20 March 2017 Morning Brief

*20th March 2017 Morning Brief*

On a weekly basis (March 14-March 17), Nifty50 rose 2.52 % & Sensex rose 2.42 %.
It would be interesting to watch whether the market manages to keep up the momentum or let the rally fizzle out in the coming week. 
The Dow Jones Industrial Average fell 19.93 points, to end at 20,914.62, the S&P 500 lost 3.13 points, to 2,378.25 and the Nasdaq Composite added 0.24 point, to 5,901.00 after making record intraday high.
The Wall St. rallied higher on the expectation of tax reforms and spending splurge on infrastructure projects. But, it looks like the priority for Trump administration is to pass a Republican-proposed healthcare bill which spooked investors.

🎯 *Avenue Supermarts*, the parent company of supermarket chain D-Mart, will list on bourses -- both NSE and BSE tomo i. e. March 21. 

🎯 New IPOs coming this week -
# _Shankara Building_ Products, a retailer of home improvement and building material, will launch its initial public offering during the week to raise up to Rs 400 crore. The company has fixed the price band at Rs 440-460 per share. The issue opens on March 22 and closes on March 24. 

# _CL Educate_
Another firm coming up with its IPO this week is education services provider CL Educate. The company will launch its IPO on March 20. It has fixed the price band at Rs500-502 a share. At the upper end of the price band, the company will raise Rs 239 crore. The offer closes on March 22. 

🎯 *News & Impact* 🎯

🎯 EPFO may invest up to 15% in equity markets. 👍🏻

🎯 Last week, the GST Council capped the proposed cess on aerated drinks and luxury *automobiles* at 15 per cent and on *cigarettes* at 290 %. It also approved the State GST and Union Territory GST laws. 

🎯 *IT stocks*: 
Major IT stocks will be on investor radar on Monday after reports that Cognizant may cut at least 6,000 jobs, which represents 2.3% of its total workforce, as it struggles with growth in an IT environment that is fast shifting towards new digital services. The layoffs are likely to be more this year than the routine annual exercise.

🎯 *Aviation stocks*: 
Domestic air traffic rose 15.7 per cent in February, ending thirteen months of 20 per cent plus growth. Domestic airlines flew 8.6 million people last month compared to 7.4 million in February 2016, a leap year. Analysts said demand remained intact and slower growth last month was not a cause of concern. 👍🏻

🎯 *Adani Group* stocks: 
The Adani Group plans to begin extracting coal from the $16.5-billion Carmichael project in Australia in 2020 after environmental protests had delayed the first phase of the mine. The company will begin work on the project three months after it gets final approval from Australia’s federal government, Gautam Adani, chairman of the group, said on Friday. 

🎯 *Infosys*
The IT giant has decided not to apply for H-1B visas for junior employees, three sources with knowledge of the matter told ET, as the IT company comes to terms with the prospect of a tougher regulations governing the work visas. Indian IT firms have long been dependent on the work visa, but a rising tide of protectionism means they are beginning to adjust their business models to reduce their reliance on the visa. 👎🏻

🎯 *HCL Technologies*, *Engineers India*, *Oil India* board meetings to consider a *buyback* proposal.

🎯 *Dena Bank*
Government to infuse ₹600 cr as part of turnaround linked infusion plan. 👍🏻
Board approval to raise capital on preferential basis being obtained.

🎯 *Kotak Mahindra Bank* seeks shareholder nod to hike FII investment to maximum 49 percent.

🎯 *Marico* to acquire 45 % equity stake in Zed Lifestyle.

🎯 *Maruti*
It is set to bid the current financial year adieu with a growth rate of about 11 per cent in domestic sales on the back of products like _Baleno_ and _Brezza_. 

🎯 *SBI*
The government is expected to give final approval to the merger of Bharatiya Mahila Bank with the country's largest lender SBI within three months. The Cabinet last month approved amalgamation of five associates of SBI with the parent but the merger of Bharatiya Mahila Bank (BMB) was not considered due to some issues, sources said. 

🎯 *Allahabad Bank* to raise ₹ 300 cr via Tier 1 perpetual bonds.

🎯 *Havells* India approves issue of commercial papers to Yes Bank worth ₹ 150 cr.

🎯 *IndusInd Bank* proposes to raise perpetual Basel III compliant bonds worth ₹ 1,000 cr.

🎯 *Grasim*: 
The stock of Grasim Ind. , with interests in businesses as diverse as cement and textiles, still has significant upside potential, as the share price reflects a steep holding company discount despite receding concerns over the dilution of value stemming from the likely merger of Idea cellular with Vodafone. With the minority shareholders of Grasim and Aditya Birla Nuvo (ABN) voting until April 5 on the proposed merger of the two companies. 👍🏻 Positive for the stocks.

🎯 *Ashok Leyland*: 
The commercial vehicle major is planning to set up a new facility in Jharkhand. This will be the first investment from a major automobile company in the state, which has identified the sector as one of the key drivers to make it one of the industrial hubs in the country. 👍🏻

🎯 *MTNL*: 
BSNL CMD Anupam Shrivastava said the merger of BSNL and MTNL will be "advantageous" for both the state-owned telecom firms but issues pertaining to debt and salary structure will need to be sorted out first. A parliamentary panel report has pointed out that the telecom department is planning to place the merger proposal before the cabinet by June.👍🏻

🎯 *Smartlink Network*
Board approves application to categorise company as NBFC due to transfer of business. Approves acquisition of ₹ 1 cr shares issued by Digisol Systems.

🎯 *HSIL*
Rajasthan Pollution Control Board ordered shutdown of Kaharani unit in Rajasthan on March 14. 👎🏻 Kaharani unit manufactures faucets.
Closure of Kaharani unit will not impact sales currently.
Initiated legal recourse against Rajasthan Pollution Control Board.

🎯 *Aditya Birla* Fashion's Forever 21 opens first store in West Bengal at Siliguri.

🎯 *Marathon Nextgen* board approves buyback worth ₹ 149.5 cr at ₹ 275 per share.

🎯 *Future Lifestyle* incorporates unit FLFL Lifestyle Brands.

🎯 *Future Consumer* allots non-convertible debentures (NCDs) worth ₹ 50 cr via private placement.

Edited by Sharp.