Indian stock market morning report by Keynote Capitals (June 29, 2009, Monday, 7.00 a.m. GMT)
Views on markets today
- Strong Asian and European markets helped Indian markets to close positive on Friday. Both FIIs and domestic institutions were net buyers and bought banks, IT, capital goods and consumer durables stocks.
- Market breadth was positive at around 1.7x led by the large cap stocks. FIIs and domestic institutions bought equities worth Rs551Cr and Rs333Cr.
- Asian markets are moderately gained today after a choppy session in the US markets on Friday. Markets look directionless in the absence of positive news flow to fuel sentiment of investors. The Nikkei opened weak reacting to economic data release that May industrial output increased less than expected. However, fresh buying helped to recover. The Hang Seng has also recovered after weak initial trades.
- We expect Indian markets to trade higher today following the cues from the Asian markets. Investors continue to build long positions in frontline stocks ahead of the budget early next week. Stocks to see momentum are Suzlon Energy and Tata Motors.
Economic and Corporate Developments
- The rupee (INR) declined today from 48.10/11 on Friday 48.14/15 today.
- NYMEX Crude Oil (CL) is currently trading at $68.77 per barrel.
- Cement prices are expected to soften by Rs3-5 per 50 kg bag next month due to excess supply and lower demand.
- Dewan Housing plans to raise Rs300Cr through placement of shares with QIBs.
Buzzing stocks
- Wockhardt Ltd. has signed an agreement to divest its Animal Healthcare Division to Vetoquinol, France. The division reported net sales of Rs77Cr for year ended December 2008. This is an initiative to divest its non-core business and step towards its continuous growth plan.
- Suzlon Energy in the talks of selling stake in Hansen in early stage. It cut debt by $111mn via buyback exchange mechanism and is looking to delist REpower according to sources. Suzlon's board approved Rs50bn fund raising programme.
Results to be announced today
Gujarat Alkalies, TV18, Dredging Corporation, Apollo Hospitals, Orchid Chemicals
US markets
The Nasdaq rose in choppy trading on Friday on strong demand for Palm's Pre smartphone, while the S&P 500 and the Dow industrials dipped due to a fall in energy shares. However, financial stocks gained. Investors are waiting for June's job report which would be helped in determining whether the recent rally would continue or not. The data would be announced on Thursday instead of Friday this week. Consumer confidence, the Institute for Supply Management's June index on U.S. manufacturing activity, and domestic car sales are among the major indicators on tap.
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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.
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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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