Monday, 2 May 2016

Nikkei Manufacturing PMI at 4 month low of 50.5 in April

April saw manufacturing employment in India remain broadly unchanged, a trend that has been evident for almost two years.


PMI data indicated that Indian manufacturers raised output at a slower pace in April as new business inflows were broadly unchanged during the month. The upturn in new export orders was sustained, although growth was at a six-month low. There were divergences with regards to stock levels, with holdings of finished goods continuing to fall while pre-production inventories rose again. On the price front, input costs increased at the fastest rate in 11 months, whereas charge inflation eased since March.

Reflecting softer contributions from four of its five sub-components (the exception being suppliers’ delivery times), the seasonally adjusted Nikkei India Manufacturing Purchasing Managers’ Index(PMI)– a composite single-figure indicator of manufacturing performance – fell from 52.4 in March to 50.5 in April. The latest figure pointed to the weakest improvement in business conditions in the current four-month sequence of above-50.0 readings.

Indian manufacturers saw incoming new orders broadly stagnate in April, following three consecutive months of growth. In contrast to the picture for total new business, new work from abroad continued to increase. Nonetheless, new export orders expanded at the slowest pace since last October.

In spite of the stagnation in new work, goods production increased in April. The rate of expansion was only slight and softened since March, however. Meanwhile, buying levels rose for the fourth successive month, which in turn resulted in a further accumulation in stocks of raw materials and semi-finished products. April saw manufacturing employment in India remain broadly unchanged, a trend that has been evident for almost two years.

Concurrently, unfinished business rose. Where backlogs of work increased, survey members blamed delayed payment from clients as well as shortages of some raw materials for this. Nevertheless, the rate of accumulation was only slight and in line with the long-run series average. Input cost inflation accelerated to the fastest since May 2015 during April. According to panel members, a range of raw materials – such as
metals, chemicals, plastics, paper and food – had increased in price. Part of the additional cost burden was passed on to clients as selling prices rose further. That said, the rate of charge inflation softened marginally since March.

Finally, stocks of finished goods fell at the sharpest rate since August 2015, while suppliers’ delivery times lengthened.

Commenting on the Indian Manufacturing PMI survey data, Pollyanna De Lima, Economist at Markit and author of the report, said, “PMI data for India show a marked slowdown in output expansion during April, as growth of new work ground to a halt following a robust increase in the prior month.


“Looking into the sub-sector data, consumer goods producers fared better than their intermediate and investment goods counterparts where both output and new orders declined. “A softer overall increase in output prices meanwhile suggests a strongly competitive environment, as cost inflation in fact accelerated to the fastest since May 2015.

ICICI Bank plunges 4% after Q4 results

The bank posted a net profit of Rs.7018.90 million for the quarter ended March 31, 2016 compared with Rs.29220.00 mn for the quarter ended March 31, 2015.


ICICI Bank Ltd was lower by 4% at Rs.226 after its net profit plunged 76% in March quarter numbers. The Bank posted a net profit of Rs.7018.90 million for the quarter ended March 31, 2016 compared with Rs.29220.00 mn for the quarter ended March 31, 2015. Total income has increased from Rs.162347.30 mn for the quarter ended March 31, 2015 to Rs.185908.60 million for the quarter ended March 31, 2016.

The scrip opened at Rs. 228 and has touched a high and low of Rs. 230.65 and Rs. 225.4 respectively. So far 14437806(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 137586.31 crore.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 337.35 on 06-May-2015 and a 52 week low of Rs. 180.8 on 26-Feb-2016. Last one week high and low of the scrip stood at Rs. 255.3 and Rs. 231.4 respectively.

The promoters holding in the company stood at 0 % while Institutions and Non-Institutions held 65.43 % and 9.36 % respectively.


The stock is currently trading above its 200 DMA.

Reliance Defence gets nod for 15 New Industrial Licences from DIPP

The scrip opened at Rs. 65.5 and has touched a high and low of Rs. 67.45 and Rs. 64.9 respectively.

 Reliance Defence has received nod for 15 New Industrial Licences from DIPP, according to reports.

Reliance Defence & Engineering Ltd is currently trading at Rs. 66.2, up by Rs. 1.1 or 1.69% from its previous closing of Rs. 65.1 on the BSE.

