Indian stock market morning report by Keynote Capitals (May 29, 2009, Friday, 7.00 a.m. GMT)
Views on markets today
- Indian markets were strong yesterday on FII buying. Metals, PSUs, banks and capital goods stocks witnessed buying.
- Market breadth was positive at 1.7x led by mid and small cap stocks. FIIs bought equities worth Rs1860Cr, while domestic institutions were net sellers of Rs451Cr.
- Trading volumes in the NSE were strong while they declined moderately on the BSE. High trading volumes were supported by good deliverable volumes, especially in counters such as Bharti Airtel, Reliance Industries and SBI.
- Asian markets opened positive today after a positive overnight close of the US markets. After a positive opening the Nikkei corrected sharply on profit taking, while the Hang Seng is strong though volatile. Shipping stocks witnessed a rally after the gains in the key freight index.
- Indian markets may remain upbeat today amid volatility driven by global markets. The markets appear to be cheering the improving economic conditions (inflation rose only 0.1% vis-ŕ-vis previous week's 0.61%) and the Government's sustainability. Declining inflation may help the RBI take a decision on interest rate cuts.
- Rising international prices of crude oil may stoke inflation yet again, and therefore remain a concern.
Economic and Corporate Developments
- The Indian Rupee (INR) is strong this morning, at 47.48/50 per USD, compared to Thursday's close of 47.60/62.
- NYMEX Crude Oil (CL) is currently trading at $64.83 per barrel.
- Japan’s industrial output grew the most in 56 years in April on a rebound in exports. Production rose 5.2% from March, the second monthly gain.
- Japan’s industrial output grew the most in 56 years in April on a rebound in exports. Production rose 5.2% from March, the second monthly gain.
Buzzing Stocks
- Siemens plans to invest Rs2.75bn expansion of its steam turbine making unit in Gujarat. The unit currently makes steam turbines of up to 45 MW. After the expansion, this would increase to 100 MW.
- BOC India, an industrial gas maker plans to invest Rs10bn over the next 3 years to expand its reach in the local market.
- GMR Infra team bags AP highway project.
- Bajaj Electricals' unit, Starlite Lighting will raise its Compact Fluorescent Lamp (CFL) manufacturing capacity from 10mn units p.a. to 40mn involving capex of Rs400mn.
Results to be announced today
BPCL, Tata Motors, Indian Oil, IVRCL Infra, Colgate, Voltas
US markets
The US markets surged by 1.3% on improved treasury market despite dismal news from General Motors and the housing front. General Motors has settled on June 1st as a final date for bankruptcy and home foreclosures climbed to a record high dampening stocks strong upward momentum. Results of the Treasury bond auction eased concerns about government debt.
General Motors made gains early on after it announced that its bondholders accepted an amended debt-for-equity offering. However, it finished with a loss as investors continue to question whether it will be able to avoid bankruptcy. Time Warner finally decided to dump its money losing AOL unit after failing to find bidders for the internet dinosaur. Crude shot up to near a 6-month high of $65 as OPEC left production quotas unchanged and report showed that crude inventories were pared down by 5.413mn barrels last week.
Economic news
New-home sales ticked up 0.3% to a seasonally adjusted rate of 352,000 in April, less than expected. March sales were revised sharply lower.
Initial jobless claims dropped by 13,000 to 623,000 from a slightly revised 636,000, suggesting that the pace of layoffs is slowing. Continuing claims rose to another record around 6.8mn.
Durable goods orders rose 1.9% in April but enthusiasm was tempered by a sharply lower revision for March.
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| Latest Indian Stock Market Reports |
Indian stock market daily morning report (March 18, 2010, Thursday)
The Sensex closed positive yesterday in line with the strong markets as sentiments turned bullish after the US Fed Reserve maintained its pledge to keep interest rates near zero, and pointed to increased momentum in the recovery of the US economy. Metal stocks rose on gains in metal prices on the London Metal Exchange. Infosys Tech and TCS touched all-time highs on improving demand outlook on the back of a recovery in world markets.
Indian stock market and companies daily report (March 18, 2010, Thursday)
The benchmark indices surged in early trade, tracking firm global stocks. Global stocks rose after the US Fed held benchmark rates near zero and maintained its pledge to keep them low for an extended period. However, after hitting its highest level in nearly two months in morning trade, the market trimmed gains in early afternoon trade. The Sensex and the Nifty gained 0.6% and 0.7%, respectively, while the BSE Mid-cap and Small-cap indices gained 0.2% and lost 0.1%, respectively. Among the front-liners, Hindalco, ICICI Bank, TCS, L&T and Sun Pharma were up by 2-3%, while Maruti, HUL, Tata Power and Mahindra & Mahindra were down by 1-2%. In the mid-cap segment, STC, Andrew Yule, HMT, Amtek Auto and Engineers India were up by 5-18%, while Shriram City, MVL, Bannari Amman Sugar, Coromandel Intl, and Shree Renuka were down by 4-6%.
Indian stock market daily morning report (March 17, 2010, Wednesday)
The Sensex closed positive yesterday on the back of the rally in index heavyweights like Reliance Industries and L&T. Buying was seen across all sectors except FMCG and PSU stocks in the last couple of hours of trade. Market breadth was strong at around 1.77x as investors bought large cap stocks. FIIs bought equities worth Rs3.77bn, while domestic institutions sold equities worth Rs1.58bn. The Asian markets are trading positive this morning. The Nikkei is up as the US Fed pledged to keep borrowing costs near zero for an “extended period” and the yen weakened. The Hang Seng is also trading positive.
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| Indian Stocks Recommendations |
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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