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
India Financial - US roadshow: Key takeaways - RCML

We met ~20 investors during a recent roadshow to the US. Discussions on banking sector NPAs revealed that most investors believe NPAs have been successfully identified, but are skeptical of their resolution. Interestingly, SBIN was the flavour of the season, garnering keener interest than AXSB and ICICBC. As for YES, investors would like to wait for the QIP to conclude before taking any fresh l

14/10/2016 12:35:01 PM | Posted in Broking Firm Views - Sector Report read full news
Banking - Business growth tepid; asset quality banks on recoveries - ICICI Sec

We expect business growth for banks in Q2FY17 to remain muted, with private sector banks continuing to maintain a relatively higher growth momentum. Although core spreads are likely to improve on declining cost of funds and relatively lower slippages, margins are estimated to remain flat sequentially on change in business mix. Sharpe decline in bond yields would aid trading gains and relatively

14/10/2016 12:29:48 PM | Posted in Broking Firm Views - Sector Report read full news
Ports - The September PORTfolio - Emkay

Key highlights

* Indian Major Ports handled 50.7 mn tons in the month of September 2016, clocking a growth of 8.1% YoY, however declined 2.4% MoM, growth was seen in POL (+21.1% YoY), iron ore (+379.5% YoY) and other liquids (+19.8% YoY) offset by decline in other cargo (-36.3% YoY), coal (-13% YoY), container (-2% YoY) and fertlisers (-4.9% YoY)

14/10/2016 12:22:16 PM | Posted in Broking Firm Views - Sector Report read full news
India Pharmaceuticals - Q2 Preview: Another anaemic quarter - RCML

Our pharma universe is headed for a muted Q2FY17 with expected revenue/PAT growth of 10.3%/5.1% YoY. QoQ, EBITDA margins are forecast to contract 140bps and earnings to decline 7.9% due to competition in key products, a lack of approvals and high R&D costs. We see a silver lining from stronger growth in domestic markets (inventory restocking + positive seasonality) and EMs (forex tailwinds)

14/10/2016 12:09:45 PM | Posted in Broking Firm Views - Sector Report read full news
Quarterly Preview Q2FY17 Results, expects a better outlook - Prabhudas

PL universe of stocks is expected to see a 9.4% and 2.8% increase in revenues YoY
and QoQ, increase in EBITDA by 24.1% YoY and contraction of 1.6% QoQ, increase
EBITDA margin by 241bps YoY and a contraction of 91bps QoQ with PAT seeing a
19.5% increase YoY and a decline of 6.3% QoQ. We expect the banks to lead the
earnings growth in FY17 and it is expected to be more

13/10/2016 4:14:35 PM | Posted in Broking Firm Views - Sector Report read full news
Automobile - 2QFY17 Results Preview - Festive Cheers - Reliance Sec

With strong volume growth we expect our Auto Universe to register 5.6% yoy & 10.2% yoy rise in revenue and EBITDA, respectively in 2QFY17. Excluding TML, we expect our coverage universe to register 17.1% yoy & 11.4% yoy rise in revenue and EBITDA, respectively as two-wheeler universe is expected to register better revenue growth compared to four-wheeler universe. Our two-wheeler univers

13/10/2016 3:47:24 PM | Posted in Broking Firm Views - Sector Report read full news
India Energy - Q2 Preview: Gas utilities to lead earnings growth - RCML

Q2FY17 would be a test of efficiency for downstream and upstream oil companies as macro parameters such as oil prices, USD/INR and benchmark GRMs remain flattish QoQ. OMCs are unlikely to see any significant gains from inventories, while sustaining GRMs could be a challenge, especially for HPCL. RIL’s earnings could surprise yet again, driven by improving petrochemicals spreads. Gas utili

13/10/2016 11:56:35 AM | Posted in Broking Firm Views - Sector Report read full news
Power & Capital Goods - 2QFY17 Results Preview - Poor Power Demand to Impact Revenues - Reliance Sec

