Time to Invest in Textile in the Bull Market - Dynamic Levels

This sector started performing post Budget as:

* 100% FDI is allowed under the automatic route in the textile sector; investment is subject to all applicable regulations and laws.

* Government introduced the scheme for integrated Textile Parks, this will provide world class infrastructure to the sector. Till date 57 textile parks have been st

28/09/2016 4:12:06 PM | Posted in Broking Firm Views - Sector Report read full news
Telecom Sector - RJIO aggression disrupts voice estimates - ICICI Sec

In an exercise to reassess our projections for the sector, we have cut our voice tariff by 20% in next two years, but maintain our data tariffs. We ascribe an aggressive RMS of 10.2% to Reliance Jio (RJIO) by FY20E (~50% of inc. industry RMS). We see a slower revenue growth of ~5% for Bharti/Idea during FY16-FY18E. We see tailwinds in Bharti’s cost, thus restricting EBITDA margin contract

28/09/2016 4:05:20 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty FMCG has immediate support placed at 21600 levels - GEPL

NIFTY FMCG   Current Close: 22315.75   Trend : Negative

Observation

* NIFTY FMCG is one of the most underperforming sectoral indices last week, as it has closed down by 1.96% at 22315.75, as against an up move of 0.59% in benchmark NIFTY 50.

* The Sector has made an all time high @ 23219.30 couple of week

27/09/2016 12:16:31 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty CPSE holds Bullish momentum - GEPL

NIFTY CPSE   Current Close: 2259.05   Trend : Positive

Observation

* NIFTY CPSE is one of the outperforming sectors amongst the indices last week, as it has moved up by 2.51%, as against an up move of 0.59% in benchmark NIFTY 50.

* The Sector has given a break out from the long term downward slopping Tren

27/09/2016 12:11:29 PM | Posted in Broking Firm Views - Sector Report read full news
RCom, Aircel to Bid Separately in Spectrum Auction - Dynamic Levels

Telecom operators Reliance Communications (RCom) and Aircel, which had announced their merger on the last date of submission of the spectrum auction application, plan to bid separately in the upcoming spectrum auction where all the 7 applicants - Reliance Jio, Bharti Airtel, Idea Cellular, Vodafone, Tata Teleservices,RCom and Aircel, have made it to the final list of bidders. According to the i

25/09/2016 5:46:05 PM | Posted in Broking Firm Views - Sector Report read full news
MarketFresh: FMCG Tracker - Input costs rise MoM; offer intensity still high - RCML

The RCML RM index increased sequentially (+1.9% MoM) in Aug’16, with prices of both crude and agri baskets inching up. We saw fresh pricing action in biscuits (BRIT – Tiger +7.3% MoM; 50-50 Maska Chaska +10% MoM) and skin care (HUVR – FAL multivitamin cream: +3.1% MoM), even as overall promotion intensity remained high. With sales growth likely to remain anemic in FY17 and mar

25/09/2016 5:36:58 PM | Posted in Broking Firm Views - Sector Report read full news
Pharma Sector - Growth revives but sustainability uncertain - Emkay

Indian Pharma Market- Monthly Checkup

* Indian Pharmaceutical market (IPM) exhibited robust growth for second consecutive month at 18.4% in August 2016 as against growth of 14.9% in July 2016 and growth of 9.8% in June 2016

* Better monsoon and uncertain climate has resulted in many seasonal related ailments which has led to strong growth in

25/09/2016 5:22:20 PM | Posted in Broking Firm Views - Sector Report read full news
Tracking Steel Dynamics - Domestic consumption lags output; China still a worry! - Emkay

Amid expectations of stronger demand, the data continues to show tepid growth in steel consumption in India. As per the JPC (Joint Plant Committee) data, the YTDFY17 finished steel consumption growth has been just 1.3%, while, production growth of finished steel has been robust at ~8% for YTDFY17. Meanwhile, despite substantial fall in imports and jump in exports, India continues to be a net im

