Highlights: • Agri markets traded with high volatility but failed to take any clear direction as of now. • Good monsoon reports limited the upside while rising export and domestic demand amidst falling arrivals supported the prices at these lower levels after the recent fall. • All eyes are on IMD for further forecasts of sectoral distribution of rains. Any deficiencies in the North-West / Central regions of India could prove bullish for the markets. Also, as the rains reach the Andaman, any declarations by the IMD of Monsoon finally arriving could lead to start of the Monsoon session in the Indian sub-continent. Further price movements will be determined by its progress throughout the rest of India in coming weeks. • Reports of raising MSP (minimum support price) for crops too could lens some support to the prices in the short term.
Monday, 28 May 2018
Zydus Cadila gets USFDA approval to market Nystatin ointment
Zydus Cadila receives final approval to market Nystatin ointment and Omeprazoleand Sodium Bicarbonate capsule, from the US health regulator.
The company received approval to market Nystatin Ointment USP, 1,00,000 units per gram. Nystatin ointment is used to treat fungal infections. It has also received approval to market Omeprazoleand Sodium Bicarbonate Capsules, 20 mg/1100 mg and 40 mg/1100 mg, which is used to treat certain stomach and esophagus problems (such as acid reflux, ulcers).
Further, the drug will be manufactured at the group’s Topical manufacturing facility at Moraiya, Ahemdabad.
Bafna Pharma receives renewal certificate from UK MHRA
Bafna Pharmaceuticals has received renewal certificate, from UK Medicines and Healthcare products Regulatory Agency (MHRA).
The company’s facility, following the audit conducted has got renewal approval as per the guidelines of European Good Manufacturing Practices (EUGMP). Further, the board of directors of the company are scheduled to meet on May 28 to consider the unaudited financial results, for the quarter and the year ended March 31, 2018.
Torrent Pharma issues commercial papers worth Rs.300 crore
Torrent Pharmaceuticals has issued commercial papers worth Rs.300 crore, on May 25,2018.
The board of directors of the company are scheduled to meet on May 30,2018, to consider and approve the audited financial results for the year ended March 31,2018. Further, it will also consider the recommendation of final dividend for the year ended March 31, 2018.
IFFCO, IPL acquires 37% stake in JPMC
IFFCO and Indian Potash Ltd (IPL) have jointly bought 37% stake in Jordan Phosphate Mines Company (JPMC), which is Jordan’s largest mining and chemical firm, for approx Rs.900 crore.
The shares have been purchased from Kamil Holdings, owned by Brunei Investment Agency. IFFCO Managing Director U S Awasthi stated that, IPL has bought about 27%, while IFFCO through its subsidiary Kisan International Trading (KIT) has purchased around 10% in JPMC.
Furthermore, IFFCO already has a joint venture with JPMC in Jordan India Fertilizer Company (JIFCO), in which it has 52% stake, while JPMC holds 48% equity in it.
NTPC Q4 net profit rises 40% at Rs.2,926 crore
NTPC has reported a 40.7% rise in its net profit, for the quarter ended March 31,2018 at Rs.2,926 crore, as against Rs.2,079.4 crore reported in a year ago period.
Revenue of the company rose 13% at Rs.23,100 crore, as against Rs.20,417 crore. EBITDA or the operating profit was up 8.2% at Rs.5,910 crore and margin was at 25.6%. Furthermore,the company’s board has recommended a final dividend of Rs.2.39 per equity share for the financial year 2017-18.
L&T reports 4.7% YoY rise in Q4 profit at Rs.3,167 crore
L&T has reported a 4.69% rise in net profit at Rs.3,167 crore, for the quarter ended March 31,2018.
The company in the corresponding period last year, had reported a profit of Rs.3,025 crore. Consolidated gross revenue for the quarter rose 10% YoY to Rs.40,678 crore. During the quarter under review, the company won fresh orders worth Rs.49,557 crore.
Consolidated order book of the group stood at Rs.2,63,107 crore as of March end, with international order book constituting 24% of the total orders.
UTI MF launches UTI Power of Three
UTI Mutual Fund has launched UTI Power of Three. It is an exercise where an investor can choose to invest a lumpsum or through a SIP in more than one scheme, using a single application form.
