Friday, November 30, 2018

Stock Watch : Buy Sun Pharma, target Rs 610

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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

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 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

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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

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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

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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.

TCS over takes RIL in market cap

TCS has over taken RIL in market cap. The stock gained 5% in today's trade and closed at Rs 1985. TCS was the top gainer in today's trade, among Nifty stocks. The market cap stands at Rs 7.44 lac Cr as against RIL's Rs 7.30 lac Cr. RIL gained 2 odd percent and closed at Rs 1154.

Dr Reddy's launches Chlorthalidone tablets in U S

Dr. Reddy’s Laboratories has launched Chlorthalidone Tablets USP, 25 mg and 50 mg, a therapeutic equivalent generic version of Hygroton Tablets, approved by the U.S. Food and Drug Administration.

TCS acquires BridgePoint Group

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TCS has acquired BridgePoint Group, a US management consulting firm catering to the financial services industry, and specializing in retirement services, through the purchase of select company assets.

This acquisition augments TCS’ financial services and insurance domain knowledge, particularly in the area of US retirement services, where BridgePoint’s team of experts currently provide strategic insights and advisory services around growth, business agility, customer experience and technical transformation.

TCS shares closed at Rs 1985, up 5% in today's trade.

Tuesday, November 27, 2018

IPO News : Goldman Sachs, Citigroup, JP Morgan to manage Bharti Airtel's Africa offerings

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Bharti Airtel's Africa business arm has announced the appointment of eight global banks including J P Morgan, Citigroup and Goldman Sachs to work on its initial public offer plan.

 The other banks are - BofA Merrill Lynch, Absa Group Limited, Barclays Bank PLC, BNP Paribas and Standard Bank Group.

Sebi clears 3 IPOs

Sebi has given the final nod to 3 IPOs - Inventia Healthcare, Metropolis Healthcare and Xelpmoc Design and Tech.

PSU banks to get capital infusion

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Center will infuse Rs 42,000 crore in the state-owned banks by March-end and the next tranche would be released as early as next month.

Center had infused Rs 11,336 Cr to five PSBs earlier this year.

IPO ANALYSIS : Diksha Greens Limited - Avoid

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Issue Details :

Issue opens  / closes on
26-11 / 28-11-2018
Issue size
44,40,000 equity shares
Face Value
Rs 10
Rs 30
Trading in wooden logs, Saw mill and mfrs of veneer products
Rajesh Pirogiwal
Bse, sme
Finshore Management Services
Cameo Corp Services

Remarks :

  1. Disputed / pending income tax liability.
  2. Discrepancies in filing documents with ROC.
  3. IPO shares offered at 30 PE.

Avoid the IPO.