www.angelbroking.com Market Outlook November 07, 2017 www.angelbroking.com Market Cues Indian markets are likely to open positive tracking global indices and SGX Nifty. The US markets moved mostly higher during trading on Monday, although trading activity was somewhat subdued. With the upward move on the day, the major averages reached new record closing highs. The Dow inched up 9 points to 23,548, while the Nasdaq rose 0.3 percent to 6,786 and the S&P 500 crept up 0.1 percent to 2,591. London’s benchmark index closed at 7,562 points, a 0.03 per cent gain from Friday’s close. The index hit another record closing high as commodity continue to firm up. Oil companies and miners were among the leading performers as commodity prices rose. The BSE Sensex hit a fresh record on Monday as it settled at 33,731, driven by better-than- expected earnings by blue-chip companies. NSE Nifty however pulled back from record on profit- booking and ended in the negative terrain. The Sensex after scaling an all-time high of 33,848.42 intraday settled at the new high of 33,731, up 0.1%. The NSE Nifty smashed all records to touch a fresh life-time high of 10,490 during the day, before ending down 0.1%, at 10,452. News Analysis Reliance Nippon Life Asset management – Book profit MAS Financials Services – Book profit 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 675 867 28.4 Dewan Housing Finance Financials Accumulate 642 712 10.9 Asian Granito Other Buy 493 570 15.7 Navkar Corporation Other Buy 192 265 37.9 KEI Industries Capital Goods Accumulate 334 380 13.8 More Top Picks on Pg4 Key Upcoming Events Date Region Event Description Previous Reading Consensus Expectations Nov08 China Exports YoY% 8.10 7.20 Nov09 China Consumer Price Index (YoY) 1.60 1.70 Nov09 US Initial Jobless claims 229.00 231.50 Nov10 UK Industrial Production (YoY) 1.60 1.90 Nov10 India Exports YoY% 25.67 More Events on Pg7 Domestic Indices Chg (%) (Pts) (Close) BSE Sensex 0.1 46 33,731 Nifty (0.0) (1) 10,452 Mid Cap 0.5 77 16,790 Small Cap 0.3 55 17,911 Bankex (0.3) (95) 28,997 Global Indices Chg (%) (Pts) (Close) Dow Jones 0.0 9 23,548 Nasdaq 0.3 22 6,786 FTSE 0.0 2 7,562 Nikkei 0.0 9 22,548 Hang Seng (0.0) (7) 28,597 Shanghai Com 0.5 16 3,388 Advances / Declines BSE NSE Advances 1,432 854 Declines 1,419 886 Unchanged 160 75 Volumes (` Cr) BSE 5,127 NSE 35,436 Net Inflows (` Cr) Net Mtd Ytd FII 1,537 2,580 41,032 MFs (138) (138) 95,272 Top Gainers Price (`) Chg (%) Hindcopper 104 19.5 Titan 785 19.0 Mmtc 87 18.9 Infibeam 189 12.8 Hathway 42 10.3 Top Losers Price (`) Chg (%) Recltd 166 (7.6) Rcom 16 (6.2) Relcapital 558 (5.2) Idea 101 (5.1) Sci 104 (4.7) As on November, 06 2017
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www.angelbroking.com
Market Outlook November 07, 2017
www.angelbroking.com
Market Cues
Indian markets are likely to open positive tracking global indices and SGX Nifty.
The US markets moved mostly higher during trading on Monday, although trading activity was somewhat subdued. With the upward move on the day, the major averages reached new record closing highs. The Dow inched up 9 points to 23,548, while the Nasdaq rose 0.3 percent to 6,786 and the S&P 500 crept up 0.1 percent to 2,591.
London’s benchmark index closed at 7,562 points, a 0.03 per cent gain from Friday’s close. The index hit another record closing high as commodity continue to firm up. Oil companies and miners were among the leading performers as commodity prices rose.
The BSE Sensex hit a fresh record on Monday as it settled at 33,731, driven by better-than- expected earnings by blue-chip companies. NSE Nifty however pulled back from record on profit- booking and ended in the negative terrain. The Sensex after scaling an all-time high of 33,848.42 intraday settled at the new high of 33,731, up 0.1%. The NSE Nifty smashed all records to touch a fresh life-time high of 10,490 during the day, before ending down 0.1%, at 10,452.
