MBL Infrastructure Ltd: Will bidding by Promoters Trigger an Open Offer?

CMP: Rs.27.10

Photo: Slideshare

The Shares of MBL Infrastructure Ltd has been buzzing since the last few days. It hit the upper circuit limit of 5% on Thursday after the Economic Times reported that the firm could become India’s first roadbuilder to achieve a successful insolvency resolution on about Rs.1,700 crore of outstanding loans. The news assumes significance, from the point that the Lakhotias (promoters) have built the company from a scratch and mere two bad years have put a spanner in their efforts. 

According that report the promoter Anjanee Kumar Lakhotia had agreed to infuse in about Rs.120 crore into the business which is nearly five times more than the capital he had promised initially. The repayment period on the loans is also proposed to be reduced to about 9.5 years from 12, the ET reported. 

“Creditors seemed receptive about the revised resolution plan, and they have gone back to their respective boards for management approvals,” sources told ET.

A consortium of about 15 lenders, including State Bank of India and RBL Bank, is likely to take a final decision very soon as regards settlement of their dues.

Moreover, after the resignation of Anjanee Kumar Lakhotia from the post of CMD, the Speculation is rife, of a new management take-over from the ruins of the earlier one.

It is pertinent to mention here that, this week the Kolkata bench of NCLT in an order ruled that the promoter of MBL Infrastructure Ltd is eligible to bid for the company.  The order clears confusion regarding the position of non-defaulting promoters, as per new ordinance passed by the NDA Government.

Photo: Dynamic Levels

The court in its ruling said: "Merely because there is a default by a borrower in repayment of borrowed amount to a creditor does not render the borrower or its guarantor, dishonest. Every act of default cannot be equated with malfeasance".

The ET had reported on November 22 that MBL could be the first road-builder to achieve a successful insolvency resolution. The company had outstanding loans worth Rs.1,700 crore that it owed to 15 banks, including the SBI and RBL Bank. 

The verdict came after the company filed an application seeking the bench to clarify whether the promoter of MBL Infrastructure Ltd, was still qualified to bid under the provisions of the newly promulgated ordinance.

The Business Standard wrote on 23 December, 2017:
The Kolkata bench of the National Company Law Appellate Tribunal issued an interim order stating that the final resolution plan for MBL Infrastructure would not be approved till it made its final ruling.

The NCLT had ruled that the Ordinance barring promoters of companies whose debts were overdue by a year from bidding for these companies in insolvency proceedings could not be applicable to all promoters. It observed that the guarantor whose guarantee had not been invoked could not be clubbed with those prohibited from bidding.

The NCLT ruled that the Ordinance about the Insolvency and Bankruptcy Code (IBC) did not bar every promoter and guarantor from bidding for insolvent companies.

The order will have repercussions on ongoing cases where promoters and guarantors have bid for companies undergoing insolvency resolution. The promoters of Essar Steel and Bhushan Steel have shown an interest in bidding for their companies.

Lakhotia’s resolution plan for MBL Infrastructure was found to be in compliance with the rules under the IBC by the resolution professional. However, the government had by then amended the IBC through an Ordinance barring promoters of companies with non-performing assets of more than one year, wilful and dubious defaulters or those associated with them from bidding for the insolvent companies.

After the Ordinance, the committee of creditors found that Lakhotia was not eligible to bid for MBL Infrastructure.

Lakhotia contended the decision by the committee did not reflect the correct interpretation of the Ordinance. He said he could not be barred from bidding as one year had not lapsed from the date MBL Infrastructure’s dues were declared NPAs. He also said that the creditors did not invoke the guarantee executed by him nor was any demand made by the lenders to make any payments as a guarantor.

Members of the committee of committee were not clear about the implications of various clauses of the Ordinance and sought an interpretation by the appellate tribunal in this case. 

However, it remains to be seen, whether, the promoters bidding for their own company triggers an open offer or not. Open offer is aimed at providing the shareholders an exit option, as there may be a management change post-acquisition and investors may perceive potential risks in the business. According to a SEBI circular, a change in management, can call for an open offer, provided it satisfies certain criterion.  Let us examine a few Salient Points:  Triggers for an Open offer:

#Acquisition--Reg. 2 (1) (a)-It means, directly or indirectly, acquiring or agreeing to acquire shares or voting rights in, or control over, a target company.

#Regulation 3(1) provides that when an acquirer together with PACs intends to acquire shares or voting rights which along with the existing shareholding would entitle him to exercise 25% or more of the voting rights in the target company, in such a case the acquirer is required to make public announcement to acquire at least additional 26% of the voting rights of Target Company from the shareholders through an open offer.

The 1st trigger point is during the acquisition of 25% or more shares of the target company by the acquirer company.

#Creeping Acquisition Limit: Regulation 3(2) allows the persons either by themselves or through PAC with them who are holding more than 25% but less than 75% shares or voting rights in the Target Company to acquire further up to 5% shares or voting rights in the financial year ending 31st March. The allowable acquisition of 5% is popularly known as ‘Creeping Acquisition.’

The 2nd trigger point is if the acquirer tries to acquire more than 5% of shares in a financial year after the satisfaction of 1st trigger point.

The company according to my sources in Delhi and Kolkata, is expected to go full throttle, to execute its humongous order book; once fine tuning with the lenders is consummated and the working capital bottleneck gets ironed out. 

The Business Standard wrote on 21 December, 2017:
For the road sector, which has plausibly looked up in recent times, the Governments infra development focus including the Bharatmala project announcement is nothing short of a booster shot, according to IIFL Wealth Management.

A whopping Rs.6.9 trillion project outlay spanning FY18-22 includes Bharatmala Phase I of 24,800 kms, existing NHDP program of 10,000 kms and road development of 48,877 kms under other schemes.

Post the announcement, NHAI has revised its FY18 road award target from 6,500 km to 10,000 kms and its project pipeline is worth more than Rs.50,000 crore of projects, bids for which must be submitted by January 2018.  The project pipeline by NHAI is driven by high ticket size projects which would mean around 50% rise in value of projects in FY18 even if awarding on km basis stood nearly flat yoy.

Although project implementation would be critical given past challenges like Land acquisition, the gigantic outlay is a massive business opportunity for developers in this space with average annual road awarding of more than 16,000 kms.

Therefore, the risk taking investors can buy and hold the shares of MBL Infrastructure Ltd (Rs.27.10) for a target of Rs.110-plus in one or two years. If you remember, I have been recommending the stock from Rs.23.50-24 levels. 

Market Pulse

Key indices continued to hover between gains and losses near the flat line in early afternoon trade amid mixed Asian cues. The BSE Sensex is now trading flat at 33,776.4 up marginally 0.90 points, while Nifty is now seen at 10,450.70 up 6.50 points or 0.06%.

The market opened higher and swung between gains and losses near the flat line in a lackluster session of trade so far.

The S&P BSE Mid-Cap index rose 0.6%. The S&P BSE Small-Cap index gained 0.81%. Both these indices outperformed the Sensex.

The market breadth indicating health of the market was strong. On the BSE, 1,569 shares rose and 880 shares fell. A total of 175 shares were unchanged.

Most realty stocks extended recent gains. D B Realty (up 20%), Unitech (up 15.25%), NBCC (up 0.3%), Godrej Properties (up 0.13%), Housing Development & Infrastructure (HDIL) (up 0.63%), and Oberoi Realty (up 0.07%) edged higher. DLF (down 0.22%), Sobha (down 0.83%), and Indiabulls Real Estate (down 0.23%) declined.

Shares of power generation and power distribution companies gained. NTPC (up 0.87%), Torrent Power (up 0.34%), NHPC (up 0.18%), Tata Power Company (up 0.05%), Adani Power (up 0.14%), Reliance Infrastructure (up 1.57%) and Reliance Power (up 0.88%) gained. Power Grid Corporation of India declined 0.2%.

