Friday, November 30, 2018

India's GDP drops

Image result for gdp down

India’s GDP growth rate moderated to 7.1% in the September quarter. Down  from 8.2% in the June quarter. The Sept GDP data has fallen short of  estimates.

IPO ANALYSIS : SoftBank Group Corp (Wireless unit) - Invest

Image result for softbank wireless

Issue Details :

Issue opens
Dec 10, 2018
Issue size
$ 21 billions
Trading to start on
$ 13.23 (indicative)
Business (wireless unit)
SoftBank’s domestic telecommunications business spans wireless, broadband and fixed-line services and its brand is widely recognized with storefronts throughout Japan
Masayoshi Son
Tokyo, Japan
Global Coordinator for the IPO
Nomura, Mizuho, Deutsche Bank, Goldman Sachs, JP Morgan and SMBC Nikko
IPO bigger than Alibaba
SoftBank’s wireless IPO is the biggest in the world. The largest so far was the $25 billion listing of Alibaba Group Holdings Ltd

Yes Bank gains on short covering, management clarification

Image result for yes bank

Yes Bank gained 6% and closed at Rs 170.50 in today's trade.  Short covering and management clarification certain issues helped the stock scale up to Rs 170 level.

The bank's management has clarified its stance on ownership in Morgan Credits, exposure to developers and current financial situation of the lender. Rana Kapoor doesn't have any ownership in Morgan Credits or Yes Capital. 

Expect the stock to gain 15-20% in next week trade.

NSEL Scam : IIFL, Anand Rathi, Geofin, Motilal Oswal, Philip Commodities under Sebi radar

Image result for nsel scam

Sebi is at an ‘advanced stage’ of investigation against five top brokers in the Rs 5,500 crore National Spot Exchange (NSEL) scam. Sebi had issued a show cause notice against them alleging that they are no longer ‘fit and proper’ to function as a registered broker in the commodities market. The five broking firms include Anand Rathi Commodities, India Infoline Commodities, Geofin Comtrade, Motilal Oswal and Philip commodities.

Stock Watch : Buy Sun Pharma, target Rs 610

Image result for sunpharma

Sun Pharma has lost more than 15% in the last one month, after the company came out with Sept numbers. In the last 1 year the stock under performed and has given a negative return of 11%. Most brokerages are negative on the stock. However FirstChoice IPO has a contrary opinion on the stock. We expect the stock to bounce back from current level.  USFDA approvals are expected to be received in the next few weeks. Sept - Dec quarter results will be better than what market is expecting. We expect the stock touch Rs 610 in the near term. Buy at current level. The stock in Thursday's trading closed at Rs 484.50.

TCS wins class action suit

Image result for tcs

 Tata Consultancy Services  has won a class action lawsuit claiming that it discriminated against American professionals in favour of staffing its US offices with Indian professionals.

 A federal jury in Oakland, California, sided with TCS against four former employees who claimed they’d been sidelined and fired because of their non- South Asian origin. Other Indian companies like Infosys, HCL Technologies and Wipro are facing similar lawsuits in US.

Liquidity Crisis : RBI eases norms NBFCs

Image result for nbfc

RBI, to help further ease liquidity condition for NBFCs has made changes to the holding period for securitised loan portfolios.

 Reserve Bank of India had said that the minimum holding period requirement for non-banking finance company originating loans, will now be set at six monthly or two quarterly installments. Earlier the holding period was 12 months.

The revised rules are applicable for loans of original maturity of above 5 years. This will help housing finance companies in particular who have longer maturity loans.

NBFC stocks will be active in today's trading.

Russia to cut production, crude may rally

 Russia has conceded that it needs to reduce oil production and join a new Saudi-led OPEC cut to balance the market.  

As of Brent crude is trading at $ 59.51 a bbl, up 1.26 percent and WTI crude $ 51.45, up 2 odd percent.

Thursday, November 29, 2018

Amazon set to overtake Apple in market cap

Image result for amazon

Apple is the most valued company in the universe. Apple has a market cap of $859 billions. The stock has corrected 25% from its high. Apple closed at $ 181 in Wednesday's trading, almost up 3%. Apple's revenues and net are likely to be muted in the coming quarters. This will put pressure stock and it will take quite some time to reach its recent 52 week of high.  Amazon closed at $ 1678 and its market cap stands at $ 820 billions. Amazon has multiple business verticals with excellent growth opportunities. The company is likely to report better margins in the next few quarters, which is likely to take the stock beyond $ 2000 level. 

Microsoft is another stock which is in the same horizon and trying to occupy number one slot. Microsoft closed at $ 111, up 4% in Wednesday's trading. Microsoft's market cap stands at $ 853 billions.

Wednesday, November 28, 2018

Rating down grade : Yes Bank tanks 11 percent

 Yes Bank stock tanked 11% in today's  trade and closed at Rs 162. Rating agency Moody's downgraded bank's rating and changed its outlook for the private lender from stable to negative.

Unilever may acquire prized Horlicks nutrition business

Image result for horlicks

According to sources, Unilever  has emerged as the leading bidder in a tight contest for GlaxoSmithKline's Indian Horlicks nutrition business.

The other bidder is fellow European consumer giant Nestle SA.