Nifty, Sensex May Head Higher – Weekly closing report
We had mentioned in last week’s closing report that Nifty, Sensex may move in a narrow range. The major indices suffered a correction this week. The trends of the major indices in the course of the week’s trading was:
 
 
On Monday, the major indices ended with minor gains. On the NSE, there were 963 advances, 835 declines and 328 unchanged. Indicating a softer approach on rate cuts in the wake of economic slowdown, RBI Governor Shaktikanta Das on Monday said growth is the top priority at a time when the Indian banking system is facing many challenges. NACL Industries total income for the quarter ended June 2019 was Rs198.29 crore compared to Rs222.46 crore in the corresponding quarter of the previous year showing a decrease of 11%. Earnings before Interest, Depreciation and Tax (EBIDT) and Profit before Tax (PBT) for the Quarter are Rs13.88 crore and Rs1.43 crore respectively.
 
Sun Pharmaceutical Industries announced that one of its wholly owned subsidiaries has granted an exclusive license to a subsidiary of China Medical System Holdings Ltd. (CMS) to develop and commercialize seven generic products in Mainland China.
 
Coffee Day Enterprises announced that on receipt of consideration from sale of Global Village Tech Park, the debt position of Coffee Day Group will reduce around by Rs2,400 crore. The debt position of Coffee Day Group (excluding Sica! and Magnasoft) post repayment of debt out of proceeds from sale of Global Village is expected to be around Rs1,000 crore in the next 45 days. The Company expected to have a comfortable position to service the reduced debt obligations.
 
On Tuesday, the major indices were range bound and ended with small losses. On the NSE, there were 645 advances, 1,129 declines and 339 unchanged. Private lender Yes Bank fell nearly 7% following revelations of corporate fraud at CG Power and Industrial Solutions. Hit by major corporate governance issues involving unauthorised transactions and understatement of liabilities, Gautam Thapar-led CG Power and Industrial Solutions'' shares plunged 20% on the BSE. The company's Risk and Audit Committee (RAC) revealed that the firm and the group together could have under-reported liabilities to the extent of over Rs3,600 crore in FY17 and FY18. The corporate fraud, which went unnoticed for almost three years, has raised questions over regulatory oversight.
 
INEOS Styrolution India promoter, INEOS Styrolution APAC Pte, Ltd, (Promoter), expressed their intention to acquire approximately 25% of the paid-up equity shares presently held by the public and consequently voluntarily delist the equity shares from the stock exchanges.
 
Opto Circuits India posted net profit of Rs10.79 crores for the quarter ended June 2019 (Rs12.95 crores in Q1 FY19) down 17% year-on-year. Total income declined 30% y-o-y to Rs50.70 crores (Rs71.95 crores in Q1 FY19).
 
On Wednesday, the major indices suffered a correction. On the NSE, there were 441 advances, 1,341 declines and 331 unchanged. Popular Indian biscuit maker Parle Products may cut up to 10,000 jobs owing to the prevailing macro-economic situation, according to a company executive. According to reports, Mayank Shah, category head at Parle Products, has said that if there is no tax relief in the form of a GST rate cut, the company may have to lay off 8,000 to 10,000 people. A meeting of the Capital Raising Committee (CRC) of whole time Directors of Bank of Baroda is scheduled to be held on 26.08.2019 to consider raising of capital for the Bank through issuance of Basel III Compliant Tier II bonds / Additional Tier 1 Bonds.
 
State-run power generator NTPC's Kaniha unit in Angul district of Odisha is facing coal shortage due to a strike by villagers at the Kaniha Open Cast Project (KOCP). The coal supply to the Kaniha unit from KOCP has stopped since August 18 due to a strike by villagers at the mines end, an NTPC statement said on Tuesday. Zydus Cadila has received the final approval from the USFDA to market Ranolazine Extended Release Tablets (US RLD - Ranexa®), 500 mg and 1.000 mg. The drug is used to treat chronic angina and may be used with other medicines that are used for heart problems and blood pressure control. It will be manufactured at the group's formulations manufacturing facility at Baddi.
 