Hero MotoCorp rose 1.25% after the company said it unveiled three new motorcycles - the 125cc Super Splendor, the 110cc Passion PRO and the 110cc Passion XPRO. There will be a phase-wise launch of the three motorcycles in the market, starting January 2018. The announcement was made during market hours today, 21 December 2017.

Cadila Healthcare rose 2.38% after Zydus Pharmaceuticals (USA) Inc., a wholly-owned subsidiary of the company received the final approval from the US Food and Drug Administration (USFDA) to market Nifedipine extended-release tablets USP in strengths of 30 milligram (mg), 60 mg and 90 mg.

The drug is used to treat hypertension (high blood pressure) and angina (chest pain). It will be manufactured at the group's formulations manufacturing facility at Special Economic Zone (SEZ), Ahmedabad. The announcement was made during market hours today, 21 December 2017.

Overseas, Asian stocks were mixed. The Bank of Japan kept monetary policy steady despite growing signs of strength in the economy. In a widely expected move, the BOJ maintained the 0.1% interest it charges on a portion of excess reserves that financial institutions park at the central bank.

UK consumer sentiment worsened again in December as Britons turned more pessimistic about their finances, a survey published showed. The long-running barometer of consumer confidence, conducted by market researcher GfK U.K. for the European Union's executive, dropped by one point in December and stood at minus 13, the lowest reading in four years.

US stocks closed marginally lower yesterday, 20 December 2017, as congressional Republicans sent tax-cut legislation to President Donald Trump for his signature. The House of Representatives yesterday, 20 December 2017 passed a historic tax bill, which they voted on for the second time due to a technical irregularity the day before. The bill includes a reduction in the corporate tax rate from 35% to 21%. The Senate passed the overhaul early on Wednesday.

Existing-home sales rose to a 5.81 million seasonally adjusted annual rate in November, the National Association of Realtors said. The number came in well above expectations.

Today's Calls:

#MBL Infrastructure Ltd hits another buyer freeze today at Rs.26.55 in the NSE. The stock is expected to move above Rs.110 in the coming days; hence accumulate in intraday declines (if any).

#With buoyancy coming in the steel sector, many steel companies are moving up, including my recommended SAIL, Tata Steel and Jai Balaji Industries Ltd. Jai Balaji Industries Ltd which I recommended a couple of months back at around Rs.12-14, today crossed a major resistance and is now trading at Rs.23. If this momentum is sustained then we can look forward for targets of Rs.27-29. The first and 2nd targets of Rs.17 and Rs.22 have already been achieved.

#Recently recommended HDIL at around Rs.53 today touched Rs.57.45 (1st target given was Rs.57). If it manages to close above Rs.57.50, then can again look for Rs.61-62. However, those who have bought earlier should book some profits and keep holding the rest with a SL of Rs.56.

#I have taken some shares of one of my old favourite Tantia Constructions Ltd (CMP: Rs.1815) at around Rs.18. Some of my clients have also taken position, considering the PM, Narendra Modi's recent announcement of around Rs.90,000 crore, package for the North Eastern Region. 

#Suzlon Energy Ltd recommended repeatedly on this blog at around Rs.13.60, today made an intraday high of Rs.14.60. I am hoping the scrip price to touch Rs.17-18, by the end of this month as the crude oil price is near its yearly high of $65 per barrel. Also, the much waited auction in the renewal energy sector has commenced. So, accumulate with a SL at Rs.13.40.

#Dena Bank Ltd recommended recently in this blog at around Rs24.20 today made an intraday high of Rs.24.40 in the NSE. If it manages to close above Rs.24.80, then we can look forward for a target of Rs.27. My earlier recommended bank stocks like SBI and PNB gave good returns to the investors.

#The scrip of Reliance Communications Ltd (RCom -- Rs.18.40), which was recommended LAST WEEK to some of my clients at around Rs.12 made an intraday high of Rs.19.60, intraday today. What are the targets? Join either my Premium Services or trade through my recommended brokerage house to stay ahead of others: BMA Wealth Creators Ltd.

#Unitech Ltd (Rs.7.95) today made an intraday high of Rs.8.45, after some positive news came out in the media. The short term traders are suggested to book some profits and wait for the for dips for re-entries.

#Today I have recommended Simplex Projects Ltd to some of my clients at around Rs.38-39. The scrip hit the buyer freeze today in the NSE at Rs.39.65. Congratulations to those who have invested in the scrip today.

##I am looking for someone or a business concern who can invest around Rs.5-10 lakhs (or more if possible) in a well Researched Scrip. We would hold it for one year (no trading in the account only pure delivery based holding - this minimizes lot of risks) or less or more, depending upon the prevailing situations. The profits could be shared in the ratio of 75:25 between you and my firm. The returns could be mind-boggling and the risks will be minimum as there will be very little trading and exit will be done at stop losses; further minimizing the risks associated with too much volatility with the mid and small caps. 

Say if we get Rs.50 lakhs on an investment of Rs.10 lakhs then the profit to be shared will be Rs.10 lakhs only. So, your total investable capital becomes Rs.40 lakhs, and that too with minimum (read almost zero) trading. This money could be further invested in another strong delivery based counter, and the process could continue. 
Those who have lost money earlier can try this new formula with fresh funds at their disposals. This new method hereto  is going fine with most of my new clients. If anyone is interested please do send me a mail at: suman2005s@rediffmail.com or sumanm2007s@gmail.com. 

~~with inputs from Capital Market - Live News....

Market Pulse

The stock market continued to trade with small gains in afternoon trade. The BSE Sensex is now trading at 33,878.69 up 41.95 points or  0.12%, while the NSE Nifty is now seen at 10,473.55 up 10.35 points or 0.10%.

The market swung between gains and losses near the flat line in early trade. The Sensex and Nifty, both, hit record high at the onset of the session. Stocks soon slipped into the red and traded with small losses in morning trade. Indices turned positive in mid-morning trade and traded with small gains so far.

Among secondary indices, the S&P BSE Mid-Cap index rose 0.47%. The S&P BSE Small-Cap index gained 1%. Both these indices outperformed the Sensex.

The breadth, indicating the overall health of the market, was strong. On the BSE, 1,652 shares rose and 893 shares fell. A total of 174 shares were unchanged.

IT stocks were mixed. Wipro (up 0.79%), Infosys (up 0.74%) and HCL Technologies (up 0.29%) gained. Persistent Systems (down 0.69%), Tech Mahindra (down 0.32%) and TCS (down 0.26%) dropped.

Metal and mining stocks nudged higher. National Aluminium Company (up 4.39%), Jindal Steel & Power (up 3.81%), Steel Authority of India (up 1.98%), Hindalco Industries (up 1.87%), Hindustan Zinc (up 0.61%), Hindustan Copper (up 0.49%), JSW Steel (up 0.53%) and Vedanta (up 0.17%) gained. Tata Steel (down 1.06%) and NMDC (down 0.26%) edged lower.

Strides Shasun rose 2.7% at Rs 816.75 after the company said that its wholly owned Singapore subsidiary has entered into definitive agreements with Trinity Pharma, South Africa (Trinity) for acquisition of controlling stake in Trinity. Under the terms of the agreement, Strides Pharma Asia, Singapore will acquire 55% stake in Trinity for a cash consideration of South African Rand 55 million (approximately Rs 27.50 crore).

The current management will stay as minority partner and will continue to run the business under the supervision of Strides. The transaction is subject to customary closing conditions including approval from the South African regulatory authority, Transaction Regulation Panel and expected to close on or before 5 January 2018. The announcement was made during trading hours today, 20 December 2017.

Meanwhile, the Companies (Amendment) Bill, 2017 which seeks to bring about major changes in the Companies Act, 2013, was passed by the Rajya Sabha yesterday, 19 December 2017 by a voice vote. The bill, which was adopted by the Lok Sabha in July, will now have to receive the assent of the President to become law. The amendment seeks to strengthen corporate governance standards, initiate strict action against defaulting companies and help improve ease of doing business in the country.

