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    The Baseline

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    The Baseline
    01 Dec 2017
    Top Losers on High Volumes on a Tough Day for Markets

    Top Losers on High Volumes on a Tough Day for Markets

    As Indian markets fell, with OPEC trying to tighten its control on global oil prices and concerns around India's fiscal deficit, some BSE 500 stocks took a bigger beating than others. MOIL topped the volume losers list after it announced a decrease in manganese ore prices effective December 1. Aurobindo Pharma, Bank of India and Escorts also were among the top losers on high volumes. For the full screener click here.  

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    The Baseline
    01 Dec 2017

    Bajaj Auto, Maruti up, Airtel down

    Bajaj Auto, Maruti up, Airtel down click to expand

    Auto stocks Bajaj Auto and Maruti Suzuki are trending up on strong November sales, as is Biocon, which is gaining in share price on approvals by the European Medical Agency for approvals on biosimilars including trastuzumab. SAIL has gained on an upgrade from Philip Capital, with analysts optimistic that the efficiency and belt-tightening requirements that the government has required will turn around the loss-making PSU.

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    The Baseline
    01 Dec 2017
    GDP growth gives economy a boost, Indian pharma sector faces penalties in the US

    GDP growth gives economy a boost, Indian pharma sector faces penalties in the US

    Indian economy: The overall GDP number showed improvement, clocking in at 6.3% growth YoY for the September quarter. A rise in growth was widely expected, with the impact of demonetization diminishing and restocking by businesses after GST also driving up purchases.

    The global scene: Expectations that the US tax bill would come to a vote yesterday were dashed when Bob Corker, a key Republican Senator, refused to back the bill in its current form. This hit markets across the world including Asian markets, which are trending down today. The bill has received criticism from outside groups for its impact on the US deficit, which would rise by $1.4 trillion. 

    OPEC and its allies outside the group including Russia have agreed to maintain oil production cuts until end 2018. 

    Pharma: An Edelweiss analysis says that a drug price-fixing investigation in the US, which was first covered in the news late last year, is expanding to cover multiple Indian companies, including Sun Pharma, Aurobindo, Dr. Reddy's, Glenmark and Zydus. The analysts said that there is a "high probability" that the companies will be charged with significant penalties, and could face criminal proceedings. 

    Photo: Mattias Diesel

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    The Baseline
    30 Nov 2017
    Block deals today: What's hot

    Block deals today: What's hot

    Indiabulls Housing Finance, which received an S&P upgrade to AAA, saw 21 lakh shares change hands in three blocks on both exchanges at Rs 1,205 share price. While valuations of the company are high, it is still trading below its average broker target. 

    23 lakh shares of auto firm Ashok Leyland changed hands in a single block. The company's share price has been trading below its 50 day average.

    21 lakh shares (3.1% stake) of Capacit'e Infraprojects switched hands in two blocks at Rs 417 share price. The company's share price had been climbing since yesterday.

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    The Baseline
    30 Nov 2017
    Expect GDP to be strong, analysts say; Indiabulls Housing gets rating upgrade

    Expect GDP to be strong, analysts say; Indiabulls Housing gets rating upgrade

    Global economy: Asian markets fell, and Janet Yellen, the outgoing US Fed Chief issued a caution on the rising public debt in the US, though she said threats to the US financial system appear "moderate". The Republican tax plan being battled out in the US Congress cuts corporate taxes substantially. As written, the tax bill would cause a $1.4 trillion increase to the national deficit over the next decade.

    Indian economy: Analysts are expecting to see improved GDP growth numbers for the September quarter (due today after market hours) as the impacts of demonetization and the switch to the new tax regime fade. Small business recovery has been happening more slowly, and this segment needs lower inflation and a strong revival in consumer demand to see a boost. 

    Indiabulls Housing Finance has received a boost, with a rating upgrade by S&P to AAA.

    Promoter buys, sells: Prabhat Dairy (2 lakh shares bought), Granules India (1.6 lakh shares bought), Parag Milk Foods (10,000 shares bought), Borosil Glassworks (64,000 shares sold) 

    Photo: Camila Damasio

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    The Baseline
    29 Nov 2017
    Block deals today: What's hot

    Block deals today: What's hot

    The following block deals took place today. Since detailed filings happen EoD, buyers and sellers are not immediately available. 

    GNA Axles saw 10 lakh shares (5% stake) change hands at Rs 390.35-395.30 per share on the BSE. Share price of the company rose sharply yesterday by nearly 7%, and fell today by over 5%. 

      Steel company SAIL saw 18.7 lakh shares change hands in a single block deal. The company is under pressure to make a profit after the government ordered a cutting of costs, and asset disposals at the loss-making 63-year-old mill.

      V-Guard saw 29.8 lakh shares (0.7 percent equity) change hands in two blocks on the NSE and BSE at Rs 235 per share. The share price is up today on high volumes. The trendline for the company has been up overall after it posted healthy results in the September quarter. 

      ICICI Bank saw 21 lakh shares change hands in a single block deal. News reports say that IndoStar Capital has backed off from buying ICICI Home Finance. 

      Action Construction Equipment saw 45.2 lakh shares (3.8% equity) change hands at between Rs 134.35-139.5 per share on NSE. The stock fell sharply by 6.1% today to Rs 139.20, after hitting a year high earlier this month. 

