DAILY MARKET OUTLOOK, 13TH 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 mildly higher Monday in low volume trade as investors readied for the first major earnings reports due Tuesday.

Dow Jones	17131.9	+47.37	+0.28%
Dow Jones Fut	17008.0	-32.00	-0.19%
Hangseng	22602.2	-128.75	-0.57%
Nikkie	18266.7	-172.00	-0.93%
SGX Nifty	8147.5	-3.50	-0.04%

 

• Asian stocks dropped, with the regional benchmark index retreating from seven-week high, as Japanese shares slipped after a holiday and investors awaited China’s trade data.
• Market is expected to open on a flat note and likely to remain range bound during the day.
• India Aug IIP @ 6.4% vs 4.8% Exp (Prior 4.2%)
• India Sep CPI @  4.41% vs 4.40% Exp (Prior 3.66%)
• Indian Oil Corporation, is planning to spend about $5 billion to expand its exploration and production business, with half the amount slated to go into acquisition of new assets that are increasingly becoming available in the wake of a global crude oil crash. 
• DLF Ltd could be looking at a new business model where it will build and complete residential projects before selling apartments in them once the deal by its promoters to sell 40% stake in the company's rental arm for Rs 12,000-14,000 crore goes through with knowledge of plans
• Four days after recommending first renewal of Panchpatmali bauxite reserve in favour of NALCO, Odisha CM has approved a proposal to allocate another bauxite mines in favour of the aluminium major 
• Lanco Infratech Ltd has announced that it has pre-closed its outstanding term loan with YES Bank to the extent of Rs. 205.42 crore by obtaining lower interest rate term loan from another bank. 
• DB Corp Acquires 14 Frequencies In Phase-III Radio FM Auctions. FDI/FII Investment Limit In Co Likely To Increase To 26% From 20%
• JSW Steel’s production drops in September due to blast furnace shut down in Vijayanagar plant
• The Supreme Court asked the CBI to deal as per law with the diaries and cash seized from an office of Hindalco Industries to the Environment Ministry along with Rs 25 crore, found in the company's premises.

 

• Results announced

Infosys Ltd

Result is  ahead of expectation. Dollar revenue came at 2392 mn vs exp 2344mn vs qoq 2256mn vs yoy 2201mn. $ Growth of 6% Constant currency growth of 6.9%. Though volume growth came lower at 3.7% vs qoq 5.4%  EBIT came at 3993 cr vs exp 3823.9cr vs qoq 3447 cr  vs yoy  3483 cr. EBIT margin came at 25.5% vs exp 25.2% Company maintained CC guidance against exp of increase $ revenue guidance reduced on account of currency. TCV came at $983mn vs qoq $688mn. Overall result mix but outlook looks continue to be  positive. Share is trading at 17.3 PE vs TCS 18.8 PE leave scope for further gain. Management said Q3 will be bit more challenging on account of seasonally weak quarter and some concern on account of some customer. Short term stock will remain range bound

 

• Results to be announced (PAT Rs cr)

 

13-Oct	Sept'14	June'15	Expectation
DCB Bank Ltd.	41.1	46.9	47.6
Sree Rayalaseema Alkalies & Allied Chemicals Ltd.	5.8	9.0	na
Tata Consultancy Services Ltd.	5244.3	5684.1	6018.0