Thursday, December 28, 2017

Market Pulse
Key benchmark indices traded in a small range near the flat line in afternoon trade. Trading was lackluster and rangebound around the flat line so far during the session. Key indices opened higher and traded with small gains in early trade. Stocks traded in a small range around the flat line later during the session.

Trading may remain volatile during the latter part of the day as traders roll over positions in the futures & options (F&O) segment from the near month December 2017 series to January 2018 series. The December 2017 derivatives contracts expire today, 28 December 2017.

Among secondary indices, the S&P BSE Mid-Cap index rose 0.23%. The S&P BSE Small-Cap index gained 0.55%. Both these indices outperformed the Sensex.

The breadth, indicating the overall health of the market, was positive. On the BSE, 1,506 shares rose and 1,111 shares fell. A total of 179 shares were unchanged.

Shares of power generation and power distribution companies gained. NTPC (up 0.01%), NHPC (up 1.58%), Tata Power Company (up 0.87%), Adani Power (up 0.37%), Power Grid Corporation of India (up 0.05%), Reliance Infrastructure (up 2.12%) and Reliance Power (up 2.13%) gained. Torrent Power declined 0.95%.

Shares of  PSU coal mining major Coal India rose 0.91%.

Auto stocks declined. Tata Motors (down 0.19%), Ashok Leyland (down 0.46%), Eicher Motors (down 0.08%), Hero MotoCorp (down 1.1%), Bajaj Auto (down 0.46%) and TVS Motor Company (down 0.1%) declined. Mahindra & Mahindra (M&M) rose 0.25%.

Maruti Suzuki India (MSIL) rose 0.08% after the company entered into an agreement with the Government of NCT of Delhi to set up state-of-the-art automated driving test centres across 12 locations in the city. A memorandum of agreement (MoA) was signed between the Department of Transport, NCT of Delhi and MSIL. As per the MoA, MSIL will set up automated driving test centres comprising scientifically laid driving test tracks, advanced high definition cameras and an integrated IT system, as approved by the Transport Department. The announcement was made after market hours yesterday, 27 December 2017.

United Bank of India rose 1.14% after the bank said that it raised Rs 100 crore by issuing Basel III compliant bonds on a private placement basis. The announcement was made after market hours yesterday, 27 December 2017.

The bank has concluded issuance and allotment of 1,000 units of 11% unsecured, subordinated, fully paid-up, non-convertible, listed, Basel III compliant, perpetual debt instruments in the nature of debentures for inclusion in additional tier-1 capital aggregating to Rs 100 crore on private placement basis. The issue was fully subscribed by 3 investors. 

Overseas, Asian markets rose following a rally in oil and copper prices this week. Trade was thin ahead of the long New Year's weekend. Japan's factories and retailers posted better-than-expected growth in activity in November, while minutes from the central bank's last policy meeting showed board members raising the prospect of reducing stimulus. The 0.6% increase in industrial output in November was more than the median market projection and followed a 0.5% gain in October.

US stocks eked out a positive close yesterday, 27 December 2017 with gains in real estate and utilities offsetting declines in energy and telecommunications stocks. In US economic reports, the Conference Board's consumer confidence index fell to 122.1 in December from 128.6 in November.s

#Mandhana Industries Ltd recommended in this blog some weeks back has been hitting the upper circuits since the last few days. The investors can look for targets of Rs.14-15 in the coming days.

#Buy the shares of Housing Development & Infrastructure Ltd (HDIL) at around Rs.59.50 for a short term target of Rs.92-97.  There were earlier reports that Housing Development & Infrastructure (HDIL) is in talks with Union Bank of India (UBI) for a one-time settlement to stop insolvency proceedings against its arm Guruashish Construction.
Today  a news came in ET, that the government will give promoters of insolvent companies more time to repay their dues and participate in the resolution process of bankrupt companies in the Bill that will replace the ordinance that was promulgated last month to amend the Insolvency and Bankruptcy Code (IBC). 
The changes proposed in the Bill will also clearly allow asset reconstruction companies, banks and alternative investment funds (AIFs) to participate in bidding and clarify the status of guarantors of such companies. Entities that submitted a resolution plan but were subsequently rendered ineligible by the NPA clause of the ordinance will get an opportunity to make themselves eligible to participate....
This is a positive news for all the companies who are reeling with debt or is facing problems due to the introduction of the new clause in the IBA. As of March 2017, the HDIL has a total debt of Rs.2,476.56 crore; but it has one of the highest land holdings in Mumbai Metropolitan Region, which it can capitalize to cut debt.

#Today, as mentioned above a very good news came for the shareholders of MBL Infrastructure Ltd (Rs.26). The Economic Times wrote today that: Entities that submitted a resolution plan but were subsequently rendered ineligible by the NPA clause of the ordinance will get an opportunity to make themselves eligible to participate, said people with knowledge of the matter.  The ordinance bars a person with a non-performing account of more than a year who had not cleared the overdue amount, interest and other charges before the submission of a resolution plan from taking part in the process. The Bill, which is expected to be introduced in Parliament soon, seeks to ease some norms and iron out some of the drafting ambiguities in the ordinance. This paves the way for the promoters bringing in Rs.120 crore and take part in the bidding process. It is good to see that the NDA government has started to work in consort with the India Inc.
I am still holding on to my target of Rs.110 -- plus in the short to medium term for the scrip. The risk taking investors are suggested to buy the stock of MBL Infrastructure Ltd on intra-day dips. The company has a debt of around Rs.1700 crores, which is in the final stage of negotiation with the consortium of lenders led by SBI.

#Today my recommended, Reliance Infrastructure Ltd made an intraday high of Rs.572.70, intraday. The stock is now trading at around Rs.555, after profit booking was suggested to my clients and also into a Facebook group. The traders are suggested to carefully observe Rs.551-553 levels for fresh entry. Keep a SL of Rs.446, for any short term trade.

#Today, Dena Bank Ltd made an intraday high of Rs.25.90 and is now trading at around Rs.25.45.  The investors who have bought the stock at around Rs.24.40 on my recommendation, should do well to keep at SL at Rs.24.80 and keep holding. However, I am not too bullish on the banking sector. Hence, you can decide what to do with the scrip of Dena Bank Ltd.

#I am increasing the subscription charge of my Premium Services to Rs.18,000 per year from 16th January, 2017. Moreover, those who will enroll before 31st December, 2017, will get a special discount on my present subscription rate of Rs.15000 per year. So, rush for further details on the same. 

~~Powered by Capital Market - Live News...
Post a Comment