www.angelbroking.com Market Outlook November 20, 2017 www.angelbroking.com Market Cues Indian markets are likely to open flat tracking global indices and SGX Nifty. While selling pressure was relatively subdued, U.S. stocks saw modest weakness during trading on Friday. The major averages all moved to the downside, with the tech-heavy Nasdaq pulling back off the record closing high set in the previous session. The European markets fluctuated between small gains and losses during Friday's session, but ended the day in the red. Markets were under pressure as the Euro gained ground against the U.S. dollar following reports that Special Counsel Robert Mueller issued subpoenas to over a dozen top Trump campaign officials in mid- October, calling for documents and emails related to Russia. Indian markets posted strong gains for the second day in a row on Friday, bonds rallied and the rupee strengthened sharply against the dollar after Moody's Investors Service upgraded India's sovereign rating for the first time in 14 years. News Analysis L&T Construction bags `8,650cr order to build Mumbai Trans Harbour Link 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 Buy 695 867 24.8 Dewan Housing Finance Financials Accumulate 636 712 12.0 Asian Granito Other Buy 490 570 16.4 Navkar Corporation Other Buy 181 265 46.8 KEI Industries Capital Goods Accumulate 339 380 12.0 More Top Picks on Pg4 Key Upcoming Events Date Region Event Description Previous Reading Consensus Expectations Nov16 US Initial Jobless claims 249.00 Nov16 US Existing home sales 5.39 5.40 Nov16 Euro Zone Euro-Zone Consumer Confidence (1.00) (1.00) Nov17 Germany PMI Manufacturing 60.60 60.30 Nov17 Germany GDP nsa (YoY) 2.30 2.30 More Events on Pg7 Domestic Indices Chg (%) (Pts) (Close) BSE Sensex 0.7 236 33,343 Nifty 0.7 69 10,284 Mid Cap 1.0 169 16,673 Small Cap 0.8 142 17,605 Bankex 1.2 339 29,242 Global Indices Chg (%) (Pts) (Close) Dow Jones (0.4) (100) 23,358 Nasdaq (0.2) (11) 6,783 FTSE (0.1) (6) 7,381 Nikkei 0.2 46 22,397 Hang Seng 0.6 180 29,199 Shanghai Com (0.5) (16) 3,383 Advances / Declines BSE NSE Advances 1,623 1,109 Declines 1,143 632 Unchanged 174 75 Volumes (` Cr) BSE 4,676 NSE 36,804 Net Inflows (` Cr) Net Mtd Ytd FII 289 14,403 52,855 MFs 2,326 3,825 99,236 Top Gainers Price (`) Chg (%) Renuka 18 13.9 Gati 131 9.8 Jubilant 676 9.5 Adanient 156 8.0 Polaris 357 7.4 Top Losers Price (`) Chg (%) Videoind 14 (2.7) Techm 485 (2.7) Ltts 918 (2.7) Gppl 131 (2.6) Bbtc 1,459 (2.5) As on November, 17 2017
14
Embed
Market Outlook 20 11 2017 1 - Angel Backofficeweb.angelbackoffice.com/Research_ContentManagement/pdf_report... · Investor’s Ready Reckoner ... We had given “SUBSCRIBE” rating
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
www.angelbroking.com
Market Outlook
November 20, 2017
www.angelbroking.com
Market Cues
Indian markets are likely to open flat tracking global indices and SGX Nifty.
While selling pressure was relatively subdued, U.S. stocks saw modest weakness during trading on Friday. The major averages all moved to the downside, with the tech-heavy Nasdaq pulling back off the record closing high set in the previous session.
The European markets fluctuated between small gains and losses during Friday's session, but ended the day in the red. Markets were under pressure as the Euro gained ground against the U.S. dollar following reports that Special Counsel Robert Mueller issued subpoenas to over a dozen top Trump campaign officials in mid-October, calling for documents and emails related to Russia.
Indian markets posted strong gains for the second day in a row on Friday, bonds rallied and the rupee strengthened sharply against the dollar after Moody's Investors Service upgraded India's sovereign rating for the first time in 14 years.
