Top 14 stocks in focus: Sun Pharma, Bharti Airtel, PNB

Check out the companies which will be in focus during trade today based on recent and latest news developments.

Sun Pharma: Sun Pharma and its wholly owned subsidiary and Almirall announced a licensing agreement on the development and commercialization of tildrakizumab for psoriasis in Europe.

Bharti Airtel: The company reported its net profit rose 70.9% to Rs.756.20 crore in the quarter ended June 2016 as against Rs.442.40 crore during the previous quarter ended June 2015. 

PNB: The bank will announce its Q1 numbers today.

Maruti Suzuki: The country’s largest passenger vehicle maker Maruti Suzuki India Limited announced that it will start sales of its first Light Commercial Vehicle (LCV) - Super Carry towards the end of August. 

State Bank of Bikaner and Jaipur: Reserve Bank of India has imposed an aggregate penalty of Rs. 20 million on the Bank in exercise of the powers conferred under Section 47(A)(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949 in case of advance import remittance irregularities.

Bharat Forge: Bharat Forge Limited and Elbit now hold 51% and 49% equity share capital of BF Elbit Advanced Systems Private Limited, respectively.

Dabur India: The company reported 11.8% rise in net profit at Rs.292.80 crore for the quarter ended June 30, 2016 against Rs.261.84 crore in the corresponding quarter a year ago.

Asian Paints: The company has posted a net profit after tax of Rs.5011.80 million for the quarter ended June 30, 2016 as compared to Rs. 4275.40 million for the quarter ended June 30, 2015.

Castrol India: The company has posted a net profit after tax of Rs.2069 million for the quarter ended June 30, 2016 as compared to Rs.1845 million for the quarter ended June 30, 2015.

RPG Life Sciences: Sun Pharmaceutical Industries signed an agreement with RPG Life Sciences Ltd to divest seven prescription brands in India.

Lupin: Lupin Pharmaceuticals Inc. has received tentative approval from the United States Food and Drug Administration (FDA) to market a generic equivalent of ViiV Healthcare’s (ViiV) Lexiva Tablets, 700 mg (Fosamprenavir Calcium Tablets, 700 mg). 

United Spirits: United Spirits said it will stop manufacturing operations in Bihar due to the ban on sale of alcohol in the state that took effect from 1 April.

L&T Infotech: L&T Infotech will announce its Q1 result today. The company announced a strategic partnership with GE Digital combining LTI’s diverse industrial capabilities with GE’s Predix cloud-based operating system for the Industrial Internet.

Glenmark: Glenmark Pharmaceuticals Inc., USA (Glenmark) has been granted final approval by the United States Food & Drug Administration (U.S. FDA) for Potassium Chloride Extended-Release Tablets USP, 10 mEq (750 mg) and 20 mEq (1500 mg), the generic version of K-Dur (Potassium Chloride) Extended-Release Tablets, 10 and 20 mEq, of Merck Sharp and Dohme Corp (which is no longer being marketed in the United States).

Chinese authorities will continue to allow credit to drive growth, expects Fitch

Chinese banks' viability ratings (VRs), which range from 'bb' to 'b', reflect substantial but varying risks to capital and asset quality. Fitch's base-case assessment of banks' intrinsic profiles considers relative loss-absorption capacity rather than subjectively adjusting reported NPL data.

The rapid pace of growth in Chinese leverage since 2008, which has contributed to economic imbalances and decreasing credit efficiency, poses significant asset-quality risks for Chinese banks, says Fitch Ratings in a Special Report published.
 
Credit to GDP, as measured by Fitch-adjusted total social financing, has roughly doubled over the past eight years, while credit/GDP productivity rates since 2008 indicate substantial mal-investment and further increases in problem credit. Fitch believes the Chinese authorities will continue to allow credit to drive growth and prefer to restructure debt rather than allow mass defaults, regardless of the size of problem credit in the economy. Bad debt may be socialised and other tools employed over time - including offsetting risks through capital market issuance - to help the resolution process. The migration of debt to the sovereign balance sheet is more probable than a wholesale upfront carve-out of assets.
 
Chinese banks' viability ratings (VRs), which range from 'bb' to 'b', reflect substantial but varying risks to capital and asset quality. Fitch's base-case assessment of banks' intrinsic profiles considers relative loss-absorption capacity rather than subjectively adjusting reported NPL data. This is due to uncertainties relating to on-and-off balance sheet asset quality. That said, Fitch's report addresses questions about the potential size of asset quality problems facing the financial system and the process by which they will likely be addressed, with reference to implications for bank ratings.
 
