Industry Update: October 2018

A combination of global events including rising oil prices, a few earnings misses, a brewing conflict between Italy and the European Union over budget spending, and apprehension over rising interest rates weighed down the markets in October. Here is a quick update on ten key sectors:

Automobile: In the past one month, the Auto index has underperformed by declining 9.0% compared with a 6.2% fall in the market. In the last few months, automobile sales have been affected by rising fuel cost, higher insurance premiums, and recent price hikes by automobile companies. In October, M&M and Hyundai reported a strong growth versus a m/m decline in September 2018.

Banking and Finance: Results in Q2 FY 2019 were mixed, with most banks failing to trigger a positive sentiment. HDFC Bank and Kotak met estimates, whereas IndusInd missed expectations.

Capital Equipment: The sector has weakened in India this month due to market headwinds like indices falling to their 52-week lows, the rise in oil prices, and a weakening rupee. On a positive note, equipment manufacturers could benefit from the ongoing U.S-China trade war.

Consumer: The Nifty FMCG index grew 7% YTD but fell 4.6% m/m, hurt by valuation contraction since the end of August. Dabur is down due to lackluster Q2 earnings, while Nestle and Britannia may be the safest bets in the present downtrend.

Materials: Nifty Metal was in an Uptrend Under Pressure during the start of the month and ended it in a correction. Over the month, the index fell about 6.5% on heavy volume.

Media and Internet Industry: The index has been facing resistance around its 50-DMA since June. It continued to trend in a downward channel. PVR, Inox, and Eros reported strong Q2 results.

Oil and Gas: The index witnessed an 11.5% decline over the last month. The stock prices of OMCs were under pressure and were severely hit during the first week of October when the Government asked them to absorb Rs1/liter of fuel price cuts.

Pharma and Healthcare: The Nifty Pharma index is in a Downtrend but outperformed the broader market by 2.5%. Large Indian drug firms are expected to benefit from the recovery in U.S. sales, weakening of the rupee, and the revival of domestic demand

Technology Global: Semiconductor companies have come under heavy selling pressure in the last one month. Nifty IT Index registered new highs in September. However, despite the good earnings season so far, India IT companies have come under selling pressure because of the overall weakness in the market

Telecom: The index has consolidated throughout the month of October, trading near 52-week lows. It is facing stiff resistance around its 50-DMA. Currently, the telecom market is in a Downtrend.

Automobile

Nifty Auto: The Nifty Auto index is trading at a 52-week low and is currently 12.9% below its 10-WMA and 19.8% below its 40-WMA. In the past one month, the Auto index has underperformed the market by declining 9.0% compared with a 6.2% decline in the market. This underperformance is due to concerns regarding demand slowdown led by rising commodity costs and oil prices.

Key Developments: On October 24, the Supreme Court passed an order banning the sale of Bharat Stage (BS) IV vehicles, from April 2020. Auto companies will invest more in technology upgrades for BS VI. This is expected to result in fewer launches until the deadline. Proposal of uniform road tax should improve demand and clear supply bottlenecks. If accepted, the proposal will have a negative effect in Delhi, UP, and Punjab where taxes are lower and a positive impact on states like West Bengal and Karnataka because of higher taxes.

During April–September 2018, automobile sales were 14,155K units (+10.9% y/y). In October, M&M and Hyundai reported a strong growth versus a decline in Sep2018. Other leading manufacturers maintained their growth trajectory. In September, automobiles sales were affected by rising fuel cost, higher insurance premiums, and recent price hikes by automobile companies. Passenger vehicle sales were 292K (-5.6% y/y) driven by base effect and festive season shifting to Q3 FY 2019. Commercial vehicle sales were 96K units (+24.1%) and two-wheeler sales were 2,126K units (+4.1% y/y).

Q2 FY 2019 Results

Maruti Suzuki’s Q2 earnings beat consensus estimates on revenue and net profit front. The quarterly profit declined for the first time in four years due to higher commodity costs and a weak rupee. The stock has poor technical ratings, with an RS Rating of 38 and an A/D Rating of E.

Bajaj Auto reported +21.0% y/y revenue growth. However, net profit grew 3.7% y/y, due to rising commodity costs. Technicals are weak with poor RS and A/D Ratings.

