www.angelbroking.com Market Outlook September 12, 2017 www.angelbroking.com Market Cues Indian markets are likely to open positive tracking global indices and SGX Nifty. The US markets closed with strong gains for the days as the impact of Hurricane Irma was not as severe as many had anticipated. After a subdued starting trading activity picked up and financials stocks witnessed strong buying. Further the fear over North Korea issues has gradually subsided and that has come as a big relief for major market participants. The European markets also witnessed relief rally at the start of the new week. Strong opening in the US markets, reducing geopolitical issues had a similar impact on the European markets. The Indian markets continued with their upward move and had a strong move on the first day of the week. The GST council increased the cess on the auto industry marginally and easing geopolitical tension helped market participants taking a positive call on the markets. Favorable direction from the global markets also helped a positive move in the domestic market. News Analysis InterGlobe Aviation to raise funds via share sales up to `4,000 cr Detailed analysis is on Pg2 Investor’s Ready Reckoner Key Domestic & Global Indicators Stock Watch: Latest investment recommendations on 150+ stocks Refer Pg7 onwards Top Picks Company Sector Rating CMP (`) Target (`) Upside (%) Blue Star Capital Goods Accumulate 792 807 1.9 Dewan Housing Finance Financials Accumulate 548 610 11.3 Mahindra Lifespace Real Estate Buy 439 522 18.8 Navkar Corporation Others Buy 194 265 36.7 KEI Industries Capital Goods Buy 326 390 19.6 More Top Picks on Pg5 Key Upcoming Events Date Region Event Description Previous Reading Consensus Expectations Sep 12, 2017 UK CPI (YoY) 2.60 2.80 Sep 12, 2017 India Industrial Production YoY (0.10) 1.70 Sep 13, 2017 US Producer Price Index (mom) (0.20) Sep 13, 2017 UK Jobless claims change (4.20) Sep 14, 2017 US Initial Jobless claims 298.00 300.00 More Events on Pg7 BSE Sensex 0.3 86 29,422 Nifty 0.4 33 9,136 Mid Cap 0.7 95 14,485 Small Cap 1.1 171 15,128 Dow Jones 0.9 174 20,579 Nasdaq 0.9 54 5,917 FTSE 0.1 4 7,119 Nikkei (0.0) (2) 18,430 Hang Seng 1.0 231 24,057 Shanghai Com 0.0 1 3,172 Advances 1,849 1,130 Declines 1,039 543 Unchanged 164 74 BSE 4,029 25,391 FII (565) (2,249) 41,972 804 4,895 14,333 Indiacem 190 8.8 Irb 240 (5.0) #As on April 20, 2017 Domestic Indices Chg (%) (Pts) (Close) BSE Sensex 0.6 195 31,882 Nifty 0.7 71 10,006 Mid Cap 0.7 111 15,866 Small Cap 0.8 127 16,452 Bankex 1.1 313 27,804 Global Indices Chg (%) (Pts) (Close) Dow Jones 1.2 260 22,057 Nasdaq 1.1 72 6,432 FTSE 0.5 36 7,414 Nikkei 1.4 271 19,546 Hang Seng 1.0 287 27,955 Shanghai Com 0.3 11 3,376 Advances / Declines BSE NSE Advances 1,417 923 Declines 1,262 779 Unchanged 172 74 Volumes (` Cr) BSE 3,814 NSE 25,803 #Net Inflows (` Cr) Net Mtd Ytd FII (127) (3,536) 43,75 MFs 365 2,255 71,14 Top Gainers Price (`) Chg (%) Ipcalab 471 11.9 Ptc 125 7.4 Symphony 1,425 6.8 Wabcoindia 5,950 6.3 Bajajelec 366 6.0 Top Losers Price (`) Chg (%) Jpassociat 22 (6.4) Cadilahc 477 (4.9) Bomdyeing 149 (4.7) Vakrangee 458 (3.8) Sreinfra 113 (3.5) #as on 11 th Sep, 2017
14
Embed
Market Outlook - Angel Backofficeweb.angelbackoffice.com/Research_ContentManagement/pdf_report... · Market Outlook September 12, 2017 Market Cues ... Detailed analysis is on Pg2
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 September 12, 2017
www.angelbroking.com
Market Cues
Indian markets are likely to open positive tracking global indices and SGX Nifty. The US markets closed with strong gains for the days as the impact of Hurricane Irma was not as severe as many had anticipated. After a subdued starting trading activity picked up and financials stocks witnessed strong buying. Further the fear over North Korea issues has gradually subsided and that has come as a big relief for major market participants. The European markets also witnessed relief rally at the start of the new week. Strong opening in the US markets, reducing geopolitical issues had a similar impact on the European markets. The Indian markets continued with their upward move and had a strong move on the first day of the week. The GST council increased the cess on the auto industry marginally and easing geopolitical tension helped market participants taking a positive call on the markets. Favorable direction from the global markets also helped a positive move in the domestic market.
