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. 

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Pre-Session: Market may open on a positive note

27-Dec-17: Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could gain 24 points at the opening bell tracking firm Asian stocks.

Overseas, Asian markets were mixed in early trade, with most markets shrugging off overnight declines seen on Wall Street. Meanwhile, investors in the region await the release of industrial profit numbers out of China. US stocks closed lower in light volume trade yesterday, 26 December 2017 as shares of Apple tumbled, offsetting gains in energy stocks as oil prices hit their highest in more than two years.

Back home, trading after a long weekend resumed on a buoyant note as key benchmark indices, led by Reliance Industries and Bharti Airtel, logged modest gains yesterday, 26 December 2017. The Sensex rose 70.31 points or 0.21% to settle at 34,010.61, its record closing high.

Foreign portfolio investors (FPIs) sold shares worth a net Rs 44.07 crore yesterday, 26 December 2017, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 544.50 crore yesterday, 26 December 2017, as per provisional data.

Reliance Communications (RCom) announced its exit from the Reserve Bank of India (RBI)'s Strategic Debt Restructuring (SDR) framework, with zero equity conversion and zero loan write-offs for lenders and bond holders. Upon completion of all transactions as announced, the balance debt in RCom is expected to be approximately Rs 6000 crore only, representing reduction of over 85% of total debt. The announcement was made after market hours yesterday, 26 December 2017.

Jindal Steel & Power (JSPL) has successfully completed a 250 ton basic oxygen furnace (BOF) marking the completion of its 6 million tones per annum (MTPA) integrated steel project at Angul, Odisha. With the completion of the new steel making facility, JSPL will utilize the full capacity of its 4 MTPA mega blast furnace, the largest in India. The BOF will also enable the company to achieve significantly higher cost effectiveness and efficiencies for steel making.

The 250 ton basic oxygen furnace will produce 3 million tonnes of high-grade steel per annum. JSPL's Angul steel making complex is the largest and most modern integrated steel plant in the state of Odisha that has been established at an investment of Rs 33000 crore. The BOF is the last major installation at the 6 MTPA integrated steel plant, marking the completion of JSPL's expansion and capital expenditure program. The announcement was made after market hours yesterday, 26 December 2017.

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Winning Strokes

Source: The Business Standard

Yesterday, was the day of Anil Ambani as most of the stocks from this group performed excellently.  Reliance Anil Dhirubhai Ambani (ADA) Group shares surged after witnessing recent volatility in stocks. Reliance Communications (RCom) (up 30.78%), Reliance Infrastructure (up 2.41%), Reliance Nippon Life Asset Management (up 1.16%), Reliance Capital (up 7.02%), Reliance Home Finance (up 0.45%), Reliance Naval and Engineering (up 5.63%) and Reliance Power (up 3.85%) gained.
Yesterday, the internet got inundated with the news that RCom plans to settle on buyers for assets including its spectrum, telecom towers, optical fibre and real estate, with all transactions to close between January and March. Reliance Communications Ltd’s planned sale of its wireless business assets by the end of March would be the latest instance of upheaval that has swept through the telecom industry since the entry of Reliance Jio Infocomm Ltd. According to media reports, Mukesh Ambani’s Reliance Jio Infocomm has emerged the front-runner to acquire the assets of debt-ridden RCom.

If you remember, I and some of my clients had entered RCom a couple of weeks back at around Rs.12, but we booked profit in between when the share price touched Rs.17-18. However, when I saw a rise in the share price yesterday, some of us again entered the counter. Now it is time to see whether the shares of Reliance Communication can close above Rs.22.50 or not. CMP (NSE): Rs.21.50, up 31.90% (Intraday high: Rs.23.20 in the NSE)

Another share from the ADA Group, which is looking superb both in terms of charts and fundamental play is Reliance Infrastructure Ltd (Rs.539.85).  

Reliance Infrastructure Limited (RInfra) is a part of the Reliance Group, India's third largest business house. The company is one of India's fastest growing companies in the infrastructure sector. It ranks among India's top listed private companies on all major financial parameters, including assets, sales, profits and market capitalization. Their presence spans across three verticals, namely Engineering, Procurement and Construction, Energy and Infrastructure.

The company is India's leading utility company having presence in across the value chain of power business i.e. Generation, Transmission, Distribution, EPC and Trading and the largest infrastructure company by developing projects in all high growth areas in infrastructure sector i.e. Roads, Highways, Metro Rails, Airports and Speciality Real Estate. 

