Search Now

Recommendations

Thursday, August 08, 2013

Coal India - Great Valuations


Coal India - Great Valuations

Bharti Airtel - Recovery


Bharti Airtel - Recovery

Bharti Airtel


Bharti Airtel

Prestige Estates


Prestige Estates

India Telecom


India Telecom

PNB


PNB

HCL Technologies


HCL Technologies

Spicejet


Spicejet

Coal India


Coal India

Reliance Infrastructure


Reliance Infrastructure

BHEL, GRASIM, COAL, IDFC, GAIL, BOI, JUSTDIAL, JUBIFOOD, GCPL, KKC, GNPP, POWERGRID, India Pharma, TITAN, TATAGLOBAL, IDFC, Asian EQ, AMD


 BHEL, GRASIM, COAL, IDFC, GAIL, BOI, JUSTDIAL, JUBIFOOD, GCPL, KKC, GNPP, POWERGRID, India Pharma, TITAN, TATAGLOBAL, IDFC, Asian EQ, AMD

Sanofi India


Sanofi India

Sun TV


Sun TV

Godrej Consumer Products, Tata Power, Crompton Greaves, SpiceJet; Updates - PFC, Technology


Godrej Consumer Products, Tata Power, Crompton Greaves, SpiceJet; Updates - PFC, Technology

IPCA - Initiaton - BHEL- Cummins- Oil & Gas - Pharmaceuticals- Monthly- Equity Strategy- Coal India- Power Utilities & Coal- Power Grid


IPCA - Initiaton - BHEL- Cummins- Oil & Gas - Pharmaceuticals- Monthly- Equity Strategy- Coal India- Power Utilities & Coal- Power Grid

Geometric


Geometric

GATI


GATI

Daily News Roundup - Aug 8 2013


Havells India said it is targetting Rs 5bn revenue from Karnataka in the next two years. (ET)

BHEL said it has bagged a Rs2.65bn order from Bharat Petroleum Corporation Limited for supplying equipment for latter's refinery project in Kochi. (ET)

Emami is planning to invest nearly Rs10bn for setting up a cement grinding unit and a 450-bed hospital in West Bengal. (BL)

Cadbury India, part of Mondelçz International, plans to invest more than Rs10bn in the first phase of a manufacturing plant in Sri City, Andhra Pradesh. (BL)

Cognizant Technology Solutions hopes to earn around US$500 mn this year from offering SMAC (social, mobile, analytics and cloud) technologies to clients, according to its Chief Executive Officer Francisco D’Souza. (BL)

A consortium comprising Siemens Ltd, Siemens AG and Siemens China has won an order for a turnkey project worth approximately €70 mn from IL&FS Rail Ltd, said an official release. (BL)

Tilaknagar Industries (TI), is in talks with global giants like Suntory Holdings and Pernod Ricard to sell a 15-20 % stake in the company. (BS)

The first consignment of phosphoric acid from Tunisian Indian Fertilisers (Tifert), a Tunisia-based venture of Coromandel International Limited (CIL), has arrived at Kakinada, where CIL's complex fertilisers plant is located. (BS)

Larsen and Turbo Ltd (L&T) has been awarded Rs6.5bn contract for equipment supply and construction of 28 mega lift irrigation projects in Tel River basin by the water resources department of Odisha government. (BS)

While the National Spot Exchange Ltd (NSEL) claimed it has 0.5mn tonnes of basmati paddy stocks at its designated warehouses in Punjab and Haryana, the trade believes disposing this may not be easy with the new crop set to arrive in the markets from mid-September. (BL)

The State Trading Corporation (STC) of Mauritius has renewed an agreement to source petroleum products from Mangalore Refinery and Petrochemicals Ltd (MRPL), ending uncertainty. (BL)

The Central Bureau of Investigation (CBI) arrested the two owners of mobile handset maker Micromax, while they were allegedly giving a Rs3mn bribe to engineers of the North Delhi Municipal Corporation for clearance to a banquet hall construction. (BS)

Economy Snippets
The sub-committee of the Financial Stability and Development Council has expressed concern over the deteriorating asset quality of state-run banks.(ET)

A Parliamentary panel has recommended review of the Government’s decision to raise gas prices.(BL)

The Centre’s net direct tax collections grew 10.37 % in April-July at Rs 1160bn.(BL)

