PSU bank employees on strike, operations hit-:- Equity Research

Services at around 80,000 bank branches in the country were hit today as employees of public sector banks went on a one-day strike to protest proposed merger of SBI associates with the parent and other issues. However, private sector banks like ICICI Bank   were working as usual. Most of the public sector banks including SBI had earlier informed their customers of inconvenience if strike materialises. The United Forum of Banks Unions (UFBU),...

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Expect 10-12% margins from Mumbai metro project-:- Equity Research

Infrastructure major HCC 's  standalone net profit for the June quarter rose 17.49 percent to Rs 10.88 crore on the back of higher income. Total income from operations increased to Rs 982.45 crore from Rs 975.07 crore in the year-ago period. Praveen Sood, Group CFO of the company told CNBC-TV18 that the company's order book has logged a growth after a long time company and that going forward transport sector will lead the growth in the...

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May look at hiking prices if raw material costs increase-:- Equity Research

Despite severe competition from Chinese tyre imports, CEAT  grew volumes 13 percent year-on-year. China tyre inflows have increased for truck radial and commercial vehicle segments and the company has requested the government for anti-dumping duty on tyres, said Anant Goenka, MD of the company. CEAT posted a revenue growth of 3.9 percent on the back of healthy original equipment manufacturer (OEM) sector performance, he told CNBC-TV18....

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Will breakeven in cash; pare debt by monetising land-:- Equity Research

Adlabs Entertainment   , which operates Imagica theme park, expects to breakeven in cash this fiscal, said Kapil Bagla, CEO of the company. Adlabs was already cash positive in the first quarter of FY17. The company reported a standalone net loss of Rs 19.23 crore for the first quarter ended June this fiscal. In an interview to CNBC-TV18, he said Adlabs is working to improve EBITDA and pare debt by monetising land this year, he added. Bagla...

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Cognizant acquires Idea Couture-:- Equity Research

Software services major Cognizant has acquired US-based Idea Couture for an undisclosed amount to boost its digital technologies offering. Idea Couture, which specialises in designing and prototyping products, services and business models, will become part of Cognizant Digital Works, Cognizant said in a statement. Terms of the deal were not disclosed. Cognizant Digital Works combines human insight, strategy, design, technology and industry...

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Improvement in PNB earnings already factored in stock-:- Equity Research

After a consistently dissapointing performance, the earnings numbers for Punjab National Bank   (PNB) look better than expected, says Pankaj Sharma, Equirus Securities. But the improved earnings is already in the price of the stock, he says. The stock had fallen to Rs 70 before to it rose close to 85 percent. The bank had Rs 42000 crore worth of slippages last year. It will do around 16000-17000 crore worth slippages this year, accoring...

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Arvind Sanger on market rally-:- Equity Research

The global economy is not exactly in fine shape but one wouldn't conclude that having a look at equity markets. Analysts say share prices have been driven to multi-year or record highs globally thanks to easy-money policies pursued by central banks. Comparing the market rally to "riding a tiger", Arvind Sanger of New York-based Geosphere Capital says the European Central Bank and Bank of Japan, battling a slowdown in their economies, have "no...

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See strong rural demand on good monsoon-:- Equity Research

Asian Paints   is targeting a double-digit volume growth, said KBS Anand, MD and CEO of the company. He expects a good monsoon and pay hikes for government employees to boost demand for decorative paints.  In an exclusive interview to CNBC-TV18, Anand said the decorative paints market has picked up in the last three quarters. Growth in the company's international business is picking up, but Anand said it does not have a significant...

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Not positive on Lupin's US business-:- Equity Research

In an interview to CNBC-TV18, Surajit Pal of Prabhudas Lilladher said he was not very bullish about the US business of  Lupin   .   The company on Wednesday had received preliminary approval from the US FDA to market a generic equivalent of GlaxoSmithKline Plc’s ViiV Healthcare’s (ViiV) antiretroviral (ARV) Lexiva tablets in 700 milligram dosage form. This product was filed from the company's Goa plant which has run into a problem...

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Ambuja Cements Q2 net up 77% at Rs 399.51 cr-:- Equity Research

 Ambuja Cements   today reported a healthy 77 percent growth in its standalone net profit at Rs 399.51 crore for the quarter ended June 30, 2016. The firm, which follows January-December as fiscal year, had clocked a net profit of Rs 226.35 crore in the year ago period, it said in a BSE filing. Total standalone income of the company, however, rose by just 2 percent to Rs 2,560.72 crore in April-June quarter of 2016 against Rs 2,508.27...

