www.angelbroking.com Market Outlook October 26, 2017 www.angelbroking.com Market Cues Indian markets are likely to open Negative tracking global indices and SGX Nifty. The S&P 500 and the Dow on Wednesday posted their biggest one-day declines in more than seven weeks on a string of disappointing earnings, even as the stock market pared early losses. Profit taking could also be the trigger for to the weakness on Wall Street after the Dow climbed to a new record closing high in the previous session. The S&P500 dropped 0.5% to close at 2,557, The Dow Jones Industrial Average fell 0.48% to end at 23,329. NASDAQ shed 0.5% to finish at 6564. UK Stocks closed lower after a stronger than expected reading on the British economic growth drove the pound up against the US dollar and the Euro. The FTSE 100 index UKX, fell 1.1% to end at 7447. On domestic Front, India shares rose sharply to hit fresh record high on Wednesday as PSU Banking stocks surged on hopes that the `2.11 lakh cr recapitalization plan, expected to be cash neutral exercise for the government, will improve their lending capacity and help address their weak capitalization levels. The benchmark BSE Sensex jumped 1.33 % to 33,043, while the broader Nifty index climbed 0.86 % to finish at 10,295. News Analysis RIL, BP finalise plans to develop all KG-D6 fields Detailed analysis on Pg2 Investor’s Ready Reckoner Key Domestic & Global Indicators Stock Watch: Latest investment recommendations on 150+ stocks Refer Pg5 onwards Top Picks Company Sector Rating CMP (`) Target (`) Upside (%) Blue Star Capital Goods Accumulate 782 867 10.9 Dewan Housing Finance Financials Buy 578 670 16.0 Asian Granito Other Buy 491 570 16.1 Navkar Corporation Other Buy 198 265 34.2 KEI Industries Capital Goods Buy 329 380 15.5 More Top Picks on Pg4 Key Upcoming Events Date Region Event Description Previous Reading Consensus Expectations Oct 26 Euro Zone ECB announces interest rates - - Oct 26 US Initial Jobless claims 222.00 235.00 Oct 27 US GDP Qoq (Annualised) 3.10 2.50 Oct 30 US Consumer Confidence 119.80 120.75 Oct 31 Euro Zone Euro-Zone Consumer Confidence (1.00) More Events on Pg7 Domestic Indices Chg (%) (Pts) (Close) BSE Sensex 1.3 435 33,043 Nifty 0.9 88 10,295 Mid Cap 0.4 68 16,249 Small Cap (0.2) (32) 17,159 Bankex 4.7 1,274 28,329 Global Indices Chg (%) (Pts) (Close) Dow Jones (0.5) (112) 23,329 Nasdaq (0.5) (35) 6,564 FTSE (1.1) (79) 7,447 Nikkei 0.1 31 21,739 Hang Seng (0.1) (40) 28,263 Shanghai Com 0.2 8 3,405 Advances / Declines BSE NSE Advances 1,160 720 Declines 1,560 1,000 Unchanged 131 73 Volumes (` Cr) BSE 6,014 NSE 55,954 Net Inflows (` Cr) Net Mtd Ytd FII (1,191) (6,463) 30,066 MFs 691 8,851 95,195 Top Gainers Price ( `) Chg (%) Pnb 202 46.2 Canbk 438 38.1 Unionbank 176 34.1 Bankindia 188 34.0 Bankbaroda 188 31.5 Top Losers Price ( `) Chg (%) Edelweiss 264 (8.3) Cholafin 1,094 (7.2) L&Tfh 196 (7.0) Canfinhome 504 (6.4) Yesbank 328 (5.9) As on October, 25 2017
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www.angelbroking.com
Market Outlook October 26, 2017
www.angelbroking.com
Market Cues
Indian markets are likely to open Negative tracking global indices and SGX Nifty.
The S&P 500 and the Dow on Wednesday posted their biggest one-day declines in more than seven weeks on a string of disappointing earnings, even as the stock market pared early losses. Profit taking could also be the trigger for to the weakness on Wall Street after the Dow climbed to a new record closing high in the previous session. The S&P500 dropped 0.5% to close at 2,557, The Dow Jones Industrial Average fell 0.48% to end at 23,329. NASDAQ shed 0.5% to finish at 6564.
UK Stocks closed lower after a stronger than expected reading on the British economic growth drove the pound up against the US dollar and the Euro. The FTSE 100 index UKX, fell 1.1% to end at 7447.
On domestic Front, India shares rose sharply to hit fresh record high on Wednesday as PSU Banking stocks surged on hopes that the `2.11 lakh cr recapitalization plan, expected to be cash neutral exercise for the government, will improve their lending capacity and help address their weak capitalization levels. The benchmark BSE Sensex jumped 1.33 % to 33,043, while the broader Nifty index climbed 0.86 % to finish at 10,295.