Hero MotoCorp reported a revenue of +8.6% y/y and net profit was down 3.4% y/y, due to higher raw material costs and other expenses amid subdued demand in key markets of Kerala and West Bengal. Technicals are weak with an RS Rating of 43 and an A/D Rating of D-.

TVS Motors reported a revenue of INR 49.9B (+22.9% y/y) and a flat net profit of INR 2.1B, due to higher commodity prices. Good fundamentals and weak technical ratings.

Banking and Financial Services

Global View

ECB kept its policy unchanged as expected on October 25, staying on course to end bond purchases by the end of December and to raise rates sometime after next summer.

Mirroring the sentiment, central banks of Turkey and Norway also kept their interest rates on hold.

Nifty Bank: The Nifty Bank index wait for follow-through day ended on October 29, the index rallied 2.2% of higher volume. The index was shifted to a Confirmed Uptrend. The rally was hugely driven by ICICI Bank (represents 17.3% of Nifty Bank’s weightage) on good earnings print.

Key Developments in India: As per media reports, the government expects some changes in the prompt corrective action (PCA) framework prescribed by the Reserve Bank of India (RBI) to enable more sanction of credit by PSU banks. Under the PCA framework, banks face restrictions on distributing dividends and remitting profits. Moreover, lenders are stopped from expanding their branch networks and need to maintain higher provisions. Management compensation and directors fees are also capped.

The RBI mandated small finance banks to list their banking units separately within three years of operations. It expects promoters of small finance banks to get their stake to at least 40% for a period of five years from the date of commencement of operations. Shares of Equitas Holdings and Ujjivan Financial Services were significantly impacted.

Earnings – A mixed bag: On October 24, Barclays kicked off the U.K. Banking reporting season by posting its best quarterly earnings in more than three years. German lender, Deutsche Bank, announced its results on the same day, its net profit was down 65% y/y.

Visa reported its Q3 results on October 24, EPS beat street estimates, while revenues were in line with the street expectations.

In India, Q2 FY 2019 numbers were mixed across the sector, with most banks failing to trigger the positive sentiment. HDFC Bank and Kotak met estimates, whereas IndusInd Bank missed consensus expectations.

Capital Equipment 

After displaying constructive momentum in the last quarter, the Capital Equipment sector in developed markets, which predominantly include the U.S. and European stocks, is back in the underperforming quadrant. Apart from a broader market correction, weak macro indicators like increasing input costs, rising interest rates, and trade negotiations weighed on the sector performance in October.

The U.S. Capital Equipment sector (WS003) lost 11%, recording its sharpest fall in more than five years. Among sub-sectors, Aerospace & Defense continue to outperform peer groups, aided by intact fundamentals and long-term tailwinds. On the flip side, the Homebuilders sub-sector underperformed peers. The U.S. housing market continues to display weakness as the residential investment in the country declined for a third straight quarter as higher interest rates and tight inventory constraints continue to loom at large. Home sales in September fell 3.4% to a seasonally adjusted annual rate of 5.15M units (down for six straight months), as per the National Association of Realtors. The housing market weakness is expected to persist as the U.S. Federal bank plans for further interest rate hikes in the near future. We remain bearish on this subsector.

India 

On the whole, the Capital Equipment sector has weakened in India this month subsequent to market tailwinds like indices falling to their 52-week lows, the rise in oil prices, and weakening rupee.

Stocks showed mixed performance with few going up 20–35% in the month and a few falling 15–20%; nonetheless, we see rotational graph moving into underperforming and weakening from underperforming and improving.

On a positive note, electrical equipment and heavy machinery manufacturers are going to leverage on the U.S-China trade war as tariffs were levied on these equipment. India being the second option to the U.S., we expect a boost in new orders for this quarter.

On the other front, wiring harness maker SAMSOS delivered its 1,000th F/A-18 electrical panel and various important supplies to Boeing (the largest aerospace company in the world). Delivery of these by the Company (a Make in India initiative) underscores the importance of Indian manufacturers in building the future of aerospace and defense globally. Also, it led to an initiative by Boeing to make Super Hornet (fighter aircraft) in India promoted by a Public Private Partnership (PPP) between Mahindra Defence Services and Hindustan Aeronautics Ltd.

Adding to these, electrical companies succeeded with few other supplements like bagging a new order worth Rs.1,881 crore by L&T Power, launch of advanced products by Voltas, and acquisition by L&T Technology Services.

