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%.
|
|
|
|
| Latest Indian Stock Market Reports |
Indian stock market daily morning report (March 12, 2010, Friday)
Recovery in IT and bank stocks helped the Sensex close positive yesterday. Profit taking was witnessed in auto stocks which capped the gains. Market breadth was weak near about 0.6x. Asian markets are mixed today. While the Nikkei is up, the Hang Seng is trading with a moderate decline.
Indian stock market and companies daily report (March 12, 2010, Friday)
The benchmarks spurted to their highest level in a month and a half, as European stocks and US index futures moved off their early lows. Banking and IT stocks rose, while auto stocks fell. The market was volatile. The Sensex recovered from the lower level in morning trade, after hitting a fresh intraday low. The intraday recovery gathered steam, with the Sensex surging to the day's high. The market pared gains after hitting fresh intraday high in early afternoon trade. The Sensex surged at the end of trade, as European stocks recovered from early lows. The Sensex and the Nifty closed in the green, with gains of 0.4% and 0.3%, respectively. The BSE Mid-cap and Small-cap indices underperformed the benchmark indices and closed with losses of 0.2% and 0.5%, respectively. Among the front-liners, Sun Pharma, Sterlite, Bharti Airtel, Wipro and ICICI Bank were up by 1-3%, while HUL, Hindalco, RCOM, ACC and Tata Power were down by 1-4%. In the mid-cap segment, Core Projects & Technologies, AIA Engineering, Fortis Health, CRISIL and Gammon Infra were up by 4-6%, while Shree Renuka Sugars, National Fertilizers, Indusind Bank, EID Parry, and REI Six Ten were down by 4-6%.
Indian stock market daily morning report (March 11, 2010, Thursday)
Indian markets corrected midway through the trading session yesterday on profit taking in technology stocks. However, a recovery in oil and gas and real estate stocks helped the Sensex to close marginally up. Market breadth was weak at around 0.7x. While FIIs bought equities worth Rs3.6bn and domestic institutions sold equities of Rs3.7bn. Asian markets are trading mixed today, with the Nikkei up and the Hang Seng down. SGX Nifty is trading with a moderate decline.
| |
|
|
| 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 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
Indian auto sector monthly update (January 2010), 5 February 2010
|
|