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      The Baseline
      29 Nov 2017
      Updates: GDP data release may be impacted by GST, cost overruns in L&T's Hyderabad Metro

      Updates: GDP data release may be impacted by GST, cost overruns in L&T's Hyderabad Metro

      From flight business to on the ground business: SpiceJet says that it has incorporated a wholly-owned subsidiary that would engage in real estate business. The new subsidiary 'Canvin Real Estate Pvt Ltd' has a paid capital of Rs 1 lakh.

      September quarter GDP data is due on Thursday, and many are expecting growth to be an improvement over the 5.7% logged in the June quarter. However, sales tax growth is counted in the GDP estimates, and the GST rollout would consequently impact calculations of the GDP number. 

      Nestle India, the makers of Maggi instant noodles, has been fined Rs. 45 lakh by the district administration in Uttar Pradesh's Shahjahanpur over what they claimed was contamination of samples. The administration said Nestle distributors in the region have been fined Rs. 17 lakh, taking the total penalty to Rs. 62 lakh including the amount Nestle India has been asked to pay. Nestle says that this looks like "the application of incorrect standards". 

      The Hyderabad Metro started service on Tuesday, and the fare hike by 150% is likely to benefit Larsen & Toubro (L&T), says CLSA. However, the delays in completing the project are leading to cost overruns. L&T has reportedly sought more than two years for completion of the Hyderabad Metro project, and the delays have increased the estimated cost of the project from over Rs 14,100 crore to Rs 18,800 crore. The administration said that is in talks with L&T to try and resolve the issue. 

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      The Baseline
      28 Nov 2017
      What's hot: Bulk deals in the market

      What's hot: Bulk deals in the market

        Investor Ramesh Shah sold 18 lakh shares (1.5% stake) in jewelry firm Gitanjali Gems at Rs. 93.05. The company has hit a new year high today on high volumes. 

        India Max Investment Fund sold 1.75 lakh shares (0.7% stake) in Websol Energy Systems. India Max has been gradually offloading stake in the company, selling 1.47 lakh shares on 14 November and 2 lakh shares on 10 November. 

        SBI Mutual Fund sold 2 lakh shares (0.7% equity) in UFO Moviez at a Rs. 485.05 share price. 

        Sarva Priya Exports sold 2.20 lakh shares, which amounts to a 1.6% stake in BCL Industries

        Seminary Tie Up sold 2.70 lakh shares (1.7% equity) in Cantabil Retail, which hit a year high today on significant volumes. 

        Capston Capital Partners sold 2.29 lakh shares (0.5% stake) in brewing company Pincon Spirit. Share price of the stock is down today.

        Photo by Appaiah

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        The Baseline
        28 Nov 2017
        Recommendations on net neutrality rules coming today: TRAI

        Recommendations on net neutrality rules coming today: TRAI

        Update: Newly released guidelines by TRAI have strongly supported net neutrality. The guidelines state that no internet access service provider can put any form of discrimination, restriction or interference in the treatment of content, including practices like blocking, degrading, slowing down or granting preferential speeds or treatment to any content. “A Licensee providing Internet Access Service shall not engage in any discriminatory treatment of content, including based on the sender or receiver, the protocols being used or the user equipment,” TRAI wrote.

        Even as Trump-appointed FCC Director Ajit Pai plans to undo net neutrality in the US, gutting rules that bar internet service providers (ISPs) from blocking or slowing down access to content, TRAI is set to issue its own guidelines for India today. TRAI Chief Ram Sewak Sharma said that the guidelines would be issued sometime during the day.

        So far, TRAI has adopted a pro-net neutrality stand, barring zero data charges plans that telecom providers had launched that provided free access to some websites. Trai had in January floated a consultation paper on the net neutrality issue, and had asked for inputs on how to ensure non-discriminatory access to content online. It also held an open house discussion on the topic in August. The regulator is expected to uphold net neutrality overall.

        TRAI Chief Ram Sewak Sharma is not new to controversy. He was in the news in previous months as the conflict between Reliance Jio and other telecom providers escalated, and after TRAI decided to slash the Intercoonect Usage Charges that provide revenues to telecom providers but that Jio wanted removed. He was also previously the Director General of the UIDAI during Nandan Nilekani's tenure as Chairman. 

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        The Baseline
        27 Nov 2017
        What's hot: Bulk deals in the market

        What's hot: Bulk deals in the market

        Franklin Templeton MF bought 7.15 lakh shares (1.2% stake) in Vardhman Textiles, while Mahavir Share Trust sold 6.9 lakh shares in the company. This is the second offload by Mahavir Trust in the company - it had recently sold shares in Sep 2017. Vardhman has seen declining net profits (fell by 71%) and revenues in the most recent September quarter. 

        DSP Blackrock Mutual Fund bought 9.5 lakh shares of GHCL, while Bhoomi Family Trust sold 11 lakh shares. The company has hit a new year high in share price today. 

        Promoter Gammon Power sold 1.5 crore shares (1.6% stake) in Gammon Infrastructure. Promoter pledge in the company has hit 100% of promoter holdings, a bad sign in terms of indebtedness. 

        RBL Bank saw Norwest Venture Partners X sell 56.21 lakh shares (approximating to 1.4% stake) at a Rs. 510 share price, below the company's share price averages. 

        Kabra Extrusion Technik is falling on high volumes today. Antique Broking bought 5.83 lakh shares (1.8% equity) while Battenfeld-Cincinnati Germany GMBH sold 38 lakh shares in the company.

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