Morning Mantra

Dear Customer,

 

Markets always tend to be interesting with something or the other happening all the time. Our Morning Mantra is released before the opening bell and it includes the market commentary along with Corporate & Global news for the day.

 

• U.S. stocks fell, sending the Standard & Poor’s 500 Index to its third straight weekly decline, as a dollar rally weighed on raw-material and industrial companies.

Dow Jones	17749.3	-145.91	-0.82%
Dow Futures	17653.0	-139.00	-0.78%
Hangseng	23871.4	+48.18	+0.20%
Nikkie	19292.0	+37.70	+0.20%
SGX Nifty	8670.5	-21.50	-0.25%

 

• Asian stocks fell as investors awaited this week’s Federal Reserve meeting for clues on the timeline for higher U.S. interest rates. Energy companies led losses as oil resumed last week’s decline.
• Market is expected to open lower and likely to remain weak during the day  
• Shakti Pumps Ltd is aiming to clock revenue of Rs 5,000 crore within next five years with the help of overseas acquisitions to strengthen its global footprints.
• Fortis Healthcare Ltd, has scrapped its proposal to buy Singapore's Radlink-Asia Pte Ltd for 346.53 million ringgit ($93.31 million). 
• Tamil Nadu Newsprint and Papers  commissions a 2L tpa plant. Packaging plant by co to go on stream by year end
• ITC Ltd, is in the process of setting up 20 factories for its FMCG products as it aims to garner Rs. 1-lakh crore revenue from that business alone by 2030. The Company will soon increase prices of cigarette brands like Classic and Gold Flake Kings by up to 15% per pack following the hike in excise duty on cigarettes in the Budget 2015-16.
• Cairn India Ltd, has received a tax notice of Rs 20,495 crore from the Income Tax Department for failing to deduct withholding tax on alleged capital gains by its erstwhile promoter, Cairn UK Holdings Ltd, a subsidiary of Edinburgh-based Cairn Energy Plc.
• RBI removes Zen Technologies from ban list for FII purchase
• Jaypee Group is in talks with Heidelberg Cement and JSW Cement, to form a joint venture which will control the majority of its cement plants as part of an ongoing exercise to reduce debt.
• Natco Pharma – Company Update – Institution Desk: We continue to believe in Natco Pharma’s (NPL) strength in base business in which it may be able to maintain a healthy growth rate on the oncology side and also the non-oncology business growth expected to get a boost from the recent approval granted for the generic version of Sovaldi for Indian market, which is likely to be launched in 1QFY16 (launched in Nepal in 4QFY15). However, we are more excited about its strong US drug pipeline and do not see any risk to earnings over the next four-five years on the back of higher visibility emerging for products like Tamilfu, which is now having a higher chance of being launched in September 2016. Despite the sharp run-up in share price of NPL in the past few days, we continue to believe in its long-term growth. Accordingly, we have assigned Accumulate rating to the stock after downgrading it (from Buy earlier) with a target price of Rs2,262, valuing  its base business (including generic Copaxone tablets) at 17x FY17E EPS and including Rs222 for the Para-IV pipeline.