Tracking World Steel Production - Capacity utilization heading northwards! - Emkay

Capacity utilization heading northwards!

Capacity utilization continues to remain northwards and increased by 400 bp YoY to 70.3%. Since August 2016, capacity utilization has risen from 68.3% to 70.3% signaling concern over rising oversupply of crude steel. China’s steel production continues to grow at 4% YoY to 61 mt despite all the noise of cap

24/03/2017 12:00:40 PM | Posted in Broking Firm Views - Sector Report read full news
February-16 domestic air passenger growth at ~20% YoY - Motilal Oswal

Domestic load factor at 87.2%; IndiGo’s domestic ASK/RPK share highest

* Domestic air passengers in India grew ~20% YoY (adj.) in Feb-17 (v/s +25.3% in Jan-17; +23.1% in 3QFY17). However, we believe this strong growth would be at the cost of yields, as seen in headline fares.

*While Feb-17 ASK growth stood at 17.8% YoY (adj.) (v/s +21.1

23/03/2017 3:03:28 PM | Posted in Broking Firm Views - Sector Report read full news
India Microfinance - NBFC-MFIs to take a hit as RBI reins in SHGs - RCML

India Microfinance

NBFC-MFIs to take a hit as RBI reins in SHGs

The RBI has directed banks to collect and share a database of self-help group (SHG) members with credit information bureaus from Jul’16. While this move will strengthen the microfinance database in the long run, NBFC–MFI credit growth

20/03/2017 5:19:10 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty FMCG holds strong Bullish momentum - GEPL

NIFTY FMCG    Current Close: 23491.25    Trend : Positive

Observation

* NIFTY FMCG is one of the most outperforming sector amongst all the indices last week. It moved up a good 5.15%, as against an up move of 2.52% in benchmark NIFTY 50.

* In the month of Feb. 2017, the Sector created an All Time

20/03/2017 4:16:16 PM | Posted in Broking Firm Views - Sector Report read full news
Budget implications likely to be neutral - Motilal Oswal

Alcoholic Beverages

Karnataka budget implications likely to be neutral

The event

* The Karnataka government, in its budget announcement on 15 March 2017, abolished the value added tax (VAT) on beer, wine and hard liquor. Three years ago, the state government had intro

20/03/2017 2:42:32 PM | Posted in Broking Firm Views - Sector Report read full news
Power Sector - WBERC highlights hidden cost in renewable energy - Motilal Oswal

WBERC highlights hidden cost in renewable energy

RoE of coal-based plants will be impacted if not compensated

* Renewable energy (RE) generation can have a meaningful impact on generation and utilization of conventional power capacities, although it will not displace the requirement for conventional capacities

20/03/2017 2:35:40 PM | Posted in Broking Firm Views - Sector Report read full news
Ports - The February PORTfolio - Emkay

The February PORTfolio

* Major Indian ports handled 50.9mn tons of cargo in the month of February 2017, clocking a growth of 0.4% YoY, however, declined 5.9% MoM. The major growth drivers were iron ore (+195% YoY) & others category (+27% YoY) while coal (-27% YoY), fertilizer (-45% YoY) & containers (-7% YoY) witnessed a decline

* Mor

17/03/2017 3:20:36 PM | Posted in Broking Firm Views - Sector Report read full news
Pharma Sector - High base effect and price revisions take toll on IPM growth - Emkay

High base effect and price revisions take toll on IPM growth

Indian Pharma Market – Monthly checkup

* The Indian Pharmaceutical Market (IPM) reported sub-par growth of c3% YoY to Rs.90.3bn for the month of Feb’17. A high base YoY as well as continuing pricing interventions by the NPPA continue to ensure monthly gr

16/03/2017 3:46:49 PM | Posted in Broking Firm Views - Sector Report read full news
Banking & Financial Services - A nudge of affordable credit - Emkay

The government finally announced the operating guidelines for the Credit Linked Subsidy Scheme for Middle Income Group (CLSS for MIG), in which the eligibility criteria for borrowers is surprisingly quite inclusive than anticipated. However, despite the inclusion of higher income groups and substantially increasing the eligible dwelling carpet area the scheme appears more lucrative for borrower

15/03/2017 4:29:38 PM | Posted in Broking Firm Views - Sector Report read full news
Auto Ancillaries Sector - Positively Charged - Emkay

Key takeaways

* We recently interacted with battery dealers, Exide and Amara Raja. We understand Exide has garnered market share with its renewed strategy, and this momentum is expected to continue in the short to medium term.

* We believe the battery industry is expected to grow with the ever-increasing vehicle population due to rising incom

15/03/2017 4:25:14 PM | Posted in Broking Firm Views - Sector Report read full news
Sector Update Room Air Conditioners - Motilal Oswal Sec

Transition to inverters gathers pace

LG a key beneficiary; Voltas takes share in fixed-speed 3-star range We highlight below feedback from one of the largest retail chains for consumer durables in North and West India on air conditioner (AC) sales and the impact of LG’s exit from fixed-speed ACs. North and West India together account for 55-60% o

11/03/2017 11:45:31 AM | Posted in Broking Firm Views - Sector Report read full news
Indian Steel Industry - Exports offsetting poor domestic demand - Emkay

Exports offsetting poor domestic demand

As per the JPC provisional data, finished steel production grew significantly by 13% in the month of Feb’17 to 8.8 mt, an all-time high growth, whereas consumption remained tepid and grew by only 3% YoY to 7.3 mt. Production from ESSAR+JSW+JSPL has increased significantly by 5 mt (+22% YTDFY17) to 28 mt fol

11/03/2017 11:07:00 AM | Posted in Broking Firm Views - Sector Report read full news
India Real Estate - Annuity plays the preferred bet - Emkay

* The Indian property market is currently in the midst of a perfect storm with twin impact of demonetization and imminent introduction of the Real Estate Regulator (RERA) leading to falling demand on the back of an expected price correction in residential property prices, deferment of supply by developers and residential inventory levels of 30-48 months across Tier I cities.