Overseas, Asian stocks dropped after Senate passed Republican tax bill in 51-48 vote sending the tax cut package back to the House of Representatives for a final vote later in the day.

US stocks ended with modest losses yesterday, 19 December 2017, pulling back from all-time highs. Stocks remained lower as the House of Representatives, as expected, passed tax legislation that would slash corporate rates but will have to vote again today because the current draft doesn't comply with Senate rules.

Today's Calls:

#MBL Infrastructure Ltd today hit the Buyer Freeze in the morning trade, at Rs.25.45 in the NSE. I am expecting itss price to go above Rs.110, within a few months.  Hence keep adding as much as you can in all intraday dips. This is a multibagger stock from my arsenal and hence don't miss it.

#Suzlon Energy Ltd was recommended a buy at around Rs.13.60 in this blog, a couple of days back today toched Rs.14.10. You should keep a stop loss at Rs.13.50 and keep holding or accumulating in intra-day dips. 

#The stock of Reliance Communications Ltd which was recommended only a couple of days back to some of my clients at around Rs.12, today touched Rs.18,45 in the NSE, up more than 37% from yesterday's closing pricxe. I am suggesting all to book some profits and again enter at appropriate time. This is what happens if you join my Premium Service -- you get Jackpots.

#The stock of Orchid Pharma Ltd (formerly Orchid Chemicals and Fertilizers Ltd) made an intraday high of Rs.19.85 today. The non-risk taking investors should exit the scrip near the buy price. However, those who wants to apply high-risk-high-gain strategy can hold the counter with a strict SL of Rs.18.60. The short term targets could be Rs.22-23.

#I am looking for someone or a business concern who can invest around Rs.5-10 lakhs (or more if possible) in a well Researched Scrip. We would hold it for one year (no trading in the account only pure delivery based holding - this minimizes lot of risks) or less or more, depending upon the prevailing situations. The profits could be shared in the ratio of 75:25 between you and my firm. The returns could be mind-boggling and the risks will be minimum as there will be very little trading and exit will be done at stop losses; further minimizing the risks associated with too much volatility with the mid and small caps. 
Say if we get Rs.50 lakhs on an investment of Rs.10 lakhs then the profit to be shared will be Rs.10 lakhs only. So, your total investable capital becomes Rs.40 lakhs, and that too with minimum (read almost zero) trading. This money could be further invested in another strong delivery based counter, and the process could continue. 
Those who have lost money earlier can try this new formula with fresh funds at their disposals. This new method hereto  is going fine with most of my new clients. If anyone is interested please do send me a mail at: suman2005s@rediffmail.com or sumanm2007s@gmail.com. 

~~ with inputs from Capital Market - Live News...

Market Pulse

Key indices were trading with modest gains in morning trade as firmness in global stocks supported gains on the bourses. At 10:20 IST, the barometer index, the S&P BSE Sensex, gained 98.95 points or 0.29% at 33,700.63. The Nifty 50 index rose 32.20 points or 0.31% at 10,420.95.

The S&P BSE Mid-Cap index rose 0.79%. The S&P BSE Small-Cap index gained 1.1%. Both these indices outperformed the Sensex.

The broad market depicted strength. There were more than three gainers for every loser on BSE. 1,668 shares rose and 476 shares fell. A total of 104 shares were unchanged.

Auto stocks extended recent gains. Mahindra & Mahindra (M&M) (up 0.86%), Ashok Leyland (up 0.61%), Maruti Suzuki India (up 0.94%), Eicher Motors (up 2.07%), Bajaj Auto (up 0.92%), Hero MotoCorp (up 0.91%), Tata Motors (up 1.53%) and TVS Motor Company (up 0.66%) gained.

Telecom stocks were mixed. Reliance Communications (up 0.51%), Tata Teleservices (Maharashtra) (up 3.92%) and MTNL (up 0.99%) gained. Idea Cellular declined 0.16%.

Kridhan Infra surged 13.24% to Rs 112.50 on BSE after the Government of Singapore bought bulk shares of the company in an open market transaction yesterday, 18 December 2017. Government of Singapore bought 8.95 lakh shares of Kridhan Infra at Rs 92 per share in a bulk deal on the BSE yesterday, 18 December 2017. Mustray Impex & Services sold 20 lakh shares at Rs 92.21 a piece.

Overseas, most Asian stocks gained after a record-setting session on Wall Street on bets that US lawmakers would pass sweeping tax legislation. Japan's government revised up its growth projections for the current and next fiscal years, forecasting the economy to expand 1.9% and 1.8% respectively on the back of steady improvement in domestic demand, the Cabinet Office said.

US stocks closed at all-time highs yesterday, 18 December 2017, as investors eagerly awaited a vote on a bill that would cut corporate taxes. A slew of corporate deals also helped lift sentiment.

Congress is reportedly expected to vote as early as today, 19 December 2017, on a plan that would slash the federal corporate tax rate to 21% from 35%. Passing the bill would mark a big legislative win for Republicans, who have been pushing to revamp the US tax code for most of 2017.

Today's Calls:

#Today some of the NCLT companies like Jai Balaji Industries Ltd (Rs.21.10), Uttam Galva Steels Ltd (Rs.23.20), MBL Infrastructure Ltd (Rs.24.70), Orchid Pharma (Rs.19.10), etc are doing fine. I have taken some stocks of Orchid Pharma at around Rs.19.30 for some of my clients.
Orchid Pharma, once a leader in injectibles and manufacturing of some APIs, has been facing a financial crisis with lenders and investors approaching legal fora for a remedy. It was brought under the corporate debt restructuring scheme, initiated during 2013, for the revival of its operations.

#Suzlon Energy Ltd is again trading above Rs.13.60. You can buy the shares of the company and keep holding. The crude oil price are near the yearly high of $65 per barrel and this is expected to give buoyancy to the shares of renewable energy companies.

~~ with inputs from Capital Market - Live News

Market Pulse

The key indices held firm and hovered close to their intraday high in late afternoon trade as assembly elections results in Gujarat and Himachal Pradesh showed that BJP will return to power for a sixth straight term in Gujarat and will overthrow Congress rule to form government in Himachal Pradesh. 

At 3:05 IST, the barometer index, the S&P BSE Sensex was at 33,652.61 up 189.64 points or 0.57%. The NSE was seen at 10,394.50 up 61.25 points or  0.59%75.

The BJP has been ruling in Prime Minister Narendra Modi's home town Gujarat for the last two decades and a win today will boost its chances to form government at the Centre once again in the 2019 general elections.

However, the way the INC under the newly elected president Rahul Gandhi came back bagging 70-plus seats suspending the BJP's one sided winning moves, cannot be taken lightly and I am sure it has been taken seriously by the political analysts. Though the BJP won in Gujarat, it is a vote against NDA's stupid and announcement based policies. In Himachal Pradesh, it is a rotation of sorts, which happens every-time like in Tamil Nadu -- so it is a sort of no-brainer.

Coming back to the Gujarat elections, I had earlier spoken of the BJP not doing too well in PM's home turf, especially when some of the political PUNDITS were giving 135 plus to the party in power.

Narendra Modi is an announcement minister -- recently during his visit to my home state Assam and to other North Eastern states, a Rs.90,000 crore package was announced; but no one knows from where the money will come from!! According to the media reports, the NDA government is on the verge of exceeding its fiscal deficit targets. 

In spite of a BJP win in  Gujarat, I sincerely THANK and HUG the GUJARATI diaspora for listening to some of us and vote according to that chosen strategy. 

Interestingly in this context I am reminded of Renuka Choudhury and Telugu Desham episodes - while the former never won an election after my virulent campaign against her through this blog, the latter made an emphatic come back in the last election defeating the INC; after my appeals to the Telugu masses did not go begging. I hope in future too, I would get your unflinching help and support, to dethrone the tyrants and demagogues.

