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Daily Digest - 14-Dec-16	Download pdf

Benchmark indices settled the day on a positive note as investors keenly wait for the Federal Reserve’s rate hike decision due Wednesday night. S&P BSE Sensex ended the day at 26,697, up 183 points, while the broader Nifty50 settled at 8,222, up 51 points.

On daily charts, Nifty is range bound between 8000/8250 levels. Breakout on either side would indicate the next short term direction. Intraday Supports are at 8150/8120 levels & Resistance at 8250/8280 levels.

 

Company News

• BLS International Services has been awarded with €175 million contract by the Government of Spain.The company will open almost 100 global consulate offices in more than 38 countries for exclusively processing spanish visas globally and expects to process approximately 1.8 million applications every year. Of the total 100, 53 Spanish visa application centres will get operational in December 2016.BLS International Services Ltd is a specialist provider for outsourcing of visa, passport and attestation services to the client governments across the world. It has operations in 24 countries and is providing services through 2200 offices worldwide. It handles close to 3 million applications annually.
• Tata Global Has reentered into the Ayurvedic tea segment taking a cue from the success of Baba Ramdev’s Patanjali brand. The market leader in tea is re-entering the ‘ayurvedic’ tea segment after doing a pilot more than two years ago, under its brand – Teaveda. Both Tetley,its main brand and Teaveda have been pegged on par in the tea bag segment which is growing faster and is currently about 3-5 per cent of the Rs 30,000-crore tea category.
• Hindustan Copper reported an 11.8 per cent decline in net profit after tax at Rs 6.7 crore for Q2FY17.The company had posted a standalone net profit after tax of Rs 7.6 crore in the corresponding quarter of the previous fiscal. Standalone total income of the company during July-September quarter declined to Rs 213.7 crore from Rs 238.5 crore in the year-ago period.
• Bajaj Hindusthan Sugar Ltd reported net loss of Rs 137.71 crore for Q2FY17 due to high finance cost which stood at Rs 201.78 crore.Its net loss was higher at Rs 282.72 crore in the July-September period of last fiscal.Income from operations, however, rose to Rs 906.44 in the July-September quarter of the 2016-17 fiscal from Rs 801 crore in the corresponding period of 2015-16,
• HBL Power Systems Ltd has posted a net profit of Rs 9.31 crore for the second quarter ended September 30, 2016 against Rs 5.73 crore in the corresponding quarter last year.The Hyderabad-based batteries and electronics major registered income from operations of Rs 376.86 crore for the second quarter against Rs 343.99 crore in the corresponding quarter last year.

 

Economy

• Retail inflation, measured by consumer price index (CPI), fell to a two-year low in November 2016 at 3.63 %, as depressed consumer demand owing to Prime Minister Narendra Modi’s abrupt move of November 8 to remove high-value banknotes disrupted daily life. The latest CPI print — well below the Reserve Bank of India’s five % inflation target for March 2017 — has raised hopes of central bank going in for a repo rate cut at its next monetary policy review meeting. The note ban had a telling effect on food articles inflation — 47 % weight in CPI —which declined to 2.11 % in November from October’s 3.32 %. Food articles inflation in November last year stood at 6.07 %. Overall CPI inflation had come in at 5.41 % in November last year and 4.20 % in October 2016. For the month under review, urban CPI inflation came in at 3.05 % (4.71 % in November 2015). Rural CPI inflation for the month under review stood at 4.13 % (5.95 %). In October this year, urban CPI inflation had touched 3.54 %, while rural CPI inflation had touched 4.78 % in the same month. Following demonetisation, food prices are likely to have fallen more sharply at the wholesale price level than at the retail level, which saw a sequential moderation of 0.7 %.