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Dr Reddy's tanks 10% on slew of downgrades & target cut post Q1-:- Equity Research

Most analysts have downgraded Dr Reddy’s Labs  and slashed target price on  dismal June quarter results dragged by US pricing issue. Shares of the Hyderabad-based company plunged over 10 percent intraday on Wednesday (stock lost over 4 percent yesterday). The drug major missed analysts' expectations on all counts with consolidated profit falling sharply by 76.3 percent year-on-year to Rs 153.5 crore, impacted largely by US business...

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Tata Steel sales up marginally to 2.15 MT in April-June-:- Equity Research

Tata Steel   reported a marginal growth in its sales at 2.15 million tonnes (MT) for the first quarter ended June 30. The Mumbai-based firm had clocked sales of 2.14 MT during the same period in 2015-16 fiscal, it said in a regulatory filing. The steelmaker's crude steel production, however, grew by 7 per cent to 2.52 MT during April-June 2016-17 against 2.35 MT during the same quarter in 2015-16. Saleable steel output rose by 5 per cent...

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Deal with JSW Energy progressing well; more PPAs expected -:- Equity Research

Jindal Steel and Power (JSPL) MD & CEO Ravi Uppal said the Ramchandi coal block in Odisha was never used by the company. However, the proposed coal-to-liquid project based on that block was cancelled post deallocation of the block by the Supreme Court in 2014. Earlier this week, the Central Vigilance Commission (CVC) endorsed Central Bureau of Investigation's (CBI) view that were no irregularities in the allocation of Ramchandi coal block....

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Expect sugar to do well; prices to improve-:- Equity Research

There has been a turnaround in functioning of all sugar companies this quarter because of the change in the fundamentals of sugar balance sheet, both globally and domestically, N Ramanathan, Managing Director of Ponni Sugars told CNBC-TV18. He said the company has been able to crush more sugarcane and improve sugar production this year. This, along with an improvement in realisation as well as sales volumes, has boosted both topline and bottomline....

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It's time to look at well-performing stocks-:- Equity Research

The domestic market will continue to move up as long as international markets remain stable. The recent liquidity rush will continue into emerging markets, says Ajay Srivastava, CEO of Dimensions Consulting. Investors are now hoping for an economic recovery. If results are not visible in the next one or two quarters, skepticism will return, he says, adding that a 5-10 percent increase on earnings per share (EPS) side is legitimate. “The current...

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Moving to GST regime will be beneficial for economy-:- Equity Research

The government faces a fine-balancing act , as it works to reach a consensus with the state governments and opposition parties, whilst also ensuring higher taxes don't impinge on growth/ incomes. The odds are high that the authorities initially adopt a multi-tiered and diluted version of the GST. If so, a move to a single rate remains possible over the medium-term. Either version is preferable to the current VAT, DBS said...

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Other income lifts Maruti Q1 profit 23%, revenue misses forecast-:- Equity Research

Automobile company Maruti Suzuki   's first quarter (April-June) profit beat analysts' expectations on Tuesday, growing 23 percent to Rs 1,486.2 crore compared with Rs 1,208.1 crore in year-ago period, driven majorly by other income. "Profit in the quarter was helped by a higher turnover, material cost reduction, higher non-operating income and lower depreciation, though adverse foreign exchange movement reduced bottomline growth...

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Many prohibited drugs available in markets-:- Equity Research

As many as 439 drugs, including brands like Phensedyl and Corex which have been banned for sale and distribution, but some of them continue to be available in the markets due to the intervention of courts, Chemicals and Fertilisers Minister Ananth Kumar said today. Kumar said in Lok Sabha that these 439 drugs, including 344 fixed dose combinations, were banned after examination of the samples of the medicines. "Many of the drug manufacturers...

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Govt not considering strategic sale of IDBI Bank-:- Equity Research

The government today said it is not considering any proposal of strategic sale of state-owned IDBI Bank   . Minister of State for Finance Santosh Kumar Gangwar in a written reply in the Rajya Sabha said: "No" to a question whether the government is proposing strategic sale of IDBI Bank. The Minister, however, said that public sector banks including IDBI have been allowed to raise capital through follow on public offer or qualified...