Anyway, coming back to the day's highlight: the Indices had slumped in early trade after early trends of Gujarat assembly election results showed a close fight between incumbent BJP party and rival Congress party. Market soon reversed losses in morning trade as concerns eased following BJP crossing past simple majority mark in its stronghold Gujarat state. Market extended gains in mid-morning trade as BJP win was confirmed in both the states. Stocks held firm in late afternoon trade.

The S&P BSE Mid-Cap index rose 1.17%. The S&P BSE Small-Cap index gained 0.92%. Both these indices outperformed the Sensex.

The broad market depicted strength. There were almost two gainers for every loser on BSE. 1,621 shares rose and 812 shares fell. A total of 134 shares were unchanged.

Most capital goods stocks gained on renewed buying. ABB India (up 1.8%), Bharat Electronics (up 1.67%), BEML (up 0.87%), L&T (up 1.34%), and Siemens (up 1.77%) gained. Bharat Heavy Electricals (Bhel) (down 0.17%), Havells India (down 0.4%), and Thermax (down 0.17%) declined.

Realty stocks were mixed. DLF (up 1.23%), Sobha (up 5.68%), NBCC (up 0.62%), and Housing Development & Infrastructure (HDIL) (up 1.22%) edged higher. D B Realty (down 0.29%), Indiabulls Real Estate (down 0.49%), Oberoi Realty (down 1%), Unitech (down 0.3%) and Godrej Properties (down 0.03%) declined.

Ramky Infrastructure rose 3.61% after the company said it allotted 1.2 crore warrants to promoters and non-promoters. The announcement was made after market hours on Friday, 15 December 2017.

Poll in Himachal Pradesh took place in single phase on 9 November 2017, while in Gujarat, poll was scheduled in two phases on 9 and 14 December 2017.

On the macroeconomic data front, India's merchandise exports surged 30.5% to $26.2 billion in November 2017 over a year ago. Meanwhile, merchandise imports increased 19.6% to $40.02 billion. The trade deficit rose 3.2% to $13.83 billion in November 2017 from $13.01 billion in November 2016.

India's services exports improved 7.9% to $14.15 billion in October 2017 over October 2016. Meanwhile, India's services imports galloped 13.3% to $8.70 billion in October 2017. India's services trade surplus rose 0.3% to $5.45 billion in October 2017 from $5.43 billion in October 2016.

Overseas, Asian stocks were mixed. Japan's export growth accelerated in November to mark a full year of annual gains. The 16.2% export growth in November, showed acceleration from a 14% year-on-year increase in the previous month, according to the Ministry of Finance.

China's central bank raised interest rates on reverse repurchase agreements, or reverse repos, used for open market operations by 5 basis points for the 14-day tenor, following upward adjustments on other tenors last week.

US stocks rose to all-time highs on Friday, 15 December 2017, as expectations of a Republican tax bill passing increased. The plan will likely cut the corporate tax rate to 21% from 35%.

Today's calls:

#Today most of the bank stocks were moving high. My recommended SBI  (Rs.119) and PNB (Rs.178) were both in spirited form. In this context, I have taken positions in Dena Bank Ltd at around Rs.24.20 on the hopes that the NCTL's actions would make it look much better 3-6 months down the line. I have kept targets of Rs.36--37 for the same.

#Today MBL Infrastructure Ltd (Rs.24.40) rose on the hopes of early settlement with the NCTL. According to my sources, after the CMD, Mr.A Lakhotia resigned citing personal grounds, the company is looking at the court's decision. The shares of the company has a book value of around Rs. 168.69, which means even if the company gets liquidated (say) the shareholders stands to get around 7x CMP or in other words on an invesment of Rs.1 lakh the investors stands to gain Rs.7 lakhs (albeit minus any additional liability) . Today the share made an intraday high of Rs.24.90, with volumes above 1 lakh in the NSE.

#I had recommended Aban Offshore Ltd to some of my clients for intra-day play, which it achieved. The stock touched Rs.195.05, intraday. However, those who are still holding the stock can continue add on declines, with a SL at Rs.186, as the crude oil prices have more or less remained near the yearly highs.

~~with inputs from Capital Market - Live News

Pre-Session: Market may gain as BJP leads in vote count in Gujarat

18-Dec-17: Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could surge 53.20 points at the opening bell. Marketmen will keenly track the outcome of the recently concluded assembly elections in Himachal Pradesh and Gujarat. Counting is underway and early leads showed BJP leading in both the states. BJP was leading in 57 seats while Congress was leading in 21 seats in Gujarat. Results of both the states will be announced today, 18 December 2017.

Poll in Himachal Pradesh took place in single phase on 9 November 2017, while in Gujarat, poll was scheduled in two phases on 9 and 14 December 2017.

Overseas, Asian stocks were mixed. US stocks rose to all-time highs on Friday, 15 December 2017, as expectations of a Republican tax bill passing increased. The plan will likely cut the corporate tax rate to 21% from 35%.

Back home, the stock market closed the last trading session of the week with modest gains on Friday, 15 December 2017. The Sensex advanced 216.27 points or 0.65% to settle at 33,462.97, its highest closing level since 29 November 2017.

Foreign portfolio investors (FPIs) sold shares worth a net Rs 921.03 crore on Friday, 15 December 2017, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 635.44 crore on Friday, 15 December 2017, as per provisional data.

On macroeconomic data front, India's merchandise exports surged 30.5% to $26.2 billion in November 2017 over a year ago. Meanwhile, merchandise imports increased 19.6% to $40.02 billion. The trade deficit rose 3.2% to $13.83 billion in November 2017 from US$ 13.01 billion in November 2016.

India's services exports improved 7.9% to $14.15 billion in October 2017 over October 2016. Meanwhile, India's services imports galloped 13.3% to $8.70 billion in October 2017. India's services trade surplus rose 0.3% to $5.45 billion in October 2017 from $5.43 billion in October 2016.

Among corporate news, Wipro announced a partnership with Headspin, a San Francisco-based powerful, easy-to-use mobile experience platform, to offer next-generation mobility quality engineering and testing solutions on global mobile networks. Wipro Ventures, the strategic investment arm of Wipro that is focused on investing in early-to-mid-stage startups, made an investment in Headspin in October 2017. The announcement was made after market hours on Friday, 15 December 2017.

~~Powered by Capital Market - Live News

Pre-Session: Market may gain in early trade on exit polls' boost

15-Dec-17: Market is set to gain in early trade on the back of exit polls predicting a clear win for the BJP in the assembly elections of Gujarat and Himachal Pradesh. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could surge 64 points at the opening bell.

Overseas, Asian stocks came under pressure with Japanese and Hong Kong markets leading declines in the region after US markets closed in the red. US stocks closed lower yesterday, 14 December 2017, as two GOP Senators raised some concerns about the tax bill.

The European Central Bank (ECB) has hiked its growth forecasts, but admitted that inflation still won't be on target by 2020. In its final meeting of 2017 held yesterday, 14 December 2017, the eurozone's central bank voted to leave interest rates on hold - and repeated its commitment to running an asset-purchase stimulus programme until at least next September.

Closer home, foreign portfolio investors (FPIs) bought shares worth a net Rs 232.17 crore yesterday, 14 December 2017, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 374.21 crore yesterday, 14 December 2017, as per provisional data.

Among corporate news, Vedanta said it proposes to offer rated, secured, redeemable, non-cumulative, non-convertible debentures aggregating to Rs 500 crore. In this regard, the company is holding a meeting of its duly constituted committee of the board on 19 December 2017. The announcement was made after market hours yesterday, 14 December 2017.

Mahindra & Mahindra (M&M), India's leading SUV manufacturer, announced that it plans to increase prices of its passenger and commercial vehicles by up to 3% with effect from 1 January 2018. The announcement was made after market hours yesterday, 14 December 2017.

HDFC Bank announced that its board will meet on 20 December 2017 to consider a proposal for raising of funds through various means including a proposal for preferential issue to Housing Development Finance Corporation (the promoter). The announcement was made after market hours yesterday, 14 December 2017.

