Indian stock market morning report by Keynote Capitals (July 2, 2009, Thursday, 7.00 a.m. GMT)

Date: 2 July 2009

Views on markets today

- Indian markets were positive yesterday led by FII buying.

- Market breadth was 0.95x. FIIs bought equities worth Rs185Cr while domestic institutions sold Rs75Cr.

- Trading volumes remain subdued before Union Budget as traders lacked conviction to put big trades.

- Asian markets are trading mixed. Nikkei opened flat as caution set in ahead of US jobs data. Hitachi Ltd jumped on report that it will boost production of lithium ion batteries for hybrid cars. Hang Seng opened up helped by manufacturing data from US and talk of strong growth in new lending in the mainland in June.

- Indian markets may remain positive today on back of global cues.

Economic and Corporate Developments

- The rupee (INR) latest quote: 47.88 per USD

- NYMEX Crude Oil (CL) is currently trading at $69.19 per barrel.

- The government has raised petrol price by Rs4 per litre and diesel by Rs2 per litre.

- The government has allowed developers of SEZs to raise overseas debt for building infrastructure facilitieswithin the zones.

Buzzing stocks

- SAIL has entered into an agreement with two defence construction agencies, Military Engineering Services and Married Accommodation Project, for supply of at least 3 lakh tonnes of steel items estimated at Rs100Cr.

- Punj Lloyd, through its subsidiary, Sembawang Engineers and Constructors has bagged an Rs1,263Cr order to construct two key stations in Singapore. After this, the total value of unexecuted orders for the Punj Lloyd group on a consolidated basis is stands at Rs22,066Cr.

- Nagarjuna Construction has bagged four orders worth Rs797Cr for construction-related works.

US markets
The US markets ended slightly up 0.7% on positive economic data from manufacturing and pending home sales. However, stocks closed well off their highs of the day as traders took profits in anticipation of the July 4th holiday weekend. The CBOE volatility index dropped below 25 for the first time since September 2008, just before the collapse of Lehman Brothers. It however ended at 26.22. Financial stocks were some of the session's worstperformers. US markets will be closed on Friday in observance of Independence Day.

Economic data

- June ISM manufacturing index rose to 44.8 from 42.8 in May, slightly higher than expected. However, it means that manufacturing activity continues to contract since the Index is below 50.

- ADP employment change report showed more than-expected job losses for June at 473,000 jobs.

- Pending home sales for May increased just 0.1% month-over-month. They were expected to be flat after spiking 7.1% the month before.

- Construction spending during May fell 0.9% month-over-month and missed expectations.

Key events today
- Jobless Claims
- Factory Orders
- Employment Situation

Latest Indian Stock Market Reports

Indian stock market daily morning report (February 09, 2010, Tuesday)
The Sensex bounced back from the early slide yesterday, closing with marginal gains. The Government’s forecast that the economy would grow by 7.2% this fiscal year, reinforcing expectations of strong industrial growth, along with positive European markets helped markets recover. Most of the buying was seen in capital goods, banking and real estate stocks, whereas metal and auto stocks witnessed selling pressure. Market breadth was marginally weak at around 0.92x. FIIs sold equities worth Rs9.35bn, while domestic institutions bought equities of Rs3.8bn.

Indian stock market and companies daily report (February 09, 2010, Tuesday)
The benchmark indices logged marginal gains after swinging sharply in highly volatile trade. IT stocks played the lead role in the recovery; however, metal pivotals remained subdued, as metal prices fell on the LMEX. Telecom stocks advanced on bargain hunting. Rate-sensitive banking shares recovered from the day's low, while auto stocks were mixed. The BSE Sensex and the NSE Nifty rose by a marginal 0.1% each. The BSE Mid-cap and Small-cap indices were down by 0.1% each. Among the front-liners, Bharti Airtel, RCOM, ONGC, HLL and M&M were up by 2-3%, while Tata Steel, Hindalco, Wipro, Jaiprakash Associates and NTPC were down by 1-4%. In the mid-cap segment Chambal Fertilisers, Nagarjuna Fertilisers, Core Projects, Kansai Nerolac, Procter & Gamble were up by 5-7%, while Indraprashtha Gas, Gujarat NRE Coke, Torrent Pharma, Spice Communications and REI Agro, were down by 4-9%

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 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 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

Stock Market News: All News | USA News | Indian News | China News

Stock Market Reports: All Stock Reports | USA Stock Market Reports | Indian Stock Market Reports | China Stock Market Reports | Russian Stock Market Reports

About Us | Privacy Policy | Contacts | Links