Power Sector Update Shifting landscape transmitting power is better than moving coal - ICICI Sec

Shifting landscape – transmitting power is better than moving coal

Reason for the report: Sector update

India, in recent years, has been on a transmission infrastructure creation spree, in its attempts to overhaul the existing setup, electrify the entire country and create adequate power transmission capacity to meet th

29/06/2017 5:33:54 PM | Posted in Broking Firm Views - Sector Report read full news
Power Sector Update Sprouts of improvement visible, but data inconsistencies cause discomfort - ICICI Sec

Sprouts of improvement visible, but data inconsistencies cause discomfort

Reason for the report: Sector update

In this report, we take a look at how the various states are faring on the operational and financial parameters tracked under the Union government’s Ujwal DISCOM Assurance Yojana (UDAY), and the improvement the

29/06/2017 5:20:07 PM | Posted in Broking Firm Views - Sector Report read full news
IT Sector Update Q1 unlikey to assuage investor concerns on demand - ICICI Sec

Q1 unlikey to assuage investor concerns on demand

* Expect revenue growth in Q1FY18 to be softer relative to typical strong seasonality. We expect Q1FY18 to be another quarter where demand trends will be on the softer side of seasonality with each company witnessing near-term challenges in different sectors and verticals. TCS is seeing

29/06/2017 9:39:40 AM | Posted in Broking Firm Views - Sector Report read full news
IT Sector Update Accenture tightens revenue growth guidance band - Kotak Sec

Accenture—tightens revenue growth guidance band.

Accenture reported c/c revenue growth of 7% for May 2017 (3QFY17) quarter, at the upper-end of guidance band. However, the company tightened FY2017 revenue growth guidance band to 6-7% from 6-8% earlier with the tightening capturing slower-than-expected initiation of new projects due to continued u

23/06/2017 1:50:51 PM | Posted in Broking Firm Views - Sector Report read full news
Metals and Mining Sector Update India Steel on a recovery path - Kotak Sec

India Steel—on a recovery path.

Indian steel markets started FY2017 on a weak note with muted demand (+4%) due to lower off-take from the construction sector. Trade protection measures remain effective and have largely curtailed steel dumping. The recent weakness in global steel and raw material prices has led to correction in Indian steel price

23/06/2017 1:46:09 PM | Posted in Broking Firm Views - Sector Report read full news
Real Estate Sector Update Annuity asset plays remain the preferred bet - Emkay

Annuity plays remain the preferred bet

* In March 2017 we had highlighted our preference for annuity based plays based on our thesis of continued leasing traction in the Indian office market, retailers preference for well managed malls and an uptick in occupancies for the hotel industry. Since then, the BSE Realty Index has delivered returns of 34% in the last 3 months with indiv

23/06/2017 1:35:48 PM | Posted in Broking Firm Views - Sector Report read full news
Oil and Gas Sector update Lacks synergies but supportive for ONGC`s valuation - Emkay

ONGC+HPCL= Lacks synergies but supportive for ONGC’s valuation

* The deal will allow ONGC to navigate periods of oil price downturns relatively smoothly, as refining margins typically expand during such periods. In addition, the enhanced size of the combined entity can be leveraged to some extent while competing with international giants.

23/06/2017 12:23:05 PM | Posted in Broking Firm Views - Sector Report read full news
Pharma Sector Update US drug pricing task force spells bad news for generic companies - Emkay

US drug pricing task force spells bad news for generic companies

Key highlights

 As per news reports, the US administration has put together a Task Force to rein in drug prices, which the new administration had repeatedly talked about during last year’s election campaigning {Link here} and {Link here}. The task force has a mandate t

22/06/2017 5:56:18 PM | Posted in Broking Firm Views - Sector Report read full news
IT Sector Update GIC`s threat is here to stay and intensify - Emkay

*   Discussions with several industry participants continue to provide incremental evidence on the increasing preference for GIC’s, as we revisit our thesis on the resurgence in GIC/Captive activity.

*  Industry data and news flow over the past 12 months continue to reflect both expansion and new Captive set-ups (FY17 saw announcement of 50+ new GIC operations). GIC re

21/06/2017 5:57:15 PM | Posted in Broking Firm Views - Sector Report read full news
Energy Sector update OMCs marketing profitability remains flat in past four years - Kotak Sec

When the tide turns...

We remain wary of the Street’s assumption of robust increase in marketing profitability for downstream PSUs noting risks from rising participation of the private players in fuel retailing business. Weaker-than-expected marketing margins could pose material downside risks to consensus estimates for HPCL>BPCL>IOCL. We

20/06/2017 3:39:34 PM | Posted in Broking Firm Views - Sector Report read full news
Banking Sector Update Offers protection in adverse conditions - Kotak Sec

Offers protection in adverse conditions.