On the macro front, in a boost to the Narendra Modi led NDA government at the centre, a host of exit polls predicted a clear victory for the Bharatiya Janata Party (BJP) in the recently concluded assembly elections for Gujarat and Himachal Pradesh. Exit polls predicted that the BJP will retain Gujarat while wresting power from the Congress in Himachal Pradesh. Counting of votes for these two states is scheduled on Monday, 18 December 2017.

The winter session of the Parliament begins today, 15 December 2017. This session will have a total of 14 working days. The session concludes on 5 January 2018. The government has a slew of important Bills on its agenda in this session. The Financial Resolution and Deposit Insurance Bill, 2017 is slated to come up in this session of Parliament. This Bill aims to limit the impact of the failure of financial institutions like banks and NBFCs. It has also been cleared by the standing committee.

Back to market, key benchmark indices ended higher after a volatile trading session yesterday, 14 December 2017. The Sensex had risen 193.66 points or 0.59% to settle at 33,246.70, its highest closing level since 11 December 2017.

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Market Pulse

The stock market extended intraday slide in mid-morning trade. After a positive start, key indices traded within a narrow range around the flat line till morning trade. Investors digested the US Federal Reserve's decision of raising interest rates for the third time this year, underlining the confidence that the United States remains on solid footing.

Higher interest rates in the US may drain liquidity from the emerging markets, including India, and redirect it to developed economies.

The S&P BSE Mid-Cap index fell 0.43%. The S&P BSE Small-Cap index declined 0.65%. Both the indices underperformed the Sensex.

The breadth, indicating the overall health of the market, was weak. On the BSE, 1,448 shares declined and 831 shares rose. A total of 116 shares were unchanged.

Metal and mining stocks declined. SAIL (down 2.92%), Jindal Steel & Power (down 0.9%), NMDC (down 0.58%), Vedanta (down 0.58%), Hindustan Copper (down 0.49%), JSW Steel (down 0.25%) and Hindustan Zinc (down 0.12%) edged lower. Nalco (up 0.2%) and Hindalco Industries (up 0.02%) edged higher.

Tata Steel fell 0.54%. The company said that a meeting of its board of directors will be held on 18 December 2017 and will conclude on 19 December 2017, to consider a proposal for raising of funds by issue of equity shares or other securities including through qualified institutions placement, rights issue, preferential issue or through any other permissible mode or a combination thereof, subject to such regulatory/statutory approvals as may be required, including approval of shareholders of the company, if applicable. The announcement was made after market hours yesterday, 13 December 2017.

On the macro front, the government will announce inflation data based on wholesale price index (WPI) for November at 12:00 IST today, 14 December 2017. Wholesale prices rose 3.59% year-on-year in October, following a 2.6% increase in September.

Among other news, the second phase of polling in Gujarat is underway today, 14 December 2017 in 93 assembly constituencies. Counting of votes will take place on 18 December 2017. Gujarat recorded a polling of 68% in the first phase of assembly elections for 89 assembly constituencies held on 9 December 2017. The Gujarat assembly has 182 seats.

Overseas, Asian stocks were mixed. US stocks rose yesterday, 13 December 2017, with the Dow posting a record closing, after the Federal Reserve hiked interest rates. Investors also digested news of Congressional leaders reaching a tentative agreement on a tax overhaul plan.

The Fed raised interest rates by a quarter point after the conclusion of its two-day policy meeting yesterday, 13 December 2017, in a move that was widely expected by markets. That increased the central bank's target range to between 1.25% and 1.5%. The Fed also raised its GDP forecast from 2.1% to 2.5%. Its inflation forecast was raised from 1.6% to 1.7%.

In Europe, a meeting of the European Central Bank (ECB) is scheduled today, 14 December 2017, to announce its interest rate decision. The ECB held its benchmark refinancing rate at 0% on 26 October, as widely expected, and decided to reduce its quantitative easing programme to a monthly pace of €30 billion from January with the option of extending it in September 2018.

Today's Calls:

#In view of the uncertainty regarding Gujarat elections, I suggest you to EXIT all the Gujarat based companies, including my earlier recommended Suzlon Energy Ltd at the CMP of around Rs.13.45.

#The Stock of HDIL is looking good at the CMP of Rs.52.80. You can buy for the short term targets of Rs.55-56, keeping a Strict SL of Rs.51. HDIL has recently sought shareholders approval to issue up to 2 crore warrants on preferential basis to promoter Sarang Wadhawan in order to infuse long term capital into the company. The proceeds of the preferential issue of warrants will be utilised by the company to consolidate and infuse long term working capital.

#Those who are holding the shares of MBL Infrastructure Ltd (Rs.23.40) can continue to add on every decline, as the  company is almost through with the NCLT proceedings; according to some unconfirmed sources. It has a healthy  order book of around Rs.7000 crore against a debt of Rs.1700 crore. The promoter is  likely to bring in Rs.120 crore for an amicable settlement with the lenders. I am looking for targets of Rs.100 - plus (one hundred) in the next 6 to 9 months time frame. However, put a SL at Rs.21.60, if the the things do not proceed as expected. This could be the stock of FY19. Surprisingly, the stock of MBL Infrastructure Ltd has been placed in the T-group, when there is no volume in the counter. Hope the stock exchanges would soon review their decision, considering the current positive developments, surrounding the company.

~~ with inputs from Capital Market - Live New

Pre-Session: Market set to surge in early trade

14-Dec-17: Market may surge in early trade on positive global cues after the US Federal Reserve raised interest rates for the third time this year. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could surge 51 points at the opening bell.

Overseas, Asian stocks edged higher after Federal Reserve raised rates for the third time this year. US stocks rose yesterday, 13 December 2017, with the Dow posting a record closing, after the Federal Reserve hiked interest rates. Investors also digested news of Congressional leaders reaching a tentative agreement on a tax overhaul plan.

The Fed raised interest rates by a quarter point after the conclusion of its two-day policy meeting yesterday, 13 December 2017, in a move that was widely expected by markets. That increased the central bank's target range to between 1.25% and 1.5%. The Fed also raised its GDP forecast from 2.1% to 2.5%. Its inflation forecast was raised from 1.6% to 1.7%.

A meeting of the European Central Bank (ECB) is scheduled today, 14 December 2017, to announce its interest rate decision. The ECB held its benchmark refinancing rate at 0% on 26 October, as widely expected, and decided to reduce its quantitative easing programme to a monthly pace of €30 billion from January with the option of extending it in September 2018.

Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 578.65 crore yesterday, 13 December 2017, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 116.48 crore yesterday, 13 December 2017, as per provisional data.

Among corporate news, Rural Electrification Corporation (REC) said it has launched an issue of $400 million, 3.068% notes due 2020, priced on 11 December 2017. The notes will mature on 2020 and all principal and interest payments will be made in US dollars. The settlement date for the notes is expected to be 18 December 2017. The announcement was made after market hours yesterday, 13 December 2017.

The net proceeds from the sale of the notes will be applied for refinancing the outstanding external commercial borrowings of the company within the ambit of the ECB Guidelines and such other guidelines specified by the Reserve Bank of India (RBI).

On the macro front, the government will announce inflation data based on wholesale price index (WPI) for November at 12:00 IST today, 14 December 2017. Wholesale prices rose 3.59% year-on-year in October, following a 2.6% increase in September.

Among other news, the second phase of polling in Gujarat will take place today, 14 December 2017 in 93 assembly constituencies. Counting of votes will take place on 18 December 2017. Gujarat recorded a polling of 68% in the first phase of assembly elections for 89 assembly constituencies held on 9 December 2017. The Gujarat assembly has 182 seats.

The stock market registered modest losses in a highly volatile session of trade yesterday, 13 December 2017. The Sensex had fallen 174.95 points or 0.53% to settle at 33,053.04, its lowest closing level since 7 December 2017.

