Contact Your Financial Adviser Money Making MC
3
January 2018
I had
mentioned in Tuesday’s closing report that Nifty, Sensex lacked Momentum. On
Tuesday, the key indices of the Indian equity market closed on a flat note
after investors booked profit in automobile, healthcare and oil and gas stocks.
On the NSE, there were 1,177 advances, 602 declines and 80 unchanged. The
trends of the major indices in the course of Tuesday’s trading are given in the
table below: The Total
Investment & Insurance Solutions
 |
Major Indices (The Total
Investment & Insurance Solutions)
On
Reliance Industries (RIL) stock, global brokerage firm CLSA on Wednesday said
RIL is likely to turn cash flow-positive this fiscal by reaping benefits of its
downstream expansion and expects the company to monetise its Jio telecom
network. During 2017-18, the Mukesh Ambani-led RIL was expected to end a
four-year run of negative cash flows and report a consolidated free cash flow
of nearly $1 billion. "This year will see a big cash-flow boost as
projects of over $40 billion start to deliver in full swing while capex falls.
"Stabilisation of ROGC (refinery off-gas cracker) and petcoke gasification
would boost EBITDA (Earnings Before Interest, Taxes, Depreciation and
Amortisation)," said the CLSA research report. On Tuesday, RIL announced
the successful commissioning of the world's largest 1.5 million tonne per annum
(MTPA)-capacity ROGC complex at Jamnagar in Gujarat along with downstream
plants and utilities. According to the brokerage, monetisation of the ROGC
complex, coupled with the petcoke gasification plant, which is in an advanced
stage of commissioning, will boost the EBITDA, or operating income, of the
company. However, RIL "should allow almost a full year of benefit to flow
in fiscal 2018-19. Stabilisation of these projects would give a big boost to
oil and gas earnings over 12-15 months", the report said. Noting that
RIL's telecom network Jio's monetisation plan entails raising smartphone Arpus,
and expanding 4G feature phone subscribers, along with the launch of its
broadband and enterprise offering, CLSA said: "We will also start to see
cross-selling and other ways to monetise Reliance's wide customer base, which
will be the key long-term value driver." Focusing on its telecom venture
in 2017, RIL managed to gather nearly 15 crore subscribers on the back of cheap
plans and high capacity data network, while CLSA now expects the company to
monetise not only Reliance Jio Infocomm customers but also its "industry
leading capacities". RIL's telecom venture can monetise its customer base
by cross-selling retail products, CLSA said. "While we also expect a
notable decline in capex intensity through 2018, at the same time, successful
launch of broadband and enterprise businesses could further add to
estimates," it added.
The
Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi,
on Wednesday approved Jal Marg Vikas Project (JMVP) for capacity augmentation
of navigation on National Waterway-1's (Ganga river) 1,380-km Haldia-Varanasi
stretch. According to a cabinet communique, the Rs 5,369 crore project, which
is expected to be completed by March 2023, will bring down the logistic cost in
the country and lead to major infrastructure development like multi-modal and
inter-modal terminals, roll on-roll off (Ro-Ro) facilities, ferry services, and
navigation aids. The JMVP will create an alternative mode of transport that
will be "environment friendly and cost effective" and generate
"huge" employment, it said. "NW-1 development & operations
will lead to direct employment generation to the tune of 46,000 and indirect employment
of 84,000 will be generated by vessel construction industry," said the
release. The World Bank has provided technical assistance and financial support
to the project, which will cover states of Uttar Pradesh, Bihar, Jharkhand and
West Bengal. Union Finance Minister Arun Jaitley had announced the JMVP in his
July 2014 Budget speech to enable commercial navigation of at least 1,500
tonnes vessels in Ganga. The International Bank for Reconstruction and
Development (IBRD) has pledged a loan of $375 million (Rs 2, 512 crore) for the
project while the Indian government will incur expenses of Rs 2,556 crore - to
be sourced from budgetary allocation and proceeds from bond issue. Private
sector participation in the project under Public-Private Partnership mode will
be Rs 301 crore.
Industry
body Assocham on Wednesday recommended a weighted tax deduction of 150-200 per
cent on actual cost of specified components for the consumer electronics sector
in the upcoming Union Budget. The deduction is required as costs pertaining to
finance, energy and logistics/transportation constitute a major portion of
consumer electronics sector, the chamber said in a release.
The
Telecom Regulatory Authority of India (TRAI) on Wednesday issued a consultation
paper seeking stakeholders' view to formulate the National Telecom Policy 2018.
The Department of Telecommunications (DoT), through its letter dated August 21,
2017 requested the TRAI to suggest its policy inputs for formulation of
National Telecom Policy - 2018. The DoT, on its web-site, has stated that the
new telecom policy will be governed by the key guiding principle of alignment
with the national vision. Its major themes will be regulatory and licensing
frameworks impacting the telecom sector, connectivity-for-all, quality of
services, ease of doing business, and absorption of new technologies including
5G and Internet of Things (IoT). The Total Investment & Insurance
Solutions
The
top gainers and top losers of the major indices are given in the table below:
 |
Top Gainer (The Total
Investment & Insurance Solutions)
The
closing values of the major Asian indices are given in the table below: The
Total Investment & Insurance Solutions
 |
| Asian Indices (The Total Investment & Insurance Solutions) |
No comments:
Post a Comment