Oil & Gas Sector - Monthly round up – November16 - Emkay Global

* Rise in crude oil price: Brent Crude oil was up by 7.2% MoM, mainly driven by speculation that OPEC countries would freeze output as had been tentatively considered in the meeting in September. Light-Heavy (L-H) differential is up by $0.2/bbl MoM to $2.6/bbl.

* Refining margins and product spreads: Calculated benchmark S’pore GRM has shown a downtrend MoM from $6.7/bbl to $6.0

3/11/2016 3:00:06 PM | Posted in Broking Firm Views - Sector Report read full news
India Energy - Sustained buoyancy in gas value chain fundamentals - RCML

* LNG imports continue to drive consumption:

Monthly gas consumption data for Sep’16 points to a 7.5% MoM/28.6% YoY increase in India’s LNG imports to ~2.3mmt (53% of total net consumption); for Q2FY17, LNG imports totaled 6.4mmt (+18% YoY). Imports improved despite the Dabhol terminal remaining shut for monsoons, implying a strong operatin

3/11/2016 2:55:23 PM | Posted in Broking Firm Views - Sector Report read full news
Indian Telecom Sector to Grow Further and Beyond by 2020 - Dynamic Levels

The telecom sector of India has gained immense momentum over the past few years to set new benchmarks and touch new heights. Even when we are sitting in our room, we are a click away from the rest of the world. As a result of the increasing consumer base, the telecom industry has been thriving. Introduction of new technology in handsets and connection providers have taken the user experience to

29/10/2016 3:50:09 PM | Posted in Broking Firm Views - Sector Report read full news
Consumer Goods Firms, HUL and Others Post Poor Q2 Results - Dynamic Levels

Hindustan Unilever (HUL) and other packaged consumer goods firms posted subdued consumer demand in the fiscal Q2 even as they said that they expect a revival in demand in the latter half of the year after a normal monsoon brought relief to drought-hit farmers after 2 years. The companies are confident that the worst is over as far as demand is concerned, even though increasing raw material pric

28/10/2016 2:54:38 PM | Posted in Broking Firm Views - Sector Report read full news
power Sector - Rajasthan Discom – Reality check - Emkay

* We met the senior Management of Rajasthan Discom to understand the pulse on the ground with regards complying with the government’s UDAY norms and the challenges being faced in doing so

* Our assessment suggests that the Jodhpur Discom stands out vis-a-vis its other two counterparts in the state in terms of its approach and execution to improve its operational efficiency and t

26/10/2016 4:18:54 PM | Posted in Broking Firm Views - Sector Report read full news
MarketFresh: FMCG Tracker - Select pricing action across categories; promotional intensity still high - RCML

The RCML RM index inched up 0.6% MoM in Sep’16, with prices of both the crude and agri baskets moving up. Amongst products, P&G increased detergent prices (Ariel powder: +3.8% MoM and Tide Plus: +6.7% MoM) while HUVR hiked toothpaste rates (both its variants by high single digits), even as overall promotion levels remained high. With topline growth likely to remain tepid in FY17 and m

26/10/2016 4:13:07 PM | Posted in Broking Firm Views - Sector Report read full news
Private Sector Banks Reap Good Q2 Profit, Bad Loans Ease - Dynamic Levels

Private sector lenders HDFC Bank Limited and Kotak Mahindra Bank Limited reported second-quarter (Q2) net profit increased on higher interest and fee income, while their bad-loan ratios were less than the previous quarter.

HDFC Bank Limited, the nation's 2nd biggest private sector lender, said on Tuesday that its net profit for July-September quarter (Q2) climbed 20 per cent from

26/10/2016 3:44:15 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty Auto has immediate support placed at 9640 levels - GEPL

NIFTY AUTO    Current Close: 10101.60    Trend : Negative

Observation

* NIFTY AUTO is one of the underperforming sectoral indices, as it closed down by 1.19% at 10101.60, as against a down move of 1.31% in benchmark NIFTY 50.

* After making an all time high @ 10466.90 last month; it has failed to

25/10/2016 4:37:14 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty Pvt Bank holds Bullish momentum - GEPL

NIFTY PVT BANK   Current Close: 11028.40    Trend : Positive

Observation

* NIFTY PVT BANK is the most outperforming sector amongst all the indices last week, as it has moved up sharply by 4.21%, as against an up move of 1.28% in benchmark NIFTY 50.

