Indian stock market morning report by Keynote Capitals (June 22, 2009, Monday, 7.00 a.m. GMT)
Views on markets today
- Led by buying from domestic institutions, Indian markets closed up on Friday. However, FIIs remained net sellers, which fueled volatility. Capital goods, metals and real estate stocks recovered after the weakness over the last few days.
- Market breadth was tight at 1x. FIIs sold equities worth Rs29Cr while domestic institutions bought equities of Rs413Cr. Trading volumes on both exchanges weakened on Friday, it being the last day of the week. Traders avoided taking fresh positions. Deliverable volumes for the top 10 traded stocks weakened on both exchanges, led by weak deliverable volumes in real estate and infrastructure stocks.
- Asian markets opened strong this morning, but remained cautious ahead of the US Fed meeting tomorrow and and Wednesday. Markets are awaiting the Fed's views on economic outlook and interest rates.
- We expect a cautious but positive opening for the Indian markets tracking the Asian markets. Markets may remain range-bound but volatilite due to lack of immediate triggers and FII selling. Domestic institutions have however been buying, which is a positive for the markets.
Economic and Corporate Developments
- The Indian Rupee (INR) latest quote 48.07 per USD.
- NYMEX Crude Oil (CL) is currently trading at $69.26 per barrel.
- The World Bank has warned that prospects for the global economy remain unusually uncertain despite recent signs of improvement in parts of the world and cut its 2009 growth forecasts for most economies.
Buzzing Stocks
- SBI has approved the proposal to acquire State Bank of Indore subject to approval by the RBI and the Government of India.
- Rolta India has $150mn outstanding FCCBs due 2012 convertible into ordinary shares each at par value of Rs10. The company intends to repurchase for cash, the aggregate principal amount of the outstanding bonds.
- Ess Dee Aluminium plans to pump in nearly Rs2bn, to add nearly 60,000 tonnes of aluminium packaging foils manufacturing capacity at its Hoera unit.
- Emami Group has decided to bring its FMCG business under group flagship Emami and realty business under a separate company Emami Infrastructure, with a view to consolidate its FMCG and realty businesses.
Results to be announced today
Ansal Properties & Infrastructure, Gujarat Industries Power, Adhunik Metaliks
US markets last Friday
The US markets spent the morning in positive territory until the weight of falling oil and general expiration day volatility shoved the index into the red 0.2% at its close. There was no economic indicator news, so markets focused on company news. Financial stocks and tech stocks showed leadership in this session's late advance. Financial stocks actually fell to a loss in the early going, but pushed higher to finish with a 1.7% gain, better than any other major sector. Blackstone Group was a standout after it was reported that China Investment Corporation is poised to invest $500mn in a hedge fund unit of the investment services company. Bank regulators closed 3 small banks on Friday, bringing total bank failures to 40 this year as the recession and delinquent loans erode the health of financial institutions. The failure is expected to cost the FDIC deposit insurance fund an estimated $217mn. The CRB Commodity Index was also unable to make headway; the CRB fell 1.6%, giving it a weekly loss of 3.6%.
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Indian stock market and companies daily report (March 22, 2010, Friday)
The Indian indices opened marginally positive but maintained a trend of directionless trade, as they gyrated in a narrow band for most of the session. Volatility ruled the roost until mid-session, as the markets traded with minor, updown swings, although they sustained in the green. The markets slipped in the red in the final session, but a sharp recovery, led by benchmark heavyweight Reliance Industries, helped the indices close at their day’s highs. Both the Sensex and the Nifty gained 0.3% each, while the BSE Mid-cap and Small-cap indices registered gains of 0.1% and 0.4%, respectively. Among the front-liners, Bharti Airtel, RCom, Hero Honda, SBI and HUL were up by 1-4%, while HDFC, DLF, M&M, TCS, and ICICI Bank were down by 1-2%. In the mid-cap segment, Kirloskar Oil, United Breweries Holding, HSBC Investdirect, Deccan Chronicle and Apollo Tyres were up by 5-8%, while Motilal Oswal, Novartis, Carborundum, REI Six Ten Retail and IBREL were down by 3-5%.
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.
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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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