Telecom Sector Update Gradual recovery in mobile broadband subs for top-3 operators - ICICI Sec

Gradual recovery in mobile broadband subs for top-3 operators

The regulator released monthly subscriber (subs) and MNP (mobile number portability) data for Jun’17. Industry-active (VLR) subs rose by 3.2mn as RJio’s net add stood at 4.3mn (vs a strong 8.7mn net add in May’17), while net adds for the top-3 operators slowed to 1.3mn. RJi

18/08/2017 4:20:19 PM | Posted in Broking Firm Views - Sector Report read full news
Oil and Gas Sector Update Inventory losses impact OMCs; Mid-stream benefits from volume growth - Sharekhan

Refining (downstream) dented by inventory losses suppressing refining margins; OMCs also lose market share in domestic HSD/MS sales:

Brent oil price declined by around 7% sequentially to $51/bbl in Q1FY2018, resulting in inventory loss of $2-3.4/ bbl to oil marketing companies (OMCs). As a result, Indian Oil (IOCL)/Bharat Petroleum (BPCL)/Hindustan Pe

18/08/2017 11:19:19 AM | Posted in Broking Firm Views - Sector Report read full news
Cement Sector Update Seasonal price correction across most markets - Motilal Oswal

Seasonal price correction across most markets

* July and August 2017 have seen MoM cement price correction across most markets due to seasonal weakness and pass-through of rate differential in taxes following the implementation of Goods and Services Tax (GST).

* Price correction in July/August has been the highest (INR15-20/bag) in Pune/Nagpu

18/08/2017 11:11:02 AM | Posted in Broking Firm Views - Sector Report read full news
Pharma Sector Update Draft Pharmaceutical Policy; Devil is in the details - Emkay

Draft Pharmaceutical Policy; Devil is in the details

Key highlights

* The draft of the New Pharma Policy (Policy) shows significant policy changes for the Indian Pharmaceutical sector, but the proposals would need more clarifications (including execution details to assess impact on the sector).

* Some of the key hi

17/08/2017 4:11:47 PM | Posted in Broking Firm Views - Sector Report read full news
Banking sector Update Earnings recover off a low base led by stable provisions - Kotak Sec

No tailwinds as yet, for banks.

Bank earnings grew 22% yoy as provisions were flat yoy and revenues saw support from treasury income. A fresh negative surprise arose from NIM contraction due to shift to MCLR, high NPLs, abundant liquidity and low growth. Slippages on the corporate side were high but no new surprises even as debt-waiver and demonetizati

17/08/2017 3:58:51 PM | Posted in Broking Firm Views - Sector Report read full news
Insurance Sector Update - Kotak Sec

Widening the base.

Recent trends indicate that insurance companies are sustaining growth by adding new policies than mere ticket size increase; mutual funds are spreading themselves wider as well, driving stronger inflows. In 1QFY18, LIC and HDFC Life were among key drivers for industry-wide APE. While strong monthly insurance growth rates appear encou

17/08/2017 3:45:12 PM | Posted in Broking Firm Views - Sector Report read full news
Media and Entertainment Sector Rough Fridays; awaiting repeat content performance of FY16 - Emkay

* Over the last 12-15 months, the Multiplex sector has been struggling to register growth in underlying footfalls due to sub-par performance by Bollywood content at the Box Office. As per our database, net Bollywood Box Office collections have been hovering in the range of Rs27-30bn over the last 5 years, except FY16 when it was at Rs34bn.

* Content quality of movies starring marquee

16/08/2017 5:28:38 PM | Posted in Broking Firm Views - Sector Report read full news
Telecom Sector Update IUC reduction to enable Reliance Jio to intensify competition - Motilal Oswal

IUC reduction to enable RJio to intensify competition

Cut to INR0.10/minute to impact incumbents’ EBITDA by less than 4%

* Media reports indicate that TRAI is set to reduce interconnect usage cost (IUC) from the current INR0.14/minute. Though TRAI’s consultation paper released in the last fiscal year hints at &ls

16/08/2017 4:07:44 PM | Posted in Broking Firm Views - Sector Report read full news
NIFTY MEDIA has immediate support placed at 2700 levels - GEPL

Observation

* NIFTY MEDIA is the one of the underperforming sectoral indices, as it closed down by a massive 7.08% at 2872.80, as against a down move of 3.53% in benchmark NIFTY 50.