Reliance Infrastructure Ltd has a market cap of only Rs.14,215 crore as against the FY17 turnover of Rs.11,004.34 Cr and H1FY18 earning of Rs.5922.05 crore. While its nearest competitors:

#CESC Ltd (Rs.1054.30) has a Book Value of Rs.892.60 and market cap of Rs.13,958.26 Cr against the FY17 income of Rs.7,367.00 Crore. 

#NTPC Ltd (Rs.178.45) has a Book Value of Rs.119.63 and Market Cap of Rs.146,563.1 Cr against FY17 income of Rs.79,342.30 Cr.

If we go by this logic then the share price of Reliance Infrastructure Ltd should trade above Rs.1000 in the short term. 

Moreover, around couple of months back, Anil Ambani told that Reliance Infrastructure defence arm Reliance Naval and Engineering will soon announce a rights issue for shares to increase the shareholding of the parent. The Reliance Group’s flagship infrastructure company has decided to focus on defence and engineering, procurement and construction business. It plans bids for six submarines worth Rs.50,000 crore, Ambani said. He also said that Reliance Infrastructure is engaging with Japanese companies with the intention of participating in India’s ambitious Rs 1 lakh crore-bullet train project. So, a rise in the share price of Reliance Naval and Engineering Ltd (Rs.45.60) will give a corresponding rise in the shares of Reliance Infrastructure Ltd. 

In fresh developments:

#NPCI had opened bids for EPC tenders related to the third and fourth units of the Kudankulam nuclear power project (1,000 MW each). RInfra emerged as the lowest bidder beating Tata Projects and Larsen & Toubro. The project duration is estimated at 56 months. This move is part of the government’s push into increasing the generation of nuclear power. The government has already approved 10 new nuclear reactors this year. The pressurized heavy-water reactors (PHWRs) have an aggregated capacity of about 700 MW. India plans to have a nuclear power generation capacity of 63,000 MW by 2030, from its existing levels of 6,780 MW.

#On December 6, 2017, Anil Ambani-led Reliance Infrastructure Ltd said it has bagged contracts worth Rs.5,000 crore in Bangladesh which includes setting up of the entire infrastructure for a 750 MW LNG-based combined cycle power plant. The award comes after bagging Rs.3,675 crore EPC order from NLC India for setting up two lignite-based CFBC thermal power projects.

#RInfra recently said its EPC division has also been shortlisted for projects like the Bandra-Versova sea link, Mumbai coastal road, and the Mumbai-Nagpur expressway. 

#On December 21, 2017, RInfra announced the sale of its Mumbai power business to Adani Transmission for Rs 13,251 crore. The company will sell 100% stake, valuing the business at Rs.12,101 crore and regulatory assets at Rs.1,150 crore, it said in an exchange filing. The transaction could fetch another Rs.5,000 crore through regulatory assets under approval and Rs.550 crore from net working capital. That would take the total consideration to Rs.18,800 crore. It will also be looking to monetise its cement, road and telecom tower assets to reduce overall debt, which stood at Rs.25,800 crore as of March 2017. The entire deal is a cash transaction and is expected to be complete by March 31, 2018. After the entire deal is gone through (Rs.18,800 crore), the company is expected to be debt free and would remain with a surplus of Rs.3,000 crore. The company going forward is expected to focus on its road construction and defense business.  

“RInfra will utilise the proceeds of the sell of  entirely to reduce its debt, becoming debt-free, and up to Rs.3,000 crore cash surplus,” the company statement added. Besides, in April this year, the company said over Rs.14,000 crore order is under advanced stage of arbitration. The company’s board has recommended a dividend of Rs.9 per share

#On September 14, 2016, the Financial Express carried out a report that Reliance Infrastructure will look to grow its EPC (engineering, procurement and construction) order book to Rs.30,000 crore in the next 9 months, on the back of government orders across infrastructure sectors.
The Global research firm JPMorgan maintained its overweight stance on the stock with a target of Rs.630. It said that the implied equity value of the deal is Rs.6,250 crore i.e. two times regulated equity base. It expects the transaction to conclude in a couple of quarters.

Meanwhile, Bazaar Trend and stock advisory firm has given a LONG-TERM Buy with Stoploss of Rs.513.26 & Strong Buy for SHORT-TERM with Stoploss of Rs.465.10, with immediate upside targets of Rs.553.04 and Rs.599.65. 

I feel if the stock is able to give a closing above Rs.610, then it has the potential to cross Rs.1300 in the medium term and Rs.3000 in the next 2-3 years time frame, especially if it manages to rope in Bullet Train contracts. The stock is trading above its 50D, 100D, 150D and 200D EMAs.  The investors are getting the shares of a company which is on the verge of becoming DEBT FREE.  

