Indian stock market morning report by Keynote Capitals (September 30, 2008, Tuesday, 6.00 a.m. GMT)
Economic and Corporate Developments
- The rupee hit 47.11 to the USD yesterday, the lowest since June 2003. The currency and bond markets are closed today for half-yearly book-closing of banks.
- Chinese buyers of Indian iron ore are defaulting on import contracts and refusing to lift the ore unless the seller offers a discount on contracted prices. China accounts for around 75% of India's annual iron ore exports of about 100 tonnes. Chinese buyers are willing to pay 45% less than the prevailing rates in June. A slowdown in Chinese demand is a negative for iron ore exporters Sesa Goa, Resurgere Mines & Minerals and MSPL.
- Infotech Enterprises is eyeing an acquisition worth $40mn in Germany for its design engineering business.
- Auto ancillary company Banco Products India has finalised contracts with three US-based auto wholesalers in the July-September quarter, and expects sales of $1.5mn from the US market in FY09. The management has given a revenue growth guidance of 25% in FY09, driven by exports and contribution from the domestic industrial segment.
- One stock that stands out in the ongoing bloodbath is FMCG major Hindustan Unilever, which yesterday hit a new 52-week high of Rs265 intra-day.
- Orchid Chemicals and Pharmaceuticals has entered into an arrangement with US drug maker Merck & Co., for the discovery and development of novel anti-infective drugs, which has a revenue potential of over $100mn.
- XL Telecom is investing ?35mn in its wholly-owned subsidiary Saptashva Solar S.L. It is also investing Rs28Cr in another wholly-owned unit Khandoba Distilleries Ltd.
- Subex has signed a 3-year framework contract with BT Group Plc worth $50mn.
- Aksh Optifibre has entered into a 3-year agreement with Sony Pictures Entertainment to bring Hollywood content for icontrol (Aksh's IPTV Service), a television connection allowing viewers to control television programmes with over 130 channels, value added services like Video on Demand etc.
- IVRCL has won a Lift Irrigation Project worth Rs418.50Cr, to be completed in 36 months.
- Ballarpur Industries is raising paper prices from October 1.
US markets overnight
The US markets posted its worst one-day decline of 7.1% in the past 21 years, after the House of Representatives rejected the Emergency Economic Stabilization Act (proposed $700bn financial relief plan). The worst performing sector was financials that fell 15.9%. This spread fear that US economy will suffer if credit markets do not improve. The Congress is expected to work on a new plan to ease financial market turmoil, though it is not clear how long it may take.
US banks reluctant to lend
The TED Spread i.e. difference between what banks charge each other for 3-month dollar loans (3-month Libor) and what US government pays for 3-month loans (3-month T-bill) rose to 3.55%, the highest level since 1984 and indicates banks are reluctant to lend to each other.
US crisis warranted Europe bailout
The tremors from U.S. credit crisis reverberated around the world as European governments stepped in to bail out Fortis, Bradford & Bingley Plc, and Hypo Real Estate Holding AG.
Commodities and Crude prices fall
Commodities fell 5.9% and crude futures fell 10.7% to $95.48 per barrel on global economic concerns.
View on markets today
After the overnight blood bath in the US markets, Asian markets have opened weak this morning. However, after the initial weakness they have recovered to some extent. Back home, India has signed a nuclear deal with France. However, the nuclear deal with the US is still in the pipeline. No major events are expected today. We may see initial weakness in the markets; however we expect a recovery, as markets seem to be oversold.
Technical view
The Sensex saw another sharp decline yesterday on continued concerns in the US. In our view, the Sensex has not yet bottomed out. We expect the weakness to continue today in the initial trading sessions but a short recovery is possible as the Sensex has been trading negative for last 4 sessions.
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Indian stock market daily morning report (September 02, 2010, Thursday)
Indian markets ended positive to a one month high yesterday on fund buying across the sector after firm global markets, strong auto sales, rising exports and expansion in manufacturing sector. Positive European markets also aggravated buying in the markets. TCS gained ~1.5% as its UK subsidiary Diligenta bagged contracts worth 250mn pounds. All sectoral indices closed positive with metal, real estate, IT and oil & gas led the market to close positive. Metals stocks rallied as a rebound in manufacturing in China propelled base metals.