* The Sector had faced a strong resistance at Higher level which is placed @ 3200 - 3180 level since last three months and eventually breached the immediate supp

15/08/2017 9:49:13 AM | Posted in Broking Firm Views - Sector Report read full news
NIFTY METAL holds Bullish momentum - GEPL

Observation

* NIFTY METAL has remained an outperforming sector over the last few weeks, with a last week coming up as relative outperformance. It showed a down move by 2.59%, as against a down-move of 3.53% in benchmark NIFTY 50, which is the least amongst all the sectoral indices.

* The Sector is in long term Bullish Trend with the formatio

15/08/2017 9:44:15 AM | Posted in Broking Firm Views - Sector Report read full news
Aviation Sector Update International segment to offer value for domestic carriers - ICICI Sec

International segment to offer value for domestic carriers

Reason for report: Sector update Research Analysts: Ansuman Deb ansuman.deb@icicisecurities.com +91 22 6637 7312 The second edition of Economic Survey (ES) for 2016-17, one of the most important policy guidebook for India, released in August 2017 have given a special emphasis on Indian aviation

15/08/2017 9:27:47 AM | Posted in Broking Firm Views - Sector Report read full news
IT Sector Update - Motilal Oswal

BFSI: Size leaders turn growth laggards

Appended below is the performance of BFSI in the June quarter for the five biggies:

* Interestingly, the size of operations contrasts the YoY growth in constant currency. Note that BFSI was the fastest/second fastest growing vertical for the three smaller players (INFO, WPRO and HCLT), and was the key d

11/08/2017 3:39:11 PM | Posted in Broking Firm Views - Sector Report read full news
Technology Sector Update - Tactical margin levers exercised well - Kotak Sec

Tactical margin levers exercised well.

Indian IT reported weak growth. Margins were not as bad considering rupee headwinds and seasonal costs due to extreme cost optimization and increase in utilization (aggregate headcount of Tier-1 IT declined). Earnings were better courtesy Fx gains. Brace for weak growth in FY2018 as drag from legacy business excee

7/08/2017 5:47:39 PM | Posted in Broking Firm Views - Sector Report read full news
NIFTY PHARMA has immediate support placed at 9060 levels - GEPL

Observation

*  NIFTY PHARMA is the most underperforming sectoral indices, as it closed down by a massive 4.30% at 9256.85, as against an up move of 0.52% in benchmark NIFTY 50.

*  The Sector had faced a strong resistance at Higher level which is placed @ 10250 - 10300 level since last three months and eventually breached the immedi

7/08/2017 5:41:01 PM | Posted in Broking Firm Views - Sector Report read full news
Tyre Sector Update - ADD boost for domestic TBR players - ICICI Sec

‘ADD’ boost for domestic TBR players

Reason for report: Sector update

Directorate General of Anti-dumping & Allied Duties (DGAA) has recommended imposition of anti-dumping duty (‘ADD’) of US$245-452/MT on truck and bus radial tyres imported/produced from China, potentially minimising the threat of

7/08/2017 5:32:08 PM | Posted in Broking Firm Views - Sector Report read full news
NIFTY ENERGY sustains at All Time High level - GEPL

Observation

*  NIFTY ENERGY is the most outperforming sectors of last week. It showed an up move by 4.20%, as against a meager up-move of 0.52% in benchmark NIFTY 50.

*  The Sector is in long term Bullish Trend with the formation of Higher Top Higher Bottom sequences in all time frames charts as Daily, Weekly as well as Monthly, as

7/08/2017 5:18:14 PM | Posted in Broking Firm Views - Sector Report read full news
Metals Sector update - Tailwinds for steel and aluminum - Motilal Oswal

Tailwinds for steel and aluminum

SC order unlikely to affect near-term domestic iron ore supply

Indian steel prices inching up, driving margin expansion

Indian steel mills have increased prices of flat products by INR1,500/t from August 1, 2017, after a price hike of ~INR700/t in J

7/08/2017 12:34:06 PM | Posted in Broking Firm Views - Sector Report read full news
Domestic sales of passenger vehicles grew more than 10% in July - SPA Sec

Domestic sales of passenger vehicles grew more than 10% in July, the highest pace in the first seven months of this calendar year. This growth, however, comes after a decline of 11% in June, when companies regulated sales to reduce dealers' loss on pre GST inventory. MSIL, M&M and TAMO registered a growth of 22%, 21% and 10% respectively.

