Cash-flow is the most vital element in financial analysis which we miss most often. The majority of stock research reports I see seem to be very focused on future earnings and the balance-sheet. More on earnings, I should say. They discuss earnings growth, ratios such as PEG (price/earnings-to-growth) ratio, peer P/E (price-to-earnings) comparison, etc.  

 

The noise in the markets...

We had mentioned in Monday’s closing report that Nifty, Sensex were moving sideways. The major indices slipped and closed with major losses. On the NSE, there were 512 advances, 1,279 declines and 353 unchanged. The trends of the major indices in the course of Tuesday’s trading are given in the table below:

 

 

Selling in IT and media stocks led the benchmark Sensex to lose 60 points during the early trade on Tuesday after it managed to open in the green.

 

Stock price of Yes Bank fell as much as 5% ahead of the crucial board meet to take call on the investment offers that the bank has received. Investors pushed the sell button over reports that the bank may decline to accept the $1.2 billion investments offer by the controversial Canada based Erwin Singh Braich. 

 

Domestic automobile sales continued to decline in November with the overall sectoral off-take plunging 12.05% on a year-on-year basis. Segment wise, the off-take of passenger vehicle sales during the month under review slipped by 0.84% to 263,773 units this November on a year-on-year basis.

 

Net inflows into equity mutual funds dipped sharply to multi-year lows in November as on one hand, outflows from credit risk funds continued, while inflows into equity funds fell as much as 85%.

 

Tariff hikes can double EBITDA of telcos and sustainability of hikes and funding of adjusted gross revenue (AGR)-related dues are the key monitorables, said rating agency Crisil. The steep tariff hikes of up to 50% is being implemented by telecommunication companies. Telcos have the potential to double the industry's EBITDA next fiscal. This is a structural positive for an industry weighed down by weak cash flows and mounting debt, says Crisil.

 

NSE has launched interest rate options on 10-year government bonds to provide institutional investors ability to manage risk.

 

ProConnect, a wholly owned subsidiary of Redington India, has acquired remaining 12% stake in Rajprotim Supply Chain Solutions. The 12% stake was acquired for a consideration of Rs.11 Crores. With this acquisition, the total holding of ProConnect in RCS is increased from 88% to 100%.

 

CRISIL Limited has downgraded PC Jewellers long term and short terms ratings to the bank loan facilities to CRISIL D i.e. default grade. 

 

The Tata Motors Group global wholesales in November 2019, including Jaguar Land Rover, were at 89,671, lower by 15%, as compared to November 2018.

 

Global wholesales of all Tata Motors' commercial vehicles and Tata Daewoo range in November 2019 were at 31 ,030, lower by 19%, over November 2018. Global wholesales of all passenger vehicles in November 2019 were at 58,641, lower by 12% as compared to November 2018. Global wholesales for Jaguar Land Rover were 48,105 vehicles. 

 

Jagran Prakashan has announced a buyback of the for an aggregate amount not exceeding Rs101.25l akhs at a price not exceeding Rs75.

 

The top gainers and top losers of the major indices are given in the table below:

 

 

The closing values of the major Asian indices are given in the table below:

 

 

We had mentioned in Saturday’s closing report that Nifty, Sensex may continue to be under pressure. The major indices closed with minor gains. On the NSE, there were 726 advances, 1,065 declines and 366 unchanged. The trends of the major indices in the course of Monday’s trading are given in the table below:

 

 

Global rating agency Moody's said pressure on Indian finance companies continues to build up, with some banks heavily exposed to non-bank credit providers, hinting that India's NBFC crisis is far from over, even after a year since the troubles began when a major shadow bank IL&FS group abruptly defaulted. 

 

Vodafone Idea closed 6% lower on the BSE as investors reacted to the company's Chairman Kumar Mangalam Birla's statement that VIL will shut its business in the absence of a relief with regards to the adjusted gross revenue-based dues. Earlier in the day, VIL fell as much as 12%. What further troubled the Vodafone Idea investors was Birla's comment that there will be no further capital infusion into the venture by either the Aditya Birla Group or Vodafone. 

 

Axis Bank has reappointed S. Vishvanathan as an independent director for his second term from 11th February 2020 up to 10th February 2023 i.e. up to expiry of his tenure of eight years.

 

PSP Projects has received a major work order for civil construction of Nestle India Plant at Sanand, Gujarat worth Rs99.72 crores (excluding GST). With receipt of above, the total work orders received during the financial year 2019-20 (till date) on standalone basis amounts to Rs.1,152.95 crores (excluding GST).

 

JSW Steel reports crude steel production at 12.90 lakh tonnes for November 2019. Crude steel production was at 12.90 lakh tonnes in November 2019 as against 13.90 lakh tonnes in November 2018, a drop of 7% YoY.

 

BHEL signed an MoU with CSIR for commercialisation and implementation of indigenously developed technologies by CSIR. The first project to be taken up will be commercialisation of various water purification/sewage disposal related technologies.

 

SPML Infra has received new project orders worth Rs218.18 Crores. The two orders are for wastewater treatment projects in Uttar Pradesh and Haryana from Uttar Pradesh Jal Nigam, Varanasi and Haryana State Industrial and Infrastructure Development Corporation Ltd., Bahadurgarh.

 

Welspun Corp has been awarded contracts for supply of 179 KMT of pipes for multiple projects on a global basis. Out of the above orders, 161 KMT will be serviced from its USA facility. Accordingly, the company's order book stands at 1,459 KMT valued at approximately Rs.12,100 crore, after considering execution up to November 2019.

 

The top gainers and top losers of the major indices are given in the table below:

 

 

The closing values of the major Asian indices are given in the table below: