Indian stock market morning report by Keynote Capitals (November 7, 2008, Friday, 7.00 a.m. GMT)
Economic and Corporate Developments
- The rupee fell to 47.95/96 per USD this morning, from yesterday’s close of 47.66/69, in anticipation of a
weak opening for stock markets today.
- The European Central Bank (ECB) lowered interest rates by 50 bps to 3.25% for the 2nd time in less than a
month to counter the euro region’s worst economic slump in 15 years.
- Inflation rose marginally to 10.72% for the week ended October 25, from 10.68% a week ago, on account
of higher prices of cereals and vegetables.
- As per a global survey by Goldman Sachs, IT budgets could further decline by 5% in 2009 compared with
2008. The drop is the largest decline since the collapse of the dotcom bubble, when tech spending had
declined by 9% in the US in 2002.
- The proposed changes in FDI guidelines could impact a range of industries such as telecom,
infrastructure, real estate and broadcasting. The changes include measures such as including investments by
non-resident entities in sectoral limits, excluding FII investment from calculations of sectoral equity limits with
caveats and withdrawing key norms in Press Notes 3 (1997) and 9 (1999) on 100% foreign holding
companies and their downstream investments.
- FDI inflows touched $17.1bn between April and September this year, a 137% growth over the same period
last year.
- Bucking the weak industry trend, JSW Steel has reported a 5% growth in Crude Steel Production in October
2008.
- Slowdown in the HCV/MCV segment has begun affecting manufacturers. With the slowdown in demand, key
players like Tata Motors and Ashok Leyland have announced shutdowns at some plants. After announcing a
brief shutdown at its Jamshedpur HCV plant, according to unconfirmed reports, Tata Motors is considering
shutting down its Pune HCV plant too, for 6 days, between Nov.22-27. Ashok Leyland's manufacturing plants,
will work 3 days a week, until December.
- Vishal Retail plans to delay its Rs200Cr fund raising plan via the equity route, on account of the poor market
conditions.
US markets overnight
The US markets declined by 4.9% on economic concerns, weak earnings across a variety of sectors and abysmal
retail sales. Sharply climbing jobless claims continue to reflect weak labor market and retailers reported weak
monthly same-store sales data. Job markets remain loose as claims stand at recession-like levels. Weekly jobless
claims for the week ended Nov. 1 totaled 481,000, down 4,000 from the prior week. Economists await the October
unemployment rate due tomorrow morning. It is expected to show an up tick in unemployment up to 6.3%.
Prospect of a very grim payrolls number fueled the sell off further. With job losses mounting, consumers are less
willing to spend. In turn, retailers viz., Nordstrom, Gap, American Eagle all reported double-digit declines in
October same-store sales. Wholesalers and discounters like Wal-Mart fared better, able to benefit by attracting
cash-strapped shoppers to their stores and reported increased same-store sales for October. Challenging conditions
continue weighing on actual earnings results and earnings expectations for financial companies like Goldman Sachs
which may post its 1st quarterly loss since it went public a decade ago.
Views on markets today
Following the weakness in the US markets, Asian markets too are trading negative this morning. Increasing worries
of the global economic slowdown have pushed global markets to record lows. The Nikkei is weak due to the
strengthened Yen and lower earnings forecast from Toyota Motors. The Hang Seng too showed strength after
recording a bottom close to 13200 levels and is trading at 13700 levels. The global slowdown is mirroring in the
decline in crude prices which have reached $60/barrel levels. As expected, Bank of England and European Central
Bank reduced interest rates by 150bps and 50bps respectively.
Indian markets have witnessed a sharp decline towards the close of yesterday's session, due to higher inflation
number. However, economists and analysts expect the number to come down to a single digit over next two
weeks. However, the deliverable volumes (as % of total volumes) for the top 10 stocks by turnover remain low on
both exchanges (16.2% for NSE and 11.1% for BSE), indicating high speculative activity. The data shows the
extent of intra-day trading. After buying over last two days, FIIs were net sellers of Rs966Cr in the Nifty futures
yesterday. As per provisional data from both the stock exchanges, FIIs sold equities of Rs512Cr yesterday while
domestic institutes bought equities of Rs351Cr.
For last two days, a few corporates have declared postponing expansion plans or reduction in production. Tata
Motors would shut down its plant for 6 days while Ashok Leyland will operate its plant for 3 days a week. Videocon
has postponed its DTH launch. To infuse the liquidity in the system PSU banks have started reducing their interest
rates. However, private banks particularly ICICI Bank and HDFC Bank have yet to arrive at any decision on interest
cuts. We may see a weak initial trading amidst huge volatility.
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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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