Telecom Sector - Spectrum auction guidelines - ICICI Sec

Reason for report: Sector update

The Department of Telecommunications (DoT) released its notice inviting applications for the spectrum auction that is scheduled to start on 29-Sep’16. The key positive, though expected, is the increased spectrum availability in 1800MHz band due to spectrum harmonisation. We believe bidding intensity would be benig

12/08/2016 5:55:37 PM | Posted in Broking Firm Views - Sector Report read full news
India PharmaScope - Growth rebounds in July - RCML

Growth momentum in the Indian Pharmaceutical Market (IPM) recovered to 9.5% YoY in July after three weak months, largely due to a strong showing in the anti-infective and respiratory segments. Notably, volumes ramped up across the market despite prolonged NLEM pricing pressure. The FDC market improved led by better volumes and modest price hikes, with the respiratory segment posting strong doub

12/08/2016 5:47:31 PM | Posted in Broking Firm Views - Sector Report read full news
India Energy - Consumption uptrend to benefit cyclicals - RCML

Recent reforms have transformed downstream companies into an attractive bet on the India consumption growth story, especially oil marketing companies (OMCs). Benefits of reforms would eventually reach upstream companies as well, but not before a sharp rally in oil prices (to +US$ 60/bbl). RIL offers one of the best plays on the improving oil demand outlook through its refining and petrochemical

12/08/2016 5:37:04 PM | Posted in Broking Firm Views - Sector Report read full news
Monthly Round Up - Automobile Sector - Karvy

•       Domestic Auto volumes grew by 13.2% YoY and 2.1% MoM to 1,833,976 units in Jul’16, primarily due to high growth in two wheeler segment. Industry volume performance was decent with all the segments recording positive volume growth. Though, M&HCV’s growth sharply fell and turned negative for the first time in last 2 years. 

•  

12/08/2016 5:26:16 PM | Posted in Broking Firm Views - Sector Report read full news
India IT Services - Q1 Review: Rev-EPS growth divergence continues - RCML

Indian IT posted a mixed Q1FY17 with only a few players (TCS, HCLT) performing well. Mid-caps put up a poor show with a miss on both revenue and margins. Revenue/EBIT/EPS growth for our IT universe stood at 13.9%/10.2%/9.4% YoY. Divergence between revenue and EPS growth continued as pricing pressures drove margins lower, more so for smaller and concentrated players. We expect earnings growth fo

11/08/2016 3:09:25 PM | Posted in Broking Firm Views - Sector Report read full news
Indian Steel Industry: Volume analysis - Consumption continues to be muted! - Emkay

Domestic steel consumption continues to be weak in July. We believe, this is due to poor demand and seasonality as well. Recent uncertainty on continuation of MIP and imposition of anti- dumping duty also might have impacted the same. Good monsoon meanwhile, keeps some hope alive on demand recovery in Q3 and Q4 FY17. Supply growth however will continue to remain strong due to recently added cap

10/08/2016 3:23:43 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty Metal holds Bullish momentum - GEPL

NIFTY METAL    Current Close: 2517.55    Trend : Positive

Observation

* NIFTY METAL is one of the most outperforming sector amongst the indices last week, as it has moved up sharply by 3.92%, as against a positive move of 0.52% in benchmark NIFTY 50.

* In the previous week, the Sector has made a

8/08/2016 2:59:29 PM | Posted in Broking Firm Views - Sector Report read full news
India IT Services - Cognizant: Weak guidance; gloomy outlook for Indian IT - RCML

Key takeaways from Cognizant’s (CTSH) Q2CY16 results are: (1) Sharp downgrade to CY16 US$ revenue growth guidance from 10-13% to 8.5-9.5% YoY; (2) Q3 US$ revenue growth guidance weak at 1.8-3.0% QoQ; (3) Q2CY16 US$ revenues grew 5.2% QoQ (meeting the guidance) led by broad-based growth across service lines and geographies. The guidance revision is reflective of the bleak demand outlook an

