Aviation Sector - October-16 domestic air passenger growth at 23.3% YoY - Motilal Oswal

Domestic load factor at 81.1%; IndiGo’s domestic ASK/RPK share highest

* Domestic air passengers in India grew 23.3% YoY to 8.6m in Oct-16 (v/s +18.8% in Oct- 15; +24% in 2QFY17; ~22% in FY16). However, we believe this strong growth would be at the cost of yields, as seen in headline fares.

* While Oct-16 ASK growth stood at 21.5% YoY

24/11/2016 6:02:36 PM | Posted in Broking Firm Views - Sector Report read full news
Indian Chemical Sector rejoiced in Today’s Trading Session - Dynamic Levels

The Indian chemical sector is rejoicing in Dalal Street today. Major chemical companies like Chemfab Alkalis, Tirumalai Chemicals, Kiri Industries, Philip Carbon, IGPL, Meghmani Organics etc have all surged more than 5 per cent today.

The much anticipated Constitution Amendment Bill - Goods and Services Tax, GST - was passed in the Parliament recently and it will most probably be impl

24/11/2016 5:53:07 PM | Posted in Broking Firm Views - Sector Report read full news
Post Demonetization Drive, Leading Banks Cut Deposit Rate - Dynamic Levels

After Prime Minister Narendra Modi directed that rates are on the way down, the State Bank of India cut bulk deposit rates by up to 1.9 per cent taking advantage of the surge in deposits following demonetization. Others including, ICICI Bank and HDFC Bank, have cut deposit rates by up to 25 basis points since the system is awash with liquidity. Bankers and analysts are anticipating a 25-50 basi

24/11/2016 5:22:12 PM | Posted in Broking Firm Views - Sector Report read full news
Automobile- Channel Checks Update - JHP Sec

Economic growth has taken a backseat after the government decided to ban INR 500 and INR 1000 notes as legal tender. Amongst the most affected, is the automobile industry. Within the automobile industry, 2 wheeler segment is most vulnerable as the share of cash sale in total sales is higher for the segment. We conducted a dealer channel check to assess the impact of currency ban and get a feel

24/11/2016 3:47:27 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials: Credit Tracker - Deposit growth rises to 11.7% – much more to come - RCML

As per RBI data, deposit growth for the fortnight ended 11 November increased to 11.7% YoY – note that the data includes deposits collected by banks for only two days post-demonetisation. As per the RBI, banks have received deposits worth Rs 5.1tn up to 18 November (~Rs 6n to date as per media reports). Credit growth weakened further to 7.9% while investment growth declined to 8.1% YoY. W

24/11/2016 3:43:40 PM | Posted in Broking Firm Views - Sector Report read full news
India Automobiles - Uncertainty looms, expect pain till Q4FY17: FADA - RCML

We hosted a conference call with the Federation of Automobile Dealers Association (FADA) to discuss the impact of demonetisation on India’s automobile industry. John K Paul, President, and Nikunj Sanghi, Director – International Affairs & Global Relations, represented FADA. The following are key takeaways from the interaction:

 

* Bookings

24/11/2016 3:30:15 PM | Posted in Broking Firm Views - Sector Report read full news
Chemical Sector Declines Due To Rise In Crude Oil Prices - Dynamic Levels

Kiri Industries, Bhageria and IGPL shares were trading 5 per cent lower on the National Stock Exchange (NSE) today. Chemical sector was seen moving down on the back of global crude prices rising on expectations that the OPEC - Organization of the Petroleum Exporting Countries will reach a deal in its Vienna meeting later this month to cut output. Crude oil is a major raw material used in making

22/11/2016 4:13:44 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty Media has immediate support placed at 2400 levels - GEPL

NIFTY MEDIA   Current Close: 2585.15    Trend : Negative

Observation

* NIFTY MEDIA is one of the most underperforming sectoral indices, as it closed down by a good 5.57% at 2585.15, as against a down move of 2.68% in benchmark NIFTY 50.