Leaders in India: Universal Cables (grew 35% in the last four weeks), Praj Industries (27%), Sterlite Technologies (26%), Orient Paper & Industry (16%), and Graphite India (13%).

Strong Sectors: Electrical-Power/Equipment and Machinery-General Industrial.

Praj Industries is a project engineering company engaged in manufacturing of special-purpose machinery and offers numerous solutions (equipment) in water and chemical-related plants. Amid huge downfall in the market, the stock stood as a leader by picking up 27% in the month with a Price Strength of 93 and Buyer Demand of A+. The Company reported strong growth in its Q2 results and is ready to leverage the new policy changes by the government on biofuels. Also, it plans to capitalize on Sustainable Alternative Towards Affordable Transportation (worth Rs.1.75 Lakh Crores for the next 5 years) policy being a frontrunner by providing its much essential Compressed Biogas (CBG) technology solution.

Sterlite Technologies is India’s leading technology company engaged in the design, building, and manufacture of smart network systems. The Company has a 41% market share in India’s optical fiber cable market, which translates to 6% of the global market share. The Company continues to enhance its leadership position through its broad product offerings in a fast-changing global data landscape. Sterlite has a solid earnings profile that reflects on its EPS Rank of 96. The stock displayed constructive momentum amidst weak market condition in the past one month. The stock consistently outperformed the broader market, which reflects on its stable technical ratings.

On the flip side, according to the Cement Manufacturers Association, the cement industry has witnessed 14% growth in H1 FY 2019 amid 60–70% rise in fuel cost. To combat this rise in fuel prices, we expect cement prices to rise up by 10% in the next six months. Hence, we see a big fall in cement stocks upon fears of falling sales or its margins.

Laggards in India: Shree Cement (fell 20% in the last four weeks), ACC (-15% in Oct), Ambuja Cements (-14% in Oct), and Ultratech Cement (-12% in Oct).

Weak Sectors: Building-Cement/Concrete Products and Building-Construction Products.

Consumer

This was the worst October in recent years. The month saw the largest dip in S&P 500 value in the eight years.

The Leisure & Alcoholic Beverages sector declined 9.4% in the month or lost $238.9B in value. The toys and games industry lost 12.2% or $13.7B in value; while the Alcoholic Beverages sector lost the worst in terms of value i.e. $159.2B.

The Nifty FMCG index grew 7% YTD, while it fell 4.6% m/m hurt by valuation contraction since August end.

Best looking defensive players

As of October end, Britannia, Nestle India, Dabur, Page Industries, and Radico Khaitan have yielded YTD return of 15.7%, 23.5%, 13.3%, 13.7%, and 32% respectively, comprehensively outperforming India’s broader index Nifty with a YTD return of 7%. Dabur is down due to the lackluster Q2 earnings, Nestle and Britannia are the safest bets in the present downtrend. Owing to weak macro factors, both the stocks deteriorated technically by breaching their key support levels, but currently, Nestle gained its position above 10-WMA and is forming a consolidation.

Worst looking defensive players

KRBL Ltd., a basmati rice processing company, generated negative YTD return of 42.9%, trading below its 200-DMA. Shares breached 50-DMA recently, in line with the overall downtrend in the market. United Breweries lost 11.8% over the month.

United Spirits

The revenues grew by 14.7% y/y in the 2nd quarter and 12.6% for H1. The growth was driven by the 2nd quarter and in the second quarter it was driven by ‘Prestige & Above’ segment which grew 19%. This is in-line with the global ‘premiumisation’ trend, where consumers are turning to “premium” brands. We have observed this specially with beer brewing brands.

The EBIT margin improved by 1.3 percentage points, however I believe, this will further improve as typical of Premiumization trend. The marginal cost to make a premium brand isn’t as much as mark ups.

Moreover the tax rate and interest cost both have decreased indicating a favorable restructuring.

Materials

Among the Basic Materials, steel production is catching the eye of the world, especially India. Steel companies’ appetite for distressed steel assets remains robust, despite worrying external events such as trade wars, and the resultant scaling down of global growth projections. This is also despite the fact that investors are worried about steel companies taking on more debt than they should.

Nifty Metal Index: Nifty Metal was Under Pressure during the start of the month and has ended in a correction. Over the month, the index fell about 6.5% on heavy volume and saw heavy selling pressure. Despite the bright future of steel in the country, all steel stocks have been falling during the month, with major names such as JSW Steel falling more than 10%, though the Company reported very good numbers for the quarter.

