15TH FEB 2018

Husains

MARKET WRAP
Benchmark indices closed lower on sharp fall in PSU banks. The 30-share BSE Sensex was down
144.52 points at 34,155.95 and the 50-share NSE Nifty declined 38.90 points to 10,500.90.

Nifty PSU Bank was down 5 percent as PNB fell over 10 percent. Allahabad Bank, OBC, Bank of
India, Canara Bank and Union Bank of India plunged 5-8 percent. Yes Bank was down nearly 5
percent.

Other Stock Voltamp Transformers, NRB Bearings, Kolte-Patil, DLF, IOL Chemicals, Ester, Dilip
Buildcon, NMDC, Britannia Industries, Ashok Leyland and Minda Industries gained 1-4 percent
whereas JK Tyre and Motherson Sumi lost 2-4 percent post earnings.

BROAD MARKET INDICES

INDEX P. Close OPEN HIGH LOW CURRENT %CHANGE

NIFTY 50 10539.75 10585.75 10590.55 10456.65 10500.90 -0.37

NIFTY NEXT 50 30171.85 30337.45 30353.85 30005.25 30110.25 -0.20

NIFTY MIDCAP 50 5257.40 5295.50 5308.85 5237.10 5254.75 -0.05

NIFTY100 LIQ15 4498.65 4522.90 4524.80 4419.05 4436.60 -1.38

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 ASIAN INDEX
INDEX OPEN HIGH LOW CLOSE %CHANGE
NIKKEI 225 21507.7 21510.3 21119 21382.6 -2.38

HANG SENG 29679.2 29679.21 29129 29507.4 -3.2

TAIWAN 10371 10392.31 10189 10371.8 -1.51

SSE 3172.85 3180.11 3062.7 3130.93 -4.19

INDIAN MAJOR SECTORAL INDICES

INDEX P. Close OPEN HIGH LOW CURRENT %CHANGE

NIFTY BANK 25701.60 25810.25 25810.25 25212.35 25341.25 -1.40

NIFTY FIN SERVICE 10562 10620.00 10620.35 10450.35 10498.10 -0.60

NIFTY IT 12422.65 12438.20 12546.00 12346.00 12420.00 -0.02

NIFTY PHARMA 9339.95 9367.50 9374.00 9212.25 9249.20 -0.97

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 STOCK UPDATE
DLF cuts debt to Rs 5,513 cr; aims to become debt-free by FY19
Realty major DLF's net debt has come down substantially to Rs 5,513 crore at the end of
October-December quarter on fund infusion by promoters as it targets to become a zero-debt
company by the end of next fiscal.DLF, the country's largest real estate developer, repaid loans
of Rs 7,100 crore using fund infused by the promoters.

According to an investor presentation, DLF's net debt stood at Rs 5,513 crore as on December
31, 2017, and this is primarily from development business of housing projects. The debt from
commercial real estate business has now been reflected in DLF Cyber City Developers Ltd
(DCCDL), the company's joint venture firm with Singapore's sovereign wealth fund GIC. he net
debt of DCCDL stood at Rs 16,074 crore at the end of third quarter of this fiscal. The JV holds the
bulk of rent-yielding commercial assets of DLF group. DLF's total debt stood at Rs 26,800 crore at
June-end this financial year.

The promoters had in August last year sold entire 40 per cent stake in DCCDL for Rs 11,900 crore.
This deal included sale of 33.34 per cent stake in DCCDL to GIC for Rs 8,900 crore and buy-back
of remaining shares worth Rs 3,000 crore by DCCDL.This deal got concluded in late December. As
a result, DLF's stake in DDCDL increased to 66.66 per cent stake from 60 per cent, while GIC has
the balance 33.34 per cent stake in the joint venture firm Total income, however, fell to Rs
1,855.21 crore in the third quarter of 2017-18 fiscal from Rs 2,177.90 crore in the corresponding
period of the previous year.

DLF explained in a statement that its profit has gone up due to one-time exceptional gain on
account of restatement of its investment in DCCDL at fair market value based on Indian
accounting standards (IndAS 110), as DCCDL is now being accounted as a joint venture instead of
a subsidiary.

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 STOCK UPDATE
Tata Power Q3 profit seen down 22%, generation volumes may
remain sluggish
Tata Power Company's third quarter consolidated profit is expected to fall 22 percent to Rs 466
crore compared to Rs 599 crore in year-ago quarter.

Revenue from operations may grow 11 percent to Rs 7,445 crore compared to Rs 6,684 crore in
same quarter last fiscal, according to average of estimates of analysts ..

Operating profit is likely to increase 15 percent year-on-year to Rs 1,611 crore and margin may
expand 70 basis points to 21.6 percent in Q3.

Year-on-year profit comparison may not be valid due to (1) higher interest cost in Q3FY18 to
fund renewable asset acquisition and (2) tax reversal in Q3FY17, despite stable operations in the
core distribution business.

Analysts expect generation volumes to remain sluggish and realisations to remain flattish. They
further expect coal business and renewable business to maintain strong momentum.

More than numbers, the Street will watch out for restructuring news. Tata Power had guided for
simplification of group structure in FY18 at the beginning of the year.

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