23 November 2015 Equity Research Report Ways2Capital

INDORE, India - Nov. 23, 2015 - PRLog -- (Press Release) – – NSE - WEEKLY NEWS LETTERS
TOP NEWS OF THE WEEK
1. October WPI seen at -3.82%; core inflation at -1.87% - The wholesale price index for the month of October is expected to decline 3.8 percent this month, compared to a decline of negative 4.4 percent on a month-on-month basis. The contraction is expected to come down on a MoM. The core inflation number is also expected to contract, but will remain in the negative zone. It is expected a decline of around 1.87 percent versus 1.93 percent. The build-up in inflation rate so far this year has been around 0.28 percent and compare this to 2.61 percent on a year on year basis. The decline is 3.5 percent to a decline of 4 percent. As per the estimates, lesser contraction is expected in all numbers in comparison to the previous month. They will still be in negative zone, but the contraction will be lesser. The quarter-on-quarter pick-up or the MoM pick-up is likely to be led by fuel as well as food inflation. Pulses rose over 40 percent, which is possibly is going to weigh to some effect on the WPI data as well.

2. State-owned compnies like IRFC, Hudco and NHAI to offer tax-free bonds of Rs 18,000 crore - Yield-hungry investors will have reason to celebrate even after Diwali. Three state-owned companies will offer tax-free bonds of as much as Rs 18,000 crore collectively in the next two to four weeks, giving crestfallen retail investors an opportunity to earn attractive returns over a long period. Indian Railways Finance Corporation, Housing & Urban Development Corporation and National Highways Authority of India will sell tax-free bonds that are at least five times larger than recent issuances, three market sources told ET. Individuals who could not subscribe to such bonds offered by NTPC, Power Finance Corporation and Rural Electrification Corporationin the past two months are now expected to rush for the fresh series. NTPC, PFC and REC sold bonds worth Rs 700 crore each, which were oversubscribed multiple times. IRFC will sell tax-free bonds worth Rs 4,532 crore at expected retail interest rates of about 7.30-7.48-7.45 per cent across 10-15-20-year maturities, dealers said. The rates will not be in sharp contrast to what were offered before the latest Reserve Bank of India interest rate cut, although they would be a tad higher than the REC issue two weeks ago.
3. India Inc mops up Rs 3lk cr in H1 FY16, prefers debt route - Indian companies have garnered close to Rs 3 lakh crore from the markets in the first half of the ongoing fiscal with debt market emerging as the most preferred route for their corporate needs. An analysis of funds raised through various channels showed that companies have mopped up fresh capital totalling Rs 2,90,470 crore through equity and debt in the first half of the current fiscal. A large chunk of this, more than Rs 2.44 lakh crore came from the debt market, while Rs 46,197 crore were mobilised through equity. The funds were raised for business expansion plans to support working capital requirements and retire debt. In the equity segment, money was raised through the preferential route followed by qualified institutional placements, rights issue and initial public offers. Whereas in the debt market, the companies bagged over Rs 2.43 lakh crore through debt placement, while public issuance of debt securities accounted for just Rs 1,553 crore.
4. LIC's Rs 45,000 crore purchase exceeds 2014 infusion, accumulates tech and banking shares - Life Insurance Corp, the country's largest domestic institutional investor, has purchased shares worth over Rs 45,000 crore in the stock market so far in this financial year, exceeding last year's total. Taking advantage of volatile market conditions, LIC bought stocks of firms such as Tata Consultancy Services, Wipro and Axis Bank. LIC has simultaneously cut holdings in state-run companies, including Coal India and State Bank of India. Last year, LIC's gross investments were Rs45,000 crore, compared with Rs 53,373 crore in the previous year and Rs 33,205 crore in 2012-13. "This year, we have invested around Rs 45,000 crore in the equity market," said a senior LIC executive who did not want to be identified. "We have been buying equities since the beginning of this fiscal as valuations have tumbled for some sectors." The insurer has been playing a contrarian theme, as it often does, and accumulated technology and banking company shares when they were being shunned by other investors over the past few months. LIC increased its stake in TCS to 2.44 per cent from 2.26 per cent in March, Wipro to 1.88 per cent from 1.64 per cent and Axis Bank to 14.14 per cent from 12.49 per cent in March. It cut holdings in SBI to 11.27 per cent from 11.82 per cent in March.


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