Today's Calls:
#Intraday Buy Titan Ltd at around Rs.823-825, SL: Rs.815, T: Rs.841.
#Intraday Sell Punjab National Bank Ltd at around Rs.168.50-169, SL: Rs.172, T: Rs.164. The stock of PNB is now at Rs.168.35. But Ignore this recommendation. Call Closed. 
#Intraday Sell Tata Motors DVR at around Rs.222, SL:  Rs.226.5, T: Rs.217. Exit near the cost price. Call Closed.
#Intraday Sell Silver around Rs.37500, SL above Rs.37750, T: Rs.37100.

~~ with inputs from Capital Market - Live News....

Market Pulse

The stock market reversed intraday losses to enter into positive terrain in mid-morning trade. Key indices started the session on a subdued note and traded in negative zone till morning trade on mixed Asian cues, data showing surge in India's consumer price inflation and a moderate growth in industrial production. Indices reversed losses in mid-morning trade.

The S&P BSE Mid-Cap index rose 0.23%, underperforming the Sensex. The S&P BSE Small-Cap index advanced 0.4%, matching the Sensex's gains in percentage terms.

Overseas, Asian stocks were mixed as investors awaited the conclusion of the Federal Reserve's two-day policy meeting. US stocks rose yesterday, 12 December 2017 amid growing optimism that Republican lawmakers would be able to revamp the corporate tax system. Wall Street also looked to the Federal Reserve as its two-day policy meeting kicked off.

The US Federal Reserve's Federal Open Market Committee (FOMC) two-day meeting which began yesterday, 12 December 2017, on interest rate decision, concludes later in the global day today, 13 December 2017. The Federal Reserve left the target range for its federal funds rate unchanged at 1% to 1.25% during its November 2017 meeting as widely expected.

Closer home, the breadth, indicating the overall health of the market, was positive. On the BSE, 1,337 shares rose and 971 shares declined. A total of 131 shares were unchanged.

IT stocks nudged higher. Tech Mahindra (up 0.96%), TCS (up 0.71%), Persistent Systems (up 0.47%), Oracle Financial Services Software (up 0.35%) and Infosys (up 0.34%) gained. HCL Technologies (down 0.73%) edged lower.

On the macro front, the all-India general inflation based on the consumer price index (CPI) surged to 4.88% in November 2017, compared with 3.58% in October 2017. The core CPI inflation increased to 4.69% in November 2017 compared with 4.4% in October 2017. The inflation data was released by the government after market hours yesterday, 12 December 2017.

India's industrial production rose at moderated pace of 2.2% in October 2017 over October 2016, while showing a deceleration in growth from 4.1% increase in September 2017, data released by the government after market hours yesterday, 12 December 2017 showed.

Today's Calls:

#Buy MBL Infrastructure Ltd at around Rs.24, for a short term target of Rs.31. The Company could emerge as India’s first road-builder to achieve a successful insolvency resolution on about Rs 1,700 crore of outstanding loans, with the promoter agreeing to infuse more capital into the business, two people familiar with the process told ET.  MBL promoter Anjanee Kumar Lakhotia will now bring in about Rs 120 crore, nearly five times more than the capital he had promised initially, one of the people cited above said.
According to a report in Financial Express, 16, November, '17: Recently, NHAI had modified the model concession agreement (CA) of HAM projects to address the developers’ challenges during the construction phase as well as aid the liquidity situation during the initial period of implementation. Maulesh Desai, associate director, CARE Ratings, is of the view that the timely release of funds towards the construction cost has increased confidence among lenders for the new model. Desai added that he expects issues related to right of way (RoW) to be resolved by NHAI in the near to medium term, resulting in increased traction in the execution of projects awarded till FY17. I am expecting the stock to give multi-bagger returns going forward. 

#The shares of Sulon Energy Ltd (Rs.13.70) could do well, as the Crude Oil prices are moving up in the international markets. The company was able to cut short its debt portfolio during the last couple of years, substantially. Buy with a short term target of Rs.22.

#The shares of Uttam Galva Steels Ltd, in which the world's largest steel maker ArcelorMittal had bought 29.05% stake in 2009, is consolidating around the CMP of Rs.23. You should accumulate the scrip in every decline, as according to a report published in The Business Standard, November 30, 2017 ArcelorMittal has made a strong pitch as an eligible bidder for distressed assets currently going through insolvency resolution. In other words they could increase their stake in Uttam Galva Steels Ltd.

#My recommended SKM Egg Products Ltd (Rs.101) at around Rs.78, today touched Rs.1020.90 intra-day, up  more than 13%%, intraday. Those who are still holding the share can book at least 50% of profits and hold the rest with a SL of Rs.97.

~~ with inputs from Capital Market - Live News

Pre-Session: Flat opening on cards

13-Dec-17: Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 4.50 points at the opening bell.

Overseas, Asian stocks were mixed as investors awaited the conclusion of the Federal Reserve's two-day policy meeting. US stocks rose yesterday, 12 December 2017 amid growing optimism that Republican lawmakers would be able to revamp the corporate tax system. Wall Street also looked to the Federal Reserve as its two-day policy meeting kicked off.

The US Federal Reserve's Federal Open Market Committee (FOMC) two-day meeting which began yesterday, 12 December 2017, on interest rate decision, concludes later in global day today, 13 December 2017. The Federal Reserve left the target range for its federal funds rate unchanged at 1% to 1.25% during its November 2017 meeting as widely expected.

Closer home, foreign portfolio investors (FPIs) bought shares worth a net Rs 843.20 crore yesterday, 12 December 2017, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 853.67 crore yesterday, 12 December 2017, as per provisional data.

Among corporate news, Wipro will be watched. Topcoder, the world's largest workforce marketplace for designers, developers, and data scientists, announced the launch of Hybrid Crowd, an extension of the Topcoder platform that enables enterprises to crowdsource work to public, private, and certified communities. Topcoder became a part of Wipro in November 2016. Hybrid Crowd is a first-of-its-kind platform that combines the power of Topcoder's 1.2 million member global community with the networks of technical talent that exist within every organization. Enterprises now have access to an integrated platform for crowdsourced talent which they can utilize to provision work to the right people at any stage of a project. The announcement was made after trading hours yesterday, 12 December 2017.

Bharti Airtel and Warburg Pincus, a global private equity firm focused on growth investing, announced that an affiliate of Warburg Pincus will acquire up to a 20% equity stake in Bharti Telemedia, the DTH arm of Airtel, for approximately $350 million. Of this, 15% stake will be sold by Bharti Airtel and the balance by another Bharti entity which holds 5% stake. Upon closing of the transaction, Airtel will own an 80% equity stake in Bharti Telemedia. The announcement was made after trading hours yesterday, 12 December 2017.

Bharti Telemedia is one of the largest Direct-To-Home (DTH) paid TV service providers in India and offers services under the Airtel TV brand. It had approximately 14 million subscribers and approximately $550 million in revenues during the 12-month period ended 30 September 2017.

On the macro front, the all-India general inflation based on the consumer price index (CPI) surged to 4.88% in November 2017, compared with 3.58% in October 2017. The core CPI inflation increased to 4.69% in November 2017 compared with 4.4% in October 2017. The inflation data was released by the government after market hours yesterday, 12 December 2017.

India's industrial production rose at moderated pace of 2.2% in October 2017 over October 2016, while showing a deceleration in growth from 4.1% increase in September 2017, data released by the government after market hours yesterday, 12 December 2017 showed.

The stock market registered modest losses yesterday, 12 December 2017, after previous three sessions of gains. The Sensex had fallen 227.80 points or 0.68% to settle at 33,227.99, its lowest closing level since 7 December 2017.

~~ Powered by Capital Market - Live News

Market Pulse

Key benchmark indices witnessed a downward trend in early trade. The Sensex is now trading at 33,379.02 down 76.77 points or 0.23%. The Nifty is now trading at 10,291.20 down 31.05 points or 0.30%.

The S&P BSE Mid-Cap index fell 0.1%. The S&P BSE Small-Cap index declined 0.04%. Both the indices outperformed the Sensex.