The report also outlines two alternative scenarios beyond the base case to help frame the potential scale of risk and policy solutions. The scenarios - based around core assumptions pertaining to inefficient credit, impairment rates and loss rates - assume a one-off resolution of the debt problem over the more probable multi-year process.
 
Our alternative scenario assumptions yielded NPL rates of 15%-21% for the financial system, resulting in a one-off capital shortfall of CNY7.4trn-13.6trn (USD1.1trn-2.2trn) - equivalent to around 11%-20% of GDP. The aggregate capital gap for Fitch-rated commercial banks is CNY4.9trn-8.7trn, but individual gaps relative to risk-weighted assets vary across the portfolio.
 
Fitch has long highlighted how Chinese banks' strengths and in particular weaknesses are factored into their ratings. The pace of credit growth, the rise of shadow banking and limited transparency around certain risks have especially weighed on VRs. The size of the problem will ultimately grow, which is why we conducted the alternative scenario analysis. The scenarios are not factored into banks' ratings, and Fitch does not expect the exercise to lead directly to rating actions. Nevertheless, how the debt resolution plays out will determine bank ratings. Bank VRs may be subject to change in the event of an unexpected significant one-off fall in credit exposure, depending on its size and purpose, how the fall was achieved, and a bank's sustainable financial profile after the event.
 
All Issuer Default Ratings for Fitch-rated Chinese banks are support-driven, and any rating changes are tied to perceived changes in the propensity or ability of the sovereign to support the banks. Support already appears to be playing out in less explicit ways, but larger issues affecting the banks - such as idiosyncratic risks and resolution - are less inclined to face public disclosure, even though systemic issues tend to require greater disclosure to address market concerns. If support for the financial system crystallises on the sovereign's balance sheet and sufficiently alters its financial profile to warrant rating action on the sovereign, it could result in similar rating action for bank IDRs.

RBI penalises 13 Banks for violating KYC Nor

The penalties have been imposed in exercise of powers vested in the Reserve Bank under the provisions of Section 47(A) (1) (c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, taking into account the violations of the instructions/directions/guidelines issued by the Reserve Bank from time to time.

The Reserve Bank of India has imposed monetary penalty on the following banks for violation of regulatory directions / instructions / guidelines, among other things, on KYC norms.

Eight other banks, namely, Axis Bank, Federal Bank, ICICI Bank, Kotak Mahindra Bank, OBC, Standard Chartered Bank, SBI and Union Bank of India have been advised to put in place appropriate measures and review them from time to time to ensure strict compliance of KYC requirements and FEMA provisions on an ongoing basis.

The penalties have been imposed in exercise of powers vested in the Reserve Bank under the provisions of Section 47(A) (1) (c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, taking into account the violations of the instructions/directions/guidelines issued by the Reserve Bank from time to time. This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank and its customers.

The details of the penalty are:

S. No.	Name of the bank	Penalty Amount (in ₹ million)
1.	Allahabad Bank	20
2.	Bank of India	10
3.	Bank of Baroda	50
4.	Canara Bank	20
5.	Corporation Bank	10
6.	HDFC Bank	20
7.	IndusInd Bank	20
8.	Punjab National Bank	30
9.	RBL Bank	10
10.	SBBJ	20
11.	SBM	10
12.	Syndicate Bank	30
13.	UCO Bank	20

Opening Bell - Nifty opens above 8600 mark

At 9:15 AM, the S&P BSE Sensex is trading at 28,078 up 53 points, while NSE Nifty is trading at 8,631 up 14 points.

At 9:15 AM, the S&P BSE Sensex is trading at 28,078 up 53 points, while NSE Nifty is trading at 8,631 up 14 points.

Asian markets are trading mixed. In Japan, the Nikkei 225 dropped 0.7%. Hong Kong's Hang Seng is trading in red.

US stocks closed mixed Wednesday. The US Fed kept interest rates unchanged. Dow Jones Industrial Average was near flat at 18,472.17 points. The S&P 500 index closed 0.12% lower at 2,166.58 points, while the Nasdaq Composite was up 0.58% at 5,139.81 points.

The Union cabinet has increased the foreign shareholding limit in Indian stock exchanges from 5% to 15%, as announced in the budget, bringing investments by foreign entities on par with those by domestic institutions.

Also, the cabinet approved key changes to the Constitution amendment bill for goods and services tax (GST), doing away with 1% additional levy on supply of goods, and proposing full compensation to states for five years for revenue loss arising from transition to GST.

The rupee opened higher by four paise at 67.06/$ against US Dollar Thursday as against the previous close of 67.27/$.

