Indian stock market morning report by Keynote Capitals (June 24, 2009, Wednesday, 7.00 a.m. GMT)
Views on markets today
- After a weak opening, the Sensex recovered sharply to close flat, supported by oil and gas, PSU and power stocks. However, banks and metals dropped sharply.
- FIIs remained sellers, selling equities worth Rs6.55bn. Domestic institutions supported the markets by buying equities worth Rs3.18bn. Market breadth was negative at around 0.7x.
- Asian markets dropped after a positive opening today. Markets are cautious before the end of Fed meeting today. Energy stocks are up on rising energy prices.
- We expect a positive but a cautious opening for the Indian markets today. The markets may remain volatile on the lack of FII participation before the Fed announcement.
Economic and Corporate Developments
- The rupee (INR) strengthened this morning to 48.42/43 per USD, stronger than yesterday’s close of 48.53/55.
- NYMEX Crude Oil (CL) is currently trading at $68.60 per barrel.
- India has imposed a safeguard duty of 14% on imports of aluminium flat rolled products from China. The duty would be retrospective to March 23 and would be in place till March 22, 2010.
Buzzing Stocks
- Bharati Shipyard is likely to offer a better counter bid for a controlling stake in offshore services firm Great Offshore, compared to rival ABG Shipyard’s offer of Rs375 per share for a 32% stake. Bharati had last month offered Rs344 per share. Bharati has invested Rs2.45bn to acquire about 19.5% in Great Offshore, while ABG Shipyard holds just 2%.
- Idea Cellular plans to raise Rs60bn through a mix of foreign currency and rupee loans for the rollout of services in new circles and strengthening operations in the existing circles in the next two years.
- Firstsource Solutions has bagged a five-year outsourcing deal worth Rs145Cr from Idea Cellular for providing customer management and billing services in Idea’s Kerala and Tamil Nadu circles.
- KEC International has won 3 new orders worth Rs110Cr, one of them in Peru, South America and two in Chattisgarh, India. The company has re-entered South America by a tower supply from order from Peru worth Rs33Cr. In Chhattisgarh, it has bagged 2 orders worth Rs77Cr turnkey transmission line order from the Chhattisgarh State Electric Board.
- In continuation of KS Oils' strategy of acquiring palm plantation assets in South Asia, the company acquired additional 35,000 acres of palm plantation land in Indonesia. With this acquisition, KS Oils' palm plantation land bank assets in Indonesia stand at 85,000 acres with 50,000 acres being acquired in 2008.
Results to be announced today
ONGC, Bharat Electronics, Gateway Distriparks, Navneet Publications
US markets
US markets ended negative yesterday as Boeing pulled down the Dow Jones Industrial Average (DJIA), while Boston Scientific gained on a positive medical study and Starbucks got a boost from bullish investor sentiment.
The markets traded in a tight range, declining slightly early in the session after weaker-than-expected data on the housing market.
Boeing lost 6.5%, as once again it delayed the maiden flight of its 787 Dreamliner, saying an area within the sideof-body section of the aircraft needs to be reinforced.
Boston Scientific after its highly anticipated study, called Madit-CRT, met its main goal by showing devices for heart failure called CRT defibrillators were associated with significant reduction in death or heart-failure interventions when compared with certain traditional defibrillators. Other medical device companies also climbed higher.
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Indian stock market daily morning report (February 08, 2010, Monday)
The Sensex continued its downward trend last Friday, closing below the 16,000 mark on concern over Europe's sovereign debt, indications of weak US jobs data and a fall in commodity and energy prices. Persistent selling pressure was seen across the board and all sectoral indices closed negative with real estate, metals and capital goods stocks were the worst affected. Auto stock also declined after a government-appointed panel recommended additional duty on diesel-powered vehicles. Indian markets were open for a couple of hours last Saturday, for the purpose of software testing. Market breadth was extreme weak at around 0.21x as investors sold large cap stocks. FIIs sold equities worth Rs17.2bn, while domestic institutions bought equities of Rs11.68bn.
Indian stock market and companies daily report (February 08, 2010, Monday)
The NSE and the BSE held a special, 90-minute trading session on February 6, 2010, to enable the NSE to test an upgraded trading system. The benchmark indices jumped during this session, tracking a strong intraday rebound of US stocks on the 5th of February. Metal, realty, infrastructure, IT, auto and banking stocks gained. All the sectoral indices on the BSE were in the green. The BSE Sensex and the NSE Nifty surged by 0.8% each. The BSE Mid-cap and Smallcap indices were up by 1.4% and 1.5%, respectively. Among the front-liners, Hindalco, JP Associates, Sterlite, DLF and Infosys were up by 2-2.4%, while Hero Honda and Bharti Airtel were down by 0-0.2%. In the mid cap segment, Asian Star, United Breweries, Info Edge India, Ipca Labs and Infotech Enterprises were down by 2-4%, while Indraprashtha Gas, Gujarat Gas, Spice Comm., Monsanto India, and Eicher Motors were up by 7-12%.
Indian stock market and companies daily report (February 08, 2010, Monday)
The NSE and the BSE held a special, 90-minute trading session on February 6, 2010, to enable the NSE to test an upgraded trading system. The benchmark indices jumped during this session, tracking a strong intraday rebound of US stocks on the 5th of February. Metal, realty, infrastructure, IT, auto and banking stocks gained. All the sectoral indices on the BSE were in the green. The BSE Sensex and the NSE Nifty surged by 0.8% each. The BSE Mid-cap and Smallcap indices were up by 1.4% and 1.5%, respectively. Among the front-liners, Hindalco, JP Associates, Sterlite, DLF and Infosys were up by 2-2.4%, while Hero Honda and Bharti Airtel were down by 0-0.2%. In the mid cap segment, Asian Star, United Breweries, Info Edge India, Ipca Labs and Infotech Enterprises were down by 2-4%, while Indraprashtha Gas, Gujarat Gas, Spice Comm., Monsanto India, and Eicher Motors were up by 7-12%.
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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 auto sector monthly update (January 2010), 5 February 2010
Indian Banking Report January-February 2010, 4 February 2010
Indian telecom monthly update (December 2009), 3 February 2010
Third quarter review of Indian monetary policy 2009-10, 1 February 2010
Indian Banking fortnightly report (January 2010), 18 January 2010
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