India's GDP grows at 7.2% in Oct-Dec

Indian economy grew at 7.2 percent in October-December 2017, as against the expected growth of 6.5%.  And will likely expand 6.6 percent growth in 2017-18. 
Rate sensitive stocks like bank, auto and FMCG  will react positively in tomorrow's trade.

SBI ups interest rate on deposits

 State Bank of India has increased interest rates on various term deposits with immediate effect. For retail domestic deposits below Rs 1 crore, an individual will now earn 6.40% interest rate on one-year deposits, which is higher by 15 basis points from previous 6.25% interest rate. 

Interest rates of 6.40% have also been levied on deposits made for 211 days to less than 1 year tenure, above 1 year to 455 days tenure, and 456 days to less than 2 years’ tenure. 

H G Infra IPO subscribed almost 5 times

H G Infra IPO has been subscribed 4.92 times, on the last day.

H G Infra gets 44% subscription

H G Infra IPO has received 44% subscription day  2. The IPO closes tomorrow.

PNB touches new 52 week low

Scam tainted PNB touched new 52 week low of Rs 101 in today's trade. The stock is down more than 40% in the last 30 days. Due to PNB impact most PSU bank stocks are in red.

MakeMyTrip to tie up with OYO again

MakeMyTrip after dissociating with OYO Rooms’ hotel inventory, will once again offer OYO hotel rooms, a move that is likely to boost sales at OYO.

A group of online travel providers including MakeMyTrip, Goibibo and Yatra jointly blocked OYO from listing its hotels on their platforms in October 2015. 

Bse News : Transaction charges waived

In attempt to boost trading volume BSE says that it will waive transaction charges applicable on equity segment trade in S&P BSE Sensex 30 stocks with effect from March 12 next.

S&P BSE Sensex is the barometer of Indian economy. This move is aimed at facilitating and encouraging participation by retail investors in financially sound companies.

Harley-Davidson : Trump bats for reduction in import duty

Donald Trump has once again raked up the issue of high import duty on Harley-Davidson motorcycles by India, saying the US was "getting nothing" with the New Delhi's recent announcement that it had slashed customs duty on imported motorcycles from high-end brands to 50 per cent. 

Modi's job creation ideas is in reverse gear

According to Center for Monitoring Indian Economy,the unemployment rate reached a 71-week high in the week ended February 25. It is possible that February 2018 will end with the highest unemployment rate in the last 15 or 16 months. The unemployment rate has been rising steadily since July 2017.

SBI is confident that PNB will clear 11,400 Cr dues to other banks.

Country's largest bank SBI says that the they expects PNB to clear the outstanding dues pertaining to Nirav Modi  with other banks shortly.

H G Infra gets 11% subscription day 1

H G Infra IPO has received 11% subscription on day 1.  The IPO closes on 28-02-2018.

Since the pricing is aggressive FirstChoice IPO has given a avoid call on the offer.

Aster DM Healthcare lists at discount

Aster DM Healthcare closed at Rs 181, as against the IPO price of Rs 190.

FirstChoiceIPO had given the  avoid call on the public offer made by the company.

IPO ANALYSIS : H.G. INFRA ENGINEERING LIMITED - EXPENSIVE - AVOID

Issue Details :

Issue opens  / closes on	26-02 / 28-02-2018
Issue size	Rs 300 Cr + OFS of 60 lacs shares
Face value	Rs 10
Price	Rs 263 -270
Promoters	HARENDRA SINGH, MR. VIJENDRA SINGH AND MR. GIRISH PAL SINGH
Business	Construction / EPC/ Infra
Listings	Bse, Nse
BRLM	HDFC Bank, SBI Caps
Registrar	Link Intime

BUSINESS :

The enterprise is an  infrastructure construction, development and management company with extensive experience in our focus area of road projects, including highways, bridges and flyovers. The main business operations includes EPC  projects / services on a fixed-sum turnkey basis and  undertaking civil construction and related infrastructure projects on item rate and lump sum basis, primarily in the roads and highway sector. In the past five years, the company has executed more than 13 projects worth over Rs 40 crore in the roads and highways segment.