News Analysis
L&T Construction bags `8,650cr order to build Mumbai Trans Harbour Link
Dewan Housing Finance Financials Accumulate 636 712 12.0
Asian Granito Other Buy 490 570 16.4
Navkar Corporation Other Buy 181 265 46.8
KEI Industries Capital Goods Accumulate 339 380 12.0 More Top Picks on Pg4
Key Upcoming Events Date Region Event Description
Previous Reading
Consensus Expectations
Nov16 US Initial Jobless claims 249.00
Nov16 US Existing home sales 5.39 5.40
Nov16 Euro Zone Euro-Zone Consumer Confidence (1.00) (1.00)
Nov17 Germany PMI Manufacturing 60.60 60.30
Nov17 Germany GDP nsa (YoY) 2.30 2.30 More Events on Pg7
Domestic Indices Chg (%) (Pts) (Close)
BSE Sensex 0.7 236 33,343
Nifty 0.7 69 10,284
Mid Cap 1.0 169 16,673
Small Cap 0.8 142 17,605
Bankex 1.2 339 29,242
Global Indices Chg (%) (Pts) (Close)
Dow Jones (0.4) (100) 23,358
Nasdaq (0.2) (11) 6,783
FTSE (0.1) (6) 7,381
Nikkei 0.2 46 22,397
Hang Seng 0.6 180 29,199
Shanghai Com (0.5) (16) 3,383
Advances / Declines BSE NSE
Advances 1,623 1,109
Declines 1,143 632
Unchanged 174 75
Volumes (` Cr)
BSE 4,676
NSE 36,804
Net Inflows (` Cr) Net Mtd Ytd
FII 289 14,403 52,855
MFs 2,326 3,825 99,236
Top Gainers Price (`) Chg (%)
Renuka 18 13.9
Gati 131 9.8
Jubilant 676 9.5
Adanient 156 8.0
Polaris 357 7.4
Top Losers Price (`) Chg (%)
Videoind 14 (2.7)
Techm 485 (2.7)
Ltts 918 (2.7)
Gppl 131 (2.6)
Bbtc 1,459 (2.5) As on November, 17 2017
www.angelbroking.com
Market Outlook November 20, 2017
www.angelbroking.com
News Analysis
L&T Construction bags `8,650cr order to build Mumbai Trans Harbour Link
Larsen & Toubro announced that the heavy civil infrastructure business vertical of L&T Construction bagged an order worth `8,650cr from Mumbai Metropolitan Region Development Authority (MMRDA) for the construction of Mumbai Trans Harbour Link, Package 01 & 03. The project involves the construction of a 21.8 km bridge connecting Mumbai mainland with Navi Mumbai.
The package -01 of the contract involves the construction of a multi-level interchange at Sewri and a 6-lane marine bridge from Sewri to 10.38 Km into the Mumbai bay, crossing over the Sewri mudflats, Pir Pau Jetty and Thane Creek channels. The contract, secured in partnership with IHI Corporation, Japan involves the construction of an orthotropic steel deck crossing the various obligatory navigation channels which will be first of its kind in India.
The package-03, won by L&T on a standalone basis, involves the construction of a 3.6 km, 6-lane land bridge at Navi Mumbai connecting National Highway-4B and State Highway-54 apart from the construction of Interchanges, Rail Over Bridges and Toll Plazas.
The proposed Mumbai Trans Harbour Link will serve as an economic gateway to Navi Mumbai connecting to Nhava Sheva Port, the Mumbai Pune Expressway and the Mumbai Goa Highway.
DFC Standard Life Insurance Company Ltd
We had given “SUBSCRIBE” rating to the HDFC Life IPO, At the upper band of `290 the issue was valued at 4.2x of 2QFY2018 embedded value (EV) of `14,011cr, a bit higher than close listed player SBI Life and ICICI Pru which is trading at 3.6x and 3.3x of 2QFY2018 EV respectively. Slight premium is justified, considering, consistent growth across premium categories, improving dividend pay-out over last 4 years, strong parentage trusted brand name, highest VNB margin (22% for FY2017) and well-balanced business mix.
Stock listed with an over 7% premium (`311) against its issue price of `290. At yesterday closing price of `344, it is it closed 18.71% premium to its issue price and 5x of 2QFY18 embedded Value. We recommend investor with listing gain respective can book profit.
Economic and Political News Govt raises import duty on palm oil, soyoil to support farmers
Foreign exchange earnings from tourism surge to `2,254cr in October
India's debt-to-GDP ratio much higher than median of Baa2-rated economies
Corporate News
Infosys' `13,000cr buyback begins Nov 30; Nilekani, Murthy to take part
IndiGo takes delivery of its first ATR 72-600 aircraft
Hinduja Leyland Finance sees gross income rising to `2,000 cr this fiscal
www.angelbroking.com
Market Outlook November 20, 2017
www.angelbroking.com
Top Picks HHHHH Company
Market Cap(` Cr)
CMP (`)
Target (`)
Upside (%)
Rationale
Alkem Laboratories 23,553 1,970 2,125 7.9
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 1,473 490 570 16.4 We expect the company would report strong profitability owing to better product mix, higher B2C sales and amalgamation synergy.
