{LONGTERMINVESTORS} Morning Call.

 

Dear all,

    Markets drop on weak WPI data

Ø  Indian benchmark indices  fell modestly as sluggish trade data as well as worrying retail and wholesale inflation figures stirred up concerns about the health of the domestic economy, and Infosys warned its contract with The Royal Bank of Scotland would be affected by the UK-lender's decision to cancel a project to separate and list a new UK standalone bank.

Ø  Global risk appetite was muted as profit taking pressure has built up in global equity markets after the run up in recent weeks. US data on housing starts and consumer prices has not been enough to spur a renewed rally.

Ø  India wholesale prices rose 3.55% YoY in July 2016, following a 1.62% gain in June while markets expected a 2.55% rise.

   Global Macro

Ø  Consumer Price in the UK increased by 0.6% YoY in July, following a 0.5% rise in June and beating market expectation of a 0.5% gain.

Ø  The trade surplus in the Euro Area increased 14.9% YoY to EUR 29.2bn in June of 2016 as exports decreased 2.2% while Imports shrank at a faster 5%.         

  Corporate Buzz 

Ø  Power Grid Corporation reported a 33% growth in standalone net profit at INR 18.0bn for 1QFY17. The company had clocked a net profit of Rs 13.5bn in 1QFY16. Total standalone income rose by 31% to INR 61.19bn in 1QFY17 as against INR 46.89bn in 1QFY16.

Ø  Supreme Tex Mart reported a standalone total income from operations of INR 1001mn in 1QFY17 as against INR 868.7mn in 1QFY16. It made a net loss of INR 109.8mn in 1QFY17 as against net loss of INR 33.7mn in 1QFY16.

Ø  JK Lakshmi Cement received environment clearance for expansion of its limestone mine output in Rajasthan, entailing an investment of INR 1.2bn.

Ø  Indian Oil Corp plans to raise INR 120bn from domestic as well as overseas market through private placement of bonds to meet its capital expenditure needs.

Ø  Piramal Enterprises to acquire Ash Stevens Inc for up to USD 52.95mn (over INR 3.5bn). The firm's wholly-owned US subsidiary has entered into an agreement to acquire 100% stake in Ash Stevens Inc. in all cash deal for a total consideration of USD 42.95mn plus an earn-out consideration capped at USD 10mn, subject to achievement of certain EBITDA targets, payable over next six months.

Ø  Tata Power reported that its subsidiary Tata Power International Pte (TPIPL) has completed sale of its 50% stake in OTP Geothermal Pte to KS Orka Renewables (KS Orka) for USD 30 mn.

Ø  BHEL secured an order to set up solar photovoltaic (SPV) plants, estimated to cost INR 1.69bn.The engineering, procurement and construction (EPC) order has been placed by West Bengal State Electricity Distribution Corporation Ltd (WBSEDCL).

   Outlook

Ø  Benchmark indices are likely to open on a cautious note amidst mixed global cues.

 

   Link

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Regards,

CSEC Research

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