The three funds which the UTI Power of Three is focusing are: UTI Mastershare Fund which is an open-ended equity scheme, majorly investing in largecap stocks. UTI Equity Fund is an open-ended equity scheme investing across largecap, midcap and smallcap stocks. UTI Value Opportunities Fund is an open-ended equity scheme following a value investment strategy.
Furthermore, UTI Power of Three is an exercise where the motive is on building one’s core equity portfolio, employing 3 distinct investment styles.
Technical Analysis Of Commodity Market
Technical Analysis Of Commodity Market
Last updated on: May 28, 2018 12:00 AM
Bullions And Its Main Components
| Market Name | Daily Trend | Weekly Trend | Monthly Trend |
| Gold | Buy | Buy | Buy |
| silver | Buy | Buy | Sell |
Base Metals And Its Main Components
| Market Name | Daily Trend | Weekly Trend | Monthly Trend |
| Copper | Sell | Buy | Buy |
| Zinc | Sell | Sell | Buy |
| Lead | Sell | Buy | Buy |
| Nickel | Buy | Buy | Buy |
| Aluminium | Sell | Sell | Buy |
Energy And Its Main Components
| Market Name | Daily Trend | Weekly Trend | Monthly Trend |
| Crude Oil | Sell | Buy | Buy |
| Natural Gas | Buy | Buy | Sell |
BMW unveils updated MINI versions in India
BMW has today launched updated versions of MINI Hatch and MINI Convertible in India, with price ranging between Rs.29.7 lakh and Rs.37.10 lakh (ex-showroom Delhi).
The diesel variant MINI-3 door Cooper D is priced at Rs.29.7 lakh, while the petrol version is price at Rs.33.2 lakh. The diesel-powered MINI-5 door Cooper D is priced at Rs.35 lakh and the MINI Convertible Cooper S is priced at Rs.37.10 lakh. These models will be available at all MINI dealerships as completely built-up (CBU) units, from June onwards.
GAIL posts fourfold rise in Q4 profit at Rs.1,021 crore
GAIL has posted approx fourfold rise in net profit at Rs.1,021 crore, for the quarter ended March 31,2018.
The company in the same quarter last year, had reported a profit of Rs.260 crore. Sales of the company for the quarter under review rose 12.84% to Rs.15,430.69 crore, from Rs.13,674.09 crore in the year ago quarter.
Further, the company’s earnings before interest, tax, depreciation and amortization came in at Rs.1,695 crore and margins for the quarter came in at 11%.
NCC Q4 profit rises 61% to Rs.103 crore
NCC’s net profit during the quarter rose by 61.2% to Rs.102.7 crore, as against a profit of Rs.63.7 crore in the corresponding period last fiscal year.
Revenue from operations increased 11.9% YoY to Rs.2,395 crore for the quarter ended March 2018. EBITDA went up 74.8% to Rs.304.4 crore and margin expanded 460 basis points to 12.7%, compared to year ago period.
Further, the company during the year on standalone basis, secured order of Rs.23,226 crore and the order book of company stood at Rs.30,026 crore as of March 2018, which is 95% more than the previous year.
UBL Q4 net profit rises over 13-fold to Rs.90.88 crore
United Breweries Ltd (UBL) has posted over 13-fold rise in its standalone net profit at Rs.90.88 crore, for the quarter ended March 31,2018.
The company in the year-ago period had posted a net-profit of Rs.6.73 crore. Its total income during the March quarter was up 27.84% to Rs.3,275.38 crore, while in the same quarter last fiscal its total income was at Rs.2,562.03 crore.
Net revenue grew 32% and its total expenses during the quarter came in at Rs.3,138.56 crore, as against Rs.2,554.41 crore during the year ago period.
PNC Infratech secures a project worth Rs.1,738 crore
PNC Infratech has secured a project worth Rs.1,738 crore.
The company has emerged as the lowest bidder for the 42.7 km long 4th package of Lucknow-Ghazipur six lane access controlled Purvanchal expressway project, from Siddhi Ganeshpur to Sansarpur (District Sultanpur) in Uttar Pradesh, on EPC basis for a value of Rs.1,738.44 crore. The construction period for the project is 30 months.
Furthermore, the company has reported a net profit of Rs.111.52 crore, during the quarter ended March 31,2018 and its board of directors has approved a final dividend of 25% per equity share of face value of Rs.2 each, for the financial year ended March 31, 2018.