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GAIL, Gazprom renegotiating LNG deal, says sources -:- Equity Research

GAIL India   is in talks with Russia's Gazprom to delay and renegotiate a 20-year gas purchase deal undercut by low spot prices, sources familiar with the matter say, as weak demand at home forces it to stall some contracted supply. Shipments under the deal, initially expected to start in 2018/2019, are linked to crude oil prices which are rising while gas prices are expected to stay subdued for longer as major new production plants in...

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Coffee production likely to fall 8% this fiscal -:- Equity Research

Domestic coffee production is likely to decline by eight percent in the current fiscal mainly due to lack of timely rains, government said today. "It has been estimated that there is a likelihood of decline in coffee production in 2016-17 by 8 percent compared to that in 2015-16 due to lack of timely rains and high temperature during the crucial flowering stage," Commerce and Industry Minister Nirmala Sitharaman told the Lok Sabha. Coffee Board...

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IOB, Central Bank to benefit from capital infusion -:- Equity Research

Indian Overseas Bank   and Central Bank of India   will benefit from the government's recent capital infusion as they have got a higher share as a proportion of their share capital, Moody's said today. "The capital infusion will improve their capitalisation at a time when asset quality pressure and elevated provisioning costs have negatively affected their financial performance," it said in its credit outlook titled, 'Indian Overseas...

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ITC appoints Sanjiv Puri as COO -:- Equity Research

FMCG major ITC   today announced the appointment of Sanjiv Puri as its chief operating officer with immediate effect. The board of the company, in its meeting held today "redesignated Sanjiv Puri, Wholetime Director, also as Chief Operating Officer of the Company with immediate effect," ITC said in a BSE filing. On December 6, ITC had elevated Sanjiv Puri as Director of its FMCG business replacing P Dhobale. He also has responsibility...

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Rains support RBI rate cut, may douse agflation -:- Equity Research

The Reserve Bank is expected to cut key interest rate by 25 basis points at its policy review meet next month if prices of pulses fall and help push down agflation, a BoA-ML report said today, even as it sees overall retail inflation in July to touch 6 percent. According to the global financial services major, normal rains are pushing up sowing and river waters would douse agricultural inflation (agflation) going forward. "We continue to expect...

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India receives $5.34 bn FDI in April-May-:- Equity Research

India received USD 5.34 billion foreign direct investment in the first two months of the current financial year, Parliament was informed today. During April-May the country attracted USD 4.76 billion FDI under automatic route, while USD 582 million came through the approval route, Minister of State for Finance Arjun Meghwal said in a written reply to the Lok Sabha. He said the government has made changes in the FDI policy in several sectors...

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To enhance capacity by 25 percent -:- Equity Research

Chemfab Alkalis posted a stellar set of numbers for Q1 of FY17. In an interview to CNBC-TV18, VM Srinivasan, Chief Economic Officer (CEO) of Chemfab Alkalis spoke about the results and his outlook for the company. The company has been able to use its full capacity, got benefits of cost saving measures of last year and 3-4 percent uptick in product prices, all these factors together led to margin improvement, he said. Chemfab Alkalis is planning...

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Expect to see pick-up in exports in Q2 -:- Equity Research

Ashok Leyland, the second largest commercial vehicle (CV) manufacturer in India, has outpaced the industry with respect to domestic volume growth for the ninth quarter in a row. Company's overall revenues have grown by 10 percent, Gopal Mahadevan, Chief Financial Officer of Ashok Leyland told CNBC-TV18. CV industry is one of the fastest growing sectors in India and expects Q4 of the fiscal year 2016-2017 to be very strong. Mahadevan expects...

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No signs of top-out; best of bull market yet to come -:- Equity Research

  The Indian stock market has had a phenomenal run over the past four-five months, rallying about 20 percent since February lows. But a top technical analyst who had correctly forecast the move and recently said the market was in the midst of a 'raging bull run' believes the rally has more legs to go. "There is no indication to suggest the market is topping out," Gautam Shah, Associate Director and Technical Analyst, JM Financial told CNBC-TV18....

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JSW Steel plans to raise up to $750 mn from foreign investors-:- Equity Research

Sajjan Jindal-led JSW Steel is looking to raise up to USD 750 million (about Rs 5,032 crore) from international markets. In this regard, a meeting of the Board of Directors has been convened. It will be held on July 27, 2016, the company said in a regulatory filing. "In the aforesaid meeting, the Board would also be considering raising of long-term funds through issuance of non-convertible senior unsecured fixed rate bonds denominated in foreign...

