Stylam Industries: Disclosure & Governance Issues Overshadow Growth
Stylam Industries makes laminates, exterior cladding, floorboards and solid surfaces. It exports nearly 70% of its production. In the past, Stylam has posted double-digit growth year-on-year (y-o-y), on the back of rising revenues and expanding margins. As a result, the stock has skyrocketed from just Rs20 in March 2013 to over Rs780 now; that’s nearly doubling your money every year for the...
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Nifty, Sensex Directionless – Tuesday closing report

We had mentioned in Monday’s closing report that Nifty, Sensex were under pressure. The major indices of the Indian stock markets were range-bound on Tuesday and closed with gains over Monday’s close. On the NSE, there were 786 advances, 966 declines and 334 unchanged. The trends of the major indices in the course of Tuesday’s trading are given in the table below:

 

 
Indian equity and the currency market opened on a flat note on Tuesday as investors feared a further rise in crude oil prices owing to concerns over exports from the war-torn Libya. The oil prices were already on the rise over US sanctions in Iran and Venezuela which has curtailed global crude oil supply. Moreover, the OPEC-led production cut also pushed up the prices. The benchmark, Brent Crude surged over the $71 a barrel mark.
 
Except the export oriented IT (information technology) stocks, all other sectoral stocks on the NSE witnessed selling pressure. At close, the Sensex was up 238.69 points at 38939.22, while Nifty was up 67.50 points at 11,672.
 
On Monday, Foreign Institutional Investors (FIIs) bought stocks worth Rs329.60 crore while the Domestic Institutional Investors (DIIs) sold stocks worth Rs623.81 crore.
 
State-run State Bank of India (SBI) said on Tuesday that it has put non-performing assets (NPAs or bad loans) worth Rs423.67 crore on auction to recover unpaid dues. The accounts -- Kamachi Industries owes Rs364.80 crore and SNS Starch has Rs58.87 crore due - to SBI, the bank said. SBI shares closed at Rs314.60, up 0.58% on the NSE.
 
Ericsson India Private Limited will have to refund the entire amount of Rs550 crore it got from Reliance Communications Limited (RCom) if the stay placed by the National Company Law Appellate Tribunal (NCLAT) on May 30 last year is vacated by it, a two-judge bench led by Chairperson Justice S J Mukhopadhaya observed. "Why should one party get it and why should banks suffer? Why should the Indian economy suffer," the two-judge Bench observed, adding that it would either quash RCom’s bankruptcy proceedings in NCLT or allow bankruptcy case to proceed as per law. 
 
The appellate tribunal is hearing a plea moved by RCom in which the Anil Ambani led company has urged for the insolvency proceedings against it to be started as it was unable to repay its lenders. During the hearing on Monday, the NCLAT has asked the parties to file an affidavit stating whether they had challenged the NCLAT’s stay order of May on RCom’s insolvency in the Supreme Court. Reliance Communications shares closed at Rs3.05, down 4.69% on the NSE.
Brokerage firm Edelweiss on Tuesday downgraded the Jet Airways stock from 'hold' to 'reduce' owing to the mounting risk on the financially troubled airline. The report said that Jet may eventually lose 50 planes to lessors which would cut its fleet size down to 73 in the financial year 2020-2021. The brokerage firm also cut Jet's target price(TP) by 22% to Rs177 and also the full service carrier's earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) forecast by 35% for the current fiscal, and by 49% for the financial year 2020-2021. "We continue to assume a swerve back to profit during FY21E and a fair EV/EBITDAR of 7x. But given mounting risk, we are cutting the TP by 22% to Rs177 and downgrading the stock from 'HOLD' to 'REDUCE'. Jet Airways India shares closed at Rs265.20, up 0.36% on the NSE.
 
The Punjab National Bank (PNB)'s 13% stake sale in PNB Housing Finance for Rs18.5 billion will strengthen the bank's capital, said Moody's on Monday. The report said that it estimates the sale will increase PNB's Common Equity Tier 1 (CET1) ratio by about 40 basis points from the 6.9% reported in December 2018. PNB shares closed at Rs94.25, up 1.24% on the NSE.
 
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:
 
 
 

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Nifty, Sensex under Pressure – Monday closing report

The major indices of the Indian stock markets were range-bound on Monday and closed with losses over Friday’s close. On the NSE, there were 739 advances, 1,026 declines and 335 unchanged. The trends of the major indices of the Indian stock markets in the course of the Monday’s trading are given in the table below:

 

 
The Sensex reversed early gains to fall over 340 points owing to sharp rise in crude oil prices. The benchmark crude oil, Brent crude futures surged above the $70 per barrel. Market participants also said that markets slid in response to the Bharatiya Janata Party's manifesto. Several welfare schemes were announced, which would have a huge cost and impact the country's fiscal deficit, they said. Besides, analysts said that broadly negative Asian markets and profit booking also impacted investor sentiments.
 
During the course of the week, both the benchmark indices made life-time highs but on different days. There was a correction post the high as well, makings the markets healthy. The Reserve Bank of India, in its first monetary policy review for 2019-2020, cut the repo rate by 0.25% to 6% on expected lines. It also cut reverse repo rates by 25 basis points to stand at 5.75%. Markets, after initially rallying, slipped and lost ground on the day that the rate cut happened. 
 
Both Infosys and TCS will declare their 4th quarter and annual results on Friday, the 12th of April. It would be interesting to see how the companies fare and more important, the comparison between the two would be done in a matter of few hours. The performance of these two IT (information technology) giants would set the tone for the quarterly results for the January-March 2019 period. 
 
Adani Power said it has received the Letter of Intent (LoI) to acquire the insolvent Korba West Power Company (KWPCL) after the latter's Committee of Creditors (CoC) approved Adani's resolution plan for KWPCL. Adani Power shares closed at Rs50.50, up 1.30% on the NSE.
 
IT (information technology) solutions firm NIIT Technologies Ltd. has signed an agreement to acquire Hyderabad-based WHISHWORKS IT Consulting. NIIT Technologies would initially acquire 53% stake in the company and the remaining equity over the next two years through pay-outs linked to financial performance. It will be an all-cash transaction, funded through internal accruals. Incorporated in 2010, WHISHWORKS has around 250 employees. NIIT Technologies shares closed at Rs1,301.75, down 3.43% on the NSE.
 
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:
 
 

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