* In the month of Sep. 2016, the Sector created a FRE

25/10/2016 4:26:18 PM | Posted in Broking Firm Views - Sector Report read full news
India Microfinance - On the brink of a downcycle - RCML

A regional newspaper recently unearthed a troubling microfinance debt situation in the Wardha district of Maharashtra (see Loksatta, 20 Oct). The article states that borrowers in ~10 villages in the district have been facing high debt levels and harsh recovery techniques by lenders, forcing many villagers to demand government intervention. We believe this epitomises a widespread problem for MFI

25/10/2016 4:11:26 PM | Posted in Broking Firm Views - Sector Report read full news
Energy - Monthly volatility aside, fuel consumption growth moderates - Kotak Sec

Petroleum consumption declined 0.7% yoy in September driven by 11% decline in diesel (+20% yoy in Sep-15) and 3% decline in gasoline (+25% yoy in Sep-15), presumably affected by restricted freight/passenger movement due to strong monsoon, as compared to weak monsoon last year. Monthly volatility aside, growth has moderated to 8% in 1HFY17 as compared to 13% in 2HFY16 driven by moderation in gro

20/10/2016 6:04:56 PM | Posted in Broking Firm Views - Sector Report read full news
Textile Shares Stole the Show in Yesterday’s Trade - Dynamic Levels

Stocks of selected textile companies were trading higher by up to 20% on NSE on the back of heavy volumes. Garden Silk Mills, Nahar Spinning Mills, Vardhman Polytex, Raymond, and Indo Count Industries were up 3%-20%, as compared to 0.18% decline in S&P BSE Sensex and 0.21% decrease in Nifty at 3:00 PM.

Garden Silk share price surged 20% to Rs 38.55 after the company announced fund

20/10/2016 2:51:42 PM | Posted in Broking Firm Views - Sector Report read full news
Metals & Mining - Advantage Non-ferrous Players; Ferrous Players to See a Seasonally Weak Quarter - Reliance Sec

Sector Preview

2QFY17E is expected to be strong for non-ferrous players, while the ferrous players are expected to report sequentially weak numbers due to lower steel prices and higher cost of inputs. Despite price hikes in August & September, the average realization is expected to decline by ~4% qoq, exerting pressure on profitability. Sales volum

18/10/2016 5:25:46 PM | Posted in Broking Firm Views - Sector Report read full news
India Utilities - Q2 Preview: Muted power demand to hit PLFs - RCML

We expect a muted Q2 for power generation players NTPC and JSW on account of poor demand from discoms. NTPC should report flattish growth in thermal output and lower PLFs (~74.7% vs. 81.4% in Q1FY17). JSW, with a 27% decline in thermal power generation in Q2, would also be hit by rising cost of imported coal and INR depreciation. However, transmission play PWGR should see a good Q2 led by stron

18/10/2016 3:26:16 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials: Credit Tracker - Credit growth improves to 10.4% - RCML

As per RBI data, credit growth for the fortnight ended 30 Sep’16 increased sharply to 10.4% YoY while deposit growth picked up to 11.3%. We think the sharp improvement in both credit and deposit growth was largely a quarter-end phenomena. Investment growth declined to 6.9% YoY while SLR slid to 26.3%. Credit growth has been weak over the last few months due to low corporate demand and a l

18/10/2016 2:45:56 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty Fin Service has immediate support placed at 7600 level - GEPL

NIFTY FIN SERVICE    Current Close: 7795.40    Trend : Negative

Observation

* NIFTY FIN SERVICE is one of the underperforming sectoral indices, as it has closed down by 2.82% at 7795.40, as against a down move of 1.31% in benchmark NIFTY 50.

* After making an all time high @ 8413.85 last month;

17/10/2016 5:40:05 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty CPSE holds Bullish momentum - GEPL

NIFTY CPSE    Current Close: 2342.50    Trend : Positive

Observation

* NIFTY CPSE is the only positive sector amongst all the indices last week, as it has moved up by 0.58%, as against a down move of 1.31% in benchmark NIFTY 50.

