Indian stock market morning report by Keynote Capitals (October 15, 2008, Wednesday, 7.00 a.m. GMT)
Economic and Corporate Developments
- The rupee fell sharply this morning to 48.40 per USD, from yesterday’s close of 48.04/06, due to the fall in Asian markets, which is likely to depress local markets today.
- In order to enable companies to raise funds easily from overseas markets, India is likely to further relax pricing rules for ADRs and GDRs. The government is also considering further relaxation in the overseas borrowing rules for companies, as part of efforts to improve the liquidity crunch in the domestic market.
- Tata Motors’s UK subsidiary, Tata Motors European Technical Centre Plc, has bought a 50.3% stake in Norwegian electric vehicle firm Miljoe Grenland/Innovasjon for Rs9.4Cr ($2mn). The Norwegian firm will produce electric vehicles based on Tata Motors's products. The first product to be launched is the Indica EV in Europe during 2009.
- Spot prices of steel shot up by Rs 1,500 per tonne in Punjab’s Gobindgarh mandi, India’s largest ferrous metalsselling market yard, in the last two days on news of global production cuts and a sudden spurt in construction sector demand. However, JSW Steel is likely to cut product prices by the end of the month, but has no plans to cut production.
- The Rs1100Cr buyback programme of DLF, which was supposed to open today, is being rescheduled to comply with some regulatory requirements
- Hindustan Construction Company (HCC) has claimed equity valuation of its subsidiary Lavasa Corporation (Lavasa) at Rs10000 Cr, based on Bank of India’s investment of Rs150Cr in Lavasa in the form of Convertible Debentures.
- Promoters of Nagarjuna Constructions have raised their stake to 24.16% by acquiring close to 1.2mn shares.
- Reliance Capital has acquired a 15% stake in Hong Kong Mercantile Exchange.
Results to be announced today
L&T, HCL Tech, CMC, Container Corporation of India, ICSA India, Kavveri Telecom, Kingfisher Airlines
US markets overnight
The US markets ended down 0.8% after the government's latest financial relief efforts were offset over fears that the economy still faces challenges. The US treasury announced $250bn will be spent from $US700bn rescue package to buy shares in banks and financial firms. To participate in the program, financial institutions will have to agree to executive compensation limits, including elimination of golden parachutes. Participation is voluntary, though it appears that firms will be taking the Treasury up on its offer. To begin with nine of the largest financial institutions in the world will receive $125bn, including Bank of America, Citigroup, Goldman Sachs, Merrill Lynch, State Street, JP Morgan Chase, Morgan Stanley, Wells Fargo and Bank of New York Mellon. With this relief plan, the financial sector gained 6.4%. In addition, FDIC will guarantee newly issued unsecured debt from banks through June 30, 2012. Credit markets showed signs of improvement, although they remained tight. Dollar Libor, the rate banks charge each other for short-term loans fell. TED Spread fell by 21bps to 4.36%. Earnings were mixed as Johnson & Johnson posted 3Q earnings growth while PepsiCo reported lower-than-expected EPS growth.
Views on markets today
Following cues from the US markets, Asian markets opened weak today. Fresh worries of a slowing global economy have impacted stocks of shipping companies and exporters in Asian markets. While the Nikkei is volatile, the Hang Seng recorded a sharp drop early in the session. Back home, bear dominance is seen rising again. Yesterday the market rally could not sustain, and the Sensex ended up losing a large part of the gains. Increasing recessionary pressures and the liquidity crisis are becoming major issues for the RBI and government. In a major development, RBI has introduced a special liquidity window of Rs20,000Cr to tide over the unprecedented liquidity crisis. It has relaxed the borrowing norms for some funds that have seen huge redemptions in the past few days. It is estimated that recent redemptions from liquid and liquid plus schemes amount to Rs30,000Cr. We may see weakness in the markets today following global cues.
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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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