Indian stock market morning report by Keynote Capitals (October 22, 2008, Wednesday, 7.00 a.m. GMT)
Economic and Corporate Developments
- The rupee weakened past 49.30 per USD to a record low of 49.34/50 this morning on expectations of further outflows from local stock market. It had closed at 49.04/06 yesterday.
- Crude oil prices are at $70.07 per barrel, down about 2%.
- The Government and the RBI are looking at further easing of ECB guidelines and FDI norms to enhance overseas fund inflows. On ECBs, the option of putting loans up to $500mn for rupee expenditure by Indian infrastructure companies under the automatic approval route is being considered.
- The steel ministry may provide protection to domestic steel companies by levying a 10% import duty on all grades of steel. It is also likely to suggest re-imposition of 14% countervailing duty (CVD) on bars and structurals (primarily Tor steel) and reduction in excise duty on Tor steel and galvanised products from the present 14% to 8%.
- According to media reports, Norway’s sovereign wealth fund, the world’s second largest, is likely to invest $2bn in Indian stocks upto January 2009. This comes in the wake of net sales by FIIs of about $11bn worth of equity in 2008 YTD.
- As per our sources in the banking industry, some banks have decided to stop fresh disbursements to the cement, steel and real estate sectors, anticipating a major slowdown, and fears of NPAs from these sectors by March 2009.
- In spite of the economic slowdown, India’s cellular telephony sector continues to grow. India added 10mn mobile phone subscribers in September, taking the total subscriber base to 310mn.
- Wipro’s net profit for Q2 grew just 1.2%, missing forecasts. While Wipro has not seen any project cancellations so far, decision making by clients is getting delayed. However, the deal pipeline still looks good, as per the management.
- Hindalco Industries may sell stakes in group companies to raise funds to repay a part of the $3bn bridge loan it obtained to buy Novelis.
- BHEL has bagged an order worth Rs6.4bn for setting up a 412Mw hydro-electric project in Himachal Pradesh.
- According to press reports, ITC is understood to have accumulated losses of Rs700Cr over the past seven years in its food business. The segment which crossed Rs1,000Cr revenue mark in the last financial year, is reportedly losing on an average, Rs60Cr per year.
Results to be announced today
Bajaj Auto, TCS, Wipro, Reliance Infrastructure, Educomp Solutions, Jindal Saw, Cipla, Bank of India, Yes Bank, Sesa Goa, IDFC, 3i Infotech, Neyveli Lignite, Hotel Leela Venture, McDowell Holdings
US markets yesterday
The US markets declined 2.5% with several companies posting quarterly earnings misses and cautious outlook overshadowing signs of improvement in the credit markets. The new plan of the government to boost money market funds and gloomy corporate outlooks kept investors on the edge. Financials closed down 1.8%. Earnings were mixed; of the 77 companies that reported earnings, 52% topped estimates, 35% missed and 13% were inline. Outlooks were cautious of the 49 companies that issued guidance, 45% were negative, 30% were in-line, 21% were mixed and only 3% were positive. In stock specific earnings action, Apple beat market forecasts but gave a weak outlook. Yahoo’s Q3 profit declined 64% and it announced layoffs of 1500 workers and lowered its revenue forecast. Citibank being downgraded and word from billionaire Kurt Kerkorian that he is dumping Ford shares added to downside in the markets.
Views on markets today
A strengthened Yen brought the Japanese markets down this morning. Overnight fall of the US markets also led to negative sentiments in Asian markets. Fears of global recession are mounting. We expect Indian markets to perform in line with their global counterparts and remain negative today. Apart from the weak global cues we may see a profit booking in heavyweight stocks. Domestic institutions have been in the buying mode over the last two days. We expect markets to remain in a cautious state till the announcement of RBI's monetary policy on October 24. We may see a weakness in the Wipro stock. The company issued cautious near term outlook because of deteriorating economic conditions. Tech Mahindra may see some action after its 56% growth in the bottom line. A few major companies are announcing results today which will also drive the market movement. We note that speculative activity in top traded stocks seems to have shifted to the BSE from the NSE. Aggregate deliverable volumes for top 10 stocks (in terms of value of turnover) stood at just 12.6% on the BSE, vis-a-vis 25.4% on the NSE.
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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
Tata Power-Origin Energy-Supraco Consortium Wins Geothermal Bid In Indonesia, 2 September 2010
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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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