6/08/2016 5:15:23 PM | Posted in Broking Firm Views - Sector Report read full news
Cement Sector - Dealers check: Moderate price correction on seasonal impact - Reliance sec

All India average cement prices corrected by ~2% month-on-month (m-o-m) in July’16 mainly driven by a decline in construction activities owing to heavy rains in most parts of the country. Notably, though Northern & Central regions witnessed maximum correction to the extent of ~4- 5% m-o-m in July’16, the prices in these regions are still ruling higher (~26% yoy &~14% yoy) du

6/08/2016 5:12:46 PM | Posted in Broking Firm Views - Sector Report read full news
Automobiles Sector - PVs outshine while M&HCVs post surprise decline - ICICI Sec

Reason for report: Monthly volume analysis

Two wheelers: Unified trend in scooters, motorcycles was mixed

* Hero MotoCorp, (>85% of volumes is motorcycles) grew by 9% YoY (FY17YTD: 7% YoY) to 531,113 units amid a lower base but declined by 3% MoM basis, while TVS Motors motorcycle volumes rose strongly at 23% YoY (FY17YTD:

6/08/2016 5:05:59 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials: Credit Tracker - Jun’16 non-food credit growth dips to 7.9% - RCML

Non-food credit growth in Jun’16 declined to 7.9% YoY as compared to 8.4% in May. While growth in the services sector remained stable at 9.2% YoY, growth in agriculture as well as retail declined to 13.8% and 18.5% respectively. Industry credit remained weak at 0.6% YoY. Infrastructure loans declined by 2.1% YoY as power sector loans fell 7.7% and growth in the telecom sector slowed down

6/08/2016 4:18:05 PM | Posted in Broking Firm Views - Sector Report read full news
Oil & Gas Sector - Monthly round up – Aug’16 - Emkay Global

* Crude oil price surged up:

Crude oil prices dropped down MoM by -6.7%, mainly due to higher supply from Nigerian and Algerian oil which was earlier used to be sold in United States. Thus, the producers are forced to drop prices. Also with no conclusion on freezing of output Russia has continue to produce more. Light-Heavy (L-H) differential broadene

6/08/2016 4:01:08 PM | Posted in Broking Firm Views - Sector Report read full news
Metals Sector- A different form of MIP? - ICICI Sec

Reason for report: Sector update

DG Antidumping (DGAD) has proposed provisional antidumping duty on HR Coils/sheets/plates (look inside for further details of specs). A non injury price has been calculated for domestic players to ascertain the extent of domestic injury caused by imports between 1st of July 2015 to 31st December 2015. Similarly a normal

6/08/2016 3:54:08 PM | Posted in Broking Firm Views - Sector Report read full news
Automobile Sector - Eyes on 2HFY17 - Reliance sec

No major surprise is observed in demand pattern other than a moderation in M&HCV sales as July is considered to be a seasonally slow month for dispatch due to (1) monsoon showers which limit consumer footfall and (2) lack of major occasions. We continue to believe that volume dispatches would be better in 2HFY17E compared to 1HFY17E on the back of (1) improvement in urban demand on rise in

6/08/2016 3:46:58 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials: Credit Tracker - Credit growth stable at 9.7% - RCML

As per RBI data, credit growth for the fortnight ended 22 July remained stable at 9.7% YoY vs. 9.8% in the previous fortnight. Deposit growth too was steady at 9.5% YoY. However, investment growth improved to 6.4% YoY from 6% witnessed earlier, while SLR was stable at 26.9%. Credit growth has been weak over the last few months due to low corporate demand and a lack of fresh investments. We do n

6/08/2016 2:48:18 PM | Posted in Broking Firm Views - Sector Report read full news
India Energy - Gas consumption trends remains robust - RCML

* LNG imports continue their uptrend:

Data on the natural gas sector points to a (8.3%) MoM/14% YoY increase in LNG imports to ~1.9mmt for Jun’16; while for Q1FY17, LNG imports are up 33% YoY to ~6.1mmt. These could be on account of inventory pile up before Dabhol re-gasification shuts down for monsoons. Overall gas consumption declined ~1.5% in

6/08/2016 2:46:20 PM | Posted in Broking Firm Views - Sector Report read full news
Cement Sector - Heavy rains drag demand temporarily; outlook remains strong - Prabhudas

Our channel checks indicate weak demand across India on account of heavy rains with fall in the range of 6‐7% YoY. While strong monsoon across all regions were a dampener in July, it is expected to result in a better demand environment in H2FY17, as two back‐to‐back droughts had led to slump in rural demand and fall in construction activity. Despite the lacklustre demand, prices continue

6/08/2016 1:34:55 PM | Posted in Broking Firm Views - Sector Report read full news
Metallica - MIP uncertainty continues; Zn highest since May15 - Emkay

Key observations

 After recent decline, steel prices in the international markets improved slightly. Higher trade restrictions, steps by certain Chinese producers to cut productions have helped in this. Domestic prices however, weakened due to poor demand

 The CIS (FoB Black Sea) HRC prices rose by 2.8% MoM to US$ 367.5/ tn. Chinese HR

4/08/2016 3:16:15 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty Media enters a Breakout stage - GEPL

NIFTY MEDIA    Current Close: 2815.20      Trend : Positive

Observation

* NIFTY MEDIA is one of the leading outperforming sectors amongst the indices last week, as it has moved up sharply by 4.98%, as against a positive move of 1.14% in benchmark NIFTY 50.

* In the last week, the Sector has

1/08/2016 5:02:58 PM | Posted in Broking Firm Views - Sector Report read full news
Agri Input & Chemicals - Skymet concall, this season clearly benefiting from normal monsoon - Emkay

*  In a recent concall hosted by us with the team of Skymet (private weather forecasting agency), the Skymet team has shared encouraging outlook on monsoon this season with 6-8% above normal rainfall despite delayed start

*  June month monsoon has been delayed (11% deficit) but pick up in July (15% excess) led to 2% surplus till date with 83% of the country receiving normal/

30/07/2016 10:41:39 AM | Posted in Broking Firm Views - Sector Report read full news
Epic Story- The Rise of NBFC Stocks - Dynamic Levels

No one is unaware of the fact that NBFCs have gone through a very tough time in last four years. Regulatory or Gold Prices, Nothing was falling in place. Their identity was tainted as being the companies that are merely obtaining a regulatory arbitrage over banks. It didn’t stop here, they were also considered as potential systematic risk to the financial sector. The entire stock market h

29/07/2016 4:45:54 PM | Posted in Broking Firm Views - Sector Report read full news
Retail Sector - Growth has tapered, but levers well in place - Emkay

Key takeaways from FY16 annual reports

* Indian retail remains well placed to benefit from increased discretionary spend and revival in urban demand. Industry pegs retail sector growth at 14% and modern trade growth at 22% to grow to USD 1.2tn and USD 160bn respectively by 2020

* Overall growth across our coverage has tapered in FY16 on acco

28/07/2016 4:37:45 PM | Posted in Broking Firm Views - Sector Report read full news
India Strategy: Weekly Musings - Gsec exuberance camouflages reflationary undercurrents - Emkay

The recent softening in 10 Yr Gsec yields to 7.25% is in contrast to our earlier prognosis of a hardening trend to 8%. Deciphering from our model, the recent decline is contributed by an unexpected 30bps drop in bank credit/FCA ratio to sub 3 levels and a sharp 80bps decline in US treasury yields to 1.57% since Jan’16. Aggressive OMO purchase by RBI and private banks have overweighed net

27/07/2016 4:25:55 PM | Posted in Broking Firm Views - Sector Report read full news