* Last to last week, the Sector created a FRESH 52 week HIGHS at 23

17/10/2016 5:32:57 PM | Posted in Broking Firm Views - Sector Report read full news
Financials – Essar Oil deal to result in significant deleveraging by Essar Group – Motilal Oswal

ICICIBC, Standard Chartered Bank, SBIN, PNB key beneficiaries

EVENT: Essar Oil (EOL) promoters have sold 98% stake in the company to Rosenet, Trafigura and United Capital Partners. The deal values EOL at INR730b (v/s capital employed of ~INR330b). The promoters have also sold their entire stake in Vadinar Port to the same investors for INR133

17/10/2016 3:49:33 PM | Posted in Broking Firm Views - Sector Report read full news
Infosys, TCS results state the wrong in Indian IT sector - Dynamic Levels

A decade and seven years ago an Indian man hailing from the Indian capital enthralled the technology departments of global corporations with a ‘tale of a tempest’ many times more amplified and puffed up than the abundant crop of hair he sported. The latter was a wig while the former was mere bad science fiction gift-wrapped by consultants as a 600 billion dollar hair-raiser. However

15/10/2016 3:00:23 PM | Posted in Broking Firm Views - Sector Report read full news
Q2 Preview of Cement Stocks That Yielded Double Returns - Dynamic Levels

Cement companies had reported subdued profit growth in the previous quarters. But experts say that they may not disappoint in September quarter. Cement companies are anticipated to post a healthy 35 per cent year-on-year growth in EBITDA per ton led by robust cement prices as well as strong inventories of low-cost fuel.

However, an extended monsoon season may have impaired the demand

14/10/2016 5:42:44 PM | Posted in Broking Firm Views - Sector Report read full news
Media Sector - Tariff order – Implementation presumes digitisation - ICICI Sec

The new draft tariff order recommends sweeping changes in the broadcasting sector with respect to content pricing and negotiation. The order goes a long way in democratising content viewing by placing strength in the hands of consumers for package/channel selection. However, for the distribution network model to succeed, TRAI has assumed that phase-4 digitisation will be complete by Dec’1

14/10/2016 4:42:08 PM | Posted in Broking Firm Views - Sector Report read full news
Capital Goods Sector - Likely to be another lacklustre quarter - ICICI Sec

We expect Q2FY17 to largely witness soft profitability growth in the capital goods sector given the muted execution environment and lack of orderbook support barring T&D, water and companies with low base of profitability (BHEL, EIL, TWL). For our coverage universe, we expect sales/EBITDA/PAT to grow by 4.8%/5.0%/2.4% respectively. However, accounting changes (shift to IND-AS) may present a

14/10/2016 4:36:05 PM | Posted in Broking Firm Views - Sector Report read full news
Cement Sector - Volumes improve in North, prices in South and West - ICICI Sec

Our channel checks suggest cement industry volumes are likely to have grown in mid-single digit both MoM and YoY to ~22mnte during Sep’16 (production grew 3.1% YoY during Aug’16 as per DIPP). As intensity of monsoon receded during Sep’16, volumes across most regions except South started to show MoM growth. Volumes were however still impacted by festivals, the inauspicious Shra

14/10/2016 4:10:23 PM | Posted in Broking Firm Views - Sector Report read full news
Media Sector - Heading towards uniform content pricing regime - Motilal Oswal

Larger broadcasters like Zee and Star better off TRAI recently published draft guidelines on non-discriminatory content pricing. While there are still a few unknown variables in the equation – such as a verdict on carriage fees – the Indian content landscape is steadily moving towards a uniform pricing regime. The regulator intends the guidelines to be implemented from April 01, 201

14/10/2016 4:01:36 PM | Posted in Broking Firm Views - Sector Report read full news
Cement Sector - Pricing strength seen in seasonally weak quarter - Motilal Oswal

However, no major price improvement likely in October due to festivals

 All India average realization for 2QFY17 increased marginally QoQ, despite seasonal weakness.

 The West, which witnessed 3% QoQ price decline in 2QFY17, has seen sharp price hikes of ~INR40/bag in the last 3-4 weeks.

 Given the subdued demand due to fe

14/10/2016 3:57:39 PM | Posted in Broking Firm Views - Sector Report read full news