Monday, January 08, 2018

Market Pulse
Key benchmark indices edged higher in early trade on positive trading in Asian stocks and strong finish on Wall Street overnight. At 9.43 IST, the BSE was trading at 34,323.56 up 169.71 points or 0.50% while NSE is was seen at 10,607.90 up 49.05 or 0.46%. The Sensex, and the Nifty, hit fresh record highs in early trade.

The S&P BSE Mid-Cap index rose 0.69%. The S&P BSE Small-Cap index advanced 0.81%. Both these indices outperformed the Sensex.

Overseas, Asian stocks edged higher following firm US lead as investors awaited upcoming earnings releases. US stocks rose to record levels on Friday, 5 January 2018 even as Wall Street shook off jobs data that missed expectations. The US economy added 148,000 jobs in December, according to the Labor Department, as against expectations of 190,000 jobs.

Closer home, the breadth, indicating the overall health of the market, was strong. On the BSE, 1,435 shares rose and 319 shares declined. A total of 44 shares were unchanged.

Index heavyweight and housing finance major HDFC advanced 0.93% at Rs 1,742.

Engineering and construction equipment major L&T rose 1.32% at Rs 1,331.90 after the company said its construction division has bagged three EPC orders worth Rs 2265 crore from Andhra Pradesh Capital Region Development Authority (APCRDA). The announcement was made during market hours today, 8 January 2018.

NBCC (India) was up 0.64% at Rs 250.60 after the company said it has received a contract from Ecotourism Development Corporation of Uttarakhand, Dehradun for Construction of Kotdwar-Ramnagar Kandi Road under Green Infrastructure/Green Road Project amounting to about Rs 2000 crore as project management consultant. The announcement was made on Saturday, 6 January 2018.

The 14-day long winter session of the Parliament concluded on Friday, 5 January 2018. The Speaker said that 16 bills were introduced in the Lok Sabha by the government in the session, of which 12 bills including the triple talaq bill was passed. Important bills passed during the session also included the Requisitioning and Acquisition of Immovable Property Bill and the Goods and Services Tax (Compensation to States) Amendment Bill.

Today's Call:
#Buy TV Vision Ltd at around Rs.21 for targets of Rs.51-75, in the short term. This is from the  reputed Sri Adhikari Brothers Group. At present, TV vision Ltd comprises a bouquet of five channel broadcasting bouquet, namely Mastiii, Dabangg, Maiboli, Dhamaal Gujarat & Dillagi. It plans to add couple of more regional channels along with a mainstream Hindi GEC, in the near future.

#The  share of MBL Infrastructure Ltd (Rs.27.90) is consolidating at the current  levels of Rs.28-29, before the final showdown on or before 15 January, 2018. The recent amendment to the Insolvency and Bankruptcy Code (IBC) is favourable for the company, which reads as:
"In case of resolution plans submitted before the ordinance came into force, persons who are rendered ineligible due to being holders of NPA accounts for more than one year can become eligible if they pay off all their dues within a thirty days period..." 
I think the PNB officials will now heave a sigh of relief now... 😁
The management of MBL Infrastructure Ltd had already expressed its desire to bring in Rs.120 crore for an amicable settlement with the consortium of lenders. On November 7, 2016, AK Lakhotia, Chairman and MD of MBL Infrastructures in a conversation with a business channel said that the company has a healthy order book of around Rs.8000 crores to be executed over 2 years. ICICI Direct recommended the scrip on October, '15 at Rs.247. MBL Infrastructure Ltd is likely to benefit from Rs.90000 crore package for the North Eastern Region.
The risk taking investors can continue accumulating the scrip of MBL Infrastructure Ltd in intraday declines. This stock is in T-group and hence avoid intraday trading.

#Those who are holding the shares of Orchid Pharma Ltd (Rs.23.25 - locked in the Upper Circuit) from around Rs.18, can continue to hold wiht a SL at Rs.21. I am looking for a target of Rs.27, in the coming days. 

#The shares of Housing Development & Infrastructure Ltd is consolidating around Rs.65, for the next target of around Rs.84. The management of 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. I am told it is in the final phase. My sources are also of the view that the things will get streamlined very soon.
The Company has been a major player in Mumbai real estate market with 90% land reserves in MMR and IS a market leader in Residential and Slum Rehabilitation (SRA) projects.
HDIL is currently executing the largest SRA project for rehabilitation of approximately 85,000 slum dwellers under expansion and modernization of Chhatrapati Shivaji International Airport, Mumbai. Approximately 33,000 housing units are currently under construction for this project.
The company which made an empire of sorts in the real estate space in the last 3-4 decades will not let it crumble down so easily. In November, last year there were media reports that Andhra Bank Ltd had withdrawn its insolvency application from the National Company Law Tribunal (NCLT) against HDIL as the realty firm has decided to settle outstanding dues. Moreover, HDIL is looking at monetizing its huge land bank of more than 20 crore sq.ft to clear off the debt of around Rs.2500 crores. I am looking at 12-18 months target of Rs.350-plus.

#Pincon Spirit Ltd recommended yesterday around Rs.37-38, hit another buyer freeze today at Rs.43.30. We can look for target of Rs.73-75 in the coming days.

~~ with inputs from Capital Market - Live News
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