Power Sector witnessed lower generation growth of 1.3% yoy in 2QFY17 on the back of lower system demand despite higher coal availability. All-India generation rose by 1.3% yoy to 287bn units (BUs) during the quarter. Thermal generation rose by meagre 0.3% yoy lower owing to lower system demand despite higher coal inventory, while hydel generation improved by 3.5% yoy due to improved reservoir l

13/10/2016 11:51:47 AM | Posted in Broking Firm Views - Sector Report read full news
Cement - 2QFY17 Results Preview - Resilient pricing amid seasonal crisis to aid performance - Reliance sec

2QFY17E Sector Preview

Favourable realizations along with cost benefits is likely to aid cement companies to continue to report healthy growth in earnings on yoy basis. The companies under our coverage are likely to witness EBITDA and earnings improvement to the tune of ~23% yoy & ~47% yoy, respectively. However, seasonal overhang and hardening of

13/10/2016 11:36:00 AM | Posted in Broking Firm Views - Sector Report read full news
Q2FY2017 earnings preview - Sharekhan

Q2FY2017 to be another weak quarter:

The headline growth figures for the Sensex companies do not inspire much confidence in Q2FY2017 also. The aggregate net profit of the Sensex companies is likely to remain flat in the quarter despite a mid-single digit growth in the revenue and a margin expansion of close to 50 basis points as compared with the corr

13/10/2016 11:32:33 AM | Posted in Broking Firm Views - Sector Report read full news
FMCG - 2QFY17 Results preview - More of the same - Reliance sec

We expect our Consumer Goods coverage universe consisting of 14 companies to report 8.6% and 13.4% growth in net sales and net profit, respectively for the quarter ended September 2016. Excluding Nestle (lower base effect), overall growth is likely to be 7.6% for revenues and 12.3% for net profit for the same period.
 
Divergent Trends in Volume Growth

13/10/2016 11:30:11 AM | Posted in Broking Firm Views - Sector Report read full news
Auto Sector Update > Q2FY2017 earnings preview - Sharekhan

Q2FY2017 result expectations

Improved rural sentiment coupled with the onset of the festive season to lead to a double-digit top line growth:

Sharekhan’s automobile universe (ex Tata Motors [TAMO]) is expected to register a healthy double-digit top line growth of 14% year on year (YoY) driven mainly by

13/10/2016 11:25:35 AM | Posted in Broking Firm Views - Sector Report read full news
Metal & Mining Sector Update - Kotak Sec

Global steel prices improved marginally in the month of September 2016, but demand continued to remain tepid. Despite the tepid demand, India and China registered the higher production in the month of September 2016. On the raw material front, iron ore prices fell to US$57/tonne, while spot coking coal prices rose by ~54% to over US$200/tonne in the last month. Given the sharp increase in cost

13/10/2016 11:18:28 AM | Posted in Broking Firm Views - Sector Report read full news
2QFY17 PREVIEW - Return of cyclicals; multi-quarter high growth - Motilal Oswal

2QFY17 – earnings growth at nine-quarter high We expect 2QFY17 earnings performance to mark (a) recovery in revenue growth (back on growth path after 8 quarters), and (b) continued recovery in PAT growth (9 quarter high PAT growth). MOSL Universe revenue should grow 2%, the first positive print since 2QFY15. EBITDA growth is likely to be 17%, the highest in 8 quarters. PAT is expected to

12/10/2016 4:34:19 PM | Posted in Broking Firm Views - Sector Report read full news
India PharmaScope - Healthy growth despite seasonal weakness - RCML

The Indian Pharmaceutical Market (IPM) grew at a healthy rate of 12.6% YoY in Sep’16, albeit lower than the 15.3% figure seen in August due to seasonality in the anti-infective and anti-malarial segments, which curbed volume growth  (+6.5% vs. +9.1% in Aug). The NLEM market was hit by list additions and price cuts, while FDCs slumped on the back of distressed volumes and muted price

12/10/2016 4:21:48 PM | Posted in Broking Firm Views - Sector Report read full news