The scrip opened at Rs. 65.5 and has touched a high and low of Rs. 67.45 and Rs. 64.9 respectively. So far 1197121(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 4792.73 crore.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 114 on 28-Dec-2015 and a 52 week low of Rs. 51.45 on 25-Aug-2015. Last one week high and low of the scrip stood at Rs. 68.6 and Rs. 64.75 respectively.

The promoters holding in the company stood at 29.9 % while Institutions and Non-Institutions held 14.22 % and 55.88 % respectively.

The stock is currently trading below its 100 DMA.

RBI allows up to 60% Foreign Holding in Yes Bank

Reserve Bank of India ( RBI) has allowed foreign investors to buy up to 60% stake inYes Bank. The Bank passed resolutions at its Board of Directors' level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs/RFPIs.
Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest from existing 49% up to 60% of the paid up capital of the bank under the Portfolio Investment Scheme (PIS).

Bajaj Auto April 2016 sales decline marginally to 3.3 lakh units

Bajaj Auto sales in April 2016 declined 2% YoY to 330,109 units. The sales were marginally below our estimates of 3.42 lakh units.
Motorcycle sales grew 2% YoY to 291,898 units and were in line with our estimates of 2.92 lakh units. Market share gains in the domestic market on back of continued strong demand for new launches (Avenger and V series) led to strong growth in the domestic market ( Domesticmotorcycle sales are estimated to grow by about 39%). Export segment continued to remain under pressure due to weak demand in key markets of Africa and Latin America. Motorcycle exports have dipped by about 38%.

Three wheeler sales declined sharply 24% YoY to 38,211 units and were below our expectations of 50,000 units mainly due to dip in the export markets.
Bajaj AutoLimited16-Apr15-AprYoY(%)16-MarMoM(%)FY16FY15
Motorcycles    291,898       285,791 2.10      264,249 10.50     3,358,252     3,367,938 
Three-wheelers      38,211        50,483 -24.30        41,551 -8.00        535,329        528,933 
Total Sales    330,109       336,274 -1.80      305,800 7.90     3,893,581     3,896,871

YES Bank's Flls/RFPls limit increased to 60%


The Reserve Bank of India notified that Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest from existing 49 per cent up to 60 per cent of the paid up capital of Yes Bank under the Portfolio Investment Scheme (PIS).

Yes Bank Ltd is currently trading at Rs. 947.8, up by Rs. 4.15 or 0.44% from its previous closing of Rs. 943.65 on the BSE.

The scrip opened at Rs. 949 and has touched a high and low of Rs. 958 and Rs. 945 respectively. So far 1311312(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 39704.53 crore.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 952.2 on 29-Apr-2016 and a 52 week low of Rs. 590 on 24-Aug-2015. Last one week high and low of the scrip stood at Rs. 952.2 and Rs. 871.45 respectively.

The promoters holding in the company stood at 21.91 % while Institutions and Non-Institutions held 65.51 % and 12.58 % respectively.

The stock is currently trading above its 50 DMA.

Wipro to implement core technology solutions for Paytm’s payments bank business

Wipro has entered into pact with Paytm whereby the software major will be implementing core technology solutions for Paytm’s payments bank business, which is expected to be rolled out in the second half of 2016. The contract is for a period of one year.

Wipro will implement core-banking solutions for Paytm and also the programme to manage the integration of other key systems like anti-money laundering and regulatory reporting solutions.

Paytm, a digital wallet and ecommerce company, received the central bank's in-principle approval to set up a payments bank in August last year.

Bharti Airtel’s arm enters into partnership with GBI for West Asia

Bharti Airtel’s enterprise arm - Airtel Business has partnered with networking player GBI to increase its direct reach in West Asian countries. This partnership will help extend network reach to Airtel’s customers and will further enhance the benefits of its value propositions for customers and partners.

GBI owns and operates a multilayer carrier neutral network providing connectivity to West Asian countries. The partnership is in line with the long-term strategy of Airtel Business.

Bharti Airtel is a leading integrated telecommunications company with operations in 20 countries across Asia and Africa. Headquartered in New Delhi, India the company ranks amongst the top 5 mobile service providers globally in terms of subscribers.

