Tracking World Steel Production - Chinese output continues to be high - Emkay

World crude steel capacity utilization down 330bps YoY to 69.4% for Jun'16; Chinese Daily production at 2.32 mt

* Overcapacity situation continue to put pressure on steel prices unless more consistence majors being taken by the producers. Development in China in this regard will be important. India output to remain high, protection measures likely

27/07/2016 3:56:32 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty PSE enters a Breakout stage - GEPL

NIFTY PSE    Current Close: 3374.70     Trend : Positive

Observation

* NIFTY PSE is one of the most outperforming sectors amongst the indices last week, as it has moved up by 2.13%, as against a neutral move of -0.01% in benchmark NIFTY 50.

* In the last week, the Sector has made a 52 Week High o

26/07/2016 5:56:13 PM | Posted in Broking Firm Views - Sector Report read full news
Three Indian Pharma Companies Gets Fortunate - Dynamic Levels

Sun Pharma, Aurobindo Pharma and Glenmark Pharma have acquired approval from the United States Food and Drug Administration to produce and market generic versions of a blockbuster cholesterol drug, Crestor, in the American market. This could boost their fortunes in a way beyond expectations.

According to IMS Health, a global information and technology services company, this drug has h

22/07/2016 5:49:46 PM | Posted in Broking Firm Views - Sector Report read full news
IT Services Tighten your belts for rough weather ahead - Emkay Global

*  June’16 quarter results till date continue to strengthen our thesis of ‘Downside risks to modest growth expectations’ and concomital risks to margins/earnings

*  Macro uncertainty is amplifying the challenges from changing demand trends and increasing trend of insourcing continue to pose downside risks to growth expectations. We foresee an extremely toug

22/07/2016 11:28:06 AM | Posted in Broking Firm Views - Sector Report read full news
India Financials: Credit Tracker Credit growth inches up to 9.8% - RCML

As per RBI data, credit growth for the fortnight ended 8 July improved to 9.8% YoY from 9.4% in the previous fortnight. Food credit, which forms ~1.3% of total credit, declined 4% YoY. Deposit growth inched down to 9.5% YoY vs. 9.7% in the previous fortnight. Investment growth as well as SLR remained stable at 6.0% and 26.8% respectively. Credit growth has been weak over the last few months due

22/07/2016 11:16:04 AM | Posted in Broking Firm Views - Sector Report read full news
Agri Input & Chemicals - Agri Digest – Season progressing fast as monsoon picks up pace - Emkay

* Despite delayed onset, monsoon has picked up pace in the last fortnight. Deficit of has now been more than compensated as rainfall is 2-3% above normal during the third week of July. During the month of July, rainfall has been excess by 15%. Almost 83% of the country has now received normal/above normal rainfall compared to 60% in end of June

* This year there has been a shift in cr

21/07/2016 5:08:46 PM | Posted in Broking Firm Views - Sector Report read full news
Pharma Sector - FDC ban continues to weigh on IPM growth - Emkay Global

India Pharma Market- Monthly Checkup

* Indian Pharmaceutical Market (IPM) growth slowed down to 9.6% in June 2016 as compared to growth of 10.6% in May 2016. However IPM sales from July ‘15- June ’16 (MAT sales) witnessed growth of 13%

* The growth was led by therapeutic areas of Anti-virals (36%), Oncology (19%) and AntiDiabetic

19/07/2016 4:22:04 PM | Posted in Broking Firm Views - Sector Report read full news
India PharmaScope - NLEM price cuts, FDC ban weigh on growth - RCML

The Indian Pharmaceutical Market (IPM) grew at a moderate pace of 6.4% YoY in June (vs. 7.7% in May). NLEM price cuts (revised lists + WPI deflationrelated pricing) and the FDC ban continued to weigh on revenues, even as non-FDC and non-NLEM drugs saw growth dipping by 100-150bps YoY. Therapy-wise, the anti-diabetic, gastrointestinal, dermatology and respiratory segments outperformed IPM growth

19/07/2016 1:01:03 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty Auto enters a Breakout stage - GEPLCapital Ltd

NIFTY AUTO    Current Close: 9204.45     Trend : Positive

Observation

* NIFTY AUTO is one of the outperforming sectors amongst the indices last week, as it has moved up by 3.76%, as against an up move of 2.62% in benchmark NIFTY 50.

