Index Closing Sensex 27324 218.61 0.81% Nifty 8262.35 70.85 0.86% Auto 19077.15 707.52 3.85% Bankex 20913.93 524.34 2.57% Cap Goods 16219.71 26.93 0.17% Cons Durables 10177.01 216.90 2.18% Metal 9883.52-69.03-0.69% Oil & Gas 9320.86 80.84 0.87% PSU 7615.47 171.35 2.30% TECH 5879.59-6.06-0.10% TOP GAINERS Closing BOB 160.15 15.05 10.37% Hero Motocorp 2529.4 228.75 9.94% SBI 287.15 25.20 9.62% M&M 1244.65 64.30 5.45% Cipla 681.6 26.90 4.11% TOP LOSERS Closing HUL 845.2-50 -5.59% Lupin 1689.9-80.45-4.54% NTPC 136.5-5.5-3.87% Vedanta 210.45-7.5-3.44% Cairn India 199.7-6.5-3.15% Currency Rates Price as on date USDINR 63.660 EURINR 72.230 GBPINR 100.040 JPYINR 53.070 Weekender Outlook This Week: MAY 15, 2015 Retail inflation as measured by Consumer price Index (CPI) for the month of April came in at 4.87 percent as against 5.25 percent in the previous month. The March index of industrial production (IIP) data stood at 2.1 percent against 5 percent last month. The factory output for manufacturing sector stood at 2.2 percent versus 5.2 percent (MoM) while the mining sector output grew only 0.9 percent against 2.5 percent last month. Wholesale price index (WPI)-based inflation for April fell to a new low of -2.65%,the sixth successive month of deflating prices. The WPI reading for March was -2.33%. The government put on hold issuance of fresh notices and any further assessments on levy of MAT demand tax on FII s and FPI s. The Cabinet Committee of Economic Affairs (CCEA) approved 5 percent divestment on NTPC and 10 percent stake sale in IOC. Jaitley has set divestment target at an ambitious Rs 69,500 crore for 2015-16. Lok Sabha on Monday passed a bill to deal with black money stashed abroad through high monetary penalty and criminal prosecution with the government allaying fears that innocent people could be harassed under the proposed deterrent law. For those wanting to come clean, Jaitley said there would be a compliance window in two parts to declare assets and to pay 30 percent tax and 30 percent penalty. Morgan Stanley Capital International (MSCI) quarterly rebalancing announcement for MSCI India Index is expected on May 12. Based on MSCI global investable market indices methodology, key stocks such as L&T, Adani Enterprises, and Bajaj Auto's weightage is likely to increase in the index. The changes are likely to be effective from June 1. Eight companies, including Bharti Infratel, Eicher Motors, Lupin and Bharat Forge will be added to MSCI India Index, while Reliance Infrastructure is being removed. The other companies added to the index include Container Corp of India, Marico, Shree Cement and UPL. All changes would come into effect from May 29. India's economy grew an estimated 7-7.5 percent last fiscal year and will keep growing this year, but the government will have to invest more in agriculture to keep up the momentum, Finance Minister Arun Jaitley said. Rating agency Moody's on Wednesday said monsoon and global financial volatility will pose additional risks to India's growth this year, but the GDP is likely to average around 7.5% over the next 18-24 months due to improvement in business environment induced by reforms. China's central bank cut its benchmark interest rate on Sunday The People's Bank of China ( PBOC) lowered its benchmark lending rate by 25 basis points (bps) to 5.1 per cent, and its one-year benchmark deposit rates by the same
Commodity Spot Prices Research Desk Price as on date Castor seed (100kg) 3741 Chana (100kg) 4557 Coriander (100kg) 10721 Jeera (30kg) 17240 Mustardseed (100kg) 4006 Soy bean (100kg) 4098 amount to 2.25 per cent for the third time since November, as economic growth cools to levels not seen since the global financial crisis. Investment firm Macquarie sees average 2015 gold price forecast at $1,231 per ounce and silver at $17 per ounce. Economic Events Date Event Forecast Previous 19th May EUR German ZEW Survey (Economic Sentiment) (MAY) 53.3 22nd May 22nd May USD Consumer Price Index (YoY) (APR) USD Consumer Price Index Ex Food & Energy (YoY) (APR) -0.2% -0.1% 1.7% 1.8% Stock Specific news: Godrej Properties is targeting to sell Rs 2,000 crore worth commercial assets over the next 2-3 years to reduce debt. The company also plans to launch 14 projects this fiscal and is exploring opportunities to add more projects for future development. Bajaj Auto is looking at expanding its Chakan plant capacity in Maharashtra as part of its plans to raise its market share to 23 per cent from the current 17 per cent. Eveready Industries India Ltd will switch to made-in India LED lights and aiming revenues of more than Rs 700 crore from the segment in the next 2-3 years. Royal Enfield, a subsidiary of Eicher Motors on Monday acquired UK based Harris Performance Products Ltd, a motorcycle design and engineering firm for an undisclosed amount. Amara Raja may invest Rs 4,500 cr in new plant in Chittoor Amara Raja Group to roll out new plant in Chittoor, Andhra Pradesh with a capacity of 7 million batteries per year, though it is currently manufacturing just around 4 million units. TPG India Investment sold its 20.3 per cent stake in financial services firm Shriram City Union Finance for about Rs 2,300 crore in an off-market deal to Dynasty Acquisition (FPI) Ltd, a subsidiary of private equity firm Apax Partners. Sun Pharma Advanced Research Company (SPARC) plans to raise up to Rs 250 crore through a rights issue. Canara Bank has issued four crore fully paid-up equity shares to LIC on preferential basis valued at about Rs 1,396.80 crore 2
In a fresh order against DLF, Competition Commission has found the realty giant guilty of indulging in "unfair and abusive" business practices in sale of apartments in a Gurgaon housing project. Realty player Nitesh Estates said it has tied up with global investment bank Goldman Sachs to jointly invest up to $ 250 million in income generating commercial assets in the country. Leading IT services company, Tata Consultancy Services (TCS) has been ranked as the 57th leading brand in the US by Brand Finance in its second annual Top 500 US Brands survey. Outlook Next week: Indian markets are likely to be volatile due to clearance of bills in the parliament and mixed earnings season. We strongly believe that the Indian market is trading towards the lower end and may consolidate hereon for some time before accelerating further. Results slated for next-week are: Asian Paints, HSIL, Colgate Palmolive, Pidilite Inds, Tata Power, Bajaj Fin, Tata Steel, Bajaj Auto, Britania, CESC, Voltas, Zee Entertainment, ITC, Mphasis, SBI, Greenply, and Jyothy Lab. 3
WEEKENDER STOCK IDEA Natco Pharma short term investment idea Natco Pharma is a mid-sized pharmaceutical company with a presence across the pharma value chain. The company also has a US retail business. It is a leading domestic player in the oncology space. The company derives 35-40% of sales from the oncology business (both APIs and formulations). On the export front, Natco exports products to the US, Canada and Europe regions. Natco is a leading player in the domestic oncology segment. Despite the product range, the growth has been flattish in this space as most of the sales are through institutional channels. However, going ahead, we expect good traction in the oncology segment on account of incremental launches. The recent judgment for compulsory licensing can be considered a new avenue for more potential launches. Go long above 2300 Stop loss 2000 Target 2650 (15.22% return) Period : for next 6 months 4
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