No safety! Indices set to crash at open
A Thursday thud is on its way after a winning Wednesday as markets world over are sinking yet again. Index heavyweight Reliance Industries Infy, Tata Motors, Hindustan Unilever and HDFC had led the pullback. But today is a different story. Infosys is set to deliver a tepid growth due to seasonality and lower spending by top clients. The company is likely to maintain its full year growth guidance. Infy growth rate is expected to converge with the industry by FY17 thus supporting valuation and in case it falls with the overall market, investors may want to grab some shares. Mastek and Cyient will also be announcing results.
The outlook is a crash at start. China's market is marching towards bear territory and all efforts of the government to stem the fall and restore investor confidence have gone to the winds. For now Shanghai Composite is down nearly 2%. Japan's Nikkei has fallen over 3% while Hong Kong's Hang Seng shed around 2%.
Trading ideas (Time period: 1-3 days)
Tata Power Jan Futs (Sell, below Rs66, Target Rs59, SL Rs69): It consolidated below its 200-DMA for entire week. However it failed to break above the same, which led to sideways consolidation. That consolidation eventually turned out to be a bearish flag which is now breaking down. A break below Rs64 could lead to a sharp correction in the near term.
Derivative strategies (Time period: Till expiry)
² SELL FUT BHARTIARTL Jan below 307 with SL of 317 for target of 296-287
Lot size: 1200 Remarks: Net maximum profit of Rs24,000 and net maximum loss of Rs12,000
Corporate Snippets
² French telecom major, Orange has acquired Bharti Airtel's operations in Burkina Faso and Sierra Leone. (BL)
² Indian Oil Corp, HPCL and BPCL are planning to jointly build India's biggest refinery on the west coast, IOC Director (Refineries) said. (BS)
² Indian Oil Corp will invest up to Rs180bn in six of its refineries to upgrade fuel specifications to meet government norms, a senior official said. (BS)
² Bharat Heavy Electricals Limited added record capacity of 5,010 Mw of utility power projects in the first three quarters of the current financial year (2015-16). (BL)
² SBI said it has secured a US$500mn loan from Korean EXIM Bank to help fund companies from the East Asian nation setting up units in India. (ET)
² Suzlon has announced its foray into solar power with projects worth 210MW in Telangana. The company won the projects from the State utility, Southern Power Distribution Company of Telangana Limited (TSSPDCL) through a competitive bidding process. (ET)
² Aimed at improving efficiency, public sector Canara Bank's board has approved organisational restructuring by moving to a '4-tier system' that will allow the lender to set up regional offices for a better connect with branches across the country. (BS)
² Coal India is making its biggest tech overhaul in four decades to check rampant theft and shed its image as an inefficient behemoth, spurred by an impending opening up of the sector to private firms for the first time since the 1970s. (BS)
Economy snippets
² India's trade deficit with China touched a whopping US$44.9bn last year and its exports shrank to US$13.4bn as bilateral trade registered a marginal increase, totalling US$71.6bn, missing the US$100bn target set by the leaders of the two nations. (ET)
² NHAI signs MoU with ISRO and NECTAR for use of spatial technology for monitoring national highways. (BS)
² The Union Cabinet has approved a new crop insurance scheme that aims to reduce the premium burden on farmers and ensure early settlement of claim for the full sum insured. (BL)
² Planning body Mumbai Metropolitan Region Development Authority (MMRDA) may have to struggle to meet its March deadline to launch tender process for Rs115bn Mumbai Trans Harbour Link (MTHL) project. (BS)
² The government has given more time to developers of as many as 13 special economic zones, including Navi Mumbai SEZ, to complete their projects. (ET)
Result table
| Rs m | Revenues | YoY % | PAT | YoY% |
| Karur Vysya Bank | 6,210 | 15.4 | 1,528 | 34.2 |
| Reliance Industrial Infrastructure | 221 | (2.5) | 40 | (25.6) |
Warm Regards,
Amar Ambani
IIFL
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