Housing finance companies (HFCs) can now lend more funds to real estate developers and individual home buyers. This is because the National Housing Bank (NHB), regulator for HFCs, has lowered the risk weights for loans extended by such companies. Lower risk weight means lesser capital that an HFC has to set aside for providing a home loan..(BL)

Excessive rainfall has hit kharif agricultural commodities, with five to seven % of crops feared damaged in major growing regions, especially flood-prone areas.(BS)

Flat start; fear remains



The strength of any weakness within us is the degree to which it is feared- Guy Finley

The nervousness continues on the bourses with no positive triggers emerging. Globally, US markets weakened on expectations that the Federal Reserve may soon begin to slow the pace of its asset purchases. Contrastingly, Asian markets are up as investors expect some positive signs from the Bank of Japan policy meet. Chinese trade data too is awaited.

The opening is expected to be flat. The Nifty seems to be searching for support these days. Some buying could come in but investors are keener on offloading stocks which have run up above valuations. Jet Airways results will be in focus for the day besides a host of other companies.

RBI governor D. Subbarao and all deputy governors will attend a Central Board meeting today.

The Centre’s net direct tax collections grew 10.37 per cent in April-July at Rs 1,16,645 crore (Rs 1,05,684 crore).

Union Consumer Affairs, Food and Public Distribution Minister, KVThomas introduced National Food Security Bill in Lok Sabha today to replace the National Food Security Ordinance, 2013 which was promulgated on 5th July, 2013.

Meanwhile, excessive rainfall has hit kharif agricultural commodities says a report as crops have been damaged in major growing regions, especially flood-prone areas.

In a bid to calm investors, NSEL released the complete list of buyers and stocks held by them. The 21 buyers in the list have an outstanding liability of Rs 5,580 crore, against which stocks tendered by them in exchange warehouses are worth Rs 6,063 crore, according to the National Spot Exchange.

The Bank of England said Wednesday it would not raise interest rates until U.K. unemployment falls to 7%, a level it doesn't expect to see for about three years. The Bank of England increased its forecasts for economic growth in 2013 to 1.5% from 1.2%, and for each of the next two years.

The stock of Shiv-Vani Oil and Gas Exploration Services fell to its 52-week low on fears of the company defaulting on its loan repayments.

Shares of Tata Motors, Lupin and Ranbaxy Laboratories will be in focus today.

While Tata Motors Q1 net profit was down 23% at Rs17.30bn.Lupin Ltd Q1 net profit for the quarter stood at Rs4.01bn, up 43%. Q1 sales stood at Rs24.21bn.

Ranbaxy Laboratories Ltd has posted a Net (Loss) after tax, minority interest and share in loss of associate of Rs (5242.44) mn for the quarter ended June 30, 2013 as compared to Net (Loss) of Rs. (5857.25) mn for the quarter ended June 30, 2012.

Gold was softer at $1,285 an ounce, while U.S. crude was pinned at one-week lows near $104 a barrel.

Japan's Nikkei 225 index was trading 1% higher while Hong Kong's Hang Seng index was up 0.7%. South Korea's Kospi index is marginally up while China's Shanghai index has slipped a bit.

Results watch: Fortis Healthcare, IRB Infra, Jet Air India, Allcargo Logistics, Apar Inds, Asian Hotels (West), Asian Hotels (East), Ashok Alcochem, BEML, BGR Energy, Black Rose Inds, Bhartiya Intl, Bombay Cycle, Bonanza Inds, Dhoot Inds, Deepak Fert, DQ Entert Intl, EIH Associated, Esab India, ITD Cem India, Indo Rama Syn, IL&FS TRANS, Haryana Cap, Great Eastern Sh, Frontier Leas, Jindal Drill, KCP Sugar, Kakatiya Cem, Kesar Terminals, Maars Software, Maharashtra Seam, Moser Baer, Muthoot Cap, NESCO, NTC Ind, Page Inds, Panacea Bio, Pradeep Metal, RDB Realty & Infra, Rasoya Proteins, Rainbow Papers, TALWALKAR, TBZ, Suryalakshmi, Spentex Inds, Shreyans Inds, Shree Raj Syntex, Sayaji Hotels, Universal Cred, Welspun Syn, Zicom Elect.

Trends in FII flows: The FIIs were net sellers of Rs3.50bn in the cash segment on Wednesday, while the domestic institutional investors (DIIs) were net buyers of Rs2.61bn, as per the provisional figures released by the NSE.