The industry is unlikely to sustain th

4/08/2017 5:11:20 PM | Posted in Broking Firm Views - Sector Report read full news
Technology - BFSI: Size leaders turn growth laggards - Motilal Oswal

BFSI: Size leaders turn growth laggards

Appended below is the performance of BFSI in the June quarter for the five biggies:

Interestingly, the size of operations contrasts the YoY growth in constant currency. Note that BFSI was the fastest/second fastest growing vertical for the three smaller players (INFO, WPRO and HCLT),

4/08/2017 4:34:57 PM | Posted in Broking Firm Views - Sector Report read full news
Mired in mining mess: SC delivers knockout blow on Odisha mining - Emkay

Key highlights of Supreme Court verdict:

*  Pending show-cause notices issued by the Odisha Government should be decided by December 31, 2017 (if not already decided) after hearing the concerned offenders.

*  The Apex Court would like to hear JSPL, Sarda Mines Pvt Ltd, among others on the applications filed by them. For this purpos

3/08/2017 5:43:14 PM | Posted in Broking Firm Views - Sector Report read full news
Metallica Sector Update China continues to surprise in ferrous space - Emkay

Key observations

*  In Ferrous space, steel (CIS), iron ore and coking coal rose by 13% MoM, 10% MoM and 20% MoM, respectively. China HR sheet also rallied 7% MoM to US$626/tn on the back of better-than-expected traction in metal demand in China.

*  Coking coal continued its rally for the second consecutive month to US$180/tn (+20%

3/08/2017 12:31:12 PM | Posted in Broking Firm Views - Sector Report read full news
Retail Sector Update Uptick in growth; Importance of channel mix evident - Emkay

Key takeaways from FY17 annual reports

*  Indian Retail sector’s growth trajectory has remained intact despite macroeconomic challenges. Industry pegs retail sector size at Rs3.6tn and is expected to grow by 14%  Overall growth across our coverage improved in FY17 despite the adverse impact of demonetization (from 4.5% in FY16 to 11.9% i

3/08/2017 12:24:28 PM | Posted in Broking Firm Views - Sector Report read full news
NBFC Sector Update SBIN cuts SA deposits rate, other banks likely to follow suit - Motilal Oswal

SBIN cuts SA deposits rate, other banks likely to follow suit

Expect reduction in cost of deposits by ~15bp and higher PBT benefit

n The State Bank of India (SBIN) has lowered the rate on savings deposits up to INR10m by 50bp to 3.5% from the existing rate of 4%. According to management, savings accounts with balances of IN

1/08/2017 12:11:15 PM | Posted in Broking Firm Views - Sector Report read full news
Power Sector Update Generation remained flat as demand soften due to onset of monsoon - Emkay

Generation remained flat as demand soften due to onset of monsoon

* Generation remained flat in June 2017 at -0.1% YoY (excl. renewables) due to fall in overall demand from the onset of monsoon. Hydro segment witnessed 10.9% YoY rise in generation which was offset by 2.2% YoY decline in generation across the Coal segment.

* The overall i

31/07/2017 5:35:42 PM | Posted in Broking Firm Views - Sector Report read full news
NIFTY PHARMA has immediate support placed at 9380 levels - GEPL

Observation

* NIFTY PHARMA is one of the underperforming sectoral indices, as it closed down by a massive 3.78% at 9672.60, as against an up move of 1% in benchmark NIFTY 50.

* The Sector had faced a strong resistance at Higher level which is placed @ 10250 - 10300 level since last three months and eventually breached the immediate trend line

31/07/2017 5:21:27 PM | Posted in Broking Firm Views - Sector Report read full news