TOP 12 STOCKS IN FOCUS TODAY

Stocks to watch

YES Bank: The Reserve Bank of India notified that Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest from existing 49 per cent up to 60 per cent of the paid up capital of Yes Bank under the Portfolio Investment Scheme (PIS).

BPCL, HPCL, IOC: Petrol price was hiked by Rs.1.06 per litre while diesel rate was increased by Rs.2.94 per litre.

Axis Bank: FIPB cleared Rs.13,030 crore worth of foreign direct investment proposals, including that of hiking foreign investment limit in Axis Bank.

Lupin: Lupin is looking to strengthen its branded and specialty business in the US by launching new products, brand acquisitions and even buyout of other specialty companies that compliment its therapy focus, reports a financial newspaper.

Tata Power: Tata Power is all set to acquire the renewable energy assets of the diversified Welspun Group, reports a financial newspaper.

HDFC: The company will announce its Q4 numbers today. IIFL estimates that the company’s net profit is likely to tumble to Rs. 1,755 crore, at a rate of 11% yoy; however, the same is expected to surge 15% qoq.

Suzlon: Suzlon Energy said its step-down subsidiary in the Netherlands, AE-Rotor Holding BV (AERH), had repaid $590.4 million to bondholders on 29 April and also arranged a credit facility of equivalent amount.

SBI: The Government will ask State Bank of India (SBI) to actively consider merging its five associate banks, reports a business daily. The Centre is looking to push consolidation among state-owned banks and has set up a committee to identify candidates for mergers and acquisitions (M&A), says the financial newspaper.

Atul
: Atul reported standalone net profit of Rs. 62.61 crore for the quarter ended March 31, 2016, registering growth of 39.57% yoy and 2.74% qoq.

ITC Ltd: ITC will invest Rs. 345 crore in Andhra Pradesh's Guntur district, reports a business daily. The company is making Guntur the headquarters of its agribusiness division, which earns annual revenue of Rs. 8,000 crore, says the financial newspaper.

Federal Bank: Federal Bank, major commercial bank, reported standalone net profit of Rs.10.26 crore for the quarter ended March 31, 2016, registering decline of 96.34% yoy and 93.69% qoq.

Skipper Ltd: The company was favourably placed for contracts worth Rs.300 crore with Power Grid Corporation of India Ltd.Out of the above the Company has already secured contracts worth Rs. 135 crore and for the balance the company is expecting confirmation.

State Bank of Hyderabad: The bank reported a 43% drop in net profit at Rs.253 crore for the fourth quarter ended March 2016. Total income for the reporting quarter declined to Rs.3,907 crore, from Rs.4,145 crore in the year-ago period

Ultratech Cement ACC, Ambuja Cements: The country’s top three cement producers - Ultratech Cement ACC and Ambuja Cements - are expecting a revival in cement demand during the current financial year, reports a business daily.

TVS Motor, Ruchi Soya, Page Inds: The Karnataka government’s state-level single window clearance committee (SLSWCC) has cleared TVS Motor Company’s INR 310-crore proposal to expand its Mysuru facility, reports a business daily.

InterGlobe Aviation: Indigo Airlines posted a net profit of Rs. 579.3 crore for the fourth quarter ended 31st March, 2016.

Infosys: Infosys Foundation USA announced its CS for All community giving model, a new private-public-community collaboration that builds on partnerships with the National Science Foundation (NSF) and DonorsChoose.org to provide as many as 2,000 teachers with computer science professional development.

IDFC: IDFC posted a net profit of Rs. 48 mn for the quarter ended March 31, 2016 where as the same was at Rs. 3654.70 million for the quarter ended March 31, 2015

Wipro: India's largest mobile payments company Paytm has partnered with Wipro Ltd to create the requisite technology infrastructure for its upcoming payments bank business, reports a business daily.

Marico: The company’s consolidated revenue stood at Rs. 1,307.02 crore, up 6.59% yoy but down 16.02% qoq.

Gujarat Heavy Chemicals Ltd: Gujarat Heavy Chemicals Ltd (GHCL) plans to launch a slew of FMCG brands under the brand name of i-Flo, including a diabetic-friendly salt and table dispensers, reports a business daily.