Agri Input & Chemicals - Agri Digest - Drought like situation grips South India - Emkay

* Successive failure of North-East monsoon since last two years and below normal rainfall (82-85% of LPA) in South India during South-West monsoon has result in drought like situation in Tamil Nadu and Karnataka and few districts of AP and Telangana

* Our interaction with agri-input dealers and farmers in these states suggest that due to low water levels in reservoirs, yields of most

31/03/2017 9:10:13 AM | Posted in Broking Firm Views - Sector Report read full news
Print Media Sector - Vernacular print stays steady while English struggles, Radio to grow the fastest - Equirus Sec

Indian media industry grew a little bit slower at 9.1% in CY16 compared to a CAGR of 11.6% for the last 5 years mainly due to adverse impact of demonetisation in 3QFY17. Print advertising revenue growth slowed to 6.3% yoy in CY16 (vs. +7.3% yoy in CY15). However, within Print, Hindi/vernacular print grew at 7-9% while English print grew modestly by 4% yoy. Digital advertising continues to gain

29/03/2017 11:54:38 AM | Posted in Broking Firm Views - Sector Report read full news
Earnest states start showing improvement - ICICI Sec

Earnest states start showing improvement

The Union ministry of power, in order to help the sector tide over risks posed by the alarming weakness in financial position of discoms, unveiled UDAY (Ujwal Discom Assurance Yojana). The scheme, which aims at operational and financial improvements in discoms, has been subscribed to by 22 states so far. In this

28/03/2017 3:32:19 PM | Posted in Broking Firm Views - Sector Report read full news
Media Sector - FICCI Frames - takeaways - ICICI Sec

We attended Media and Entertainment industry conference FICCI Frames 2017 – Digital:

Divide or Dividend? last week. Key takeaway from the conference was industry consensus on increasing importance of digital media in India and its role as a collaborator with traditional media rather than a disruptor. Industry participants believe that India is a

28/03/2017 3:24:29 PM | Posted in Broking Firm Views - Sector Report read full news
Automobiles - Model Run Gradual recovery in 2Ws; UV`s continue to remain strong - Emkay

Key Highlights – Feb’17

We introduce our new product Model Run where we give a detailed analysis/performance of various models in each segments of 2Ws and 4Ws. Post demonetization there has been some recovery in 2Ws, while new models continue to rule 4Ws. While sales of 2Ws were flat YoY, as scooter growth of 4% negated the -3% growth in m

28/03/2017 12:27:47 PM | Posted in Broking Firm Views - Sector Report read full news
Cement Sector - Price survey, production analysis and capacity details - Emkay

* Cement prices increased by Rs20-25/bag in most parts of the North region in last one month. Our channel checks indicated that cement demand has been most impacted in the North post the announcement of demonetization by the Central government in Nov-16

* In the Central region, cement prices increased by Rs10/bag in East/Central UP (Uttar Pradesh) and MP (Madhya Pradesh). In the West

28/03/2017 12:07:20 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty Pharma has immediate support placed at 10050 levels - GEPL

Observation

* NIFTY PHARMA is one of the perennially underperforming sectoral indices, as it closed down by around 1.11% at 10556.35, as against a down move of 0.57% in benchmark NIFTY 50.

* The Sector had made a recent swing high @ 11215.45 in the month of Dec 2016, lower, as compared to Sep 2016. Thus it has failed to sustain at higher leve

27/03/2017 3:20:26 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty Realty holds strong Bullish momentum - GEPL

Observation

* NIFTY REALTY is the most outperforming sectors amongst all the indices last week. It moved up by 2.50%, as against a down move of 0.57% in benchmark NIFTY 50.

* The Sector is in medium term Bullish Trend with the formation of Higher Top Higher Bottom sequence in all time frames charts as Daily, Weekly as well as Monthly, as can

27/03/2017 3:15:36 PM | Posted in Broking Firm Views - Sector Report read full news
Metals Sector - Domestic steel prices struggle - ICICI Sec

Domestic steel prices struggle

We met CRCA distributors of one of the largest steel producer of India. What we see is an increasing resistance in the domestic market for passing on the price hikes. The price hike undertaken in January (Rs 3,000/te) has been largely rolled back, in Mid Jan and Feb, ’17. Price increases in March, ’17 are more

27/03/2017 2:54:02 PM | Posted in Broking Firm Views - Sector Report read full news
MarketFresh: FMCG Tracker - RM index contracts, product prices ticking up - RCML

RM index contracts, product prices ticking up

The RCML RM cost index declined 1% MoM in Feb’17 (+14% YoY) as key raw materials moved into deflationary mode. On the product pricing front, detergents and soaps saw sharp hikes, even as promotional activity was restricted to large or bundled packs. We reiterate our cautious stance on the sector as we

27/03/2017 2:39:06 PM | Posted in Broking Firm Views - Sector Report read full news
Engineering & Capital Goods - T&D to unfold sizeable opportunities - Emkay

Transmission & Distribution (T&D) on track for major expansion

While the power sector has seen remarkable accretion in generation capacities, investments in T&D networks have lagged behind, causing network congestion and inefficiencies. The requirement for large scale transmission gets further accentuated as the load centers are scattered a

27/03/2017 11:37:01 AM | Posted in Broking Firm Views - Sector Report read full news
Tracking World Steel Production - Capacity utilization heading northwards! - Emkay

Capacity utilization heading northwards!