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Niti Aayog to hold 2-day workshop on urban infra today-:- Equity Research

Government think tank Niti Aayog will organise from today a two-day workshop on improving urban infrastructure through best practices in public financing. The two-day workshop will focus on areas such as PPP (Public Private Partnership) process -- key success factors from government perspective, PPP models and payment mechanisms, planning and preparation for PPP projects, Niti Aayog said in a statement. It will also deliberate on introduction...

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RBI to cut rates by 25 bps on Aug 9 if rains damp pulse price-:- Equity Research

The Reserve Bank is expected to cut key interest rates by 25 basis points in its policy review meet on August 9, if good rains damp pulse price inflation, says a Bank of America Merrill Lynch (BofA-ML) report. Pulses inflation is running at 27 percent on a poor summer rabi crop. "With good rains, pulses' sowing for the kharif season has jumped 39 percent above last year's sowing. This should pull down pulses prices by 20 percent and cool CPI...

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Silver a bright spot; working to ramp up volumes-:- Equity Research

Zinc volumes for Hindustan Zinc   were weak in the first quarter but Q2 will see an improvement coming from the Rampura Agucha opencast mine, said Sunil Duggal, CEO and Wholetime Director of the company. In an interview to CNBC-TV18, Duggal said even underground mines is expected to go up from 40 percent to 60 percent. The company reported a 47 percent decline in its net profit to Rs 1,037 crore for the quarter ended June mainly on...

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HDFC Bank Q1 profit rises 20%, provisions & NPA remain higher-:- Equity Research

India's second largest private sector lender HDFC Bank   matched analysts' expectations on Thursday with profit rising 20.14 percent year-on-year to Rs 3,239 crore. It was driven by other income, operating profit and slightly better-than-expected net interest income but higher provisions and tax cost limited profit growth. Net interest income, the difference between interest earned and interest expended, grew by 21.8 percent to Rs...

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To set up 1980 MW thermal power plant in UP-:- Equity Research

The Cabinet Committee on Economic Affairs (CCEA) has approved  Neyveli Lignite Corporation's (NLC) proposal to set up a 1,980 megawatt (MW) thermal power plant in Uttar Pradesh (UP), Chairman SK Acharya told CNBC-TV18. Neyveli Uttar Pradesh Power Ltd (NUPPL) -- a joint venture (JV) of NLC and Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) -- is going to install Ghatampur Thermal Power Project (GTPC) of 1,980 MW. First unit...

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Additional royalty payment a major setback for Oil India -:- Equity Research

Upstream oil companies will now have to pay additional royalty on onshore crude production on gross realisation instead on net realisation, with respect from February 2014, amounting in excess of USD 1 billion. In its report, Citi has said that the incremental impact on ONGC would be negligible (0.3 percent of share price) as it has been providing this contingency in its books. However, Oil India will have a deeper impact as 100 percent of...

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HUL Q1 net up 10%, revenue below estimates; volume growth at 4%-:- Equity Research

Hindustan Unilver has posted disappointing June quarter results with muted volume growth. Its net profit was at Rs 1174 crore (up 9.8 percent) in the quarter ended June 2016. Its income stood at Rs 8128 crore up 3 percent in Q1 on annual basis, way below CNBC-TV18 poll. During the period, its volume growth was below estimates at 4 percent year-on-year.  Profit was expected to increase 10 percent year-on-year to Rs 1,156 crore on margin...

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Coal imports likely to decline to 160 MT in FY'17-:- Equity Research

Country's coal imports have declined 5 percent in the first two months of 2016-17 and the number is expected to reach 160.16 million tonnes in the ongoing fiscal, Parliament was informed today. "The trend of fall in import of coal has continued in 2016-17 wherein for the period April-May 2016-17, coal imports have reduced by around 5 percent as compared to the corresponding period of the previous year. "Import of coal is projected for the year...

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Ajanta Pharma launches acid reflux drug in US-:- Equity Research

Ajanta Pharma has launched generic omeprazole and sodium bicarbonate capsules, used in the treatment of acid reflux and ulcers, in the US market after receiving final approval from the country's health regulator. The company has launched the product in the US through its wholly-owned subsidiary, Ajanta Pharma USA Inc, Ajanta Pharma said in a filing to BSE. The approval from the United States Food and Drug Administration (USFDA) is for the capsules...

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Nirmala for easier visa regime to promote services, tourism-:- Equity Research

The Commerce Ministry has pitched for an easier visa regime to promote tourism and boost service sector exports. "We have been recommending (easy visa regime) to improve tourism and certain service sectors, including medical tourism. "We from the the ministry wanted e-visas and visa on arrival to be provided, so that it becomes less cumbersome and helps in promoting services sector and tourism. So that is the recommendation which has gone from...