News Analysis
RIL, BP finalise plans to develop all KG-D6 fields
Detailed analysis on Pg2
Investor’s Ready Reckoner
Key Domestic & Global Indicators
Stock Watch: Latest investment recommendations on 150+ stocks
Refer Pg5 onwards
Top Picks Company Sector Rating
CMP (`)
Target (`)
Upside (%)
Blue Star Capital Goods Accumulate 782 867 10.9
Dewan Housing Finance Financials Buy 578 670 16.0
Asian Granito Other Buy 491 570 16.1
Navkar Corporation Other Buy 198 265 34.2
KEI Industries Capital Goods Buy 329 380 15.5 More Top Picks on Pg4
Key Upcoming Events Date Region Event Description
Previous Reading
Consensus Expectations
Oct 26 Euro Zone ECB announces interest rates - -
Oct 26 US Initial Jobless claims 222.00 235.00
Oct 27 US GDP Qoq (Annualised) 3.10 2.50
Oct 30 US Consumer Confidence 119.80 120.75
Oct 31 Euro Zone Euro-Zone Consumer Confidence (1.00) More Events on Pg7
RIL, BP finalise plans to develop all KG-D6 fields
Reliance Industries and BP Plc have finalised plans to develop all the gas fields in the KG-D6 Block, reflecting the company’s renewed enthusiasm about the policy and pricing regime and focus on the sector after completing heavy capital expenditure in its telecoms and petrochemicals businesses. The partners have submitted the formal Field Development Plan for MJ Field in the gasrich block Cto the oil ministry on Wednesday, according to sources.
The MJ field, in the deep-sea region of the Bay of Bengal, is located 2,000 metres below the producing D1and D3 fields, and has reserves of about 1.1 trillion cubic feet along with condensate.
The KG-D6 Block, which has some of India’s biggest gas discoveries had begun promisingly and helped India’s gas out- put grow rapidly, but production started declining and the company was mired in bitter disputes with the government over various issues, which led to several arbitration cases
Economic and Political News IGST relief likely for foreign banks, MNCs
Bad loans and stressed assets in banks estimated at $153.5 billion
Recapitalisation will restore the health of banking system, says RBI chief
Corporate News
RBI asks HDFC Bank to classify one of its accounts as NPA
Bank of India and Canara Bank clarified that they are yet to take a decision on the sale of any non-core assets
Navkar Corp QIP opens at a floor price of `192.29 per share
Strong growth in domestic business due to its leade`hip in acute therapeutic segment. Alkem expects to launch more products in USA, which bodes for its international business.
Asian Granito 1,477 491 570 16.1 We expect the company would report strong profitability owing to better product mix, higher B2C sales and amalgamation synergy.
Blue Star 7,489 782 867 10.9
Favorable outlook for the AC industry to augur well for Cooling products business which is out pacing the market growth. EMPPAC division's profitability to improve once operating environment turns around.
Dewan Housing Finance 18,117 578 670 16.0
With a focus on the low and medium income (LMI) consumer segment, the company has increased its presence in tier-II & III cities where the growth opportunity is immense.
Karur Vysya Bank 7,563 125 180 43.8
Loan growth is likely to pick up after a sluggish FY17. Lower credit cost will help in strong bottom-line growth. Increasing share of CASA will help in NIM improvement.
KEI Industries 2,560 329 380 15.5 High order book execution in EPC segment, rising B2C sales and higher exports to boost the revenues and profitability
Music Broadcast 2,179 382 434 13.6 Expected to benefit from the lower capex requirement and 15 year long radio broadcast licensing.
Navkar Corporation 2,817 198 265 34.2 Massive capacity expansion along with rail advantage at ICD as well CFS augur well for the company
Siyaram Silk Mills 2,697 575 610 6.01 Strong brands and distribution network would boost growth going ahead. Stock currently trades at an inexpensive valuation.
TV Today Network 2,090 350 435 24.1
Market leadership in Hindi news genre and no. 2 viewership ranking in English news genre, exit from the radio business, and anticipated growth in ad spends by corporate to benefit the stock.
Maruti Suzuki 2,37,791 7,872 8,658 10.0
After GST, the company is expected to see higher volumes along with improving product mix. The Gujarat plant will also enable higher operating leverage which will be margin accretive.
GIC Housing
2,631 489 655 34.0 We expect loan book to grow at 24.3% over next two year; change in borrowing mix will help in NIM improvement..
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on October 25, 2017
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Stock WatchOctober 26, 2017
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