Global Data Watch: Idul Fitr INR, Employment Change s.a. (Jul) AUD, Fulltime employment (Jul) AUD, Part-time employment (Jul) AUD, Unemployment Rate s.a. (Jul) AUD, Trade Balance (Jul) CNY, Exports (YoY) (Jul) CNY, Imports (YoY) (Jul) CNY, M2 Money Supply (YoY) (Jul) CNY, New Loans (Jul) CNY, BoJ Interest Rate Decision JPY, BoJ Monetary Policy Statement JPY, Eco Watchers Survey: Current (Jul) JPY, Eco Watchers Survey: Outlook (Jul) JPY, Unemployment Rate s.a (MoM) (Jul) CHF, Current Account n.s.a. (Jun) EUR, Trade Balance s.a. (Jun) EUR, Exports (MoM) (Jun) EUR, Imports (MoM) (Jun) EUR, Industrial Output Cal Adjusted (YoY) (Jun) EUR, ECB Monthly Report EUR, Unemployment Rate (MoM) (May) EUR, New Housing Price Index (MoM) (Jun) CAD, New Housing Price Index (YoY) (Jun) CAD, Initial Jobless Claims (Aug 3) USD, Continuing Jobless Claims (Jul 27) USD, EIA Natural Gas Storage change (Aug 2) USD, 30-Year Bond Auction USD, Electronic Card Retail Sales (MoM) (Jun) NZD, Electronic Card Retail Sales (YoY) (Jun) NZD, Money Supply M2+CD (YoY) (Jun) JPY, Tertiary Industry Index (MoM) (Jun) JPY.

In other news in the media:

Havells India said it is targetting Rs 5bn revenue from Karnataka in the next two years. (ET)

BHEL said it has bagged a Rs2.65bn order from Bharat Petroleum Corporation Limited for supplying equipment for latter's refinery project in Kochi. (ET)

Emami is planning to invest nearly Rs10bn for setting up a cement grinding unit and a 450-bed hospital in West Bengal. (BL)

Cadbury India, part of Mondelçz International, plans to invest more than Rs10bn in the first phase of a manufacturing plant in Sri City, Andhra Pradesh. (BL)

Cognizant Technology Solutions hopes to earn around US$500 mn this year from offering SMAC (social, mobile, analytics and cloud) technologies to clients, according to its Chief Executive Officer Francisco D’Souza. (BL)

A consortium comprising Siemens Ltd, Siemens AG and Siemens China has won an order for a turnkey project worth approximately €70 mn from IL&FS Rail Ltd, said an official release. (BL)

Tilaknagar Industries (TI), is in talks with global giants like Suntory Holdings and Pernod Ricard to sell a 15-20 % stake in the company. (BS)

The first consignment of phosphoric acid from Tunisian Indian Fertilisers (Tifert), a Tunisia-based venture of Coromandel International Limited (CIL), has arrived at Kakinada, where CIL's complex fertilisers plant is located. (BS)

Larsen and Turbo Ltd (L&T) has been awarded Rs6.5bn contract for equipment supply and construction of 28 mega lift irrigation projects in Tel River basin by the water resources department of Odisha government. (BS)

While the National Spot Exchange Ltd (NSEL) claimed it has 0.5mn tonnes of basmati paddy stocks at its designated warehouses in Punjab and Haryana, the trade believes disposing this may not be easy with the new crop set to arrive in the markets from mid-September. (BL)

The State Trading Corporation (STC) of Mauritius has renewed an agreement to source petroleum products from Mangalore Refinery and Petrochemicals Ltd (MRPL), ending uncertainty. (BL)

The Central Bureau of Investigation (CBI) arrested the two owners of mobile handset maker Micromax, while they were allegedly giving a Rs3mn bribe to engineers of the North Delhi Municipal Corporation for clearance to a banquet hall construction. (BS)

The sub-committee of the Financial Stability and Development Council has expressed concern over the deteriorating asset quality of state-run banks.(ET)

A Parliamentary panel has recommended review of the Government’s decision to raise gas prices.(BL)

The Centre’s net direct tax collections grew 10.37 % in April-July at Rs 1160bn.(BL)

Housing finance companies (HFCs) can now lend more funds to real estate developers and individual home buyers. This is because the National Housing Bank (NHB), regulator for HFCs, has lowered the risk weights for loans extended by such companies. Lower risk weight means lesser capital that an HFC has to set aside for providing a home loan. (BL)

Dalal Street expects a positive start


Indian markets may rise at start led by positive Asian cues. SGX Nifty is trading 9.50 points higher.