News Analysis
InterGlobe Aviation to raise funds via share sales up to `4,000 cr
Dewan Housing FinanceFinancials Accumulate 548 610 11.3
Mahindra Lifespace Real Estate Buy 439 522 18.8
Navkar Corporation Others Buy 194 265 36.7 KEI Industries Capital Goods Buy 326 390 19.6 More Top Picks on Pg5
Key Upcoming Events Date Region Event Description
Previous Reading
Consensus Expectations
Sep 12, 2017 UK CPI (YoY) 2.60 2.80
Sep 12, 2017 India Industrial Production YoY (0.10) 1.70
Sep 13, 2017 US Producer Price Index (mom) (0.20)
Sep 13, 2017 UK Jobless claims change (4.20)
Sep 14, 2017 US Initial Jobless claims 298.00 300.00More Events on Pg7
Domestic Indices Chg (%) (Pts) (Close)
BSE Sensex 0.3 86 29,422
Nifty 0.4 33 9,136
Mid Cap 0.7 95 14,485
Small Cap 1.1 171 15,128
Bankex (0.5) (131) 24,444
Global Indices Chg (%) (Pts) (Close)
Dow Jones 0.9 174 20,579
Nasdaq 0.9 54 5,917
FTSE 0.1 4 7,119
Nikkei (0.0) (2) 18,430
Hang Seng 1.0 231 24,057
Shanghai Com 0.0 1 3,172
Advances / Declines BSE NSE
Advances 1,849 1,130
Declines 1,039 543
Unchanged 164 74
Volumes (` Cr)
BSE 4,029
NSE 25,391
#Net Inflows (` Cr) Net Mtd Ytd
FII (565) (2,249) 41,972
MFs 804 4,895 14,333
Top Gainers Price (`) Chg (%)
Indiacem 190 8.8
Jktyre 154 8.4
Gsfc 124 7.5
Sobha 392 7.3
Jetairways 511 6.5
Top Losers Price (`) Chg (%)
Irb 240 (5.0)
Yesbank 1,545 (3.8)
Icicibank 273 (2.9)
Polaris 214 (2.5)
Concor 1,186 (2.5) #As on April 20, 2017
Domestic Indices Chg (%) (Pts) (Close)
BSE Sensex 0.6 195 31,882
Nifty 0.7 71 10,006
Mid Cap 0.7 111 15,866
Small Cap 0.8 127 16,452
Bankex 1.1 313 27,804
Global Indices Chg (%) (Pts) (Close)
Dow Jones 1.2 260 22,057
Nasdaq 1.1 72 6,432
FTSE 0.5 36 7,414
Nikkei 1.4 271 19,546
Hang Seng 1.0 287 27,955
Shanghai Com 0.3 11 3,376
Advances / Declines BSE NSE
Advances 1,417 923
Declines 1,262 779
Unchanged 172 74
Volumes (` Cr)
BSE 3,814
NSE 25,803
#Net Inflows (` Cr) Net Mtd Ytd
FII (127) (3,536) 43,753
MFs 365 2,255 71,142
Top Gainers Price (`) Chg (%)
Ipcalab 471 11.9
Ptc 125 7.4
Symphony 1,425 6.8
Wabcoindia 5,950 6.3
Bajajelec 366 6.0
Top Losers Price (`) Chg (%)
Jpassociat 22 (6.4)
Cadilahc 477 (4.9)
Bomdyeing 149 (4.7)
Vakrangee 458 (3.8)
Sreinfra 113 (3.5) #as on 11th Sep, 2017
www.angelbroking.com
Market Outlook September 12, 2017
www.angelbroking.com
News Analysis InterGlobe Aviation to sell shares to raise upto `4000 cr
InterGlobe Aviation Ltd, which owns the IndiGo airlines has said its board has approved an institutional share sale of around Rs 4000 cr. The board of the company has approved the sale of up to 33.57 million shares including fresh issuance of 22.38 million shares and a secondary share sale of 11.19 million shares by promoters. The issue is aimed at achieving the minimum public shareholding of 25%. At the end of 1QFY18 the founders of the company held a combined 85.85% share of the company, and as per regulatory norm the company will have to reduce the share holding to 75%. IndiGo has been one of the fastest airline operator in India and has a market share of ~ 40% in the domestic airline market.