Bharti Infratel soars 3.8% post Q1 results

Total income has increased from Rs.14080 million for the quarter ended June 30, 2015 to Rs.14687 million for the quarter ended June 30, 2016.

Bharti Infratel soared 3.8% to Rs.376.10. The company has posted a net profit after tax of Rs.7562 million for the quarter ended June 30, 2016 as compared to Rs.4424 million for the quarter ended June 30, 2015. Total Income has increased from Rs.14080 million for the quarter ended June 30, 2015 to Rs.14687 million for the quarter ended June 30, 2016.

The scrip opened at Rs. 364.8 and has touched a high and low of Rs. 381.3 and Rs. 362.1 respectively. So far 1373793(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 68735.21 crore.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 500 on 05-Aug-2015 and a 52 week low of Rs. 302.1 on 24-Jun-2016. Last one week high and low of the scrip stood at Rs. 371.6 and Rs. 351 respectively.

The promoters holding in the company stood at 71.7 % while Institutions and Non-Institutions held 25.96 % and 2.26 % respectively.

The stock is currently trading above its 200 DMA.

Top 22 stocks in focus: Dr Reddys Lab, HDFC, Ambuja Cements

Check out the companies which will be in focus during trade today based on recent and latest news developments.

HDFC: The company will announce its Q1 result today.

Glenmark Pharmaceuticals: The company has been granted final approval by the United States Food & Drug Administration (U.S. FDA) for Potassium Chloride Extended-Release Tablets USP, 10 mEq (750 mg) and 20 mEq (1500 mg), the generic version of K-Dur (Potassium Chloride) Extended-Release Tablets, 10 and 20 mEq, of Merck Sharp and Dohme Corp (which is no longer being marketed in the United States).
 

Bharti Infratel: The company consolidated profit after tax increased by 71% yoy to Rs.756 crore for the quarter, while the Operating Free Cash Flow grew by 20% yoy to Rs.958 crore for the quarter.

Ambuja Cements: The company has posted a net profit of Rs.3995.10 million for the quarter ended June 30, 2016 as compared to Rs.2263.50 million for the quarter ended June 30, 2015.

Dr Reddys Laboratories: The company has posted a net profit of Rs.4091 million for the quarter ended June 30, 2016 as compared to Rs.4934 million for the quarter ended June 30, 2015.

Sutlej Textiles: The Board of Directors of the Company to consider Raising of funds through issuance of securities including equity shares or equity linked securities, including through a qualified institutional placement.

Bharti Airtel: Bharti Airtel will announce its Q1 result today.

PI Industries: The company has posted a net profit of Rs.1268.60 million for the quarter ended June 30, 2016 as compared to Rs.858.70 million for the quarter ended June 30, 2015.

United Spirits: The company has posted a net profit of Rs.438 million for the quarter ended June 30, 2016 as compared to Rs.116.10 million for the quarter ended June 30, 2015.

IDFC: The company has posted a net profit after taxes, minority interest and share of profit of associates of Rs.1812.10 million for the quarter ended June 30, 2016 as compared to Rs.2542.10 million for the quarter ended June 30, 2015.

Asian Paints: The company will announce its Q1 result today.

Bajaj Auto: Bajaj Auto will announce its Q1 result today.

Maruti Suzuki: The company's total income has increased from Rs.1,35,834 million for the quarter ended June 30, 2015 to Rs. 1,54,106 million for the quarter ended June 30, 2016.

Neuland Labs: The company has entered into a Joint Development Agreement with Phoenix Embassy Techno Zone Private for development of the land owned by the Company at Nanakramguda.

Bajaj Finserv: The company has posted a net profit of Rs.5375.10 million for the quarter ended June 30, 2016 as compared to Rs.4669 million for the quarter ended June 30, 2015.

Zee Entertainment: The company has posted a net profit of Rs.1703.60 million for the quarter ended June 30, 2016 as compared to Rs.1376.80 million for the quarter ended June 30, 2015.

Educomp Solutions: Educomp Solutions Limited has accorded its approval to divest its entire shareholding in Vidya Mandir Classes Limited (being 67% shareholding of VMCL), a subsidiary of the Company and Educomp Learning Hour Private Limited, a step down subsidiary of the Company (hereinafter collectively referred to as the "Sale Share")- by executing the share purchase agreement dated July 25, 2016 with the buyer.

TVS Motor Company: The company has posted a net profit of Rs.1212.50 million for the quarter ended June 30, 2016 as compared to Rs.1000.80 million for the quarter ended June 30, 2015.

ACC: The company has posted a net profit after taxes, minority interest and share of profit of associates of Rs.2391.20 million for the quarter ended June 30, 2016 as compared to Rs.1334.60 million for the quarter ended June 30, 2015.

