Indian stock market morning report by Keynote Capitals (October 14, 2008, Tuesday, 7.00 a.m. GMT)
Economic and Corporate Developments
- The rupee continues to gain. It rose from Monday's close of 48.25/27 to 47.80 per dollar this morning, on rallies in overseas stock markets.
- Foreign direct investment (FDI) in India rose 124% to $14.6bn in the April-August period and is likely to exceed $35bn in FY09.
- India’s exports are likely to grow by 30% this month, in line with the growth in the year till date.
- Sanity may soon return to the beleaguered domestic aviation sector. Jet Airways and Kingfisher Airlines, with a collective market share of over 58% have announced a strategic alliance to reduce costs and enhance efficiencies. It will involve code-sharing on all flights, an interline agreement, joint fuel management, common ground-handling services and cross-selling flights through the global ticketing system.
- TCS has signed a Rs1000Cr deal with Ministry of External Affairs for the “Passport Seva Project”. It will get Rs199 as fees per passport. Last year, the Government issued 50Lakh new passports and it targets to issue 1Cr passports per year by 2011.
- Reliance Communications, India's No. 2 mobile operator, added 1.76mn mobile subscribers in September, taking its total mobile user base to around 56mn.
- Tata Motors has denied being in talks to buy Ford's stake in Japan's Mazda Motor Co.
- Axis Bank reported a 77% rise in Q2 net profit to Rs402.91Cr. Total income went up by 57.3% to Rs3239.45Cr.
- Redington (India) and Investcorp Gulf Opportunity Fund Company 1.BSC (Investcorp), a PE investor, have concluded an agreement whereby Investcorp will invest $98mn for a 36% stake in Redington's Middle East and Africa (MEA) business. This values its MEA business at $272mn. The transaction is likely to get completed by November.
- Leading transformer manufacturer Emco and South Africa’s Edison Corp will jointly invest $20mn in a joint venture to manufacture transformers.
- Oil India has deferred launch of its IPO due to volatile markets.
- Andhra Pradesh Paper is in process of implementing a Rs291Cr expansion plan. Its installed capacity will increase from 180,000 tpa to 250,000 tpa.
Results to be announced today
NDTV, Jubilant Organosys, South Indian Bank, Birla Power Solutions, Sonata Software
US markets overnight
The US markets rebounded from their worst week ever with one of their best performance - the Dow Jones Industrials ending up 11.1% as investors cheered the government’s plan to buy stakes in banks and Fed led push to flood global financial system with dollars. US treasury will invest $125bn in nine of the biggest US banks including Citigroup and Goldman in government's latest attempt to restore confidence in the financial system. The Fed gave its approval to takeover of Wachovia Corp by Wells Fargo, which battled Citigroup for ownership of the wounded bank. Morgan Stanley agreed to change terms of its $9bn investment from Mitsubishi UFJ Financial Group, providing the Japanese bank with preferred stock paying 10% dividend instead of common stock. The financial sector rose 10.2%, with investment banking and brokerage sector up 26.8%. A clearer picture will emerge, about how credit markets will react to these measures, when banks and treasury markets re-open later today (they were closed on Monday in observance of Columbus Day). The US is expected to outline a comprehensive plan of its own as soon as today, and is likely to include inter-bank lending, bank debt guarantees and direct capital injections in financial institutions.
Views on markets today
Asian markets predictably opened strong this morning, following the rally in US stocks overnight. The Nikkei gained 13% this morning, boosted by from international government measures to pour cash into struggling banks and restore confidence in the global financial system. Following the government interventions across continents, the market slide seems to have been reversed for the moment. However, back home the picture is clearly not rosy, as evident from the weak growth in IIP. The September quarter results will be keenly watched by market players to decide on trading strategies. As for today, we expect the domestic markets to have strong opening, though some profit-taking is likely in the later part of the trading session.
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Indian stock market daily morning report (February 09, 2010, Tuesday)
The Sensex bounced back from the early slide yesterday, closing with marginal gains. The Government’s forecast that the economy would grow by 7.2% this fiscal year, reinforcing expectations of strong industrial growth, along with positive European markets helped markets recover. Most of the buying was seen in capital goods, banking and real estate stocks, whereas metal and auto stocks witnessed selling pressure. Market breadth was marginally weak at around 0.92x. FIIs sold equities worth Rs9.35bn, while domestic institutions bought equities of Rs3.8bn.
Indian stock market and companies daily report (February 09, 2010, Tuesday)
The benchmark indices logged marginal gains after swinging sharply in highly volatile trade. IT stocks played the lead role in the recovery; however, metal pivotals remained subdued, as metal prices fell on the LMEX. Telecom stocks advanced on bargain hunting. Rate-sensitive banking shares recovered from the day's low, while auto stocks were mixed. The BSE Sensex and the NSE Nifty rose by a marginal 0.1% each. The BSE Mid-cap and Small-cap indices were down by 0.1% each. Among the front-liners, Bharti Airtel, RCOM, ONGC, HLL and M&M were up by 2-3%, while Tata Steel, Hindalco, Wipro, Jaiprakash Associates and NTPC were down by 1-4%. In the mid-cap segment Chambal Fertilisers, Nagarjuna Fertilisers, Core Projects, Kansai Nerolac, Procter & Gamble were up by 5-7%, while Indraprashtha Gas, Gujarat NRE Coke, Torrent Pharma, Spice Communications and REI Agro, were down by 4-9%
Indian stock market daily morning report (February 08, 2010, Monday)
The Sensex continued its downward trend last Friday, closing below the 16,000 mark on concern over Europe's sovereign debt, indications of weak US jobs data and a fall in commodity and energy prices. Persistent selling pressure was seen across the board and all sectoral indices closed negative with real estate, metals and capital goods stocks were the worst affected. Auto stock also declined after a government-appointed panel recommended additional duty on diesel-powered vehicles. Indian markets were open for a couple of hours last Saturday, for the purpose of software testing. Market breadth was extreme weak at around 0.21x as investors sold large cap stocks. FIIs sold equities worth Rs17.2bn, while domestic institutions bought equities of Rs11.68bn.
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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 |
Indian auto sector monthly update (January 2010), 5 February 2010
Indian Banking Report January-February 2010, 4 February 2010
Indian telecom monthly update (December 2009), 3 February 2010
Third quarter review of Indian monetary policy 2009-10, 1 February 2010
Indian Banking fortnightly report (January 2010), 18 January 2010
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