECHM
611.8
-9.6
-1.6
ICICIBANK
329.3
-1.9
-0.6
TATAMOTORS
506.5
-1.8
-0.4
1,629.3
-2.0
-0.1
167.8
-0.1
-0.1
LT
IDFC
Int. Indices
Close
S&P 500
Pts. Chg
2,114.5
6.2
18,070.4
46.3
NASDAQ
5,016.9
11.5
FTSE*
6,986.0
0.0
DAX
11,619.9
165.5
CAC
5,082.0
35.5
Nikkie*
19,520.0
0.0
Hangseng
28,123.8
-9.2
3,482.7
-4.7
DOW
Straits Times
*Closing as on 1st May
ADR
Close
HDFC Bank
ICICI Bank
Infosys
TATA Motors
Wipro
Currencies
57.1
10.8
31.5
41.2
11.7
Close
Pts. Chg
0.4
0.0
0.4
-0.1
0.1
Pts. Chg
Dollar Index
95.5
0.3
USD/INR
EURO/INR
USD/YEN
63.4
70.7
120.1
0.0
-0.3
0.1
Manufacturing loses momentum in April on weak demand
The 2015-16 fiscal year has started with a slowdown in manufacturing, an HSBC
survey has indicated. The HSBC India Purchasing Managers’ Index (PMI) stood
% Chg
at 51.3 in April, down from 52.1 in March. Commenting on the PMI, Pollyanna De
Lima, Economist at Markit, the agency which compiles the data, said despite
0.3 recording softer rates of expansion, the Indian manufacturing sector held its
ground in April, benefiting from ongoing improvements in operating conditions. A
0.3 highlight of the latest survey was the strong external market, with the rise in new
export business. “However, we are yet to see growth lead to meaningful job crea0.2 tion, as the index measuring employment has shown little change to staff numbers since the beginning of 2014. "On the price front, tariffs fell for the first time
May 2013, as firms responded to weaker cost inflation. “Even with the
0.0 since
slower pace of expansion, the goods-producing sector is on course to provide a
boost to the overall economy,” she said Taking note of the manufacturing slow1.4 down, Anis Chakravarty, Senior Director with Deloitte, said despite growth slowdown, higher output levels were seen in all the monitored goods categories, with
0.7 the crucial capital goods segment recording the strongest growth and consumer
durables recording the lowest, reflecting the fact that domestic demand was yet
0.0 to pick up. However, he felt, even as input prices paid by producers rose for the
second consecutive month, average selling prices declined for the first time in
0.0 almost two years highlighting the scope for further easing of monetary policy.
(Source: Business Line)
-0.1
International News
Most Asian Stocks Rise on Stimulus Bets; Aussie Swings Pre-RBA
Most Asian stocks outside Japan climbed amid speculation central banks in the
% Chg
region may increase monetary stimulus. Corn and wheat fell with crude oil, while
0.8 nickel rallied. The MSCI Asia Pacific excluding Japan Index increased less than
percent by 10:10 a.m. in Hong Kong, with five stocks climbing for every four
0.2 0.1
that fell. The S&P/ASX 200 Index advanced 0.5 percent in Sydney as Australia &
1.1 New Zealand Banking Group Ltd. reported a record cash profit. Chinese equity
-0.3 markets have rallied this year as investors bet policy makers will further reduce
borrowing costs and lenders’ reserve requirements to arrest sliding growth and
1.0 promote domestic consumption. Markets in Japan, South Korea and Thailand are
closed for holidays. “Investors are comfortable with the idea of more of the same,
more time to enjoy low interest rates, more time to enjoy low oil prices,” Scott
Schuberg, chief executive officer of Rivkin Securities Ltd. in Sydney, wrote in an
% Chg
e-mail. “There is little doubt that the source of today’s volatility will come from the
Reserve Bank of Australia’s interest rate decision.” (Source: Bloomberg)
0.4
0.0
-0.5
0.1
Commodities
Close
Gold (spot) Rs
26,859.0
223.0
0.8
Silver (spot) Rs
37,855.0
636.0
1.7
Crude (Brent) $
66.4
-0.1
-0.1
Crude Oil (WTI) $
58.9
-0.1
-0.1
Institutional Research
Pts. Chg
Farm sector bad loans may shoot up: India Ratings
The asset quality of India’s agriculture credit could be significantly affected by the
crop damage resulting from the untimely hail and rain of March 2015, according
to an India Ratings and Research report. “The NPA (non-performing assets) ratio
of the agri-loan portfolio could double for some banks, though the reduction of
overall return on assets may be muted at 3-5 basis points (about 10 per cent of
the profitability of government banks). “The unseasonal rains followed one of the
weakest and most deficient (12 per cent) monsoons in FY15, which has heightened its impact,” the report said. The rating agency added that the situation may
worsen if monsoon in FY16 is below normal. Agricultural loans grew 16 per cent
in FY15 and have contributed 25 per cent to incremental credit growth since
March 2014. With delinquencies in the agri-loan portfolio likely to rise, they will
add to the already stressed assets of banks (10.6 per cent of loans on December
31, 2014). India Ratings estimates that system-wide agricultural NPAs as a percentage of total agricultural advances will rise to 8.4 per cent by FY16 from 4.9
per cent in FY14 as the direct result of unseasonal rains. As a result, the gross
NPA ratio (on total advances) for the banking system will increase by 30 bps.