IDFC Bank Ltd: The bank said its fiscal first quarter profit rose 60% to Rs.264.76 crore from Rs.165.06 crore in the preceding March quarter.

Symphony: The company's total income has increased by 37.7% at Rs.152.6 crore for the quarter against Rs.110.8 crore in the corresponding quarter of the previous year.

Welspun India: The company's revenue at Rs. 15,926 million vs. Rs.13,931 million; 14.3% growth YoY driven by higher volumes across products and higher mix of innovative and branded products.

Shilpa Medicare: Shilpa Medicare Ltd has informed BSE that the company had an audit conducted by the United States Food & Drug Administration (USFDA) at the SEZ Formulations facility situated at Jadcherla, near Hyderabad, from July 18, 2016 to July 26, 2016.

Karur Vysya Bank: The net profit of the bank surged 8.7% to Rs.146.3 crore in Q1 FY17 as against Rs.134.6 crore yoy.

Swaraj Engines: Swaraj Engines reported 21.8% increase in net profit at Rs.19 crore for the quarter ended June 30, 2016 against Rs.15.6 crore in the corresponding quarter a year ago.

Allahabad Bank: Reserve Bank of India in exercise of power conferred under Section 47 (A) (1) (c) read with Section 46 (4) (i) of the Banking Regulation Act, 1949, has imposed a penalty of Rs.2 crore on the Bank.

HCC: Hindustan Construction Company awarded a prestigious contract worth Rs.1749.59 crore by IRCON International Ltd to construct two tunnels and a bridge on Katra - Banihal Section of Udhampur - Srinagar - Baramulla under the new BG Railway Line Project.

Tata Steel Q1FY17 sales marginally up by 2.15 MT

Saleable Steel production is 2.34 million tonnes (up by 4.8% y-o-y) and Sales is 2.15 million tonnes (up by 0.1% y-o-y) for Ql FY17.

Tata Steel Limited registered Hot Metal and Crude Steel production of 3.01 million tonnes (up by 16.5% yoy) and 2.52 million tonnes (up by 7.6% yoy) respectively for Q1FY17. Saleable Steel production is 2.34 million tonnes (up by 4.8% yoy) and Sales is 2.15 million tonnes (up by 0.1% yoy) for Ql FY17.


Production & Sales Highlights

• Best-ever Jamshedpur Plant Hot Metal production of 2,665 KT in Q1FY17 (Previous Best: 2,588 KT in Q1 FY16)
• Best-ever Jamshedpur Plant Sinter production of 2,024 KT in Q1 FYl 7 (Previous Best: 1,804 KT in Q1 FY16)
• Best-ever Jamshedpur Plant Pellet production of 1,668 KT in Q1 FY17 (Previous Best: 1,473  KT in Q1 FY16)
• Commercial production started at Kalinganagar Plant from June 1, 2016

Stock price:

Tata Steel Ltd is currently trading at Rs. 364.75, down by Rs. 2.9 or 0.79% from its previous closing of Rs. 367.65 on the BSE.

The scrip opened at Rs. 370 and has touched a high and low of Rs. 370.25 and Rs. 364.25 respectively. So far 2022210(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 35706.74 crore.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 379.25 on 18-Jul-2016 and a 52 week low of Rs. 200 on 29-Sep-2015. Last one week high and low of the scrip stood at Rs. 374.7 and Rs. 356.5 respectively.

The promoters holding in the company stood at 32.06 % while Institutions and Non-Institutions held 41.35 % and 26.59 % respectively.

The stock is currently trading above its 50 DMA.

Yamaha establishes its second R&D Centre in India

The new centre is located in the premises of India Yamaha Motor’s plant in Kanchipuram district, Tamil Nadu.

Yamaha Motor Research & Development India Pvt. Ltd. (YMRI) announced the establishment of its second R&D Centre in India today. The new Centre is located in the premises of India Yamaha Motor’s plant in Kanchipuram district, Tamil Nadu. The new Centre has been established to ensure optimum utilization of resources at both the locations and focus towards the enhancement of the capability and the capacity. An investment of Rs. 66 crores has been made to set-up the center and it is part of the Rs. 1,500 crore investment that Yamaha has already committed to ‘Make in India’ by 2018.
 
On this occasion, Yasuo Ishihara, Managing Director, YMRI, said, “The objective of the new Centre is to develop models for India and eventually, the Global market. The Chennai Centre shall be the second main pillar for YMRI. By collaboration with the current development power in Surajpur center, we aim to strengthen more of the cost reduction and attractive product development in the Chennai center. The key role of this India Integrated Development Center is to develop optimized specifications for the Indian market.”