Indian stock market and companies daily report (September 02, 2010, Thursday)
The market extended gains in morning trade and turned range bound in mid-morning trade. Strong global cues pushed the market sharply higher in the second half of trade. The market spurted to the day's high in mid-afternoon trade and extended gains in late trade as European stocks and US index futures rose. Strong auto sales, expansion in the manufacturing sector in August 2010 and resumption of buying by foreign funds underpinned sentiments. All the sectoral indices on the BSE were in green and the market breadth was strong. The Sensex and Nifty closed up by 1.3% each. BSE mid-cap and the small-cap indices closed up by 1.7% and 1.8%, respectively. Among the front liners, RCOM, Hindalco Industries, Sterlite Industries, Bharti Airtel and Tata Steel gained 3–5%, while Hero Honda, HDFC and ONGC lost 0–2%. Among mid caps, STC, FDC, United Breweries, Dredging Corp. and State Bank of Mysore gained 10–14%, while Allcargo Global, Shree Global Tradefin, Jain Irrigation, Fresenius Kabi Oncology and GSK Consumer lost 2–4%.
Indian stock market daily closing report (September 02, 2010)
The markets traded within a tight range after the positive momentum witnessed for two days and ended with modest gains. All the major sectoral indices ended on a very flat note. Sugar counters witnessed a significant spike on decontrol reports. The Sensex closed at 18,238 up 34 points and the Nifty was at 5,486 up 14 points after making an intra-day high of 5,513. The Mid cap and Small cap indices were up by 0.78% and 1.11% respectively. The breadth of the market was positive and the total turnover recorded at Rs.1,02,680 Cr. The Sept future ended with 3 points discount
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Godrej Properties IPO review and analysis by Angel Broking, 9 December 2009
Godrej Properties Limited (GPL) intends to develop its projects through joint development agreements with land owners. Under this asset-light model, GPL will enter into revenue, profit or area-sharing agreements with land owners, instead of an outright purchase of the land. This model avoids direct land dealings for GPL and the locking-up of extensive capital in land. Around 80% of GPL's existing land bank will be executed through joint developments with partners. The Godrej brand name has been associated with quality and strong corporate governance. Both of its existing listed entities, Godrej Consumer Products and Godrej Industries have given CAGR Returns of 48% and 77%, respectively, to investors since 2001. We believe that GPL could leverage its parentage brand (with respect to access to the land at Vikhroli and a strong customer preference towards it), assuring a timely delivery of execution. More than 50% of GPL's existing land bank is exposed towards township projects and in one location (Ahmedabad), which will be executed over the next ten years. Any delay in this execution or a fall in property prices in Ahmedabad will impact our NAV estimates, as 50% of our NAV is derived from this project.
JSW Energy Ltd IPO review and analysis by Nirmal Bang, 8 December 2009
JSW Energy Ltd. (JSWEL) is a power project development company, which is developing, and will operate and maintain, power projects in India. The company has two thermal power projects under operation, with a combined installed capacity of 860 MW. JSWEL is a part of the JSW Group, a leading business group in India. JSW Group has a presence in high growth sector like Steel, Energy, Aluminium, Cement, Infrastructure and Logistics. Post IPO holding of Promoter and Promoter Group would be 78.12%
JSW Energy IPO review and analysis by Angel Broking, 7 December 2009
JSW Energy (JSWEL) currently has operational capacity of 995MW and is in the process of executing projects with capacity of 2,655MW. In addition, the company has 7,740MW power generation projects at an early stage of development. A major portion (2,145MW) of JSWEL’s upcoming capacities is expected to be operational by FY2011E thereby providing near-term visibility. Out of the plants under construction, the company expects to commission 570MW by end FY2010E, while another 1,575MW is expected to get operational in FY2011E. Thus, a robust portfolio and near-term Revenue visibility is a major positive for the company.
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Reliance Broadcast Network To Raise Over Rs. 400 Cr., 2 September 2010
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Zylog Systems To Raise Up To Rs.250 Cr, 2 September 2010
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