DAILY MARKET OUTLOOK, 12TH OCT, 2015

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 closed higher Friday, wrapping up a solid week of gains, as investors digested indications from the Fed on the timing of a rate hike ahead of earnings season.

Dow Jones	17084.5	+33.74	+0.20%
Dow Jones Fut	16979.0	-12.00	-0.07%
Hangseng	22746.0	+287.17	+1.28%
Nikkie	18438.7	+297.50	1.64%
SGX Nifty	8237.5	+42.00	+0.51%

 

• Asian stocks rose after posting their steepest weekly advance since December 2011, with technology and industrial shares leading gains.
• Markets in Japan are closed for the Health and Sports Day holiday.
• Market is expected to open on positive note and likely to witness up move during the day.
• Maruti Suzuki India have approved a proposal to raise FII limit in the company to up to 40% from the current 24%. 
• Apax Partners buys 23.23% stake in Zensar Technologies for Rs 859 crore 
• Yes Bank not to renew Rs.250 cr Lanco Infratech loan.
• Unichem plans sale of domestic formulations business; valuation seen at $1-1.2 billion.
• CBI searches Bank of Baroda branches for Rs 6,100-crore suspected black money transfer.
• Apollo Hospitals will raise up to Rs 750 crore through rights issue for the expansion of the hospitals in a couple of month 
• The rating on Rs 775.16 crore of GMR Infrastructure Ltd's, Chennai Outer Ring Road project have been revised downwards by CARE Ratings to CARE BBB minus from CARE BBB. 
• Institution Desk - Capital Goods Sector- 2QFY16 Result Preview- We expect the companie- Revenue Growth Likely To Be Subdued, Margin Recovery Elusive: We expect 2QFY16 performance of the capital goods sector to remain lacklustre, affected by slower execution traction and soft margin profile owing to lack of operating leverage. Revenue growth is likely to be muted because of a relatively weak order book amid lack of revival in industrial capex. We expect the companies in our coverage universe to post a 4.5% YoY decline in revenue to Rs157.7bn for 2QFY16, while excluding Bharat Heavy Electricals (BHEL) the top-line is likely to be flat at Rs103.4bn. While companies have adopted various cost optimisation measures, lack of operating leverage is expected to result in a flat EBITDA margin at 5.5% for our coverage universe (excluding BHEL at 6.1%, a 10bps YoY rise). EBITDA of our coverage universe is likely to decline 5.7% YoY to Rs8.6bn.
• IndusInd Bank- BUY- 2QFY16 Result Update- Yet Another Robust Performance: IndusInd Bank’s 2QFY16 performance was broadly in line with our expectations. Net interest income (NII) grew 31%, driven by credit growth of 31% and net interest margin (NIM) of 3.9%. NIM improved 20bps sequentially, which can be largely attributed to equity capital raised by the bank during the quarter. Excluding the acquired jewellery loan business, credit offtake grew 24%. Non-interest income grew 32% driven by a healthy fee income growth of 24% and doubling of treasury gains to Rs1.1bn. The cost-to-income ratio improved 150bps YoY to 46.4%. Annualised credit costs stood at 60bps for the quarter and 55bps for the first-half as against the bank’s guidance of 60bps.
• Indian Economy Chart Book- 2QFY16: In this quarterly publication, Nirmal Bang provides its readers a comprehensive and fairly exhaustive view of the Indian economy. This periodical summarizes the previous quarter and gives leads on the recently concluded quarter. It will serve as one-stop shop for all who want to understand diverse macro economic data released for the economy. Ranging from GDP numbers to behaviour of different institutional sectors to external situation and monetary conditions - you will find all aspects covered in this publication. We conclude this periodical with a number of leading indicators on consumption, savings and investments to help you out understand the ongoing trend in these segments.

 

• Results announced

Indusind Bank

Result marginally ahead of exp. NII came at 1094cr vs exp 1042 qoq 981 yoy 833cr PBP came at 1007 vs exp 913 qoq 923 yoy 725 Provision came at 158cr vs qoq 123cr yoy 73cr PAT came at 560cr vs exp 512 qoq 525 yoy 430cr GNPA came at 602cr vs qoq 570cr yoy 655cr.

 

• Results to be announced (PAT Rs cr)

12-Oct	Sept'14	June'15	Expectation
RIIL Ltd.	5.4	4.4	na

 

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