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Yesterday, the shares of Energy Development Ltd which was recommended in this blog around Rs.18, touched Rs.37.60 intraday in line with the current optimism in the power sector stocks. The scrip closed at Rs.37.10, up 16.12% in the NSE. I would suggest all  to book at least 80% of profits and hold the rest with a SL at Rs.32.

Jai Balaji Industries Ltd which was recommended several times in this blog around Rs.12-14, hit the upper circuits at around Rs.26.05 in the NSE. The investors can hold the scrip with a stop loss at Rs.21.40.

Yesterday, the shares of the infrastructure company, MBL Infrastructure Ltd, one of the future multi-bagger stock due to its strong order pipeline, corrected a bit to Rs.26.60 in the NSE, after Punjab National Bank (PNB), one of the creditors to MBL Infrastructure, had appealed against the NCLT order. The bank contended that even though the corporate guarantee had not been invoked, Lakhotia was the promoter of MBL Infrastructure. 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. 

In my opinion, Mr.A K Lakhotia, who has built the company from a scratch does not in any case fall under the list of willful defaulters and soon we will see this reflecting in the final judgement of NCLT. Till then we need to have patience and at the same time have faith on the management of MBL Infrastructure Ltd, which has a huge order book and debt of around Rs.1700 crore.

According to a news in ET on Jun 21, 2017:  After regulatory whiplash, bankers have buried the hopes of business as usual. While they are working out strategies to emerge from the unprecedented shock, the bankers find themselves walking alongside insolvency professionals in an unknown territory with little clue on how to go about resolving the problem. But a positive outcome of this purgatorial step will be that for the first time in decades, there would be a level-playing field at the negotiating table between bankers and borrowers.. In this case either the PM minister Narendra Modi or the FMO should come up with a clarification on the newly introduced clauses in the Insolvency and Bankruptcy Code, 2016 (IBC) so that the genuine shareholders do not suffer due to wrong interpretation of the sections of the act. I would therefore, suggest you to buy the stock in every decline and look for targets of Rs.110-plus in the coming days.

Suzlon Energy Ltd recommended in this blog around Rs.13.60, yesterday made a high of Rs.15.10 in the NSE before closing at Rs.15. The investors would do well to hold the scrip for targets of Rs.17-19, which it is expected to achieve by the 1st week of January, 2017.

Today, I shall be recommending another small cap to my BMA Wealth Creator Ltd's clients. If anyone is interested to know the name shall have to either join my Premium Service or trade through my Recommended brokerage house, with a minimum portfolio size of Rs.1.5 lakhs. 
Moreover, if anyone has a fund of around Rs.3-5 lakhs we earn jointly through profit sharing (no margin trading please). With the current bullish condition of the market, I feel it will not be too difficult to generate around 10-15% per month (However nothing can be guaranteed, as this is stock market and anything can happen), as many of my recommended scrips have almost doubled during the last 2-3 months.

Sensex crosses 34,000-mark

26-Dec-17: Trading after a long weekend resumed on a buoyant note as key benchmark indices, led by Reliance Industries and Bharti Airtel, logged modest gains. The barometer index, the S&P BSE Sensex, rose 70.31 points or 0.21% to settle at 34,010.61. The Nifty 50 index gained 38.50 points or 0.37% to settle at 10,531.50. Most of the appreciation was collected in late trading. However, the boost was sufficient to take the Sensex beyond a record 34,000-point mark and the Nifty to cross the 10,500 milestone for the first time in their history. Key indices gained for the second straight day.

Stocks edged higher early in the session. Trading was characterized by a bout of volatility. Key indices traded on a flat note in morning trade after alternately moving above and below the flat line. Stocks slipped into the negative zone and hit fresh intraday low in mid morning. Indices continued to trade with small losses till afternoon trade but firmed up in late trade.

The Sensex rose 70.31 points or 0.21% to settle at 34,010.61, its record closing high. The index gained 121.58 points or 0.36% at the day's high of 34,061.88, its record high. The index fell 50.55 points or 0.15% at the day's low of 33,889.75.

The Nifty 50 index gained 38.50 points or 0.37% to settle at 10,531.50, its record closing high. The index gained 52.45 points or 0.5% at the day's high of 10,545.45, its record high. The index fell 15.05 points or 0.14% at the day's low of 10,477.95.