Economic and Political News Amby valley auction to go ahead as Supreme court rejects Subrata Roy’s plea
Govt mulls `10 trillion public financing for infrastructure projects
Hiring in India is set to pick up after 3 quarters of decline; Manpower group says
Corporate News
Supreme Court seeks resolution plan in Jaypee Infratech case within 45 days
Thyssenkrupp says Tata Steel merger deal may come in September
ITC looks to accelerate growth in non cigarette business
www.angelbroking.com
Market Outlook September 12, 2017
www.angelbroking.com
Top Picks Company
Market Cap(` Cr)
CMP (`)
Target (`)
Upside (%)
Rationale
Alkem Laboratories 21,724 1,817 2,161 18.9
Strong growth in domestic business due to its leadership in acute therapeutic segment. Alkem expects to launch more products in USA, which bodes for its international business.
Asian Granito 1,347 448 490 9.4 We expect the company would report strong profitability owing to better product mix, higher B2C sales and amalgamation synergy.
Blue Star 7,584 792 807 1.9
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 17,192 548 610 11.3
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 8,865 147 160 9.1 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 2,537 326 390 19.6 High order book execution in EPC segment, rising B2C sales and higher exports to boost the revenues and profitability
Mahindra Lifespace 2,255 439 522 18.8 Speedier execution and speedier sales, strong revenue visibility in short-to-long run, attractive valuations
Music Broadcast 2,202 386 434 12.5 Expected to benefit from the lower capex requirement and 15 year long radio broadcast licensing.
Navkar Corporation 2,764 194 265 36.7 Massive capacity expansion along with rail advantage at ICD as well CFS augurs well for the company
Siyaram Silk Mills 2,125 2,267 2,500 10.3 Strong brands and distribution network would boost growth going ahead. Stock currently trades at an inexpensive valuation.
TV Today Network 1,615 271 344 27.0
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 corporates to benefit the stock.
Maruti Suzuki 2,46,044 8,145 8,580 5.3
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.
Source: Company, Angel Research
1
www.angelbroking.com
Market Outlook
September 12, 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
Sep 12, 2017 2:00 PM UK CPI (YoY) % Change Aug 2.60 2.80
5:30 PM India Industrial Production YoY % Change Jul (0.10) 1.70
Sep 13, 2017
US Producer Price Index (mom) % Change Aug (0.20)
2:00 PM UK Jobless claims change % Change Aug (4.20)
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on September 11, 2017
www.angelbroking.com
Stock WatchSeptember 12, 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.