Indian stock market morning report by Keynote Capitals (October 1, 2008, Wednesday, 6.00 a.m. GMT)
Economic and Corporate Developments
- The rupee continues to weaken vis-?-vis the USD. The rupee dropped to a new five-year low of 47.22/23 per dollar this morning on worries that FIIs would continue to sell Indian equities.
- LIBOR rates touched an all-time high of 6.88% yesterday which may make debt servicing more difficult for Indian companies, as it will lead to higher interest payments on their existing foreign currency loans.
- India's direct tax receipts during the April-September period rose by 29.3% y-o-y, to Rs150000Cr. While corporate tax collections were up 34.5%, income tax receipts rose 22.7%. This is an encouraging number, since it may allay to an extent, the fears of an economic slowdown.
- SAIL has signed an MoU with Larsen & Toubro, under which the two firms will jointly set up, develop, manage and own captive or independent power plants to meet SAIL's requirements.
- BHEL has bagged a Rs 990Cr order for setting up a 500 MW thermal power plant in Rajasthan.
- Bharat Electronics has planned capital expenditure of Rs570Cr to modernise its manufacturing plants. It expects to spend Rs260Cr during FY09 and Rs360Cr during FY10.
- Maruti Suzuki India has reported a marginal 5% growth y-o-y in September, though sales of its passenger car segment were up by only 2%. Sales of its mainstay 800 model sharply declined by 33%. It faces the impact of the weakening rupee, as it will import auto parts worth Rs Rs2000Cr in FY09.
- Engineering and wind turbine manufacturer Shriram EPC plans to dilute 30-40% equity stake in its Singaporean 50:50 JV Orient Green Power Pte Ltd.
- Compact Disc India is likely to receive an investment of $10mn from content developer iMedia Ventures Ltd., for a 15% equity stake, for funding its expansion projects.
Stocks to watch today
- Pyramid Saimira Theatre plans to modernize 250 screens in South India, with an investment of Rs200Cr in the next 18 months. We believe the stock is trading at attractive valuations and retain our Buy rating, though we have cut our earnings estimates for the same.
- Aftek has plans to raise up to $25mn (Rs118Cr) and will consider restructuring, including spinning off potential real estate business.
US markets overnight
The US markets ended up 4.7% on increased optimism that government will reach an agreement on a financial relief plan before the end of the week. It is believed that the Bush administration is stepping up pressure on the Congress to approve the $700bn bank rescue package. On the economic front, consumer confidence in September rose 1.3 to 59.8, better than expected reading of 53.0, which also helped lift market sentiment. Financials led the way with gain of 13.1% followed by a rise of 5.8% in energy stocks. Credit markets did in fact tighten further. Libor surged most on record at an all-time high of 6.88%.
Views on markets today
On positive cues from the US markets, the Asian markets too have opened positive today. Banking and financial stocks have led the rally. Japanese business sentiment survey turned negative for the first time in five years, indicating the Japanese economy may be in a recession. The Nikkei is in positive territory today even in a highly volatile session, partly due to the ban on short sales. Markets in China, Hong Kong, Indonesia, Malaysia, Singapore, the Philippines and Pakistan are closed today for public holidays.
Back home, Indian markets saw a lot of statements from regulators, the RBI and the Finance Minister yesterday. Sebi assured markets that it would not ban short selling. The RBI assured the markets that ICICI Bank had sufficient liquidity and that the RBI had arranged to provide adequate cash to ICICI Bank to meet its customers’ demands. The finance minister also reiterated what the Sebi and RBI said. A High-Level Committee on Capital Markets (HLCC), comprising financial sector regulators and finance ministry officials, will meet in Mumbai today to review the situation in the domestic markets in the wake of the global financial turmoil.
However, on the economic front the situation is not all well. India's current account deficit widened to $10.72bn during Q1FY09, a jump of 70.2%. Higher trade deficit is due to high oil import bills. Surplus of capital account shrunk to $12.96bn from $17.50bn during the quarter. What is worrying is that FIIs withdrew $5.18bn in Q1FY09.
We expect a mixed reaction from the markets to all the news flows today. While we expect a positive opening, we believe volatility would remain.
Technical view
After 6 consecutive sessions of losses, the Sensex finally saw a rally yesterday. Oversold short term indicators viz., Stochastics and Williams %R helped the Sensex recover from the intra-day low of 12153. However, yesterday's rally does not indicate any short or medium term bull phase. Short term traders (mainly those with 4-5 day views) are advised to watch the resistance level of 13170. In case Sensex does close above this level, they can conbisder taking long positions.
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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.
| | Indian News |
Reliance Broadcast Network To Raise Over Rs. 400 Cr., 2 September 2010
Tata Power-Origin Energy-Supraco Consortium Wins Geothermal Bid In Indonesia, 2 September 2010
Cinemax Launches Three-screen Multiplex, 2 September 2010
Koutons Retail To Consider Fund Raising, 2 September 2010
Zylog Systems To Raise Up To Rs.250 Cr, 2 September 2010
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