* The Sector had created an all time high @ 3158.30 in the month

21/11/2016 5:56:26 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty PSU Bank holds Bullish momentum - GEPL

NIFTY PSU BANK        Current Close: 3382.60      Trend : Positive

Observation

* NIFTY PSU BANK is the only sector amongst all the indices that has closed in the GREEN last week. It moved up by 1.88%, as against a down move of 2.68% in benchmark NIFTY 50.

* In the last to last wee

21/11/2016 5:30:46 PM | Posted in Broking Firm Views - Sector Report read full news
Sweetness Returns to the Indian Sugar Sector - Dynamic Levels

Sugar Sector continues to show signs of robust growth in the early trading session of 21st November 2016 (today) on the back of the commencement of the early sugar crushing session in various states this year.

Major sugar companies such as Oudh Sugar, Upper Ganges Sugar, Dalmia Bharat, Dwarikesh Sugar, Dhampur Sugar have been on the upper surge since 18th November 2016. In today&rsquo

21/11/2016 3:24:39 PM | Posted in Broking Firm Views - Sector Report read full news
Telecom Sector - RJio channel check – Pushing the pedal harder - Motilal Oswal

We conducted a channel check with RJio’s center heads and ex-senior management (including marketing and strategy heads). We discussed current on ground situation, nearterm execution strategy, strategic vision and market positioning over a 2-4 year horizon. From this, we understand that RJio has extended its distribution channel from just own retail stores previously to modern outlets and

18/11/2016 2:32:36 PM | Posted in Broking Firm Views - Sector Report read full news
India Pharmaceuticals - Q2 Review: Some hits, some misses - RCML

Our pharma universe posted Q2FY17 revenue growth of 11.3% YoY, broadly in line with estimates. EBITDA margins were 120bps higher than expected at 25.7% driven by lower R&D spends (vs. guidance) and a better geographical mix (resilient US + healthy domestic sales). We continue to prefer mid-caps (ARBP, CDH, GNP), though we also upgraded SUNP to BUY after the recent correction given a positiv

18/11/2016 2:25:09 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials - Regulatory forbearance ahead; structural story intact - RCML

* Regulatory forbearance likely for SMEs and small borrowers…:

Media reports suggest that the government may ask the RBI to consider lenient loan classification norms, especially for SME and MSME units. Loans may not need to be classified as NPA if interest or repayment is overdue for more than 90 days.

 

*

18/11/2016 2:22:34 PM | Posted in Broking Firm Views - Sector Report read full news
India Consumer - Froth starting to come off - RCML

Our consumer universe posted Q2FY17 net sales/EBITDA/adj. PAT growth of 8%/9%/13% YoY. We have been underweight on the sector for the last 12 months and continue to find the risk-reward unattractive even after the recent correction, as valuations need to be adjusted to a lower earnings profile for the sector (10-12% over FY16-FY19E vs. 20% over FY08-FY16). We retain ITC as BUY and find risk-rew

17/11/2016 3:13:22 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials - HFCs more sensitive to property prices than interest rates - RCML

In the wake of cash demonetisation, the general consensus is that property prices across India are set for a 10-20% correction. This is negative for HFCs as our analysis suggests that property prices rather than volumes underpin HFC loan growth. HFC margins too could come under pressure as (1) benefits of lower wholesale cost from falling yields may be short-lived and (2) competition from banks

17/11/2016 3:10:02 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty Realty has immediate support placed at 155 levels - GEPL

NIFTY REALTY     Current Close: 168.35    Trend : Negative

Observation

* NIFTY REALTY is one of the most underperforming sectoral indices, as it closed down by a massive 13.84% at 168.35, as against a down move of 1.63% in benchmark NIFTY 50.

* After facing strong resistance @ 215 - 220 level fr

16/11/2016 3:19:38 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty PSU Bank holds Bullish momentum - GEPL

NIFTY PSU BANK    Current Close: 3320.25    Trend : Positive

Observation

* NIFTY PSU BANK is one the most outperforming sector amongst all the indices last week, as it has moved up by a massive 12.13%, as against a down move of 1.63% in benchmark NIFTY 50.