Our initial study of Pradhan Mantri Fasal Bima Yojana (PMFBY) shows it offers hope to banks lending to agriculture in adverse conditions. The new scheme has seen ~100% increase in the sum insured in FY2017, greater interest from private insurance players and higher participation of farmers. Strict timelines, ma

20/06/2017 3:16:14 PM | Posted in Broking Firm Views - Sector Report read full news
NIFTY CPSE has immediate support placed at 2375 levels - GEPL

Observation

* NIFTY CPSE is one of the underperforming sectoral indices, as it closed down by 1.40% at 2458.85, as against a down move of 0.83% in benchmark NIFTY 50.

* The Sector had faced a strong resistance of it’s All Time High level which is placed @ 2770 - 2750 level since last one month and eventually breached the immediate supp

19/06/2017 5:02:03 PM | Posted in Broking Firm Views - Sector Report read full news
NIFTY REALTY holds strong Bullish momentum - GEPL

Observation

* NIFTY REALTY is the outperformer sector of last week. It showed a massive up move by 4.35%, as against a down move of 0.83% 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 can be seen in t

19/06/2017 4:57:23 PM | Posted in Broking Firm Views - Sector Report read full news
Aviation Sector Update May provides strong seasonal boost - ICICI Sec

May provides strong seasonal boost

Reason for report: Monthly update

The air traffic in May registered a positive surprise with aggregate domestic passenger growth increasing to 17.6% from ~15% seen in Feb-April. The total monthly domestic passenger crossed 10mn during May as passenger load factor (PLF) reached an all-time hi

19/06/2017 2:46:10 PM | Posted in Broking Firm Views - Sector Report read full news
Metal Sector Update Exports continue to remain strong - Kotak Sec

Exports continue to remain strong

As per JPC provisional data, domestic steel demand grew by a mere 1.1% YoY in the month of May 2017 to 7.49T and for YTDFY18 the steel demand grew by 4.2% YoY to 13.79MT. In a subdued domestic demand environment, steel producers continued to maintain supply by focusing on export markets. Domestic steel prices continued

17/06/2017 12:22:10 PM | Posted in Broking Firm Views - Sector Report read full news
IT Sector Update Uneasy valuations divergence - Motilal Oswal

Uneasy valuations divergence

Examining the recent premium in some companies’ valuations

* Over the last couple of months following the full-year earnings announcements, we observe significant divergence in valuation multiples among top-tier peers and also among the tier-II counterparts, widening the band range for valu

17/06/2017 12:17:03 PM | Posted in Broking Firm Views - Sector Report read full news
4QFY17 Financials Result review - Equirus Sec

4QFY17 Financials Result review

NIM trends remain strong, considerable part of stressed book slips into NPLs post RBI review

Declining cost of funds enables robust 4QFY17 NIMs:

Aggregate NIM remained robust at 4.1% vs. 4.2% in 3QFY17 as i) cost of funds continued to decline post de

16/06/2017 3:34:39 PM | Posted in Broking Firm Views - Sector Report read full news
Pharma Sector Update US FDA shows it has a bark and a bite - Emkay

US FDA shows it has a bark and a bite

* New US FDA commissioner acts on his promise to limit access to opioid substances by requesting Endo Pharma to withdraw opioid brand Opana ER from the market

* The new regime at FDA had specifically highlighted abuse of opioid medicines and faster generic approval timelines with lower backlogs as key tar

15/06/2017 5:30:00 PM | Posted in Broking Firm Views - Sector Report read full news
Pharma Sector Update Indian Pharma Market remains sluggish; focus now shifts to GST impact - Emkay

Indian Pharma Market remains sluggish; focus now shifts to GST impact

* The Indian Pharma Market’s (IPM) growth remained subdued in May’17, with the overall growth rate at 7%. We attribute the ongoing slowdown partly due to the continuing government intervention in the sector.

* The key reasons for the poor sector growth has been

15/06/2017 4:21:35 PM | Posted in Broking Firm Views - Sector Report read full news
Power Sector Update Anatomy of state-wise power consumption growth - ICICI Sec

Anatomy of state-wise power consumption growth: Uttar Pradesh driving consumption growth; UDAY affects demand in Rajasthan

Reason for the report: Sector update

In this report, we attempt to analyse India’s power consumption growth bottom up, assessing power consumption in states and the factors impacting the same. We al

14/06/2017 5:26:49 PM | Posted in Broking Firm Views - Sector Report read full news