News Analysis
Reliance Nippon Life Asset management – Book profit
MAS Financials Services – Book profit
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 675 867 28.4
Dewan Housing Finance Financials Accumulate 642 712 10.9
Asian Granito Other Buy 493 570 15.7
Navkar Corporation Other Buy 192 265 37.9
KEI Industries Capital Goods Accumulate 334 380 13.8 More Top Picks on Pg4
Key Upcoming Events Date Region Event Description
Previous Reading
Consensus Expectations
Nov08 China Exports YoY% 8.10 7.20
Nov09 China Consumer Price Index (YoY) 1.60 1.70
Nov09 US Initial Jobless claims 229.00 231.50
Nov10 UK Industrial Production (YoY) 1.60 1.90
Nov10 India Exports YoY% 25.67More Events on Pg7
Domestic Indices Chg (%) (Pts) (Close)
BSE Sensex 0.1 46 33,731
Nifty (0.0) (1) 10,452
Mid Cap 0.5 77 16,790
Small Cap 0.3 55 17,911
Bankex (0.3) (95) 28,997
Global Indices Chg (%) (Pts) (Close)
Dow Jones 0.0 9 23,548
Nasdaq 0.3 22 6,786
FTSE 0.0 2 7,562
Nikkei 0.0 9 22,548
Hang Seng (0.0) (7) 28,597
Shanghai Com 0.5 16 3,388
Advances / Declines BSE NSE
Advances 1,432 854
Declines 1,419 886
Unchanged 160 75
Volumes (` Cr)
BSE 5,127
NSE 35,436
Net Inflows (` Cr) Net Mtd Ytd
FII 1,537 2,580 41,032
MFs (138) (138) 95,272
Top Gainers Price (`) Chg (%)
Hindcopper 104 19.5
Titan 785 19.0
Mmtc 87 18.9
Infibeam 189 12.8
Hathway 42 10.3
Top Losers Price (`) Chg (%)
Recltd 166 (7.6)
Rcom 16 (6.2)
Relcapital 558 (5.2)
Idea 101 (5.1)
Sci 104 (4.7) As on November, 06 2017
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Market Outlook November 07, 2017
www.angelbroking.com
News Analysis
Reliance Nippon Life Asset management – Book profit
We had recommended SUBSCRIBE for Reliance Nippon Life Asset Management Ltd (RNAM) IPO which successfully raised `1,542cr at `252. At higher end IPO band, it was demanding market cap of `15,422cr (which is 6.8% of the MF AUM `2,28,329cr for the month of August 2017). At yesterday’s closing price, it is trading at 12.7% premium ton IPO price. We recommend to book profit in Reliance Nippon Life Asset management Ltd.
MAS Financials Services – Book profit
We had also recommended SUBSCRIBE for MAS Financials Services Ltd. Company raised `460cr at the issue price of `459 (6.85x FY17 book value pre-IPO). Although valuations were on the higher side, the strong and sustainable growth and ROE prospects of the company, gave us comfort to assign Subscribe rating to the issue. At yesterday’s closing price of `633, it is trading at 38% premium to IPO price and 5.6x post-IPO book value. We recommend to book profit in MAS Financials Services Ltd.
Economic and Political News Govt may review monthly GST return filing process
Govt to give 60% stake in ONGC, OIL fields to private companies
Oil hits $63 a bbl, highest since 2015 on output tightening by Saudi Arabia
Corporate News
Wheels India standalone PAT rises 112.81% in the September quarter
Greenlam Industries standalone PAT rises 35.97% in the September quarter
NBFCs grabbing market share of banks, says BCG report
Indian Bank soars 9% post Q2 results
RCom shares tumble over 6% on news that Brookfield called off `11,000cr merger deal
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 1,482 493 570 15.7 We expect the company would report strong profitability owing to better product mix, higher B2C sales and amalgamation synergy.
Blue Star 6,465 675 867 28.4
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 20,135 642 712 10.9
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 7,617 126 180 42.8
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 2,597 334 380 13.8 High order book execution in EPC segment, rising B2C sales and higher exports to boost the revenues and profitability
Music Broadcast 2,185 383 434 13.3 Expected to benefit from the lower capex requirement and 15 year long radio broadcast licensing.
Navkar Corporation 2,739 192 265 37.9 Massive capacity expansion along with rail advantage at ICD as well CFS augur well for the company
Siyaram Silk Mills 2,815 601 650 8.2 Strong brands and distribution network would boost growth going ahead. Stock currently trades at an inexpensive valuation.
TV Today Network 2,184 366 435 18.8
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 2,50,773 8,302 8,750 5.4
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
2,556 475 655 38.0 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 November 06, 2017
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Stock WatchNovember 07, 2017
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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