Indian stock market morning report by Keynote Capitals (November 10, 2008, Monday, 7.00 a.m. GMT)
Economic and Corporate Developments
- Orders for Cisco Systems’ computer networking equipment fell abruptly in October. The fourth quarter could
be even more disappointing as businesses are cutting back spending by putting off equipment purchases and
upgrades and laying off workers. Even software, considered a safer bet, will likely take a hit. Technology
makes up a big chunk of corporate spending. Of the total spend of US businesses on fixed investments, incl.
offices and factories, about 28% goes to computer and communications equipment and software. Products
that require capital spending, such as routers, switches and computers, are expected to suffer first. This
could mean bad news for IT companies in India, since the US accounts for most of their customer base.
- As per RBI data, bank loans in India grew by 29% y-o-y in the two weeks to October 24, while deposits were
up 21%. Non-food credit rose by Rs8277Cr to Rs25660Cr, while food credit fell by Rs640Cr to Rs48255Cr.
- India’s infrastructure sector grew 5.1% in September 2008, the fastest pace in the current financial year,
helped by higher coal and cement production. Though lower than 5.8% growth in September 2007, it is
higher than last month’s 2.7%.
- Elder Pharmaceuticals has entered into an agreement with Daiwa Pharmaceuticals Co. Ltd., Japan, for
manufacturing and marketing of some of Daiwa’s products in India. Daiwa Pharma specializes in health
supplements and functional foods. Elder Pharma proposes to initially launch "IMBRAN", a novel nutritional
supplement for immunity enhancement, in the Indian market.
- Blue Dart Express plans a capex of Rs100Cr in FY10, compared with Rs200Cr capex plan for FY09. It has a
capex plan of Rs1000Cr over 5-7 years, to be raised through internal accruals. About 60% will be spent on
aviation services and the rest on infrastructure facilities and technological upgradation. It plans to induct a
Boeing 757 on lease this year, which will take its total fleet size to seven aircraft. It is adding 58 domestic
facilities including warehouses and operating centres, to its existing 282 in 2009. The firm, which has a 42%
market share in the domestic logistics space, has seen a slowdown in certain verticals including automotive,
telecoms and IT on account of a global financial crisis. While volumes have not been affected, volume growth
may be impacted on y-o-y basis.
- Aurobindo Pharma has obtained final approval from the US FDA to make and market a 20 mg dose of
Sertraline Hydrochloride.
- C&C Constructions plans to diversify into construction of power transmission towers as a part of its future
growth plan. It is a major player in road-building and water pipelines with over Rs 2,100Cr worth of projects
under execution. It is eyeing to reach Rs1,500Cr turnover by FY10.
US markets last Friday
The US markets ended up 2.9% last Friday in spite of the worst unemployment figures in 14 years and a scream
for help from General Motors. The auto giant stated that it may not have enough cash to make it to the end of the
year without federal assistance. The President of Automotive Consulting Group said that if the government doesn't
step in, the entire US auto industry may die. Ford Motor posted 3Q operating loss of $2.98bn and said that it would
cut staff and capital spending to preserve its dwindling cash. That the market rallied on such bad news indicated it
had already accounted for it in prior two sessions when it fell 10%. President-Elect Obama in his 1st press
conference, summarized 4 initiatives he would pursue immediately upon entering office in January (1) rescue plan
for the middle class that would include a new fiscal stimulus package, which will be his first priority (2) working to
stem the spread of the impact of the crisis on other sectors of economy (3) reviewing current administration's
implementation of the financial program and (4) laying out policies that grow the middle class and strengthen
economy for the long term. Libor that banks charge each other for three-month loans in dollars dropped 10bps to
2.29%, the lowest level since November 2004.
Views on markets today
China rescue package of $586bn for its economy has acted as a stimulus for other Asian markets. The major Asian
indices have opened up with a gap today. However, the Hang Seng has witnessed some profit booking at higher
levels. Crude prices also reacted positively on the news and jumped up by around $3/barrel to touch $64 levels.
Back home, Indian markets saw buying in large cap counters on Friday. However, mid and small cap stocks have
not been showing movement. For A group stocks, A/D ratio was almost 3 times in favor of advances. Both FIIs and
MFs remained net sellers. Friday's rally was backed by weak volumes which is a major concern. Trading volumes
had declined from Rs110bn on NSE and Rs40bn on BSE to Rs92bn and Rs35bn respectively. Deliverable volumes
on top 10 stocks had also remained weak at 17.2% on NSE and 12% on BSE on Friday. Specific to stocks, we may
see momentum in pharma stocks particularly Ranbaxy, Sun Pharma, Aurobindo Pharma and Elder Pharma. The RBI
has rejected the application of early redemption of FCCBs of Ranbaxy. Sun Pharma's offer to buy outstanding Taro
shares has been extended from November 7 to December 19, while Aurobindo Pharma got the US nod to make, market depressive disorder drug. We expect Indian markets to follow the Asian markets and trade in the positive
initially. However, profit booking on the higher levels cannot be ruled out.
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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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