* In the last week, the Sector has made a New All Time High of 9

18/07/2016 5:49:26 PM | Posted in Broking Firm Views - Sector Report read full news
Capital Goods Sector - Growth to be visible in pockets - ICICI Sec

We expect Q1FY17 to see pockets of growth led by T&D companies (TEEC, KECI and KPP) and Voltas. For our coverage universe, we expect sales/EBITDA/PAT to grow by 11%/9.9%/12% respectively. However, accounting changes (shift to INDAS) may present an optical variation to reported results. Amongst large caps we expect L&T (after a stellar quarter in Q4FY16) and Cummins (high base of Q1FY16)

18/07/2016 4:31:03 PM | Posted in Broking Firm Views - Sector Report read full news
Building Materials - Strong growth prospects ahead - Emkay Global

We interacted with a building product expert having 30+ years of experience across various categories of building products segment. The key takeaways for the meeting were:

* Confident of strong growth prospects in next 10 years aided by passage of GST bill, reduction of replacement cycle, increasing affordability & aspiration for lifestyle product

18/07/2016 1:28:13 PM | Posted in Broking Firm Views - Sector Report read full news
India Auto: Q1 FY17 preview Mediocre quarterly performance; steady annual outlook - AnandRathi

Volume growth for most segments have tapered in June’16. We expect our coverage universe to deliver a revenue growth of ~6% yoy. We expect most companies (except Escorts, Swaraj Engines, TVS Motors) to witness pressure on margins due to lower realizations and deliver a PAT growth of ~8% yoy in Q1 FY17.

 

OEM performance.

M&HC

16/07/2016 10:41:58 AM | Posted in Broking Firm Views - Sector Report read full news
Sharekhan Special - Q1FY2017 earnings preview - Sharekhan

Flattish growth; pain points remain the same:

Q1FY2017 is expected to be another lackluster quarter for corporate results, with aggregate earnings of Sensex companies expected to decline by 1.5% YoY. Interestingly, the weak performance would be limited to certain pockets like global commodities, including Metals (Tata Steel), Oil & Gas (ONGC) and c

15/07/2016 5:21:19 PM | Posted in Broking Firm Views - Sector Report read full news
Pharma Sector - Q1FY17 results preview - ICICI Sec

We expect pharmaceutical companies to post mixed set of results for the quarter ended June'16. Strong performance would be registered by: 1) Lupin due to Gavis integration, exclusivity of Glumetza and price hike in Fortamet, 2) Sun Pharma due to exclusivity of generic Gleevec, and 3) Glenmark on the back of product approvals in US and low base. Whereas, we expect weak results by 1) Dr Reddy

15/07/2016 1:34:43 PM | Posted in Broking Firm Views - Sector Report read full news
Pharma Sector - Q1FY17E: Positive newsflow from US markets; currency to aid revenues….limited upside - Karvy

Key Highlights of the Quarter

Domestic formulations have clocked single digit growth on back of NLEM 2015 and FDC (Fixed Dose Combination) directives while better performance in emerging markets on a Q-o-Q basis and better newsflow from the US markets are the key takeaways for the quarter.

The domestic formulations business

15/07/2016 1:24:01 PM | Posted in Broking Firm Views - Sector Report read full news
SEB visit diaries - Vol. 8 : Telangana – Preparing for a demand surge - ICICI Sec

Reason for the report: Takeaways from visit to Telangana SEB

We visited Telangana and met with the SEB officials to assess the situation on ground. The purpose of visit, besides understanding the progress on government various initiatives to improve SEB health, was to understand the reasons for ordering large generation capacity despite significant ove

15/07/2016 1:14:49 PM | Posted in Broking Firm Views - Sector Report read full news
Paint Sector - Deco volume growth expected healthy for Q1FY17 - ICICI Sec