The offer is made around 33 PE, which is expensive compared to listed peers.

Avoid the IPO.

Fiis withdraw Rs 10,000 Cr from equity markets in Feb

 LTCG tax fiasco, Jewellers loan scam at PNB has made the Foreign investors have pull out nearly Rs 10,000 crore from the Indian stock market so far this month. The benchmark indices during the period have lost almost 5%. 

Genesis of corporate loan defaults / frauds

List of recent bank frauds:

slno	Borrower / Promoters	Banks	Amount - defaulted / defrauded
1	KFA /Mallya	SBI / others	9000
2	Winsome diamonds / Jatin Mehta	PNB /others	7000
3	Zoom Developers /Vijay Choudhary	Central Bank of India / others	2700
4	Nirav Modi / Firestar	PNB / others	16000
5	Geetanjali/ Mehul Choksi	PNB / others	4000
6	Deccan Chronicle / T Venkata Rami Reddy	Canara Bank / some private banks	4000
7	Dwaraka Das International / Sabhya Seth	OBC	390
8	Rotomac / Vikram Kothari	PNB / others	3600
9	Electrotherm / Mukesh Bhandari	Central Bank of India / others	435
10	Sterling Biotech /  Chetan Jayantilal Sandesara	Andhra Bank / others	5000

                                                          

( The above list is not exhaustive / comprehensive)

In the last three years, the PSU as well as private banks have lost around Rs 45,000 Cr on account of various banking frauds, including the latest Jewellery loan fraud at PNB. As on Sept 2017, the total gross non performing loans of PSU banks were above Rs 7 lac Cr and that of private banks at Rs 1 lac Cr. The banks are likely to add another lac Cr this year to gross NPA. Let us look at how banks sanction loans to big corporates. The chartered accountant/s of the borrower prepares a rosy project report and approaches a PSU bank, based generally in Mumbai or New Delhi for loan sanction. The chartered account convinces the bank that they have to take only 15-20% the proposed loan and the balance is being tied up with others banks, which is not a fact. The same project report is the appraisal report of the bank (with minimum value addition) and the same is placed before the appropriate authorities for sanction. On getting sanction from the bank the chartered account and / or with the above bank’s officials approaches other banks, these persons or entities are called ‘loan syndicators’ for balance portion of the loan. Likewise they rope in other banks and tie up the entire loan. In some cases the bank officials have not interacted with main promoter, might not seen the registered / corporate office and discrete market information on promoters, projects / industry prospects may not have been gathered. Once the documentation for loan release are over, banks disburse their portion of loan to the lead banker as requested by the borrower. It is the responsibility of the lead bank to ensure proper utilization of the funds released to the borrower. Due to improper check on the utilization of funds, funds are being used or diverted to purposes other than what it is really meant. This is the biggest loophole in bank frauds. Consortium banking always works to the advantages of the borrower. Borrowers confuse the banks, and the borrowers always says that the other bank has done it why can't you do? When things go wrong bankers start blame each other, saying we relied on you. Monitoring system of the loans not adhered properly. Monitoring post sanction of loan is weaker in PSBs compared to the Private banks on account of diverse loan portfolio, lack of expertise and modern technological resources, and lack of manpower and motivated employees, who are not appropriately incentivized to detect early frauds or prevent them. Periodical site / plant visit, interaction with the promoters, their competitors, gathering independent information on the project / industry they have financed are lacking. Deficient loan appraisal system and improper monitoring of loans are the major reasons why loan goes bad / fraud happens in banks, in most cases. The other reasons, inter alia, includes corruption at various level, sanction of loans based on influence, political or otherwise.

Forthcoming IPOs

Sl no	Name of the company
1	ICICI Securities
2	HAL
3	Barbeque National Hospitality
4	Flemingo Travel Retail
5	Bandhan Bank
6	IndoStar Capital Finance
7	Bharat Dynamics
8	IRDEA
9	Nazara Technologies
10	RItes