 

9/03/2017 3:41:03 PM | Posted in Broking Firm Views - Sector Report read full news
Media & Entertainment Sector - Tariff order: Execution challenges and legal battle to delay implementation - Emkay

* After go ahead from the Supreme Court, Trai recently released new tariff order, interconnection regulation and define quality of services that needs to be implemented within 180 days. Premise of final order is largely similar to draft but with few changes.

* Regulations are focused towards transparency, non-discrimination, non-exclusivity of content contracts between the stakeholder

9/03/2017 3:19:40 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty PSU Bank has immediate support placed at 3000 levels - GEPL

NIFTY PSU BANK   Current Close: 3223.95    Trend : Negative

Observation

* NIFTY PSU BANK is the most underperforming sectoral indices, as it closed down by around 2.23% at 3223.95, as against a down move of 0.47% in benchmark NIFTY 50.

* The Sector made a recent swing high @ 3503.90 a few weeks back,

9/03/2017 11:35:21 AM | Posted in Broking Firm Views - Sector Report read full news
Nifty Metal holds strong Bullish momentum - GEPL

NIFTY METAL    Current Close: 3187.10     Trend : Positive

Observation

* NIFTY METAL is the most outperforming sectors amongst all the indices last week. It moved up by 2.14%, as against a down move of 0.47% in benchmark NIFTY 50.

* The Sector is in long term Bullish Trend with the formation of

9/03/2017 11:30:48 AM | Posted in Broking Firm Views - Sector Report read full news
Sector Update Defense Sector - India Nivesh Sec

Political Developments:

* Jaishankar discusses counter‐terrorism, bilateral relations with McMaster

In order to take forward partnership defined with Barack Obama administration, post the Trump government taking over Indian Foreign Secretary Subrahmanyam Jaishankar met US National Security Adviser Lt. Gen H

6/03/2017 3:35:57 PM | Posted in Broking Firm Views - Sector Report read full news
Cement Sector Update Prices Inch-Up on Moderate Demand Recovery - Reliance Sec

Prices Inch-Up on Moderate Demand Recovery

Demand environment witnessed a mild recovery in Feb’17 on Month-on-Month (MoM) basis on the back of visible pick-up in construction activities after being marred in Jan’17 due to festivals and wedding season. Barring Southern markets, all regions witnessed an improvement in demand in Feb’17.

3/03/2017 5:32:12 PM | Posted in Broking Firm Views - Sector Report read full news
India Energy Consumption blip, outlook robust - RCML

India Energy

Consumption blip, outlook robust

* Consumption declines on surge in spot LNG prices: India’s gas consumption declined to 134mmscmd in Jan’17 (-1.5% YoY, -4.6% MoM), led by lower offtake from the power generation, fertiliser and city gas distribution (CGD) segments. LNG consumption was

2/03/2017 3:42:59 PM | Posted in Broking Firm Views - Sector Report read full news
Metallica - Metal Price move slowing down - Emkay

Metal Price move slowing down!!

Key observations

* Iron ore prices continued to rise sharply despite being in oversupplied market and concern over Chinese steel capacity cuts. Coking coal prices however fell further, though with a lesser intensity

* Globally steel prices remained broadly stable witho

2/03/2017 3:27:48 PM | Posted in Broking Firm Views - Sector Report read full news
Sector Update Real Estate sector - India Nivesh Sec

SECTOR – REAL ESTATE

Sector Review

* The Real Estate sector witnessed slowdown during Q3FY17 owing to negative effect of demonetization. The residential space witnessed severe slowdown as customers adopted a wait‐n‐watch mode as demonetization impacted their decision making. However the commercial sp

1/03/2017 3:57:28 PM | Posted in Broking Firm Views - Sector Report read full news
Sector Update Capital Goods - India Nivesh Sec

SECTOR – CAPITAL GOODS

Sector Review

* EPC companies in the T&D sector continued to enjoy double digit revenue growth with stable margins amidst a steady order inflow position (KEC/Kalpataru). Whereas for the companies involved in the project business, execution continued to be at a cyclical low with

1/03/2017 3:52:18 PM | Posted in Broking Firm Views - Sector Report read full news
Sector Update Power Sector - India Nivesh Sec

Sector Review

* The power sector continued to witness weak demand growth during Q3FY17 with YoY growth remaining at 1% same as it was in Q2FY17. This was despite power generation showing an improvement in YoY growth to 5.1% in Q3FY17 against 1.4% YoY growth in Q2FY17.

* The quarter saw subdued merchant power prices at ~Rs 2.5 per unit with Yo

1/03/2017 3:45:44 PM | Posted in Broking Firm Views - Sector Report read full news