L&T Construction secures Rs.3,191 crore order for Dhaka Metro
L&T Construction has secured Rs.3,191 crore order from Dhaka Mass Transit Company.
The company has secured the order in joint venture with Marubeni Corporation (Japan), via an international competitive bidding process and the order bagged is for constitutions of a railway line for Dhaka Metro.
In a BSE filing the company stated, “The railways strategic business group of L&T Construction’s transportation infrastructure business has won a major design and build order from the Dhaka Mass Transit Company (DMTC) worth Rs.3,191 crore for electrical and mechanical systems package of Dhaka Mass Rapid Transit Development Project (MRT – line 6).”
Gayatri Projects receives LoA for project worth Rs.425 crore
Gayatri Projects has received letter of award (LoA), from the Ministry of Road Transport and Highways.
The LoA is for part construction of six lane elevated corridor, of NH-163 to de-congest the urban limits of Hyderabad-Bhopalpatnam Section, on EPC basis in Telangana and it is in joint venture with OJSC ‘SIBMOST’.
Further, the board of directors of the company is scheduled to meet on May 30,2018, to consider and approve the audited financial results for the quarter and year ended March 31, 2018.
Cox & Kings subsidiary receives NBFC license from RBI
Cox & Kings subsidiary has received non-banking finance company (NBFC) license, from the Reserve Bank of India (RBI).
The company stated, “Reserve Bank of India (RBI) has granted a non-banking finance company (NBFC) Licence to Cox & Kings Financial Service Limited, a wholly owned Subsidiary of the company.”
Cox & Kings Financial Service Limited plans to carry on the business of holiday financing, student loan financing and other non-banking financial service activities and a foreign exchange business.
Cadila gets USFDA approval to market drug for prostate condition
Zydus Cadila has received final approval from the US health regulator to market Dutasteride and Tamsulosin Hydrochloride capsules.
It is used to treat symptoms of Benign Prostatic Hyperplasia (BPH)-also called prostate gland enlargement. The approval has been granted for the strengths of 0.5 mg/0.4 mg and the drug will be manufactured at the group’s formulations manufacturing facility at Moraiya, Ahemdabad.
Further, the group has more than 190 approvals and has so far filed above 320 abbreviated new drug applications (ANDAs), since it started filing in 2003-04.
Lupin’s biosimilar Etanercept accepted for review, by EMA
Lupin’s marketing authorization application (MAA) for biosimilar Etanercept has been accepted for review by Europe drug regulator, European Medicines Agency (EMA).
MAA means an application submitted by a drug manufacturer seeking permission, from the regulator to sell the drug. Etanercept is suggested for treating Rheumatoid Arthritis (RA), Psoriatic Arthritis, Ankylosing Spondylitis, Axial spondyloarthritis, Non-radiographic axial spondyloarthritis and Plaque Psoriasis.
Furthermore, Lupin’s MD Nilesh Gupta stated, “The application for our Etanercept biosimilar and its acceptance in Europe is a significant milestone for our foray into biosimilars in key developed markets. This is also an encouraging development as we continue building our pipeline of higher complexity products.”
Sunday, 27 May 2018
COMMODITY FUTURES
COMMODITY FUTURES
| COMMODITY | LAST | CHANGE | % CHANGE | EXP DATE | TIME | 2-DAY TREND |
|---|---|---|---|---|---|---|
| NYMEX Crude Oil » | 67.50 USD |
-3.21
| -4.76% | Jun 18 | 4:59PM EDT | |
| ICE Brent Crude » | 76.44 USD |
+0.00
| 0.00% | May 18 | 5:59PM EDT | |
| NYMEX RBOB Gasoline » | 2.17 USD |
-0.06
| -2.93% | May 18 | 4:59PM EDT | |
| Dubai Crude Spot » | 73.85 USD |
+0.00
| 0.00% | Dec 02 | 5:38PM EDT | |
| ICE Gas Oil » | 679.75 USD |
+0.00
| 0.00% | Jun 18 | 7:00PM EDT | |
| NYMEX No2 Heating Oil » | 2.29 USD |
+0.01
| +0.30% | May 18 | 4:59PM EDT | |
| NYMEX Nat Gas » | 2.93 USD |
-0.01
| -0.38% | May 18 | 4:59PM EDT | |
| ICE NBP Nat Gas » | 55.17 GBP |
+0.00
| 0.00% | May 18 | 7:00PM EDT |
Saturday, 26 May 2018
MCX launches India's first silver options
India’s first options contract on silver futures was launched on Thursday on Multi Commodity Exchange of India (MCX).At the end of first trading session at 05:00pm the contract registered a total volume of 278 lots with value of Rs. 34.36 crore.