Governmental support through subsidies may not significantly benefit banks as
the amount of support ( 2,500/acre) to be provided is marginal compared with
the extent of losses ( 20,000/acre). Also, it is unlikely that the support money will
be used by the affected farmers to repay bank loans. The government is also
contemplating a loan restructuring package or interest subvention scheme for
affected farmers, aimed at providing relief to farmers’ debt obligations. (Source:
Business Line)
Major Bulk Deal (NSE)
Scrip Name
Qty
Type
Client Name
Trade Price
NO MAJOR BLOCK DEAL
% Chg
Major Bulk Deal (BSE)
Scrip Name
AIFL
Qty
640,000
Type
Client Name
Trade Price
BUY
DSP BLACKROCK
MUTUAL FUND
214.95
BP Equities Pvt. Limited (w ww .bpw ealth.com)
BP Equities reports are also available on Bloomberg [BPEP <GO>]
05/05/2015
2
BP WEALTH
Morning Wealth
EVENTS CALENDAR
Monday
Tuesday
Wednesday
Thursday
Friday
04-May-2015
05-May-2015
06-May-2015
07-May-2015
08-May-2015
Results – SKSMICRO,
Results –
Results - GICHSGFIN,
Results – JINDALSAW,
VGUARD,BIRLA MONEY CENTURYSHEMAROO, TVSELECT TITAN, HEROMOTO,IIFL
TEXT,DABUR,KOTAKBA
NK , ORIANTAL BANK
Results – GILLETTE,SUNCLAYLTD,AL
BK,HUL, IOB, EICHERMOTORS, PNB
Economic Indicators–
HSBC Manufacturing
PMI
Economic Indicators -
Economic Indicators–
Economic Indicators–
Economic Indicators–
US–
US–International Trade
US–
US– Jobless Claims
US– Employment situation
11-May-2015
Results – HAVELLS,EVERADY,BANK
OF BARODA
Economic Indicators–
US–
12-May-2015
13-May-2015
14-May-2015
15-May-2015
Results –
Results - EMAMILTD
APPOLOTYRE,CENTRALBK
DRREDDY, MOTHERSUMI ,UCOBANK, UNIONBANK
Economic Indicators Economic Indicators–
Industrial production
YOY, Inflation rate YOY
Results – CASTROLIND,MANAPPURAM
Results –
Economic Indicators–
WIP Inflation YOY
Economic Indicators–
Balance of Trade, Deposit growth YOY
US–International Trade
US– Jobless Claims, PPI US– Industrial produc-FD
tion
18-May-2015
19-May-2015
US– Retail Sale
20-May-2015
21-May-2015
22-May-2015
Results –
Results –
Results -
Results –
Results –
Economic Indicators–
Economic Indicators -
Economic Indicators–
Economic Indicators–
Economic Indicators–
US–
US–Housing Starts
US– FOMC Minutes
US– Jobless Claims, Ex- US– Consumer Price
isting home Sales
Index
Green: Corporate Event, Red: Economic Events, Dark Blue: US Events/ UK Events
(Source: Bloomberg and BSE)
Institutional Research
BP Equities Pvt. Limited (w ww .bpw ealth.com)
BP Equities reports are also available on Bloomberg [BPEP <GO>]
05/05/2015
3
BP WEALTH
Research Desk
Tel: +91 22 61596406
Institutional Sales Desk
Tel: +91 22 61596403/04/05
Disclaimer Appendix
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be directly or indirectly related to the specific recommendation (s) or view (s) in this report. Analysts aren't registered as research analysts by FINRA and might not be an associated person of the BP Equities Pvt. Ltd. (Institutional Equities).
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