Indian stock market morning report by Keynote Capitals (June 26, 2009, Friday, 7.00 a.m. GMT)
Views on markets today
- Amid high volatility, the Sensex dropped 0.5% yesterday, on the weak opening of the European markets. Auto, oil and gas and PSU stocks saw major declines, while real estate and bank stocks rallied.
- Market breadth was tight but positive at 1.2x led by the decline in large cap stocks. FIIs sold equities worth Rs15bn, while domestic institutions were net buyers of equities of Rs11bn yesterday. NSE trading volumes went up sharply yesterday from Rs179bn to Rs236bn while BSE volumes remained flat. Deliverable volumes on both exchanges increased. Reliance Industries and ICICI Banks witnessed strength in deliverable volumes, while for Reliance Capital Educomp and Reliance Natural Resources the deliverable volumes remained weak.
- Asian markets rose today supported by increase in commodity prices amid hopes of a recovery in the US economy. Oil stocks led the rally. However, investor caution about future negative news flow capped the gains.
- We expect Indian markets to open cautious but though with a positive bias. Volatility will continue, as FIIs are seen paring positions over the last few days; volumes will be lacklusture today being the last day of the week. However, a below-normal monsoon and spiralling crude oil prices may keep investor sentiments depressed.
Economic and Corporate Developments
- The rupee (INR) strengthened this morning to 48.5250/5350 per USD, compared with yesterday's close of 48.595/605.
- NYMEX Crude Oil (CL) is currently trading at $70.68 per barrel.
- India's monsoon rains for the week ended June 24 were 68 percent below normal
- India's WPI-based inflation reported a negative growth of 1.14% for the week ended to June 13, compared with the previous week's negative growth of 1.61%.
Buzzing stocks
- Tata Steel may see momentum on poor Q4 results; it also said recession was deeper than it expected and may cut over 2000 jobs in Corus.
- Tata Communications has won $1.5bn contract with British Telecom. The contract is to be executed over a 5 year period. Oil stocks may see investor interest as the government is working on the flexible pricing reported by media.
- Suzlon Energy bond holders approve amendments to existing bonds
- UB Group investment plan hits FIPB roadblock, revenue department objects to foreign loans through Mallya’s mother’s firm
- US advocacy group raises objections to Walmart importing drugs from Ranbaxy
- GAIL okays Rs75bn investment on laying gas pipelines in southern India
- IVRCL Infrastructure denies reports of divesting stake in 3 BOT road projects to PE investors
- Idea Cellular to meet creditors today for tower operations demerger
Results to be announced today
BEML, Deccan Chronicle, Glenmark Pharma, Spicejet
US markets
The US markets opened lower after weekly jobless claims came in higher than expected. But strong demand for another treasury auction boosted confidence and US markets rebounded, ending in green 2.1%. A successful Treasury Auction of $27bn of 7 year notes further bolstered the optimism. Good set of corporate earnings too helped the markets to bounce back. Stocks soared today led by retailers and commodity shares as Ben Bernanke launched a strong defense of misconduct allegations from several lawmakers. Financials lagged for most of the session and even traded with a modest loss early on, but spiked into the close to finish with a 1.7% gain.
Economic news
- Initial jobless claims for the week ending June 13 jumped by 15,000 to 627,000 last week, higher than the expected 6,00,000.
- Continuing claims crept up to 6.74mn, though that is still off of its record high, it exceeded forecasts.
- 1Q GDP showed a 5.5% annualized decline, which is a slight improvement from the 5.7% annualized decline that was previously reported.
Economic data to be released today
- Consumer Sentiment
- Personal Income and Outlays
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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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