Options contracts expiring in the months of June‘ 18, August ‘18, November ‘18, February ‘19 and April ‘19 have been currently offered for trading with corresponding silver (30 kilograms) futures as underlying. Each option expiry has minimum twenty one strikes available which means ten each for ‘In the Money’ (ITM), ten ‘out of the money’ (OTM) and one ‘near-the-money’ with strike price intervals of Rs 250. The European-styled silver options with a tick size of Rs. 0.50 are physically settled, which means the exercised positions of the options contract post expiry shall devolve into the respective underlying future positions.
Silver, a metal of high intrinsic value, with characteristics such as strength, malleability, ductility, electrical and thermal conductivity, sensitivity, high reflectance of light, and reactivity makes it the metal of choice for industrial use, jewellery industry, and electrical applications among others. In FY17-18 the annualised volatility in silver was 14%, which is indicative of the quantum of risk the industry is exposed to annually. This contract will enable the silver stakeholders, including industrial consumers and producers harness the benefits of a new risk management tool.
India raises import duty on Wheat to 30%
India has raised import duty on Wheat to 30% from 20% earlier, according to a customs notice posted on the Central Board of Excise and Customs' website.
The moves comes on the back of a record domestic Wheat production forecast of 98.61 million tonnes for the 2017-18 marketing year, up 100,000 tonnes from the year before, in the government's latest estimate released May 16.
The world's second-largest Wheat producer had already raised the import duty to 20% from 10% in November 2017 on expectations of higher local output.
Sources said the primary reason for the latest hike was to support local farmers by stemming the import of cheaper Wheat.
Sowing for the current Wheat season began in October-November 2017. Government agencies began procurement at a minimum support price or MSP of Rupees 17,350 per tonne ($267/mt) in April, which was raised from Rupees 16,250/tonne last year.
That procurement has already exceeded the government's target of 32 million tonnes, according to local media reports.
How rising crude prices may affect these 10 oil-related stocks
Global crude oil prices inched upward to hit its highest level ($80 per barrel) since November 2014 on the back of geopolitical fears over potential supply disruption after US withdrew from the Iran nuclear deal as well as supply shocks in Venezuela, Mexico and Libya.
But why is crude so important for India? India is a net importer of crude oil and imports nearly 80 percent of its oil requirement. A meaningful rise in Brent prices will strain India’s fiscal/current account deficit, trigger inflation concerns for the Reserve Bank of India (RBI) and also dent hopes of a credit rating upgrade for India.
“India imports 3 million barrels per day (net) of crude oil, resulting in a sensitivity of $11 billion: 40 basis points impact on GDP for every $10/bbl move in oil,” Sumit Pokharna, Deputy Vice-President Research at Kotak Securities, said. He added that higher crude oil price will increase raw material cost, working capital requirements and operating cost for user industries such as lubricants, chemicals (including consumer staples) and paints.
Sectors which are likely to see increasing pressure thanks to a rise in crude oil prices are upstream oil companies. However, the same will be positive for export-oriented sectors such IT and pharma as rise in crude will put pressure on the currency as well. Bhupendra Tiwary of ICICI Securities see sectors like airlines, paints, tyres, plastics and select fast moving consumer goods (FMCG) companies which use crude and its derivatives as their input being impacted the most.
The impact of rising crude oil prices is clearly visible on the USD:INR. The rupee depreciated about 7 percent since January as CAD has increased.
VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said the twin deficit issue of fiscal and CAD could come back to haunt policymakers. “Every $10 rise in crude raises India’s inflation by 10 bps and negatively impacts GDP growth by 30 bps. If the high prices sustain, India’s trade deficit, current account and fiscal deficit will deteriorate.”
He sees no further room for passing on the rise in crude prices to consumers. “The government has gone on record that excise reduction will be considered only if crude goes beyond $75 a barrel. Therefore, some excise duty cuts are on the cards.”