Paint companies under our coverage are likely to continue with strong growth momentum in volumes particularly in the decoratives segment post a strong H2FY16. In Q1FY17, the industry leader Asian Paints is likely to post a volume growth of 11-12%. Berger Paints is expected to show similar growth; however, Kansai Nerolac is expected to post 10-11% overall volume growth due to lower growth in ind

15/07/2016 1:05:47 PM | Posted in Broking Firm Views - Sector Report read full news
Metal & Mining Sector - Benefit of higher commodity prices to continue - Reliance sec

Sector Preview

1QFY17E is expected to be strong for both ferrous as well as non-ferrous companies. Domestic steelmakers are slated to report a sharp improvement in earnings due to higher steel prices and increased volumes due to reduced import pressure post the introduction of MIP in 4QFY16. As far as non-ferrous companies are concerned, earnings are

15/07/2016 12:34:26 PM | Posted in Broking Firm Views - Sector Report read full news
India Strategy - Q1FY17 Results, will we see an improvement? - Prabhudas Lilladher Ltd

The expectations of a good monsoon have seen the market rally especially in case of the bottomed out companies and sectors. The time is now set for the Q1FY17 results and we expect to see a beginning in terms of improvement corporate performance.

Our universe of stocks is expected to report a better performance in Q1FY17. While the revenue growth is expected to be muted 1.3% YoY and 0

14/07/2016 5:53:20 PM | Posted in Broking Firm Views - Sector Report read full news
Banking Sector - FY16 loan mix: Unsecured retail loans drive market share gains - ICICI Sec

Overall loan growth remained muted for FY16 with retail loan growth showing relatively better momentum. To further understand the behaviour of the retail book and overall market share, we analysed loan mix for 29 listed banks (covered and non-covered) for FY16, constituting ~90% of the systemic loan and with total market cap of US$180bn. The key highlights of our research are: 

&

14/07/2016 5:13:19 PM | Posted in Broking Firm Views - Sector Report read full news
India IT Services - Beyond Q1 Margin recovery on a weak wicket - RCML

Growth has spiraled down for our large-cap IT universe in FY16, with sector margins weak despite INR depreciation. We expect margins to witness a sizeable drop in Q1 and continued pricing pressure to make margin recovery difficult through FY17. Slowing growth would continue to weigh on margins, and in the absence of sharp INR deprecation in FY17, risks to margins and earnings remain high. We re

14/07/2016 5:08:52 PM | Posted in Broking Firm Views - Sector Report read full news
FMCG Sector - Improving revenues; stabilizing margins - ICICI Sec

We estimate FMCG companies under our coverage to report an aggregate revenue growth of 9% YoY in Q1FY17 (vs 5.5% in Q4FY16, 1.1% in Q3FY16 and - 0.3% in Q2FY16). The jump in revenue growth is mainly due to better growth expected in Nestle. This quarter marks the anniversary of Maggi noodles crisis. We expect gross margin expansion for companies under our coverage to continue in Q1FY17, albeit a

14/07/2016 4:41:54 PM | Posted in Broking Firm Views - Sector Report read full news
Cement Sector - Q1FY17E: Strong volumes to drive performance - Karvy

Aggregate volume growth of coverage is estimated at ~10% YoY in Q1FY17

Industry volume growth for Q1FY16 is expected to be at ~4% YoY, slowing down from significant growth of ~11% YoY seen in Q4FY16. Cement production (as per eight core industries data) grew by 3.4% YoY during Apr-May 2016 as compared to 8% YoY during H2FY16 (which was primarily led by

14/07/2016 4:27:13 PM | Posted in Broking Firm Views - Sector Report read full news
Cement Sector - Price recovery and favourable demand to aid 1Q performance - ICICI Sec

1QFY17E Sector Preview

Improved realization environment along with better demand on yearly comparison (despite softening sequentially) is likely to cast a positive impact on the performance of cement companies in 1QFY17E, as the companies under our coverage are likely to witness earnings improvement to the tune of ~44% yoy. Given the visible hardening

14/07/2016 4:19:10 PM | Posted in Broking Firm Views - Sector Report read full news