* In the last week, the Sector has given

16/11/2016 3:12:43 PM | Posted in Broking Firm Views - Sector Report read full news
India PharmaScope - Volumes still under pressure - RCML

The Indian Pharmaceutical Market (IPM) grew at a slow 8.6% YoY in Oct’16, due to a high base and weak anti-infective/anti-malarial sales. Volume growth tumbled to 2.6% YoY from 6.5% in Sep’16, while pricing and new launches were broadly unchanged. The NLEM and non-NLEM markets remained under pressure, as did the FDC market. Therapy-wise, the anti-diabetic, cardiac and dermatology se

15/11/2016 3:43:38 PM | Posted in Broking Firm Views - Sector Report read full news
Automobile Sector - Monthly Update - Healthy Festive Season - Reliance sec

While most OEMs registered strong yoy growth, few players like Bajaj Auto (BAL), Hero MotoCorp (HMCL) & Maruti Suzuki India (MSIL) saw weakness in their respective dispatch numbers on sequential basis. As per the auto dealers, though festive season – which started on weak note – improved around Diwali, while other factors like payouts of 7th Pay Commission, availability of new m

15/11/2016 2:56:46 PM | Posted in Broking Firm Views - Sector Report read full news
India Consumer Sector - A BRAND new world - RCML

We forecast a 7.9% CAGR in India’s apparel and retail sector to Rs 300bn over FY16-FY20 as an increasingly youthful, urbanised consumer base leverages rising income levels to uptrade to branded goods. We expect (1) Indian players to gradually match global peers on margins (as store costs moderate) and ROCE (as working capital cycle ease), (2) big brands to dominate, and (3) e-shopping to

15/11/2016 2:51:00 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials: Credit Tracker - Credit growth improves to 9.1% - RCML

As per RBI data, credit growth for the fortnight ended 28 Oct’16 improved to 9.1% YoY while deposit growth declined to 9.8%. Investment growth declined marginally to 8.4% YoY while SLR remained stable to 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 not see material improvement ahead and forecast 10-11% YoY g

14/11/2016 12:22:38 PM | Posted in Broking Firm Views - Sector Report read full news
T&D Equipment - PGCIL H1FY17 ordering: Strong show continues - ICICI Sec

Power Grid Corporation of India’s (PGCIL) ordering witnessed a strong 65% YoY increase to ~Rs171bn in H1FY17. Even discounting a chunky order worth Rs58bn for HVDC project, growth has been 9% on a relatively higher base. Strong ordering in FY16 and FY17 (healthy growth in PGCIL’s investment approvals as well) so far points at strong order booking and revenue visibility for the T&

14/11/2016 12:10:30 PM | Posted in Broking Firm Views - Sector Report read full news
Pharmaceuticals - Overhang of US elections removed - Kotak Sec

Overhang of US elections removed.

Last week’s free fall in global and Indian generics priced in (1) potential progress in the two year old DoJ case over drug pricing, and (2) overhang of the US elections, particularly, concerns over a potential Democrat sweep. Yesterday’s Republican sweep removes the election overhang and assuages concerns

14/11/2016 12:00:45 PM | Posted in Broking Firm Views - Sector Report read full news
Roads and Highways - Sector on a long-term growth trajectory - ICICI Sec

We recently hosted NHAI chairman Mr. Raghav Chandra in Mumbai for investors meeting. The interaction reinforces our bullish stance on the Indian road sector given the extensive ramp-up in road projects awarding planned in coming years for which structural policy changes are already in place. NHAI has identified ~75 projects worth 4,435km which are toll generating and can be monetized under the

14/11/2016 11:43:34 AM | Posted in Broking Firm Views - Sector Report read full news
Metals Sector - Tactical beneficiaries of improving global growth? - ICICI Sec

Global metals and mining stocks have reacted positively perhaps taking cues that a Trump presidency could launch significant fiscal stimulus in US and boost demand for metals. In his victory speech last night, presidential elect did mention that he would prioritize rebuilding of American infrastructure with hopes of doubling U.S. economic growth. There are expectations of lower taxes, higher in

14/11/2016 11:37:35 AM | Posted in Broking Firm Views - Sector Report read full news