Indian stock market morning report by Keynote Capitals (November 12, 2008, Wednesday, 7.00 a.m. GMT)
Economic and Corporate Developments
- The rupee weakened to 48.58/48.68 per USD this morning, from yesterday's close of 48.1250/1400 on weak
Asian stock markets.
- NYMEX crude oil is trading at $58.95 per barrel, an 18-month low.
- Fund raising by Indian companies via foreign currency syndicated loans has declined by a 46% to around
$13bn in the first nine months of this calendar year. The average syndicated loan deal size in India has come
down from around $375m in FY 2007, to around $300m in the first nine months of the calendar year. Also,
the tenor of syndicated loans has become shorter, from 8-10 years earlier, to 3-5 years.
- The FIPB has clarified that foreign JVs in the construction and development business will not be allowed to
sell undeveloped land they acquire for projects. The ambit of this clarification includes foreign joint ventures
in housing, commercial premises, townships, resorts, educational institutions, and city and regional
townships.
- The Sebi has confirmed that it will make early withdrawals from Fixed Maturity Plans (FMPs) tougher, a move
that is expected to solve mutual funds’ liquidity problems.
- Reduction in excise duties and customs duties by 8.7% and 0.9% in October amply reflects the industrial
slowdown and is a major cause for concern.
- Real estate bodies National Real Estate Development Council (Naredco) and Confederation of Real Estate
Developers’ Associations of India (Credai) have petitioned the Government to ease FDI and external
commercial borrowing norms and formulate a policy for rescheduling of term or construction loans to
facilitate the roll-over of existing debt.
- Iron ore exports dipped by 39.4%, while between July and October, iron ore exports dropped by more
than 22%y-o-y.
- NTT DoCoMo of Japan will buy a 26% stake Tata Teleservices for JPY260bn ($2.7bn).
- Zydus Cadila has acquired Italy-based Etna Biotech, the wholly-owned subsidiary of Dutch biopharma
company Crucell.
US markets
The US markets ended down 2.0% as economic fears and concerns over corporate earnings overshadowed news
of a government plan to help prevent foreclosures. Government outlined a new mortgage modification plan for
loans held by Fannie Mae and Freddie Mac. The program targets the highest risk borrower who has missed three
payments or more, owns and occupies the property as a primary residence and has not filed for bankruptcy. The
borrower's loan payment will then be modified to be affordable. Citigroup announced a plan to prevent
foreclosures, which includes modification of mortgage terms for a group of 500,000 homeowners. American
Express won US Fed approval to become a commercial bank, gaining access to government funds as credit-card
defaults climb with economies slowing around the world. US taxpayers, who feel they own a stake in Wall Street
after funding a $700bn bailout for industry, want executives' bonuses to be eliminated. GM and Ford fell as traders
continue to speculate if automakers will have enough cash to make it through the economic downturn.
Views on markets today
- Asian markets are trading weak today, due to the fall in energy stocks due to declining crude prices and weak
sentiments in auto stocks.
- Indian markets reported 6.6% decline yesterday after the selloff by FIIs. FIIs were net sellers of equities worth
Rs371Cr yesterday, as per provisional data from the BSE and NSE.
- While volumes remained weak, the top traded 10 stocks on BSE and NSE witnessed strong delivery based
volumes. However, Suzlon on NSE and Jaiprakaksh Associates accounted for a large part of deliverable volumes.
- The economy is witnessing recessionary pressures, which is reflecting in the weak indirect taxes collection
numbers in October, as elaborated earlier in this note.
- Stocks in news - Fitch has cut down Unitech's rating from A+ to A- and revised the outlook for Tata Steel from
stable to negative.
- Jet Airways plans to sell 10% stake to Temasek for Rs250Cr.
- Dabur to buy Fem Care for Rs300Cr.
- IDBI in talks to buy 25% stake in GE Arm.
- StanChart buys Rs750cr property in BKC (almost 33% discount to 1 year price) reflects the slowdown in the real
estate sector.
- We expect markets to remain volatile with a negative bias due to weak global markets. The major event is IIP
numbers, to be announced later today.
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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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