Some excise duty cuts might be on the cards as we approach state as well as national elections in the next 12 months. But the flipside to the excise cut is that it will expand the fiscal deficit, experts fear.
Reacting to rise in global crude oil prices, retail prices back home have also surged to record highs. Petrol and diesel prices on Monday touched a record high of Rs 76.24 and Rs 67.57 per litre as state-run companies passed on the four weeks of relentless rise in international oil prices to consumers.
Here is a list of top 10 stocks from different experts which are likely to be impacted the most from a rise in crude oil prices:
Analyst: Arpit Chandna, Fundamental Analyst, Karvy Comtrade Ltd:
Rising crude oil price is an assertive risk for any country’s economy and its investors, as oil prices directly impact the real income and spending of all the sectors of the economy.
Gail India, the impact will be mixed to positive. For the paint sector which depended heavily on crude oil which forms part of the raw material cost will be negative. Asian Paints will be in focus as a rise in crude oil price will increase the input feed for the chemical.
Under aviation theme, Interglobe Aviation will be one stock which will be in focus. The rise in crude oil prices will be negative for the airliner as their fuel cost will increase. Remember, InterGlobe Aviation reported 73.30 percent YoY drop in profit at Rs 117.64 crore for March quarter.
ONGC: The exploration and production sector will have a positive impact of higher oil prices as it will be an opportunity for them to churn out the profits by pumping out more of crude oil. The rise in crude oil prices will have a positive impact on the stock.
Commodities Outlook: Metals under pressure as Rupee appreciates sharply; Crude Oil crashes
Precious Metals are trading largely unchanged on CME whereas domestic prices are down over half a percent each because of the sharp appreciation in the rupee. Gold is trading at 31269.0, down 200 points whereas Silver is losing 229 points to trade at 40653 currently.
Precious Metals rallied sharply in US trading as short covering pushed prices higher on news that President Trump has cancelled a summit with North Korea with CME Gold shooting above the psychological level of 1300.0. The weakness in US dollar index also contributed to the strength in precious metals.
The geopolitical concerns are back on the forefront with the uncertainty surrounding the US-North Korea situation, sanctions on Iran and the trade talks between the US and China which remain unresolved. On the data front, we have the Durable Goods report at 6.00 pm with analysts calling for stronger growth in durable goods whereas the core figures should come in weaker than March.
Gold is trading below support at 31300 and could extend losses to 31200-150 today whereas Silver is also expected to test 40400 if it sustains below 40600 today.
Base Metals extend losses as the rupee appreciates sharply
Base Metals, traded on LME are higher today whereas the stronger rupee has forced domestic prices to trade in losses. LME Lead is down nearly a percent at 2465.50 whereas domestic prices are down nearly two percent. Copper is trading at 466.30, down 0.595 currently.
The intraday bias is likely to remain mixed today. Nickel prices shot up sharply last evening as inventories continued to drop in both LME and SHFE warehouses creating a supply deficit whereas the demand from electric vehicles and stainless steel continue to lend broad-based support to prices.
Aluminium extended gains after Rusal CEO and board resigned in order to ease US sanctions along with requests to the Russian government to buy their output in a bid to save the company. Copper is likely to struggle further and make another attempt at testing support at 464 below which a short-term correction can be expected whereas, on the upside, 475 continues to act as a major resistance level.
Oil prices down nearly three percent; focus on rig count
Crude Oil futures, traded on NYMEX is down nearly two percent at 69.44 whereas domestic crude prices are at 4716.0, down 142 points or 2.92%. Natural Gas is up by about one-third of a percent at 2.92 currently.
Oil prices trended lower last evening and may extend losses today as OPEC indicated that it may be ready to ease cuts and supply the market for the loss of supply from Venezuela and Iran. Crude Oil is down 27 points to 4832.0 and could test support at 4800.0 in intraday.
The OPEC is due to meet in late June and reports indicate that the cartel along with Russia is open to increasing output to cool off prices which hits 4-year highs this week. The increase in inventories in the US also seemed to weigh on prices in intraday.
We maintain a bearish outlook on prices today and the oil rig count from the US should also pressure prices further. Natural Gas may extend its consolidation and may trade with a bearish bias today. Support levels for Crude come into play at 4650.0-4600.0 whereas, on the upside, 4750.0 should act as a resistance level.
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