Capacity utilization continues to remain northwards and increased by 400 bp YoY to 70.3%. Since August 2016, capacity utilization has risen from 68.3% to 70.3% signaling concern over rising oversupply of crude steel. China’s steel production continues to grow at 4% YoY to 61 mt despite all the noise of cap

24/03/2017 12:00:40 PM | Posted in Broking Firm Views - Sector Report read full news
February-16 domestic air passenger growth at ~20% YoY - Motilal Oswal

Domestic load factor at 87.2%; IndiGo’s domestic ASK/RPK share highest

* Domestic air passengers in India grew ~20% YoY (adj.) in Feb-17 (v/s +25.3% in Jan-17; +23.1% in 3QFY17). However, we believe this strong growth would be at the cost of yields, as seen in headline fares.

*While Feb-17 ASK growth stood at 17.8% YoY (adj.) (v/s +21.1

23/03/2017 3:03:28 PM | Posted in Broking Firm Views - Sector Report read full news
India Microfinance - NBFC-MFIs to take a hit as RBI reins in SHGs - RCML

India Microfinance

NBFC-MFIs to take a hit as RBI reins in SHGs

The RBI has directed banks to collect and share a database of self-help group (SHG) members with credit information bureaus from Jul’16. While this move will strengthen the microfinance database in the long run, NBFC–MFI credit growth

20/03/2017 5:19:10 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty FMCG holds strong Bullish momentum - GEPL

NIFTY FMCG    Current Close: 23491.25    Trend : Positive

Observation

* NIFTY FMCG is one of the most outperforming sector amongst all the indices last week. It moved up a good 5.15%, as against an up move of 2.52% in benchmark NIFTY 50.

* In the month of Feb. 2017, the Sector created an All Time

20/03/2017 4:16:16 PM | Posted in Broking Firm Views - Sector Report read full news
Budget implications likely to be neutral - Motilal Oswal

Alcoholic Beverages

Karnataka budget implications likely to be neutral

The event

* The Karnataka government, in its budget announcement on 15 March 2017, abolished the value added tax (VAT) on beer, wine and hard liquor. Three years ago, the state government had intro

20/03/2017 2:42:32 PM | Posted in Broking Firm Views - Sector Report read full news
Power Sector - WBERC highlights hidden cost in renewable energy - Motilal Oswal

WBERC highlights hidden cost in renewable energy

RoE of coal-based plants will be impacted if not compensated

* Renewable energy (RE) generation can have a meaningful impact on generation and utilization of conventional power capacities, although it will not displace the requirement for conventional capacities

20/03/2017 2:35:40 PM | Posted in Broking Firm Views - Sector Report read full news
Ports - The February PORTfolio - Emkay

The February PORTfolio

* Major Indian ports handled 50.9mn tons of cargo in the month of February 2017, clocking a growth of 0.4% YoY, however, declined 5.9% MoM. The major growth drivers were iron ore (+195% YoY) & others category (+27% YoY) while coal (-27% YoY), fertilizer (-45% YoY) & containers (-7% YoY) witnessed a decline

* Mor

17/03/2017 3:20:36 PM | Posted in Broking Firm Views - Sector Report read full news
Pharma Sector - High base effect and price revisions take toll on IPM growth - Emkay

High base effect and price revisions take toll on IPM growth

Indian Pharma Market – Monthly checkup

* The Indian Pharmaceutical Market (IPM) reported sub-par growth of c3% YoY to Rs.90.3bn for the month of Feb’17. A high base YoY as well as continuing pricing interventions by the NPPA continue to ensure monthly gr

16/03/2017 3:46:49 PM | Posted in Broking Firm Views - Sector Report read full news
Banking & Financial Services - A nudge of affordable credit - Emkay

The government finally announced the operating guidelines for the Credit Linked Subsidy Scheme for Middle Income Group (CLSS for MIG), in which the eligibility criteria for borrowers is surprisingly quite inclusive than anticipated. However, despite the inclusion of higher income groups and substantially increasing the eligible dwelling carpet area the scheme appears more lucrative for borrower

15/03/2017 4:29:38 PM | Posted in Broking Firm Views - Sector Report read full news
Auto Ancillaries Sector - Positively Charged - Emkay

Key takeaways

* We recently interacted with battery dealers, Exide and Amara Raja. We understand Exide has garnered market share with its renewed strategy, and this momentum is expected to continue in the short to medium term.

* We believe the battery industry is expected to grow with the ever-increasing vehicle population due to rising incom

15/03/2017 4:25:14 PM | Posted in Broking Firm Views - Sector Report read full news
Sector Update Room Air Conditioners - Motilal Oswal Sec

Transition to inverters gathers pace

LG a key beneficiary; Voltas takes share in fixed-speed 3-star range We highlight below feedback from one of the largest retail chains for consumer durables in North and West India on air conditioner (AC) sales and the impact of LG’s exit from fixed-speed ACs. North and West India together account for 55-60% o

11/03/2017 11:45:31 AM | Posted in Broking Firm Views - Sector Report read full news
Indian Steel Industry - Exports offsetting poor domestic demand - Emkay

Exports offsetting poor domestic demand

As per the JPC provisional data, finished steel production grew significantly by 13% in the month of Feb’17 to 8.8 mt, an all-time high growth, whereas consumption remained tepid and grew by only 3% YoY to 7.3 mt. Production from ESSAR+JSW+JSPL has increased significantly by 5 mt (+22% YTDFY17) to 28 mt fol

11/03/2017 11:07:00 AM | Posted in Broking Firm Views - Sector Report read full news
India Real Estate - Annuity plays the preferred bet - Emkay

* The Indian property market is currently in the midst of a perfect storm with twin impact of demonetization and imminent introduction of the Real Estate Regulator (RERA) leading to falling demand on the back of an expected price correction in residential property prices, deferment of supply by developers and residential inventory levels of 30-48 months across Tier I cities.

 

9/03/2017 3:41:03 PM | Posted in Broking Firm Views - Sector Report read full news