www.angelbroking.com Market Outlook October 28, 2016 Market Cues Indian markets are likely to negative tracking global cues and SGX Nifty. U.S. indices had a negative session on Thursday as the latest earning results came in. Shares of Nokia (NOK) were down more than 8% after the telecom equipment company reported a third consecutive quarterly loss. In economic news, the Labor Department released a report showing a modest drop in initial jobless claims for the week ending October 22nd. Another report from the Commerce Department showed an unexpected drop in durable goods orders in the month of September. UK’s FTSE index closed higher on a better than expected GDP growth. GDP growth climbed 0.5% QoQ, against an expectation of 0.3% QoQ. Also British retailers reported the strongest increase in sales volume in a year for the month of October. Among banks, Barclays climbed 3.9% after it reported better than expected earnings. Indian indices closed flat on Thursday as weakness from Tata Group stocks kept the indices under pressure. Tata Group shares extended recent losses and were down in a range of negative 1-5 percent. Maruti Suzuki India closed flat despite posting a record quarterly profit for Q2FY17. Dr Reddy's Laboratories rallied 2.4% after it joined hands with Gland Pharma to market and distribute a portfolio of eight injectable Abbreviated New Drug Applications (ANDAs). Result Review Result Review: GSK Pharmaceuticals, Dishman Pharma, Tech Mahindra 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 (%) Amara Raja Batteries Auto & Auto Ancill. Buy 998 1,218 22.1 HCL Tech IT Buy 775 1,000 29.1 Bharat Electronics Capital Goods Accumulate 1,259 1,414 12.3 Equitas Holdings Financials Buy 178 235 32.4 Navkar Corporation Others Buy 198 265 33.5 More Top Picks on Pg5 Key Upcoming Events Date Region Event Description Previous Reading Consensus Expectations Oct 28 US GDP QoQ (Annualised) 1.4 2.5 Oct 28 Euro Zone Euro Zone Consumer Confidence (8.0) (8.0) Oct 31 Euro Zone Euro Zone s.a. (QoQ) 0.3 -- Nov 01 Germany PMI Manufacturing 55.1 -- Nov 01 UK PMI Manufacturing 55.4 54.2 6.( More Events on Pg6 Domestic Indices Chg (%) (Pts) (Close) BSE Sensex 0.3 79 27,916 Nifty 0.0 0 8,615 Mid Cap (1.0) (139) 13,282 Small Cap (0.8) (103) 13,326 Bankex (0.1) (17) 22,330 Global Indices Chg (%) (Pts) (Close) Dow Jones (0.2) (30) 18,170 Nasdaq (0.7) (34) 5,216 FTSE 0.4 28 6,987 Nikkei (0.3) (55) 17,336 Hang Seng (0.8) (193) 23,132 Shanghai Com (0.1) (4) 3,112 Advances / Declines BSE NSE Advances 1,048 545 Declines 1,639 1,086 Unchanged 258 58 Volumes (` Cr) BSE 3,265 NSE 26,858 Net Inflows (` Cr) Net Mtd Ytd FII (1,513) (3,014) 46,991 MFs 729 6,016 19,963 Top Gainers Price (`) Chg (%) Iifl 308 8.3 Sjvn 34 4.8 Hdfc 1,383 3.6 Gruh 340 3.4 Adanipower 27 3.1 Top Losers Price (`) Chg (%) Eclerx 1,498 (10.4) Torntpharm 1,428 (8.8) Mrf 46,455 (6.4) Jublfood 995 (6.0) Indhotel 114 (5.8) As on October 27, 2016
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www.angelbroking.com
Market Outlook
October 28, 2016
Market Cues
Indian markets are likely to negative tracking global cues and SGX Nifty.
U.S. indices had a negative session on Thursday as the latest earning results came
in. Shares of Nokia (NOK) were down more than 8% after the telecom equipment
company reported a third consecutive quarterly loss. In economic news, the Labor
Department released a report showing a modest drop in initial jobless claims for
the week ending October 22nd. Another report from the Commerce Department
showed an unexpected drop in durable goods orders in the month of September.