Among the sectoral indices on BSE, the S&P BSE Telecom index (up 2.28%), the S&P BSE Realty index (up 1.51%), the S&P BSE Metal index (up 1.23%), the S&P BSE Basic Materials index (up 0.92%), the S&P BSE Healthcare index (up 0.86%), the S&P BSE Industrials index (up 0.77%), the S&P BSE Energy index (up 0.56%), the S&P BSE Consumer Discretionary Goods & Services index (up 0.5%), the S&P BSE Capital Goods index (up 0.45%), the S&P BSE Teck index (up 0.44%), the S&P BSE Oil & Gas index (up 0.42%) and the S&P BSE Auto index (up 0.26%), outperformed the Sensex.

The S&P BSE Consumer Durables index rose 0.21%, matching the Sensex's gain in percentage terms. The S&P BSE Utilities index (up 0.17%), the S&P BSE Bankex (up 0.11%), the S&P BSE FMCG index (up 0.07%), the S&P BSE IT index (up 0.06%) and the S&P BSE Finance index (up 0.03%), underperforming the Sensex. The S&P BSE Power index settled on a flat note.

Among secondary indices, the S&P BSE Mid-Cap index rose 0.76%. The S&P BSE Small-Cap index gained 0.64%. Both these indices outperformed the Sensex.

The breadth, indicating the overall health of the market, was strong. On the BSE, 1,679 shares rose and 1,071 shares fell. A total of 221 shares were unchanged.

The total turnover on BSE amounted to Rs 4328.79 crore, lower than turnover of Rs 4833.05 crore registered during the previous trading session on Friday, 22 December 2017.

Index heavyweight Reliance Industries rose 1.03% to Rs 928.

Most metal and mining stocks rose as copper prices edged higher in the global commodities markets. NMDC (up 3.85%), JSW Steel (up 1.19%), National Aluminium Company (up 0.55%), Tata Steel (up 1.52%), Steel Authority of India (up 5.79%), Jindal Steel & Power (up 4.45%) and Vedanta (up 1.68%) edged higher. Hindustan Copper (down 0.64%), Hindustan Zinc (down 0.26%) and Hindalco Industries (down 0.64%) fell.

Copper edged higher in the global commodities market. High Grade Copper for March 2018 delivery was currently up 0.66% at $3.26 per pound on the COMEX.

Reliance Anil Dhirubhai Ambani (ADA) Group shares surged after witnessing recent volatility in stocks. Reliance Communications (RCom) (up 30.78%), Reliance Infrastructure (up 2.41%), Reliance Nippon Life Asset Management (up 1.16%), Reliance Capital (up 7.02%), Reliance Home Finance (up 0.45%), Reliance Naval and Engineering (up 5.63%) and Reliance Power (up 3.85%) gained.

Shares of most public sector banks declined. Syndicate Bank (down 3.08%), Punjab National Bank (down 0.94%), Allahabad Bank (down 1.04%), Bank of Baroda (down 0.8%), State Bank of India (SBI) (down 0.94%), Union Bank of India (down 0.17%), and United Bank of India (down 0.29%) edged lower. Corporation Bank (up 1.13%), Canara Bank (up 0.55%), and Bank of India (up 0.38%) gained.

Shares of private sector banks gained. Axis Bank (up 0.15%), ICICI Bank (up 0.35%), Kotak Mahindra Bank (up 0.66%), Federal Bank (up 1.81%), and IndusInd Bank (up 0.8%) edged higher. HDFC Bank declined 0.62%.

Yes Bank rose 1.74% after the bank said that it has on 22 December 2017, established a Medium Term Note Programme (MTN Programme) for an amount of $1 billion, in order to enable the bank to issue debt instruments in the international capital markets, to eligible investors, from time to time, in one or more tranches and/or series. The establishment of the MTN Programme is only an enabling step and presently, no instruments are being issued by the bank. The announcement was made on Saturday, 23 December 2017.

Dr. Reddy's Laboratories rose 1.17% after the company announced that it has launched Melphalan Hydrochloride for Injection, a therapeutic equivalent generic version of Alkeran (melphalan hydrochloride) for Injection in the United States market approved by the US Food and Drug Administration (USFDA).

The Alkeran brand and generic had US sales of approximately $107 million MAT for the most recent twelve months ending in October 2017 according to IMS Health. The announcement was made during market hours today, 26 December 2017.

Overseas, European markets remained shut for a holiday. Asian stocks were mixed in trading thinned by year-end holidays as several regional markets re-opened after the Christmas break. Hong Kong, Australia and New Zealand markets remain closed today, 26 December 2017. US markets remained shut yesterday, 25 December 2017 on account of Christmas.

In Japan, the nationwide core consumer price index (CPI), which includes oil goods but excludes volatile fresh food prices, rose 0.9% in November from a year earlier, government data showed today, 26 December 2017. The pace of price growth was just ahead of October's 0.8%.

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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.

~~ Powered by Capital Market - Live News...

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