Indian stock market morning report by Keynote Capitals (May 28, 2009, Thursday, 7.00 a.m. GMT)
Views on markets today
- Rally in the global markets and political stability after the announcement of cabinet expansion helped markets gain yesterday. Optimism on the new packages announcement and PSU sell off led to buying in real estate, PSUs, banks and metal stocks.
- Market breadth was strong at around 5x. Both FIIs and domestic institutions were net buyers and bought equities worth Rs360Cr and Rs586Cr respectively.
- Trading volumes on both exchanges improved marginally, while strong rise in the deliverable volumes in top 10 traded stocks indicate buying interest of investors with a medium to long term view.
- In Asia, the Hong Kong and Taiwan markets are closed today. The Nikkei is down due to weakness in exporter stocks. We expect Indian markets to open positive, continuing yesterday's momentum. However, there may be profit taking amid uncertain global events.
Key events today
- Inflation data for the week ended May 16 to be announced today. Inflation for previous week was 0.61%.
Economic and Corporate Developments
- The Indian Rupee (INR) fell close to a 2-week low, to 48.08/09 per USD, well below yesterday's close of 47.70/71.
- NYMEX Crude Oil (CL) is currently trading at $62.94 per barrel.
- Dena Bank has raised Tier-I Capital funds as Perpetual Bonds (IPDI Series II) of Rs125Cr, to augment long term resources and to meet its future Capital Adequacy Ratio requirements, in the nature of Promissory Notes on Private Placement Basis. The Bonds carry a coupon of 9% p.a. payable annually.
- Novartis AG, parent company of Novartis India, is likely to revise its open offer price to buy back an additional stake of up to 39% of equity to increase its shareholding in the Indian subsidiary to 90%. The open offer price is likely to be revised from the earlier Rs 351 to between Rs 425 and Rs 450.
- Godrej Consumer Products (GCPL) has approved the acquisition of 49% stake in Godrej Sara Lee Ltd. and the merger of Godrej ConsumerBiz Pvt. Ltd. and Godrej Hygiene Care Pvt. Ltd. into itself. Godrej Hygiene Care is a 100% subsidiary of Godrej Industries Ltd. Godrej ConsumerBiz Pvt. Ltd. is a 100% subsidiary company of Godrej & Boyce Manufacturing Co. Ltd. Appointed date of the merger will be June 1, 2009. Upon merger, GCPL will issue its 10 shares to the shareholders of GCBPL for every 11 shares and 10 shares to the shareholders of GHCPL for every 11 shares.
Buzzing Stocks
- RIL strikes two more gas reserves in KG basin - May hold 9.5 Trillion cubic feel (Tcf) and 10.8 Tcf of gas reserves respectively.
- IVRCL Infrastructures & Projects has bagged orders worth Rs299Cr from the Bihar Government for construction-related works.
Results to be announced today
L&T, SAIL, M&M, Tata Power, Tata Chemicals, Chennai Petro, Nagarjuna Construction
US markets
The US markets overnight declined 2.1% as negative news from Monsanto and tanking Treasuries applied selling pressures in spite of a surprising upward spike in existing home sales. A spike in Treasury yields spurred concerns that the government's efforts to reduce interest rates would fail. The yield on the benchmark 10-year note rose above 3.7% to a fresh 2009 high.
Downside guidance from Monsanto and news that a $27bn bond exchange offer from GM proved unsuccessful led to some early weakness in stocks. Better-than-expected earnings and forecasts from several retailers helped temper the tone, making for mixed trading in the early going. Stocks moved markedly lower following an auction of 5-year government Notes carrying a 2.3% yield. That sent the benchmark 10-year Note more than one point lower, which pushed its yield above 3.7%.
Economic news
Existing home sales for April came in at an annualized rate of 4.7mn, in line with expectations. There was some disappointment in House Price Index for March, which decreased 1.1% m-o-m. It was expected to increase 0.2%.
Events for the day
- Durable Goods
- Orders
- Jobless claims
- New home sales
- OPEC meet
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Indian stock market and companies daily report (March 19, 2010, Friday)
The Sensex slipped into the red soon after initial gains, hitting a fresh day's low in mid-morning trade. The market recouped its entire losses later. The Sensex hit a fresh intraday low in afternoon trade as Asian stocks fell. The key benchmark indices surged to the day's highs at the fag end of trade after global rating agency Standard & Poor's (S&P) revised India's rating outlook to stable from negative. S&P affirmed the 'BBB-' long-term and 'A-3' short-term sovereign credit ratings on India. Capital goods, FMCG stocks fell. Auto stocks were mixed. Banking and metal stocks rose. Stocks were volatile as traders rolled over positions in the derivatives segment from the March 2010 series to the April 2010 series, ahead of the expiry of the near-month March 2010 contracts on Thursday, 25 March 2010. Both the Sensex and Nifty gained 0.2% and 0.3%, respectively, while the BSE Mid-cap and Small-cap indices also gained 0.4% and 0.1%, respectively.
Indian stock market daily morning report (March 19, 2010, Friday)
The Sensex closed marginally positive, extending its gains for the third successive day yesterday, after global rating agency Standard & Poor's upgraded India's outlook from negative to stable, saying the country's fiscal position could begin to recover and the economy would remain on a strong growth path. Bank, IT and metal stocks supported the market while FMCG and capital goods stocks capped gains.
Indian stock market daily closing report (March 19, 2010)
Market closed positive for fourth consecutive after a side way movement, There was huge buying seen in Telecom stocks like Bharati up by 3.65%, RCom up by 1.98% and Idea up by 2.08%. Market made an intraday High of 5270 and Low of 5237 and finally closed at 5263. The benchmark index Sensex closed at 17,519 up 59 points after making a high of 17,601 and low of 17,502. Among the broader indices - the BSE Midcap Index was up by 0.7% and Smallcap was up .37%. Today's market breadth was positive and Total Turnover was 93,932Cr which was . IT stocks were down today, TCS was down .82% , Financial Technologies was down .56%,Wipro was down .38% and Infosys Technologies was down by .35%.
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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 |
Indian Banking fortnightly report (February 2010), 15 March 2010
Indian Union Budget review 2010-2011, 6 March 2010
Indian Auto Sector Update, 6 March 2010
Indian Economic Survey 2010, 25 February 2010
Indian railway budget 2010 analysis, 24 February 2010
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