Blue Star 6,659 695 867 24.8
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 19,930 636 712 12.0
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 7,276 120 180 49.5
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 2,659 339 380 12.0 High order book execution in EPC segment, rising B2C sales and higher exports to boost the revenues and profitability
Music Broadcast 2,084 365 434 18.8 Expected to benefit from the lower capex requirement and 15 year long radio broadcast licensing.
Navkar Corporation 2,718 181 265 46.8 Massive capacity expansion along with rail advantage at ICD as well CFS augur well for the company
Siyaram Silk Mills 2,687 573 650 13.4 Strong brands and distribution network would boost growth going ahead. Stock currently trades at an inexpensive valuation.
TV Today Network 2,130 357 435 21.8
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 2,51,956 8,341 8,890 6.6
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
2,362 439 655 49.3 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
1
www.angelbroking.com
Market Outlook
November 20, 2017
www.angelbr oki ng.com
Key Upcoming Events
Global economic events release calendar
Date Time Country Event Description Unit Period
Bloomberg Data
Last Reported Estimated
Nov 21, 2017 7:00 PM US Initial Jobless claims Thousands Nov 18 249.00
Nov 22, 2017 8:30 PM US Existing home sales Million Oct 5.39 5.40
8:30 PM Euro Zone Euro-Zone Consumer Confidence Value Nov A (1.00) (1.00)
Nov 23, 2017 2:00 PM Germany PMI Manufacturing Value Nov P 60.60 60.30
12:30 PM Germany GDP nsa (YoY) % Change 3Q F 2.30 2.30
2:00 PM Germany PMI Services Value Nov P 54.70 55.00
3:00 PM UK GDP (YoY) % Change 3Q P 1.50 1.50
Nov 27, 2017 8:30 PM US New home sales Thousands Oct 667.00 615.00
Nov 28, 2017 8:30 PM US Consumer Confidence S.A./ 1985=100 Nov 125.90 123.00
Nov 29, 2017 7:00 PM US GDP Qoq (Annualised) % Change 3Q S 3.00 3.40
Nov 30, 2017 2:25 PM Germany Unemployment change (000's) Thousands Nov (11.00)
6:30 AM China PMI Manufacturing Value Nov 51.60
Dec 01, 2017 3:00 PM UK PMI Manufacturing Value Nov 56.30
Dec 05, 2017 3:30 PM Euro Zone Euro-Zone GDP s.a. (QoQ) % Change 3Q F 0.60
Dec 06, 2017 2:30 PM India RBI Reverse Repo rate % Dec 6 5.75
2:30 PM India RBI Cash Reserve ratio % Dec 6 4.00
2:30 PM India RBI Repo rate % Dec 6 6.00
Dec 08, 2017 3:00 PM UK Industrial Production (YoY) % Change Oct 2.50
India Imports YoY% % Change Nov 7.60
India Exports YoY% % Change Nov (1.10)
China Exports YoY% % Change Nov 6.90
7:00 PM US Change in Nonfarm payrolls Thousands Nov 261.00
7:00 PM US Unnemployment rate % Nov 4.10
Dec 09, 2017 7:00 AM China Consumer Price Index (YoY) % Change Nov 1.90
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on November 18, 2017
www.angelbroking.com
Stock WatchNovember 20, 2017
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
DISCLAIMER
Angel Broking Private Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited,Bombay Stock Exchange Limited and Metropolitan Stock Exchange Limited. It is also registered as a Depository Participant with CDSL and Portfolio Manager with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking Private Limited is a registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing /dealing in securities Market. Angel or its associates/analyst has not received any compensation / managed or co-managed public offering of securities of the company covered by Analyst during the past twelve months.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investmentdecision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions andtrading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company'sfundamentals. Investors are advised to refer the Fundamental and Technical Research Reports available on our website to evaluate the contrary view, if any.
The information in this document has been printed on the basis of publicly available information, internal data and other reliablesources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as thisdocument is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any wayresponsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannottestify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.While Angel Broking Pvt. Limited endeavors to update on a reasonable basis the information discussed in this material, there may beregulatory, compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,redistributed or passed on, directly or indirectly.
Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise fromor in connection with the use of this information.