23/09/2016 4:53:17 PM | Posted in Broking Firm Views - Sector Report read full news
Cement Sector - Price survey, production analysis and capacity details - Emkay

* In most parts of the Northern region, cement prices declined by Rs5-10/bag in the last one month. Dealers have been notified about price hikes of Rs10-20/bag in few parts of the region, but that has not become effective till now

* Cement prices declined by Rs5-20/bag in most of the Central region in last one month, barring Indore, where dealers indicated price hike of Rs5/bag. Deman

23/09/2016 4:24:18 PM | Posted in Broking Firm Views - Sector Report read full news
FMCG Sector - Premiumisation – Way to grow - Emkay

What to look for in the next five years…

Premiumisation to eclipse volume as growth driver

* With penetration levels peaking out in most of the categories, focus is on premiumisation. This is evident in the emerging trend of rising proportion of premium products

* Leaders are increasingly ackn

22/09/2016 4:34:12 PM | Posted in Broking Firm Views - Sector Report read full news
Ports - The August PORTfolio - Emkay Global

Key highlights

* Indian Major Ports handled 51.9 mn MT in the month of August 2016, a growth of 2% YoY, however declined 3.4% MoM, growth was seen in POL (+8.9% YoY), containers (+3.7% YoY) and other cargo (+26.3% YoY) offset by decline in other liquids (-19.6% YoY), coal (-9.9% YoY), iron ore (-62.9% YoY) and fertlisers (-24.3% YoY)

* Mormug

22/09/2016 4:27:40 PM | Posted in Broking Firm Views - Sector Report read full news
Cement Sector - Cost push increasing; realization growth to offset impact - Motilal Oswal

Power and fuel cost to remain firm in short term

* Average petcoke price increased 30% QoQ and imported coal price increased 18% QoQ in 2QFY17.

* This is likely to result in an INR58-102/ton or 6-26% increase in power and fuel cost for cement companies from 1QFY17 levels for the remaining part of FY17.

* However, EBITDA/ton is unli

21/09/2016 6:02:45 PM | Posted in Broking Firm Views - Sector Report read full news
Stellar Comeback aided by Ferrous Companies - Reliance sec

Our Metals & Mining universe recorded 8% qoq (4% yoy) revenue de-growth in 1QFY17, largely due to Hindustan Zinc (HZL) reporting subdued numbers owing to decline in output which affected the volume. Excluding HZL, revenue of our universe remained essentially flat on yoy basis despite fall in LME prices. The sequential decline could be attributed to seasonality factor (JanMar quarter is the

21/09/2016 5:54:21 PM | Posted in Broking Firm Views - Sector Report read full news
India Metals & Mining - Haircuts essential to prune steel sector debt -RCML

Our analysis of the Q1FY17 performance of six stressed steel companies (total borrowings of Rs 710bn) suggests that debt servicing will be possible only if banks take a 35-40% haircut on these loans. In Q1, the six players reported cumulative interest costs of Rs 19bn, 2.7x more than their combined EBITDA of Rs 6.9bn. While higher capacity utilisation could raise EBITDA levels, we expect most g

21/09/2016 5:37:01 PM | Posted in Broking Firm Views - Sector Report read full news
Power Sector - SEB’s Finance - Improvement on the back of lower cost - ICICI Sec

Power Finance Corporation’s (PFC) recent report on the health of SEBs highlights the interesting trend of improvement in financial performance of SEBs primarily on the back of lower Average Cost of Supply (ACS) in FY15. AT&C losses widened YoY as the base year had benefit of sharp reduction in Uttar Pradesh’s AT&C losses (on receipt of payment from the state government). Whi

21/09/2016 5:30:53 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials: Credit Tracker - Deposit growth climbs back to 9.8% - RCML

As per RBI data, credit growth for the fortnight ended 2 Sep increased to 9.8% YoY. Deposit growth that had declined to 9.2% in the previous fortnight rebounded to 9.8%. Investment growth increased to 7.3% YoY from 5.7% earlier, while SLR remained largely stable at 27%. Credit growth has been weak over the last few months due to low corporate demand and a lack of fresh investments. We do not se