Events for today
Results: Adani Enterprises, Bharat Forge, IRB Infra, Jet Airways and Rural Electrification Corp to announce quarterly results
Indian Indices:
Today, the opening on the Dalal Street is expected to be on a positive note as the Asian cues look supportive. SGX Nifty is also trading 9.50 point higher.
On Wednesday (August 07, 2013) Sensex shed 68.16 points to close at 18664.88 while Nifty slipped 23.15 points to end at 5519.10.
Global Market
Asian stocks on Thursday (August 08, 2013) rebounded from the previous day’s sharp losses, with strong earnings from Australia’s Telstra Corp. helping lift Sydney shares, while those in Tokyo gained ahead of the Bank of Japan’s policy decision.
US stocks on Wednesday (August 07, 2013) fell for a third day, as uncertainty over the timing of cuts in the Federal Reserve’s monthly bond buys had equities retreating from recent highs.
European stock traded mostly lower on Wednesday on concerns about the timing of tapering in the US, while UK stocks slumped after the Bank of England wasn’t as dovish as hoped in its inflation report.
Major Headlines of the day
L&T bags Rs646.56-cr lift irrigation contract in Odisha.
Fin services firms buys Strides Arcolab scrips worth Rs66 cr.
Emami to invest Rs1,000 crore in cement, hospital biz in Bengal.

PC Jeweller gains after Q1 results



PC Jeweller rose 3.69% to Rs 88.60 at 14:08 IST on BSE after net profit rose 9.09% to Rs 89.95 crore on 20.52% growth in total income from operations to Rs 1379 crore in Q1 June 2013 over Q4 March 2013.

The Q1 result was announced during trading hours today, 7 August 2013.

Meanwhile, the S&P BSE Sensex was down 28.24 points or 0.15% at 18,704.80.

On BSE, 2.43 lakh shares were traded in the counter as against average daily volume of 1.64 lakh shares in the past one quarter.

The stock hit a high of Rs 92.60 and a low of Rs 84.75 so far during the day. The stock had hit a record high of Rs 194.90 on 7 January 2013. The stock hit a record low of Rs 65.95 on 18 July 2013.

The stock had outperformed the market over the past one month till 6 August 2013, sliding 3.39% compared with the Sensex's 3.91% fall. The scrip had, however, underperformed the market in past one quarter, declining 22.77% as against Sensex's 4.78% fall.

The small-cap company has equity capital of Rs 179.10 crore. Face value per share is Rs 10.

Other expenses for Q1 June 2013 include prior period rent amounting to Rs 7.72 crore and its corresponding prior period impact on deferred tax asset amounting to Rs 2.62 crore.

PC Jeweller did not unveil results for the corresponding period of the previous year i.e. for Q1 June 2012 as the company was listed on the bourses only in late December 2012.

PC Jeweller's board of directors at a meeting held today, 7 August 2013, approved the dividend policy of the company. PC Jeweller will pay dividend twice a year -- by way of interim dividend for the half year ended 30 September and by way of final dividend for the year ended 31 March after the end of the financial year. The board will endeavor to maintain the dividend payout ratio as near as possible to 15%. Therefore, the board intends to distribute to the shareholders almost 15% of its net profit by way of dividend. This policy will be subject to review by the board every year.

PC Jeweller, promoted by Padam Chand Gupta and Balram Garg, is one of the leading jewellery companies in India in the organized jewellery retail sector.

Market may edge higher in early trade on firm Asian stocks



The market may edge higher in early trade on mostly higher Asian stocks. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 10.50 points at the opening bell.The stock market remains closed tomorrow, 9 August 2013, on account of Ramzan Id.

Ranbaxy Laboratories after trading hours on Wednesday, 7 August 2013, reported consolidated net loss of Rs 524.24 crore for Q2 June 2013, lower than net loss of Rs 585.72 crore in Q2 June 2012. Sales declined 17.83% to Rs 2633.20 crore in Q2 June 2013 over Q2 June 2012. Ranbaxy said that base business sales registered double digit growth and base business margins continued to improve in Q2 June 2013.

Ranbaxy said that bottom line in Q2 June 2013 was adversely impacted by the depreciation of rupee against the dollar. Though favourable to Ranbaxy's export business, the rupee depreciation had an adverse impact on the company's profitability mainly on account of application of the accounting standards that require marking to market the entire derivatives and foreign currency denominated loans outstanding. There was a net charge of Rs 540.30 crore on this account in Q2 June 2013, Ranbaxy said.