Trends in Basic Materials (India): The World Steel Association, a global industry body, released its short-range demand outlook stating that India’s growth ranks the highest among the major steel-consuming countries, but the gap is widening sharply. Six months ago, World Steel had projected India’s demand to grow 5.5% in 2018 and 6% in 2019. In its latest report, the numbers have been revised to 7.5% and 7.3%, respectively.

JSW Energy – The Company is set to report its Q2 earnings today. The stock retook its 50-DMA today in anticipation of a strong quarter. It is 9% below its 200-DMA. Technical ranking and ratings: Up/Down volume ratio of 1.3 and A/D Rating of B-, indicating strong accumulation. Its RS line has made an upward trajectory after hitting its 52-week low with an RS Rating of 56.

Tata Steel – The stock is currently trading in a 42-week consolidation base and is trading 12% below its previous high of 647.6. It reported seven consecutive quarters of double-digit revenue and earnings growth. Its EPS Rank of 70 is set to improve further on account of improved earnings estimates. It is currently trading 1% and 2% below its 50- and 200-DMA. Though its A/D Rating is low at D+, Up/Down volume ratio looks strong (1.5). Group Rank looks good at 48.

Media and Internet Industry

Nifty Media Index: The index has been facing resistance around its 50-DMA since June. It continued to trend in a downward channel.

Key stocks to look out for:

1.PVR (PV.IN) – Q2 revenues and EPS grew 28% and 31%, y/y, respectively, primarily led by a 25% growth in admissions. EBITDA margin expanded 110 bps to 18.2%. The Rs 633 crore deal to acquire a 72% stake in SPI is also positive as revenue worth Rs 500 crore is expected from SPI this year. The stock has strong fundamentals and technicals. A break above its January high at ~1,568 on strong volume will trigger a new buy point.

2.Inox Leisure (IXL.IN) – Q2 FY 2019 revenues and net profit grew 17% and 3%, y/y, respectively. Overall footfall and occupancy grew 7%, while the average ticket price increased 5.1% in the quarter. Inox shares have been consolidating over the last six months. Currently, fundamentals and technicals remain weak.

3.Saregama India (GCO.IN) – Entered into a strategic partnership with the audio brand Harman Kardon for launching the next generation of Carvaan products, with the first product Carvaan Gold launched on October 24. In early October, it acquired a 100% stake in Saregama FZE. The stock is consolidating in a downward channel, facing stiff resistance around its 50-DMA. Strong fundamentals.

4. Eros International (EDT.IN) – Reported a strong set of Q2 numbers, with total income and net profit increasing 17% and 34%, y/y, respectively. EBIT margin expanded to 33.3% (+160bps y/y) in Q2 FY 2019. Eros released 17 films and one digital series in Q2 FY 2019. The stock is trending downward, with resistance around its 50-DMA. Poor fundamentals and technicals.

Internet Content Industry

Just Dial (JUS.IN) – The stock jumped 11% post robust Q2 FY 2019 results. The Company’s revenues and net profit grew 14% and 29%, y/y, respectively. It reported a healthy unique visitor growth of 25% y/y. Shares have formed a 41-week cup-with-handle base. A strong break out from the base will trigger a new buy point. It is trading 22% off 52-week highs.

Netflix India (NFLX) – Reported revenues of Rs 58 crore and net profit of Rs 20.22 lakh for FY 2018.

Oil and Gas

Global View:

Globally, the crude space is volatile, with the imminent threat of Iranian sanctions giving support to the crude price on one hand. On the other hand, efforts from OPEC, US and Russia to increase crude production levels and the ongoing U.S.-China trade stand-off is offsetting the pressure on higher crude prices.

The U.S. crude benchmark has been weak after the Energy department’s inventory release showed that stockpiles recorded another large build. Natural gas also finished the week down on unfavorable weather forecasts and strength in the commodity’s production.

Light Sweet Crude is trading below both its 10- and 40-WMA and is currently ~14% off highs, with the next support at ~$63.59.