19/09/2016 5:38:21 PM | Posted in Broking Firm Views - Sector Report read full news
India PharmaScope - Strong volume-led growth in Aug’16 - RCML

The Indian Pharmaceutical Market (IPM) witnessed strong growth of 15.3% YoY in August, led by a ramp-up in volumes (+9.1% vs. 12M avg. of 2.5%) on the back of strong seasonality in the anti-infective and respiratory segments. The FDC market slumped further, with distressed volumes and muted price hikes. Therapy-wise, the respiratory segment posted solid growth at 32.3% and the anti-infective an

19/09/2016 5:31:35 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty Metal has immediate support placed at 2250 levels - GEPL

NIFTY METAL    Current Close: 2450.90     Trend : Negative

Observation

* NIFTY METAL is one of the most underperforming sectoral indices last week, as it has closed down sharply by 5.99% at 2450.90, as against a down move of 0.98% in benchmark NIFTY 50.

* The Sector found a strong resistance @ 2

19/09/2016 4:29:13 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty FMCG holds Bullish momentum - GEPL

NIFTY FMCG    Current Close: 22762.50     Trend : Positive

Observation

* NIFTY FMCG is the only outperforming sectors amongst the indices last week, as it has closed in GREEN & was marginal up by 0.26%, as against a down move of 0.98% in benchmark NIFTY 50.

* In the previous week, the Sector

19/09/2016 4:22:06 PM | Posted in Broking Firm Views - Sector Report read full news
Telcos Remain Mum, Jio Makes Noise In Spectrum Sale - Dynamic Levels

Seven telecom operators have deposited over 14 cr rupees as earnest money for the spectrum auction which is scheduled to commence from 1st October. The telcos have to deposit 10-12% of the reserve price of the spectrum they are to bid for. The EMD - earnest money deposit by telcos points out to a muted response to the spectrum auction since at this rate airwaves worth about Rs.1.40 lac crore co

17/09/2016 2:27:24 PM | Posted in Broking Firm Views - Sector Report read full news
Top sector gainers today - Banks and FMCG Beverages - Dynamic Levels

The dawn of 16th September saw the rise of the Banking and FMCG Beverage Sectors. The Banking Sector stocks rallied up 1.92 per cent while the FMCG Beverage Sector stocks surged 2.48 per cent.

 

Banking Sector:

Yesterday, a US data showed that factory orders and retail sales were below market expectations. This led to a rise in

17/09/2016 2:19:45 PM | Posted in Broking Firm Views - Sector Report read full news
Chemical Sector: The stellar of D-Street Today - Dynamic Levels

The Indian Chemical Sector is quite diverse. It produces a range of products including petrochemicals, plastics, Pharmaceutical ingredients and paint. Chemical is one of the vital sectors of India in terms of both production and export performance. As per the latest data of Association of Chemical Companies the sector contributes 7% of GDP and 13% of both industrial output and total exports. In

16/09/2016 5:14:24 PM | Posted in Broking Firm Views - Sector Report read full news
Auto Sector Grows Firm on the Upcoming Festive Season - Dynamic Levels

According to a recent report passenger vehicle (PV) along with the two-wheeler segments of the automobile industry have posted robust double digit growth in the month of August.

 

The Growth Inputs

The study indicates a strong revival in demand, backed by improved rural sentiment as well as the increasing urban demand due to i

16/09/2016 5:06:25 PM | Posted in Broking Firm Views - Sector Report read full news
Cement Sector - Volumes remain muted in Aug’16; prices remain firm - ICICI Sec

Reason for report: Sector update

Our channel checks suggest cement industry volumes are likely to have grown in low single-digit YoY to ~22mnte during Aug’16 (production grew 1.4% YoY during Jul’16 as pe r DIPP) impacte d by he av y rains and sand mining issues, particularly in the North and the Central regions. The East likely continued it

16/09/2016 4:37:19 PM | Posted in Broking Firm Views - Sector Report read full news