Yes Bank beats estimates! Q1 net profit up 32.8% at Rs.731 crore

The bank has posted a net profit of Rs.7318 million for the quarter ended June 30, 2016 as compared to Rs. 5512 million for the quarter ended June 30, 2015.

Yes Bank Ltd has announced the following Unaudited Standalone results for the quarter ended June 30, 2016:

The bank has posted a net profit of Rs.7318 million for the quarter ended June 30, 2016 as compared to Rs. 5512 million for the quarter ended June 30, 2015. Total Income has increased from Rs. 37970.20 million for the quarter ended June 30, 2015 to Rs. 47628.30 million for the quarter ended June 30, 2016.

Commenting on the results and financial performance, Mr. Rana Kapoor, Managing Director & CEO, YES BANK said, “YES BANK has delivered another highly satisfactory quarter of financial performance reflected in strong & quality growth, sustained profitability and continued resilience in asset quality.

The Bank continues to witness a robust CASA growth with the CASA ratio improving to a healthy 29.6% from 23.4% a year ago demonstrating significant momentum in the underlying Retail franchise platforms, as well as ongoing mandate in several corporate relationship groups. Further, YES BANK has received an in-principle approval from the Securities & Exchange Board of India (SEBI) to setup an Asset Management Company (AMC) which will further deepen our value proposition for our retail customers.

Given the improving macroeconomic environment along with stable Asset quality and accelerating Retail franchise, the Bank is well poised to capture Market share across Retail and Corporate segments at an enhanced pace.”

Profit & Loss Account

• Net Interest Income (NII): NII for Q1FY17 increased by 24.2% y-o-y to Rs.1,316.6 Crores on account of strong growth in advances and CASA deposits. Net interest Margin (NIM) at 3.4% for Q1FY17 up from 3.3% for Q1FY16.
• Non Interest Income: Non Interest Income increased by 65.2% y-o-y to Rs.900.5 Crores in Q1FY17.
• Total Net Income: Total Net Income increased by 38.1% y-o-y to Rs.2,217.1 Crores in Q1FY17.
• Operating and Net profit: Operating profit for Q1FY17 increased by 43.9% y-o-y to Rs.1,306.8 Crores. Net Profit in Q1FY17 was up 32.8% y-o-y to Rs.731.8 Crores.
• Shareholders’ Returns: The Bank delivered RoA of 1.7% and RoE of 20.7% for Q1FY17.

Balance Sheet

• Deposits: Total Deposits grew by 28.6% y-o-y to Rs.1,22,581.1 Crores as at June 30, 2016. The Bank’s Total Assets grew by 27.5% y-o-y to Rs.1,77,228.9 Crores as at June 30, 2016. The Bank’s CD ratio stood at 86.4% as at June 30, 2016.
• Current and Savings Account (CASA) deposits grew by 63.0% y-o-y to Rs.36,288.3 Crores increasing the CASA ratio to 29.6% as at June 30, 2016 up from 23.4% as at June 30, 2015. Further, SA deposits grew by 81.6% y-o-y to Rs.25,186.5 Crores from Rs.13,867.4 Crores as at June 30, 2015.

Advances: Total Advances grew by 33.0% y-o-y to Rs.105,942.0 Crores as at June 30, 2016.
Corporate Banking accounted for 67.5% of the Advances portfolio, while Retail & Business Banking (MSME) constituted 32.5%.

Asset Quality

• Bank continues to show resilience on all Asset Quality parameters:
• 1. NPA – Credit Costs at 15 bps for Q1FY17 Gross Non Performing Advances (GNPA) as a proportion of Gross Advances was at 0.79%
• (Rs.844.6 Crores) while Net Non Performing Advances (NNPA) as a proportion of Net advances was stable at 0.29% (Rs.302.4 Crores) as at June 30, 2016. Bank’s specific loan loss
• Provision Coverage was at 64.2% as at June 30, 2016.

Stock Price:

Yes Bank Ltd is currently trading at Rs. 1182, down by Rs. 18.25 or 1.52% from its previous closing of Rs. 1200.25 on the BSE.

The scrip opened at Rs. 1205 and has touched a high and low of Rs. 1214 and Rs. 1180.1 respectively. So far 2202579(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 50550.14 crore.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 1210.05 on 26-Jul-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. 1210.05 and Rs. 1147.75 respectively.

The promoters holding in the company stood at 21.88 % while Institutions and Non-Institutions held 66.13 % and 11.98 % respectively.

The stock is currently trading above its 50 DMA.