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Focus on domestic businesses than IT firms in India-:- Equity Research

Morgan. However, recovery in commodity prices and stable dollar in the US is taking away an important drag, he says. India, among EMs, is now coming out of weak loan and capex cycle, he says adding that most of this is aided by policies and reforms undertaken by the government. JP Morgan has an overweight stance on India with expectations of double digit returns as the index moves towards 9,000 level. Strong earnings are expected in 2017,...

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India slips to 3rd place on business optimism index-:- Equity Research

After staying on top for two quarters, India slipped to the third position globally on the scale of business optimism because of delays in key reforms like the GST and bad loans facing state-owned banks, says a report. According to the latest Grant Thornton International Business Report (IBR), India ranked third during the April- June quarter of 2016. "Delays in key reforms like GST, non-resolution of tax disputes, banking issues due to NPAs...

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Canara Bank aims to keep gross NPLs below 10% this fiscal-:- Equity Research

Government is yet to communicate to banks regarding disbursement of funds to tackle the stressed asset situation, says TN Manoharan, Chairman of Canara Bank   . Some recent reports had suggested that government will give funds to public sector lenders sooner than expected. Speaking to CNBC-TV18, Manoharan doesn’t see the need to raise funds in current fiscal. The bank had raised funds via tier-II bonds worth Rs 3,000 crore in April this...

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Infosys Q1 profit falls 4.5%, cuts FY17 dollar revenue guidance-:- Equity Research

IT major Infosys   started off the financial year on a tepid note as it missed analysts' expectations on topline front for the quarter ended June 2016 while the bottomline was in-line. Profit in Q1 declined 4.5 percent sequentially to Rs 3,436 crore while revenue increased 1.4 percent to Rs 16,782 crore. Revenue in dollar terms grew by 2.2 percent to USD 2,501 million and constant currency dollar revenue growth stood at 1.7 percent compared...

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Hero MotoCorp launches Splendor iSmart 110-:- Equity Research

The country's largest two-wheeler maker Hero MotoCorp today launched its first in-house designed and developed motorcycle, Splendor iSmart 110, priced at Rs 53,300 (ex-showroom Delhi). Built on a completely new chassis and frame with a brand new engine, the new model has been developed at the company's Centre of Innovation (CIT) in Jaipur. "With the launch of the all-new Splendor iSmart 110, we have achieved yet another significant milestone...

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Ahead of monsoon session, govt reaches out to Cong over GST bill-:- Equity Research

Ahead of the Monsoon Session of Parliament, the Narendra Modi government on Thursday reached out to the principal opposition party Congress over the contentious issue of Goods and Service Tax Bill. Union Minister Venkaiah Naidu spoke to senior Congress leaders Ghulam Nabi Azad and Anand Sharma. Both Congress leaders assured Naidu that they will get back to him soon after consultations within their party. The Monsoon Session will begin from...

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Cotton price jump may not hit margins much-:- Equity Research

Cotton prices have risen significantly since mid April but Sachit Jain, MD of Vardhman Textiles   does not see much impact on margins as yarn prices have also been rising alongside, albeit at a slower pace. The company has also bought most of its cotton requirements before April and holds inventory of nearly 6-8 months. In an interview with CNBC-TV18, Jain says prices of Shankar-6 cotton have jumped up to nearly Rs 47,000 per candy from...

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Brexit impact will be felt in 7-8 months: Banque Internationale-:- Equity Research

The Bank of England is expected to lower rates in a meeting scheduled later today. Hans Goetti of Banque Internationale believes that while there is a possibility of lower rates, falling pound has already done the job. While Brexit is no more front-page news anymore, it still has consequences, which may be felt 7-8 months down the line as downside risks persists, he told CNBC-TV18. Equities in global markets are rallying because of hold on...

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WPI hardens to 1.62% YoY thanks to food prices-:- Equity Research

India's wholesale price index (WPI) rose 1.62 percent year-on-year in the month of June, compared to 0.79 percent in May, and ahead of economists' expectations of 1.15 percent. The increase was driven by increases in food articles, minerals as well as fuel & power, apart from the base effect. The primary articles index was up 2.9 percent while non-food articles rose 2.1 percent. Minerals group and fuel & power were up 6.9 percent and...

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