UK’s FTSE index closed higher on a better than expected GDP growth. GDP growth
climbed 0.5% QoQ, against an expectation of 0.3% QoQ. Also British retailers
reported the strongest increase in sales volume in a year for the month of October.
Among banks, Barclays climbed 3.9% after it reported better than expected
earnings.
Indian indices closed flat on Thursday as weakness from Tata Group stocks kept the
indices under pressure. Tata Group shares extended recent losses and were down in
a range of negative 1-5 percent. Maruti Suzuki India closed flat despite posting a
record quarterly profit for Q2FY17. Dr Reddy's Laboratories rallied 2.4% after it
joined hands with Gland Pharma to market and distribute a portfolio of eight
injectable Abbreviated New Drug Applications (ANDAs).
Result Review
Result Review: GSK Pharmaceuticals, Dishman Pharma, Tech Mahindra
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
(%)
Amara Raja Batteries Auto & Auto Ancill. Buy 998 1,218 22.1
HCL Tech IT Buy 775 1,000 29.1
Bharat Electronics Capital Goods Accumulate 1,259 1,414 12.3
Equitas Holdings Financials Buy 178 235 32.4
Navkar Corporation Others Buy 198 265 33.5
More Top Picks on Pg5
Key Upcoming Events
Date Region Event Description
Previous
Reading
Consensus
Expectations
Oct 28 US GDP QoQ (Annualised) 1.4 2.5
Oct 28 Euro Zone Euro Zone Consumer Confidence (8.0) (8.0)
Oct 31 Euro Zone Euro Zone s.a. (QoQ) 0.3 --
Nov 01 Germany PMI Manufacturing 55.1 --
Nov 01 UK PMI Manufacturing 55.4 54.2 6.(
More Events on Pg6
Domestic Indices Chg (%) (Pts) (Close)
BSE Sensex 0.3 79 27,916
Nifty 0.0 0 8,615
Mid Cap (1.0) (139) 13,282
Small Cap (0.8) (103) 13,326
Bankex (0.1) (17) 22,330
Global Indices Chg (%) (Pts) (Close)
Dow Jones (0.2) (30) 18,170
Nasdaq (0.7) (34) 5,216
FTSE 0.4 28 6,987
Nikkei (0.3) (55) 17,336
Hang Seng (0.8) (193) 23,132
Shanghai Com (0.1) (4) 3,112
Advances / Declines BSE NSE
Advances 1,048 545
Declines 1,639 1,086
Unchanged 258 58
Volumes (` Cr)
BSE 3,265
NSE 26,858
Net Inflows (` Cr) Net Mtd Ytd
FII (1,513) (3,014) 46,991
MFs 729 6,016 19,963
Top Gainers Price (`) Chg (%)
Iifl 308 8.3
Sjvn 34 4.8
Hdfc 1,383 3.6
Gruh 340 3.4
Adanipower 27 3.1
Top Losers Price (`) Chg (%)
Eclerx 1,498 (10.4)
Torntpharm 1,428 (8.8)
Mrf 46,455 (6.4)
Jublfood 995 (6.0)
Indhotel 114 (5.8)
As on October 27, 2016
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www.angelbroking.com
Market Outlook
October 28, 2016
Result Review
GSK Pharmaceuticals (CMP: `2,920 / TP: /Upside :)
In rupee terms, the consolidated revenues; came in at `783cr V/s `685cr in
2QFY2016, expected up 13.1% yoy. On operating front, the gross margins came
in at 53.8% V/s 56.4% in 2QFY2017, which aided EBITDA margins came in at
15.9% V/s 17.4% in 2QFY2016. Consequently, Adj. PAT came in at `98cr V/s
`101cr in 2QFY2016, yoy de-growth of 3.4%. We maintain our neutral rating on
the stock.
Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on October 27, 2016
www.angelbroking.com
October 28, 2016
Stock Watch
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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