The Nifty Energy index, comprising 10 companies belonging to the petroleum, gas, and power sectors on the National Stock Exchange of India, registered lukewarm performance in the near-term. The index has delivered mixed results during the month, improving drastically at the start of the month and declining post the mid-month mark. Overall, the index witnessed an 11.5% decline over the last month.
The stock prices of OMCs were under pressure and got severely hit during the first week of October when the Government asked OMCs to absorb Rs1/liter of fuel price cuts.

Key energy players in India

Reliance Industries Ltd (REL.IN): Reported decent Q2 FY 2019 beating revenue estimates with earnings in line. Results were strong in most business verticals, especially in Jio and retail businesses. However, downstream margins declined sequentially on higher feedstock costs. Add to positions as the stock regained its 40-WMA with an improving RS line.

NTPC Ltd. (NTP.IN): The state power utility offers investors a safe haven with incremental dividend yield (3.2%) alongside a low beta (0.58). Shares are improving gradually with a rising 50-DMA. However, negative estimate revisions remain a concern.

Oil & Natural Gas Corporation Ltd. (ONG.IN): The stock is trending downward and is currently ~28% off highs. Avoid this high beta stock for now.

Pharma and Healthcare

The Nifty Pharma index outperformed the broader market with a loss of 4.4% compared with the Nifty’s loss of 6.9% in October. Currently, the Pharma index is in a Downtrend.

The Indian pharmaceutical sector was mainly driven by a couple of ANDA approvals in the first half of the month, while the latter half was driven by better-than-expected quarterly earnings released by a couple of large companies. No fresh news on U.S. FDA inspection alert came as a respite to the sector.

Cadila Healthcare got US FDA final approval to market desoximetasone cream, a strong corticosteroid used to treat a variety of skin conditions including eczema, dermatitis, allergies, and rash. The Company also got final approval from the U.S. FDA to market Exemestane tablets, used for the treatment of breast cancer.

To streamline its manufacturing operations and focus on formulations, Dr. Reddy’s Laboratories sold its active pharmaceutical ingredient (API) manufacturing business unit located in Jeedimetla, Hyderabad, to Therapiva Pvt Ltd, an emerging generics pharmaceutical company.

Large Indian drug firms are expected to benefit from the recovery in U.S. sales, weakening of the rupee, and the revival of domestic demand. Over the past few months, the depreciating value of the domestic currency against the U.S. dollar lifted the investor sentiment as major Indian pharma companies earn an average of 30% of the total revenue from the U.S.

Meanwhile, the Indian pharmaceutical market has clocked 7.5% growth during September. Among the listed entities, Lupin reported the highest growth of 11%. At the earnings front, thus far, a couple of big companies including Dr. Reddy’s Laboratories, Biocon, Divi’s Laboratories, Alembic Pharma reported Q2 FY 2019 results, which are in line or above street expectations. Going forward, others are also expected to follow suit due to currency depreciation and stabilizing pricing pressure in the U.S. market.

Stocks of interest: Divi’s Laboratories (DVL.IN), Dr. Reddy’s Laboratories (DRL.IN)

Upcoming earnings announcements:

November 5: Cipla, Natco Pharma

November 11: Aurobindo Pharma

November 13: Sun Pharma

Technology Hardware – Global

Semiconductor companies have come under heavy selling pressure in the last one month due to a more moderate overall industry forecast, the U.S.-China trade tensions, and mixed commentary in hot areas like memory and semiconductor manufacturing equipment.

With the semiconductor space ~22% off-highs, it is currently in bearish territory. After recording outsized gains in 2017 (+38%), the PHLX Semiconductor benchmark (SOXX) is down 9% YTD. Currently, it is trading 15% below its 200-DMA, with key moving averages forming a death cross. The current situation looks similar to the correction in 2015, when the index fell nearly 30% off-highs. Assuming a similar downside, we expect SOXX to go down to the 1,000 level before starting its next growth cycle.

Key developments – In recent earnings calls, companies have raised concerns of a slowdown in a few key end-markets.

TSMC: Q4 sales outlook was below estimates, indicating a slowdown in smart phone sales.

Texas Instruments: Q4 guidance was below analyst expectations. Management raised concerns over a slowdown in industrial and automotive end-markets.

AMD: Q4 revenue guidance was significantly below consensus expectations, due to the lowered demand of GPUs for crypto-mining

Intel: Despite raising the guidance for Q4, management was concerned regarding the Capex slowdown in 2019 for hyperscale data centers.