On Thursday, the major indices suffered a huge decline today. On the NSE, there were 368 advances, 1,433 declines and 302 unchanged. The Sensex and Nifty came under heavy selling pressure over fading hopes of a stimulus to revive economic growth. Chief Economic Advisor (CEA) K. Subramanian at a summit in New Delhi said the Indian economy does not need a fiscal stimulus to tackle the ongoing economic slowdown. "We can't expect the government to intervene every time some sectors go through sunset. Not all sectors are doing bad, some are doing well," the CEA said.
 
Gillette India Limited (GIL) today announced its financial results for the fiscal ended June 30, 2019. The company delivered sales of Rs1,862 crores, up 11% vs. year ago behind strong brand fundamentals. Profit after tax stood at Rs253 crores up 10% vs. year ago. For the quarter ended June 30, 2019, the sales were Rs464 crores up 13% vs. year ago. The board has declared a final dividend of Rs25/- per equity share.
 
Procter & Gamble Hygiene and Health Care Ltd. (PGHHCL) announced its financial results for the fiscal ended June 30, 2019. The company delivered sales of Rs2,947 crores, up 20% vs. year ago behind strong brand fundamentals and strength of the product portfolio. Profit after taxes stood at Rs419 crores, up 12% vs. a year ago. For the quarter ended June 30, 2019, the sales were Rs637 crores up 21% vs. a year ago. The board has declared a final dividend of Rs48 per equity share.
 
On Friday, the major indices opened low but rallied and closed with gains over Thursday’s close. On the NSE, there were 1,019 advances, 768 declines and 329 unchanged. Automobile major Maruti Suzuki India will commence a proactive and voluntary recall campaign for certain WagonR vehicles manufactured between 15 November 2018 and 12 August 2019. Accordingly, the company will inspect 40,618 WagonR vehicles (1 litre) for a possible issue of "fuel hose fouling with metal clamp".
 
The Enforcement Directorate (ED) carried out searches at over a dozen locations in Delhi and Mumbai, including at the residence of Jet Airways founder Naresh Goyal. A senior ED official told IANS that “searches are on at over a dozen locations in Delhi and Mumbai.” He said the residence of Jet Airways founder Goyal is also bring searched. The ED official said the searches are being conducted under the provisions of the Foreign Exchange Management Act (FEMA), and are aimed at gathering additional evidence of the alleged irregularities committed by the grounded airline, including diversion of funds.
 
ICRA Limited, a credit rating agency registered with the SEBI, has reaffirmed ICRA AA+/ Stable long term rating and ICRA A1+ short term rating for Rs122 Crore facilities availed from banks and issuance of Commercial Papers by Endurance Technologies. NHPC has signed an Agreement with Government of Assam on 23 August 2019 for the execution of Subansiri Lower HE Project (2000 MW) on river Subansiri in the State of Arunachal Pradesh and Assam.
 
NCL Industries has signed an agreement to establish a Joint Venture Company with Qingdao Xinguangzheng Steel Structure Company, China for manufacture of Pre-engineered Steel Structures in India. The Board has approved the proposal to incorporate a Joint Venture Company pursuant to the Agreement. In terms of the agreement, NCL and the Chinese Partner will hold 70% and 30% respectively of the equity of the Joint Venture Company. The estimated project cost for the venture is around Rs35 Crores and the equity investment of NCL in the Joint Venture will be in the range of Rs7.70 crores.
 
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    Weekly Moneylife Indices & Sector Trends
    INDIAN MARKET TRENDS
    For the period from 16 August 2019 to 22 August 2019, the Sensex fell 2%. The NIFTY and ML Mega-cap Index fell 3% each. ML Large-cap Index fell 4%. ML Mid-cap Index fell 6% while both, ML Micro-cap Index and ML Small-cap Index, fell 7%.
     
     
     
    FUND FLOWS
    Foreigners: Foreign institutional investors were net sellers of equities during the...
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  • If Businessmen and Investors Are Waiting for a Stimulus Package, It Shows How Clueless They Are about the Modi Regime
    The Indian stock market has been on a relentless slide since the euphoric high it made after Narendra Modi managed to lead the Bharatiya Janata Party (BJP) to power with a huge majority once again in May 2019. From over 40,200 it hit in early June, the Sensex was at 36,500 at the time of writing this article. Everybody knows the reason. The hopes of turbo-charged reforms, which we were...
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