daily market outlook- 8 OCT 205

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 paused Tuesday, closing moderately lower after five straight days of gains. DuPont and energy companies rose sharply, but the overall market was weighed down by health-care stocks, especially biotechnology companies.

Dow Jones	16790.2	+13.8	+0.08%
Dow Jones Fut	16639.0	-33.0	-0.20%
Hangseng	22003.3	+171.7	+0.79%
Nikkie	18155.6	-30.5	-0.17%
SGX Nifty	8166.5	+1.5	+0.02%

 

• Asian stocks held firm on Wednesday as a sharp rebound in oil prices supported battered resource shares and emerging economy currencies, while Japanese markets were tentative ahead of a crucial Bank of Japan policy meeting.
• Market is expected to open on a flattish note and likely to remain range bound during the day.
• Maharashtra would soon initiate the process of taking back the Latur, Osmanabad, Nanded, Yavatmal and Baramati airports awarded to Reliance Airport Developmentin August 2009 for development.
• Uflex, has decided to invest Rs 1,500-crore packaging plant at Sanand, citing proximity to customers such as Nestle, Nivea, Colgate, among others
• Anil Ambani-led Reliance Mediaworks has sold 9.75% stake in media services major Prime Focus for over Rs 155 crore through an open market transaction
• Phoenix Mills Ltd has acquired the entire 19.38 per cent equity stake held by MTX Hotels in Gangetic Hotels Private Limited (GHPL).
• Aurobindo Pharma Likely To Launch QIP Issue Today, Looking To Raise $250-300 m Total Equity Dilution Around 3-4% On Post Basis
• Institution Desk - FMCG Sector-September 2015 Quarter Result Preview- Raw Material Cost Decline To Boost Margins: Sales growth for the September 2015 quarter is likely to be around 7%-8% YoY for Colgate-Palmolive (India) or CPIL, GlaxoSmithKline Consumer or GSK Consumer and United Breweries, while it is expected to decline sharply YoY again for Nestle India because of the Maggi noodle problem and grow 15%-16% YoY in case of P&G Hygiene and Healthcare or P&GHH and Britannia Industries or BIL (the former despite a high base, and the latter aided by a low base) and grow by 20% in case of Westlife Development (WDL) and 27% YoY for Jubilant FoodWorks (the latter aided by a likely healthy same-store sales growth (SSG) of 6%-7% because of a low base). Barring Nestle India, United Breweries and WDL, the last of which is likely to report a small positive EBITDA compared to loss at the EBITDA level in the corresponding quarter a year ago, all other companies are expected to report healthy EBITDA growth ranging from 17.6%  to  50.0% YoY, mainly because of a decline in raw material costs. EBITDA and PAT are likely to decline YoY in case of Nestle India and remain tepid for United Breweries. WDL is likely to report sustained loss at the net level in FY16. For CPIL, P&GHH and Jubilant FoodWorks, despite healthy EBITDA growth YoY, PAT growth is likely to be around 11%-13% because of a low tax rate in base quarter of the previous year.  For BIL and GlaxoSmithKline Consumer, healthy EBITDA growth YoY is also likely to percolate down to the PAT level as well.

 

• Results to be announced (PAT Rs cr)

7-Oct	Sept'14	June'15	Expectation
Bajaj Corp Ltd.	37.4	47.5	49.5

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