Overseas, Asian stocks edged higher following a strong lead from Wall Street overnight. US equities closed higher yesterday, 11 December 2017, reversing earlier weakness following a terror incident near New York City's Times Square. The Dow Jones Industrial Average and the S&P 500 notched record closing highs.

The US Federal Reserve's Federal Open Market Committee (FOMC) starts its two-day meeting on interest rates later in global day today, 12 December 2017. The US Federal Reserve will announce its interest rate decision tomorrow, 13 December 2017. The Federal Reserve left the target range for its federal funds rate unchanged at 1% to 1.25% during its November 2017 meeting as widely expected.

Closer home, the breadth, indicating the overall health of the market, was positive. On the BSE, 634 shares rose and 588 shares declined. A total of 47 shares were unchanged.

Asian Paints fell 1.91% at Rs 1,106.50. The company said that it purchased the balance 49% stake in the kitchen solution provider company, Sleek International, from Ahuja Family and the shareholders agreement dated 8 August 2013 with the Ahuja Family has been terminated. Sleek has now become a wholly-owned subsidiary of the company. The announcement was made after market hours yesterday, 11 December 2017.

On 8 August 2013, Asian Paints had announced that it acquired 51% stake in Sleek from the Ahuja family by entering into a shareholders agreement with the Ahuja family and Sleek.

On macro front, the government will announce industrial production data for October today, 12 December 2017. India's industrial production increased by 3.8% year-on-year in September, following an upwardly revised 4.5% gain in the previous month in August.

The government will announce today, 12 December 2017, inflation data based on consumer price index (CPI) for November. Consumer prices increased 3.58% year-on-year in October, above 3.28% in September.

Today's Calls:

#Intraday Sell Indian Bank Ltd at around Rs.385.5, SL:N Rs.389, T: Rs.378.

#Intraday Sell Pidilite Industries Ltd at around Rs.893, SL: Rs.901, T: Rs.878-872. Book Partial Profit around Rs.885.
1st target of Rs.878, almost achieved--made a low of Rs.878.60, till now. Book Full Profit at around Rs.874.80.

#Suzlon Energy Ltd (Rs.13.85) is consolidating around the price range of Rs.13.85-13.80. Suzlon Energy had in June, '17 approved allotment of 79.70 lakh shares on conversion of 2,046 foreign currency convertible bonds, maturing in July 2019, at ₹15.46 each. The conversion rate for the equity share allotment is ₹60.225 per dollar. Following the allotment, the paid-up capital of the company has increased to ₹1,038.41 crore.
Meanwhile, the auction in the Wind and Solar Energy space has commenced. Moreover, due to less capacity addition in FY18, there are chances of energy prices firming-up in the coming days. Moreover, India has an ambitious target of 175,000 megawatt (MW) of renewable power by 2022. India, at present, has an installed capacity of 60,157 MW renewable power and a rapid development is expected in the next five years.
Besides, aiming to address the quality issues in India’s rapidly growing renewable energy sector, the union ministry of new and renewable energy (MNRE) has come out with a new policy for “testing, standardisation and certification” of products in the renewable energy sector. The policy also aims to develop standards for all renewable energy equipment in line with the international practices.The concerns of the government are not ill-founded as voices have been raised about poor quality Chinese solar modules— rejected by developers—being sold in the Indian market at a discount. This is likely to help the reputed players in this space, like Suzlon Energy Ltd. I am looking for targets of Rs.19-22, by March, '18.
Most of its non-auction based order book has power purchasing agreements (PPAs) and is executing them. The rest of the orders are in the process of obtaining PPAs. So, the whole 1,562-megawatt (MW) order book (231MW solar and 1,331MW wind) is intact and executable.
In terms of commissioning volumes, the market is expected to see slower growth in the current fiscal, compared with the year gone by. But Suzlon expects to continue to gain market share—it aims to increase it from 32% in 2016-17 to 40% in the current fiscal—helping it outdo industry performance. In another development, Brent crude oil prices have climbed past $65 a barrel on Forties pipeline shutdown. This has pushed the shares of my recommended Aban Offshore Ltd to around Rs.207 today. This development is likely to give a positive movement to the shares of Renewable Energy companies like Suzlon Energy Ltd.
Anyway, the FCCBs has been priced at around Rs.15.46 and hence in any case the share should move above Rs.15. Or in the current scenario, the share price should invariably trade above Rs.15, the 1st resistance coming at Rs.15.20. Yesterday, the percentage of  Deliverable Quantity to Traded Quantity
in Suzlon Energy Ltd was whooping 38.51% -- this shows that large scale accumulation is going in the scrip by the informed investors.

#Jai Balaji Industries Ltd today hit the Upper Circuits at around Rs.22.05 and is now trading at around Rs.21. The scrip which was recommended around Rs.12-14, gave good returns to the investors in the short term. However, I would suggest non-risk taking investors to book full profits in Jai Balaji Industries Ltd at around Rs.21-22 and shift to Uttam Galva Steels Ltd at around Rs.23.50-24, which has a similar story, but has not moved up. Having said that, if you are thinking of taking too much risk in Jai Balaji Industries Ltd, then you can hold the scrip with a SL of Rs.18.6 -- there is a very strong resistance at Rs.24.
Meanwhile, the Billionaire Lakshmi Mittal’s ArcelorMittal recently said that its 29% equity stake in Uttam Galva Steels Ltd will not impede them from participating in bidding for stressed steel assets in India. 

#Today Shilpi Cable Technologies Ltd tanked to around Rs.13, but according to my close sources the company is functioning normally. In case if you are too apprehensive after buying the share, then please do put at SL at Rs.12.50. I on the contrary feel that the downside is limited, and it has huge upside, especially when the Sensex is above 33k.

#Today Unitech Ltd touched Rs.8.30, due to sustained buying, however, I feel for the time being you should book complete profit and let the stock to stabilize before it again jumps above Rs.8.30. I think you have read the media reports that Unitech Ltd's management has moved the honouable Supreme Court after NCLT recently invoked the provisions of the Companies Act, allowed the central government to take over the Unitech Limited and appoint its nominee directors in the Board of the firm.

#P C Jewellers Ltd recommended at around Rs.396, last Thursday, today touched Rs.450.90. I feel most of you by now have booked profit in the counter. If you remember, I have recommended this stock several times in this blog. If I can recollect correctly, I started recommending this stock from around Rs.82-84, in this blog.

#Those who are still holding the shares of SKM Egg Products Ltd (Rs.90), should keep a SL at Rs.86. The poultry is expected to do well in the coming days, with the rise in population. But I am not too bullish in this scrip, as of now.

#The shares of Prakash Industries Ltd, an integrated steel player with mines, today touched Rs.154.80. I  had recommended this stock several times in this blog starting from Rs.41-42; during the last few years. The steel sector is showing a turnaround and most of players is expected to do well in the coming few months.

#Energy Development Ltd (Rs.28) is on fire today. You can hold the stock with a strict stop loss of Rs.26. This is Amar Singh and Jaya Prada company. In stock market you need to buy and hold a scrip with appropriate stop losses in place, to make money on a consistent basis.

~~with inputs from Capital Market - Live News

Market Pulse

Key benchmark indices edged higher in early trade tracking positive global cues. The S&P BSE Mid-Cap index rose 0.39%, under-performing the Sensex. The S&P BSE Small-Cap index advanced 0.62%, outperforming the Sensex. The market is not expecting a deep correction, so every dip is a buying opportunity.

Overseas, Asian stocks edged higher following strong finish on the Wall Street on Friday. US equities closed higher on Friday, 8 December 2017, following the release of a stronger-than-expected jobs report. The US economy added 228,000 jobs last month, according to the Bureau of Labor Statistics. The unemployment rate held steady at 4.1%.

Closer home, the breadth, indicating the overall health of the market, was strong. On the BSE, 1,158 shares rose and 309 shares declined. A total of 69 shares were unchanged.