India IT Services

Going into the fiscal Q2 earnings season, Nifty IT Index registered new highs in September, pricing in the good results which were expected from the depreciating rupee. Despite the good earnings season so far, (sales: ~22% y/y growth and net profit: ~22.5% y/y growth), Indian IT companies have come under selling pressure because of the overall weakness in the market.

Nifty IT Index: Nifty IT Index has bounced-off from its 200-DMA, after correcting sharply in the last one month. Currently, it is trading 8% below its 50-DMA.

Key Earnings: TCS, HCL Tech, Infosys reported in-line revenue, but better-than-expected net profit. Improvement in EBIT margin was muted and the recent rupee depreciation during the quarter did have a significant effect.

Key Trends: Near-term: TCS expects it will face challenges in the next two quarters, partly due to seasonality (December quarter) and macroeconomic headwinds like Brexit and the U.S.-China trade war.

Long-term growth: TCS expects growth in the Banking Financial and Insurance (BFSI) sector in the next one to two years. Tech-spending by banking companies is the key growth driver.

Digital services: New technologies such as cloud computing, social media, and data analytics offer new avenues of revenue growth for Indian IT services vendors.

Technology-Software

The Software sector has come under heavy selling pressure in October. None of the ten industry groups are ranked in the top ten, which is in contrast to the past several months. Design and Database have fallen the most since September. An attractive debt market, fears of overvaluation, and higher EV/sales multiples are dragging down most of the stocks in these groups.

In the current earnings season, nearly 40% of software companies have announced their quarterly results. AI, Security, and Enterprise Cloud still remain the major secular growth drivers and past consolidation highlights the solid potential in the space.

Ishares North American Tech Software IGV: The North American Software Index (IGV) was down 12.7% this month (still up +16% YTD). It has breached both the 50- and 200-DMA (-8% and -2%, respectively) and we now look forward to a strong earnings season for a revival.

Focus List Performance: We removed 19 stocks from our global focus list this month and currently have nine stocks. Important Stock Specific Updates: Microsoft (MSFT): Microsoft reported a solid Q1, with 19% top-line and 36% bottom-line growth, beating estimates. The Azure segment was the only negative – it grew 76%y/y, a slight deceleration when compared with previous quarters. The stock gapped up ~6%. Amazon Inc (AMZN): Amazon reported a mixed Q3. It missed revenue estimates but beat EPS expectations. The Company’s guidance was also below estimates. In terms of segments, a slowdown is expected in online stores and third-party services. The stock gapped down ~8%.

Stocks Fireye Inc (FEYE) and Shopify (SHOP) gapped up 10% and 12%, respectively, on the back of strong earnings. Take Two Interactive (TTWO) gapped up 11%, aided by a record opening weekend sales for its latest title ‘Red Dead Redemption 2’.

Other Major News

1. IBM + RHT: IBM entered into a definitive agreement to acquire Red Hat for $34B.

2. China gaming news: Chinese regulators shut down the last official path, the so-called green channel, to bring new games into the country.

3. CLDR + HDP merger: Cloudera (CLDR) and Hortonworks (HDP) announced a $5.2B all-stock merger.

Telecom

BSE Telecom – The index has consolidated throughout the month of October, trading near 52-week lows. It is facing stiff resistance around its 50-DMA. Currently, the telecom market is in a Downtrend.

Key listed telecom players in India

Bharti Airtel (ART.IN) – In Q2 FY 2019, the Company’s net profit and revenue slumped 65% and 6%, y/y, respectively. Net revenue from its Africa business grew 13% y/y in Q2. Its domestic average revenue per user (ARPU) declined 29% y/y, while its Africa ARPU fell 6% y/y in the quarter. A day before the earnings report, the Company made an announcement that six global investors, including Warburg Pincus, Temasek, Singtel, and SoftBank Group International, had agreed to invest $1.25B in Airtel Africa, through a primary equity issuance. In FY 2019, Bharti Airtel is planning to launch 6,000 new sites and 2,000 km of optical fiber in Gujarat. The stock is trending in a downward channel, with resistance around 50-DMA. Poor fundamentals and technical; negative growth estimates.

Vodafone Idea (ILC.IN) – Vodafone India and Idea Cellular have merged into ‘Vodafone Idea’ with combined cumulative investments of $40B. Shares are trending in a downward channel, with stiff resistance around 50-DMA. Poor fundamentals and technical; negative growth estimates.