Indian stock market morning report by Keynote Capitals (October 27, 2008, Monday, 7.00 a.m. GMT)
Economic and Corporate Developments
- After closing at 49.950/965 per USD on Friday, the rupee again weakened to 50.05/06 this morning.
- OPEC may consider another cut in production due to a glut in the market, says Iran's OPEC governor.
- The recent drop in crude oil prices has brought down the freight rates of goods exported from India to the US and Europe by 30 - 40%. Leading shipping lines operating between India and Europe and the US said freight rates dropped to $700 from $1,000 and $1,600 from $1,900, respectively, for every 20-foot equivalent unit (TEU) in the past two months.
- Unitech will offload a 26-45% stake in telecom biz within a month.
- Era Infrastructure has bagged a Rs199Cr contract for a power project promoted by the BHEL at Bawana in New Delhi.
- KEC International is eyeing orders worth over Rs800Cr in the next quarter, and expects a major chunk to come from the overseas market.
Results to be announced today
State Bank of India, ICICI Bank, TATA Power, Tata Tea, Mahindra and Mahindra Financial, GMR Infra, Tata Teleservices, NMDC, Videocon Industries, Godrej Industries, National Fertilizers, Nagarjuna Cons
US markets last Friday
The US markets ended down 3.6% last Friday, as existing home sales numbers came in better than expected. Global recession concerns continue as Libor continues to come down across all terms, 30-year bond yields hit their lowest level (3.87%) since regular issuance began in 1977, with companies downsizing workforce and giving a weak earnings outlook. CLSA Asia-Pacific Markets, the regional brokerage unit, asked 500 senior bankers and executives to accept pay cuts of as much as 25% next year to avoid getting pink slips. General Motors, the largest US automaker, asked the Treasury Department for financial aid to help complete a merger with Cerberus Capital Management.
Views on markets today
Asian markets extended Friday's slide today as well. The Hang Seng posted a fresh low of 11,960 this morning, while the Nikkei remains volatile. Other Asian indices including Kospi are taking a breather after last week’s sharp decline.
In India, markets will be in Diwali mood this week. The festival remains an important event for Indian corporates. It is a major driver for the retail industry and has historically boosted sales of apparel, white goods, vehicles, etc. However, recent developments give a very poor indication for the medium term for Indian markets. Global recessionary fears, redemption of funds across the world, and huge liquidity-crunch in almost all countries have been pushing the Indian markets to record new lows. On Friday, the Sensex slumped by over 10% to close below the 9000 level.
Major real estate player Unitech's scrip saw a decline of 51% on Friday, after rumors that the company's financial health had been deteriorating and it had defaulted on payments to Greater Noida Authority. However, the company has cleared its stand and asked for a probe into the matter with Sebi. We may see a recovery in the Unitech stock today. Last week, few major companies had declared the above expected financial results which includes NTPC, Tata Steel, Union Bank, Corporation Bank and Sun Pharma. While the capital goods major ABB had recorded poor results (profits 30% below expectations). However, the outlook of all these companies as they are quite vulnerable to interest rate cycle is bleak. Today, the focus would be on banking majors SBI and ICICI Bank and Tata Power who will declare results and outlook about the industry. We may see a volatile day today.
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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.
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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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