Axis Bank rose 1.39% at Rs 550 after the bank said its shareholders have given an approval to a proposal to raise equity and equity-linked capital of Rs 11626 crore from a set of marquee investors including entities affiliated with Bain Capital Private Equity, other investors advised by Capital Research and the bank's promoter, Life Insurance Corporation of India (LIC). The announcement was made after market hours on Friday, 8 December 2017.

UltraTech Cement advanced 1.73% at Rs 4,225.85 after the company said that its board at a meeting held on 9 December 2017, approved the setting up of a 3.5 MTPA integrated cement plant at Pali, Rajasthan, at an investment of around Rs 1850 crore. Commercial production from the plant is expected to commence by June 2020.

The board also approved a proposal for an increase in the investment limits by registered foreign portfolio investors (RFPIs) including foreign institutional investors (FIIs) from the existing limit of 30% of the paid-up equity share capital upto 40% of the paid-up equity share capital of the company. The announcement was made on Saturday, 9 December 2017.

Power Grid Corporation of India (PGCIL) was up 0.44% at Rs 203.80 after the company said its board at a meeting held on 8 December 2017, accorded approval for two investment proposals aggregating to Rs 268.53 crore. The announcement was made after market hours on Friday, 8 December 2017.

Indiabulls Housing Finance fell 0.22% at Rs 1,204.60. The company said that it has sold its 100% shareholding in Indiabulls Life Insurance Company, presently a non-operational company with no business or license, to SORIL Holdings and Ventures (SHVL), at face value for an aggregate cash consideration of Rs 5 lakh. This transaction between the company and SHVL, being related parties, is at arms' length. The announcement was made on Saturday, 9 December 2017.

Among other news, Gujarat recorded a polling of 68% in the first phase of assembly elections for 89 assembly constituencies held on Saturday, 9 December 2017. The second phase polling will take place on 14 December 2017 in 93 assembly constituencies. Counting of votes will take place on 18 December 2017. The Gujarat assembly has 182 seats.

Today's Calls:

#P C Jewellers Ltd recommended at around Rs.396, last Thursday, reached both the targets (intraday high Rs.432.70).  Book Full Profits.

#Gujarat Narmada Valley Fertilizers & Chemicals Ltd recommended last Friday at Rs.465-467. Book PARTIAL PROFIT around Rs.473 (Intraday high: Rs.474.30).

#INTRADAY Buy Bata Ltd at around Rs.740, SL: Rs.729,  Target: Rs.753. Exit at the CMP of Rs.741-742. Call Closed.

#Jai Balaji Industries Ltd (Rs.21) has hit the upper circuits, on the news that most lenders have sold loans of BILT and Jai Balaji to ARCs. Hereto, this stock which was recommended around Rs.12-14, has given superb returns to the investors, throwing mud on the faces of naysayers.

#Buy Shilipi Cables Ltd at around Rs.13.30, for targets of Rs.17-19. After the positive news on Jai Balaji Industries Ltd, the market is optimistic about the debt restructuring of this company.

#Buy Aurobindo Pharma 700CE (CMP: Rs.15.50) on intraday declines at around Rs.15.0-14.50, SL 12; T: Rs.20-23. Book PARTIAL PROFIT at around Rs.17.75....

#B F Utilities Ltd which I recommended at around Rs.130, today touched Rs.485. Now if B F Utilitity Ltd is moving up on the government of India's auction buzz, can Suzlon Energy Ltd (Rs.14) be far behind? Accumulate the shares of Suzlon Energy Ltd on every intraday decline. Or the investors should buy and hold.
Meanwhile, Inox Wind expects order inflows to normalize from next quarter (Q3) onwards and execution to pick up from Q4. Suzlon Energy pegs the market to expand to about 6,000 megawatts (MW) in the next fiscal year. For perspective, India is estimated to add 1,000-1,500 MW of wind capacity this fiscal year, compared to 5,400 MW last year. India has lined up an ambitious plan to award 100 gigawatts (GW) of solar and wind contracts by March 2020.
Also, there are news reports that State-run Solar Energy Corporation of India (SECI) has floated tender for setting up 2 GW inter- state transmission system (ISTS) connected wind power capacities across the country. The company has invited proposals for setting up of ISTS connected Wind Power Projects in India, on 'Build Own Operate' basis for an aggregate capacity of 2000 MW, as per the tender document. Thus the Process has already commenced......
Advantage Suzlon Energy Ltd (Rs.13.85), B F Utilities Ltd (Rs.478) and Inox Wind Ltd (Rs.145.55)....

#The stock of Unitech Ltd (Rs.8.35) which was recommended repeatedly in this blog starting from around Rs.5-6, is buzzing since yesterday, after the media reports came  out saying that the National Company Law Tribunal (NCLT) has allowed the government of India to appoint 10 directors on the board of debt-ridden realty firm Unitech Ltd. However, the stock price which touched Rs.8.70, may not go too further as nothing on the table happened, as of now. The stock hit the 20% yesterday on positive sentiment built up. Therefore, book profits before the euphoria dies down and then wait for the dips to enter again, just as you did in case of Jai Balaji Industries Ltd.

#The Risk taking traders can buy Uttam Galva Steels Ltd at around Rs.23.70, for short term targets of Rs.29-31. Bankers are looking to speed up the resolution of 28 accounts including Videocon Industries Ltd, Jaipraksh Associates and Uttam Galva Steel as a December 13 deadline looms. The resolution for Uttam Galva Steel, BILT, Jai Balaji, Jayaswal Neco, Soma Enterprise and Anrak Aluminium is either done or is in the final stages, bankers said. Lenders said that in some of these cases banks have either sold the loans to asset restructuring companies (ARCs) or settled them with the promoters.

#Intraday Buy Zinc at around Rs.199.80, SL below Rs.198.90, T: Rs.201.50.

#Intraday Buy Copper at around Rs.425, SL below Rs.423, T: Rs.428..

Nifty 50:
#Demand Levels: 10235/10195
#Suppy Levels: 10300/10335

Bank Nifty: 
#Demand Levels: 25266/25230
#Supply Levels: 25400/25500

~~ with inputs from Capital Market - Live News

Pre-Session: Market may edge higher in early trade

11-Dec-17: Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could gain 22 points at the opening bell.

Overseas, Asian stocks traded mixed. US equities closed higher on Friday, 8 December 2017, following the release of a stronger-than-expected jobs report. The US economy added 228,000 jobs last month, according to the Bureau of Labor Statistics. The unemployment rate held steady at 4.1%.

Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 675.16 crore on Friday, 8 December 2017, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1243 crore on Friday, 8 December 2017, as per provisional data.

Among corporate news, Axis Bank said its shareholders have given an approval to a proposal to raise equity and equity-linked capital of Rs 11626 crore from a set of marquee investors including entities affiliated with Bain Capital Private Equity, other investors advised by Capital Research and the bank's promoter, Life Insurance Corporation of India (LIC). The announcement was made after market hours on Friday, 8 December 2017.

Indiabulls Housing Finance said that it has sold its 100% shareholding in Indiabulls Life Insurance Company, presently a non-operational company with no business or license, to SORIL Holdings and Ventures (SHVL), at face value for an aggregate cash consideration of Rs 5 lakh. This transaction between the company and SHVL, being related parties, is at arms' length. The announcement was made on Saturday, 9 December 2017.

Among other news, Gujarat recorded a polling of 68% in the first phase of assembly elections for 89 assembly constituencies held on Saturday, 9 December 2017. The second phase polling will take place on 14 December 2017 in 93 assembly constituencies. Counting of votes will take place on 18 December 2017. The Gujarat assembly has 182 seats.

Key benchmark indices spurted on broad-based buying support on Friday, 8 December 2017, as firmness in global stocks boosted sentiment. The Sensex had risen 301.09 points or 0.91% to settle at 33,250.30, its highest closing level since 29 November 2017.

~~ Powered by Capital Market - Live News..