Ranbaxy said that the macroeconomic environment continued to be challenging in certain countries in Western Europe. Specifically in France, the generic pharma industry has been impacted adversely by continuing pricing and trade challenges. Ranbaxy has accordingly taken an impairment of goodwill of Rs 119.20 crore in Q2 June 2013 pertaining to its operations in France in line with the accounting standards.

Ranbaxy said the company registered profit after tax of Rs 135.20 crore in Q2 June 2013 if one excludes the impact of forex losses and other exceptional items.

Ranbaxy said sales declined on year on year basis in Q2 June 2013 due to base effect. The company said sales in Q2 June 2012 was boosted by contribution from exclusivities. On a like-to-like basis, sales grew in double digits over the corresponding quarter, Ranbaxy said.

Mr. Arun Sawhney, CEO & Managing Director, Ranbaxy said that the company's focus on branded markets and business continues and this will help navigate the growth of Ranbaxy in the coming years. He also said that the management is consciously working on efficiency improvement across the organization.

State Bank Of India said after market hours on Wednesday, 7 August 2013 that consequent upon the appointment of Smt. Arundhati Bhattacharya as Managing Director of the Bank, as advised in company's letter dated 3 August 2013, it has now been decided to designate Smt. Bhattacharya, as the Managing Director and Chief Financial Officer (CFO), vice Shri Diwakar Gupta (who has since retired on superannuation).

Steel stocks will be in focus after the government said on Wednesday some steel products can be imported for certain critical applications without local quality certification, a move that could further hit domestic suppliers after imports rose 15% last fiscal year. The government said imports for projects in sectors such as infrastructure, petroleum, nuclear reactors and defence would be exempted from applicable local quality standards if at least Rs 1000 crore is invested in such a project. The exporters will, however, have to obtain quality certificates from their country of origin, a notification from the commerce and industry ministry said.

Key benchmark indices fell for second day in a row on Wednesday, 7 August 2013 as Asian and European stocks fell on concerns US monetary policy will soon become less accommodative after two Federal Reserve officials on Tuesday, 6 August 2013, said a reduction in Fed's asset purchases is likely later this year. The S&P BSE Sensex lost 68.16 points or 0.36% to settle at 18,664.88 on that day, its lowest closing level since 26 June 2013.

Foreign institutional investors (FIIs) sold shares worth a net Rs 350.93 crore on Wednesday, 7 August 2013, as per provisional data from the stock exchanges.

Most Asian stocks rose on Thursday as investors await the conclusion of a Bank of Japan's policy meeting and Chinese trade data today. Key benchmark indices in Hong Kong, Japan and South Korea were up 0.35% to 0.73%. Key benchmark indices in China and Taiwan fell by 0.13% to 0.14%. Stock markets in Singapore, Indonesia and Malaysia were closed for holidays.

The Bank of Japan (BoJ) ends its two-day policy meet today, 8 August 2013. The BoJ is widely expected to maintain its pledge of increasing the monetary base at an annual pace of about 60 trillion to 70 trillion yen ($600 billion-$700 billion).

Australian employers unexpectedly cut payrolls in July and unemployment held at an almost four-year high, denting Prime Minister Kevin Rudd's bid for a come-from-behind election win. The number of people employed fell 10,200, the statistics bureau said in Sydney today.

US stocks lost ground for a third consecutive session on Wednesday on growing uncertainty over when the Federal Reserve may start to wind down its stimulus, which has been a driving force behind the rally in equities this year. Federal Reserve Bank of Cleveland President Sandra Pianalto said on Wednesday that the central bank would be prepared to scale back asset purchases if the labor market remains on the stronger path followed since last fall. Charles Evans, the president of the Federal Reserve Bank of Chicago, said on Tuesday that the Fed would probably scale back its bond-buying program later this year, perhaps beginning as early as next month, depending on economic data. That echoed comments made earlier on Tuesday by Dennis Lockhart, the president of the Federal Reserve Bank of Atlanta.

The US central bank currently buys $85 billion a month in US debt and mortgage-backed securities. Federal Reserve Chairman Ben Bernanke has on several occasions stressed that the tapering process is dependent on an improvement in data. Fed's bond-buying program has kept global markets flush with liquidity in recent years