Indian stock market morning report by Keynote Capitals (November 11, 2008, Tuesday, 7.00 a.m. GMT)
Economic and Corporate Developments
- China's inflation cooled to the slowest pace in 17 months, making further interest-rate cuts more likely.
Export orders at the recently concluded Canton Trade Fair in China declined by 17.5% over the fair held this
spring and by 16% from the autumn fair last year.
- Goldman Sachs has cut India’s GDP growth estimate from 9% to 6.7% for FY09 and from 7% to 5.8%
for FY10.
- The rupee opened weaker this morning at 47.65/68 per USD, compared with yesterday's close of 47.35/37,
due to a fall in Asian stock markets.
- As per preliminary data, India’s exports declined by 15% in October, for the first time since 2003. This is
on account of declining demand from the US and European Union.
- Automobile sales in October fell by 14.42%, dragging the overall sales growth of the industry in the first 7
months of the current financial year to 5.64%.
- Larsen & Toubro’s consortium with Scomi Engineering Bhd, Malaysia, has won an order worth Rs2460Cr,
for the prestigious monorail project from the Mumbai Metropolitan Region Development Authority. The
project is to be completed in 30 months.
- Bharat Forge is forming a JV with Alstom to manufacture equipment for power plants. Bharat Forge has in
the meantime deferred its Rs400Cr rights issue due to worsening market conditions.
- IVRCL Infrastructures & Projects has got an irrigation project worth Rs893Cr from the state of Andhra
Pradesh.
- GEI Industrial has bagged orders worth Rs 24.50Cr from the Oil and Gas Sector.
US markets yesterday
The US markets ended down 0.8% on concerns regarding financials and automakers. Bankruptcy of Circuit City
overshadowed news of the massive Chinese bailout package and restructuring of AIG’s government bailout. China
would spend $586bn, equal to 18% of its GDP, in a plan to support its domestic economy and restore global
economic health. The two-year package will target a broad range of industries including housing, infrastructure and
health care. AIG rose 8% on news that its bailout by the US government has been amended, to include an
expansion in aid to $150bn from $123bn and better loan terms. The move is meant to give AIG more time to sell
assets after losing $24.5bn in the 3Q, and stands to reassure investors that the insurance giant will be able to
satisfy its counterparty obligations. Despite the strength in AIG, the financial sector declined by 4.4%, along with
weakness in Goldman Sachs, after Barclays stated that it may post its 1st loss since going public. Goldman had its
4Q earnings estimate cut to a loss of $2.50 per share from a profit of $2.71 at Barclays. The financial market
turmoil and slowdown in consumer spending is taking a toll on retailers. Circuit City filed for Chapter 11 bankruptcy
protection due to stiff competition and financial market disruptions that limited the retailer's access to credit. On a
positive note, McDonald continues to benefit from its relatively low-price offerings. The company said October US
same-store sales increased by 5.4% and global same-store sales rose by 8.2%.
Views on markets today
Asian markets are down today, shedding gains from the previous session, following the weak cues from the US
markets. The worries in the Asian financial stocks are amply highlighted by the revamped bailout deal for insurance
giant AIG. The Nikkei again dropped down to below 9000 levels while the Hang Seng is weak too.
Indian markets were positive yesterday as well. FIIs bought Rs300Cr Nifty futures; however the volumes remain
low. The increase in deliverable volumes of the top 10 traded stocks on both exchanges yesterday (from 17% on
Friday to 37%), is a major positive. However, the Indian economy seems to reflect the global recession. Indian
merchandise exports recorded a dip of 15% in October, for the first time in the last five years. The government
expects the situation to continue or even deteriorate in the coming months. Auto sales recorded a 14.4% fall in
October. Industry expects November and December months would also remain weak.
A few stocks are likely to be under focus today. As per news reports, RIL may miss the projects deadlines by one
month due to credit crisis. Though the delay is marginal, it may increase the bearish sentiments in the stock.
Satyam has announced the acquisition of Motorola's software unit in Malaysia (128 employees). The software
development unit is the part of Motorola's home and networks mobility business and focuses on network
management system development. A consortium of L&T and Malaysian giant Scomi Engineering got the approval
of the country's first monorail project which would be built in Mumbai by mid-2011. In other news, Bharat Forge
defers its Rs400Cr rights issue and plans a Rs400Cr debenture issue. We may see weakness initially in the markets,
following cues from the Asian markets.
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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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